Refining and marketing continues to be an important profit and cash generator for the Corporation, with growth opportunities in both r etail and energy marketing. In 2003, refining and marketing achieved its best financial performance in 10 years. 

## REFINING & MARKETING 

## REFINING 

The HOVENSA refinery in the United States Virgin Islands is jointly owned by the Corporation and Petroleos de Venezuela (PDVSA). It is one of the largest refineries in the world. The facility is strategically located in the Caribbean, allowing for short crude supply lines from Venezuela, as well as easy access to U.S. Gulf and East Coast product markets. 

In 2003, the refinery successfully completed the first year of operation of a 58,000 barrel per day coking unit. Gross crude runs at the refinery aver- aged 440,000 barrels per day for 2003, which, combined with improved refining margins, resulted in a significant improvement in financial perform- ance versus 2002. 

The CorporationGLYPH<213>s fluid catalytic cracking unit in Port Reading, New Jersey produces high-quality, clean-burning gasoline for northeast markets. 

The facility averaged feedstock runs of 54,000 bar- r els per day and realized a significant improvement in gasoline margins over 2002. 

Both refining facilities continue to produce gasoline with specifications that result in emissions well below the U.S. national average. 

## MARKETING 

## Retail 

The HESS retail network has become the leading independent gasoline convenience store marketer on the East Coast. In 2003, four new locations were built, while 10 existing sites were upgraded with the addition of HESS EXPRESS convenience stores. HESS EXPRESS stores generally feature several fast food offerings and proprietary coffee/fountain pr ograms and are major destinations for take-home bulk beverages. HESS EXPRESS gasoline volumes and convenience store sales are significantly higher than industry averages. 

