Dan T. Posted September 27, 2006 Share Posted September 27, 2006 DALLAS - Convenience store operator 7-Eleven Inc. is dropping Venezuela-backed Citgo as its gasoline supplier at more than 2,100 locations and switching to its own brand of fuel. . . . Citgo is a Houston-based subsidiary of Venezuela's state-owned oil company, and the foreign parent became a public-relations issue for 7-Eleven because of comments by Venezuelan President Hugo Chavez. Full article: http://news.yahoo.com/s/ap/20060927/ap_on_bi_ge/7_eleven_citgo The payback begins for Hugo Chavez's UN remarks. . . Link to comment Share on other sites More sharing options...
@DCGoldPants Posted September 27, 2006 Share Posted September 27, 2006 Its own brand? what brand? Chavez has a billion oil thirsty Chinese who will be more than happy to pay top dollar for his oil. Link to comment Share on other sites More sharing options...
codeorama Posted September 27, 2006 Share Posted September 27, 2006 Isn't 7-11 owned by the Japanese now? Link to comment Share on other sites More sharing options...
Sarge Posted September 27, 2006 Share Posted September 27, 2006 Its own brand? what brand?Chavez has a billion oil thirsty Chinese who will be more than happy to pay top dollar for his oil. I think 7-11 uses Citgo as it's gas brand Good for 7-11. If only we could do the same Link to comment Share on other sites More sharing options...
@DCGoldPants Posted September 27, 2006 Share Posted September 27, 2006 I'm asking what brand they'd change to. Link to comment Share on other sites More sharing options...
mjah Posted September 27, 2006 Share Posted September 27, 2006 7-Eleven's "own brand" of fuel is coming out of refinery tanks somewhere. Probably multiple tanks from multiple refineries all over the country. How do they know there's no Venezuelan oil in their supply? This is a symbolic move only. In China and elsewhere, there's plenty of demand, and those other folks won't change their affiliations because some crazy guy said some bad stuff. Link to comment Share on other sites More sharing options...
Dan T. Posted September 27, 2006 Author Share Posted September 27, 2006 Its own brand? what brand?Chavez has a billion oil thirsty Chinese who will be more than happy to pay top dollar for his oil. Article says 7-11 will buy from oil companies in California (Tower Energy), Utah (Sinclair Oil), and Texas (Frontier Oil) and market as 7-11 brand. Link to comment Share on other sites More sharing options...
Thiebear Posted September 27, 2006 Share Posted September 27, 2006 Its own brand? what brand?Chavez has a billion oil thirsty Chinese who will be more than happy to pay top dollar for his oil. No, last i heard China is cutting back a bit. Watching the science channel they will need another planet to maintain their growth.. its unsustainable. Link to comment Share on other sites More sharing options...
zoony Posted September 27, 2006 Share Posted September 27, 2006 It's a step in the right direction. There is no pleasing some of you. ..... Link to comment Share on other sites More sharing options...
@DCGoldPants Posted September 27, 2006 Share Posted September 27, 2006 Article says 7-11 will buy from oil companies in California (Tower Energy), Utah (Sinclair Oil), and Texas (Frontier Oil) and market as 7-11 brand. and that's what I get for not clicking the link Link to comment Share on other sites More sharing options...
Dan T. Posted September 27, 2006 Author Share Posted September 27, 2006 7-Eleven's "own brand" of fuel is coming out of refinery tanks somewhere. Probably multiple tanks from multiple refineries all over the country.How do they know there's no Venezuelan oil in their supply? This is a symbolic move only. In China and elsewhere, there's plenty of demand, and those other folks won't change their affiliations because some crazy guy said some bad stuff. 7-11's a pretty big player - 2,100 locations sell gas. It's not like it will cripple Citgo, but I imagine that's still a pretty good slap in the face. Link to comment Share on other sites More sharing options...
Air Force Cane Posted September 27, 2006 Share Posted September 27, 2006 there is currently more supply than demand. hence lower gas prices. it is called basic free market capitalist economics. boycott Citgo stations.. Link to comment Share on other sites More sharing options...
Sarge Posted September 27, 2006 Share Posted September 27, 2006 Link to comment Share on other sites More sharing options...
Predicto Posted September 27, 2006 Share Posted September 27, 2006 I don't know if it is a slap in the face to Chavez so much as a cover yer butt move. If the US and Venezuela get into a knock down, 7-11 will have zero gas to sell. Plus, Chavez is a nut - he might just cut Citgo off himself. Why run that risk? Smart move on 7-11's part, IMO. Link to comment Share on other sites More sharing options...
