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.
Just closing the gas stations America won't close.
Now, I wonder how many of those targeted states are red states...
So I am expecting the Dems to come out and praise this move.
Good riddance, commies!
What happens to the CITGO sign in Kenmore Sq.?
Good riddance. Maybe one of the gas companies who don't buy from SA or Venezuela will buy up the stations.
You mean my boycott is working?
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....
I can't remember the last time I went to a Citgo station..
That's going to give 7-11 a headache. Most of them sell Citgo gas.
Time for a change, perhaps Glock should take the space for a nice ad.
ROFL!
susie
How awkward. All the gas stations on the naval facilities here in Tidewater VA, are Citgo.
Well, I guess this is one way for Chavez to satisfy some of his other futures contract deficiencies.
Exactly. They aren't selling because Americans aren't buying. Stay the course America!
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.
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.
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.
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.