Exports of U.S. natural gas into Mexico are expected to average 1.3 Bcf/d, a 450 MMcf/d increase from 2010, and the tightening of Mexican supply/demand balances should lead to further U.S. export growth in 2012, Barclays Capital reported last week.
Exports to Mexico grew sharply in the beginning of the past decade before stabilizing in the 850 MMcf/d range from 5001-2010; however, first quarter 2011 exports averaged the highest in the past 10 years.
U.S. gas exports to Mexico represent a relatively small part of U.S. gas balance, or one percent in 2010, and have not attracted much attention, but the exported BTUs are starting to add up, and more important, several factors suggest this trend could continue in the next few years. Barclays expects U.S. flows to Mexico to increase by another 200 MMcf/d in 2012, to an average of 1.5 Bcf/d.This is not a trivial issue.
I keep thinking of the New York Times / MSNBC 2009 story -- and how the writers blew it with regard to natural gas.
I think gross exports and net exports to Mexico are about the same. Oil goes the other way.
ReplyDeleteanon 1
( I haven't checked to see if you have it, but see CHK responses to NYT. http://www.chk.com/Investors/Pages/NewsSummary.aspx And Statoil's latest presentation on Shale is interesting.)
You are correct; just before seeing your comment, I revised my "headline." And just kept the Rigzone blurb as it was.
ReplyDeleteAnd thank you for the CHK response; I haven't read it yet, but it should be entertaining.