HOVENSA: Economic Boost and Environmental Disaster Essay -- Environmen

By far the largest private employer in the Virgin Islands, HOVENSA has decided to cease operations, despite the ongoing economic crisis plaguing the territory which desperately relies on the refinery’s vital tax revenues. Nevertheless, the company cites its present fiscal woes as the primary reason behind such a brash decision. In so far as, fluctuating oil prices brought on by various world events, in concert with other minor details including the manner in which the plant is run and the amount of expenditures incurred, have caused the oil giant to generate about $1.3 billion dollars in losses. What seems odd are the events is the surrounding environmental issues which have plagued the plant during 2010 and 2011, which caused the Environmental Protection Agency to sanction the company with a $700 million dollar mandate. Such legal action taken was the result of a series of mis-steps with the refinery’s engineering/environmental protection practices, resulting in one of the worst environmental disasters to hit the territory. HOVENSA came about as a new joint venture in the region between parent company, Hess Oil, and state owned oil company, Venezuela National Oil Company. Beginning in 1966 however, we notice that the precursor to HOVENSA, Hess Oil Virgin Islands Corporation, was seen as more of an economic miracle rather than a disaster in the making. Years subsequent to 1966 witnessed a continued expansion of the oil refinery petroleum producing capacity, essentially elevating it from what was known as humble operation to what would be considered to be a monolithic organization. Whether that included the refineries increased capacity from 45,000 barrels a day to well over 500,000 barrels a day, or the company’s innovative te... ...vironment is once again held paramount. Works Cited 1) Blackburn, Joy. 2011. "EPA launches HOVENSA air quality study." Virgin Islands Daily News, The (St. Thomas), February 16. 2) "Nation's Second Largest Refinery to Pay More Than $5.3 Million Penalty for Clean Air Act Violations." Allvoices. Web. 02 Mar. 2012. . 3) "Government De Jongh Seeks Federal Assistance in Aftermath of HOVENSAClosure." Governor John P. DeJongh. Web. 02 Mar. 2012. . 4) "HOVENSASt. Croix, U.S. Virgin Islands." EPA. Environmental Protection Agency. Web. 02 Mar. 2012. .