Venezuela's oil, it's nasty...

[MiHale]

eppur_se_muova suggested I post this in this forum..

https://www.huffpost.com/entry/nasty-venezuelan-oil-trump_n_695edbc9e4b05f1e1aab74b1

Oil from Venezuela, which Trump keeps claiming is now under his control, is a heavy sludge-like product filled with hydrogen sulfide and a slew of toxic metals that can destroy a refinery if not first removed, industry experts said. It must be diluted with imported petroleum products before it is even fluid enough to move, and its corrosiveness is the reason that much of the country’s oil drilling equipment is in such a state of disrepair.

“That’s why the infrastructure has rotted away,” said Matt Randolph, an oil industry executive with decades of experience. “It’s extremely corrosive and all of the equipment needs constant maintenance and chemical treatment to keep it from degrading.”
The higher expense involved in processing Venezuelan oil, combined with current low oil prices globally and an uncertain oil demand in the future, means that the U.S. installation of a more cooperative ruler in that country may end up having no effect on what Americans pay for gasoline and heating oil.
An oil industry analyst, who spoke on condition of anonymity, said production could – with relatively little cost – ramp up from the current 1 million barrels a day being extracted in Venezuela by about 200,000 more barrels. Beyond that, though, will require massive new investments that might never pay off if oil prices remain low.

….more at link….

[wcmagumba]

1. I believe this to be true...I read that this oil is the same as oil imported from Canada...

Does the US import oil from Canada at the same time it (the US) exports millions of gallons of oil? I'm confused as to the actual facts...

[OnlinePoker]

2. The Gulf Coast refineries are mostly set up for refining the heavy crude like from Venezuela and Canada

It would cost hundreds of millions, if not billions to refit them to process the light crude that comes from the shale oil, so that gets exported to other refineries in the world that can do that.

[wcmagumba]

3. Thanks for the information, it seems that I read a couple of years ago that a pipeline was being built from CA to the US

to deliver this oil to the Gulf Coast Refineries...

[OnlinePoker]

4. I think that was the Keystone XL that got canceled by President Biden

I think Trump wants to revise it, though, but if he can get the oil from Venezuela, he'd probably choose that so he can get his hands on some of the profits from his intervention.