API welcomes passage of US/Mexico oil and natural gas agreementNews // July 1, 2013
The American Petroleum Institute's Senior Director of Federal Relations Khary Cauthen has welcomed passage of HR 1613 in the US House of Representatives that would establish a transboundary agreement to allow joint energy development projects between US energy companies and the Mexican state owned oil company.
“This agreement with Mexico would help US oil and natural gas companies develop energy resources in the Gulf of Mexico and in turn create more jobs and enhance our energy security,” Cauthen said. “The agreement creates certainty for American companies looking to invest in new energy projects by establishing a process for managing oil and gas reservoirs along the boundary region in the Gulf of Mexico.”
Cauthen said the legislation would also exempt any related oil and gas development activities from anticompetitive reporting requirements under the SEC 1504 rules that require US companies to report payments to foreign governments on a project-by-project basis.
“US companies are already leading the way to increase transparency in payments made to foreign governments through a project backed by the World Bank and the United Nations,” Cauthen said.
“But the SEC reporting rule damages the competitiveness of American companies by requiring businesses to report proprietary information that can be obtained by our global competitors. The rule could cost American jobs by limiting our access to energy resources abroad.”