Latest news with #U.S.EnergyInformationAdministration
Yahoo
12 hours ago
- Business
- Yahoo
$14 more for gas a month in Missouri? What to know about Spire's planned rate hike
Your gas bill might soon rise $14 per month in Missouri. But there's something you can do about it. Spire is asking the Missouri Public Service Commission to approve an increase to gas rates. This month, you can participate in public hearings to share your thoughts about the plan. The natural gas company was most recently approved for a rate increase in 2022, after two in 2021. Missouri residential natural gas prices have been consistently higher than both Kansas and the national average for at least a decade, according to the U.S. Energy Information Administration. Spire doesn't charge a mark up on natural gas usage, which makes up almost 50% of an energy bill. More than 40% of your Spire payment goes to delivery charges, which is how the energy company can make a profit and what Spire is hoping to increase. The rate increase was filed in November 2024, months before Missouri Governor Mike Kehoe signed a major energy bill. In the future, utility companies will be able to charge customers for new power plants while they are being constructed, as opposed to after they're finished. Critics say this could lead to higher utility costs, as St. Louis Public Radio reported. Spire reported earnings of $195.2 million from their gas utilities in the first three months of 2025, up from $188 million during the same period a year earlier, according to the company's quarterly report. Under Spire's proposed plan, the average residential customer would pay $14 more per month, a 15% increase of the total bill. This would raise the delivery charge portion of the gas bill, where gas companies make their profits. The Public Service Commission could approve some, all or none of the proposed increase. If approved, Missourians would have higher gas bills by Oct. 24, 2025. Spire says the extra money would go toward offsetting the costs of higher inflation and interest rates, streamlining operations and to 'manage the impacts of weather and the effects of conservation on customer usage.' Spire says the rate increase would increase revenues by $236 million per year. According to Spire, this rate increase just offsets the decrease in natural gas prices which took effect in November 2024. The Spire website states, 'Overall customer bills will continue to be slightly lower or unchanged compared to what customers paid in 2024 when new rates take effect Fall 2025.' The higher costs are necessary to improve Spire's infrastructure, said David Yonce, managing director of regulatory affairs. 'Affordability is always top of mind for Spire, and we think about our customers, and the impacts that they're experiencing in their lives more generally, any time that we're incurring costs and we're spending money,' Yonce said. He said that the company needs to profit so it can get loans to build and make repairs. 'It's important for Spire … to be healthy, and to be healthy means that you have to earn a reasonable return so that you can attract capital to invest in your system,' Yonce said. Higher energy costs would tighten budgets for Missourians already struggling with rising housing and food costs, said Garrett Griffin, spokesperson for Kansas City advocacy organization Communities Creating Opportunities. As a large, publicly traded company, Griffin said that 'they can absorb some price increases in a way that ordinary people cannot.' Griffin pointed out that Missourians don't have a choice whether to buy gas from Spire, as the company has a monopoly on both the Kansas City and St. Louis metros, along with other counties throughout the state. 'We are all at Spire's mercy. Because, whether you're rich or poor or somewhere in the middle, we all have to pay heating bills in the winter,' he said. There will be a public hearing in Kansas City on Wednesday, June 4, at 6 p.m. at the Gregg/Klice Community Center in the 18th and Vine District. In addition, there will be two virtual public hearings on Tuesday, June 3, at noon and 6 p.m. Residents can join using Cisco Webex. You can also send your comments to the Public Service Commission directly. Their email address is pscinfo@ and their mailing address is: Missouri Public Service Commission PO Box 360 Jefferson City, Missouri 65102 Missourians can get help from Spire, the government and nonprofits to keep their gas running. Residents can apply for payment plans through Spire or energy assistance through the Missouri state government, among other programs. Have more questions about utilities in Missouri? Ask the Service Journalism team at kcq@
Yahoo
4 days ago
- Business
- Yahoo
3 Alternative Energy Stocks to Watch Amid Escalated Tariff Uncertainty
