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Focus on Venezuelan heavy crude: refining margins (in English and Spanish)

Journal Article · · Energy Detente; (United States)
OSTI ID:5452682

Of six crudes refined in the US Gulf Coast, heavy Venezuelan crude Lagunillas (15/sup 0/ API) provides the best margin per barrel. Data for end of December 1983 and the first three weeks of January show that margins on all crudes are on the rise in this market, due to a turnaround in product prices. The lighter crudes are showing the greatest increase in Gross Product Worth. This is having a modest shrinking effect on the margin differential between light and heavy crudes in this market. The domestic crude West Texas Intermediate, at 40/sup 0/ API, provides the highest GPW in this crude slate sample, over US $31 per barrel, compared to GPW of under US $28 per barrel for Lagunillas. Still, as Lagunillas cost about US $8 less than does WTI, refiners with sufficient residue conversion capacity can be earning about US $3.50 more in margin per barrel than they can with WTI. Although few refiners would be using a 15/sup 0/ API crude exclusively for any length of time, heavier oil's inclusion in modern refiners' diets is enhancing their competitive position more than any other single factor. This issue of Energy Detente presents the fuel price/tax series and industrial fuel prices for January 1984 for countries of the Western Hemisphere.

OSTI ID:
5452682
Journal Information:
Energy Detente; (United States), Journal Name: Energy Detente; (United States) Vol. 5:2; ISSN EDETD
Country of Publication:
United States
Language:
English and Spanish

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