While the focus of this site remains on the colonial history of St Croix, it is impossible to ignore such a significant impact on the island from the mid 20^th century.

In the mid-1960s, the island of St. Croix underwent a transformation that would reshape its economy and industrial landscape for decades. In 1966, Hess Oil Virgin Islands Corporation (HOVIC), founded by American entrepreneur Leon Hess, began construction of a massive oil refinery on the island’s south shore. The site was chosen for its deep-water port, strategic Caribbean location, and proximity to U.S. markets.

By the late 1960s, the refinery was fully operational and quickly grew into one of the largest oil refineries in the world, with the capacity to process over 500,000 barrels of crude oil per day. St. Croix, which had long relied on agriculture and tourism, was suddenly propelled into the world of heavy industry.

Economic Engine and Community Impact

The refinery became the largest private employer on the island, attracting workers from across the Caribbean and the mainland United States. It brought thousands of well-paying jobs, stimulated local business growth, and significantly increased government revenues through taxes and land use.

Entire neighborhoods, schools, and infrastructure projects were developed or improved thanks to this economic boom. For many Crucians, the “Hess years” were marked by stability, opportunity, and upward mobility.

HOVENSA: A Joint Venture with Venezuela

In 1998, the refinery transitioned to a joint venture called HOVENSA, co-owned by Hess Corporation and PDVSA, Venezuela’s national oil company. The partnership brought new capital and a steady stream of Venezuelan crude oil, allowing the facility to continue operating at high capacity into the early 2000s.

However, global changes were underway. Environmental regulations tightened, operational costs increased, and market dynamics shifted toward more modern and flexible refineries. HOVENSA began experiencing heavy financial losses — more than $1.3 billion in its final three years.

Closure and Consequences

In January 2012, HOVENSA announced the permanent closure of the refinery. The decision marked the end of an era, with over 2,000 workers losing their jobs almost overnight. The closure had a profound ripple effect on the local economy, leading to business closures, population decline, and deep concern about the island’s future.

The once-bustling refinery site was left largely idle, with some attempts to restart operations in the years that followed. A company called Limetree Bay Ventures briefly reopened the facility in 2020, but operations were shut down again in 2021 due to serious environmental violations and community backlash.

Legacy

Today, the ruins of the refinery stand as a symbol of both economic possibility and environmental caution. While its arrival brought prosperity to thousands of families and placed St. Croix on the map as an industrial hub, its closure also reminded the island of the volatility of global markets and the costs of environmental mismanagement.

Efforts to repurpose the refinery site, clean up contamination, and rebuild a diversified economy continue, as the people of St. Croix look to the future with hard-won resilience and pride in their past.