Stop for a moment and give Exxon (NYSE: XOM), British Petroleum (NYSE: BP) and Chevron Corp. (NYSE: CVX) some considered thought. If you're into investing in oil, I want you to think about just exactly whose company you're showing favor to. More than ever it's time to pull the plug on Hugo Chavez by shifting your investment dollars away from Venezuelan interests and by putting Hugo Chavez's Citgo gas stations on notice. Most of America has no clue about what Hugo Chavez really is. Let me frame this for you.
You wouldn't buy groceries from a communist dictator, would you? Would you buy school textbooks from the likes of Joseph Stalin? Would you buy shop tools from the likes of Adolph Hitler? Would you go to a fresh fish market run by Fidel Castro? If you're a concerned American who's even marginally thoughtful about world history and current events, your answers to the preceding questions should be a resounding no.
If you answered no to the above questions, then why in the world would you buy gasoline from Hugo Chavez? Are you aware that Venezuela is negotiating to buy Russian submarines? I'll guarantee you that it doesn't want those subs for hunting tuna. Do you know Hugo Chavez is fully prepared to sink U.S. navel vessels if we need to attempt a blockade of Venezuelan oil transports? Hugo Chavez is actively building an offensive military and I shouldn't need to remind you that Venezuela is just a stone's throw away from your homeland. The EagleSpeak blog reports that, "Venezuela ordered weaponry from Russia worth $3.4 billion, including 24 Su-30MK2V Flanker fighters, Tor-M1 air defense missile systems, Mi-17B multi-role helicopters, Mi-35 Hind E attack helicopters and Mi-26 Halo heavy transport helicopters. ...Venezuela has become the world's second-largest importer of Russian weaponry after Algeria, which signed arms deals with Russia worth $7.5 billion."
You need to take heed of the fact that even the Venezuelan people are protesting their distrust for Hugo Chavez after he shut down Radio Caracas television for speaking in opposition against him. The Sea to Shining Sea blog comments that, "... In the wake of the RCTV protests, Chavez launched an offensive against the remaining opposition station, Globovision, and CNN, accusing them of destabilizing his government. ...The day will come when Venezuelans will not be able to stage opposition protests at all -- just like in the land of Chavez's mentor, Fidel Castro." Hugo Chavez doesn't like opposition, he hates America and he despises Israel.
The one saving grace that we may have in this situation is that Hugo Chavez is on a very "hand to mouth" budget. His cash reserves are relatively fast moving. He turns around his money very quickly and any interruption in his cash flow has immediate and significant consequences. It's time to put a serious knot in Hugo Chavez's plans for America and it should be very easy to do. Give serious consideration to where you will place your oil investment dollars and doublecheck the name on the gas station sign before you fill your fuel tank from now on. If the sign says Citgo, you may want to look down the road.
That is of course unless you want to make life easy for a communist dictator.











Reader Comments (Page 1 of 2)
6-16-2007 @ 4:30PM
john said...
somewhat confusing post. it starts off by indicating there's a strategy that Mobil/Chevron/BP can execute to put Chavez in peril. But it never follows up. Of course we all know not to buy Citgo gas but what can Big Oil do to help out here?
6-16-2007 @ 4:31PM
Michael Schneider said...
As is we need Venezuelan oil. Conservation could be helpful in lessening oil prices and demand but people are still using a lot of oil. Instead of lowering the speed limit to conserve oil many states have raised it and the SUV craze hasn't helped. I support raising gas taxes at the Federal level to pay down some of the debt and perhaps get people thinking about the national interest. Boycotting Venezuela seems like the wrong approach to what is otherwise a reasonable viewpoint.
Dr. Michael Schneider is Web master at www.Barreloworld.com and other Web sites. www.Barreloworld.com is a free international investment Web site with no registration requirements or anything like that.
6-16-2007 @ 4:32PM
Michael Schneider said...
The live link to Barreloworld:
http://www.Barreloworld.com
6-16-2007 @ 5:17PM
Gary E. Sattler said...
My suggested intent regarding BP, XOM and CVX is this:
By having American investors move dollars from Venezuelan portfolio positions into the "big three" we will be sending an undeiable message to Chavez that the American public at large is onto his game. By putting that money into American oil stocks we will have made our statement VERY personal to Chavez. Given his penchant for hot headed anger, we just might give the guy a brian aneurysm.
