Prime Minister: Valero isn’t coming back
Topic: EnergyAruba’s PM is the one person in charge with Energy affairs, therefore closely monitoring the latest news regarding the future of the old refinery located in St. Nicolas.
According to him, Valero Energy Corp. isn’t reopening the refinery as initially thought by many, including by Valero Aruba. Meanwhile Valero Corp. officials have mostly kept quiet and all options open. Last month I wrote just the same thing, that I don’t believe the refinery is reopening as Valero.
Throughout history oil companies have left a path of destruction behind, despite of all the “goodness” they might of brought to the economy. Eventually these companies aren’t here for the long haul.
Another painful point is Valero’s timing. General elections are scheduled later this year – September 25, 2009 – and some are suggesting that Valero is doing this to seal the faith of the current government, which might lose the elections in favor of the biggest opposition party.
I don’t believe that the motive behind the closure is political. It’s mostly about money. Valero claims that the margins in the oil-refining business in Aruba are razor-thin and production cost too high, therefore puts pressure on the bottom line.
Currently there’s still some negotiations ongoing with potential buyers, but no agreement could be reached between the parties. It seems imminent that the refinery will be shut down, temporarily or permanently.
In Aruba we must fundamentally re-evaluate our relationship with the oil-industry, choose to move forward and leave this almost 100-year-old industry behind.
July 23rd, 2009 Read more » valero