10/12 Industry Report [Q3 2018] by Baton Rouge Business Report

Q 3 2 01 8

P L U S: W h e n O S H A c o m e s c alli n g T h e A u s ti n C h al k F o c u s o n t r a n s p o rt

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WI N D F A L L? T h e p etr o c h e mi c al i n d u str y i s b o o mi n g. Oil pri c e s ar e r e b o u n di n g. S o w h y i s L o ui si a n aâ&#x20AC;&#x2122; s e c o n o m y str u g gli n g ?

S P E CI A L S E C TI O N

C O M P A N Y S P O T LI G H T S

• A D WILL R U N A S I S u nless a p prov al or ﬁ n al revisio ns are receive d by t he close of b usi ness to d ay. • A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees. C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 8. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

6 TI M E

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“ T h e r eli a bilit y of t h e M er c e d e s v a n h a s m a d e all t h e diff er e n c e i n t h e w orl d. We k n o w w h e n w e p ut t h o s e v a n s o n t h e str e et, t h e y ar e g oi n g t o p erf or m f or y e ar s t o c o m e.” — Br y a n Na q ui n O w n er, Ac a di a n H o m e T h e atr e

1 0 9 4 9 Airli n e Hi g h w a y • B at o n R o u g e ( 2 2 5) 4 2 4- 2 2 7 7 • w w w. m b o br. c o m

F a c e b o o k. c o m / M B B at o n R o u g e

T witt er. c o m / M B O B R

Yo u T u b e. c o m / M B of B at o n R o u g e

I n st a gr a m. c o m / m b _ B at o n R o u g e

1 0 1 2i n d u str yr e p ort. c o m

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B at o n R o u g e

S ul p h ur

B e a u m o nt

L af ay ett e ( A d mi n) St. R os e

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H e avy C o nstr u cti o n E q ui p m e nt & S p e ci alty Att a c h m e nts

R E NTAL S & S AL E S

E N E R GY • I N D U S T RI A L • D E M O LI TI O N H E A VY CI VI L • I N F R A S T R U C T U R E • C O M M E R CI A L

H ALL OF F A M E 9- Ti m e I n c. 5 0 0 0 H o n or e e

2017

2016

2015

2014

2013

2012

2011

2010

2009

A M E RI C A’ S F A S T E S T G R O WI N G P RI V A T E C O M P A NI E S

8 7 7- 3 3 2- 7 1 8 7

W W W. B O T T O M LI N E E Q UI P M E N T. C O M 4

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

1 0 1 2i n d u str yr e p ort. c o m

I n 2 01 6, c o nt ai n er- o n- b ar g e s er vi c es r et ur n e d t o t h e P ort. To d ay, o p er at or S E A C O R h a n dl es u p t o 4 0 0 c o nt ai n ers at a ti m e, l o a di n g t h e m wit h a v ari et y of pr o d u cts fr o m n e ar by i n d ustri es a n d tr a ns p orti n g t h e m t o t h e P ort of N e w Orl e a ns f or ex p ort. L o c al i n d ustr y acc e pt a nc e is hel pi n g e ns ure c o nfi de nc e i n t he servic e. SE A C O R has i ncrease d fr o m o ne t o t w o r u ns t o Ne w Orlea ns per we ek, a n d v ol u me has ne arly q u a dr u ple d. T h e P ort is accr ui n g e q ui p m e nt f or q uick er a n d e asi er tr a ns p ort wit h t h e assist a nc e of a $1.7 5 milli o n M ariti m e A d mi nistr ati o n gr a nt. A $ 4- 5 milli o n ex p a nsi o n of t h e c o nt ai n er y ar d is b ei n g p arti ally f u n d e d t hr o u g h L o uisi a n a’s P ort Pri orit y Pr o gr a m. P ort E x e c uti v e Dir e ct or J ay H ar d m a n s ai d, “ We ar e excit e d a b o ut ac q uiri n g m or e e ﬀici e nt e q ui p m e nt a n d a d di n g i nfr astr uct ur e. Ev er y o n e of o ur c o nt ai n ers t h at g o es d o w n t o N e w Orl e a ns f or ex p ort is o n e l ess 1 8- w h e el tr uck o n o ur r o a ds a n d bri d g es.” F or m or e i nf or m ati o n, c o nt a ct Gr e g J o h n s o n: 2 2 5- 3 4 2-1 6 6 0.

24 25 E rn e st W ils o n D rive • P.O . B ox 3 8 0 • P o rt A ll e n, L A 7 0 76 7-0 3 8 0 P H : (2 25 ) 3 4 2 .16 6 0 • F A X : (2 25 ) 3 4 2 .16 6 6 w w w .p o rt g br.c o m

1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

C O N TE N TS

P u bli s h er:

W h er e’ s t h e

WI N D F A L L ? T h e p etr o c h e mi c al i n d u str y i s b o o mi n g. Oil pri c e s ar e r e b o u n di n g. S o w h y i s L o ui si a n a’ s e c o n o m y str u g gli n g ? P A G E 2 4

R olf e M c C olli st er, Jr.

E DI T O RI A L E dit ori al Dir e ct or: P e n n y F o nt S p e ci al Pr oj e ct s E dit or: J err y M arti n E dit or: S a m B ar n e s C o nt e nt Str at e gi st: All y s o n G u a y C o ntri b uti n g Writ er s: Eri n Z. B a s s, D a vi d J a c o b s, M er e dit h W hitt e n C o ntri b uti n g P h ot o gr a p h er s: L e e C el a n o, T erri F e n s el, C h er yl G er b er, D o n K a d air A D V E R TI SI N G S al e s Dir e ct or: K erri e Ri c h m o n d A c c o u nt E x e c uti v e s: Alli s on H u b er, K ati H y er, A n gi e L a P ort e A d v erti si n g C o or di n at or: Britt a n y Ni et o M A R K E TI N G C hi ef M ar k eti n g Of ﬁ c er: Eli z a b et h M c C olli st er M ar k eti n g a s si st a nt: K at el y n O gl e s b y E v e nt s: A b b y H a milt o n C o m m u nit y Li ai s o n: J e a n n e M c C olli st er M c N eil P R O D U C TI O N/ D E SI G N Pr o d u cti o n M a n a g er: M el a ni e S a m a h a Art Dir e ct or: H o a V u Gr a p hi c D e si g n er s: M eli n d a G o n z al e z, R a c h el P ar k er, Li n d s a y St e el e, E mil y Witt A D MI NI S T R A TI O N C hi ef Fi n a n ci al Of ﬁ c er: A n dr e w P erill o u x Di git al M a n a g er: J a m e s H u m e B u si n e s s A s s o ci at e: Kir st e n Mil a n o B u si n e s s A s s o ci at e: Tiff a n y D ur o c h er C o uri er: Ji m W ai n wri g ht R e c e pti o ni st: C at h y Br o w n A U DI E N C E D E V E L O P M E N T A u di e n c e D e v el o p m e nt C o or di n at or: C arl o s Gil

C O N T E N T S

E DI T O R’ S T A K E

N E W S

3 2

L A U N C H

1 6 18 21

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I C Y MI I n d u str y bri ef s T h e bi g pi ct ur e T h e t err a c e s of T err e b o n n e I nt elli g e n c e M e g a pr oj e ct s: L e s s o n s l e ar n e d E x e c uti v e pr o ﬁl e M e et M ar k D e ar m a n, s e ni or o p er ati o n s dir e ct or f or H u nt s m a n P ol y ur et h a n e s A m eri c a s a n d g e n er al m a n a g er of R u bi c o n L L C Aft er h o ur s I n d u str y e v e nt s a cr o s s t h e c orri d or

3 6 4 0

4 2

M a ki n g a pl a y C o m p a ni e s b a n k t h at fr a c ki n g a d v a n c e s will h el p t ur n a pr o fit i n t h e A u sti n C h al k. O S H A p a yi n g a vi sit ? H er e’ s w h at y o u n e e d t o k n o w. A b ett er fit A B at o n R o u g e c o m p a n y s p ot s a n o p p ort u nit y f or fir e-r e si st a nt w o m e n’ s w or k w e ar. A b o v e a n d b e y o n d: E n vir o n m e nt al i nt e grit y S o m e c o m p a ni e s h a v e m a d e it t h eir mi s si o n t o e x c e e d r e q uir e d e n vir o n m e nt al r e g ul ati o n s t o e n s ur e a h e alt h y e c o s y st e m.

F O C U S

4 4 4 8

Dri v erl e s s dir e cti o n Tr u c k er s l e a d t h e w a y a s L o ui si a n a pr e p s f or a n a ut o n o m o u s f ut ur e. G etti n g t o m ar k et A s tr a n s p ort ati o n c o st s e s c al at e, r e si n m a k er s t ur n t o c o nt ai n er- o nb ar g e s er vi c e.

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

5 5

G u e st c ol u m ni st s w ei g h i n o n t h e d a n g er s of tr a d e pr ot e cti o ni s m, t h e i n d u stri al v al u e c h ai n a n d e n g a gi n g e m pl o y e e s a cr o s s g e n er ati o n s.

C o m p a n y s p otli g ht s

C L O SI N G N O T E S

6 3 6 4 6 6

I N SI G H T

S e n d y o ur i d e a s a n d c o m p a n y n e w s t o e dit or @ 1 0 1 2i n d u str yr e p ort. c o m. 6

S P E CI A L A D V E R TI SI N G S E C TI O N

7 0

E x e c uti v e m o v e s C o m pa ny ne ws T h e b o o m at a gl a n c e O ur m a p s of t h e pr oj e ct s dri vi n g t h e i n d u stri al b o o m. M y t o u g h e st c h all e n g e J e n nif er V o s b ur g of N R G

A P U B LI C A TI O N O F L O UI SI A N A B U SI N E S S I N C. C h air m a n: R olf e H. M c C olli st er, Jr. Pr e si d e nt a n d C E O: J uli o A. M el ar a E x e c uti v e A s si st a nt: Milli e C o o n S U B S C RI P TI O N S/ C U S T O M E R S E R VI C E 9 0 2 9 J eff er s o n Hi g h w a y, S uit e 3 0 0 B at o n R o u g e, L A 7 0 8 0 9 2 2 5 - 4 2 1- 8 1 5 7 • F A X 2 2 5 - 9 2 8 - 5 0 1 9 1 0 1 2i n d u str yr e p ort. c o m e m ail: cir c ul ati o n @ b u si n e s sr e p ort. c o m V ol u m e 3 - N u m b e r 3 © C o p yri g ht 2 0 1 8 b y L o ui si a n a B u si n e s s I n c or p or at e d. All ri g ht s r e s er v e d b y L BI. 1 0/ 1 2 I n d u str y R e p ort i s p u bli s h e d q u art erl y b y L o ui si a n a B u si n e s s I n c. R e pr o d u cti o n wit h o ut p er mi s si o n i s pr o hi bit e d. B u si n e s s a d dr e s s: 9 0 2 9 J eff er s o n H w y., St e. 3 0 0, B at o n R o u g e, L A 7 0 8 0 9. T el e p h o n e ( 2 2 5) 9 2 8 - 1 7 0 0. P O S T M A S T E R: S e n d a d dr e s s c h a n g e s t o 1 0 1 2 I n d u str y R e p ort, 9 0 2 9 J eff er s o n H w y., St e. 3 0 0, B at o n R o u g e, L A 7 0 8 0 9. 1 0/ 1 2 I n d u str y R e p ort c a n n ot b e r e s p o n si bl e f or t h e r et ur n of u n s oli cit e d m at eri al — m a n u s cri pt s or p h ot o gr a p h s, wit h or wit h o ut t h e i n cl u si o n of a st a m p e d, s elf- a d dr e s s e d r et ur n e n v el o p e. I nf or m ati o n i n t hi s p u bli c ati o n i s g at h er e d fr o m s o ur c e s c o n si d er e d t o b e r eli a bl e, b ut t h e a c c ur a c y a n d c o m pl et e n e s s of t h e i nf or m ati o n c a n n ot b e g u ar a nt e e d. N o i nf or m ati o n e x pr e s s e d h er e c o n stit ut e s a s oli cit ati o n f or t h e p ur c h a s e or s al e of a n y s e c uriti e s.

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St at e- of-t h e- art W el di n g S er vi c e s

D E L T A h a s o v er t hirt y y e ar s of k n o wl e d g e a n d e x p eri e n c e t o m a k e y o ur pr oj e ct a s u c c e s s. L et D elt a’s pr o a cti v e a p pr o a c h a n d pr o v e n s y st e m str e a mli n e y o ur m at eri al n e e d s. D elt a will n e v er s a cri ﬁ c e q u alit y a n d s er vi c e t o r e c ei v e a n or d er.

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1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

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S A M B A R NES

t a p pears t here has bee n a para di g m s hift i n t he c yclical w orl d of oil a n d g as, a n d it’s lar gel y be ne fiti n g t he nei g hb ori n g st ate of Te xas m ore t ha n L o uisia na — at least f or n o w. The oil freefall fr o m a c o u ple of years a g o se nt ma n y of t he ma j or pla yers t o t he E a gle F or d a n d Per mia n Basi n s hale pla ys a n d a wa y fr o m o ffs h ore pr o d ucti o n. Thi s is re flecte d i n L o uisia na’s latest ec o n o mic n u m bers, w hic h s h o w a s hri n ki n g gr oss d o mestic pr o d uct des pite oil prices nearl y tri pli n g si nce 2 0 1 6. [ See o ur co ver story, “ W here’s t he wi n df all?,” p age 2 4 .] Pre dict a bl y, t here is a c orres p o n d i n g dr o p i n t he L o uisia na treas ur y. Eve n t h o u g h pr ocee ds fr o m oil a n d g as are n’t as vit al t o t he st ate’s o perati n g b u d get as t he y use d t o be, a dr o p i n pr o d ucti o n a n d se vera nce t a x re ve n ues ca n still ma ke f or a ba d da y. F ort u natel y, L o uisia na mi g ht s o o n t a p i nt o its o w n piece of t he s hale pie i n c o mi n g m o nt hs, alt h o u g h it’s t o o earl y t o tell t o w hat e xte nt. There has bee n a l ot of b u z z ar o u n d t he A usti n C hal k pla y i n s o ut h a n d s o ut heaster n L o uisia na. [ See “ M a ki ng a pl ay,” p age 3 2 ]. Thi s f oll o ws a re vival of s orts i n t he Te xas p orti o n of t he A usti n C hal k, t ha n ks t o ne w h ori z o nt al drilli n g a n d c o m pleti o n tec h ni q ues, a n d t here’s h o pe t hat c hea p la n d a n d a n availa ble i nfrastr uct ure will ma ke t he pla y attractive i n L o uisia na as well. Lease p urc hase a n n o u nce me nts b y C he vr o n P hilli ps, Marat h o n a n d E O G Res o urces are f ueli n g t he o pti mis m, alt h o u g h a n y pr o d ucti o n esti mates w o ul d be a s h ot i n t he dar k u ntil wells are pr o d uci n g. The fli p si de of t he i n d ustrial c oi n — petr oc he mical —c o nti n ues t o have its o w n si zea ble i m pact o n st ate a n d paris h c o ffers t hr o u g h billi o ns of d ollars i n a n n o u nce d c o nstr ucti o n. W hile s o me fear t hat m uc h of t he i nitial t a x be ne fit will be l ost t hr o u g h I T E P, it’s har d t o dis p ute t hat gr o wt h i n t he petr oc he mical mar ket has far-reac hi n g ra mi ficati o ns t hat g o be-

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

y o n d pr o pert y t a xes. C a mer o n Paris h, f or e xa m ple, has give n u p a n i ncre di ble $ 5. 3 billi o n t hr o u g h I T E P over t he years, b ut is als o o ne of t he bi g gest c o ntri b ut ors i n st ate sales t a xes. C O R R A L LI N G M E G A P R O J E C T S M ost of t he d ollars s pe nt o n petr o c he mical e x pa nsi o ns t hese da ys g o t o a h ost of $ 1 billi o n- pl us me g a pr ojects. U nf ort u natel y, t he facilit at ors of t hese ma m m ot h pr ojects c o nsiste ntl y fail t o c o m plete t he m o n ti me a n d i n b u d get. Acc or di n g t o Mc Ki nse y & C o., a Ne w Yor k ma na ge me nt c o ns ulti n g fir m, 7 7 % of me g a pr ojects w orl d wi de are m ore t ha n 4 0 % late, a n d 9 8 % of t he m are over b u d get. I n part t o a d dress t his wi des prea d iss ue, petr oc he mical lea ders g at here d i n Galvest o n i n J u ne t o i de ntif y best practices a n d less o ns lear ne d i n t he w orl d of me g a pr ojects. [See “ Meg a projects lesso ns le ar ne d,” p age 1 8. ] A n e ntire tract at t he t w o- da y D o w nstrea m C o nfere nce & E x hi bi ti o n was de v ote d t o a nal y zi n g vari o us s ol uti o ns t o t he pr o ble ms faci n g me g a pr ojects —i n pla n ni n g, e xec uti o n a n d t ur n over. The e ve nt was atte n de d b y 1, 5 0 0 ca pit al pr oject, t ur nar o u n d a n d mai nte na nce pr ofessi o nals. T R A N S P O R T A TI O N E V O L V E S L o uisia na is i n t he mi dst of a plastic resi n b o o m. Risi n g U. S. e ner g y pr o d ucti o n — m uc h of it fr o m i ns h ore s hale pla ys —is pr ovi di n g vast a m o u nts of a ff or da ble fee d st oc k f or P V C a n d p ol yet h yle ne plastic resi n pr o d ucti o n. To pr ovi de a n ot her o pti o n f or tra ns p orti n g t he pr o d uct, p orts i n Bat o n R o u ge a n d Ne w Orlea ns are n o w o fferi n g a c olla b orative “c o nt ai n er- o n- bar ge” ser vice t o ma n ufact urers al o n g t he Mississi p pi River c orri d or, a n d i n t he pr ocess h o pe t o re d uce gree n h o use g ases, i nterst ate tr uc k tra ffic a n d tra ns p ort ati o n c osts. [See “ Getti ng to m ar ket,” p age 4 8.] N ot t o be left be hi n d, t he tr uc ki n g i n d ustr y is e n ha nci n g its o w n p ortf oli o wit h ne w i n n ovati o ns t hat will

o ne da y pr o pel it t o war d a driverless f ut ure. [See “ Dri verless directio n,” p age 4 4 .] I n Ma y, G ov. J o h n Bel E d war ds si g ne d Act 3 1 0, o pe ni n g t he d o or f or t he “ plat o o ni n g” of cert ai n tr uc ks — w here a si n gle driver o perates a lea d tr uc k i n a t w o-ve hicle c o nv o y. Pr op o ne nts s uc h as tec h n ol o g y pr ovi der Pel ot o n Tec h n ol o g y i n M o u nt ai n Vie w, C alif or nia, sa y f uel e ffi cie ncies gai ne d b y plat o o ni n g ca n be si g ni fi ca nt. The A merica n Tra ns p ort ati o n Researc h I nstit ute rece ntl y release d a re p ort o n t he f ut ure of a ut o n o m o us tr uc ki n g, c o ncl u di n g t hat it was o n c o urse t o f u n da me nt all y c ha n ge t he i n d ustr y. I N D UST RY NE WS H AS A H O ME We’re e xcite d t o s hare wit h y o u t hat t o meet rea der de ma n d, we’ve la u nc he d a we bsite f or 1 0 / 1 2 I n d ustry Re port . It’s t he o nl y site pr ovi di n g c o m prehe nsive c overa ge of s o ut h L o uisia na i n d ustr y 1 0 0 % of t he ti me. C o nsi der 1 0 1 2i n d ustr yre p ort.c o m y o ur g o-t o s o urce f or tre n ds, ti ps a n d ne ws s peci fic t o i n d ustr y i n L a ke C harles, L afa yette, Bat o n R o u ge, Ne w Orlea ns a n d all p oi nts bet wee n. The site o ffers r o b ust arc hives of c o nte nt a b o ut pr ojects, w or kf orce, o perati o ns a n d mai nte na nce, safet y, e nv oir o n me nt al, tra ns p ort a n d c o n str ucti o n a n d desi g n. Kee p u p wit h pe o ple i n i n d ustr y via o ur Faces of I n d ustr y secti o n a n d rea d a b o ut h o w s o me of t he m ost pr o mi ne nt e xec utives al o n g t he c orri d or are deali n g wit h t heir t o u g hest c halle n ges. Rea ders ca n als o kee p u p wit h t he st at us of a n n o u nce d or pr o p ose d e x pa nsi o ns a n d ne w facilities i n s o ut h L o uisia na usi n g o ur Pr oject Trac ker. Als o la u nc hi n g s o o n: 1 0 / 1 2 I n d us t r y We e kly, a free e- ne wsletter. D o n’t miss a si n gle iss ue —si g n u p n o w b y g oi n g t o 1 0 1 2i n d ustr yre p ort.c o m a n d clic ki n g “ S u bscri be” i n t he t o p ri g ht c or ner of t he h o me pa ge. Let us k n o w w hat y o u t hi n k or h o w we ca n i m pr ove. E mail us at e dit or @ 1 0 1 2i n d ustr yre p ort.c o m. 1 0 1 2i n d u str yr e p ort. c o m

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A ne w way to I T E P The v ote w as welc o me ne ws f or E x x o n M o bil re prese nt atives, w h o str o n gl y s u p p orte d t he c h a n ges i n pri or p u blic he ari n gs. “ E x x o n M o bil c o nti n ues t o e v alu ate a pr oject at its B at o n R o u ge P ol y ole ﬁ ns Pl a nt, a n d we h o p e t o m a ke a decisi o n l ater t his ye ar,” s ai d s p o kes w o m a n Ste p h a nie C ar gile i n a st ate me nt. “ The ne w I T E P r ules bri n g nee de d pre dict a bilit y t o hel p t he pr oject te a m f urt her e v al u ate t his i nvest me nt a n d ot her p ote nti al ‘ Gr o w t he G ulf’ pr ojects t ot ali n g $ 2 0 billi o n.” The ne w r ules are n o w b ei n g re vie we d b y le gisl ative oversi g ht c o m mittees a n d, ass u mi n g n o c h a n ges are m a de, will t a ke e ﬀect o n A u g ust 2 0.

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A T T H E E N D of J u ne t he L o uisia n a B o ar d of C o m merce a n d I n d us tr y a p pr ove d t he st ate’s c h a n ges t o t he I n d ustri al Ta x E xe m pti o n Pr ogra m. The me as ures were s u p p orte d b y b usi ness a n d i n d ustr y as a w a y t o bri n g st a bilit y b ac k t o t he pr o p ert y t a x bre a k pr o gra m t h at w as u p e n de d i n 2 0 1 6. The b o ar d v ote d u n a ni m o usl y i n f av or of t he ne w r ules, w hic h c a p t he i nce ntives f or m a n uf act urers at 8 0 % f or 1 0 ye ars, e n a bli n g l oc al g over nme nts t o c ollect s o me pr o p ert y t a x re ve n ues t heir ﬁrst ye ar i n o p erati o n. The r ules als o st a n d ar di z e I T E P a p plic ati o ns a n d give t he st ate t he a ut h orit y t o e v al u ate a n d c o n diti o n all y a p pr ove e xe m pti o ns, w hile l oc al g over ni n g b o dies still h ave t he ri g ht t o vet o t he m.

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J u st w h e n it l o o k e d li k e m o st of t h e m e g a pr oj e ct s i n t h e C a pit al R e gi o n w er e wi n di n g d o w n, G o v. J o h n B el E d w ar d s a n d S hi nt e c h L o ui si a n a L L C a n n o u n c e d t h e c o m p a n y will i n v e st $ 1. 4 9 billi o n t o d e v el o p a n e w c hl or al k ali a n d vi n yl c hl ori d e m o n o m er pr o d u cti o n f a cilit y a n d t o e x p a n d a n e xi sti n g p ol y vi n yl c hl ori d e m a n uf a ct uri n g f a cilit y i n Pl a q u e mi n e. T h e c o m p a n y i s a w h oll y o w n e d s u b si di ar y of S hi n- Et s u C h e mi c al C o. Lt d., t h e w orl d’ s l ar g e st P V C pr o d u c er. T hr o u g h t h e pr oj e ct, S hi nt e c h will cr e at e 1 2 0 n e w dir e ct j o b s a n d r et ai n 5 0 0 e x i sti n g dir e ct j o b s at t h e W e st B at o n R o u g e a n d I b er vill e p ari s h f a ciliti e s w h er e t h e c o m p a n y h a s o p er at e d si n c e 1 9 9 9. T h e e x p a n si o n i s e x p e ct e d t o g e n er at e u p t o 3, 0 0 0 c o n str u c ti o n j o b s at t h e p e a k of t h e b uil di n g p h a s e. A s gl o b al d e m a n d f or P V C c o nti n u e s t o gr o w, S hi nt e c h i s e x p a n di n g f a ciliti e s t o k e e p p a c e wit h t h e m ar k et, a n d t h e Pl a q u e mi n e c o m pl e x h a s s e e n a s eri e s of i n v e st m e nt s o v er t h e l a st ei g ht y e ar s. [ S e e “ Pr oj e ct b y pr oj e ct ” m a p, p a g e s 6 8- 6 9 .] T h e l at e st e x p a n si o n will i n cl u d e d e v el o p m e nt of a n i nt e gr at e d P V C m a n uf a c t uri n g f a cilit y t h at i s e x p e ct e d t o b e c o m pl et e d i n l at e 2 0 2 0 a n d o p er ati o n al i n e arl y 2 0 2 1. IST O C K

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T H E G R E A T E R B A T O N R O U G E I N D U S T R Y A L LI A N C E, t h e L o ui si a n a C h e mi c al A s s o ci ati o n a n d t h e U. S. D e p art m e nt of L a b or’ s O S H A B at o n R o u g e Ar e a Of fi c e h a v e f or m e d a n e w s af et y alli a n c e. T h e alli a n c e will pr o vi d e G B RI A a n d L C A m e m b er s wit h i nf or m ati o n, g ui d a n c e a n d a c c e s s t o tr ai ni n g r e s o ur c e s t h at will h el p t h e m pr ot e ct t h e h e alt h a n d s af et y of w or ker s, p arti c ul arl y b y r e d u ci n g a n d pr e v e nti n g e x p o s ur e t o a c ci d e nt al r el e a s e s, fir e s a n d e x pl o si o n s wit h a p arti c ul ar e m p h a si s o n c h e mi c al pr o c e s s s af et y a n d O S H A’ s Pr o c e s s S af et y M a n a g e m e nt ( P S M) st a n d ar d. T h e alli a n c e will u s e r el e v a nt i nj ur y, ill n e s s a n d h a z ar d e x p o s ur e d at a w h e n a p pr o pri at e t o h el p i d e ntif y ar e a s of e m p h a si s f or allia n c e a w ar e n e s s, o utr e a c h a n d c o m m u ni c ati o n a cti viti e s. Alli a n c e p arti ci p a nt s will s u m m ari z e s p e ci fi c a cti viti e s a n d ti m efr a m e s f or c o m pl eti o n i n a writt e n w or k pl a n. — St aff r e p ort

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F R O M D E CI SI O N T O H A BI T “ E V E R Y TI M E A w or k er m a k e s t h e d e ci si o n t o u s e P P E, t h er e’ s al w a y s a s m all c h a n c e t h e y c o ul d c h o o s e t o n ot u s e P P E. T h at’ s w h y t h e g o al i s t o tr a n sf or m P P E u s e i nt o a n u n c o n s ci o u s h a bit. It’ s n ot s o m et hi n g t h at h a p p e n s o v er ni g ht. I n m o st c a s e s, b uil di n g s af et y h a bit s r e q uir e s a l ot of s m all c o ur s e c orr e cti o n s a n d e n c o ur a g e m e nt, b ot h of w hi c h c o m e fr o m gr o u p a n d i n di vi d u al c o n v er s ati o n s. E v e nt u all y, t h o u g h, P P E u s e will g o fr o m b ei n g a r ul e t h at m u st b e e nf or c e d t o s o m et hi n g t h at h a p p e n s a ut o m ati c all y. ” — M att h e w H o w ar d, w h o cr e at e s t o ol b o x t al k s f or Pr o T o ol b o x T al k s, a s af et y t al k s u b s cri pti o n s er vi c e f or E H S pr of e s si o n al s. R e a d t h e f ull arti cl e at i n d u str y w e e k. c o m

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W e s e e t h e m ar k et gr o wi n g r a pi dl y, wit h g a s d e m a n d gr o wi n g f a st er t h a n o v er all e n er g y d e m a n d. W e d o n’t s e e r e n e w a bl e s a s b ei n g a t hr e at t o g a s. — S T E V E HI L L, e x e c uti v e vi c e pr e si d e nt f or g a s tr a di n g at S h ell, o n t h e c o m p a n y’ s n at ur al g a s str at e g y

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

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U NI T E D S T A T E S R E G U L A T O R S h a v e a gr e e d t o d e v el o p a m e m or a n d u m of u n d er st a n di n g r e d e fi ni n g a n d r e d u ci n g t h e p er mit a p pli c ati o n r e vi e w pr o c e s s f or pr o p o s e d li q u e fi e d n at ur al g a s f a ciliti e s. T h e U. S. D e p art m e nt of Tr a n s p or t ati o n’ s Pi p eli n e a n d H a z ar d o u s M at eri al s S af et y A d mi ni str ati o n a n d t h e F e d er al E n er g y R e g ul a t or y C o m mi s si o n h a v e j oi n e d f or c e s o n t h e M o U d e v el o p m e nt. T h e M o U will cl arif y e a c h a g e n c y’ s r e s p e cti v e r ol e i n t h e h o p e s of s p e e di n g u p t h e p er mitti n g pr o c e s s. I n a d diti o n, T h e Tr u m p a d mi ni str ati o n i s e x p editi n g t h e a p pr o v al pr o c e s s f or pr oj e ct s t h at ar e m e a nt t o e x p ort s m all a m o u nt s of n at ur al g a s, i n cl u di n g li q u e fi e d n at ur al g a s, T h e Hill r e p ort s. I n a fi n al r e g ul ati o n r el e a s e d t o t h e p u bli c J ul y 2 4, t h e D e p art m e nt of E n er g y s ai d it will a ut o m ati c all y a p pr o v e g a s e x p ort a p pli c ati o n s if t h e y w o ul d b e at or b el o w 5 1. 7 5 billi o n c u bi c f e et of e x p ort s p er y e ar a n d d o n ot ri s e t o t h e l e v el of r e q uiri n g a n e n vir o n m e nt al r e vi e w. “ D O E h a s d et er mi n e d t h at s m all- s c al e n at ur al g a s e x p ort s ar e c o n si st e nt wit h t h e p u bli c i nt er e st, ” t h e a g e n c y s ai d. T h e n e w p oli c y i s virt u all y i d e nti c al t o l e gi sl ati o n pr o p o s e d i n O ct o b er b y L o ui si a n a S e n. Bill C a s si d y a n d S e n. M ar c o R u bi o. — L N G W orl d N e w s, T h e Hill

1 0 1 2i n d u str yr e p ort. c o m

S AS OL GE A RS UP

B U SI N E S S TI C K E R • R oll s - R o y c e h a s r e a c h e d a $ 2 0 milli o n d e al wit h H o u m a s hi p b uil d er T h o m a - S e a M ari n e C o n str u ct or s L L C t o d e v el o p a 3 2 8-f o ot fi s hi n g v e s s el. It’ s t h e fir st R oll s- R o y c e fi s hi n g v e s s el c o n c e pt t o b e b uilt at a U. S. s hi p y ar d. • S e m pr a L N G & Mi d str e a m , a u nit of S e m pr a E n er g y , a n n o u n c e d t h at it s w h oll y o w n e d af fili at e, P ort Art h ur L N G L L C, h a s s el e ct e d B e c ht el a s t h e E P C c o ntr a ct or f or t h e P ort Art h ur li q u ef a cti o n pr oj e ct u n d er d e v el o pm e nt i n J eff er s o n C o u nt y, T e x a s. • Ti d e w at er I n c. a n d G ulf M ar k Off s h or e I n c. h a v e a p pr o v e d a d e fi niti v e a gr e e m e nt t o c o m bi n e t h e t w o c o m p a ni e s. T h e c o m bi n e d c o m p a n y will h a v e t h e l ar g e st fl e et a n d t h e br o a d e st gl o b al o p er ati n g f o ot pri nt i n t h e O S V s e ct or, Ti d e w at er s ai d. • V e nt ur e Gl o b al C al c a si e u P a s s L L C , a s u b si di ar y of V e nt ur e Gl o b al L N G , a n d G al p , a P ort u g u e s e- b a s e d f ull y i nt e gr at e d e n er g y pl a y er, h a v e e nt er e d i nt o a 2 0- y e ar S al e s a n d P ur c h a s e A gr e e m e nt f or t h e s u p pl y of 1 milli o n M T P A fr o m t h e V e nt ur e Gl o b al C al c a si e u P a s s L N G e x p ort f a cilit y. B P h a s al s o si g n e d o n f or 2 milli o n M T P A. • Air Pr o d u ct s h a s c o m pl et e d t h e a cq ui siti o n of t h e c o al g a si fi c ati o n t e c h -

n ol o g y li c e n si n g b u si n e s s fr o m S h ell Gl o b al S ol uti o n s I nt er n ati o n al B. V. , a s u b si di ar y of R o y al D ut c h S h ell, a n d f or m e d a str at e gi c alli a n c e wit h S h ell f or r e si d u e g a si fi c ati o n t e c h n ol o g y t o r e fi n er y c o m pl e x e s. • S p e ci alt y c h e mi c al m a k er Al b e m arl e h a s cl o s e d t h e $ 4 1 6 milli o n s al e of it s p ol y ol e fi n c at al y st s a n d c o m p o n e nt s b u si n e s s t o W. R. Gr a c e & C o. T h e s al e i n cl u d e s a pr o d u ct d e v el o p m e nt c e nt er i n B at o n R o u g e a s w ell a s o p er ati o n s at a S o ut h K or e a sit e. • S h ell Off s h or e a n n o u n c e d t h e e arl y st art of pr o d u cti o n – ar o u n d o n e- y e ar a h e a d of s c h e d ul e – at t h e fir st p h a s e of K ai ki a s, a s u b s e a d e v el o p m e nt i n t h e G ulf of M e xi c o wit h e sti m at e d p e a k pr o d u cti o n of 4 0, 0 0 0 b arr el s of oil e q ui v al e nt p er d a y. • J a c o b s E n gi n e eri n g Gr o u p I n c. h a s r e c ei v e d a c o ntr a ct fr o m M o s ai c F ertili z er L L C t o pr o vi d e s m all c a pit al c o n str u cti o n a n d m ai nt e n a n c e s er vi c e s at it s U n cl e S a m a n d F a u sti n a f a ciliti e s i n St. J a m e s P ari s h. J a c o b s s ai d it will n o w h a v e m or e t h a n 9 5 0 fi el d s er vi c e s e m pl o y e e s w or ki n g i n t h e Mi s si s si p pi Ri v er c orri d or b et w e e n N e w Orl e a n s a n d B at o n R o u g e. — St aff r e p ort s, T h e A d v o c at e

O V E R T H E N E X T s e v er al m o nt h s, S a s ol will b e gi n t e sti n g s y st e m s a n d m ac hi n er y a h e a d of st arti n g u p it s $ 1 1. 1 3 billi o n et h a n e cr a c k er a n d d eri v ati v e s c o m pl e x pr oj e ct i n W e stl a k e, of fi ci al s s ai d. Ki m C u si m a n o, S a s ol’ s g o v er n m e nt a n d p u bli c aff air s m a n a g er, s ai d J ul y 2 3 t h at t h e t e sti n g w a s s et t o st art a n d will i n cl u d e “ s af et y d e vi c e s s u c h a s fl ar e s ” al o n g wit h “ pr o c e s s, utilit y, el e ctri c al a n d i n str u m e nt ati o n s y st e m s. ” A s of J u n e 3 0, C u si m a n o s ai d, t h e pr oj e ct i s 8 8 % c o m pl et e, wit h a c u m ul ati v e c a pit al s p e n di n g of $ 9. 8 5 billi o n. S a s ol pl a n s t o st art u p t hr e e of t h e si x d eri v ati v e u nit s b y t h e e n d of t hi s y e ar a n d st art t h e r e m ai ni n g u nit s b y t h e s e c o n d h alf of 2 0 1 9. S a s ol h a s fill e d 6 2 3 of t h e 7 0 0 p er m a n e nt j o b s a s s o ci at e d wit h t h e n e w c o m pl e x, wit h C al c a si e u P ari s h r e si d e nt s m a ki n g u p 7 2 % of t h o s e hir e s, C u si m a n o s ai d. T h er e ar e al s o 7, 0 0 0 t e m p or ar y c o n str u cti o n w or k er s c urr e ntl y o n sit e.

— A m eri c a n Pr e s s

S HI N T E C H C O N T R A C T O R D U M P S C B &I

CI TI N G A $ 4 3 8 MI L LI O N pr oj e ct l o s s a s of M ar c h 2 0 1 8, J a p a n e s e c o m p a n y T o y o E n gi n e eri n g, t h e g e n er al c o ntr a ct or f or p ol y vi n yl c hl ori d e ( P V C) pr o d u c er S hi nt e c h’ s $ 1. 4 billi o n Pl a q u e mi n e, L o ui si a n a, pl a nt e x p a n si o n, h a s c a n c el e d c o ntr a ct or C B &I’ s t w o r e m ai ni n g ci vil a n d dirt w or k c o ntr a ct s f or t h e pr oj e ct eff e cti v e J u n e 1 4, a c c or di n g t o T h e A d v o c at e . A s a r e s ult, C B &I, w hi c h c o m pl et e d a $ 6 billi o n m er g er wit h M c D er m ott I nt er n ati o n al i n M a y, l ai d off 3 7 0 c o ntr a ct w or k er s wit h o ut n oti c e. C B &I n oti ﬁ e d t h e L o ui si a n a W or kf or c e C o m mi s si o n of t h e l a y off s J u n e 1 9. T o y o s ai d t h at t h e L o ui si a n a S hi nt e c h j o b w a s it s o nl y pr o bl e m pr oj e ct a n d t h at C B &I w a s n ot c a p a bl e of p erf or mi n g a d e q u at el y, T h e A d v o c at e r e p ort e d. A S hi nt e c h of ﬁ ci al t ol d T h e A d v o c at e S hi nt e c h w a s still f ull y c o m mitt e d t o t h e pr oj e ct, o n e t h at t h e c o m p a n y pr e di ct e d w o ul d b e c o m pl et e d b y n o w. T h e pr oj e ct will s e e t h e a d diti o n of a n et h a n e cr a c k er f a cilit y t o S hi nt e c h’ s e xi sti n g P V C a n d vi n yl c hl ori d e m o n o m er ( V C M) pr o d u cti o n f a ciliti e s. — C o n str u cti o n Di v e, st aff r e p ort s

1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

L A U N C H: I C Y MI M A N Y

W HE N Y O U R G O ALI S ZE R O

W O R D S

T h e i n a bilit y t o attr a ct a n d tr ai n n e w t al e nt i s a bi g p art of t h e pr o d u cti vit y pr o bl e m. W e all s a w w h at h a p p e n e d i n L o ui si a n a; it f u n d a m e nt all y c h a n g e d w h at i s a v ail a bl e fr o m a n o p er at or st a n d p oi nt. — A D RI A N B R E G N A R D, S h ell pr oj e ct s a n d t e c h n ol o g y m a n a g er, c o ntr a ct s a n d pr o c ur e m e nt

A T T H E 2 0 1 8 A F P M R eli a bilit y & M ai nt e n a n c e C o nf er e n c e [ l eft], T ur n er I n d u stri e s ki c k e d off t h e P R O J E C T Z E R O c h all e n g e, it s i n d u str y c o m mit m e nt t o h el p it s cli e nt s a c hi e v e z er o i n ci d e nt s, z er o d o w nti m e a n d z er o r el e a s e s u si n g T ur n er’ s pr o pri et ar y M o bil O p s ™ t e c h n ol o g y. T ur n er’ s a c q ui siti o n of I n d u stri al M o bilit y ( n o w M o bil O p s ™) i n 2 0 1 1 br o u g ht wit h it b ot h a t e a m a n d t e c h n ol o g y- dri v e n s ol uti o n s t o u s e i n- h o u s e a n d at cli e nt sit e s. T h e M o bil O p s s oft w ar e s ol uti o n i s c o m pri s e d of a d o z e n m o d ul e s d e si g n e d t o m a n a g e t hi n g s li k e St a n d ar d O p er ati n g ( a n d ot h er) Pr o c e d ur e s, S af e O p er ati n g C o n diti o n s, R o u n d s a n d R e a d i n g s, a n d ot h er c h e c kli st s f or i n d u stri al f a ciliti e s. “It i s r o b u st, e a s y t o u s e, a n d g e n er at e s t h e i n f or m ati o n n e e d e d t o m a k e d at a- dri v e n d e ci si o n s t o i m pr o v e ef fi ci e n ci e s a n d r e d u c e c o st s. T h e P R O J E C T Z E R O c h all e n g e i s t h e c ul mi n ati o n of T ur n er’ s eff ort s u si n g t e c h n ol o g y- dri v e n s ol uti o n s t o a c hi e v e r eli a bilit y e x c ell e n c e, af fir mi n g T ur n er’ s c o n fi d e n c e t h at z er o i n ci d e nt s, z er o d o w nti m e a n d z er o r el e a s e s ar e a c hi e v a bl e, ” t h e c o m p a n y s ai d i n a r el e a s e. F or m or e i nf or m ati o n, e m ail p pl a u c h e @t ur n er-i n d u stri e s. c o m.

