• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 1 day "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 4 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days Demonising fossil fuels has caused major grid problem in Australia
  • 5 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 7 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 331 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 9 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others

U.S. Natural Gas Crisis Spills Into Mexico

The plummeting natural gas exports from the United States to Mexico amid an Arctic cold spell in the country that has led to a gas demand surge is causing blackouts in northern Mexico, with some 4.77 million households and businesses left without power on Monday.

Argus noted that most of the natural gas Mexico receives from the United States comes from the Permian, where the production of both oil and gas has been affected by the cold weather that has caused power outages across Texas.

Oil wells are being shut down, and so are refineries along the Gulf Coast, Reuters reported earlier today, adding oil and gas pipeline operations were also disrupted by the weather.

The blackouts, Bloomberg reports, will strengthen the government’s argument that Mexico needs to be less dependent on energy imports, with President Andres Manuel Lopez Obrador spearheading the drive to reduce this dependency. Obrador wants to boost Mexico’s domestic oil and gas production to tackle the problem, but this has proved challenging without the participation of private energy companies as the president seeks to fortify the dominant status of state energy major Pemex.

The president is also seeking to reinforce the dominance of the state electricity utility, CFE, by proposing a bill that will prioritize CFE’s electricity over private electricity providers, obliging the grid operator to buy from CFE first. The bill follows a policy published by the energy ministry last year to the same effect.

The policy caused an outcry from private companies, many of which have invested billions in solar and wind power capacity. The energy ministry said that prioritizing electricity from CFE ensured the reliability of the grid, but Mexico’s antitrust regulator disagreed and took the case to the Supreme Court. The court ruled the prioritization of CFE over private suppliers was unconstitutional. Now, many expect that Obrador’s bill will also end up in the Supreme Court.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Roberta Holmes on February 17 2021 said:
    This crisis clearly demonstrated the need for more pipeline interconnects not less. The technology is there to produce oil and ng in extremely cold environment's this fiasco is boardering on criminal. The national energy reliability councils are clearly disfunctional. Not sure fixable in current form.

    Btw The grids utter pathetic response to the prospect of EMP's either natural or malicious will make this foopah seem like a non event.

    Just my 2cents.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News