Connecticut latest state to accept Venezuelan oil

Residents of Connecticut became the latest northeasterners to receive discounted heating oil from the Venezuelan-owned oil company Citgo, after the state's attorney general dismissed questions by the governor that the program might be illegal. Record crude oil prices in the wake of hurricanes Katrina and Rita contributed to the increase in heating oil prices. According to the US Department of Energy, 8.1 million of the country's 103 million households use heating oil as their main heating fuel. Of these, 82 percent are in New England and the Central Atlantic States. The plan, which in most cases give eligible low-income houses a 40 percent break on their heating bills, have not come without controversy. Critics of the program say that Venezuelan President Hugo Chávez, an outspoken critic of the Bush administration, is merely trying to gain political capital within the US or interfere in energy policy–a complaint which program proponents chalk up to sour grapes, since, as a major supplier of oil to the US, Venezuela is already a force in energy policy. Others have gone so far as to question the legality of the program. Republican Connecticut Governor M. Jodi Rell, for instance, raised questions to her state's attorney general, asking him to address the "legality of the state of Connecticut sanctioning participation in [the] program." Richard Blumenthal, Connecticut's attorney general, responded that the program was "consistent with [Connecticut's] laws." Though Rell's request appears to have been resolved, it echoes that of an ongoing inquiry into Citgo initiated by Rep. Joe Barton (R-TX), chairman of the House Energy and Commerce Committee, and Ed Whitfield (R-KY), chairman of the Subcommittee for Oversight and Investigations. Last month, they sent a letter to Citgo saying: "We want to understand whether the beneficiaries are being selected in an objective, equitable fashion, or whether this is merely part of a larger political agenda." In 2004, Barton received $224,398 in campaign contributions from oil and gas interests, the second highest of any candidate running for the House of Representatives, and Whitfield received $15,500, according to the Center for Responsive Politics. Larry Neal, deputy staff director for Barton's committee commented on the inquiry, saying, "The bellicose Venezuelan decided to meddle in American energy policy, and we think it might prove instructive to know how." Citgo's offer came as Congressional attempts to elicit funds for discounted heating oil out of petroleum companies failed. The initial idea for selling discounted heating oil to the United States came from Venezuelan President Hugo Chávez, and pre-dated the hurricanes. In late August, Chávez first mentioned his intention to supply discounted oil to low-income US communities on a trip to Cuba. The next week, on his Sunday TV show "Aló Presidente" he reiterated his plan, saying: "There is a lot of poverty in the US... Many people die of cold in the winter... We could have an impact on seven to eight million persons." Despite the political upheaval surrounding the program, recipients of discounted oil across the Northeast have been pleased. "[Chávez's] biggest crime is he's a socialist, but he's not a fascist," Elaine DeRosa, manager of a low-income child-care center in Massachusetts told the AP. "It's going to help a lot of low-income people who the US government isn't talking about."