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Saturday, June 23, 2018

Citgo Petroleum News

Valero Boosts Imports of Venezuelan Oil as Sanctions Loom

© sarojmornparn / Adobe Stock

U.S. refiner Valero Energy Corp this year boosted its imports of Venezuelan crude ahead of U.S. sanctions over the country's disputed presidential election and as other customers received less of the OPEC-member's exports, according to Thomson Reuters trade flows data.Venezuelan oil production has tumbled to a multi-decade low this year, cutting shipments to buyers in the United States and elsewhere and worsening a severe economic recession. Its crude exports averaged 1.19 million barrels per day (bpd) in the January-April period…

Pemex Resumes Light Crude Sales to U.S. West Coast

Mexico's Pemex has quietly begun shipping light Isthmus crude to a variety of West Coast refiners this year, according to U.S. and Reuters data, resuming such sales after a six-year hiatus. The state-run oil company, which exported only about 100,000 barrels per day (bpd) of Isthmus last year, shipped about 340,000 barrels of the crude to Valero Energy Corp at Benicia, California, in January and February, according to U.S. government data. It sent another 350,000 barrels (48,000 tonnes) to Tesoro Corp in San Francisco in March, according to Eikon's trade flow database based on PIERS data. Pemex then exported another 150,000 barrels to Shell Trading at Anacortes, Washington, in May from the Salina Cruz terminal.

PDVSA Raises Prospect of Force Majeure on Oil Exports

© Igor Groshev / Adobe Stock

OPEC member Venezuela has raised the prospect of declaring force majeure on contracts with major crude buyers amid plummeting output from its oil fields and tanker bottlenecks at ports, according to three sources familiar with the matter.Falling production from Venezuela has contributed to a rally in global oil prices to a near four-year high, and other OPEC members may boost output at a meeting later this month to compensate for the shortfall and other risks to global supplies.Oil is the financial lifeline for the embattled socialist government of President Nicolas Maduro…

Sunken Drydock Blocks Shipping Channel

A Louisiana shipping channel used to supply crude oil to two big Gulf coast refineries has reopened to most ships but very large vessels may still not be able to get through, the U.S. Coast Guard reported on Monday. A sunken drydock has been blocking the shipping channel in the Calcasieu River, just north of the Intracoastal Waterway, since Tuesday, preventing deepdraft vessels, such as crude oil tankers, from passing through the area. The dry dock is still sunken, and not yet been salvaged," USCG said. "Very large vessels may not be able to bypass the sunken dry dock," it added. The U.S. government last week said it was releasing 500…

Coalition Urges Congress to Address Asian Carp in the Great Lakes

© Dale Stagg / Adobe Stock

A coalition of maritime business and industry organizations sent a letter to key Members of Congress on Friday, March 24 urging funding for the Great Lakes Restoration Initiative (GLRI) to further support efforts undertaken by the State of Illinois to slow, stop and reverse the migration of Asian carp, an aquatic invasive species, through cost-effective measures. In the letter, the UnLock Our Jobs (UOJ) coalition members review the record of success that the GLRI has had in working with the State of Illinois to develop a range of strategies to control Asian carp…

PDVSA Readies Armada of Fuel Imports

About a dozen tankers are sailing to Venezuela or waiting offshore to discharge cargoes after state-run oil company PDVSA ramped up tenders to buy gasoline and other fuels to offset its weak refining output, according to traders and Thomson Reuters data. Petroleos de Venezuela SA (PDVSA) recently awarded BP , Castleton Commodities, Rosneft and CT Energia contracts to buy more than 15 cargoes of gasoline blend stock, diesel, vacuum gasoil, catalytic naphtha and cutter stock for delivery from April through May. The total volume expected for the coming weeks surpasses 4 million barrels, according to traders and tender documents circulated by PDVSA. Venezuela can produce up to 1.3 million barrels per day (bpd) of fuels at its refineries.

Venezuelan Crude Sales to US Declined 7% in March

Exports of Venezuelan crude to the United States fell almost 7 percent in March versus the same month of 2015 to 793,581 barrels per day (bpd), according to Thomson Reuters Trade Flows data, affected by delays at the country's main oil port. Even though the sales recovered versus the previous two months, when they hit record lows, the increase was not enough to reach last year levels. State-run oil company PDVSA and its joint ventures sent 52 crude cargoes to the United States last month, according to the data, made with preliminary figures. PDVSA's refining unit, Citgo Petroleum, was the main receiver, along with Valero Energy , Phillips 66 and Chevron Corp.

Venezuelan Crude Sales to the US Down in March

Venezuelan crude oil sales to the United States declined in March for the third month in a row this year to 651,710 barrels per day due to falling exports of main grade Merey, according to Thomson Reuters trade flows data. Venezuela's crude output fell in 2016 to its lowest level in 23 years. Analysts expect another decline in 2017 due to lack of investment and to cash flow problems affecting state-run oil firm PDVSA, which controls more than 40 joint ventures for exploration and production. The volume of Venezuelan crude that PDVSA and its joint ventures exported in March was down by 2.3 percent from February and by 18 percent from a year earlier.

