Increasing Natural Gas Trade Between the U.S and Mexico (A Heritage Foundation Background Paper)

Authors:Daniel Fine and Nicolas Loris 

The full Heritage Foundation background paper can be found here-> https://www.heritage.org/trade/report/increasing-natural-gas-trade-...

SUMMARY

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.

KEY TAKEAWAYS

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.



Energy trade between producers in the United States and consumers in Mexico has long been a productive relationship, benefitting households and businesses on both sides of the border. Natural gas has become increasingly important for the Mexican economy as a necessary..."

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