After review of its U.S. portfolio, Chevron decided to withdraw its motor fuels operations in some areas of the eastern United States, including Delaware, Indiana, Kentucky, North Carolina, New Jersey, Maryland, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia, Washington, [image-nocss] D.C., and parts of Tennessee. Approximately 1,100 independently owned and operated retail stations will be debranded.
The San Ramon, Calif.-based company said that it expect all of the stations to continue operating under other brands and to have programs in place to assist retailers with the transition. It expected to complete the planned market exits by mid-year 2010.
(Click here for previous CSP Daily News coverage of Chevron's pullout.)
West Virginia Chevron distributors include Belle-based One Stop convenience stores, Par Mar Stores of Parkersburg, Woodford Oil Co. of Elkins and 7-Eleven stores.
"This was kind of a shock to us," Jan Vineyard, president of the West Virginia Oil Marketers & Grocers Association, told the newspaper. "It was done without warning, but the distributors will work hard going forward."
The stations and c-stores are expected to move to other brands. The retailers already have contracts with other gasoline companies. One Stop stores, for instance, sell motor fuel under the Exxon and Chevron brands. Woodford Oil has contracts with five fuel suppliers, the report said.
Some stores may have a difficult time switching to another brand of gasoline, if nearby competitors already sell the same fuel, Vineyard added.
In recent years, oil companies have cut back on retail operations where profit margins are small.
"Its very tough when you lose a business partner," Vineyard said. "It's very tough to be a business out there these days."
The Chevron stations being cut account for about 8% of the company's U.S. fuel volume. Chevron expects to make up for lost sales in Eastern states in other areas where it has a stronger presence. The company will continue to about 5,000 stations in the East.
For years, Chevron operated a storage and barge loading facility along the Kanawha River on Charleston's West Side, Vineyard said. The facility is now closed, according to the report.
During the past 18 months, several oil companies, including BP, Exxon Mobil and ConocoPhillips, have stepped away from retail operations to varying degrees.
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