• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 3 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 18 mins Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 13 hours Iran Is Winning Big In The Middle East
  • 2 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 8 mins It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 11 hours Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 14 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 1 day Trump cancels Denmark visit amid spat over sale of Greenland
  • 15 hours Not The Onion: Vivienne Westwood Says Greta Thunberg Should Run the World
  • 23 hours OPEC will consider all options. What options do they have ?
  • 12 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 7 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 13 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources

Citgo Confirms Venezuelan Crude Can Be Replaced

Tanker

The new chairwoman of U.S. refiner Citgo has assured energy industry attendants of the CERAWeek conference that the company is resilient enough to continue operating without any major hiccups.

The Houston Chronicle quoted Luisa Palacios as saying "For the last month (Citgo) has been developing contingency plans because of the risk that could be in place.  I have to say, the flexibility of our refiners has allowed us to adjust to shock in a quite substantial way.”

Palacios was appointed chairwoman along with a whole new board of directors by the interim government of Venezuela appointed by opposition leader Juan Guaido. Guaido declared himself interim president this January after slamming the May 2018 elections as illegitimate and calling on the Venezuelan people to take to the streets to try and topple the Maduro government.

Earlier this year, Guaido said he would replace the board of directors not just of Citgo but of PDVSA as well. He did so last month but the original board of the troubled company also stayed in place.

Yet Citgo is perhaps more important. While PDVSA has been hit by U.S. sanctions, Citgo is a U.S. incorporated company, whose assets now seem to be at the disposal of the Venezuelan opposition with Washington’s blessing as it increases the pressure on PDVSA and the Maduro government by freezing its assets in the United States and setting up a new account for Venezuelan crude import payments, also to be made available to the Guaido government.,

Citgo operated refineries in three states—Texas, Louisiana, and Illinois—and is a major importer of Venezuelan crude. However, according to Palacios, Venezuelan crude makes up about a quarter of its total intake of crude and it can be replaced with oil from other supplier.

"It's a shock, but it's one we're very well placed to weather," Palacios said referring to the latest sanctions that more or less cut off Venezuelan crude oil’s access to the Gulf Coast refineries.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play