Venezuelan Crude Destined for U.S. Shores

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--A renewed license that allows Chevron (Houston, Texas) to export crude oil from Venezuela is showing up in the U.S. data, with import volumes of heavy crude destined for U.S. shores.

The U.S. Treasury Department's Office of Foreign Assets Contral (OFAC) in July issued limited approval for offtakes of petroleum products from Venezuela. The renewal followed a three-month pause due to tighter sanctions on the Latin American country, one of the founding members of the Organization of the Petroleum Exporting Countries.

Among the world leaders in crude oil production, much of the U.S. refining sector is tailored to process heavier crude oil grades from countries such as Canada and Venezuela, rather than the light, sweet crude found at home.

With its viscous bitumen, Canada is the top crude oil exporter to the U.S. economy by far. Canada over the seven-day period ending Aug. 15 delivered around 3.8 million barrels per day (BBL/d) to its southern neighbor, accounting for about 60% of total foreign deliveries.

Data from the U.S. Energy Information Administration, part of the U.S. Department of Energy, showed no Venezuelan crude arrived on U.S. shores last week, though some 65,000 BBL/d arrived during the prior week. Total deliveries were as high as 568,944 BBL/d on average in 2005.

Two tankers chartered by Chevron arrived in U.S. territorial waters last week, destined for Port Arthur, Texas and New Orleans, Louisiana, the Reuters news service reported, citing vessel-tracking data. Two others are close behind, the report added.

The renewal of shipments comes despite increased tensions between the United States and Venezuela. U.S. Attorney General Pam Bondi said last month that Maduro "will not escape justice" after the Trump administration increased its award for his arrest from $25 million to $50 million, accusing Venezuela's president of running drugs.

Early this week, the Associated Press, citing officials speaking on condition of anonymity, reported the USS Gravely, Jason Dunham and Sampson were headed to Venezuelan waters. U.S. President Donald Trump took to his social media outlet in late February to warn that the license for Chevron to continue operating in Venezuela was in jeopardy. Former President Joe Biden in 2022 authorized permits for Venezuelan exports through a venture between Chevron Corporation and state-owned Petróleos de Venezuela (PDVSA) (Caracas) after Venezuelan President Nicolas Maduro vowed to work with the opposition on democratic elections.

Elections last year, however, were not seen as fair as electoral evidence pointed to a loss for Maduro at the polls.

By March, the Trump administration had imposed a 25% tariff on customers purchasing Venezuelan crude oil or natural gas, suggesting it would also revoke export permits.

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