U.S. energy companies exported $3.7 billion of natural gas to Mexico last year, putting a huge dent in our $7 billion trade deficit with our southern neighbor. In the absence of environmental activists and policymakers blocking proposed pipelines and export terminals, our natural gas trade surplus with Mexico would be even higher.
Mexico’s economy is growing at a steady pace (2.4 percent), translating to steady growth in energy demand. By 2029, Mexico’s natural gas demand is expected to grow by 31 percent. At the same time, Mexican natural gas production is declining, dropping 10 percent during the past year.
Our growing natural gas trade surplus is bringing in tremendous wealth from south of the border. Our natural gas exports to Mexico are expected to double in just the next two years. This growing trade surplus and infusion of wealth is a model that can and should be emulated in our trade with other nations.