Inter-American Dialogues

www.thedialogue.org September 19-23, 2011

FEATURED Q&A BOARD OF ADVISORS Is the U.S. Likely to Engage with Cuba on Offshore Drilling? Jeffrey Davidow James R. Jones Senior Counselor, Co-chair, A delegation from the United long been motivated to develop offshore The Cohen Group Manatt Jones States organized by the fossil fuels and may finally be on the brink Global Strategies LLC Environmental Defense Fund and of doing so. The BP spill was a timely and Ramon Espinasa the International Association of costly reminder that lucrative deepwater Consultant, Jorge Kamine Q Drilling Contractors traveled to Cuba ear- oil production carries with it tremendous Inter-American Counsel, lier this month to evaluate the Caribbean Development Bank Skadden, Arps, Slate, risks to marine life, shorelines and liveli- Meagher & Flom LLP nation's long-term drilling plans. Cuba is hoods. These lessons are laid out in the expected to begin exploring its offshore Luis Giusti commission's report and we were glad to Senior Advisor, Larry Pascal reserves in November, leading some U.S. see many dog-eared copies in Havana. Center for Strategic & Partner, lawmakers and industry experts, in the Cuban officials said the report prompted International Studies Haynes and Boone wake of the BP gulf oil spill, to raise safe- them to update safety and environmental ty and environmental concerns. Will Cuba standards. They have also sent engineers to Jonathan C. Hamilton Everett Santos be able to safely regulate its oil industry? Brazil and Canada for training, which is a Partner, President, Is the United States likely to engage with Continued on page 3 White & Case LLP DALEC LLC the Castro government to establish contingency plans and safety precautions? Kirk Haney R. Kirk Sherr What special steps should be taken to CEO, President, SG Biofuels Regester Larkin Energy prevent spills offshore Cuba, or to miti- North America, Inc. gate their effects, in light of the historical Raul Herrera animosity between the neighboring coun- Partner, Roger Stark tries? Corporate and Partner, Securities Practice Ballard Spahr Daniel Whittle, attorney with Arnold & Porter LLP the Environmental Defense Fund Mark Thurber and co-leader of the delegation Venezuela Proposing to Pay William Irwin Partner, to Cuba: "Our independent dele- Manager, International Andrews Kurth LLP A Exxon $1 Billion for Assets Government Affairs gation went to Cuba to share lessons Venezuela's oil minister, Rafael Chevron Corporation Roger Tissot learned from last year's BP disaster, to Independent Energy gauge Cuba's readiness to develop offshore Ramírez, denied late Wednesday that Paul Isbell Economist oil reserves and to make initial recommen- the government is in talks with Senior Fellow, dations on what each government should ExxonMobil to pay the U.S.-based oil Inter-American Max Yzaguirre do to prevent, contain and respond to major $6 billion for assets President Dialogue Chief Executive Officer, future oil spills. Among us were the co- Hugo Chávez seized in 2007. See story The Yzaguirre Group chair and the chief scientist of President on page 2. Obama's oil spill commission, environ- File Photo: Venezuelan Government. mentalists and safety experts. Cuba has -Start Content- Inside This Issue

FEATURED Q&A: Is the U.S. Likely to Pacific Rubiales Resuming Spain's Vestas Wins New Wind Engage with Cuba on Offshore Drilling? ...... 1 Production After Colombia Strike...... 2 Projects in Nicaragua, Chile...... 3 Venezuela Proposing to Pay Shell Plans Big Investments in Brazil, Advisor Q&A: Was Brazil's Exxon $1 Billion for Seized Assets ...... 2 Likely to Participate in Next Auction ...... 3 Surprise Interest Rate Cut Justified?...... 4 U.S. Court Unfreezes $18 Billion AES, Exxon Announce More Political and Economic News: Mexico, Damage Award Against Chevron ...... 2 than $800 Mn in Argentine Investments...... 3 Venezuela, Chile and More ...... 4-5

