Beautiful Virgin Islands

Wednesday, Aug 27, 2025

800 jobless, $1.8B economic decline due to USVI refinery closure

800 jobless, $1.8B economic decline due to USVI refinery closure

The closure of the Limetree Bay Refinery on St Croix's south shore is projected to result in steep annual economic declines for the US Virgin Islands (USVI), with everything from deep losses in economic activity, nearly 1,000 jobs lost, and a drop of over half a billion dollars in gross domestic product, according to a USVI Bureau of Economic Research report.

The report, issued Tuesday, November 9, 2021, brings into focus the positive impact the refinery was having on the territory's economy, especially on St Croix before its closure following a massive flare incident on May 12, 2021, which led to the facility's eventual closure.

'Economic setback'


According to the report, the USVI will suffer an annual loss of a $632 million reduction in territory's GDP, almost $2 billion in lost economic activity along with 800 job losses — with the more significant impact being felt on St Croix.

The closure will also result in a $25 million loss in annual tax revenue to the government of the Virgin Islands, B.E.R. said.

“The LBR creates economic impact well beyond the refinery, as it supports additional jobs through local revenue and supply-chain activity associated with its operations,” states the report. “As those employed directly by LBF and in the supply chain spend their wages, jobs are supported in the broader economy in industries such as construction, retail and business service establishments. The ripple effects of the closure likely will result in additional employment, income and tax revenue losses in those sectors.”

According to B.E.R., Governor Albert A. Bryan, upon release of the information in the impact study, called the closure of the refinery an economic setback for the territory. He stated, however, that the steady increase of tourism and the many capital improvement and recovery projects ongoing across the territory "should more than offset the effects of the closure."

Financial impact


The financial impact of the refinery’s closure will result in losses of:

* 800 jobs (direct and indirect).
* $112 million in wages.
* $1.8 billion in sales.
* $632 million reduction in Gross Domestic Product.
* $19.7 million in individual income tax.
* $4.6 million in Gross Receipts taxes.
* $800,000 in trade and excise taxes.
* $300,000 in donations to charitable organizations.
* $237,000 in scholarships.

“LBR closure will impact many industries, including transportation, maintenance and repair, construction, engineering services, retail and wholesale trade, manufacturing, real estate and business services,” the report states. “The more significant of these impacts will be on St Croix, where most workers and some suppliers reside. However, these are transitory impacts, wherein in the long run, the interaction of economic productivity of the workforce, capital investments and policy will determine the overall health of the U.S. Virgin islands’ economy.”

B.E.R. Director Allison DeGazon said her department worked swiftly but diligently to produce this analysis less than a month following the closure of the refinery, which occurred in earnest on Friday, September 17, 2021, when the company made redundant most of its employees.

“Initial news of the refinery’s closure elicited strong reactions from the community, but our team used only data and statistics to drive the production of this report, keeping in line with the Bryan-Roach Administration’s commitment to transparency,” Ms DeGazon said. “While we acknowledge the short-term impact of the refinery's halt, we remain cautiously optimistic that our economy will rebound as it did following the closure of HOVENSA.”

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
×