With Huge Oil Discovery, Cuba Will Beat United States to Energy Independence

Written by Levi Novey

After revising estimates, Cuba now claims it has double the amount of oil in its offshore reserves than previously thought. If the estimates are accurate, Cuba would have just as much oil as the U.S.

This discovery, coupled with initiatives to develop alternative energy projects, such a brand new biogas factory, will put Cuba on the fast track to achieving energy independence.

If it in fact has 20 billion barrels of oil offshore, Cuba would slingshot into the top 20 of oil producing nations worldwide. They plan to start drilling next year for reserves located in the Gulf of Mexico, north of Cuba. The U.S. Geological Survey recently completed a survey in the area of discussion and arrived to an estimate far less to that of Cuba’s. Cuba has responded by suggesting that they have better data than the USGS, and with Cuba’s data they think the USGS would undoubtedly agree about the size of the oil discovery (apparently the offer to provide the data has been made).

For comparison, the United States currently is thought to have about 21 billion barrels of oil reserves.

Given the respective sizes and populations of each country, it’s easy to understand why Cuba will reach energy independence far more quickly than the United States (at least as long as there is oil in the world). Cuba currently produces about 60,000 barrels of oil per day. It buys an additional 93,000 a day from Venezuela at a reduced price to help meet its energy needs (they provide doctors for Venezuela in exchange as well as sports instructors).

But Cuba’s quest for energy independence is not succeeding simply because of luck and oil. They also are taking important steps such as banning incandescent light bulbs and investing in new alternative energy technology. For instance, a new biogas plant will help provide energy and electricity by processing organic waste. Construction of the plant was recently completed. It is located at a garbage dump in Havana that processes 60% of the capital’s waste. The United Nations’ divison of Industrial Development provided assistance with the project and Switzerland’s Government provided financial support.

What About the Embargo?

So the big question is whether or not Cuba’s oil discovery will put added pressure on the United States to lift its embargo on Cuba. With the possibility of having another significant oil supplier, what do you think the United States should do?

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