Title: US/Mexico Trade Cross-border Energy Interconnections at the Forefront?
URL(s):

http://www20.cera.com/eprofile?u=35&m=2643;

http://www20.cera.com/eprofile?u=35&m=2644;


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INCREASING POLITICAL AND MARKET PRESSURES TO ERASE THE US/MEXICO ENERGY BORDER

The policy focus in the administrations of both Vicente Fox in Mexico and
George W. Bush in the United States, combined with the high-profile energy
crisis in California and record-level gas prices, has pushed energy trade and
interconnections to the forefront of the political agenda. Cross-border energy
flows will likely be a prominent theme between the two countries in the months
ahead. However, critical technical, regulatory, and financing constraints must
be overcome before these energy flows reach the potential indicated by current
market fundamentals.

Key issues affecting US-Mexico cross-border energy flows include
* asymmetrical regulatory and market structures

* power grid synchronization issues

* high investment needs in a changing regulatory environment

* uncertainty of long-term regional supply-demand imbalances


**end**

Follow above URL for complete CERA Private Report (18 printed pages).


E-mail Category: Private Report
CERA Knowledge Area(s): Mexico Gas & Power, Western Energy


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