By shifting American investor "weight" out of his country's businesses, the Venezuelan corporate world (such as it is), will be forced to take a serious look at who is leading them.
I have no problem with oil coming from Venezuela. I just don't like the idea of our money spent being used to buy arms which shall most likely be turned against us in the not so distant future.
If history serves as pattern...
6-17-2007 @ 12:15AM
Warren Murdoch said...
Aren't most of the Citgo stations in the US owned by jobbers? I was under the impression that they were on their own to purchase their supplies. See http://blogs.chron.com/lorensteffy/2006/10/the_citgo_backl.html for more details.
6-17-2007 @ 12:31AM
Gary E. Sattler said...
Hello Warren,
Citgo gas stations are free to purchase their shelf stocking items from pretty much any local suppliers they choose. Their gasoline however originates primarily in Venezuela.
Do feel free to buy milk, cigarettes and beef jerky at your local Citgo but when it comes to filling the tank, I prefer BP myself.
Hugo Chavez also sells a great deal of heating oil in this country, under what name I'm not sure. His game in that realm is to offer extremely low cost heating fuel to Americans in desperate circumstances and then he uses that as a propaganda tool against the American administration.
Do a blog search of his name and spend a couple hours reading about him. He makes Fidel Castro look like his naughty little brother.
6-17-2007 @ 12:38PM
Ezzequios Herdoppopoulos said...
Bush is Hitler, not Chavez. You criticize Chavez on the basis of POTENTIAL OR SUPPOSED actions by him in the future,while one could CONDEMN George W. Bush RIGHT NOW for his IRAK carnage. Don't be out of focus, man.
6-17-2007 @ 12:39PM
Warren Murdoch said...
Hello Gary,
I agree with you that Hugo Chavez is an unsavory character. There are other equally unsavory characters we have to deal with in the oil markets: the mullahs of Iran, the House of Saud, the kleptocracy in Russia, among others.
I also agree with Loren Steffy that a far more effective way to send a message is to decrease our energy consumption. High oil prices encourage these despots and I prefer to consume less of their product.
I want to send a message to all these people and not just to Hugo Chavez.
6-17-2007 @ 12:41PM
John Holman said...
Shifting dollars will do nothing. Oil is traded on a global market. Venezuela, which has high-grade oil, has what the world is demanding, and it's going to sell it to somebody. We cannot lessen their income. We can be foolish and buy more expensive oil somewhere else and reduce our net income.
Much of what we believe about Chavez is false. He is the fairly elected leader of a free country that has a vital democracy. XOM still has significant operations in Venezuela. BP kills its own workers with its negligent maintenance practices, so I don't keep up with them, but they may be there as well. Statoil has significant operations in Venezuela. They would love to take over the American oil companies' Venezuelan investments. You'll seldom hear a negative thing said about Venezuela and Chavez by Statoil - because they're smart.
When the Chinese proposed buying one of America's largest oil companies, members of congress openly objected. Venezuela, unlike most of the oil producing nations on the earth, allows foreign companies to invest in projects in their country. Mexico does not. Saudi Arabia does not. Apparently some Americans share a similar attitude.
To people in South America the United States is a meddling and arrogant monster. We try to control them with threats of violence. There is a long history of this. So he buys submarines. It's a political purchase intended to do one thing: bolster his standing in Venezuela. It's easy as pie to make them think the United States is on the verge of invading their country. All they have to do is open up the opinion pages of an American newspaper and read about the man they freely elected being called a dictator and a commie and evil and all this other inane crap.
They have a democracy. They're free. If they ever decide they don't want Hugo Chavez, they'll vote him out. The United States needs to shut up about Hugo Chavez. He's essentially harmless; Venezuela and its oil belongs to Venezuela, not us.
