Released February 06, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--China was the top importer of crude oil exports from Venezuela in January, a month that also saw strong production from one of the founding members of the Organization of the Petroleum Exporting Countries (OPEC), data show.
Economists at OPEC said in their January market report that secondary sources showed Venezuela produced 886,000 barrels of oil per day (BBL/d) in December, a slight improvement over November levels, but still below an October that flirted with 1 million BBL/d.
OPEC economists put Venezuelan production at 856,000 BBL/d on average for 2024, a 14% increase over 2023 levels.
U.S. supermajor Chevron Corporation (NYSE:CVX) (San Ramon, California), which works in Venezuela through a joint venture with state-run Petróleos de Venezuela (PDVSA) (Caracas, Venezuela), exported 294,000 BBL/d in January, according to Reuters, which cited shipping data and PDVSA reports.
That's the highest since Chevron was first granted an export license in 2023, beating the previous record set in October at 280,000 BBL/d. Venezuela's main crude oil grade, Merey, is a heavy, sour type needed in many refineries across the U.S., which is the destination for all of Chevron's exports.
Former U.S. President Joe Biden opted for a case-by-case scenario for licenses for Venezuelan crude oil exports during his tenure, after the OPEC founder was sanctioned heavily for elections that left President Nicolas Maduro in power despite evidence to the contrary.
The U.S. government shows it imported 307,000 BBL/d of Venezuelan crude oil on average over the four-week period ending January 27. But Reuters data show it was China that was the top destination for Venezuelan crude last month, with the 442,000 BBL/d on average marking a 21% increase over December levels.
Russia is typically the top supplier of crude oil to China. Exports to Europe doubled, meanwhile, to about 60,000 BBL/d in December, data show.
Venezuela relies heavily on hydroelectric power to keep the lights on, leaving room for crude oil exports. The thick nature of Venezuelan crude oil, however, means it needs a diluent to help with flows, a product that's sometimes supplied by nations such as Iran and Russia.
That puts Venezuela squarely in the center of the Western sanctions web, and immigration policies from second-term U.S. President Donald Trump could complicate the relationship even further.
During his first few days back in the White House, Trump said the U.S. didn't need Venezuelan oil. At about 13.2 million BBL/d, the U.S. is the world leader in crude oil production, besting Russia and Saudi Arabia by about 4 million BBL/d.
But the U.S. doesn't produce the heavy type of crude oil that many of its refineries are tooled to process, leaving it dependent on producers from Ecuador to Canada who do yield heavy crude.
A potential trade war in North America could upend the downstream sector in the U.S. After brokering a free trade deal with Canada and Mexico during his first term, Trump in January vowed to slap tariffs on both countries to bolster border security.
He backed down on his threat earlier this week, however, pausing tariffs for a month after hearing pledges for border protection. Both processing heavy oil, Canada and Mexico are the No. 1 and No. 2 crude oil exporters to the U.S., respectively.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Economists at OPEC said in their January market report that secondary sources showed Venezuela produced 886,000 barrels of oil per day (BBL/d) in December, a slight improvement over November levels, but still below an October that flirted with 1 million BBL/d.
OPEC economists put Venezuelan production at 856,000 BBL/d on average for 2024, a 14% increase over 2023 levels.
U.S. supermajor Chevron Corporation (NYSE:CVX) (San Ramon, California), which works in Venezuela through a joint venture with state-run Petróleos de Venezuela (PDVSA) (Caracas, Venezuela), exported 294,000 BBL/d in January, according to Reuters, which cited shipping data and PDVSA reports.
That's the highest since Chevron was first granted an export license in 2023, beating the previous record set in October at 280,000 BBL/d. Venezuela's main crude oil grade, Merey, is a heavy, sour type needed in many refineries across the U.S., which is the destination for all of Chevron's exports.
Former U.S. President Joe Biden opted for a case-by-case scenario for licenses for Venezuelan crude oil exports during his tenure, after the OPEC founder was sanctioned heavily for elections that left President Nicolas Maduro in power despite evidence to the contrary.
The U.S. government shows it imported 307,000 BBL/d of Venezuelan crude oil on average over the four-week period ending January 27. But Reuters data show it was China that was the top destination for Venezuelan crude last month, with the 442,000 BBL/d on average marking a 21% increase over December levels.
Russia is typically the top supplier of crude oil to China. Exports to Europe doubled, meanwhile, to about 60,000 BBL/d in December, data show.
Venezuela relies heavily on hydroelectric power to keep the lights on, leaving room for crude oil exports. The thick nature of Venezuelan crude oil, however, means it needs a diluent to help with flows, a product that's sometimes supplied by nations such as Iran and Russia.
That puts Venezuela squarely in the center of the Western sanctions web, and immigration policies from second-term U.S. President Donald Trump could complicate the relationship even further.
During his first few days back in the White House, Trump said the U.S. didn't need Venezuelan oil. At about 13.2 million BBL/d, the U.S. is the world leader in crude oil production, besting Russia and Saudi Arabia by about 4 million BBL/d.
But the U.S. doesn't produce the heavy type of crude oil that many of its refineries are tooled to process, leaving it dependent on producers from Ecuador to Canada who do yield heavy crude.
A potential trade war in North America could upend the downstream sector in the U.S. After brokering a free trade deal with Canada and Mexico during his first term, Trump in January vowed to slap tariffs on both countries to bolster border security.
He backed down on his threat earlier this week, however, pausing tariffs for a month after hearing pledges for border protection. Both processing heavy oil, Canada and Mexico are the No. 1 and No. 2 crude oil exporters to the U.S., respectively.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