America's booming electric vehicle market, backed by the rapid decarbonization demand of the transport sector, should bode well for alternative energy stocks in the near term. However, enhanced import tariffs imposed by the U.S. government recently, which have only exacerbated the already high cost situation of the industry, might hurt the growth trajectory of these stocks. Despite these challenges, the U.S. Energy Information Administration ('EIA') has forecasted a 4.5% year-over-year increase in U.S. wind generation in 2025. This growth should play the role of a catalyst for the alternative energy stocks, offsetting some headwinds. Some prominent forerunners in the U.S. alternative energy industry are Bloom Energy BE, Ormat Technologies ORA and Standard Lithium SLI. About the Industry The Zacks Alternative Energy industry can be fundamentally segregated into two sets of companies. While one group is involved in the generation and distribution of alternative energy and electricity from sources like wind, natural gas, biofuel, hydro and geothermal, the other is engaged in the development, design and installation of renewable projects involving these alternative energy sources. The industry also includes a handful of stocks that offer fuel cell energy solutions, which have gained popularity as an affordable clean energy lately. Per the BlooombergNEF's latest Energy Transition Investment Trends report published in January 2025, global spending on clean energy reached record levels of $2.08 trillion in 2024. With similar or more investments expected in clean energy in the coming years, the industry boasts solid growth opportunities for its participants. 3 Trends Shaping the Future of the Alternative Energy Industry Wind Energy – A Key Growth Catalyst: Among alternative energy sources, wind energy has been making noticeable progress in the United States. Per the American Clean Power Association's latest clean power market report, a solid 1,327 megawatts (MW) of land-based wind were installed in the first quarter of 2025. Looking ahead, per the Short-Term Energy Outlook published by the U.S. Energy Information Administration (EIA) in February 2025, wind generation in the United States is projected to increase 4.5% year over year in 2025, with 7.7 GW of wind generation capacity expected to be added to the U.S. grid this year. This reflects a solid growth opportunity for the U.S. wind market at present, which, in turn, should boost the overall expansion of the alternative energy industry. EV Market Boom to Boost Clean Energy: Electric vehicles (EVs) are playing a pivotal role in the decarbonization of the U.S. transportation sector. The ongoing shift toward electrification, spurred by government subsidies, tax rebates, grants, and incentives such as carpool lane access, is encouraging more Americans to transition from gasoline-powered vehicles to EVs. Falling battery costs are also accelerating the expansion of the EV market. According to the Alliance for Automotive Innovation, 433,843 EVs were sold in the United States in the fourth quarter of 2024, representing a 15% year-over-year increase. Looking ahead, the U.S. EV market is expected to witness a compound annual growth rate (CAGR) of 12.6% between 2025 and 2029 and reach a projected market volume of $154.2 billion by 2029, as per estimates from Statista. This strong growth outlook bodes well for clean energy companies, particularly those that operate extensive EV charging networks across the country. Rising Raw Material Costs & Tariff Headwinds: The steadily rising cost of raw materials used in renewable installations over the past few years, primarily owing to the shortage of components arising out of the global supply-chain crisis, has already sparked concerns about the energy transition industry's future among stakeholders. This situation has been further exacerbated by the recent decisions taken by the U.S. government. Evidently, Donald Trump's executive order in January 2025, pausing offshore wind leasing and permitting, delivered a fatal blow to the U.S. offshore wind industry.. Moreover, the exorbitant import tariff that the Trump administration has imposed lately on America's trading partners has the potential to jeopardize the nation's decarbonization plans. President Trump raised steel and aluminum tariffs by 25% in March 2025, ending all country exemptions, in addition to higher tariffs on China. Since America is largely reliant on other nations for the import of these metals used in power grids and renewable projects, such tariff imposition will further put pricing pressure on the nation's clean power industry. Consequently, in the first quarter of 2025, clean energy projects worth $8 billion were cancelled. While it is too early to predict the extent to which the American clean energy industry will suffer amid such a high-tariff situation, the volatility in the global trade map and the resultant ripple effect might keep the growth trajectory of the alternative energy stocks constricted to some extent in the near term. Zacks Industry Rank Reflects Grim Outlook The Zacks Alternative Energy industry is housed within the broader Zacks Oils-Energy sector. It carries a Zacks Industry Rank #143, which places it in the bottom 42% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates gloomy near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry's position in the bottom 50% of the Zacks-ranked industries is due to a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts have lost confidence in this group's earnings growth potential over the past few months. The industry's bottom-line estimate for the current fiscal year has moved down 0.9% to $2.17 since March 31. Before we present a few alternative energy stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and valuation picture. Industry Beats Sector and S&P 500 The Alternative Energy Industry has outperformed its sector as well as the Zacks S&P 500 composite over the past year. The stocks in this industry have collectively surged 41.9% in the past year against the Oils-Energy sector's 9.8% decline. The Zacks S&P 500 composite has gained 11.7% in the same time frame. One-Year Price PerformanceIndustry's Current Valuation