Hess 2008 Annual Report Download - page 26

Marketing
The Corporation markets refined petroleum products, natural gas and electricity on the East Coast of the
United States to the motoring public, wholesale distributors, industrial and commercial users, other petroleum
companies, governmental agencies and public utilities.
The Corporation had 1,366 HESS»gasoline stations at December 31, 2008, including stations owned by its
WilcoHess joint venture (Hess 44%). Approximately 90% of the gasoline stations are operated by the Corporation
or WilcoHess. Of the operated stations, 93% have convenience stores on the sites. Most of the Corporation’s
gasoline stations are in New York, New Jersey, Pennsylvania, Florida, Massachusetts, North Carolina and South
Carolina.
Refined product sales averaged 472,000 barrels per day in 2008 compared with 451,000 barrels per day in 2007
and 459,000 barrels in 2006. Total energy marketing natural gas sales volumes, including utility and spot sales, were
approximately 2.0 million mcf per day in 2008, 1.9 million mcf per day in 2007 and 1.8 million mcf per day in 2006.
In addition, energy marketing sold electricity volumes at the rate of 3,200, 2,800 and 1,400 megawatts (round the
clock) in 2008, 2007 and 2006, respectively. The increases reflect the impact of acquisitions and organic growth.
The Corporation owns 21 terminals with an aggregate storage capacity of 22 million barrels in its East Coast
marketing areas. The Corporation also owns a terminal in St. Lucia with a storage capacity of 10 million barrels,
which is operated for third party storage.
The Corporation has a 50% voting interest in a consolidated partnership that trades energy commodities and
derivatives. The Corporation also takes energy commodity and derivative trading positions for its own account.
The Corporation also has a 92.5% interest in Hess LNG, which is pursuing investments in liquefied natural gas
(LNG) terminals and related supply, trading and marketing opportunities. The joint venture is pursuing the
development of LNG terminal projects located in Fall River, Massachusetts and Shannon, Ireland. In addition, a
wholly-owned subsidiary of the Corporation is exploring the development of fuel cell technology.
Competition and Market Conditions
See Item 1A, Risk Factors Related to Our Business and Operations, for a discussion of competition and market
conditions.
Other Items
Compliance with various existing environmental and pollution control regulations imposed by federal, state,
local and foreign governments is not expected to have a material adverse effect on the Corporation’s financial
condition or results of operations. The Corporation spent $23 million in 2008 for environmental remediation.
The number of persons employed by the Corporation at year end was approximately 13,500 in 2008 and 13,300
in 2007.
The Corporation’s Internet address is www.hess.com. On its website, the Corporation makes available free of
charge its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as
reasonably practicable after the Corporation electronically files with or furnishes such material to the Securities and
Exchange Commission. Copies of the Corporation’s Code of Business Conduct and Ethics, its Corporate
Governance Guidelines and the charters of the Audit Committee, the Compensation and Management
Development Committee and the Corporate Governance and Nominating Committee of the Board of Directors
are available on the Corporation’s website and are also available free of charge upon request to the Secretary of the
Corporation at its principal executive offices. The Corporation has also filed with the New York Stock Exchange
(NYSE) its annual certification that the Corporation’s chief executive officer is unaware of any violation of the
NYSE’s corporate governance standards.
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