C O U RTE S Y T U R NE R

I N S O

— St aff r e p ort

T O W H O M A R E Y O U S E L LI N G … A N D W H AT S T AT E A R E T H E Y I N ? T H E E Q UI P M E N T D E A L E R S A S S O CI A TI O N a n d H B K C P A s & C o n s ult a nt s h a v e e x pr e s s e d c o n c er n a b o ut t h e u ni nt e n d e d c o n s e q u e n c e s a n d p ot e nti al i m pli c ati o n s t h e S u pr e m e C o urt c a s e S o ut h D a k ot a v. W a yf air m a y h a v e o n e q ui p m e nt d e al er s t hr o u g h o ut t h e U nit e d St at e s. T h e d e ci si o n, o v ert ur ni n g 1 9 9 2 pr e c e d e nt, m e a n s t h at S o ut h D a k ot a c a n n o w c oll e ct s al e s t a x fr o m b u si n e s s e s o p er ati n g o ut si d e of t h e st at e. Alt h o u g h t h e o ut c o m e w a s fr a m e d a s a d e ci si o n t h at i m p a ct s o nli n e r et ail er s o nl y, R e x C olli n s, a pri n ci p al wit h H B K, ur g e d e q ui p m e nt d e al er s i n a J u n e 2 2 e m ail t o “ b e a w ar e, a s t hi s r uli n g h a s p ot e nti all y d e v a st ati n g c o n s e q u e n c e s f or t h eir b u si n e s s e s, s u c h a s: • It i s v er y r e a s o n a bl e t o a s s u m e t h at ot h er st at e s, e s p e ci all y t h o s e wit h si mil ar e c o n o mi c n e x u s st at ut e s a s S o ut h D a k ot a, will p a s s si mil ar bill s.

• E c o n o mi c n e x u s li mit s (t y pi c all y $ 1 0 0, 0 0 0$ 2 5 0, 0 0 0) ar e e a sil y m et b y d e al er s. • C o st of c o m pli a n c e c o ul d b e e xt e n si v e. D e al er s will li k el y n e e d t o hir e p er s o n n el or o ut si d e ﬁr m s t o h a n dl e st at e a n d l o c al s al e s a n d i n c o m e t a x ﬁli n g s. • A d diti o n al c o st s m a y i n cl u d e r e gi str ati o n s a n d li c e n s e s t o d o b u si n e s s i n v ari o u s st at e s a n d t h eir a n n u al r e n e w al s. • P o s si bilit y of p a yi n g i n c o m e t a x i n a st at e w h er e y o ur b u si n e s s d o e s n ot o p er at e a st or e b ut s ol d a pi e c e of e q ui p m e nt. ” Wit h t h e J u n e 2 1 S C O T U S d e ci si o n, t h e E D A s ai d, t a x n e x u s i s n o l o n g er s ol el y b a s e d o n t h e o v err ul e d Q uill p h y si c al pr e s e n c e st a n d ar d of 1 9 9 2. O ut- of- st at e s ell er s t h at m e et mi ni m u m st a n d ar d s m a y b e r e q uir e d t o c h ar g e, c oll e ct a n d r e mit s al e s t a x, a n d m a y e v e n b e r e q uir e d t o p a y i n c o m e t a x e s. — St aff r e p ort

S T. G A B RI E L I N D U S T RI A L S U P P LI E R I S H E A T E X C H A N G E R E P AI R a n d f a bri c ati o n c o m p a n y G E O H e at E x c h a n g er s i s e x p e cti n g 2 0 1 8 t o b e t h e h ott e st s al e s y e ar i n it s 2 1- y e ar hi st or y. T h e St. G a bri el- b a s e d c o m p a n y a nti ci p at e s a 2 0 % i n cr e a s e i n s al e s t hi s y e ar, c o m p ar e d t o 2 0 1 7, aft er l a n di n g s e v er al pr oj e ct s f or m aj or c o m p a ni e s li k e S h ell, W e stl a k e C h e mi c al, R u bi c o n a n d E x x o n M o bil. R e v e n u e s f or 2 0 1 7 st o o d at o v er $ 2 6. 4 milli o n. A nti ci p ati n g p etr o c h e mi c al m ar k et gr o wt h i n t h e B at o n R o u g e r e gi o n, G E O c o m pl et e d a m aj or pl a nt e x p a n si o n i n 2 0 1 6 t h at e x p a n d e d it s f a bri c ati o n 14

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

f a cilit y b y 2 3, 0 0 0 s q u ar e f e et, n e arl y d o u bli n g t h e s p a c e. T o h a n dl e t h e hi g h er d e m a n d, t h e c o m p a n y i s c o n d u cti n g a f e a si bilit y st u d y a s it c o n si d er s a d di n g a n ot h er s h o p l o c ati o n. At t h e s a m e ti m e, it i s w or ki n g t o b e pr o a cti v e a b o ut hiri n g s kill e d cr aft s m e n, s u c h a s w el d er s a n d m a c hi ni st s, s a y s C O O a n d Pl a nt M a n a g er G e n e O h m st e d e III. T h e c o m p a n y, f o u n d e d i n 1 9 9 7, i s al s o i n v ol v e d i n ot h er pr oj e ct s f or G ulf C o a st a n d T e x a s pl a nt s, s a y s O h m st e d e, w h o e x p e ct s a n e v e n str o n g er y e ar f or t h e c o m p a n y i n 2 0 1 9.

I N S O

M A N Y

W O R D S

F or t w o y e ar s, t h e s e st u d e nt s h a v e w or k e d l o n g h o ur s at t h eir c urr e nt j o b s, a n d t h e n att e n d e d ni g ht cl a s s e s at o ur tr ai ni n g c e nt er t o b ett er t h e m s el v e s. T h eir p a s si o n a n d d e di c ati o n f or t h eir cr aft i s i n s piri n g, a n d w e co m mend the m f or cli m bi n g t h e l a d d er of s u c c e s s. — D A VI D H E L V E S T O N, pr e si d e nt a n d C E O of t h e P eli c a n C h a pt er of t h e A s s o ci at e d B uil d er s a n d C o ntr a ct or s, w hi c h h o n or e d 1 7 8 gr a d u at e s of it s cr aft tr ai ni n g pr o gr a m s i n B at o n R o u g e J u n e 2 1.

— d ail y-r e p ort. c o m

1 0 1 2i n d u str yr e p ort. c o m

The Methanex 2 plant in Ascension Parish

DATA SHARING IN THE GULF

COURTESY METHANEX

OFFSHORE OIL AND GAS industry participation in a critical data sharing program called Safe OCS has grown by nearly 20 times, the head of the U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement announced July 16. “We inherited a program with a 3% participation rate and have increased that to 59%, but we are not stopping there,” said BSEE Director Scott Angelle in a written statement. “The ultimate goal of this program is to identify proactive steps to mitigate risks and ensure offshore operations are safe, reliable and environmentally sustainable.” According to BSEE, SafeOCS is a confidential reporting system designed to help oil and gas operators on the outer continental shelf (OCS) capture and share essential information industrywide about accident precursors and potential hazards. On July 13, BSEE released its 2017 annual report Blowout Prevention System Safety. Major findings include:

METHANEX EYES ASCENSION EXPANSION

• In the first full year of Well Control Rule reporting, 2017, 18 of 25 operators linked to Gulf rig operations reported a total of 1,129 equipment failure events. These events occurred on 45 of the 59 rigs operating in the Gulf during the period. • Adjusted for rig activity (events per 1,000 blowout preventer (BOP) days), the event reporting rate fell from 122.3 in 2016 to 59.8 in 2017. • Out of 1,044 subsea events in 2017, one reported loss of drilling fluid during in-operation rig activity. No loss of containment occurred in surface BOP stack events.

METHANEX HAS BOUGHT land beside its Ascension Parish facility and has signaled it will greenlight a major methanol plant expansion there before a competing plan to twin its Medicine Hat plant in Alberta, Canada. CEO John Floren made the announcement in April while presenting the company’s first-quarter earnings on a conference call with investors. He also said Methanex’s application for a raft of tax exemptions to Louisiana Economic Development had been accepted. KBR Inc. has been awarded a reimbursable engineering, procurement and construction management contract for the front end engineering design (FEED) services for the facility, which KBR describes as a “5,000 MTPD world-scale methanol plant.” Under the terms of the contract, KBR will work closely with Methanex to provide FEED services for Geismar 3 at the Ascension site. The FEED work, which will be executed from KBR’s Houston Operations Center, is expected to be completed over the next 12 months with final investment decision expected by mid-2019. Methanex has had two methanol plants operating at its Geismar site since 2015.

—Rigzone

—Medicine Hat News, staff reports

NUMBERS MOSS BLUFF

Land rezoned for megasite

WESTLAKE

SULPHUR

TEXAS

VINTON

LAKE CHARLES

210

CARLYSS

108

CALCASIEU APPROVES ZONING FOR MEGASITE AFTER MORE THAN an hour of debate, the Calcasieu Parish Police Jury voted unanimously to rezone more than 12,000 acres east of Vinton to allow for a megasite that could house various light industrial development. The rezoning decision was made despite nearby residents speaking out against the megasite, saying it would affect their quality of life and hurt those who use the land mainly for agriculture. The decision to rezone the property from agricultural, general commercial and unzoned to light industrial and central business commercial upheld a 6-2 vote by the parish zoning board. Mark McMurry, a member of the project’s development team, said a megasite will help the parish compete for major development, including an automotive assembly plant or a company’s distribution center. The site has access to Interstate 10, U.S. 90, La. 108 and a Union Pacific railroad.

Consecutive years Lake Charles has been named Small Market of the Year in the South by Southern Business & Development magazine. Baton Rouge earned honorable mention recognition as Major Market of the Year and Louisiana was No. 2 among states for 2017.

—American Press

1012industryreport.com

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A NE W B REE D OF R E S T O R A TI O N S O L U TI O N S T h e n e w T err e b o n n e Bi o di v er sit y a n d R e sili e n c y Pr oj e ct s at P oi nt e- a u x- C h e n e s a n d B a y o u T err e b o n n e i n c o a st al L o ui si a n a f e at ur e a s m all er s c al e, i n n o v ati o n, p art n er s hi p s a n d a n e w br e e d of c o a st al r e st or ati o n s ol uti o n s. T h e t w o pr oj e ct s r e pr e s e nt a pri v at es e ct or i n v e st m e nt of $ 3. 4 milli o n a n d, o n c e c o m pl et e d, will r e st or e 1 2 5 a cr e s of w etl a n d s wit h a p er y e ar e c o n o mi c v al u e of $ 1. 2 milli o n a n d ot h er a n n u al b e n e ﬁt s, i n cl u di n g 2 8 0 t o n s of c ar b o n s e q u e st er e d, t h e eli mi n ati o n of u p t o 2 6 6 p o u n d s of p h o s p h or u s a n d 1 0, 6 0 0 p o u n d s of nitr o g e n t o i m pr o v e w at er q u alit y i n l o w er T err e b o n n e P ari s h.

T HE PA RT NE RS A m eri c a’ s W E T L A N D F o u n d ati o n i s p art n eri n g wit h gl o b al e n er g y pr o d u c er B H P a n d H o u st o n- b a s e d R e s o ur c e E n vir o n m e nt al S ol uti o n s a s pri v at e s p o n s or s o n t h e n e w a p pr o a c h, f oll o wi n g s u c c e s sf ul c o m pl eti o n of s h or eli n e r e st or ati o n eff ort s i n L af o ur c h e P ari s h al o n g t h e G ulf I ntr a c o a st al W at er w a y. B H P s u p p ort s it s c o m m u niti e s of o p er ati o n s b y c o ntri b uti n g t o e n h a n c e d bi o di v er sit y, A W F n ot e s, w hil e R E S p arti ci p at e d i n t h e GI W W pr oj e ct a n d e arli er pr oj e ct s i n t h e P oi nt e- a u x- C h e n e s ar e a. T h e f o u n d ati o n’ s r e s e ar c h a n d p olli n g m a k e a c a s e f or pri v at es e ct or i n v ol v e m e nt i n r e st or ati o n, n oti n g t h e dif ﬁ c ult c h all e n g e of r ai si n g p u bli c d oll ar s al o n e t o m e et t h e r e st or ati o n n e e d s.

W H A T T H E Y’ R E S A YI N G “ Wit h a n y of o ur s o ci al i n v e st m e nt s, o ur m ai n g o al i s t o l o o k f or l o n g-t er m o p p ort u niti e s a n d p art n er s hi p s t h at all o w f or r e al c h a n g e, ” s ai d B H P’ s g e n er al m a n a g er, G ulf of M e xi c o, Kri st e n R a y. “I gr e w u p i n L o ui si a n a, a n d t h e pr e s er v ati o n of o ur n at ur al e n vir o n m e nt h a s al w a y s b e e n t o p of mi n d f or t h e c o m m u niti e s t h er e. I’ m h e art e n e d b y t h e f a ct t h at bi o di v er sit y a n d e c o s y st e m s f or f ut ur e g e n er ati o n s i s p ar a m o u nt i n t h e w a y B H P t hi n k s a b o ut t h e e n vir o n m e nt a n d s u st ai n a bilit y. O ur i n v ol v e m e nt i n t hi s pr o gr a m i s r e all y a t ar g et e d w a y f or o ur c o m p a n y t o cr e at e v al u e f or o ur c o m m u niti e s i n L o ui si a n a. ” A d d e d T err e b o n n e P ari s h Pr e si d e nt G or d o n D o v e: “ T h e s e pr oj e ct s ar e a si g n al t h at w e will st a n d o ur gr o u n d a n d b uil d it b a c k, o n e pr oj e ct at a ti m e. ”

B RI N GI N G B A C K T H E C Y P R E S S T h e a n n o u n c e d pr oj e ct s sit at t h e c or e of A W F’ s n e w dir e cti o n t o i ntr o d u c e tr a n siti o n al pr oj e ct s, s m all er i n s c al e b ut v al u a bl e t o w etl a n d s i n d a n g er of b ei n g l o st a n d criti c al t o t h e o v er all s u c c e s s of t h e st at e’ s c o a st al m a st er pl a n. T h e n e w pr oj e ct s b uil d o n p a st w or k i n t h e P oi nt e- a u x- C h e n e s ar e a, u si n g e n h a n c e d t e c h ni q u e s t o pr e v e nt n utri a d a m a g e a n d t o pr e s er v e t h e g e n eti c i nt e grit y of t h e v e g et ati v e pl a nt m at eri al s. Pl a c e m e nt of c y pr e s s o n t o p of t h e n e wl y c o n str u ct e d t err a c e s at t h e B a y o u T err e b o n n e Pr oj e ct, a s s e e n h er e i n a n arti st’ s r e n d eri n g of t h e c o m pl et e d pr oj e ct, will mi mi c t h e c y pr e s s ri d g e s t h at w er e o n c e pr e s e nt o n t h e sit e. “ W e’ll r e e n er gi z e t hi s ar e a b y pl a nti n g m or e t h a n 3 5, 0 0 0 b al d c y pr e s s tr e e s al o n g wit h 3 5, 0 0 0 c o a st al m ar s h gr a s s e s, all l o c all y gr o w n at o ur P oi nt e- a u x- C h e n e s n ur s er y, ” s ai d R E S pr e si d e nt & C E O a n d L o ui si a n a n ati v e Elli ott B o uilli o n.

A M E RI C A’ S W E T L A N D F O U N D A TI O N

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1 10/0/1 12 2 I IN ND DU US ST TR RY Y R RE EP PO OR RT T •• TTHIHIRRDD QQUUAARRTTEERR 22001188

L A U N C H: I N T E L LI G E N C E

M e g a p r oj e ct s: L e s s o n s l e a r n e d

B Y S A M B A R N ES

t he y l ate, b ut 9 8 % are over b u d get, a n d over b y a l ot.” Ty pic all y, me g a pr ojects are l ar ge-sc ale, c o m ple x ve nt ures t h at c ost m ore t h a n $ 1 billi o n a n d t a ke se veral ye ars t o de vel o p a n d b uil d. A n e ntire tract at t he t w o- d a y c o nfere nce w as de v ote d t o a n al y zi n g v ari o us s ol uti o ns t o t he pr o ble ms f aci n g me g a pr ojects —i n pl a n ni n g, e xec uti o n a n d t ur n over. The e ve nt w as atte n de d b y 1, 5 0 0 c a pit al pr oject, t ur n ar o u n d a n d m ai nte n a nce pr ofessi o n als. Here are s o me t a ke a w a ys.

SA M BAR NES

eit h Ac kle y of Jac o bs E n gi neeri n g g ave atte n dees at t he rece nt D o w nstre a m C o nfere nce & E x hi biti o n i n Galvest o n a p ai nf ul g ut c hec k c o ncer ni n g i n d ustri al me g a pr ojects. The vice presi de nt a n d ge neral m a n a ger i n Jac o bs’ H o ust o n o ﬃce n ote d t h at acc or di n g t o Mc Ki nse y & C o., a Ne w Yor k m a n a ge me nt c o ns ulti n g ﬁr m, 7 7 % of me g a pr ojects w orl d wi de are m ore t h a n 4 0 % l ate. “ Th at’s a j a w- dr o p pi n g st atistic,” he s ai d. “ N ot o nl y are

IST O C K

A D D R E S S W O R KF O R C EI S S U E S

A N ALYZE P R O CESSES T h er e n e e d s t o b e a n e m p h a si s o n a “ s m art er ” m a n- h o ur r at h er t h a n a c h e a p er m a nh o ur, A c kl e y s a y s. A s s u c h, t e a m s s h o ul d b e m or e t a cti c al i n t h eir w or k pr o c e s s e s, w h et h er i n d e si g n or c o n str u cti o n. A n al y zi n g s u p pli er p erf or m a n c e i s e q u all y i m p ort a nt. Al o n g t h e w a y, a s k t h e f oll o wi n g q u e sti o n s: H o w f a st d o e s a p arti c ul ar s u p pli er d eli v er ? D o t h e y m e et pr o mi s e d c o st s ? D o t h e y d eli v er o n ti m e ? D o t h e y d eli v er t h e ri g ht q u alit y ?

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

A c kl e y ( a b o v e) s a y s o w n er s a n d c o ntr a ct or s s h o ul d t a c kl e gl ari n g g a p s i n t h eir of fi c e a n d fi el d w or kf or c e s. “ W e n e e d t o a c k n o wl e d g e t h at o ur w or kf or c e t o d a y i s m or e tr a n si e nt t h a n it w a s i n t h e p a st, ” h e s a y s. “ H o w d o e s t h at i m p a ct o ur a bilit y t o tr ai n ? D o w e n e e d t o st art t hi n ki n g a b o ut t h e i n d u str y tr ai ni n g t h e s e w or k er s a s o p p o s e d t o i n di vi d u al c o m p a ni e s ? T h at i s a n i s s u e t h at i s dif fi c ult f or u s t o a d dr e s s a s a n i n di vi d u al c o m p a n y. ” Di v er sit y i s al s o i m p ort a nt. “I t hi n k it’ s a n i m pr o v e m e nt t h at w e’ v e s e e n fr o m 1 0 y e ar s a g o, b ut t h er e’ s a l o n g w a y t o g o i n t hi s i n d u str y i n t er m s of c a pt uri n g t h e b e st a n d bri g ht e st. ”

1 0 1 2i n d u str yr e p ort. c o m

U TI LI Z E M O D U L A RI Z A TI O N & S T A N D A R DI Z A TI O N

T h e pr o c e s s of i n c or p or ati n g l e s s o n s l e ar n e d s h o ul d b e a ut o m at e d a n d s p e ci ﬁ c. “ W e ar e o v er w h el m e d wit h i nf or m ati o n, ” A c kl e y s a y s. “ T h e tri c k i s, h o w d o w e g et t h at i nf or m ati o n di s s e mi n at e d t o o ur t e a m s s o t h at t h e y c a n u s e it i n a n eff e cti v e m a n n er ? J a c o b s i s s p e n di n g a t o n of m o n e y a n d e n er g y i n t hi s i niti ati v e. W e t hi n k t h at i s f ertil e gr o u n d f or u s t o gr o w a n d b e s m art er a b o ut h o w w e s er v e o ur c u st o m er s. ” U si n g all a v ail a bl e t o ol s t o a n al y z e d at a a n d pr o vi d e i n si g ht i s criti c al. “ W e h a v e t er a b yt e s of d at a o ut t h er e, ” h e a d d s. “ N e xt-l e v el t hi n ki n g i n v ol v e s a n al y zi n g t h at d at a a n d pr o vi di n g i n si g ht i nt o t h e b e st d e ci si o n gi v e n t h e sit u ati o n. ” U nf ort u n at el y, t h e c o n str u cti o n i n d u str y i s still i n t h e St o n e A g e a s f ar a s t e c h n ol o g y g o e s. “ W e’ v e g ot t o c h a n g e t h e e q u a ti o n, tr ai n o ur p e o pl e o n h o w t o u s e it, a n d pr o vi d e t h e m wit h f ull y di g e st e d i nf or m ati o n s o t h at t h e y c a n u s e it ef ﬁ ci e ntl y. ”

M o d ul ari z ati o n i s b e c o mi n g a gl o b al i s s u e, si n c e m u c h of it i s p erf or m e d o v er s e a s. A s s u c h, c o ntr a ct or s s h o ul d cl o s el y e x a m i n e st a n d ar d s a n d s p e ci ﬁ c ati o n s. A c kl e y: “ A n i nt er e sti n g c o n c e pt w e’r e s e ei n g i n t h e L N G m ar k et i s b uil di n g bi g g er t o g et t h e e c o n o mi e s of s c al e v er s u s ‘ e c o n o mi e s of r e pli c ati o n.’ S h o ul d w e b uil d s m all er i n m ulti pl e tr ai n s ? I t hi n k t h er e’ s diff eri n g o pi ni o n s t h er e, b ut I t hi n k t h er e’ s f ertil e gr o u n d f or t h at, b uil di n g r eli a bilit y t hr o u g h r e p e at a bilit y. ”

SA M BAR NES

C O UR TE

SY JA C O BS

F U L L Y U TI LI Z E TE C H N OL O GY & DI GI T A LI Z A TI O N

I M P L E M E N T T R A N S F O R M A TI V E C H A N G E

Dri v e i n n o v ati o n. “ W e m u st m a k e i n n o v ati o n p art of o ur d a y-t o- d a y c ult ur e. I n n o v ati o n i s f o u n d ati o n al t o a t e c h n ol o g y c o m p a n y s u c h a s E x x o n M o bil. It’ s i n n o v ati o n t h at off er s u s t h e b e st p ot e nti al t o di sr u pt t h e w a y w e w or k, cr e ati n g l o n gt er m v al u e i n t h e pr o c e s s. ” U nf ort u n at el y, c o m p a ni e s i n t h e i n d u stri al s p a c e h a v e m a d e littl e pr o gr e s s i n t h e r e al m of t e c h n ol o g y, p arti c ul arl y wit h r e s p e ct t o a ut o m ati o n a n d di git al t e c h n ol o g y. 1 0 1 2i n d u str yr e p ort. c o m

E x c el i n e x e c uti o n. “ W e h a v e t o d e m a n d e x c e pti o n al pr oj e ct e x e c uti o n, ” A uti n s a y s. “ W e n e e d e v er y t e a m t o b e t h e ‘ A T e a m.’ W e’ v e g ot t o d o t h at b y m a ki n g tr ai ni n g, e x p eri e n c e s a n d r e s o ur c e s a v ail a bl e. ” Tr a n sf or m l e a d er s hi p. T h e w or k pl a c e of t h e f ut ur e will r e q uir e a c ult ur e of e m p o w er m e nt, a n d m a n a g e m e nt st yl e s will n e e d t o e v ol v e a s a r e s ult. “ W e m u st pr o vi d e tr a n sf or m ati o n al l e a d er s hi p. W e h a v e t o e n c o ur a g e ot h er s t o l o o k a h e a d a n d t o s e e k br e a kt hr o u g h s, r at h er t h a n al w a y s r el yi n g o n t h e st at u s q u o. ” Eli mi n at e sil o s. O w n er s s h o ul d d e v el o p a n d n urt ur e a o n e-t e a m c oll a b or ati v e a p pr o a c h. Eli mi n at e sil o s wit hi n or g a ni z ati o n s.

SA M BAR NES

D e ci e A uti n ( a b o v e), vi c e pr e si d e nt of pr oj e ct m a n a g e m e nt a n d e x e c uti o n at E x x o n M o bil i n B at o n R o u g e, s u g g e st s t h at c o m p a ni e s n e e d tr a n sf or m ati v e c h a n g e a cr o s s all s e ct or s t o b e s u c c e s sf ul o n l ar g e c a pit al pr oj e ct s. S h e o utli n e s a f o ur- st e p pr o c e s s:

C R E A T E A D E FI NI TI V E L E S S O N S- L E A R N E D P R O C E S S C arl o s C a m er a ( a b o v e), s e ni or a d vi s or m aj or c a pit al pr oj e ct s at C h e vr o n i n H o u st o n, s a y s t h e v al u e fr o m l e s s o n s l e ar n e d c o ul d e a sil y b e l o st if t h e y ar e n ot pr o p erl y v ett e d a n d di s s e mi n at e d. A s s u c h, o w n er s s h o ul d f ull y utili z e t h e t o ol s a n d s y st e m s a v ail a bl e i n t h e or g a ni z ati o n t o d e ﬁ n e, pr o c e s s a n d r e m e m b er l e s s o n s l e ar n e d — a n d g et u p p er m a n a g e m e nt i n v ol v e d i n t h e pr o c e s s. C o m m u ni c a ti o n s h o ul d b e pr e ci s e at b ot h t h e pr oj e ct a n d or g a ni z ati o n al l e v el. “ A v oi d b ei n g v a g u e, ” h e a d d s. “ D o c u m e nt t h e l e s s o n s l e ar n e d, d e ﬁ n e a n a cti o n a n d s a v e it. Y o u w a nt t o m a k e s ur e y o u h a v e a n i m p a ct. ” A s s u c h, it’ s i m p ort a nt t o d e v el o p a r e ali sti c c o m m u ni c ati o n a n d s h ari n g pl a n. At a mi ni m u m, l e s s o n s-l e ar n e d c o mm u ni c ati o n s h o ul d i d e ntif y t h e r e s ult, p o siti v e or n e g ati v e; t h e i m p a ct (i. e., ti m e, c o st, q u alit y et c.); a n d a cti o n g oi n g f or w ar d. 1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

G E O T E C H NI C A L | C O N S T R U C TI O N M A T E RI A L S T E S TI N G

Q U A LI T Y

VAL UE

I N N O V A TI V E S O L U TI O N S

W W W. S O E A R T H. C O M • 20

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

2 2 5. 7 5 1. 1 7 2 7 1 0 1 2i n d u str yr e p ort. c o m

L A U N C H: E X E C U TI V E P R O FI L E

E x e c uti v e Pr o ﬁl e: M ar k D e ar m a n

ar k Dear ma n lea ds R u bic o n, a j oi nt ve nt ure of H u nts ma n a n d L a n xess. H u nts ma n is t he maj orit y o w ner of t he R u bic o n assets, he nce Dear ma n’s d ual r ole. R u bic o n’s Geis m ar f acilit y is a le a di n g m a n uf act urer of p ol y uret h a ne c he micals, w hic h g o i nt o e ver yt hi n g fr o m c o m p osite w o o d pr o d ucts t o s pra y f o a m i ns ul ati o n t o c ar se ats. He’s bee n wit h t he c o m p a n y f or al m ost 3 0 ye ars, a n d he’s s o met hi n g of a rarit y i n t he Asce nsi o n Paris h c he mical sect or: a h o met o w n b o y m a n a gi n g a m aj or pl a nt.

NA ME

M ar k D e ar m a n P O SI TI O N

S e ni o r O p e r ati o n s Di r e ct o r, H u nt s m a n P ol y u r et h a n e s A m e ri c a s a n d G e n e r al M a n a g e r, R u bi c o n L L C A GE

H O MET O W N

G o n z al e s

E D U C A TI O N

E a st A s c e n si o n Hi g h S c h o ol and LS U

— D a vi d J a c o b s

M y d a d w or ke d i n t he fertili z er i n d ustr y i n D o n al ds o nville. B ac k t he n, i n t he e arl y’ 7 0s, y o u c o ul d act u all y t a ke y o ur ki d t o t he pl a nt. Yo u c o ul d n’t get p ast t he fr o nt g ate t o d a y wit h a n y b o d y u n der 1 8. I m a de u p m y mi n d i n 9t h or 1 0t h gra de t o b e a c he mic al e n gi neer.

H o w d o y o u st art y o ur d a y ?

I’ m u p at 4 o’cl oc k e ver y m or ni n g. I h ave a gl o b al r ole, s o I’ m c o m m unic ati n g wit h pe o ple i n E ur o p e a n d Asi a. The y’ve bee n u p f or a l o n g ti me, s o I c hec k m y e m ails a n d get a feel f or w het her t here’s s o met hi n g t h at I nee d t o be a w are of i n a n ot her p art of t he w orl d. Bef ore I e ve n le ave t o g o t o t he g y m i n t he m or ni n g, I h ave a gras p of w h at we nt o n t he ni g ht bef ore.

H o w i m p ort a nt i s m or ni n g e x er ci s e f or y o u ?

Wor ki n g o ut p uts y o u i n a n e xcelle nt fra me of mi n d t o t ac kle t he d a y. Yo u’ve g ot t he bl o o d ﬂ o wi n g, a n d y o u’re re a d y t o t ac kle y o ur w or k d a y i n a ver y p ositive li g ht.

W h at i s y o ur gr e at e st pr of e s si o n al a c c o m pli s h m e nt ?

W h at I’ m m ost pr o u d of is h avi n g t he o p p ort u nit y t o e ar n t his r ole

1 0 1 2i n d u str yr e p ort. c o m

t h at I’ m i n t o d a y. B ei n g a site le a der of 7 5 0 p e o ple f or a $ 2 billi o n site is a tre me n d o us a m o u nt of res p o nsi bilit y, b ut y o u t a ke a l ot of pri de i n c a pt ai ni n g t he s hi p. W h at i s t h e k e y t o s u c c e s sf ul l e a d er s hi p ?

Yo u’re i n t he p e o ple b usi ness. Yo u’re n o l o n ger d oi n g e n gi neeri n g or orc hestrati n g a pr oject. Yo ur b usi ness is tr yi n g t o get p e o ple t o d o t heir b est, w hile f oc usi n g o n t he t hi n gs t h at y o u’re u ni q uel y q u ali ﬁe d a n d e m p o were d t o d o. Yo u as k y o urself: Di d I c o nt act e n o u g h p e o ple t o d a y? Di d I g o a n d visit wit h e n o u g h p e o ple t o d a y? Di d I liste n t o e n o u g h p e o ple t o d a y? Was I see n e n o u g h o ut i n t he pl a nt t od a y? I n a n y le a ders hi p r ole, y o u h ave t he a bilit y t o m a ke p e o ple feel g o o d a b o ut w h at t he y’re d oi n g, w hic h ulti m atel y le a ds t o t he m d oi n g a n e ve n b etter j o b.

H o w d o y o u attr a ct a n d r et ai n g o o d e m pl o y e e s ?

F or us, it all c o mes d o w n t o t he c ult ure of y o ur or g a ni z ati o n. Yo u cre ate a n e nvir o n me nt w here y o u all o w p e o ple t o b e t he b est t h at t he y c a n b e, w here p e o ple are e nc o ura ge d t o c o m m u nic ate a n d get i nv olve d, a n d y o u d o n’t h ave a ri gi d hierar c h y w here y o u h ave t o g o t hr o u g h

D O N K A D AI R

W h at s p ar k e d y o ur i nt er e st i n t h e c h e mi c al i n d u str y ?

ei g ht l a yers of m a n a ge me nt t o t al k t o s o me b o d y. I n o ur or g a ni z ati o n, e ver y b o d y’s o n a ﬁrst- n a me b asis a n d t he d o or is al w a ys o p e n. Will l o w n at ur al g a s pri c e s c o nti n u e t o gi v e A m eri c a n pl a nt s a c o m p etiti v e a d v a nt a g e ?

O ver t he p ast fe w ye ars i n E ur o pe a n d Asi a, t he c ost of m a n uf act uri n g h as c o me d o w n, s o we’re n ot sitti n g here wit h t his h u ge a dv a nt a ge. We d o h ave a n a dv a nt a ge, b ut t he y’re c atc hi n g u p.

W h at ar e s o m e ot h er i n d u str y tr e n d s w ort h w at c hi n g ?

At a pl a nt m y si z e, we’re retiri n g 1 5 t o 2 0 p e o ple a ye ar. We h ave t o d o a b etter j o b of trai ni n g ne w w or k -

ers o n t he fr o nt e n d, accelerati n g t heir k n o wle d ge t hr o u g h o ut t heir ﬁrst c o u ple ye ars, a n d a u g me nti n g w here we c a n wit h e x perie nce. De vel o pi n g fr o ntli ne le a ders hi p is a n are a I’ m e xtre mel y p assi o n ate a b o ut. It’s a c h alle n ge t o bec o me a tr ue le a der, a n d n ot j ust o ne of t he p ac k. The m ost i n ﬂ ue nti al pers o n t o a n y b o d y is t h at pers o n’s direct s u per vis or. W h at ar e y o u p a s si o n at e a b o ut o ut si d e of w or k ?

I’ m o n t he b oar d of direct ors f or St. Eli z a bet h H os pit al, t he Asce nsi o n C ha m ber of C o m merce a n d t he L o u isia na C he mical Ass ociati o n. Ot her t ha n t hat, I li ke t o s pe n d g o o d q ualit y ti me wit h fa mil y a n d frie n ds a n d d o a little travel t o e x pl ore ne w places.

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L A U N C H:

N E T W O R KI N G

Aft e r H o ur s

I n d u str y e v e nt s a cr o s s t h e c orri d or L o ui si a n a E n er g y S u m mit

L a ur a F err ell of C h e ni er e wit h g u e st, L M O G A G e n er al C o u n s el Tyl er Gr a y a n d L o ui si a n a C h e mi c al A s s o ci ati o n Pr e si d e nt Gr e g B o w s er

T h e L o ui si a n a Mi d- C o nti n e nt Oil a n d G a s A s s o ci ati o n i n J u n e h o st e d t h e L o ui si a n a E n er g y S u m mit at t h e G ol d e n N u g g et H ot el & C a si n o i n L a k e C h arl e s. T h e t o pi c: “ Oil & N at ur al G a s i s P o w eri n g S o ut h w e st L o ui si a n a. ” S p e a k er s i n cl u d e d L a k e C h arl e s M a y or Ni c H u nt er, S o ut h w e st L o ui si a n a E c o n o mi c Alli a n c e Pr e si d e nt & C E O G e or g e S wift, P ort of L a k e C h arl e s E x e c uti v e Dir e ct or Bill R a s e a n d L M O G A Pr e si d e nt C hri s J o h n.

S p e a k er s L a k e C h arl e s M a y or Ni c H u nt er, P ort of L a k e C h arl e s E x e c uti v e Dir e ct or Bill R a s e, L M O G A Pr e si d e nt C hri s J o h n a n d S o ut h w e st L o ui si a n a E c o n o mi c Alli a n c e Pr e si d e nt & C E O G e or g e S wift

M O N D A Y M O R NI N G S C A N B E U N P R E DI C T A B L E. Y o u r w o r k e r s’ c o m p e n s a ti o n c o v e r a g e s h o ul d n’ t b e.

Tr u s t e d ﬁ n a n ci al s t a bili t y a n d u n p a r all el e d c u s t o m e r e x p e ri e n c e s, b r o u g h t t o y o u b y

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L W C C 1 8- 0 5rI n d u str y R e p ort R e si z e _ WI T H O U T B A D G E.i n d d

W o r k e r s’ C o m p e n s a ti o n C o m p a n y.

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I S C i s a n i n d u stri al e n gi n e eri n g a n d c o n str u cti o n c o m p a n y t h at pr o vi d e s c o m pr e h e n si v e e n gi n e eri n g s er vi c e s a n d s p e ci ali z e s i n el e ctri c al, i n str u m e nt ati o n a n d c o ntr ol s c o n str u cti o n s er vi c e s. F o u n d e d i n 1 9 8 9, I S C h a s gr o w n t o m or e t h a n 2, 8 0 0 a s s o ci at e s, a n d t hr o u g h o ur n ati o n al a w ar d -wi n ni n g w or kf or c e d e v el o p m e nt pr o gr a m, I S C e n s ur e s o ur c u st o m er s r e c ei v e s af e, effi ci e nt a n d hi g h -q u alit y p erf or m a n c e o n all pr oj e ct s. Fr o m fr o nt- e n d e n gi n e eri n g a n d d e si g n t o st art- u p a n d o n g oi n g m ai nt e n a n c e, I S C i s a pr o v e n l e a d er t hr o u g h it s c o m mitt e d w or kf or c e a n d n ati o n all y - a c cl ai m e d l e a d er s hi p.