6-17-2007 @ 5:42PM
bob rawlings said...
when is america going to learn that sticking our long noses into other countries affairs always backfires. President Hugo Rafael Chavez Frias is a hero to all of south america.In only 8 years he has accomplished miracles for the people of venezuela. the oil of venezuela now belongs to all of the people of venezuela, not just a few rich people. would someone tell me one good thing President Bush has done that affects all americans? I notice that only the rich and racists of venezuela hate him. They believe no brown man should ever be President. That 70+% of venezuelans love him. compare that to bush's 28% who like him not love him. I could write from now to doomday of the good things Pesident Chavez has done for the people of venezuela, but I will never change the capitalist elites view. bob rawlings
6-18-2007 @ 1:09PM
Gary E. Sattler said...
Well Mr. Rawlings, I'm about the furthest thing you'll find from a capitalist elitest but you'll not change my opinion of Chavez either.
I thank you for your views.
6-18-2007 @ 1:10PM
Adam said...
Venezuela is a socialist democracy, not a communist dictatorship. Furthermore, your post does not give much evidence for *why* we need to avoid venezuelan oil, or what Chavez has done to earn your scorn. Also, he has not shut down any media stations at all, he just refused to renew their license once it expired. If CNN participated in extreme anti-bush propaganda and then encited riot to start a coup, I doubt Bush and his friends would be so kind to CNN once they were put back in power. I realize that Chavez is not perfect or even of the highest moral fiber, but I'd rather buy product from him than saudi arabia.
6-18-2007 @ 1:26PM
Freda Neuwirth said...
It is curious that you compare Hugo Chavez's weapons shopping to Algeria. What did Algeria accomplish and who is it fighting with?
One of the comments above compares President Bush to Hitler. The person who came up with this moniker, Soros, ought to have known better, but did not, which is proof positive that money does not make one wiser.
Another comment insists th all of South America admires Chavez. So what? Most of Europe admired Hitler in the 1930s, was that right? It ruined Europe for the next half century and left tens of millions dead and maimed.
The USA ought to pay more attention to what is going on in South America and particularly Venezuela, but it is hurting from all the idiotic accusations it gets about its missteps in the Middle East as if no administration before ever made errors of judgement. It is amazing how few people remember that it was the Democrats under President Kennedy to get involved in Vietnam. and mainly because they thought that every president needs a war.
Memory is a very selective thing, appearantly.
6-18-2007 @ 1:26PM
golfpman said...
why not use up the oil of our enemies so our friends have oil when our enemies do not?
6-18-2007 @ 9:33PM
fernando said...
Venezuela is not Hugo Chávez, we the venezuelan people loves the democracy and the freedom, we don't have the blame that nobody helps us, we are in a lunatic's hands, a lunatic that has closed 6000 manufactures in 8 years, and what happend with the rest of the world? NOTHING......!!!!THINK IT......The rest of the world cannot be stupid neither to be hypnotized by Chávez, ohhhh for God!!!Chávez makes what gives the desire with USA, with the American people & Bush, not even Saddam Hussein insulted to his own town as Chávez in these last 8 years.......was Panama but important that Venezuela for the USA? was Irak but important that Venezuela?¿where this the man that puts an end to this torture? we dont want to see this man alive!is it Chavez so special that nobody acts?¿What this waiting Condolezza Rice to be pronounced of a single time? we prefer the war that to continue living with damned Chávez! it is this way?!
6-19-2007 @ 12:50AM
Lisa said...
If I had a car to fill with gas, I'd go out of my way to patronize Citgo stations. Why? Just another little way for me to tick off the Bush Regime, that's why. Chavez is a first-rate nut bar, but he's no threat to the United States. Let him rant all he pleases. If he keeps getting (legitimately) re-elected, then it's democracy, and we have no right to objecting to a democratically elected head of a government.
The Bush regime, on the other hand, presents a clear danger to our own freedom and our own Constitution. And, since the Bush regime is also partially propped up and driven by oil revenues, I do my little bit by refusing to own a car, much less fill it with gasoline.
6-19-2007 @ 5:48PM
erich said...
