One of the nation’s largest refiners says geopolitical upheaval in Venezuela could become a windfall for U.S. fuel makers built to process heavy crude, Bloomberg writes.
Speaking at the Goldman Sachs Energy, Clean Tech & Utilities Conference in Miami, Phillips 66 CEO Mark Lashier said a potential reopening of Venezuela’s oil sector would boost companies able to run heavier grades, which were once produced there at roughly 3 million barrels a day.
Shares of Phillips 66 jumped nearly 9% as investors bet refiners like Phillips 66 and Valero will benefit from shifting trade flows if Venezuelan barrels return to the market. More supply could head to the Gulf Coast, undercutting Canadian crude prices and aiding Midwest plants designed for heavy oil, Lashier said.
Phillips 66 alone can process about 500,000 barrels a day of heavy crude across its system, including at its Lake Charles and Sweeny refineries.
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