US-Venezuela Oil trade, US Oil Imports from Venezuela in 2023-24

The trade relationship between the United States and Venezuela regarding oil trade has garnered significant attention in recent years. The US has been one of the largest importers of Venezuelan oil for decades, relying on their southern neighbor for a steady supply of crude oil. 

• According to the US-Venezuela trade data and Live US oil imports data the US oil import from Venezuela accounted for $3.45 billion in 2023. 

• According to the US shipment data for oil imports and Venezuela oil export data to the USA, the US crude oil imports from Venezuela were around 30 million barrels in 2023, based on an average of around 85K barrels per day after limited sanctions relief allowed Chevron to resume oil imports starting in late 2022​. 

• The United States imported no crude oil from Venezuela in 2020 and 2021. This resulted from the United States' severe sanctions, which started in 2019 and lasted throughout those years, on Venezuela's oil sector, notably its national oil corporation PDVSA.

• Oil exports accounted for 90.85% of the overall trade between the United States and Venezuela in 2023, which more than doubled to over $6 billion. 

• Venezuela's oil exports increased 12% to around 700,000 barrels per day due to the United States lifting some of its sanctions against the country. 

• About 135,000 barrels per day, or 19% of Venezuela’s oil shipping quantities, went to the United States. 

• The 4-digit HS code for oil is 2709 which specifies oil in the category of mineral fuels and oils under the HS code 27 for global trade.

In this article, we will take a closer look at the US oil imports from Venezuela, exploring the dynamics of the US-Venezuela oil trade and its implications for both countries.

Additional details regarding the U.S.-Venezuela oil trade are as follows:

• Sanctions

Since 2019, the United States has imposed sanctions on Venezuela. Sales to the US, which used to be a significant market for Venezuelan oil exports, fell precipitously as a result of the sanctions.

• Partners for exports: Venezuela's oil exporters to the US

Chevron, Repsol, Eni, Maurel & Prom, and Reliance Industries are some of Venezuela's joint venture partners and clients that have the authority to ship crude to the United States, Europe, and India.

• Exports of oil

Due to a combination of poor governance and U.S. sanctions, Venezuela's oil exports have been decreasing annually since 2015. 

US-Venezuela Oil Imports in the Last 10 Years

Historical Background US-Venezuela oil import-export trade

The US-Venezuela oil trade dates back to the early 20th century when American companies played a major role in developing Venezuela's oil industry. Since then, Venezuela has become one of the top oil exporters to the US, providing a significant portion of the country's oil imports.

The Importance of Venezuelan Oil to the US

Venezuelan oil has been crucial to the US economy, especially in terms of meeting the country's energy needs. The US has relied on Venezuelan oil to fuel its industries, transportation sector, and households for many years. The steady supply of Venezuelan oil has helped keep prices stable and ensured energy security for the US.

Political Tensions and Economic Instability

However, in recent years, political tensions and economic instability in Venezuela have raised concerns about the future of the US-Venezuela oil trade. The political situation in Venezuela has been volatile, with ongoing protests, economic collapse, and a leadership crisis. This has led to uncertainty about the stability of Venezuelan oil production and exports.

US Sanctions and Oil Trade with Venezuela

In response to the political situation in Venezuela, the US imposed sanctions on the country in 2019, including restrictions on its oil exports. These sanctions have had a significant impact on Venezuela's economy and oil industry, leading to a decline in oil production and exports.

Diversifying Energy Sources

As a result of the uncertainty surrounding the US-Venezuela oil trade, the US has been exploring other sources of oil to diversify its energy supply. The US has increased imports from other oil-producing countries, such as Canada, Saudi Arabia, and Mexico, to reduce its reliance on Venezuelan oil.

The Future of US-Venezuela Oil Trade

The future of the US-Venezuela oil trade remains uncertain, given the political and economic challenges facing Venezuela. The US may continue to reduce its imports from Venezuela and seek alternative sources of oil to meet its energy needs. However, the long-standing relationship between the two countries and the importance of Venezuelan oil to the US economy may lead to efforts to stabilize and revive the oil trade in the future.

Frequently Asked Questions on US-Venezuela Oil Trade

1. What is the status of US oil imports from Venezuela in 2023?

In 2023, the United States imported approximately $3.45 billion worth of oil from Venezuela based on the US import data. This marked a significant increase in imports compared to recent years, during which sanctions dramatically limited trade.

2. Why did US oil imports from Venezuela drop to zero in 2020 and 2021?

The complete halt of US oil imports from Venezuela in 2020 and 2021 was primarily due to severe sanctions imposed by the United States on Venezuela's oil sector, particularly targeting its state-owned oil company, PDVSA.