1 0 1 2i n d u str yr e p ort. c o m

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W h er e’ s t h e

WI N D F A L L? T h e p etr o c h e mi c al i n d u str y i s b o o mi n g. Oil pri c e s ar e r e b o u n di n g. S o w h y i s L o ui si a n a’ s e c o n o m y str u g gli n g ?

i ke a r oc k t osse d i nt o a p o n d, L o uisi a n a’s e x p a n sive i n d ustri al m ar ket h as a ne arl y i m me as ur a ble ri p ple e ffect o n t he ec o n o m y. Thi s is p artic ul arl y tr ue f or st ate a n d p aris h g over n me nts, w here fi n a nci al c o ffers tra diti o n all y derive l ar ge c h u n ks of m o ne y fr o m oil a n d g as se vera nce t a xes, r o yalties, c or p orate i nc o me t a xes a n d pr o p ert y t a xes. S o s o me q uesti o n w h y L o uisi a n a’s ec o n o m y is str u g gli n g a n d t he st ate b u d get is i m b al a nce d e ve n as t he p etr oc he mic al i n d ustr y b o o ms a n d oil a n d g as re b o u n ds i nt o $ 7 0- p er- b arrel territ or y. I n 2 0 1 7, t he st ate p oste d t he w orst ec o n o mic p erf or m a nce of all 5 0 st ates a n d w as o ne of o nl y t hree st ates w here t he ec o n o m y s hra n k. Acc or di n g t o a re p ort b y t he U. S. B ure a u of Ec o n o mic A n al ysis, L o uisi a n a’s gr oss d o mestic pr o d uct c o ntracte d b y 0. 2 % i n 2 0 1 7, getti n g s m aller f or t he sec o n d strai g ht ye ar. A n d t he st ate’s $ 2 4 6 billi o n ec o n o m y re m ai ns ne arl y 6 % s m aller t h a n its 2 0 1 0 p e a k, after a dj usti n g f or i n fl ati o n. I n s o me res p ects, t he le a di n g c a use f or t he dis m al G D P is e asil y trace a ble. W he n oil b ott o me d o ut i n 2 0 1 5, t he i n d ustr y l ar gel y a b a n d o ne d t he o ffs h ore a n d i ns h ore m ar kets f or s h ale pl a ys i n Te x as a n d else w here. Theref ore, e ve n as oil prices re b o u n de d, pr o d ucti o n c o n ti n ue d t o l a g. Gre g Al brec ht, c hief

1 0 1 2i n d u str yr e p ort. c o m

BY S A M B A R NES ec o n o mist i n t he L o uisi a n a L e gis l ative Fisc al O ffice, s a ys t he st ate is still de p e n de nt u p o n oil a n d g as, b ut t h at d y n a mic is c h a n gi n g. “ We h ave a decli ni n g a m o u nt of e xtracti o n g oi n g o n i n t he st ate i n ter ms of v ol u mes c o mi n g o ut of t he gr o u n d.” It’s all a b o ut t he oil, s a ys Gi ff or d Bri g gs, presi de nt of t he L o uisi a n a Oil & Gas Ass oci ati o n. “ Pr o d ucti o n i n L o uisi a n a h as b ee n i n a ste a d y decli ne, m uc h m ore s o i n t he p ast f o ur t o five ye ars, a n d s o t he price of a b arrel of oil d o es n’t q uite h ave t he i m p act o n t he st ate ec o n o m y t h at it use d t o,” Bri g gs s a ys. “ We use d t o see $ 8 0 oil i n L o uisi a n a a n d we’ d be d a nci n g i n t he streets. Here we are at $ 8 0 a n d we’re still t al ki n g a b o ut h u ge de ficits.” He s a ys pr o d ucti o n is als o b ei n g t h w arte d b y t he pre v ale nce of “le g ac y l a ws uits” i n L o uisi a n a, w here b y l a n d o w ners c a n re q uire oil a n d g as c o m p a nies t o p a y f or t he rest orati o n of t heir pr o p erties. The n u m b er of s uits i ncre ase d si g ni fic a ntl y f oll o wi n g a 2 0 0 3 L o uisi a n a S u pre me C o urt decisi o n all o wi n g pl ai nti ffs t o rec over t he c ost t o rest ore a pr o p ert y t o its ori gi n al c o n diti o n, re g ar dless of t he pr o p ert y’s v al ue. C o m bi ne d wit h L o uisi a n a h avi n g t he hi g hest se vera nce t a xes i n t he U. S., Bri g gs s a ys “it d o es n’t m a ke a l ot of se nse f or c o m p a nies t o s p e n d t heir ver y li mite d c a pit al d oll ars i n L o uisi a n a.” I ns h ore c ost al L o uisi a n a is seei n g t he bi g gest i m p act. L af a yette a n d

H o u m a h ave bee n i n t he t o p t hree f or j o b l osses si nce 2 0 1 4, L af a yette l osi n g $ 1 0 billi o n i n G D P si nce 2 0 1 4 wit h 5 0 % of it c o mi n g directl y i n oil a n d g as. C o ast al use per mits, a g o o d i n dic at or of f ut ure activit y, pe a ke d at a b o ut 1, 8 0 0 i n 2 0 1 3 t he n dr o p pe d b y 3 7 % t hr o u g h t he e n d of 2 0 1 7. “ Oil is a fi nite res o urce, s o as t hese wells de plete we nee d t o kee p a d di n g ne w wells t o o ffset t he l oss of pr o d ucti o n,” Bri g gs s a ys. “ Th at’s a h u ge s o urce of re ve n ue f or t he st ate.” Ec o n o mist L ore n Sc ott of L ore n C. Sc ott & Ass oci ates s a ys i nst a bil it y is a n u n av oi d a ble re alit y f or oil a n d g as st ates, a n d t he c yclic al n a t ure of t he m ar ket m a kes it di ffic ult f or st ate a n d p aris h g over n me nts t o m a n a ge t heir b u d gets. Eve n t h o u g h oil a n d g as re ve n ue c o m prise o nl y a b o ut 5 % of st ate g over n me nt’s o p erati n g b u d get t o d a y —it w as m ore t h a n 4 0 % i n t he 1 9 7 0s a n d e arl y 1 9 8 0s —t he dr o p i n oil prices i n 2 0 1 4 h a d a n u n de ni a ble e ffect. “It a d ds a le vel of v ol atilit y t h at m ost st ates d o n’t e x perie nce,” he a d ds. “If y o u l o o k at Al a b a m a or Mississi p pi, y o u w o ul d n ot fi n d t heir e m pl o y me nt n u m bers m ovi n g ar o u n d q uite as m uc h. The pr o ble m is t he i n d ustr y de pe n ds s o m uc h o n t he price, a n d t he price de pe n ds s o m uc h o n w h at i n divi d u al c o u ntries d o. It’s s o met hi n g t h at’s n ot pre dict a ble. “ W h o w o ul d h ave g uesse d i n t he l atter p art of 2 0 1 4 t h at t he y w o ul d

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

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“ We have a d e cli ni n g a m o u nt of e xtr a cti o n g oi n g o n i n t h e st at e i n t er m s of v ol u m e s c o mi n g o ut of t h e gr o u n d.”

T H E A S S O CI A T E D P R E S S

G R E G A L B R E C H T, c hi ef e c o n o mi st, L o ui si a n a L e gi sl ati v e Fi s c al Of ﬁ c e

T h e oil p ri c e b u st: L o ui si a n a’ s l o st r e v e n u e A ﬁ v e- y e ar c o m p ari s o n of s e v er a n c e t a x c oll e cti o n s

1,000,000,000

800,000,000

600,000,000

400,000,000

200,000,000

2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

S o ur c e: L o ui si a n a D e p art m e nt of R e v e n u e 26

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j ust s u d de nl y o pe n t he t a ps a n d drive t he price d o w n fr o m $ 1 1 0 t o u n der $ 3 0 a b arrel?” F or L o uisi a n a, t he re al stic k i n g p oi nt h as bee n t he si g ni fic a nt decli ne i n o ffs h ore pr o d ucti o n. “ O ffs h ore h as ne ver re all y c o me b ac k,” Al brec ht s a ys. “ We h a d m ore t h a n 1 0 0, 0 0 0 pe o ple i n t he oil a n d g as i n d ustr y i n t he l ate’ 7 0s a n d e arl y ’ 8 0s. The n, we were at a b o ut 5 0, 0 0 0 or s o bef ore t he 2 0 1 4 oil dr o p be g a n, a n d n o w we’re d o w n t o 3 0, 0 0 0 t o 3 5, 0 0 0.” G A U GI N G P E T R O C H E M Ta ki n g u p t he sl ac k i n a bi g w a y h as bee n t he petr oc he mic al i n d ustr y a n d its rece nt s ur ge i n e x p a nsi o n activit y. “I n 2 0 1 6- 1 7, t he 1 9 2 c or p orate i nc o me t a x filers wit h t a x a ble i nc o mes gre ater t h a n $ 1 0 milli o n p ai d 6 5. 2 2 % of t he t ot al t a x li a bilit y,” Al brec ht s a ys. “ Petr oc he mic al is a bi g p art of t h at.” At t he p aris h g over n me nt le vel, petr oc he mic al c o m p a nies p a y o ut l ar ge s u ms i n pr o pert y t a xes — e ve n wit h e xe m p 1 0 1 2i n d u str yr e p ort. c o m

C h e mi c al m a n uf a ct u ri n g w o r kf o r c e

2 9, 1 0 9 t ot al j o b s ( Q 3 2 0 1 7)

A H E A D OF

S C H E D UL E A N D U N DE R

B U D G ET

W e b e gi n wit h a w or k a bl e pl a n t h at l e v er a g e s o ur str e n gt h s of c o m bi n e d k n o wl e d g e a n d e x p eri e n c e wit h s af e pr oj e ct e x e c uti o n … e v er y ti m e. It’s a cl ai m t h at i s d o c u m e nt e d pr oj e ct b y pr oj e ct. G et t h e f ull st or y a n d s e e w h at o ur cli e nt s s a y at b arri er e. c o m / pr oj e ct s- a w ar d s.

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1- 9 9 w or k er s 1 0 0- 4 9 9 w or k er s 5 0 0- 9 9 9 w or k er s 1, 0 0 0 or m or e w or k er s ti o ns pr ovi de d b y t he m uc h- de b ate d I n d ustri al Ta x E xe m pti o n Pr o gra m (I T E P). Sc ott esti m ates t h at m ore t h a n $ 1 4. 5 billi o n i n i n d ustr y i nvest me nts i n L o uisi a n a will c o me o nt o t he l oc al pr o pert y t a x r olls d uri n g t he ne xt f o ur ye ars. L oc al g over n me nts will e x perie nce i ncre ase d t a x re ve n ue f or p aris h ser vices, p u blic s afet y a n d e d uc ati o n bec a use of t hese i nvest me nts b y i n d ustr y, n ot t o me nti o n t he j o bs a n d l oc al b usi ness p art ners hi ps t h at c o me wit h t hese pr ojects. Still, Al brec ht t hi n ks t he i niti al be ne ﬁt fr o m petr oc he mic al i nvest me nt is s o me w h at i n ﬂ ate d, give n t h at m uc h of t he w or k is p erf or me d overse as. “ Th ose i m p act a n al yses t h at c o me o ut of L o uisi a n a Ec o n o mic De vel o p me nt a n d l oc al ec o n o mists gr ossl y overst ate t he act u al i m p act t o t he c o m m u nit y a n d t he are a. S as ol (i n L a ke C h arles) w as a h u ge t ot al i nvest me nt n u m ber, b ut ver y l ar ge 1 0 1 2i n d u str yr e p ort. c o m

S o ur c e: L o u si a n a W or kf or c e C o m mi s si o n, R e s e ar c h Di vi si o n

c h u n ks of t h at f acilit y are act u all y b uilt a n d c o nstr ucte d overse as a n d t he n s hi p pe d i n o n b ar ges. “ Th at’s w here a l ot of t he v al ue c o mes. W h at we’re d oi n g is asse m bli n g it here. Yo ur ec o n o m y’s n ot getti n g $ 1 6 billi o n w ort h of i m p act, y o u’re getti n g a fracti o n of t h at.” The pl a nts h ave f ar m ore c o n str ucti o n e m pl o y me nt t h a n o p erati n g e m pl o y me nt, s o o nce c o nstr ucti o n is c o m plete, t he e m pl o y me nt n u m b ers dr o p dra m atic all y. Re g ar d less, Al brec ht s a ys t here are o bvi o us b e ne ﬁts t o t he st ate. “ The y m a ke all ki n ds of pr o d ucts, c he mic als a n d i n ter me di ate pr o d ucts, a n d we e x p ort it o ut t o t he rest of t he w orl d. S o it’s a pl us f or us.” The l o n g-ter m b e ne ﬁts are h ar d t o i g n ore, Sc ott s a ys, a d di n g t h at t he c he mic al i n d ustr y c o ntri b utes e n o u g h m o ne y t o l oc al g over n me nts t o p a y t he s al aries of 4 0 % of L o uisia n a’s p u blic sc h o ol te ac hers — at le ast

A S H W O R TH I ND U ST RI E S P R O V I DE S IN D U ST RI A L S E R VI C ES . M a chi ni n g, m a n uf a c tu ri n g, re p a iri n g a n d distri b uti n g p ro c ess e q ui p m e n t a n d p a rts as w e ll a s c o ns tru ct i o n ma n a g e m e nt a n d i ns p e cti o n s e rvic es .

C O N S T R U C T IO N M A N A G E M E N T T HI R D- P A R T Y I N SP E C T IO N S

P U M P & V A LV E P A R T S

P U M P , V A LV E & C O M P R E S S O R

M A T E RI A L S M A N A G E M E N T

R E P AI R S / M AI N T E N A N C E

N E W V A L V E S & A U T O M A T IO N

w w w .ash worthindustriesllc.com | info @ avillcus.co m | (225) 677-9560 1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

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C a s e St u d y: C a m e r o n P a ri s h D e s pit e h a vi n g t h e hi g h e st e x e m pti o n s t hr o u g h t h e I n d u stri al T a x E x e m pti o n Pr o gr a m, C a m er o n P ari s h h a s e x p eri e n c e d tr e m e n d o u s gr o wt h i n w a g e s, gr o s s s al e s a n d u s e t a x e s, a n d ot h er m etri c s. A v er a g e w e e kl y w a g e s t h er e w er e t h e hi g h e st i n t h e c o u ntr y i n t h e t hir d q u art er of 2 0 1 7, a n d it s p er c a pit al s al e s a n d u s e t a x c oll e cti o n s i n 2 0 1 7 w er e b y f ar t h e hi g h e st i n t h e st at e.

A W I Q

VE R A GE WEE KLY A G E S B Y P A RI S H N L O UI SI A N A, FI R S T U A RT E R 2017 $ 1, 0 5 0 O R M O R E $ 9 0 0 - 1, 0 4 9 $749 - 899 $600 - 749 $ 5 9 9 or l e s s

$ 1, 5 5 3 a s of Q 3 2 0 1 7 Hi g h e st i n U. S.

S o ur c e s: B ur e a u of L a b or St ati sti c s, C a m er o n P ari s h A n n u al T a x C oll e cti o n R e p ort a n d t h e L o ui si a n a D e p art m e nt of R ev e n u e

F Y2017 C H A N G EI N G R O S S S ALES & USE T AX Rank

P ari s h

% Change

C a m er o n

8 3 9. 6 5 %

B e a ur e g ar d

8 3. 1 8 %

M a di s o n

6 6. 4 2 %

St. J a m e s

6 5. 1 4 %

J eff er s o n

5 7. 9 6 %

W e st B at o n R o u g e

5 7. 3 6 %

Te n s a s

5 5. 1 5 %

Caddo

5 0. 8 7 %

O nl y t h o s e p ari s h e s wit h a n i n cr e a s e gr e at er t h a n 5 0 % ar e r a n k e d. 28

F Y2017 S AL E S & U S E T A X E S

1 0/ 1 2 I N D U S T R Y R E P O R T â&#x20AC;˘ T HI R D Q U A R T E R 2 0 1 8

Rank

P ari s h

F Y E P er C a pit a

C a m er o n

$ 3, 4 8 1

I b er vill e

$ 1, 3 8 2

St. J a m e s

$ 1, 2 2 3

W e st B at o n R o u g e

$ 1, 1 1 8

A s c e n si o n

$912

J eff er s o n

$880

C al c a si e u

$854

St. C h arl e s

$707

E a st B at o n R o u g e

$692

Te n s a s

$671 1 0 1 2i n d u str yr e p ort. c o m

S A F EL Y D ELI V E RI N G

C O N ST R U CTI O N D O N K A D AI R

S OL UTI O N S “I n d u str y p a y s a b o ut h alf of all t h e s al e s t a x i n t h e st at e, a n d t h e p ari s h e s w h er e w e’r e h e a vi e st ar e i n ci d e nt all y t h e p ari s h e s t h at g et t h e m o st I T E P.”

O N TI M E, E V E R Y TI M E!

E v er y B arri er e pr oj e ct l e v er a g e s o ur pr of e s si o n al str e n gt h s, c o m mit m e nt t o i n n o v ati o n a n d s af et y, m a ki n g u s a c o m pr e h e n si v e c o n str u cti o n m a n a g e m e nt s ol uti o n. Fi n d o ut w h at o ur cli e nt s s a y a b o ut u s a n d w h at w e c a n off er y o ur c o m p a n y at b arri er e. c o m / pr oj e ct- a w ar d s.

TI M H A R RI S, sit e m a n a g er, E a st m a n C h e mi c al i n St. G a bri el

$ 9 5 9. 5 milli o n a n n u all y. Gre g B o wser, presi de nt of t he L o uisi a n a C he mic al Ass oci ati o n, s a ys t he i m p act of i n d ustr y is f ar re ac hi n g. “ Yo u l o o k at t he Tur ners of t he w orl d, t he I S Cs of t he w orl d, a n d t he pe o ple t he y p ut t o w or k. A n d t he n l o o k at t he t a xes a n d fees t h at g o t o t he st ate tre as ur y. O ur esti m ates s h o w t h at m ore t h a n $ 1 billi o n [i n 2 0 1 7] g o es t o st ate a n d l oc al g over n me nts, i n ter ms of fees a n d t a xes.” W H AT T H E S T AT E G E T S S o j ust w h at d oes t he st ate receive fr o m i n d ustr y? Sc ott s a ys t he oil a n d g as e xtracti o n, re ﬁ ni n g a n d pi p e li ne i n d ustries directl y p ai d $ 6 8 8. 7 milli o n i n st ate t a xes a n d fees i n F Y 2 0 1 7, e ve n as t he e xtracti o n sec t or w as i n a seri o us recessi o n. Th at’s pri m aril y bec a use L o uisi a n a h as t he l ar gest se vera nce t a x o n oil a n d g as of a n y st ate i n t he c o u ntr y, at 1 2. 5 %. W hile t here are prefere nti all y l o wer t a x rates f or t h ose wit h l o w pr o d ucti o n, ne arl y 9 5 % of t he v ol u me c o mes fr o m wells s u bject t o t he f ull t a x, a n d m ostl y fr o m s o ut h L o uisi a n a. N o net heless, a n L S U Ce nter f or E ner g y St u dies e x a mi n ati o n i nt o t he t ot al c ost of drilli n g a n d pr o d ucti o n 1 0 1 2i n d u str yr e p ort. c o m

f o u n d t h at, e ve n wit h t he hi g her se vera nce, “ we’re o n p ar wit h ot her l oc ati o ns,” Al brec ht s a ys. “ Yo u’ve g ot y o ur le ase c osts, l a b or c osts, m ateri als a n d e ver yt hi n g else t o f act or i n. The se vera nce t a x w o ul d b e o ne of t he hi g her c o m p o ne nts, b ut p ut it all t o get her a n d we’re n ot a hi g h- c ost st ate i n j ust o p erati o ns.” If t he st ate s ust ai ns a b o o m i n h ori z o nt al drilli n g a n d frac ki n g —i n are as s uc h as H a y nesville, t he A usti n C h al k or t he Tusc al o os a M ari ne S h ale —it w o n’t i niti all y re ali z e a n y t a x b e ne fits. To e nc o ura ge i nvestme nt i n t he pl a ys, h ori z o nt al drilli n g a n d frac ki n g o p erati o ns receive a 1 0 0 % e xe m pti o n o n se vera nce t a x f or 2 4 m o nt hs or u ntil t he c ost of t he well is p ai d. “ A n d w he n t he e xe m pti o n p eri o d is over, t he well v ol u mes will li kel y b e m uc h l o wer t h a n t he y were at t he b e gi n ni n g,” Al brec ht s a ys. “ The y h ave ver y s h ar p decli ne rates, s o a l ar ge s h are of a well’s t ot al pr o d ucti o n c o mes o ut i n t he first o ne t o t w o ye ars. Th at’s o ur give a w a y ye ars.” I n re g ar d t o oil a n d g as r o yalties — c ollecte d b y t he L o uisi a n a De p art me nt of Nat ural Res o urces b ase d o n b arrels s ol d at c urre nt m ar ket price —t he st ate feels t he f ull i m p act of m ar ket fl uct u ati o ns.

W W W. B A R RI E R E. C O M

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2 2 5. 7 5 3. 1 1 2 1

N ot hi n g r u n s s m o ot h er t h a n a w ell- oil e d m a c hi n e.

E xt e n d e q ui p m e nt lif e | D e cr e as e d o w nti m e |I m pr o v e s af et y

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

C HE RYL GE R BE R

C OVE R ST ORY

I n ﬁsc al ye ar 2 0 1 5, r o yalt y c ollecti o ns dr o p pe d fr o m $ 4 7 0 milli o n t o $ 2 8 8 milli o n, t he n dr o p p e d a g ai n t o $ 1 5 0 milli o n i n 2 0 1 6 a n d t o $ 1 4 0 milli o n 2 0 1 7. I n 2 0 1 8, t h at n u m b er will li kel y re m ai n at ne arl y $ 1 4 0 milli o n. “If t he price avera ge [ of oil] is a d oll ar m ore i n a ye ar, a n d wit h e ver yt hi n g else hel d c o nst a nt, t he st ate mi g ht e x pect t o get $ 1 2 milli o n m ore i n se vera nce a n d r o yalt y c ollec ti o ns,” Al brec ht s a ys. I T E P’ S T R U E I M P A C T W hile i n d ustr y s p o kes p e o ple s a y I T E P is a critic al t o ol f or attracti n g petr oc he mic al i n d ustri al i nvest me nt i nt o L o uisi a n a, s o me h ave d o u bts. Al brec ht feels t he pr o gra m h as little i m p act o n i nvest me nt. “ The y’re n ot here bec a use of I T E P,” he a d ds. “ The y’ve g ot t o be here b ec a use t his is w here t heir s u p pl y c h ai ns are. The ec o n o mic literat ure d o es n’t s u p p ort t he i de a t h at i n d ustries l oc ate b ec a use of be ne ﬁt pr o gra ms. I n d ustr y is l oc ati n g w here l a n d is c he a p, w here it c a n get t he l a n d a n d w here t he n at ural res o urces are. W h at d o es 30

“ Fir m s ar e n ot willi n g t o drill w h er e t h er e’ s t h e ri s k of b ei n g hit wit h a l a w s uit.” M A R C E H R H A R D T,

e x e c uti v e dir e ct or, Gr o w L o ui si a n a C o aliti o n

it c ost t o get m y i m p orts i n a n d m y e x p orts o ut? These are t he t hi n gs t h at are b y f ar bi g ger c osts t o t he m.” Ti m H arris, site m a n a ger at E ast m a n C he mic al i n St. Ga briel, str o n gl y dis a grees. He s a ys t here are se veral pr ojects le avi n g f or Te x as b ec a use of i nst a bilit y i n t he I T E P pr o gra m. “ The c o m p a nies are n’t e ve n a p pl yi n g here b ec a use it’s n ot c o m p etitive a n y m ore. Yo u c a n l o o k at t he i nt a ke f or ms t h at L E D gets a n d see t h at t here’s a m ar ket dr o p b ef ore a n d after t he c h a n ge.” H arris s a ys t he j o bs cre ate d b y ne w i nvest me nt h ave a direct i m p act

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

o n s ales t a x re ve n ue. Wit h 1 1 0 f ullti me p ositi o ns a n d a b o ut 4 0 resi de nt c o ntract ors, E ast m a n’s p a yr oll is a b o ut $ 1 2 milli o n a n n u all y. “I n d us tr y p a ys a b o ut h alf of all t he s ales t a x i n t he st ate, a n d t he p aris hes w here we’re he aviest are i nci de nt all y t he p aris hes t h at get t he m ost I T E P. O ur i n d ustr y als o p a ys t w o-t hir ds or m ore of t he pr o p ert y t a x t h at’s c ollecte d.” I n I b er ville Paris h, E ast m a n p a ys ne arl y $ 1 milli o n a ye ar i n pr o p ert y t a x, a n u m b er t h at will j u m p b y $ 3 0 0, 0 0 0 w he n t w o I T E P c o ntracts e x pire at t he e n d of 2 0 2 0- 2 0 2 1.

Acc or di n g t o L ore n Sc ott, t he t o p ei g ht I T E P p aris hes c ollect m ore pr o pert y t a xes per c a pit a t h a n t he st ate wi de avera ge. L e a di n g i n per c a pit a c ollecti o ns is C a mer o n Paris h i n s o ut h west L o uisi a n a. Eve n t h o u g h it h as t he hi g hest a m o u nt of I T E P e xe m pti o ns, t he m ostl y r ural p aris h receives a n avera ge of $ 4, 8 5 0 per pers o n i n pr o pert y t a xes. R ya n B o urri a q ue, C a mer o n Paris h P olice J ur y a d mi nistrat or, esti m ates t h at his p aris h h as give n u p as m uc h as $ 5. 3 billi o n i n pr o pert y t a xes t hr o u g h I T E P, e ve n as t a x p a yers h ave ge nerate d $ 2 3. 9 milli o n i n st ate s ales t a x f or F Y 2 0 1 6- 2 0 1 7. MI X E D B A G U nf ort u n atel y, C a mer o n Paris h re m ai ns cl osel y tie d t o oil a n d g as, a n d t h at h as p ut t he h urt o n its b u d get i n rece nt ye ars des pite t he j o bs a n d t a xes ass oci ate d wit h L N G pr ojects. Paris h o perati n g re ve n ue i n 2 0 1 2 w as $ 1 4. 5 milli o n; i n 2 0 1 6, t h at n u m ber h a d f alle n t o $ 7. 8 milli o n. “ We’ve h a d t o c ut,” B o urri a q ue s a ys. “ We h a d ﬁve or si x o pe n p osi1 0 1 2i n d u str yr e p ort. c o m

ti o ns i n t he l ast ye ar t h at were n ot fille d, s avi n g us ar o u n d $ 3 0 0, 0 0 0 i n s al aries a n d be ne fits al o ne. We’ve rene g oti ate d pr ofessi o n al ser vice c o n tracts t h at h ave res ulte d i n s avi n gs t o t he p aris h, etc. It’s u nf ort u n ate t o s a y it t his w a y, b ut we’ve h a d t o f u ncti o n as if n o ne of t h at [ oil a n d g as i nvest me nt] is t a ki n g pl ace. We’ve c o me t o t he re ali z ati o n t h at t he a m o u nt of f u n ds t h at we o nce c ollecte d m a y n ot be c o mi n g b ac k.” B o urri a q ue is h a n gi n g his h o p es o n t he b o o mi n g L N G m ar ket a n d s o me i n n ov ative f u n draisi n g me as ures. B y 2 0 2 0 t he p aris h will be gi n receivi n g pr o pert y t a x m o ne y fr o m C he niere L N G o nce its “i niti al” I T E P e xe m pti o n e x pires. “ The p aris h s h o ul d receive its first c hec k i n 2 0 2 0 f or t heir i m p ort f acilit y, a n d t a xes fr o m t heir e x p ort f acilities will be gi n t o r oll i n m uc h l ater i n 2 0 2 6 or 2 0 2 7,” B o urri a q ue s a ys. Else w here, C a mer o n L N G will m a ke its first pr o pert y t a x p a y me nt i n 2 0 2 1 f or its i m p ort f acilit y. The p aris h h as als o l o o ke d i nt o a “ Pa y me nt I n Lie u of Ta x” pr o gra m t o a d dress i m me di ate i nfrastr uct ure a n d b u d get g a ps, b ut h as m a de little pr o gress. PI L O T p a y me nts c o m pe ns ate a g over n me nt f or s o me or all of pr o pert y t a x re ve n ue l ost d ue t o t a x e xe m pti o ns. “ We’ve h a d n o l uc k t h us f ar i n t he L e gisl at ure. I n 2 0 1 6, H o use Bill 4 4 4 receive d t he re q uire d t w o-t hir ds v ote i n t he H o use, t he n die d i n c o m mittee. The n, after a n ot her ye ar a n d m a n y meeti n gs, a re v a m pe d PI L O T bill receive d o nl y o ne v ote.” The p aris h h as l o o ke d t o ot her w a ys t o fi n a nce critic al pr ojects, pri m aril y t hr o u g h G O M E S A ( G ulf of Me xic o E ner g y S ec urit y Act) f u n ds. G O M E S A pr ovi des re ven ue s h ari n g pr ovisi o ns f or t he f o ur G ulf oil a n d g as pr o d uci n g st ates of Al a b a m a, L o uisi a n a, Mississi p pi a n d Te x as, a n d t heir c o ast al p olitic al s u b divisi o ns. Ge or ge S wift, e xec utive direct or of t he S o ut h west L o uisi a n a Ec o n o mic De vel o p me nt Alli a nce, s a ys t he l oc al i m p act of i n d ustr y — p artic ul arl y L N G e x p ort pr ojects — o n l oc al g over n me nt c o ffers a n d priv ate b usi nesses is u n de ni a ble. There is $ 6 5 billi o n i n a n n o u nce d pr ojects i n t he L a ke C h arles are a i n v ari o us st a ges of p er mitti n g a n d desi g n, e x pecte d t o cre ate 1 8, 0 0 0 1 0 1 2i n d u str yr e p ort. c o m

p er m a ne nt j o bs. “ We’re seei n g si g ni fic a nt i ncre ases i n s ales t a x re ve n ue, c orres p o n di n g wit h c o nstr ucti o n activities a n d t he p urc h asi n g of e q ui p me nt a n d s u p plies,” S wift s a ys. A d diti o n all y, over t he l ast f o ur ye ars t here h ave b ee n r o u g hl y 6, 0 0 0 si n gle-f a mil y or m ultif a mil y resi de nti al u nits c o nstr ucte d. Paris h g over n me nts, sc h o ols a n d s heri ff’s o ffices h ave als o b ee n t he b e ne fici aries of t he i ncre ase. L O O KI N G A H E A D At le ast i n t he ne ar ter m, t he st ate ec o n o m y pr o b a bl y w o n’t see a n y bi g “ra m p u p.” A si g ni fic a ntl y c h a n gi n g oil a n d g as d y n a mic h as t he m aj or pl a yers s hifti n g t heir de vel o p me nt d oll ars t o t he s h ale pl a ys a n d a w a y fr o m o ffs h ore. Thi s will c o nti n ue t o d a m p e n t he st ate’s fi n a nci al c o ffers e ve n if t he price re m ai ns st a ble or i ncre ases. “ Th at’s t he bi g gest pr o ble m t h at we’ve g ot,” Sc ott s a ys. “ W h at’s killi n g L af a yette a n d H o u m a is t he f act t h at t he G ulf h as n’t c o me b ac k. If y o u w a nt t o drill i n t he Per mi a n y o u w al k u p t o a ra nc her a n d y o u w or k o ut a de al, a n d i n t w o m o nt hs y o u’re pr o d uci n g oil. If y o u w a nt t o drill i n t he G ulf it’s a si x- t o 1 0- ye ar pr oject b ef ore y o u get t he first b arrel of oil, a n d y o u’ve g ot t o b elie ve t h at t he price is g oi n g t o b e u p a n d st a y u p.” Oil a n d g as o w ners h ave little pr o ble m i de ntif yi n g t heir bi g gest l o c al o bst acle —le g ac y l a ws uits. M arc E hr h ar dt, e xec utive direct or of t he Gr o w L o uisi a n a C o aliti o n s a ys t he st ate’s le g al cli m ate cre ates si g ni fic a nt ris k “f or a n y o ne w h o w a nts t o i nvest. Fir ms are n ot willi n g t o drill w here t here’s t he ris k of b ei n g hit wit h a l a ws uit.” The f ut ure is bri g hter o n t he p et r oc he mic al si de, as c o m p a nies t a ke a dv a nt a ge of a n a b u n d a nce of l oc all y pr o d uce d n at ural g as a n d a h u ge price di ffere nti al. “ We’ve g ot a n oce a n of n at ural g as ri g ht n o w,” Sc ott s a ys. “ There d o es n’t see m t o b e a n y e n d t o it, a n d t h at is t he ke y t o t he gr o wt h i n t he c he mic al i n d ustr y. “ O ur s h are of t he pie is gr o wi n g li ke cra z y b ec a use we’re kic ki n g t he b e hi n ds o ff t he E ur o p e a ns a n d t he Asi a ns i n t he pr o d ucti o n of c he mi c als. Th at’s w h y we’re h avi n g a n e x pl osi o n of pr ojects i n L a ke C h arles a n d al o n g t he Mississi p pi River.”

It’s b e e n o ur w a y of d oi n g b u si n e s s f or 7 0 y e ar s … o n e f ull y i nt e gr at e d t e a m, w or ki n g i n p art n er s hi p wit h o ur v al u e d cli e nt s t o d eli v er q u alit y c o n str u cti o n s ol uti o n s o n ti m e e v er y ti m e. Y o u c a n l e ar n m or e a b o ut t h e pr oj e ct s w e’ v e c o m pl et e d at b arri er e. c o m / pr oj e ct- a w ar d s.

W W W. B A R RI E R E. C O M

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2 2 5. 7 5 3. 1 1 2 1

y o u r p a rt ne ri n

p r

g re s s

D E M C O gi v e s y o ur b u si n e s s t h e p o w er t o gr o w.

d e m c o. o r g

/ D E M C O L o ui si a n a

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

N E WS OI L & G A S

P L A Y G R O U N D S: T h e A u sti n C h al k str et c h e s fr o m T e x a s t o t h e G ulf of M e xi c o a n d c ut s t hr o u g h m u c h of c e ntr al a n d s o ut h e a st L o ui si a n a.

M a ki n g a pl a y

C o m p a ni e s b a n k t h at fr a c ki n g a d v a n c e s will h el p t ur n a pr o ﬁt i n t h e A u sti n C h al k.

S U ge ol o g y al u m n us Kir k B arrell c a n’t c o nt ai n his e xcite me nt t hese d a ys. I n rece nt m o nt hs, t he oil-ric h A usti n C h al k f or m ati o n h as c a pt ure d t he f ull atte nti o n of C o n oc o P hilli ps, M arat h o n a n d E O G Res o urces, a m o n g ot hers, a n d his ﬁr m A meli a Res o urces L L C i n Ne w Orle a ns is sec ur i n g a n d selli n g l ar ge s w at hs of le ase acre a ge t here. I m pr ove me nts i n frac ki n g tec h n ol o g y, i ne x p e nsive l a n d a n d a n est a blis he d i nfrastr uct ure h ave m a de t he ge ol o gic al f or m ati o n desira ble f or oil a n d g as de vel o p me nt. The A usti n C h al k stretc hes fr o m Te x as t o t he G ulf of Me xic o a n d c uts t hr o u g h m uc h of ce ntral a n d s o ut he ast L o uisi a n a. U ntil rece ntl y, t he i n d ustr y’s i ns h ore atte nti o n has bee n f oc use d al m ost e xcl usivel y o n t he E a gle F or d a n d Per mia n Basi n pla ys i n Te xas, b ut m uc h of t h ose leases has bee n s ol d. That’s w he n c o m pa nies st arte d l o o ki n g east war d, a n d A melia Res o urces was t here t o hel p. The c o m pa n y ge nerates drilli n g pr os pects i n t he o ns h ore U. S., t he n le vera ges its dat a a n d e x perie nce t o attract ca pit al part ners. “ The p ast 1 2 m o nt hs we’ve sec ure d 4 9 0, 0 0 0 acres,” B arrell s a ys. “ We s ol d 8 5, 0 0 0 t o C o n o -

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

ALLI N

B Y S A M B A R N ES

c o P hilli ps i n Dece m b er 2 0 1 7 a n d we j ust si g ne d a de al t o sell 4 5, 0 0 0 acres t o a n ot her c o m p a n y. We’ve g ot 3 6 0, 0 0 0 [re m ai ni n g acres] t o sell, a n d are c o nti n u all y acc u m ul ati n g ne w acre a ge.” De vel o p me nt i n t he A usti n C h al k is n ot hi n g ne w, b ut t he l ast bi g b o o m t here i n t he 1 9 9 0s w as b ef ore t he a dve nt of frac ki n g tec h n ol o g y. To d a y, t he re gi o n is e x p erie nci n g a re viv al t h a n ks t o ne w h ori z o nt al drilli n g a n d c o m pleti o n tec h ni q ues. The n u m b er of ri gs h as d o u ble d (i n t he Te x as p orti o n of t he pl a y) a n d oil pr o d ucti o n s ur ge d t o 5 7, 0 0 0 b arrels p er d a y fr o m j ust 3, 0 0 0 b p d ﬁve ye ars a g o. C he a p l a n d is als o a f act or. “ Petr o Q uest E ner g y [ L af a yette] g ot t heir 2 5, 0 0 0 acres f or a b o ut $ 7 0 0 a n acre a n d M arat h o n Oil C or p. at less t h a n $ 9 0 0 p er acre,” s a ys Eric S mit h, ass oci ate direct or of t he Tul a ne E ner g y I nstit ute i n Ne w Orle a ns. “ The hi g hest price I’ve see n is $ 1, 0 0 0 a n acre. It’s still prett y c he a p a n d e as y t o get i nt o.” At Tul a ne, S mit h te ac hes e ner g y m ar kets, ec o n o mics a n d p olic y t o u n der gra d u ates a n d gra d u ate st u de nts. I n t he m aster’s pr o gra m, he te ac hes orie nt ati o n a n d e ner g y p olic y. A m o n g a h ost of ot her e n de av ors, his st u de nts e x a mi ne h o w dis -

C urr e ntl y, 5 7 w ell s ar e pr o d u ci n g fr o m t h e A u sti n C h al k i n L o ui si a n a. H U G HES EASTE R N C O RP

EOG R E S O U R C E S, I N C.

M A R TI N E A U P E T R O L E U M, I N C.

B UFF C O P R O D U C TI O N, I N C.

C REETA R E S O U R C E S, L L C

ZA RV O NA E N E R G Y, L L C

S OL A E NE R GY R E S O U R C E S, L L C

P E R DI D O E N E R G Y L O UI SI A N A, L L C T E X E G Y O P E R A TI N G C O M P A N Y, L L C

S O U R C E: L o ui si a n a D e p art m e nt of N at ur al R e s o ur c e s 1 0 1 2i n d u str yr e p ort. c o m

N E W S:

OI L & G A S

T R A CI N G T H E A U S TI N C H A L K T h e A u sti n C h al k h a s b e e n pr o d u ci n g oil a n d g a s si n c e at l e a st t h e e arl y 1 9 2 0 s a n d i s n o w e nj o yi n g a r e vi v al, t h a n k s t o m ulti st a g e fr a ct ur e sti m ul ati o n i n h ori z o n al w ell s. H er e’ s a l o o k at it s pr o d u cti o n hi st or y.

1958

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C o urt e s y A u sti n C h al k Oil G a s. c o m

r u ptive tec h n ol o gies c a n c h a n ge t he m ar ket — a n d f or t he A usti n C h al k, “ h ori z o nt al drilli n g a n d frac ki n g h ave bee n seri o us disr u pt ors,” S mit h s a ys. Thi s ti me ar o u n d c o m p a nies are usi n g a versi o n of frac ki n g tec h n ol o g y t h at di d n’t pre vi o usl y e xist a n d are m ai nt ai ni n g pr o d ucti o n f or l o n ger peri o ds of ti me. Ot her de vel o p ers i ncl u de E O G (f or merl y p art of E nr o n), w hic h h as a ne w h ori z o nt al pr o d ucti o n well i n t he e aster n p art of t he A usti n C h al k; C o n oc o P hil li ps, w hic h a n n o u nce d its e ntr y i nt o t he re gi o n i n A pril; a n d Wil d H orse Res o urce De vel o p me nt, w hic h br o u g ht f o ur A usti n C h al k wells o nli ne i n first q u arter 2 0 1 8. T HE E A S Y TA KE A W AY I n L o uisi a n a, t he A usti n C h al k esse nti all y f oll o ws t he s a me p at h as t he Tusc al o os a M ari ne S h ale s o ut h a n d e ast acr oss t he l o wer h alf of t he st ate, alt h o u g h at a s h all o wer de pt h. B ut it’s a “ di ffere nt a ni m al” fr o m T M S i n ot her w a ys. Pr o d ucers h a ve n’t fi g ure d o ut h o w t o frac k T M S e fficie ntl y, m a ki n g it di ffic ult t o kee p fiss ures o pe n. The ge ol o g y is m ore f or givi n g i n t he A usti n C h al k. “It’s a first c o usi n t o a s h ale pl a y,” S mit h s a ys. “ The y’ll use t he s a me b asic frac ki n g v ari a bles, b ut it’ll be a ki n der, ge ntler frac k.” I n t he pr ocess, t he y’ll b e a ble t o m ore s uccessf ull y s ust ai n t he frac t ures, t here b y o pe ni n g u p i nterstiti al p ore s p aces t o all o w t he oil t o fl o w a n d getti n g m ore pr o d ucti o n. 1 0 1 2i n d u str yr e p ort. c o m

The A usti n C h al k als o h as a si g ni ﬁc a nt a dv a nt a ge over t he wi del y p u blici z e d, b ut re m ote, Per mi a n B asi n i n West Te x as —t a ke a w a y c a p acit y. “ Getti n g t he oil t o t he s urf ace is m ore t h a n h alf t he b attle, b ut o nce y o u get it t o t he s urf ace a n d y o u pr ocess it, y o u nee d t o get it s o me w here t h at c a n use it, a n d West Te x as ai n’t it,” S mit h s a ys. “ A usti n C h al k pr ovi des a w a y t o p ut ri gs t o w or k i n a n are a t h at alre a d y h as a prett y e xte nsive i nfrastr uct ure pre-i nst alle d, i ncl u di n g a n e n or m o us a m o u nt of pi p eli nes a n d pr ocesses i nfrastr uct ure.” A meli a Res o urce’s B arrell s a ys m uc h of t he c urre nt w or k is c o n si dere d e x pl orat or y si nce t here h as b ee n mi ni m al pr o d ucti o n i n t he e aster n si de of t he A usti n C h al k t o a n y sc ale. “ E O G h as drille d o ne well a n d it h a d a ver y i m pressive i niti al test, s o t h at g ot p e o ple e xcite d,” he s a ys. Ne xt u p, C o n oc o P hilli ps pl a ns t o b e gi n drilli n g i n S e pte m b er i n E ast Felici a n a Paris h. Pr o d ucti o n c o ul d e xte n d f urt her t o t he s o ut he ast i n Livi n gst o n a n d St. Ta m m a n y p aris h es de p e n di n g u p o n t he oil’s m at ura ti o n a n d ge ol o gic al p ara meters. Give n t he c urre nt e x pl orat or y n at ure of t he w or k, pr o d ucti o n esti m ates w o ul d b e d u bi o us at b est u ntil wells are pr o d uci n g. C hris J o h n, presi de nt of t he L o uisi a n a Mi d- C o nti ne nt Oil & Gas Ass oci a ti o n, e x p ects t h at t he pr o d uct c o mi n g fr o m t he pl a y will b e “ ver y s weet, wit h a l ot of it g oi n g t o e x p ort. 1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

N E W S:

OI L & G A S Th at’s bec a use o ur re fi neries are ge are d t o re fi ne t he s o ur i m p orte d cr u de.” Petr ole u m c o nt ai ni n g hi g her le vels of s ulf ur is s o ur, w hile s weet cr u de oil c o nt ai ns s m all a m o u nts of h y dr o ge n s ul fi de a n d c ar b o n di o xi de. Hi g h- q u alit y, l o w-s ulf ur cr u de oil is c o m m o nl y use d f or pr ocessi n g i nt o g as oli ne a n d is i n hi g h de m a n d. “I w o ul d ass u me t h at m uc h of t he oil pr o d uce d i n t he A usti n is n ot g oi n g t o g o strai g ht t o t he re fi neries, a n d w o ul d be m ar kete d gl o b all y — at a pre mi u m.”

