Mexican American oil exploration agreement

Mexican American oil exploration agreement
Monday, February 20, 2012 - 3:49pm

Mexico and the United States sign an agreement today to help find more deep water oil resources in the Gulf of Mexico.

The deal was first negotiated last year and will lift the moratorium on oil exploration and production in western portions of the gulf.

The agreement - affecting U.S. companies and Mexican oil monopoly Pemex - also sets up legal guidelines for companies to mutually develop any trans-boundary reservoirs.

U.S. Secretary of State Hillary Clinton, in Mexico for the G-20 talks, praised this latest agreement.

"Today we are doing just that, following through on the commitment that Presidents Calderon and Obama made in 2010 to improve energy security for both countries and to ensure safe, efficient, responsible exploration of the oil and gas reserves in the Gulf of Mexico," says Clinton.

Clinton went on to say this comes at a time when both countries are working hard to both secure energy supplies and shift to more environmentally appropriate means of extracting fossil fuels.

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