cuba's current energy situation, future plans + challenges
TRANSCRIPT
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Cuba’s Current Energy Situation, Future Plans + Challenges
presented by Luis M. Alcalde
Florida International Bar Association
Orlando, Florida | November 20-21, 2014
Cuba 2014: What the U.S. Legal and Business Community Need to Know
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Ricardo Torres Perez, Center Study of Cuban Economy
Principal Pillars of Cuba’s Energy Policies
Costs SecuritySustain-ability
Self-Sufficiency
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Cuban Perspective of Major Energy Issues
High dependency on imported combustibles
Low use of renewable energy
High environmental contamination
High cost of delivered energy
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Cuba’s Energy Profile
Electrification rate (one of highest in region)
of energy comes from fossil fuels
very expensive compared to coal, natural gas, nuclear (about 21 cents per kilowatt hour)
of generating capacity is in distributed systems as Cuba moved away from a centralized power system after 2006
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Current Oil Production + Imports (U.S. Energy Information Agency)
Current estimates are that Cuba produces around 50,000 barrels per day (BPD) and consumes 171,000 BPD (U.S. Energy Information Agency)
Venezuelan imports are estimated from 86,000 to 120,000 BPD of crude and 6,000 BPD refined products
4 refineries in Cuba: Havana, Santiago, Cienfuegos, Cabaiguan
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Production in billion cubic ft. 1980-2012 = 36.37
Consumption in billion cubic ft. 1980-2012= 36.37
Cuba consumes all natural gas it produces
Current Natural Gas Production + Consumption (U.S. Energy Information Agency)
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Petroleum Infrastructure (2010)
Manuel Marrero MINBAS
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Cuba’s Energy GoalsIncrease domestic production specially with off-shore
development
Increase extraction efficiencies from existing land
wells and new shallow water wells along north shore
Increase total electrical generation by 2030 to 24%
from renewable energy
Increase efficiencies and savings in use
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Possible Increases in Oil Production
Recovery factor from 10% to 17% or 20% in existing wells*
12,000 to 15,000 BPD*
Utilize foreign investment to increase and diversify refining capacity specially in Cienfuegos
*Jorge R. Piñon, Latin Am. Caribbean Energy Program, Univ. of Texas
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Exploration Blocks: Land
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Exploration Blocks: Shallow Waters
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Exploration Blocks: Deep Waters
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Cuba’s Renewable Energy Goals
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Cuba’s Renewable Energy Plans
19 New Bioelectric Plants using Biomass Fuels from Sugar Industry: 755 megawatts
+ Estimated costs $1.3 billion U.S.
Wind Farms Along North Coast: 633 megawatts
+ Estimated costs $1.12 billion U.S.
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Cuba’s Renewal Energy Plans
Megawatts of Solar (estimated cost: $1 billion U.S.)
Megawatts of Hydropower(estimated cost: $110 million U.S.)
Additional investments needed to the electrical system to increase output
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Cuba’s Energy Challenges (Petroleum)
Lack of deep water exploration success
Investor disinterest in new/expensive oil explorations (low world oil prices)
Inability to use U.S. equipment/knowhow or obtain international credits because of embargo
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Cuba’s Energy Challenges
Great need for substantial foreign investments in energy sectors
Renewable energies have limits even under best case scenarios
Political and economic instability in Venezuela
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Uncertain Effects of Climate Change
Electrical grid vulnerable to
hurricanes
Global warming = increased energy
demands
Rising sea levels, more storms may affect
agriculture + renewable energies
