US, Mexico energy trade falls in ’23

The total value of energy trade between the United States and Mexico fell by nearly 15 per cent in 2023, from $77.8 billion in 2022 to $66.5 billion, after adjusting for inflation. This decline was primarily driven by lower fuel prices, despite an increase in the volume of energy traded.

US energy exports to Mexico dropped by 19 per cent, while imports from Mexico decreased by 6 per cent, according to the US Census Bureau. Crude oil imports from Mexico averaged 733,000 barrels per day, a 15 per cent increase from 2022, yet the overall value fell by 4 per cent due to declining prices.

Mexico remained the largest market for US petroleum products, which accounted for 87 per cent of US energy exports to Mexico. However, the value of these exports fell by 9 per cent, totaling $36 billion in 2023.

Natural gas exports to Mexico hit a record 6.2 billion cubic feet per day, up 8 per cent from 2022, but the trade value plummeted by 52 per cent. Electricity trade between the two countries saw US imports from Mexico rise by 20 per cent, while exports fell by 65 per cent, resulting in a net trade deficit.

Overall, lower fuel prices significantly impacted the value of energy trade, overshadowing the increased trade volumes between the neighbouring countries.

Attribution: US Energy Information Administration (EIA)