U.S. pumps more crude than anyone else and wants Venezuelan oil

U.S. crude output has surged from shale but much of that oil is light while many domestic refineries were built to run heavier, sour grades; about 70% of U.S. refining capacity runs most efficiently with heavier crude and roughly 40% of refinery feedstock is imported.

U.S. crude production has grown rapidly thanks to shale drilling in places like West Texas and North Dakota, but much of that output is lighter than the grades many refineries were designed to process. Refineries along the Gulf Coast and elsewhere were built decades ago to handle heavier, sour crude that historically came from suppliers such as Canada, Mexico and Venezuela. With Venezuela’s production having plunged in recent years and some of its remaining output going to buyers including Cuba and China, refiners have supplemented supplies from Canada’s heavier oil. Some officials and industry figures say there would be demand from private refiners for Venezuelan heavy crude if access increased. Key facts: - About 70% of U.S. refining capacity runs most efficiently with heavier crude, according to the American Fuel & Petrochemical Manufacturers. - Nine of the country’s 10 largest refineries are concentrated on the Gulf Coast. - Venezuela’s oil output has fallen in recent years and remaining shipments have been directed to countries such as Cuba and China. - Canada now ships more oil to U.S. refineries than all other international suppliers combined, helping fill the gap left by Mexico and Venezuela. - Roughly 40% of the oil processed by U.S. refineries is imported to get the right mix of crude types, and U.S. crude exports increased after a ban on exports was lifted about a decade ago. Summary: The mismatch between rising domestic light crude output and refineries configured for heavier grades keeps imports important for producing gasoline, diesel, jet fuel and asphalt. Industry observers and some officials note potential demand for Venezuelan heavy crude if access were expanded. Undetermined at this time.