Chavez To Offer Cheap Oil To US Poor
CARACAS, Venezuela, Aug 29 (Reuters) - Venezuela's President Hugo Chavez said on Monday his government plans to sell as much as 66,000 barrels per day of heating fuel from its U.S. Citgo refinery to poor communities in the United States.
The offer, made after populist Chavez held talks with U.S. civil rights activist Rev. Jesse Jackson, would represent 10 percent of the 660,000 bpd of refined products processed by Citgo. The deals would cut consumer costs by direct sales.
Venezuela's Energy Minister Rafael Ramirez said officials were still working on the details on how the oil would be sold from Citgo, a unit of the state oil firm PDVSA.
"We are going to direct as much as 10 percent of the production, that means 66,000 barrels, without intermediaries, to poor communities, hospitals, religious communities, schools," Chavez told reporters at a press conference.
My bet is that regulation and restrictions kill this bright idea, that Chavez and Jackson are well aware that this will happen, and it's all a set up for them to turn the poor against the Republicans and Bush.