& Petrochemical Maritime Outlook Conference Todd Monette LyondellBasell / EHCMA #PMOC Today’s Panel Topics • Overview of East Harris County Manufacturers Association • Overview of industry growth and impact to surrounding area • Importance of education, community and cooperation to the success of area industry in support of – available jobs – Needed skills • Texas infrastructure needed to support economic growth LyondellBasell is… • Third-largest independent chemical company in the world • World‘s 3rd largest petrochemical company • Revenues of $44B in 2013 LYB Facts • Global leader in polyolefins technology, production and marketing • Pioneer in propylene oxide & derivatives • Dedicated to ongoing R&D • Olefins and Polyolefins – Americas • Olefins and Polyolefins – Europe, Asia Five business segments and International • Intermediates and Derivatives • Refining and Oxyfuels • Technology lyondellbasell.com 3 Global reach • 58 plants in 18 countries • More than 14,000 employees worldwide lyondellbasell.com • Sales in more than 100 countries 4 rers Association • 90 member companies representing 130 facilities in east Harris County • Industry coalition that supports best practices to: – – – – – Continuously Improve safety and environmental performance Operate facilities in a responsible manner Foster cooperative relationships with the surrounding communities and leaders Promote effective communication and emergency management with the community Maintain effective relationships with local, state and federal officials • 30,000 people strong, with more jobs coming. • Driving the area economy with $12 billion impact through taxes, payrolls, purchases and capital expenditures • Investing in air quality, exceeding $5 billion in over the past 10 years. Houston Ship Channel – The lifeline for our plants • • • • • • • • • • 52-mile channel opened in 1914 150 public and private companies 8,000+ vessel calls annually 200,000 barge transits annually Nearly 230 million tons of cargo handled annually No. 1 US port in foreign waterborne tonnage No. 1 port in the U.S. Gulf Coast Largest petrochemical complex in the U.S. / 2nd largest in the world Responsible for 1million+ jobs in Texas $180 billion in statewide economic impact Shale Economy Investment Impact on Houston Region – $40 Billion in Capital Investment – Over 1,000 Permanent Jobs – ~ 30,000 construction Jobs • Dow Chemical - Freeport – Ethylene Cracker – Propylene Production Unit • CP Chemical - Baytown – Ethylene Cracker • ExxonMobil Chemical – Baytown – Ethylene Cracker • Lyondellbasell Expansions – – – – La Porte Expansion Channelview Expansion Corpus Christi Expansion POTBA grass root plant • Enterprise Products – 1,230 mile ethane pipeline – Ethane export project U.S. Ethylene Producers Well Positioned • View from a US ethylene producer perspective – Geography, geology, technology are positively aligned – Economics of crude oil and natural gas support U.S. producers – Infrastructure investments are bringing NGLs to the market – Supply / demand positioned for a cyclical upside – New U.S. plants are not forecast to start-up until 2016+ 8 Key Initiatives • Environmental Improvement – Air quality improvements (www.houstonairquality.com). – Availability and quality of water supply • Work force development • Regional Flood protection • Community Awareness & Emergency Response (CAER Line) revamp & Petrochemical Maritime Outlook Conference Jim Griffin Dianal America, Inc. #PMOC EPA Comparison of growth measures and emissions, 1990-2010. Note: CO2 emissions estimates are from 1990 to 2009. Fueling a Growing Economy • Must Go Fast, But Get It Right • Complex Industry that Requires a Standard Framework • The Right Balance of Technology & Human Competence • Safety Critical Equipment – No Surprises • Houston – Largest Export City in The US • Houston- Most Ethnically Diverse City in The US Abundant Shale Gas, Expansive Supply Infrastructure What is made with Shale Gas? EHCMA Members produce products that are used everyday & Petrochemical Maritime Outlook Conference Steve Skarke Kaneka #PMOC MS Polymer Nutrients Lyondell API Modifier CPVC $35 Billion Capital Workforce 30K new jobs in Texas Critical Success Factors Infrastructure Technology Markets “Not ENough PEoPlE iN thE PiPEliNE” • Why? • Misalignment of training & education programs for current and future jobs • Education community paradigm that a bachelor’s degree is the best path to prosperity. Workforce Development: Meet the Need for Skilled Employees by “Telling the Truth about the Petrochemical Industry” Estimated 60,000 people reached during the 2013-2014 school year. This was a combination of … • Jr. & Sr. High Students, • College students, • Teachers, • Counselors and • Parents… ISD’s in the GP, Pasadena, La Port, Deer Park, Sheldon, Crosby, Huffman, Liberty etc… • Science Fairs • Job Fairs • Chamber of Commerce meetings • Business-Educator Symposiums • Local Citizen Advisory Council meetings Educating today’s students for tomorrow’s workforce EHCMA Workforce Development Committee & Petrochemical Maritime Outlook Conference Hector Rivero TX Chemical Council #PMOC • • • • • • • 70 member companies 200 manufacturing & research facilities $75 Billion in Physical Assets 75,000 direct jobs Over 400,00 indirect jobs #1 non-energy state export ($40 Billion Annually) Over $40 Billion in New Investment in Texas State Legislative & Regulatory Priorities • • • • • • Tax Policy Civil Justice Reforms Environmental Policy Water Policy Transportation Infrastructure Workforce & Petrochemical Maritime Outlook Conference Todd Monette Lyondellbasell / EHCMA #PMOC Summary • Industry is a vital part of the Houston area economy. • Continued key focus on Operational Excellence to drive reliability, process safety, environmental and security improvements. • Education is vital to provide the quality skilled workers needed to support the plants. • East Harris County Manufacturers Association is proud to partner with the area teachers, schools and colleges to prepare the work force of the future.