ENERGY SECTOR BRIEFS Oil & Gas News the company's activities in Ecuador, Reuters reported. The order, which was General Electric Wins More than issued by the 2nd U.S. Circuit Court of $1 Billion in New Brazil Orders Venezuela Proposing to Pay Appeals, is the latest development in the General Electric on Tuesday Exxon $1 Billion for Seized Assets battle in which Ecuadoreans contend that announced more than $1 billion in Texaco, which Chevron bought in 2001, is new agreements in Brazil's wind, oil Venezuela's oil minister denied late at fault for oil drilling waste that was and gas sectors. The company said Wednesday that the government is in talks dumped on their land in the 1970s and that it was awarded $800 million for with ExxonMobil to pay the U.S.-based 1980s. Chevron argues that Texaco cleaned wind and gas turbines for projects oil major $6 billion for assets President all the waste pits for which it was responsi- Hugo Chávez seized in 2007. "I want to ble before turning the areas over to state that will produce 1.4 gigawatts of make clear to Venezuela and the world oil company Petroecuador. In February, a electricity. GE also won a contract that we are not in any discussions with judge in Ecuador ordered Chevron to pay worth as much as $230 million to Exxon Mobil to negotiate this litigation $18 billion to the plaintiffs, but both sides supply drilling and production outside the procedures that have taken appealed. equipment to OGX Petroleo e Gas. place in the interna- "Energy technologies—from explo- tional arbitration," Pacific Rubiales Resuming ration to power generation—are in said Rafael Ramírez, Production After Colombia Strike high demand by our customers, par- who is also head of ticularly in emerging markets," said the state oil company, Pacific Rubiales Energy Corp. said GE Vice Chairman John Krenicki. Petroleos de Thursday that it expects to resume normal Venezuela,or crude production within a week after Ten Companies Express Interest in PDVSA, Dow Jones reaching an agreement to lift protests that Uruguayan Exploration Blocks reported. Ramírez Escarra had shuttered production at Colombia's added that the gov- largest oil field, Reuters reported. The Ten foreign companies have File Photo: Venezuelan ernment is seeking to demonstrations on Wednesday forced the expressed interest in Uruguay's sec- Government. pay Exxon $1 billion Toronto-based company to declare force ond licensing round, which includes in the arbitration case, which is in the majeure and halt its pumping of 225,000 15 offshore oil and gas exploration World Bank's International Center for the barrels of oil a day, a quarter of the coun- blocks in water depths of between Settlement of Investment Disputes, or try's total oil production. Company execu- 2,000 and 12,000 km, Platts report- ICSID. Ramírez's statements contradicted tives, oil workers and the government ed, citing an official from state- remarks made earlier in the day by owned company Ancap. According Venezuela's prosecutor general, Carlos to geologist Bruno Conti Paciello, Escarra, who said the government was The demonstrations forced the among the companies that have considering a settlement with Exxon of as expressed interest are Gazprom, BP, much as $6 billion. Exxon, based in Pacific Rubiales to declare force Irving, Tex., had originally demanded $12 Total, BG, Tullow and Noble. Ancap majeure and halt production of will announce the qualified compa- billion for assets Chávez seized as part of his nationalization drive, but the company nies next March. 225,000 barrels of oil a day. last year reduced that claim to $7 billion. Brazil's Offshore Oil Will Attract $250 Officials of PDVSA have said they expect Billion Over Next Decade: Report decisions this year in the cases with Exxon and with Houston-based ConocoPhillips, reached an agreement late Wednesday to Over the next decade, Brazil's off- which also had assets seized by Venezuela lift the strike, increase dialogue and allow shore oil fields will drive $250 bil- almost four years ago. However, the company to restart production. "The lion in investments, according to a ConocoPhillips officials said in April that company has commenced the process of study released Wednesday from it could be years before they received com- restarting operations at the fields and Ernst & Young Terco and the pensation. expects to have production back to normal Getulio Vargas Foundation, Dow levels within a week," Pacific Rubiales said Jones reported. While Brazilian oil U.S. Court Unfreezes $18 Billion in a statement, Reuters reported. "There exports were valued at $16.1 billion Damages Award Against Chevron has been no material damage as a result of in 2010, the study estimates that the blockade." Colombia is the fourth- they will reach 600,000 barrels a day A federal appeals court in New York on largest crude oil producer in Latin Monday reversed an order that had frozen America, but the country has been beset and generate $27.9 billion per year an $18 billion award against Chevron, by social protests, which have been seen as by 2020. stemming from an 18-year legal battle over a significant threat to the energy sector.