Zen-like Todd Posted September 27, 2006 Share Posted September 27, 2006 Oil is fungible. Its a global market. He will sell his gas elsewhere. Link to comment Share on other sites More sharing options...
zoony Posted September 27, 2006 Share Posted September 27, 2006 For all of you saying this move will have no effect on Venezuela, and is only symbolic... I have a question. Why does Citgo exist? If the world oil market is only a slush fund... why would Venezuela go thru the time and effort of opening thousands upon thousands of gas stations in this country? Just a hobby? ....... Link to comment Share on other sites More sharing options...
dwbiggs Posted September 27, 2006 Share Posted September 27, 2006 So thats why my local 7-11 had signs out that the pumps would be closed the first week in Oct for "fuel line construction" Dan Link to comment Share on other sites More sharing options...
Bang Posted September 27, 2006 Share Posted September 27, 2006 How many countries will pay his outlandish taxes and tariffs, especially when he won't reciprocate and pay importing tariffs? ~Bang Link to comment Share on other sites More sharing options...
@DCGoldPants Posted September 27, 2006 Share Posted September 27, 2006 How many countries will pay his outlandish taxes and tariffs, especially when he won't reciprocate and pay importing tariffs?~Bang he'll cut a sweetheart deal with China. No doubt. Link to comment Share on other sites More sharing options...
rictus58 Posted September 27, 2006 Share Posted September 27, 2006 he'll cut a sweetheart deal with China. No doubt. Well, China's oil usage is less than 1/3 ours. Chavez would still be hurting. Plus it will drive down the price of his oil http://www.nationmaster.com/graph/ene_oil_con-energy-oil-consumption Link to comment Share on other sites More sharing options...
Destino Posted September 27, 2006 Share Posted September 27, 2006 there is currently more supply than demand. hence lower gas prices. it is called basic free market capitalist economics. boycott Citgo stations.. Has there been more demand then supply? If that were true gas prices would have gone a lot higher then they did. They'd have to have risen high enough to bend a rigid demand curve. Demand doesn't have to exceed supply for prices to rise, demand just has to increase more quickly then expected or at the same time that troubles occur with supply. Link to comment Share on other sites More sharing options...
Destino Posted September 27, 2006 Share Posted September 27, 2006 For all of you saying this move will have no effect on Venezuela, and is only symbolic... I have a question.Why does Citgo exist? If the world oil market is only a slush fund... why would Venezuela go thru the time and effort of opening thousands upon thousands of gas stations in this country? Just a hobby? ....... What effect are you talking about, long or short? There will certainly be a short term effect but without seeing the numbers I have no way to comment on how big a splash it will make. In the long term however I don't see this making much of a difference. The world needs oil and few nations have much of it. As long as that is the reality Venezuela and every other oil nation will have little trouble selling their drug. Link to comment Share on other sites More sharing options...
RunClintonRun26 Posted September 27, 2006 Share Posted September 27, 2006 I doubt a country who is so dependent on oil like the United States can afford to cut off countries who can supply it. . .This just seems to be some politicizing if you ask me. And for what? Chavez calling out Bush? And for those of you who believe that our current oil situation is on the mend, and cite low gas prices, talk back to me after the november elections . . . I have a feeling that they will go right back up. Link to comment Share on other sites More sharing options...
Zguy28 Posted September 27, 2006 Share Posted September 27, 2006 I for one will no longer buy citgo gas if I can help it. Link to comment Share on other sites More sharing options...
zoony Posted September 27, 2006 Share Posted September 27, 2006 What effect are you talking about, long or short? There will certainly be a short term effect but without seeing the numbers I have no way to comment on how big a splash it will make. In the long term however I don't see this making much of a difference. The world needs oil and few nations have much of it. As long as that is the reality Venezuela and every other oil nation will have little trouble selling their drug. My point is that Citgo corp. aggressively markets itself in the United States for a reason. If they didn't need to market, they wouldn't. Citgo is making a lot of money in the U.S. market. They WANT to be hear. Badly. I haven't seen their marketing budget but I would guess it is in the tens if not hundreds of millions. Now why would they spend all that money for something that they would just sell anyway? Could they be using their core brand/product as a springboard to make money in other areas? I don't know, but I guarantee you this is a significant blow to Citgo, and it shouldn't be downplayed. ..... Link to comment Share on other sites More sharing options...
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