Major Oil Refinery To Close In US Virgin Islands

[greytdemocrat]

Man, this is going to hurt a lot of people.


ST. CROIX, U.S. Virgin Islands (AP) — One of the world's largest oil refineries will close next month, the company announced Wednesday, stunning nearly 2,000 workers and threatening to upend the reeling economy of the U.S. Virgin Islands.

Industry analysts said the closure is unlikely to have a major effect on the global oil market, but Gov. John de Jongh described the loss of the territory's largest private employer as "a complete body blow" for the U.S. territory of about 108,000 people.




http://www.npr.org/templates/story/story.php?storyId=145389479

[Arctic Dave]

1. Another facility that was run into the ground.

"run to fail" is a cornerstone of boosting profits while letting the assets slowly go to fallow.

[hack89]

5. No - too much capacity and ran on expensive oil.

they have been steadily decreasing output due to decreased demand.

[Arctic Dave]

8. This facility was built in the 60's

they could upgraded years ago.

[hack89]

9. Most mainland refineries run on natural gas - which is much cheaper.

I suspect it is expensive to ship natural gas to the VI.

[KamaAina]

2. "a joint venture of U.S.-based Hess Corp. and Venezuela's state-owned oil company,"

What if Hugo bought Hess out? That'd be a poke in the eye to El Yanqui!

[hack89]

6. The Bolivarian revolution is not immune to the hard realities of the free market.

The US would love to see Chavez loose a ton of money.

[sinkingfeeling]

3. Guess they just can't get a handle on that 'supply and demand' stuff.

"Losses at Hovensa, a joint venture of U.S.-based Hess Corp. and Venezuela's state-owned oil company, have totaled $1.3 billion over the past three years and were projected to continue due to reduced demand caused by the global economic slowdown and increased refining capacity in emerging markets, said Brian K. Lever, president and chief operating officer of Hovensa LLC."

[angel823]

4. wonderful place, St. Croix

Been there many times.

My father worked at Hovensa during the late 90s, early 00s. He and my mom lived in St. Croix, sometimes in the Hovensa compound (after hurricanes for example) and at other times in rented homes on the island.

I loved that I could call the island "home" for awhile, and visit often. It's a beautiful place, with many wonderful people. The Hovensa jobs, and the downstream jobs it generated will be sorely missed.

Angel in Texas

[KamaAina]

7. What happens to the compound?

Anyone up for "Occupying" it after the workers leave?