OTTAWA: Canadian heavy crude is pouring into Texas Gulf Coast refineries, topping U.S. imports of Venezuelan oil for the first time ever in a market billed as key to expanding oil sands production.
Imports of Canadian oil to the region averaged 463,000 barrels a day in January, the latest U.S. government data show. That compares with 455,000 b/d from Venezuela, long a dominant supplier to the refining hub.
It’s a major reversal that reflects a deepening humanitarian and economic crisis in the South American exporter and member of the Organization of Petroleum Exporting Countries. Venezuela’s production has languished owing to underinvestment and mismanagement at its state-run oil company, Petroleos de Venezuela SA.
“At a minimum, the demise of Venezuelan oil production presents the greatest opportunity in years for Canadian crude to expand its presence by winning low-hanging market share in the Gulf.”
Oil sands producers have sought a bigger slice of the key U.S. market for years, eager to deliver crude to big refineries operated by Exxon Mobil Corp. and Valero Energy Corp. that are geared to process the extra-thick oil.
