President’s Message: EPA Regulation Threatens Electricity Grid

TCC President & CEO Hector L. Rivero

A new regulation by the Obama administration’s Environmental Protection Agency (EPA) has potentially put the Texas electricity grid in danger of rolling blackouts, a development that could have devastating effects on the energy-intensive chemical manufacturing industry across the state.

At issue is the Cross-State Air Pollution Rule (CSAPR), a revised federal regulation aimed at reducing emissions from power plants in 27 states, including Texas.

Under the new rule, Texas utilities must cut sulfur dioxide emissions by 47% from 2010 levels and nitrogen oxide by 8% by January 2012.  Officials at the Texas Public Utility Commission (PUC) say those rules could lead to rolling blackouts.

The EPA argues that the rule, issued in July 2011, aims to reduce tens of thousands of premature deaths due to asthma attacks and other respiratory ailments by reducing coal plant sulfur dioxide emissions that drift from state to state.

But the state’s power grid would lose significant generation, as electric generating units in the state scale back coal-fired production, which currently accounts for about 40% of electricity production in Texas.

“If those reductions had been in place this year, rolling blackouts would have been a certainty during the summer,” said Trip Doggett, CEO of the Electric Reliability Council of Texas (ERCOT), which operates the power grid.

There is also a very good chance that Texans will have to pay more for electricity.  Providers will have to buy cleaner-burning coal, make system upgrades and trade for emission credits.  Some plants will switch to more expensive natural gas generation. 

Retrofitting and rebuilding power plants for tighter air pollution standards normally takes three to five years.  That’s been compressed into an impossible time frame, state and company officials have repeatedly said.

Steven Miller, CEO of the American Coalition for Clean Coal Electricity, warns of job losses nationwide totaling 1.4 million over the next eight years and a 23% jump in electricity rates in states dependent on coal-fired generation.

Texas Targeted?
In writing the CSAPR rules, EPA officials claimed that Texas was treated no differently from any other state, saying that Texas had the same opportunity to provide comments on the rule proposed as other states.

But the facts tell a different story: Texas was included in two significant portions of the final rule without the required legal notification.  For those two portions of the rule, every other state was provided an emission budget and a detailed rationale for its inclusion – Texas was not.

And the EPA has given members of Congress and the news media the impression that Texas is being a bad neighbor, causing many areas of the country to experience poor air quality.

Again, the facts are not on their side: EPA’s justification for including Texas in this rule lies with linkages to monitors in Granite City, Illinois (more than 500 miles away), Baton Rouge, Louisiana and Allegan, Michigan.  All of those out-of-state monitors that EPA claims are suffering from detrimental impacts due to Texas emissions are in attainment with the pollutants EPA is regulating under CSAPR.

Texas Commission on Environmental Quality (TCEQ) Chairman Bryan W. Shaw recently wrote “these regulations have vast economic effects, not limited to the direct energy generation costs that will be felt by every energy consumer, but also through the indirect effects of higher costs associated with the cost of manufacturing goods, and regrettably, the potential for lost jobs, as all sectors struggle to absorb these costs.”

Shaw continued: “Under average conditions, the potential generation loss in Texas caused by this rule will have real impacts to real people.  Should Texas face another sweltering summer like this past one, there is every reason to worry about loss of life.”

On behalf of the State of Texas, Attorney General Greg Abbott has asked an appeals court in Washington D.C. to halt implementation of the proposed rule.  But unless stopped by pending litigation or presidential order, the new CSAPR regulation threatens Texas and its citizens with rolling blackouts and higher electricity prices.

Ag. Comm. Todd Staples to Speak at TCC/ACIT Annual Industry Luncheon – Oct. 13th

Agriculture Commissioner Todd Staples

Don’t miss the TCC/ACIT Annual Industry Luncheon on Thursday, October 13th (12:00 noon to 1:30 p.m.) at the Hilton Houston Hobby Airport Hotel.  The luncheon speaker will be Todd Staples – Texas’ 11th Commissioner of Agriculture.

