Independent Monitoring the Cuban Economic Zone Oil Development

The extensive impact and consequences of the 2010 Deep Water Horizon oil drilling rig failure in the Gulf of Mexico, together with expanding drilling activities in the Cuban Exclusive Economic zone, have cast a spotlight on Cuban oil development. The threat of a drilling rig failure has evolved from being only hypothetical to a potential reality with the commencement of active drilling in Cuban waters. The disastrous consequences of a drilling rig failure in Cuban waters will spread over a number of vital interests of the US and of nations in the Caribbean in the general environs of Cuba. The US fishing and tourist industries will take major blows from a significant oil spill in Cuban waters. Substantial ecological damage and damage to beaches could occur for the US, Mexico, Haiti and other countries as well. The need exists for the US to have the ability to independently monitor the reality of Cuban oceanic oil development. The advantages of having an independent US early warning system providing essential real-time data on the possible failure of a drilling rig in Cuban waters are numerous. An ideal early warning system would timely inform the US that an event has occurred or is likely to occur in, essentially, real-time. Presently operating monitoring systems that could provide early warning information are satellite-based. Such systems can indicate the locations of both drilling rigs and operational drilling platforms. The system discussed/proposed in this paper relies upon low-frequency underwater sound. The proposed system can complement existing monitoring systems, which offer ocean-surface information, by providing sub-ocean surface, near-real time, information. This “integrated system” utilizes and combines (integrates) many different forms of information, some gathered through sub-ocean surface systems, and some through electromagnetic-based remote sensing (satellites, aircraft, unmanned arial vehicles), and other methods as well. Although the proposed integrated system is in the developmental stage, it is based upon well-established technologies.

The Current State of Argentina's Oil Industry

An oil wealthy country, Argentina has repeatedly tried and failed to capitalize on its potential. The unfortunate energy policies of subsequent Argentinean government and a lack of investment capital have been two of the main reasons that have significantly limited the production of export oil in the recent past. Yet, with recent discoveries and changes to the country’s hydrocarbon laws, there may be a new dawn for Argentina’s oil industry. Since 1999 when Argentina’s oil production peaked at approximately 800,000 barrels per day, there has been a 24 percent decrease in its oil output. The country’s oil reserves have also been in steady decline. Yet, the recently enacted reforms by Argentina’s government to incentivize foreign investment in the oil industry seem to be working, allowing investors to negotiate the terms of exploration directly with local governments. As a result, foreign investment is increasing, as well as new willingness to finance exploration of untapped reserves. Also, the discovery of shale oil in Argentina may provide the potential to become a key exporter in the region. Nonetheless, there are challenges that need to be overcome and it may be years before the various oil projects underway become profitable. The success of current oil projects, coupled with the potential of shale oil, new discoveries and the sustainability of the current energy policy reforms will likely determine if Argentina is finally able to fulfill its potential and exert itself as an oil exporter country in Latin America.