Citgo facts for kids
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| Private | |
| Industry | Oil and gasoline |
| Founded | 1910 in Bartlesville, Oklahoma, U.S. |
| Headquarters | Houston, Texas, U.S. |
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Key people
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Carlos E. Jordá (CEO) |
| Products | Fuels, lubricants and petrochemicals |
| Revenue | US$24.113 billion (2021) |
| US$246 million (2019) | |
| Owner | Petróleos de Venezuela, S.A. |
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Number of employees
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3,400 (2020) |
Citgo Petroleum Corporation, often called Citgo, is a company in the United States. It refines oil, transports it, and sells fuels, lubricants, and other industrial products. Citgo's main office is in Houston, Texas. Most of the company is owned by PDVSA, a company from the Venezuelan government. However, because of rules set by the U.S. government in 2019, Venezuela no longer makes money from Citgo.
Contents
A Look at Citgo's History
How Cities Service Started
Citgo's story began over 100 years ago with an oil businessman named Henry Latham Doherty. In 1910, Doherty created a company called Cities Service Company. It was made to provide gas and electricity to small towns. He started by buying places that produced natural gas.
The company then built a system of pipelines. These pipelines helped bring gas from many different gas fields. Cities Service was the first company to store gas in empty fields during summer. This made it easy and cheap to get gas when many people needed it. In 1931, Cities Service built a very long gas pipeline. It was 1,000 miles long and went from Amarillo, Texas to Chicago.
Cities Service also got into the oil business. They found large oil fields in Kansas in 1914 and 1915. In 1928, a part of Cities Service found the Oklahoma City oil field. This was one of the biggest in the world. Another part of the company helped find the East Texas field. This field was also very important at the time.
For over 30 years, Cities Service sponsored music shows on NBC radio. These shows were called Cities Service Concerts. They were on the radio from 1925 to 1956. In 1964, the company moved its main office from Bartlesville, Oklahoma, to Tulsa.
At its biggest, Cities Service had to make a choice. A new law said they had to sell either their gas and electricity parts or their oil and gas parts. Cities Service chose to stay in the oil business. They started selling off their electricity and gas companies in 1943.
Around the same time, the government built a large oil refinery near Lake Charles, Louisiana. This refinery became a key part of Cities Service's operations. It was built very quickly, in just 18 months. During World War II, this plant made a special type of aviation gasoline. This fuel was enough to power 1,000 bomber flights each day. Cities Service also built plants to make materials for synthetic rubber and fuel boosters.
After the war, Cities Service grew into a large oil and gas company. It had operations all over the world. Its green, round logo became a common sight in many places.
The name Citgo was first used in 1965. It was a brand name for Cities Service's refining and selling businesses. Citgo was just a brand until 1983. That's when the refining and selling parts of Cities Service were sold to Southland Corporation.
How Citgo Petroleum Corporation Was Born
In 1982, a businessman named T. Boone Pickens wanted to buy Cities Service Company. Cities Service tried to buy Pickens' company instead. This was a new way to stop a takeover. Cities Service also said it would sell off its parts bit by bit. They thought the parts would sell for more than Pickens was offering for the whole company.
Cities Service then tried to merge with another company, Gulf Oil. But Gulf Oil ended the deal. They said Cities Service had too much oil. This led to many years of legal fights.
After this, Cities Service was bought by Occidental Petroleum Corporation in 1982. Occidental Petroleum did not want the refining and retail parts of Cities Service. So, Cities Service put all these parts into a new company called Citgo Petroleum Corporation. In 1983, Citgo and its brand names were sold to Southland Corporation. Southland Corporation owned the 7-Eleven stores.
Citgo's Venezuelan Owners
In 1986, a Venezuelan company called Petróleos de Venezuela, S.A. (PDVSA) bought half of Citgo. By 1990, PDVSA owned all of Citgo. This made Citgo a key link for Venezuela to sell oil to American customers. At its peak, PDVSA controlled 10% of the U.S. oil market through Citgo.
In 2010, the Venezuelan President, Hugo Chávez, said PDVSA might sell Citgo. He called it a "bad business" because it wasn't making much money. They wanted at least 10 billion U.S. dollars for it. But PDVSA could not find a buyer at that price. In 2015, it was decided that Citgo would not be sold. Instead, Citgo sold bonds to give money to PDVSA.
In November 2017, six Citgo leaders were arrested in Venezuela. Five of them were American citizens. They were held without a trial for a long time. In 2019, they were put under house arrest. But they were moved back to prison after the U.S. President met with a Venezuelan opposition leader.
