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Tesoro continues its commitment to being the fuel of choice for Alaskans. The company had no strategic capital projects in 2008, but did focus on regulatory requirements and scheduled replacements, according to a Tesoro Alaska executive.

Tesoro Alaska had a successful year in 2008, according to Kip Knudson, external affairs manager, and is proud to be a business partner on the Kenai Peninsula and the state of Alaska.

"Tesoro Alaska refinery employees are especially proud to have logged an injury-free year," Knudson said.

The company's North Kenai refinery has a design capacity of 72,000 barrels per day. The average daily throughput in 2007, the last full year for which figures are published, was 61,800 barrels a day.

Throughput is driven by supply and demand economics -- crude oil supply and refined products demand, according to Knudson. Refinery throughput peaks during the summer period when demand is highest.

In 2008 North Slope crude oil accounted for approximately 50 percent of refinery throughput, Cook Inlet crude oil 25 percent and other crude oil 25 percent.

Tesoro Alaska is currently the only in-state manufacturer of ultra low sulfur diesel. The ultra low sulfur diesel processing unit can manufacture up to 10,000 barrels of product per day.

"The record volatility in energy costs experienced by both our company and our customers in 2008 was a significant challenge," Knudson said. "Based on our 40 years of operation on the peninsula, we will continue to be a long-term refining and marketing company in the state of Alaska, supplying Alaska consumers with reliable, high quality fuels."

Although Tesoro stopped issuing company branded consumer credit cards, brand loyalty is extremely important to Tesoro, according to Knudson.

Customer loyalty programs such as Free-Fillin' are constantly reviewed to assess their value to Tesoro customers. Like the Free Fillin' program, the company's credit card offering is under constant evaluation to deliver the best customer value.

There are currently no plans for refinery or retail expansions in 2009. Tesoro will target its business growth, both at the refinery and within retail operations, to meet the fuel needs of Alaska consumers in a safe, reliable, and environmentally conscious manner.

Tesoro at a glance

* Headquarters: San Antonio, Texas

* Tesoro Alaska Vice President of Refining: Steve Hansen

* Tesoro Alaska office: 800-478-4447

* Number of employees: 210 employees support the North Kenai refinery

* 2007 production: 61,800 barrels a day

* Nikiski refinery: 776-8191

* Web site: www.tesoropetroleum.com

* Company outlook: Tesoro will continue to be a long-term refining and marketing company in Alaska, supplying consumers with reliable, high quality fuels.

Phil Hermanek can be reached at phillip.hermanek@peninsulaclarion.com.