What happend with the embassies in Venezuela?, Italy, Germany, Portugal, Spain, Canada???? none says anything, apart from USA.....It´s that they will maybe wait that they kill us all?. The under communist world or underworld indirectly is murdering the civil Venezuelan population, it is the sad true!!!, thousands of thousands of civilians have died and the damned Chávez says anything in this respect in his tedious speeches...So?......It´s that they will maybe wait that they kill us all so that this murderer falls? is it that we will be the next deads of the holocaust? of the Hitler-Chávez-Saddam-Mussolini pact? in few words, the Venezuelans lost the faith in the institutions like "OEA or the UN" when we see the twilight Koffi Annam hugging Fidel Castro UFFFFF....incredible!!.........."Is the height of the nerve", ¿up to where the military of Venezuela will arrive? ¿that they allow to sell their homeland to Cuba for thousands of millions of $?.....¿It´s that the embassies had not maybe realized what spends in Venezuela in the last eight years?...¿where do they live?....ahhhh yeah! in a last model of an Mercedes Benz!!!!!..I believe that if the countries that benefit of the Venezuelan petroleum don't make it swims soon, we will have to resign to be all chavistas like Cubans, and to unite against the countries that didn't shake hands to us!.. "We the 70% of the population against Chavez"!!!!, in spite of having helped them in the worst moments......We hope you reflect before it is too late! Erich Wamprechts. ¡Caracas June 18 2007!
6-20-2007 @ 11:46AM
Fernando Wamprechts said...
WE THE VENEZUELANS THAT NOT YET HAVE EMIGRATED FROM THIS COUNTRY, INVITES YOU CORDIALLY TO ALL THE PEOPLE THAT MAKE COMMUNISTS PLANS IN THE COFFEES OF EUROPE AND IN THE REST OF THE WORLD SEATED AND READING ITS NEWSPAPER IN THE CAFÉS OF THE RUE DE TIVOLI IN PARIS ETC., TO COME AND TO LIVE IN VENEZUELA!!!,,,,,, SO THAT YOU GET USED TO TREATED BE ACE NOT EVEN AS STREET DOGS IN THE MOST BASIC PUBLIC SERVICES, SO THAT YOU ACCUSTOMS TO THE ORGANIZED DELINQUENCY TO KILL YOU FOR THE SIMPLE REASON TO WEAR A PLASTIC WATCH, OR A SPORT SHOES,.........SO THAT YOU COHABIT WITH ALL KINDS HUMAN RIGHTS VIOLATIONS, SO THAT YOU COHABIT WITH THE FACE AND VOICE OF CHÁVEZ EVERY TIME THAT HE IS FANCIED TO CHAIN THE TELECOMMUNICATIONS FOR HOURS AND HOURS, KNOWING EXACTLY THE PSYCHOLOGICAL DAMAGE THAT HE MAKES TO THE POPULATION, CREATING ANGUISHES AND FEAR WITH ITS THREATS OF EXPROPRIATION, TO LIVE FORCED IN OUR HOUSINGS AND APARTMENTS, TO LIVE CONTAINED AT HOME LATER OF SIX IN THE AFTERNOON FOR THAT TO LEAVE IS ALREADY AT YOUR OWN RISK, A COUNTRY WITHOUT CONSTITUTIONAL GUARANTEES, SO THAT GET USED TO NOT FINDING SUGAR, NEITHER MILK, NEITHER MEAT, NEITHER AUTO PARTS, WE INVITE TO ALL THE FANATIC COMMUNISTS COMUNITY OF THE CIVILIZED WORLD TO LIVE IN THE MOST POOR CITIES AREAS OF THE COUNTRY,,,,,,TO BE ASSISTED FOR THE FEW "CUBAN" DOCTORS THAT HAVE NOT STILL ESCAPED FROM VENEZUELA..........TO ALL THOSE PSEUDO-REVOLUTIONARIES THAT LIVE COMFORTABLY IN CIVILIZED COUNTRIES WITH THE BENEFITS OF THE RIGHT AND WITH THE LOT OF MONEY THAT SENDS THEM CHÁVEZ TO MAINTAIN IT IN THE POWER WITH ITS OPINIONS....WE, ALL THE VENEZUELANS FED UP WITH THE TYRANNY AND NIGHTMARE OF CHÁVEZ WE INVITE YOU DON'T AS A TOURISTS, NOT TO ENJOY THE BEACHES AND THE COMMUNIST SUN, BUT TO HELP CRAZY CHÁVEZ TO MAKE THEIR "BEAUTIFUL REVOLUTION OF HUNGER" IN THE NAME AND FOR THE "POCKET" OF FIDEL CASTRO & BROTHERS.
