The Peter Zeihan Podcast Series

Cuba's Power Grid Fails, But an Opportunity Arises || Peter Zeihan

Oct 29, 2024

Cuba faces an energy crisis as its power grid collapses, largely due to outdated infrastructure and dwindling foreign support. The recent failures are exacerbated by Hurricane Oscar, highlighting a long-standing dependence on Soviet and Venezuelan fuel. Yet, amid these challenges, a unique opportunity for improved relations between the U.S. and Cuba could spark change. Exploring these political dynamics unveils potential pathways for collaboration and modernization that could reshape the island's future.

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Quick takeaways

Cuba's energy crisis stems from historical reliance on foreign fuel sources and lack of modernization, not merely external sanctions or socialism.

The current crisis offers a rare opportunity for U.S.-Cuba negotiations, enabling collaboration that could address labor shortages and provide essential support.

Deep dives

Cuba's Energy Crisis

Cuba is facing a significant energy crisis that has been exacerbated by historical factors and recent natural disasters. The country's power grid, already in disrepair, was unable to recover from a hurricane due to its outdated infrastructure and lack of maintenance over the past decades. Historically, Cuba relied heavily on support from the Soviet Union and, more recently, Venezuela, to sustain its energy needs, but this support has dwindled to alarming levels. As a result, the nation finds itself struggling to maintain basic functions, which highlights the deep-rooted systemic failures within its power generation and distribution systems.

Cuba's Energy Crisis and the Potential for U.S.-Cuba Relations

7min

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Cuba's power grid is collapsing. No, it's not because of US sanctions or socialism. This ongoing crisis can be blamed on Cuba's lack of investment into modernizing and its reliance on Soviet and Venezuelan fuel.

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