Commissioner Staples believes the free enterprise system and individual responsibility are the keys to prosperity for Texas.  As leader of the Texas Department of Agriculture, Commissioner Staples is diligent in his efforts to support private sector job creation and economic development across the Lone Star State; improve consumer protection from the grocery store to the gas pump; lead true eminent domain reform in Texas; and play an enormous role in continuing to improve the healthy lifestyles of young Texans.

He is also focused on the promotion of agricultural products and businesses using the “GO TEXAN” marketing program, and has expanded trade opportunities for Texas producers. Commissioner Staples has accomplished these priorities with a philosophy that puts family and taxpayer interests first while also focusing on efficiency.

Staples was born in Anderson County where he was active in high school FFA and was elected state FFA vice president.  He attended Texas A&M University where he graduated with honors with a degree in agricultural economics.

Commissioner Staples began serving in public office in 1989 when he was elected to the Palestine city council. In 1995 he was elected state representative and served three terms in the Texas House before being elected state senator in 2000 where he served two terms. His public service continues today as Agriculture Commissioner. Following his first election in 2006, he was re-elected to a second term in 2010.  He and his wife, Janet, have four grown children.

To register for the TCC/ACIT Annual Industry Luncheon, click here.  Sponsorships are still available: click here for details.

TCC Hosts Science Teachers and Industry (STI) Program

From August 2nd though 5th, the Texas Chemical Council conducted its Science Teachers and Industry (STI) program in partnership with the Harris County Department of Education (HCDE).  The workshop was aimed at raising awareness among science teachers about the importance of the chemical industry. 

This year’s STI workshop included 42 teachers from 16 different school districts in Houston and surrounding areas, making it the most successful program in the 20+-year history of the program.

Over the course of the four-day session, the teachers were able to interact with industry representatives from seven different companies, including field trips to TOTAL Petrochemicals, and INEOS Styrenics.

During the workshop, teachers learned about the chemical industry’s emphasis on safety and environmental stewardship.  Teachers enjoyed the opportunity to ask questions to industry representatives and obtained a better understanding for our industry’s emphasis on protecting employees, the community and the environment.  Those attending also learned about the important role that industry plays in the state’s economy and in their local communities, as well as the challenges facing our industry.
 
Thanks to our STI sponsors who helped make this year’s workshop a huge success:

The STI program could not be possible without the leadership and support of the TCC Outreach Committee including STI Chair John Koegel (Dow) and STI Facilitator Lisa Felske (HCDE).

President Barack Obama Halts Proposed Ozone Standards

President Barack Obama

Facing fierce resistance from congressional Republicans, industry and local officials, President Barack Obama abruptly pulled back proposed smog standards last month that would have compelled states and communities nationwide to reduce local ozone levels or face federal penalties.

Key GOP lawmakers including House Majority Leader Eric Cantor (R-Virginia) had identified the Environmental Protection Agency’s restrictions for ground-level ozone, along with other air pollution regulations they described as “job-destroying,” as targets for a regulatory rollback this fall.  Members of the business community had launched an all-out public relations blitz against the rules, saying that they should be delayed in light of the economic downturn.

Obama’s decision was announced shortly after disheartening employment numbers were released on September 2nd.  It drew harsh reaction from environmentalists and their allies — including a statement from MoveOn.org questioning why its members should work for the president’s re-election — highlighting the dangers the White House faces as it seeks middle ground among competing interests.

In a statement, Obama praised EPA Administrator Lisa P. Jackson’s effort to improve the nation’s air quality but said he had asked her to withdraw the draft standards because they were scheduled to be reconsidered two years from now anyway.

“I have continued to underscore the importance of reducing regulatory burdens and regulatory uncertainty, particularly as our economy continues to recover,” Obama said. “Ultimately, I did not support asking state and local governments to begin implementing a new standard that will soon be reconsidered.”

