Venezuela to US Crude Flows Hitting Structural Constraints

Chevron aimed to export almost 50pc more crude from Venezuela in February than in January according to an Argus source but has been limited by logistical constraints.

• Plans to ship 4mn bl (140,000 b/d) a month may near the ceiling for what is possible.
• Only 1mn bl crude has completed loading from Venezuela to the US so far in February, compared with 2.4mn bl in January.
• Chevron's four joint-venture projects in Venezuela have increased production to about 110,000 b/d, and the company is aiming for up to 200,000 b/d this year, the source said.
• Venezuela has been slowly increasing production to around 700,000 b/d, but some Venezuelan oil observers say output has hit a ceiling because of structural constraints.
• President Nicolas Maduro's goal of 2mn b/d production this year may not be feasible even with Chevron’s help.