t r u t h o u t | 01.08
Wednesday 07 January 2009
by: Tyler Bridges, McClatchy Newspapers
Caracas, Venezuela - The Venezuelan government reversed course Wednesday, announcing that its
Critics of President Hugo Chavez had pummeled him since Monday for suspending a program that he had milked for its maximum publicity as a champion of the poor, even in the
In the wake of Monday's announced halt, analysts had predicted this was only the first of Chavez's ambitious foreign assistance programs that would disappear, given the sharp drop in oil prices and the Venezuelan government's dependence on oil export income.
Venezuelan government officials wasted no time in reinstating the program, which saved about 180,000
Among the beneficiaries of the 100 gallons of heating oil were 65 Indian tribes, including those in
Alejandro Granado, the chairman, president and chief executive officer of Citgo Petroleum, the Venezuelan government's Houston-based oil subsidiary, said he discussed the plan to renew the program with Chavez on Wednesday morning.
The decision "is the result of a strong commitment and a big effort on the part of Citgo and our shareholders in light of the current global financial crisis and its impact on the oil industry in general," Granado said in a press statement.
Venezuelan oil, which is a lower grade than conventional crude and trades at a lower price, peaked at $126 a barrel in July and now sells for about $40 a barrel. About 93 percent of
Granado made his statement in
"Chavez is trying to save face," said Dennis Jett, a former American ambassador who's now a professor of International Affairs at
Monday's announcement also had prompted critics to have a field day with Kennedy, the son of Robert F. Kennedy and a former Democratic congressman. Kennedy had announced that 20 staffers would be laid off.
"For Joe, all that remains was sullied family honor and no fuel," Investor's Business Daily wrote Tuesday. "He'd been used by Chavez during the boom, thrown overboard as excess baggage during the bust, and finally realized it Monday."
Kennedy appeared to have had the last laugh, at least on Wednesday.
Kennedy said he's "personally aware of President Chavez's genuine concern for the most vulnerable, regardless of where they may live.
Kennedy added, "This decision is a clear, direct message from President Chavez of his desire to strengthen relations between his country and the
Brian O'Connor, Citizen Energy's spokesman, said Citgo will serve as many customers in 2009 as the year before but will spend less than last year since oil prices have declined. The program cost Citgo $100 million in 2008.
People unable to pay their heating bills can call a toll-free hotline number, 1-877-JOE-4-OIL, as of Jan. 19.
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