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Will boycotting CITGO make any difference?
Posted: Sat Sep 23, 2006 9:37 pm
by Ixolib
I think I might be inclined to jump on this bandwagon...
Hoover retail developer plans boycott of Citgo
HOOVER (AP) — The chief executive of a retail developer with 150 employees in 36 states said his company will no longer use Citgo gas products in its vehicles in response to Venezuelan President Hugo Chavez calling President Bush "the devil."
Alex Baker, CEO of AIG Baker Shopping Center Properties, told the Hoover Chamber of Commerce of his boycott of Citgo during a luncheon Thursday at the Hoover Country Club.
Chavez called Bush "the devil" during a speech Wednesday before the United Nations and said Bush doesn't care about the needs of the poor.
Citgo is the U.S.-based refining arm of Venezuela's state-run oil company.
Baker said he is also asking all contractors and vendors who do business with his company to boycott Citgo products. He declined a request for a telephone interview Friday from The Associated Press.
The Decatur Daily
September 23, 2006
or this one...
The local furor over Venezuelan President Hugo Chavez’s “devil” comment escalated yesterday with gubernatorial candidate Christy Mihos saying he may cancel the Citgo gas contracts at his minimarts on Cape Cod.
“The guy’s just a thug,” said Mihos, who owns nine Christy’s Markets that have distributor contracts with Citgo, a subsidiary of the state-owned Petroleos de Venezuela.
Chavez’s remarks, in which he called President Bush “the devil” during a United Nations speech earlier this week, have put Mihos in a tough spot. His business dealings with Citgo make him the potential target of political criticism while his talk of canceling his Citgo contract could create the appearance of pandering for votes.
Mihos, who’s dumping millions of dollars into his long-shot independent bid for governor, said he was outraged by Chavez’s anti-American tirade on Wednesday and is mulling what action to take.
“We’re talking about this at Christy’s Market, whether to keep with (Citgo),” he told the Herald.
Mihos said he’ll talk to customers at his markets to gauge their sentiments and assess further remarks by Chavez before making a decision. He said he’s most worried that Chavez might use his country’s oil exports and clout within the energy industry to hurt America.
If he breaks his agreements with Citgo, Mihos said he’ll probably lose tens of thousands of dollars.
“But there are more important things in life than money,” said the millionaire business owner who sold most of his Christy’s Markets in the late 1990s. He still owns 14 of them on Cape Cod - and nine of those have distributor agreements with Citgo.
The loudmouth Chavez has stirred other trouble in Boston, with one city councilor pushing to replace the iconic Citgo sign in Kenmore Square with a giant American flag to protest Chavez’s “devil” tirade.
Mayor Thomas M. Menino and others are trying to calm the situation, saying Boston would only be hurting itself if the giant sign was taken down.
A spokesman for Citgo yesterday reiterated that Citgo, while technically owned by the Venezuelan government, concentrates on business, not politics.
By Jay Fitzgerald
Boston Herald General Economics Reporter
Saturday, September 23, 2006
Posted: Sun Sep 24, 2006 7:36 am
by conestogo_flood
Some people are ridiculus. I just saw yesterday seom city councel man in Boston is going to petition taking down the big CITGO sign in response to Chavez. Who looses sleep over something like this?
Posted: Sun Sep 24, 2006 8:05 am
by GalvestonDuck
Eh, I don't buy Citgo gas. Simple as that.
In a time when we're being berated by those who think our only answer to anti-Americanism and terrorism is to "bomb a country back to the stone ages," why question it when we do use non-violent means as well?
Posted: Sun Sep 24, 2006 8:26 am
by sunny
GalvestonDuck wrote:Eh, I don't buy Citgo gas. Simple as that.
Me, either Duckie. I just find it rather amusing that someone who wants to come into our house and call our President the Devil also wants, and needs, our money
Posted: Sun Sep 24, 2006 9:45 am
by Tstormwatcher
Just remember he also donates millions of barrels of oil to the poor of this country. How about the other oil companies. he may have a big mouth, but we do need his oil. Think about how much gas would be if we stopped importing the oil that comes from there.
Posted: Sun Sep 24, 2006 9:48 am
by Cookiely
Buy or don't buy and does is make a difference. Interesting article.
http://www.snopes.com/politics/gasoline/citgo.asp
Posted: Sun Sep 24, 2006 9:54 am
by sunny
Tstormwatcher wrote:he may have a big mouth, but we do need his oil.
And he needs our money.
Posted: Sun Sep 24, 2006 10:26 am
by gtalum
Oil is a commodity and it is a commodity where supply is only very slightly ahead of demand. Therefore it makes no difference at all from whom you buy your oil products. Citgo will make the same money whether you buy oil from Citgo branded gas stations or not.
Further, you have no control over whose oil you buy. Just because a station says Citgo or Shell on the sign doesn't mean they're selling that brand of gasoline.
Posted: Sun Sep 24, 2006 12:22 pm
by Regit
gtalum wrote:Further, you have no control over whose oil you buy. Just because a station says Citgo or Shell on the sign doesn't mean they're selling that brand of gasoline.
