Tesoro shuts Golden Eagle refinery amid strikes

Market: Crude oil, Oil products
02/02/15

US independent refiner Tesoro will idle units not under maintenance at its 168,000 b/d Golden Eagle refinery in Martinez, California, amid strikes and contract negotiations with United Steel Worker (USW) union employees.

The refiner will extend maintenance already underway for weeks at the northern California facility following the early Sunday notification of a strike by USW employees. Operations at the company's 120,000 b/d Anacortes, Washington, and 260,000 b/d Carson, California, refineries transitioned to non-union operations yesterday.

Golden Eagle accounts for roughly 9pc of California refining capacity.

USW workers began strikes after rejecting what refiners called a last, best offer on operating contracts. National negotiations led for refiners by Shell concentrated on wages, benefits and working conditions. The union objects to a shift of jobs to contractors, which they say undermines safety and trade career opportunities.

The strike continued for a second day this morning. Workers gave notifications at the 268,000 b/d LyondellBasell refinery in Houston, Texas; Marathon Petroleum's 475,000 b/d refinery in Texas City, Texas, and 240,000 b/d refinery in Catlettsburg, Kentucky; Shell's 340,000 b/d joint venture refinery in Deer Park, Texas; ExxonMobil's 348,000 b/d refinery in Beaumont, Texas; and at Tesoro's 68,000 b/d refinery in Mandan, North Dakota.

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Tesoro shuts Golden Eagle refinery amid strikes

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