7-11 Drops Citgo

UDT89

Diamond Member
Jul 31, 2001
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http://news.yahoo.com/s/ap/20060927/ap_on_bi_ge/7_eleven_citgo

7-Eleven dropping Venezuela-backed Citgo By DAVID KOENIG, AP Business Writer
18 minutes ago



DALLAS - 7-Eleven Inc. is dropping Venezuela-backed Citgo as its gasoline supplier after more than 20 years as part of a previously announced plan by the convenience store operator to launch its own brand of fuel.

7-Eleven officials said Wednesday that the company's decision was partly motivated by politics.

Citgo Petroleum Corp. is a Houston-based subsidiary of Venezuela's state-run oil company and 7-Eleven is worried that anti-American comments made by Venezuelan President Hugo Chavez might prompt motorists to fill-up elsewhere.

Chavez has called President George W. Bush the devil and an alcoholic. The U.S. government has warned that Chavez is a destabilizing force in Latin America.

"Regardless of politics, we sympathize with many Americans' concern over derogatory comments about our country and its leadership recently made by Venezuela's president," said 7-Eleven spokeswoman Margaret Chabris.

"Certainly Chavez's position and statements over the past year or so didn't tempt us to stay with Citgo," she added.

Instead, 7-Eleven, which sells gasoline at 2,100 of its 5,300 U.S. stores, will now purchase fuel from several distributors, including Tower Energy Group of Torrance, Calif., Sinclair Oil of Salt Lake City, and Houston-based Frontier Oil Corp.

Chabris said 7-Eleven's decision to sell its own brand was based on many factors, including Citgo's decision this summer to stop supplying stations in parts of Texas and other states to focus on retailers closer to its refineries in Corpus Christi, Lake Charles, La., and Lemont, Ill.

But 7-Eleven had been considering creating its own brand of fuel since at least early last year, and some analysts suggested 7-Eleven may now be hyping the political angle a way to curry favor with U.S. consumers.

"This has nothing to do with Chavez," said Oil Price Information Service director Tom Kloza. "They (7-Eleven) just didn't want to be tied to one supplier."

Kloza said all 7-Eleven did was seek out suppliers who could sell it the cheapest fuel and "that was not Citgo."

Citgo spokesman Fernando Garay declined to comment on whether Chavez's comments had a bearing on 7-Eleven's change in suppliers. He said the break was "a mutual agreement of the two companies."

Garay said 7-Eleven was a "significant" part of Citgo's retail presence in Texas and Florida. "It was a valued relationship," he said.

In July, Citgo decided to stop distributing gasoline to 1,800 independently owned U.S. stations because it was a lackluster segment of its business.

In order to meet service contracts at 13,100 Citgo-branded stations across the U.S., Citgo had to purchase 130,000 barrels a day from third parties ? a less profitable business model than selling gasoline directly from its refineries.

Citgo was founded in 1910 as the Cities Service Co., according to the company Web site, and 7-Eleven's predecessor, The Southland Corp., bought Citgo from Occidental Petroleum in 1983.

7-Eleven sold half its interest in Citgo in 1986 and the remaining stake in 1990 to Petroleos de Venezuela SA.

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Whatever the motives, political or business strategy, i still like it.
 

Sqube

Diamond Member
Dec 23, 2004
3,078
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It sounds like they were planning on doing this anyway; seems partly disingenuous to make it appear that they were doing it out of some sense of patriotic obligation.
 

UDT89

Diamond Member
Jul 31, 2001
4,529
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Originally posted by: Sqube
It sounds like they were planning on doing this anyway; seems partly disingenuous to make it appear that they were doing it out of some sense of patriotic obligation.

i totally agree. i wasnt buying citgo anyway, so it will be nice to hit 7-11 and get gas when it change.

i'll be curious to see what they're selling at what price in a few weeks.
 

SaltBoy

Diamond Member
Aug 13, 2001
8,975
11
81
Even if it *really* might not be a politically-motivated move, I'm still glad they brought it up. I'm definitely not a Bush fan, but Chavez's comments were just stupid.

Certainly Chavez's position and statements over the past year or so didn't tempt us to stay with Citgo," she added.

