Cuban Oil Drilling and the Trade Embargo

Professor Jorge Pinion of Florida International University is concerned about the implications of Cuba's decision to drill for oil in its territorial waters, just 60 miles from the Florida keys. In this interview with Anchor Thalia Assuras, he explains why the move will not benefit the U.S. oil industry players who are suffering most in the wake of last year's Deepwater Horizon disaster. He also says the current political climate between the U.S. and Cuba will prevent the necessary response to another catastrophic oil spill.

Pinion says the wells will cost Cuba about $700 million, but because of the U.S. trade embargo with Cuba, none of that money will go to the U.S. oil industry. And if Cuba does find the oil it anticipates is there, none of those opportunities will go the U.S. industry, either. He says that's not a big deal for big companies, but small, independent business people on the Louisiana and Texas coasts will suffer without those opportunities.

No one can stop Cuba from drilling in its own waters, Pinion says. But he believes that once U.S. leaders realize that, they will decide that the shared marine environment and common economic interests between the two countries are more important than the trade embargo. He says that will lead the two countries to negotiate and share best practices, so that if there is a large oil spill, the U.S. will be allowed to put its best resources in place to respond.