T BE CUBA R B V I E \V 23 



DEVELOPMENT OF PETROLEUM RESOURCES IN CUBA 



Much has been said and written as to the probable petroleum resources of Cuba. 

 A number of companies bave been organized Cor the purpose of developing supposed 

 oil fields on the island. Various questions are arising ;is to the securing of con- 

 cessions and as to wha1 has been actuallj accomplished In the search for petroleum 

 in Cuba. 



HOW CONCESSIONS ARE OBTAINED 



ruder Cuban law, oil and mineral products lying below the immediate surface 



d i belong to the owner of the land itself bul remain the property of the State. 



Concessions to develop possible oil fields in Cuba are granted freely to foreigners 

 and to Cubans "ii the same terms. The charges made for concessions are fixed by 

 law and are set forth in certain tables forming a pari of the Law, the charges de- 

 pending upon the area included in the concession. 



The owner of the surface has no share in the profits of the enterprise, though 

 he is entitled to damages when injury is done to the surface or to buildings or other 

 structures thereon. The time required in securing a concession depends somewhat 

 upon the location of the land in question, its size, the work of survey, etc. 



CONCESSIONS IN FORCE 



The number of petroleum concessions granted in Cuba up to the close of lOll 

 was ss, including a total of 17,595 hectares (one hectare is equal to I'. 47 acres). (»l 

 these concessions, 35 were in the Province of Havana, the smallest of the six Prov 

 inces of Cuba and about a third larger than the State of Delaware. This Province 

 has thus far led in prospecting for oil. 



It is said that approximately 20 oil wells have up to this time been completed 

 in Cuba, of which only four or five are producing in what can be called paying quan- 

 tities, and in these cases the actual yield is not large. 



The concessions following the regular statutory form differ but little except in 

 the area of the concession. Some have been practically abandoned because of the 

 apparent absence of oil. 



VALUE OF CUBAN OIL DEPOSITS 



It is impossible at present to stale whether the petroleum resources of Cuba are 

 important. Although exploitation has been going on for several years without prool 

 as vet of oil deposits of commercial importance, there are those who profess to be- 

 lieve that wells drilled to considerably greater depth will show valuable deposits. 

 The organizing of companies and selling of stocks seems to have largely subsided. 

 One of the English printed newspapers of Havana recently published a brief review 

 of the oil situation. It said: "There is little change in the Cuban oil situation, most 

 of the drilling being held up at present, due to the failure to receive machinery from 

 the United States." As to the Cuban oil slocks it said: "The Oil stock market may 

 be described as being in the depths. So many wells have been stopped temporarily 

 and the producing wells in the Bacuranao have slumped so much in their production 

 that it has had a most depressing effect on"prices." 



The same publication, under date of June 22, refers to a statement of Thomas 

 Draper, described as "a well-known English geologist," to the effect that be is stronger 



than ever of the "belief Cuba is destined t icupy an important place in the world's 



oil production." It is said that Mr. Draper "is now preparing a report on the Cuban 

 oil situation for publication in England, where capitalists are becoming interested in 

 the possibilities of Cuba as an oil field." 



Whether this latter announcement may have for its chief purpose the bolstering 

 up of outstanding Cuban oil stocks or the securing of more American and other capital 

 in the enterprise would seem uncertain. The fact remains that as yet no oil field 



