March2017-Flipbook

More documents

Recommendations

Info

! ! 3,300.0 3252.97 3,300.0 3252.97 Natural gas extraction (MM m3), 2004-2015 Oil Oil extraction (Mt), 2004-2014 Oil extraction (Mt), 2004-2014 3,150.0 3,150.0 3024.8 3003.1 3011.72998.9 3,000.0 3024.8 3003.1 3011.72998.9 2935.06 3,000.0 2900.04 2905.01 2897.12905.3 2935.06 2900.04 2905.01 2897.12905.3 2,850.0 2,850.0 2731.29 2,700.0 2731.29 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2,700.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Oficina Nacional de Estadística e Información (ONE Source: Oficina Nacional de Estadística e Información (ONEI). Source: Oficina Nacional de Estadística e Información (ONE in coastal areas, and are exploited using directional drilling. A 2004 study by the U.S. Geological Service estimated the potential of Cuba’s northern basin at 4.6 billion barrels of oil and 9.8 billion cubic feet of natural gas. Cuban scientists have made higher, but perhaps less reliable, estimates of up to 20 billion barrels of oil. In January 2012, Spain’s Repsol-YPF became the first multinational oil company to explore in deepwater north of Havana, leasing the Chinese-built Scarabeo 9 drilling platform from Italy’s ENI. Yet the results were not encouraging, and Repsol-YPF soon ended drilling operations. Subsequently, Scarabeo 9 made two other drilling efforts on behalf of Malaysia’s Petronas and Venezuela’s PDVSA, but the platform left Cuba without finding the hoped-for oil deposits. Russia’s Zarubezhneft drilled a fourth exploratory well using the semi-submersible drilling platform Songa Mercur—owned by Norway’s Songa Offshore—but this effort also came up dry. RENEWABLE ENERGY In recent years, Cuba has seen significant activity in renewable energy, driven above all by its need to phase out the island’s dependence on fossil fuels to generate electricity. Although Cuba produces some four million tons of oil and gas per year—mostly used for power generation—this only covers half the country’s consumption. That’s why the electric grid still depends on subsidized Venezuelan crude. These supplies, which peaked at 125,000 barrels a day, fell to 45,000-50,000 barrels a 84 CUBATRADE MARCH 2017
Solar panels installed at a Cuban farmstead day last year, prompting the Cienfuegos refinery to close. Given this new reality, the government has accelerated investments in renewable energy. Its goal: to produce 24 percent of Cuba’s electricity from “clean” sources by 2030. To this end, the government has included $3 billion worth of renewable energy projects in its investment portfolio. Together, these would add 2.1 gigawatts of capacity from wind, solar, biogas, and biomass plants. Unión Eléctrica alone plans 23 renewable energy projects; the most important are in wind energy and solar parks. The government recently contracted Spain’s Gamesa to build seven wind farms in eastern Cuba with total generating power of 750 MW. That’s in addition to Cuba’s four existing wind parks: two in Gibara (Holguín province, in the east); one in Turiguanó (Ciego de Avila province, in central Cuba) and one at Los Canarreos (on Isla de la Juventud, in the west). Solar energy is another government priority. In Cuba, solar radiation averages about 5 kWh per square meter per day (1,825 kWh per square meter per year)—much higher than in European countries that rely on solar energy. According to Cuban experts, 100 square kilometers of networked photovoltaic systems could generate 15,000 GWh/year of electricity—an amount now generated by conventional fuels. Other studies suggest that the solar radiation Cuba receives in one day is equivalent to the oil Cuba consumes in five years. Cuba’s strategy is to have solar provide 400 MW of power by 2020. The country currently has 21 solar generating plants connected to the national grid; together they generate 