U.S., Mexico Agree To Cooperate On Energy

LOS CABOS, Mexico — The United States and Mexico agreed Monday to work together when drilling for oil and gas below their maritime border in the Gulf of Mexico.

Secretary of State Hillary Rodham Clinton and Mexico's foreign minister signed the deal at a ceremony in the Mexican resort of Los Cabos as Mexican President Felipe Calderon and U.S. Interior Secretary Ken Salazar looked on.

The cooperation stems from an understanding that President Barack Obama and Calderon reached in 2010 to share in the profits and work together to avoid spills.

Clinton said the deal would "ensure safe, efficient, responsible exploration of the oil and gas reservoirs in the Gulf of Mexico."

"These reservoirs could hold considerable reserves that would benefit the United States and Mexico alike," she said.

But they don't necessarily stop neatly at our maritime boundary," Clinton added. "This could lead to disputes if a company discovers a reservoir that straddles the boundary – disputes, for example, over who should do the extraction and how much they should extract."

Clinton said the agreement will prevent such disputes and create new business opportunities.

Calderon said the deal creates clear rules and should erase any fear among Mexicans that their oil will be appropriated by Americans.

And he stressed that "operations will be done in a safe and responsible manner, with full respect to the environment."

Under the agreement, U.S. companies will now be allowed to partner with Mexico's national oil company in drilling. But neither country is constrained by the other.

If the two governments can't agree on how to exploit a reservoir, either can take its share unilaterally.

The U.S. Interior Department said the agreement makes nearly 1.5 million acres of the U.S. Outer Continental Shelf more accessible for exploration and production activities.

The area could contain 172 million barrels of oil and 304 billion cubic feet of natural gas, it said.

"This is an area larger than the state of Delaware," Salazar said.

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Comments

[Shantonu Basu]

05:56 PM on 02/22/2012

Does anyone know where to find the actual tex of the agreement? It is not on the U.S. State Department's website, nor it it on the Mexican State Department (SRE) website.

I wonder if it is a fair deal for Mexico. The orignal AP story said that, "But neither country is constrained by the other. If the two governments can't agree on how to exploit a reservoir, either can take its share unilaterally."

What does that last line mean? What sort of deal is that? If we can't agree, then go in and take your share? That's not a real agreement, is it?

This sort of unfairness (if it is indeed unfair) impacts the working classes in the United States because the poorer Mexico is, the poorer Mexicans will be. If there are a lot of poor Mexicans, that will increase the number of undocumented Mexican worker (and depress wages in Mexican factories). This cannot but lead to further erosion of the working class rights here in the United States.

[Mrs Robinsons]

09:50 PM on 02/21/2012

Everytime her face shows up in the news...
I have a bad day.

[viper1ex19]

07:18 PM on 02/21/2012

"SOLAR ENERGY"

You don't have to drill for it, and you don't have to blowup other countries for it.

simple,,,

[ConnieDr]

01:41 PM on 02/21/2012

Do American companies really want to try this again with mexico since the last time they did mexico decided to nationalize their oil industry and American companies got screwed$ Guess this more of that "spreading the wealth" obama likes$$$ American companies foot the bill and mexico gets the spoils$$$

[Ariel Finn]

11:37 AM on 02/21/2012

It's about time! Now we need to pass the Keystone Pipeline and start drilling in Alaska and off the Pacific and Atlanta coast. Then and only then we will no longer be on our knees to Arab Oil Cartel.

[Dennis Higgins]

11:48 AM on 02/21/2012

...and when the oil runs dry??? The real money is in alternative FUEL. The world will always need oil...we just don't need it as fuel. It is running dry so change now BEFORE we run out.

[Ariel Finn]

12:19 PM on 02/21/2012

Right now, the U.S., economy is getting dry because we have not invested in oil production in the U.S. We are spending at least 300 billion to 400 billion a year on imported oil. Alternative fuel might be perfect for the far future, but meanwhile, Obama's oil and energy policies are straggling our economy and hurting Americans.

[Know-some-secrets]

11:58 AM on 02/21/2012

Oh Hillary and her loyalists who want to forget the environment and give the oil companies huge profits, so they can fill the pockets of her crony staff and donors who are their high paid lobbyists.

Hillary's effort to railroad the Keystone Pipeline through self-serving State Department review was truly shameful.
http://www.huffingtonpost.com/brendan-demelle/hillary-clintons-keystone_b_997523.html

[Ariel Finn]

01:10 PM on 02/21/2012

Unfortunately, you nailed it. The Republicans are the Democrats (including Hilary and President Obama) are all corrupt and they're in bed with the oil companies. So mine as well get cheap oil instead of paying $4-5 a gallon to the Arab Oil Cartel!

[mamacat]

09:18 AM on 02/21/2012

This looks like a step forward for both countries. Such common sense is often lacking in foreign affairs. I am reminded of the recent difficulties between China and all of the sea-faring countries near its borders - it would seem that China is more intent on imposing its will on its neighbors than in working with them for mutual benefit.

