Company confirms rising crude shipments from Venezuela as geopolitical tensions reshape energy flows and refinery demand
By yourNEWS Media Newsroom
Chevron is importing approximately 250,000 barrels of crude oil per day from Venezuela into the United States, according to reporting by the BBC and statements from company officials.
The increase comes as Venezuela’s overall crude exports have surpassed one million barrels per day in recent months, reflecting a shift in global energy supply dynamics. Andy Walz, Chevron’s president of downstream, midstream, and chemicals, confirmed the company’s import volume, while the BBC reported that the tanker Minerva Gloria recently delivered roughly 400,000 barrels of Venezuelan crude to the Mississippi Sound—an occurrence described as unlikely just months earlier.
The developments follow a January 3 U.S. law enforcement operation in Caracas authorized by Donald Trump, which resulted in the arrest of Venezuelan leader Nicolás Maduro. Since then, Venezuela’s government, now led by acting president Delcy Rodríguez, has begun cooperating with U.S. authorities and energy firms.
Venezuela holds the world’s largest proven oil reserves, though its production capacity has declined significantly over the past two decades. At its peak, the country produced more than 3 million barrels per day. Current efforts aim to rebuild output with support from foreign investment and technical assistance.
The BBC reported that Chevron and other companies are now importing Venezuelan crude “by the shipload,” in part due to disruptions linked to the Iran conflict and restrictions affecting the Strait of Hormuz. The waterway typically handles a significant share of global oil transport.
“It’s a big deal not only for Chevron but the entire Gulf region,” said Tim Potter, director of Chevron’s refinery in Pascagoula, Mississippi. He noted that the facility was designed to process heavy crude, such as that produced in Venezuela, and that the current supply creates operational incentives.
Venezuelan crude is classified as extra-heavy, meaning it is dense and high in sulfur content. It requires additional refining to produce fuels such as gasoline, diesel, and jet fuel. However, this type of crude aligns with the capabilities of many U.S. refineries. According to reporting cited by the BBC, approximately 70% of U.S. refining capacity is optimized for heavier crude blends.
The United States operates 132 refineries that process a mix of crude types. Imports from the Middle East account for about 8% of total U.S. oil imports, suggesting that increased Venezuelan supply could expand domestic availability.
Walz indicated Chevron could increase imports further, stating the company may raise volumes to between 350,000 and 400,000 barrels per day.
Company officials said the additional supply is expected to benefit consumers over time, though current pricing remains influenced by global market conditions tied to ongoing geopolitical tensions.
“While we’re able to still get crude available here to this refinery because of our relatively local supply, the overall pricing of that crude has gone up because it’s based off of world markets,” Potter said.
Chevron is currently the only U.S. company operating in Venezuela with the capability to extract and transport crude directly to American refineries. The U.S. government has issued limited general licenses to a small number of companies, allowing controlled purchases of Venezuelan oil from the state-owned company PDVSA under Treasury Department oversight.
Separately, Reuters reported that Reliance Industries has begun loading a 2-million-barrel shipment of Venezuelan crude at the José terminal in Anzoátegui, following approval under similar licensing arrangements.
Original article
Comments