As the U.S. takes control of Venezuela’s oil flows following the capture of Nicolas Maduro, investors are sorting out which drillers stand to gain most from accessing the world’s largest reserves. But while upstream companies eye long-term riches, it’s the downstream refiners that are poised to capture immediate profits with minimal risk.
Venezuelan crude is heavy and sour, requiring specialized processing that U.S. facilities along the Gulf of America excel at. Refiners won’t face the billions of dollars in upfront costs or years of infrastructure rebuilding that the drillers will. This low-risk setup makes refiners the smart play for investors and is why savvy ones should consider adding Marathon Petroleum (MPC) to their portfolios: It is perfectly positioned to handle surging Venezuelan imports without the headaches.
This post originally appeared at Money Morning.