TSA Awards Grants for Securing Ports, Cargo

Nearly $5 million in Transportation Security Administration grants to Louisiana ports on the Mississippi River includes $824,000 for risk assessments that will help local officials identify security vulnerabilities and develop plans to foil terrorism, TSA said today at a news conference of those responsible for security at the Port of South Louisiana in Reserve. Steven Froehlich, the National Manager for Stakeholder Relations, said that those mitigation plans also lay the foundation for ports to continually make improvements and to employ new security technologies. "Simply put, we are acting to protect cargo from terrorists, and to prevent suspicious cargo from entering our country," Froehlich said. Froehlich noted that several agencies, including the U.S. Coast Guard, U.S.

CITGO Introduces Aquamarine Grease

CITGO Aquamarine Grease is the latest addition to CITGO Petroleum Corporation’s family of lubricants specifically designed to provide minimal environmental impact when used in offshore or inland waterway operations. Ideal for use on offshore drilling rigs and platforms, lifts and cranes, pile drivers and dredges, the new premium grease is environmentally friendly, has superior adhesion qualities and is highly resistant to Water Wash Out. Polymer fortified for superior adhesion, CITGO Aquamarine Grease is designed to reliably stay in place on load bearing fittings and connections. Additionally, its exceptional water-resistant qualities and a full additive package help guard against wear, corrosion and oxidation caused by exposure to excess moisture—even in salty environments.

Venezuelan Crude Sales to US Fell 8% in April

Venezuelan crude sales to the United States declined 8.3 percent in April to 734,700 barrels per day (bpd) compared with the same month of 2015, amid delays at PDVSA's main ports, according to Thomson Reuters trade flows and vessel tracking data. State-run oil firm PDVSA and its joint ventures sent a total of 45 crude cargoes to customers in the United States last month versus 54 cargoes in April of 2015 and 52 in March. Equipment malfunctioning at Jose port has been occurring since March, causing delays to load and discharge tankers. This has also resulted in a backlog of vessels around PDVSA's Bullenbay terminal in the Caribbean island of Curacao. PDVSA this week said it is installing three new loading arms to speed up operations at Jose.

PDVSA Halts Exports of Diluted Crude for Oct

Venezuela's state-run PDVSA has put on hold its plans to export diluted crude oil (DCO) in October as the company reviews production costs that have risen on imports of costly naphtha that it uses to mix with its extra heavy crude, traders told Reuters on Friday. The move comes as the company scrambles to cut costs to partially solve its well-known cash flow problems. Reuters reported on Wednesday that PDVSA is considering importing Algerian Saharan Blend light crude instead of costly naphtha that it has been buying since 2013 to use for its blends. One of several sources who was told of the halt by the company said it might also try to raise DCO prices to better offset import costs. "Sales of DCO are suspended, but PDVSA said it won't stop production of these crudes.

Venezuelan Crude Sales to the US Jump 4% in May

Venezuelan crude oil sales to the United States rose nearly 4 percent in May to 762,000 barrels per day (bpd) after declining since January amid falling output and delays at the country's main oil port, according to Thomson Reuters data on Tuesday. The United States last month received 47 cargoes of Venezuelan crude, a 3.7 percent increase versus the previous month, but still a 2 percent decline versus May 2015, according to trade flows data made with preliminary figures. A larger number of shipments of diluted crude oil (DCO) and Merey blend received by PDVSA's customers, including its refining unit Citgo Petroleum, Valero Energy and Phillips 66, contributed to the growth.

Venezuela Ships More Oil to US in July vs June

Venezuela's PDVSA and its joint ventures last month shipped 638,325 barrels per day (bpd) of crude to the United States, a 30 percent increase over June due to larger sales of upgraded oil, according to Thomson Reuters trade flows data. Venezuelan crude output has declined this year to its lowest point in 27 years due to a lack of investment and payment delays to oil service firms, affecting exports to customers in key markets including the United States. Even though the volume of crude sent to the United States in July was larger than the previous month, it was 22 percent below the same month in 2016. The main U.S. receiver of Venezuelan crude last month was refiner Valero Energy, followed by PDVSA's refining unit in the United States, Citgo Petroleum.

Retail Gasoline Prices Surge in Harvey's Choppy Wake

File Image: The port of Corpus Christi and tanker berths (CREDIT: Port of Corpus Christi)

Nearly a quarter of U.S. refining capacity out; Motiva down for two weeks; Corpus Christi starts to reopen. Retail U.S. gasoline prices hit two-year highs and global shipping routes were scrambled as the nation's largest refiners remained shut on Friday, even as Harvey was losing strength. Major fuel pipelines feeding the U.S. Northeast and Midwest have been either closed or severely curtailed, prompting shortages in some areas and dramatic spikes in wholesale prices. The storm…

NRC And Citgo Extend Contract

National Response Corporation (NRC) is pleased to announce the extension of its long-term relationship with CITGO Petroleum Corporation. Under a new two-year contract, NRC will provide supplemental emergency response services for all of CITGO's refineries, terminals and pipelines throughout the . "We are pleased to maintain our support of CITGO's emergency response needs," commented Jim Godfrey, NRC Vice President of Operations. "With NRC, CITGO has access to some of the best emergency response capability in the ," said Rixio Medina, CITGO Vice President Health, Safety, Security, Environmental Protection and Shared Services .

