St. Croix

St. Croix embodies the volatility of single-asset dependence: the Hovensa refinery that once defined the island's economy closed in 2012, briefly reopened as Limetree Bay in 2021, polluted nearby homes and drinking water, and shut again under EPA order. As of December 2024, Port Hamilton (the current owner) has no restart plans, leaving a $400-million-per-year hole in the island's economy. This refinery cycle—construction, operation, pollution, closure—demonstrates classic boom-bust resource dynamics. Today, construction spending fills some of the gap, but St. Croix's poverty rate (25% in 2020) remains more than double the US mainland (11.1%), compounded by living costs 19% higher. The island's other economic anchor is rum: Captain Morgan (Diageo) operates in Christiansted, Cruzan distillery in Frederiksted. Rum depends heavily on the 'rum cover-over'—98% of US excise taxes on USVI rum exports are rebated to the territorial government. The 2025 permanent extension of this subsidy represents a rare fiscal victory. Cruise tourism at the Ann E. Abramson Marine Facility brought 169,228 passengers in 2024—modest compared to St. Thomas's 1.5 million—reflecting St. Croix's niche as the less-touristed, more industrial island. Governor Bryan sees multi-year construction projects as the bridge economy until refinery questions resolve. St. Croix's future hinges on whether petroleum infrastructure can restart or whether the island must reinvent itself entirely.