In the Caribbean horizon, amid the challenges and transformations of a nation, an organisation has made a significant impact amidst the nation's difficulties and changes. Unión Cuba-Petróleo (CUPET) has been crucial in Cuba's energy history since its establishment in 1992. Responsible for all oil and gas operations in the country, it has forged strategic partnerships with foreign companies and ensured energy supply during critical moments.
𝐇𝐢𝐬𝐭𝐨𝐫𝐲 𝐚𝐧𝐝 𝐄𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧
The history of the oil industry in Cuba is a long one - it dates all the way back to 1864 when the first well was discovered in Bacuranao, located in the Municipality of Habana del Este. However, it wasn't until 1892 that a small plant began operating in La Puntilla, located at the mouth of the Almendares River, a river that runs for 47 km in the western part of Cuba. This milestone marked the beginning of a revolution in both industry and transportation.
In 1928, the construction of the central highway in Cuba brought about extraordinary development in automotive transportation. However, the existing refinery could not produce all the necessary products, leading to the importation of petroleum products.
The substitution of wood and coal for petroleum-derived fuels in locomotives and general industries attracted two new oil companies to Cuba: Shell and Texas. These joined Standard Oil and Sinclair, which already shared the Cuban market. These companies established storage facilities and began importing the necessary products to serve their share of the growing market. By the early 1950s, petroleum product consumption in Cuba reached around two million tons, mainly marketed by the four US oil companies present in the country. However, following the triumph of the Cuban Revolution, Cuba consumed 3.2 million tons of petroleum products, mainly distributed by the aforementioned four US companies. During the 1960s, the nationalisation of these oil companies took place.
In September 1960, the first Soviet ship carrying 10,000 tons of crude oil for processing in Cuba arrived at the port of Casilda, in Las Villas. This event marked a new chapter in the history of the Cuban oil industry.
In the 1970s, sustained fuel consumption reached approximately eight million tons annually, leading to projections and investments in the petroleum sector. Significant agreements were established with the Soviet Union to carry out these investments. In the 1990s, the Cuban economy was affected by the collapse of the socialist bloc, requiring adjustments in fuel consumption. Crude oil and derivative imports were reduced, and the Cienfuegos Refinery began operating intermittently in the period from 1991 to 1995.
𝐓𝐡𝐞 𝐑𝐨𝐥𝐞 𝐨𝐟 𝐂𝐔𝐏𝐄𝐓
Unión Cuba-Petróleo (CUPET) has played a prominent role in the development and advancement of the oil industry in Cuba. Since its creation in 1992, CUPET has been responsible for all operations related to oil and gas in the country, including exploration, production, transportation, refining, marketing, and other associated services.
One of CUPET's main strengths has been its ability to establish strategic partnerships with foreign companies in the field of exploration and production. Despite unfavourable circumstances following the collapse of the socialist bloc, CUPET managed to forge alliances with companies from various countries in record time. These partnerships not only attracted significant investments but also allowed access to cutting-edge technologies, training, and best practices in organisation, quality, and management. The massive introduction of new technologies, such as horizontal drilling, has led to more than 90% of wells in Cuba being drilled using this technology, even when in other countries it is still in the experimental phase.
During the difficult Special Period, CUPET also played a crucial role by using Cuban oil in thermoelectric plants, cement factories, and other diverse uses. At some points, virtually all the fuel used for electricity generation in Cuba came from national oil. This approach ensured energy supply in times of scarcity and demonstrated the organisation's adaptability and resilience.
Another notable achievement of CUPET has been the utilisation of produced natural gas as an energy source. Since 1998, associated gas has been used in electricity generation, establishing stable, economical, and environmentally friendly electricity production. From the first plant in Varadero to combined cycles, electricity generation capacity from gas has increased considerably, reaching almost 500 MW. This focus on efficient and rational energy use has been an integral part of the Energy Revolution in Cuba.
𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐀𝐝𝐚𝐩𝐭𝐚𝐭𝐢𝐨𝐧
In the field of business reorganisation and continuous improvement, CUPET has implemented significant changes since 2002. Efforts have been made to improve operations and management in all companies under its jurisdiction, including its Central Office. This focus on continuous improvement has helped drive efficiency and quality in all areas of work.
Technological innovation is an integral part of CUPET's approach. Unlike many other industries, in this organisation, the adoption of new technologies and the pursuit of scientific excellence are daily tasks at all levels of the organisation. This has allowed CUPET to stay at the forefront of the oil industry, driving sustainable development and efficiency in all its operations.
With more than 20 thousand workers in 28 entities committed to its organisation, CUPET faces the challenge of reaching hundreds and thousands of customers, including distribution centres and electricity generation, with quality products. This organisational and technical effort is extraordinary and requires solid and efficient management. CUPET has demonstrated its ability to fulfil this responsibility, backed by the commitment of its workers and their dedication to the principles of the party, the people, and the revolution.
In summary, Unión Cuba-Petróleo represents a remarkable example of how an organisation can adapt and thrive amidst challenges and transformations.
