Houston’s Oldest Refinery to Shut After 106 Years of Fuel Production

LyondellBasell's 106-year-old refinery in Houston is set to close, signaling the conclusion of a significant chapter for the city's oldest fuel producer. 

Constructed by industrialist Harry Sinclair in 1918, the refinery has long been a fixture along the Houston Ship Channel; however, it is now set to close due to modernization costs projected to reach as high as $2 billion. Although profits have remained robust in recent years, the U.S. has experienced a decrease in gasoline consumption, and the transition to cleaner energy intensifies the sector's challenges. 

"Lyondell’s closure is beneficial for the market," stated Randy Hurburun, senior refinery analyst at Energy Aspects. The closure of the Houston refinery is viewed as part of a more significant trend towards more efficient and competitive operations, especially in light of competition from modernized refineries that are processing lighter crude from the Permian Basin. 

John Auers of RBN Energy observes that the market has adjusted chiefly to the closure, describing it as “a pebble in a fairly big lake, not a boulder in a small lake." While the closure resulted in the loss of hundreds of jobs, it indicates a transformation in the refining landscape as the industry responds to evolving demand. 

“The workforce has decreased to 450 from 1,200 a few years ago," remarked Marcos Velez of United Steel Workers District 13, highlighting the plant’s reduced significance. 

This shutdown signals further closures are on the horizon, marking a transformative period in the refining industry as companies adapt to changing fuel demands.

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