7-11 drops Citgo. 15 replies

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Pethegreat VIP Member

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#1 12 years ago

Sep 27, 2006 — By Erwin Seba HOUSTON (Reuters) - A week after Venezuelan President Hugo Chavez called George W. Bush "the devil," convenience store chain 7-Eleven Inc. said on Wednesday it will stop selling gasoline from Venezuelan-controlled Citgo Petroleum Corp. The Dallas, Texas-based company said in a statement it disapproved of Chavez' comments, but a spokeswoman insisted politics were not part of the decision to end its 20-year agreement with Houston-based Citgo, a position supported by Venezuelan and Citgo officials. Chavez angered the White House and its supporters when he called President Bush "the devil" in a September 20 speech at the United Nations and said the podium still reeked of sulfur after a Bush appearance there. "Regardless of politics, we sympathize with many Americans' concerns over derogatory comments about our country and its leadership recently made" by Chavez, 7-Eleven said in a statement. The company's decision appeared to represent a broadening of U.S.-Venezuela tensions, which previously had been little more than a war of words between Chavez and the Bush administration, but 7-Eleven spokeswoman Margaret Chabris told Reuters that was not the case. The decision to drop Citgo, a subsidiary of Venezuelan national oil company PDVSA, was made well before the speech, she said, and based on 7-Eleven's desire to sell its own branded gasoline. "People are making it out to be more than it is," Chabris said. A source close to the talks said Citgo, which supplies 2,100 7-Eleven locations, was told two months ago of the company's decision. Citgo, which is narrowing its U.S. operations, had offered to renew the contract by supplying 7-Eleven stores in Texas and Florida, but not in other states it had previously served, the source said. Venezuelan Energy and Petroleum Minister Rafael Ramirez, who also serves as PDVSA's president, confirmed that the move was just a business decision. "No, no, no, no. We made our decisions with respect to some gas stations a long time ago," Ramirez told reporters in Caracas in response to a question about conflict between Citgo and 7-Eleven. "There is no conflict there."

Citgo earlier this year said it was cutting the number of gas stations it supplies for business reasons, company officials said. SIGNS COMING DOWN 7-Eleven said it would begin taking down Citgo signs and sell under its own brand gasoline provided by several U.S. refiners. Its agreement with Citgo expires September 30. 7-Eleven is the world's largest convenience store operator, with chains in 20 countries. It is owned by Japan's Seven & I Holdings Co. Ltd. The leftist Chavez routinely blasts President Bush in speeches at home, but his New York address received lots of coverage in the United States and rankled many Americans. Despite the backlash, Chavez maintained his anti-Bush harangue on Wednesday, repeating his sulfur comment in Caracas at an event to sign business deals between Venezuela and Russia. Chavez said he was fighting to stop the superpower treating Venezuela like a colony. "Never again will we be put in chains, even though some want to send our country back to the dark cave of slavery," he said. Despite his animosity toward Bush, he has not stopped the flow of oil to the United States, which is Venezuela's biggest crude customer, and has even given away or sold at discounts heating oil to impoverished Americans. His war of words with the Bush administration has provoked one organization, the conservative American Family Association, to call for a boycott of Venezuelan oil. But 7-Eleven warned against a boycott, noting that Citgo supplies 14,000 retailers with gasoline and employs 4,000 people in the U.S. "Americans with no substantive connection to Venezuela would be economically harmed by boycotts," 7-Eleven said. Oil analyst Tim Evas at Citigroup said it was unlikely political disagreements with Venezuela, which is the world's fifth-leading oil exporter, would cause Citgo to lose U.S. customers. "At the end of the day, I think business is just business," he said.

http://abcnews.go.com/US/wireStory?id=2499364

:lol:. Well Chavez, you just screwed your self over. We buy all your oil and you call our leader the devil. Idiot.

I love 7-11 for this. About time we cut this guy off from his money.




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#2 12 years ago

I would agree with you, but if they did make the decision awhile ago this isn't so much a "Screw you!" as much as it is a "Nice doing business with you."




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#3 12 years ago

Good for them. I'd shop there more often now if I actually had one close by...




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#4 12 years ago

I doubt that this will severely affect Chavez's income.




Nostradamouse

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#5 12 years ago

Won't change much. He'll get some cash anyway; with the natural ressources he's got, he can sell 'em. But it is always bad to have paranoids at the head of a state...




emonkies

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#6 12 years ago

7-11's contract with Citgo ran out, 7-11 decided not to renew it this time partly based on Chavez's comment.