:thumbsup:
 

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Good. Although it looks like this move won't hurt Citgo any.
 

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Originally posted by: Turin39789
I'll stick with my citgo
Why? Besides the Chavez political crap, it's known that Citgo is crap gas anyway. On par with bottom-of-the-barrel Arco.
 

Turin39789

Lifer
Nov 21, 2000
12,218
8
81
Originally posted by: Vic
Originally posted by: Turin39789
I'll stick with my citgo
Why? Besides the Chavez political crap, it's known that Citgo is crap gas anyway. On par with bottom-of-the-barrel Arco.

It's cheap and convenient, and I drive a beater. If I were to let politics influence my gas/car buying decisions, I'd drive something with better mileage.



I'm going to go ahead and nominate this thread for P & N early.
 

amdhunter

Lifer
May 19, 2003
23,332
249
106
Originally posted by: Sqube
It sounds like they were planning on doing this anyway; seems partly disingenuous to make it appear that they were doing it out of some sense of patriotic obligation.

Fvck that, if the Taliban themselves openned a gas station that sold gas for 10 cents less than anyone else, I'd be first in line. Patriotism doesn't mean anything when it comes to my wallet.
 

Miramonti

Lifer
Aug 26, 2000
28,653
100
106
Chavez is 1/10 the evil Bush is and proves it continuously. Bush hates Chavez because he doesn't pander to the Bush interventionist policies of the world.

Imo fvck the wannabee dictator Bush, and fvck 7/11 - I'll never shop there again.

 

UDT89

Diamond Member
Jul 31, 2001
4,529
0
76
Originally posted by: amdhunter
Originally posted by: Sqube
It sounds like they were planning on doing this anyway; seems partly disingenuous to make it appear that they were doing it out of some sense of patriotic obligation.

Fvck that, if the Taliban themselves openned a gas station that sold gas for 10 cents less than anyone else, I'd be first in line. Patriotism doesn't mean anything when it comes to my wallet.

wow, i've never wanted to punch someone in the face before over the internet.

you're the first
 

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Originally posted by: jjsole
Chavez is 1/10 the evil Bush is and proves it continuously. Bush hates Chavez because he doesn't pander to the Bush interventionist policies of the world.

Imo fvck the wannabee dictator Bush, and fvck 7/11 - I'll never shop there again.
I don't like Bush and never voted for him, but this post is idiocy in the extreme.

Bush might be a wannabe dictator, but Chavez IS a dictator. Get a clue.

And about your linked article, if Bush led the 2002 revolt, and if it was a right-wing movement, then why did the left-wing CTV (Confederation of Workers of Venezuela) labor union start it by calling for a 2-day general strike and marching on the headquarters of PDVSA? Why did the Venezuelan National Guard, under Chavez's orders) fire on the unarmed CTV demonstrators? Why did Chavez then take control of the Venezuelan media for 3 days to suppress that information? Why did the Commander of the Venezuelan Armed Forces, Lucas Rincón Romero, announce that Chavez had voluntarily resigned? After Chavez regained the presidency 2 days later, why did he then reappoint Rincón, the man who supposedly betrayed him to Carmona, as Commander of the Army and then make him the Interior Minister in 2003?

Yeah, it don't fsckin' add up, now does it?
 

OutHouse

Lifer
Jun 5, 2000
36,410
616
126
:thumbsup:

way cool! now if i had a 7-11 nearby i will start buying gas from them after all the Chavez gas is gone. the State Dept should ban Citgo imports period.

im no fan of Bush, but you dont come into our country and flame our president.
 

UDT89

Diamond Member
Jul 31, 2001
4,529
0
76
Originally posted by: Vic
Originally posted by: jjsole
Chavez is 1/10 the evil Bush is and proves it continuously. Bush hates Chavez because he doesn't pander to the Bush interventionist policies of the world.

Imo fvck the wannabee dictator Bush, and fvck 7/11 - I'll never shop there again.
I don't like Bush and never voted for him, but this post is idiocy in the extreme.

Bush might be a wannabe dictator, but Chavez IS a dictator. Get a clue.

