WASHINGTON -- The first deliveries of cheap Venezuelan heating oil to Massachusetts residents will not arrive for weeks, but the deal involving President Hugo Ch avez already is generating political heat on both sides, said the Associated Press.
Venezuela's state-owned oil company ran full-page ads Thursday in major U.S. newspapers trumpeting its deal as "humanitarian aid" and a "simple act of generosity."
The ads appeared a day after The Wall Street Journal scolded Representative William Delahunt (D-Mass.) and former Rep. Joseph [image-nocss] P. Kennedy II (D-Mass.) for their cooperation with Ch avez, one of President Bush's harshest critics. "Mr. Delahunt's lobbying for the dictator undermines any official U.S. pressure on Mr. Ch avez to behave more humanely, which is precisely why Mr. Ch avez is returning the favor by plying Mr. Delahunt with cheap oil," the newspaper editorial said. "Leave it to the congressman...and a Kennedy to close the deal."
Tensions have run high recently between Bush and Ch avez, a self-styled socialist who assails American-style capitalism and has branded Bush a "madman." Ch avez's critics contend the oil deal is a cynical ploy to score public relations points and tweak the Bush administration.
As reported in CSP Daily News, Venezuela-owned CITGO Petroleum Corp. promoted its plan to offer 12 million gallons of cut-rate oil this winter with the headline: "How Venezuela is Keeping the Home Fires Burning In Massachusetts."
Delahunt and Kennedy, whose Citizens Energy Corp. will help deliver the oil, counter that keeping poor people warm is their priority. "I don't report to George Bush," Delahunt said at a news conference last week. "I'm elected by the people here in Massachusetts. So I don't feel any particular need to consult with George Bush or Dick Cheney about oil."
Other foreign suppliers of oil to the U.S. have authoritarian governments and are accused of human rights abuses, a Kennedy aide noted. "If we applied a democratic screen to countries we get our oil from, we'd never have enough oil to heat our homes and drive our cars," said Kennedy spokesperson Brian O'Connor. Kennedy is chairman of Citizens Energy, Boston.
The Bush administration praised the deal, but balked at commenting about Ch avez and his motivations. "We commend this act of good corporate citizenship," said U.S. Department of Energy spokesperson Craig Stevens.
The first deliveries of 40%-discounted Venezuelan oil will be made December 12, when many residents will exhaust their federal fuel aid for the season, O'Connor said.
Other Northeast states, including New York, are exploring similar deals with Venezuela.
Meanwhile, in late November, Rep. Jos a E. Serrano (D-N.Y.) announced a program to provide reduced-cost heating oil to low income residents of his district. CITGO will provide 8 million gallons of home heating oil below cost to several nonprofit housing providers in the Bronx. The program comes as record high heating oil prices are expected and the winter months approach. Having heard firsthand the concerns of many constituents and local organizations about rising energy costs, Serrano initiated discussions with CITGO following Ch avez's visit to the Bronx in September.
Ch avez made an offer of low-cost heating oil during a speech at a community center. Congressman Serrano had invited Ch avez to tour the 16th Congressional District in the Bronx and to visit with community groups from the area. Serrano later worked with representatives of CITGO and community-based organizations to bring the heating oil program to fruition.
I am very pleased to have helped broker this historic arrangement, said Serrano. My constituents are facing some of the highest energy bills in recent history, even as oil companies are reporting the largest profits in recent memory. CITGO is acting like a good corporate citizen and making a generous and compassionate donation to the people of the Bronx. I applaud their actions.
Separately, Native American continue talks with CITGO to bring low-cost heating oil and gasoline to tribes, reported Indian Country Today.
Native American activist Robert Free Galvan, who is organizing efforts with CITGO, said Venezuelan President Hugo Ch avez is demonstrating to the world that there is another way to engage in the sale of oil and gas. ''CITGO holds very highly their corporate social responsibility and vision; it is an example for tribal corporations to follow,'' Galvan said. ''The recent oil crisis profited billions to oil companies, but which ones have offered communities anythingbesides CITGO?''
Tribes throughout the United States, including tribes in Arizona, Nevada and South Dakota, contacted Galvan concerning Ch avez's offer of low-cost gasoline and heating oil after Venezuela made the offer earlier this year, as reported in CSP Daily News.
A representative of the Walker River Paiute Tribe in Nevada, Tribal Operations Director Dan Brannum, and Galvan recently met with CITGO and Venezuela's consulate officials in Chicago to begin working toward deliveries to Indian communities. ''Indian tribes are now planning to hold mini-conferences to create visions for new joint ventures and address energy assessments of consumption, facilities and storage capacities,'' Galvan told the newspaper.
''I have received hundreds of e-mails requesting low-cost oil and gas from both individuals and communities across Indian country,'' he said, after learning of the offer at the 16th World Festival of Students and Youth in Caracas, Venezuela in August. ''From planners of economic development to tribal chief and councils, all have expressed the great need to reduce their community's energy costs. This is an opportunity for communities to assess their consumption usage and cost and an opportunity to work towards ways that they can reduce that consumption.''
Galvan said tribes are now exploring ways to lower supply and distribution costs. They are also beginning to explore other renewable and sustainable energy sources as part of their tribal community's energy sources, said the report.
After meeting with CITGO officials in Chicago, Galvan said Boston, Chicago and New York were identified as the first areas to receive the low-cost heating oil and gas. Currently, Native American involvement focuses on Indian communities close to these urban areas that are working with nonprofit organizations, the report added.
''We are still in the process of exploring and discussing possibilities with CITGO. A big part of all of this is relationship-building, Galvan said.
While in Chicago, and hosted by staff from the Venezuelan Consulate office in Chicago, Galvan met with Venezuelan Ambassador Bernardo Alvarez and CITGO CEO Felix Rodriguez, along with the Venezuelan consulate staff from New York, Washington, D.C., and Chicago.
Galvan said Ch avez is remaining true to his word and directive to have indigenous involvement in many aspects of Venezuela's economy and political processes. Galvan said sovereign Indian nations can follow Ch avez's lead: ''For instance, purchasing fair trade coffee at all casinos would go a long way towards an act of solidarity with indigenous people south of the border.''
Galvan said the location and cost analysis of transportation determines the areas where the energy resources for heating oil, gasoline and diesel can be offered from CITGO refineries in the United States. Since many Indian communities have 50% and 86% unemployment rates, he said, there is no question of need. Further, many tribal communities are isolated, with increased transportation needs and extreme cold winters, the report said.
''The opportunity to address those needs through the energy offer of Venezuela can lead to community empowerment and capacity-building,'' Galvan told the paper.
CITGO, Houston, is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals, refined waxes, asphalt and other industrial products. The company is owned by PDV America Inc., an indirect wholly owned subsidiary of Petr aleos de Venezuela SA (PDVSA), the national oil company of the Bolivarian Republic of Venezuela.
Click here to view the newspaper ad.
http://www.usatoday.com/news/world/2005-12-01-oil-chavez_x.htm
Click here to view Delahunt's heating assistance webpage.
http://www.house.gov/delahunt/heatingassistance.htm
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.