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Venezuela Oil Helps Us Poor?

Venezuela Oil Helps US Poor?

Did you all know that CITGO, the oil company owned by Venezuela, donates oil to the low income families in the US? Wondering why other oil companies do not do the same? According to one guy in the latest US ad I just watched (not the one below)... it is not politically correct to do so in not so many words. Any truth to this?


NOTE: This is the closest ad I could find to the current one.

Poor Helps Oil Venezuela

Before I'm able to make a decision whether or not Venezuela is operating under altruistic reasons or with an agenda, I'd want to understand the entire contract. All we know for fact is the following:

1. The oil comes from Venezuela
2. The end consumers have that oil at a discount.

I have several questions about this. There probably are several reasons why any oil company would do this. Perhaps the US made a deal with Venezuela wherein the government subsidizes the difference between what the end consumer is paying and the price-per barrel? Perhaps after that despot Chavez kicked out several over-seas oil companies, he considers this 'found oil' and everything earned is icing on the cake, a bonus if you will, rather than part of a business plan that needs to be agreed upon by a Board of Directors/Stockholders or the like.

The Net is unfortuneatley devoid of the facts concerning this seemingly wonderful gift. I don't want to sound completely cold hearted, the fact is that I have experience with Chavez and really don't trust his motives.

Venezuela Oil Helps Us Poor? History & Civil Business Politics

Of course it is not politically and or business-wise correct to give away ones products in the US. It goes against the root of capitalism. The oil companies have stock holders that they have to report to and giving away the profits would have to be a corporate decisions and one not likely made (stockholders would probably prefer a dividend). Now, if the oil companies said, hey...we are rolling in profit right now and maybe we should cut our margin a bit, they could review their pricing strategy. I do hope (but really doubt) that a lot of this profit is going into research and development.

This is actually a brilliant move on Chavez's part...and not just politically...it quite possibly could be a good business move as well. If that later part shows to be true, then you will see other companies figuring out some way to give a bit back to the consumers. This brilliant on so many levels...

1 Definitely could increase sales at Citgo's. In particularly in areas where the heating fuel is being donated and reported about. Although, the poor likely wont have cars that need fueling, the sentiment is one that will strike a cord with the average US Citizen. (Personally, I dislike Chavez so much that I make sure not to buy Citgo gas when in the US...his gas smells more like sulfur! )
2 It really hammers corporate greed home and builds and even stronger dislike of the large oil companies that exist.
3 It builds in the mind of the public an even more linked conspiracy (if you will) with Big Business and the US Government. I mean...look...a country that is not even as well off as we are is helping our poor by taking a little less profit for themselves...why cant we do that?
4 Chavez gets to talk, every winter, about how he is helping the poor of the "Great United States" and you know he gets such a charge out of doing it too! That his socialist government can even help the US do what it's democracy cant!

The bad part to it is that Venezuela is not that well off to be giving away anything. That money could be used to help their infrastructure instead of making political stances and stunts.

The guy is not a idiot. You dont survive a coup and end up being named the leader afterwards, unless there is something between your ears. The guy is clever like a fox. I genuinely feel bad for the people of Venezuela that in a time where they need help he seems more interested in playing political games. But if #1 of what I listed comes true, Citgo could get some pretty nice profits and loyal customers.

Edited: Vincenzo on 17th Dec, 2007 - 3:46am

Poor Helps Oil Venezuela

Great post Vincenzo, I agree with all of it.

The point I may not have made is that while Citgo's apparent discount is a great deal for some of the poor in the US, I'm not convinced that Citgo is really selling the oil at a loss. I have the itchy feeling that Chavez is making full profit while still being able to say he's acting beneficent. I really would like to know more of the details that aren't brought up in speeches, commercials or publicized.

Poor Helps Oil Venezuela

Venezuela tops world oil reserves:

Venezuela surpassed Saudi Arabia in oil reserves, OPEC reported. But analysts say the quality of those reserves is an issue. Ref. Source 6

Venezuela Oil Helps Us Poor?

Venezuela helps US poor's with energy

Venezuela has launched its energy assistance program for the seventh consecutive year, which helps poor Americans to pay for their home heating oil during the winter Ref. Source 8

Venezuela Oil Helps Poor

From the research I've done he survived the coup because the entire people of Venezuela stormed the capital and demanded he be put back into power (they love him). Strangely the USA has some pretty shady dealings in the whole coup and made several bold faced lies about their involvement (what else is new).

I would say this is a definite thumb in the eye of America for Chavez. I would wager that even if it is costing him money he would still be doing it. I would not be shocked to see others copy him, if there is a little money to be made on the side.