Citgo and Flint Hills: Decisions to Impact Alaska
Two important develops in the Alaska: the North Pole Flint Hills refinery shutdown could have large impacts statewide and Citgo has pulled out of the low-income heating oil program.
First up, the Citgo low-income heating oil program. Citizens in rural villages in Alaska have benefited from this program. It was announced today that Citgo, the Hugo Chavez-driven oil company, has pulled out of the low-income heating oil program.
Citgo pulls out of low-income heating oil program
Published: January 5th, 2009 08:03 AM
Last Modified: January 5th, 2009 08:03 AMBOSTON – Citizens Energy Chairman Joseph Kennedy says Citgo has suspended its free heating oil program for low-income residents.
Kennedy said Monday the Venezuelan government’s Texas-based oil subsidiary cited falling oil prices and the world economic crisis for forcing the company to reevaluated all of its social programs.
The oil program has provided hundreds of thousands of low-income U.S. households with fuel assistance.
Kennedy urged those who have been helped by the program to write Venezuelan President Hugo Chavez to share their stories.
Citgo began the national program in 2005 with Boston-based Citizens Energy, a nonprofit run by Kennedy.
Next up, the Flint Hills Refinery Shutdown. This is not the recent shutdown of the refinery in Valdez following the fire of last week, but the potential shutdown of a North Pole refinery due to budgetary concerns.
Refinery’s struggles cause for concern
A shutdown of the Flint Hills Resources refinery at North Pole has potential to rattle the Anchorage economy, and state officials are working with the company to find a way to keep the plant going.
If the refinery were to cease production, the Alaska Railroad couldn’t run as many trains, would have to cut its payroll dramatically, and would need to raise rates for moving passengers and other freight such as coal and gravel, said railroad board chairman John Binkley.
At the airport, fuel sellers likely would have to ship in more fuel from Outside suppliers, which could push up prices and make Anchorage less attractive as a stop for international air cargo carriers, state officials said.
“Flint Hill is one of our star assets,” said Bill Popp, president of the Anchorage Economic Development Corp. He’s hoping the state will work in earnest to find ways to keep the refinery making fuels.
