7-Eleven Kicks Chavez to the Curb

[01Snake]

7-Eleven to End Relationship with Venezuela-Backed Citgo

Wednesday, 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.

The retailer said Wednesday it will purchase fuel from several distributors, including Tower Energy Group of Torrance, Calif., Sinclair Oil of Salt Lake City, and Houston-based Frontier Oil Corp.

A spokeswoman for Dallas-based 7-Eleven said its 20-year contract with Citgo Petroleum Corp. ends next week. About 2,100 of 7-Eleven's 5,300 U.S. stores sell gasoline.

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.

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.

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

Chabris said a boycott of Citgo gasoline would hurt the 4,000 employees of the U.S. subsidiary, who have no connection to Venezuela.

7-Eleven had been considering creating its own brand of fuel since at least early last year. Company officials said at the time they had spoken with independent fuel distributors.

[Yonivore]

7-Eleven to End Relationship with Venezuela-Backed Citgo

Wednesday, 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.

The retailer said Wednesday it will purchase fuel from several distributors, including Tower Energy Group of Torrance, Calif., Sinclair Oil of Salt Lake City, and Houston-based Frontier Oil Corp.

A spokeswoman for Dallas-based 7-Eleven said its 20-year contract with Citgo Petroleum Corp. ends next week. About 2,100 of 7-Eleven's 5,300 U.S. stores sell gasoline.

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.

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.

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

Chabris said a boycott of Citgo gasoline would hurt the 4,000 employees of the U.S. subsidiary, who have no connection to Venezuela.

7-Eleven had been considering creating its own brand of fuel since at least early last year. Company officials said at the time they had spoken with independent fuel distributors.
Good for them! Slurpees all around.

Too bad the reporter didn't seek a comment from Venezuelan President Hugo Chavez, eh?

[01Snake]

http://www.worldwide-web.com/JeffreyBabad/Simpsons/Apu/apu2.gif

[boutons_]

This is stupid.

The US needs any oil more than Chavez needs the US to buy VZ oil.

Chavez is already trying to reduce/eliminate his oil sales to USA.

So 7-11 is simply going along with Chavez's objectives.
Fucking brilliant.
Causes NO PAIN to Chavez at all.

[Crookshanks]

This is stupid.

The US needs any oil more than Chavez needs the US to buy VZ oil.

Chavez is already trying to reduce/eliminate his oil sales to USA.

So 7-11 is simply going along with Chavez's objectives.
Fucking brilliant.
Causes NO PAIN to Chavez at all.

Maybe it doesn't cause him any financial pain; however, it does send a message that you can't come to this country and trash our president without suffering the consequences. It's just possible that Chavez got a real kick out of us buying his gasoline - it gave him moral superiority.

We showed him we don't need him or his stinking oil!

[boutons_]

Crook

there are NO consequences to the 7-11 charade for VZ.

China and the rest of the world will readily buy up any oil CitGo can't sell in the USA.

7-11 may cause a lot of lost jobs at CitGo, shooting the USA in the foot.

[johnsmith]

This is stupid.

The US needs any oil more than Chavez needs the US to buy VZ oil.

Chavez is already trying to reduce/eliminate his oil sales to USA.

So 7-11 is simply going along with Chavez's objectives.
Fucking brilliant.
Causes NO PAIN to Chavez at all.


Seriously, I'll pay for you to move out of the country.

[ChumpDumper]

Maybe it doesn't cause him any financial pain; however, it does send a message that you can't come to this country and trash our president without suffering the consequences. It's just possible that Chavez got a real kick out of us buying his gasoline - it gave him moral superiority.

We showed him we don't need him or his stinking oil!Psst. We're still buying his gasoline.

And if we don't, China will.

With our money.

We sure showed him.

[Crookshanks]

I guess you guys can't read. I said there wasn't any financial pain for Chavez - I said it was the message we sent. If you come here and trash our president, then we won't do business with you. Lets him know that not everyone agrees with his views.