Ground-level ozone is formed when nitrogen oxide (NOx) emissions from cars, trucks, power plants, industrial facilities, and landfills react with volatile organic compounds (VOCs) in sunlight.

The federal government normally reviews the standards for ground-level ozone — a “primary” standard for public health and a “secondary” one aimed at the environment — every five years.

The George W. Bush administration set the primary standard at 75 parts per billion in March 2008, but Jackson chose to revisit the standards early.  In January 2010, Jackson announced that she would set the standard between 60 and 70 parts per billion.

The decision “leaves me with more questions than answers,” said Sen. Thomas R. Carper (D-Delaware), who chairs the Senate’s clean-air subcommittee.  He said he would hold hearings with White House officials “to explain these actions and the possible ramifications.”

The ozone standard was one of several air-quality rules the administration is in the process of adopting or has already finalized that are under attack. Others include new limits on mercury and air toxins, greenhouse gases from power plants, and a range of emissions from industrial boilers, oil refineries, cement plants and other sources.

Rep. Fred Upton (R-Michigan), chairman of the House Energy and Commerce Committee, and Rep. Mike Simpson (R-Idaho), who heads the House Appropriations subcommittee on the interior, environment and related agencies, said in interviews that they would try to block regulations they consider a threat to economic recovery.

“If you’re serious about a jobs agenda, the last thing you want to be doing is adding tens of billions of dollars in costs every year,” said Upton, who added that under stricter smog standards, communities in his district and across the nation “will lose these jobs, and they will never come back.”

National environmental groups, anticipating an administration announcement finalizing the ozone regulations, were so confident that they had drafted two media statements, both positive. Instead, advocacy groups issued series of separate rebukes while business organizations lavished praise on the president.

Karen Harned, executive director of the National Federation of Independent Business’s Small Business Legal Center, said, “It’s encouraging to see the administration finally recognizes that this would have been the worst possible time to implement such a burdensome new rule.”

The proposed rule was particularly contentious because it could halt or delay the permitting of new industrial facilities if local pollution is too severe. Under a 2001 Supreme Court decision, the EPA is not allowed to take costs into account when setting the ozone standards, but the agency estimated the compliance costs for industry could range from $19 billion to $90 billion a year by 2020 depending on what level is set.

Two White House officials, who asked not to be identified because they were not authorized to speak on the record, said that the decision was not related to the battle over economic policy and that they would press forward with other air pollution measures.  “This had nothing to do with politics, nothing at all,” one said.

In many ways, the fall will serve as a critical test of how much the White House is willing to fight for the rest of its environmental agenda. Simpson said “members of both parties have some concerns” about EPA’s push for new air regulations, and he expected the issue could have implications for 2012. “The issue in general, of regulations and their impact on the economy, will be a big issue in the campaign,” he said.

The American Chemistry Council said the decision “… will ensure that communities across the country that would have essentially been closed for business by the new standard have a fighting chance of attracting new factories, new construction projects and new energy production.”

ACC’s Dooley: Shale Gas Can Manufacture Jobs

ACC President and CEO Cal Dooley

After President Obama proposed a nearly $450 billion “jobs” plan to get Americans back to work, the National Journal asked American Chemistry Council President and CEO Cal Dooley: “Can energy and environmental initiatives fit into President Obama's jobs plan?”

President Obama’s proposal to jumpstart the economy will help, but more can be done. American manufacturing, in particular, can be a major jobs engine, if we make energy part of the strategy. One of the most promising opportunities for manufacturing jobs, shale gas development, cannot be overlooked.

Natural gas can help revitalize the nation’s industrial base. Between 1999 and 2005, U.S. natural gas prices quadrupled, and manufacturing shed more than 5.5 million jobs. More than 140,000 of those jobs were in the chemistry industry, which relies on natural gas for heat and power as well as a raw material for thousands of products.

