Cuba's fuel shortages due to supplier nations not delivering, says president

[El Presidente]

 

https://www.reuters.com/world/americas/cubas-fuel-shortages-due-supplier-nations-not-delivering-says-president-2023-04-14/

 

HAVANA, April 14 (Reuters) - Cuba's President Miguel Diaz-Canel said the island's ongoing gasoline shortages were caused by countries contracted to supply the fuel not complying with their requirements due to "a complex energy situation."

In an evening TV broadcast, Diaz-Canel said the Caribbean island had less than 400 tonnes of gasoline per day to fuel all its activities, whereas the country consumes between 500 tonnes and 600 tonnes daily.

"We still don't have a clear idea of how we are going to get out of this situation," he said, in a first public statement in three weeks about the worsening fuel deficit that has plagued the country amid a near-unprecedented economic crisis.

Frustrated citizens have queued for hours - sometimes days, sleeping in their cars - to fill their tanks. Besides car owners, truckers, taxi drivers, tourists and public transport have all been hit by the shortages.

Diaz-Canel said a breakdown of a ship in the southeastern city of Santiago de Cuba that prevented the fuel from being unloaded had delayed diesel supplies, while a large part of available supplies were fuelling electricity generation.

Cuba is focusing on maintaining a group of thermoelectric plants to prevent blackouts that regularly hit the island over the hot summer months - an aggravating ordeal for those living on the island.

Diaz-Canel underlined that the shortages were a result of "non-compliance" from the supplier nations, rather than inefficiencies or issues within the country's energy institutions.

Venezuela, one of Havana's political allies, has for decades supplied Cuba with oil from its state oil firm PDVSA under a cooperation agreement signed in 2000.

According to PDVSA documents and shipping company data, the Venezuelan firm sent some 40,000 barrels per day (bpd) in January, rising to 52,000 bpd in February and 76,000 bpd in March.

Reporting by Nelson Acosta; Writing by Sarah Morland; Editing by Josie Kao

[NSXCIGAR]

When you don't pay they don't deliver...

[Corylax18]

Yeah, the first half is pretty much a carbon copy of Granma's report today. In short, "Its everyone else's Fault." As per usual. If more countries would just give us more free shit, this communism thing will work out perfectly. Trust us. 

https://www.granma.cu/cuba/2023-04-08/45-imagenes-de-los-rescates-en-el-cenicero-de-la-termoelectrica-de-matanzas

[SCgarman]

2 hours ago, NSXCIGAR said:

When you don't pay they don't deliver...

This quote could also apply to Cuban tobacco farmers. 

[MrBirdman]

Hey at least Diaz admitted he doesn't have a clue what he's doing before blaming everyone else. 🙇‍♂️

[Corylax18]

9 minutes ago, MrBirdman said:

Hey at least Diaz admitted he doesn't have a clue what he's doing before blaming everyone else. 🙇‍♂️

76,000 BPD isn't much at all. Even for 11 Million people. Keep in mind, most of that is Crude, not refined product. Cuba's old soviet era refineries are far from efficient. Cuba produces almost all of its electricity from some form of Crude, on top of the Gas/Diesel needed for regular people and any "commerce" on the island. Who knows how many Free BPD Venezuela has promised Cuba, but apparently, its more than 76,000.

For reference, The Bakken formation in the northwestern US produced over 1 Million BPD alone. Add in the Permian basin's 5 + million (per day) The Marcellus, Eagle-Ford, and Utica Basins and the US is pushing close to 10 million BPD and we still aren't self sufficient. That's more of a refinery capacity issue here, but the difference in scale is staggering. 

[MrBirdman]

Just now, Corylax18 said:

76,000 BPD isn't much at all. Even for 11 Million people. Keep in mind, most of that is Crude, not refined product. Cuba's old soviet era refineries are far from efficient. Cuba produces almost all of its electricity from some form of Crude, on top of the Gas/Diesel needed for regular people and any "commerce" on the island. Who knows how many Free BPD Venezuela has promised Cuba, but apparently, its more than 76,000.

For reference, The Bakken formation in the northwestern US produced over 1 Million BPD alone. Add in the Permian basin's 5 + million (per day) The Marcellus, Eagle-Ford, and Utica Basins and the US is pushing close to 10 million BPD and we still aren't self sufficient. That's more of a refinery capacity issue here, but the difference in scale is staggering. 

Hey I have no idea who is actually to blame or what the real problem is - I was just surprised to see him admit he has no idea how to fix it (not that Cubans had any doubts about that by now, I'm sure)...

