When most people think about massive gas and oil deposits, they think of places such as the Middle East, Texas, and Alaska. Their mind does not immediately conjure up images of Cuba. However, that might just change. Right off the northwest shore of Cuba happens to sit some of the best oil and gas basins in the world. Why is this important now? The political climate between the United States and Cuba is starting to warm slightly. This could mean that Cuba is moving closer to starting up their own oil industry, which could be good for their struggling economy.
Still, the changes will not happen immediately. Even if the U.S. relaxed their restrictions on Cuba now, it would take time to get started. The current low prices of oil and gas might also deter them from putting too much effort into drilling and refining right now. Companies will look at the area as a place with great potential, but the biggest oil companies may still be wary before they set up shop.
The oil and gas industry is not entirely new to the nation, as it has been available for foreign investment. However, the embargo the U.S. placed on the country has kept it away from the aforementioned basins. Because of this, they only produce around 55,000 barrels a day. This is only a third of what they need to sustain themselves. They get the rest from Venezuela. If they have just a single deepwater platform, they could start pulling out close to 200,000 barrels a day.
With the drop in oil prices, it means that they are not getting as much helps as they were in the past from countries such as Venezuela and Russia. This was part of the reason that they were suddenly more open to get into talks with the United States. They would eventually like to be self-sustainable.
The prices of oil are low, but that does not mean that no one has an interest in helping drill in Cuba and offshore. Some of the smaller firms that are looking for good opportunities may want to consider looking a bit deeper into what Cuba may hold. Of course, some have concerns over the environmental impact that drilling could cause. They worry about spills and what could happen to the tourist industry. These are always concerns raised whenever any type of drilling comes into question.
About Oil Works Inc.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Walking Systems, Power Generation, Control Systems, Iron Roughneck Repair and Upgrades and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.