Chavez to Halt Citgo Gas Sales in U.S.

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Wednesday, July 12, 2006 7:50 p.m. EDT Chavez to Halt Citgo Gas Sales in U.S. Venezuela-owned Citgo Petroleum Corp. has decided to stop distributing gasoline to some 1,800 U.S. stations, shedding a lackluster segment of its business while forcing the owners of those stations to find other suppliers. While it may create some logistical headaches for gasoline retailers in the short term, the move should not have any impact on the nation's overall fuel supply. Citgo, which is wholly owned by Venezuela's state oil company, currently has to purchase 130,000 barrels a day from third parties in order to meet its service contracts at 13,100 stations across the U.S. This is less profitable than selling gasoline directly from its refineries. Instead, the Houston-based company has decided to sell to retailers only the 750,000 barrels a day that it produces at three U.S. refineries in Lake Charles, La., Corpus Christi, Texas and Lemont, Ill., according to a statement late Tuesday. That will mean that over the next year Citgo will cease distributing gasoline in 10 states and stop supplying some stations in four additional states, Citgo spokesman Fernando Garay said Wednesday. Venezuelan President Hugo Chavez has long claimed that parts of Citgo's business produce losses for Venezuela and constitute a subsidy for the U.S. economy. Oil Minister Rafael Ramirez has also charged that Citgo isn't profitable enough and that its parent, state-owned Petroleos de Venezuela SA, or PDVSA, could at some point sell off some of the company's refineries. However, in a sign of the apparently lucrative relationship between the two companies, PDVSA announced Wednesday that it has so far earned $400 million in dividends this year from Citgo. The states where Citgo will stop selling gasoline are: Iowa, Kansas, Kentucky, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma and South Dakota. A limited number of stations in Illinois, Texas, Arkansas and Iowa will also be affected. Venezuela is the world's fifth-largest oil exporter and the U.S. is its top buyer. The United States relied on Venezuela for about 11 percent of its oil supply in 2005.
 

JHZR2

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We arent particularly close to any of the US refineries... but Citgo sure does beat the others on price around here... JMH
 
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I have not used or purchased Citgo products in several years for the very reason they are owned by a a third world government that needs properly dealt with. So many third world idiots so little time. Problems like chavez should be "fixed" covertly before people like me know their names. I am firmly convinced the world is a safer place without certain people.
 

JHZR2

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Does Nicaragua actively fund religious fundamentalist terrorist organizations who hope to destroy the US, for hopes of performing their duties and getting their ten virgins? If not, theyre the lesser evil, IMO. We need to get our oil from somewhere... otherwise how are we going to feed our SUVs??? JMH
 

Win

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Ironic that they will no longer sell gasoline in Oklahoma, as the company started in Tulsa, as did so many of the oil companies. I used to buy Mystik motor oil, which started in OKC (Oklahoma City) as Cato Oil and Grease, and was rcently acquired by Citgo, but I no longer buy their product or Citgo gas or oil products, because of Chavez. I am proud that I have contributed in a small way to Venezuela and Chavez losing money on the Citgo deal.
 
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Isn't the 10 virgin nonsense a muslim thing? Are the fundamentalist terrorist organizations in nicaragua muslim? Or am I confusing my fringe religious sects? As for feeding suv's (I know your comment was snide but I will ignore) I think we should have colonized a few places we have defeated in battle over the years. To the victors go the spoils IMO. Taking over the resources in Iraq 15 yrs ago would be pretty handy at the moment but hey thats just my opinion.
 
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Totally agree with Milwaukee. We've done more for that country in the last 2 years than they've done for themselves since creation. If we don't end up with one sweet "oil deal" out of this situation then someone has totally dropped the ball. As for Chavez.....brilliant move Senyor! (sorry, dont know how to put a tilde over the N) Oil is your biggest export and the US is your biggest buyer.....mui bueno senior!!
 
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quote:
Ah ..he knows we can't handle any more "trouble" ..so he's rattling a little.
We can handle all the trouble anyone wants to dish up, especially that ***-pot.. With airpower, ALL overthrows are possible, especially OUR airpower. No rule says boots have to hit the beach after we take em down. No one on earth can hande it. We don't have to civilize them, only leave them with no lights, water and TV. Zittt-Go is only sold here at a few 7-11 stores, a local (more or less) convenience store chain some have heard of, and some have not.. No great loss, those stores will become Shell, Exxon, or Sheetz..
 
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Yes, its a Muslim religion idea that terrorists who are killed go to heaven where they presented with a number of virgins (the number varies depending upon the deluded fantasies of the Muslim sect involved). Nicaragua and Venezuela are Catholic countries. Neither has terrorists, guerillas, or other similar malcontents of the Muslim persuasion. How sad that a religion is so perverted that it teaches that terrorists who kill innocent people are awarded with innocent young virgins to deflower when they are killed while committing their terrorist acts. No wonder the Arab nations are wallowing in barbarism and backwardness.
 
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