Chevron Corp. has told employees it is studying whether to cease refining operations at its Campbell Industrial Park facility and convert the oil refinery into a terminal for distribution of products shipped here.

The company yesterday announced to its 200 local workers that it wanted to study the option as it reviews how best to use facilities in a changing market for refiners.

"We're no different than any other business that has to continually understand its market and shape its business to that marketplace," said Chevron spokesman Al Chee.

"It is our desire to have a viable business long-term in Hawai'i."

Chevron operates the smaller of two refineries in the Islands, refining imported crude oil into fuel oil, diesel fuels, gasoline, jet fuel and propane. The refinery is one of San Ramon, Calif.-based Chevron's smallest, at a capacity of 54,000 barrels a day.

The refinery, along with another operated by Tesoro Corp., is an integral part of Hawai'i's energy architecture. No state is more reliant that Hawai'i on petroleum for its energy, with oil being the basis for almost nine-tenths of the energy consumed here.

But not all of the petroleum products consumed here are produced at the refineries, with some companies such as Aloha Petroleum and Mid Pac Petroleum choosing to import refined products.

The Chevron study will look at that type of model, with workers from here and elsewhere in the company examining the issues.

Chee said there may be other teams assembled in the company to look at other options.

Chevron also has begun briefing large customers and the state about the study, which has not set a deadline for completion. The state has a goal of obtaining 70 percent of its energy from renewable resources by 2030 and has encouraged adoption of electric vehicles.

Chee said the state's renewable energy goals are not part of the reason why Chevron is undertaking the effort.

Ted Peck, state energy administrator, said he believed Chevron was like other businesses in undertaking an examination of its business, and he's had long discussions with the company about the state's goals.

"We think Chevron is going to be a key player for the state's energy system for a long time to come," Peck said, noting this is the third time Chevron has undertaken this kind of study in the past two decades.

The past work has resulted in Chevron making changes in processes and technologies, Peck said. He said the company also has begun moving to take part in Hawai'i's move toward renewable energy, establishing an office for its Chevron Energy Solutions unit here last year.

Moreover, he said, the transition toward renewables will also open opportunities for facilities to refine biofuel grow in the state.

"They're not going to make any hasty decisions and they're committed to the state's energy future," Peck said.