While most of the discussion about Venezuela involves crude production, it’s important to know that the country was also once a major refiner before it began a decade-long downturn. Today, we look at the history of Venezuela’s refining sector and the prospects for a turnaround.
One of the biggest questions surrounding Venezuela centers on its now-moribund oil sector, which has suffered from decades of neglect. It’s widely understood that a recovery will take time, but there are some concrete steps that could boost production in the short, medium and long term.
The evolving situation in Venezuela is rife with uncertainty. But as the outlook for Venezuelan crude oil improves, there are significant market issues at play as well, including the potential for renewed competition with Canadian heavy crudes along the U.S. Gulf Coast.
The news out of Venezuela has commanded the world’s attention since early January, with the country’s highly prized heavy crude oil caught in a geopolitical tug of war. In today’s RBN blog, we’ll lay out where Venezuela’s crude oil is produced and how it differs from grades elsewhere.
Venezuela took center stage last weekend when President Trump removed and arrested President Nicolás Maduro, putting a spotlight on the country’s oil resources and production. Today we take a deep dive into how we think the upheaval could reshape crude oil flows, price differentials, refining slates and export economics.
Exports of Venezuelan crude to the U.S. have moved lower in recent months, a trend that seems likely to continue with the May 27 expiration of Chevron’s permit to operate there. But while a limited extension of that permit appears likely, if not yet official, the development adds new challenges for Gulf Coast refiners that process heavy crude. In today’s RBN blog, we’ll update the situation in Venezuela, assess what it means for Chevron, and discuss the outlook for the heavy crude-capable Gulf Coast refiners.
