Posted on 06/27/2007 8:40:44 AM PDT by BBell
ELKHART -- When Yoder Oil company switched to Citgo-brand oil in the early 1990s, the move was in part a political decision.
Citgo is owned by the national government of Venezuela, explained Kent Yoder, chief executive of the Elkhart-based Yoder Oil company, and his company wanted to invest in oil produced in the Western Hemisphere rather than send its business to the Middle East. But that was then. Before Venezuelan President Hugo Chavez called President Bush "the devil" during a September address at the United Nations.
Those remarks, plus complaints about Chavez's handling of human rights in Venezuela, led to an Internet-born boycott of Citgo gas in the United States,
Gerry Yoder, Yoder Oil's founder, said the company had received complaints from customers about the company's association with Citgo.
On April 1, Yoder switched from Citgo to American-owned Marathon for mostly business reasons, though there were political undertones for the decision.Brett Yoder, president of the family-owned business, said a few people were not happy with the company's association with Citgo.
"We've gotten compliments for switching from people who appreciate the move," Brett Yoder said in reference to the April 1 switch. "For the most part it's been a good business decision for us."
He said he preferred Marathon over Citgo because of the benefits that come with Marathon gasoline, like credit card discounts.
"In the world today, you've got to set yourself apart," he said. "We just felt like Marathon was the right image for us."
Changing oil brands is not uncommon, said Fernando Garay, spokesman for Houston-based Citgo.
Scot Imus, executive director of the Indiana Petroleum Marketers and Convenient Stores Association, agreed.
Imus said gas boycotts like the one against Citgo end up hurting local retailers more than they hurt the corporations.
"I think the boycotts are certainly misplaced," Imus said. "What they're boycotting is someone who's been in the community for a long time. Once we start down that list, are we going to boycott fuel coming from all countries that are not run by good people? It's awfully tough to do that, and I don't think it's fair to single out a company."
Yoder Oil still sells some Citgo products, including most of its industrial lubricants, a cornerstone of its business. They also sell lubricants from other brands, in case some customers are not comfortable buying Citgo products.
"They have a democratic society down there," Kent Yoder said of Venezuela. "They voted on someone (Chavez) that not necessarily everybody agrees with. It's not very different in this country. We've had presidents, as you know, that not all of us have agreed with. They have a different political persuasion, and some people in this country support what he's saying, and some don't."
The Yoders say they just want to serve the customers as best they can.
Pure propanganda. After reading several stories this am that are stating several companies are leaving VZ because of Chevez's recent takeover me thinks they might be in big trouble
The Citgo refineries will supply unbranded stations. Other oil companies have done well using this sales strategy.
Exxon is bailing out of Venezuela. So is another big oil company. Too bad they are having problems finding big new fields, but weighing the pluses and minuses it comes out this way.
I worked for an independent refiner for 16 years. Believe me when I say that you can sell out via exchanges, the pipelines and via independents. A half cent or 70 points will take the business.
I think any US company that keeps large capital investments in Venezuela is being reckless with its shareholders’ investments.
Exxon and ConocoPhillips are not signing the agreement with Venezuela. Chavez ‘took over’ the oil industry
What recourse do these companies have?
Both are busy in Alaska. I don’t know where else, but maybe Alaska can keep them busy for quite a long time to come.
Yoder? That li’l feller frum them Star Wars movies owns an awl cump’ny?! Whodathunkit?
Yoder Oil? there’s an Amish joke in there somewhere...I just know it...
***”They have a democratic society down there,” Kent Yoder said of Venezuela. “They voted on someone (Chavez) that not necessarily everybody agrees with.***
Democratic society?????? Yoder is, first of all, a businessman, and he’s painted the picture strictly for his own profit. I don’t blame anyone for wanting to protect his busines, but he’s either a liar or he’s delusional.
Iraq will be opening up sooner than most people are aware. The hydrocarbon law that defines how oil revenues are shared between the government and the oil companies is being debated in their parliament right now. When it is approved the biggest producers in the world will begin to drill.
Iraq is estimated to potentially have more oil and gas than Saudi Arabia. It is a much 'sweeter' variety that makes it easier to refine.
Exxon and Conoco are two of the biggest refiners of VZ heavy crude. Their recourse might include refusing to refine Hugo’s oil, or better yet, just charging him more...
He’s just plain Hoosier stupid.
I know a lot of people who avoid CITGO branded gasoline stations. I know I do. You can’t tell me that this doesn’t have some impact.
I noticed just recently that 7-11’s are no longer flying the CITGO banner.
Now if we could just get that CITGO sign taken down behind left field at Fenway Park.
711s were one of the first chains to drop Citgo after Huugo called GWB the Devil or whatever and then there were two perhaps three others mostly smaller vendors in Tex I think. Those of course had very little effect other then 711 that was a big account, however his free/cheap oil offers blew up in his face when most states other then mass refused his offer. Does not surprise me that mass would accept it they are all libs anyhow but I loved the fact that native Americans from Alaska who truly needed the oil also refused it, that was a clincher in my book.
How some are claiming independence are picking his oil up amazes me because we have very few left all of ours are major brand other then Super America and they said they dropped Citgo already along with 711.
It seems like there’s a lot of misinformation flying around about where and when money gets to Citgo... gas stations are licensed to carry certain brands of gasoline- this license is only a promise to carry at least ONE grade of gasoline from the brand. 7-11 might buy a load of gas from Chevron, but chevron frequently buys loads of gasoline from Citgo.
AGAIN: There’s no guarantee that the gasoline you’re buying (or not buying) came from the people behind the light-up sign above the gas station.
Boycotting Citgo gasoline doesn’t hurt Citgo’s bottom line whatsoever. In this market, batches of gasoline don’t go un-purchased for very long. On the other hand, boycotting citgo’s lube oils and such makes more sense to me, if you feel the need to be proactive. It seems to me that boycotting gas stations has the potential to do more damage to local small business than it does to Citgo’s corporate staff.
BTB, I work for Citgo, indirectly- I move their gas and oil all over the Western world in my ship. I have no horns sprouting out of my head, last I checked.
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