Shell Plans Big Investments in Brazil, ethanol plant]," he said. Shell has a 50 per- ty in global terms, both from the regulato- Likely to Participate in Next Auction cent share in the block, which may hold ry point of view and geological," Odum 400 million barrels of recoverable oil. said, adding that Shell was likely to com- Royal Dutch Shell may invest more than Production in the area pete when Brazil's National Petroleum $1.6 billion in the second phase of explo- has been 30 percent Agency auctions new exploration blocks ration in a key Brazilian oil block and also higher than anticipat- off the country's northeast coast in 2012. plans to compete in the country's next ed, according to the auction of oil and gas concessions, The report. Marvin Odum, Power Sector News Telegraph reported Wednesday. Andre Shell's director of Araujo, president of Shell Brasil, said the exploration and pro- second phase development of the BC-10 duction for the AES, Exxon Announce More than block in the Campos Basin will start next Americas, told local Araujo $800 Mn in Argentine Investments year, according to the report. "To give you newspaper Brasil File Photo: Shell. an idea of the importance of exploratory Econômico that the Argentine President Cristina Fernández activity in Brazil for Shell, we are going to company sees more attractive investment de Kirchner on Wednesday met with exec- invest, just in the second phase of BC-10, prospects in Brazil than many other oil- utives from AES Corporation and more than the $1.6 billion that we spent to producing nations. "The opportunities ExxonMobil in New York and announced set up Raizen [its joint venture Brazilian that we find here are of the highest quali- more than $800 million in energy sector investments, EFE reported. Arlington, Va.- Featured Q&A based AES, which currently generates 12 Continued from page 1 percent of Argentina's electricity, prom- fundamental first step towards building an oil-related marine accident, any com- ised to add an additional 420MW of technical expertise needed to effectively pany operating in Cuba would require capacity by 2014. The company's CEO, monitor operations and enforce regula- immediate access to U.S. oil services and Andrés Gluski, announced plans for $300 tions. When revenues start flowing, inde- equipment companies that can provide million of investment, including a pendent oversight will be critical. the near-instant technology and know- 300MW power plant outside of Buenos Everyone at the Havana meetings agreed how that will be needed to limit and halt Aires. AES also pledged increase the that Florida and much of the East Coast damage to our shared marine environ- amount of biodiesel used in their genera- will be at risk unless the U.S. government ment. What is also urgently needed is for tors by 10 percent. According to vice pres- authorizes American experts to respond the United States to develop appropriate ident Mark Alberts, ExxonMobil will to spills in Cuban waters. This should be regulatory and procedural frameworks invest $400 million to expand fuel pro- followed by earnest and constructive dia- for the free movement of equipment, per- duction in Argentina and is planning to logue on how our two countries can sonnel and expertise between the two spend $120 million to explore in the cooperate to significantly reduce the like- countries as part of an oil spill response country's southern Neuquén province, lihood of oil spills altogether. A founda- cooperation agreement. The 1980 where promising shale gas deposits have tion of good will and exchange has been Agreement of Cooperation Between the been found. Planning Minister Julio De laid. Now the hard work needs to begin." United States and Mexico Regarding Vido expressed confidence Tuesday that Pollution of the Marine Environment and such investments would ensure gas sup- Jorge Piñon, former president the 1986 Canada-United States Joint plies through 2015, Dow Jones reported. of Amoco Oil Latin America and Marine Pollution Contingency Plan pro- "We, together with Bolivia, are going to research fellow at Florida vide the foundation for a similar protocol become a gigantic source