rapeseed oil refining production machine in venezuela

                                               
                                               
                                               
                                               
                                               
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  • Why do US refiners make more money processing Venezuela's oil?
  • Venezuela¡¯s oil is heavy, which means it requires more processing by refiners. But U.S. refiners have invested billions of dollars into processing heavy oil. This oil sells at a discount to lighter oil, and as a result refiners make more money processing this crude oil into finished products.
  • Which refiners rely on Venezuela?
  • Other refiners such as Chalmette, Saint Charles, and Texas City are highly dependent on Venezuela for more than 60% of their total imports. The average crude quality imported by the refiners running Venezuelan crudes involves a 21.8 degree API and 2.7% sulphur spec crude. Replacing such barrels will be a tall task.
  • Do Venezuelan refiners still take barrels?
  • Simply put, not only are there fewer counterparties taking Venezuelan barrels, but the refiners that continue to take barrels are typically buying at a smaller clip. The Venezuelans own CITGO Refining, which operates the Lake Charles and Corpus Christi refiners in the US Gulf and the Lemont refinery in the Midwest.
  • How does Venezuela's oil production decline affect US refiners?
  • This production decline has particularly impacted U.S. refiners. Venezuela¡¯s oil is heavy, which means it requires more processing by refiners. But U.S. refiners have invested billions of dollars into processing heavy oil.
  • Is Venezuela's crude oil production on a downtrend?
  • Venezuelan crude oil production has been on a downtrend for years. This is true across all crude grades, but from a composition standpoint, the heavies and extra heavies now make up over 71% of total Venezuelan crudes compared to sub 60% in 2013. In other words, the type of barrel produced is heavier than in the past.
  • Why is the Venezuelan oil industry on the brink of collapse?
  • Despite its advantageous resources, a combination of mismanagement, production crises, insufficient financial assets, and economic sanctions have put the Venezuelan oil industry ¨C along with the national economy ¨C on the brink of collapse.