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Thanks for fleshing out another part of the situation. All of our energy production and processing capacity is dependent to some extent on products that are not
by doodlebugging 1mo ago
Thanks for fleshing out another part of the situation. All of our energy production and processing capacity is dependent to some extent on products that are not domestically sourced. Our Gulf of Mexico refineries were originally built to use heavy Venezuelan crude. Citgo is basically the 100% state-owned Venezuelan oil company PDVSA. It is chartered in the US as a Delaware corp headquartered in Texas as PDV Holdings which owns 100% of Citgo Holdings shares. Even with instability in the region and strained relations, the Citgo operation was critical to US production of refined products. Canadian tar sands production began ramping up after 9/11 as in-situ production using steam injection became a big driver over open mining operations. There was consolidation in the industry during that period as the industry rebounded from low crude prices a few years earlier (as low as ~$11.50/bbl) In a few short years the prices had stabilized above $50/bbl so that it has remained economical to produce. Before that, the heavy crude, tar-like products almost all came from Lake Maracaibo.