Fortunately, with the new domestic shale gas discoveries, that worrisome trend has reversed. Chemical companies have announced huge new investments in large-scale manufacturing facilities from the Gulf Coast to Appalachia. Natural gas from shale has transformed the U.S. chemical industry’s international competitiveness: Despite a poor economy in 2010, chemistry exports increased 15 percent, shifting the industry’s balance of trade from a $140 million deficit two years ago to a $4.6 billion surplus.

Shale gas can help many of the states hardest hit by the Great Recession. As we have begun to see already, states like West Virginia, Ohio and Pennsylvania are prime locations new petrochemical facilities or expanded production, given their vast shale gas resources. A recent American Chemistry Council study found that a new petrochemical complex in Ohio would generate $7.5 billion in new chemical industry output, 17,000 Ohio jobs in chemistry and supplier industries, $1 billion in wages and $169 million in state tax revenue.

Nationally, our study projected nearly 400,000 new jobs in chemical and supplier industries, boosting U.S. economic output by more than $132 billion. Many of these are advanced manufacturing jobs the United States wants to expand. Chemistry companies are leaders in developing next-generation energy-efficient and clean energy products and technologies used in everything from lightweight automobile parts and building insulation to solar panels and lithium batteries. In a very real way, we are one of today’s ‘green jobs’ industries.

The National Petroleum Council’s North American Resource Development report, published today, attests to the importance of natural gas to the chemistry industry: “The availability of abundant low cost natural gas is helping to revitalize several industries, including petrochemicals, leading to several billions of dollars of new investment in domestic industrial operations that would not been anticipated half a decade ago…When manufacturers use natural gas as a fuel and feedstock, they create a variety of products that are used every day. These products are valued at greater than eight times the cost of the natural gas used to create them, providing significant benefit to the nation’s economy.”

In his speech, President Obama asked: “What’s the best way to grow the economy and create jobs?” One answer is to ensure continued robust development of domestic shale gas.

Cal Dooley is president and CEO of the American Chemistry Council (ACC).

NPRA’s Drevna: American Energy Can Create Jobs

NPRA President Charles T. Drevna

America needs energy. America needs jobs. A way to get them both is right under our feet.

A recent report by the National Petroleum Council says the United States has a more abundant supply of oil and natural gas than previously believed.  The report concludes that by 2035 America could be producing 2 million to 3 million barrels of oil per day from shale formations, including the Bakken shale in North Dakota and Montana, and the Eagle Ford shale in Texas.

The Sept. 15th report forecasts that under the most optimistic assumptions, America and Canada combined could produce up to 22.5 million barrels of oil per day, if the U.S. lifts regulatory barriers. This would allow America to reduce its reliance on oil from other parts of the world.

The National Petroleum Council study is consistent with a study issued Sept. 7th by Wood Mackenzie for the American Petroleum Institute.  That study concluded that 1.1 million new American jobs could be created by 2020 if regulatory reforms are adopted to give American companies greater access to the treasure trove of oil and natural gas buried under our nation and off our shores.

The Wood Mackenzie study also found that government revenues would rise by $127 billion by 2020 if this increased oil and gas production takes places.

With high unemployment continuing to drag down the U.S. economy and devastate millions of American families, American fuel and petrochemical manufacturers are ready to join with companies producing oil and natural gas to do our part to help our country start down the road to economic recovery and increased employment.

Right now, we’re doing all we can to strengthen America’s economic and national security by ensuring that nearly all the fuels Americans rely on continue to be manufactured right here in America, by American workers.

We don’t want to see more American manufacturing jobs exported, forcing more Americans onto the unemployment rolls and forcing families to spend more money to buy imported products no longer manufactured right here at home.
 
But unfortunately, the Environmental Protection Agency and other federal agencies seem determined to impose extreme and unwarranted regulations that will do nothing significant to improve the environment – but would make U.S. refiners far less competitive with refiners in foreign lands.
 
