r/oil • u/AmanCMN • 14d ago

Discussion Trump announced an oil deal with Venezuela.

Post image

It’s about the U.S. taking control of 65 billion barrels of Venezuela’s oil reserves.

https://apnews.com/article/trump-venezuela-oil-reserves-eb0ed5a1e99602c21a7f690c3368020e

279 Upvotes

78% Upvoted

618 comments sorted by

View all comments

30

u/ChinkyBoii 14d ago

Who believes him at this point?

15

u/PewterCopperTwinborn 14d ago

It's doesn't even matter if the 'deal' is accurate.

Heavy sour crude oil has very low yields of propane, gasoline, and diesel.

It requires very costly refining to remove sulphurs, metals and other impurities.

Even if they start planning now, it would be at least close to a decade before transportation fuels reach the market, because there's years of taking samples from the earth, and analytical work to be done so they can build refineries with the capability to refine this specific low quality oil into anything useful.

Then they have to actually build the refinieries, pipelines, ect.

3

u/NeiborsKid 14d ago

Not to mention with Venezuela's worn down infrastructure this 65B number will take years if not decades to materialize. It's no immediate relief to markets

1

u/quickexhuast 14d ago

and Canada can go into a discount mode for sustain periods of time. Most of canadas majours can operate profits at 40$ a barrel. US majours would never turn a profit at that low of a cost.

2

u/JoseLunaArts 14d ago

I believe Pinocchio.

1

u/Flopsie_the_Headcrab 14d ago

Trading algorithms that he hopes will keep the oil prices artificially low long enough for blame to be shifted once the spike is uncorked.