Citgo Officials Scrambling To Fine-tune Venezuelan Leader's Promise Of Cheap Oil
When Venezuelan President Hugo Chavez said on the weekend that he was going to open the taps on subsidized heating oil for poor folks in the United States, many assumed it was a drive-by comment aimed at raising the ire of his frequent critics in Washington. But, as it turns out, Mr. Chavez is a man of his word.
Officials at Citgo Petroleum Corp. -- the Houston-based company that is wholly owned by Venezuela's state-owned energy company -- say they are scrambling to put the fine points on Mr. Chavez's promise to supply some of the poorest neighbourhoods in the United States with cheap heating oil this winter.
"The idea is to work with communities in need, with schools, and we'll have to work through not-for-profit organizations that will serve as intermediaries," public affairs manager Fernando Garay said. "The very specific details, we don't have yet." The Venezuelan leader's program is scheduled to begin next month in the Mexican-American community in Chicago, followed by the South Bronx, and then Boston.
Analysts say that Mr. Chavez's bold use of a state-owned company in a foreign country to so openly pursue his ideological aims is highly unusual. "It's the first time I've heard that a foreign leader is basically giving away his country's natural resources," said Nikolas Kozloff, a senior research fellow at the Washington-based Council on Hemispheric Affairs. Bradford University scholar Julia Buxton, who has written extensively on Venezuela, including The Failure of Political Reform in Venezuela, said Mr. Chavez's action is "quite unprecedented but consistent with the influence the oil has in the world economy.
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