Posted on 07/12/2006 11:16:15 AM PDT by saganite
CARACAS, Venezuela (AP) -- 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. ADVERTISEMENT
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.
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.
It doesn't mention New York State. We've got one Citgo just down the street. I wonder what will happen to them.
What does this mean?
They Citgo stations that won't get gasoline will have to close? Or will they just buy bulk gasoline from someone else and continue operating?
That's OK. I haven't bought gas from Citgo stations ever since Hugo took over PDVSA and I drive as far as I need to in order to find another supplier. I bet I'm not the only one who does that. The question is, did Citgo jump or was it pushed?
You may be on to something. It is telling that CT and MA are not on the list. Looks like The Swimmer can still tank up his Olds on the way to the store to fill his own tank up with Chivas
I don't buy Citgo anything either. I'll pay a penny or two more just so I don't have to support the POS Chavez.
Too bad Florida is not on the list. Citgo stations are on the Florida Turnpike. Last long trip I made, I got off the turnpike to get gas instead of filling Chavez' pocket.
All of them except for IL.
I stopped buying Citgo immediately after Chavez was declared el presidente!
that's OK - they can start tapping the gas created from eating their microwave burritos...
I also drive by Citgo without looking at the price. I have a feeling there may be a lot more out there doing a "one-person" boycott than I realized. Kind of like the fall of lib newspapers.
just nationalize it like Hugo advised the bolivian sidekick to do with the NG production facilities.
Great. I avoided Citgo because they're owned by that commie Chavez. If he lets the USA company go, I might give them some business.
Citgo made $625 million after-tax profit in the US in 2004.
$439 million in 2003,
$180 million in 2002 and
$405 million in 2001
http://www.citgo.com/InvestorRelations/SECfilings.jsp
LOL
The Citgo stations will find another supplier. Just as a "boycott" against a "brand" of gasoline wouldn't work, because gasoline is gasoline.
I really think it's a sign that Hugo Chavez is "overextended". and he criticized the US for "comsumerism disease".
Let's nationalize these refineries and then sell them to the highest bidder.
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