Oil Refinery Looms On Virgin Island

HELLENIC PETROLEUM CYPRUS LTDVirgin Islands 聳聳 Residents within the U.S. Virgin Island of St. Croix have gotten used to living within the shadow of the Western Hemisphere’s largest oil refinery 聳 even if some fear about exposure to occasional chemical odors.Some first-time guests are startled to see the enormous Hovensa refinery parked on St. Croix, its smokestacks adjoining to coral reefs and wildlife refuges. But residents and environmentalists have come to accept the juxtaposition, and lots of give the refinery’s environmental file high marks.”The degradation of the wetlands there at Krause Lagoon is already historical past. We won’t reclaim that,” says environmental activist Robin Freeman. “Our focus is to make sure that people’s well being is safeguarded and that the refinery is working in as clean a manner as doable.”The refinery’s history, and really presence right here, displays the broader wrestle of many Caribbean islands to make use of and sustain individuals at a time when agricultural staples like sugar cane no longer can.With 2,000 employees, Hovensa 聳 previously Hess of the Virgin Islands Corp. (Hovic) 聳 is the Virgin Islands’ largest private employer. It accounts for one in eight jobs in St. Croix, population fifty four,300.St. Croix welcomed Leon Hess, chief of Amerada Hess Corp., when he proposed in 1965 to build the refinery within the U.S. Virgin Islands’ largest mangrove lagoon.The Virgin Islands’ sugar cane trade was close to bust and unemployment was 44 %. Outdoors authorities, the few jobs to be had in St. Croix had been at a rum distillery, an upstart alumina plant and the nascent tourism enterprise. The local Senate gave Hess a generous 16-year tax vacation.Since then, the oil refinery on St. Croix 聳 a verdant eighty four-sq.-mile (130 sq. kilometer) island speckled with sugar mills, plantation ruins and Danish architecture 聳 has turn out to be the hemisphere’s largest, with a refining capacity of 545,000 barrels a day.”Hess supplies more stable employment than the tourist industry, which is seasonal,” mentioned Sen. David Jones. “That’s important in a micro-state just like the Virgin Islands.”The paternalistic Hess, who died Could 7, also spent dlrs 45 million on tasks ranging from donating landfill property to hurricane repairs for houses and faculties.The refinery has had its share of environmental issues. Since 1982, it has recovered 36 million gallons (136.8 million liters) of petroleum hydrocarbons from groundwater beneath the refinery.Whereas leaky sewer strains and tanks liable for the pollution were repaired long ago, the Environmental Safety Agency says 6.4 million gallons (24.Three million liters) stay within the groundwater. The spill does not threaten St. Croix’s drinking water provide, but might hurt coral, sea grass, fish and birds, the EPA says.In 1992, the EPA said Hovic violated the Clean Air Act for building tasks on the refinery without a permit. In 1996, Hovic admitted to illegally delivery more than 300 tons of benzene-tainted waste to an Arizona cement manufacturing facility. In that case, Amerada Hess Corp. agreed to pay dlrs 5.3 million in fines and restitution.Hovic misplaced dlrs 1.2 billion in the 1990s, thanks largely to depressed oil prices. The benefits of locating in the Virgin Islands, which not like U.S. states will be utilized by cheaper international-owned ships to transport items to different U.S. ports, couldn’t offset the losses.So in 1998, Amerada Hess offered 50 percent of its Hovic subsidiary to Venezuela’s state oil firm, Petroleos de Venezuela, S.A., for dlrs 625 million. The company obtained another dlrs 307 million for the refinery’s working capital.Plans call for a dlrs 500 million coker to convert pitch, the least priceless portion of crude, into greater value merchandise. Venezuela’s reserves of heavy crude are the biggest in the world.Development will make use of as much as 2,000 聳 a boost for the Virgin Islands, the place two-thirds of high school graduates leave for jobs elsewhere, and the 8.6 % unemployment rate is more than double the nationwide average.While the refinery has reduce its chemical emissions by half since 1989, some residents in nearby neighborhoods complain that every few months they’re uncovered to a robust chemical scent.Clifton Hill activist Sylvia Browne says neighbors’ complaints over the years have ranged from pores and skin rashes to burning eyes to nausea.”Typically you get up in the wee hours of the morning and once you breathe you want to throw up,” stated Browne.”We don’t know whether or not it’s the landfill, the airport, the animal shelter, the refinery, the alumina or rum plants,” says hospital worker Carlos Perez, an activist within the Harvey Community Housing Challenge.Hovensa has agreed to help pay for a neighborhood program to watch air high quality, mentioned Lynn Gittens Spencer, an environmental activist.”We imagine it offers residents in these areas some peace of mind,” says Hovensa vice president Alex Moorhead, who adds the refinery has a 24-hour chemical response team.”We’ll never say that odors will not be coming from the refinery,” Moorhead mentioned.

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