S. Prt. 112-43: Oil, Mexico, and the Transboundary Agreement, A Minority Staff Report Prepared for the Use of the Committee on Foreign Relations, United States Senate, One Hundred Twelfth Congress, Second Session, December 21, 2012
United States. Government Printing Office
"Senator Richard G. Lugar, Ranking Member of the Senate Foreign Relations Committee, requested senior professional staff members to review opportunities for enhanced U.S.-Mexico engagement on oil and gas issues including the U.S.-Mexico Transboundary Agreement, which requires Congressional action to take effect. As part of that review, members of Senator Lugar's staff traveled to Mexico City in October 2012 to meet with then President-elect Enrique Peña Nieto's transition team and leaders from the Mexican Congress, PEMEX, the Mexican energy regulator Comisión Nacional de Hidrocarburos, U.S. industry, academic specialists, and U.S. officials at Embassy Mexico City. This report contains their public findings and recommendations. Congressional attention to the Mexican energy situation is critical for understanding bilateral issues between our countries and for consideration of U.S. energy security. The United States has a profound interest in economic prosperity and political stability in Mexico, and energy is foundational to both interests. Oil is vital for the Mexican federal budget, underwriting both social programs and law and order, and the oil industry is an important aspect of broader economic activity. Stability and growth, or lack thereof, in Mexico's oil and gas sector can directly impact issues of bilateral concern. Mexico is also important for U.S. energy security, providing a nearby and politically reliable source for oil imports. Recently overtaken by Saudi Arabia, Mexico has been the second largest source of oil imports to the United States, with Canada being the largest. However, falling Mexican oil production and rising demand led to increases in U.S. imports from the Middle East, and maintaining the current levels of Mexican oil production, let alone achieving rapid growth in production, have a dubious future without reforms. Thorough energy security policy in Washington requires constant assessment of the Mexican oil industry. If Mexico does not reform its domestic energy production situation, the U.S. cannot rely on current levels of imports."
  • URL
  • Publisher
    United States. Government Printing Office
  • Report Number
    S. Prt. 112-43; Senate Committee Print 112-43
  • Date
  • Copyright
    Public Domain
  • Retrieved From
    Government Printing Office, Federal Digital System: www.gpo.gov/fdsys/
  • Format
  • Media Type
  • Subject
    Politics and government/International relations
  • Resource Group
    Congressional reports

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