Oil, Cuba & Your Wallet
Trump is looking at changes to Cuba policy, and oil is a key reason behind the shift.
The Big Story
President Trump has signaled possible changes to U.S. restrictions tied to Cuba and Venezuelan oil. Currently, the U.S. embargo limits trade with Cuba, and sanctions on Venezuela affect oil shipments that Cuba depends on for fuel and electricity.
The Two Spins
From the Left
Easing restrictions increase oil flow and help stabilize supply and reduce price pressure.
More consistent supply reduces volatility, especially in places where shortages disrupt daily life.
From the Right
Adjusting restrictions expands global oil supply and eases market pressure.
Increasing supply helps stabilize prices, but shifting policy creates uncertainty for energy markets.
What This Means for Us
Oil is traded globally, so supply changes affect all countries.
If more oil enters the market, it can help stabilize gas, airfare, and delivery costs. If supply stays limited, higher fuel costs can continue raising everyday expenses like groceries and gas prices.
How They Make Money
Kinder Morgan
Kinder Morgan doesn’t drill oil; it operates over 80,000 miles of pipelines and charges every time fuel moves through its lines, like a toll road for energy.
In 2023, it generated about $15 billion in revenue, mostly from long-term contracts, so it gets paid as long as oil and gas keep flowing.
Takeaway
The real money often isn’t in the oil; it’s in controlling how it moves.
The Number That Stuck With Me
12
Some areas in Cuba have experienced blackouts lasting up to 12 hours a day during fuel shortages.