KEY POINTS
- About half of Venezuela’s oil output now goes to the US, Under Secretary Kyle Haustveit said.
- US refineries take more than 500,000 barrels a day, while the US ships over 100,000 bpd of naphtha to Venezuela.
- PDVSA expects crude output of 1.245 million bpd by end-August, with exports up 19.7 percent this year.
US refineries take more than 500,000 barrels a day, while the US ships over 100,000 bpd of naphtha to Venezuela.
Speaking at an event in Houston, Haustveit said US refineries built specifically for Venezuelan crude have taken more than 500,000 barrels a day in recent months, while Venezuela pumps around 1.25 million barrels a day.
A two-way crude and naphtha trade
According to Haustveit, the trade runs in both directions. Moreover, he said the United States ships more than 100,000 barrels a day of naphtha to Venezuela, where operators blend it with heavier crude to keep production flowing.
Still, he cast the relationship in glowing terms. He called it a beautiful energy partnership that creates real value on both sides, and he said the short shipping distance and open market made it one of the cleanest arrangements he could imagine. Furthermore, he highlighted progress in the country and pledged that the United States would respect the sanctity of contracts.
Venezuela pushes to lift output
Venezuela, for its part, leaned into the demand for its heavy grades. Jovanny Martinez, a vice president at state oil company PDVSA, said the United States needs those grades to feed its economy, and he forecast crude output of 1.245 million barrels a day by the end of August. In addition, he said exports had risen 19.7 percent this year, and he pushed to develop diluents at home to thin the country’s heaviest crude.
Consequently, Martinez pressed for more investment across the sector. He said Venezuela should modernise, expand and improve its refineries, noting that fuel output had climbed 12.9 percent this year and lifted domestic supply by 5.4 percent. He described the drive as an energy reform now chasing real development results. However, he flagged a persistent gap, adding that the country still runs a natural gas deficit of 500 million cubic feet a day.
