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Marco Rubio said Reliance Industries’ refining capabilities and investments in the US could support closer energy cooperation between India and the US, including potential opportunities involving Venezuelan crude
Reliance Industries’ refining strength could give it a bigger role in changing global oil trade, as the US looks to deepen energy cooperation with India and expand supplies from the Western Hemisphere, including Venezuela.
US Secretary of State Marco Rubio said the company could help India diversify its energy supplies and pointed to its investments in refining capacity in the United States as another area for cooperation. He highlighted Reliance’s refining capabilities ahead of his visit to the company’s Jamnagar refinery in Gujarat on Wednesday.
“Reliance is a very important company and has extraordinary capacity to refine energy,” Rubio said in an exclusive interview with Network18 Group Editor-in-Chief Rahul Joshi.
“Petroleum is useless if you don’t refine it into a usable product,” he said, explaining why the company’s capabilities matter to Washington’s plans for closer energy cooperation with India.
Rubio said Venezuela’s rising energy production could create opportunities for India, which has a history of refining some of its crude oil. He also said Reliance’s investments in US refining capacity made it a useful partner for discussions on energy supplies from the Western Hemisphere.
“We think there’s an opportunity for them to continue to help India diversify its supply of energy,” Rubio said.
More from BusinessWhy Reliance’s refining capacity matters
Reliance operates the Jamnagar refining complex in Gujarat, one of the world’s largest single-site refining facilities. Its ability to process different grades of crude oil gives the company flexibility when sourcing supplies from international markets.
Crude oil varies in quality. Some varieties are lighter and contain less sulphur, while others are heavier and require more complex processing. Refineries equipped to handle a wide range of crude grades can choose between different supplies depending on prices, availability and the products they expect to produce.
This flexibility can become valuable when geopolitical disruptions change the availability or cost of crude from major suppliers.
Rubio also highlighted Reliance’s investments in refining capacity in the US, saying the company had invested in increasing American refining capacity. He said this made it worthwhile to visit its operations and discuss ways to work more closely, particularly on energy from the Western Hemisphere that could be refined in the US.
“I think that’s helpful to India, but it’s also helpful to us,” he said.
Can Venezuelan crude offer a new opportunity?
Venezuela is an important potential source of heavy crude oil, some grades of which require specialised refining equipment. Reliance’s ability to process different varieties of crude could make such supplies relevant to its sourcing decisions.
Rubio said Venezuela was increasing its energy production and noted that India had a long history of refining some of its oil. His comments suggest that the US wants to explore how Indian refining expertise and investments could support a broader energy relationship.
However, any increase in Venezuelan crude purchases would depend on the availability of supplies, commercial terms and applicable sanctions and other restrictions.
Refiners assess crude on the basis of its delivered cost and the value of the products they can produce from it. A discounted cargo may look attractive, but higher shipping, insurance or processing costs can reduce the benefit.
A change in sourcing would also not automatically mean that Reliance would stop buying Russian crude. The company would need to compare the economics of different grades and suppliers before making purchasing decisions.
What it means for India’s oil industry
India depends heavily on imported crude oil, making international prices and supply disruptions important for its energy costs and trade balance. A wider range of suppliers can help refiners respond to changing market conditions, particularly when geopolitical tensions affect established trade routes.
Reliance’s refining capacity and international investments could give it a role in connecting energy suppliers in the Western Hemisphere with markets in India and the US. Yet the scale of that opportunity will depend on actual commercial agreements rather than diplomatic statements alone.
Rubio’s comments also come as India and the US work towards a trade agreement. In the same interview, he said the deal was “incredibly close” and that the two sides expected to resolve the remaining technical details “in a matter of weeks, not months”.
While the trade negotiations and energy discussions are separate, progress in the broader relationship could create more room for cooperation between companies in the two countries.
(Disclosure: Firstpost is a part of the Network18 Group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)
