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Border Battle Brews Over Mexico's Undersea Oil

Eight miles north of the maritime border with Mexico, in waters a mile and a half deep

Border Battle Brews Over Mexico's Undersea Oil

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.

As tall as the Eiffel Tower, the floating production facility will be anchored to the ocean floor by moorings spanning an area the size of downtown Houston. Slated to begin operating late next year, this leviathan known as Perdido (or Lost) will cost billions and be capable of pumping 100,000 barrels of crude a day.

Mexicans fear that companies drilling in U.S. waters close to the border will suck Mexican crude into their wells. Actor Daniel Day-Lewis' fictional oilman in "There Will Be Blood" likened the concept to siphoning a rival's milkshake.

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