World-Class Reserves, Local Service
by Félix M. Rodríguez
President and CEO
CITGO Petroleum Corporation
As we slowly come to terms with the devastation left by hurricanes Katrina
and Rita throughout the Gulf Coast, the pivotal role energy companies
play in both the world economy and the local community is being highlighted
yet again. Maintaining a steady supply of refined products is particularly
crucial during natural disasters and their aftermath, as the subsequent
reconstruction efforts go forward.
CITGO's Lake Charles Manufacturing Complex (LCMC) suffered damage
from Hurricane Rita, the extent of which is still being assessed. As we
inspect our LCMC facilities, we are also doing all we can to prevent product
shortages from becoming any more acute. The contributions of our Corpus
Christi, Texas, and Lemont, Illinois, refineries are all the more important
at this time.
Backed by our parent company, Venezuelan state oil conglomerate Petróleos
de Venezuela, S.A. (PDVSA) and its access to the largest hydrocarbon reserves
in the Western Hemisphere, CITGO is a major player in the world's
energy market. And in this hour of need, CITGO's commitment to the
U.S. energy marketplace has acquired increased relevance. The company
has pledged $2 million to relief efforts, with the support of Venezuelan
President Hugo Chávez. Additionally, our employees have gathered
and distributed supplies that were desperately needed by those displaced
by hurricanes Katrina and Rita. As part of PDVSA's commitment, the
company has also pledged one million gallons of gasoline to help alleviate
market shortfalls. A first portion of this pledge has already been shipped
from Venezuela and recently arrived in Houston.
Lake Charles Refinery and Other Projects
Contributing to CITGO's stability is the recently completed $293
million crude vacuum expansion project at the Lake Charles Manufacturing
Complex, which has increased the refinery's crude-processing capacity
from 325 thousand barrels per day (kbpd) to 425-440 kbpd. Completion of
this project has made LCMC the fourth-largest refinery in the United States.
Bringing this project on line is a major accomplishment for the company.
The crude vacuum expansion project allows LCMC to operate more efficiently,
which will have a positive impact on production and on our bottom line.
The project features a crude vacuum-distillation tower, the largest vacuum
tower in the world set in one piece. In this unit, feedstock is recovered
from the crude and residuum, which is further processed in existing downstream
units. Additional gasoline and diesel fuel are then produced from the
incremental feedstock.
Additionally, the first of three wet gas scrubbers recently came on line
at LCMC, a project mandated by the U.S. Environmental Protection Agency
as part of the Clean Air Act. Located on the north side of each of the
three existing catalytic crackers, the 230-foot-tall wet gas scrubbers
utilize the best available control technology to wash flue gas to remove
95 percent of the sulfur dioxides and 90 percent of the particulate matter
from current atmospheric emissions.
Upcoming projects include a renovation of a hydro-treater to ultra-low
sulfur diesel standards at LCMC, upgrades to the crude and saturated gas
unit substations at the Lemont facility and improvements to a fractionation
unit at the Corpus Christi refinery.
Environmental Stewardship
CITGO is committed to environmental stewardship and safe operations and
has been recognized by the National Petrochemicals Refiners Association
(NPRA) for its achievements in this area. Multiple NPRA safety, gold and
merit awards have been given to the company's Corpus Christi Refinery,
Lake Charles Manufacturing Complex, Lemont Refinery, Paulsboro Refinery
and Savannah Refinery. These awards are indicative of our commitment to,
and our employees' active participation in, safe and environmentally
responsible operations.
Additionally, several of our facilities have been recognized in recent
years by the NPRA for their safety records. These accomplishments could
not have been possible without the contributions to safety of our employees.
The presentation of the NPRA safety awards is part of a comprehensive
safety awards program developed by the association's Fire and Accident
Prevention Committee to promote accident prevention in the petroleum refining
and petrochemical manufacturing industries and to publicly recognize the
excellent record of safety in operations which the industry has compiled.
