Texas Refinery Photo
Petrochemical Industry Continues Expansion in Texas
Article by Rebecca Maitland, Houston Chronicle, September 13, 2013
As the energy industry reviews the rest of 2013 and into 2014, the consensus is growth and continual expansion, with the shale plays remaining the focus upstream, and midstream and downstream are slated to expand as well, due to the worldwide demand for energy. According to Tim Cutt, president, Petroleum & Potash, BHP Billiton, the energy industry will continue to grow, not only into 2014, but beyond.
“We always look at the long term, and we see a continued robust demand for the commodities we produce, including oil and gas, which we fully expect to remain strong globally. In the decades ahead, China and much of Asia, as well as Africa and Latin America will buy more consumer goods, and use more energy, as world population grows and nations industrialize,” Cutt said.
Right now, BHP Billiton sees shale as its growth engine as it builds upon its experience. “We are developing a manufacturing-like process that will boost drilling and completion performance, reduce costs, and accelerate the time from the spudding of the well to the sale of the product,” Cutt said.
Upstream will continue to grow, especially with LNG export terminals under construction or awaiting approval. But the midstream and downstream sectors will naturally grow along with it.
Phillips 66, a downstream energy company with leading businesses in midstream, chemicals, refining, and marketing and specialties, is embracing the U.S. energy renaissance – created through the rise in oil and gas production in North America, and is playing a key role in helping to revitalize the American manufacturing sector.
“We are making investments to increase the amount of lower-cost feedstocks reaching our refineries and chemical plants, much of it coming from here in the U.S. We also are making investments to build pipelines, terminals and rail loading and offloading facilities, as well as to expand chemicals processing capacity through our 50/50 joint venture, Chevron Phillips Chemical Company,” said Alissa K. Hicks, spokesperson, Phillips 66, Houston.
In midstream, Phillips 66 is pursuing development of a 100,000-barrel-per-day natural gas liquids fractionator adjacent to its Sweeny Refinery in Old Ocean. The project will help boost the local economy with more than 25 full-time jobs and hundreds of temporary construction jobs. If approved, construction is expected to begin in the first half of 2014 with startup expected by the second half of 2015.
“Phillips 66 is also evaluating a project to construct an LPG export terminal at the site of our existing Freeport Terminal. The project will potentially develop multiple parcels of land in Freeport and would create an estimated two dozen full-time jobs and hundreds of construction jobs. If approved, construction on the terminal is expected to begin in late 2014 with completion expected in mid to late 2016,” Hicks said.
In chemicals, CPChem plans to construct a world-scale ethane cracker at its Cedar Bayou plant in Baytown, and two polyethylene units in Old Ocean, near the Sweeny Facility. In total, the USGC Petrochemicals Project is expected to create approximately 400 long-term direct jobs and 10,000 engineering and construction jobs.
The entire project is estimated to cost approximately $6 billion. CPChem plans to seek final investment approval later in 2013. Pending final approval by CPChem’s board of directors, the company expects the project to be completed in 2017.
BHPB also has a number of openings throughout its operations. “We have many important positions open across the board, but experienced drilling and completion professionals are particularly challenging to attract in today’s highly competitive environment,” Cutt said.
For more information, visit www.bhpbilliton.com and www.phillips66.com.
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EIA: U.S. oil production continues to hit highs not seen in decades:
U.S. daily oil production rose 1.6% to 7.745 million barrels in the week that ended Sept. 6, spurred by technological advancements in drilling such as hydraulic fracturing, according to the Energy Information Administration. This is the highest level for such output since May 1989, EIA said. From Bloomberg (9/11)
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