Cuba’s deep-water tempered by costs and tricky geology

Havana’s oil ambitions stymied by triple whammy of geology, costs and sanctions

The waters around Cuba once promised to be a new frontier in Caribbean exploration and an economic boost to an island that has been bound by US trade sanctions for more than five decades. However, after three dry wells, hopes of deep-water success have been tempered by tricky geology and high drilling costs. And a string of drilling failures in 2012 now hangs over the sector. According to the US’ Energy Information Administration (EIA), Cuba’s proved oil reserves total just 24 million barrels, plus 2.5 trillion cubic feet (cf) of natural gas. But the country’s little-explored deep waters are thought to share some of the same rich geology that has made the US Gulf of Mexico one of the world’s