of gas in South A International University: "The with Cuba, which includes the establish- America with opportunities for industri- Deepwater Horizon incident and the ment of joint response team, coordinat- alization," he said. resulting catastrophic oil spill demon- ing roles, rapid incident notification strate the urgency in developing a policy mechanisms, joint operations centers, Spain's Vestas Wins New Wind on energy and environmental coopera- communication procedures along with Projects in Nicaragua, Chile tion between the United States and Cuba. regular exercises and meetings. As international oil companies develop Obviously, the establishment of working Spain-based Vestas said Sept. 16 it has Cuba's deepwater oil and natural gas relations between the United States and won new contracts in Nicaragua and potential, the consequences to the United Cuba in marine environmental protec- Chile. In Nicaragua, the company, which States and Cuba from an oil spill tion would assist enormously in the con- supplies wind turbines, has received an demands proactive planning by both tingency planning and cooperation nec- order for a total of nearly 40MW for the countries in order to minimize or avoid essary to an early and truly effective La Fé-San Martin wind project in such a disaster. To respond effectively to response to an accidental oil spill." Nicaragua. The order has been placed by Blue Power & Energy, a company that Continued on page 6 specializes in the development of wind

Copyright © 2011, Inter-American Dialogue Page 3 of 6 Inter-American Dialogue’s Latin America Energy Advisor September 19-23, 2011 power projects. Delivery of the first tur- Int'l Court Clears Venezuelan charges. He does not have a sure shot to bines is expected to start this year and the Opposition Leader for Electoral Run the presidency, however. "The ruling of project is expected to be commercially the IACHR Court runs counter to the operational during the first half of next The Costa Rica-based Inter-American human rights of all Venezuelans, the laws year. Vestas also announced it has started Court of Human Rights (IACHR) on of the Republic, justice and national sov- the construction of a fully owned wind Sept. 16 cleared opposition leader ereignty; it promotes impunity and project for 100MW in Chile, the Talinay Leopoldo López to run for Venezuela's impedes and undermines the fight against Oriente Wind Power Plant, which will be presidency next year, local daily El corruption," a press release issued by the located in northern Chile's Limari Universal reported. López, a young former Venezuela's comptroller general office Province. This project will be the largest mayor of Chacao, was banned three years stated. President Hugo Chávez dismissed wind power plant in Chile, the company ago, along with hundreds of other opposi- the ruling on Sunday. "One of my haircuts said. The construction of Talinay Oriente tion figures, from standing for public is worth more than this court," he said to starts in this quarter and is expected to be office over controversial corruption laughter from an audience of supporters, finalized in the first quarter of 2012. Once in operation, Talinay Oriente will almost Advisor Q&A double the wind-power capacity in Chile, the company said. Was Brazil's Surprise Interest Rate Cut Justified? Political News Excerpted from the Sept. 23 issue of the Dialogue's daily Advisor In a surprise move, Brazil's its mandate is to anticipate. It also saw central bank on Aug. 31 cut its falling capacity utilization, a stabilization Mexico City Mayor benchmark interest rate by half of global commodity prices, a high pri- Announces Presidential Run Q a percentage point to 12 per- mary fiscal surplus of 3.15 percent and, cent, as fears of a global economic above all, an extremely worrisome Mexico City Mayor Marcelo Ebrard slowdown overtook those of the coun- demand and growth scenario in its announced Wednesday that he is running try's high inflation rate. The move also important industrial trading partners. for president, the Associated Press report- raised questions among some analysts These factors suggest an eventual, ed. In the