On the basis of the trailing 12-month EV/EBITDA ratio, which is commonly used for valuing alternative energy stocks, the industry is currently trading at 21.48 compared with the S&P 500's 16.65 and the sector's 4.59. Over the past five years, the industry has traded as high as 21.85X, as low as 8.88X and at the median of 10.43X, as the charts show below. EV-EBITDA Ratio (TTM)3 Alternative Energy Stocks to Watch Ormat Technologies: Based in Reno, NV, the company is primarily engaged in the geothermal energy power business. On May 27, 2025, Ormat Technologies announced a $62 million Hybrid Tax Equity partnership with Morgan Stanley Renewables to support its Lower Rio and Arrowleaf energy storage and solar projects, expected to be operational by the end of 2025. This innovative financing will help Ormat monetize $160 million in tax benefits in 2025, boosting profitability and supporting its long-term energy storage growth strategy. The Zacks Consensus Estimate for the company's 2025 sales implies an improvement of 8.4% from the previous year's estimated figure. The stock boasts a long-term (three-to-five years) earnings growth rate of 10%. The company currently carries a Zacks Rank #2 (Buy). Price & Consensus: ORA Standard Lithium: Based in Vancouver, Canada, Standard Lithium is a technology and lithium development company. Its flagship project is located in southern Arkansas, where it is engaged in the testing and proving of the commercial viability of lithium extraction. On May 29, 2025, it was announced that Smackover Lithium, a joint venture between Standard Lithium and Equinor, has secured AOGC approval for a 2.5% lithium royalty rate for Phase I of its South West Arkansas Project, marking the first such approval in the state. This milestone sets a regulatory precedent and enhances Standard Lithium's pathway to commercial production by 2028. The Zacks Consensus Estimate for SLI's 2025 bottom line is pegged at a loss of 8 cents per share, suggesting a solid improvement from the year-ago quarter's reported loss of 13 cents. The bottom line beat the consensus estimate in the last reported quarter. SLI currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Price & Consensus: SLI Bloom Energy: Based in San Jose, CA, the company generates and distributes renewable energy. On April 30, 2025, Bloom Energy posted its first-quarter 2025 results. Revenues of $326 million reflected an increase of 38.6% year over year. BE's gross margin was 27.2%, reflecting a 110 basis points improvement over last year's reported figure. The stock holds a long-term earnings growth rate of 24.4%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 19.3% from the previous year's reported figure. The company currently carries a Zacks Rank #3 (Hold). Price & Consensus: BEWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bloom Energy Corporation (BE) : Free Stock Analysis Report Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report Standard Lithium Ltd. (SLI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
6 days ago
- Business
- Yahoo
Oil Demand Growth Faces Significant Headwinds
For most of the past century, energy producers could count on steady oil demand growth. From industrial development in China to population booms in emerging markets, the global appetite for oil kept expanding like clockwork. There were occasional exceptions, like the 2008-2009 recession and the demand slump from COVID-19, but global oil demand has increased at an average rate of about 1.2 million barrels per day (bpd) for nearly 60 years. But a recent forecast from the U.S. Energy Information Administration (EIA) suggests that the world may be entering a new phase—one where oil demand grows at a significantly slower pace. This predicted change isn't the result of a single trend. Instead, it reflects a confluence of global forces—some structural, some temporary—that are reshaping how and where oil is used. For energy producers, investors, and policymakers, understanding what's behind this slowdown is critical to navigating the years ahead. According to the EIA's most recent outlook, global oil consumption will rise by less than one million barrels per day in both 2025 and 2026. While any increase may sound like good news to the oil industry, that figure marks a significant drop from the historical average. It's not that oil is going away anytime soon. But the days of strong, year-over-year demand growth—once seen as inevitable—may soon give way to something more measured, and in some cases, more uncertain. At the heart of this slowdown is the global economy itself. The International Monetary Fund (IMF) now expects global GDP to grow just 2.8% in both 2025 and 2026. That's far from recession territory, but it's a reminder that we're operating in a world with tighter credit, more protectionism, and less global growth than in previous decades. Much of the drag is coming from Asia, a region that has long been the engine of oil demand growth. In January, the EIA projected that Asia would contribute an additional 700,000 barrels per day to global demand in 2025. By May, that figure had been cut to 500,000 barrels per day. That may not sound like much, but in a market where supply and demand are often separated by razor-thin margins, the impact on oil prices could be significant. The weaker outlook in Asia is a story of shifting priorities and lingering problems. In China, the property sector—a major source of industrial demand—is still mired in debt and overcapacity issues. With