DEAR COMMUNISTS, COMRADES CHAVISTAS THAT LIVE IN THE CIVILIZED COMFORTS OF THE INDUSTRIALIZED COUNTRIES AND THAT ENJOY THE BENEFITS OF THE CAPITALISM AND THE "IMPERIALISM", BE NOT SIMPLE OBSERVERS FROM FAR COUNTRIES, (BE NOT AFRAID)(BE NOT COWARDLY), LEAVE THE CAPITALISTS COUNTRIES AND THEIR PRIVILEGES WHERE YOU LIVE AND PLEASE COME TO LIVE IN VENEZUELA TO HELP YOUR DEAR CHÁVEZ IN THAT THE CRAZY LUNATIC AND CORRUPT CALLS TRANFORMACION OF ALL THE SOCIETY OF THE WORLD OR "SOCIALISM OF THE TWENTY ONE CENTURY", TO SEE IF IT'S POSSIBLE, BUT BEGINS HERE, BUT BEGIN WITH THE FAMILY OF CHÁVEZ THAT BEFORE WERE POOR HUNGRY TEACHERS AND NOW THEY ARE OWNERS OF A COMPLETE STATE.
Fernando Wamprechts.
6-21-2007 @ 12:49AM
Fernando Wamprechts said...
Mr. Holman.
If in Latin America the Latins think that USA is an arrogant monster, ¿why are 15.000.000 or more of Latin inmigrants in the USA?... USA is an open country to all the nationalities!!! in the history it has always been this way.
Well, it is the obligation of each nation to take care of their frontiers, for the receipt of their customs, security and culture!! not all the north Americans wants to eat tacos everyday, ace well ace not all the Mexicans or Bolivians will to eat hamburgers or pancakes also every day, so I believe that the discussion that the chancellor from Venezuela sustained with C. Rice it is so stupid that only a follower of Chávez can reach such a disheveled conclusion.......It is an obligation of each country to select their immigration, for not arriving to the ends to those that Venezuela has arrived, an immigration of illiterates Latin Americans that only look for the economic interest and to subsist but not to make grow the country....The frontier of a country cannot be opened to as much as criminal leaves his country, for that the bases of an prosper economy depends on an intelligent, well formed population and workers, and that it is the reason of the great puts back of these nations.......Fernando Wamprechts.
6-21-2007 @ 12:25PM
FERNANDO WAMPRECHTS said...
SO THAT EVERYBODY KNOWS IT, THE ELECTORAL INSTITUTION OF VENEZUELA OR C.N.E., BELONGS TO Mr. CHÁVEZ, AND THE BEST PROVES IN IT IS THAT SO FOR THREE DAYS ONLY IS MADE AN ABROGATIVE FOR MAYORS AND GOVERNORS, AND ONLY ATTENDED THE 3% OF THE ELECTORAL POPULATION!!!.... NOW CHÁVEZ WILL TELL US WITHOUT NERVE THAT THE VOTINGS WERE A GREAT SUCCESS AND THAT THEY VOTED 10.000.000 OF VOTERS WHEN IN FACT WE KNOWS THAT THE CENTERS OF VOTING WAS COMPLETELY EMPTY, ONLY IN ONE CENTER OF VOTING OF 20.000 VOTERS, VOTED 9..... WHAT HAPEND IN VENEZUELA????..... VERY SMPLE:......THE ELECTORAL INSTITUTION OR C.N.E. BELONGS ONLY TO HIM, TO Mr. CHÁVEZ AND WHAT THE ONE SAYS SHOULD BE COMPLETED UNTIL THE FOOT OF THE LETTER, BUT FOR THAT NOBODY WENT