A u sti n C h al k Pl a y

F e br u ar y 2 0 1 8

L O UI SI A N A D E P A R T M E N T O F N A T U R A L R E S O U R C E S

S H O O TI N G FI S H I N A B A R R E L Hist or y is o n t he A usti n C h al k’s si de. “ There’s a l ot of e xisti n g d at a o ut t here a b o ut it,” J o h n s a ys. “ N ot t he 3 D v ariet y of d at a, b ut t here are a l ot of ol d well ﬁles fr o m ye ars p ast. Th at’s a n ot her g o o d re as o n y o u drill t hese l aterals. It’s li ke s h o oti n g ﬁs h i n a b arrel. Yo u j ust d o n’t drill a n y dr y wells i n s h ale.” The A usti n C h al k is a b ove t he T M S, a n d si nce t he 1 9 7 0s t here h ave bee n h u n dre ds of wells drille d t hr o u g h it, t here b y pr ovi di n g a v ast d at a set. L o uisi a n a D N R’s S O N RI S

E O G R e s o ur c e s, I n c. N e w Pr o d u ci n g W ell 1120 B O P D + 1157 M C F D S N 250209 C h e vr o n - S N 1 6 5 2 8 6 V erti c al A u sti n C h al k W ell C u m Pr o d: 2 9 1 M B O + 3 5 7 M M C F D; 1 9 8 0 t o 1 9 8 6

A C l ea r e r P a t h

I n a n u n pr e di ct a bl e b u si n e s s l a n d s c a p e, y o u n e e d a d e di c at e d t e a m t o h el p y o u s e e t h e f or e st f or t h e tr e e s.

W e o ﬀ er di v er s e

s er vi c e s t o g ui d e y o u al o n g t h e cl o u d e d p at h of c o m pl e x r e g ul ati o n s, e v er - c h a n gi n g t e c h n ol o g y a n d c o n st a ntl y e v ol vi n g pr a cti c e s – n e v er str a yi n g fr o m t h e b ott o m li n e t h at m a p s it all. a s s u ra n c e

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P o s t le t h w a it e & N e t t e r v ille , A P r o f e s s i o na l A c c o u n t in g C o r p o r a t i on

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

1 0 1 2i n d u str yr e p ort. c o m

NE U N I VERS IT Y LA

A c r e s of l a n d a n d w at e r i s o p e n i n t h e e m e r gi n g A u sti n C h al k Pl a y i n L o ui si a n a

E RI C S MI T H, a s s o ci at e dir e ct or, T ul a n e E n er g y I n stit ut e i n N e w Orl e a n s

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“It’ s a ﬁr st c o u si n t o a s h al e pl a y. T h e y’ll u s e t h e s a m e b a si c fr a c ki n g v ari a bl e s, b ut it’ll b e a ki n d er, g e ntl er fr a c k.”

PAU

C HRC BU LA

( Strate gic O nli ne Nat ural Res o urces I nf or m ati o n S yste m) pr ovi des d o w nl o a d a ble sc a n ne d well l o gs, a n d c o m merci al ve n d ors cle a n u p t he d at a t o m a ke it user-frie n dl y. W hile u ntil rece ntl y t he A usti n C h al k h as m a de ver y fe w w aves i n L o uisi a n a, t h at’s n ot t he c ase i n Te x as. There, Gi d di n gs Fiel d h as pr o d uce d a b o ut 1. 4 billi o n b arrels si nce t he a dve nt of h ori z o nt al drilli n g, a n d a b o ut t w o ye ars a g o E O G b e g a n frac ki n g i n K ar nes C o u nt y, Te x as, a n d g ot s o me i m pressive res ults. The n, i n J ul y 2 0 1 6, E O G e ntere d St. L a n dr y Paris h a n d sec ure d a b o ut 2 0 0, 0 0 0 acres. “ Th at’s w h at kic ke d o ﬀ t he L o uisi a n a activit y,” B arrell s a ys. “ M a n y c o nsi der t he m t he b est c o m p a n y i n t he b usi ness.”

A meli a Res o urces f oll o we d u p wit h a n e v al u ati o n of t he A usti n C h al k fr o m Te x as t o Mississi p pi, c o ncl u di n g t h at t he L o uisi a n a ge ol o g y i n t he Felici a n as l o o ke d as g o o d, if n ot b etter, t h a n Te x as. It b e g a n le asi n g s h ortl y t here after. “ Ever yt hi n g’s gre at u ntil s o meb o d y ﬁ n ds a tec h nic al st u m bli n g bl oc k, b ut n o o ne’s f o u n d o ne yet wit h t he A usti n C h al k,” s a ys Tul a ne’s S mit h. “ B ef ore, t he y di d n’t h ave h ori z o nt al drilli n g, frac ki n g a n d pr o p p a nts, a n d all of t hese ot her b ells a n d w histles. W hile t he y k ne w t he oil w as t here, t he y j ust c o ul d n’t get it o ut of t he de nse c h al k. N o w, t he y’ve s p e nt t he l ast 1 0 ye ars le ar ni n g h o w t o get oil o ut of t he Per mi a n B asi n a n d t he y t hi n k t he y c a n m o dif y t h ose frac ki n g tec h ni q ues t o m a ke it w or k.”

L M O G A’s J o h n is ecst atic a b o ut t he p ote nti al of t he f or m ati o n. After all, m a n y of t he m aj or pl a yers are his me m b er c o m p a nies. “ Thi s is t he m ost e xciti n g ne ws f or o ns h ore L o uisi a n a si nce H a y nesville,” he s a ys. “ We h ave b ee n ver y sl o w a n d d orm a nt o ns h ore f or a l o n g ti me, f or a l ot of re as o ns — ec o n o mics, l a ws uits, etc. — b ut t his is ver y e xciti n g.” A n d he pre dicts it w o n’t st o p t here. F ut ure a dv a nces i n frac ki n g tec h n ol o g y will li kel y m a ke ot her pl a ys m ore l ucrative, p artic ul arl y t he Tusc al o os a M ari ne S h ale. “It’s g oi n g t o b e t he s a me st or y f or t he T M S. It c o ul d b e 1 0 or 2 0 ye ars fr o m n o w, b ut s o me b o d y’s g oi n g t o s a y,‘ N o w we’ve g ot t he tec h n ol o g y. We k ne w it w as t here all al o n g, a n d we j ust h a d t o ﬁ g ure it o ut.’”

5 4. 9

MI L LI O N

C u m ul ati v e b a r r el s of oil p r o d u c e d i n t h e A u sti n C h al k i n L o ui si a n a

246

BI L LI O N

C u m ul ati v e c u bi c f e et of g a s p r o d u c e d i n t h e A u sti n C h al k i n L o ui si a n a

L o c all y O w n e d & O p er at e d N e w a n d R etr ofit s ol uti o n s f or a n y l ar g e t o s m all b u si n e s s a p pli c ati o n.

Pr o vi di n g t h e m o st effi ci e nt li g hti n g s ol uti o n s, E c o Lit e utili z e s t h e hi g h e st q u alit y c o m p o n e nt s a v ail a bl e i n t h e L E D li g hti n g i n d u str y. Wit h 2 0 + y e ar s of c o m bi n e d e x p eri e n c e a n d 5 5 0 0 e n er g y r etr ofit L E D li g hti n g pr oj e ct s, E c o Lit e g u ar a nt e e s r a z or e d g e d t e c h n ol o g y a n d a 1 0 y e ar i n c o m p ar a bl e w arr a nt y. E c o Lit e e n er g y a u dit pr o p o s al s ar e pr o vi d e d c o m pl e m e nt ar y t o d efi n e c o st- v s- s a vi n g s a d v a nt a g e s.

Fr e e E n er g y A u dit Pr o p o s al s 1 0 0 % N o O ut of P o c k et L e a si n g Pr o gr a m F a ct or y Dir e ct Pri ci n g G u ar a nt e e d E n er g y S a vi n g s I n s ur a n c e P oli c y R e b at e & T a x I n c e nti v e s St a n d ar d 1 0 Y E A R Pr o d u ct & L a b or W arr a nt y

T h e L E D Li g hti n g i n d ustr y’s o nl y 1 0 Y e ar N o n- Pr or at e d Pr o d u ct & L a b or W arr a nt y. I nf o @ E c o Lit ei nt er n ati o n al. c o m

E C O LI T E L E D. C O M

C O R P O R A T E O F FI C E S: B A T O N R O U G E, L O UI SI A N A.

1- 8 4 4- L E D- S W A P ( 5 3 3- 7 9 2 7)

H O U S T O N, T E X A S

- S K O O ML EK RA ST EA,T,I NN DI J A

E c o Lit e pr ot e cti o n pl a n s ar e a d mi ni st er e d b y B a n k er s W arr a nt y Gr o u p, I n c., B W G Pr ot e cti o n Pl a n s I n c., B a n k er s W arr a nt y Gr o u p of a n d/ or B a n k er s W arr a nt y Gr o u p of Fl ori d a, I n c. 1 1 1 0 1 R o o s e v elt Bl v d. N., St. P et er s b ur g, F L 3 3 7 1 6

1 0 1 2i n d u str yr e p ort. c o m

O kl a h o m a, I n c.,

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

N E W S: I N S P E C TI O N S

IST O C K

LI K E B O Y S C O U T S: W h at e v er t h e r e a s o n O S H A vi sit s, it’ s i m p ort a nt t o b e pr e p ar e d — p arti c ul arl y if y o u’r e a s m all t o mi d- si z e d c o m p a n y t h at mi g ht n ot h a v e d e di c at e d p er s o n n el t o h a n dl e a s af et y pr o gr a m a n d it s d o c u m e nt ati o n.

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

1 0 1 2i n d u str yr e p ort. c o m

OS H A

W H Y O S H A MI G H T P A Y Y O U A VI SI T

p a yi n g a vi sit ?

Ri g ht or C o b b, o w n er of P B M Tr ai ni n g S er vi c e s a n d a n i n d e p e n d e nt c o ntr a ct or f or t h e Alli a n c e S af et y C o u n cil i n B at o n R o u g e, s a y s t h er e ar e a h o st of r e a s o n s O S H A mi g ht s h o w u p at y o ur sit e. T h e y u s u all y f all i n o n e of t h e f oll o wi n g c at e g ori e s:

H er e’ s w h at y o u n e e d t o k n o w.

B Y S A M B A R N ES

C o ns ult ati o n Pr o gra m o ffers free a n d c o n fi de nti al a dvice t o s m all a n d me di u m-si z e d b usi nesses i n e ver y st ate, wit h pri orit y give n t o hi g h- h a z ar d w or ksites. O n-site c o ns ult ati o n ser vices are se p arate fr o m e nf orce me nt a n d d o n ot res ult i n p e n alties or cit ati o ns. The a ge nc y als o c oll a b orates wit h l oc al i n d ustr y gr o u ps. I n M a y, O S H A f or me d a n alli a nce wit h t he Gre ater B at o n R o u ge I n d ustr y Alli a nce a n d t he L o uisi a n a C he mic al Ass oci ati o n t o pr ovi de t heir me m b ers wit h i nf or m ati o n, g ui d a nce a n d access t o trai ni n g res o urces. Wa y ne S mit h, re gi o n al s afet y m a n a ger f or a m aj or p etr oc he mi c al pl a nt i n L a ke C h arles, s a ys his s afet y p ers o n nel atte n d re gi o n al a n d n ati o n al Vol u nt ar y Pr otec ti o n Pr o gra m w or ks h o ps t o kee p u p t o d ate o n t he l atest re g ul a ti o ns. “It gives y o u a g o o d i nsi g ht i nt o w h at’s g oi n g o n. A n d O S H A als o p uts o ut a l ot of p u blic ati o ns a b o ut w h at t he y’re fi n di n g a n d t heir t o p 1 0 vi ol ati o ns f or t he pre vi o us ye ar.”

IST O C K

here are l ots of re a s o ns f or O S H A t o c o me k n oc ki n g at y o ur d o or, b ut n o ne are p artic ul arl y ple as a nt. The ﬁ n a nci all y a n d m a n p o wer-stra p pe d a ge nc y t y pic all y arra n ges its visits b ase d u p o n a hi g her-t h a n- n or m al i nci de nt rate, acci de nt a n d / or de at h, c o m pl ai nt, or p erceive d i m mi ne nt d a n ger. W h ate ver t he c ase, it’s i m p ort a nt f or a c o m p a n y t o b e pre p are d. Thi s is es peci all y tr ue f or t he s m all t o mi d-si z e d c o m p a n y t h at mi g ht n ot necess aril y h ave de dic ate d pers o n nel t o h a n dle a s afet y pr o gra m a n d its ass oci ate d d oc u me nt ati o n. O S H A’s p ur p ose is n ot merel y t o p u nis h wr o n g d oers —t h o u g h s o meti mes necess ar y — b ut als o t o pr o m ote s afer w or ksites. As s uc h, t he y pr ovi de res o urces o n t heir we bsite ( os h a. g ov /e m pl o yers /i n de x. ht ml) t h at e n a ble a n e m pl o yer t o st a y a bre ast of t he l atest i n re g ul ati o ns as well as pre p are f or a n i ns p ecti o n. A d diti o n all y, O S H A’s O n- Site

‘ A D A U N TI N G T A S K’: St a yi n g o n t o p of t h e l at e st it er ati o n s of O S H A p oli c y — al o n g wit h t h e v ol u mi n o u s a m o u nt of d o c u m e nt ati o n —i s a c h all e n g e.

1 0 1 2i n d u str yr e p ort. c o m

Still, st a yi n g o n t o p of t he l atest iterati o ns of O S H A p olic y, al o n g wit h t he v ol u mi n o us a m o u nt of d oc u me nt ati o n, c a n b e a d a u nti n g t as k. F ort u n atel y, S mit h a n d ot her s afet y pr ofessi o n als s a y, t here are s o me ste ps a n e m pl o yer of a n y si z e c a n t a ke t o e ns ure a n i ns p ecti o n g o es s m o ot hl y, re g ar dless of t he circ u mst a nces. A B O V E A L L E L S E, G E T Y O U R D O C U M E N T A TI O N I N O R D E R. It s o u n ds si m ple — b ut al w a ys b e pre p are d. If y o u’ve g ot y o ur h o use i n or der, c a n a ns wer q ues ti o ns a n d pr ovi de d oc u me nt ati o n, i ns p ecti o ns will g o m ore s m o ot hl y a n d h ave a b etter o utc o me. Ir o nic all y, t h ose pl a nts t h at h ave hist oric all y l o w i nci de nt rates a n d are “ fl yi n g u n der t he ra d ar” are less li kel y t o h ave t heir p a p er w or k or g a ni z e d. “It pr o b a bl y h as less t o d o wit h si z e a n d m ore t o d o wit h t he fre q ue nc y of t h at i nteracti o n [ wit h O S H A],” S mit h s a ys. Ri g htl y or wr o n gl y, if y o u give t he i m pressi o n t h at y o u’re u n or g a ni z e d, it’s fertile gr o u n d f or t he i ns p ecti o n t o g o dee p er. “ Yo u al w a ys nee d t o b e re a d y f or a n i ns p ecti o n,” he a d ds. “ All of y o ur trai ni n g rec or ds, i nj ur y l o gs a n d i nci de nt i nvesti g ati o ns — all t h at st u ff nee ds t o b e or g a ni z e d a n d re a dil y retrie v a ble.” E m pl o yers s h o ul d h ave a c ur re nt c o p y of t he O S H A st a n d ar ds t h at are a p plic a ble t o t he m, as well as a n y ot her st a n d ar ds s uc h as A N SI ( A meric a n Nati o n al St a n d ar ds I nstit ute). “ Th at’s b e c a use n o o ne c a n re me m b er all of t h at,” S mit h s a ys. “I’ve b ee n d oi n g t his f or 2 9 ye ars a n d s o meti mes I still h ave t o gra b t he b o o k.” A d a m B e ar y, presi de nt a n d C E O of s afet y m a n a ge me nt s ol uti o ns fir m B e ar Pr ocess S afet y i n B at o n R o u ge, s a ys p e o ple get

I m mi n e nt d a n g er

W h e n O S H A h a s k n o wl e d g e t h at a n i n ci d e nt i s a b o ut t o h a p p e n, or c o ul d h a p p e n, a n d m u st a ct q ui c kl y. T hi s c a n b e tri g g er e d i n a v ari et y of w a y s. “ T h e y c o ul d s e e a p h ot o gr a p h of a h a z ar d o u s c o n diti o n i n a n e w s p a p er, or a p ot e nti al d a n g er i s n oti c e d b y a p a s s er b y, et c. T h at w o ul d gi v e O S H A j uri s di cti o n t o vi sit t h at sit e. ”

F at alit y

E m pl o y er s ar e r e q uir e d t o r e p ort a f at alit y wit hi n ei g ht h o ur s, t h e n O S H A has u p t o ﬁve days t o r e s p o n d. H o w e v er, t h e a g e n c y i s n ot r e q uir e d t o pr o vi d e a d v a n c e n oti c e a s t o t h e pr e ci s e d a y a n d ti m e of arri v al.

E m pl o y e e c o m pl ai nt

Eit h er a f or m al or i nf or m al c o m pl ai nt.

R ef err al

Tri g g er e d b y a n i nj ur y t h at r e q uir e d h o s pit ali z ati o n. T hi s i s r e p ort a bl e t o t h e O S H A of ﬁ c e wit hi n 2 4 h o ur s fr o m t h e ti m e t h e e m pl o y e e i s a d mitt e d t o t h e h o s pit al. R ef err al s c o ul d al s o c o m e fr o m ot h er f e d er al a g e n ci e s — E n vir o n m e nt al Pr ot e cti o n A g e n c y, C o a st G u ar d, et c. —t h at n oti c e a p ot e nti al h a z ar d.

Pr o gr a m m e d i n s p e cti o n

Ty pi c all y b a s e d u p o n i nj ur y/ ill n e s s d at a pr o vi d e d b y t h e U. S. B ur e a u of L a b or St ati s ti c s. “ O S H A c a n i d e ntif y w hi c h i n d u str y h a s t h e hi g h e st r at e s of i nj ur y/ill n e s s a n d cr e at e a pr o gr a m m e d i n s p e cti o n. T h e y mi g ht t ar g et a gr ai n el e v at or or a n i n d u str y wit h a l ot of n oi s e. T h e y mi g ht t ar g et a f or klift. ” T h e s e ar e t y pi c all y r e gi o n al i n s p e cti o n s d et er mi n e d b y u ni q u e l o c al f a ct or s.

F oll o w- u p

A s t h e n a m e i m pli e s, t hi s i s n e c e s s ar y t o d et er mi n e if t h e pl a nt or o w n er h a s c o m pli e d wit h pr e vi o u s cit ati o n s. “ O n c e y o u’ v e h a d a vi sit, t h e y gi v e y o u a n all ott e d ti m e t o ﬁ x vi ol ati o n s, a n d t h e n t h e y c o n d u ct a f oll o w- u p i n s p e cti o n, ” C o b b s a y s. “ T h o s e pl a c e s t h at ar e pr ett y s e v er e ar e pr o b a bl y g oi n g t o h a v e a f oll o w- u p i n s p e cti o n wit hi n ﬁ v e y e ar s. T h at’ s O S H A’ s c ut- off d at e f or a n i n s p e cti o n. ”

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

“ di n ge d” m ost ofte n f or p o orl y m ai nt ai ne d d oc u me nt ati o n. B e ar Pr ocess S afet y is t he ne west te n a nt at t he L o uisi a n a B usi ness a n d Tec h n ol o g y Ce nter at L S U I n n ov ati o n Par k i n B at o n R o u ge, a n d a m o n g ot her t hi n gs pr ovi des a u diti n g ser vices t o deter mi ne if c o m p a nies are i n li ne wit h O S H A st a n d ar ds. “If y o u’re pre p ari n g f or a n i ns p ecti o n a n d w a nt t o m a ke y o ur pr o gra m t o p- n otc h, de vel o p a c o nsiste nt d oc u me nt ati o n pr ot oc ol,” B e ar y a d ds. “ Be c o nsiste nt acr oss t he site, a n d de pe n di n g u p o n y o ur c or p orate str uct ure, be c o nsiste nt c o m p a n ywi de.” He e nc o ura ges t he use of a n o utsi de c o ns ult a nt if a n o w ner is u n a ble t o de dic ate a de q u ate i nter n al res o urces t o m a n a gi n g its d oc u me nt ati o n. Tec h n ol o g y is als o hel pi n g i n s o me res pects. “ There are a c o u ple of c o m p a nies de vel o pi n g tec h n ol o g y i n ter ms of d at a b ases, a n d h o w t o i nterc o n nect all t h ose d at a b ases t o get her. Th ose t h at h ave m a de t he best stri des h ave bee n t h ose usi n g av ail a ble s oft w are.” O ne n ote of c a uti o n —i n rece nt ye ars t here h ave bee n c o n flicti n g a p plic a bilit y i nter pret ati o ns over O S H A st a n d ar ds. Be ar y s u g gests h avi n g d oc u me nt ati o n t h at t h or o u g hl y e x pl ai ns w hic h O S H A st a n d ar ds are a p plic a ble t o a site a n d w hic h are n ot. “ Yo u d o n’t w a nt a sit u ati o n w here a n i ns p ect or s a ys,‘I t hi n k t his is a p plic a ble’ b ut y o u d o n’t h ave d oc u me nt ati o n t o pr ove it’s n ot. I n t h at c ase, y o u w o ul d h ave n o s afet y d oc u me nt ati o n f or t h at p artic ul ar secti o n of t he pl a nt.” D E V E L O P A C O M P R E H E N SI V E I N S P E C TI O N P R O C E D U R E. N o m atter t he si z e of t he or g a ni z ati o n, a c o m p a n y a n d / or pl a nt s h o ul d de vel o p a n d fi ne t u ne its a u dit pr oce d ures a n d trai n all a p pli c a ble pers o n nel o n t he pr ocess. “ W he n O S H A s h o ws u p, e ver yo ne s h o ul d k n o w w h o is g oi n g t o meet wit h t he m a n d b e t he p oi nt of c o nt act d uri n g t h at visit,” S mit h s a ys. “ At e ac h pl a nt t here s h o ul d be s o me o ne desi g n ate d t o h a n dle a n i ns pecti o n, or le a d a n d assist i ns pect ors. It s h o ul d b e s o me o ne k n o wle d ge a ble. “ Th ose f ol ks nee d s o me s p eci fic trai ni n g a n d k n o w- h o w t o ass oci ate wit h t he i ns pect ors.” W hile t he y 38

IST O C K

N E W S: I N S P E C TI O N S

A V OI D T H E C O N F LI C T: It’ s i m p ort a nt t o h a v e d o c u m e nt ati o n e x pl ai ni n g w hi c h O S H A st a n d ar d s ar e a p pli c a bl e t o a sit e a n d w hi c h ar e n ot.

s h o ul d b e h o nest, c or di al a n d f ort hc o mi n g, t he y als o nee d t o k n o w h o w t o pr otect t he c o m p a n y’s ri g hts. PE RF O R M Y O U R O W N I N T E R N A L A U DI T. Re g ul ar i nter n al a u diti n g of a c o m p a n y’s s afet y pr o gra m c a n b e a critic al ﬁrst li ne of defe nse. Thr o u g h t he A meric a n C he mistr y C o u ncil’s Res p o nsi ble C are pr o gra m, B e ar y assists c o m p a nies wit h p erf or mi n g i nter n al a u dits t o wee d o ut pr o ble m are as. Partici p ati n g c o m p a nies are c o m mitte d t o o p e n a n d tra ns p are nt re p orti n g a n d u n der g o m a n d at or y he a d q u arters a n d f acilit y a u dits t o certif y t heir p erf or m a nce. “It’s a n i nter n al a u diti n g s yste m t h at pre p ares t he m f or a n y t y p e of i ns p ecti o n,” B e ar y s a ys. “ Res p o nsi ble C are is a b ove a n d b e y o n d O S H A b ec a use it i nc or p orates y o ur i nter n al st a n d ar ds a n d d oc u me nts as well. It’s ki n d of a m oc k a u dit, t o b e a ble t o c o me i n a n d s a y,‘ Here’s w here we n otice y o ur de ﬁcie ncies. Thi s is w h at we c a n see c o ul d b e a re al iss ue.’” A n e nvir o n me nt al, he alt h, s afet y a n d sec urit y p erf or m a nce i niti a tive, Res p o nsi ble C are h as hel p e d

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

me m b er c o m p a nies e n h a nce t heir p erf or m a nce a n d i m pr ove t he he alt h a n d s afet y of t heir e m pl o yees, t he c o m m u nities i n w hic h t he y o p erate a n d t he e nvir o n me nt as a w h ole. W H A T T O D O O N I N S P E C TI O N D A Y. Wit h a n a n n u al fe deral b u d get of less t h a n $ 9 0 0 milli o n a ye ar a n d fe wer t h a n 3, 0 0 0 e m pl o yees n ati o n wi de, O S H A is res p o nsi ble f or a p pr o xi m atel y 7 milli o n w or k sites. A n d i n L o uisi a n a, O S H A’s B at o n R o u ge o ffice is res p o nsi ble f or t he e ntire st ate. Thi s c a n m a ke t he ti m i n g of a n i ns p ecti o n u n pre dict a ble. If a de q u ate w or kf orce is av ail a ble, O S H A will m atc h a c o m pli a nce o fficer t o a p artic ul ar i n d ustr y, t he n t y pic all y se n d a si n gle i ns p ect or t o p erf or m t he e ntiret y of t he pr ocess. The le n gt h of a n a u dit c a n als o v ar y si g ni fic a ntl y. “I’ve h a d O S H A i ns p ecti o ns t h at l aste d j ust t w o h o urs,” s a ys Ri g ht or C o b b, o w ner of P B M Trai ni n g S er vices a n d a n i n de p e n de nt c o ntract or f or t he Alli a nce S afet y C o u ncil i n B at o n R o u ge. “ The n, I’ve h a d s o me t h at l aste d a wee k. It t o o k t he m t h at l o n g t o g at her i nf or m ati o n, or t o p erf or m

a d diti o n al testi n g o n f u mes or v a p or, c hec k c he mic als, me as ure n oise, etc. I n e xtre me c ases, we’ve h a d O S H A visits t h at l aste d over t w o ye ars.” O nce at t he site, t he O S H A c o m pli a nce s afet y a n d he alt h o ﬃcer ( C S H O) h as a pr ot oc ol t o f oll o w, writes Da n J o h ns o n, m a n a gi n g p art ner of S FI C o m pli a nce I nc. i n De nver, i n a rece nt iss ue of E H S To d a y . “ Thi s i ncl u des c hec ki n g i n a n d o bt ai ni n g per missi o n t o c o n d uct t he i ns pecti o n. M a ke s ure y o ur rece pti o nist k n o ws w h o m t o c o nt act w he n O S H A arrives. It is best t o get a s u per vis or or m a n a ger pres e nt as s o o n as p ossi ble t o greet t he C S H O.” After verif yi n g t he C S H O’s cre de nti als, deter mi ne w h y t he C S H O w a nts t o i ns pect y o ur w or k pl ace. “ Tell t he C S H O t h at it is y o ur c o m p a n y p olic y t o c o nt act y o ur m a n a ge me nt pri or t o st arti n g t he i ns pecti o n,” J o h ns o n writes. “ At t his p oi nt, y o u h ave n ot give n t he C S H O per missi o n t o i ns pect y o ur w or k pl ace, s o he or s he s h o ul d w ait u ntil t he pr o per m a n a gers arrive.” Fr o m t here, t he i ns pect or f oll o ws a t hree-ste p pr ocess: 1 0 1 2i n d u str yr e p ort. c o m

I s s u e D at e: 1/ 2/ 1 8 A d pr o of # 1

• Ple ase res po n d by e- m ail or f ax wit h yo ur a p prov al or mi nor revisio ns. • A D WILL R U N A S I S u nless a p prov al or ﬁ n al revisio ns are receive d by t he close of b usi ness to d ay. • A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees. C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 6. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

IST O C K

• O p e ni n g C o nf er e n c e: Thi s is a f or u m f or disc ussi n g t he re as o ns f or t he i ns pecti o n, sc o p e, ri g hts a n d res p o nsi bilities. As s uc h, be s ure t o t a ke det aile d n otes of e ver yt hi n g disc usse d. “ De p e n d i n g u p o n t he t y p e of i ns p ecti o n, t he y’re n or m all y g oi n g t o re q uest writte n d oc u me nts at t his ti me, s uc h as trai ni n g rec or ds, pr oced ures, etc.” C o b b s a ys. Thr o u g h it all, t he o w ner’s re prese nt ative s h o ul d act i n a pr ofessi o n al, b usi nessli ke m a n ner. “If m ore t h a n o ne C S H O is

T H E W A L K - A R O U N D: A n e m pl o y er e s c ort s h o ul d a c c o m p a n y t h e i n s p e ct or t hr o u g h o ut t h e pr o c e s s.

g oi n g t o i ns pect, ﬁ n d o ut if t he y pl a n t o m a ke t he i ns p ecti o n i n o ne gr o u p or s plit i nt o t w o or m ore gr o u ps,” J o h ns o n writes i n E H S To d ay . “If t he y w a nt t o divi de i nt o t w o or m ore gr o u ps, tell t he C S H O y o u re q uire a n e mpl o yer re prese nt ative wit h e ac h gr o u p.” Als o, i nf or m t he C S H O t h at y o u will be t a ki n g n otes of all t he s us pecte d vi ol ati o ns s o t h at t here will be n o dis p ute. • W al k- ar o u n d: Ne xt, t he i ns pect or will e nter t he w or k site f or a “ w al k- ar o u n d.” Thr o u g h o ut t he pr ocess, t he y s h o ul d h ave a n e m pl o yer esc ort. If t he i ns pecti o n f oll o ws a n acci de nt or f at alit y, C o b b s a ys, t he y’ll w a nt t o g o t o t he sce ne of t he i nci de nt. Re g ar dless of t he re as o n f or t he visit, t he y’re g oi n g t o c o m p are writte n d oc u me nts fr o m t he o pe ni n g c o nfere nce wit h w h at t he y see a n d he ar. If t here is a pr oce d ure descri b e d i n t he o pe ni n g c o nfere nce, t he y will w a nt t o see h o w t h at pr oce d ure 1 0 1 2i n d u str yr e p ort. c o m

is b ei n g i m ple me nte d i n t he fiel d. “ O ne of t he bi g gest t o ols i n t heir b a g ( d uri n g t he w al kar o u n d) is t he e m pl o yee i nter vie w,” C o b b s a ys. “ Th ose are priv ate i nter vie ws b et wee n t he e m pl o yee a n d t he c o m pli a nce of ficer. The e m pl o yer is n ot all o we d t o i nterfere i n a n y w a y.” D uri n g t his p art of t he i ns p ecti o n, t he C S H O will g at her e vi de nce f or a cit ati o n, if necess ar y. “If t he C S H O as ks q uesti o ns a b o ut iss ues rel ate d t o w or k t h at is b ei n g p erf or me d b y a s u bc o ntract or, refer t h ose q uesti o ns t o t he s u bc o ntract or’s c o m p ete nt p ers o n,” J o h ns o n writes. “ Ta ke det aile d n otes of e ver yt hi n g see n, disc usse d a n d d o ne b y t he C S H O, a n d t a ke p h ot o gra p hs of e ver yt hi n g t he C S H O p h ot o gra p hs.” Al o n g t he w a y, h o nest y is i m p erative. “It c o ul d b e a ver y c as u al c o nvers a ti o n, b ut if y o u tell t he m s o met hi n g i nte n di n g t o misle a d t he m, t he n t h at c a n b ec o me a n a d diti o n al pr o ble m,” C o b b s a ys. F urt her m ore, if y o u d o n ot u n derst a n d e ver yt hi n g t he i ns p ect or s a ys, as k q uesti o ns. I nsist o n h avi n g ti me t o rec or d all f acts, e ve n if it sl o ws d o w n t he i ns p ecti o n. • Cl o si n g C o nf er e n c e: At t his st a ge, t he i ns p ect or will ret ur n t o t he desi g n ate d o ffice l oc ati o n t o e x pl ai n a n y c o ncer ns t o t he o w n er’s re prese nt ative, t y pic all y o n t he s a me d a y as t he i ns p ecti o n. D uri n g t his pr ocess, it is i m p ort a nt t o t a ke n otes of e ver yt hi n g disc usse d, rec or d w h at d oc u me nts were distri b ute d a n d m a ke s ure all q uesti o ns are a ns were d. It is i m p ort a nt t h at y o u n ot give t he i ns p ect or a n y es ti m ate of a b ate me nt ti me d uri n g t he cl osi n g c o nfere nce. B ac k at t he O S H A o ffice, t he i ns p ect or will re vie w t he det ails of t he c ase wit h t heir s u p er vis or t o e ns ure t he cit ati o ns are b ase d o n f acts. The cit ati o n(s) will arrive at y o ur o ffice b y m ail n o m ore t h a n si x m o nt hs f oll o wi n g t he i ns p ecti o n.

as a t e a m

co m pe te as a t e a m

T H RI V E as a t e a m

. c o m p e t e. T H RI V E. H T B i s m u c h m o r e t h a n a t e a m of C P A s.

W e ar e

a t r u st w o r t h y, s ol u ti o n s - d ri v e n b u si n e s s a d vi s o r wi t h n e a rl y 1 0 0 y e a r s of v al u a bl e e x p e ri e n c e a n d i n si g h t. L e t u s p a r t n e r wi t h y o u t o m e e t t o d a y’ s c o m pli c at e d b u si n e s s c h all e n g e s a n d h el p y o u r c o m p a n y r e a c h i t s m a xi m u m p o t e n ti al.

B A T O N

R O U G E /

D E N H A M

S P RI N G S /

N E W

O R L E A N S

w w w. h t b c p a. c o m 1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

N E W S:

S AFE TY

A b ett e r ﬁt A B at o n R o u g e c o m p a n y s p ot s a n o p p ort u nit y f or ﬁr e-r e si st a nt w o m e n’ s w or k w e ar. B Y M A G GI E H E Y N RI C H A R D S O N

D O N K A D AI R

n 2 0 1 0, Jai me Gl as w as i n t he mi dst of a petr ole u m e n gi neeri n g i nter ns hi p wit h C he vr o n i n Ba kers fiel d, C alif or ni a, w he n a pes k y w or k pl ace c h alle n ge pl a nte d t he see d f or a b usi ness i de a. Gl as, t he n a n L S U e n gi neeri n g st u de nt, w as le ar ni n g t he r o pes of a d o mestic drilli n g o perati o n at C he vr o n’s Ba kers fiel d site. M uc h of her w or k t o o k pl ace i n a n o ffice, b ut bec a use s he w as ar o u n d o ut d o or drills i n t he Ker n River Oil Fiel d, s he h a d t o als o d o n re g ul ati o n s afet y ge ar. I n f act, t he U. S. Occ u p ati o n al S afet y a n d He alt h A d mi nistrati o n h a d b y t he n e x p a n de d re g ul ati o ns c o ncer ni n g F R Cs, or fire-resist a nt cl ot hi n g. The ne w re q uire me nt m a n d ate d t h at all pers o n nel i nv olve d i n oil a n d g as well drilli n g, ser vici n g a n d pr o d ucti o n-rel ate d o perati o ns we ar F R Cs o n t he j o b, a n d t h at i ncl u de d Gl as. Gl as re q ueste d t he o nl y si ze t h at c a me cl ose t o her fra me, a me n’s e xtra s m all. W he n o ne w as n’t av ail a ble, s he w as iss ue d t he o nl y re m ai ni n g o p ti o n: a me n’s e xtra l ar ge. “ The le gs were li ke cl o w n p a nts,” s a ys Gl as, w h o is 5-f o ot- 3 a n d 1 0 5 p o u n ds. “ The y were a n yt hi n g b ut s afe, a n d I re me m ber telli n g m y m ot her t h at ni g ht o n t he p h o ne,‘ There’s g ot t o be a better o pti o n f or w o me n.’ ” Th at o pti o n ne ver c a me. Eve n after Gl as be g a n w or ki n g as a f ull-ti me e n gi neer a n d h a d access t o s m aller si zes of re g ul ati o n F R Cs, s he still f o u n d t he m u nc o mf ort a ble a n d ill- fitti n g. “ Eve n w he n y o u c o ul d get t he m s m all, t he y were c ut t o fit me n, n ot w o me n,” s he s a ys. “I n a fiel d w here w o me n j ust w a nt t o d o t heir j o b a n d wit h o ut distracti o n, it w o ul d h ave bee n nice t o be c o mf ort a ble i n w h at y o u h ave t o we ar.”

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

“ T h er e i s n o r e a s o n w hy wo me n s h o ul d n’t b e a bl e t o w e ar s o m et hi n g s af e t h at al s o l o o k s a n d f e el s g o o d.” J AI M E G L A S, f o u n d er, H a ut e W or k 1 0 1 2i n d u str yr e p ort. c o m

C O U RTE S Y H A UTE W O R K

1 0 1 2i n d u str yr e p ort. c o m

w o me n, i ncl u di n g si x re g ul ar a n d f o ur pl us, or c ur v y, si zes. The y are 1 0 0 % A meric a n- m a de, Gl as s a ys, a n d meet t he st a n d ar ds of C ate g or y 2 Pers o n al Pr otecti o n E q ui p me nt, or P P E. “ O ur m ai n driver is t o cre ate s afe cl ot hi n g t h at fits w o me n i n a w a y t h at m a kes t he m feel c o mf ort a ble o n t he j o b,” Gl as s a ys. “ There is n o re as o n w h y w o me n s h o ul d n’t be a ble t o we ar s o met hi n g s afe t h at als o l o o ks a n d feels g o o d. It’ll o nl y i ncre ase t heir pr o d uctivit y.” E arlier t his ye ar, Gl as si g ne d o n t o w or k wit h t he L o uisi a n a B usi ness a n d Tec h n ol o g y Ce nter, t he s m all b usi ness i nc u b at or i n t he L S U I n n ov ati o n Par k. S he’s hire d a c o u ple of e m pl o yees a n d h as li ne d u p de als wit h at le ast five c o m p a nies t o o ut fit t heir fe m ale w or kers. Det ails li ke c ol or a n d pl ace me nt of p oc kets c a n be t we a ke d f or e ac h site. Gl as is als o selli n g t he cl ot hi n g t hr o u g h direct o nli ne s ales a n d t hr o u g h grassr o ots me a ns, i ncl u di n g tr u n k s h o ws i n H o ust o n a n d ot her pl aces t h at fe at ure l ar ge n u m bers of w o me n w h o nee d w or k pl ace F R Cs. J ust li ke m ai nstre a m cl ot hi n g tr u n k s h o ws, H a ute Wor k’s will t a ke pl ace i n h o mes of willi n g w o me n, at b ars a n d ot her l oc ati o ns.

