As U.S. Gas Production Soars, Sellers Look South to Mexico

gas pipeline and gaugeThe Wall Street Journal, 9/27/2013

U.S. energy companies are turning to Mexico as they struggle to find uses for the glut of natural gas that has depressed domestic prices for the fuel.

Pipelines are carrying twice as much natural gas to Mexico as they did in 2010, according to federal data, helping to push U.S. gas exports to the highest level since the Energy Information Administration began tracking them in 1973.

The U.S. still imports more gas than it exports, and its shipments to Mexico account for a little less than 3% of U.S. production. But rising exports to Mexico are bringing the U.S. closer to becoming a net exporter of natural gas, and could provide a meaningful boost to domestic gas prices, some analysts say.

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