long-anticipated announce- about the central bank's independence though not necessarily imminent, easing ment, Ebrard said he will seek the nomi- in the face of political pressures. Was of inflation pressures. The Monetary nation of the leftist Democratic the rate cut justified? Will it have the Policy Committee, COPOM, worried too Revolution Party, or PRD, adding he intended effects or is inflation likely to about the adverse impact on Brazilian wants a "fairer, safer worsen? Should other countries in Latin competitiveness of a real trading at a and more prosperous America also cut their interest rates, as punishing 1.60 per U.S. dollar in late society." Ebrard is the Mexican central bank has indicated August. On balance, five of the seven competing against it is considering? committee members reasoned that, former Mexico City given the substantial tightness (even after Mayor Andrés Lawrence Krohn, professor of allowing for inflation) implied by a 12.50 Manuel López practice of international eco- percent Selic rate, a downward adjust- Obrador, who nar- nomics at Tufts University: ment constituted an acceptable risk in rowly lost the 2006 A "The Central Bank of Brazil regard to future inflation. It is too early presidential election Ebrard (BCB), which is not legally independent, to deem that decision irresponsible, even to Felipe Calderón, File Photo: Mexican has been widely seen as a relentless cru- if inflation rises, as is likely, in the for the PRD nomina- Government. sader for price stability, immune to all months ahead. Other central banks in tion. PRD leaders pressures. A single retreat from an Latin America should be at least contem- have said they will conduct a public opin- extraordinarily high overnight policy plating similar easing in light of such ion poll in order to select the nominee. rate should not undermine that reputa- ominous developments abroad. But they While López Obrador has more support tion. No evaluation can be made without start from lower real policy rates than among members of the party, Ebrard is reference to the Aug. 31 minutes, which Brazil's." running slightly ahead of the former hardly read like a polemical political mayor among all voters. Leading polls document. The BCB evenhandedly drew ahead of the July 2012 election is former attention to those factors not favoring its Editor's note: The Advisor welcomes reac- Mexico State Gov. Enrique Peña Nieto, rate cut: the strength of domestic tions to the Q&A above. Readers can who announced Monday that he is seek- demand, recent inflation exceeding the write editor Gene Kuleta at gkuleta@the- ing the nomination of the Institutional 6.5 percent target ceiling, taut labor mar- dialogue.org with comments. Revolutionary Party. kets and sustained credit expansion. But

Reuters reported. Chávez has shaved his expired early this year and Republicans POLITICAL & ECONOMIC BRIEFS head since entering chemotherapy and and Democrats have clashed over renew- often jokes about his hair. Last week, ing them. The Senate-passed bill renews Chilean Students Return to Carlos Vecchio, a leading member of the many of the provisions through 2013, but the Streets After Talks Fail opposition Voluntad Popular party, said it also reduces from the 2009 law the num- Tens of thousands of demonstra- López would be the party's candidate for ber of weeks that displaced workers can tors have resumed protests in the opposition presidential primaries if get income support and makes other Chile's capital after negotiations the IACHR ruled in his favor. changes. The 2009 law came at a cost of with the government to meet $2.1 billion and the one approved demands for increased spending Economic News Thursday by the Senate would cost approximately $900 million over three and improved quality of education years. failed, Agence France Presse report- U.S. Senate Approves Trade ed. Between 60,000 and 150,000 Adjustment Assistance Program Venezuela's Nationalization of Gold students marched from the Mining Industry Takes Effect University of Santiago to the presi- The U.S. Senate on Thursday passed legis- dential palace on Thursday. lation to help workers displaced by com- The