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Relations between the US and Cuba seem to be warming. Cuban officials are already in discussions with members of the US Congress to end the 47-year trade embargo. Last week a senior Cuban official said that Cuba would welcome the help of US oil companies in developing its oil resources. Although Chinese, Russian, Angolan, Spanish, Vietnamese, and Malaysian companies are already in discussions about developing Cuban oil, US companies have vast resources in and near the Gulf of Mexico that could develop Cuban oil much more quickly and cheaply. The official noted that the problem of bringing equipment from China is one reason that Cuba to date has only drilled one off-shore well.
US companies would like a share of the Cuban oil business. But after nearly 50 years, opposition to the Cuban regime has hardened to the point that easing trade restrictions will be difficult without significant concessions by the Cuban government.
Cuba says it has some 20 billion barrels of reserves, a number that is three or four times higher than outside estimates. While US firms could probably undercut bids from more distant companies, with oil prices at $50 a barrel deepwater drilling is not always an economic proposition. While the Obama administration is said to be moving to ease travel restrictions with Cuba, there seems to be both no sense of urgency plus many political problems connected with lifting trade sanctions.