And about your linked article, if Bush led the 2002 revolt, and if it was a right-wing movement, then why did the left-wing CTV (Confederation of Workers of Venezuela) labor union start it by calling for a 2-day general strike and marching on the headquarters of PDVSA? Why did the Venezuelan National Guard, under Chavez's orders) fire on the unarmed CTV demonstrators? Why did Chavez then take control of the Venezuelan media for 3 days to suppress that information? Why did the Commander of the Venezuelan Armed Forces, Lucas Rincón Romero, announce that Chavez had voluntarily resigned? After Chavez regained the presidency 2 days later, why did he then reappoint Rincón, the man who supposedly betrayed him to Carmona, as Commander of the Army and then make him the Interior Minister in 2003?

Yeah, it don't fsckin' add up, now does it?

that news site is written by a three year old. i think i saw an article about a new color of crayon on there as breaking news.

 

Phokus

Lifer
Nov 20, 1999
22,994
779
126
Originally posted by: chambersc
Originally posted by: UDT89
http://news.yahoo.com/s/ap/20060927/ap_on_bi_ge/7_eleven_citgo


<snip>
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Whatever the motives, political or business strategy, i still like it.

Agreed. The only way to successfully deal with madmen is to marginalize them and at the same time publically shame them.


So what are your plans for marginlizing and publicly shaming bush?
 

UDT89

Diamond Member
Jul 31, 2001
4,529
0
76
Originally posted by: Citrix
:thumbsup:

way cool! now if i had a 7-11 nearby i will start buying gas from them after all the Chavez gas is gone. the State Dept should ban Citgo imports period.

im no fan of Bush, but you dont come into our country and flame our president.

EXACTLY. Fine, dont like Bush; but LOVE your country.
 

Miramonti

Lifer
Aug 26, 2000
28,653
100
106
Originally posted by: Vic
Originally posted by: jjsole
Chavez is 1/10 the evil Bush is and proves it continuously. Bush hates Chavez because he doesn't pander to the Bush interventionist policies of the world.

Imo fvck the wannabee dictator Bush, and fvck 7/11 - I'll never shop there again.
I don't like Bush and never voted for him, but this post is idiocy in the extreme.

Bush might be a wannabe dictator, but Chavez IS a dictator. Get a clue.

And about your linked article, if Bush led the 2002 revolt, and if it was a right-wing movement, then why did the left-wing CTV (Confederation of Workers of Venezuela) labor union start it by calling for a 2-day general strike and marching on the headquarters of PDVSA? Why did the Venezuelan National Guard, under Chavez's orders) fire on the unarmed CTV demonstrators? Why did Chavez then take control of the Venezuelan media for 3 days to suppress that information? Why did the Commander of the Venezuelan Armed Forces, Lucas Rincón Romero, announce that Chavez had voluntarily resigned? After Chavez regained the presidency 2 days later, why did he then reappoint Rincón, the man who supposedly betrayed him to Carmona, as Commander of the Army and then make him the Interior Minister in 2003?

Yeah, it don't fsckin' add up, now does it?

There's no question about Bush ties including funding, tactical support, and the blessing that Washington would receive the new government. The only question remains is about your reading comprehension where you gathered from the article he "led" it.

The message is clear to the Bush admin, quit meddling with others' government. Apparently you don't like how Chavez handled the coup attempt against him, for that I provide an e-tissue, but does not change the facts.

Chavez, democratically elected, has been far from evil by any stretch of the imagination. This government doesn't like his socialist policies because its not as profitabe and secure for our interests, so we demonize him...for that I offer another e-tissue.
 

alien42

Lifer
Nov 28, 2004
12,848
3,278
136
Originally posted by: Phokus
Originally posted by: chambersc
Originally posted by: UDT89
http://news.yahoo.com/s/ap/20060927/ap_on_bi_ge/7_eleven_citgo


<snip>
--------------------------------------------------------------------------------------------------------

Whatever the motives, political or business strategy, i still like it.

Agreed. The only way to successfully deal with madmen is to marginalize them and at the same time publically shame them.


So what are your plans for marginlizing and publicly shaming bush?

touche

 

theeedude

Lifer
Feb 5, 2006
35,787
6,197
126
It doesn't make any difference, since Gasoline is a commodity like oil. If they don't sell it through CITGO gas stations, they'll just sell it to someone else who will sell it.