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But Cuba’s Doing It! : U.S. Oil Lobbyists Say "No Fair!"

Did you know that the U.S. has significant oil reserves in the waters off the coast of Florida? Did you realize that we still have a trade embargo against Cuba? These facts are heating up the energy debate. But how?

Cuba plans to lease some of its underwater oil and gas fields to China, India, and other countries that are competing with the U.S. for energy resources. Cuba offered drilling leases to the U.S. as well, but oil execs had to turn down the offer because of the forty-three year old trade embargo.

What about that embargo again?

In 1962, President John F. Kennedy imposed an economic embargo against Cuba because of its alignment with the Soviet Union during the Cold War.

Known in Cuba as el bloqueo, Spanish for "the blockade," the embargo has been criticized as a grudge against Fidel Castro instead of a political tool.

Historical context

The waters between the United States and Cuba have large and virtually untouched oil and gas fields. In 1977, Cuba and the U.S. signed a treaty that divided those fields evenly.

Neither side has developed the region, but for different reasons. Cuba has comparably modest energy needs and stopped its only drilling project there for lack of funding. The United States has environmental concerns and has protected its half since the 1980s.

But with gas prices hovering around $3 a gallon, some consumers and legislators are throwing environmentalism to the wind. They say developing the oil fields near Florida could drastically reduce gas prices and provide the U.S. with some energy security.

Déjà vu all over again

The soon-to-be debate over drilling near Key West is sure to mirror the fight over the Arctic National Wildlife Refuge (ANWR). The two areas would provide about the same amount of oil - anywhere from five to ten billion barrels - which proponents declare a major find and opponents say is too little for the enormous environmental cost.

Republican Senator Bill Nelson of Florida is rallying against drilling, which he says could easily ruin the Florida coastline. Any oil spill 45 miles from Key West would harm coral reefs, Nelson says, and then be carried up the Florida coast by strong currents.

But drilling near Florida isn’t likely anytime soon. There is not yet enough support for oil exploration in ANWR, which is less closely tied to most Americans than Florida coasts. And it’s not only beach vacations and Disneyland that safeguard Florida, but also the state’s voters, who are increasingly crucial to national elections. There are others who think that states will agree to off shore drilling if they are guaranteed a percentage of the money generated by the projects. Who would contract with whom to pay the state governments is not clear.

But what about Cuba’s oil?

If we can’t drill on our side, why not drill on their side? Well for starters, the trade embargo.

Republican Senator Larry E. Craig of Idaho is drafting legislation to allow U.S. oil companies to bid for Cuban leases, bypassing the embargo.

Even though drilling on the Cuban side would still threaten the U.S. marine sanctuary, many say it makes sense for U.S. companies to do their own drilling instead of letting somebody else do it and then buying the same oil on the world market.

Therefore, our need for oil questions the necessity of the embargo. Is it holding us back? Should we try to ban drilling on the Cuban side as well, since it threatens our coastline? (Florida’s Nelson says yes, and is trying to do just that.) Should we risk environmental damage and compete with China and India for this valuable resource? Listen to our Oil and Energy radio show to learn the critical facts citizens need to know in order to judge the trade-offs of the many policies and practices recommended to solve the problem of the coming shortage of oil and natural gas.

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Update Posted on: 5/26/2006