• Submitted by: manso
• Business and Economy
• 05 / 31 / 2011

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HAVANA (Commodity Online) : Cuba’s significant oil discovery in the Gulf of Mexico may help its dilapidated economy to recover and even change political scenarios of the region as it may prompted the US to end a 50 year long embargo on Cuba.

Cuba is planning to increase its pumped oil output from 21 million to 28 million barrels a year and start oil and gas exploitation in its exclusive economic zone in the Gulf of Mexico .

The discovery of up to 20 billion barrels of oil in the waters off of Cuba's coast, 100 kilometres from Florida, has made U.S. businessmen and politicians consider lifting the embargo.

Opponents of the U.S. embargo argue that it has failed to drive Fidel Castro from power and that if Cuba becomes rich from its oil, regime change is even less likely.

They also argue that warmer relations between the two countries could help stave off an environmental crisis if there is a spill from the field

The current output of 21 million barrels of oil exploited on land and inshore can only meet 46 percent of cuba’s domestic consumption demands.

Cuba is currently importing almost 100,000 barrels of oil a day from Venezuela , Tenreyro added.

Cuban experts said the country’s economic zone in the Gulf of Mexico hold huge oil potentials, with reserves estimated at 20 billion barrels.

The island country expects to hook up with foreign partners to begin drilling exploratory wells in the Gulf of Mexico later this year.

Indians, the world largest gold consumers, are now stocking up on silver to reap better dividends from rising prices, compared to the costlier yellow metal.

Source: /www.commodityonline.com/news/Cuban-economy-to-get-a-facelift-on-oil-discovery-39470-3-1.html