U.S.-Mexico Energy Cooperation: The Untapped Partnership That Could Transform North America

Energy Cooperation

Beyond the Headlines

The U.S.-Mexico relationship often dominates news cycles with immigration debates and trade disputes. Yet the most transformative opportunity between these neighbors remains largely unexplored: comprehensive energy cooperation.

During my tenure as Director of the Arizona Department of Commerce and later as Chief of Staff at U.S. Customs and Border Protection, I witnessed how fragmented our energy approach truly is. Today, as CEO of Intermestic Partners, an international business advisory firm founded in 2011 specializing in cross-border trade and development, I work with top national and international companies navigating this exact challenge.

The current state of energy cooperation barely scratches the surface of what's possible.

The Reality Today

U.S. natural gas exports to Mexico have surged dramatically, reaching over 6 billion cubic feet per day. Mexico has become America's largest natural gas customer, dependent on U.S. supplies to power its manufacturing sector and electricity grid.

Meanwhile, Mexico supplies heavy crude oil that U.S. Gulf Coast refineries are specifically designed to process. This exchange works, but it's entirely fossil fuel focused and strategically limited.

Mexico possesses some of the world's richest solar resources, with potential capacity exceeding 5,000 GW. That's roughly 50 times Mexico's current total installed capacity and could power significant portions of North America.

The Trillion Dollar Opportunity

Economic Transformation

Expanded energy cooperation could trigger massive infrastructure investment on both sides of the border. Joint renewable energy projects in northern Mexico could supply power to southwestern U.S. states while creating manufacturing jobs in solar panel production, wind turbine assembly, and battery storage.

The USMCA trade agreement already provides the framework. What's missing is strategic vision and coordinated execution.

Energy Security Redefined

Energy independence shouldn't mean isolation. True energy security comes from diversified, reliable sources with trusted partners. The U.S. possesses capital and technology; Mexico offers geography, labor, and untapped renewable resources.

Consider this: solar and wind farms in Sonora and Chihuahua could provide reliable renewable power to Arizona, New Mexico, and Texas through upgraded transmission infrastructure. This isn't theoretical. The technology exists. The political will doesn't.

Environmental Imperative

Both nations committed to Paris Agreement targets. Neither can achieve them alone efficiently. Cross-border renewable energy development offers the fastest, most cost-effective path forward.

Shared investment in clean energy infrastructure reduces costs through economies of scale while accelerating the transition away from fossil fuels for both countries.

Learning from Success

The Nordic energy market offers a powerful blueprint. Denmark, Sweden, Norway, and Finland created an integrated energy system that balances renewable intermittency, maximizes efficiency, and reduces costs. Their cooperation transformed national energy policies and strengthened regional ties.

The European Union's energy integration, despite political complexity, demonstrates that neighboring nations with different regulatory systems can harmonize energy markets for mutual benefit.

North America has natural advantages these regions lack: shared borders, existing infrastructure, complementary resources, and a functioning trade agreement.

The Roadblocks

Political Volatility

Energy policy in both countries shifts with elections. Mexico's recent focus on strengthening Pemex and CFE represents a step backward from the energy reform that opened opportunities for private investment and cross-border collaboration.

U.S. political debates over fossil fuels versus renewables create uncertainty that discourages long-term infrastructure investment.

Regulatory Mismatch

Different regulatory frameworks, permitting processes, and environmental standards create friction. What's approved quickly in one country faces years of review in another.

Infrastructure Gaps

Transmission lines, pipelines, and grid interconnections require massive capital investment. Without binational coordination, private companies won't commit resources to projects that might face political opposition.

The Path Forward

Create a North American Energy Council

A binational entity with clear mandate, authority, and resources could harmonize regulations, coordinate infrastructure planning, and facilitate joint ventures. This shouldn't be another bureaucratic talking shop but an action-oriented body with measurable targets.

Incentivize Private Investment

Tax credits, loan guarantees, and streamlined permitting for cross-border renewable energy projects would unlock private capital. The infrastructure funding is available. The regulatory pathway isn't.

Start with Pilot Projects

Large-scale solar farms in northern Mexico with direct transmission to U.S. markets could demonstrate feasibility, build trust, and create templates for expansion.

As mayor of a border city in Arizona, I saw how small cross-border initiatives build momentum for larger cooperation. Energy can follow the same path.

Why This Matters Now

Global energy markets are transforming rapidly. China dominates solar panel manufacturing. Europe leads in wind technology. North America has the resources and relationship to compete, but only if the U.S. and Mexico act strategically together.

The alternative is continued fossil fuel dependency, missed economic opportunities, and failure to meet climate commitments.

Through Intermestic Partners, we help companies navigate cross-border complexities. The businesses succeeding in this space aren't waiting for perfect policy. They're building relationships, identifying opportunities, and moving forward despite obstacles.

The Bottom Line

Enhanced U.S.-Mexico energy cooperation isn't just good policy. It's economic necessity, security imperative, and environmental requirement.

The infrastructure exists to begin. The resources are available. The technology is proven. What's needed is leadership willing to think beyond short-term political cycles and build the integrated North American energy future both countries need.

Ready to explore cross-border energy opportunities or develop binational business strategies? Intermestic Partners works with companies and investors navigating the complexities of U.S.-Mexico commerce.

Let's build the future together.