Chevron Resumes Importing 250,000 Barrels of Venezuelan Crude Oil Daily to US Refinery

Chevron Corp has started importing 250,000 barrels of crude oil per day from Venezuela to its refinery in Pascagoula, Mississippi. The company received a license from the US Treasury Department's Office of Foreign Assets Control in May 2022, allowing it to maintain operations in the country. This follows a period of sanctions imposed by the US on Venezuela's oil sector starting in 2019.

The imports represent the first significant resumption of Venezuelan crude to US refineries since the sanctions were tightened. Chevron, one of the few US oil majors with a presence in Venezuela, operates under the terms of the license, which permits limited imports and production activities.

The Venezuelan government, led by President Nicolas Maduro, has faced economic challenges due to the sanctions, which aimed to pressure changes in governance.

sanctions on Venezuela's state-owned oil company PDVSA were enacted in 2019 amid political disputes, halting most direct oil trade between the two countries.

In 2022, the Biden administration issued general licenses to select US companies, including Chevron, to stabilize global energy supplies amid the Russia-Ukraine conflict. Chevron's operations in Venezuela date back decades, with the company holding concessions in the Orinoco Belt region.

The current imports are processed at Chevron's Pasadena refinery, which is configured to handle heavy Venezuelan crude grades like Merey.

This resumption affects global oil markets by increasing supply from a key producer, though volumes remain below pre-sanctions levels of over 1 million barrels per day to the US. Stakeholders include US energy consumers, who may see slight downward pressure on fuel prices, and Venezuelan workers employed by Chevron.

The US government has indicated that further authorizations depend on Venezuela's progress toward democratic elections scheduled for 2024.