TO VOTE? "FOR THAT NOBODY BELIEVES IN CHAVEZ AND THIS INSTITUTION GIVEN TO THE FRAUD SINCE THE SAME ONE CREATE IT"........... SO MY FRIENDS THE VENEZUELANS PLOWS IN TO A DARK TUNNEL WITHOUT EXIT, MILITARY THE WHO WHO NOW WILL HAVE 9 NEW BOUGHT SUBMARINES TO THE OTHER ONE ALMOST AND ALREADY DICTATOR "WLADIMIR PUTIN" IS ARMED UNTIL THE TEETH, SO THE POOR VENEZUELAN CIVILIAN PEOPLE IS IN THEIR HANDS. ........WE CANNOT MAKE ANYTHING, THE EMBASSIES MAKES THEIR OWN BUSINESS, THE AMBASSADORS IN THEIR HUMMERS AND RESTAURANTS, THE INTERNATIONAL OPINION DECEIVED FOR ONE ADVERTISING CAMPAIGN IN THE HANDS OF CHÁVEZ AND HIS THOUSANDS OF MILLIONS OF PETRO DOLLARS, THE BILLS OF CHÁVEZ ASCENDING EVERY DAY FOR THEIR OWN BUSINES OR FOR HIS MOTHER, FATHER (GOVERNOR) BROTHERS (MINISTERS) & COUSINS BENEFITS AND OF COURSE THE IMMORAL SUSTENANCE TO THE REST OF THE FEW ONES COMMUNIST COUNTRIES, "IF YOU SAY SOMETHING YOU ARE OUT OF THIS FAMILY OF DIRTY BUSINES"..... """"JOURNALISTS OF THE WHOLE WORLD""""I MAKE YOU A CALL OF AIDS, IF IT HAS HURTED YOU THAT CHÁVEZ CLOSED THE "RADIO CARACAS TELEVISION CHANEL" FEWER OF ONE MONTH, THEN ITS THE TIME TO MAKES A CAMPAIGN AGAINST HIM,,,,,, I INVITES ALL OF YOU TO VISIT IN VENEZUELA ONE THE HUNDREDS OF ABANDONED PUBLIC HOSPITALS, ABANDONED PUBLICS MARKETS, ABANDONED BENEFICENT INSTITUTIONS, ABANDONED OR CEMETERIES INDUSTRIAL AREAS, ABANDONED HIGHWAYS, ABANDONED BRIDGES, ABANDONED TOURISM, ABANDONED DECLARED AREAS IN TRAGEDY, ABANDONED NEIGHBORHOODS, ABANDONED WHOLE CITIES, ABANDONED FORESTS, ABANDONED MINES, ABANDONED MUSEUMS, ABANDONED ARTISTS, ABANDONED CHILDREN OF THE STREETS, ABANDONED OLD OF STREETS, ABANDONED RIVERS, ETC., ETC SO THAT THE WHOLE WORLD KNOWS THE SUFFERING OF THIS COUNTRY AND HIS PEOPLE IN THE ABSOLUTE HANDS THE TIRAN-EMPEROR CHAVEZ,THE ONE THAT ALL CAN BUY THE CONSCIENCE AND THE MORALS OF THE TOWNS AND THEIR POLITICIANS, AND THAT IT´S THE REASON FOR WHICH BUSH CANNOT SEE HIM, HE HAS NEVER CROSSED A SINGLE WORD WITH THE ONE,,,, HERE YOU ARE GOING TO HAVE ENOUGH CLOTH TO CUT, AND IF YOU HAVE ANY DOUBT, TAKE PLEASE THE FIRST FLIGHT TO CARACAS OR MARACAIBO, OR VALENCIA OR CIUDAD BOLIVAR, WHERE THE STREETS ARE INVADED BY THE MISERY, THE HUNGER, THE INDIANS AND CHILDREN REQUESTING CHARITY, THE CORRUPTION, THE IMMORALITY AND THE EFFRONTERY AT ALL THE LEVELS OF THE GOVERNMENT, THE SHAMELESS OF A TIED SOCIALISM NOW TRANSFORMED INTO COMMUNISM IN YOUR OWN NOSES......... GOOD COMES TO VISIT TO WORK HARD IN VENEZUELA BUT NO AS A TURISTS ONE !!!! STAY HERE MORE THEN A MONTH SO THAT YOU CAN EXERCISE YOUR PROFESSION AND TELL TO EVERYBODY IN THE WORLD WHAT CLASS OF GARBAGE IS HUGO CHÁVEZ FRIAS!! HE IS IN YOUR HANDS NOW, IT IS TIME OF STOPPING IT. COARSE OF SO MUCH IMMORALITY.
FERNANDO WAMPRECHTS. wamprechts@yahoo.es