Posted: Sun Dec 26, 2004 10:34 am Post subject: Castro Announces New Oil Find
Castro Announces New Oil Find
Sun 2004-12-26 10:13 ET
By Marc Frank
HAVANA (Reuters) - An oil deposit with an estimated 100-million-barrel 16 million m^3) reserve has been discovered off Cuba's coast by Canadian companies Sherritt International Corp. (S.TO: Quote, Profile, Research) and Pebercan Inc. (PBC.TO: Quote, Profile, Research) , President Fidel Castro said.
"We have a new oil discovery ... the first since 1999," Castro said during a closed-door speech to parliament deputies, parts of which were carried on Saturday by official media.
"The oil has a density of 18 API ... and contains less than 5 percent sulfur," he said on Friday, pointing out it was of better quality than the heavy crude associated with the area, which averages 16 API and 8 percent sulfur.
Cuban oil production was 26 million barrels (4 million m^3) (71 300 barrels per day = 11 300 m^3 per day) in 2003 and 653 million m^3 of gas, the government said, with oil output down slightly in 2004.
Cuba consumes a minimum 150 000 barrels (24 000 m^3) per day, according to the government, importing fuel on preferential terms from Venezuela.
Cuban crude comes from onshore wells that dot the northwest coast along Havana am Matanzas provinces.
The poor-quality oil is burned in modified power plants and factories and the gas is used to generate electricity and for cooking fuel.
The new Santa Cruz field, 53 km east of the capital, will go into production in 2006, Castro said, while the Canadian firms will drill two new test wells, and explore three other potential deposits nearby in 2005.
Foreign companies, mainly Sherritt International and Pebercan, have joint ventures and production agreements with state oil monopoly Cubapetroleo (Cupet) and account for around 60 % of Cuba's oil and gas output.
Cuba wants to provide for 60 % of its minimum energy needs of 150 000 bpd (24 000 m^3) by 2006, according to the Basic Industry ministry.
The forecast does not include any discovery of better-quality oil in Cuba's Gulf of Mexico waters.
Spanish oil company Repsol YPF (REP.MC: Quote, Profile, Research) reported the first test well ever drilled in the deep-water was not commercially viable, but the company plans to drill again in 2006.
The 112 000 km^2 area was opened to foreign exploration in 1999. To date, Repsol and Sherritt International have signed exploration contracts, taking six blocks and four blocks, respectively, off the northwest coast.
Brazil's Petrobras (PETR4.SA: Quote, Profile, Research) (PBR.N: Quote, Profile, Research) is also looking at existing data from two deep-water blocks, and two Chinese companies are also studying various blocks.
I'm sure most of this will go to China with Cuba leaving enough for itself.
I doubt there will be enough for China.
From the article, the field holds about 16 000 000 m^3 of oil. Cuba plans to extract 60 % of its minimal need of 24 000 m^3 or 14 400 m^3. If they extact this amount out, and not accounting for peak oil theory on production, they would find the field depleted in about 1100 days or 3 years.
Three years might not sound like much, but it at least it gives Cuba the ability to work around crippling sanctions imposed on Cuba by the US.
Cuba recently switched to the euro for its reserve currency to bypass US sanctions and if the US is ever effective in cutting off Venezuelan oil to Cuba, at least Cuba can hold its own.
Why Cuba would be publicly boasting about this nice, unsulfured oil find boggles my mind.
Fidel, look--Dubya & Co. were willing to send troops HALFWAY AROUND THE WORLD to Iraq to "secure" a MAJOR oil & gas region. CUBA is but 90 miles away from the Florida Keys. You think another invasion is unlikely?! And this time, it'll be fast, high-tech, and NOT another Bay of Pigs! At least, until your insurgents can get cracking and create another Iraq for 'em!
My advice? Chill on the public announcements. Deal with Venezuela, Brazil, and China quietly--and make sure defence agreements are part of the deal!
Why Cuba would be publicly boasting about this nice, unsulfured oil find boggles my mind.
Fidel, look--Dubya & Co. were willing to send troops HALFWAY AROUND THE WORLD to Iraq to "secure" a MAJOR oil & gas region. CUBA is but 90 miles away from the Florida Keys. You think another invasion is unlikely?! And this time, it'll be fast, high-tech, and NOT another Bay of Pigs! At least, until your insurgents can get cracking and create another Iraq for 'em!
My advice? Chill on the public announcements. Deal with Venezuela, Brazil, and China quietly--and make sure defence agreements are part of the deal!
Geez, of all the stupid, big-mouthed !&*&$*(*!
It could also be a trap to lure the US into another war. To spread its forces thin. The Chinese Premier recently visited Cuba. Who knows what plan they concocted. The oil find is insignificant to what is in Iraq and Iran., but maybe enough to get the attention of Washington.
I highly doubt Castro would boast if he didn't have powerful backers to support him. He didn't stay in power for almost 50 years by being stupid.
Joined: Sep 29, 2004 Posts: 2330 Location: Pennsylvania, USA
Posted: Mon Dec 27, 2004 10:53 am Post subject:
Cuba desperately needs to have the trade embargo dropped. Maybe China will trade stuff for oil. Cuba might finally see a nice increase in standard of living.
Cuba is now busy with moving to renewable energy. I think this oil find will make the transition easier.
It is really amazing what they are achieving there with only limited funds. I've seen so many projects there which are aimed at achieving sustainability. Perhaps the trade embargo was actually a good thing since it learned the Cubans to live in a sustainable way on an isolated island.
Perhaps the living standard would be higher if there wasn't a trade embargo, but on the other hand their living standard is far from bad and they can maintain this standard of living until long after the peak. That is something we cannot say.
Quote:
The eyes of all ecologists and of all third world peoples should be pointed towards Cuba. Its position on energy matters is important for many reasons. The iniquitous United States' economic sanctions imposed on the island and the disintegration of the former Soviet Union have obliged Cubans to research the possibilities for self-sufficiency in energy, using only their own natural resources. Cuba has no coal, oil or gas but an abundance of sunshine. The starting-point for Cuba's energy policy is therefore twofold: first, the capacity to transform solar energy to satisfy internal needs; second, the widespread social management of energy production. In fact, Cuba has conditions which are a dream for every third world country and for every ecologist: abundant renewable energy resources coupled with social control and management of land, free from the negative influences of multinational companies. The Carribean island of Cuba is proof that ecologically sustainable development can be a reality. Moreover, this development includes the direct involvement of Cuban citizens in the management of local energy problems: local people have a working knowledge of the various energy technologies, such as biogas digesters, small-scale wind turbine generators and solar installations. Perhaps this is the reason that the United States has increased economic sanctions against Cuba. Perhaps, also, it is a reason for ecologists and third world peoples to do more than just stand and watch.
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