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Citgo to Stop Selling Gas to U.S. Stations (Venezuela owned)
Yahoo business/AP ^ | July 12, 12:31 pm ET | staff

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.


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS: chavez; energy; oil; venezuela
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1 posted on 07/12/2006 11:16:19 AM PDT by saganite
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To: saganite

Just closing the gas stations America won't close.


2 posted on 07/12/2006 11:17:40 AM PDT by Lazamataz (Islam is a perversion of faith, a lie against human spirit, an obscenity shouted in the face of G_d)
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To: saganite

Now, I wonder how many of those targeted states are red states...


3 posted on 07/12/2006 11:18:26 AM PDT by coconutt2000 (NO MORE PEACE FOR OIL!!! DOWN WITH TYRANTS, TERRORISTS, AND TIMIDCRATS!!!! (3-T's For World Peace))
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To: saganite
Chavez has long claimed that parts of Citgo's business produce losses for Venezuela and constitute a subsidy for the U.S. economy.

So I am expecting the Dems to come out and praise this move.

4 posted on 07/12/2006 11:18:36 AM PDT by Darkwolf377
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To: saganite

Good riddance, commies!


5 posted on 07/12/2006 11:19:06 AM PDT by TommyDale (Stop the Nifongery!)
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To: Lazamataz

What happens to the CITGO sign in Kenmore Sq.?


6 posted on 07/12/2006 11:19:06 AM PDT by massgopguy (massgopguy)
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To: saganite

Good riddance. Maybe one of the gas companies who don't buy from SA or Venezuela will buy up the stations.


7 posted on 07/12/2006 11:20:36 AM PDT by butternut_squash_bisque (The recipe's at my FR HomePage. Try it!)
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To: saganite

You mean my boycott is working?


8 posted on 07/12/2006 11:20:46 AM PDT by Unam Sanctam
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To: saganite

Powder..Patch..Ball FIRE!

The Citgo near me just rebranded to another company.... I'm VERY pleased to see them having to walk away from half of their market....


9 posted on 07/12/2006 11:21:03 AM PDT by BallandPowder
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To: saganite
This doesn't affect me I NEVER buy citgo gas.

I even fooled a couple liberal friends into boycotting citgo by telling them that Cheny used to be on the board.

LMAO
10 posted on 07/12/2006 11:22:15 AM PDT by xpertskir
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To: saganite; All

I can't remember the last time I went to a Citgo station..


11 posted on 07/12/2006 11:22:21 AM PDT by KevinDavis (http://www.cafepress.com/spacefuture)
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To: saganite

That's going to give 7-11 a headache. Most of them sell Citgo gas.


12 posted on 07/12/2006 11:22:49 AM PDT by scooter2
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To: massgopguy
What happens to the CITGO sign in Kenmore Sq.?

Time for a change, perhaps Glock should take the space for a nice ad.

13 posted on 07/12/2006 11:22:55 AM PDT by 1Old Pro
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To: xpertskir

ROFL!
susie


14 posted on 07/12/2006 11:23:03 AM PDT by brytlea (amnesty--an act of clemency by an authority by which pardon is granted esp. to a group of individual)
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To: saganite

How awkward. All the gas stations on the naval facilities here in Tidewater VA, are Citgo.


15 posted on 07/12/2006 11:23:16 AM PDT by stuartcr (Everything happens as God wants it to.....otherwise, things would be different.)
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To: saganite

Well, I guess this is one way for Chavez to satisfy some of his other futures contract deficiencies.


16 posted on 07/12/2006 11:23:48 AM PDT by Roccus
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To: Unam Sanctam

Exactly. They aren't selling because Americans aren't buying. Stay the course America!


17 posted on 07/12/2006 11:24:22 AM PDT by sarasota
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To: stuartcr

I'm betting that another provider will quickly buy the facilities (at a discounted rate, I hope!) and step in. You shouldn't be long without 'em.


