US Secretary of State Marco Rubio has said he would encourage Reliance Industries to refine more Venezuelan crude oil, bringing attention to the technical and economic challenges of processing some of the world's heaviest oil grades.

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Reliance operates the Jamnagar refining complex in Gujarat, one of India's major refining hubs. Its ability to process a wide range of crude grades makes it relevant to discussions about alternative oil supplies amid disruptions to global energy markets.

Venezuela's main export blend, Merey, is classified as heavy and sour crude. It typically has an API gravity of 15 to 18 and contains around 2% to 3% sulphur. Heavy crude is dense and leaves more low-value residue during initial processing, while its high sulphur content requires additional treatment.

Refineries designed for lighter crude cannot necessarily process these grades efficiently without specialised equipment. Complex facilities use units such as cokers, hydrocrackers and desulphurisation systems to convert heavy residues into higher-value fuels, including petrol and diesel, while removing sulphur. Reliance says its Jamnagar complex has a Nelson complexity index score of 21.1 and has processed more than 216 crude grades.

Global supply disruptions have increased the importance of refinery flexibility. Sanctions affecting Venezuelan and Russian oil, alongside conflict-related interruptions to shipments through the Strait of Hormuz, have forced refiners to reconsider their crude supplies.

India's refining industry has traditionally processed oil from West Asia, with Russian crude becoming a much larger part of its imports in recent years. However, Venezuelan crude could offer another source of supply for facilities equipped to handle it.

Other Indian refineries may also be capable of processing heavy grades, including facilities at Bina, Kochi and Visakhapatnam, according to commodity-data firm Kpler as cited in the supplied report.

Ultimately, the economics will depend on crude prices, transport costs, refinery capabilities and the availability of suitable supplies. Heavy oil is not automatically cheaper once processing and logistics costs are considered.