Opportunities for hydrocarbon exploitation in the Gulf of Mexico look set to expand following an agreement between Mexico and the US to open up part of the western Gulf to oil and gas companies.
The agreement lifts a moratorium on drilling in an area that is expected to contain 172m barrels of oil in addition to significant reserves of natural gas.
On 20 February 2012, Hillary Clinton, the US Secretary of State, and Mexican Foreign Minister Patricia Espinosa met in Los Cabos, Mexico, to sign the US-Mexico Transboundary Hydrocarbons Agreement, opening up a significant part of the western Gulf of Mexico to offshore hydrocarbon drilling. As a result, approximately 1.5m acres of the US continental shelf – previously covered by a drilling moratorium – will now be available to oil and gas companies to exploit. (more…)