Addressing the closing of the Hovensa Oil Refinery: I can’t Ignore This.
This is a difficult topic to address in so many ways. This past week, the Hovensa Oil Refinery, the largest employer & economic stimulator for St. Croix, announced it would stop refining oil into gas and close its doors in mid February. Almost 2,000 people were given their walking papers this week.
I don’t have enough of the back ground knowledge on the specific reasons, though they lose more and more money each quarter. This terminally ill refinery can’t keep up with the younger generation being born overseas in India and China, where amongst other things, they don’t have to comply with strenuous environmental standards that the United States require them to refine to, rightfully so. In other words, some refineries in other countries don’t give a damn if their refinery explodes or emits shit that makes their kids born with two heads. Nice huh?
{jump to the bottom of the post where I have kindly included links to local and national news where you can read the same article over and over again} xo
The point of this post is to share the news with my readers who don’t regularly access St. Croix news. This is a devastating blow to our economy. The obvious is that a large part of our community has lost jobs. Where are they going to go? What are they going to do? There is not another oil refinery just right down the street, people. But, now, every single person on St. Croix will feel the repercussions. And here is just a handful of ways :
1. Private Schools & Childcare: Hovensa PAYS for their employees’ children to attend private schools. Families move away, schools will have to close, more people lose jobs. More people lose jobs, restaurants have no-one to feed, prices rise. Prices rise, people without jobs can’t afford….
2. Housing: Hovensa pays a {hefty} monthly living allowance. This means they will cover your rent up to amounts that range from $2000 to $2500. No Joke. Think about what you can get in your state for that amount. And, lots of people come here, rent their home out in the states, and take the housing allowance. Making more money. The cost of rent will drop, the cost of island real estate will plummet. If you are looking to buy a piece of paradise, now would be a good time.
In addition to Hovensa supplying a monthly housing stipend, there are several gated Hovensa Housing communities for their employees. Think suburban America where every house (every house) looks exactly the same, locked behind razor fences, where you have to be buzzed in and out. Please don’t tell me the VI Government will absorb this housing and turn them into yet more “projects”. That is the LAST thing this island needs.
3. Price of Gas: As if this is not an issue already nation wide. Gas this week is holding steady on St. Croix at $3.39/gallon average. St. Croix gets our gas from around the corner. Literally. You can’t get any closer than this. Once we have to ship it in, the price will rise to Hawaiian standards of close to $5/gallon. Standard price: no chance that shit is going to fall in price based on what the market is doing.
5. How to even GET gas to St. Croix. Hovensa owns the only fuel port. When they shut the gate, the federal government is going to be all over that property like flies on shit making local entities jump through hoops to gain access. Where is fuel going to come from? Puerto Rico? Who we pissed off by taking away their Captain Morgan Rum Factory, thus a HUGE tax revenue. I can only imagine they are waiting for THAT phone call. Venezuela? I am guessing it’s not cheap for the 5,000 mile trek from South America.
4. Price of Electricity: Our beloved WAPA receives oil & gas at a discounted rate to run our power plant that provides electricity to our island. You already know the high prices we pay because of a FREAKISH tax called LEAC that more than doubles our bills. Once WAPA has to pay regular rates for fuel, they will be oh-so -kind to pass that cost onto their consumers. Our electric bill averages $260/ month for a house that has NO air conditioner that runs; nothing is left on during the day when we are gone except the icebox, and The Fisherman is a commanding officer in The Power Police (aka, anything that runs on “current” can not be left on or plugged in when you are not in a room. Don’t believe me? Just TRY and leave the fan on in our guest bedroom.) What will our bill climb to power the basic necessities to live? Time will only tell.
6. The Island Time Forgot: And now, St. Croix is home to two decrypted hunks of junk on the south shore that will no doubt leak toxins into our beautiful island for generations to come. Does anyone have a tourism idea to market an island of failed factories?
It is going to be an interesting situation here on St. Croix for the coming months. I don’t want to put fear into people or create panic, but something has to be done to protect our already poor and government assistance addicted island. This should be a time for the community to come together.
In NO WAY am I bashing Hovensa. Hovensa has been an outstanding Corporate Citizen, making so many things possible on St. Croix. I didn’t post this to start or spread rumors. My heart is heavy for so many friends who are being forced to find another way of life; a decision made for them in the hands of a corporation that has to deal with dollar signs. I am saddened 100 percent this is happening, and even sadder that St. Croix is loosing an incredible contributor (in so many ways). I have seen too many friends this past week just sit in disbelief. What are they going to do? Will they be able to relocate to the states and find jobs in a unstable recovering economy? So many questions unanswered and unknown. So many friendships about to be put to the test - both on and off St. Croix.
