Valero Taps Into Venezuela's Oil Reserves for Profit Boost

Refinery giant Valero leverages discounted Venezuelan crude to increase margins and market share.

Published on Feb. 17, 2026

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The U.S. government's move to remove Venezuelan President Nicolas Maduro and unlock access to the country's massive oil reserves has created a major profit opportunity for refinery giant Valero. With its Gulf Coast refineries perfectly positioned to process Venezuela's heavy crude oil, Valero is already securing discounted shipments and boosting its revenue and market position.

Why it matters

Valero's ability to efficiently refine Venezuelan crude gives it a significant competitive advantage over other U.S. refiners. The discount on Venezuelan oil compared to other global benchmarks is driving higher refining margins and profits for Valero, solidifying its position as a top player in the industry.

The details

Valero has already locked up multiple shipments of Venezuelan oil at discounts reportedly near $9 per barrel compared to Brent prices. The company's new cokers installed at its massive Port Arthur refinery allow it to process the heavy Venezuelan crude, putting Valero on track to become the largest importer of Venezuelan oil as early as March, potentially outpacing even Chevron. This influx of discounted crude is expected to significantly boost Valero's refining margins and profitability.

  • In January 2026, the U.S. government removed Venezuelan President Nicolas Maduro, unlocking access to the country's massive oil reserves.
  • In the fourth quarter of 2025, Valero reported revenue of $30.4 billion and operating income of $1.6 billion, up from $348 million a year prior.
  • Valero is on track to import 6.5 million barrels of Venezuelan crude in March 2026, which would make it the biggest importer of Venezuelan oil.

The players

Valero Energy Corporation

A massive independent refiner with 13 refineries, holding top-tier capacity in the Gulf Coast region, and specializing in heavy crude.

Nicolas Maduro

The former president of Venezuela, whose removal by the U.S. government unlocked access to the country's oil reserves.

Randy Hawkins

Valero's Vice President of Crude & Feedstocks Supply & Trading.

Lane Riggs

Valero's CEO.

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What they’re saying

“Right now, we're seeing heavy Canadian in the Gulf Coast trading at about $11 to $11.50 under Brent. That's about $4 cheaper than our Q4 average.”

— Randy Hawkins, Vice President of Crude & Feedstocks Supply & Trading, Valero (Valero earnings call)

“Sour crude differentials are also expected to benefit from increased Canadian crude production along with additional Venezuelan crude supply into the U.S.”

— Lane Riggs, CEO, Valero (Valero earnings call)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Valero's ability to efficiently refine discounted Venezuelan crude oil gives it a significant competitive advantage over other U.S. refiners, driving higher refining margins and profits that are expected to continue as Venezuelan oil imports increase.