Venezuela announcement may deepen Alberta's budget pressures

President Trump said Venezuela would release up to 50 million barrels after US forces captured Nicolás Maduro, and the prospect of Venezuelan heavy crude reaching Gulf Coast refineries has widened the discount on Canadian crude, affecting Alberta's oil revenue outlook.

On Jan. 6, US President Donald Trump said Venezuela would release as many as 50 million barrels of oil after US forces captured President Nicolás Maduro. Venezuelan crude is similar to the dense, high-sulfur product produced in Alberta's oil sands. The prospect of those barrels reaching Gulf Coast refineries has widened the discount on Canadian crude. That market change is being discussed for its implications for Alberta's fiscal position. Key points: - President Trump said Venezuela would release as many as 50 million barrels of oil after US forces captured President Nicolás Maduro. - Venezuelan crude is similar to the dense, high-sulfur oil produced in Alberta's oil sands. - The possibility of Venezuelan barrels reaching Gulf Coast refineries has widened the discount on Canadian crude, which is noted for its potential impact on Alberta's oil revenues. Summary: The reported prospect of large Venezuelan shipments has widened the discount on Canadian heavy crude and is presented as a factor that could weigh on Alberta's revenues. Undetermined at this time.