I just reviewed an analysis on how oil quality varies drastically depending on its geographic origin, and the reality is quite interesting.

Basically, everything boils down to one number: the API gravity. This indicator measures how light or heavy the crude oil is, and believe me, the difference is huge. Water has an API of 10° as a reference. If the oil floats, its API is above 10°; if it sinks, it's below. The formula is simple: API = 141.5 / d - 131.5, where d is the specific gravity.

Now, here’s where it gets interesting. Light oil (API above 31.1°) is what everyone wants: less dense, more light fractions, easier to refine into gasoline and diesel. Brent and WTI, those famous oil futures, have an API of 40°. Saudi light crude reaches 50°, making it practically the gold standard of oil quality.

But then there’s heavy crude (API between 10° and 22.3°), which is much more complex to process. It requires deep refining and has higher viscosity. And this is where Venezuela enters the conversation in a quite particular way.

Venezuela’s Merey crude has an API of 15.9°, already considered heavy. But what’s really notable is Orinoco, with an API of just 8°. This means it’s heavier than water and sinks, which is rare in the industry. Large reserves, but a crude quality that significantly complicates extraction and refining.

For comparison, China’s Daqing, the most famous in China, has an API of 32.7°, classified as medium crude. The difference between these types is huge: when you sell crude per barrel, the conversion coefficient from tons can vary up to 27% depending on the API. It’s not just weight that matters, but the actual content.

In summary, oil quality is not uniform worldwide. Some countries have access to higher-quality crude, while others must work with reserves that are much more difficult to process. Venezuela clearly falls into the second group.