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Thread: Bahia Principe gives ultimatum to Government re: Refinery

  1. #11
    Senior Member act1966's Avatar
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    Quote Originally Posted by aquaman View Post
    hi

    appreciate your thoughts

    With respect to California, there are presently 20 salt water desalination plants under construction or in development. The largest in Carlsbad is starting to produce. There have been extensive studies done. A good one to read has been produced by the Pacific Institute.

    I agree with your comments about Aruba going green and self sustaining, but fossil fuels are still needed there. Could the refinery produce Avgas for the high volume of aircraft visiting and fuelling in Aruba. That Avgas is imported at high cost.

    While Aruba goes green, how many steady full time jobs will be created? Also, what happens to that industry if there is an economic turndown? I would hope that if the refinery is restarted, the goal would be both to produce for local use but with emphasis on producing product for export to the international market.

    i guess what concerns me is that Aruba needs to diversify.

    I agree with you about the weather

    Let's just hope that tourism proves to be sustainable for Aruba.

    enjoyed reading your thoughts on this

    J
    AQ: good points.

    Given the island was able to withstand the last recession, the tourism industry appears to have resiliency - particularly that a large segment of the demographic is luxury-based (i.e. it's cheaper to hit Cuba but you get what you pay for - we'll see if that holds true now that the US has opened diplomatic ties again).

    But, I agree, they need something else to supplement tourism.

    I'm surprised they haven't emphasized more convention-center facilities to draw in corporate travel; they also need to buff up on eco-travel (maybe to coincide with the increasing emphasis on alternative energy?).

    Or just sink all the money into aloe.

  2. #12
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    IMO, reopening the refinery is a bad idea. Right now, there are protests going on in Curacao as their refinery is polluting the air and the water.
    Which affect would something like this have on Aruba's tourism if they decide to reopen their refinery?

    Regarding tourism: I would like to see numbers.

    If I remember correct, ten years ago, Aruba had one million tourists come to the island.
    Now, it's like two and half million tourists.

    GDP (nominated) in 2013 was an estimated US$2.565 billion (according to Wikipedia).
    However, Aruba is in the red. Meaning, they spent more than what they took in.

    IMO, there is the problem. I'm under the impression Aruba's government spends way to much on projects which are unnecessary and inefficient. They don't bring in revenues (like the streetcar) or are rather harmful to the tourism economy like the parking meters. IMO, there is as well an over-building going on.

    Which would be my next thought: How many hotels and resorts are they? Are they really all booked out? So many times I read that there are barely tourists there (in low season). Is it worth it and necessary to build more hotels and resorts for the high season? (I don't have any numbers to get an idea and I'm not an expert).

    My next point: with all the hotels and resorts, more people are required to work there. More people coming into Aruba. Everything is growing: the population, the number of hotels and resorts, the number of tourists which requires more housing, more water, more electricity, more waste management ect, ect... Everything is growing but Aruba herself. It's a small island.

    I think some balance is very important, what can Aruba handle? And then some smart spending. JMO.

  3. #13
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    Quote Originally Posted by act1966 View Post
    AQ: good points.

    Given the island was able to withstand the last recession, the tourism industry appears to have resiliency - particularly that a large segment of the demographic is luxury-based (i.e. it's cheaper to hit Cuba but you get what you pay for - we'll see if that holds true now that the US has opened diplomatic ties again).

    But, I agree, they need something else to supplement tourism.

    I'm surprised they haven't emphasized more convention-center facilities to draw in corporate travel; they also need to buff up on eco-travel (maybe to coincide with the increasing emphasis on alternative energy?).

    Or just sink all the money into aloe.

    thanks...reasonable comments

    i believe the refinery was still operating at the onset of the last recession. We were there. Many concerned and sad people when the winding down was announced.

    I sort of miss those hazy smoky days in Saint Nicolaas when the haze laden with the smell of gas filled the streets and wafted into Charlie's Bar. I miss the overalled characters from the refinery stopping in to stores and the odd bar. Good old days.