[RandomGuy]

Fungibility is a measure of how easily one good may be exchanged or substituted for another example of the same good at equal value.

http://en.wikipedia.org/wiki/Fungibility (full article worth reading to understand topic)

If we don't buy VZ oil, somebody will. This commodity market does not allow for people to pick and choose.

The best analogy I ever heard was ironically from a Dilbert cartoon I think:

It is as if all the oil in the world gets poured into a bathtub and buyers simply drain out what they want to buy.

There is no real seperating any one source from any other.

That said:

If you want to stick it to Chavez, get rid of the demand for oil.

[ChumpDumper]

He's not playing to the Slurpee and beef jerky crowd. If it's a message, he's not even opening the envelope.

[Phenomanul]

Maybe it doesn't cause him any financial pain; however, it does send a message that you can't come to this country and trash our president without suffering the consequences. It's just possible that Chavez got a real kick out of us buying his gasoline - it gave him moral superiority.

We showed him we don't need him or his stinking oil!


I have an 'in' on this story.... and the decision to not extend CITGO's contract was made about 5 months ago.... well before Chavez's UN speech.

[Mr. Peabody]

I have an 'in' on this story.... and the decision to not extend CITGO's contract was made about 5 months ago.... well before Chavez's UN speech.

You're telling me that 7-Eleven didn't overhaul its operational structure as a knee-jerk reaction in defense of our President's good name and honor. That's surprising.

[Spurminator]

Wow, what a total non-story.

Score another one for Drudge.

[Guru of Nothing]

And in other news, I bought gas today - and I don't know where it came from.

[scott]

This is nothing more than 7-11 striking deals with other companies on more favorable terms. This isn't a jab at VZ (since Citgo refineries that would supply 7-11s are... you guessed it, in the US) and it doesn't put any more or any less VZ crude oil onto the market.

[Notorious H.O.P.]

I guess you guys can't read. I said there wasn't any financial pain for Chavez - I said it was the message we sent. If you come here and trash our president, then we won't do business with you. Lets him know that not everyone agrees with his views.

I'm sure he's in his office right now thinking "I better shut my mouth before other people decide to follow 7-11s lead".

Or "Maybe I shouldn't have called him the devil."

Or "Damn the US by not buying our oil!"

There is no message sent here. No financial pain, no loss of moral superiority. If I were him, I'd actually laugh about this.

But if it is true that 7-11s decision was made before the UN speech than it is a great PR ploy by 7-11 to pimp the announcement that they are not renewing the contract based on Chavez derogatory comments. It gives them the appearance of standing on higher moral and ethical ground, and by further exposing the Chavez-VZ-Citgo connection to a wider consumer base, it attempts to pull business from Citgo selling competitors to it's own independent and US produced fuel brand.

Slurpees all around indeed.

[ChumpDumper]

I was mildly surprised Southland went out of their way to say Chavez' comments had nothing to do with their decision although they said they understand the furor over his words and certainly don't approve or agree with them.

[Yonivore]

This is nothing more than 7-11 striking deals with other companies on more favorable terms. This isn't a jab at VZ (since Citgo refineries that would supply 7-11s are... you guessed it, in the US) and it doesn't put any more or any less VZ crude oil onto the market.
So, losing a major Citgo customer doesn't affect their bottom line at all?

And, I won't argue that 7-11 was making any moral distinction. After more reading, I agree the timing is just coincidental.

But, seriously. If Citgo is a wholly owned subsidiary of Venezuela, wouldn't losing a major customer, such as Southland Corporation (if that's who still owns 7-11), have some impact?

[NASCARdad]

Don't do no good since Habib will still be behind the counter.

[Phenomanul]

So, losing a major Citgo customer doesn't affect their bottom line at all?

And, I won't argue that 7-11 was making any moral distinction. After more reading, I agree the timing is just coincidental.

But, seriously. If Ci_tgo is a wholly owned subsidiary of Venezuela, wouldn't losing a major customer, such as Southland Corporation (if that's who still owns 7-11), have some impact?


