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Tesoro Hawaii will lay off up to 200 people

By Alan Yonan

LAST UPDATED: 02:41 p.m. HST, Jan 08, 2013

Tesoro Corp. will lay off up to 200 of its 240 employees at its Campbell Industrial Park refinery as it converts the refinery in April to an import, storage and distribution terminal.

Tesoro Corp. said today it will cease refining operations at the Kapolei facility and begin the process of converting it to a storage and distribution terminal.

The company will lay off 190 to 200 of the refinery's 240 employees, said Jason Kaneao, a Tesoro contract worker with Pacific Consultants and Construction. The company informed employees of the pending layoffs at a meeting at the plant today, said Kaneao, who attended the meeting. 

Tesoro said in an email to the Star-Advertiser, "It is anticipated that approximately 180-200 positions will be impacted."

Tesoro plans to continue offering the retail assets, which include 31 gas stations with 244 employees, for sale, said Tina Barbee, a Tesoro spokeswoman, in the email.

In a news release the company said: "Tesoro Hawaii will maintain the existing distribution system to support marketing operations and fulfill its supply commitments while continuing to offer the terminal, distribution and retail assets for sale. Upon conversion of the refinery to an import, storage and distribution terminal, Tesoro Hawaii believes third party utilization of the terminal and associated logistics will facilitate ongoing supplies of refined products."

Officials from Tesoro had scheduled the meeting with employees to announce that  it will no longer refine oil at its facility in Campbell Industrial Park.

San Antonio-based Tesoro put the underperforming refinery up for sale in January 2012, but has not been able to find a buyer. Tesoro met with state officials Monday to brief them of their decision.

The refinery is the state’s largest with a capacity of 94,000 barrels a day. It employs 240 people. The Tesoro news release did not say what would happen to the employees. It also did not say what will happen to Tesoro's 31 gas stations in Hawaii.

Hawaii has only two oil refineries. The other refinery, operated by Chevron, has a capacity of 54,000 barrels a day.