construction activity down, demand for diesel, fuel oil, and other fuels has taken a hit. In India, oil consumption is still growing, but the pace is slowing. Government incentives for solar and wind power are beginning to chip away at growth rates that once looked unstoppable. India's pivot toward a more diversified energy mix is strategic, and it means that oil may no longer be a primary option for new energy demand. Finally, supply chains are shifting. The COVID-19 pandemic led many companies to diversify manufacturing and logistics operations, which has reduced the sheer volume of goods crossing the Pacific Ocean. Less shipping translates into less bunker fuel demand, which is another factor tempering growth. Geopolitics isn't helping either. The U.S. imposed a new round of tariffs in April 2025, sparking retaliatory measures and injecting fresh uncertainty into global trade. Early shipping data shows a measurable drop in container ship departures from major Asian ports—a likely reflection of cooling trade volumes. That drop-off ripples across the energy markets. Fewer ships mean fewer trucks picking up cargo, fewer planes moving goods, and less industrial activity overall. It's a stark reminder of how quickly policy decisions can impact oil demand—even before those impacts show up in earnings reports or refinery throughput numbers. For U.S. shale producers, slowing demand growth presents a familiar challenge: how to balance production with price. If supply keeps rising while demand growth cools, something has to give—and that something is usually price. Unless producers respond with discipline, we could see another cycle of oversupply and depressed oil prices. OPEC+ faces a similar dilemma. The cartel's ability to manage prices depends on its ability to anticipate demand—and respond in kind. With demand growth weaker than expected, production cuts may be back on the table. Refiners, particularly those with significant exposure to Asian markets, may also face narrower margins. If crude intake remains high but demand for refined products flattens, profitability will suffer. For investors, the story isn't all negative. Slower oil demand growth is a headwind, but it's not a disaster. Energy companies that have diversified into natural gas, petrochemicals, or renewable energy may be better positioned to weather the shift. It's also a good time to revisit how you assess oil companies. Earnings, cash flow, and debt management are always important—but so is strategic outlook. Companies that acknowledge the shifting landscape and adjust their capital allocation accordingly are likely to outperform those that stick to the 'drill, baby, drill' mindset. Despite the slowdown, oil isn't going away. Sectors like aviation, shipping, and petrochemicals still rely heavily on oil-based products, and that's unlikely to change in the near term. But the era of near-automatic demand growth may be coming to an end. What replaces it is a more balanced, nuanced market—one where efficiency, innovation, and adaptability carry more weight than sheer volume. For an industry long built on the assumption of constant growth, that's a profound shift. But it may also signal a transition to a more sustainable, diversified, and more resilient global energy system. By Robert Rapier More Top Reads From this article on Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Opinion - Why U.S.-Mexico energy interdependence must be strengthened
Over the last decade, the U.S. has emerged as an energy superpower, not only in terms of production but also as a dominant exporter of natural gas and refined petroleum products. This transformation has redefined the U.S. trade balance in energy, turning a long-standing deficit into a robust surplus. Nowhere is this shift more consequential than in the U.S.-Mexico energy relationship. The U.S. Energy Information Administration estimates that natural gas exports to Mexico reached 199.2 billion cubic feet in January. That number is stunning when we consider that in January of 1990, the U.S. exported less than 1 billion cubic feet to Mexico, and by January 2012 was still only exporting 23.4 billion. Today, Mexico imports more than 70 percent of its natural gas from the U.S., and a significant share of its gasoline, diesel and jet fuel as well, valued at $33.63 billion in 2024. These imports are not a luxury — they are essential for Mexico's industrial growth, transportation system and power generation. For Mexico, reliable access to competitively priced U.S. energy is essential to sustaining economic growth, enabling industrial competitiveness and stabilizing the electric grid. At the same time, for the U.S., Mexico has become an indispensable customer, so much so that any downturn in Mexican demand would ripple through U.S. refineries, gas producers and the infrastructure companies that have built pipelines and terminals to serve the southern market. This is a story of mutual interdependence, yet it is too often overlooked in political and policy debates in both countries. In times of flux for U.S foreign relations, and with a Mexican government committed to the principle of energy sovereignty, it is worth recognizing that the energy trade across our shared border is one of the most strategically important economic relationships we have — and one that deserves proactive stewardship. Mexico's demand for natural gas has grown dramatically in recent years, driven by a combination of industrial expansion and the shift from