C_IT_GO sells more gasoline than they actually produce.... they end up having to buy gasoline from other refiners, and have to add their own additives before they can sell it. This is highly unprofitable from a refining standpoint but good from a PR standpoint.

Not extending the contract then was a way of cutting back the marketing costs associated with that practice.

The other option was to expand the refining capacity. But that was not in P_D_V_SA's vision for the company.

Either way, the same amount of Venezuelan crude is still being processed by C_IT_GO refineries in the U.S. - that number hasn't changed.

[Yonivore]

C_IT_GO sells more gasoline than they actually produce.... they end up having to buy gasoline from other refiners, and have to add their own additives before they can sell it. This is highly unprofitable from a refining standpoint but good from a PR standpoint.

Not extending the contract then was a way of cutting back the marketing costs associated with that practice.

The other option was to expand the refining capacity. But that was not in P_D_V_SA's vision for the company.

Either way, the same amount of Venezuelan crude is still being processed by C_IT_GO refineries in the U.S. - that number hasn't changed.
Not that I'm going to spend a whole hell of a lot of time trying to noodle through this but you cannot tell me that Venezuelan owned CITGO did not benefit from Southland Corporation's exclusive use of the CITGO brand.

[ChumpDumper]

What was that benefit?

[Yonivore]

What was that benefit?
Hell if I know but, I seem to recall people in this board making a big deal, some time back, about how CITGO and Hugo were tied at the waist and we were dupes for not recognizing how much we were benefitting him everytime we pulled up to a 7-11 pump.

Sorry, that's not an exact quote from the forum and, no, I don't remember who made the argument.

I'm just trying to understand how CITGO wouldn't benefit from having their brand on every 7-11 pump in the country.

[Crookshanks]

What was that benefit?

Chump - you make my head hurt! Trying to reason with you is like trying to reason with a two-year old! :madrun

[Yonivore]

Chump - you make my head hurt! Trying to reason with you is like trying to reason with a two-year old! :madrun
Eh, I just get tired of wasting my time with him after awhile.

Maybe I should take him up on his offer to change to a screen name that would allow me to put him on ignore.

I'll have to revisit the proposal.

I wonder if he's offering to relinquish mod authority in the political forum and if he will cease posting as ChumpDumper while in here. That might be worth considering.

[ChumpDumper]

Chump - you make my head hurt! Trying to reason with you is like trying to reason with a two-year old! :madrunYou're the fool who thought Chavez' speech had anything to do with this.

[ChumpDumper]

I'll have to revisit the proposal.I said you had your chance.

You had the chance twice, but as usual you whithered under direct questioning.

Tough shit.

[ChumpDumper]

I'm just trying to understand how CITGO wouldn't benefit from having their brand on every 7-11 pump in the country.Sure the name recognition was important, but not as important now as it was when Citgo was entering the market and didn't have a retail network of its own. The only way something could hurt Chavez is if it somehow put less money in his coffers. The end of this deal does nothing in that regard.

[Yonivore]

I said you had your chance.

You had the chance twice, but as usual you whithered under direct questioning.
Okay, if that's what you call it.


Tough shit.
Don't worry, I'll survive. Had it been a serious offer, however, I doubt you'd of made it so transient and flimsy.

[ChumpDumper]

Had it been a serious offerIt was.

Both times.

Had you not been such a pussy you could be ignoring me right now.

[Crookshanks]

You're the fool who thought Chavez' speech had anything to do with this.


7-Eleven to End Relationship with Venezuela-Backed Citgo

Wednesday, 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.

The retailer said Wednesday it will purchase fuel from several distributors, including Tower Energy Group of Torrance, Calif., Sinclair Oil of Salt Lake City, and Houston-based Frontier Oil Corp.

A spokeswoman for Dallas-based 7-Eleven said its 20-year contract with Citgo Petroleum Corp. ends next week. About 2,100 of 7-Eleven's 5,300 U.S. stores sell gasoline.

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.

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.

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

Chabris said a boycott of Citgo gasoline would hurt the 4,000 employees of the U.S. subsidiary, who have no connection to Venezuela.

