2017 US Mexico Agenda

•North American energy markets are more interconnected than ever before – not only across geographies, but across commodities as well.Future oil and NGLs prices are expected to have a significant impact on domestic natural gas production trends. The regulatory and political landscape will likely shape the timing and pace of investment in new infrastructure. On the demand side, the size and timing of natural gas exports (via Mexican pipelines and/or LNG liquefaction facilities) will be driven increasingly by global supply/demand factors. Gas buyers will need to consider more variables (including global weather patterns, infrastructure outages, geopolitical risks) in determining their future price outlooks. All of these factors could potentially add even more volatility to an already ever-changing domestic picture, reinforcing the need for a robust risk management program.