Skip to comments.Hovensa Refinery Closing on St. Croix
Posted on 01/20/2012 4:26:10 PM PST by wildbill
ST. CROIX - After 45 years operation as the territory's largest private employer, HOVENSA announced Wednesday that the 350,000-barrel-per-day refinery will shut down and more than 2,000 employees will be dismissed.
"This is a catastrophic event. This is like a hurricane hitting a community or an earthquake," said Sen. Louis Patrick Hill, who began a Senate committee hearing with an announcement of the news Wednesday.
HOVENSA has 2,150 direct and contract employees, and its operations account for about 20 percent of the territory's gross domestic product.
The refinery's closure represents "at a minimum" a loss of about $60 million in annual tax revenue for the government, from real property taxes and employee income taxes, deJongh said.
"It has been losing money in the last three years," said Fadel Gheit, the senior oil and gas analyst for Oppenheimer and Co. "Stopping the refinery does not make it profitable. It just stops the loss. It's the lesser of two evils."
In addition to the lull in demand for refined products, HOVENSA and other domestic refineries were put at a competitive disadvantage by the construction of new, highly efficient refineries in developing regions such as Asia and the Middle East, Gheit said.
"Every company I know of is bailing out of refining," he said. Losses were not limited to the refinery's operations, however, and the future held at least $700 million in environmental upgrades required by the U.S. Environmental Protection Agency under terms of a consent decree lodged in federal court about a year ago.
Quarterly stockholder reports from Hess consistently have painted a dire picture of the refinery's situation, and a report from Goldman Sachs released last week speculated about how much longer HOVENSA could actually hold out.
In the end, there was "no other choice," HOVENSA officials said.
Read more: http://virginislandsdailynews.com/news/hovensa-closing-1.1259790#ixzz1k2yB3B4G
(Excerpt) Read more at virginislandsdailynews.com ...
i am a Mason and met everybody i really needed to meet on the island at the first meeting i went to and they all gave me the low down in their various areas of endeavor
if it weren't for Cruzians, it would be paradise
I always preferred St.Thomas as a nicer place with nicer, friendlier people although I’ve noted a change in atmosphere there too.
I’d still like to live down there.
What were you doing there? Working or living the life of a wealthy expat?
Chode - I used to work there too! from 1977-1979 or so...
Was a mathematician/programmer. Left when after a friend who worked there got murdered - it really ruined the whole atmosphere there... Was Peter Burton still around when you where there? I figure he would be the one to turn off the lights for the last time when it shut down for the last time.
i don't remember the name though
We used to fly over from the Naval Hospital Roosevelt Roads for an occasional lunch from 1983 to 86. It felt safe enough at that time. Things must really have deteriorated.
they even lost the cruise ships for a LONG time due to same on the boat tourists straying more than a block or two away from the strand
Peter M. Burton Dies at 75 By Source Staff March 12, 2012 Peter M. Burton, formerly of Estate Prosperity, died on March 7 in Johns Creek, Georgia, at 75 years old. Peter Burton was a long time resident of Fredicksted. He was the Commander of RCA Underwater Tracking Station and an honorable member of St. Croix Rotary. Peter is survived by his wife of 46 years, Gloria Gomez Burton; daughter, Dorothy Joanna Burton; sons: Pedro Ricky Richardson, Mario Richardson and John Labeeb John-John Alexander Jr.; daughters-in-law: Yolanda Richardson and Tracy Alexander; cousin, Robert W. Chip Burton II; sisters-in-law: Aurea Gomez Stamatakis and Maria Gomez VanPutten; grandchildren: Justin Robinson, Yasitu Richardson, Savitri Nguyen, Shaenna Stephanides, Damari Johnson, Victoria Aldwinckle, Antares Richardson, Carlos Prunty, Orion Richardson, Amira Alexander, Peter Prunty and John Labeeb Alexander III; great grandchildren: Brenna Stephanides, Piper Robinson, Osayuki Richardson, Callie Robinson, Uyiosa Richardson, Enzo Nguyen, Massimo Nguyen, Kendall Robinson, Allora Stephanides, Alsosa Richardson, Barrett Johnson; as well as nieces and nephews too numerous to mention. A memorial service will be held on Friday, March 16, at St. Bridgit Catholic Church in Johns Creek, Georgia.
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