Posted on 02/02/2006 4:47:58 PM PST by snowsislander
MEXICO CITY (AP) -- In the two years since oil reservoirs were discovered off Cuba's coast, Canadian, Chinese, Indian and Norwegian companies have lined up to explore the potentially lucrative Caribbean waters.
U.S. corporations have watched the activity less than 60 miles south of Florida's coastline with their hands tied. U.S. oil exploration in Cuban waters -- along with most U.S. trade -- is prohibited under a 45-year-old U.S. embargo designed to undermine Fidel Castro's communist government.
"Right on our own border, there is going to be substantial activity in what is probably the last unexplored deposits in the world," said Kirby Jones, president of the U.S.-Cuba Trade Association.
This week, American energy executives meet their Cuban counterparts in the first private-sector oil summit between the two countries. Cubans hope to inform the businessmen of their country's oil potential while undermining the embargo, which has often frustrated American corporations.
The three-day meeting, which starts Thursday, is sponsored by the U.S.-Cuba Trade Association, along with Valero Energy Corp., the United States' biggest oil refiner, as well as the Louisiana Department of Economic Development and the Texas Port of Corpus Christi, among others.
Representatives from major U.S. oil companies are also expected to attend, Jones said.
Cuba's delegation is to be led by Fidel Rivero Prieto, president of the state oil company, CubaPetroleo. Officials from the Cuban Ministry of Basic Industries and Cuba's ministries of foreign trade, foreign investment and foreign relations will also be present, Jones said.
Aided by Canada's Sherritt International Corp., Cuba has steadily increased output of low-quality heavy crude and now produces 75,000 barrels daily, about half of what it needs. It imports the rest, much of it on favorable terms from political ally Venezuela.
It also has turned to other foreign companies to explore further. In 2004, the Spanish petrochemicals company Repsol-YPF SA announced it had found petroleum reservoirs off Cuba's coast. The first well was not considered commercially viable, but the company recently announced it will conduct a second exploration.
This time, however, Repsol will join up with China's largest offshore oil producer, CNOOC Ltd.; Norway's industrial company Norsk Hydro ASA, and India's state-owned Oil and Natural Gas Corp., ONGC.
The group will explore seven deep-water blocks estimated to contain more than 4 billion barrels in oil and gas reserves. Earlier explorations, however, turned up only modest discoveries.
The petroleum reservoirs have fueled the Cuban government's hopes of increased self-sufficiency amid tightened U.S. sanctions.
Since 2004, Cuba has pumped $1.7 billion into its energy sector with help from Canada, Europe and Latin America, Rivero Prieto said in a letter to the summit's organizers.
He said Cuba would welcome U.S. companies, adding, "Unfortunately that is not possible now."
"But we can begin the process to get to know each other, exchange contact information. ... In this way, both of us will be prepared to discuss real business opportunities as soon as that becomes possible," he said.
Mike Olivier, secretary of the Louisiana Department of Economic Development, agreed.
"Nobody wants to be left out, and the potential business in this new market for Louisiana companies is significant," Olivier said. "This meeting will allow companies from our state to meet Cuban counterparts and get in on the ground floor."
Jones said he would like to see the U.S. government relax its sanctions for the energy sector as it did for food and agricultural products under a 2000 law allowing sales to Cuba on a cash basis.
Cuban officials say they have contracted to buy $1.5 billion in American food since Castro's government began taking advantage of the change in 2001.
Cuba was almost wholly dependent on oil imports and imported most of its supply on extremely favorable terms from the former Soviet Union. It stepped up its own exploration after the collapse of the Soviet bloc.
