US Gulf Refineries Reap Benefits from Venezuela Oil Boost

Venezuela's oil output is on the rise, and the US is benefiting from it. According to Under Secretary of Energy Kyle Haustveit, more than 500,000 barrels per day (bpd) of Venezuelan crude are being sent to Gulf Coast refineries, which were built specifically for this type of heavy, sour crude.

This represents about half of Venezuela's total oil output, which is around 1.25 million bpd. Haustveit described the arrangement as 'a beautiful energy partnership', saying that it creates real value on both sides of the trade.

The US has been helping to scale up production in Venezuela by sending naphtha to be blended with heavier crude. Venezuelan officials hope to increase output further, with Jovanny Martinez, a vice president at state oil company PDVSA, predicting that crude output will reach 1.245 million bpd by the end of August.

The increased oil production is part of a larger effort to develop Venezuela's energy sector. The country has been producing about 1 percent of global supply, despite holding an estimated 303 billion barrels of proven reserves - around 17 percent of the world total.