Hillary signs agreement with Mexico over oil in Gulf

Work never stops for Hillary. Even on President’s Day she was meeting with Mexican Foreign Minister, Patricia Espinosa, and signed an agreement stating the development of oil and gas reservoirs in the Gulf of Mexico.
This agreement between the US and Mexico is historic as it’s the first of its kind. Now American companies, along with Petroleos Mexicanos, will work towards extracting oil and gas resources from the gulf. These companies will be regulated under a legal framework, which was a part of the signed agreement between the two countries.
There is currently an oil moratorium in the gulf because prior to this agreement, Mexico and the US were unaware about who owned this region, the resources found in it, and how the profits would be divided. However, the agreement will end this moratorium and allow for both Mexican and American companies to begin developing rigs and locating resources. Because exploration will begin in the Gulf of Mexico, any reservoirs found will be jointly exploited by both nations and the profits extracted will be shared as well.
Of course it’s obvious to many that there are likely to be disputes about who claims what reservoir (if it straddles the agreed upon boundary) and how much oil can be extracted from each.
The good news, with the agreement, each country and the companies are forced to operate under strict safety laws and environmental rules and regulations.
In 2010, Mexico was considered the 2nd largest source of US oil imports, accounting for about 1.3 million barrels per day.








