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.
Another convert!
I had been boycotting Citgo too! hehehehe!
Well said.
If you take Kirkwood north from my place, right before you hit I-10 you will see a Shell on your right and a Citgo on your left, literally across the street from one another.
The Shell is nice, clean, bright, well-lit, and almost always busy.
The Citgo has two broken windows covered in plywood, and the plywood is covered in graffiti. There are more lights out than on. Four of the eight gas pumps have OUT OF ORDER signs on them. The only people I've ever seen at the Citgo are of the type that instantly make one think "thug."
I know exactly where you're talking about. I've been to that Shell station many times. (And that Starbuck's right there in the parking lot next to it.)
I've never been to that Citgo. It always kind of gave me the creeps.
Most of the stations are owned by independent operators. The operators will just put up new signs from another supplier and continue selling gas.
Same Pakistani, different gas.
That Starbucks sees me every Saturday during rehearsal and faire. They always giggled at my Indian getup. Wonder what they're gonna say about Her Royal Highness Gina Montana?
Yeah, Command driven economies work so well for the Russkies, the Cubans etc we should repeat their failure in the US. What an utterly dumb idea.
You won't get to the water until your tank is mostly dry. Venezuelan crude is about as low grade as you get. Hence the most likely reason for the knocking.
I had no idea that 7-11 sold gas. I've never seen one with gas pumps and we have hundreds of them in the area.
This means I can buy Citgo again.
Don't know what area you are in but most 7-11's in Washington State sell Citco gas.
I think the boycott worked.
I know most folks hate $75/bbl for oil, but for some of us, it's a Godsend.
I live in Michigan. There are thousands of 7-11s here - I've never seen one that sells gas. Maybe they do in the rural areas, but I've never seen one.
There are 14 states that are affected in some way and 10 are red states, but I don't see what that has to do with it unless you believe that it is some sinister plot against red states having gas. I never thought about that, but you seem to be thinking that. Do you think it is the dems or Venezula? I am just curious on your thinking on this.
How awkward. All the gas stations on the naval facilities here in Tidewater VA, are Citgo.
No worries. Virginia is not affected. Actually Citgo is sold on most of the naval commands in the states.
glad to be part of it here in Indiana! and also BP for price fixing on propane and screwing my winter heating bill
http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=google&guid=%7BBC74442F-CB8C-46C6-BA74-19FC456FFF91%7D&keyword=
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.