OPEC shudders as shale revolution could spell demise

OPEC RIP

Several U.S. pipeline export projects that could support additional natural gas exports to Mexico have been announced. According to company announcements, these projects are expected to be completed by the end of 2014 and, if they are all built, could add up to 3.5 Bcf/d of additional export capacity to Mexico, doubling existing capacity.

This additional capacity would serve an expected increase in natural gas demand from Mexico's electric power sector. Mexico plans to add about 28 gigawatts of new electric generating capacity between 2012 and 2027, mostly in northern Mexico, according to Comisión Federal deElectricidad (CFE)—Mexico's state-run electricity provider. CFE estimates that this could raise natural gas needs for power generation by 5.1 Bcf/d. This level of growth would likely require increased natural gas imports from the United States.

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About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.


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