Lockout at BP Whiting refinery goes into effect tonight. Will it impact the pumps?
BP is locking out workers starting Wednesday evening at the refinery in Whiting, Indiana, due to ongoing contract negotiations.
It comes as gas and diesel prices rise due to the war in the Middle East.
So, what does this mean for you?
About 800 workers will be locked out starting Wednesday night. United Steel Workers union representatives said that some workers have already had their access cards deactivated. They also said there will be a protest in response to the lockout.
The planned lockout follows months of union negotiations at BP's largest refinery in the world, producing 440,000 barrels a day in Whiting, less than 20 miles from Chicago.
Union president Eric Schultz told CBS News Chicago that BP is demanding they cut 100 jobs and accept pay cuts to nearly all positions, something they won't accept.
It's happening amid rising gas, diesel, and jet fuel prices across the country due to the war in the Middle East, which the Whiting refinery provides all three.
"It's critical to the flow of jet fuel to O'Hare. To diesel to truckers and trains that are in the Chicagoland area, and it supplies gasoline to virtually every neighboring state," said Patrick De Haan, head of petroleum analysis at GasBuddy.
A spokesperson for BP said they do not expect any disruptions to operations or production. They say there are trained BP employees who can run the refinery, have prepared for a year, and have received more than 80,000 hours of training.
"There is an element of risk, but BP, given the contentious situation with the Middle East and the surge in the price of fuel, is very highly motivated to make sure this refinery is continuing to output product like gasoline, diesel, and jet fuel," Haan said.
But what does this mean for consumers at the pump? Haan agrees with BP about there being no disruptions, but also said it's about timing.
"This is obviously a contentious situation. The longer it goes, the more risk there may be that there could be disruptions, but there are other experts that BP will likely bring in to staff that refinery to keep it going," he said.
Haan said the lockout will not add any more pain at the pump.
"My immediate answer is, while the risk may be there for something down the road, there is not necessarily an immediate risk to gas prices. You'll be seeing gas prices continue to go up because of seasonal trends, because Middle Eastern issues pushing oil prices up. For now, though, what is happening with the lockout of union workers is not likely to be a key contributor to the rise in prices that we are facing," he said.
According to BP Whiting's website, renegotiations with the union typically happen "every three to four years." The last contract expired at the end of January.
No one from BP would go on camera on Wednesday, but in a letter posted for employees, officials say the union has yet to offer a counter that addresses company concerns. Read the full bulletin here.
The union said that a protest is scheduled for midnight at the refinery's main offices and at the USW 7-1 hall.