Cuba could become U.S. oil supplier at embargo's end

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Published at: www.mcclatchydc.com

Cuba: new OPEC member?

June 12, 2009

Analysis by: GLG Expert Contributor

Altough Cuba may have crude reserves... are they exploitable?Venezuela's oil exports to Cuba increased 22%

Cuban Oil and the Embargo

June 9, 2009

Analysis by: GLG Expert Contributor

The U. S. Geological Service estimates that the Exclusive Economic Zone contains 4.6 billion barrels of oil and 9.8 billion cubic feet of natural gas.  Cuba which estimates reserves at 20 billion barrels, began to sell concessions for exploration and development in the 70,000 square mile zone in 2001. The problem for the Cuban's now is that the primary partner in exploration, development and refining capacity upgrades is Petroleos de Venezuela (PDVSA), which has suffered from a serious reduction in oil revenues, as well as adverse effects from operational difficulties and government liquidity problems. So the real question is how does the embargo affect that development and who is poised to take immediate advantage?

Ending Cuba Embargo - Will It Happen Soon Enough For U.S. Energy Interests?

June 8, 2009

Analysis by: GLG Expert Contributor

Various commentators have stated that significant quantities of crude oil exist off of Cuba's coastline.  The question thus becomes: who will provide the investment necessary to extract and refine this crude for consumption? At present, U.S. law prevents U.S. firms from participating in contracts to extract and refine Cuban crude. While that same U.S. law may penalize non-U.S. firms engaging in such extraction by limiting their access to U.S. markets, it would not ban such business in third markets. For many years, large majorities in Congress have signaled their support for loosening or ending the embargo against Cuba.  But embargo supporters' adept use of parliamentary processes has enabled retention of the embargo to this day.  it is by no means clear that the U.S. government will assign priority to changing this policy in the near future.