Enbridge Says Canadian Oil Remains Key for U.S. Gulf Refineries

Enbridge executives told analysts that Canadian crude will continue to see strong demand at U.S. Gulf Coast refineries and that Venezuelan heavy oil would be a supplement rather than a replacement. The article reports Enbridge posted a $1.95 billion quarterly profit and raised its quarterly dividend by 3%.

Enbridge executives told market analysts that Canadian crude remains an important feedstock for U.S. Gulf Coast refineries, and that recent moves to ease sanctions on Venezuela would likely add supply rather than replace Canadian heavy grades. The U.S. Treasury issued two general licenses easing restrictions on Venezuela's energy sector. Enbridge operates major pipeline and Gulf Coast terminal infrastructure that link Canadian oil flows to U.S. refineries. The company also reported quarterly results that included a sizeable profit and a modest dividend increase. Key points: - Enbridge executives described Canadian crude as a "meat and potato" part of the U.S. Gulf Coast refining diet and said Venezuelan heavy oil would be a supplement, not a replacement. - The U.S. Treasury issued two general licenses easing sanctions on Venezuela's energy sector, which could allow global energy companies to resume operations there. - According to the U.S. Energy Information Administration, Canada exports about 4.5 million barrels per day to the U.S., roughly 90% of Canada’s total oil exports, and the Canadian Energy Regulator reported about 16% of Canada’s crude exports were destined for the U.S. Gulf Coast in 2024. - The article says Enbridge's Mainline is Canada’s largest oil pipeline system and that the company is a major conduit for oil imports to the U.S. via its Gulf Coast terminals. - The article reports Enbridge posted a $1.95 billion profit for the quarter ended Dec. 31 and increased its quarterly dividend by three percent, effective March 1. Summary: Enbridge frames Canadian crude as likely to remain a steady source for Gulf Coast refineries while acknowledging uncertainty around how quickly Venezuelan production will grow and how much of that supply would flow to the west Gulf Coast. Officials said they will monitor production growth and evaluate how any increased Venezuelan output is directed, and the longer-term outcome is undetermined at this time.