PDVSA'S possible sale of CITGO and the subsequent ramifications on US foreign and energy policy

Andrew Otazo

Energy Policy, 2012, vol. 42, issue C, 89-94

Abstract: PDVSA seems poised to sell CITGO in the very near future. The United States and Venezuela have already begun to implement shifts in national behavior and policy, suggesting that they are expecting this transition within the next couple of years. Although nothing is guaranteed until after the Venezuelan presidential election of 2012, if President Chavez retains his grip on power past that point, expect CITGO to be sold by the year 2014, if not shortly thereafter. If the US Congress decides to impose CISADA sanctions on Venezuela or declare it a state sponsor of terrorism, CITGO could be sold significantly sooner. However, such legislative action seems unlikely. A move to sell CITGO would have far-reaching ramifications for both countries' energy and foreign policies. This restructuring of energy geopolitics could potentially lead to more conflicts in the international arena. With significantly less economic leverage on each other, the United States and Venezuela would be free to harden their rhetoric and policies.

Keywords: CITGO; PDVSA; US energy policy (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:42:y:2012:i:c:p:89-94

DOI: 10.1016/j.enpol.2011.11.051

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