Us Mexico Transboundary Hydrocarbons Agreement
We hope that the committee and the entire Senate will respond on page 812. There has been bipartisan and multi-party recognition of the opportunities offered by the cross-border agreement to the U.S. oil and gas industry, in addition to its geopolitical, energy and environmental benefits. Congress should dilate the poison pill so that they can all be realized without further delay. Senior Mexican government officials have indicated that the cross-border agreement could provide decisive momentum to the comprehensive energy reforms proposed by President Pea Nieto on August 12, 2013. Implementation would help to demonstrate that the interests of Mexico`s energy sector could be protected and that global energy security could be enhanced by common production regimes. This would strengthen the arguments of Mexican officials who must convince their colleagues and the public that reforms in the constitutional energy sector benefit Mexico`s national interests, a claim that is still somewhat at odds with a powerful and decades-old Mexican narrative. If the United States does not adopt the cross-border agreement and signal support for reforms, the Mexican government`s enthusiasm for cooperation with the United States could be calming and the status quo of the decline in production and its negative effects could persist. Finally, to boost production, Mexico has committed to unilaterally exploring the border area on the border with the Gulf. While the cross-border agreement provides an opportunity for a more robust security audit between the United States and Mexico, the U.S. lifting could, de facto, poison the well of bilateral cooperation in this area. As a result, communities on the U.S.
Gulf Coast are vulnerable to the negative environmental impact of Mexican exploration activities. The United States and Mexico today signed an agreement on the development of oil and gas reservoirs that cross the international maritime border between the two Gulf of Mexico countries. The agreement aims to improve the security of Energy Supply in North America and to support our shared duty to exercise responsible responsibility in the Gulf of Mexico. It is based on a commitment to the safe, efficient and fair use of cross-border reservoirs, with the maximum safety and environmental standards. WASHINGTON, D.C. – Interior Minister Sally Jewell today welcomed the passage of the Transboundary Hydrocarbons Agreement between the United States and Mexico, which establishes a framework for U.S. oil and gas companies and Mexican Oileos Mexicanos (PEMEX) to jointly develop cross-border reservoirs. President Obama signed it today in law, as part of the Bipartisan Budget Act. Stacked on the multi-party budget, the U.S. Congress passed the long-awaited cross-border hydrocarbon agreement with Mexico. It was signed in 2012 by Secretary of State Hillary Clinton and Secretary of State Patricia Espinosa and lays the groundwork for U.S.-Mexico cooperation on about 1.5 million hectares of shared oil and gas resources in the Gulf of Mexico. The agreement establishes guidelines for defining the scope of deep-sea fields and how companies acting on behalf of each country can cooperate to access these reserves and establishes mechanisms for dispute resolution, security and environmental protection.