C O U RTE S Y H A UTE W O R K

The m ar ket see me d ri pe f or a n F R C m a n uf act urer s peci ali zi n g i n w o me n’s c overalls, s hirts, p a nts a n d ot her ite ms, belie ve d Gl as. After all, ot her fiel ds — p artic ul arl y me di ci ne — h a d see n t heir w or k pl ace cl ot hi n g a dj ust wit h better ge n der b al a nce. “ There are a b o ut 3 0 0, 0 0 0 w o me n n o w i n t he U. S. w or ki n g i n u pstre a m oil a n d g as, a n d all of t he m h ave at le ast o ne p air of F R Cs,” Gl as s a ys. “ A n d a b o ut 1 0 % of t he m h ave t o we ar F R Cs e ver y d a y.” I n her s p are ti me, Gl as be g a n rese arc hi n g s afet y c o des f or cl ot hi n g a n d h o w a c o m p a n y w o ul d be gi n t o m a n uf act ure re g ul ati o n ite ms f or w o me n. S he b o u g ht c o de b o o ks a n d le ar ne d t he i ns a n d o uts of O S H A st a n d ar ds. S he rese arc he d m a n uf act urers a n d s he met wit h p atter n m a kers. S he n a me d t he ve nt ure a n d s q uirrele d a w a y s avi n gs t o fi n a nce it. After w or ki n g o n t he c o nce pt after h o urs f or a fe w ye ars, Gl as q uit her j o b l ast f all a n d l a u nc he d a ne w c o m p a n y s peci ali zi n g i n t he F R Cs desi g ne d f or w o me n. The c o m p a n y, n o w n a me d Ha ute Wor k, o ffers ni ne pr o d ucts, i ncl u di n g c overalls, overalls, s hirts a n d p a nts i n se veral di ffere nt c ol ors. The cl ot hi n g c o mes i n 1 0 si zes f or

Bet wee n Ja n u ar y of t his ye ar, w he n s he o ffici all y l a u nc he d, a n d A pril, Gl as s ol d 6 0 0 u nits, wit h s ales d o u bli n g e ac h m o nt h. Her m a n uf ac t uri n g pr ocess, w hic h s he est a blis he d t hr o u g h tri al a n d err or t hr o u g h o ut 2 0 1 7, i ncl u des w or ki n g wit h a n Al a b a m a m a n uf act urer t h at pr o d uc es g ar me nts i n a 7 2- h o ur wi n d o w. Th at me a ns H a ute Wor k h ol ds n o i nve nt or y. W hile Gl as see ms well o n her w a y, getti n g t o t his p oi nt h as n’t bee n e as y. “ Thi s h as bee n a bi g ger c h alle n ge t h a n a n yt hi n g I’ve e ver d o ne,” s a ys Gl as, 2 9. “ There’s n ot a te xt b o o k f or t his, a n d it’s bee n a ver y bi g c h alle n ge e ver y ste p of t he w a y.” O ne c h alle n ge c a me i n n a mi n g t he c o m p a n y. Gl as ori gi n all y c alle d t he ve nt ure H ot St u ff S afet y We ar, b ut f o u n d it m a de s o me pe o ple u nc o mf ort a ble. Wo me n str u g gli n g t o est a blis h a ge nc y i n a fiel d of e n gi neeri n g fir ml y d o mi n ate d b y me n d o n’t w a nt t o be si n gle d o ut f or we ari n g

s afet y ge ar n a me d H ot St u ff, des pite its fire-ret ar d a nt d o u ble e nte n dre. M ore over, a m ale e xec utive s u g geste d t o Gl as t h at he w as u nc o mf ort a ble rec o m me n di n g s afet y we ar t o fe m ale e m pl o yees t h at w as c alle d H ot St u ff. “ After t hi n ki n g a b o ut it, I di d n’t re all y t hi n k t he pr o ble m w as g oi n g t o g o a w a y,” Gl as s a ys. “It w as o ne of t he iss ues t h at I disc usse d wit h a dvis ors at L B T C a n d we deci de d t he ri g ht m ove w as t o c h a n ge t he n a me.” H ot St u ff bec a me Ha ute Wor k i n Ma y. Gl as h as bee n a p pr o ac he d se veral ti mes a b o ut p art neri n g wit h l ar ger fire-resist a nt cl ot hi n g m a n uf act ur ers, b ut s o f ar, s he’s hel d o ff. The c o m p a n y re m ai ns self- fi n a nce d. Gl as s a ys s he h as se veral ot her i de as s he w a nts t o bri n g t o t he m ar ket pl ace, i ncl u di n g a li ne of F R Cs f or pre gn a nt w o me n. “ N ot hi n g h as re all y bee n d o ne i n t his fiel d,” Gl as s a ys. “ S o t here are l ots of o p p ort u nities.”

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N E W S:

E N VI R O N M E N T A L

A b o v e a n d b e y o n d:

E n vi r o n m e nt al i nt e g rit y

B Y S A M B A R N ES

T h e g e n er al p u bli c d o e s n ot t y pi c all y a s s o ci at e t h e p etr o c h e mi c al i n d u str y wit h e n vir o n m e nt al mi n df ul n e s s. O n t h e c o ntr ar y, m u c h of t h e d e s cri pti v e l a n g u a g e t h e s e d a y s p ortr a y s i n d u str y a s h a vi n g a r e c kl e s s di sr e g ar d f or it s e c ol o gi c al s etti n g. T o di s p el t h e s e mi s c o n c e pti o n s, s o m e o w n er s h a v e m a d e it t h eir mi s si o n t o e x c e e d r e q uir e d e n vir o n m e nt al r e g ul ati o n s t o e n s ur e a h e alt h y e c o s y st e m. T h er e i s a gr o wi n g, wi d e s pr e a d r e c o g niti o n t h at i n d u str y a n d n at ur e m u st c o- e xi st t o a c hi e v e a s u st ai n a bl e f ut ur e. T h e L o ui si a n a D e p art m e nt of E n vir o n m e nt al Q u alit y i s pl a yi n g a k e y r ol e i n e n c o ur a gi n g s u c h e n d e a v or s, c hi e ﬂ y t hr o u g h it s E n vir o n m e nt al L e a d er s hi p Pr o gr a m. T h e pr o gr a m pr o m ot e s v ol u nt ar y p oll uti o n pr e v e nti o n, w a st e r e d u cti o n a n d ot h er e n vir o n m e nt al st e w ar d s hi p eff ort s, t h e n r e c o g ni z e s c h a m pi o n s of t h e e n vir o n m e nt d uri n g a n a n n u al a w ar d s pr o gr a m. H er e’ s a l o o k at s o m e of t h e pr e vi o u s E L P wi n n er s, a n d ot h er s w h o h a v e g o n e a b o v e a n d b e y o n d t o pr ot e ct t h e n at ur al e n vir o n m e nt.

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C O U RTE S Y AL O N

C O U R T E S Y P HI L LI P S 6 6

I n a v ol u nt ar y m o v e, Al o n R e fi ni n g i n Kr ot z S pri n g s i d e nti fi e d t h e pr o d u ct str e a m s r o ut e d t o it s t w o fl ar e s — Cr u d e C o m pl e x a n d t h e F C C U C o m pl e x —t h e n r e m o v e d or mi ni mi z e d t h e str e a m s a n d i n st all e d s ulf ur r e m o v al s y st e m s o n e a c h fl ar e. Fl o w m e a s ur e m e nt s y st e m s ill u str at e a r e d u cti o n i n fl ar e d g a s of a p pr o xi m at el y 4 6 M M s cf p er y e ar, all o wi n g m or e g a s t o b e r e c o v er e d a s pr o d u ct i n st e a d of b ei n g d e str o y e d b y t h e fl ar e s. T h e r e s ult i s a r e d u cti o n i n e mi s si o n s of a p pr o xi m at el y 3 0 t o n s p er y e ar. I n a d diti o n, t h e s ulf ur r e m o v al s y st e m s r e d u c e d h y dr o g e n s ul fi d e c o n c e ntr a ti o n s i n t h e cr u d e fl ar e g a s b y m or e t h a n 9 5 % a n d i n t h e F C C U fl ar e g a s b y m or e t h a n 9 9 %, l e a di n g t o a r e d u cti o n i n s ulf ur di o xi d e a n d h y dr o g e n s ul fi d e e mi s si o n s of a p pr o xi m at el y 1 2 t o n s p er y e ar. A d diti o n all y, d uri n g u p gr a d e s t o it s Pr o p a n e ( C 3) Tr e at er C atal y st, t h e r e fi n er y i m pl e m e nt e d a n e w l a y er e d a b s or b e nt-t y p e c at al y st i n pl a c e of p ot a s si u m h y dr o xi d e a s a c at al y st t o r e m o v e s ulf ur c o m p o u n d s fr o m pr o p a n e pr o d u ct s. T h e n e w c at al y st i s l o n g er l a sti n g a n d n o n- h a z ar d o u s, w hi c h si m pli fi e s t h e r e m o v al a n d r e pl a c e m e nt pr o c e s s a n d r e s ult s i n a 9 0 % r e d u cti o n i n s p e nt c at al y st fr o m t h e tr e at m e nt pr o c e s s, or a b o ut 4 8 5 t o n s p er y e ar.

C O U RTE S Y AL O N

Fl ar e G a s Mi ni mi z ati o n & Pr o p a n e Tr e at er C at al y st U p gr a d e, Al o n R e ﬁ ni n g, Kr ot z S pri n g s

1 0 1 2i n d u str yr e p ort. c o m

C O U R T E S Y E X X O N M O BI L

E x x o n M o bil’s S e ni or W at er A d vi s or D a vi d G at z, A m eri c a n Pr oj e ct D e v el o p m e nt Gr o u p B u si n e s s Pl a n n er D el D u g a s a n d St at e R e g ul at or y A d vi s or R o b ert B ert, wit h E P A R e gi o n 6 W at er Di vi si o n Dir e ct or Bill H o n k er.

C O U R T E S Y E X X O N M O BI L

BI O X B a si n s F a cilit y, E x x o n M o bil R e ﬁ n er y, B at o n R o u g e

1 0 1 2i n d u str yr e p ort. c o m

P hilli p s 6 6 i n W e stl a k e s p e ar h e a d e d a n e c ol o gi c al r e vit ali z ati o n pr oj e ct o n B a y o u V er di n e, a s h all o w, ti d al c h a n n el t h at r u n s t hr o u g h it s pr o p ert y. T h e b a y o u fl o w s i nt o t h e C al c a si e u E st u ar y, a n i m p ort a nt n ur s er y f or fi s h a n d wil dlif e. T o r e m o v e hi st ori c al i n d u stri al c o nt a mi n ati o n, a b o ut 1. 5 mil e s of t h e b a y o u w a s dr e d g e d a n d t h e c o nt a m i n at e d s e di m e nt s w er e pl a c e d i n a c o nt ai n m e nt c ell t h at w a s c a p p e d u p o n c o m pl eti o n. T h e c o n str u cti o n w a s t o p p e d wit h n ati v e gr a s s e s a n d wil d fl o w er s, w hi c h r e q uir e littl e t o n o m ai nt e n a n c e a n d will r e- s e e d o n t h eir o w n.

C O U R T E S Y R U BI C O N

C O U R T E S Y P HI L LI P S 6 6

B a y o u V er di n e, P hilli p s 6 6, W e stl a k e

T h e E x x o n M o bil B at o n R o u g e R e fi n er y’ s t w o bi ol o gi c al o xi d ati o n ( BI O X) b a si n s h el p r e d u c e nitr at e e mi s si o n s i n w a st e w at er di s c h ar g e d i nt o t h e Mi s si s si p pi Ri v er w ell b el o w r e q uir e d l e v el s. T h e pr oj e ct i n cl u d e d t h e c o n str u cti o n of a n e w a b o v e- gr o u n d s y st e m f or cl e a ni n g w a st e w at er t o r e pl a c e t h e pr e vi o u s tr e at m e nt b a si n s. A n a d diti o n al i n v e st m e nt pr o a c ti v el y r e d u c e s w a st e w at er di s c h ar g e s al s o w ell b el o w r e q uir e d l e v el s. Hi st ori c all y, t h e B at o n R o u g e R e fi n er y h a s c o ntri b ut e d l e s s t h a n 1 % of t h e ni tr at e s i n t h e Mi s si s si p pi Ri v er. T hi s pr oj e ct h el p s t o r e d u c e t h at a m o u nt b y a b o ut 5 0 %. T h e s y st e m h a s al s o h el p e d r e d u c e t h e r e fi n er y’ s o v er all r e p ort a bl e r el e a s e s t o t h e e n vir o n m e nt, i n cl u di n g air e mi ssi o n s, w at er di s c h ar g e s a n d off sit e w a st e tr a n sf er s, b y 3 0 %.

H y dr o c hl ori c A ci d H a n dli n g & A er o g el I n s ul ati o n, R u bi c o n L L C, G ei s m ar R u bi c o n’ s V ari a nt s Pl a nt i n G ei s m ar i m pl e m e nt e d h y dr o c hl ori c a ci d h a ndli n g i m pr o v e m e nt s t h at i n cl u d e d a n e w tr a n sf er pi p eli n e r o ut e d dir e ctl y t o t h e c u st o m er. Wit h t h e pi p eli n e i n pl a c e, R u bi c o n u s e d 4, 2 6 6 f e w er t a n k tr u c k s a n d r ail c ar s t o s e n d H Cl t o c u st o m er s i n 2 0 1 6. T h e pi p eli n e h a s al s o r e d u c e d w a st e w at er g e n er ati o n b y a p pr o xi m at el y 2 1, 0 0 0 g all o n s. I n a n ot h er e n vir o n m e nt al m o v e, R ubi c o n’ s Ri s k- b a s e d M e c h a ni c al I nt e grit y a n d M ai nt e n a n c e t e a m s b e g a n u si n g e n er g y- ef ﬁ ci e nt a er o g el i n s ul ati o n d u e t o it s w at er r e p ell a nt pr o p erti e s, t h er e b y eli mi n ati n g t h e ri s k of C UI ( c orr o si o n u n d er i n s ul ati o n). Al s o, t h e pl a nt w a s a w ar d e d t h e I nt er n ati o n al Gr e e n A p pl e A w ar d f or E n vir o n m e nt al B e st Pr a cti c e f or it s A nili n e C o m pl e x B e n z e n e R e c o v er y Pr oj e ct, w hi c h eli mi n at e s t h e i n ci n er ati o n of a n a v er a g e of 7 2 2, 0 0 0 p o u n d s of b e n z e n e fr o m t h e w a st e str e a m a n n u all y. I n 2 0 1 7, t h e sit e r e c o v er e d a n d r e c y cl e d 1. 2 milli o n p o u n d s of b e n z e n e.

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F O C US T R A NSP O RT

ST O C K P H OT O

A U T O N O M O U S F U T U R E: A ut o n o m o u s tr u c k s c o ul d all e vi at e a p er si st e nt dri v er s h ort a g e pl a g ui n g t h e i n d u str y.

D ri v e rl e s s di r e cti o n

Tr u c k er s l e a d t h e w a y a s L o ui si a n a pr e p s f or a n a ut o n o m o u s f ut ur e.

s a ut o n o m o us ve hicles e d ge cl oser t o re alit y i n t he U. S., p u blic a n d priv ate gr o u ps are scra m bli n g t o pre p are f or t he e ve nt u alit y of s uc h tec h n ol og y o n st ate a n d fe deral hi g h w a ys. I n L o uisi a n a, t he De p art me nt of Tra ns p ort ati o n a n d De vel o p me nt’s C o n necte d & A ut o n o m o us Ve hicles ( C A V) tec h n ol o g y te a m h as b ee n activel y w or ki n g o ut t he det ails f or a d a pti n g t he st ate’s i nfrastr uct ure t o acc o m m o d ate t he ve hicles, w hile t he L e gisl at ure h as t a ke n s o me rece nt ste ps t o w ar d re g ul ati n g t he m ar ket. A h ost of ne w i n n ov ati o ns a p pe ars t o be pr o pelli n g us t o w ar d a driverless f ut ure, a n d t he tr uc ki n g i n d ustr y is le a di n g t he w a y i n s o me res pects. The A meric a n Tra ns p or-

t ati o n Rese arc h I nstit ute rece ntl y rele ase d a re p ort o n t he f ut ure of a ut o n o m o us tr uc ki n g, c o ncl u di n g t h at it w as o n c o urse t o f u n d a me nt all y c h a n ge t he i n d ustr y. The re p ort pre dicts t h at a ut o n o m o us tec h n ol o gies will b ec o me i ncre asi n gl y av ail a ble as s yste ms are de vel o p e d a n d c o m merci ali z e d, a n d t h at pr o d uctivit y a n d s afet y w o ul d b e t he b e ne ﬁci aries. “ Wit h a s u p p ose d a d a pt ati o n of t he ( all o we d) h o urs- of-ser vice f or a ut o n o m o us users, t here is t he p ote nti al t h at i n divi d u al drivers will b e a ble t o o p erate i n w h at is esse nti all y a te a m e nvir o n me nt,” t he A T RI re p ort re a ds. “ The eli mi n ati o n of h u m a n err or-rel ate d cras hes als o h as t he p ote nti al t o s ave t he i n d ustr y billi o ns of d oll ars a n n u all y.”

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P L A T O O NI N G The tr uc ki n g i n d ustr y h as b ee n es p eci all y attracte d t o t he i de a of “ pl at o o ni n g,” w here a si n gle driver o p erates a le a d tr uc k i n a t w o- ve hicle c o nv o y. I n M a y, G ov. J o h n B el E d w ar ds si g ne d Act 3 1 0 t o re d uce t he mi ni m u m f oll o wi n g dist a nce f or l ar ge ve hicles —t here b y o p e ni n g t he d o or f or “ pl at o o ni n g” of cert ai n a p pr ove d tr uc ks. Pre vi o usl y, a L o uisi a n a l a w d ati n g b ac k t o 1 9 6 2 s p eci fie d t h at a “ driver s h all n ot f oll o w a n ot her ve hicle m ore cl osel y t h a n is re as o n a ble a n d pr u de nt.” S p eci fic t o tr uc ki n g, t he r ule de fi ne d t he dist a nce as a mi ni m u m of 4 0 0 feet o n a hi g h w a y. ( B y c o m p aris o n, t he St ate C a pit ol is 4 5 0 feet t all.) B e gi n ni n g Ja n. 1, t he ne w l a w will p er mit cert ai n a p pr ove d ve hicles t o

B Y S A M B A R N ES

f oll o w as cl osel y as 4 0 feet. O verni g ht deliver y c arriers wit h t he a p pr o pri ate tec h n ol o g y will be all o we d t o drive i n a t w o- ve hicle c arav a n, w hic h t he c o m p a nies s a y will s ave o n f uel. F or n o w at le ast, b ot h tr uc ks will h ave drivers, alt h o u g h t he re ar ve hicle’s bra ki n g c o ntr ols c a n be c o m m a n deere d b y t he le a d ve hicle. D O T D, L o uisi a n a St ate P olice a n d ot her a ge ncies will w or k o ut t he re g ul at or y det ails of t he l a w l ater t his ye ar. O ne t hi n g is cle ar —if a c o m p a n y desires t o pl at o o n its ﬂeet, it w o ul d nee d t o de vel o p a pl a n a n d h ave it a p pr ove d b y D O T D. At le ast o ne over ni g ht deliver y c arrier — U P S — pl a ns t o be gi n pl at o o ni n g tr uc ks i n 2 0 1 9 i n select m ar kets. Bill s p o ns or Re p. Ke n n y H av ar d, R- St. Fra ncisville, a me m ber of t he 1 0 1 2i n d u str yr e p ort. c o m

“I t hi n k I’ll b e r etir e d b ef or e I s e e a f ull y a ut o n o m o u s h a z m at or p etr o c h e mi c al tr u c k g oi n g d o w n t h e hi g h w a y.” — TI M O R D O Y N E, P ort All e n br a n c h m a n a g er, K e n w ort h of L o ui si a n a

E Q UI P PI N G T H E T R U C K S Pl at o o ni n g pr o p o ne nts s uc h as tec h n ol o g y pr ovi der Pel ot o n Tec h n ol o g y i n M o u nt ai n Vie w, C al if or ni a, s a y f uel e fficie ncies g ai ne d b y pl at o o ni n g c a n be si g ni fic a nt. Ty pic all y, t he le a d tr uc k gets a b o ut 4. 5 % s avi n gs w hile t he sec o n d tr uc k gets 1 0 %, as d oc u me nte d b y t he N ort h A meric a n C o u ncil o n Frei g ht E fficie nc y. Thi s is p artic ul arl y i m p ort a nt i n t he hi g hl y c o m p etitive tr uc ki n g i n d ustr y, w here pr ofi t m argi ns r u n 3 %- 4 %. M ari a Wo o d ye ar B o we n, a l o b b yist f or Pel ot o n a n d t he L o uisi a n a M ot or Tra ns p ort Ass oci ati o n, p oi nts o ut t h at pl at o o ni n g is si mil ar t o a d a ptive cr uise c o ntr ol a n d is n ot strictl y a ut o n o m o us. Tr uc ks t h at pl at o o n will be re q uire d t o h ave air disc bra kes a n d st ate- of-t he- art c ollisi o n av oi d a nce s yste ms. As s uc h, t he le a d ve hicle i n a pl at o o n c o ntr ols t he s pee d a n d t he bra ki n g s yste ms of t he sec o n d ve hicle. “ Yo u c a n’t a d d t his tec h n ol o g y t o a n e xisti n g tr uc k, s o n ot e ver y o ne c a n d o t his,” B o we n s a ys. “ There are o nl y a c o u ple of c o m p a nies o ut t here wit h t he tec h n ol o g y, s o it’ll o nl y b e O E M [ ori gi n al e q ui p me nt m a n u f act urer] ve hicles. If Fe d E x b u ys a ne w fleet, f or e x a m ple, t he y c a n h ave t his tec h n ol o g y. It’s all g oi n g t o h ave t o c o me fr o m t he f act or y t o meet 1 0 1 2i n d u str yr e p ort. c o m

cert ai n s p eci fic ati o ns.” The ne w le gisl ati o n p aves t he w a y f or Pel ot o n, w h ose tec h n ol o g y wirelessl y “c o n nects” t he tr uc ks s o t h at t he y c a n m o nit or dist a nces, we at her c o n diti o ns a n d l o a ds. The y’ll als o b e a ble t o i de ntif y pl at o o ni n g o pp ort u nities ne ar b y. Na n di C h h a bra, Pel ot o n’s m ar ket de vel o p me nt m a n a ger i n M o u nt ai n Vie w, s a ys his c o m p a n y’s tec h n ol o g y will b e “ first t o m ar ket” a n d is e x p ecte d t o l a u nc h s o o n i n Te x a s. N O TI R E D D RI V E R L o uisi a n a h as t a ke n ot her ste ps, al b eit mi ni m al, t o w ar d a n a ut o n o m o us f ut ure. I n 2 0 1 6, t he L e gisl at ure de fi ne d w h at “a ut o n om o us tec h n ol o g y” me a ns i n Act 3 1 8. A n d f or its p art, t he Nati o n al Hi g h w a y Traffic S afet y A d mi nistrati o n iss ue d g ui d a nce o n a ut o no m o us tec h n ol o gies a n d ve hicles, alt h o u g h it d o es n ot s p eci fic all y me nti o n tr uc ks. “ We h ave n o n ati o n al g ui d a nce o n t his ri g ht n o w [f or tr uc ks],” s a ys Da n M urra y, vice presi de nt of A T RI. “ W h ate ver t he re a s o n, N H T S A h as pr ovi de d n o g ui d a nce, s o t he st ates are o n t heir o w n, w hic h is terrif yi n g, b ec a use we c o ul d get 5 0 di ffere nt sets of l a ws a n d r ules a n d re g ul ati o ns.” O ne of t he bi g gest c h alle n ges will b e t he de vel o p me nt of m alle a ble r ules t h at a d dress e ac h de gree of a ut o m ati o n [ see b o x]. “It’s g oi n g t o b e di ffi c ult t o discer n,” M urra y s a ys. “ The r ules will nee d t o c h a n ge b ase d u p o n t he le vel of a ut o n o m y.”

D O N K A D AI R

H o use Tra ns p ort ati o n C o m mittee, ass ure d le gisl at ors t h at t he pl at o o n i n g pr ocess is s afe. “ The re ar g u y i n t he pl at o o n is still steeri n g, w or ki n g t he bra kes, etc., t he y’re j ust c o n necte d electr o nic all y,” H av ar d s a ys. “ The driver i n t he re ar c a n still see t he ve hicle i n t he fr o nt. There’s i nfrare d a n d ra d ar s o if t he fr o nt g u y t a ps his bra kes it rele ases t he ot her g u y a n d p uts o n t he bra kes.” The r ule c h a n ge w o ul d b e m ostl y li mite d t o t he i nterst ate hi g h w a ys s yste m.

Me a n w hile, ne w tec h n ol o gies are b ei n g de vel o p e d f ar f aster t h a n g ov er n me nt re g ul ati o ns c a n acc o m m o d ate. I n pr o b a bl y t he m ost f a m o us a ut o n o m o us test r u n i n t he w orl d, a f ull y a ut o n o m o us A n he user- B usc h bi g ri g wit h 5 1, 0 0 0 c a ns of b eer s uccessf ull y traverse d 1 3 2 miles of C ol ora d o’s I- 2 5 i n Oct o b er 2 0 1 6. Ti m Or d o y ne, bra nc h m a n a ger

at Ke n w ort h of L o uisi a n a i n P ort Alle n, s a ys his c o m p a n y — a m a n u f act urer of l ar ge t uc k ri gs —rece ntl y o pe ne d a f acilit y i n Pal o Alt o, C ali f or ni a, t o be cl ose t o t he c o m p a nies de vel o pi n g a ut o n o m o us tec h n ol o gies s o t h at it c o ul d f acilit ate re se arc h a n d e x pe dite i m ple me nt ati o n. Mi ke M atte, se ni or direct or of b usi ness de vel o p me nt f or D u pré

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F O C U S: T R A N S P O R T

LEVELS OF A UT O N O MY

A c c or di n g t o t h e I nt er n ati o n al S o ci et y of A ut o m oti v e E n gi n e er s, t h er e ar e si x l e v el s of a ut o n o m y f or v e hi cl e s.

LE VEL 0 T h e dri v er c o ntr ol s e v er yt hi n g, i n cl u di n g st e eri n g, br a k e s a n d t hr ottl e.

LE VEL 1 M o st f u n cti o n s ar e c o ntr oll e d b y t h e dri v er, b ut s p e ci ﬁ c f u n cti o n s c a n b e p erf or m e d b y t h e v e hi cl e.

LE VEL 2 T h e dri v er c a n b e p h y si c all y di s e n g a g e d fr o m o p er ati n g t h e v e hi cl e b y h a vi n g h a n d s off t h e st e eri n g w h e el a n d f e et off t h e p e d al at t h e s a m e ti m e, b ut t h e dri v er m u st al w a y s b e pr e p ar e d t o r et a k e t h e w h e el.

LE VEL 3 Dri v er s ar e still n e c e s s ar y b ut ar e a bl e t o c o m pl et el y s hift s af et y- criti c al f u n cti o n s t o t h e v e hi cl e u n d er c ert ai n tr af ﬁ c or e n vir o n m e nt al c o n diti o n s.

LE VEL 4 A f ull y a ut o n o m o u s v e hi cl e u n d er c ert ai n c o n diti o n s. V e hi cl e s i n t hi s c at e g or y ar e d e si g n e d t o p erf or m all s af et y- criti c al dri vi n g f u n cti o n s a n d m o nit or r o a d w a y c o n diti o n s f or a n e ntir e tri p. T hi s l e v el i s li mit e d t o t h e o p er ati o n al d e si g n d o m ai n of t h e p arti c ul ar v e hi cl e a n d d o e s n ot c o v er e v er y dri vi n g s c e n ari o.

LE VEL 5 T hi s i s a f ull y a ut o n o m o u s v e hi cl e t h at e x p e ct s t h e v e hi cl e’ s p er f or m a n c e t o e q u al t h at of a h u m a n dri v er i n all dri vi n g s c e n ari o s. S O U R C E: I nt er n ati o n al S o ci et y of A ut o m oti v e E n gi n e er s 46

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

L o gistics i n L af a yette, s a ys t he i n cre ase d h o urs of ser vice a ff or de d b y a ut o n o m o us tr uc ki n g will u n d o u bt e dl y le a d t o gre ater e fficie nc y. D u pré pr ovi des e ner g y tra ns p ort a n d de d ic ate d h a z m at tra ns p ort f or t he i nd ustri al m ar ket, as well as de dic ate d site l o gistics. “ The oretic all y, as l o n g as it h as e n o u g h f uel, a tr uc k c o ul d g o fr o m p oi nt A t o p oi nt i n fi nit y a n d w o n’t nee d t o st o p,” M atte s a ys. “ There’s n o tire d driver t h at nee ds t o slee p. Th at’s a h u ge b e ne fit.” A ut o n o m o us tr uc ks c o ul d als o alle vi ate a p ersiste nt driver s h ort a ge pl a g ui n g t he i n d ustr y, c a use d pri m aril y b y t he mi ni m u m drivi n g a ge of 2 1, misc o nce pti o ns a b o ut t he i n d ustr y a n d j o b c o m p etiti o n fr o m c o nstr ucti o n a n d i n d ustri al m ar kets. The p ote nti al of a ut o n o m o us tr uc ki n g h as ge nerate d e xcite me nt a m o n g me m b ers of t he i n d ustri al s u p pl y c h ai n. D uri n g t his ye ar’s Petr oc he mic al S u p pl y C h ai n & L o gistics C o nfere nce i n H o ust o n, o w ners’ see me d h o p ef ul t h at driver less or driver- assiste d tr uc ks w o ul d s o o n alle vi ate c o ncer ns over s afet y, reli a bilit y a n d c ost. S p e a ki n g at t he c o nfere nce, Ric k Liss a, se ni or direct or, l o gistics m a n a ge me nt at F or m os a Pl astics, pre dicte d t h at driverless tr uc ks w o ul d h ave a m aj or i m p act. “ The disr u pt ors i n t he s u p pl y c h ai n t o d a y are tec h n ol o g y o n driverless tr uc ks, driverless b o ats, driverless trai ns, driverless pl a nes. W h at d o es t h at d o t o t he i n d ustr y? It drives d o w n c ost, s o t here’ll b e a l ot of acce pt a nce t o t h at. W he n y o u h ave drivers t h at c o ul d b e li mite d o n t heir h o urs of ser vice, t his is o ne w a y t o o pti mi z e y o ur asset. “ W h at t h at will l o o k li ke ne xt ye ar, t hree ye ars, or five ye ars d o w n t he r o a d, I d o n’t k n o w, b ut I d o k n o w t h at p e o ple are g oi n g t o w or k t o w ar d t h at.” D O W N T HE R OA D Patter ne d after si mil ar i niti atives i n ot her st ates, D O T D’s C A V Tec hn ol o g y Te a m w as f or me d t hree ye ars a g o t o deter mi ne st ate a n d l oc al tra ns p ort ati o n a ge nc y r oles, f orm ul ate D O T D p olic y a n d i de ntif y C A V a p plic ati o ns f or use at D O T D. Ste ve Gl asc oc k, C A V le a der a n d direct or of t he de p art me nt’s I ntelli ge nt Tra ns p ort ati o n S yste ms, s a ys his 3 0- me m b er te a m re ac hes acr oss

m ulti ple D O T D disci pli nes a n d dis tricts. “ We meet t o get her a n d kee p u p wit h i n d ustr y activit y,” Gl asc oc k s a ys. “ There’s a l ot t h at’s m ovi n g i nt o i n d ustr y i n re g ar ds t o c o n necte d a n d a ut o n o m o us ve hicles. We’re tr yi n g t o get a se nse of i n d ustr y h a p pe ni n gs.” Gl asc oc k s a ys t he C A V te a m will s o o n de vel o p a 2 0- ye ar pl a n f or s u p p orti n g t he tec h n ol o g y. At a mi ni m u m, t h at i ncl u des o ut fit ti n g i nterst ates a n d hi g h w a ys wit h t he c o m m u nic ati o ns tec h n ol o g y necess ar y t o s u p p ort ve hicle-t o-i n frastr uct ure c o n nectivit y. “I n t he ne xt ye ar we’ll h ave a series of d oc u me nts i de ntif yi n g t he strate gic pl a n wit h t he f u n di n g t y pe a n d s o urce. Thi s c o ul d i ncl u de l oc al p artici p ati o n as well as priv ate s u p p ort. We’ve bee n w or ki n g wit h t he Cit y of B at o n R o u ge, L af a yette C o ns oli d ate d G over n me nt a n d t he Cit y of Ne w Orle a ns t o i de ntif y pil ot pr ojects.” These pr ojects w o ul d li kel y be m ulti m o d al i n n at ure a n d i ncl u de si g n ali z e d i ntersecti o ns i nc or p orati n g de dic ate d s h ort-ra n ge c o m m u nic ati o ns ( D S R C), a s peci fic wireless tec h n ol o g y use d b y p u blic s afet y a ge ncies. “If we’re a ble t o c o m m u ni c ate t o t he ve hicles e q ui p pe d wit h bra ki n g assist, bli n d s p ot w ar ni n g a n d a d a ptive cr uise c o ntr ol, t he n we feel t h at w o ul d g o a l o n g w a y t o w ar d i m pr ovi n g e fficie nc y a n d t he s afet y of h o w ve hicles o perate,” Gl asc oc k s a ys. A p art fr o m t h at, n ot m uc h else c a n be d o ne fr o m a n i nfrastr uct ure st a n d p oi nt. “ The f ull y a ut o n o m o us ve hicle is m ostl y self- c o nt ai ne d,” he a d ds. “ Yo u h ave t he i ntelli ge nce o n t he ve hicle, t o w here it c a n se nse w here it is t hr o u g h t he r o a d w a y m a p pi n g t h at’s o n b o ar d.” As f or t he tr uc ki n g i n d ustr y, f ull a ut o n o m y mi g ht be a w a ys d o w n t he r o a d, alt h o u g h s o me rat her i m pressive tec h n ol o gies are m ovi n g i n t h at directi o n. D u pré h as p art nere d wit h tec h n ol o g y c o m p a n y Lyt x t o i nst all a ne w c a mera- b ase d tec h n ol o g y o n all its tr uc ks. “It n ot o nl y rec or ds d at a a n d gives t he driver fee d b ac k; t here’s a pre dictive a n al ytics p art t h at c o mes wit h it,” M atte s a ys. “It’s als o tie d i nt o t he tele metrics of t he tr uc k, s o it c a n u n derst a n d a n d i nter pret s pee d, R P Ms, etc. It be gi ns t o pre dict sit u ati o ns, a n d we c a n use t h at t o o perate m ore s afel y. 1 0 1 2i n d u str yr e p ort. c o m

I s s u e D at e: 1 Q A d pr o of # 1

• Ple ase res po n d by e- m ail or f ax wit h yo ur a p prov al or mi nor revisio ns. • A D WILL R U N A S I S u nless a p prov al or ﬁ n al revisio ns are receive d by t he close of b usi ness to d ay. • A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees. C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 8. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

C or p or at e H e a d q u art er s a n d W ar e h o u s e s: 9 4 3 6 Hi g h w a y 7 5, G ei s m ar, L A 7 0 7 3 4 2 2 5. 6 7 3. 3 3 7 0 • 1. 8 8 8. 2 6 9. 4 3 1 5 •

w w w. br a u d c o. c o m

SA M BAR NES

D oi n g i t ri g h t f o r O V E R 3 0 y e a r s!

“ T h e di sr u pt or s i n t h e s u p pl y c h ai n t o d a y ar e t e c h n ol o g y o n dri v erl e s s tr u c k s, dri v erl e s s b o at s, dri v erl e s s tr ai n s, dri v erl e s s pl a n e s.” — RI C K LI S S A,

s e ni or dir e ct or a n d l o gi sti c s m a n a g er, F or m o s a Pl a sti c s

We c a n pr ovi de fee d b ac k t o t he drivers.” Ot her tec h n ol o gies s uc h as Be n di x Wi n g m a n pr ovi de “a d a p tive cr uise” assist a nce. If t he driver e n g a ges cr uise c o ntr ol a n d s o me o ne p ulls i n fr o nt of hi m, t he tr uc k a ut o m atic all y a p plies t he bra kes a n d m ai nt ai ns a s afe dist a nce. The s yste m c a n als o pre ve nt ti p- overs b y a p pl yi n g t he bra ke a n d s h utti n g o ff f uel t o t he e n gi ne t o e fficie ntl y m a n a ge a t ur n. 10 YE A R S A W AY I n re g ar ds t o f ull y a ut o n o m o us ve hicles, t he L o uisi a n a L e gisl at ure is hesit a nt t o m a ke a n y ot her m oves j ust n o w. Rel ate d bills d uri n g t he rece nt re g ul ar sessi o n were all p us he d asi de. “ L o uisi a n a’s j ust n ot re a d y yet,” H av ar d s a ys. “ We j ust t h o u g ht t h at we were p utti n g t he c arri a ge a he a d of t he h orse, s o we’ve b ac ke d o ff t o see w h at ki n d of ve hicles will b e devel o pe d, w h at’s g oi n g t o b e re q uire d, etc., bef ore we m ove a he a d.” 1 0 1 2i n d u str yr e p ort. c o m

There are als o c y b ersec urit y c o ncer ns, as t hese tec h n ol o gies c o ul d f all victi m t o nef ari o us h ac kers. F or t h at a n d ot her re as o ns, Or d o y ne d o u bts t h at a ut o n o m o us tr uc ki n g is g oi n g t o h a p p e n a n yti me s o o n. “I t hi n k I’ll b e retire d b ef ore I see a f ull y a ut o n o m o us h a z m at or p etr oc he mic al tr uc k g oi n g d o w n t he hi g h w a y,” he a d ds. “ These g u ys t h at h a ul p etr oc he mic al are g oi n g t o b e o ne of t he l ast o nes b ec a use of w h at t he y’re h a uli n g, a n d le gisl ati o n is g oi n g t o h ave t o h a p p e n t o re g ul ate w h at t he y d o.” D u pré’s M atte a grees. “ F or t he p e o ple t o e x p ect t h at m a gic all y ﬁve ye ars fr o m n o w we’ll j ust st arti n g r olli n g o ut t hese tr uc ks wit h o ut drivers, I t hi n k t h at’s n aïve. I t hi n k it’s g oi n g t o e v olve over ti me rat her t h a n s u d de nl y a p p e ar. I s u p p ort t he i de a t h at a ut o n o m o us tr uc ki n g is c o mi n g, b ut if y o u’re t al ki n g a b o ut a f ull y a ut o m ate d ve hicle, I t hi n k t h at’s pr o b a bl y 1 0 ye ars a w a y fr o m re all y h a p p e ni n g.”

B r a u d W el di n g & I n d u st ri al S u p pl y h a s b e e n p r o vi di n g m at e ri al t o i n d u st ri e s f o r o v e r t hi rt y y e a r s. O u r e m p h a si s i s o n s e r vi c e. W e t a k e p ri d e i n s a m e d a y d eli v e r y. C u st o m e r s e r vi c e i s al w a y s o u r n u m b e r o n e p ri o rit y. W e d eli v e r o nti m e, e v e r yti m e. W e al s o h a v e a w ell st o c k e d w al k -i n s al e s c o u nt e r w h e r e y o u c a n p u r c h a s e a n y q u a ntit y of a n it e m.

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

F O C U S: T R A N S P O R T

G etti n g t o m a r k et

A s tr a n s p ort ati o n c o st s e s c al at e, r e si n m a k er s t ur n t o c o nt ai n er- o n- b ar g e s er vi c e. B Y S A M B A R N ES

S H U T T L E S E R VI C E: E m pt y s hi p pi n g c o nt ai n er s t h at o n c e s at i dl e i n M e m p hi s ar e n o w b ei n g b ar g e d t o B at o n R o u g e t o b e l o a d e d wit h r e si n at ar e a pl a nt s, t h e n s hi p p e d d o w nri v er t o N e w Orl e a n s f or i nt er n ati o n al tr a n s p ort.

