Prometheus 6

Cuba oil boom may complicate U.S. embargo
BY JANE BUSSEY

The discovery of oil in the Florida Straits and near the Cuban shoreline -- potentially billions of barrels of reserves -- has boosted Cuba's energy prospects and drawn the attention of the U.S. oil industry.

Now, a small Canadian energy company, Sherritt International, says it plans to export Cuban oil for the first time -- a move that could put the crude on a collision course with the U.S. trade embargo against Cuba.

Details are few, but questions about the move go to the heart of the embargo: Where will the oil be refined? And how could Sherritt International or subsequent handlers keep the Cuban crude out of fuel being exported to the United States?

The issues rise as the oil and gas industry turns its gaze to the prospect of oil drilling off Cuba -- currently forbidden fruit for U.S. companies.

Sherritt International, in a report about its record 2006 earnings, said that in 2007 it ``plans to export a portion of its Cuban production as a consequence of anticipated production growth and limited demand for domestic heavy oil.''

Sherritt, which had revenue of about $1 billion U.S. in 2006, produces an estimated 68,000 barrels of crude oil in Cuba. Michael Minnes, company spokesman, said plans for exporting the oil are still under discussion.