U.S. proposes barrel-for-barrel swap to blend Venezuelan heavy crude with domestic oil

In a televised interview from Caracas, Energy Secretary Chris Wright outlined a proposal to swap Venezuelan heavy crude for an equivalent volume of light or medium U.S. crude as a means to replenish the Strategic Petroleum Reserve. Because many of Venezuela's key heavy grades are unsuitable for the reserve’s infrastructure, the swap would redirect the heavy oil to American refineries, while the lighter American barrels would be placed in the SPR.

The concept follows President Donald Trump's recent statement about filling the reserve with Venezuelan oil and aligns with a sweeping new U.S.-Venezuela deal that gives the United States a 35% equity stake in North American Blue Energy Partners and a right for the State Department to purchase 20% of the output at production cost. Wright said the influx of Venezuelan crude could intensify competition with Canadian heavy oil producers, driving prices down and encouraging higher consumption.

He added that lower oil prices typically spur faster demand growth. The proposal reflects both strategic energy security considerations and broader market dynamics affecting North American oil supplies.