U P

B R A D L M U R C HI N K E L L & S H E A

MI D D O 48

D O N K A D AI R

m pt y s hi p pi n g c o nt ai ners t h at o nce s at i dle i n Me m p his are t o d a y pl a yi n g a critic al r ole i n s u p p orti n g L o uisi a n a’s pl astic resi n m ar ket. I n a f ort uit o us arra n ge me nt i nv olvi n g t hree p orts, S E A C O R A M H L L C b ar ges t he c o nt ai ners t o B at o n R o u ge t o be l o a de d wit h resi n at are a pl a nts, t he n c o nti n ues t he m d o w nriver t o Ne w Orle a ns f or i nter n ati o n al tra ns p ort. The availa bilit y of t he service is ti mel y, si nce L o uisia na is i n t he mi dst of a plastic resi n b o o m. Risi ng U. S. e ner g y pr o d ucti o n — m uc h of it fr o m i ns h ore s hale pla ys —is pr ovi di ng vast a m o u nts of a ﬀ or da ble fee d st oc k f or P V C a n d p olyet hyle ne plastic resi n pr o d ucti o n. N o w i n its sec o n d ye ar, t he “c o nt ai n er- o n- b ar ge” s h uttle ser vice h as e x p a n de d t he tra ns p ort ati o n p ortf oli os of m a n y B at o n R o u ge- are a pl a nts. Tos hi a ki A ns ai, vice presi de nt of pl a n ni n g a n d m ar keti n g f or S hi ntec h, s a ys w hile tr uc ki n g t he m ateri al will re m ai n a vi a ble o pti o n f or his c o m p a n y’s

E Y S O N Y L L C

O F FI C E S I N

N E

W O R L E A N S

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W N

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

W W W. B R A D L E Y FI R M. C O M A T B R A D L E Y FI R M

W E D OI T A L L

1 0 1 2i n d u str yr e p ort. c o m

GE R

vi c e pr e si d e nt- c o m m er ci al, P ort of N e w Orl e a n s

— B O B B Y L A N D R Y,

BE R

“ T h e g o al i s t o g et t h e s e c o m m o diti e s o ut i n a q ui c k a n d e ﬃ ci e nt m a n n e r s o t h e y r e m ai n c o st - c o m p etiti v e o n a w o rl d wi d e b a si s.” ER

Pl a q ue mi ne pl a nt, it’s li kel y t h at driver s h ort a ges a n d risi n g w a ges will m a ke b ar gi n g m ore c ost- ef ﬁcie nt i n c o mi n g ye ars. “ We’ve diversi ﬁe d o ur l o gistic al o pti o ns s o t h at we d o n’t j ust si m pl y rel y o n tra diti o n al me a ns of tra ns p ort,” A ns ai s a ys. “ We w a nt t o b e cre ative.” S hi ntec h is t he l ar gest pr o d ucer of P V C resi n i n t he U. S. a n d 1 2t h i n c o nt ai ner e x p orts. Wit h t he hel p of t he s h uttle ser vice, Bra n d y C hristi a n, presi de nt & C E O of t he P ort of Ne w Or le a ns, h o pes t o c a pt ure a si z e a ble p orti o n of ne w resi n e x p orts i n t he w a ke of m ore t h a n $ 8 0 billi o n i n a n n o u nce d petr oc he mic al i nvest me nt. M ost rece ntl y, F or m os a Petr oc he mic al C or p. a n n o u nce d t h at it w o ul d c o nstr uct a $ 9. 4 billi o n pl a nt i n St. Ja mes Paris h t o s u p p ort a h ost of pl astic g o o ds. C hristi a n s a ys t he c o nt ai n er- o n- b ar ge s h uttle ser vice is e asil y be ati n g pr ojecti o ns s o f ar. “ E x p erts pre dict 4 0 0, 0 0 0 T E Us of pl astic resi n e x p orts fr o m t he G ulf b et wee n n o w a n d 2 0 2 0, a n d we are

re a d y t o meet t h at m ar ket de m a n d.” B o b b y L a n dr y, vice presi de nt- c o m merci al at P ort N O L A, s a ys t he c o nt ai ner- o n- b ar ge service will kee p t he p ort a he a d of a n e x p ecte d 2 5 % i ncre ase i n t he pr o d ucti o n a n d e x p ort of resi n over t he ne xt t hree t o f o ur ye ars. “ A n d t h at [ pr ojecti o n] mi g ht b e a bit c o nser v ative,” L a n dr y s a ys. “ The w a y t h at w orl d ec o n o mies are gr o wi n g n o w, a n d t he c orres p o n di n g i ncre ase i n c a p acit y at a l ot of t hese c he mic al c o m p a nies, t he p ote nti al f or e ve n gre ater v ol u me is t here,” L a n dr y s a ys. “ The g o al is t o get t hese c o m m o dities o ut i n a q uic k a n d e ﬃcie nt m a nner s o t he y re m ai n c ost- c o m p etitive o n a w orl d wi de b asis.”

N U T S A N D B O LT S S o f ar, t he s h uttle- o n- b ar ge ser vice h as b ee n a p erfect “ m arri a ge.” As a m aj or distri b uti o n h u b, t he P ort of Me m p his w as a w as h i n e m pt y c o n t ai ners, w hile P ort N O L A a n d t he P ort of Gre ater B at o n R o u ge were n ot. F urt her m ore, B at o n R o u ge’s pr o xi mit y t o resi n pr o d ucers s uc h as S hi ntec h, F or m os a a n d E x x o n M o bil m a de it a n i de al l oc ati o n f or ﬁlli n g t he c o nt ai ners wit h pr o d uct. I niti all y, t he s h uttle ser vice w as S E A C O R’s i de a. Ric h ar d Tue b ner, a S E A C O R vice presi de nt i n F ort L a u der d ale, s a ys his b ar ges are r u n ni n g t w o se p arate r o utes. “ We h ave 2 0- pl us b ar ges o p erati n g i n t he l o o p fr o m Me m p his t o B at o n R o u ge. We

E X C A V A TI O N O F S OI L I S D A N G E R O U S

“ T H E T R E N C H & T R A F FI C S A F E T Y S P E CI A LI S T S ”

WI T H A N A TI O N WI D E B R A N C H N E T W O R K,

1 0 1 2i n d u str yr e p ort. c o m

W E’ R E

j ust c o nti n u o usl y l o a d e m pties o nt o t he b ar ge a n d t he y m atric ul ate d o w n t he river.” It t a kes t he b ar ges a b o ut a wee k t o m a ke t he tre k. S E A C O R s ails t wice wee kl y, de liveri n g as m a n y as 3 6 0 c o nt ai ners t o B at o n R o u ge at o nce — or 1 0 b ar ges’ w ort h, wit h i nter n ati o n al e x p orter C M A C G M Gr o u p (its clie nt) h a n dli n g t he sc he d ule. O nce t he c o nt ai ners arrive i n B at o n R o u ge, t he y are delivere d t o t he pl a nts t o be ﬁlle d wit h t he pr o d uct. The ﬁlle d c o nt ai ners are t he n delivere d b ac k t o t he p ort f or l o a di n g a n d tra ns p ort t o Ne w Orle a ns. “ We’re b asic all y t a ki n g t he pl ace of a tr uc k,” Tue b ner

W O R K...

a n d c a n l e a d t o s e v e r e i nj u ri e s a n d e v e n d e a t h if t h e e x c a v a ti p r o c e s s i s n o t p r o p e rl y a d d r e s s e d. N a ti o n al Tr e n c h S af e t y h a s a f c o m pl e m e n t of e x c a v a ti o n s u p p o r t s y st e m s a s w ell a s e n gi n e e ri a n d t r ai ni n g s e r vi c e s t o e n s u r e y o u h a v e t h e e q ui p m e n t n e e d e d p e rf o r m t h e j o b s af el y a n d e ﬀ e c ti v el y.

W HE RE Y O U NEE D US T O BE

C ALL 888

on ull ng to

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F O C U S: T R A N S P O R T

FI L E P H O T O

t a ge as well —t u gs use less f uel per 1 0 miles t h a n a tr uc k or trai n. “ F ol ks li ke D o w a n d E x x o n are l o o ki n g at it fr o m a hi g h le vel,” L a n dr y a d ds. “ The y’re l o o ki n g at t he e ﬀects t h at it h as o n t he s yste m a n d t he e nvir o n me nt.”

s a ys. “ We d o t he i nl a n d s ol uti o ns f or C M A C G M.” S o f ar, t he P ort of Gre ater B at o n R o u ge h as m ove d a b o ut 1 8, 0 0 0 c o nt ai ners i n t he p ast 1 8 m o nt hs, or a b o ut 1, 0 0 0 per m o nt h. “ A n d we e x pect t h at t o pic k u p,” s a ys Ja y H ar d m a n, e xec utive direct or at t he p ort, a d di n g t h at m ulti ple pl a nt e x p a nsi o ns i n t he are a w o ul d bri n g wit h it a s ur ge i n pr o d ucti o n. “ S o me of t he m are testi n g t he w aters ri g ht n o w a n d fi n di n g t his is a vi a ble o pti o n. We’re st arti n g t o see a n i n cre ase, a n d it’s d ovet aili n g i nt o t heir e x p a nsi o ns.” H ar d m a n pl a ns t o i nvest a b o ut $ 4 milli o n fr o m a M ariti me A d mi nistrati o n gra nt t o acc o m m o d ate t he i ncre ase, pri m aril y t hr o u g h ne w e q ui p me nt, a l a y d o w n yar d e x p a n si o n a n d a d diti o n al li g hti n g. He als o pl a ns t o r u n a d diti o n al ni g ht s hifts. As t he fi n al le g of t he river j o ur ne y, a se p arate fleet of S E A C O R b ar ges tra ns p orts t he l o a de d c o n t ai ners t o P ort N O L A. O nce t here, t he y’re o ffl o a de d a n d l ater rel o a de d o nt o a C M A C G M vessel f or i nter n ati o n al e x p ort. I n a n y t w o- wee k peri o d, a b o ut 5 0 0 t o 7 0 0 2 0-f o ot c o nt ai ners arrive at P ort N O L A b y b ar ge. O nce t here, t he y “ d o n’t st a y l o n g at all,” P ort N O L A’s L a n dr y s a ys. “ Th at’s t he re al b e ne fit of it. We d o n’t h ave t o all oc ate a l ot of l a n d f or it. We’re t al ki n g a rel ativel y s m all a m o u nt w he n y o u l o o k at o ur t ot al v ol u me.” P ort N O L A uses e xisti n g cra ne c a p acit y t o o ffl o a d a n d l o a d t he c o nt ai ners. H o we ver, L a n dr y n otes, “ We are c o nsi deri n g t he a d diti o n of a de dic ate d bert h s o t he b ar ges d o n’t h ave t o c o m pete wit h oce a n g oi n g s hi ps. We act u all y h ave a 50

“ S o m e of [t h e pl a nt s] a r e t e sti n g t h e w at e r s ri g ht n o w a n d ﬁ n di n g t hi s i s a vi a bl e o pti o n.” — J A Y H A R D M A N,

dir e ct or, P ort of Gr e at er B at o n R o u g e

site i de nti ﬁe d d o w n river fr o m o ur c urre nt g a ntr y cra nes. We esti m ate t h at f or a b o ut $ 1 0 milli o n we c a n a d d t w o m o bile cra nes t h at c a n w or k t he b ar ges.” B E A TI N G T H E T R A F FI C The s h uttle- o n- b ar ge ser vice is n ot ne w t o L o uisi a n a, b ut it h a d b e c o me a l ar gel y def u nct c o nce pt si nce H urric a ne K atri n a. The ec o n o mics of b ar gi n g j ust were n’t t here, si nce it c o ul d n’t ﬁ n a nci all y c o m p ete wit h tr uc ks a n d rail. H o we ver, c h a n gi n g m ar ket d y n a mics i n rece nt ye ars, p artic ul arl y a s h ort a ge i n drivers a n d i ncre asi n g w a ge rates, h ave m a de it m ore vi a ble. The A meric a n Tr uc ki n g Ass oci ati o n esti m ates t he i n d ustr y is a b o ut 5 0, 0 0 0 t o 6 0, 0 0 0 drivers s h ort n ati o n wi de.

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

R E SI N B O O M G ulf C o a st- c e nt er e d r e si n pr o d u cti o n i s f or e c a st t o ri s e 5 0 % b y t h e e n d of 2 0 1 9 a n d d o u bl e b y 2 0 2 2 . S O U R C E: I H S M ar kit W orl d P etr o c h e mi c al C o nf er e n c e

“ P utti n g t he m o n b ar ges s olves t hree pr o ble ms,” L a n dr y s a ys. “It re d uces t he we ar a n d te ar o n t he hi g h w a y, it miti g ates t he driver s h ort a ge iss ue, a n d it uses o ur gre atest u n der utili z e d tra ns p ort ati o n asset —t he Mississi p pi River.” W hile tr uc ks c a n get pr o d uct t o t he p orts f aster, b ar ges b e at t he m o n v ol u me. “ A n ot her b e ne ﬁt is c o n ges ti o n miti g ati o n. Te n ye ars a g o, tr uc kers mi g ht’ve b ee n a ble t o t ur n t hese ar o u n d a l ot q uic ker, b ut n o w wit h I- 1 0 c o n geste d fr o m 6 t o 1 0 a. m., a n d t he s a me t hi n g i n t he after n o o n, t h ose ti mes are m uc h sl o wer.” Still, m ovi n g pr o d uct o n w ater re m ai ns a sl o wer pr os p ect, alt h o u g h o ne t h at c a n b e acc o m m o d ate d t hr o u g h pr o p er sc he d uli n g. There’s a n e nvir o n me nt al a dva n -

T OP 3 M ar k et s h ar e of T o p 3 p ort s f or U. S. s y nt h eti c r e si n s e x p ort s i n 2 0 1 7

N o. 1: H o u st o n, 3 8. 0 % N o. 2: N e w Orl e a n s, 1 2. 0 % N o. 3: L o s A n g el e s, 8. 3 % S O U R C E: I H S M ar k et

A V A L U E- A D D E D P R O P O SI TI O N Mic h ael Hec ht, presi de nt & C E O of G N O I nc., is e xcite d a b o ut t he “ v al ue- a d de d” p ote nti al of pl astics i n L o uisi a n a as t he i n d ustr y gr o ws. He s a ys i niti atives s uc h as t he c o nt ai ner- o n- b ar ge ser vice c o ul d ulti m atel y le a d t o m ore d o w nstre a m i nvestme nt. “ As m ore of t he ra w m ateri al is pr o d uce d here,” he s a ys, “t he m ore t he y’ll w a nt t o h ave t heir d o w nstre a m c ust o mers ne ar b y i nste a d of e x p orti n g it else w here.” I n rece nt ye ars, P ort N O L A h as f u n d a me nt all y c h a n ge d its orie nt ati o n, piv oti n g fr o m a “l a n dl or d p ort” t o a n ec o n o mic de vel o p me nt or g a ni z ati o n se arc hi n g f or o p p ort u nities. “I t hi n k t his p us h i nt o pl astics m a n uf act uri n g is p art a n d p arcel of t h at ne w orie nt ati o n,” Hec ht s a ys. L a n dr y a grees. “ These c he mic al pl a nts e m pl o y a l ot of pe o ple a n d t he y h ave t o c o m pete ver y h ar d t o get t he m t o l oc ate here. O nce t he y are here, we w a nt t o get e ver y ec o n o mic be ne fit o ut of t h ose pl a nts t h at we c a n. There’s a l ot of be nefits t o t he st ate if we c a n bri n g t h at c ar g o here.” L a n dr y gives cre dit t o L o uisi a n a Ec o n o mic De vel o p me nt f or f acili t ati n g t he c o nt ai ner- o n- b ar ge e ff ort. “ The y rec o g ni z e d t h at t he st ate gets a p ost- pr o d ucti o n be ne fit t h at a l ot of pe o ple d o n’t c o nsi der w he n t he y l o o k at de als li ke t his. It’s re all y a gre at w a y t he st ate is w or ki n g t o get her.” Ot hers h ave c o me al o n g t o t a p i nt o t he gr o wi n g m ar ket a n d f urt her s u p p ort t he l oc al pl astics i n d ustr y. F o u n de d i n 2 0 1 1, T CI Pac k a gi n g p ac k a ges resi n i nt o 2 5- kil o gra m b a gs f or s hi p pi n g at its P ort N O L A f acilit y at a rate of u p t o 2, 7 0 0 b a gs a n h o ur, 2 4 h o urs a d a y. The y are als o pre pari n g f or t he e x pecte d i n fl u x i n pr o d uct fr o m resi n ma n ufact urers —t he first p hase of a ne w $ 3 6. 5 milli o n, 5 0 0, 0 0 0-s q uaref o ot facilit y will gr o w T CI’s resi n ba ggi n g ca pacit y b y 1 8 0 % b y 2 0 1 9. 1 0 1 2i n d u str yr e p ort. c o m

I N SI G H T

T h e d a n g e r s of t r a d e p r ot e cti o ni s m f o r L o ui si a n a e n e r g y d e v el o p m e nt

D A VI D DI S M U K E S

he Tr u m p a d mi nis trati o n’s c urre nt tra de i nitiatives, i m p osi n g billi o ns of d ollars i n ne w t ari ffs, have t he a bilit y t o wrea k hav oc o n se veral i m p ort a nt G ulf C oast ec o n o mic sect ors, i ncl u di n g e ner g y a n d c he mical pr o d ucti o n. These t w o sect ors are i ne xtrica bl y li n ke d t o t he gl o bal ec o n o m y a n d, c ollectivel y, acc o u nt f or as m uc h as 1 4 % of L o uisia na’s ma n ufact uri n g gr oss st ate pr o d uct ( G S P) a n d pa y avera ge wa ges t hat are m ore t ha n t hree ti mes t he st ate wi de avera ge wa ge. Ri g ht o ff it is i m p ort a nt t o rec o g ni ze t hat Was hi n gt o n’s rece nt tra de acti o ns, c ollectivel y, will directl y i m pact t he pr o fit a bilit y of over $ 7 5 billi o n i n rece nt ca pit al e x pe n dit ures i n L o uisia na a n d se n d a ver y ba d si g nal t o t he mar ket a b o ut f ut ure U. S. i n d ustrial de vel o p me nt. Kee p i n mi n d t hat all of t hese L o uisia na e ner g y i nfrastr uct ure i nvest me nts have bee n ma de t o ser ve gl o bal, n ot d o mestic U. S., mar kets. F or i nst a nce, t he gr o wt h i n U. S. a m m o nia de ma n d is ar o u n d 0. 5 % per year, w hereas gr o wt h i n a m m o nia de ma n d i n Asia is al m ost 2 % per year. U. S. met ha n ol de ma n d, w hile u p i n rece nt years, has a gr o wt h rate t hat avera ges ar o u n d 2. 5 % per year, w hile i n Asia it is a b o ut 5 % per year. I n fact, it is pr ojecte d t hat b y 2 0 2 1 Asia n met ha n ol de ma n d will acc o u nt f or 7 0 % of w orl d wi de de ma n d, w hile N ort h A merica a n d E ur o pe will 1 0 1 2i n d u str yr e p ort. c o m

acc o u nt f or 9 % a n d 8 %, res pectivel y. c he mical pla nt, re fi ner y or L N G Th us, t he billi o ns i n rece nt facilit y has li kel y o bser ve d t hat t he y L o uisia na c o m m o dit y c he mical are c o m prise d of massive a m o u nts of i nvest me nts have n ot bee n ma de str uct ural steel a n d i nterlace d wit h a t o ser ve t he relativel y mat ure, pr oli fic a m o u nt of steel pi pi n g. Pi pe sl o w- gr o wi n g U. S. c he mical mar ket, li nes are t he circ ulat or y s yste m of t he b ut its faster gr o wi n g c o u nter part i n e ner g y i n d ustr y, bri n gi n g fee dst oc k Asia. i nt o pla nts a n d ofte n m ovi n g pr o d uct Rece nt n u m bers s h o w t he s uccess o ut t o mar kets. of t hese billi o ns i nveste d i n L o uisi These pi pes are over w hel mi n gl y a na. C he mical a n d e ner g y i n d ustr y c o m p ose d of steel t hat is i m p orte d e x p orts fr o m t he st ate have i ncrease d fr o m vari o us places ar o u n d t he w orl d. b y al m ost 3 5 0 % si nce t he be gi n All of t hese e ner g y i nfrastr uct ure ni n g of t he “i n d ustrial re naissa nce.” pr ojects, c ollectivel y, will see t heir C urre ntl y, L o uisia na e x p orts over c osts i ncrease as a c o nse q ue nce of $ 2 8 billi o n t hese ne w i n c he mical t a xes (t ari ff “ All of t h e s e e n er g y a n d e ner g y i ncreases). i nfr a str u ct ur e pr oj e ct s, Sec o n d, pr o d ucts. Thi s re p ne w t ari ffs c oll e cti v el y, will s e e rese nts 5 0 % a n d ot her t h eir c o st s i n c r e a s e .” tra de restricof all e x p orts leavi n g t he ti o ns will st ate, c o m pare d t o j ust 2 7 % i n t he li kel y i m pact t he de vel o p me nt ti mi n g earl y 2 0 0 0s. of ma n y e ner g y i nfrastr uct ure pr oj F urt her, L o uisia na c urre ntl y has a ects, t here b y i m p osi n g a n a d diti o nal tra de s ur pl us, n ot de ficit, of al m ost set of ne g ative i m pacts o n i nfrastr uc$ 7 billi o n wit h C hi na. These tre n ds t ure de vel o p me nt c osts. C o nsi der will o nl y c o nti n ue t o marc h hi g her t hat ma n y e ner g y i nfrastr uct ure pr ojwit h t he de vel o p me nt of m ulti ple ects will be f orce d t o see k s u bstit ute li q ue fie d nat ural g as e x p ort facilities steel a n d ot her pi pi n g materials as a t hat are a ntici pati n g c o m mercial o pres ult of t he c urre nt a d mi nistrati o n’s erati o n dates i n t he 2 0 2 2 ti me peri o d. tra de p olicies. E mer gi n g tra de c o n flicts wit h C hi T w o t y pes of dela ys will li kel y na, as well as E ur o pe a n d o ur ot her res ult: t he first, ass ociate d wit h N ort h A merica n tra di n g part ners, t he ti me nee de d t o si m pl y fi n d t he t heref ore, will d o n ot hi n g m ore t ha n s u bstit ute d o mestic materials, a n d c o m pr o mise t hese har d- ear ne d g ai ns t he sec o n d, t he ti me ass ociate d wit h i n a n u m ber of di ffere nt wa ys. dela ys create d b y b ottle nec ks a n d First, t ari ffs are a n ot her f or m of ot her l o gistical c halle n ges t hat ma n y t a x, a n d t ari ff rate i ncreases re prese nt d o mestic s u p pliers will have i n meet n ot hi n g m ore t ha n t a x i ncreases t hat i n g t his ne w s ur ge of u na ntici pate d will i ncrease t he c ost of de vel o pi n g pr o d uct a n d material de ma n d. ne w a n d e x pa n di n g u p o n e xisti n g These dela ys will n ot o nl y i ncrease e ner g y i nfrastr uct ure i n L o uisia na. s u p pl y c hai n c osts, b ut will i ncrease A n y o ne t hat has passe d a petr o t he carr yi n g c osts of lar ge ca pit al

i nvest me nts t he mselves. Thi n k a b o ut t he carr yi n g c osts (i nterest c osts) of a 1 2- m o nt h dela y, at a 4 % t o 6 % i nterest rate, f or a $ 2 billi o n ( petr oc he mical) or e ve n $ 1 2 billi o n ( L N G) pr oject. L astl y, de vel o pi n g a dverse tra de re lati o ns hi ps wit h Asia n c o u ntries d oes n ot hi n g t o facilit ate f orei g n direct i nvest me nt i n t he U. S., ge nerall y, a n d i n L o uisia na, m ore s peci ﬁcall y. C o nsi der t he m ore rece nt $ 1. 1 2 billi o n pr oject a n n o u nce me nt i n L o uisia na b y Wa n h ua C he mical. Rece nt press re p orts n ote t hat t he c o m pa n y is n o w “reassessi n g” its i nvest me nt i n L o uisia na give n rece nt tra de p olic y c ha n ges t hat will lea d t o a “si g ni ﬁca nt” i ncrease i n c osts t hat were ot her wise n ot a ntici pate d at t he pr oject’s ori gi nal a n n o u nce me nt. To date, t here are n o si milar re p orts f or t he ot her lar ge C hi nese i nvest me nts i n t he st ate, b ut it is li kel y t hat t he $ 1. 8 5 billi o n c he mical i n d ustr y pr o p osal ma de b y Yu h ua n g C he mical is havi n g t o re-s har pe n its pe ncil o n t he pr oject ec o n o mics of de vel o pi n g t his pla nt i n St. Ja mes paris h. These tre n ds are e ve n m ore pr o ble matic w he n c o nsi deri n g t hat t he t y pical “c o nve nti o nal wis d o m” i n i nfrastr uct ure de vel o p me nt circles over t he last year has bee n s u g gesti n g t hat t he ne xt wave of lar ge i n d ustrial de vel o p me nt i n L o uisia na is li kel y t o be m otivate d b y Asia n- bac ke d i nvest me nt d ollars. If t he c urre nt tra de p olic y tre n ds c o nti n ue i n Was hi n gt o n, t hat wave ma y ver y well n ot materiali ze here i n L o uisia na. D a vi d Dis m u kes is a professor a n d t he e xec uti ve director of t he Ce nter for E nerg y St u dies at t he Lo uisi a n a St ate U ni versity.

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I N SI G H T

T h e i n d u st ri al v al u e c h ai n: W h at’ s i n it f or m e ( WII F M) ?

m a kes t he di ﬀere nce. S o w h at is t he best wa y t o meas ure a n i nvest me nt o p p ort u nit y t h at t a kes i nt o acc o u nt a bal a nce of diverse vie w p oi nts o n t he f ut ure directi o n of a c o m m u nit y? S urel y a m o del e xists, n’est pas? It a p pears, m o n c her, t h at t he m o d els o ut t here are rat her n arr o w i n sc o pe —t h o u g h I’ m n o ec o n o mic devel o per, a n d m a y be I’ m n ot a ware of t he l atest t o ols avail a ble. H o we ver, it see ms t h at m ost de vel o p me nt m o dels f oc us m ai nl y o n t he n u m ber of j o bs t h at t he i nvest me nt (i n d ustri al pl a nt) will ge nerate f or j ust t h at pr oject a g ai nst f ore g o ne t a xes gra nte d b y t he ec o n o mic i nce ntive. A m ore h olistic a p pr oac h mi g ht be t o c o nsi der t he e ntire “ val ue c h ai n” as

c o m pa nies will h ave a m ore c o m plete u n derst a n di n g of w het her t o o ﬀer or acce pt ec o n o mic i nce ntives. The tric k i n t hi n ki n g i n t his ne w wa y is t o e ns ure t h at t he m o del is si m ple e n o u g h t o be u n derst o o d b y all a n d d oes n’t h ol d u p i nvest me nt decisi o ns. A n ot her pr o ble m wit h e xisti n g m o dels is t h at t he y rel y o n f ut ure perf or m a nce of a c o m pa n y f or t he “ pa y o ut.” Mar kets c h a n ge ra pi dl y a n d, as well- mea ni n g as a c o m pa n y or a c o m m u nit y m a y be, t hi n gs s uc h as h urrica nes, st oc k m ar ket cras hes, m aj or c ust o mer pr o ble ms a n d m ore ca n wi pe o ut a well-t h o u g ht- o ut pla n. B ut per h a ps ﬁ n di n g wa ys t o meas ure m ore accessi ble t hi n gs ca n hel p a c o m m u nit y steer clear of s uc h pitf alls.

C O M P E TI TI V E A D V A N T A G E

n d ustrial i nvest me nt i n a c o m m u nit y is us uall y welc o me d b y m ost pe o ple, a n d t he val ue of havi n g a c o m pa n y o fferi n g l o n g-ter m j o bs is o bvi o us. H o we ver, rece ntl y i n t he Bat o n R o u ge area, t he practice of gra nti n g t a x i nce ntives t o l ure c o m pa nies t o l ocate here is i n q uesti o n. S o h o w ca n we, as a c o m m u nit y, act uall y meas ure t he val ue of ec o n o mic de vel o p me nt i nce ntives? The a ns wer t o t his q uesti o n is a ki n t o t he ol d sa yi n g t h at “ bea ut y is i n t he e ye of t he be h ol der.” S o me ma y belie ve t hat ec o n o mic i nce ntives are a t hi n g of bea ut y, w hic h res ult i n p ositive f orces of de vel o p me nt t h at be ne fit all. S o me ma y belie ve t he y are li ke t he u gl y d uc kli n g w h o st arts o ut u gl y, b ut e ve nt uall y bec o mes a bea u tif ul s wa n over ti me. S o me belie ve ec o n o mic de vel o p me nt i nce ntives are a ki n t o si n k h oles, s uc ki n g res o urces o ut of a c o m m u nit y. If a pers o n belie ves t h at t heir c o mm u nit y, w hic h t o da y h as rel ativel y l o w p o p ulati o n, little tra ffic iss ues or cri me, a n d its r olli n g hills of f ar mla n d, rivers, a n d f orests, is heave nl y bliss a n d a perfect place t o live, t he n a n i n d ustrial i nvest me nt mea ns a n u n welc o me c ha n ge. O n t he ot her ha n d, a n ot her pers o n ma y vie w t he sa me c o m m u nit y as o ne wit h n o m ovie t heater, o nl y o ne dila pi date d sc h o ol t h at h as tr o u ble attracti n g t ale nte d teac hers, a n d cr u m bli n g r oa ds wit h Bar ne y Fife at t he hel m of or der. That pers o n w o ul d see i n d ustri al

a p ossi ble, i m pr ove d m o del t o e val u ate ec o n o mic de vel o p me nt i nce ntives. Bel o w is a de picti o n of a tra di ti o n al val ue c h ai n m o del pi o neere d b y Mic h ael P orter i n his 1 9 8 5 b o o k, Co m petiti ve A d v a nt age . The c o nte xt of t his val ue c h ai n is a n e ntit y s uc h as a m a n uf act uri n g pl a nt; h o we ver, eac h area s h o w n i n t he m o del c o ul d be a p plie d or m o di ﬁe d t o m atc h a c o m m u nit y’s nee ds. C o m m u nities t h at as k a n d pl ace val ue o n a n e x pa n de d list of f act ors ca n get a better i dea of t he i m pact of a ne w ﬁr m t o all t he st a ke h ol ders t h at g over n me nt (t he e ntit y gra nti n g i nce ntives) m ust ser ve. A n d wit h t his i nf or m ati o n c o m m u nities a n d

S O U R C E: MI C H A E L P O R T E R,

C O N NI E F A B R É

i nvest me nt as welc o me t o bri n g ne w pe o ple wit h ne w i deas a n d res o urces t o t he area. Of c o urse, m ost c o m m u nities a n d pe o ple f all s o me w here i n t he mi d dle, a n d m ost pe o ple belie ve t h at t heir c o m m u nit y is nice, b ut als o c o ul d be ne ﬁt fr o m gr o wt h, if m a n a ge d pr o perl y. Of c o urse, t he w or d “ pr o perl y” mea ns di ﬀere nt t hi n gs t o e ver y o ne as well. Th at’s li ke t he w or d “f air.” W h at is a “f air” t a x t o o ne is n ot t o a n ot her. It mi g ht see m f air t o re d uce ec o n o mic de vel o p me nt i nce ntives f or b usi nesses, b ut D O N O T t o uc h t he h o mestea d e xe m pti o n! Ag ai n, t he pers pective of eac h pers o n is w h at

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

I cert ai nl y d o n ot have all t he a ns wers, b ut I a m p utti n g f ort h t hese t h o u g hts as a st arti n g p oi nt t o c o nti n ue dial o g ue o n gr o wi n g t he Bat o n R o u ge re gi o n i n a p ur p osef ul wa y. A n or g a ni z ati o n calle d wealt h w or ks. or g ma y o ffer s o me cl ues. Wealt h w or ks pr ovi des g ui da nce f or ec o n o mic de vel o p me nt or g a ni z ati o ns o n h o w t o c h o ose w h o m t o o ffer i nce ntives t o. F or e xa m ple, t he y as k a b o ut w hat is i n de ma n d give n t he area bei n g o perate d i n. F or us, t hat w o ul d be nat ural res o urces s uc h as oil, nat ural g as a n d t he river. Fr o m t here t he y rec o m me n d e x pa n di n g o fferi n gs a n d c o n necti o ns i n t he ec o n o m y base d o n l ocal s u p pl y stre n gt hs. F or e xa m ple, if t here is a mar ket de ma n d f or stra w berries, t he n see k wa ys t o c o n nect l ocal j a m ma kers or a sc h o ol or h os pit al w h o ma y wa nt t o b u y fr o m a l ocal gr o wer. The m o del als o hel ps us t o t hi n k i n m ore di me nsi o ns, i ncl u di n g s ust ai na bilit y, t he e nvir o n me nt, a n d area pr o ble ms s uc h as cri me a n d u ne m pl o y me nt. Of c o urse t his is j ust o ne e xa m ple; I’ m s ure t here are m ore. G B RI A’s t a g li ne f or 1 3 years n o w has bee n “ A d di n g Val ue t o Yo ur C o m m u nit y.” The me m bers w h o de vel o pe d t hat i dea di d it i n a p ur p ose f ul wa y, a n d l ocal i n d ustr y tr ul y is a d di n g val ue. S o w hat’s i n it f or y o u? A j o b, a c h urc h, a sc h o ol, a h os pit al, a nei g h b or, a frie n d, a mate, a base ball tea m, a gr ocer y st ore. I m pr ove d r oa ds, e ntert ai n me nt ve n ues, a n d h otels c o me wit h pla nts. S o me n oise, s mells, tra ffic, a n d t he railr oa d d o c o me wit h i n d ustrial pla nts (a n d ot her i n d ustries), a n d t here is a n e nvir o n me nt al i m pact t hat o ur g over n me nt a n d c o m m u nit y deci de t o per mit. We als o get st ores f ull of great clea ners, l oti o ns, fres h f o o ds, t he latest me dici nes, c o mf ort a ble cars a n d s o m uc h m ore. Let’s kee p a n d gr o w i n d ustr y a n d o ur c o m m u nit y b y w or ki n g t o get her f or lasti n g s ol u ti o ns. Co n nie Fa bré is t he e xec uti ve director of t he Gre ater B ato n Ro uge I n d ustry Alli a nce I nc. 1 0 1 2i n d u str yr e p ort. c o m

A d a pt t o t h ri v e

DI M A G H A WI

n g a gi n g e m pl o yees acr oss ge nerati o ns has bee n c halle n gi n g or g a ni z ati o ns i n all i n d ustries, a n d t ac kli n g t his c halle n ge is critical f or i ncreasi n g c o m petitive ness. As I c o ns ult wit h or g a ni z ati o ns t o bri d ge t he ge nerati o n divi de, I re al i z e t here are t hree m ai n overl o o ke d are as t h at, if n ot f oc use d o n, will res ult i n eit her misse d o p p ort u nities or i ncre ase d ris k. 1. S U C C E S SI O N P L A N NI N G Ever y da y, 1 0, 0 0 0 ba b y b o o mers (a ge 5 2- 7 0) are reac hi n g retire me nt a ge. Acc or di n g t o t he A merica n Petr ole u m I nstit ute, as ma n y as 5 0 % of s kille d e ner g y w or kers ma y retire i n t he ne xt ﬁve t o se ve n years. Thi s is a massive tra nsiti o n t hat will s ha ke i n d ustries a n d p ose a maj or t hreat t o c o m pa nies t hat are n’t pre pare d t o tra nsfer lea ders hi p a n d preser ve t he k n o wle d ge of ba b y b o o mers. To av oi d t his t hreat, it is i m p ort a nt t o d oc u me nt j o b r oles a n d i m ple me nt a well t h o u g ht- o ut s uccessi o n pla n i n or der t o e ns ure a s m o ot her tra nsiti o n of lea ders hi p t o Ge n X (a ge 3 7- 5 1) a n d mille n nials (a ge 2 2- 3 6).

2. A D A P T A N D R E T AI N The mille n nials have alrea d y over t a ke n ba b y b o o mers as t he lar gest w or kf orce se g me nt i n A merica a n d are e x pecte d t o c o m prise 4 4 % of t he U. S. w or kf orce b y 2 0 2 5. It is di ffic ult f or mille n nials t o perf or m t heir best i n tra diti o nal w or k e nvir o n me nts i n w hic h ba b y b o o mers a n d Ge n Xers t hrive d. C o nse q ue ntl y, t he y leave t heir e m pl o yers h o pi n g t o fi n d a c ult ure t hat ali g ns m ore wit h t heir w or k st yle a n d val ues, a n d t he y re peat t his u ntil t he y fi n d t he ri g ht 1 0 1 2i n d u str yr e p ort. c o m

c ult ure. Their t ur n over is c osti n g t he U. S. ec o n o m y $ 3 0. 5 billi o n a n n uall y. It is i m p ort a nt f or c o m pa nies t o q uesti o n w hat t he y nee d t o d o i n or der create a n e nvir o n me nt c o n d ucive t o recr uiti n g a n d ret ai ni n g mille nnials. Acc or di n g t o Bl o o m ber g, mil le n nials are n’t t ur ni n g t o t he oil a n d g as i n d ustr y beca use t he y d o n’t see it as a n i n n ovative, hi g h-tec h, e v olvi n g i n d ustr y. I n a d diti o n, t he y feel t hat t he j o bs lac k w or k-life bala nce. I n or der t o c o nti n ue t o attract a n d ret ai n mille n nials, e ner g y c o m pa nies m ust c ha n ge t hese perce pti o ns. The y als o nee d t o c o m m u nicate a b o ut ot her t o pics relate d t o t he p ositive di ffere nce t hat t he y are ma ki n g i n t heir c o m m u nit y a n d t he w orl d, a n d t heir c o nti n ue d c o m mit me nt t o s u pp ort t heir e m pl o yees’ de vel o p me nt a n d career pat hs. 3. A W H O L E N E W G E N E R A TI O N Ge n Z (a ge 7- 2 1) is alrea d y e nter i n g t he w or k place i n lar ge n u m bers, a n d b y 2 0 2 0 is e x pecte d t o acc o u nt f or 2 0 % of t he w or kf orce. H o we ver, ma n y c o m pa nies are n ot pre pare d. Ge n Z is f oc use d a n d deter mi ne d t o ma ke a di ffere nce i n t he w orl d. The y are m otivate d b y a se nse of safet y a n d sec urit y, a n d if a n e m pl o yer o ffers t hat e nvir o n me nt, t he y will st a y. Thi s ne w ge nerati o n has o bser ve d t he pri or ge nerati o ns, es peciall y mille n nials, gra d uate wit h si g ni fica nt st u de nt l oa n de bt. W hile t he y val ue c olle ge e d ucati o n, t he y d o n ot wa nt t o live wit h t he b ur de n of pa yi n g o ff st u de nt l oa ns f or years. A maj orit y of t he m are willi n g t o w or k ri g ht after hi g h sc h o ol a n d will be l o o ki n g f or e m pl o y me nt o p p ort u nities t hat o ffer o n-t he-j o b trai ni n g a n d t uiti o n rei m b urse me nt pr o gra ms. Thi s prese nts a n o p p ort u nit y f or t he c o nstr ucti o n a n d oil a n d g as i n d ustries t o recr uit Ge n Z t o fill j o bs t hat d o n ot re q uire a c olle ge de gree. C o m pa nies m ust a da pt t o t hese c ha n ges t o av oi d misse d o p p ort unities or i ncrease d ris ks. The y ca n’t e x pect t he ne w ge nerati o n t o fit i n ol d m ol ds; i nstea d t he y m ust e m p o wer t he m b y creati n g a n e nvir o n me nt w here y o u n ger ge nerati o ns ca n t hrive. The n, s o will t he c o m pa nies. For more i nfor m atio n, visit di m ag h a wi.co m.

I s s u e D at e: 3 Q R T 2 0 1 7 A d 3 pr o of # 1

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Y O U R I N D U ST RY N E W S

NO W O NE C LI C K A W A Y

B AT O N R O U G E L A K E C H A RL E S HO USTO N

L AF A Y E T T E N E W O RL E A N S

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Co m p a ny

S P O T LI G H T S T h e P ar e t ti F a mil y of D e al er s hi p s B e ar Pr o c e s s S af e t y T ur n er I n d u s tri e s – S p e ci ali z e d Tr a n s p or t a ti o n Gr o u p E M C O C o m m u ni c a ti o n s / B e ar c o m I S C C o n s tr u c t or s, L L C

1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

S P E CI A L A D V E R TI SI N G S E C TI O N

L. Mi c h a el R a s e Jr.

T H E P A R E T TI F A MI L Y O F D E A L E R S HI P S AB O UT O U R C O MPA N Y

T O P E X E C U TI V E S

I n 1 9 3 4 J o s e p h A. P ar e Th o p e n e d hi s Thr st c ar s er vi c e c e nt er i n N e w Orl e a n s. Hi s f ut ur e t hr e e g e n er a Th o n s w o ul d e x p a n d t h at b u sin e s s t o a c q uir e a ut o m o bil e fr a n c hi s e s o v er t h e y e ar s t o i n cl u d e J a g u ar, M G, Tri u m p h, Al p h a R o m e o, P o n Th a c, M a z d a a n d L a n d R o v er. T h e P ar e Th F a mil y of D e al er s hi p s c urr e ntl y s ell s a n d s er vi c e s t h e M a z d a, J a g u ar a n d L a n d R o v er br a n d s i n b ot h N e w Orl e a n s a n d B at o n R o u g e. At a Th m e w h e n m a n y l o c al d e al er s hi p s h a v e b e e n s w all o w e d u p b y h u g e o ut of t o w n c or p or a Th o n s w h o s e m ai n f o c u s i s t h eir b o Th o m li n e, P ar e Th i s pr o u d t o b e a p art of a l o c all y o w n e d f a mil y b u si n e s s wit h a hi st or y of s er v i n g o ur c o m m u nit y f or cl o s e t o 9 0 y e ar s.

Cr ai g P ar e t ti Jr., Pr e si d e n t L. Mi c h a el R a s e Jr., Vi c e Pr e si d e n t

YE A R F O U N DE D 1934

N U M BE R OF E M PL O YEES 135

L O C A TI O N S

1 3 9 3 4 Airli n e Hi g h w a y B a t o n R o u g e, L A 7 0 81 7 4 0 0 0 V e t er a n s Bl v d. M e t airi e, L A 7 0 0 0 2

W H AT W E D O

T h e P ar e Th F a mil y of D e al er s hi p s c urr e ntl y s ell s a n d s er vi c e s M a z d a, J a g u ar a n d L a n d R o v er i n N e w Orl e a n s a n d J a g u ar a n d L a n d R o v er i n B at o n R o u g e. O ur p ur p o s e i s t o pr o vi d e q u alit y c u st o m er s er vi c e i n s o ut h er n L o ui si a n a. B ot h t h e N e w Orl e a n s a n d B at o n R o u g e d e al er s hi p s w o n t h e 2 0 1 7 Pi n n a cl e R et ail er E x c ell e n c e A w ar d f or e x c e p ti o n al s al e s, s er vi c e a n d c u st o m er s a ti sf a c ti o n. O nl y 1 6 J a g u ar a n d L a n d R o v er r et ail er s i n t h e U. S. e ar n t hi s di s ti n c ti o n e a c h y e ar.

