Valero Energy Corporation made history by importing crude oil from Venezuela for the first time in four years following the recent easing of sanctions imposed on the country’s oil industry by the United States.
Valero Energy Imports Venezuelan Crude Oil for the First Time in 4 Years
As the largest fuel producer in the US, following Marathon Petroleum Corporation, Valero received 241,000 barrels of Boscán oil, similar to tar, according to data from the Customs office.
The oil was purchased from Chevron Corporation which holds the exclusive authorization to extract and export crude thanks to a temporary license issued by the Treasury Department in November.
Valero Energy: The Largest Fuel Producer in the US
Chevron has also been trading cargos with Phillips 66 and has been expanding its sales to other US customers. The company has been successful in increasing its daily production from 50,000 barrels per day at the end of November to close to 90,000.
With plans to take production to 180,000 barrels it is expected that there will be an influx of Venezuelan oil reaching the US surpassing shipments from the Persian Gulf, Kuwait and Libya combined. PDVSA’s heavy oil is an essential input for US refineries, which before the sanctions processed half a million barrels a day.
The increase in Venezuelan volumes could potentially displace supplies from Colombia and Ecuador, countries that increased their volumes in 2019 as a result of the US sanctions imposed on the Venezuelan regime and its oil industry.
About Valero Energy Corporation
Valero Energy Corporation a leading independent petroleum refining and marketing company based in San Antonio, Texas, has made its mark in the global energy industry. Established in 1980 the company has grown to become one of the largest refiners in the world with a presence in the United States, Canada and the Caribbean.
With a total throughput capacity of approximately 3 million barrels per day, Valero operates 15 petroleum refineries that are known for their expertise in transforming heavy, high sulfur crude oil into high value products. Its diverse and flexible product slate allows the company to quickly adapt to changing market conditions.
In addition to its refining operations, Valero boasts a vast network of retail gasoline stations that operate under the Valero, Diamond Shamrock and Beacon brands. The company is also a major player in the ethanol market with 13 ethanol plants located throughout the United States.
With a strong reputation for operational excellence and a commitment to responsible environmental practices, Valero Energy Corporation continues to play a significant role in the global energy industry.