LOS CABOS, Mexico, Feb. 20 (UPI) -- Mexican and U.S. leaders signed an agreement Monday governing the exploration and development of oil and gas reservoirs along the U.S.-Mexican maritime border.
The Trans-boundary Agreement eliminates uncertainties on the development of trans-boundary resources in the Gulf of Mexico, U.S. Interior Secretary Ken Salazar said during a signing ceremony in Los Cabos, Mexico.
Nearly 1.5 million acres of the U.S. Outer Continental Shelf will now be made more accessible for exploration and production activities, officials said. The Interior Department's Bureau of Ocean Energy Management indicated the area could have up to 172 million barrels of oil and 304 billion cubic feet of natural gas.
The agreement sets up a framework for U.S. offshore oil and gas companies and Mexico's Petroleos Mexicanos to jointly develop trans-boundary reservoirs, the Interior Department said in a release. The agreement also opens up resources elsewhere in the gulf that had been off limits to both countries under a previous treaty.
"The Obama administration is committed to the responsible expansion of domestic energy production," Salazar said. "This agreement makes available promising areas in the resource-rich Gulf of Mexico and establishes a clear process by which both governments can provide the necessary oversight to ensure exploration and development activities are conducted safely."
In May 2010, Presidents Obama and Felipe Calderon committed to reaching an agreement to jointly develop reservoirs determined to be trans-boundary. Now that the agreement is signed, both countries will work through their domestic systems to bring the agreement into force.
"At a time when we are working hard to both secure energy supplies and shift to more environmentally appropriate means of extracting fossil fuels -- but also adding immeasurably to our search for renewable energy -- this agreement is a win-win," U.S. Secretary of State Hillary Clinton said. "These reservoirs could hold considerable reserves that would benefit the United States and Mexico alike."
She said the agreement signed Monday offered proof of how Mexico and the United States "come together to solve shared challenges."
"From our earliest days, the Gulf of Mexico has been a source of unity for our peoples and our countries," Clinton said. "And the steps we are taking today will help make sure it remains that way for decades to come."
