The potential discovery of oil and gas reserves in deep waters north of the coast of Cuba, U.S. behave in the same manner as in the Middle East Gulf, has captured the attention of the nations that are hungry for energy.
's state of India, ONGC, already signed a contract for exploitation in the area, has increased its participation in it, which is the latest bet in the race for oil in Cuba. Meanwhile, the trade embargo imposed by the U.S. to the island continues to prevent their companies from doing business with Cuba. Thus, some Observers are wondering if the U.S. can really afford to lose such important energy resources only 80 miles from the Florida Keys.
The project to exploit Cuban oil has attracted interest from several countries such as China, Venezuela and India and has led some politicians to ask you to soften the embargo against the island. What they seek is that American companies to bid to join the exploration, and also to relax environmental laws and allow them to drill in waters adjacent to the U.S. Others, however, insist that the embargo should remain unchanged to continue the pressure on Cuban leader Fidel Castro on human rights in Cuba. Promise
Gulf.
The portion of the Gulf of Mexico that belongs to Cuba was established in 1977, when it signed treaties with the U.S. and Mexico. A study by the U.S. Geological Survey published last year estimated that just in that area, north of Cuba, could be 4.6 million barrels of oil and 9.8 trillion cubic feet of natural gas. Cuba and split its 112,000 square kilometers of territory in 59 exploration blocks, which opened to foreign companies in 1999.
Initial results drilling tests and increased oil prices have combined to make the potential deep water reserves are a promising project. Six foreign companies have signed on to explore 16 blocks, according to Fidel Rivero, director general of the state-owned Cuba Petroleo, CUPET.
For example, the Canadian company Sherritt acquired the rights to four blocks and is already producing oil off the coast of the island, near Varadero. China is doing the same. The Indian company ONGC announced its investment in two blocks on Sunday, saying it represented an opportunity of "great discoveries." In May This year, the company agreed to a 30% stake in another joint venture with English firm Repsol YPF. The other 30% was taken by the Norwegian company Norsk Hydro.
Jorge Pinon, an energy consultant at the Institute for Cuban and Cuban-Americans at the University of Miami, said the involvement of Norsk Hydro, a leader in oil production, was significant. "It's a sign that the geology of the area must be extremely positive and a good chance of producing oil in commercial quantities," Pinon said the BBC. However, even if they are reserves of good quality he believes it will be at least five years before production can begin because there are really few platforms for deep water drilling.
This is a contribution from: Laura Smith-Spark BBC and you can continue reading at the following link
's state of India, ONGC, already signed a contract for exploitation in the area, has increased its participation in it, which is the latest bet in the race for oil in Cuba. Meanwhile, the trade embargo imposed by the U.S. to the island continues to prevent their companies from doing business with Cuba. Thus, some Observers are wondering if the U.S. can really afford to lose such important energy resources only 80 miles from the Florida Keys.
The project to exploit Cuban oil has attracted interest from several countries such as China, Venezuela and India and has led some politicians to ask you to soften the embargo against the island. What they seek is that American companies to bid to join the exploration, and also to relax environmental laws and allow them to drill in waters adjacent to the U.S. Others, however, insist that the embargo should remain unchanged to continue the pressure on Cuban leader Fidel Castro on human rights in Cuba. Promise
Gulf.
The portion of the Gulf of Mexico that belongs to Cuba was established in 1977, when it signed treaties with the U.S. and Mexico. A study by the U.S. Geological Survey published last year estimated that just in that area, north of Cuba, could be 4.6 million barrels of oil and 9.8 trillion cubic feet of natural gas. Cuba and split its 112,000 square kilometers of territory in 59 exploration blocks, which opened to foreign companies in 1999.
Initial results drilling tests and increased oil prices have combined to make the potential deep water reserves are a promising project. Six foreign companies have signed on to explore 16 blocks, according to Fidel Rivero, director general of the state-owned Cuba Petroleo, CUPET.
For example, the Canadian company Sherritt acquired the rights to four blocks and is already producing oil off the coast of the island, near Varadero. China is doing the same. The Indian company ONGC announced its investment in two blocks on Sunday, saying it represented an opportunity of "great discoveries." In May This year, the company agreed to a 30% stake in another joint venture with English firm Repsol YPF. The other 30% was taken by the Norwegian company Norsk Hydro.
Jorge Pinon, an energy consultant at the Institute for Cuban and Cuban-Americans at the University of Miami, said the involvement of Norsk Hydro, a leader in oil production, was significant. "It's a sign that the geology of the area must be extremely positive and a good chance of producing oil in commercial quantities," Pinon said the BBC. However, even if they are reserves of good quality he believes it will be at least five years before production can begin because there are really few platforms for deep water drilling.
This is a contribution from: Laura Smith-Spark BBC and you can continue reading at the following link
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