[new beginning]

08:34 AM on 02/21/2012

So in signing this agreement, I can see what the benefit is for Mexico. Its "partnering" with the deep pocketed USA. But what is in it for US? What are THEY bringing to the table?

[Nardwilly]

08:08 AM on 02/21/2012

Good for the USA,

[Know-some-secrets]

06:36 AM on 02/22/2012

How?

[vicla1942]

08:00 AM on 02/21/2012

We need a north american price of oil .Regulate the price like a utility.
Make it illegal to bring oil here from opec countries.Require 10% of
all corporate owned stations to have alternative fuel outlets.We have
a 100 year supply of nat gas.Solar powered roofs for battery operated
cars would help.Our energy policy should be like Germany and Brazil.

[Know-some-secrets]

06:39 AM on 02/22/2012

noble proposal, but the greedy oil companies who own most of Washington will never give up their capacity to profiteer. the only hope of serving the needs of consumers and the environment is shifting invesment to development of affordable alternative fuels, and affordable, convenient, dependeable mass transit.

[vicla1942]

07:01 AM on 02/22/2012

As long as congress accepts lobbyist money, we will not have a
government that acts in the best interests of the majority of americans, look at
Brazil and Germany no opec oil.We actually export oil,that should be illegal.
We have 100 year supply of nat gas, we can use solar roofs to electrify
battery operated cars.The air car is a commuter car developed in France
with hugh potential.We need a energy marshall plan.

[pinetar]

07:40 AM on 02/21/2012

Look this up at the goverments EIA site...Bill Clinton and his partner expoerted more United States Crude Oil than all presidents combined on our history and GW Bush in his last year (remember the spike in price), his export of crude exploded...The results are they both made fortunes giving speeches to the oil cartels around the world...

[tacevad]

07:36 AM on 02/21/2012

Easy oil is becoming a thing of the past, the more difficult and therefore dangerous oil we reach for , the higher the cost. The tipping point will only be reached when cheap oil is gone and cheaper Green renewable energy becomes more and more commonplace. Don't believe it? go back to your whale oil lamps and horsedrawn carriage with your beaverskin hat. To denegrate renewables and deny them their growing pains will only serve to make all energy more expensive in the long run.

[parlimentMike]

06:53 AM on 02/21/2012

America, securing yesterday's energy policy for tomorrow, today.

[june53]

11:52 AM on 02/21/2012

Almost, but not quite. I see it as forward thinking on a very
backward issue. We need to stop letting the tail dictate to
the dog what we do -or- we'll never make any progress. This
is an excellent example of prudent partnering, not hysterical
gibber-speak against sanity and safety in the name of a damn
pipeline that crosses the middle of our country and benefits a
relative few 'jobs grown' against environmental damage. (ie:
heard about the 4.0 Earthquake this morning in Missouri?)

[parlimentMike]

11:58 AM on 02/21/2012

This mornings earthquake was right on the New Madrid fault and it's been a busy week for earthquakes worldwide. I don't blame this one on fracking like all the ones around Greenbriar AR.

[pinetar]

06:06 AM on 02/21/2012

1 gallon of water expands 1,600 times when heated and oil isnt needed to do so..So why arent they utilizing the most efficient form of power, heat, etc.. CONTROL, CONTROL, CONTROL!! Nothing is simpler or cleaner than a steam engine...Jay Leno runs one of his antique autos all day long on just a ffew pieces of WOOD!..

[Hector Boag]

07:30 AM on 02/21/2012

But doesn't burning wood also put carbon dioxide and other pollutants into the air as well?

[pinetar]

07:43 AM on 02/21/2012

So do the enormous forest fires and volcano eruptions..Stop buyng the hype and shilling for the oil industrialists...please!. A large ship was propelled by a tiny steam engine as far back as the year 420 AD..look it up...There are other fuels besides OIL...Liquid gas, propane and the like...

[yeti7]

08:32 AM on 02/21/2012

take a look a sterling engines

[pinetar]

08:39 AM on 02/21/2012

There are more moving parts in a combustion engine, hundreds more than a steam engine and combustion engines that have Catalyic Converters pollute 100 times more than the older vehicles and 1,000 times more than any steam operated engine..look it up...please...

[pinetar]

06:00 AM on 02/21/2012

Arent these DEALS the secretaries make done in secret>?? What gives them the authority to sign trake agreements...Look it up!! I smell another con job..America, where have you gone...

[morgan1]

05:40 AM on 02/21/2012

This will never work. The US will screw Mexico over profits, the where and when and when there is an accidental spill (Which will occur) the US will shift the blame to Mexico for damages and cleanup. This is how the US does business and all countries know this. i wonder what else was promised in order to get this photo moment?

[Hector Boag]

07:32 AM on 02/21/2012

I was thinking the same thing only in reverse positions.