Venezuela Surpasses Mexico as No. 2 U.S. Crude Supplier
MONTREAL (Oil Monster): Venezuela has surpassed Mexico to become the second-largest source of crude oil for U.S. refiners, amid restricted supplies caused by ongoing disruptions in the Middle East region. U.S. refiners imported an average of 743,000 barrels per day (bpd) of Venezuelan crude during the week ended August 7, according to federal data.
What Readers Should Know
- Venezuela became the second-largest crude oil supplier to U.S. refiners.
- U.S. refiners imported an average of 743,000 bpd from Venezuela during the week ended August 7.
- Mexico supplied about 303,000 bpd during the same period.
- The shift comes amid delays and uncertainty affecting major Middle Eastern suppliers.
- Venezuela’s refineries were reported operational as of August 14.
- Rebuilding the country’s energy industry will require major investment and infrastructure upgrades.
Venezuela Moves Ahead of Mexico in U.S. Supply
Mexico supplied about 303,000 bpd during the same period. The shift highlights the growing importance of Western Hemisphere oil producers as shipments from major Middle Eastern suppliers face delays and uncertainty.
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Venezuela’s Refineries Remain Operational
Venezuela’s energy industry has remained operational despite severe earthquakes in June. All of the country’s refineries were reported operational as of August 14, despite some areas still recovering from the disaster.
Gas Reserves Add to Venezuela’s Energy Potential
Venezuela is estimated to hold about 197 trillion cubic feet of gas reserves, much of it linked to oil fields. Recently, BP reached agreements to develop the Loran gas field, which is estimated to contain around 4 trillion cubic feet of recoverable gas.
Energy Infrastructure Still Requires Investment
However, rebuilding the energy industry will require major investment and infrastructure upgrades. Under-investment and poor management over the past several years have resulted in significant deterioration of infrastructure in the country.
Frequently Asked Questions
What position does Venezuela hold among U.S. crude suppliers?
Venezuela is the second-largest source of crude oil for U.S. refiners.
How much Venezuelan crude did U.S. refiners import?
U.S. refiners imported an average of 743,000 bpd during the week ended August 7.
How much crude did Mexico supply during the same period?
Mexico supplied about 303,000 bpd.
Were Venezuela’s refineries operational?
All of Venezuela’s refineries were reported operational as of August 14.
What is estimated to be required to rebuild Venezuela’s energy industry?
Major investment and infrastructure upgrades will be required.