CORPUS CHRISTI, Texas — The Texas’ Gulf Coast refining industry is receiving a new source of crude oil after two tankers carrying a combined 1 million barrels from Venezuela arrived at the Port of Corpus Christi on Tuesday, Oct. 27.
The shipment, produced by North American Blue Energy Partners, is the first under an agreement with the U.S. government.
Federal officials plan to sell the oil to refineries operated by CITGO Petroleum and Exxon Mobil, Reuters reported. CITGO operates a refinery in Corpus Christi.
The arrival highlights Texas’ role as a major refining center and destination for imported crude, which Gulf Coast facilities process into gasoline, diesel and other petroleum products.
Under the August agreement, the United States secured the right to purchase 20% of the company’s production at cost and rights to a 35% ownership stake in its parent company.
The company said the initial delivery came at no cost to taxpayers.
However, CNN reported that the cargo’s value would be accounted for through pricing adjustments on future shipments, raising questions about describing the oil as free.
President Donald Trump and Secretary of State Marco Rubio visited the port Tuesday as the administration has said additional Venezuelan oil could lower fuel prices, but a single shipment is unlikely to produce noticeable savings for Texas drivers.
The company reported producing approximately 223,500 barrels of oil equivalent daily in October and plans to expand.
Reuters reported that aging infrastructure, equipment shortages and financing difficulties could hinder those efforts.
Future shipments could provide Texas refineries with another source of crude oil, although their long-term economic impact remains uncertain.
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