Convenience Big Store: Houston refinery closure signals growing trend

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The sun sets behind the LyondellBasell Houston Refinery, one of the businesses on the list of high harm facilities, Thursday, April 14, 2016 in Houston.

Photo by: Michael Ciaglo(Houston Chronicle)

End of an era

Oil refineries have long been the lifeblood of many working-class neighborhoods in East Texas, often offering six-figure incomes without education requirements. Now, change is in the air.

Workers among the roughly 1,000 employed at one of the Houston area's largest refineries began receiving layoff notices Thursday, a union representative said. The facility's owner, chemical giant LyondellBasell, is preparing to start shutting down the refinery permanently this week as it seeks to reposition itself in a world expected to burn fewer fossil fuels.

Until now, Houston had resisted the trend sweeping the industry: Oil refiners are deciding not to fix their aging or damaged facilities as increasingly fuel-efficient and electric vehicles eat into gasoline demand, threatening the return on those investments.

The closure of a major Houston refinery is a bellwether for pressure on a segment of the oil and gas industry that is costly to run and historically not very profitable. But just how quickly EVs begin to dominate the market and force out more refineries depends somewhat on the federal government.

But President Donald Trump's ban on subsidies for EVs may have bought Houston refineries more time.

Amanda Drane, Energy Reporter

amanda.drane@houstonchronicle.com

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