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loquaciousone wrote:
Uh oh.
on January 8,2013 | 10:23AM
loquaciousone wrote:
on January 8,2013 | 12:08PM
loquaciousone wrote:
Back to Uh oh.
on January 8,2013 | 02:46PM
allie wrote:
what are the consequences for Hawaii beyond the laid off workers? Can we now import refined products from anywhere?
on January 8,2013 | 02:51PM
1local wrote:
$1 per barrel tax - cheaper to refine outside of Hawaii...
on January 8,2013 | 07:07PM
Anonymous wrote:
Barrel tax has zippo, nada, nothing to do with it, but thanks for trying to start that shibai taking root in this forum.
on January 8,2013 | 08:46PM
Pocho wrote:
Chevron refinery is old, they should have bought it from Tesoro and ditched their current old refinery
on January 8,2013 | 05:46PM
gg808 wrote:
Tesoro has not class at all... why leak the news to the public before letting the employees know. This is a very classless act on their part.
on January 8,2013 | 10:30AM
lee1957 wrote:
You are assuming Tesoro is the source of the leaks.
on January 8,2013 | 10:47AM
gg808 wrote:
well who else would release the information? None of the employees know about this. I have friends there and no one, but the big wigs, coming in from the mainland, know whats happening. Their meeting is scheduled at 12 noon.
on January 8,2013 | 10:55AM
Kawipoo wrote:
They will be working at Micky Ds along with you, LOL, if you read it states that it was released to the state.
on January 8,2013 | 12:51PM
gg808 wrote:
This article was updated recently and the initial one didn't say that so mind your own business if you didn't see that one.... i guess you was just getting off shift at Micky D yourself huh?
on January 8,2013 | 01:00PM
Shawn211 wrote:
But on a serious note I wish all the employee get some kind of severance package to find quick employment somewhere...my prayers are with each and everyone!
on January 8,2013 | 01:53PM
allie wrote:
me too..horrible news for them...these were good paying jobs
on January 8,2013 | 02:47PM
gg808 wrote:
This article was updated. The earlier one did not disclose that information. I guess you were just getting off your early shift at Micky D's so never saw that one huh?
on January 8,2013 | 01:07PM
Kawipoo wrote:
I'll mind my business when you mind yours and quit repeating yourself!
on January 8,2013 | 01:35PM
Shawn211 wrote:
Well let's see, They've been on the market for sale since January 2012 and they has not be "one" interested buyer...ssoooo...hypothetically they did (employees) know Donald Trump was sitting in the backroom. eating his McD fries watching this all pan-out..
on January 8,2013 | 01:51PM
entrkn wrote:
We better get LNG facilities in Hawaii immediately...
on January 8,2013 | 10:32AM
LRob69 wrote:
This is VERY bad news for Hawaii.
on January 8,2013 | 10:32AM
Wazdat wrote:
oh no
on January 8,2013 | 10:41AM
Sunny wrote:
Tesoro also supplies Sam's Club gas stations.
on January 8,2013 | 10:54AM
primowarrior wrote:
If the price of gas here increases after Tesoro shuts it's refinery down, I'm sure Chevron will justify it by saying that "market forces" are responsible.
on January 8,2013 | 11:01AM
false wrote:
I was looking if anyone would point this out. Ouch. Prices should be going up.
on January 8,2013 | 02:25PM
allie wrote:
agree..bad article as it failed to discuss the real consequences to hawaii
on January 8,2013 | 02:48PM
grantos wrote:
give it time. this is a developing story. don't be so quick to dish out your judgements.
on January 8,2013 | 08:27PM
ALLDUNN wrote:
Hanabusa said were doing well based on the last quarter of last year, she knew about this but still says everything is rosy, just keep paying your taxes like good drones. Got to take care of those poor and less fortunate among us right.
on January 8,2013 | 11:02AM
localguy wrote:
ALLDUNN - If you believe every word from Hanabusa I have some land you may be interested in. Time will tell if Tesoro was honest with her or just talking shibai. My money is on the shibai.
on January 8,2013 | 01:25PM
hon2255 wrote:
Abercrombie, you need to get on this and stop any price gouging from Chevron, who claims to be a good PUBLIC CITIZEN !?? This is monopoly at it's worst. The cost of living is skyrocketing here Governor, soon Hawaii will be a class society of the very RICH and the LOW MIDDLE CLASS .
on January 8,2013 | 11:05AM
iwanaknow wrote:
So..............I just got an email from the gov saying something about this..............is it time to buy a bike or start walking?
on January 8,2013 | 03:03PM
residenttaxpayer wrote:
We're really screwed now!
on January 8,2013 | 11:19AM
olos73 wrote:
Time to get rid of the SUVs.
on January 8,2013 | 11:20AM
Sunny wrote:
Dodge RAM trucks too!
on January 8,2013 | 01:11PM
raspberrygoat wrote:
Hopefully we will now evaluate liquefied natural gas (LNG) as an alternative options for the State of Hawaii.
on January 8,2013 | 11:40AM
Shawn211 wrote:
Well if you're looking for "Natural Gas" you need not look very far. Just go down to the State Capitol Building...Soooon they're will be "lots" and "lots of natural gas coming out of thoses rooms...LOL
on January 8,2013 | 02:58PM
IAmSane wrote:
^ He's talking about farts.
on January 8,2013 | 03:33PM
Kawipoo wrote:
The State deserves everything it gets with it's ant-business posture.
on January 8,2013 | 12:53PM
soundofreason wrote:
on January 8,2013 | 07:31PM
lowtone123 wrote:
This puts everyone who drives in a bad situation. Basically every station that doesn't have Chevron on it gets their gas from Tesoro. This means that all gas locally will come from Chevron's refinery. They could concieveably raise wholesale gas prices since they will have a monopoly on local gas.
on January 8,2013 | 01:42PM
koaangel wrote:
When the government tells HECO to get off of oil, there are consequences. The residual oil, a waste product of crude oil after the "good stuff" is taken out, has always been used to make the steam needed to turn the electric generators at the power plants. Perhaps Tesoro may have been dealing with the prospect of no one buying the waste product, thereby making it no longer profitable to import crude oil for refining in Hawaii. And guess what? HECO will never get off of oil for a long time to come. It must still import residual products to run its generators...at a much higher cost. So, the consumer loses again from unintelligent government actions.
on January 8,2013 | 01:59PM
EINSTEIN1 wrote:
Might the utility company have failed in meeting its obligation to its customers by passively submitting itself to whatever politicians want and tell them what to do? Management may be willing to bend and adhere to political pressure, but are they listening to their own engineers and finance people who have the expertise at how to run power plants efficiently and cost-effectively?
on January 8,2013 | 02:33PM
