Venezuela cuts off oil pipeline for 200,000 US homes

[Ghost in the Machine]

From correspondents in Washington | January 07, 2009
Article from: Agence France-Presse

SOME 200,000 US households will no longer get cheap heating oil from Venezuela after the state-owned CITGO subsidiary announced it was dropping the program due to falling oil prices.

"Citizens Energy has recently been informed by CITGO that due to falling oil prices and the world economic crisis, CITGO has been forced to re-evaluate all their social programs, including the heating oil program,'' Citizen Energy Corporation spokesman Brian O'Connor said.

"Close to 200,000 households throughout the US'' benefited from the Venezuelan program since 2005, he said, adding that Venezuelan oil donations in 2007 amounted to $100 million ($138 million).

Leftist Venezuelan President Hugo Chavez in 2005 irked the administration of President George W. Bush when he announced the cheap heating oil program for US households in the midst of rising oil prices.

Since July, however, the price of oil has plummeted from $US130 a barrel to a little over $US27, raising concerns in Venezuela, which derives 90 per cent of its foreign currency revenues from oil

http://www.theaustralian.news.com.au/story/0,25197,24883063-12377,00.html

[Selatius]

1. The program may come back if oil spikes above 100/barrel.

Currently, gas prices in my area are around $1.65/gallon. I hadn't seen prices like that since before the Iraq War.

The problem, though, is ultimately that Bush defunded the LIHEAP program that provided low-income homes with the aid to buy heating oil. The responsibility ultimately rests with the US gov't, not with some foreign entity and certainly not Hugo Chavez, who has a whole different country to run.

Personally, I offer thanks to him for sending representatives to Citgo here on the Mississippi coast and in New Orleans following Katrina in order to help evacuate out survivors in the flooded/destroyed areas.

[Ghost in the Machine]

2. I can understand the cutback on the program at this time..

I noticed today that gas prices here in East Tennessee have risen about 20 cents per gallon since sunday evening. Prices averaged around $1.44/gal sunday and they were up to $1.64 today...

I also applaud Chavez for how he has helped poor American families when our own government wouldn't. Hopefully we'll see some change in this situation when Obama takes command.


Peace,

Ghost

[Smith_3]

3. Let's thank them for all they have done so far. nt

[justsomeguy1973]

4. Not unexpected

Chavez's entire government is stable only because of his handouts from the massive oil profits. Right now he's in panic mode b/c the price of oil threatens the government programs which in turn threatens the stability of their government. I'm not surprised they have to cut back.

[Arctic Dave]

6. Alaska is in the same boat as Venezuela.

So are a few other states that rely heavily on oil taxes.

[justsomeguy1973]

7. I couldn't agree more

And of them Alaska is the worst off too. Since such a large portion of their population relies heavily or completely on oil revenue checks from the state. Good call!

[EFerrari]

5. That's a lot of homes.

:(