**If in any way I have misrepresented what I think I know about Hovensa, please feel free to correct me.**
Links To News Articles:
Oh, Anna. It is a sad sad time but I know we will all make it through, whether here or elsewhere.
I saw a quote cited by one of the T-moms…”A woman is like a tea bag- you never know her strength until you dunk her in hot water”. Maybe our St. Croix community is our “woman”?
Double rainbow must be a sign….
It was Eleanor Roosevelt…The quote.
Well said Anna. It is a horrific situation! But one of the many saving graces of St Croix is that it’s a community that pulls together in dire times. St Croix is a tight loving island and I pray that something miraculous happens for all of the Cruzans! It’s a huge blow to a beautiful island…..beautiful in so many ways.
One love to you all!!!
Lucy
“Responsible corporate citizen” (?!)
That some kind of oxymoron?
…Next you’ll be talking about “sustainable capitalism” as if such a thing exists.
As a fellow island dweller I feel your pain. A lot of Nantucketers moved away when building dropped off. No work. We’re dealing with power tho’–building windmills and underwater generators and solar installations to reduce our reliance on oil. Would love to go off the grid all together but summer folk must have their air conditioners…
Your husband bought his boat from a friend of ours; we must have moved away about the time you moved on-island. My husband and I both worked at HOVENSA, and both sets of our parents lived on St. Croix, his for 50 years. I think you did a very good job outlining what did happen and addressing the heartbreaking questions about what will happen. I caught your link from a refinery friend on Facebook. Nice blog. I’m sure we share concern for some of the same friends, and I am sorry for everyone on the island that they will go through this.
My heart goes out to everyone on St. Croix, because this closing will have a direct or indirect effect on each and every person and business there. Thank you for writing about this Anna, it is important that more and more people understand what is going on beyond the safety of their own backyards.
Thanks everyone for your exceptional comments, understanding and support of St. croix. I wrote this for myself orginally, just to get it out of my head and on paper and was encouraged to share it. I am glad it has reached so many people and everyone can form thier own opinions respectfully. I’ll have to brush up on sustainable capitalism, though. I am not too familiar with that concept, but I appreciate the feedback. {smiley face}
HOVENSA provided me and my family one of the most memorable experiences I ever had in gorgeous St Croix. I continue to think of and be thankful for everything I experienced on a daily basis. That being said, to me, the island was like a bad boyfriend. The good was SO GODDAMN GOOD, but the bad, and the reality, was so dire and depressing. I wish all of you the best!
@ Danielle- I think you made an excellent analogy! Thanks for stopping by and commenting. Stay warm…tee.hehehe
hi, my sister and her family live on st croix…i , being from mainland us, was shocked that this can happen to one of the us territories, it is totally unacceptable that it would be allowed to happen considering the inevitable consequenses to the families and residents of this beautiful island….just another example of corporations taking advantage of people for their own profits;, and then when it is not so profitable they pull up their tents…and move away, leaving all of their mess in their wake, and all of you high and dry….this has not been in the news up here, we live in massachusetts, and i googled it to see why i had not heard anything on the news…it has barely gotten any press…i suggest someone down there start protesting…and get some media attention! this is another example of what the 99% are protesting about!!! get out there and call some media!
@ Karen glad you found some sort of info on the issue. It really is sad to see so many families have a life changing decision made for them…all at once. There is a lot of “talk” going on and people are trying to organize to promote St. Croix in the other many beautiful ways it has to offer. Thanks for your support and I sure hope something good comes out of this!
I found your blog while trying to get more information about this issue exactly. I just had an interview for a position in St. Croix, and while my family and I are trying to decide if we should move there, the employer mentioned nothing about this. However, when I contacted a realtor about renting, she was kind enough to disclose this information. Now, I am so saddened, and so concerned that we won’t be able to afford living there with the inevitable rise of gas and electricity costs. Have you heard of any rumors about how much electricity will go up? I would absolutely love to live there, but in your opinion, is this not a good time to do so? How sad for the whole island! Also, would you mind if I emailed you with more questions about cost of living? Thanks!
Hi Expatauthor- I am really glad you found me and the blog to give you a bit of humor about island life…as a mom, wife and drinker
. Although the closing of Hovensa is a huge loss to our community, if there is one thing I have learned about living here, is the community is strong, tight and resilient. There is a HUGE push right now to promote everything that is GREAT with St. Croix, espeically being able to raise a family here. You’re lucky for your husband to be offered employment. Things are going to be rough for a while, but not horrible. STX will roll with the punches. I can put you in touch with some great family networks on island if you are interested so you can get a variety of opinions. Please feel free to email mail me at thebarefootmom{at}yahoo{dot}com. Though, just remember, my opinion is my opinion. I can’t be held responsible for life changing decisions! I just try to give my honest opinion as it applies to my family and our lifestyle.