[Corylax18]

34 minutes ago, MrBirdman said:

Hey I have no idea who is actually to blame or what the real problem is - I was just surprised to see him admit he has no idea how to fix it (not that Cubans had any doubts about that by now, I'm sure)...

The craziest thing is that Cuba has their own oil, more than enough of it. They aren't far away from the Gulf of Mexico, which is another Highly productive Oil basin. 

Remember Rob's post on the Australian company that's drilling in Cuba? They're pumping 5,000 BPD according to their own website, which cant be profitable. (1st link) Melbana is another Australian company working in the same area. The Aussies describe Cuba as "Very Oil Rich."

https://www.petroaustralis.com/pina-project

https://www.upstreamonline.com/exploration/melbana-advances-cuba-oil-appraisal-drilling/2-1-1354795

That's just the Onshore stuff, the Cuban's have been working with the Chinese for over a decade to produce anything at all from their offshore reasources. And again, that appears to have been a complete failure so far. 

http://www.xinhuanet.com/english/2019-04/17/c_137984456.htm

https://thediplomat.com/2021/08/how-china-helps-the-cuban-regime-stay-afloat-and-shut-down-protests/

The problem isn't resource availability or technology, or a shortage of $$ needed to develope these resources. The problem, as it always is in Cuba, is the Communist Party and the Military being leaches on the country. Diaz Canel knows that, but stating it would swiftly move his ass out of the Tub of Butter its been sitting in for years. He's not that stupid. 

[NSXCIGAR]

On 4/16/2023 at 11:13 AM, Corylax18 said:

The problem isn't resource availability or technology, or a shortage of $$ needed to develope these resources

Exactly. They need capital and they've burnt every bridge and crapped on every investor for decades. You think anyone's dumb enough to sink $10 billion into a 10+ year projected return operation there? Kiss your money goodbye. The day that thing turns one dime of profit the military shows up and tells you to get off their refinery. 

I honestly don't know what they're going to do. The only player that could really step in right now is China and are they dumb enough to do it? China's into gaining control and they'll never have control in Cuba. I'm also not sure how comfortable China would be with that kind of presence so close to the US. 

[BrightonCorgi]

On 4/15/2023 at 6:18 PM, NSXCIGAR said:

When you don't pay they don't deliver...

Was just going to type something similar. 

[BrightonCorgi]

On 4/16/2023 at 2:13 PM, Corylax18 said:

The craziest thing is that Cuba has their own oil, more than enough of it. They aren't far away from the Gulf of Mexico, which is another Highly productive Oil basin. 

Remember Rob's post on the Australian company that's drilling in Cuba? They're pumping 5,000 BPD according to their own website, which cant be profitable. (1st link) Melbana is another Australian company working in the same area. The Aussies describe Cuba as "Very Oil Rich."

https://www.petroaustralis.com/pina-project

https://www.upstreamonline.com/exploration/melbana-advances-cuba-oil-appraisal-drilling/2-1-1354795

That's just the Onshore stuff, the Cuban's have been working with the Chinese for over a decade to produce anything at all from their offshore reasources. And again, that appears to have been a complete failure so far. 

http://www.xinhuanet.com/english/2019-04/17/c_137984456.htm

https://thediplomat.com/2021/08/how-china-helps-the-cuban-regime-stay-afloat-and-shut-down-protests/

The problem isn't resource availability or technology, or a shortage of $$ needed to develope these resources. The problem, as it always is in Cuba, is the Communist Party and the Military being leaches on the country. Diaz Canel knows that, but stating it would swiftly move his ass out of the Tub of Butter its been sitting in for years. He's not that stupid. 

Offer a drilling lease to China and see how things change.

[Corylax18]

7 hours ago, BrightonCorgi said:

Offer a drilling lease to China and see how things change.

There was only one sentence at the end of the first article, but China has had rights to drill all over Cuba, for roughly 20 years. The article below is from 2005, its the first mention I can find. That's way back during the Hu Jintao days. They wouldn't still be there if they weren't making money somehow. I think the Chinese figured out a long time ago, its way easier to build hotels for the Military and sell them off. Now, with Russian oil being almost free, the Chinese would be crazy to invest more into Cuban production, the shipping costs would probably be more than their production costs. It still serves as a nice thorn in the side of the US though. 

https://cuba-solidarity.org.uk/news/article/378/cuba-china-sign-oil-production-contract