If the other 7-11'sa re like the ones by me they do a hefty amount of gas sales.

Cutting off hefty gasoline sales from 2100 outlets is definately gonna send a message and while it may not hurt Chavez the lost revenue will be noticed.

Now onward with E-85 and Biodiesel and stop importing foreign oil!!!




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#7 12 years ago

Double post.




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#8 12 years ago

Anlushac11

Now onward with E-85 and Biodiesel and stop importing foreign oil!!!

Biofuels aren't the way to go.

http://news.bbc.co.uk/2/hi/science/nature/5369284.stm

Consider the following:

* The grain required to fill the petrol tank of a Range Rover with ethanol is sufficient to feed one person per year. Assuming the petrol tank is refilled every two weeks, the amount of grain required would feed a hungry African village for a year * Much of the fuel that Europeans use will be imported from Brazil, where the Amazon is being burned to plant more sugar and soybeans, and Southeast Asia, where oil palm plantations are destroying the rainforest habitat of orangutans and many other species. Species are dying for our driving *If ethanol is imported from the US, it will likely come from maize, which uses fossil fuels at every stage in the production process, from cultivation using fertilisers and tractors to processing and transportation. Growing maize appears to use 30% more energy than the finished fuel produces, and leaves eroded soils and polluted waters behind * Meeting the 5.75% target would require, according to one authoritative study, a quarter of the EU's arable land * Using ethanol rather than petrol reduces total emissions of carbon dioxide by only about 13% because of the pollution caused by the production process, and because ethanol gets only about 70% of the mileage of petrol * Food prices are already increasing. With just 10% of the world's sugar harvest being converted to ethanol, the price of sugar has doubled; the price of palm oil has increased 15% over the past year, with a further 25% gain expected next year.

Say no to biofuels.




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#9 12 years ago

Anlushac11

Now onward with E-85 and Biodiesel and stop importing foreign oil!!!

Biofuels aren't the way to go.

http://news.bbc.co.uk/2/hi/science/nature/5369284.stm

Consider the following:

* The grain required to fill the petrol tank of a Range Rover with ethanol is sufficient to feed one person per year. Assuming the petrol tank is refilled every two weeks, the amount of grain required would feed a hungry African village for a year * Much of the fuel that Europeans use will be imported from Brazil, where the Amazon is being burned to plant more sugar and soybeans, and Southeast Asia, where oil palm plantations are destroying the rainforest habitat of orangutans and many other species. Species are dying for our driving *If ethanol is imported from the US, it will likely come from maize, which uses fossil fuels at every stage in the production process, from cultivation using fertilisers and tractors to processing and transportation. Growing maize appears to use 30% more energy than the finished fuel produces, and leaves eroded soils and polluted waters behind * Meeting the 5.75% target would require, according to one authoritative study, a quarter of the EU's arable land * Using ethanol rather than petrol reduces total emissions of carbon dioxide by only about 13% because of the pollution caused by the production process, and because ethanol gets only about 70% of the mileage of petrol * Food prices are already increasing. With just 10% of the world's sugar harvest being converted to ethanol, the price of sugar has doubled; the price of palm oil has increased 15% over the past year, with a further 25% gain expected next year.

Say no to biofuels.

EDIT: Cripes, sorry for the triple post!




emonkies

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#10 12 years ago

I disagree with the article.

Sounds like a European problem. The US already has a very large production capacity. And IIRC UN and some other aid organizations have been teaching African tribes how to grow food to sustain themselves.

Also the usage of petrol in the production process doesnt take into account using biodiesel instead of petrol based diesel.

Also E-85 will be rated at 105 octane compared to the normal 87 to 91 octane currently used which will allow raising the compression ratio. In addition modern high energy ignitions can fire a much leaner air fuel mixture. The end result is you will not lose 30% power. In fact the results will be more on the order of 10%. If a car like my 92 Probe SE and my 91 Mustang are rated at 100hp that means the power will drop to about 85-90hp. Noticeable but not significantly less from a driveability standpoint.

Growing maize appears to use 30% more energy than the finished fuel produces, and leaves eroded soils and polluted waters behind

Eroded soil and polluted water I am assuming from uncontrolled runoffs? Thats why farmers have been using crop rotation for centuries, so one crop does not burn out the soil.

And the rain forest slashing has been going on for years despite International opposition. Many countries are encouraging such behavior by paying farmers and companies to do such.




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