About that Chinese drilling

Ernesto from Penultimos Dias brought an article from OilandGasInsights.com to my attention. The pertinent excerpt:

In 2009 offshore exploration will begin in Cuba's section of the Gulf of Mexico (GoM)...

Drilling was scheduled to begin in 2008 but has been delayed twice, due to the tight supply of rigs globally, the need for more downstream facilities to process oil and the effects of the longstanding US embargo. Cuba's offshore acreage is believed to hold vast hydrocarbon reserves potential, with estimates of potential oil reserves running as high as 9.3bn barrels (bbl). The US Geological Survey (USGS) estimates that the North Cuba basin contains around 4.6bn bbl of oil, about 257bn cubic metres (bcm) of gas and some 0.9bn bbl of natural gas liquids (NGL), equivalent to around 0.4% of global or 15.7% of US proven reserves. This could leave Cuba with an energy endowment roughly on a par with Ecuador. Within the basin, the principal area is the North Cuba Foreland Basin - located offshore, approximately 70km from Florida - which contains 70-80% of estimated reserves.

Cuba is actively searching for international partners to explore in the GoM and, so far, has not found itself short of offers. Spanish-Argentine major RepsolYPF leads a consortium that was expected to begin drilling in the offshore basin in 2008...

Other foreign companies active in Cuba include Norway's StatoilHydro, India's state-run Oil & Natural Gas Corporation (ONGC), PetroVietnam, Malaysia's Petronas, Canada's Sherritt International and China's Sinopec.

So while it's technically true that China is not presently drilling for oil on the Cuban side of the Florida straits it's only because they haven't gotten the logistics straight yet not because of a lack of interest or desire. The greater point remains. If Cuba can drill on its side (with Chinese or other help) where an ecological mishap will certainly affect us in South Florida then why shouldn't American companies (which I am sure have a better record of safe exploration and drilling) be allowed to drill on our side. The risk is marginal and the reward is potentially great.

Here's the link to a copy of the article.

Posted by Henry Louis Gomez at June 16, 2008 07:25 PM

Comments

Posted by: El guardia rural at June 16, 2008 10:21 PM

Posted by: Dr.Shalit at June 16, 2008 11:08 PM