Venezuelan oil: the cherry on top
Experts see a more optimistic scenario due to oil reform and possible US investment. Photo: iStock
TL;DR
- President Trump aims to control Venezuelan oil resources, citing past removal of US companies' rights.
- Oil types are classified as light (high-value fuels) and heavy (asphalt, less valuable products).
- Crude is also classified as 'sweet' (low sulfur) or 'sour' (high sulfur).
- Light crudes are more expensive and require simpler refining; heavy crudes are cheaper but need sophisticated refining.
- US Gulf Coast refineries (Texas, Louisiana) have high-conversion capacity, favoring heavy crudes.
- US East Coast refineries have low-conversion capacity, suited for light crudes.
- The US produces light crude through fracking but lacks sufficient heavy crude for its Gulf Coast refineries.
- Venezuelan heavy crude is strategically important for US refining needs.