Phillips 66 announced that its two Gulf Coast refineries can now process up to 100,000 barrels per day of Venezuelan crude, expanding the company’s feedstock flexibility as supply becomes available.
The move comes as Venezuelan oil production is expected to rise following recent political changes, and the Gulf Coast plants are already equipped to handle heavy crude. By adding Venezuelan crude, Phillips 66 can diversify its crude mix and potentially capture higher‑margin feedstocks, strengthening its competitive position in the region.
CFO Kevin Mitchell confirmed the capability during the call, noting that the company is ready to take advantage of supply opportunities as they arise. The expansion fits into Phillips 66’s broader strategy to optimize refining operations and enhance value across its downstream chain.
While the company has not yet reported financial results tied to this expansion, analysts view the capability as a strategic advantage that could improve refining margins if Venezuelan crude prices remain favorable. The company’s recent capital budget for 2026 includes significant investment in refining and midstream assets, underscoring its commitment to growth.
The announcement is a material operational milestone that could influence Phillips 66’s competitive position on the Gulf Coast, where feedstock flexibility is a key differentiator. Investors will watch how the company leverages this capability in future earnings reports.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.