Cuba's Fertile Oil Reserves

In the wake of the Obama Administration's relaxing of some travel rules regarding Cuba, a growing matter of interest is whether American oil companies will seek more access to Cuban waters (where the oil is located).

In early April, a Cuban official said, "We are open" to possibly doing business with American interests, and noted that oil firms from China and Russia, among others, are negotiating with Cuba about oil concessions, according to Bloomberg.  

Additionally, The Wall Street Journal blog Environmental Capital ("Mambo Kings: What Does Cuba Opening Mean for Energy Firms?" April 14, 2009), reports, "The list of oil companies looking at Cuban waters is actually a little longer -- one consortium planning to drill exploration wells this summer includes Spanish, Brazilian, Norwegian, and Indian companies."

But the American companies are not there yet.  Surely this cannot make sense, with Cuba and the U.S. being a mere 100 miles (or so) apart?

The triumph of foreign policy animosities (even ones that are well past their "sell-buy" date) over economic reality never ceases to amaze.