And the world's largest oil reserves are finally opening up.
- Venezuela holds 297 billion barrels...world's largest claimed proven reserves
- Repsol targeting 50% production increase within 12 months
- Chevron signed separate Venezuela expansion deals this same week
- Venezuelan output already up to 1.1M bpd from 942K in February
- Heavy crude perfectly matched to Gulf Coast refinery infrastructure
Maduro is gone. The US removed him, took him to trial, and selectively lifted sanctions. Now every major with a pulse is racing to get into Venezuela before the next guy does.
Repsol has been operating there since 1993 and just regained full control of their joint venture. Chevron signed expansion deals days ago. Energy Secretary Chris Wright said Venezuelan production could grow 30-40% by end of 2026...and called it "a big deal."
Here's what nobody is explaining to the people who actually work in energy.
The Oil Gulf Coast Refineries Were Built For
Venezuelan crude is heavy and sour. Many Gulf Coast refineries in Beaumont, Port Arthur, and Lake Charles were designed to process exactly this grade of oil. When Venezuelan production collapsed under Maduro, those refineries had to scramble...importing heavy crude from Canada and the Middle East at premium prices to replace what used to come from the closest major reserve base to US shores.
That mismatch has been bleeding the Gulf Coast refining sector for two decades.
What The Gulf Coast Hasn't Had In 20 Years
Venezuelan production coming back online is the quiet story nobody in the oilfield is talking about.
It means more heavy crude hitting Gulf Coast refineries. More refinery throughput. More demand for the entire downstream supply chain. And American companies are already in the room...this isn't Europe locking us out, this is a global race to resurrect the world's largest reserve base right as Hormuz is closed and every barrel on earth matters more than it did six months ago.
The timing couldn't be more significant. The world needed more oil yesterday. Venezuela just started saying yes.
How many of you have run heavy crude jobs on the Gulf Coast...what's feedstock availability looked like the last few years?