Hess 2000 Annual Report Download - page 17

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15
REFINING
The St. Croix refinery, owned and operated by HOVENSA L.L.C., a joint venture between Amerada Hess
and Petroleos de Venezuela, S.A., benefitted from significantly improved refining margins in 2000 and
made a major contribution to the Corporation’s earnings. HOVENSA supplies refined petroleum prod-
ucts to both joint venture partners, including the bulk of the Corporation’s refined products for its East
Coast marketing business. HOVENSA continued to supply California with gasoline and distillates that
met that state’s strict environmental standards in 2000 during periods of shortages or tight supply.
During the year, HOVENSA began construction of the 58,000 barrel per day delayed coking unit. Upon
completion, the refinery will begin processing 115,000 barrels per day of heavy Venezuelan Merey crude
oil. The coker will enable the refinery to process crude oil that is heavier and less costly relative to other
crude oils processed at the refinery, thus improving profitability. The refinery will continue to process
at least 155,000 barrels per day of lighter Venezuelan Mesa crude oil. The delayed coking unit is sched-
uled to come onstream in the second quarter of 2002.
Early in 2001, HOVENSA brought the 140,000 barrel per day fluid catalytic cracking unit down for sched-
uled maintenance. This gasoline manufacturing unit was out of operation for approximately six weeks.
Immediately after the fluid catalytic cracking unit was brought back onstream, HOVENSA shut down
one of the large crude units at the refinery, both for scheduled maintenance and to upgrade it for inte-
gration with the delayed coking unit.
Total refinery runs at HOVENSA averaged 422,000 barrels per day in 2000, approximately the same level
as in 1999. The fluid catalytic cracking unit continued to operate at a peak rate of 140,000 barrels per
day during most of the year.
The Corporation’s Port Reading fluid catalytic cracking unit ran smoothly throughout 2000, generally
at a rate of about 60,000 barrels per day. The fluid catalytic cracking unit processes vacuum gas oil and
residual fuel oil to manufacture high-quality gasoline for HESS customers in the Northeast.
MARKETING
In November 2000, Convenience Store Decisions, a leading industry publication, named HESS EXPRESS
“2000 Convenience Store Chain of the Year.” The annual award, in its eleventh year, recognizes excel-
lence in convenience store chains in such areas as customer service, marketing innovation and market
share growth.
In 2000, Amerada Hess acquired 178 Merit retail gasoline stations which are concentrated in the New
York City, Boston and Philadelphia metropolitan areas. Nearly all of these locations have been rebranded
HESS, greatly strengthening the HESS brand in these areas.
Refining and Marketing