• 4 minutes U.S. Shale Output may Start Dropping Next Year
  • 8 minutes Read: OPEC WILL KILL US SHALE
  • 12 minutes Tidal Power Closer to Commercialisation
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 4 hours Why U.S. Growers Are Betting The Farm On Soybeans Amid China Trade War
  • 4 hours Trump to Make Allies Pay More to Host US Bases
  • 6 hours BATTLE ROYAL: Law of "Supply and Demand". vs. OPEC/Saudi Oil Cartel
  • 4 hours US-backed coup in Venezuela not so smooth
  • 23 hours THE DEATH OF FOSSIL FUEL MARKETS
  • 16 hours Solar to Become World's Largest Power Source by 2050
  • 6 hours Biomass, Ethanol No Longer Green
  • 1 day this is why Climate Friendly Agendas Tread Water
  • 1 day Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 1 day Sounds Familiar: Netanyahu Tells Arab Citizens They’re Not Real Israelis
  • 21 hours Exxon Aims For $15-a-Barrel Costs In Giant Permian Operation
  • 5 hours Trump Tariffs On China Working

4 Keys to Watch on the US-Mexico Natural Gas Boom

Sometimes geography just works.

That’s certainly the case in North American natural gas markets today.

To the north you have America—a new natural gas superpower. So super that producers have cratered prices for their product amid a wash of new supply coming on from shale plays around the country.

And to the south there’s Mexico. The “lazy cousin” whose petroleum industry has squandered its cash (or had the cash squandered for it by the wider federal government). To the point where a lack of reinvestment in producing infrastructure has cratered production by 15% since 2008. At a time when politicians are desperate to move away from expensive oil-fired generation for electricity.

Sounds like a match made in Business School 101. The obvious solution to both problems being a few short miles of pipeline to redirect ample U.S. gas supplies south, and ample Mexican gas prices north.

But this is far from just a satisfying economics exercise. If U.S. natgas exports to Mexico can indeed be achieved at scale, it could represent one of the biggest investible opportunities of the decade.

“At scale” is exactly the plan right now. At least six new or expanded export projects are on the books, with capacity to send an additional 3.5 billion cubic feet per day of gas to Mexico. Doubling current export capacity.

These added flows could bring total US-Mexico exports to several billion cubic feet per day.…




Oilprice - The No. 1 Source for Oil & Energy News