Wednesday, March 07, 2007

Is the Cuban Embargo causing US oil companies to miss out on economic opportunities?

This article published in Fortune magazine discusses the recent discovery of large oil reserves in Cuba. The promise of oil production has caused Spanish, Indian and Norwegian companies to begin considering drilling for oil in Cuba. American companies, many of which would be located closer to Cuba than the companies from the other countries, will not be allowed to produce oil due to the Cuban Embargo that was enacted during the 1960's. There has been talk in Congress of allowing US companies to sell oil services and equipment to the foreign companies that are expected to begin drilling in Cuba, however the US companies themselves are not allowed to drill for or produce oil. Is the prohibition of trade with Cuba, enacted during the 1960's following the Cuban Missile Crisis, causing American oil companies to miss out on economic opportunities located relatively close to our mainland?

3 comments:

msowko said...

I think congress should allow American oil companies to drill in Cuba. The oil companies are missing out on alot of revenue, and the US is also missing out on a chance to add oil to our oil reserves. America should let our oil companies drill in Cuba because it would help us out alot.

Matt Kundmueller said...

Although I do agree with the statement that US companies are missing out on economic opportunities, there is a much greater issue at hand. If the US decides to lift the Cuban Embargo, the unforeseen costs will greatly outweigh the benefits of US petroleum companies. The US should not touch the Cuban oil deposits and simply make arrangements to aid the Spanish, Indian and Norwegian companies for drilling, likely causing those foreign companies to reduce costs of sale to the US for consumption.

JP Clift said...

The oil companies of the US are devoid and corrupt. Lets start thinking about the future. Instead of stealing non renewable resources from our one and only earth, why not promote healthier and more efficient ways of harnessing the earths natural energy sources. Examples: solar power and wind power.
It is Cuba's decision whether to let in these oil companies or not. It is in America's best interest that Cuba has this embargo against them. This may shine new light on the oil-crisis situation and may get us to think about more efficient solutions to the problem!