34.8 MW. Another 2.4 MW plant is in the process of synchronization, and eight more facilities with a combined generating capacity of 15 MW are under construction. Recently, the Abu Dhabi Development Fund (ADFD) loaned Cuba $15 million under favorable terms to develop four 10-MW solar power plants using photovoltaic silicon panels. The plants are slated for the provinces of Matanzas, Santa Clara, Camagüey and Sancti Spíritus. CONCLUSIONS Of the three investment areas under the jurisdiction of the Ministry of Energy and Mines, the most attractive are clearly oil and gas production, and electricity generated from renewables. For these sectors to expand, however, foreign investment is essential. To facilitate that, the Cuban government will allow investments in the energy sector to be 100 percent foreign-owned—a development that would have been unthinkable 20 years ago. Regarding oil and gas, projects related to secondary extraction methods are especially attractive. Similarly lucrative are facilities that use co-produced gas to generate electricity, given their low production costs and high efficiency in power generation. With respect to renewable energy, solar seems to be the most promising, given the high levels of solar radiation that blanket Cuba uniformly and throughout the year. H Emilio Morales is CEO of the Havana Consulting Group. MARCH 2017 CUBATRADE 85
Page 1:
MARTÍ AND YBOR: CUBA’S CENTURY O
Page 5 and 6:
Arkansas’ Business Climate is Lik
Page 7 and 8:
How do we move food from Hastings t
Page 9 and 10:
A FIVE STAR DESTINATION FOR TOURISM
Page 11 and 12:
Your Cuba Banking Provider Cash Man
Page 13 and 14:
Representatives. The bill aims to e
Page 15 and 16:
THE PILLSBURY DIFFERENCE A global l
Page 17 and 18:
Figure 1. Number of flights from Un
Page 19 and 20:
American wheat growers stand ready
Page 21 and 22:
A container ship docks at the Port
Page 23 and 24:
“WE GROW TRADE” is a registered
Page 25 and 26:
Of all the economic possibilities i
Page 27 and 28:
R STILL THE ONLY CUBE OF ITS KIND.
Page 29 and 30:
50% DISCOUNT SUBSCRIBE NOW! Limited
Page 31 and 32:
CFI US-Cuba Trade Relations & Inves
Page 33 and 34:
A Better Choice when traveling to C
Page 35 and 36: BEFORE THE EMBARGO, Cuba was the to
Page 37 and 38: Doing Business in Cuba - Market Ent
Page 40 and 41: MEDIA Cuba has become more open to
Page 42 and 43: GO GLOBAL MIAMI: Trade and Logistic
Page 44 and 45: FINANCE A PIPELINE TO CUBA'S PRIVAT
Page 46: Under the Bush administration, it b
Page 49 and 50: The lobby of the 516-room Dhawa Cay
Page 51 and 52: genetically-modified sugar beets to
Page 53 and 54: Cutting off trade with people so cl
Page 55 and 56: An anti-embargo demonstration outsi
Page 57 and 58: Until the conditions are met, the s
Page 59 and 60: Photo by Matias J. Ocner Photo byTi
Page 61 and 62: BEYOND THE PAROCHIAL One of the mos
Page 63 and 64: of Success A small private coffee p
Page 65 and 66: In the high mountain ranges of Guan
Page 67 and 68: A Special Report By Cuba Trade Maga
Page 69 and 70: eginning April 30, 2017!
Page 71 and 72: CONNECTION By Doreen Hemlock Tampa
Page 73 and 74: IN MARTÍ'S FOOTSTEPS Cuba’s Icon
Page 75 and 76: Departures from Miami, Tampa and Ke
Page 77 and 78: CONGRATULATIONS CUBA TRADE MAGAZINE
Page 79 and 80: Don’t miss any issues... SUBSCRIB
Page 81 and 82: The historic Colombia restaurant in
Page 83 and 84: investment report NICKEL, OIL, AND
Page 85: Cuban nickel production, 1975-2015
Page 89 and 90: From a point of view of the conditi
Page 91 and 92: There is a Cuban entity that is an
Page 93 and 94: Though Hurricane Ike battered Gibar
Page 95 and 96: Locals get around town easily by bi
Page 97 and 98: EDITORIAL CALENDAR 2017 JANUARY/ FE
Page 100: EXPLORE CUBA. ALL OF IT. Now flying
show all

March2017-Flipbook

Create successful ePaper yourself

Delete template?

Save as template?