government of Venezuelan President Though largely peaceful, small petition from abroad, which President Hugo Chávez on Monday nationalized the groups clashed with the police at Barack Obama had demanded in order to country's gold mining industry, requiring the end of the march and at least send long-stalled free-trade agreements that all gold mined in the South American 50 people were arrested. with Colombia, Panama and South Korea country be turned over to the state, the to Congress, Reuters reported. The Senate Associated Press reported. Private compa- Paraguay Halts Beef Exports passed the revamped Trade Adjustment nies will still be allowed to participate in on Foot-and-Mouth Outbreak Assistance (TAA) program on a vote of gold mining, but they now can do so only In response to the detection of a 70-27. Senate Republican Leader Mitch as minority partners with the govern- McConnell of Kentucky called on Obama ment. Chávez signed the decree last foot-and-mouth disease outbreak, to now display "trust" in Republicans by month for the nationalization, which took Paraguay has halted beef exports sending the trade pacts to Congress before effect with its publication Monday in the until December and ordered hun- the House of Representatives has voted on country's Official Gazette. Private compa- dreds of cattle to be slaughtered, the TAA. House Speaker John Boehner (R- nies have 90 days to form joint ventures Reuters reported Monday. Paraguay Ohio), said that if Obama sent the trade with the government, which will hold at is a top 10 exporter of beef and was accords to Congress now, lawmakers least 55 percent of any such ventures. The expected to post record exports this could approve them and present them for government's decree also sets a royalty year. Industry figures said that halt- his signature by the middle of October. rate of between 10 percent and 13 percent. ing shipments until December could "We await the president's submission of The country's state oil company, cause a loss of as much as $400 mil- the three trade agreements sitting on his Petroleos de Venezuela, or PDVSA, is lion. desk so the House can consider them in forming joint ventures with companies to tandem with the Senate-passed legisla- operate mines including Las Cristinas, Colombia Seizes $250 Million tion," said Boehner. U.S. Trade which was seized from Canada-based in Property From Drug Gang Representative Ron Kirk called the Crystallex International Corp. Chávez Senate's passage of the TAA an "important on Aug. 17 announced the nationalization Colombian authorities have seized step," but did not say when Obama would and said his government would repatriate 301 pieces of property, including submit the accords to Congress. "The gold reserves held abroad. Two weeks houses, estates and vehicles from trade agreements, along with Trade later, Vancouver-based Rusoro Mining, associates of drug lord Joaquín "El Adjustment Assistance, are an integral which produces 100,000 ounces of gold Chapo" Guzmán, the head of part of the president's plan to create jobs annually, said it would transfer assets to a Mexico's Sinaloa drug cartel, the here at home. The president looks forward joint venture that PDVSA controls. Associated Press reported to their prompt passage," said Kirk, Chávez on Sept. 17 approved $130 million Wednesday. Approximately 500 law adding that "discussions continue with in new funding for Corporación enforcement officers participated in congressional leadership on how these Venezolana de Guayana, the govern- the operation, seizing some $250 bills will move through the legislative ment's mining holding company. The million in assets. The operation tar- process." The TAA, which has existed since additional money will be used to pay geted the Cifuentes Villa gang, 1962, was expanded in the 2009 U.S. stim- salaries and overtime wages to workers, ulus legislation to include more workers many of whom have been on strike in which has helped the Sinaloa cartel and provide better health insurance bene- recent months, according to the ministry launder money and transport fits. The more generous provisions of mining and basic industries. cocaine.