And President Obama seems to never tire of proposing new energy taxes that would destroy American jobs by disadvantaging U.S. manufacturers of fuels and petrochemicals and U.S. companies that produce oil and natural gas against foreign competitors. 
 
The American oil and natural gas sector supports more than 9 million American jobs – and can create many more if only President Obama will stop throwing regulatory roadblocks and proposed tax increases in our path.
 
We don’t get subsidies and don’t get special tax breaks.  We simply get tax deductions that are comparable to – and in some cases more limited than – the deductions other American businesses get.
 
Oil, natural gas, refining and petrochemical companies are some of the biggest taxpayers and biggest employers in America. We contribute hundreds of billions of dollars in taxes and fees to government at the federal, state and local levels.
 
These companies simply want to be treated like other American companies when it comes to paying taxes.  We don’t seek preferential treatment – just equal treatment.

Instead of setting up confrontations with energy companies, President Obama and Congress should cooperate with the companies to strengthen America’s economy. The best way to get more tax revenues from oil and gas producers and fuel and petrochemical manufacturers is to let us produce and manufacture more. The more we earn, the more people we can hire and the more taxes we and our workers pay.
 
It’s time for America to develop an energy policy based on reality rather than ideology, grounded in what works rather than in hopes and dreams.
 
America is not energy poor – we are energy rich. Every American would be better off if our leaders would give us greater access to American energy and allow us to manufacture more fuels and petrochemicals in America, free of overregulation and discriminatory taxation.
 
Charles T. Drevna is president of the National Petrochemical & Refiners Association (NPRA).

U.S. House Passes Bill Delaying Emissions Rule

Despite the threat of a presidential veto, the U.S. House of Representatives has passed a bill that delays an emissions rule aimed at reducing pollution across state lines and would require a new committee to analyze how Environmental Protection Agency (EPA) rules impact businesses.

The TRAIN Act would require a new interagency committee to analyze the business impacts of several EPA rules. It would also delay for two years the Cross-State Air Pollution Rule and another rule aimed at reducing mercury pollution.

The cross-state rule would require power plants in 27 states, including Texas, to reduce emissions of sulfur dioxide and nitrogen oxides that EPA says can harm health across state lines.
Texas officials and utilities have said the rule could force some power plants to shut down when the rule takes effect on Jan. 1, 2012, and the new requirement could cause electricity disruptions and blackouts.

In September, Dallas-based Luminant sued the EPA in an effort to block the rule, while Texas filed a similar suit. Luminant said this month that it would shut down two units at a coal-fired power plant and cut 500 workers because it claimed it couldn’t meet the new standard by January.

The bill contains a floor amendment from Rep. Bob Latta (R-Ohio) requiring EPA to consider “cost and feasibility” in developing air rules. Currently the agency must consider only public health and environmental considerations.

Another amendment, co-sponsored by Rep. Charlie Gonzalez (D-San Antonio) would require the EPA to complete a study on how an upcoming rule for reducing sulfur in gasoline would impact air quality.

Gonzalez, who co-sponsored the amendment with Rep. Adam Kinzinger (R-Illinois) said EPA had failed to complete a study required under a previous law.  “EPA should complete the study first and provide for adequate comment and feedback from stakeholders before proceeding with proposed rule,” Gonzalez said on the House floor during debate on the House bill known as the TRAIN Act.

Rep. Gene Green (D-Houston) said the EPA is moving forward with the rule “based on a half-baked study.”  Both Green and Gonzalez ended up voting against the final bill, however, in line with their Democratic colleagues.

While the bill easily passed in the House, it faces a difficult future in the Democratic-controlled Senate.  EPA Administrator Lisa Jackson testified before a House panel that the language in the Whitfield amendment (named for Rep. Ed Whitfield, R-Kentucky) “would weaken or destroy our ability to address” power-plant pollution and could prevent the agency from ever issuing a new cross-state rule.

President Obama threatened to veto the TRAIN Act, saying the bill’s analyses would duplicate analyses the administration already does and the bill would “slow or undermine important public health protections.”

