Why access to Venezuela’s ‘heavy’ oil is ‘tremendous’ news for US refiners
Al Jazeera • • general
Key Points:
- Venezuela holds the world’s largest proven oil reserves, primarily consisting of heavy, sour crude from the Orinoco Oil Belt, which requires specialized extraction and refining due to its dense, tar-like consistency.
- The country’s oil production has sharply declined to about 860,000 barrels per day, far below its 1970s peak, with an estimated $110 billion needed to restore output to previous levels, hindered by infrastructure degradation and sanctions.
- US oil companies face significant risks and uncertainties in investing in Venezuela due to political instability, past expropriations, and a global oil surplus; ExxonMobil has labeled Venezuela “uninvestable” under current conditions.
- Despite this, US refineries stand to benefit substantially from Venezuelan heavy
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