Copyright © 2011, Inter-American Dialogue Page 5 of 6 Inter-American Dialogue’s Latin America Energy Advisor September 19-23, 2011 -End Content- Featured Q&A Latin America Energy Advisor Continued from page 3 is published weekly by the Inter-American Dialogue, Copyright © 2011 Jonathan Benjamin-Alvarado, develop a regional environmental safety professor of political science regime on deep water drilling so that the Erik Brand at the University of Nebraska transfer of technology, safety and envi- General Manager, Publishing A at Omaha: "From a purely ronmental practices can be standard- [email protected] technical perspective, the Cubans have ized. So long as we continue to rely on Gene Kuleta consistently demonstrated the knowl- fossil fuels we must forge agreements Editor edge and wherewithal to tackle complex and protocols that address all elements [email protected] matters while adhering to international of oil production and its uses. Rachel Sadon safety standards. This was evident from Reporter, Assistant Editor their experience with nuclear energy Kirby Jones, president of [email protected] development, but without a doubt this Alamar Associates in cannot be done in a vacuum. The Bethesda, Md.: "Of course Inter-American Dialogue Cubans worked closely with the safety is an important issue A Michael Shifter, President International Atomic Energy Agency concerning the plans for Cuba to initi- and as such there needs to be a set of ate drilling just a few miles off the coast Peter Hakim, President Emeritus formal regional agreements and proto- of Florida. And it is furthermore a legit- Katherine Anderson, V.P., Finance & Administration cols that oversee the safe operation of imate concern, but no less and no more Genaro Arriagada, Nonresident Senior Fellow offshore oil production in the Gulf of than concern about any oil rig in any Sergio Bitar, Nonresident Senior Fellow Mexico and across the Caribbean. It waters around the world. From the vis- would make sense for the United States its to Cuba by environmentalists and Joan Caivano, Director, Special Projects to take the lead in the establishment of energy experts from the United States Paul Isbell, Visiting Senior Fellow such protocols, and the thoughtful com- and the meetings they have held with Claudio Loser, Senior Fellow mentaries of expert analysts like Fareed their Cuban counterparts, it is clear that Nora Lustig, Senior Fellow Zakaria and Jorge Piñon begs the ques- the Cubans are equally concerned and Margaret Myers, Director, tion. But there hasn't been sufficient are doing all that can be done to prevent China and Latin America Program political will in Washington to step away any such accident. But the real point for Manuel Orozco, Director, Remittances from the antiquated and obsolete basis discussion is that the attitude of just a and Development Program of our Cuba policy. Even with the relax- few Florida politicians is the major con- Tamara Ortega Goodspeed, Senior ation of some of the travel regulations, tributing factor preventing the United Associate, Education we essentially continue to fight the Cold States from preparing to combat any Marifeli Pérez-Stable, Senior Fellow War in Cuba, albeit trimmed around the possible accident. It is their blindness edges. There are four critical steps that caused by an irrational adherence to a Jeffrey Puryear, Vice President, Social Policy are recommended by the most knowl- 50-year-old policy that one day may be Viron Vaky, Senior Fellow edgeable observers of the question. First, the cause of damage to the United States Subscription Inquiries are welcomed at we must directly engage the Cubans on if there is an accident. The administra- [email protected] the development of a joint protocol or tion seems paralyzed from doing what is emergency response agreement in case in the interest of the United States and Latin America Energy Advisor is published of an oil spill. Second, the United States in the interest in Florida, because this weekly, with the exception of some major US will have to exempt oil equipment and policy prevents any bilateral contact or holidays, by the Inter-American Dialogue supply companies from the embargo any involvement with Cuba on this 1211 Connecticut Avenue, Suite 510 and export control regulations in the issue. Citizens and tourist officials of Washington, DC 20036 case of an accident. Third, we need to Florida should demand that their elect- Phone: 202-822-9002 Fax: 202-822-9553 www.thedialogue.org ISSN 2163-7962 identify and license rapid response oil ed officials put the interests of Florida spill service providers so that they can and American citizens ahead of any per- The opinions expressed by the members of the Board act immediately if the need arises. sonal vendettas against Cuba. Our of Advisors and by guest commentators do not necessarily represent those of the publisher. The analysis is Finally, the United States must allow national strategic need for oil and our the sole view of each Advisor and does not necessarily Cuba's national oil company Cupet, to national desire for safety should be represent the views of their respective employers or join the International Association of first." firms. The information in this report has been obtained from reliable sources, but neither its accuracy Drilling Contractors so that they can and completeness, nor the opinions based thereon, are gain experience and share in best prac- guaranteed. If you have any questions relating to the tices on deep water drilling. The Energy Advisor welcomes responses contents of this publication, contact the editorial offices of the Inter-American Dialogue. Contents of Additionally, I would strongly encour- to this Q&A. Readers can write editor this report may not be reproduced, stored in a retrieval age that the United States, along with Gene Kuleta at [email protected] system, or transmitted without prior written permis- Mexico, the Bahamas, Jamaica and Cuba with comments. sion from the publisher.