Chevron, an American multinational energy company, is currently importing around 250,000 barrels of Venezuelan crude oil into the United States daily, as reported by the BBC.
Recent reports indicate that Venezuela’s monthly crude oil exports have surpassed 1 million barrels per day. Andy Walz, Chevron’s president of downstream, midstream, and chemicals, confirmed to the BBC that the company is importing 250,000 barrels of Venezuelan crude oil daily. The report highlighted the crude oil tanker Minerva Gloria, which recently arrived at a port in Mississippi with 400,000 barrels of oil—an amount that would have been “impossible” to bring into the U.S. just six months ago.
The Venezuelan regime, currently led by “acting president” Delcy Rodriguez, started cooperating with the U.S. following a law enforcement operation in Caracas on January 3, authorized by President Trump, which resulted in the arrest of Nicolás Maduro.
Venezuela holds the world’s largest proven oil reserves, yet more than 20 years of ineffective socialist governance have severely impacted the oil industry, reducing its production capabilities. Since Maduro’s arrest, Venezuelan socialists have sought American aid and investment to revitalize an industry that once produced over 3 million barrels a day.
The BBC noted that due to the conflict in Iran and the ensuing blockade of the Strait of Hormuz, companies like Chevron are now importing Venezuelan oil through shipping routes.
Tim Potter, director of Chevron’s refinery in Pascagoula, Mississippi, remarked to the BBC, “This is a huge problem not just for Chevron, but for the entire Gulf region.” He added, “That’s a huge motivator for us. This refinery is designed to process heavy oils like those from Venezuela, and we invested in it.”
Venezuela’s ultra-heavy crude oil is known for its richness and high sulfur content, necessitating additional processing to produce various petroleum products. A report in January revealed that this kind of heavy crude is “exactly” what some U.S. refineries are equipped to process.
The BBC shared that there are 132 refineries in the U.S. that handle blended crude oils, with nearly 70% of the country’s refining capacity operating most efficiently on heavy crudes. Since U.S. imports from the Middle East are minimal, increasing Venezuelan imports could enhance availability and potentially lower gasoline prices, the report suggested.
Walz mentioned, “We think we can increase this by another 50%, so Chevron’s share in Venezuela alone could be between 350,000 and 400,000 barrels a day.”
Citing the ongoing Iran war, Chevron officials told the BBC that they believe importing Venezuelan oil will ultimately benefit American consumers, although they acknowledged that “the Iran war is currently masking that benefit.” Walz stated, “Once things get back to normal, the additional supply from Venezuela can lead to lower prices for Americans, but right now there’s no impact.”
Potter explained, “We’re able to source crude oil here because it’s relatively local, but the overall price is rising based on the global market.”
Currently, Chevron is the only U.S. company capable of extracting and processing Venezuelan crude oil directly for American consumers. In recent weeks, the U.S. has granted general licenses to a few companies, enabling them to purchase Venezuelan oil directly from state-owned PDVSA under strict oversight, adhering to existing oil sanctions. Proceeds from these sales will remain under U.S. control via Treasury-controlled bank accounts.
Reuters also reported that India’s Reliance Industries, one of the few companies with such a general license, has begun loading a cargo of 2 million barrels of Venezuelan crude directly from PDVSA at the Jose terminal in Venezuela.
