Why the Gulf of Mexico is Important to Small Business

marine oil production platform

 

 

 

 

Cooperation With Mexico

The United States and Mexico recently reached an agreement that would allow oil and gas drilling in more than 1.3 million acres in the Gulf. This is good news for U.S. consumers and small business, as additional oil supplies close to consumers keep transport costs low. The agreement, signed in February 2012 by then-U.S. Secretary of State Hillary Clinton and Mexican Foreign Secretary Patricia Espinosa, establishes a legally binding framework for U.S. companies to develop offshore energy projects with Mexico state-owned oil company Pemex. This acreage is located 200 miles south of the mouth of the Mississippi River and includes areas where the water is almost 11,000 feet deep. To fully exploit any recoverable reserves, companies will rely on the technical expertise of major U.S. oil companies and their deep financial pockets.

Without this agreement, Mexico’s status as the U.S.’s No. 2 oil producer is in jeopardy. Mexico has seen its offshore oil production drop for seven straight years. At current reserve-to-production ratios, the country has about 10 years of proven reserves of crude oil remaining. The areas that are part of the agreement may hold as much as 170 million barrels of oil and 304 billion cubic feet of natural gas, according to the U.S. Bureau of Ocean Energy Management. Being able to exploit reserves of this magnitude and depth highlights the attention that will need to be paid to safety issues. U.S. and Mexican officials are keen on working together to ensure projects meet the safety standards of both nations and lay the framework for more cooperation to develop uniform safety guidelines.

 

 

 

 

Going Strong

Mark Twain made his famous statement after hearing that his obituary had mistakenly been published in the New York Journal, and he went on to publish many great works. Almost one year ago, the Gulf of Mexico was being referred to as the “Dead Sea” by the exploration and production industry. We now know that the prediction of its death is also premature.

Other articles by Mark:
Small Business Coping With High Gas Prices

Mark Robinson is the founder and president of Corporate Writing and Editing LLC, a Washington, D.C.-based thought-leadership marketing company. He most recently served as the marketing and communications director for the Global Energy & Resources practice at Deloitte Touche Tohmatsu Limited. During his years at Deloitte, Mark led many successful and high-profile global marketing campaigns using social media, conference sponsorships and executive-level appearances, which not only increased revenue but increased brand awareness. Prior to working at Deloitte, Mark served in an executive level position within public relations at Exxon Mobil Corporation. Mark received his doctorate in international business management, with a focus in international marketing, from the International School of Management. Mark provides Latin Business Today insights on energy and its impact on business.graph1

 

 

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