18 posted on 07/12/2006 11:24:39 AM PDT by Teacher317
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To: saganite

Our number one national priority should be replacing oil with something else. Our worst enemies are who we depend on for our energy, and the average guy pays for it. We need to tell all of these third world idiots that they can keep ALL of their oil. If they hate us, they don't need to see any money at all from us.


19 posted on 07/12/2006 11:24:39 AM PDT by mysterio
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To: xpertskir
"I even fooled a couple liberal friends into boycotting citgo by telling them that Cheny used to be on the board."

That is one of the funniest things I have ever read here! LOL! Seriously, the only time my car ever 'pinged' was on Citgo. I suepected them of watering it down.

20 posted on 07/12/2006 11:24:55 AM PDT by TommyDale (Stop the Nifongery!)
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To: saganite

It doesn't mention New York State. We've got one Citgo just down the street. I wonder what will happen to them.


21 posted on 07/12/2006 11:25:32 AM PDT by mass55th (Courage is being scared to death - but saddling up anyway~~John Wayne)
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To: saganite

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?


22 posted on 07/12/2006 11:25:39 AM PDT by soccer_maniac (Fine employers $100,000 for every illegal employee they hire-> millions of illegals will self-deport)
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To: saganite

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?


23 posted on 07/12/2006 11:26:34 AM PDT by livius
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To: massgopguy
What happens to the CITGO sign in Kenmore Sq.?

Pardon my ignorance...
But is that one the CITGO sign that's often seen in the "backdrop" scene
behind guests on FOX News?
24 posted on 07/12/2006 11:26:36 AM PDT by VOA
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To: saganite
"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."

No Communist enemy country should be allowed to own any company within the United States. Seize this company and DO NOT allow any of its profit to go to the Communist Dictator.
25 posted on 07/12/2006 11:26:54 AM PDT by YOUGOTIT
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To: coconutt2000

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


26 posted on 07/12/2006 11:27:07 AM PDT by Range Rover (The Walrus was Paul Harvey)
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To: xpertskir

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.


27 posted on 07/12/2006 11:30:55 AM PDT by Ouderkirk (Don't you think it's interesting how death and destruction seems to happen wherever Muslims gather?)
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To: saganite

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.


28 posted on 07/12/2006 11:31:00 AM PDT by debg
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To: coconutt2000

All of them except for IL.


29 posted on 07/12/2006 11:31:09 AM PDT by xrp (Fox News Channel: MISSING WHITE GIRL NETWORK)
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To: saganite

I stopped buying Citgo immediately after Chavez was declared el presidente!


30 posted on 07/12/2006 11:32:23 AM PDT by BerlinStrausbaugh (If life was fair, Elvis would be alive and all the impersonators would be dead.)
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To: scooter2
That's going to give 7-11 a headache. Most of them sell Citgo gas

that's OK - they can start tapping the gas created from eating their microwave burritos...

31 posted on 07/12/2006 11:33:22 AM PDT by chilepepper (The map is not the territory -- Alfred Korzybski)
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To: livius

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.


32 posted on 07/12/2006 11:33:45 AM PDT by soloNYer
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To: YOUGOTIT
No Communist enemy country should be allowed to own any company within the United States. Seize this company and DO NOT allow any of its profit to go to the Communist Dictator

just nationalize it like Hugo advised the bolivian sidekick to do with the NG production facilities.

33 posted on 07/12/2006 11:34:06 AM PDT by Ouderkirk (Don't you think it's interesting how death and destruction seems to happen wherever Muslims gather?)
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To: saganite
Time for the return of.....


34 posted on 07/12/2006 11:34:11 AM PDT by muleskinner
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To: saganite

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.


35 posted on 07/12/2006 11:37:04 AM PDT by Recovering_Democrat (I am SO glad to no longer be associated with the party of "dependence on government"!)
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To: saganite; All

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


36 posted on 07/12/2006 11:37:07 AM PDT by soccer_maniac (Fine employers $100,000 for every illegal employee they hire-> millions of illegals will self-deport)
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To: xpertskir
I even fooled a couple liberal friends into boycotting citgo by telling them that Cheny used to be on the board.

