And yet, the Venezuelan oil reserves are not the type that are refined into gasoline and diesel, but the thick crude that is more suitable for asphalt, etc. This is why oil companies have been so hesitant to invest in heavy and ultra heavy Venezuelan oil. It is expensive to extract and takes more effort to refine it into gasoline. Much of it is in the form of tar sands deeply buried. The Trump administration has been misleading the American people about the potential results of controlling Venezuelan oil, promising that it would lower American gas prices, but even the most uninformed people know that oil prices are set on the global market and it would only lower prices in the US if it lowers prices globally.
In some ways, it makes sense, though, because American refineries are set up for heavy crude. Currently, the oil that is extracted in the US is mostly light crude, which is actually the good stuff for gasoline. So, rather than retrofitting our refineries to process light crude, we are exporting the light crude, the good stuff, and importing the heavy crude, which is more toxic and contributes more to climate change than light crude. It is dirty stuff that is full of heavy metals and other toxins. Objectively, it's a stupid move as a species to develop these oil reserves rather than put the effort and expense into renewables, which are on the rise. We see the Trump administration engaging in climate denialism to the point where it is actually reducing our renewable capabilities while the rest of the world surges forward. It is quite disappointing that we have fallen for this, as the global increase in temperature blows past tipping points. Even my 14 year old son recognizes that it's coming much sooner than anticipated and it is stealing his future. Is the additional money for billionaires really worth it?
I brought that up. "In some ways, it makes sense, though, because American refineries are set up for heavy crude."
Doesn't mean it's the right thing to do, especially when we purchasing their companies and the oil at discount rates with the threat of violence, only to process a product that is not in our best interest in the long run.
I'm not claiming it is. Those claims about the crude being somehow worth less simply aren't true tho. Sour crude yields more gasoline/barrel. It's worth *more*
It's just harder to refine. Colombia has the capacity too though. They draw from very similar, but much smaller reserves. It's why they're in on the deal.
I kind of want to look into why I've been seeing that claim so often over the last few days. I wonder if someone with a really big account explained it badly. I used to have to cover energy in Colombia here when I started out as a baby journo working as a stringer. I used to have to go to oil conferences all the time and listen to the worst people in the world drone on for hours about this stuff haha
My understanding is that heavy sour crude is worth more because the profit margin is higher, given that it's much cheaper, not because it's inherently better. I think the question we need to ask is who is it better/ more profitable for?
But, what do I know, I'm just a musician/immigration attorney. I have geology professor friend who might now.
Went down a rabbit hole on this last night and you're right. The added value usually comes from refiners who can handle it obtaining it slightly below standard barrel prices on the international market
And yet, the Venezuelan oil reserves are not the type that are refined into gasoline and diesel, but the thick crude that is more suitable for asphalt, etc. This is why oil companies have been so hesitant to invest in heavy and ultra heavy Venezuelan oil. It is expensive to extract and takes more effort to refine it into gasoline. Much of it is in the form of tar sands deeply buried. The Trump administration has been misleading the American people about the potential results of controlling Venezuelan oil, promising that it would lower American gas prices, but even the most uninformed people know that oil prices are set on the global market and it would only lower prices in the US if it lowers prices globally.
In some ways, it makes sense, though, because American refineries are set up for heavy crude. Currently, the oil that is extracted in the US is mostly light crude, which is actually the good stuff for gasoline. So, rather than retrofitting our refineries to process light crude, we are exporting the light crude, the good stuff, and importing the heavy crude, which is more toxic and contributes more to climate change than light crude. It is dirty stuff that is full of heavy metals and other toxins. Objectively, it's a stupid move as a species to develop these oil reserves rather than put the effort and expense into renewables, which are on the rise. We see the Trump administration engaging in climate denialism to the point where it is actually reducing our renewable capabilities while the rest of the world surges forward. It is quite disappointing that we have fallen for this, as the global increase in temperature blows past tipping points. Even my 14 year old son recognizes that it's coming much sooner than anticipated and it is stealing his future. Is the additional money for billionaires really worth it?
The US bought and refined 90% of Venezuelan crude for decades. Refining capacity is not at all the issue here
I brought that up. "In some ways, it makes sense, though, because American refineries are set up for heavy crude."
Doesn't mean it's the right thing to do, especially when we purchasing their companies and the oil at discount rates with the threat of violence, only to process a product that is not in our best interest in the long run.
I'm not claiming it is. Those claims about the crude being somehow worth less simply aren't true tho. Sour crude yields more gasoline/barrel. It's worth *more*
It's just harder to refine. Colombia has the capacity too though. They draw from very similar, but much smaller reserves. It's why they're in on the deal.
I kind of want to look into why I've been seeing that claim so often over the last few days. I wonder if someone with a really big account explained it badly. I used to have to cover energy in Colombia here when I started out as a baby journo working as a stringer. I used to have to go to oil conferences all the time and listen to the worst people in the world drone on for hours about this stuff haha
My understanding is that heavy sour crude is worth more because the profit margin is higher, given that it's much cheaper, not because it's inherently better. I think the question we need to ask is who is it better/ more profitable for?
But, what do I know, I'm just a musician/immigration attorney. I have geology professor friend who might now.
Went down a rabbit hole on this last night and you're right. The added value usually comes from refiners who can handle it obtaining it slightly below standard barrel prices on the international market
They're refining it as I type this
https://www.aljazeera.com/news/2026/8/19/venezuela-oil-exports-surge-with-us-refineries-taking-in-half-of-output