7-Eleven had been considering creating its own brand of fuel since at least early last year. Company officials said at the time they had spoken with independent fuel distributors.

I was actually replying to a post by boutons that said this article was stupid and would have no effect on Chavez.

[Yonivore]

I'm still not getting why Venezuelan owned CITGO would have their name plastered on every 7-11 gas pump and not financially benefit in some way.

Was it free advertising?

[ChumpDumper]

I was actually replying to a post by boutons that said this article was stupid and would have no effect on Chavez.But 7-Eleven spokeswoman Margaret Chabris said the change was unrelated to Chavez's comments and had been in the works for almost a year.

"A lot of people took it out of context, thinking we are taking political position, which we are not. It's not political, it's a business decision."

http://www.chron.com/disp/story.mpl/headline/biz/4220309.html

[ChumpDumper]

I'm still not getting why Venezuelan owned CITGO would have their name plastered on every 7-11 gas pump and not financially benefit in some way.

Was it free advertising?Pretty much, while it got its own retail business going.

I just fail to see how this hurts Chavez' bottom line.

[Yonivore]

Pretty much, while it got its own retail business going.

I just fail to see how this hurts Chavez' bottom line.
Well, if CITGO wasn't financially benefitting from CITGO gas stations, I guess it doesn't hurt Hugo's bottom line.

Although, I think you'd be hard pressed to find another company that lends it name, in such a large fashion, for free.

[Yonivore]

But 7-Eleven spokeswoman Margaret Chabris said the change was unrelated to Chavez's comments and had been in the works for almost a year.

"A lot of people took it out of context, thinking we are taking political position, which we are not. It's not political, it's a business decision."

http://www.chron.com/disp/story.mpl/headline/biz/4220309.html
Crooks didn't write the story. Hell, I saw the same report and initially concluded that Hugo's remarks were, at least, tangentially involved.

The initial stories implied it was involved. Some of us commented prior to 7-11's clarification. Some of us may not have even seen the clarification.

Do you have to beat every frickin' dead horse in this forum?

[ChumpDumper]

When you guys keep getting it wrong, yes. Why can't you stand the truth when it's given to you?
Some of us may not have even seen the clarification.No shit, dumbass. That's why I posted it.

You're welcome.

[Yonivore]

When you guys keep getting it wrong, yes. Why can't you stand the truth when it's given to you?No shit, dumbass. That's why I posted it.

You're welcome.
Okay, O' wise one, why exactly did CITGO leave it's signs up at 7-11 when they were gaining no financial benefit?

[ChumpDumper]

Okay, O' wise one, why exactly did CITGO leave it's signs up at 7-11 when they were gaining no financial benefit?Why wouldn't they? We agreed that the name recognition was a benefit in itself, especialy when Citgo expended its own retail operations.

Tell me again how this hurts Chavez.

[Yonivore]

Why wouldn't they?
You do know that's not really an anwer, right?


Tell me again how this hurts Chavez.
Okay, better question, why would 7-11 keep the signs up if CITGO wasn't benefitting from the relationship?

[ChumpDumper]

Okay, better question, why would 7-11 keep the signs up if CITGO wasn't benefitting from the relationship?It was obviously part of the agreement. You could probably put a dollar amount on it, but Chavez didn't make that deal, and no other oil company's name is replacing it, so there's even less of a point.

[Yonivore]

It was obviously part of the agreement. You could probably put a dollar amount on it, but Chavez didn't make that deal, and no other oil company's name is replacing it, so there's even less of a point.
So, the CITGO Signs will stay?

[ChumpDumper]

So, Chavez' bottom line is hurt?

[scott]

So, the CITGO Signs will stay?

What are these CITGO signs you speak of? 7-11s are 7-11s, CITGO stations are CITGO stations, regardless of how 7-11 (a C-Store chain) supplies its stores.

Edit: now I see that 7-11 owned (insert number) CITGO branded stores. So, Citgo will lose anywhere from 0 to 2 cents per gallon on that volume, assuming they don't ink another branded deal somewhere else.

