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Valero Taps Venezuela for Heavy Crude as Discounts Widen
US refiner expects Venezuelan crude to make up a larger portion of its heavy oil intake.
Jan. 29, 2026 at 2:47pm
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US oil refiner Valero Energy plans to increase its purchases of heavy crude oil from Venezuela as supply increases and price discounts to lighter oil grades widen. The company expects Venezuelan crude to make up a "pretty large part" of its heavy oil intake in the coming months, as it can process more heavy crude at its Port Arthur refinery in Texas after a coker expansion project.
Why it matters
Valero's move to tap more Venezuelan crude highlights the shifting dynamics in the global oil market, with increased supply of heavy and sour crude leading to wider discounts for those grades compared to lighter, sweeter oils. This trend benefits refiners like Valero that have the capability to process heavier crudes.
The details
Valero has purchased barrels of oil from all the companies authorized by the US government to sell Venezuelan crude, and the company expects Venezuelan heavy crude to displace some heavy oil imports from Canada, Latin America, and the Caribbean. Historically, Valero has processed up to 240,000 barrels per day of Venezuelan heavy crude, and the recent coker expansion at its Port Arthur refinery has substantially increased its heavy crude processing capability.
- Valero expects Venezuelan crude to make up a 'pretty large part' of its heavy oil intake in February and March 2026.
- Valero's coker expansion project at its Port Arthur refinery started operations in 2023.
The players
Valero Energy
A US-based oil refining company that plans to increase its purchases of heavy crude oil from Venezuela.
Randy Hawkins
Vice president for crude oil supply and trading at Valero Energy.
What they’re saying
“We anticipate the Venezuelan crude making up a pretty large part of our heavy diet as we move into February and March.”
— Randy Hawkins, Vice President for Crude Oil Supply and Trading (Valero Earnings Call)
“That project substantially increased our processing capability for heavy crude. We'd expect our Venezuelan processing capability to be substantially north of that number now.”
— Randy Hawkins, Vice President for Crude Oil Supply and Trading (Valero Earnings Call)
The takeaway
Valero's increased reliance on Venezuelan heavy crude highlights the growing importance of access to diverse crude oil sources, especially heavier grades, as refiners seek to maximize their processing capabilities and take advantage of widening price discounts in the global oil market.