LOL

37 posted on 07/12/2006 11:37:35 AM PDT by American Quilter (Equal laws protecting equal rights...the best guarantee of loyalty and love of country. -- Madison)
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To: soccer_maniac

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".


38 posted on 07/12/2006 11:39:20 AM PDT by griswold3 (Ken Blackwell, Ohio Governor in 2006- No!! You cannot have my governor in 2008.)
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To: saganite
Don't bother me in the least. I haven't spent a penny in a Citgo station since this nut-job seized power down there.
39 posted on 07/12/2006 11:40:31 AM PDT by Ditto
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To: saganite
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.

Let's nationalize these refineries and then sell them to the highest bidder.

40 posted on 07/12/2006 11:41:50 AM PDT by Zuben Elgenubi
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To: xpertskir

HAHAHAHAHAAHHAHAHHAAAAA TOOOOOO DARNED FUNNY!!!!!


41 posted on 07/12/2006 11:42:09 AM PDT by mpackard (The doc says "then dont do that")
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To: massgopguy
They aren't pulling out of Mass. That state is too much like their own country.
I wonder if Venezuela approves of gay marriage?
42 posted on 07/12/2006 11:46:05 AM PDT by Havok (I like meat, guns, and comic books. Am I a bad conservative?)
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To: saganite
Citgo to Stop Selling Gas to U.S. Stations

THAT'LL show us a thing or two!!!
43 posted on 07/12/2006 11:49:59 AM PDT by DustyMoment (FloriDUH - proud inventors of pregnant/hanging chads and judicide!!)
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To: saganite
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.

I wonder where these refineries are located? Only a fool would buy facilities inside Venezuela. Chavez would simply nationalize them.

44 posted on 07/12/2006 11:51:14 AM PDT by Ben Mugged
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To: saganite
Venezeula will stop selling Citgo gasoline in some US states

In other news... America doesn't really give a rats @$$ because every other oil company has decided to step up distribution completely removing Citgo from our borders...


12 weeks later...

Tonight we go live to Venezeula where dictactor Chavez is crying for forgiveness of the USA after his country became bankrupt.
45 posted on 07/12/2006 11:51:31 AM PDT by Element187
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To: saganite

Breaking news from the "Cutting off your nose to spite your face" Department.


46 posted on 07/12/2006 11:52:45 AM PDT by Arm_Bears (If the people lead, the leaders will follow.)
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To: soccer_maniac
The Citgo stations that won't get gasoline will have to close?

Nah. According to the article: 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.

So the gasoline is there, available in the market. Instead of Citgo going out into the market and buying in order to supply the stations, it just looks as if the stations will have to find another way to get it themselves.

47 posted on 07/12/2006 11:56:57 AM PDT by RedWhiteBlue
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To: Recovering_Democrat

Maybe they should seize the Citgo assets and sell them to Petro-Canada. The commie reaction to having their assets sold to a formerly state-owned oil company (privatized in the 1980s) would be priceless :-D


48 posted on 07/12/2006 11:58:42 AM PDT by Squawk 8888 (Yay! It's Riding Season!)
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To: saganite
I had no idea that Citgo was state owned by Chavez! Citgo, in the largest metro area in Florida (Tampa/St. Petersburg/Clearwater/Sarasota) is one of the largest gasoline retailers around. They are attached to every corporate owned 7-11 and are only competed with (on its level) with Race Trac and Hess. I guess my 7-11 card is useless now because I will never support that thug.
49 posted on 07/12/2006 12:00:12 PM PDT by rodeocowboy (Bush is our Carter.)
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To: RedWhiteBlue

They'll buy from independent refiners.


50 posted on 07/12/2006 12:01:43 PM PDT by Eric in the Ozarks (BTUs are my Beat.)
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