Bloomberg Surveillance · Wednesday, September 2, 2026
Stephen Shulker of The Shaw Group dismisses the idea of using Venezuela's oil reserves to replenish the Strategic Petroleum Reserve (SPR) as 'pure fantasy.' He explains that Venezuelan oil is too heavy and viscous for the SPR's logistical capabilities, requiring significant upgrading processes not available in storage facilities.
“Washington is treating Venezuela's enormous reserves as though they are immediately available barrels. They are not.”
“Well, the notion that we are going to use Venezuelan oil to plug the SPR is pure fantasy. From a technological standpoint, from an engineering standpoint, can it happen? Yes. Realistically, is it going to happen? Absolutely not. Venezuelan oil is the highest viscous. heaviest, densest oil in the world. The SPR logistically cannot handle that oil.”
“So the notion that we're going to use Venezuelan oil to replenish the SPR is pure fantasy. It will not happen.”