oil-fired to gas-fired electricity generation. Yet domestic production has not kept pace. Pemex, the state-owned oil and gas company, continues to underperform and investment in gas exploration and production has plummeted, while private investment has struggled to gain traction amid regulatory uncertainty. As a result, imports from the United States have filled the gap, with cross-border pipeline flows reaching record highs. In 2024, the U.S. exported over 1 million barrels per day of refined petroleum products to Mexico, making it the single largest market for U.S. refiners. Mexico's aging refinery fleet cannot keep up with domestic demand for gasoline and other products. The new Olmeca refinery at Dos Bocas, Tabasco, offers hope for Mexican refining, but without ongoing investment, other Mexican refineries will continue to operate at well below their capacity. Gasoline exports from the U.S. will continue to be essential for Mexico for many years to come. The stakes are high. Mexico's manufacturing sector, including its booming automotive and aerospace industries, depends on stable and affordable energy. So does the everyday functioning of its economy. If energy supplies were to falter due to political decisions, infrastructure failures or global price shocks, Mexico's economy would slow, with cascading effects across the region. For U.S. gas producers and refiners, Mexico represents more than a convenient export market — it is a crucial buffer against domestic oversupply and price volatility. The shale revolution has unlocked massive quantities of gas in Texas, Louisiana and Appalachia. Meanwhile, U.S. refineries, particularly along the Gulf Coast, are some of the most efficient and high-capacity facilities in the world. They depend on consistent offtake to remain profitable. The symbiosis is clear: Mexico needs reliable energy imports to power its economy, and the United States benefits enormously from growing Mexican demand. This dynamic has created jobs on both sides of the border, from Texas gas fields to Mexican manufacturing plants. It has also fostered deeper integration of infrastructure, with cross-border pipelines, rail links and storage facilities, with much more investment needed in the coming years. Yet this interdependence is not without risk. In recent years, political uncertainty and nationalist rhetoric have threatened to disrupt the flow of energy trade. Mexico's efforts to reassert state control over its energy sector, including revisions to electricity market rules, slow permitting for private infrastructure, and the nationalization of certain assets, have introduced friction into what was once a smooth and expanding partnership. In the U.S., political calls for energy dominance sometimes overlook the benefits of energy exports, while cross-border trade issues ranging from tariffs to environmental disputes can add further complexity. Climate-related concerns and the energy transition add another layer, as both countries seek to balance fossil fuel trade with renewable energy goals. If Mexico's economy stumbles due to political instability, energy shortages, or falling investment, demand for U.S. gas and fuel will decline. And that could spell trouble for American producers and workers who depend on that export income. Rather than retreating into nationalist positions or letting the energy relationship drift, policymakers on both sides of the border should treat U.S.-Mexico energy interdependence as a strategic asset. This means ensuring policy stability and regulatory cooperation to maintain open energy trade channels. It means investing in cross-border infrastructure and exploring joint ventures in storage, liquefied natural gas and clean energy to future-proof the relationship. It means reinvigorating the bilateral energy dialogue to manage risks and formally strengthening the energy relationship through the USMCA review. In the years ahead, Mexico will need more energy to power its ambitions, and the U.S. is uniquely positioned to supply it. But that relationship must be nurtured, not taken for granted. A strong, growing Mexico is good for the U.S. And a thriving U.S. energy sector is good for Mexico. The energy relationship that binds our countries is not just a pipeline, but a shared economic future. Let's protect it. Duncan Wood is an independent analyst and former president of the Pacific Council on International Policy. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
6 days ago
- Business
- The Hill
Why U.S.-Mexico energy interdependence must be strengthened
Over the last decade, the U.S. has emerged as an energy superpower, not only in terms of production but also as a dominant exporter of natural gas and refined petroleum products. This transformation has redefined the U.S. trade balance in energy, turning a long-standing deficit into a robust surplus. Nowhere is this shift more consequential than in the U.S.