If Cuba Can Drill Off Florida, Why Can't We?

Source:

". . .this underscores the disarray of U.S. Energy Policy. . ."

Stock market analyst Eric Fox, stating his views in a commentary for www.investopedia.com, has drawn attention to an interesting anomaly facing the U.S. oil and gas industry.

Fox draws attention to an agreement signed last week between Cuba and a Russian oil company to explore waters in the Gulf of Mexico.

Fox says the agreement raises a question that seems almost like a joke: If Cuba can explore for oil and gas off the coast of Florida, how come the United States can't?

"The problem that I have is not with Cuba exploring, as they are within their legal rights, or even that there are no American companies involved due to U.S. law," says Fox.

"The issue is that the exploration of the North Cuba Basin will come within 45 miles of the Florida coast, which is closer than American companies can drill in U.S. waters," he says.

Fox says that "Cuba, a country with which we have no diplomatic or commercial relations, can drill and explore for oil and gas closer to our coast than our own domestic industry can."

According to Fox, "this underscores the disarray of U.S. Energy Policy, and will prolong our dependence on foreign sources of oil even longer."

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