American Petroleum Institute (API) Senior Director of Federal Relations, Khary Cauthen, has welcomed the passage of H.R. 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 oil company.
According to Cauthen, this agreement will help US oil and natural gas companies to develop energy resources in the Gulf of Mexico. As a result, more jobs will be created and American energy security will be enhanced. Furthermore, 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 has additionally highlighted how the legislation will exempt 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.
This is advantageous because the SEC reporting rule can arguably damage competitiveness by requiring US firms to report proprietary information that can be obtained by global competitors.
The API has additionally thanked Rep. Jeff Duncan for his leadership on this issue.
Adapted from press release by Emma McAleavey
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