By Collin Eaton
HOUSTON, May 2 (Reuters) - The United States in Januaryimposed sanctions on Venezuela's most important global business- producing and selling crude oil - as the Trump administrationratcheted up its bid to force socialist president Nicolas Maduroout of power.
Venezuela's oil exports - accounting for more than 95percent of the country's export revenue - have dropped by some40 percent since January. At the same time, it has been unableto import all the fuel it needs for blending with its heavycrude, as well as for domestic consumption.
The United States and many Western governments haverecognized Venezuelan opposition leader Juan Guaido as thecountry's rightful head of state. However, Maduro remains inpower for now.
HOW MUCH OIL IS VENEZUELA CURRENTLY PRODUCING?
Venezuela's crude production was between 732,000 and 960,000barrels per day (bpd) in March, according to self-reportedfigures and secondary sources quoted by the Organization of thePetroleum Exporting Countries (OPEC) in its April oil marketreport. That compared to output of 3 million bpd at the turn ofthe century.
HOW MUCH CRUDE AND REFINED PRODUCTS IS IT EXPORTING?
Venezuela exported about 1.06 million bpd of crude andrefined products in April, up slightly from 980,000 bpd inMarch, according to data from Refinitiv Eikon. Exports sank 40percent in February, the first full month after the sanctionswere imposed.
WHERE IS THAT OIL GOING?
The United States, India and China were Venezuela's biggestcustomers prior to sanctions, with the United States the biggestcash buyer.
India and China have accounted for most of Venezuela's crudeexports since sanctions took effect. Europe has also absorbedmore. Last month, more Venezuelan crude cargoes headed to China,and fewer cargoes were steaming toward India, Refinitiv Eikondata show. Cuba remains a notable destination as well.
WHAT ABOUT U.S. IMPORTS?
U.S. imports of Venezuelan crude have collapsed to zero inthe wake of sanctions. However, 186,000 bpd was imported in theweek ended April 26 - a signal, traders said, that companieswere taking the last shipments allowed in a wind-down periodthat ended April 28.
In the week ended Jan. 25, just before sanctions wereannounced, U.S. refineries imported 587,000 bpd.
WHY IS VENEZUELAN CRUDE SO IMPORTANT?
Heavy crude supplies of the kind Venezuela pumps areconstrained worldwide. Large producers, such as Canada andMexico, are unable to lift exports to replace the lost barrelsand smaller producers, including Colombia and Ecuador, simply donot pump enough to ease the global shortfall.
Complex U.S. Gulf Coast refiners use heavy crude as part ofa mix to create high-margin distillate products.
WHO WERE THE BIGGEST U.S. CUSTOMERS?
U.S. refiner Citgo Petroleum, a subsidiary of Venezuela'sstate-run oil firm PDVSA, imported more than 175,800 bpd ofVenezuelan oil in 2018, according to Refinitiv Eikon.
It was followed by Valero Energy Corp, whichimported about 166,000 bpd last year, and oil major Chevron Corp, with about 83,000 bpd.
WHERE ARE U.S. REFINERS FINDING REPLACEMENT BARRELS?
Chevron, Valero and Citgo have turned to producers of heavycrude in Colombia, Iraq, Saudi Arabia and Canada, as well assour grades produced in the U.S. Gulf Coast by BP PLC andRoyal Dutch Shell PLC, traders and brokers said.
Valero has said it has used domestic blends, Canadian crudeand a mix of other grades, including crude from Brazil. The U.S.refiners have also secured more crude from West Africa as areplacement, traders said.
WHAT WILL IT TAKE TO REPAIR THE VENEZUELAN OIL INDUSTRY?
Venezuela might open its oil industry to foreign investmentand limit the role of PDVSA, which currently controls all jointventures in the OPEC-member nation, said Ricardo Hausmann,Guaido's representative before the Inter-American DevelopmentBank.
WHAT ELSE IS VENEZUELA EXPORTING?
Venezuela has stepped up shipments of gold to othercountries, sending more than $900 million to Turkey in 2018,according to Turkish government data and trade reports.
Caracas is using some proceeds from those sales to buyTurkish consumer goods, according to opposition legislatorCarlos Paparoni. Turkish pasta and powdered milk are now staplesin Maduro's subsidized food program. Trade between the twonations grew eightfold last year.(Reporting by Collin Eaton in Houston and Marianna Parraga inMexico City; additional reporting by Luc Cohen in Caracas;editing by Rosalba O'Brien)
