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Hess, PdVSA finish shutdown of Hovensa refinery venture in Virgin Islands

02.22.2012  | 

Hovensa completed the previously-announced shutdown of its 350,000 bpd refinery on the US Virgin Island of St. Croix, the company said. The oil-fuel refinery is a joint venture between oil company Hess and Petroleos de Venezuela (PdVSA), the state-owned oil company of Venezuela.

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By ROSE MARTON-VITALE

Hovensa completed the previously-announced shutdown of its 350,000 bpd refinery on the US Virgin Island of St. Croix, the company said. 

On Jan. 18, the company announced the refinery shutdown and said the complex will be operated as an oil storage terminal going forward.

That plan is subject to the completion of negotiations with the government of the Virgin Islands, the company said.

Hovensa employees will continue working through a transition period. Thereafter, approximately 100 people will remain to work at the oil-storage terminal.

Hovensa said its losses at the refinery totaled $1.3 billion in the past three years and were projected to continue, caused primarily by weakness in demand for refined-petroleum products during the global economic slowdown and the addition of new refining capacity in emerging markets.

The low price of natural gas in the US, it said, also put it at a competitive disadvantage.

In the past three years, these factors have caused the closure of approximately 18 refineries in the US and Europe with capacity totaling more than 2 million bpd of oil.

"We completed the shutdown with zero injuries and zero environmental incidents," Brian Lever, president and chief operating officer of Hovensa, said.

The 350,000-bpd oil-fuel refinery is a joint venture between oil company Hess and Petroleos de Venezuela (PdVSA), the state-owned oil company of Venezuela.


Dow Jones Newswires



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Jim McDonald
02.28.2012

Please send this short article to Mr. O'Riley. Bet a Buck, he will not respond. Capitalism is a big concern of his as long as it suits his beliefs, He has become so sanctimonious and pious that he forgets that the oil companys pay top dollar for the right to pursue equity for there stockholders (you and me). And then there is his misguided statement that the oil is owned by the people. Yes there is a great deal of oil on government land (state and federal) However there is a world of oil on privately held land.

One other point, The last time I looked most of the big oil companies were publicly held companies. I own a small amount Of stock in Exxon, and I darn sure expect the management of Exxon to maximize every effort to turn as much profit as possible.
Exxon Is not a charitable organization; it is a business charged by it's owners (the stockholders) to operate in the most effective manner possible in order to grow the company and return value to their stockholders.

WE LIVE IN AMERICA. AMERICA'S GROWTH INTO THE MIGHTIEST AND RICHEST CONTRY IN THE WORLD HAS BEEN BASED ON BEING A CAPITALISTIC SOCIETY. LET THE SYSTEM WORK. YES THERE WILL BE BOTH HARD TIMES AND GOOD TIMES, BUT BY GOLLY IT'S BEEN A GREAT RIDE SO FAR.

RESPECTFULLY YOURS

JIM MCDONALD










JM

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