Refinery Strike Anticipated To Have Little Impact On Gas Costs
About three,800 workers struck for the second day Monday at nine U.S. refineries, including one in Carson, following the breakdown of contract negotiations between the United Steelworkers union and Shell Oil Co.
The job action, which began Sunday, is the largest strike of refinery workers since 1980, union officials stated. The USW known as for the strike after Shell administration didn’t meet its demands regarding safety and medical health insurance points.
“Shell top oil producing countries 2016 refused to supply us with a counteroffer and left the bargaining table,” USW Worldwide President Leo W. Gerard stated in a news launch. “We had no alternative however to present discover of a work stoppage.”
A Shell consultant told the Related Press that that the company stays “committed to top oil producing countries 2016 resolving our differences with USW at the negotiating table to succeed in a mutually satisfactory settlement.”
The affected refineries embrace two in California — Tesoro refineries in Carson and Martinez — as well as 5 in Texas and one each in Kentucky and Washington.
About 800 staff are on strike on the Tesoro Carson Refinery, said David Campbell of USW Native 675, which represents most refinery workers in Southern California.
Staff on the Carson refinery are prepared to hold out so long as vital, Campbell mentioned.
“So far as how lengthy it goes, nobody has a crystal ball,” Campbell said. “We do not know.”
Tesoro stated it will proceed operating its Carson refinery and one other affected by the strike in Anacortes, Wash. The corporate stated that as a result of the strike occurred throughout ongoing maintenance at its Martinez plant, “the safest working position at this time is to idle the remaining course of units.”
Fadel Gheit, senior energy analyst for Oppenheimer & Co. said the strike will “have very little impression, if any, on fuel costs.”
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Traders may try to capitalize on the uncertainty, putting a slight upward stress on gas prices, but traditionally U.S. refineries keep operating despite strikes, he mentioned.
“It actually has by no means been a major situation,” Gheit mentioned of strikes.
USW spokeswoman Lynne Hancock said the union desires a 3-yr contract and is ready to broaden the strike to different refineries if the impasse continues. She said no new talks have been scheduled.
United Steelworkers represents about 30,000 staff at refineries, terminals, petrochemical plants and pipelines across the nation. Shell is serving because the lead firm in nationwide bargaining talks with the union.