Mexico and U.S Agree on Oil

http://www.nytimes.com/2012/02/21/world/americas/mexico-and-us-agree-on-oil-and-gas-development-in-gulf.html?ref=earth

The United States signed and agreement with Mexico stating that they would collaborate on creating more strict regulations on the deep sea oil drills along the maritime border in the Gulf of Mexico. This agreement is crucial to the future of drilling in this area because it is believed by most experts that Mexico lacks the resources to deal with an oil spill. With the memory of the BP oil spill fresh in everyone's minds increased safety measures become crucial.

Before the BP oil spill, the biggest oil spill had been in 1979 at the hands of Pemex in the Gulf. This fact makes this agreement with the U.S. that much more crucial. Mexico plans on constructing more drilling sites at a depth that is of high risk. With increased regulation, the possibility of a spill will be greatly reduced.

The introduction of these drills has the potential to lower costs in the U.S. though, not as much as expected because of the increase in oil consumption of the Mexican working class.