Natural gas trade under the North American Free Trade Agreement

The regulatory climate of the natural gas market has changed to promote competition, as opposed to regulatory control, and the industry has responded by restructuring. Gas producers are now deregulated as to the price of their product and market entry and exit; transmission companies function to transport, store and balance gas, and local distribution utilities provide energy services rather than simply sell a natural gas commodity. The resource base of natural gas is large and growing. If the United States joins Canada and Mexico in a free trade agreement, the opportunity exists for doubling the potential supply of natural gas, providing further reason to develop this clean burning, relatively environmentally benign resource. NAFTA focuses on manufactured goods, services and intellectual property. The agreement would ease the transition of Mexico's energy sector into a competitive arena. US natural gas companies would benefit from increased opportunities in the energy services sector and increased exports of gas to Mexico