Energy economist in L.A. Times

Energy economist in L.A. Times

Eight miles north of the maritime border with Mexico, in waters a mile and a half deep, Shell Oil Co. is constructing the most ambitious offshore oil platform ever attempted in the Gulf of Mexico. Companies working in U.S. waters wouldn't have to worry about Mexico taking legal action if it were determined that Mexican crude was ending up in their wells. International law and commercial custom dictate that communal reservoirs be shared. But the U.S. has not ratified a key United Nations treaty on maritime law, which could complicate Mexico's effort to pursue any complaint over pilfered crude. Nevertheless, oil companies don't like surprises, said Michelle Foss, chief energy economist at the University of Texas at Austin's Bureau of Economic Geology. "You're not going to put a billion dollars at risk if . . . you might have to suspend operations because of an international dispute," she said.

Los Angeles Times
Oil, Water a Tense Mix
June 5