HOUSTON, June 12 (Reuters) – U.S. refiners are ready to take in more crude oil from Venezuela, according to Energy Secretary Chris Wright. This comes as Venezuela's oil production is recovering after a significant e...
HOUSTON, June 12 (Reuters) – U.S. refiners are ready to take in more crude oil from Venezuela, according to Energy Secretary Chris Wright. This comes as Venezuela's oil production is recovering after a significant event earlier this year. Refineries along the Gulf Coast are adjusting to handle larger amounts of heavy oil.
Currently, Venezuela is sending about half of its daily oil exports, which total 1.25 million barrels, to the U.S. The rest mostly goes to India and Europe, based on tanker monitoring data. Wright noted that exports from Venezuela are expected to rise in the months ahead.
The Venezuelan oil ministry predicts that crude production will reach approximately 1.37 million barrels per day by the end of the year, marking a 22% increase from the 1.12 million barrels per day recorded in late 2025.
Wright explained that increasing Venezuelan crude in U.S. refineries takes time since crude oil mixes are purchased monthly. "You can't just switch it on instantly, but you will see a growing demand for Venezuelan crude from U.S. refineries," he said during an event in Port Houston, Texas.
U.S. oil production is also expected to keep increasing, driven by modest growth in shale oil and gas, along with stronger crude production from the Gulf Coast and Alaska, according to Wright.
Last year, U.S. crude production rose by 3%, setting a new record at 13.6 million barrels per day. This growth has made the U.S. the largest exporter of oil and fuel in the world, with exports reaching 10.5 million barrels per day.
STRAIT OF HORMUZ FLOWS
Earlier today, Wright mentioned that around 7 million barrels per day are leaving the Persian Gulf, aided by U.S. military support. Oil flows through the Strait of Hormuz have been significantly restricted since the onset of various conflicts involving the U.S. and Israel against Iran in late February.
In response to a question, Wright stated that Iran is currently not exporting any oil or related products and noted that the U.S. is stepping in to fill the oil export gap created by the ongoing Middle East conflict.
The International Energy Agency had estimated a drop in Gulf supplies by 14 million barrels per day, which is about 14% of the global supply. However, it could actually be closer to a 5 to 6 million barrels per day decrease as producers find ways to keep shipments moving.
According to shipping data from Kpler, around 136 million barrels of non-Iranian crude moved through the Strait of Hormuz and the Gulf of Oman from early April to June 10, averaging about 1.9 million barrels per day.
"We've had days when our exports exceeded the figure I mentioned," Wright said regarding the 7 million barrels per day. "Looking at our current trends, we will surpass replacing more than half of the lost oil," he added.
All oil exporters in the Arabian Gulf, except for Iran, are contributing to the flows through the Strait of Hormuz, according to Wright.
When asked about rising gasoline prices in the U.S. since the start of the Middle East conflict, Wright noted that President Donald Trump is focused on keeping energy prices low across the board. However, Wright added that the President felt it was important not to pass on unresolved conflicts, including the issue of a nuclear-armed Iran, to the next administration to avoid substantially higher future energy prices.