Why is Valero closing its Delaware City, Delaware, refinery and how many workers will lose their jobs?”
QUOTEBOX-Valero shuts Delaware City refinery Fri Nov 20, 2009 11:14am EST NEW YORK, Nov 20 (Reuters) – U.S. oil refiner Valero Energy Corp (VLO.N: Quote, Profile, Research, Stock Buzz) announced on Friday it will permanently shut down its Delaware City, Delaware, refinery because of the weak economic conditions. The U.S. refining sector has been hard hit this year as weak fuel demand due to the recession and higher crude oil prices clip profits, forcing companies to shut plants and reduce throughput. Following are quotes from energy analysts on the shutdown: GENE MCGILLIAN, TRADITION ENERGY, STAMFORD, CONNECTICUT: “This shows that refineries definitely don’t see a snap back in demand. Considering the weak refining margins, the closure probably makes sense. But if things turn around with demand going higher, we could see more of the refining capacity shortages that people were complaining about just three years ago. It’s sometimes hard to do anything with a refinery after it has been sh
Valero is permanently closing its Delaware oil refinery, where 550 workers will lose their jobs. Workers said they stunned Friday when they showed up for work and found state police surrounding the plant. They were told to go home, that the plant was shutting down, permanently. “We have spent the last year diligently trying to avoid this situation,” CEO Bill Klesse said in press release on the company’s Web site. Valero is the country’s largest independent oil refinery. The company said Friday it must close the Delaware City refinery because of poor economic conditions. Demand for fuel has been falling for some time and the recession has made things worse, squeezing profit margins for companies like Valero. The company said it tried, but failed to find a buyer. “The decision to permanently close the Delaware City refinery was a very difficult one,” said Klesse. Negotiations with the refinery’s unions on severance package will begin immediately. “We realize that the decision to close th
Valero Energy Co. (VLO) plans to permanently close its Delaware City, Delaware, refinery amid weak demand and rising inventories of oil. The move comes after exhausting all viable options, including an effort to find a buyer for the facility, the company said. Valero Chairman and Chief Executive Bill Klesse said, “We have spent the last year diligently trying to avoid this situation.” He said he had worked closely with Delaware Gov. Jack Markell in an “effort to find a different outcome.” Valero, the largest independent refiner in North America, has been hurt by rising heavy-crude oil costs and is targeting unprofitable plants for production cuts and shutdowns, including its Paulsboro, N.J. and Aruba plants. About 550 plant workers will be affected by the shutdown, Valero said. The company has about 22,000 employees.
