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Started By
Message
US not currently considering using Venezuelan oil in exchange to fill strategic reserve
Posted on 1/16/26 at 4:38 pm
Posted on 1/16/26 at 4:38 pm
quote:
HOUSTON/LONDON, Jan 16 (Reuters) - The U.S. government is not currently considering using Venezuelan oil in an exchange with U.S. oil companies to refill the country's Strategic Petroleum Reserve, the Department of Energy said on Friday.
Earlier on Friday, Reuters reported that two sources said the Trump administration was exploring a plan that would deliver Venezuelan oil to U.S. refineries in exchange for U.S.-produced crude. The U.S. crude would be used to help fill the SPR, the world's largest emergency oil stockpile, which is held in a series of underground caverns on the Texas and Louisiana coasts.
"This is false," a U.S. Energy Department spokesperson said. "We are not currently considering using Venezuelan oil to refill the SPR."
There is also no exchange planned currently, the spokesperson said.
Venezuelan crude oil is largely denser and higher in sulfur than the crude oil in the SPR, which has long been filled with crude produced in the United States.
The two sources said the Trump administration is looking to move the Venezuelan crude into storage tanks at the Louisiana Offshore Oil Port from where it can be shipped to refineries.
quote:
Trump pledged on the first day of his second term to fill up the emergency reserve as part of a policy to support oil and gas.
The SPR currently holds about 414 million barrels in underground salt caverns, about 60% of its total capacity. A lack of funds and ongoing maintenance at the reserve have so far limited the administration's plan to refill crude.
U.S. Energy Secretary Chris Wright has said the Trump administration was exploring alternative approaches to replenish the reserve without direct government spending, including potential deals with private companies to supply oil.
A major tax and spending bill last year included about $171 million for SPR oil purchases and maintenance, much less than the $1.3 billion that had originally been in the legislation.
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Posted on 1/16/26 at 4:41 pm to ragincajun03
quote:
Venezuelan crude into storage tanks at the Louisiana Offshore Oil Port from where it can be shipped to refineries
Well this is certainly a plan
Posted on 1/16/26 at 5:24 pm to ragincajun03
It's garbage..heavy crude not easily refined.
Posted on 1/16/26 at 6:15 pm to SalE
quote:
It's garbage..heavy crude not easily refined.
Hey, moron. And I really mean that.
Venezuelan crude is EXACTLY what US refineries are deigned for.
Stupendous ignorance.
Posted on 1/16/26 at 6:46 pm to ragincajun03
I posted idea after they napped Maduro
Posted on 1/16/26 at 6:49 pm to RanchoLaPuerto
quote:It's more nuanced than that
Venezuelan crude is EXACTLY what US refineries are deigned for.
Posted on 1/16/26 at 6:57 pm to castorinho
quote:
It's more nuanced than that
Nuance away.
Posted on 1/16/26 at 7:14 pm to SalE
quote:
It's garbage..heavy crude not easily refined.
This is why. While they have a ton of oil, it is shitty oil. Valero used to buy it for 25 cents on the dollar bc it is so difficult to refine and the yield per barrel is lower than lighter crude. Not all refineries can refine their oil so we would never put it in our SOR. We will still make a killing on it, just not rely on it.
Posted on 1/16/26 at 7:30 pm to ragincajun03
quote:
US not currently considering using Venezuelan oil in exchange to fill strategic reserve
Because Venezuelan oil IS the strategic reserve now.
Posted on 1/16/26 at 7:30 pm to RanchoLaPuerto
quote:
Nuance away.
You said
quote:
Venezuelan crude is EXACTLY what US refineries are deigned for.
That's not a true statement. Many older refineries are set up for sweet crude from the Gulf or WTI.
Refineries that have had upgrades and expansions are set up to run sour crudes, but unlike sweet crudes, sour can vary wildly and have operational impacts on processing units depending on the amount of BS&W ,asphaltenes, light ends, etc. Sour crude from Venezuela, Mayan crude, Russian crudes are much, much lower grade crudes than Arab medium (the gold standard of sour crudes) and often require blending or slipstreaming. I would bet only a handful of refineries are set up to adequately process 100% straight Venezuelan crude with no fouling issues long term.
Posted on 1/16/26 at 7:40 pm to RanchoLaPuerto
quote:Some. Not all.
Venezuelan crude is EXACTLY what US refineries are deigned for.
And they can process Canadian crudes instead of VZ. Infrastructure is much better and more stable.
And you have a typo in your post, moron.
Posted on 1/16/26 at 8:07 pm to TDFreak
quote:
And you have a typo in your post, moron.
This was a test. You passed.
Posted on 1/16/26 at 8:09 pm to Cuz413
quote:
I would bet only a handful of refineries are set up to adequately process 100% straight Venezuelan crude with no fouling issues long term
And how many of those stayed current on keeping their capacity.
The American market is rejecting VZ crude right now. Clear to say someone overestimated the market.
Posted on 1/16/26 at 8:14 pm to RanchoLaPuerto
quote:
Good nuance.
People like you are the worst. Confidently stupid. You can't even argue your point.
Posted on 1/17/26 at 1:46 am to OweO
quote:
People like you are the worst. Confidently stupid. You can't even argue your point.
Yeah. That’s it.
Posted on 1/17/26 at 7:27 am to fightin tigers
quote:
And how many of those stayed current on keeping their capacity.
Best guess Motiva Port Arthur and Exxon Baytown as they've each had major expansions in the last 15 years. Maybe Marathon Garyville after GME.
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