PASCAGOULA, MISSISSIPPI — Chevron's refinery in Pascagoula, Mississippi, has begun processing Venezuelan crude oil delivered by the tanker Minerva Gloria, which is docked at a wharf in the Mississippi Sound near the Gulf of Mexico. The 820-foot vessel carried 400,000 barrels of crude oil from Venezuela to the United States.

The Pascagoula facility is Chevron's largest operation in the U.S. Chevron is the only American company with oil-extracting capabilities in Venezuela, and it can extract its own Venezuelan oil, process it at the Mississippi refinery and deliver it directly to U.S. consumers.

"It's a big deal not only for Chevron but the entire Gulf region," said Tim Potter, director of the Pascagoula refinery. Potter added that despite the availability of local supply for the facility, overall crude pricing has risen because it is determined by world markets rather than regional supply conditions.

"It's a pretty big incentive for us to run it. The refinery was really designed, and we invested in the refinery, to run heavy oils like from Venezuela," Potter said.

Nearly 70 percent of U.S. refining capacity is optimized for heavier crude oil, the type that Venezuela produces. There are 132 oil refineries operating across the country that run on a mix of crude oils, and Gulf Coast plants such as the Pascagoula facility are among those specifically configured to handle heavier grades.

Andy Walz, president of downstream, midstream and chemicals at Chevron, said the company currently imports an average of 250,000 barrels of Venezuelan crude oil per day. "We can take that up another 50% so call it somewhere around 350,000 to 400,000 barrels a day of just the Chevron share of our position in Venezuela," he said.

Walz said the additional Venezuelan supply is not currently affecting domestic fuel prices. "When things do get back to normal, that additional supply out of Venezuela will actually translate to lower prices for Americans," he said. "So it will in the future, but it isn't having an impact now," he added.