The nearshoring trend holds big potential for energy demand in Mexico, though numerous factors could hinder the country’s ambitions as a haven for big business relocation, according to new research published by Rice University’s Baker Institute for Public Policy. 

Nearshoring refers to companies moving their production and supply chains from China to North America – namely Mexico – in order to more easily access the U.S. market. Projections of robust growth in energy demand from Mexico are underpinned in part by expectations of continued growth of nearshoring, particularly in energy-intensive industries such as manufacturing.

“For most of the past 60 years, with limited exceptions, Mexico and the U.S. have cooperated to pursue mutual benefits, such as creating jobs,...