If the US seizes control of Venezuela’s oil, who wins – and who loses?
Impact on China may be limited thanks to diversified import markets – but Canada, Russia, Saudi Arabia and the EU could face setbacks
In the wake of the military operation, the Post examines the potential winners and losers in the global oil market.
Who are the winners?
The US stands to be the biggest beneficiary.
Much of that oil is extra-heavy crude: denser and more viscous than light grades, with higher levels of heavy hydrocarbons and impurities. It requires complex processing before being refined into products such as petrol, but could prove highly profitable for those equipped to process it.
Most refineries along the US Gulf and West Coasts were built before the shale boom and were designed to process heavy, high-sulphur crude imported from countries such as Mexico – and Venezuela.
Nearly 70 per cent of US refining capacity runs most efficiently on heavier grades, which helps explain why 90 per cent of crude oil imports into the US are heavier than domestically produced shale oil, according to the American Fuel & Petrochemical Manufacturers (AFPM).