| US firms eager to test oil potential off Cuba Miami Herald, FL - American energy executives this week will meet their Cuban counterparts in the first private-sector oil summit between the two countries. BY JULIE WATSON. ... |
| US execs to discuss Cuban oil reserves Seattle Post Intelligencer - By JULIE WATSON. MEXICO CITY -- In the two years since oil reservoirs were discovered off Cuba's coast, Canadian, Chinese, Indian ... |
| US officials to meet with Cubans over oil The State, SC - MEXICO CITY — In the two years since oil reservoirs were discovered off Cuba’s coast, Canadian, Chinese, Indian and Norwegian companies have lined up to ... |
| Cuban oil to be discussed in Mexico Daily Journal (subscription), Venezuela - MEXICO CITY (AP) – In the two years since oil reservoirs were discovered off Cuba’s coast, Canadian, Chinese, Indian and Norwegian companies have lined up ... |
| US executives to discuss Cuban oil reserves in Mexico meeting KESQ, CA - MEXICO CITY Canadian, Chinese, Indian and Norwegian energy companies have lined up to explore the potentially lucrative Caribbean waters off Cuba. ... |
| US companies wait as others explore in Cuban waters Houston Chronicle, United States - By JULIE WATSON. MEXICO CITY - In the two years since oil reservoirs were discovered off Cuba, Canadian, Chinese, Indian and Norwegian ... |
| US Execs to Discuss Cuban Oil Reserves Houston Chronicle, United States - By JULIE WATSON Associated Press Writer. MEXICO CITY — In the two years since oil reservoirs were discovered off Cuba's coast, Canadian ... |
| US Execs to Discuss Cuban Oil Reserves ABC News - By JULIE WATSON Associated Press Writer. MEXICO CITY Feb 1, 2006 — In the two years since oil reservoirs were discovered off Cuba's ... |
| US Execs to Discuss Cuban Oil Reserves Forbes - By JULIE WATSON , 02.01.2006, 02:00 PM. In the two years since oil reservoirs were discovered off Cuba's coast, Canadian, Chinese ... |
| US Execs to Discuss Cuban Oil Reserves CBS News - (AP) In the two years since oil reservoirs were discovered off Cuba's coast, Canadian, Chinese, Indian and Norwegian companies have lined up to explore the ... |
This policy belongs in the dustbin of history.
Cuba can always use Citgo to do oil exploration.
Castro needs to check out sooner rather than later.
Yea, Thats the ticket. NO drilling in US waters off Floriduh, so castro can suck it out and pollute all of floriduh. Thanks enviro wackos.
It is truly ironic to consider that we might well even end up acquiring Cuban oil via a Chinese intermediary:
This time, however, Repsol will join up with China's largest offshore oil producer, CNOOC Ltd.; Norway's industrial company Norsk Hydro ASA, and India's state-owned Oil and Natural Gas Corp., ONGC.
Of course, our envirowhackos have prevented us from exploiting Florida's side of the Gulf, an area that should have been opened long ago. It seems a shame that the extreme left regime of Fidel Castro will end up benefiting exactly where our homegrown left has hobbled us.
It's not just the Left and Enviro-whackos who are preventing offshore drilling in America:
http://electharris.org/issues/issues.aspx?id=32
Agreed. Castro is like Sanata Clause compared to some of the people we deal with. Business is business. Cuba has a lot of potential and we could probably make them go capitalist if we opened up trade with them.
Republicans have to run on this environment stuff or they lose. Kind of like they do in the North East.
Yes, it is an issue that we still have plenty of work remaining to do. But I think that we have a far smaller chance of bringing a good amount of the left around on this issue than we have in bringing more of the right on board.
That was my immediate reaction. It WE could drill for oil of the US COAST - ie: FLORIDUH - our guys wouldn't have to be talking to that nutcase dictator.
Russia may also get in on the Cuban oil deal... Lukoil!
Ten years ago some in the Republican Party suggested that the embargo be gradually lifted in exchange for Castro making specific human-rights concessions. This logical suggestion was to be written into the party platform. Unfortunately, the Cuban-Americans in Florida (notably Sr. Jorge mas Canosa) got wind of it and stormed Jeb Bush's office, demanding that anyone who proposed such a dreadful thing be hung out to dry. Sr. mas Canosa pointed out that without the support of the Cuban-Americans Jeb's political career in Florida was going nowhere, so he had better pull the plug on any suggestion that the embargo be dropped. And in fact, in 2000, when every vote was crucial, the support of the Cuban-Americans in Florida made a difference to the presidential election.
This was outlined in the pages of the Washington Times and Christian Science Monitor at the time.
That bitch.
I wouldn't go that far.
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