O UTL O O K

T h e P ar e tti F a mil y of D e al er s hi p s i s e xtr e m el y o p ti mi s ti c a b o ut t h e f ut ur e. J a g u ar pr o u dl y o ff er s t w o 56

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

W E B SI T E

p ar e t ti. c o m

W H AT T O E X PE CTI N T HE F UT U RE

l u x ur y S U Vs i n t h e E- P A C E a n d F- P A C E. B ot h h a v e b e e n q uit e p o p ul ar a n d w e e x p e ct t h at st e a d y s al e s will c o n ti n u e i n o ur m ar k et s. L a n d R o v er c o n ti n u e s t o b e a c o n si st e nt p erf or m er i n b ot h m ar k et s, a s m o st s ol d m o d el s ar e pr e- or d er e d u nit s. A n d t h e M a z d a br a n d h a s c o n ti n u e d t o e x c e e d e x p e ct a ti o n s, wit h a m o d el li n e u p t h at o ff er s c ar s wit h pr e mi u m c o nt e nt at tr ul y a ff or d a bl e pri c e s.

O v er t h e n e x t t hr e e y e ar s o ur N e w Orl e a n s c a m p u s will s e e a c o m pl e t e m a k e o v er. T h e ﬁr s t b uil di n g t o g e t a n e n tir el y n e w l o o k will h o u s e P ar e t ti M a z d a, f oll o w e d b y a br a n d n e w J a g u ar L a n d R o v er d u al f a cili t y. P ar e t ti M a z d a j u s t b e c a m e t h e ﬁr s t a u t h ori z e d al u mi n u m r e p air f a cili t y i n t h e s t a t e f or J a g u ar L a n d R o v er. O n e of t h e m o s t e x ci ti n g pr o d u c t s o n t h e h ori z o n i s t h e all - el e c tri c J a g u ar I - P A C E, w hi c h will b e a v ail a bl e A u g u s t 2 01 8.

1 0 1 2i n d u str yr e p ort. c o m

S P E CI A L A D V E R TI SI N G S E C TI O N

B E A R P R O C E S S S AF E T Y O U R ST O RY

A Th er s p e n di n g y e ar s w at c hi n g t h e i n d u str y tr e at pr o c e s s s af et y a s a f o ot n ot e s er vi c e, A d a m B e ar y d e ci d e d t o b uil d t h e pr o c e s s s af et y c o n s ult a n c y t h at L o ui si a n a c o m p a ni e s n e e d e d. B e ar Pr o c e s s S af et y i s a pri v at el y- o w n e d pr o c e s s s af et y c o n s ult a n c y t h at d eli v er s f ull- s er vi c e i nt e gr at e d s ol u Th o n s b y l e v er a gi n g cli e nt- s p e ci Th c t e a m s. R at h er t h a n a p pr o a c hi n g e v er y r el a Th o n s hi p wit h a o n e- si z e- Tht sall a p pr o a c h, w e t a k e t h e Th m e t o u n d er st a n d y o ur c h all e n g e s a n d pr o vi d e i n n o v a Th v e s ol u Th o n s t h at g ui d e y o u t o s af et y e x c ell e n c e a n d c o m pli a n c e. O ur mi s si o n i s si m pl e: t o k e e p y o ur p e o pl e s af e a n d y o ur w or k pl a c e r u n ni n g.

O U R APP R OAC H

T o d e v el o p s u c c e s sf ul, l e a n, c u st o m s ol u Th o n s f or o ur cli e nt s, w e u s e t h e B SI a p pr o a c h. B uil d: H el pi n g y o u b uil d a pl a n fr o m s cr at c h. W e will w or k wit h y o ur t e a m t o d e v el o p a pl a n m el di n g i n d u str y b e st pr a c Th c e s wit h i nt er n al c o m p a n y g o al s. Str at e gi z e: H el pi n g y o u d e v el o p a str at e g y t o r oll o ut pr o c e s s s af et y i ni ti a ti v e s. W h et h er it b e a n e w d at a b a s e, s o ti w ar e, tr ai ni n g or st a n d ar d, B P S h a s e x p eri e n c e bri n gi n g it t o t h e m a s s e s f or s o m e of t h e bi g g e st c o m p a ni e s i n t h e c h e mi c al i n d u str y. I m pl e m e nt: A ti er e st a bli s hi n g a n e x c ell e nt pl a n, 1 0 1 2i n d u str yr e p ort. c o m

T O P E X E C U TI V E S A d a m B e ar y, C E O / P R E SI D E N T H o w ar d Ei s er, C O O / VI C E P R E SI D E N T

YE A R F O U N DE D 2 01 8

HE A D Q U A RTE RS

8 0 0 0 I n n o v a ti o n P ar k Dri v e, B uil di n g 3 0 0 0 B a t o n R o u g e, L A 7 0 8 2 0

y o u n e e d t h e r e s o ur c e s t o i m pl e m e nt it. B P S i s a n e xt e n si o n of y o ur t e a m, u si n g r e s ult s-f o c u s e d s ol u ti o n s t o e x e c ut e t h e pl a n f or t h e l o n g h a ul. A tti er i m pl e m e nt a ti o n, o ur t e a m will pr o vi d e u p d at e s a n d s y st e m a ti c c h a n g e s f or m a xi m u m s u st ai n a bilit y.

N E W T E R RI T O R Y

C e ntr al t o o ur dri v e t o a p pl y i n n o v a ff v e t e c h n ol o g y i n pr o c e s s s af et y, B P S i s d e v el o pi n g V R ( Virt u al R e alit y) a n d A R ( A u g m e nt e d R e alit y) m o d ul e s. Wit h V R tr ai ni n g, w e c a n gi v e p er s o n n el hi g hi m p a ct o p er a ti o n al e x p eri e n c e s wit h o ut s u bj e c ti n g t h e m t o a ct u al h a z ar d s, r e s ul ti n g i n gr e at er e x p er ti s e a n d c o n ff d e n c e. O ur g o al wit h A R a p p s i s t o str e a mli n e i nt e gr a ff o n b et w e e n o p er a ti o n s, tr ai ni n g, a n d d o c u m e nt a ti o n. T h e b e n e fit of a p p s i s t w of ol d; a m o bil e a p p will i n cr e a s e tr ai ni n g a n d o p er a ti o n al fl e xi bilit y t h u s r e d u ci n g l o st e ffi ci e n c y fr o m c o or di n a ti n g tr ai ni n g d a y s.

W E B SI T E

b e ar p s. c o m

NE W M A RKETS

A s w e gr o w wi t hi n o ur m ar k e t, w e ar e l o o ki n g t o e x p a n d i n t o i n n o v a ti v e a n d cr e a ti v e t e c h n ol o gi e s t o h el p o ur cli e n t s. T h o u g h t h er e ar e s af e t y t e c h c o m p a ni e s i n t h e m ar k e t, w e t hi n k t h a t B P S c a n o ďŹ&#x20AC; er u ni q u e s ol u ti o n s d e si g n e d t hr o u g h t h e l e n s of pr o c e s s s af e t y. W e k n o w b e s t t h e n e e d s a n d u ni q u e l a n d s c a p e e a c h o n e of o ur cli e n t s f a c e s.

I N D UST R Y O UTL O O K

T h e pr o c e s s s af e t y i n d u s tr y i s c o n ti n ui n g t o gr o w a s f a cili ti e s ar e c h a n n eli n g a n i n t e n s e f o c u s o n a c o m pr e h e n si v e s af e t y pl a n. T h e s e pr o gr a m s h a v e c o n ti n u all y r e d u c e d f a t ali t y a n d l o s t ti m e i nj ur y r a t e s i n t h e m a n uf a c t uri n g i n d u s tr y. T h e pri m ar y r o a d bl o c k i s i m pl e m e n ti n g t h e s e pl a n s t o a l ar g e m a s s of e m pl o y e e s. T h a t i s w h er e w e c o m e i n t o h el p.

1 0/ 1 2 I N D U S T R Y R E P O R T â&#x20AC;˘ T HI R D Q U A R T E R 2 0 1 8

S P E CI A L A D V E R TI SI N G S E C TI O N

T U R N E R I N D U S T RI E S – S P E CI A LI Z E D T R A N S P O R T A TI O N G R O U P AB O UT O U R C O MPA N Y

I n 1 9 6 1 a y o u n g e n gi n e er n a m e d B ert T ur n er b o u g ht Ni c h ol s C o n str u c Th o n C o. o ut of b a n k r u pt c y. T h e c o m p a n y s p e ci ali z e d i n i n d u stri al c o n str u c Th o n, h e a v y e q ui p m e nt, h a uli n g, ri g gi n g a n d e q ui p m e nt r e nt al. It di d n’t t a k e T ur n er l o n g t o r e ali z e t h e i n d u stri al c o n str u c Th o n i n d u str y w a s a s eri e s of p e a k s a n d v all e y s. H e b e g a n t o t a k e st e p s t o e n s ur e a st e a d y str e a m of r e v e n u e, e m b ar ki n g o n i n d u stri al c o ntr a ct m ai nt e n a n c e a n d ot h er s er vi c e s w hi c h f ul Thll e d t h e n e e d s of hi s cli e nt s. T ur n er I n d u stri e s’ e q ui p m e nt di vi si o n e x p a n d e d o v er t h e n e xt Th v e d e c a d e s t o o Th er m ul Th pl e i n d u stri al s er vi c e s, i n cl u di n g t ur n k e y s o l u Th o n s li k e h e a v y h a ul s /s p e ci ali z e d tr a n s p ort aTh o n pr oj e ct s.

W H AT W E D O

O ur s p e ci ali z e d tr a n s p ort a Th o n gr o u p i s c o m mit t e d t o pr o vi di n g s e a ml e s s t ur n k e y s er vi c e s wit h a pr o v e n tr a c k r e c or d of s af et y, r eli a bilit y, a n d e x e c u ti o n e x c ell e n c e. T h e s e s er vi c e s ar e o ti er e d l o c all y a n d n a ti o n wi d e t o cli e nt s i n t h e c o m m erci al a n d i n d u stri al s e ct or s. W e h a v e a n e xt e n si v e ti e et of v ari o u s l o w b o y s, h y dr a uli c tr ail er s a n d s elf- pr o p ell e d m o d ul ar tr a n s p ort er s u s e d o n h e a v y h a ul s. W h e n w e s a y “t ur n k e y,” w e m e a n

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

it. W e h a n dl e t h e c o or di n a ti o n of a n cill ar y s ervi c e s, i n cl u di n g si d e a n d o v er h e a d cl e ar a n c e of r o ut e, p er mit s a c q ui si tti o n, m a ti n g, b ar g e s e c ur em e nt a n d st or a g e, a n d e n gi n e er e d tr a n s p ort a ti o n dr a wi n g s, if r e q uir e d.

W H AT T O E X P E C TI N T H E F UT U RE

W e e x p e ct t o gr o w s p e ci ali z e d tr a n s p ort a ff o n s er vi c e s b y c o n ti n ui n g t o e x p a n d o ur ti e et, i n v e s ti n g i n t h e m o st t e c h n ol o gi c all y a d v a n c e d h a uli n g e q ui p m e nt. C o m pl e m e n ti n g t h e n e w a n d e x p a n di n g ff e et, o ur e m pl o y e e s p ar ff ci p at e i n a d v a n c e d m a n uf a ct ur er e q ui p m e nt tr ai ni n g t o e n s ur e s af et y a n d i n cr e a s e e ti ci e n c y. Al s o, T ur n er i s e st a bli s hi n g n e w o p er a ti o n s o fi c e s t hr o u g ho ut t h e S o ut h i n pl a c e s li k e Fr e e p ort, T e x a s, P e n s a c ol a, Fl ori d a, a n d m o st r e c e ntl y H ar a h a n, L o ui si a n a. T h e s e n e w f a cili ti e s all o w f or i n cr e a s e d s u p p ort a n d c o or di n a fl o n of s er vi c e s.

I N D UST R Y O UTL O O K

Wit h e c o n o mi c c o n di ffi o n s o n t h e ri s e, i n d u stri al f a cili ti e s a cr o s s t h e U. S. ar e i n cr e a si n g s p e n di n g o n c o n str u c ti o n a n d e x p a n si o n pr oj e ct s. T hi s pr e s e nt s m a n y o p p ort u ni ti e s f or h a uli n g o v er si z e d a p p ar at u s e s t hr o u g h o ut t h e r e gi o n.

T O P E X E C U TI V E S Mi k e M or ai n, E x e c u ti v e Vi c e Pr e si d e n t / G e n er al M a n a g er; G ar y Bl a c k e t t er, S p e ci ali z e d Tr a n s p or t a ti o n M a n a g er; J e s s e M or ai n, B a t o n R o u g e Br a n c h M a n a g er; J o h n A d a m s, Ri g gi n g S u p eri n t e n d e n t

N U M BE R OF E M PL O YEES 273

YE A R F O U N DE D 1 9 61

HE A D Q U A RTE RS 2 8 6 5 E M a s o n A v e. B a t o n R o u g e, L A 7 0 8 0 5

W E B SI T E t ur n er -i n d u s tri e s. c o m

1 0 1 2i n d u str yr e p ort. c o m

S P E CI A L A D V E R TI SI N G S E C TI O N

E M C O C O M M U NI C A TI O N S / B E A R C O M AB O UT O U R C O MPA N Y

E M C O’ s C o m m u ni c a Th o n Di vi si o n w a s a c q uir e d b y B e ar C o m i n J u n e 2 0 1 8 a n d i s r ef err e d t o a s E M C O C o m m u ni c a Th o n s / B e ar C o m - A B e ar C o m C o m p a n y. E M C O C o m m u ni c a Th o n s h a s b e e n p art of t h e gr e at er B at o n R o u g e ar e a si n c e it s i n c e p Th o n i n 1 9 6 2, a n d B e ar C o m w a s f o u n d e d i n 1 9 8 1. B e ar C o m i s N ort h A m eri c a’ s l ar g e st di stri b ut or a n d i nt e gr at or of wir el e s s v oi c e, d at a a n d vi d e o s ol u Th o n s f or mi s si o n cri Th c al a n d b u si n e s s cri Th c al c o m m u ni c a Th o n.

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E M C O C o m m u ni c a Th o n s / B e ar C o m will c o n Th n u e t o bri n g t h e l at e st i n wir el e s s c o m m u ni c a ti o n s t e c h n ol o g y a n d e m er g e n c y n o ti ti c a ti o n s er vi c e s

t o c u st o m er s i n t h e p etr o c h e mi c al a n d p u bli c s af et y /l a w e nf or c e m e nt i n d u stri e s a s w ell a s m a n y ot h er s. W e h a v e a ri c h hi st or y of o ti eri n g M ot or ol a S ol u tti o n s e q ui p m e nt a n d s er vi c e s u s i n g o ur u ni q u e, i n v al u a bl e e x p eri e n c e i n t h e v er y d e m a n di n g p etr o c h e mi c al e n vir o n m e nt i n t h e S o ut h e a st f or o v er 5 5 y e ar s.

O UTL O O K

T h e wir el e s s c o m m u ni c a ti o n s i n d u str y i s v er y str o n g a n d i s gr o wi n g. A s m e n ti o n e d a b o v e, o ur e x p er ff s e i s i n t h e p etr o c h e mi c al a n d p u bli c s af et y i n d u stri e s, a n d w e al s o h a v e a l o n g r e c or d of s er vi c e t o i n d u stri al c o n str u c ti o n c o m p a ni e s. E a c h of t h e s e i n d u stri e s i s str o n g a n d vi br a nt i n t h e S o ut h e a st.

T O P E X E C U TI V E S M ar k Kr o h, C hi ef E x e c u ti v e O ﬃ c er P a t C u n t z, Vi c e Pr e si d e n t L o ui si a n a M ar k e t

YE A R F O U N DE D 1962

N U M BE R OF E M PL O YEES 2 9 l o c al / 7 5 0 t o t al

L O C A TI O N

8 9 0 0 S o u t h C h o c t a w Dri v e, S t e. B B a t o n R o u g e, L A 7 0 81 5

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b e ar c o m. c o m

W H AT T O E X PE CTI N T HE F UT U RE

C o m bi ni n g t h e e x p er ti s e, e x p eri e n c e a n d l o c al i n d u s tr y k n o wl e d g e o ﬀ er e d b y E M C O C o m m u ni c a ti o n s – B e ar C o m wi t h t h e s tr e n g t h s a n d br e a d t h of t e c h ni c al c a p a bili ti e s of B e ar C o m N or t h A m eri c a will all o w t h e c o m p a n y t o d e li v er br o a d er a n d m or e i n n o v a ti v e s ol u ti o n s a n d s er vi c e s t hr o u g h o u t n u m er o u s i n d u s tri e s. T hi s gr o w t h will al s o all o w t h e c o m p a n y t o i n v e s t t hr o u g h o u t t h e g ulf c o a s t a n d l o c al c o m m u ni t y t o c o n ti n u e t o s u p p or t t h e p e tr o c h e mi c al, p u bli c s af e t y a n d c o m m er ci al m ar k e t s.

1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

S P E CI A L A D V E R TI SI N G S E C TI O N

I S C C O N S T R U C T O R S, L L C A B O UTIS C

I S C i s a n i n d u stri al e n gi n e eri n g a n d c o nstr u c Th o n c o m p a n y s p e ci ali zi n g i n c o m pr e h e n si v e el e ctri c al, i n str u m e nt a Th o n a n d c o ntr ol s s ol u Th o n s. O v er n e arl y 3 0 y e ar s, I S C h a s gr o w n t o e m pl o y o v er 2, 8 0 0 p e o pl e f o c u s e d o n d eli v eri n g r eli a bl e s er vi c e s wit h s u p eri or s af et y a n d q u alit y. Str at e gi c all y l o c at e d t hr o u g h o ut t h e G ulf S o ut h, I S C h a s b uilt a str o n g p art n er s hi p wit h gl o b al i n d u stri al m a n uf a ct uri n g l e a d er s b y s u c c e s sf ull y p erf or mi n g o n pr oj e ct s of all si z e s. I S C h a s e ar n e d n a Th o n al r e c o g ni Th o n f or i n n o v a Th v e s af et y, q u alit y a n d w or kf or c e d e v el o p m e nt pr o gr a m s. T hi s i s a Thri b ut e d t o t h e c o m p a n y’ s f o c u s o n i nt e grit y, w hi c h dri v e s p erf or m a n c e i n all ar e a s, e s p e ci all y s af et y a n d q u alit y. A s a r e s ult, I S C h a s e ar n e d 3 3 A s s o ci at e d B uil d er s a n d C o ntr a ct or s ( A B C) N a Th o n al Pr oj e ct of t h e Y e ar a w ar d s, 1 3 A B C N a Th o n al S af et y E x c ell e n c e a w ar d s a n d 1 1 Gr e at er B at o n R o u g e I n d u str y Alli a n c e ( G B RI A) W or kf or c e D e v el o p m e nt S af et y E x c ell e n c e a w ar d s. T h e c o m p a n y i s c o m mi Th e d t o s er vi n g t h e c o m m u nit y a n d s u p p or ti n g i ni ti a ti v e s t h at h el p all ci ti z e n s c o ntri b ut e t o s o ci et y. T hr o u g h I S C’ s H u m a nit ari a n C o m mi ti e e, a s s o ci at e s c o n tti n u e t o e xt e n d a h el pi n g h a n d t o h u n dr e d s of c h arit a bl e c a u s e s a n d s e e k u ni q u e o p p ort u ni ti e s f or t h e b e ti er m e nt of t h e c o m m u nit y. 60

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T O P E X E C U TI V E S J err y Ri s p o n e, C o - F o u n d er, O w n er, C E O E d di e Ri s p o n e, C o - F o u n d er, O w n er, C h air m a n D o n ni e D a vi d, Pr e si d e n t; Mi k e L a ti ol ai s, E x e c u ti v e Vi c e Pr e si d e n t, C F O; Gl e n G uli n o, E x e c u ti v e Vi c e Pr e si d e n t of O p er a ti o n s; T h a d Ri s p o n e, E x e c u ti v e Vi c e Pr e si d e n t

C O M P A N Y MI L E S T O N E S 1989 1994 1995 2005

2008

2011

2014 2015

– I S C w as f o u n d e d – I ntr o d u c ff o n of E n gi n e eri n g s er vi c e s – O p e n e d tir st of n o w t hr e e br a n c h o ti c e s – C o- F o u n d er E d di e Ri s p o n e a p p oi nt e d b y G o v. B o b b y Ji n d al a s C h air m a n of t h e L o ui si a n a Cr a ti W or kf or c e D e v el o p m e nt B o ar d – I S C si g n e d a N a ti o n al Tr ai ni n g S er vi c e A gr e e m e nt wit h t h e N a ff o n al C e nt er f or C o n str u c ff o n E d u c a ti o n R e s e ar c h – I S C r e c ei v e d t h e C o n str u c ti o n Us er s R o u n dt a bl e ( C U R T) N a fi o n al W or kf or c e D e v el o p m e nt a w ar d – I S C r e a c h e d $ 3 0 0 milli o n i n r e v e n u e – I S C c el e br at e d it s 2 5t h a n ni v er s ar y wit h all a s s o ci at e s a n d f a mili e s. C o- F o u n d er J err y Ri s p o n e, el e ct e d a s N C C E R B o ar d of Tr u st e e s’ C h air m a n

O UTL O O K

T h e U. S. e n er g y i n d u str y a n d d e m a n d f or c o n s u m er pr o d u ct s will c o n ti n u e t o dri v e i n d u stri al i n v e st m e nt. I S C i s w ell p o si fl o n e d t o pr o vi d e m a n uf a ct ur er s wit h i n d u str y-l e a di n g el e ctri c al, i n str u m e nt a ffi o n a n d c o ntr ol s s er vi c e s t o a c c o m m o d at e t h eir gr o wt h i ni ti a ti v e s.

N U M BE R OF E M PL O YEES 2, 8 0 0

HE A D Q U A RTE RS 2 0 4 8 0 Hi g hl a n d R o a d B a t o n R o u g e, L A 7 0 81 7 2 2 5. 7 5 6. 8 0 01

W E B SI T E i s c gr p. c o m

W H AT T O E X PE CTI N T HE F UT U RE

I S C i s d e di c a t e d t o pr o vi di n g i n n o v a ti v e, s af e a n d hi g h q u ali t y el e c tri c al, i n s tr u m e n t a ti o n a n d c o n tr ol s e n gi n e eri n g a n d c o n s tr u c ti o n s er vi c e s. T h e r e p u t a ti o n t h e c o m p a n y h a s e ar n e d s er v i n g gl o b al i n d u s tri al m a n uf a c t uri n g l e a d er s i s a t e s t a m e n t t o I S C’ s pr o v e n r e c or d of p erf or m a n c e a n d c o m mi t m e n t t o e x c ell e n c e b y w hi c h t h e c o m p a n y o p er a t e s. I n t h e f u t ur e, I S C will c o n ti n u e t o d eli v er r eli a bl e, i n n o v a ti v e s ol u ti o n s i n s u p p or t of i t s c u s t o m er s’ s tr a t e gi c o bj e c ti v e s.

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A n e x cl u si v e p r o g r a m f o r a d v a n ci n g p r o f e s si o n al s, e x e c u ti v e s a n d s m all b u si n e s s o w n e r s.

B ef o r e y o u a r e a l e a d e r, s u c c e s s i s all a b o ut g r o wi n g y o u r s elf. W h e n y o u b e c o m e a l e a d e r, s u c c e s s i s all a b o ut g r o wi n g ot h e r s. â&#x20AC;&#x201D; J A C K

P e r s o n al & P r of e s si o n al D e v el o p m e nt

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N et w o r ki n g wit h p r of e s si o n al p e e r s a c r o s s all i n d u st ri e s / o r g a ni z ati o n s

T o p C E O s p e a k er s p r o vi di n g l e a d e r s hi p i n si g ht & p e r s p e cti v e s

N o w a c c e pti n g a p pli c ati o n s! w w w. B R L e a d e r s hi p A c a d e m y. c o m 1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T â&#x20AC;˘ T HI R D Q U A R T E R 2 0 1 8

A D V E R TI S E M E N T

B r e c h e e n Pi p e & S t e el C o m p a n y

D a vi d C o ur t n e y, Fl e t c h er B a k er, A m y V eill o n, S u s a n D e N o v a, D a ni ell e Br e c h e e n, M ar y C arl o c k, C h a s e C arl o c k, Tr a vi s Mir e 2 2 5. 7 4 9. 3 5 5 3 | br e c h e e n pi p e a n d s t e el. c o m

D o n Br e c h e e n f o u n d e d Br e c h e e n Pi p e & St e el i n 1 9 8 0. Aft er w or ki n g f or a n ot h er st e el b u si n e s s a s a c o m mi s si o n- o nl y s al e s m a n, h e f elt h e c o ul d b e m or e s u c c e s sf ul w or ki n g f or hi m s elf. H e l eft t h at c o m p a n y, a n d t h e n e xt d a y Br e c h e e n Pi p e & St e el w a s b or n. G e ar e d pri m aril y t o w ar d t h e m ari n e i n d u str y, t h e b u si n e s s st art e d a n d b e g a n t o gr o w. T o d a y it pr o vi d e s c ar b o n, st ai nl e s s, al u mi n u m a n d all o y st e el s t o t h e p etr o c h e mi c al, r e ﬁ n er y, p ul p a n d p a p er, s u g ar, f a bri c at or, a n d c o n str u cti o n i n d u stri e s.

W H A T V A L U E S O R P RI N CI P L E S G UI D E Y O U R B U SI N E S S ? O ur c o m p a n y i s g ui d e d b y t h e f oll o wi n g pri n ci pl e s a n d v al u e s: w or ki n g h ar d er, s m ar t er a n d m or e e ﬃ ci e n tl y t h a n o ur c o m p e ti t or s, wi t h 62

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

t h e si m pl e pri n ci pl e t o pr o vi d e t h e b e s t q u ali t y pr o d u c t s a n d s er vi c e s t o all c u s t o m er s, l ar g e a n d s m all. Br e c h e e n i s h er e f or all.

W H A T’ S T H E BI G G E S T C H A L L E N G E T H E B U SI N E S S H A S F A C E D O V E R T H E Y E A R S A N D H O W DI D Y O U M E E T I T ? B ei n g a s m all b u si n e s s a n d c o m p e ti n g wi t h m u c h l ar g er c o m p a ni e s h a s i t s c h all e n g e s, b u t wi t h a s m all er b u si n e s s q ui c k d e ci si o n s c a n b e m a d e, w hi c h l e a d s t o l e s s r e d t a p e a n d d el a y s. W e h a v e m a d e i t t hr o u g h t h e oil b u s t i n t h e 1 9 8 0 s, al o n g wi t h t o u g h r e c e s si o n s. W e h a v e s e e n c o s t s s k yr o c k e t wi t h C hi n a p ur c h a si n g all w orl d wi d e s cr a p i n 2 0 0 7. Wi t h all of t h a t s ai d, w e h a v e al w a y s m a n a g e d t o h a v e t h e b e s t q u ali t y pr o d u c t s i n s u ﬃ ci e n t q u a n ti ti e s t o s er vi c e o ur b u si n e s s p ar t n er s, t h u s gr o wi n g o ur c o m p a n y a n d b ei n g s u c c e s sf ul i n o ur m ar k e t.

H O W I S I T W O R KI N G WI T H F A MI L Y ? W or ki n g wi t h f a mil y h a s a d v a n t a g e s a s w ell a s di s a d v a n t a g e s. All m u s t b e willi n g t o p u t i n e x tr a e ﬀ or t s w h e n r e q uir e d. S o m e ti m e s w e mi s s L S U g a m e s t o c o m e t hr o u g h f or a c h e mi c al pl a n t i n di s tr e s s. W e m a y mi s s a f a mil y f u n c ti o n t o h el p o u t o ur c u s t o m er s af t er h o ur s or o n h oli d a y s, b u t i n t h e e n d b ei n g y o ur o w n b o s s i s v er y r e w ar di n g.

H A S Y O U R B U SI N E S S S T A Y E D T R U E T O T H E F O U N DI N G VI SI O N ? H O W H A S I T C H A N GE D O VE R T HE YE A RS? M y f a t h er’ s ori gi n al vi si o n f or t hi s c o m p a n y s till h ol d s v er y tr u e t o d a y. W e s tri v e t o b uil d h o n e s t a n d l a s ti n g r el a ti o n s hi p s t hr o u g h tr u s t a n d e x c ell e n t c u s t o m er s er vi c e a n d d e di c a ti o n t o t h e i n d u s tr y w e s er v e.

SI N C E Y O U W O R K T O G E T H E R, W H E R E A N D H O W D O Y O U LI K E T O R E L A X A S A F A MI L Y ? W e h a v e al w a y s e nj o y e d g e t ti n g t o g e t h er a s a f a mil y a t e a c h o t h er’ s h o u s e s f or b ar b e c u e s, cr a w ﬁ s h b oil s or L S U g a m e s, or g a t h eri n g a t l o c al r e s t a ur a n t s. Gi n o’ s, S ulli v a n’ s a n d S t a b’ s ar e a f e w of o ur f a v ori t e s. I n or d er t o h a v e a b al a n c e d r el a ti o n s hi p, o n e m u s t l e a v e w or k a t w or k a n d e nj o y e a c h o t h er’ s c o m p a n y a s a f a mil y.

W H A T’ S O N T H E H O RI Z O N F O R Y O U R C O M P A N Y? G R O W T H! W e h a v e gr o w n s t e a dil y si n c e 1 9 8 0, a n d I w o ul d l o v e t o s e e o ur c o m p a n y c o n ti n u e t hi s tr e n d. M or e tr u c k s o n t h e r o a d s er vi ci n g t h e i n d u s tri al c orri d or fr o m B a t o n R o u g e t o t h e G ulf C o a s t of L o ui si a n a w o ul d b e a gr e a t si g n of a c hi e v e m e n t. 1 0 1 2i n d u str yr e p ort. c o m

C L O SI N G N O T E S E X E C U TI V E M O V E S

H U NTE R

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J O NE S W AL KE R J o n at h a n A. H u nt er h as j oi ne d J o nes Wal ker as a p art ner o n t he E ner g y I n d ustr y Te a m i n t he Ne w Orle a ns o ffice. H u nter de v otes his practice f ull ti me t o re prese nti n g oil a n d g as c o m p a nies. Wit h 3 0 ye ars of liti g ati o n, ne g oti ati o n a n d c o u nseli n g e x perie nce, H u nter w or ks wit h E & P c o m p a nies o n m atters aris i n g u n der t he fe deral st at utes t h at g over n o perati o ns o n fe deral l a n ds o ffs h ore ( G ulf of Me xic o, Paci fic a n d Atl a ntic oce a ns, o ffs h ore Al as k a) a n d o ns h ore. F R A N K’ S I N T E R N A TI O N A L After 2 6 ye ars wit h Fra n k’s I nter n ati o n al, B ur n e y “ B.J.” L ati ol ais Jr. will be le avi n g t he c o m p a n y at t he e n d of 2 0 1 8. Fr o m be gi n ni n g his ne arl y 4 0- ye ar c areer i n oil ser vices as t he f o u n der a n d C E O of L o uisi a n a Tu bi n g Testers a n d Ce ntrali zers t o his r ole as presi de nt of Tu b ul ar R u n ni n g S er vices at Fra n k’s I n ter n ati o n al, L ati ol ais w or ke d i n t he m ar keti n g a n d i n n ov ati o n of a br o a d ra n ge of oil fiel d ser vices a n d pr o d uct li nes. I n his v ari o us le a der s hi p p ositi o ns at Fra n k’s, L ati ol ais h as bee n i nstr u me nt al i n t he gl o b al e x p a nsi o n of t he c o m p a n y’s pr o d uct a n d ser vices li nes as well as i n t he desi g n a n d de vel o p me nt of 2 0 p ate nts rel ate d t o oil fiel d t o ols a n d a p plic ati o ns. St e v e R uss ell h as bee n pr o m ote d t o t he r ole of presi de nt of Tu b ul ar R u n ni n g S er vices. R ussell h as m ore t h a n 2 5 ye ars of o pera ti o n al a n d a d mi nistrative e x perie nce wit h oil fiel d ser vices c o m p a nies, i ncl u di n g i nter n ati o n al assi g n me nts i n ni ne c o u ntries.

1 0 1 2i n d u str yr e p ort. c o m

R USSELL

D UTTA

E N LI N K MI D S T R E A M B e nj a mi n D. L a m b w as pr o m ote d t o e xec utive vice presi de nt a n d c hief o perati n g o fficer. He will le a d c o m merci al a n d o perati o n al e ff orts acr oss all of E n Li n k’s asset are as. Al ai n a K. Br o o ks w as pr o m ote d t o E n Li n k’s E xec utive Le a ders hi p Te a m as e xec utive vice presi de nt, c hief le g al a n d a d mi nistrative o fficer, a n d secret ar y. S he will le a d se veral de p art me nts acr oss t he c o m p a n y, i ncl u di n g le g al, re g ul at or y, h u m a n res o urces, p u blic a n d i n d ustr y a ff airs, a n d e nvir o n me nt al, he alt h, a n d s afe t y. Eric D. B atc h el d er , e xec utive vice presi de nt a n d c hief fi n a nci al o fficer, will a d d c or p orate de vel o p me nt t o his C F O res p o nsi bilities, le a di n g t he c o m p a n y’s strate g y ar o u n d i nvest me nts, gr o wt h o p p ort u nities a n d fi n a nci n g. B E R N H A R D E N E R G Y S O L U TI O N S Ber n h ar d E ner g y S ol uti o ns h as n a me d a ne w C E O, E d Ti nsl e y , t o re pl ace St e v e N at h a ns o n , t he vetera n e ner g y e xec utive w h o is retiri n g after a little m ore t h a n t w o ye ars at t he hel m of t he c o m p a n y. Ti nsle y h as m ore t h a n 3 5 ye ars of e x peri e nce i n t he fiel d of e ner g y ser vices a n d s ol uti o ns a n d is a c o-f o u n der of Ber n h ar d T M E a n d t he c urre nt C E O of Ber n h ar d E ner g y, t w o of t he f o ur divisi o ns t h at c ollectivel y m a ke u p Ber n h ar d E ner g y S ol uti o ns. B R A U NI NTE RTE C Bra u n I ntertec, a n e n gi neeri n g, c o ns ulti n g a n d testi n g fir m wit h o ffices t hr o u g h o ut t he ce ntral U nite d St ates, h as a d de d A m al D utt a , M B A, P h. D., P. E., t o its Te x as Cit y, Te x as, o ffice as a pri nci p al ge otec h ni c al e n gi neer. D utt a bri n gs m ore t h a n 2 0 ye ars of le a ders hi p a n d e n gi neer -

JE NSE N

M CLELL A N

i n g e x perie nce i n m ulti disci pli n ar y ge oe n gi neeri n g fiel ds, i ncl u di n g ge otec h nic al e n gi neeri n g desi g n a n d c o ns ulti n g practices, ge ol o gic al e x pl orati o n, mi ni n g, ge o p h ysics a n d seis mic d at a a n al ysis. He h as m a n a ge d h u n dre ds of ge otec h nic al e n gi neeri n g pr ojects acr oss t he G ulf C o ast re gi o n of Te x as a n d L o uisi a n a. A L LI A N T Alli a nt a n n o u nce d t he a d diti o n of Bri a n H ot ar d as vice presi de nt wit hi n t he fir m’s E ner g y a n d Mari ne Gr o u p. H ot ar d will pr ovi de i ns ur a nce a n d ris k m a n a ge me nt s ol uti o ns t o a re gi o n al clie nt b ase. He j oi ns Alli a nt wit h e xte nsive e x perie nce pr ovi di n g a f ull ra n ge of pr o pert y a n d c as u alt y i ns ura nce s ol uti o ns t o clie nts t hr o u g h o ut t he G ulf S o ut h. Pri or t o j oi ni n g Alli a nt, he w as a pr o d uci n g a ge nt wit h a l ar ge re gi o n al i ns ura nce br o kera ge fir m, w here he s peci ali ze d i n clie nts wit hi n t he e ner g y a n d m ari ne sect ors. P O RT OF NE W O RLE A N S G ov. J o h n Bel E d w ar ds a p p oi nt e d J ac k C. Je ns e n Jr. t o t he B o ar d of C o m missi o ners of t he P ort of Ne w Orle a ns as o ne of t w o Jef fers o n Paris h re prese nt atives o n t he se ve n- me m ber re gi o n al b o ar d. Je nse n w as s w or n i n d uri n g t he J u ne b o ar d meeti n g a n d will ser ve a five- ye ar ter m s uccee di n g R o bert R. Bar ker di n g Jr. I n 1 9 8 3 Je nse n f o u n de d Tra ns p ort ati o n C o ns ult a nts I nc., als o k n o w n as T CI Tr uc ki n g a n d Ware h o usi n g, a n d l ater f or me d Je nse n C o m p a nies. The h ol di n g c o m p a n y o perates i n m a n y are as i ncl u di n g tr uc ki n g, w are h o usi n g, re al est ate de vel o p me nt, resi n a n d p ol y ole fi n p ac k a gi n g, m ar ble, gra nite a n d pl u m bi n g distri b uti o n, i m p ort grai n

PE RÉ

C ALL A H A N

a n d see d sterili z ati o n, t hir d- p art y l o gistics, a n d c ust o ms h o use br o kera ge ser vices. A C A DI A N A R E GI O N A L AI R P O R T The I beri a Paris h Air p ort A ut h or it y a n d I beri a Paris h G over n me nt welc o me d M e g a n Mc L ell a n as t he ne w e xec utive direct or f or t he I beri a Paris h Air p ort A ut h orit y. Mc Lell a n will be res p o nsi ble f or t he m a n a ge me nt a n d d ail y activities f or t he t w o ge neral avi ati o n air p orts t h at are o w ne d a n d o perate d b y t he a ut h or it y: Ac a di a n a Re gi o n al Air p ort i n Ne w I beri a a n d Le Maire Me m ori al Air p ort i n Je a nerette. Mc Lell a n is a f or mer pl a n ner wit h t he Te x as De p art me nt of Tra ns p ort ati o n, Avi ati o n Divisi o n, a n d St ate Avi ati o n Pr o gra m Ma n a ger f or t he L o uisi a n a D O T D. S he h as als o ser ve d o n t he e xec utive m a n a ge me nt te a m f or C he n n a ult I nter n ati o n al Air p ort i n L a ke C h arles. DANOS Da n os h as a p p oi nte d t w o e xec utive te a m me m bers t o ne w r oles: R e e d Per é will ser ve as vice preside nt of b usi ness de vel o p me nt, s ales a n d m ar keti n g, a n d J a m es C all a h a n as vice presi de nt of o perati o ns. Peré h as over a dec a de of i n d ustr y e x perie nce a n d be g a n his c areer wit h Da n os i n 2 0 0 6. He receive d t he a w ar d f or Da n os’ St a ﬀ E m pl o yee of t he Ye ar i n 2 0 1 2 a n d j oi ne d t he e xec utive te a m as vice presi de nt of pr o d ucti o n ser vices i n 2 0 1 5. I n his ne w r ole Peré will be b ase d pri m aril y i n Da n os’ H o ust o n o ﬃce. I n C all a h a n’s m ove fr o m vice presi de nt of pr oject ser vices t o vice presi de nt of o perati o ns, he will a bs or b t he pr o d ucti o n ser vices res p o nsi bilities w hic h Peré pre vi o usl y overs a w.

