Cuba

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Cubas Energy Situation Supply Perspective

• Chip Groat
• Interim Dean
• Jackson School of Geosciences
• The University of Texas at Austin

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Cuba Energy Consumption(World Resources
Institute)
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Oil consumption by area
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Oil production by area
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Major oil trade movements
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Major gas trade movements
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Cuba Energy Resource Production and Consumption

• Oil Production reports vary
• Cupet reports 67,000 bpd
• 52,000 bpd (EIA) or 19 million bpy
• Reports from unidentified sources
• 80,000 bpd
• 60,000 bpd
• Oil consumption is 120,000 bpd (43.8 million bpy)
• Natural gas production is 14 bcf/yr
• Consume it all, import none

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Cubas Principal Partner in Latin America is
Venezuela

• Fidel Castro and Hugo Chavez have a close
  relationship
• Energy Interactions
• Venezuela sends 90,000 bpd of oil to Cuba
• 25 or more of this is free
• Cuba produces 80,000 bpd of oil (another source
  reports 60,000 bpd)
• Cuba consumes 120,000 bpd of oil
• Exports the surplus of 50,000 bpd
• Venezuela is assisting in upgrading a refinery

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CUBAN OIL FACILITIES

• Cubapetroleo (Cupet)
• is the national oil
  company of Cuba in charge of
• Exploration - Production
  Commercialisation
• Refining and Lubricants production
  Technical Services
• Gas supply
  International Negotiations
• Research and Development
  Engineering
• 
  

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Cubas Energy Resource Base

• Cuba does not have abundant onshore energy
  resources
• Oil reserves, all onshore, are estimated at
  (EIA)
• 750 million bbl in 2006
• 120 million bbl in 2007
• Produce approximately 19 million bpy
• No coal (import a small amount)
• Sugar cane for use in making ethanol or bagasse
  for power generation

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Oil and Gas Potential

• Oil potential in North Cuba Basin (principally
  offshore)
• USGS estimates 4.6 billion bbl undiscovered oil
  and 9.8 tcf natural gas (mean)
• Cubapetroleo says 20 billion bbl oil potential
• U.S. reserves are 21 billion bbl
• Mexico reserves are 11.7 billion bbl

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North Cuba BasinUndiscovered Resources(USGS,
2004)
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Cubas Partners In Oil and Gas Development

• Cuba has signed agreements with countries to
  assist in oil and gas development
• Venezuela
• Brazil
• Russia
• China
• Has partners for development of specific blocks
• Canada, France, Spain, Sweden

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OPPORTUNITIES INDEEPWATER GULF OF MEXICO
THE CUBAN GOVERMENT HAS DECIDED TO OFFER ITS
DEEPWATER SECTOR OF THE EXCLUSIVE ECONOMIC ZONE
OF CUBA IN THE GULF OF MEXICO TO
FOREIGN INVESTMENT.
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CUBAPETROLEO (CUPET)
STATE OWNED COMPANY AUTHORIZED TO CARRY
OUT EXPLORATION AND PRODUCTION OF HYDROCARBONS
BY ITSELF OR IN ASSOCIATION WITH FOREIGN COMPANIES
CUPET FALLS WITHIN THE ORGANISATION AND
RESPONSABILITY OF THE MINISTRY OF BASIC INDUSTRY,
WHICH ALSO CONTROLS MINING, ELECTRICITY, NICKEL
AND COBALT, CEMENT, CHEMICAL, PHARMACEUTICAL,
GLASS, PAPER AND RUBBER INDUSTRIES.
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CURRENT STATUS OF ONLAND AND SHALLOW WATER BLOCKS

• 17 BLOCKS UNDER LICENCE WITH COMPANIES FROM
  CANADA, FRANCE, SWEDEN, SPAIN AND OTHER
  COUNTRIES.
• SINCE 1991 MORE OVER 650 MILLION USD IN
  EXPLORATION -PRODUCTION ACTIVITIES FINANCED BY
  FOREIGN COMPANIES.

OIL PRODUCTION AT PRESENT 67000 BOE/day
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BLOCKS AVAILABLE FOR NEGOTIATION IN DEEP WATERS
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NEW MODEL OF PSA

• ALL THE OIL AND GAS PRODUCTION WILL BE SHARED
  BETWEEN CUBAPETROLEO AND THE CONTRACTOR.
• THE SPLIT OF THE PROFIT OIL WILL DEPEND ON THE
  INTERNATIONAL OIL PRICE

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Shared resources with Cuba
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Shared resources with Cuba
Adquisición sísmica en aguas profundas
Adquisición 1984
Adquisición 1986
Adquisición 2000
Reprocesadas en DIGICUPET
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Shared resources with Cuba
POZOS PERFORADOS EN LA ZEE CUBA EN EL GOLFO
NOTE These well were drilled not by Cupet, but
by the Glomar Challenger Vessel under the DSDP
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What Lies Ahead?

• Hydrocarbons
• What will stimulate significant activity in the
  North Cuba Basin?
• Cubas view of the role of resources there
• Fuel internal development?
• Export?
• Oil price impact
• 150/bbl oil vs 40/bbl
• Transboundary resource development issues
• Methane hydrates
• Assessment is first step

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What Lies Ahead?

• Similarly, what will stimulate development of
  biofuels beyond bagasse?
• Ethanol from sugar cane
• Future role of alternative technologies
• Hydroelectric
• Solar
• Wind
• Demand growth and access to technology are key
  factors