Citgo to continue to provide free oil to poor
It looks like you'll be able to call Joe for free oil after all.
Venezuelan oil company Citgo Petroleum Corp. said it planned to continue supporting a program run by Joseph P. Kennedy II that provides free heating oil to 200,000 low-income residents and Native American tribes in 23 states, including Massachusetts, just two days after Kennedy announced that Citgo was temporarily dropping out of the program.
On Monday, Kennedy, president of Citizens Energy Corp., said Citgo had to halt contributions because of plunging oil prices and the widening recession, which hurt its revenue. As a result, Kennedy warned he that he would have to cut the program by one-fifth in Massachusetts and shutter it completely in other states this year, unless he could persuade Citgo to change its mind or raise other contributions. He also said Citizens would lay off 20 staffers.
But it turns out the angst was the result of a misunderstanding. "We never stopped the program," Citgo chief executive Alejandro Granado said at a press conference today at Citizens Energy's offices in South Boston.
Both men said Citgo had been reviewing the plausibility of continuing the free oil program and that the decision-making process was taking longer than Citizens Energy Corp. had hoped. But Granado implied that Kennedy jumped the gun with his announcement Monday, which in turn turned up the political pressure on Citgo and Venezuelan President Hugo Chávez to make a decision.
Kennedy would not say whether he talked to Chávez this week, but he discussed the situation with several members of Congress and "did what was necessary to make this work." Granado told reporters he talked to Chávez yesterday morning and was given the go-ahead to continue the program.
Kennedy, a former Massachusetts congressman, has frequently touted the three-year-old program in television commercials thanking "our friends in Venezuela" for the donation, and urging people to call 1-877-JOE-4-OIL. Under the program, residents in 16 states were able to obtain up to 100 gallons of free heating oil last year. The program also provides grants to tribes in other states to help members heat their homes.
But Kennedy has also drawn criticism, because Citgo is owned by the Venezuelan government, and Chávez has been an ardent critic of the US government.
Though the Citizens Energy/Citgo program has been well publicized, social service groups point out that it is just one of many programs to help low-income families heat their home. Residents who need help paying for heating oil can call the state heating assistance hotline at 800-632-8175.
And other groups also offer help. For instance, the Salvation Army and Massachusetts energy companies run the Good Neighbor Energy Fund to help residents pay their electric, gas, and oil bills. A coalition of state utilities and community programs also runs a web site (www.energybucks.com) pointing consumers to other resources.
(By Nicole C. Wong and Todd Wallack, Globe staff)
Where is ExxonMobile, British Petroleum, and Chevron? Whats wrong, 40+ billion in profits isn't enough? Seems to me that Mr. Hugo Chavez is more generous than the likes of corrupt corporations.
Where are all the Chavez and Kennedy haters from yesterday?
Phil, you are so right! Just what I was thinking as I read the report.
Hey Phil Exxon and Chevron get their oil from Chavez. Do some research before you make dumb comments.
Time to nationalize our oil and gas, any energy our country has should not be sold to make a profit.
big corrupt corporation like exxonmobile do not help the poor but get a tax brake Hugo Chavez he is not as bad or as corrupt.
Phil Gentile wrote "Where is ExxonMobile, British Petroleum, and Chevron? Whats wrong, 40+ billion in profits isn't enough? Seems to me that Mr. Hugo Chavez is more generous than the likes of corrupt corporations."
Hugo Chavez is using Joe Kennedy as a political pawn. His people are starving and most live under conditions worse than any American. So why would such a country donate 10s of millions to America? As a political stunt designed to appeal to the dimwitted.
This program is a total scam and a ripoff for the taxpayers, Citgo gets to 'donate' its heating oil at a price that it claims is its retail value and then pocket the difference between that price and its real cost which is about 90 cents when it gets a tax refund from the treasury. And all this money does is fund terrorism in Columbia.
Mr. Chavez is indeed very generous, with oil that is not his.
This oil belongs to the people of Venezuela and is being used for political propaganda and not for their benefit or with their consent.
Joe Kennedy is paid hundreds of thousands a year by Citizens Energy.
thats great...and joe will still get paid 400 grand a year for this post....nice, i wonder how big the kickbacks are from big oil. what a sweet gig, deval must be wondering how he can get in on this if he already isnt.
Yay! The more poor people can get heating oil, the less fires and carbon monoxide poisonings there will be from people trying to heat their homes inappropriately. It saves us ALL money.
great to know bucky beaver joe the baby sitter molester will have some oil to pay off the voters
Is a Mexican with a job considered poor by definition, or does being poor include anyone who doesn't have a job? In other words: How bad do we have to be to get the free oil? Oh well, most of us are heading there, anyway. Hey- we'll all get free oil!
I was once in Caracas,Venezuela. in 1988 I found the people very interested in our country. I found them hungry for democracy. What or how does this repression come about in a free society? Why cant we get along.
What, You mean the skinny Venezuelan poor have to subsidize the obese USA poor?
I have tried calling the 877 # listed on all websites for the free oil program, but it seems the # is no longer working, no ring nothing just hangs up after a few. Really sad because my family could really use the help living in a ural town in Northern Maine is not easy in a recession.
Perhaps you should look into the fact that the employees of Citgo were told that, despite huge profits at the beginning of 2008, they would not receive a bonus so the free heating oil would continue.
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