Havana’s Energy Woes Deepen Despite Boosted Venezuelan Oil Supply
Cuba is struggling with ongoing energy shortages despite triple-digit increases in Venezuelan oil shipments. This dire situation, highlighted by recent Jet A-1 fuel shortages that grounded civil aviation, underscores the fragility of Cuba’s energy infrastructure.
Earlier this month, Venezuela sent 38,000 barrels per day to the island nation, a 35% increase from October. This surge in Venezuelan crude oil comes as the US faces uncertainty over oil policy under the new Biden administration. While Reuters reports these shipments are the highest since 2020, they haven’t been enough to avert the country’s energy woes.
"Venezuela sent turbo fuel to the island from 2004 to 2015 to mix with national production and exports," explains Jorge Piñón, an expert from the University of Texas. This arrangement allowed Cuba to become a kerosene exporter, even producing a surplus of gasoline and turbo fuel.
However, this flow from Venezuela was disrupted after 2015, and Cuban oil production plummeted. Data from the National Office of Statistics and Information (Onei) reveals a stark contrast. In 2015, Cuba produced 5,308 barrels per day of turbo fuel, with an annual output of 244,300 tons.
The sharp decline in Cuban production has led to a significant deficit. In 2022, only 33,700 tons were produced, while demand reached 151,100 tons, leaving a shortfall of 117,400 tons. While Cuba has received some support from Russia and Mexico, these lifesaving supplies haven’t been enough to stabilize its energy sector.
Despite the increased Venezuelan oil flow, Cubans continue to grapple with power outages. This week alone, estimated deficits ranged up to 1,596 megawatts, forcing the government to ration energy and rely on emergency measures. As Cuban thermoelectric plants struggle to operate due to fuel shortages and frequent breakdowns, the Electricity Union has resorted to bringing online Turkish-owned Karpowerships to provide relief.
In this context, the Australian oil company Melbana Energy announced it will be exporting Cuban crude oil for the first time next year. The production, estimated at 46 million barrels, comes from Block 9 in Matanzas and could bring much-needed revenue and energy independence to Cuba. But until these new resources reach the marketplace, Cubans will likely face persistent challenges with energy access.
The situation highlights the lengths to which Cuba is going to secure crucial fuel supplies while facing pressure from prevalent internal problems. This situation extends beyond Cuba’s predicament. It reveals the complex web of international energy politics, the fluctuating dynamics of oil production, and the continuing struggles faced by nations grappling with energy scarcity.