CITGO's non-refining operations also have been recognized for their
safety accomplishments. Thirty-one of the company's operating locations
have not had an Occupational Safety and Health Administration (OSHA) recordable
incident for more than 10 years, while 42 facilities have not had an OSHA
lost workday case for more than 10 years.
An OSHA recordable incident is one resulting in death, medical treatment
beyond first aid, loss of consciousness or a significant injury or illness
diagnosed by a physician or other licensed healthcare professional. A
lost workday incident is a more severe OSHA recordable incident that results
in days away from work, restricted work or transfer to another job because
the employee cannot perform normal work duties.
CITGO in the Community
CITGO recently relocated its corporate headquarters to Houston, where
we now have close to 700 positions at the newly refurbished facility located
in the energy corridor on the city's west side. We are thrilled
to finally have our headquarters facility complete, and we look forward
to a long and mutually prosperous relationship with the Energy Capital
of the World.
The relocation was accomplished in several phases, with the initial wave
of employees moving to Houston in August 2004. Groups of employees also
reported to Houston in October 2004 and in January, March and June 2005,
as the headquarters underwent renovation.
CITGO's new North American headquarters stands as an elegant symbol
representing our continued growth and commitment to the U.S. market. More
importantly, the facility reflects the quality of our people – our
most valued resource.
Since the beginning of its corporate relocation, CITGO has become very
involved in the Houston community. The company has partnered with the
Greater Houston Partnership, Houston Astros, Memorial Hermann Foundation,
the Houston Thanksgiving Day Parade, American Red Cross, United Way of
the Texas Gulf Coast, Houston Hispanic Chamber of Commerce and Houston
Hispanic Forum, among others.
Also this year, CITGO marked the 20th year of its affiliation with the
Jerry Lewis Labor Day Telethon, an annual fund-raising effort on behalf
of the Muscular Dystrophy Association (MDA). We are proud of the fund-raising
efforts of our employees, customers and business associates on behalf
of MDA. Over the past 20 years, their efforts have raised more than $70
million for the fight against neuromuscular diseases. The culmination
of these efforts came earlier this year when we traveled to Los Angeles
to participate in the telethon and presented checks, totaling more than
$8 million, to be used in the continuing quest for a cure.
CITGO is deeply involved, as a committed corporate citizen, in every
location we have operations. We encourage all of our employees to participate
in efforts that benefit the communities in which they live and work. We
want these regions to know how much we appreciate them, and our involvement
in community efforts is one way to demonstrate that appreciation.
Félix M. Rodríguez is president and chief executive officer
of CITGO Petroleum Corporation, a subsidiary of Petróleos de Venezuela,
S.A. (PDVSA).
Mr. Rodríguez earned a degree in petroleum engineering from
Venezuela's University of the East in 1974. He subsequently completed
graduate work in system analysis and management programs at Harvard and
Columbia universities. He began his career in the petroleum industry with
Corporación Venezolana de Petróleo (CVP). In 1976 he began
working at Roqueven, later acquired by Lagoven, a PDVSA subsidiary. There
he held several technical, supervisory and managerial positions.
In 1992 Mr. Rodríguez was assigned to Corpoven, where he acted
in several managerial capacities. In 1999 he became the district manager
for Lagunillas, located in the state of Zulia, and in 2001 he was named
PDVSA's production planning manager. In February 2002 he was appointed
director of PDVSA, and in April he was named president of Petrozuata.
In December 2002 Mr. Rodríguez became the deputy production
director, responsible for the general management of PDVSA's Western
Division, a position he held until he was named director of PDVSA in March
2003. One year later he was appointed vice president of PDVSA, and in
January 2005 he became president and CEO of CITGO Petroleum Corporation.
Outside of his various roles within PDVSA, Rodríguez undertook
special assignments overseas with Exxon Research and ELF Aquitaine. Additionally,
he has served as a professor of mathematics and statistics at the Central
University of Venezuela's School of Geography.
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