U.S. Natural Gas Market Sees Big Benefits From Nafta

As Congress begins to examine the North American Free Trade Agreement at the behest of President Donald Trump, lawmakers need to ensure that nothing they decide disrupts one of the more relevant industries in the pact: energy -- in particular, natural gas.

U.S. producers need Mexico, their largest customer. The glut of production in the U.S. far exceeds domestic demand; thus, exports prevent a collapse in natural gas prices. More than a quarter of Mexico’s electricity is powered by U.S. natural gas, leaving it vulnerable in a trade battle. Trade disputes mean U.S. producers would suffer a serious loss of income, while Mexico would face an energy shortage that could wreak havoc on its economy, drive up crime and potentially create a new refugee crisis.