Untitled Document
A subsidiary of the Venezuelan national oil company will ship 12 million
gallons of discounted home-heating oil to local charities and 45,000 low-income
families in Massachusetts next month under a deal arranged by US Representative
William D. Delahunt, a local nonprofit energy corporation, and Venezuela's president,
White House critic Hugo Chávez.
The approximately $9 million deal will bring nine million gallons of oil to
families and three million gallons to institutions that serve the poor, such
as homeless shelters, said officials from Citizens Energy Corp., which is signing
the contract. Families would pay about $276 for a 200-gallon shipment, a savings
of about $184 and enough to last about three weeks.
The contract is to be signed Tuesday by officials from Citizens Energy, based
in Boston, and CITGO, a Houston-based subsidiary of Petróleos de Venezuela
SA. The contract was arranged after months of talks between Delahunt, a Quincy
Democrat active in Latin American affairs, and Chávez, a leftist former
paratrooper and fierce critic of the Bush administration.
''We recognized that we had an opportunity," Delahunt's spokesman, Steve
Schwadron, said yesterday.
Chávez showed ''an inclination to do a humanitarian distribution"
of oil, and poor families in Massachusetts had a ''desperate need" for
relief from high home-heating prices, Schwadron said. He characterized the deal
as one between ''a US company and two nonprofits to help them do more of what
they already do, with terms that mean the price is good."
Delahunt was not available for comment yesterday.
Schwadron said the congressman did not get involved in the details of the contract,
but had raised the issue with Chávez and helped connect the nonprofits
with CITGO, which is owned by PDV America Inc., an indirect, wholly owned subsidiary
of Petróleos de Venezuela SA, the national oil company of Venezuela.
When the discounted oil arrives early next month, Citizens Energy -- whose
chairman and president, former US representative Joseph P. Kennedy II, also
helped arrange the contract -- will screen recipients with the help of local
organizations that serve the poor. Some 350 local dealers will then distribute
three-fourths of the oil to local families.
MassEnergyConsumer Alliance, a nonprofit group that also offers discounted
oil, will distribute or sell the remaining quarter to homeless shelters, food
banks, and low-income housing groups, said Larry Chretien, the group's executive
director. Recipients must apply for the help, he said.
Home heating oil prices are expected to increase by 30 percent to 50 percent
this winter because of rising oil prices, Chretien said. Because funding for
the federal Low Income Heating Assistance Program is expected to pay for only
one delivery of heating oil to eligible households, the CITGO agreement could
help ease the crunch on some families, he said.
''Fuel assistance is woefully underfunded, so this is a major shot in the arm
for people who otherwise wouldn't get through the winter," Chretien said.
He said he hoped the deal would present ''a friendly challenge" to US oil
companies -- which recently reported record quarterly profits -- to use their
windfall to help poor families survive the winter.
Some foreign-policy analysts said Chávez helped broker the deal in part
as a jab at President Bush. Chávez has frequently belittled the White
House, saying it is not doing enough to help the poor, and he has called Bush
an ''assassin" and a ''crazy man." Now, he has helped arranged for
285,000 barrels of oil to arrive in Massachusetts at a 40 percent discount over
the next four months. Each barrel contains 42 gallons.
''It is a slap in the face" to the Bush administration, said Larry Birns,
executive director of the Council on Hemispheric Affairs, a group that tracks
Latin American politics and government. ''Chávez is involved in petro-diplomacy."
Chávez has drawn criticism from human rights groups for his treatment
of political foes and curbs on media freedoms. But he has also become a hero
to some on the left who say he has helped improve conditions for the poor in
his country and drawn attention to US foreign policy in Iraq and Latin America.
On Friday, a US State Department spokesman declined to comment on the oil deal
with Chávez.
Schwadron said Delahunt's involvement had nothing to do with Venezuela's strained
relationship with the Bush administration and was meant as a specific effort
to ease high heating costs for Bay State residents.
Massachusetts already gets a great deal of oil from Venezuela, Chretien said,
and the deal with CITGO means only that the oil will be less expensive. He added
that he has never been approached with such an offer from a US oil company.
''We did not negotiate foreign policy here," Schwadron said. ''We steered
clear of that."
Kennedy said he was not concerned about Chávez's politics.
''You start parsing which countries' politics we're going to feel comfortable
with, and only buying oil from them, then there are going to be a lot of people
not driving their cars and not staying warm this winter," Kennedy said.
''There are a lot of countries that have much worse records than Venezuela.
At the end of the day it's not our business to go choosing other peoples' leaders,
particularly when they are duly-elected democratic leaders."
Kennedy said Delahunt has been working with Chávez ''for years now and
has gone down there many times and developed a personal relationship with him."
Chávez has used his influence in the global market before.
In August, he offered discounted home-heating oil to poor communities in the
United States after meeting in Caracas with the Rev. Jesse Jackson.