Can Venezuelan oil save India amid the Hormuz energy crisis? | Oil and Gas News
Venezuela Becomes India’s Third-Largest Crude Oil Supplier Amid Global Energy Crisis
As geopolitical tensions escalate, Venezuela has surged ahead to become India’s third-largest supplier of crude oil this month. Shipments from Venezuela have reportedly increased by nearly 50 percent compared to April, according to energy tracking data.
Venezuelan Acting President Delcy Rodriguez is expected to travel to India next week for discussions on oil sales, as confirmed by U.S. Secretary of State Marco Rubio. Venezuela, which possesses an estimated 303 billion barrels of oil—approximately 17 percent of global reserves—has long been hindered by years of U.S. sanctions and mismanagement, which have drastically affected its production capacity.
With ongoing conflicts in the Middle East tightening oil markets, the United States appears to be looking to reintegrate Venezuelan crude into global supply channels. This comes after the U.S. assumed control of Venezuela’s oil industry following the departure of former President Nicolás Maduro.
India has turned to Russian oil amid a global energy crisis exacerbated by the U.S.-Israel conflict with Iran. Washington has criticized India’s continued purchases of Russian crude, arguing that these revenues contribute to Russia’s military actions in Ukraine. Indian Prime Minister Narendra Modi previously indicated a shift away from Russian oil in favor of imports from the U.S. and Venezuela.
Rubio, who will be in India from May 23 to 26 for talks concerning trade, defense cooperation, and energy security, reaffirmed the U.S. commitment to bolstering India’s energy supplies. “We want to sell them as much energy as they’ll buy,” he stated. “We also think there are opportunities with Venezuelan oil.”
Analysts assert that U.S. efforts to reshape global energy supply chains aim to diminish Iran’s influence while solidifying control over Venezuela’s oil sector.
The ongoing crisis involving the Strait of Hormuz has severely impacted India’s oil imports. Nearly half of India’s crude oil typically arrives from Gulf producers through this critical shipping route. Elevated tensions around Iran have rendered the strait increasingly unsafe, complicating India’s ability to secure energy supplies.
In April, India resumed importing Iranian crude after a seven-year hiatus but has since halted those shipments due to a U.S. naval blockade. Additionally, supplies from Saudi Arabia, formerly India’s third-largest supplier, have dropped significantly from about 670,000 barrels per day to around 340,000 bpd.
Maritime security remains a pressing concern for India, with 13 Indian vessels stranded in the Gulf region. Recent incidents involving the seizure or attack of Indian-linked ships have raised alarms, and officials are cautious about sending more vessels into unstable waters.
Venezuela’s massive oil reserves have long been at the center of geopolitical interests. Following the nationalization of substantial segments of its oil industry in 2007, the country faced extensive sanctions from the U.S. to restrict its oil exports.
Chevron is currently the only major American oil company operating in Venezuela. Reports indicate that ExxonMobil is close to finalizing an agreement to re-enter the country, marking a significant shift in U.S.-Venezuela energy dynamics.
Rodriguez’s visit to India coincides with Rubio’s, highlighting the increasing importance of energy diplomacy as the U.S. navigates its interests involving both Venezuela and Iran.
India has maintained longstanding ties to Venezuela’s oil industry, with firms like ONGC Videsh entering the market as early as 2008. Despite facing challenges due to sanctions, India has resumed purchasing Venezuelan oil, which is particularly compatible with the country’s refineries.
So far this month, Venezuela has supplied India with approximately 417,000 bpd, a considerable increase from 283,000 bpd in April. This shift occurs as India’s total crude imports rise to around 4.9 million bpd during the ongoing global oil supply crisis, with both Rodriguez and Rubio hopeful for further negotiations to sustain the upward trajectory of oil exports.
