Question for the refinery engineers - I keep reading that Venezuelan crude needs to be processed in special refineries, and that normal refineries can't or aren't used to process it. Does this still hold true if you are willing to accept a lower grade end product? For instance, if you were willing to burn most of the crude as bunker oil for ships or power plants, rather than process it to motor vehicle fuel? Or is it a matter of corrosive contaminants, too-high viscosity, etc., that physically preclude processing in a normal refinery? Or both?

Both.
Venezuelan oil is heavy(needs hydrogen), and has lots of vanadiun(toxic metal) and sulfur in it. These impurities are bad for people and engines.
Gasoline and jet fuel are the most profitable products, these is what oil refineries want to make.

Here's what EIA says about the 2003 cutoff of Venezuelan crude.

http://www.eia.doe.gov/pub/oil_gas/petroleum/feature_articles/2003/venez...