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Friday, November 20, 2009

550 jobs lost as another Del. River refinery closes

Valero Corp.'s historically dirty Delaware City, Del. oil refinery, whose glow is visible for miles along I-95 and the Delaware estuary, is to be shut down following a string of recent job cuts. Update: Inquirer story here.

The closing follows Sunoco's recent shutdown at its Eagle Point refinery in West Deptford, Gloucester County, reducing the region's historic role as the major East Coast oil refinery as US fuel consumption falls and newer refineries are built abroad..

"We have exhausted all viable options," said Valero ceo Bill Klesse in this statement. The "permanent" closing is "due to financial losses caused by very poor economic conditions, significant capital spending requirements and high operating costs." 550 employees were told today they'll lose their jobs, as the company started severance negotiations with oilworkers' labor unions. Valero promised a "safe and orderly" shutdown.

The company had closed its gasifier and coking operations earlier this fall in an attempt to cut losses and put the works on the block, but failed to find a buyer.

Says Del. Gov. Jack Markell in a statement,“The company’s decision to close the refinery leaves us with several problems to solve." First, there's hundreds of workers losing their jobs. Also, “to protect the health and safety of everyone who lives near the facility, we need to ensure accountability for the environmental issues that come from closing a refinery, and we will.”

 
Posted by Joseph N. DiStefano @ 10:23 AM  Permalink | 6 comments
Comments   
  • 0 like this / 0 don't   •   Posted 11:21 AM, 11/20/2009
    Let's interpret the CEO's comments. Very poor economic conditions equates to higher taxes. Significant capital spending equates to being forced to convert to a greener operation. High operating costs equates to the union failing to concede on it's demands to preserve the jobs. Now there are 550 jobs going overseas where the people will work harder for less money.
    — junethe4th
  • 0 like this / 0 don't   •   Posted 11:43 AM, 11/20/2009
    I love when people automatically equate someone who will make less money overseas as "a harder worker". It's not just labor costs that are hurting US refining. It's the cost of business imposed by our own regulations. But where's the fun in that? I guess it's more fun to make comments against the average middle class Americans and call them bad people for wanting to make a decent living.
    — MVKrum
  • 0 like this / 0 don't   •   Posted 11:51 AM, 11/20/2009
    T.Boone Pickens, that the problem, He don't like unions. He love's the stock market were he wheels and deals. He likes monolply's as does warren buffett. He kept predicting higher price oil until it hit 145 a barrell. They said the price of oil went higher because of a fog in the huston channel one time. When you hear the name T.Boone Pickens hold on to you wallet.
    — atomic clock
  • 0 like this / 0 don't   •   Posted 11:52 AM, 11/20/2009
    MVKrum have you ever been outside of the US? I have, and I have witnessed how hard people work. Also, take a reading comprehension course for surely you did not understand all I posted.
    — junethe4th
  • 0 like this / 0 don't   •   Posted 11:59 AM, 11/20/2009
    Hope & Change you voted for. Enjoy.
    — Kaiser Sosa
  • 0 like this / 0 don't   •   Posted 1:14 PM, 11/20/2009
    Yes I have junethe4th. It's called vacation. I wasn't touring overseas refining operations to better prepare myself for this arguement with you. I was drinking ice cold umbrella beverages. Then again, you're right. Those people serving me the drinks were much quicker and more friendly then the lumps at T.G.I.Friday's. Save your rhetoric.
    — MVKrum


6 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
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