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C L O S I N G N O T E S:

C O M P A N Y NE WS

D A N O S HI T S S A F E T Y M A R K S Gra y, L o uisi a n a- b ase d Da n os h as re p orte d a series of s afet y milest o nes t his ye ar: Da n os’ Fa bric ati o n S ervices c o m plete d ni ne ye ars wit h n o rec or d a ble i nci de nts. Thi s tra nsl ates t o ne arl y 1. 3 milli o n m a n- h o urs. I n a d diti o n, t he Da n os te a m w or ki n g wit h a Per mi a n B asi n e x pl orati o n a n d pr o d ucti o n c o m p a n y rec or de d t hree ye ars wit h o ut a rec or d a ble i nci de nt, t ot ali n g ne arl y 1 milli o n m a n- h o urs. A n ot her Da n os te a m w or ki n g f or a c ust o mer i n P ort F o urc h o n h as re ac he d 1 1 ye ars wit h z er o rec or d a ble i nci de nts. Fi n all y, Da n os’ c o nstr ucti o n ser vice li ne h as w or ke d 1 milli o n m a n- h o urs wit h o ut a rec or d a ble i nci de nt. The c o m p a n y c urre ntl y h as over 6 0 0 e m pl o yees w or ki n g i n are as of c o n str ucti o n. Pr oject l oc ati o ns i ncl u de t he G ulf of Me xic o, Per mi a n B asi n, M arcell us S h ale, Da n os’ A meli a f acilit y a n d o ns h ore l oc ati o ns acr oss s o ut h L o uisi a n a. I N N O V A TI O N P A R K G E T TI N G N E W R O A D W A Y The L S U I n n ov ati o n Par k will get a ne w “fr o nt d o or,” t h a n ks t o a $ 1. 6 milli o n gra nt fr o m t he U. S. De p art me nt of C o m merce’s Ec o n o mic De vel o p me nt A d mi nistrati o n a n d L o uisi a n a Ec o n o mic De vel o p me nt. The gra nt will pr ovi de f or a ne w r o a d w a y i nfrastr uct ure f or t he rese arc h p ar k i n s o ut h B at o n R o u ge, w hic h c urre ntl y h as 4 4 b usi nesses t h at e m pl o y 2 8 4 pe o ple. A b o ut 1 5 0 a d diti o n al acres will b e als o de vel o pe d t o acc o m m o d ate u p t o 7 5 ne w c o m p a nies. The Nati o n al G u ar d will use t he ne w r o a d w a y t o access its trai ni n g a n d dis aster rec over y ce nter. C O R T E C WI N S L A N T E R N A W A R D H o u m a- b ase d C O R T E C h as w o n a 2 0 1 8 L a nter n A w ar d fr o m L o ui si a n a Ec o n o mic De vel o p me nt. L a nter n A w ar d wi n ners de m o nstrate 64

e xcelle nce i n m a n uf act uri n g a n d o utst a n di n g ser vice t o t heir c o m m u nities t hr o u g h t he i nv olve me nt of t heir b usi nesses a n d e m pl o yees. Wi n ners are selecte d b y L o uisi a n a’s ei g ht Re gi o n al Pl a n ni n g a n d De vel o p me nt Districts. E ac h b usi ness m ust de m o nstrate s ust ai n a bilit y b y re m ai ni n g i n o p erati o n at le ast t hree ye ars pri or t o t he n o mi n ati o n. F o u n de d i n 2 0 0 3, C O R T E C s u p plies t he oil a n d g as i n d ustr y wit h ﬂ o w c o ntr ol pr o d ucts b ac ke d b y s u p eri or ser vice. C O R T E C desi g ns, e n gi neers, m a n uf act ures, asse m bles a n d tests its pr o d ucts i n L o uisi a n a u n der A PI 6 A a n d 1 6 C lice nses. It is als o a re gistere d I S O 9 0 0 1 m a nuf act urer. C O R T E C h as t w o m ai n m a n uf act uri n g l oc ati o ns i n H o u m a a n d P ort Alle n. S H ALE S U P P O RT B U YS L O UI SI A N A MI N E S S h ale S u p p ort, a pr ovi der of frac-s a n d a n d l o gistic al s ol uti o ns t o t he oil a n d g as pr o p p a nt m ar ket, h as cl ose d o n a de al p urc h asi n g t w o n at ural mi nes i n Ki n der a n d ce ntral L o uisi a n a. Thi s e x p a nsi o n a d ds 2 milli o n t o ns of n a me pl ate c a p acit y t o S h ale S u p p ort, i ncre asi n g t he or g a ni z ati o n’s t ot al c a p acit y t o 5 mil li o n t o ns a n n u all y. “ Thi s e x p a nsi o n all o ws us t o c o nti n ue o ur strate g y of b ei n g t he hi g h- q u alit y, l o w- c ost pr o p p a nt s u p plier t o t he H a y nes ville, A usti n C h al k, M arcell us / Utic a a n d E a gle F or d s h ale pl a ys,” s a ys Je ﬀre y B artl a m, presi de nt a n d c o-f o u n der. AI R P R O D U C T S O P E N S N E W S M R Air Pr o d ucts hel d a ri b b o n-c utti n g e ve nt i n J u ne at t he C ovestr o L L C Ba yt o w n, Te xas, i n d ustrial par k, w here Air Pr o d ucts has i nveste d over $ 3 5 0 milli o n t o b uil d, o w n a n d o perate a w orl d-scale stea m met ha ne ref or mer. The S M R is pr o d uci n g h y dr o ge n a n d car b o n m o n o xi de t o

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be s u p plie d at Ba yt o w n t o C ovestr o a n d t o ot her c ust o mers li n ke d t o Air Pr o d ucts’ G ulf C oast Hy dr o ge n a n d C O Pi peli ne Net w or ks. The ne w S M R was b uilt t hr o u g h t he gl o bal h y dr o ge n allia nce bet wee n Air Pr o d ucts a n d Tec h ni p F M C. The pla nt feat ures t he latest tec h n ol o g y t o ma xi mi ze e ner g y e fficie nc y a n d red uce e missi o ns, a n d i ncl u des o pti mal heat i nte grati o n, w hic h i n t ur n l o wers fee dst oc k c o ns u m pti o n. tie pla nt c o n fi g urati o n a n d de pl o ye d tec h n ol o gies s u p p ort Air Pr o d ucts’ overall s us t ai na bilit y g oals of re d uci n g e ner g y c o ns u m pti o n a n d e missi o ns, t he c o m pa n y n ote d. tie ne w pla nt c o n nects t o Air Pr o d ucts’ e xisti n g 6 0 0- mile G ulf C oast Pi peli ne, w hic h stretc hes fr o m t he H o ust o n S hi p C ha n nel i n Te xas t o Ne w Orlea ns a n d s u p plies c ust o mers wit h over 1. 4 billi o n feet of h y dr o ge n per da y fr o m 2 3 h y dr o ge n pr o d ucti o n facilities. A S S P I N S T A L L S O F FI C E R S tie Greater Bat o n R o u ge C ha pter of t he A merica n S ociet y of Safet y Pr ofessi o nals i nst alle d t he f oll o wi n g o fficers f or t he 2 0 1 8- 2 0 1 9 c ha pter year: Da niel Slatter y of Ge nerative Safet y & H u ma n Perf or ma nce, pres i de nt; A n dre w D o w ni n g of Jac o bs, vice- presi de nt; Ja ke Vale nti of O x y C he m, treas urer; L ase y ti o m ps o n of Safet y Pr o Res o urces, secret ar y; J ulie R o ussel of tie D O W C he mical C o., past presi de nt; Bra n d o n S mit h of t he Greater Bat o n R o u ge I n d ustr y Allia nce, dele g ate; a n d Jere m y Miller of Perf or ma nce C o ntract ors, me m ber- at-lar ge. B E A R C O M A C Q UI R E S E M C O G R O U P B e ar C o m Gr o u p I nc., a pr ovi der of wireless c o m m u nic ati o ns e q ui p me nt a n d s ol uti o ns f or t w o- w a y ra di os a n d ot her v oice a n d d at a tec h n ol o gies, h as ac q uire d t he C o m m u nic ati o ns Gr o u p of E M C O Tec h n ol o gies. E M C O Tec h n ol o gies I nc. will re m ai n i n b usi ness, o w ni n g a n d o p erati n g t he c o m p a n y’s e xisti n g I nf or m ati o n Tec h n ol o g y divisi o n. ttie ne w c o m p a n y will b e referre d t o as “ E M C O C o m m u nic ati o ns / B e ar C o m - A B e ar C o m C o m p a n y” d uri n g a p eri o d of tra nsiti o n. tie 2 9 f or mer E M C O C o m m u nic ati o ns Gr o u p e m pl o yees will re m ai n a n d b ec o me me m b ers of t he B e ar C o m te a m, i ncl u di n g f or mer c o- C E O a n d presi de nt of t he C o m m u nic ati o ns

Gr o u p, Pat C u nt z, w h o is n o w vice presi de nt of t he L o uisi a n a M ar ket, Be ar C o m. E M C O C o m m u nic ati o ns is l oc ate d i n B at o n R o u ge, wit h a s atellite f acilit y i n H a m m o n d t o hel p deliver fiel d ser vices a n d l o gistics s u p p ort t hr o u g h o ut L o uisi a n a a n d t he G ulf C o ast re gi o n. F O X- N E S BI T R E L O C A T E S B R O F FI C E F o x- Nes bit a n n o u nce d its B at o n R o u ge o ffice h as e x p a n de d a n d rel oc ate d t o a n u p gra de d a n d pr ofessi o n al f acilit y at 9 1 0 0 Bl ue b o n net Ce ntre. tie fir m c urre ntl y h as ni ne re gistere d pr ofessi o n al e n gi neers a n d a t ot al st a ff of 2 0 i n o ffices i n B at o n R o u ge a n d Ne w Orle a ns. F o x- Nes bit is a str uct ural a n d civil e n gi neer i n g fir m t h at pr ovi des c o ns ulti n g e n gi neeri n g ser vices t o t he c o m merci al a n d li g ht i n d ustri al m ar kets al o n g t he G ulf C o ast. E X X O N M O BI L P L A N S MET H A NE C UTS E x x o n M o bil i n M a y a n n o u nce d gree n h o use g as re d ucti o n me as ures t h at are e x pecte d t o le a d t o si g nific a nt i m pr ove me nts i n e missi o ns perf or m a nce b y 2 0 2 0, i ncl u di n g a 1 5 % decre ase i n met h a ne e missi o ns a n d a 2 5 % re d ucti o n i n fl ari n g. ffe c o m p a n y als o a n n o u nce d its i nte n ti o n t o i m pr ove its e ner g y e fficie nc y i n re fi ni n g a n d c he mic al m a n uf act uri n g f acilities. tie c o m p a n y s ai d its X T O E ner g y s u bsi di ar y’s le a k- detecti o n- a n d-re p air e ff orts a n d o perati o n al i m pr ove me nts at U. S. pr o d ucti o n a n d mi dstre a m sites h ave re d uce d esti m ate d met h a ne e missi o ns acr oss E x x o n M o bil o pera ti o ns b y 2 % i n t he p ast ye ar. S A F E T Y S T A R T U P J OI N S L B T C S afet y m a n a ge me nt s ol uti o ns fir m Be ar Pr ocess S afet y is t he ne west te n a nt at t he L o uisi a n a B usi ness a n d Tec h n ol o g y Ce nter, l oc ate d at L S U I n n ov ati o n Par k i n B at o n R o u ge. Be ar Pr ocess cre ates pr o gra ms t o kee p petr oc he mic al pl a nt e m pl o yees s afe a n d pr ovi des a u diti n g ser vices t o deter mi ne if c o m p a nies are i n li ne wit h O S H A st a n d ar ds. B P S Presi de nt a n d C E O A d a m Be ar y s a ys t he m ove t o L B T C will hel p t he y o u n g c o m p a n y better re ac h clie nts. S C H N EI D E R B U L K O F F E RI N G S TI L L G R O WI N G L o gistics c o m p a n y Sc h nei der 1 0 1 2i n d u str yr e p ort. c o m

re p orts t h at its B ul k di visi o n, w hic h is res p o nsi ble f or t he tr a ns p ort ati o n of li q ui d pr o d ucts, h as re ac he d its si xt h a n nivers ar y. Sc h nei d er c alls t he B ul k divisi o n o ne of t he s hi ppi n g i n d ustr y’s first b ul k i nter m o d al c o nt ai ner m o ve me nt pr o gr a ms. I n t he first si x m o nt hs of 2 0 1 4, t he c o m p a n y re p orts, c a p acit y- cr u nc he d c he mic al s hi p p ers l atc he d o nt o Sc h nei d er’s b ul k i nter m o d al o fferi n g, i ncre asi n g t he c o m p a n y’s v ol u me b y 7 5 %. First- q u arter 2 0 1 8 res ults s h o w t h at b ul k i nter m o d al v ol u me c o nti n u es t o gr o w, i ncre as i n g 1 3. 5 % ye ar- o ver- ye ar. Th e gr o wt h of t he c he mic al i n d ustr y als o c o ntri b utes t o t he d e m a n d, t he c o m p a n y s a ys.

m a n y pr o ble ms rel ate d t o usi n g p a p er tic kets /f or ms a n d s pre a ds heets t o c a pt ure i nf or m ati o n i n t he fiel d, h ave f or me d a strate gic rel ati o ns hi p t h at will assist oil fiel d a n d ot her c o m p a nies i n t heir e ff orts t o i ncre ase t he e fficie nc y of t heir b usi ness pr ocesses. E ner g y O n R a m p a n d Cle ar gisti x b ot h f oc us o n oil fiel d c ust o mers, a m ar ket still d o mi n ate d b y t he use of p a p er- b ase d met h o ds a n d ot her o ut d ate d tec h n ol o gies t o c ollect i nf or m ati o n fr o m t he fiel d a n d m a n a ge w or k fl o w pr ocesses.

E X X O N M O BI L R E P O R T S 2 0 1 7 HI G H E R E D S U P P O R T E x x o n M o bil a n d its e m pl o yees c o ntri b ute d ne arl y $ 2. 7 milli o n t o 2 1 i nstit uti o ns of hi g her e d uc ati o n C L E A R GI S TI X P A R T N E R S acr oss L o uisi a n a as p art of t he F O R OI L FI E L D S O L U TI O N S E x x o n M o bil F o u n d ati o n’s 2 0 1 7 E d E ner g y O n R a m p L L C, a Mi d uc ati o n al M atc hi n g Gift Pr o gra m. l a n d, Te x as- b ase d tec h n ol o g y gr o u p E x x o n M o bil e m pl o yees, retirees, t h at a dvises a n d assists clie nts wit h direct ors a n d s ur vivi n g s p o uses c o n t he e fficie nt utili z ati o n of e xisti n g tri b ute d m ore t h a n $ 7 0 9, 0 0 0 t o 2 1 a n d ne w tec h n ol o g y, a n d M a dis o n L o uisi a n a c olle ges a n d u niversities, ville, I s s u Leo Duisi at ae:n a-1 b0/ase1 d0/ Cle 1 7ar gisti A d xpr o of # 1w hic h w as m atc he d b y m ore t h a n n d obyper e- m of ail ora fdi ax git wit al h yofiel ur a dp prov al or mi nor ns. o n i n u nrestricte d gra nts L• LPleC,asea resdepovel $ 1.revisio 9 milli • A D WILL R U N A S I S u nless a p prov al or fi n al revisio ns ticare keti n g s ol uti o n t h at eli mi n ates t he fr o m t he f o u n d ati o n. receive d by t he close of b usi ness to d ay. • A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees.

CI T G O A N N O U N C E S S C H O L A R S HI P S CI T G O Petr ole u m C or p. h as a n n o u nce d sc h ol ars hi ps a w ar de d t o e n gi neeri n g a n d b usi ness st u de nts at Mc Neese St ate U niversit y a n d hi g h sc h o ol gra d u ates e nteri n g S O W EL A Tec h nic al C olle ge. The sc h ol ar s hi ps are i n c o or di n ati o n wit h se veral ot her CI T G O sc h ol ars hi p a w ar ds t his ye ar a n d t he CI T G O scie nce, tec h n ol o g y, e n gi neeri n g a n d m at h ( S T E M) Tale nt Pi p eli ne pr o gra m. The M S U e n gi neeri n g sc h ol ars hi p reci pie nts e ac h receive d a CI TG O-s p o ns ore d sc h ol ars hi p t o w ar ds t heir c olle ge e d uc ati o n — $ 5, 0 0 0 e ac h i n sc h ol ars hi p f u n ds w as a w ar de d t o t he mec h a nic al a n d c he mic al e n gi neeri n g disci pli nes. CI T G O a w ar de d a t ot al of $ 2 5, 0 0 0 t o f o ur st u de nts p urs ui n g hi g her e duc ati o n i n S T E M-rel ate d pr o gra ms at S O W E L A. G A L E N F E H A T O B U Y L O UI SI A N A OI L A N D G A S B U SI N E S S Gale nfe h a I nc. a n n o u nce d t he c o m p a n y si g ne d a letter of i nte nt t o ac q uire S hre ve p ort- b ase d Fle a u x S er vices of L o uisi a n a L L C, a n oil

a n d g as me as ure me nt c o m p a n y, f or $ 1 8 milli o n. The ac q uisiti o n is c o nti n ge nt o n Gale nfe h a’s a bilit y t o raise t he f u n ds, a n d t he c o m p a n y h as e n g a ge d Wall Street fir m Pa uls o n I nvest me nt C o m p a n y L L C as t he le a d pl ace me nt a ge nt f or fi n a nci n g t he tra ns acti o n. Tre y M o ore, presi de nt / C E O a n d f o u n der of Fle a u x S er vices, is ass u mi n g t he r ole of Gale nfe h a’s C E O. M o ore f o u n de d Fle a u x S er vices si x ye ars a g o. The c o m p a n y is n o w a m aj or pr ovi der of oil a n d g as me as ure me nt, a ut o m a ti o n a n d c o ntr ol e q ui p me nt, b o asti n g re ve n ues of a p pr o xi m atel y $ 2 1 milli o n i n 2 0 1 6, a p pr o xi m atel y $ 3 6 milli o n i n 2 0 1 7, a n d re ve n ues f or first q u arter 2 0 1 8 of a p pr o xi m atel y $ 1 2 milli o n. Se n d ne ws t o e dit or @ 1 0 1 2i n d ustr yre p ort.c o m. Ne ws t h at will be c o nsi dere d i ncl u des ne w pro m oti o ns, hires a n d tr a nsfers at t he e xec uti ve le vel; pro d uct a n n o u nce me nts; o ffice o pe ni ngs a n d m o ves; project a n d c o ntr act a n n o u nce me nts; a n d a w ar ds. Pers o n nel ne ws s h o ul d be acc o m p a nie d by a 3 0 0 d pi, c ol or p h ot o of t he e xec uti ves i n v ol ve d.

C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 7. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

S A ME

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C L O S I N G N O T E S: P R O J E C T M A P S

12 B O S SI E R

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( $ 2 5 M- $ 2 5 0 M)

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L o ui si a n a i n d u stri al pr oj e ct s a n n o u n c e d or pr o p o s e d si n c e J a n. 1, 2 0 1 4, wit h pr oj e ct e d c a pit al i n v e st m e nt of $ 2 5 milli o n- $ 2 5 0 milli o n. S e c o n d li n e s h o w s pr oj e ct e d c a pit al i n v e st m e nt a n d dir e ct n e w j o b s. Li st i s r e pr e s e nt ati v e, n ot c o m pl et e; pr oj e ct st at u s e s c h a n g e fr e q u e ntl y. 1 E nt er g y ( N e w Orl e a n s) $ 2 1 0 M| 2 0j o bs L o c ati o n: Orl e a n s P ari s h St at u s: C o n str u cti o n t o b e gi n in 2018

1 0 B A S F ( G ei s m ar) $ 1 5 0 M| 1 5 L o c ati o n: A s c e n si o n P ari s h St at u s: c o n str u cti o n st art e d s pri n g 2 0 1 8

1 1 Pr a x air $ 1 5 0 M | N/ A L o c ati o n: A s c e n si o n P ari s h St at u s: c o m pl eti o n s et f or 2 0 2 0

Fir st B a u xit e $ 2 0 0 M| 1 0 0j o bs L o c ati o n: St. J o h n t h e B a pti st P ari s h St at u s: a n n o u n c e d J u n e 2 0 1 5, b ut still s e e ki n g ﬁ n a n ci n g Di a m o n d Gr e e n Di e s el $ 1 9 0 M | N/ A L o c ati o n: St. C h arl e s P ari s h St at u s: c o m pl eti o n e x p e ct e d Q2 2018 E nt er g y $ 1 8 7 M | N/ A L o c ati o n: C a m er o n, C al c a si e u p ari s h e s St at u s: p er mitti n g I n d or a m a V e nt ur e s $ 1 7 5 M| 1 2 5j o bs L o c ati o n: C al c a si e u P ari s h St at u s: c o m pl et e T e n n e s s e e G a s Pi p eli n e C o. ( Ki n d er M or g a n) $ 1 7 0 M | N/ A L o c ati o n: N ort h e a st L o ui si a n a t o s o ut h w e st L o ui si a n a St at u s: c o n str u cti o n b e g a n M ar c h 2 0 1 7; e x p e ct c o m pl eti o n F e b. 2 0 1 8 Air Li q ui d e $ 1 7 0 M | N/ A L o c ati o n: St. J a m e s P ari s h St at u s: pl a n ni n g N O L A Oil T er mi n al $ 1 6 2 M| 5 4j o bs L o c ati o n: Pl a q u e mi n e s P ari s h St at u s: u n d er c o n str u cti o n Ki n d er M or g a n L a. Pi p eli n e e x p a n si o n $ 1 5 1 M| 0j o bs L o c ati o n: S o ut h w e st L a. St at u s: p er mitti n g

1 2 O c ci d e nt al C h e mi c al $ 1 4 5 M| 1 2j o bs L o c ati o n: A s c e n si o n P ari s h St at u s: c o n str u cti o n M a y 2 0 1 6l at e 2 0 1 7 1 3 R e g e n c y E n er g y S er vi c e s $ 1 4 4 M| 6j o bs L o c ati o n: W e b st er P ari s h St at u s: u n d er c o n str u cti o n 1 4 B u n g e N ort h A m eri c a $ 1 4 0 M | N/ A L o c ati o n: St. C h arl e s P ari s h St at u s: u n d er c o n str u cti o n 1 5 A d v a n c e d R e ﬁ ni n g T e c h n ol o gi e s $ 1 3 5 M| 3 2 5j o bs L o c ati o n: C al c a si e u P ari s h St at u s: pr oj e ct h a s b e e n pl a c e d o n h ol d, b ut i s n ot c a n c el e d 1 6 M at h e s o n G a s $ 1 3 0 M| 4 0j o bs L o c ati o n: C al c a si e u P ari s h St at u s: c o m pl et e 1 7 H u nt F or e st Pr o d u ct s $ 1 1 5 M| 1 1 0j o bs L o c ati o n: L a S all e P ari s h St at u s: u n d er c o n str u cti o n 1 8 Pr a x air $ 1 0 0 M + | N/ A L o c ati o n: A s c e n si o n P ari s h St at u s: c o m pl eti o n e x p e ct e d s e c o n d h alf of 2 0 1 8 1 9 Cl e c o/ C a b ot C or p. $ 8 0 M| 2 0j o bs L o c ati o n: St. M ar y P ari s h St at u s: br o k e gr o u n d O ct o b er 2 0 1 6

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

R E D RI V E R

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2 0 Fl ori d a F u el C o n n e cti o n, L L C $ 7 5 M| 5 0j o bs L o c ati o n: Orl e a n s P ari s h St at u s: m o v e d fr o m E a st F eli ci a n a P ari s h; p ur s ui n g o p p ort u niti e s at P ort of N e w Orl e a n s

N A T C HI T O C H E S S A BI N E

2 1 S o ut h w e st L o ui si a n a Bi o e n er g y $ 6 9. 3 M | 4 1 j o b s L o c ati o n: All e n P ari s h St at u s: u n d er c o n str u cti o n 2 2 M o m e nti v e S p e ci alt y C h e mi c al s, I n c. $ 6 6 M| 6 8j o bs L o c ati o n: St. C h arl e s P ari s h a n d A s c e n si o n P ari s h St at u s: e x p e ct e d t o b e gi n c o n str u cti o n i n 2 0 1 6

VE R N O N

2 3 H u nti n g E n er g y S er vi c e s $ 6 2 M| 1 2 3j o bs L o c ati o n: T err e b o n n e P ari s h St at u s: c o m pl et e

BEA U RE GA R D

2 4 St e p a n C o m p a n y $ 6 0 M| 3 3j o bs L o c ati o n: A s c e n si o n P ari s h St at u s: hiri n g t o b e gi n a s e arl y a s 2 0 1 7 2 5 Vir di a $ 6 0 M| 8 1j o bs L o c ati o n: L af o ur c h e P ari s h St at u s: c o m pl et e 2 6 E pi c Pi pi n g $ 4 5. 3 M | 5 6 6 j o b s L o c ati o n: Li vi n g st o n P ari s h St at u s: c o m pl et e 2 7 B oi s e C a s c a d e $ 4 3 M| 4 0 0j o bs L o c ati o n: S a bi n e P ari s h St at u s: c o m pl eti o n pr oj e ct e d f or 2 0 1 7 2 8 Gr a p hi c P a c k a gi n g I nt er n ati o n al $ 4 1. 5 M | 1, 3 4 0 j o b s L o c ati o n: O u a c hit a P ari s h St at u s: u n d er c o n str u cti o n

C A L C A SI E U

4 CA ME R O N

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3 6 H u nt s m a n/ R u bi c o n 4 0 0 K mt pr o d u cti o n e x p a n si o n f or M DI L o c ati o n: A s c e n si o n P ari s h St at u s: O n h ol d a w aiti n g c o n str u cti o n

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TE NSAS WI N N

3 2 T CI Pl a sti c s $ 3 6. 5 M | 1 6 0 j o b s L o c ati o n: Orl e a n s P ari s h St at u s: c o m pl et e

C A TA H O U L A L A S ALLE

3 3 N or a n d a Al u mi n a $ 3 5 M| 6 5j o bs L o c ati o n: St. J a m e s P ari s h St at u s: a n n o u n c e d May 2017

G RA NT

3 4 S B I nt er n ati o n al ( C e ntri c Pi pi n g) $ 3 2. 5 M | 2 3 j o b s L o c ati o n: B o s si er P ari s h St at u s: c o m pl et e

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3 5 S yr a h R e s o ur c e s $ 2 5 M| 2 5j o bs L o c ati o n: C o n c or di a P ari s h St at u s: O p er ati o n s t o b e gi n i n 2 0 1 8

3 7 Di a m o n d Gr e e n Di e s el 2 8 5 M g all o n pr o d u cti o n e x p a n si o n L o c ati o n: St. C h arl e s P ari s h St at u s: u n d er e n gi n e eri n g a n d c o st r e vi e w 3 8 P hilli p s 6 6 Pr o d u cti o n i n cr e a s e f or bl e n d c o m p o n e nt s L o c ati o n: C al c a si e u P ari s h St at u s: c o m pl eti o n s et f or e n d of 2 0 1 9

AVO YELLES WEST F E LI CI A N A

EAST F E LI CI A N A

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11 11

18 24 10 36 7

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14 22

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L o ui si a n a i n d u stri al pr oj e ct s a n n o u n c e d or pr o p o s e d si n c e 2 0 0 9 wit h pr oj e ct e d c a pit al i n v e st m e nt of $ 2 5 0 milli o n or m or e. S e c o n d li n e s h o w s pr oj e ct e d c a pit al i n v e st m e nt a n d dir e ct n e w j o b s. Li st i s r e pr e s e nt ati v e, n ot c o m pl et e; pr oj e ct st at u s e s c h a n g e fr e q u e ntl y. ( L N G = li q u e ﬁ e d n at ur al g a s e x p ort pr oj e ct) 1 S a bi n e P a s s L N G ( C h e ni er e E n er g y) $ 2 0 B| 4 0 0j o bs 2 S a s ol G T L $ 1 5 B| 7 5 0j o bs 3

Drift w o o d L N G $ 1 4. 5 B | 4 9 8 j o b s

4 S a s ol L C C P $ 1 1. 1 B | 7 0 0 j o b s 5

G 2 L N G $ 1 1 B| 2 5 0j o bs

6 L a k e C h arl e s L N G (f or m erl y Tr u n kli n e L N G; B G Gr o u p a n d E n er g y Tr a n sf er P art n er s) $ 1 1 B| 2 5 0j o bs 7 S e m pr a E n er g y/ C a m er o n L N G $ 1 0 B| 1 9 0j o bs 8 F or m o s a ( St. J a m e s P ari s h) $ 9. 4 B | 1, 2 0 0 j o b s 9 V e nt ur e Gl o b al L N G ( Pl a q u e mi n e s) $ 8. 5 B | 2 5 0 j o b s 1 0 C a m bri d g e E n er g y F L N G $ 8 B | N/ A 1 1 D elfi n L N G $ 7 B| 4 0 0j o bs 1 2 M o n k e y I sl a n d L N G ( S o ut h er n C alif or ni a T el e p h o n e & E n er g y) $ 6. 5 B | 2 0 0 j o b s 1 3 M a g n oli a L N G $ 4. 3 5 B | 5 0 j o b s 1 4 V e nt ur e Gl o b al L N G ( C al c a si e u P a s s) $ 4. 2 5 B | 1 0 0 j o b s 1 5 L a k e C h arl e s M et h a n ol, L L C $ 3. 8 B | 2 0 0 j o b s 1 6 N u c or St e el U p t o $ 3. 4 B | 1, 2 5 0 j o b s 1 7 A xi all/ L ott e C h e mi c al $ 3 B| 2 5 0j o bs 1 8 I G P M et h a n ol $ 2. 8 B | 3 2 5 j o b s 1 9 L a k e C h arl e s Cl e a n E n er g y ( L e u c a di a C or p.) $ 2. 5 B | 2 1 5 j o b s 2 0 R e v ol uti o n Al u mi n u m $ 2. 4 B | 1, 4 5 0 j o b s 68

2 1 M ar at h o n P etr ol e u m $ 2. 3 5 B | 6 5 j o b s

4 2 E nt er g y ( W e stl a k e) $ 8 7 2 M| 3 0j o bs

2 2 C F I n d u stri e s Nitr o g e n, L L C $ 2. 1 B | 9 3 j o b s

4 3 E nt er g y ( St. C h arl e s) $ 8 6 9 M| 2 7j o bs

2 3 Li v e O a k L N G ( P ar all a x E n er g y) $ 2 B| 1 0 0j o bs

4 4 L a k e C h arl e s C o g e n er ati o n, L L C $ 8 2 0 M| 2 1 0j o bs

2 4 Y u h u a n g C h e mi c al, I n c. $ 1. 8 5 B | 4 0 0 j o b s 2 5 S o ut h L o ui si a n a M et h a n ol $ 1. 7 B | 6 5 j o b s 2 6 G 2 X E n er g y $ 1. 6 B | 2 4 3 j o b s 2 7 E ur o C h e m $ 1. 5 B | 2 0 0 j o b s 2 8 S hi nt e c h $ 1. 4 9 B | 1 2 0 j o b s 2 9 S hi nt e c h ( et h yl e n e) $ 1. 4 B | 1 0 0 j o b s 3 0 H a y n e s vill e Gl o b al A c c e s s Pi p eli n e ( T ell uri a n) $ 1. 4 B | N/ A 3 1 Bi o Nitr o g e n L o ui si a n a H ol di n g s, L L C $ 1. 2 5 B | 2 5 0 j o b s 3 2 A M A gri g e n I n d u stri e s $ 1. 2 B | 1 5 0 j o b s 3 3 C a stl et o n C o m m o diti e s I nt er n ati o n al $ 1. 2 B | 5 0 j o b s 3 4 W a n h u a C h e mi c al Gr o u p $ 1. 1 2 B | 1 7 0 j o b s 3 5 D o w C h e mi c al $ 1. 0 6 B | 7 1 j o b s 3 6 C or n er st o n e C h e mi c al C o./ D y n o N o b el $ 1. 0 2 5 B | 6 5 j o b s 3 7 S hi nt e c h ( vi n yl s c o m pl e x) $ 1. 0 2 B | N/ A 3 8 P ort of N e w Orl e a n s $ 1 B | 6, 0 0 0 j o b s 3 9 M o n s a nt o $ 1 B| 1 0 0j o bs 4 0 M o n s a nt o $ 9 7 5 M| 1 2 0j o bs 4 1 B e nt el er A G $ 9 7 5 M| 6 7 5j o bs

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4 5 E n er g y W orl d U S A $ 8 0 0 M | N/ A 4 6 P etr o pl e x $ 8 0 0 M | N/ A 4 7 S h ell C h e mi c al $ 7 1 7 M| 2 0j o bs 4 8 V al er o R efi ni n g – N e w Orl e a n s, L L C $ 7 0 0 M| 2 4j o bs

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4 9 B a y o u Bri d g e Pi p eli n e $ 6 7 0 M| 1 2j o bs 5 0 L o ui si a n a L N G E n er g y, L L C $ 6 4 6. 6 M | 4 4 j o b s 5 1 Pi n O a k T er mi n al s $ 6 0 0 M| 7 0j o bs

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5 2 S o ut h er n Cr o s s Tr a n s mi s si o n Pr oj e ct $ 6 0 0 M | N/ A 5 3 M et h a n e x C or p., M et h a n e x 1 $ 5 7 0 M| 3 5j o bs 5 4 M et h a n e x C or p., M et h a n e x 2 $ 5 7 0 M| 1 2 0j o bs 5 5 S u n dr o p F u el s $ 4 5 0 M| 1 5 0j o bs

5 6 W e stl a k e C h e mi c al ( G ei s m ar) $ 4 2 5 M| 7 0j o bs

5 7 S E T yl o s e ( S hi nt e c h) $ 4 2 0 M| 8 8j o bs

6 0 Willi a m s Ol efi n s $ 4 0 0 M| 5j o bs

2 4

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5 8 S hi nt e c h ( et h yl e n e e x p a n si o n) $ 4 0 0 M | N/ A 5 9 H a z el w o o d E n er g y H u b $ 4 0 0 M| 1 2 0j o bs

7 CA ME R O N

5 1

14 11

12 23

6 1 S h ell M oti v a $ 3 8 0 M| 1 0 0j o bs 6 2 N u St ar E n er g y $ 3 6 5 M| 3 2j o bs 6 3 S y n g a s E n er g y $ 3 5 0 M| 1 0 0j o bs

R E D = P R O J E C T KI L L E D B L U E = N E W P R O J E C T 1 0 1 2i n d u str yr e p ort. c o m

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6 4 W e stl a k e C h e mi c al ( L a k e C h arl e s) $ 3 5 0 M| 2 5j o bs

7 1 G er m a n P ell et s L o ui si a n a, L L C/ L o ui si a n a P ell et s, I n c. $ 2 9 0 M| 8 0j o bs

6 5 E x x o n M o bil C or p. ( C h e mi c al) $ 3 3 6 M| 3 0j o bs

7 2 T o p C h e m P oll o c k (f or m erl y I n v e sti m u s F ori s) $ 2 6 5 M| 8 5j o bs

6 6 V al er o $ 3 2 5 M | N/ A

7 3 P P G I n d u stri e s, I n c. $ 2 6 4 M| 2 7j o bs

6 7 N F R Bi o E n er g y $ 3 1 2 M| 4 5 0j o bs

7 4 M ar u b e ni, I n c. (f or m erl y G a vil o n Tr a di n g) $ 2 5 0 M| 1 0 0j o bs

6 8 B A S F ( G ei s m ar) $ 3 0 0 M| 1 0 0j o bs

TE NSAS WI N N

6 9 H o n e y w ell I nt er n ati o n al $ 3 0 0 M| 8 0j o bs

7 0 A v al o n R ar e M et al s Pr o c e s si n g, L L C $ 3 0 0 M| 2 2 5j o bs

C A TA H O U L A L A S ALLE

T O T A L P O T E N TI A L C A PI T A L I N V E S T M E N T:

$ 1 7 9. 1 B +

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S o ur c e s: L E D , L E O, A m eri c a n Pr e s s, 1 0/ 1 2 r e s e ar c h

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1 0 1 2i n d u str yr e p ort. c o m

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45 1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

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MY T O U G HES T C H ALLE N GE

J e n nif e r V o s b ur g B Y D A VI D J A C O B S

T HE C H ALLE N GE I n Fe br u ar y, N R G a n n o u nce d t h at it w as selli n g its L o uisi a n a- b ase d S o ut h Ce ntral assets t o Clec o f or $ 1 billi o n, p e n di n g re g ul at or y a p pr ov al. Vos b ur g will n ot b e g oi n g wit h t he c o m p a n y w he n t he s ale is c o m plete d, me a ni n g t h at s he m ust s a y g o o d b ye t o her “ w or k f a mil y” a n d t he b usi ness t h at h as bee n t he ce nter of her life f or 1 1 ye ars. S he s a ys s he we nt t hr o u g h t he cl assic “st a ges of grief,” b ut k ne w s he h a d t o q uic kl y p ut asi de her “i n ner t ur m oil.” Ever y o ne still h as a j o b t o d o, a n d Vos b ur g nee ds t o m o del t he ri g ht be h avi or f or her te a m w hile als o e ns ur i n g a s m o ot h tra nsiti o n t o t he ne w o w ners. “I h a d t o be i n t he ri g ht fra me of mi n d t o be a ble t o be a p ositive i n ﬂ ue nce,” s he s a ys. “It w as ver y i m p ort a nt t o kee p t he f oc us o n b usi ness as us u al.” T H E R E S O L U TI O N Vos b ur g is a n att or ne y b y trai ni n g, a n d s a ys s he ref o c use d herself b y re vie wi n g t he f acts of t he “c ase,” us u all y ar o u n d 2 a. m. The f acts, as s he s a w t he m, were t his: Her w or k f a mil y h a d b uilt a n a m a zi n g b usi ness i n a c h alle n g i n g i n d ustr y t h at a n ot her c o m p a n y w as willi n g t o p a y $ 1 billi o n f or. S he h a d acc o m plis he d her g o als, s he s a ys, a n d t he te a m h a d s uccee de d. The y were n’t bei n g p u nis he d; t he y were b ei n g re w ar de d f or a j o b well d o ne. “It g ave me pri de,” s he s a ys. “It g ave me selfc o n ﬁ de nce. It m a de me e xcite d a b o ut t he f ut ure a n d w h at I c a n acc o m plis h ne xt. I c a n s a y g o o d b ye a n d it’s O K.”

P O SI TI O N: S e ni or vi c e pr e si d e nt/ pr e si d e nt C O M P A N Y: N R G/ L o ui si a n a G e n er ati n g W H A T T H E Y D O: N R G i s a F ort u n e

5 0 0 i nt e gr at e d p o w er c o m p a n y wit h a di v er s e el e ctri c g e n er ati o n p ortf oli o a n d a r et ail el e ctri cit y pl atf or m. L o ui si a n a G e n er ati n g, a n N R G c o m p a n y, o w n s a n d o p er at e s el e ctri c p o w er g e n er ati o n a n d tr a n s mi s si o n o p er ati o n s, pr o vi di n g w h ol e s al e p o w er t o c o o p er ati v e s, m u ni ci p aliti e s a n d i n v e st or- o w n e d utiliti e s.

D O N K A D AI R

C A R E E R: Pri or t o j oi ni n g N R G i n 2 0 0 7, V o s b ur g w a s a p art n er at L o n g L a w Fir m i n B at o n R o u g e, w h er e s h e f o c u s e d o n utilit y r e g ul ati o n, e n er g y a n d c o n str u cti o n l a w. At N R G, s h e ﬁr st s er v e d a s dir e ct or of r e g ul at or y a n d g o v er n m e nt aff air s, l at er e x p a n di n g h er r e s p o n si biliti e s t o i n cl u d e t h e o p er ati o n s of t h e L o ui si a n a G e n er ati n g tr a n s mi s si o n a s s et s. S h e w a s n a m e d vi c e pr e si d e nt of N R G’ s S o ut h C e ntr al R e gi o n i n 2 0 1 0 a n d pr e si d e nt i n 2 0 1 1. S h e o v er s a w t h e r e gi o n’ s m o v e i nt o t h e MI S O m ar k et a n d s er v e d a s t h e h e a d of t h e st a k e h ol d er gr o u p b ot h u n d er t h e E nt er g y I C T a n d t h e E nt er g y R e gi o n al St at e C o m mitt e e.

1 0/ 1 2 I N D U S T R Y R E P O R T • T HI R D Q U A R T E R 2 0 1 8

T HE TA KE A W AY Vos b ur g s a ys t he ne w o w ner h as a gree d t o kee p e m pl o yee n u m bers a n d s al aries at c urre nt le vels f or o ne ye ar. Thr o u g h t he n u mer o us meeti n gs a n d p h o ne c alls necess ar y t o c o m plete t he mer ger, s he h as b ee n a c o n ﬁ de nt a dv oc ate f or her e m pl o yees a n d c ust o mers. “ M y j o b is t o m a ke s ure t his is s m o ot h f or e ver yb o d y,” s he s a ys. At t he e m pl o yee meeti n g a n n o u nci n g t he s ale, s he s a ys, a n e m pl o yee p ulle d her asi de. The e m pl o yee h a d bee n a frie n d of her l ate f at her-i n-l a w, w h o h a d w or ke d at t he c o m p a n y’s Bi g C aj u n II pl a nt. “ He t ol d me t h at t he y k ne w h o w h ar d I h a d f o u g ht f or t he m, t he b usi ness a n d o ur c o m m u nit y, a n d t h at t he y were pr o u d of me, a n d t h at m y f at her-i n-l a w w o ul d h ave bee n pr o u d of me t o o,” s he s a ys. “It h as bee n o ne of t he m ost h u m bli n g a n d re w ar di n g p arts of t his c h alle n ge —t o k n o w t h at p e o ple d o w atc h, a n d t he y d o p a y atte nti o n t o y o ur acti o ns.” 1 0 1 2i n d u str yr e p ort. c o m

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