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Some "Red States" to soon see $4.00/gallon gas prices

Discussion in 'Fred's House of Pancakes' started by Subversive, Jul 12, 2006.

  1. Subversive

    Subversive New Member

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    I guess he finally got tired of all the constant abuse from the Bush Administration....

    Citgo to stop selling gas at U.S. stations

    The Associated Press/CARACAS, Venezuela

    JUL. 12 11:41 A.M. ET Venezuela-owned Citgo Petroleum Corp. has decided to stop selling gasoline at some 1,800 stations in the United States following calls by President Hugo Chavez to nix contracts that benefit U.S. consumers more than Venezuelans.

    Citgo, which is wholly owned by Venezuela's state oil company, currently has to purchase 130,000 barrels a day from other refining companies to meet its service contracts at 13,100 stations across the U.S.

    The Houston-based company has decided to sell only the 750,000 barrels a day that it produces at three U.S. refineries in Lake Charles, Louisiana, Corpus Christi, Texas, and Lemont, Illinois, according to a statement late Tuesday.

    That will mean that over the next year Citgo will withdraw completely from 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.

    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.


    http://www.businessweek.com/ap/financialne...me_up%26chan=db
     
    #1 Subversive, Jul 12, 2006
  2. tripp

    tripp Which it's a 'ybrid, ain't it?

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    Hmm... I didn't realize we had to states named Iowa. :p

    It's exactly this kinda thing that will be good for this country in the long run. More and more people will understand the line that we walk everyday when it comes to transportation fuel supply.
     
    #2 tripp, Jul 12, 2006
  3. Godiva

    Godiva AmeriKan Citizen

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    Looks like they'll have to start paying the same as California soon.
     
    #3 Godiva, Jul 13, 2006
  4. wstander

    wstander New Member

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    <div class='quotetop'>QUOTE(Subversive @ Jul 12 2006, 08:04 PM) [snapback]285415[/snapback]</div>

    Another OPEC boy at work here B)

    If you care, CITGO also markets gas at 7-11 stores as well.

    (There is a late-night joke here somewhere)
     
    #4 wstander, Jul 21, 2006
  5. c4

    c4 Active Member

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    I want to see Venuzuelan gas prices at Citgo pumps.. I have a friend who owns a vacation property down there and gas is incredibly cheap.. He can fill up his car (old Suzuki beater) and get groceries for the week for under the equivalent of $6 US..
     
    #5 c4, Jul 21, 2006
  6. EricGo

    EricGo New Member

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    I don't see how this will increase prices. Presumably the refined fuel is bought from other US based refineries, who will now distribute it through other channels.

    I can see how this will affect Citgo dependent station owners. I can also imagine a backlash of consumer anger against Citgo. It might also increase the number of people calling for more refinery capacity.

    addendum: I read the article again, and am unclear if Venezuela will decrease US exports by the same amount as the refined fuel shortfall. I doubt it; and even if true, they would sell it elsewhere presumably. I, and for sure canadians, were surprised to see canadian fuel prices increase just as much as US fuel prices due to Katrina -- even though Canada *exports* oil. Oil is a world market, and Chavez shifting exports around just does not seem like a big deal after a bit of hysteria and fear-mongering subsides.
     
    #6 EricGo, Jul 23, 2006
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