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Rats, with all to US politics over Keystone we are not in a position to feed the US refiners that are optimized for heavy oil feedstock.

Anymouse <enjoyed his one visit to Venezuela long ago when we were trying to sell them our new (at the time) class of large DDHs that carried two Sea Kings>

U.S. oil sanctions on Venezuela look like Iran 2.0

Julian Lee, Bloomberg News

President Donald Trump has slapped oil sanctions on Venezuela, and they will hit hard. Although they haven’t been accompanied by threats to drive the country’s oil exports to zero — as the sanctions on Iran were — they could have a similar effect.

There are two strands to the measures: curbs on purchases of the country’s crude, and a ban on imports from the U.S. of the diluents that must be blended with the extra-heavy oil from the nation’s Orinoco Belt so it can flow through pipelines. The first will hit Venezuela’s oil exports, unless it can find alternative buyers, while the second will worsen the blow to production levels.


Purchases by non-U.S. entities are not specifically banned, as they are for Iranian oil. However, in practice there may be very few buyers ready to come forward, or banks, shippers and insurers who will be willing to facilitate the trade. The increased profit on a cargo of discounted Venezuelan crude is not likely to be enough to offset the heightened risk of bad blood with the U.S.

The bigger threat to Venezuelan oil, though, may come from the immediate ban on the delivery of diluents.
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