Unified Command Established to Oversee Oil Spill

An oil spill is contained June 21, near a crude oil tanker at the Clifton Ridge terminal along the Calcasieu River. The cause of the spill is under investigation by the U.S. Coast Guard and CITGO Petroleum Corporation. The CITGO Lake Charles Manufacturing Complex, the Coast Guard and the Louisiana Oil Spill Coordinator's Office have established a Unified Command to manage the clean up and recovery of the oil spill in the Calcasieu Ship Channel near Lake Charles. Recovery efforts began Tuesday night after receiving reports of oil in the Calcasieu channel near CITGO's Clifton Ridge Terminal. The recovery operations represent an expansion of activity that began in response to heavy rainfall and partial flooding, which overwhelmed the CITGO's waste water storage tank area and dikes.

Aruba, Citgo sign MOU to Explore Refinery Restart

Aruba's Energy Ministry said on Friday it has signed a memorandum of understanding with PDVSA's U.S. unit Citgo Petroleum to explore reopening and operating the island's refinery, idled since 2012. The 235,000-barrel-per-day refinery was operated buy U.S. firm Valero Energy, but it closed because of low margins. Since then the facility has been used as a storage terminal. "Citgo will send a group to evaluate the refinery technically and financially," Aruba's government said in a statement. Because of its proximity to the Venezuelan coast, PDVSA and Aruba's government have had talks since 2012 about a purchase or an operating agreement, but without any success. Reporting by Sailu Urribarri

Venezuelan Crude Exports to US Fell 10% in Sept

Venezuelan crude exports to the United States declined 10 percent in September versus the previous month due to lower sales of heavy and medium grades to some of regular customers, according to Reuters trade flows data and PDVSA trade documents. State-run oil company PDVSA and its joint ventures sent 44 crude cargoes to the United States last month carrying 724,230 barrels per day (bpd), compared with 807,065 bpd in August. Sales of diluted crude oil (DCO) made with naphtha rose again to 348,200 bpd, from 311,130 bpd in August, but the increase was not enough to offset an export decline to regular clients including PDVSA's refining unit Citgo Petroleum, Motiva Enterprises, Phillips 66 and PBF Energy's Chalmette refinery.

Mystik Lube Caters for Wider Marine Engine Range

Mystic LubricantsL Image courtesy of the manufacturer

Houston-based supplier Mystik informs that its lubricants will now be available in a wider range of 4-cycle FC-W marine engine oil viscosity grades, including full synthetics 10W-30 and 10W-40 as well as the new synthetic blends 25W-40 and 25W-50. Formulated to meet the demanding requirements of 4-cycle marine engines, Mystic say that the new products deliver unmatched performance, protection and cleanliness for engines requiring FC-W engine oils. In addition to providing superior wear…

Venezuelan Sales of New Crude Blends to US Double in Jan

Sales to the United States of new Venezuelan crude blends made with imported oil nearly doubled in January to 176,000 barrels per day (bpd), but the rise was not enough to offset a decline in total oil shipments, according to Reuters trade data. Venezuela's state-run company PDVSA started buying Algerian light crude in October from Sonatrach to use it as diluent for its own extra heavy oil output. China and the United States have been receiving cargoes of the new blends since then, but disagreements over terms of the Algerian oil sales have caused PDVSA to halt the purchases, according to industry sources. PDVSA and its joint venture partners sent 736,000 bpd of crude to the United States last month, down 10.5 percent from December.

PDVSA Halts Caribbean Storage, Shipping; Diverts Oil Cargo

© white_bcgrd / Adobe Stock

Venezuela's state-run PDVSA suspended oil storage and shipping from its Caribbean facilities following a move by ConocoPhillips to temporarily seize the firm's assets on four islands, according to a PDVSA source and Reuters data.PDVSA has begun concentrating most shipping in its main crude terminal of Jose on Venezuela's eastern coast and recalling tankers to Venezuelan waters to avoid seizures that would further cut its exports and worsen an economy on the verge of collapse.U.S.…

U.S. Refiners Cash in on Mexico's Record Imports

File image: a laden oil tanker underway (Crdit Adobestock 12895221

U.S. Gulf Coast refiners are cashing in on rising fuel demand from Mexico, shipping record volumes to a southern neighbor that has failed to expand its refining network to supply a fast-growing economy. The fuel trade could top a million barrels per day (bpd) at times in 2017 as Mexico becomes increasingly dependent on the United States for strategic energy supplies and providing business worth more than $15 billion a year to refiners such as Valero, Marathon Petroleum and Citgo Petroleum.

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