Venezuela Reinstates Free Home Heating Oil for Poor in US
http://www.truthout.org/010809N
Caracas, Venezuela - The Venezuelan government reversed course
Wednesday, announcing that its U.S. oil subsidiary would continue to
provide free home heating oil to poor Americans two days after the
government announced that the program had been suspended.
Critics of President Hugo Chavez had pummeled him since Monday
for
suspending a program that he had milked for its maximum publicity as
a
champion of the poor, even in the U.S.
In the wake of Monday's announced halt, analysts had predicted
this was only the first of Chavez's ambitious foreign assistance
programs that would disappear, given the sharp drop in oil prices and
the Venezuelan government's dependence on oil export income.
Venezuelan government officials wasted no time in reinstating the
program, which saved about 180,000 U.S. households around $260 apiece
in 2008. That covered about one month's heating bill.
Among the beneficiaries of the 100 gallons of heating oil were 65
Indian tribes, including those in Alaska, Montana and South Dakota.
Alejandro Granado, the chairman, president and chief executive
officer of Citgo Petroleum, the Venezuelan government's Houston-based
oil subsidiary, said he discussed the plan to renew the program with
Chavez on Wednesday morning.
The decision "is the result of a strong commitment and a big
effort on the part of Citgo and our shareholders in light of the
current global financial crisis and its impact on the oil industry in
general," Granado said in a press statement.
Venezuelan oil, which is a lower grade than conventional crude
and
trades at a lower price, peaked at $126 a barrel in July and now
sells
for about $40 a barrel. About 93 percent of Venezuela's export
revenue
comes from oil sales, mostly to the U.S.
Granado made his statement in Boston alongside Joseph P. Kennedy
II, who's the chairman of Citizens Energy Corp., the Massachusetts-
based nonprofit that manages the program.
"Chavez is trying to save face," said Dennis Jett, a former
American ambassador who's now a professor of International Affairs at
Penn State University. "He decided he needs to hide the fact that
he's
having a cash crisis."
Monday's announcement also had prompted critics to have a field
day with Kennedy, the son of Robert F. Kennedy and a former
Democratic
congressman. Kennedy had announced that 20 staffers would be laid
off.
"For Joe, all that remains was sullied family honor and no fuel,"
Investor's Business Daily wrote Tuesday. "He'd been used by Chavez
during the boom, thrown overboard as excess baggage during the bust,
and finally realized it Monday."
Kennedy appeared to have had the last laugh, at least on
Wednesday.
Kennedy said he's "personally aware of President Chavez's genuine
concern for the most vulnerable, regardless of where they may live.
Kennedy added, "This decision is a clear, direct message from
President Chavez of his desire to strengthen relations between his
country and the United States, particularly at this time, when a new
U.S. administration is scheduled to be sworn-in within the next few
weeks."
Brian O'Connor, Citizen Energy's spokesman, said Citgo will serve
as many customers in 2009 as the year before but will spend less than
last year since oil prices have declined. The program cost Citgo $100
million in 2008.
People unable to pay their heating bills can call a toll-free
hotline number, 1-877-JOE-4-OIL, as of Jan. 19.
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