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In Cuba, It’s a Revolution, Revolution, Revolution…
By Robert Bryce
Posted on Aug. 13, 2008

Cuba's President Raul Castro gestures as he addresses the National Assembly in Havana, Friday, July 11, 2008. The revolution lives in Cuba. And it’s not just the revolution started by Fidel Castro four decades ago. It’s an energy revolution. Got that? It’s a revolution. On July 1, during a “ministerial session” at the World Petroleum Congress in Madrid, that point was made. And then repeated. And repeated. And repeated. And repeated one more time. These sessions, which give energy ministers an opportunity to pitch their countries to foreign investors, are usually well rehearsed and get straight to the point. Top government officials quickly identify their most attractive lease blocks, give details on their country’s investment terms, and then ask for questions. Not the Cubans. The hourlong session began with Yadira Garcia Vera, director of the Ministry of Basic Industries, delivering in Spanish the outlines of Cuba’s energy landscape, which included her declaration that the country is undergoing – what else? – an “energy revolution.” Her remarks were then translated into English for the 30 or 40 people in attendance. Garcia made it clear that while her country wants to become selfsufficient in oil, energy efficiency is a top priority. This part of the “revolution” she explained, means the systematic replacement of incandescent light bulbs with compact fluorescents, as well as exchanging older domestic appliances, refrigerators, televisions, fans, and other electricityconsuming goods, for new, more efficient models. She also gave details on the country’s plans to shutter its old electric power plants and replace them with smaller, more efficient power plants, all of which would be interconnected. Garcia then gave a rundown of Cuba’s upstream sector, explaining that the investment rules were changed in 1991 to allow foreign investment. She also explained that Cuba has leased 24 offshore blocks in its offshore exclusive economic zone, and that there are high hopes for a big oil find there. After mentioning the energy revolution a few more times, she explained that visitors would be treated to a 20minute DVD presentation. The title of the video: “The Energy Revolution in Cuba.” What followed was a near wordforword rehash of the information Garcia had just delivered. Attendees were reminded that Cuba planned to replace its older power plants that it had big hopes for its offshore oil industry that the foreign investment laws were passed in 1991 that 24 offshore blocks had been leased and that there was lots of potential for a major oil find in the exclusive economic zone. The highlight of the DVD was the segment that focused on energy efficiency. Cuba’s “energy revolution” is being led by ordinary Cubans who, believe it or not, are replacing their incandescent light bulbs with compact fluorescents. About halfway through the DVD came the shots of the revolutionaries themselves. The obligatory footage included images of Fidel Castro from the 1960s. Shortly after that came the currentday Castro looking frail and pale. And immediately after that came Fidel’s pal, Venezuelan president Hugo Chávez. First was Fidel with Chávez. Then Chávez by himself. Chávez in a red shirt. Chávez in a suit. Chávez with Fidel again. Then Chávez with some unnamed African leaders. After the parade of revolutionaries came a declaration that Cuba is working to have “rational use of energy” and that it wants to limit the electricity consumption of its people. This plan, observers were told, has the “total support of the leadership of our country.” And with that came the one – and only – shot of Fidel’s brother, the new leader of Cuba: Raul Castro.
Finally, with just about 15 minutes left in the Cubans’ allotted hourlong slot, Rafael Tenreyo Pérez, CubaPetroleo’s exploration manager, was finally allowed to deliver the goods. He explained the production sharing agreements that Cuba has signed with foreign companies and projected a map in PowerPoint that gave a more detailed look at the offshore blocks Cuba is hoping to lease. Fortunately, Tenreyo did not mention the youknowwhat. But he did claim that “it is possible to discover big and even giant oil fields” in Cuban waters.
The only news that was committed during the ministerial session came after the formal session. That’s when Tenreyo told the handful of reporters in attendance that the first offshore well in the exclusive zone could be drilled within the next 12 months. Several companies are active in the zone, but Tenreyo said that the first company to drill will likely be one of the leaseholders: Malaysia’s Petronas, Spain’s Repsol YPF, or India’s ONGC. The energy revolution will not be televised. But for Cuba, it may just begin offshore.
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