As president of the Texas Pipeline Association (TPA), the primary resource for up-to-date information regarding the intrastate pipeline industry, Thure Cannon acts as a liaison between TPA’s 48 member companies and elected officials and policy leaders. Since 2010, he has advocated on behalf of a vast clientele that own portions of the more than 425,000 miles of pipeline in the state.
“Being accountable to so many leaders of industry and elected officials requires time management skills, as well as the ability to produce an understandable, quality work product in an efficient manner,” said Cannon. “My ultimate goal is to continue to provide effective advocacy for the industry. Part of this is to educate key stakeholders — the public, regulators, elected officials, landowners, media, etc. — who are unaware of the significant role the midstream sector plays in each of our lives. Texas’ pipeline industry is an important piece of the infrastructure necessary for helping to strengthen our economy and to contribute to everyone’s quality of life.”
Cannon received his Master of Public Affairs degree from the University of Texas’ Lyndon B. Johnson School of Public Affairs where he has since been a guest lecturer on the topic of Texas campaigns. Prior to joining TPA, Cannon worked in the Texas Legislature for more than 12 years where he assisted a state representative as chief of staff. Before his legislative tenure, he consulted on numerous political campaigns and interned with members of the Texas House of Representatives and the Texas Senate.
“The first ‘job’ I remember having was when I was about 6 years old stuffing envelopes for various political campaigns,” stated Cannon. “My father, Joe Cannon, was a state representative; he served on the school board and was active in advocating for candidates he thought could make a positive impact upon the community. And, as cliché as it is, my father is my all-time hero. Although he was born with only one arm, it never stopped him from playing high school sports like baseball and golf, and it never discouraged him from achieving professional or political success. To paraphrase a favorite saying of his: ‘No other entity besides government determines what time you were born or how deep in the ground you will be when you die.’ I always took that to mean I needed to be involved in policy issues I care about, and I enjoyed being involved in something I felt was making a difference while working for my father.
“I remained active in politics throughout my youth and college years. And I finally landed a job as a legislative employee, serving as chief of staff for a state representative. The district had a large energy economy that mandated our office be involved with energy issues. Because I realized pipelines are critical to energy development, I was led to this sector of the industry.”
Pipelines backbone of energy development
Cannon said the pipeline sector is also an “essential component of energy development.” Pipelines safely and reliably transport hydrocarbons, including crude oil, petroleum products and natural gas. And TPA is the only state trade association in the country that deals solely with the interests of intrastate pipelines. Cannon believes this is unique but finds it absolutely necessary because Texas houses more than 379,000 miles of intrastate pipelines within its borders. He elaborated the TPA provides advocacy for its members on issues related to pipeline safety, environmental regulation, taxation and legislation impacting the industry. Therefore, he understands the ins and outs of the industry and finds it is “incumbent on the pipeline industry to meet the dramatically increasing demands of oil and gas producers in Texas.”
“One way to think of pipelines is as the county roads that feed into the interstate highway system allowing products to move efficiently from farm to market,” he analogized. “Just as we depend on properly functioning farm-to-market roads, energy development depends on the construction and efficient operation of pipelines. So in order to construct and maintain the infrastructure necessary to do so, the industry must be able to rely on sound and consistent policies.”
The industry is already demonstrating sound and consistent policies, according to Cannon. In the area of safety, the Association of Oil Pipelines (AOPL) released findings that show the liquids pipeline industry spent over $1.6 billion in one year to enhance pipeline safety measures. AOPL also found the industry safely delivered 99.999 percent of the products it transported annually. TPA supports the industry’s ongoing commitment to safety, and its member companies have also been soundly investing in the most current emissions control technology. For example, the air quality in the Dallas/Fort Worth metro area greatly improved during the past decade in spite of the fact natural gas production and transmission activity in the Barnett Shale play expanded dramatically. He expressed TPA members take pride in this achievement and aim to build on this success as the pipeline industry continues to play a crucial role in helping meet the demands of the nation’s energy requirements.
Industry’s challenges
Among the challenges and issues the industry faces, Cannon feels regulatory inconsistency, eminent domain and greenhouse gas (GHG) regulations rank as the most significant ones.
“It is incumbent on the pipeline industry to meet the dramatically increasing demands of oil and gas producers in Texas,” he expressed. “But in order to construct and maintain the infrastructure necessary to do so, the industry must be able to rely on sound and consistent policies. Inconsistency and unpredictability result in unnecessary delays and increased costs for pipeline companies, ultimately increasing the cost to the public of the fuels on which we all rely — including all forms of gasoline, natural gas and natural gas liquids.”
As for eminent domain, Cannon said the ubiquitous misunderstanding of it has the potential to hinder the construction of necessary pipelines, both now and in the future. He said the use of eminent domain ultimately delays projects and drives up costs of construction. Therefore, obtaining rights of way through fair, market-driven negotiations with landowners is always the preferred route for pipeline companies. Moreover, the policy keeps changing regarding gas emissions in Texas. This shift, which allows the Texas Commission on Environmental Quality to become the permitting authority for sources of GHG emissions, has required TPA’s ongoing involvement.
Results speak for themselves
Despite the challenges the industry faces, Cannon revealed TPA recently commissioned a one-of-a-kind study, titled “Current and Future Economic Impacts of the Texas Oil and Gas Pipeline Industry,” that found the pipeline industry contributed a substantial amount of money to Texas’ economy. In 2013, through its ongoing operations and related construction, the pipeline industry contributed $33 billion in economic output. Led by Texas Tech University researchers, the study found this industry also supported more than 165,000 jobs, contributed $18.7 billion in gross state product, and injected $1.6 billion in state and local government taxes. The study also projects through 2024 the pipeline industry will infuse $374 billion in total economic output, 171,000 sustained jobs per year, $212 billion to the gross state product and $1.5-$2 billion per year in state and local government revenue. Cannon believes these results prove the Texas midstream sector is vital to the U.S. energy economy and, if it is hampered, production and development could suffer.
Having access to this study is not the only perk TPA members enjoy. Cannon said members benefit from having access to all the up-to-date information regarding environmental regulations, legislation, safety and other pertinent issues impacting the industry. Moreover, he noted there is an abundance of networking opportunities, ongoing industry advocacy and education opportunities for members. And Cannon is a strong advocate of education.
“One must always be educating others about the pipeline industry,” stated Cannon. “I think everyone acknowledges pipelines are important to our energy economy, but what many do not realize is they are crucial. Without adequate infrastructure, the ‘Texas miracle’ would be significantly hampered. The pipeline industry is complex, but the more people understand about the industry, the more they will realize pipelines are the safest, most reliable way to transport the fuels we use every day.”
For more information, visit www.texaspipelines.com or call (512) 478-2871.