    As former Manager of Computing Technology Evaluation for what was Canada's largest private telecommunications research and development organization, I truly believe it would be possible for Aruba to establish a premier software research centre. There are Dutch firms like Philips who I am sure would support and back such a venture. In addition there are many U.S. Firms who could benefit.

    Imagine all all those young bright engineers bringing their talent and financial resources to Aruba as opposed to crowded and expensive Silicon Valley in California. Just think of the benefits they would have.....kite boarding, windsurfing, sailing, diving and so on.

    i did have a discussion with a rep from the Aruba Govt who was intrigued by the idea. Not only would it establish a high tech incubator, but it would also offer a opportunity for the youth of Aruba who are often faced with the prospect of having to leave Aruba to pursue any high tech career

    is this far fetched! No, when you consider that Britain and other countries have introduced coding into the curriculum of very young students, recognizing that there is now, and in the future, a great need for tech savvy young adults.

    personally, I believe all this needs is someone with experience, a desire to do this and a fire in their belly to see such a venture succeed

    just a a thought or two

    john

  4. #14
    Senior Member danadog56's Avatar
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    so...I like the idea of opening some kind of convention center....arent they going to get rid of all the closed bldgs past the cargo port ??? that would be a lovely spot...
    also like the idea of tearing down the refinery and adding some resorts to help the folks on that end of the island,,,,
    how far has Bahia gotten that it is threatening to cancel ???? I thought they would be building already !!!
    ARUBA....HOME AWAY FROM HOME

  5. #15
    CK1
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    Some numbers, facts, suggestions and thoughts. Interesting read:

    Trouble in Paradise: Aruba's Fiscal Woes


    http://foresightinvestor.com/article...-s-fiscal-woes

  6. #16
    Senior Member rob o's Avatar
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    My opinion.....

    Provide tax incentives for a private company to clean up the existing refinery and open a modernized facility with appropriate air emission standards.

    As for the resort? If it comes, it comes. If it doesn't, so be it.

    Going overboard with "going green" is something the island can't afford. Baby steps......
    Please contact via e-mail at arubarennowner@gmail.com



  7. #17
    CK1
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    Markets | Tue Sep 1, 2015 12:39pm EDT Related: Stocks, Markets, Energy, Industrials
    RPT-Oil price crash prompts scramble for Caribbean storage tanks

    Excerpt:

    The oil market's contango structure <0#CL:>, where barrels for delivery later in the year are priced higher than prompt supplies, is providing a financial reason to store and hedge. Traders bet prices will rise after a 60 percent slide.


    "The observable forward market provides a good indication of the incentive to store physical barrels," said a spokesman for Statoil, which manages a terminal in Bahamas.


    Storage is such a good business right now that owners of the shuttered Hovensa refinery, Hess Corp and PDVSA, are making moves to sell it for use as a terminal, local media reports say, while U.S. Valero Energy confirmed that tanks at its shuttered Aruba refinery are "active" as well.


    A Hovensa representative did not comment.


    Terminals in Bahamas, Bonaire, St. Lucia and St. Eustatius that do not serve refineries received some 15.25 million barrels of crude from June, when prices started to fall, through July, according to Thomson Reuters data. They shipped out 12.16 million barrels in the same period, showing a rise in inventories.

    http://www.reuters.com/article/2015/...1171EN20150901

  8. #18
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    This article today somewhat supports my earlier assertion that Aruba could jump on the bandwagon early and both build and take a leadership position in software research and development

    interesting read : http://globalnews.ca/news/2228533/co..._campaign=2015

  9. #19
    Senior Member Arubalisa's Avatar
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    As part of their green initiative will the government require all motor vehicles to be non-fossil fuels?

  10. #20
    Aruba since 1979
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    no. where did you hear that?

    anyone think this includes motor vehicles? http://www.aruba.com/aruba-vacations...uba-initiative

    Quote Originally Posted by Arubalisa View Post
    As part of their green initiative will the government require all motor vehicles to be non-fossil fuels?
    Last edited by Andrea J.; 09-18-2015 at 11:05 PM.

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