During the COVID-19 pandemic, the U.S. asked for their release. They said the men were held unfairly. In March 2022, one of the men was released after U.S. officials visited Venezuela. Later that year, in October, the other five men were also released in a prisoner exchange.
Challenges in Venezuela
After President Hugo Chávez died in 2013, Nicolás Maduro became president. Venezuela then faced many economic problems. Oil prices dropped, and the U.S. put rules on Venezuela. This led to high prices, a weak economy, and shortages of goods. Venezuela's debt to countries like China and Russia grew. In 2016, Venezuela used 49.9% of Citgo as a guarantee for a loan from a Russian oil company called Rosneft. This meant Russia could potentially own part of Citgo if Venezuela couldn't pay back the loan.
In July 2018, the Citgo president, Asdrúbal Chávez, was told to leave the United States.
U.S. Rules in 2019
On January 28, 2019, the U.S. government put rules on PDVSA. This froze its money in the U.S. and stopped U.S. companies from doing business with it. In February, Citgo stopped sending money to PDVSA. These rules also made it harder for Citgo to manage its own debts. In March, with help from the U.S. Treasury, Citgo got a large loan. This loan helped Citgo keep running and pay its debts.
On June 6, 2019, the U.S. Treasury added more rules. They made it clear that sending certain oil products to Venezuela could also lead to problems.
2020 Loan
In 2020, Citgo borrowed money by selling a type of bond. They used 50.1% of the company's value as a guarantee for this loan. If the loan is not paid back, the investors who lent the money could become owners of that part of Citgo.
Where Citgo Has Refineries
Citgo operates several important oil refineries:
- Lake Charles, Louisiana
- Corpus Christi, Texas
- Lemont Refinery, Romeoville, Illinois
Past Refinery Locations
In 1901, a company called Warner-Quinlan Asphalt bought land in Linden, New Jersey. They used it to make asphalt. In 1937, Cities Service took over this plant. The plant had several big fires and explosions over the years. One fire in 1921 destroyed almost the entire plant.
Other Brands Citgo Owns
Besides its own Citgo brand of lubricants, the company also owns the Clarion and Mystik brand names.
While Mystik is mostly known for lubricants, Citgo started using the Mystik name for gas stations on October 1, 2003.
Citgo's Sponsorships
Citgo has supported many motorsport events. The company sponsored the No. 21 Wood Brothers racing team in NASCAR for many years. Famous drivers like Michael Waltrip and Dale Jarrett drove for them. They also sponsored the No. 99 Roush Racing team until 2003. Citgo also sponsored Venezuelan race car driver Milka Duno in the Rolex Sports Car Series. She finished second at the 2007 24 Hours of Daytona, which was a great achievement for a female driver.
Citgo is a big supporter of the Bassmaster Fishing Tournaments. They also sponsor a charity golf tournament that helps the Muscular Dystrophy Association (MDA). Citgo has worked with the MDA since 1983. Citgo is the MDA's largest company sponsor. Its leaders have appeared on the Jerry Lewis MDA Telethon.
A large Citgo sign in Boston is famous. It overlooks Kenmore Square and can be seen from Fenway Park, where the Boston Red Sox baseball team plays. This sign is strongly linked to the Red Sox. Because of this, similar signs have been put up at other baseball parks. This includes the Houston Astros' Minute Maid Park.
Donation for Inauguration
Citgo donated money to help pay for Donald Trump's presidential inauguration. They gave US$500,000 for the event.
Simón Bolívar Foundation
In 2006, Citgo created the Simón Bolívar Foundation (SBF). This is a non-profit group that helps people. Its goal is to "transform lives" by connecting non-profits and community leaders. It aims to improve health through its support. In 2020, the SBF gave $1 million to help people in Venezuela. The SBF also has a program to help Venezuelan cancer patients travel for life-saving treatments. This program faced problems due to U.S. rules on Venezuela. In 2021, the United Nations asked countries to protect human rights for those affected by international actions.
Citgo's Main Office
Citgo's main office is located in the Energy Corridor area of Houston, Texas.
Before moving to Houston, Citgo's main office was in Tulsa, Oklahoma. In 2003, the governor of Oklahoma tried to convince Citgo to stay. For eight months, the company thought about whether to move or stay. In 2004, Citgo announced it was moving its headquarters to Houston.
The company needed a large office space for about 700 employees. Citgo looked at several buildings in Houston. In June 2004, the company signed a lease for a building in the Energy Corridor. By September 2004, Citgo had already moved 150 employees to the new Houston office.
See also
In Spanish: Citgo para niños
- Brands of gasoline
- Oil reserves in Venezuela