So rest easy Yoni, Chavez will indeed lose an miniscule amount of the money he previously got from CITGO.

In the end - this is still a non-event for everyone but rapid Republicans and Democrats who have nothing better to do than overreact to everything. Here's an idea: get jobs!

[Yonivore]

What are these CITGO signs you speak of? 7-11s are 7-11s, CITGO stations are CITGO stations, regardless of how 7-11 (a C-Store chain) supplies its stores.

Edit: now I see that 7-11 owned (insert number) CITGO branded stores. So, Citgo will lose anywhere from 0 to 2 cents per gallon on that volume, assuming they don't ink another branded deal somewhere else.

So rest easy Yoni, Chavez will indeed lose an miniscule amount of the money he previously got from CITGO.
Hey, no sweat. I think I was more trying to get ChumpDumper to admit he was wrong than worrying about whether or not Hugo Chavez loses.


In the end - this is still a non-event for everyone but rapid Republicans and Democrats who have nothing better to do than overreact to everything. Here's an idea: get jobs!
Got one...and looking for another. Offering?

[ChumpDumper]

How could Chavez ever recover?

Oh yeah, sell his gas somewhere else.

Like, oh I don't know -- Citgo stores.

[ChumpDumper]

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.

http://www.chron.com/disp/story.mpl/ap/fn/4218649.html

Hmm. I wonder if there is any way they could free up some of their own gas to sell in their own stores.

[Phenomanul]

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.

http://www.chron.com/disp/story.mpl/ap/fn/4218649.html

Hmm. I wonder if there is any way they could free up some of their own gas to sell in their own stores.



Hmmmm sounds alot like what I was saying earlier....


But what do I know....

I guess working for 'that' company doesn't entitle me to have a credible say so...

[ChumpDumper]

Nah, it just means you hate America.

[Phenomanul]

Nah, it just means you hate America.

Nah... Don't think so.....

















(but I know you were being sarcastic)...

[Nbadan]

How 7-11 Spun the Gas Contract Story

Venezuela’s Citgo Says it Decided to Discontinue 7/11 Contract Two Months Ago
By Venezuelanlysis.com
9-30-6, 10:17 am


Caracas, Venezuela, September 28, 2006 — Felix Rodriguez, the CEO of Citgo, the Venezuelan-owned gasoline producer and distributor in the U.S., clarified yesterday that it was Citgo that had let expire its contract with the 7-Eleven convenience store chain and not the other way around, as was broadly reported.

According to most press accounts, 7-Eleven spokespersons implied that the discontinuation of the supply contract for its gas stations was at least partially motivated by Chavez’s UN speech, in which he referred to President Bush as the “Devil.”

“(The reports are) a manipulation because ever since the month of July have we announced that we did not intend to renew a contract with (7-Eleven), which was 20-years old and that was part of a bad business deal for Venezuela,” said Rodriguez in a telephone interview with the Venezuelan state TV channel VTV.

Rodriguez went on to explain that the contract forced Citgo to purchase non-Venezuelan crude that it would refine and sell to 7-Eleven at a very low price. “We were losing money,” added Rodriguez.

Headlines in a wide variety of U.S. news outlets reported yesterday and today that the decision to cancel the Citgo contract was made by 7-Eleven.

Political Affairs (http://www.politicalaffairs.net/article/articleview/4162/1/212/)

[01Snake]

Don't you LOVE how Dan/Croutons have to ALWAYS find a negative to counter anything remotely postive? :lol

When Dan's wife became pregnant, he was determined to prove that it was not his child but rather the bastard offspring of the local mailman.

[Nbadan]

Ahh, Stick a Ribbon up your SUV (http://kevinswoodshed.blogspot.com/2006/09/stick-yellow-ribbon-on-your-suv-asylum.html)

[ChumpDumper]

From what I've been reading, the business relationship that was consumated two decades ago doesn't make sense for either party anymore, and both are in a position to make more money now that they are not bound to that contract.

A nonstory if there ever was one.

[JoeChalupa]

As long as they don't get rid of the Big Gulp I'm not bitching.