You cannot make any product if the raw material is high in price and your final product doesn't reflect those prices.
Posted on 01/19/2012 7:12:11 AM PST by BfloGuy
In January, Hovensa entered into a consent decree with the U.S. Environmental Protection Agency and Justice Department in which the company agreed to invest $700 million on pollution controls after a series of chemical releases affected people living downwind from the refinery. Hovensa also agreed to pay a $5.4 million penalty for violating the Clean Air Act.
It is unclear how the agreement will be affected by the closure.
(Excerpt) Read more at washingtonpost.com ...
The Virgin Islands will lose hundreds of jobs and now be forced to import gasoline by ship raising its cost severely. Step by step, Obama's EPA is shutting down the economy.
Zero has to do something to get those Chevy Volt sales to increase.
Zero has to do something to get those Chevy Volt sales to increase.
This is a very big refinery, very much in need of upgrading.
525,000 barrels of crude per day.
Company to Work Closely with the U.S. Virgin Islands Government to Ease Transition
ST. CROIX, U.S. Virgin Islands Jan. 18, 2012 — HOVENSA L.L.C. announced today that it will commence shutdown of its refinery on St. Croix, U.S. Virgin Islands. Following the shutdown, the complex will operate as an oil storage terminal.
Losses at the HOVENSA refinery have totaled $1.3 billion in the past three years alone and were projected to continue. These losses have been caused primarily by weakness in demand for refined petroleum products due to the global economic slowdown and the addition of new refining capacity in emerging markets. In the past three years, these factors have caused the closure of approximately 18 refineries in the United States and Europe with capacity totaling more than 2 million barrels of oil per day. In addition, the low price of natural gas in the United States has put HOVENSA, an oil-fueled refinery, at a competitive disadvantage.
“We deeply regret the closure of the HOVENSA refinery and the impact on our dedicated people,” said Brian K. Lever, President and Chief Operating Officer of HOVENSA. “We explored all available options to avoid this outcome, but severe financial losses left us with no other choice. We will provide significantly enhanced benefits for those union and salaried employees who are impacted and will work closely with the government of the U.S. Virgin Islands to ease the transition for the rest of the community.”
After formal shutdown of the refinery, which will occur by the middle of February, most of those employed at HOVENSA will continue working through a transition period. Thereafter, approximately 100 people will remain to work at the oil storage terminal.
and how long has Obama been in office??
Refineries are being closed when we need to expand so as to reduce the costs and improve the economy!! Why??
Actually, the US refinery capacity now exceeds our demand due to expansions of existing refineries, along with some reductions in demand. We are now a net exporter of refined petroleum products.
http://www.eia.gov/dnav/pet/pet_move_neti_a_EPP0_IMN_mbblpd_m.htm
I never have understood how oil prices are derived. It so different from the old supply-demand models.
So how is it with supply exceeding demand we have such a steep rise in gasolene?
We don’t, the Value of your Money has been STOLEN by the Government and the Bankers.
You cannot make any product if the raw material is high in price and your final product doesn't reflect those prices.
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