No commercially viable oil in Cuba – companies are backing out
Gibson 4/14 (William – Washington Bureau, “Companies abandon search for oil in Cuba's deep waters”, 2013, http://articles.sun-sentinel.com/2013-04-14/news/fl-cuban-oil-drilling-retreat-20130414_1_jorge-pi-north-coast-cuban-officials)
After spending nearly $700 million during a decade, energy companies from around the world have all but abandoned their search for oil in deep waters off the north coast of Cubanear Florida, a blow to the Castro regime but a relief to environmentalists worried about a major oil spill. Decisions by Spain-based Repsol and other companies to drill elsewhere greatly reduce the chances that a giant slickalong the Cuban coast would ride ocean currents to South Florida, threatening its beaches, inlets, mangroves, reefs and multibillion-dollar tourism industry. The Coast Guard remains prepared to contain, skim, burn or disperse a potential slick. And Cuban officials still yearn for a lucrative strike that would prop up its economy. A Russian company, Zarubezhneft, is drilling an exploratory well in shallower waters hugging the Cuban shoreline south of the Bahamas. But though some oil has been found offshore, exploratory drilling in deep waters near currents that rush toward Florida has failed to reveal big deposits that would be commercially viable to extract, discouraging companies from pouring more money into the search. "Those companies are saying,'We cannot spend any more capital on this high-risk exploration. We'd rather go to Brazil; we'd rather go to Angola; we'd rather go to other places in the world where the technological and geological challenges are less,'" said Jorge Piñon, an oil-industry analyst at the University of Texas who consults with U.S. and Cuban officials as well as energy companies. "I don't foresee any time in the future exploration in Cuba's deep-water north coast. It is, for all practical purposes, over."
No commercially viable oil – recent efforts prove
Offshore Mag 12 (Offshore Magazine, “Another Cuban oil well turns up dry”, 11/25, http://www.offshore-mag.com/articles/2012/11/another-cuban-oil.html)
The Venezuelan government-owned company PDVSA reported that it found no commercially viable oil in Cuban waters in the Gulf of Mexico, making their exploration well the third unsuccessful search for oil in recent months, reported the Havana Times. Petroleos de Venezuela (PDVSA) and CUPET closed their exploratory well last week in Cabo de San Antonio, off the far western end of the island, having found no “potential for commercial exploitation,” the Cuban state-run enterprise Cubapetroleo (CUPET) explained. Nevertheless, PDVSA will continue to operate in Cuba, according to a statement by the company. “The technical expertise and valuable geological information obtained have contributed to reaffirming PDVSA’s decision to continue its participation in the exploration campaign in Cuban waters,” read the statement. This finding is another setback for the Cuban government. The present effort was the third failed attempt to find oil in the Cuban waters of the Gulf of Mexico. In late May, the Spanish energy company Repsol announced it was shutting down its oil exploration effort off the coast of Cuba after failing to find oil on its first bore.
Err negative – US surveys show that Cuba has a high probability of low oil
Portela 12 (Armando, “Third dry well dashes Cuba’s hopes for oil independence”, 8/22, http://www.cubanews.com/sections/third-dry-well-dashes-cubas-hopes-for-oil-independence/)
Not all specialists, however, are that enthused. The U.S. Geological Survey assesses Cuba’s potential petroleum reserves at just under 4.6 billion barrels,with a range of one billion barrels at 95% probability, and nine billion barrels at 5% probability. In private, since they refuse to discuss their opinions publicly, Cuban geologists admit there’s a lack of information. They also say analogies between Cuba’s offshore zones and other promising oil fields in the Gulf of Mexico are misleading. At least some are downright skeptical when confronted with Cupet’s estimates of “giant” offshore oil and gas fields.
AP 4/15 (Associated Press, “Cuba avoids oil cutoff for now as Chavez ally narrowly wins Venezuela presidential election”, 2013, http://www.foxnews.com/world/2013/04/15/cuba-avoids-oil-cutoff-for-now-as-chavez-ally-narrowly-wins-venezuela/)
Cubans are relieved that the late Venezuelan leader Hugo Chavez's hand-picked successorhas been elected president.The island nation has benefitted from billions of dollars in subsidized oil under Chavez. New President Nicolas Maduro is seen as an ideological allywho will want to continue the countries' special relationship. But Maduro's razor-thin victory margin has his rival demanding a recount, and experts warn that Cuba's relief could be short-lived. Cuban President Raul Castro was among the first to congratulate Maduro in a note that was published Monday in Communist Party newspaper Granma.