S.1035 - To prohibit certain exports of natural gas produced or refined in the United States, and for other purposes. (119th Congress)
Summary
S.1035 aims to prohibit the export of natural gas produced or refined in the United States to foreign countries, specifically targeting scenarios where the gas is intended for re-export through foreign LNG terminals. The bill is motivated by concerns regarding corruption and instability in countries like Mexico, which could compromise the economic and national security interests of the United States. The bill cites Mexico's ranking in Transparency International's Corruption Perceptions Index and alleged violations of the United States-Mexico-Canada Agreement (USMCA) as justification for the export prohibition.
Expected Effects
If enacted, S.1035 would restrict the export of natural gas from the U.S. to countries like Mexico for further export. This could lead to a decrease in natural gas exports overall and potentially impact energy trade relationships. It may also incentivize domestic consumption of natural gas and affect the energy market dynamics within the United States.
Potential Benefits
- Enhanced National Security: Reduces reliance on potentially unstable or corrupt foreign entities for energy resources.
- Economic Advantages: Encourages domestic use of natural gas, potentially lowering energy costs for American consumers and businesses.
- Trade Leverage: Could serve as a tool to encourage Mexico to adhere to the USMCA and address corruption concerns.
- Protection of Pemex Employees: Aims to protect Pemex employees from being threatened, kidnapped, and tortured by criminal cartels in Mexico to provide information on pipelines.
- Addresses Fuel Theft: Aims to reduce fuel theft in Mexico.
Potential Disadvantages
- Strain on International Relations: Could damage relationships with countries like Mexico, a key trading partner.
- Economic Impact on Energy Sector: May negatively affect U.S. natural gas producers who rely on export markets.
- Potential for Retaliation: Could lead to retaliatory trade measures from affected countries.
- Increased Domestic Supply: An increase in domestic supply could lead to a drop in prices, hurting domestic producers.
- Limited Scope: The bill's focus on re-export may not address all concerns related to energy security and trade.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is complex. Congress has the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3), which supports the bill's authority to restrict exports. However, the bill's potential impact on international trade agreements and relationships could raise questions about the balance of power between the legislative and executive branches in foreign policy. The bill does not appear to infringe on any individual rights or liberties protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).