3. How have US sanctions affected Venezuela's oil exports?

US sanctions have significantly impacted Venezuela's oil exports, leading to a decline in both production and global sales. Before the sanctions, Venezuela was a top supplier of oil to the US. Since their implementation, the export volumes have dropped sharply, though some restrictions were lifted in 2023.

4. What percentage of US-Venezuela trade is constituted by oil?

As of 2023, oil exports accounted for approximately 90.85% of the overall trade between the United States and Venezuela, which surpassed $6 billion, according to the US bill of lading data and US-Venezuela trade data for oil.

5. What contribution do Venezuelan oil exports make to the US oil market?

In 2023, about 135,000 barrels per day from Venezuela were exported to the United States, representing roughly 19% of Venezuela’s total oil exports, which were around 700,000 barrels per day.

6. Which companies are involved in Venezuela's oil exports to the US?

Several international companies, such as Chevron, Repsol, Eni, Maurel & Prom, and Reliance Industries, are involved in joint ventures in Venezuela and have the authorization to export oil to the United States, Europe, and India.

7. What are the top 10 US oil import destinations? 

According to the US oil import data by country the top 10 countries from where the US imports oil, as per the US oil import data for 2023 are: 

1. Canada: $97.18 billion (223.85 billion cubic meters)

2. Mexico: $20.35 billion (42.61 billion cubic meters)

3. Saudi Arabia: $10.81 billion (19.98 billion cubic meters)

4. Iraq: $6.01 billion (12.41 billion cubic meters)

5. Brazil: $5.90 billion (10.65 billion cubic meters)

6. Colombia: $5.59 billion (11.11 billion cubic meters)

7. Nigeria: $4.73 billion (8.43 billion cubic meters)

8. Ecuador: $3.95 billion (7.48 billion cubic meters)

9. Venezuela: $3.45 billion (7.59 billion cubic meters)

10. Guyana: $3.09 billion (5.64 billion cubic meters)

8 Who are the top 10 oil importers in the USA?

According to the US oil import data by company and US oil importers database for 2023-24, the top 10 Oil importers in the USA include:

• Valero Energy Corp.: $25 billion (230 million barrels)

• Chevron Corporation: $21 billion (190 million barrels)

• ExxonMobil: $18 billion (165 million barrels)

• Marathon Petroleum: $16 billion (150 million barrels)

• Phillips 66: $14 billion (125 million barrels)

• Motiva Enterprises: $12 billion (110 million barrels)

• Shell USA: $10 billion (100 million barrels)

• Tesoro Corporation: $8.5 billion (80 million barrels)

• BP America: $7.2 billion (70 million barrels)

• HollyFrontier Corp.: $6 billion (60 million barrels)

9. Why does the US import oil and how much oil does the US import?

The US imports oil for various reasons that contribute to its energy needs. The primary driver behind the US imported oil lies in the nation's high demand for energy and petroleum products. Although the US produces a significant amount of crude oil domestically, it still relies on imports to meet its consumption levels due to factors such as refining capacity, cost-efficiency, and specific refining requirements for certain products. According to the US oil import data for 2023, US oil imports reached $172.42 billion. About 66 percent of oil is imported into the US. 

10. How do cheaper Venezuelan oil flows benefit India?

Venezuelan crude oil, known for its high sulfur content and discounted prices, offers significant cost advantages for Indian refiners like Reliance. These refiners, equipped to process "dirty" crudes, can reduce operational costs while maintaining output. This year, Venezuela exported 705,000 barrels per day on average, the most since 2019. About 22 million barrels of Venezuelan oil were bought by India in 2024, accounting for 1.5% of all purchases made during that time, with Reliance accounting for over 20 million barrels of that amount.

The resumption of imports supports India's energy security by diversifying supply sources amid global market volatility and geopolitical constraints. Additionally, this move aligns with India's strategic interests, balancing relationships with Washington and reducing dependency on Russian oil.

Conclusion

In conclusion, the US-Venezuela oil trade has been a crucial component of the energy relationship between the two countries for many years. However, political tensions and economic instability in Venezuela have raised questions about the future of this important trade partnership. As the US explores alternative sources of oil and deals with the effects of sanctions on Venezuelan oil exports, the future of the US-Venezuela oil trade remains uncertain.

Also read about:- 

US Oil Exports total value $117.16 billion in 2023

US Oil Imports Data by Country, Top US Oil Importers & Buyers list