Democrats balked that the TRAIN Act is a “Trojan horse” designed to dismantle the EPA’s authority under the Clean Air Act to reduce dangerous air pollution, while Republicans defended the bill as protecting jobs and its required analyses as giving businesses a better idea of EPA rules’ impacts.

The American Petroleum Institute, an oil-and-gas industry trade group based in Washington, welcomed the approval of the Kinzinger-Gonzalez amendment.

“The new requirements could be devastating for consumers and communities across the nation,” said Misty McGowen, API director of federal relations. “American taxpayers deserve a thorough analysis of the economic and jobs impacts before EPA moves forward with its proposal.”

Whitfield said on the House floor that his amendment does not permanently bar any EPA rules.
“We are at very fragile time in our economy,” Whitfield said.

EPA Inspector General Calls Greenhouse Gas Regulatory Process Flawed

Sen. James Inhofe (R-Oklahoma)

In response to a report that could lead to questions about the credibility of the Environmental Protection Agency (EPA), Oklahoma Republican Sen. James Inhofe, ranking member of the Senate Committee on Environment and Public Works, is calling for hearings to investigate.

The report — from the Office of the Inspector General (OIG) of the EPA — reveals that the scientific basis, on which the administration’s endangerment finding for greenhouse gases hinged, violated the EPA’s own peer review procedure.

In a report released last week the inspector general found that the EPA failed to follow the Data Quality Act and its own peer review process when it issued the determination that greenhouse gases cause harm to “pubic health and welfare.”

“I appreciate the inspector general conducting a thorough investigation into the Obama-EPA’s handling of the endangerment finding for greenhouse gases,” Inhofe said. “This report confirms that the endangerment finding, the very foundation of President Obama’s job-destroying regulatory agenda, was rushed, biased, and flawed. It calls the scientific integrity of EPA’s decision-making process into question and undermines the credibility of the endangerment finding.”

Inhofe lambasted the EPA for its failure to adhere to its own rules, outsourcing the science to the UN’s Intergovernmental Panel on Climate Change — and refusing to conduct its own analysis of the science — in the period leading up to its final endangerment finding.

“The endangerment finding is no small matter: Global warming regulations imposed by the Obama-EPA under the Clean Air Act will cost American consumers $300 to $400 billion a year, significantly raise energy prices, and destroy hundreds of thousands of jobs. This is not to mention the ‘absurd result’ that EPA will need to hire 230,000 additional employees and spend an additional $21 billion to implement its [green house gas] regime. And all of this economic pain is for nothing: As EPA Administrator [Lisa] Jackson also admitted before the Environmental and Public Works] committee, these regulations will have no affect on the climate.”

According to Inhofe, Jackson has failed in her 2009 vow to commit the Agency to high transparency standards. The senator will instruct the Senate Committee on Environment and Public Works to hold hearings to investigate the EPA’s failings.

“Given what has come to light in this report, it appears that Obama-EPA cannot be trusted on the most consequential decision the agency has ever made,” Inhofe added. “I am calling for the Senate Committee on Environment and Public Works, the committee of jurisdiction over the EPA, to hold immediate hearings to address EPA’s failure to provide the required documentation and have the science impartially reviewed. EPA needs to explain to the American people why it blatantly circumvented its own procedures to make what appears to be a predetermined endangerment finding.”

The inspector general’s full report can be viewed here.

Manufacturing Survey: Texas Manufacturing Activity Picks Up

Texas factory activity increased in September, according to business executives responding to the Texas Manufacturing Outlook Survey.  The production index, a key measure of state manufacturing conditions, rose from 1.1 to 5.9, suggesting growth picked up this month after stalling in August.

Most other measures of current manufacturing conditions also indicated growth in September.  The new orders index edged down from 4.8 to 3.6 this month, suggesting order volumes continued to increase, but at a slightly decelerated pace.  The shipments index rose from 6.7 to 9.4, reaching its highest level since March.  The capacity utilization index remained in negative territory in September but rose from –2.8 to –1.3.

