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Cuba is moving toward development of its offshore oil resources. While the country has proven oil reserves of just 0.1 billion barrels, the U.S. Geological Survey (USGS) estimates that offshore reserves in the North Cuba Basin could contain an additional 4.6 billion barrels of undiscovered technically recoverable crude oil. The Spanish oil company Repsol, in a consortium with Norway's Statoil and India's Oil and Natural Gas Corporation, is expected to begin offshore exploratory drilling in late 2011, and a number of other companies are considering exploratory drilling. At present, Cuba has six offshore projects with foreign oil companies. While it is unclear whether offshore oil production could result in Cuba becoming a net oil exporter, it could reduce Cuba's current dependence on Venezuela for oil supplies. Some Members of Congress and others have expressed concern about Cuba's development of its deepwater petroleum reserves so close to the U.S. They are concerned about oil spill risks and about the status of disaster preparedness and coordination with the U.S. in the event of an oil spill. Dealing with these challenges is made more difficult because of the longstanding poor state of relations between Cuba and the U.S. Contents of this report: Introduction; Cuba's Oil Sector; Implications and Considerations for U.S. Policy; Legislative Initiatives; Conclusion. Figures. This is a print on demand report.