Venezuelan Oil Supply at Risk; Chavez Looks to Sell 8 Refineries in U.S

The Washington Times (Washington, DC), February 22, 2005 | Go to article overview

Venezuelan Oil Supply at Risk; Chavez Looks to Sell 8 Refineries in U.S


Byline: Kelly Hearn, THE WASHINGTON TIMES

BUENOS AIRES - Venezuelan President Hugo Chavez says he is looking to sell off eight oil refineries that his country owns in the United States, raising questions about the long-term plans of the major U.S. oil supplier.

Mr. Chavez's announcement, made this month in Buenos Aires, comes during worsening bilateral relations and indications that Venezuela is exploring ways to shift more of its oil sales to energy-hungry China.

U.S. authorities are paying cautious attention. Even before the refineries announcement, Senate Foreign Relations Committee Chairman Richard G. Lugar, Indiana Republican, had asked the Government Accountability Office to study the impact if Venezuela were to shut down its sale of 1.4 million barrels of oil per day to the United States.

Caracas owns Citgo

The eight refineries are operated by Texas-based Citgo, which was purchased in the 1990s by PDV America Inc. - a wholly owned subsidiary of Petroleos de Venezuela, a state-owned oil company.

The company owns or operates refineries in Texas, Louisiana and Illinois, and holds a minority stake in the Lyondell-Citgo refinery in Houston and asphalt refineries in Paulsboro, N.J., and Savannah, Ga.

Industry analysts think Venezuela originally was interested in owning the refineries to guarantee a market in the United States for its comparatively heavy, hard-to-refine oil. That logic still holds, leaving the analysts to speculate about the motives behind Mr. Chavez's Feb. 1 announcement.

Newly appointed Citgo President and Chief Executive Officer Felix Rodriguez insisted the next day that no decision had been made on a sale, and an oil ministry official speaking on the condition of anonymity told the Associated Press, "It will take two years to get the sale process on track."

Analysts said Venezuela likely would want to boost its ability to refine crude oil at home before selling the American refineries - a process that some said could take up to five years.

Firm trims exposure

Petroleos de Venezuela officials said the company simply was looking for ways to "reduce its market exposure." But the reports have seeded rampant speculation that Mr. Chavez - fearing U.S. sanctions or the seizure of Venezuelan assets - wants to divert future oil supplies from the United States to other trading partners.

U.S.-Venezuelan relations have been on a downward spiral at least since the United States endorsed a failed coup attempt in Caracas in April 2002. Most recently, the Chavez government responded bitterly after The Washington Times reported U.S. criticism of government plans to purchase 100,000 rifles and other arms from Russia.

The United States also is concerned about Mr. Chavez's increasingly close relationship with Cuba. In recent weeks, he announced the creation of an "anti-imperialist" civil defense force in Venezuelan "neighborhoods and factories," which follow the model of similar forces in Cuba. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Venezuelan Oil Supply at Risk; Chavez Looks to Sell 8 Refineries in U.S
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.