Relations among Cuba and the United States have long been interlinked. The turbulent relationship between the pair, stemming from the Cold War era, scarred the modern age and left a notorious legacy. The issue continues to influence world affairs today and the scar tissue of the war continues to make news. In Panama, on the 11th of April 2015, President Obama and President Castro marked the first meeting between the pair by shaking each other’s hand. This was the first time since 1961 that a U.S. and Cuban head of state had come together. Although the two heads of state would like to work out their differences, one problem still arises: the U.S. trade embargo. After nationalising several local subsidiaries of U.S. corporations and taxing American
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It is worth noting that one of Cuba’s most dependent exports is oil (CIA, 2015), generated by Cuba’s state oil company Cupet. The oil refiners produce 25 million barrels per year (Cupet, 2015) and the country import a further 96,000 barrels a day from Venezuela (Tamayo, 2013). However, recent technological innovation in the extraction of oil and gas has allowed the U.S to cause the price of oil to sharply fall (Bowler, 2015). In this day in age, the combination of fracking and horizontal drilling, using modern technologies, is mostly responsible for surging U.S. oil production (Bowler, 2015). The U.S fracking boom has damaged the ability of Venezuela to continue providing a lifeline to Cuba’s bankrupt economy (Naim, 2014). Cuba needs an economic alternative and the U.S is one. It is evident that the effect of low oil prices has provoked international relations between the two countries and U.S businesses can take advantage of this situation. To avoid entering another period of extreme economic austerity, Cuba could create a replacement for its Venezuelan benefactor through the use of companies like Exxon Mobil Corp. This presents itself as an opportunity for America. To summarise, the U.S’s use of technology for oil extraction is a major threat for Cuba’s suppliers, leading to the point where Cuba will have to eventually gain trust in its neighbours if it to survive in the long-term, thus benefiting U.S oil companies who wish to extend their market into
It is worth noting that one of Cuba’s most dependent exports is oil (CIA, 2015), generated by Cuba’s state oil company Cupet. The oil refiners produce 25 million barrels per year (Cupet, 2015) and the country import a further 96,000 barrels a day from Venezuela (Tamayo, 2013). However, recent technological innovation in the extraction of oil and gas has allowed the U.S to cause the price of oil to sharply fall (Bowler, 2015). In this day in age, the combination of fracking and horizontal drilling, using modern technologies, is mostly responsible for surging U.S. oil production (Bowler, 2015). The U.S fracking boom has damaged the ability of Venezuela to continue providing a lifeline to Cuba’s bankrupt economy (Naim, 2014). Cuba needs an economic alternative and the U.S is one. It is evident that the effect of low oil prices has provoked international relations between the two countries and U.S businesses can take advantage of this situation. To avoid entering another period of extreme economic austerity, Cuba could create a replacement for its Venezuelan benefactor through the use of companies like Exxon Mobil Corp. This presents itself as an opportunity for America. To summarise, the U.S’s use of technology for oil extraction is a major threat for Cuba’s suppliers, leading to the point where Cuba will have to eventually gain trust in its neighbours if it to survive in the long-term, thus benefiting U.S oil companies who wish to extend their market into