Very good point and one that a lot of people don't realize. I know that in my town most of the gasoline comes from the ExxonMobil distributor.
But as far as stations, the ones near my house are branded BP and Exxon, so that's where I get my gasoline.
However, in a nearby town there are two gas stations at one of the busy intersections in town, Citgo and BP. The BP has gas for $2.17 and the Citgo has gas for $1.95. How many people do you think are giving any thought to Chavez when they pull up to the pump?
Posted: Sun Sep 24, 2006 1:16 pm
by artist
from what I heard the other day citgo gas indeed comes from Venezuela as it is wholy owned by the Venezuelan govt.
Posted: Sun Sep 24, 2006 8:49 pm
by brick
weres my post?
whos afraid of the truth around here?
Posted: Sun Sep 24, 2006 8:53 pm
by CajunMama
Check your pm's brick.
Posted: Sun Sep 24, 2006 10:06 pm
by Aslkahuna
It won't work-too much interconnectivity between the big oil companies for it to ever have an effect. Also, there may more to the antipathy on both sides than meets the eye since in the past and evn now the US has had no problems cozying up to authoritarian regimes that are not overly friendly like the House of Saud.
Steve
Posted: Mon Sep 25, 2006 7:47 am
by gtalum
artist wrote:from what I heard the other day citgo gas indeed comes from Venezuela as it is wholy owned by the Venezuelan govt.
Nobody disputes that. Citgo is a wholly owned subsidiary of the Venezuelan government. However, you have no control over what gasoline you buy. In most areas, there is one primary company supplyign the gasoline for all stations. On the Florida west coast, for instance, Citgo supplies everyone from their terminal in the Port of Tampa. It doesn't matter where you buy your gas on the west coast of Florida, you're buying Citgo.
Posted: Mon Sep 25, 2006 7:47 am
by j
gtalum wrote:Oil is a commodity and it is a commodity where supply is only very slightly ahead of demand. Therefore it makes no difference at all from whom you buy your oil products. Citgo will make the same money whether you buy oil from Citgo branded gas stations or not.
Further, you have no control over whose oil you buy. Just because a station says Citgo or Shell on the sign doesn't mean they're selling that brand of gasoline.
Mark this date on you calender --
I agree with gtalum -- bottom line, its a commodity and people will continue to treat it as such.
Posted: Wed Sep 27, 2006 4:45 pm
by Ixolib
Looks like
7-Eleven has jumped on the bandwagon... although only "partly" motivated by recent events...
http://www.msnbc.msn.com/id/15030988/
Posted: Wed Sep 27, 2006 10:14 pm
by Lindaloo
gtalum wrote:artist wrote:from what I heard the other day citgo gas indeed comes from Venezuela as it is wholy owned by the Venezuelan govt.
Nobody disputes that. Citgo is a wholly owned subsidiary of the Venezuelan government. However, you have no control over what gasoline you buy. In most areas, there is one primary company supplyign the gasoline for all stations. On the Florida west coast, for instance, Citgo supplies everyone from their terminal in the Port of Tampa. It doesn't matter where you buy your gas on the west coast of Florida, you're buying Citgo.
So why bother even giving it a name? Why not just say "NO SPECIFIC GAS SOLD HERE" or "VENEZUELAN PETROLEUM SOLD HERE" Talk about misleading the public.
Or is it a big corporate thing with credit cards.
Posted: Thu Sep 28, 2006 8:07 am
by gtalum
Lindaloo wrote:So why bother even giving it a name? Why not just say "NO SPECIFIC GAS SOLD HERE" or "VENEZUELAN PETROLEUM SOLD HERE" Talk about misleading the public.
What you buy when you pick a brand name of gasoline is their additive package (detergents, octane boosters, etc). Aside from that additive package, gasoline is exactly the same no matter who you buy it from, so it really doesn't matter where it comes from. This is just the nature of buying a commodity item. There is no efficient way to distribute gaosline in such a way that Citgo gas always ends up at Citgo stations or Shell gas at Shell stations. You'd have to duplicate a lot of infrastructure and prices would go up significantly.
Generally one oil company distributes gasoline in a given region. As they load the trucks at the terminal with generic gasoline, they put in the correct additive package for the stations that truck will be delivering to.
Posted: Thu Sep 28, 2006 8:10 am
by Lindaloo
So why even advertise "Chevron with Techron" "Buy Shell" IMO this is all about credit card companies.
Posted: Thu Sep 28, 2006 8:14 am
by gtalum
Lindaloo wrote:So why even advertise "Chevron with Techron" "Buy Shell"
Because they do want you to buy gasoline form their stations, as they make franchise fees from sales at stations with their brand. I wasn't exactly right when I said there would be no effect at all on Citgo if a boycott was waged. They coul dlose franchise fees if sales at Citgo stations were to decline. But those fees are pretty small compared ot the overall business of distributing oil.
As for the "Techron" thing and similar trademarks of other gas brands, there is a difference there. Techron is Chevron's additive package that I talked abotu in my previous post.
IMO this is all about credit card companies.
It may be that the old gas cards was one reaosn for the way the gasoline distributing business was set up. Maybe you're right.