goodday wrote:
The government drives the direction of the utility. The utility has no choice but to give in to political pressure. Politicians want what the people want right?
on January 8,2013 | 03:23PM
inverse wrote:
What I don't understand is between Tesoro and Chevron they had a duopoly (2) in Hawaii and Tesoro had a capacity that was almost double than Chevron; yet their refinery was NOT profitable?? So Chevron is able to make money refining in Hawaii but not Tesoro? Why is that? Something is missing here. What, Chev is better at greasing palms than Tesi?
on January 8,2013 | 02:13PM
Wage Earner wrote:
Read carefully, it said "underperforming", not NOT profitable. They were making money, but just not enough for the mainland guys.
on January 8,2013 | 02:28PM
Senior_Researcher wrote:
Wanna know what a one refinery town will be like? Look no further than this "newspaper," the remnant of a two newspaper town that immdediately jacked advertising and printing prices sky high, fired a bunch of good people, and told us to like it 'cuz they're the only rag in town. Oh, brother . . . . .
on January 8,2013 | 02:17PM
Shawn211 wrote:
Don't forget...... looked what happened with Aloha Airlines....... =(
on January 8,2013 | 02:32PM
loquaciousone wrote:
Don't forget....look at what happened to the newspapers.
on January 8,2013 | 02:47PM
false wrote:
As Tesoro sees the rail coming they know that more people will be relying on the rail. LOL
on January 8,2013 | 02:27PM
ya_think wrote:
Well you all voted for him now you will pay the price. The Great "O" is laughing all the way to DC.........
on January 8,2013 | 02:54PM
HawaiiCheeseBall wrote:
Sounds more like a business decision than anything else.
on January 8,2013 | 03:44PM
HonoluluHawaii wrote:
Still got Union and Chevron
on January 8,2013 | 04:14PM
RetiredUSMC wrote:
Make sure that the employees that convert the plant are Local's not a bunch of trailer trash from texas that will work for nothing and half do the job. Someone needs to watch the permit process! Someone call Reginald V. Castanares, Jr. Local 675 ask him what to do 808-536-5454! These are your jobs being stolen by mainlanders!
on January 8,2013 | 03:09PM
HonoluluHawaii wrote:
So in fact the protestors in front of Walgreens and Lexus were right all along. On the other hand, mainlanders need jobs also, so if u get laid off from Tesoro, please apply at ObamaCare or Zippy's, whichever pays more.
on January 8,2013 | 04:13PM
false wrote:
Too many government regulations... like forcing oil companies to put 10% Ethanol in the gas. Drives up the cost of gas and decreases its efficiency... stupid.
on January 8,2013 | 03:14PM
HawaiiCheeseBall wrote:
Go ask the workers there, they will tell you that the company never upgraded the facility. Same technology as when they bought it. They just ran it to the ground knowing that they could always convert it to a terminal.
on January 8,2013 | 03:46PM
Anonymous wrote:
That sounds the plausible truth. Was making a killing with limited maintenance needed until lifespan has been depleted. The cost of upgrading too high, with the need to hire union contractors and meet OSHA standards. Doesn't help with all the tax breaks being given to so-called renewable energy that only lines the pockets of a very few individuals taking advantage of it.
on January 8,2013 | 05:53PM
HonoluluHawaii wrote:
The ones in the know in the stock market says that financials and energy are two of the most difficult sectors to invest in, because of government regulation. On the other hand, if u see the price of a barrel of oil skyrocketing, no forget to invest in the ETF called USO (the United States Oil Fund, which ironically sounds like a Samoan name lol). Use options also, if u no mo enough loot.
on January 8,2013 | 04:32PM
HonoluluHawaii wrote:
Obama where r u?
on January 8,2013 | 04:10PM
soundofreason wrote:
Eighth hole.
on January 8,2013 | 07:33PM
false wrote:
Meanwhile, auto dealers in Hawaii are coming off a record year for sales. Traffic congestion is becoming more congealed by the day. HMSA and Kaiser are raising their rates. The potholes are getting deeper. We'll all soon be gridlocked by rail construction. And now we're at the mercy of Chevron. Lucky we live Hawaii, eh? If I hear one more news anchor mutter those words I'm going to recommend that he or she be waterboarded.
on January 8,2013 | 04:20PM
HonoluluHawaii wrote:
Tom Berg if this is u, i feel for ya.
on January 8,2013 | 04:33PM
Upperkula wrote:
People ,people the article says they are converting the refinery into a storage and distribution facility, which could only meen they are going to import fuel from where ever, store it and sell it from there, They apparently ran the numbers and came up with refining oil in Hawaii is to expensive and made the decision to can these 200 local jobs and ship the refined products into our state. We will still have fuel but what the price will be is yet to be seen. TESORO is only looking out for TESORO and nobody else. God Bless the unemployed.
on January 8,2013 | 06:31PM
soundofreason wrote:
If EVERYbody looked out for themself - then everBODY would be looked after.
on January 8,2013 | 07:35PM
HAJAA1 wrote:
on January 8,2013 | 06:34PM
1local wrote:
$1 per barrel tax - cheaper to refine outside of Hawaii...
on January 8,2013 | 07:08PM
Anonymous wrote:
Untrue when you posted it earlier and untrue when you post it again. Barell tax has nothing to do with it. That tax is passed onto the consumer and does NOT come out of the refinery's pocket.
on January 8,2013 | 08:49PM
pursuit2000 wrote:
The comments here make me laugh... You all voted (overwhelmingly) to elect Hanabusa, Lazie Hirono and Done Nothing Tulsi to complement the idiots you elected in 2010 to run the state (one which is now Senator). If any of these people had any care for the people of this state, they would stand up and do something... Those crickets you hear are their take on the matter... Don't worry though, you'll re-elect them and the cycle will continue.
on January 8,2013 | 10:37PM
jrboi96786 wrote:
I know this idea would not go for many people. but I think the best solution for this in order to avoid the spike of gas prices in the future is for the state to purchase the refinery and resume the operation. this is a win win situation since that the refinery is making profit and it would help pay off the money that is used to purchase. then eventually once there are interested buyers, then we get our money back, probably a couple of digits on top of that. just saying...
on January 8,2013 | 11:06PM
pursuit2000 wrote:
Purchase with what? The State is broke, the Governor wants to pay for mandatory pre-school amongst all his other pet projects. And honestly, do you think the State could do it efficiently?
on January 9,2013 | 12:43AM
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