• Texas Refinery Is Saudi Foothold in the U.S. - NYTimes.com
    http://www.nytimes.com/2013/04/05/business/texas-refinery-is-saudi-foothold-in-us-market.html?_r=0

    The giant Motiva oil refinery, which just completed a $10 billion expansion that makes it the largest processor of gasoline, diesel and other petroleum products in the United States, is owned by Saudi Aramco and Royal Dutch Shell in a 50-50 partnership.

    ...the Saudis have helped the United States and the global economy by increasing exports to moderate oil prices and top up worldwide supplies as the West applies sanctions against Iran. Saudi Arabia has been able to tap into its spare capacity, mostly lower-quality heavy sour crudes, to stretch its exports. Most refineries cannot easily process those crude oils, but the expanded Motiva refinery here can, freeing other Saudi grades for other markets.

    “The Saudis are securing a home for their heavy crude,” said Fadel Gheit, a senior oil analyst at Oppenheimer & Company. “But there is no question that security is also part of the equation. In Saudi Arabia, oil and politics always mix.”

    ...several experts say that Motiva guarantees that a large amount of Saudi oil will be imported. They also say that Saudi Aramco discounts Saudi crude sales to Motiva through various accounting adjustments and credit lines with generous terms.

    “The Saudis are going to have to keep discounting the crude for the joint venture to buy it,” said David L. Goldwyn, who served as the State Department’s coordinator for international energy affairs in the first Obama administration. “That makes it probably first a Saudi geopolitical asset by guaranteeing some market share even at a discounted price.”