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re: Rehabbing Venezuela to Produce Oil
Posted on 2/20/26 at 7:49 am to Sweep Da Leg
Posted on 2/20/26 at 7:49 am to Sweep Da Leg
Oh, ok.
I will say that Chevron is likely in the best position with established streams to their refiners and others in the Gulf Coast. They have been able to ramp up their avenues to existing outlets better than trafi or vitol.
That said the trade houses are putting out a lot of info to try and work up demand. I don't know how much you want to believe when they say one thing and do another.
quote:
Source, Chevron executive acquaintance.
I will say that Chevron is likely in the best position with established streams to their refiners and others in the Gulf Coast. They have been able to ramp up their avenues to existing outlets better than trafi or vitol.
That said the trade houses are putting out a lot of info to try and work up demand. I don't know how much you want to believe when they say one thing and do another.
This post was edited on 2/20/26 at 7:55 am
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Posted on 2/20/26 at 7:53 am to No Colors
quote:
Let me help you: We gave her two choices: Suddenly become very US friendly. Kick out the Chinese, Russians, and Cubans. Allow us to get your economy moving again. Swap oil for food and other things your people need. Make some money for yourself. Stay in power. Or: Take a hooded plane ride to the Brooklyn detention center like your old boss. She chose the first option. It's not hard. It's really brilliant. A nod to the Trump Administration for this one. Beats the shite out of W's version of regime change. Also showing the world exactly what we're gonna do in Cuba as well.
Exactly. Think of how much deep-black tech we have available. We only utilized a TINY fraction of it for this operation, as it’s clear that we have literal reverse-engineered alien technology at our disposal.
Our flex in Venezuela was geopolitical genius, and gives us a lot more breathing room in the board moving forward.
Do not frick with the USA.
Posted on 2/20/26 at 9:11 am to fightin tigers
quote:
The refineries that could take Ven Crude may not be in the position to do so any longer, at least at the rates they once could.
None of the 11 were importing Ven crude until the market for petcoke was developed in the early 80's. Citgo Lake Chuck alone was receiving 2 Ven shuttle tankers per week of 10-17 API crude if not 3, over 400,000 barrels per ship. PDVSA had no ownership interest in Citgo back then. Conoco Lake Chuck was getting over 400,000 barrels per week. Also, Mobil Chalmette
It was years later before PDVSA bought 50% each of Citgo and Mobil's Chalmette refinery to partner and secure a guaranteed market. Hess in St. Croix was an importer of ME crude until PDVSA bought 50% to become Hovensa. It's crude capacity was lowered to convert on crude unit into a Visbreaker. That worked well until Chavez took over and denied its share of maintenance for Hovensa.
The OLD Shell refinery in Curacao just dumped its residual to form an asphalt lake by building a dike in the harbor.
Lago Oil and Transport, owned by Exxon, operated the Aruba refinery on lighter Ven crudes. After it was shutdown it took years to navigate a treaty involving Ven having to approve its demolition. After demolition began, Coastal bought it on the cheap. It operated under Coastal until Valero bought Coastal. Valero management has stated to me that Coastal was really bad on spending money for maintenance.
Posted on 2/20/26 at 10:22 am to CitizenK
All of those are true. And reflective of a market 30-40 years ago.
New reliable heavy streams have come online that are extremely competitive. Ven Crude will have a market share but the "premium" they thought they could get is just not there. For reference they have lowered their price more than $3/b off benchmark in a month and are not moving what they have available. (Granted supply is artificially increased due to reserves being moved)
New reliable heavy streams have come online that are extremely competitive. Ven Crude will have a market share but the "premium" they thought they could get is just not there. For reference they have lowered their price more than $3/b off benchmark in a month and are not moving what they have available. (Granted supply is artificially increased due to reserves being moved)
Posted on 2/20/26 at 11:56 am to fightin tigers
Also, trading companies will just make crude oil cocktails with it no different than what Kinder Morgan, et al do, and blend to specs required by refiners they sell to.
We already make crude cocktails with Mars "heavy" which is on the heavy side of intermediate. Eagle Ford blended with it to be comparable to Louisiana Light Sour spec
We already make crude cocktails with Mars "heavy" which is on the heavy side of intermediate. Eagle Ford blended with it to be comparable to Louisiana Light Sour spec
Posted on 2/20/26 at 12:05 pm to Warfox
quote:
Our flex in Venezuela was geopolitical genius, and gives us a lot more breathing room in the board moving forward.
China was trying to rival the US with petcoke production thanks to very heavy crude from Venezuela with high asphaltene content. When all of Venezuela's upgraders were operating, Ven was a distant 2nd to the US in petcoke production. China invested a lot of money to refine very heavy crude. They will now have to settle for Canada's pipeline of 20 API dilbit crude, a blend of very heavy produced crude and syncrude. No more 10 API Boscan for China.
Posted on 2/20/26 at 12:23 pm to CitizenK
I think that is some of their plan moving the barrels into LOOP. Although now they are a bit stuck since they appear to be having trouble moving them out of LOOP. 
Posted on 2/20/26 at 12:28 pm to TheDrunkenTigah
quote:
You really need to distill this down to a manageable fraction.
Ehh..while some of it can be tough to understand for non-downstream or very technical folks, I prefer more info from an article like this than just sound bite politician type stuff.
Posted on 2/20/26 at 12:30 pm to baldona
quote:
My few O&G friends are basically saying the biggest winner is Guyana next door as their facilities became safer overnight and are already up and running normally.
Yep.
Venezuela communist dictator we removed kept everyone on edge threatening to take over the Guyana oilfields, arguing much of it was on land that should have belonged to Venezuela. Exxon and Chevron are some big winners in this with Guyana.
Posted on 2/20/26 at 12:32 pm to fightin tigers
quote:
Should be noted the biggest thing working again Venezuela right now is that the demand for their oil isn't there and their price is too high.
Also…while everyone keeps talking about them having the worlds largest reserves, what percentage of those reserve are economically recoverable and profitable at $65/bbl, $85/bbl, $155/bbl?
AND, are we certain they haven’t been cooking their books?
Posted on 2/20/26 at 2:03 pm to CitizenK
Thanks CitizenK. Good summary.
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