A Mississippi oil refinery is preparing to increase its processing of Venezuelan crude as U.S. policy toward the South American nation shifts.
A Chevron official told FOX Business that the company’s flagship Gulf Coast refinery in Pascagoula has received its first shipment of Venezuelan oil since the U.S. capture of former Venezuelan President Nicolás Maduro in January. The heavy crude is being refined into gasoline and other fuels for American consumers, and with more Venezuelan oil expected to arrive in Pascagoula, prices at the pump could drop.
“We’ve been [in Venezuela] for a long time, and it looks like things are starting to go better for both the Venezuelan people and I would say for the American people, too, because what’s going to happen is the more that oil flows to a place like Pascagoula or some of the other refineries here, it drives down the coast,” said Andy Walz, Chevron’s president of Downstream, Midstream, & Chemicals, in an interview with FOX Business. “That oil is going to be cheaper, it’s closer, and it’s going to help these refineries run the way they were designed, so I think it’s a really good thing.”
The Pascagoula refinery is one of the few on the Gulf Coast capable of handling the heavy, sour crude that Venezuela produces. Officials estimate it is currently processing about 50,000 barrels of Venezuelan oil per day with the refinery prepared to potentially process around 100,000 barrels per day by next month. Its location also allows tankers to deliver crude directly to the facility without relying on pipelines.
Chevron is not the only U.S. company positioned to benefit from the changing oil landscape. Recent policy changes have loosened restrictions on foreign companies operating in Venezuela’s energy sector, allowing major firms such as Chevron, BP, Eni, Shell, and Repsol to explore and invest in oil projects under new U.S. general licenses.
The shift in policy follows Maduro’s capture and a new political phase in Venezuela that has encouraged greater international cooperation. Interim President Delcy Rodríguez has been working with U.S. officials and recently invited Energy Secretary Chris Wright to Caracas to discuss energy investment and industry recovery, including oil infrastructure and production. Under Rodríguez, Venezuela has also implemented reforms aimed at opening the oil sector to foreign participation.
President Donald Trump has publicly supported expanding energy ties with Venezuela, framing increased oil production and exports as beneficial to both countries.
However, Democrats in Congress have called for greater oversight of the administration’s handling of Venezuelan oil and related revenues. Senate Minority Leader Chuck Schumer and Sen. Adam Schiff are advancing measures requiring the Government Accountability Office to investigate how proceeds from Venezuelan oil sales are managed, citing concerns about transparency and legal compliance.