Increasing Natural Gas Trade Between the U.S and Mexico

The Heritage Foundation ^ | 7/1/19 | Daniel Fine and Nicolas Loris

[brownwill6767]

Increased energy trade has important economic and strategic significance for the United States and Mexico. Mexico’s energy-market reforms that opened access and improved natural gas trade between American producers and Mexican consumers have been beneficial for citizens in both countries. President López Obrador’s desire to return to energy nationalism threatens those gains. Both the U.S. and Mexico should commit to policies and regulations that continue to open access to markets, improve transparency, and expand opportunities for investment. Doing so will benefit both Americans and Mexicans.

[brownwill6767]

U.S. natural gas exports to Mexico have increased significantly as the shale revolution in the U.S. produced affordable and abundant natural gas.Natural gas has become increasingly important for Mexico as a necessary fuel source, particularly for electric power and industrial development.The U.S. and Mexico should continue to expand interconnectivity, increase transparency, and streamline permitting processes for natural gas infrastructure.

[Jeff Chandler]

Why hasn’t Mexico experienced a petrochemical boom similar to the U.S.’s?

The answer: PEMEX.

[marktwain]

Yes, PEMEX.

And the fact that U.S. investment in Mexico is not considered safe.

You have to have the rule of law for an investment to be safe, or at least solid government control of the land.