Valero, ConocoPhillips top Iraqi crude importers

eastbay.bizjournals.com 2:14 PM PST Friday  Alan Doyle  

Three of the five oil companies with East Bay plants are the top importers of crude from Iraq, according to U.S. Department of Energy statistics for January, the most recent month for which figures are available.

A fourth refiner, San Ramon-based ChevronTexaco Corp. – which operates the East Bay's largest refinery in Richmond – said it is suspending purchases of Iraqi crude for its U.S. refineries. The nation's second-largest oil company said the decision was based on market conditions and uncertain continuing supplies, not because of political fallout as President Bush prepares to wage war on Iraq. ExxonMobil Corp., the nation's largest refiner, also said it had stopped loading Iraqi crude for U.S. refineries.

The three refiners still buying Iraqi crude through middlemen under terms of the embargo imposed by the United Nations in 1991 after the last war with Iraq are Valero Energy Corp., ConocoPhillips and Motiva Enterprises LLC, a joint venture between the Royal Dutch/Shell Group and Saudi Aramco. Valero and ConocoPhillips previously said none of the Iraqi crude was bought for their refineries in Benicia and Rodeo. Motiva doesn't do business in the West.

The Department of Energy reported Valero, the nation's largest independent, was the biggest U.S. purchaser of crude in January, importing 140,000 barrels per day, up from 48,000 in the fourth quarter of 2002. ConocoPhillips imported 101,000 bpd and Motiva was the fifth-largest importer at 65,000 bpd, according to the federal agency.

Total U.S. imports of Iraqi crude rose to 600,000 bpd from 366,000 bpd in December, according to the DOE. Much of that increase was thought to be attempts to offset shortages caused by the oil strike in Venezuela, normally the fifth-largest exporter of crude to the United States.

Sign up to receive free daily business updates by email every weekday afternoon. Use Search Watch to watch for related topics, companies. Receive free Industry News via email. Choose from 46 different industries.

Venezuela said has boosted production to 2.1 million bpd since the strike ended last month. Production had dropped as low as 390,000 bpd, forcing refiners to scramble for other sources of crude and persuading other OPEC nations, including Saudi Arabia and Nigeria, to increase production.

Overall, Saudi Arabia remained the top source of U.S. imports in January, with 1.82 million bpd, or 21 percent of the total 8.55 million bpd total, according to the DOE. Production rose from 1.15 million bpd in December.

Canada remained second at 1.62 million bpd, up from 1.49 million bpd in December; Mexico dropped to 1.57 million bpd from 1.73 million bpd. Nigeria remained fourth, at 798,000 bpd, up from 625,000 bpd in December.

Reach Doyle at adoyle@bizjournals.com.