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COVER STORY:
Venezuelan Oil Subsidies
January 27, 2006 Episode no. 922
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BOB ABERNETHY, anchor: Now, reverse foreign aid. Is there anything wrong about needy Americans accepting help from a foreign government, especially from a foreign leader much criticized by the U.S. government? The issue is alive in the often frigid Northeast, where the price of heating oil this winter has shot up, and one foreign-owned oil company is trying to help -- conspicuously. Lucky Severson begins his report on an Indian reservation in northern Maine.
LUCKY SEVERSON: It's very unusual to celebrate the arrival of heating oil in a part of the country where the price this year has already increased 50 cents a gallon and is expected to rise even more.
UNIDENTIFIED MAN (At Podium): I thank you all for coming here to our Penobscot Nation -- to our Indian Island.
SEVERSON: Indian Island is in northern Maine, where the winters are especially brutal. This event was meant as a "thank you" to the oil company CITGO for giving subsidized heating oil to four Maine Indian tribes. For the last few months, CITGO has been supplying oil at nearly half price to needy neighborhoods, homeless shelters, nursing homes, and schools throughout the Northeast.
This delivery is near Portland, Maine where, as in the rest of the country, fuel prices have soared. Last year a group of senators asked major oil companies to donate some of their record profits to reduce the heating costs for those in need. The only one to respond was CITGO, a company wholly owned by Venezuela, whose leftist leader Hugo Chavez is no friend of the Bush administration.
FELIX RODRIGUEZ (CEO, CITGO Petroleum Corporation): President Chavez in Venezuela that call me, and he called and said, "Hey Felix, go for the United States in order to help the poor people."
SEVERSON: President Chavez has called President Bush a madman and has condemned capitalism. The Bush administration regards Chavez as a troublemaker. But international politics mean little to those who need assistance, like Mary and Malcolm Lyons. They have been married 68 years.
MALCOLM LYONS: And I tell Mary she was mighty lucky to find me.
SEVERSON (To Mr. Lyons): Is that what you tell Mary?
MARY LYONS: And I tell him the same thing.
SEVERSON: Mary and Malcolm raised five of their own children and several foster kids. Now they're struggling to make ends meet on a fixed income.

Ms. LYONS: I have to be very thrifty with everything, you know. We don't travel. We don't spend money foolishly at all, with the fuel oil prices the way they have been going.
SEVERSON: The Lyonses have plenty of company. There are 48,000 low-income households in Maine, which is why Governor John Baldacci applied for CITGO's oil assistance program.
Governor JOHN BALDACCI (D-ME): As far as I'm concerned, as long as they're helping Mainers stay safe, secure, and warm, that's what I care about.
MICHAEL HEATH (Executive Director, Christian Civic League of Maine): We have a significant concern with our governor having anything to do with the likes of Hugo Chavez.
SEVERSON: Michael Heath is the executive director of a conservative activist group called the Christian Civic League of Maine, and he's not happy about the governor doing business with Hugo Chavez.

Mr. HEATH: You don't have to be a rocket scientist to figure out that there may be some kind of connection there between him coming into our country and appearing to be this great savior -- this great helper of the poor over that big bad George Bush down in Washington, DC who doesn't care and who lacks compassion, et cetera.
SEVERSON: In the beginning, critics were quick to say this is nothing more than a political slap in the face of the Bush administration. But that's an argument that never gained traction in neighborhoods where heating oil prices are skyrocketing, where they care less about politics and more about making it through the winter.
Ms. LYONS: Why don't other oil companies chip in and help? It would be a very good idea, I should think.
MARION JENSEN: I think it is nice of them to offer to give a helping hand. Not anybody would do it, and I think Mr. Bush better go along with it.
SEVERSON: In fact, no one at the White House has condemned the Chavez largesse. And if they did, they might hear from Marion Jensen. She's 81, lost her leg to diabetes, and qualifies for CITGO oil.
(To Ms. Jensen): Have you ever had to go without food to pay for your energy bills?
Ms. JENSEN: Oh, yeah. I have it hard. At the end, about the last week of the month, I have to scrape. I don't even have a slice of bread in the house.
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SEVERSON: Marion's oil heat this winter will cost as much as $350 a month. She uses hot water only to bathe and hates to ask any of her five kids for help.
(To Ms. Jensen): Well, you've got a lot of pride?
Ms. JENSEN: Oh, too much sometimes. I try to hold back as much as I can. But I am getting filled right up to here.
SEVERSON: According to philosophy and ethics professor Nancy Bauer at Tufts University, a country that prides itself on its Christian heritage should be doing more to help its poor.
The government does offer aid to needy families, but Bauer believes it's not enough.