Perceptions of general business conditions worsened in September. The general business activity index remained negative for the fifth month in a row and fell from –11.4 to –14.4; ten percent of manufacturers perceived an increase in activity this month, while one quarter noted a decrease.  The company outlook index fell from 7.2 in August to a near-zero reading in September.  Still, the great majority of respondents said their outlooks were unchanged or improved from last month.

Labor market indicators reflected higher labor demand growth. The employment index came in at 13.4, up notably from 5.4 in August.  One quarter of manufacturers reported hiring new workers, while 12 percent reported layoffs.  The hours worked index moved back into positive territory in September, suggesting average workweeks lengthened.

Input prices and wages rose at a pace similar to August, while selling prices increased slightly after holding steady last month.  The raw materials price index was 23.5, virtually unchanged from its August reading.  The finished goods price index moved up to 3.9 after coming in near zero last month. Forty-six percent of respondents anticipate further increases in raw materials prices over the next six months, while 29 percent expect higher finished goods prices.  The wages and benefits index rose from 15.7 in August to 17.4 in September, although nearly three-fourths of respondents noted no change in labor costs.

Expectations regarding future business conditions were generally less optimistic in September. The index of future general business activity edged down to –1.5, the first negative reading since April 2009.  The index of future company outlook fell as well, staying positive but registering its lowest reading in more than a year.  Most indexes of future manufacturing activity inched down in September, although all remained in solid positive territory.

The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity.  Data were collected Sep.13–21, and 93 Texas manufacturers responded to the survey.  Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.

Survey responses are used to calculate an index for each indicator.  Each index is calculated by subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase.  When the share of firms reporting an increase exceeds the share reporting a decrease, the index will be greater than zero, suggesting the indicator has increased over the prior month.  If the share of firms reporting a decrease exceeds the share reporting an increase, the index will be below zero, suggesting the indicator has decreased over the prior month.  An index will be zero when the number of firms reporting an increase is equal to the number of firms reporting a decrease.

ExxonMobil Chemical To Build Synthetic Lubricant Base Stock Plant in Baytown, TX

Exxon Mobil Corp. has announced plans to build a world-scale lubricant base stock manufacturing facility at its chemical complex in Baytown, Texas.

Exxon’s new plans for its Baytown chemical complex is the latest in a string of investments in U.S. petrochemical production, which has benefited from a recent boom in natural gas supply, a key raw material for the industry. With new drilling technology bringing greater supplies of natural gas to market, prices for the commodity in the U.S. have fallen well below those in Europe and Asia.

Exxon’s new plant will be able to produce 50,000 tons a year of high-viscosity metallocene polyaphaolefin, a lubricant stock.  Exxon said it has already started construction for the new facility and expects it to be finished by 2013. The company’s Baytown petrochemical facility is the largest in the country.

“The driver for greater energy efficiency, improved durability and extended drain intervals is creating demand for high-performance lubricants with advanced synthetic bas stocks,” Habib Quazi, Exxon’s Synthetics Global Vice President, said.

Upcoming TCC & ACIT Events

October 13th – TCC/ACIT Annual Meeting Luncheon at the Hilton Houston Hobby Airport Hotel. The featured guest speaker will be Texas Agriculture Commissioner Todd Staples.  Click here for details.

October 21st – ACIT Mid Coast Golf Tournament at the Wilderness Golf Course in Lake Jackson. Click here for details.

October 27th – ACIT Houston Ship Channel Fall Golf Tournament at Timber Creek Golf Club in Friendswood. Click here for details.

December 7th – ACIT South Texas Economic Outlook Breakfast. Details to follow.

Upcoming Member Events

For a listing of TCC & ACIT Member promotions and events, please click http://www.acit.org/categories/Events/Upcoming-Member-Events/.
(These events are not organized or endorsed by TCC or ACIT.)