``That crude will come straight to the United States, and directly challenge light Saudi Arabian crude at a time when the market is going to be looking hard for incremental barrels,'' said Jay Saunders, oil analyst for Deutsche Banc.
The Sincor project comes as analysts worry that OPEC's strict supply caps on low-cost oil could hike energy prices and possible U.S. military action against oil exporter Iraq as part of its war on terrorism might disrupt global oil flows. ........
The first shipment of Sincor will go to TotalFinaElf's refinery in Port Arthur, Texas, this month. Sincor is expected to hit full production by the end of the year.
U.S. refiner Ultramar Diamond Shamrock Corp., a unit of Valero Energy Corp. has signed a three-year contract to take 45,000 bpd of the new ``Zuata Sweet'' crude to its Three Rivers refinery near Corpus Christi, Texas.
While analysts and oil companies warn that new oil terms put in place under Venezuela's new hydrocarbon's law may prevent further heavy oil investment, the Ministry of Energy and Mines said the tar belt would provide stable supply for decades.
``We have oil in the Orinoco to last for the next 35 to 40 years,'' said a Ministry spokesman. [End Excerpt]
Chavez Vows to Fight Oil Strike***He urged thousands of followers not to be provoked into violence by the opposition and to be alert to conspiracies against his 3-year-old government…..Bands of Chavez supporters known as "Bolivarian Circles" clashed with strikers outside PDVSA headquarters, and at least 18 people were injured, many of them Chavez supporters, police officers at the scene said.***