No. of Recommendations: 4
first, a tidbit from the net sifter, re the SPR.
Most raw, extra-heavy crude produced directly out of Venezuela's Orinoco Belt is so dense and viscous (with high sulfur and metal content) that it falls below standard API gravity thresholds and specifications preferred for direct long-term underground salt-cavern storage in the SPR.More on that tidbit, and more clues that the scummyness of a deal is directly proportional to it's opacity.
Trump promises his Venezuela oil deal will 'fill up' the Strategic Petroleum Reserve. It's not that simple.
"Most of Venezuela's proven oil reserves are extra-heavy crude oil," the US government's Energy Information Administration notes, which the Energy Department concluded years ago wasn't cost-effective to store.
"DOE has analyzed heavy oil storage and found that the costs outweigh the benefits and storing heavy oil would present considerable operational difficulties," a 2016 report to Congress said.
The exact contours of the deal between the US and Venezuela remain murky, with no contract publicly released.
Officials from the two nations have outlined plans for a new joint venture between the US government and a still-unnamed private operator, which will be given 100-year leases for Venezuelan oil fields that geologists estimate contain billions of barrels.finance.yahoo.com - Trump promises his venezuela oil deal will fill up the strategic petroleum reserve its not that simpleFrom the net sifter:
Citgo refineries in the U.S. are purpose-built and specifically designed to process heavy, sour crude oil, particularly extra-heavy grades originating from Venezuela's Orinoco Belt
Refinery Profile and Capabilities
All three Citgo facilities (Lake Charles, LA, Corpus Christi, TX, and Lemont, IL) feature deep-conversion units with high coking capacity, enabling them to break down heavy, viscous, and high-sulfur (sour) hydrocarbons that simpler refineries cannot handle.
They were originally acquired and engineered by Venezuela's state oil company, PDVSA, precisely to process heavy Venezuelan crude slates.
Citgo has a total combined refining capacity of 829,000 barrels per day (bpd) across its three U.S. refineries.Timeline:
Citgo sold by court order to raise funds to settle claims against the Venezuelan government: December 2025
US staches Maduro, placing the Venezuelan government in more pliable hands: January 3, 2026
US attacks Iran, disrupting traffic in the Persian Gulf, and juicing the value of crude from anywhere else.
Paging Mr Singer. Paging Mr Singer. You purchase of Citgo, and tens of Millions paid to Trump, are about to pay off bigly.
All this was no accident. 17D chess.
Steve