-Mexico energy relationship. The U.S. Energy Information Administration estimates that natural gas exports to Mexico reached 199.2 billion cubic feet in January. That number is stunning when we consider that in January of 1990, the U.S. exported less than 1 billion cubic feet to Mexico, and by January 2012 was still only exporting 23.4 billion. Today, Mexico imports more than 70 percent of its natural gas from the U.S., and a significant share of its gasoline, diesel and jet fuel as well, valued at $33.63 billion in 2024. These imports are not a luxury — they are essential for Mexico's industrial growth, transportation system and power generation. For Mexico, reliable access to competitively priced U.S. energy is essential to sustaining economic growth, enabling industrial competitiveness and stabilizing the electric grid. At the same time, for the U.S., Mexico has become an indispensable customer, so much so that any downturn in Mexican demand would ripple through U.S. refineries, gas producers and the infrastructure companies that have built pipelines and terminals to serve the southern market. This is a story of mutual interdependence, yet it is too often overlooked in political and policy debates in both countries. In times of flux for U.S foreign relations, and with a Mexican government committed to the principle of energy sovereignty, it is worth recognizing that the energy trade across our shared border is one of the most strategically important economic relationships we have — and one that deserves proactive stewardship. Mexico's demand for natural gas has grown dramatically in recent years, driven by a combination of industrial expansion and the shift from oil-fired to gas-fired electricity generation. Yet domestic production has not kept pace. Pemex, the state-owned oil and gas company, continues to underperform and investment in gas exploration and production has plummeted, while private investment has struggled to gain traction amid regulatory uncertainty. As a result, imports from the United States have filled the gap, with cross-border pipeline flows reaching record highs. In 2024, the U.S. exported over 1 million barrels per day of refined petroleum products to Mexico, making it the single largest market for U.S. refiners. Mexico's aging refinery fleet cannot keep up with domestic demand for gasoline and other products. The new Olmeca refinery at Dos Bocas, Tabasco, offers hope for Mexican refining, but without ongoing investment, other Mexican refineries will continue to operate at well below their capacity. Gasoline exports from the U.S. will continue to be essential for Mexico for many years to come. The stakes are high. Mexico's manufacturing sector, including its booming automotive and aerospace industries, depends on stable and affordable energy. So does the everyday functioning of its economy. If energy supplies were to falter due to political decisions, infrastructure failures or global price shocks, Mexico's economy would slow, with cascading effects across the region. For U.S. gas producers and refiners, Mexico represents more than a convenient export market — it is a crucial buffer against domestic oversupply and price volatility. The shale revolution has unlocked massive quantities of gas in Texas, Louisiana and Appalachia. Meanwhile, U.S. refineries, particularly along the Gulf Coast, are some of the most efficient and high-capacity facilities in the world. They depend on consistent offtake to remain profitable. The symbiosis is clear: Mexico needs reliable energy imports to power its economy, and the United States benefits enormously from growing Mexican demand. This dynamic has created jobs on both sides of the border, from Texas gas fields to Mexican manufacturing plants. It has also fostered deeper integration of infrastructure, with cross-border pipelines, rail links and storage facilities, with much more investment needed in the coming years. Yet this interdependence is not without risk. In recent years, political uncertainty and nationalist rhetoric have threatened to disrupt the flow of energy trade. Mexico's efforts to reassert state control over its energy sector, including revisions to electricity market rules, slow permitting for private infrastructure, and the nationalization of certain assets, have introduced friction into what was once a smooth and expanding partnership. In the U.S., political calls for energy dominance sometimes overlook the benefits of energy exports, while cross-border trade issues ranging from tariffs to environmental disputes can add further complexity. Climate-related concerns and the energy transition add another layer, as both countries seek to balance fossil fuel trade with renewable energy goals. If Mexico's economy stumbles due to political instability, energy shortages, or falling investment, demand for U.S. gas and fuel will decline. And that could spell trouble for American producers and workers who depend on that export income. Rather than retreating into nationalist positions or letting the energy relationship drift, policymakers on both sides of the border should treat U.S.-Mexico energy interdependence as a strategic asset. This means ensuring policy stability and regulatory cooperation to maintain open energy trade channels. It means investing in cross-border infrastructure and exploring joint ventures in storage, liquefied natural gas and clean energy to future-proof the relationship. It means reinvigorating the bilateral energy dialogue to manage risks and formally strengthening the energy relationship through the USMCA review. In the years ahead, Mexico will need more energy to power its ambitions, and the U.S. is uniquely positioned to supply it. But that relationship must be nurtured, not taken for granted. A strong, growing Mexico is good for the U.S. And a thriving U.S. energy sector is good for Mexico. The energy relationship that binds our countries is not just a pipeline, but a shared economic future. Let's protect it. Duncan Wood is an independent analyst and former president of the Pacific Council on International Policy.