Professor NANCY BAUER (Assistant Professor of Philosophy, Tufts University): If you look at any kind of decent Christian ethics, you see that Jesus is endlessly interested in taking care of the outcasts -- the poor, the people who don't have anything. From the point of view of religious ethics, there's no reason in the world for the government not to come in and help these people.
SEVERSON: And as for the oil companies, which often fund foundations for worthy causes, Professor Bauer says it would have gone against the grain of capitalism for major corporations to, in effect, share profits with people like Marion Jensen.
Prof. BAUER: Clearly, business doesn't have a legal obligation to take care of people. It's not even that they have, I would say, a moral obligation, because we tend to feel that people have a right to their money that they make. The minute you start putting that idea into question, that presupposition in question, you're really threatening the entire system.

Gov. BALDACCI: When you start looking at the bottom line, especially of these multinational major oil companies, and you're just asking for a small portion to help out the most vulnerable in our society, it seems like a no-brainer.
SEVERSON: Using aid to win friends abroad is nothing new, according to Venezuelan Ambassador Bernardo Alvarez.

Ambassador BERNARDO ALVAREZ HERRERA (Venezuelan Ambassador to the United States): Everybody in the world, including the U.S., uses this idea of helping relieve the poor people as part of their diplomacy.
SEVERSON: There's a hole in our so-called safety net, says Professor Bauer. And, she says, President Chavez simply waltzed through it and stole the limelight.
Prof. BAUER: This situation is there to be exploited. And of course people are grateful, because they're cold. Morality, in some circumstances, for some people, is a luxury. You can't be wondering about the ins and outs of how to conduct yourself if you have absolutely -- if you're absolutely desperate.
SEVERSON: But Michael Heath argues that we should not be accepting aid from a government that has such a rotten human rights record.
Mr. HEATH: Maine people should have concerns about who we are having relations with in other countries, especially if they abuse their people.
Prof. BAUER: We don't ask questions about why we should take oil from Iraq when Saddam Hussein was in power. Or, we don't probably know what is going on in Azerbaijan, in Saudi Arabia, and every other place.
SEVERSON: Mary and Malcolm Lyons don't really care where the oil comes from. They're simply grateful for the help.

Ms. LYONS: The help with our fuel oil expenses is very much appreciated. We are both nearing 90. He is nearer it than I am. But thanks to the Venezuelan people -- we thank that country very much, and their leaders.
SEVERSON: Even Chavez critics agree that CITGO struck a public relations bonanza simply by giving away less than $50 million worth of oil to needy Americans. For RELIGION & ETHICS NEWSWEEKLY, I'm Lucky Severson in Portland, Maine.
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Related Links:
San Diego Union Tribune: "At World Social Forum in Venezuela, leftist movements protest globalization, Iraq war" by Ian James, AP, January 24, 2006
Portsmouth Herald: "Heat before politics" by Beth LaMontagne, January 16, 2006
Boston Globe: "Episcopal Diocese asks churches to turn down the heat," AP, January 11, 2006
Boston Globe: "Venezuela to expand heating oil offer" by Ian James, AP, January 7, 2006
USA Today: "Poor get chilly federal reception" by Annette Fuentes, December 15, 2005
The Guardian: "Venezuela provides low-cost heating oil to US needy" by Dan Margolis, December 14, 2005
NPR: News & Notes with Ed Gordon: Venezuelan Oil Discounts to the Poor, December 8, 2005
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Related Links:
"Pa. families latest to get Venezuelan heating oil," AP, January 27, 2006
BBC: "New York gets Venezuela oil cheap," December 7, 2005
Venezuelanalysis.com: "Venezuela begins low-cost heating oil program in New York" by Cleto Sojo, December 6, 2005
Indian Country Today: "Venezuela begins low-cost heating oil deliveries; tribes continue talks" by Brenda Norrell, December 2, 2005
Boston Globe: "Cost is high for largesse" by Steve Bailey, November 25, 2005
Ohio Council of Churches: "Energy Costs Could Strain Ohio Heating Budgets This Winter," October 28, 2005
Citizens Energy Corp.
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