Venezuelan heavy crude oil has been identified as having considerably higher emissions intensity than many other crude types. This characteristic contrasts with the current industry trend, where major oil producers are focusing on lower-carbon, higher-margin crude varieties. As a result, Venezuelan oil is less favored in the market for so-called “advantaged” barrels that meet stricter environmental and economic criteria.
The increased emissions associated with Venezuelan heavy crude pose challenges for companies aiming to reduce their carbon footprint while maintaining profitability. This dynamic affects Venezuela’s position in the global oil supply landscape, especially as buyers prioritize barrels with lower environmental impacts.
**Why this matters**
The oil industry is increasingly prioritizing crude oils that offer lower carbon emissions and higher economic returns. Venezuelan heavy crude’s higher emissions intensity may limit its competitiveness as companies and consumers shift toward cleaner energy sources and stricter climate regulations. This trend could influence investment decisions and trade flows in the global oil market.