Who Really Owns America?

[HagiaSophia]

Chavez of Venezuela to Sell CITGO in Louisiana

The Citgo of the 21st century is a creation of PDVSA. The company bought half of Citgo Petroleum Corp. in September 1985 from the Thompson brothers of Southland Corp. for $290 million. **The Lake Charles, La., refinery produced 300,000 barrels per day (b/d). PDVSA agreed to provide 130,000 to 200,000 (b/d) of crude and feedstock for the Lake Charles refinery for 20 years. **

Included in the sale were a percentage of two important pipelines, Colonial and Explorer; a lube plant; over 30 terminals; and an established gasoline market of branded outlets (then 6,900, now 13,800 franchised).

However, if there is a sale of Citgo – only with the U.S. government’s permission – it could be a fire sale. Chavez does not seek to realize Citgo’s $5 billion-plus worth in today’s market.** He wants to stop sending Venezuelan oil to the U.S. (to Citgo), **and he wants to prevent the possibility of the U.S. freezing Citgo’s assets (after some foolhardy action on his part).

It appears that Chavez is considering the sale of Citgo to foreign buyers, i.e., the Russians (Lukoil), Brazilians (Petrobras) or Arabs, with the Chinese now excluded by the U.S. Homeland Security Department. Presently, there appear to be two U.S. independent refiners, Valero Energy (CEO Bill Greehey), and Premcor Inc. (formerly Clark USA) that are interested in one or two of Citgo’s refineries.

**Chavez’s hatred of the United States and President Bush and his need for funds for his corrupt regime are the driving forces behind his wish to sell Venezuela’s foreign crown jewel. Citgo is a corporation that was carefully constructed by Venezuelan oilmen under the Brigido Natera presidency, to conquer the United States downstream market, where Venezuela has traditionally sold half of its oil production. **

The real value of all the nine PDVSA refineries in the United States is represented by the opportunity of marketing Venezuela’s medium/heavy crude oils through PDV America (which includes refinery ownership of Citgo; Citgo-Lyondell, 41 percent; Hovensa, St. Croix joint venture; Chalmette, La., 50 percent participation; Sweeney, Texas, joint venture; and Lemont, Ill., now 100 percent).

newsmax.com/archives/articles/2005/3/17/215618.shtml

 

[Matt25]

vheadline.com/readnews.asp?id=27571

US Representative Bill Delahunt: CITGO … a bright shining sign?

**US Representative **** Bill Delahunt writes:**There’s nothing sweeter for a Red Sox fan than watching the home team pound a towering home run over the Green Monster.

For four decades now, those suspenseful Monster shots have taken flight against the backdrop of a Boston landmark, a sign that’s become part of the fabric of Kenmore Square and Fenway Park. Any member of Red Sox Nation can identify the company sponsoring the sign.

• But how many New Englanders know that Citgo is the US subsidiary of the Venezuelan national oil company, Petroleos de Venezuela, and is wholly owned by the government of Venezuela?

**The sign is a symbol of friendship and cooperation, not to mention one of America’s most enduring commercial relationships. **

Few nations in this hemisphere are as critical to the US economy. Venezuela, with the largest energy reserves of any country outside the Middle East, is the fourth-largest foreign provider of energy supplies to the United States, accounting for nearly 15 percent of our oil imports. It is our 16th largest trade partner overall – bigger than Spain or Australia – and one of our fastest-growing. It has invested more than $12 billion in the United States through its refineries, terminals, and related facilities.

Venezuelan investments have created more than 150,000 US jobs. Likewise, US companies have roughly $25 billion invested in the Venezuelan energy and manufacturing sectors. So both countries need each other, and a poor relationship bodes ill for Americans and Venezuelans alike.

But our bilateral relations have deteriorated at an alarming pace. President Chavez, who seeks greater power and influence for the developing world, is bitterly opposed to Bush administration foreign policy and has pulled no punches when criticizing it. This causes enormous discomfort in the US State Department.

Three years ago, the administration actually endorsed a failed coup attempt against Chavez – a breathtaking contradiction of the White House crusade for shining the light of democracy in the darkest corners of the globe. Meanwhile, the chronic stridency from Caracas - sometimes in shrill, personal attacks on President Bush – is no more constructive.

The fact is that Chavez is the democratically-elected president of Venezuela, a sovereign nation. He is entitled to speak his mind just as bluntly as Bush. I respect his efforts to use Venezuela’s energy wealth to improve the lives of the Venezuelan people, particularly through health and education initiatives for the poor that former President Jimmy Carter believes are replicable elsewhere. And the Bush administration squandered much of its moral authority to pass judgment on Chavez when it blessed the 2002 coup against a freely elected leader.

Unfortunately, both governments seem to delight in using incendiary rhetoric and taking offense at slights so minuscule that they might be imaginary. This does nothing but inflame tensions. Given the degree of interdependence between our two economies, it’s also short-sighted and foolish.
We have managed to come to terms with China, with Vietnam, even with Libya. It’s time for the governments of both the United States and Venezuela to acknowledge our significant differences and then reconstruct a discourse based on mutual respect.