Refining in paradise
Your article, "Refining in paradise," reminded me of my years in Aruba at the Lago refinery. Indeed it is located on a very beautiful island, and an assignment there was considered by many of us in Exxon as the best outside the US (OGJ, Oct. 4, 2004 p. 15).
Lago Oil & Transport was established in Aruba in 1924 as a part of Standard Oil of Venezuela, as a location for transshipment of crude from shallow Lake Maracaibo to ocean-going tankers at a deep water port. In 1929, the Lago refinery came on-stream, and in 1932 the affiliation was changed to Standard Oil of New Jersey. It was a major supplier of petroleum products during World War II and even had two of its tankers sunk by a U-boat in the harbor in 1942
At one time it was rated one of the largest refineries in the world, processing over 500,000 bo/d, while employing some 8,000 people including 2,800 American expatriates. Lago/Exxon was the major business in the economy of Aruba for so many years. In 1985 the refinery was shut down, and Lago closed after over 60 years of business, as a result of a world over supply of refining capacity. It had been a classic example of how business can partner with the local economy and lifestyle amid a beautiful environmentally sensitive area, being the small island that Aruba is.
The closing was a tremendous hardship on the island, but the government turned to tourism and Aruba has revived as one of the garden spots in the Caribbean. Exxon and Aruba share a unique history that during the last century impacted many people and many faraway product destinations.
R Gerald Bailey
Chairman
Bailey Petroleum
Houston
