Interesting story on how Latin American oil refinery plans haven't worked out, which is helping the U.S.
From Brazil's Petroleo Brasileiro to Mexico's Petroleos Mexicanos, state oil companies have failed to complete nine projects worth at least $36.4 billion that would have supplied 1.2 million barrels of gasoline and diesel daily. U.S. refiners have stepped up to help fill the gap, with exports almost doubling in the past six years, according to the U.S. Energy Information Administration.
It doesn't even mention Venezuela, which has had all kinds of refinery problems.
None of these countries is too eager to talk about it either.
In response to a request for comment, Petrobras said decisions on the construction of new refineries will be announced as part of its next five-year investment plan. It didn't disclose when that announcement will be made. Ecuador's ministry of strategic sectors, which is in charge of the project to build the new Pacifico refinery, didn't return calls and e-mails seeking comment. Valero, Marathon and PBF declined to comment....Pemex declined to comment on plans for future or existing refineries.
The inability to use oil revenue to build necessary infrastructure has been a frustrating constant in Latin American economic history.