Hess Corporation announced Monday in a letter to shareholders that it plans to exit its retail gasoline and convenience store operations, a move that could erase the iconic green and white Hess Station signs from the Long Island landscape, including Bayport.
The move will affect 1,350 gas stations - many owned by Hess itself - that operate in 18 states on the Eastern Seaboard. The gas stations serve as many as 1.3 million customers a day, according to a report in Supermarket News.
Hess did not say when they would begin either closing or selling off their gas stations, although a statement accompanying the news said that the gas station closures, along with other moves to improve the company's bottom line, would begin between now and 2014.
"Our long-standing commitment to deliver secure supply, competitive prices, and industry-leading service to our customers is part of our brand and will not change. Operated by great people, our businesses are strong, profitable and will be well situated for the future," a Hess spokesperson said.
The move may come as bittersweet to Long Islanders who often praise the chain's practice of not charging a different price for gas whether a customers pays with cash or credit card.
At the same time, the chain had played a huge role in the days following Hurricane Sandy, when a gas crisis led to fuel shortages and long lines at pumps. Hess published reports through the days telling residents which stations had gas and which ones were out.
Hess said the divesting of the company's gas station arm is part of a multi-year effort to transform itself into an oil 'exploration and production' firm..
The changes began in January, when Hess announced it would be permanently shutting its oil refineries, including one in the Port Reading section of Woodbridge, NJ. Hess said it was leaving the gasoline refining business because of weak demand and the cost of complying with EPA regulations.
The refinery was closed at the end of February.
Hess's retail marketing division and the company's headquarters is located in the Hess corporate headquarters building on Route 9 in Woodbridge. The firm has said that the structure, an iconic landmark in the township, will remain open despite the divestiture of its various enterprises.
With reporting by Deborah Bell.
