This article originally posted on the website in December. It is one of the top-rated articles of 2020.
Executives with downstream and midstream organizations offered their perspectives on what could be in store for their respective industry sectors during a Dec. 9, 2020, BIC Alliance industry roundtable.
Moderated by BIC CEO Thomas Brinsko, the webinar assembled industry leaders who weighed in on dealing with COVID-19, possible regulatory changes under a Biden administration, and other key topics. Webinar panelists – representing chemicals, pipeline, and terminals and storage industry associations – enlightened the audience about opportunities and challenges their industries face in 2021 and beyond. Summaries of their comments appear below.
Andy Black, president and CEO, Association of Oil Pipe Lines (AOPL)
Black first stressed that the pipeline industry's greatest wish for 2021 is to operate in a better business environment.
"l don't have to tell you all that it's been a tough year in the oil and gas industry," said Black. "Throughput into oil pipelines into refineries is down. Consumption of refined products is down, particularly of jet fuel. So, let's hope that a vaccine next year and people getting back to work and wearing masks and driving down the virus can help improve that business environment."
In terms of public policy and legislative advocacy, Black said AOPL's priorities include:
- Congressional reauthorization of U.S. pipeline safely laws and Pipeline and Hazardous Materials Safety Administration (PHMSA) regulatory programs, particularly retaining the requirement that benefits outweigh the costs of any pipeline safety regulations
- Closing loopholes that prevent prosecution of criminal attacks on pipelines by anti-pipeline activists if they happen to not damage the pipeline
- Updating nearly 20-year-old PHMSA regulations and permissions to better reflect technologies and analytical techniques that pipeline companies now use
- Ensuring that Federal Energy Regulatory Commission (FERC) economic regulations enable pipeline operators to have sufficient funds for safety investments and expansions when the market allows
- Promoting federal and state pipeline regulatory decisions that are on the merits, timely, and stand up in court while acknowledging pipelines' enviable records on safety and greenhouse gas emissions
- Expanding pipeline safety management system usage and improving industrywide information-sharing
- Improving efforts to inform the public about the pipeline industry's safety record.
Gregory Bowser, president and CEO, Louisiana Chemical Association (LCA)
"We welcome regulatory action," said Bowser, adding a caveat. "However, we want to make sure that whatever happens, it's done based on science and it's based on being safer, and we've done a great deal in our industry to make things better for people who live here."
Bowser observed the pandemic has offered a "perfect example" of the chemical industry's vital role. He cited as evidence the industry's manufacturing of hand sanitizer, gloves, various personal protective equipment (PPE), and other products.
In addition to COVID-19, Bowser noted the issue of climate change will likely rank highly on LCA's agenda going forward – particularly in a Biden administration.
"Everyone wants to deal with climate change, and we do, too, because it's important to our industry," he said, adding that LCA has assembled a climate change task force that seeks to work with the government on developing practical mitigation approaches.
Bowser noted that LCA members boast a strong environmental stewardship record. He explained the Louisiana chemical industry has reduced emissions by 75 percent over the past three decades while expanding operations.
"Technology allowed us to do that," he explained. "If the environment's going to change, it's going to be led by the chemical industry."
Moving forward, Bowser said that LCA stands ready to work with a new administration.
"With a change in the White House, we know it's going to be a little different philosophy," he said. "We welcome the challenge."
Kathryn Clay, president, International Liquid Terminals Association (ILTA)
Noting that ILTA members have faced "some really important regulatory initiatives" in recent years, Clay said that her organization anticipates more regulatory activity during a Biden administration. She said that her industry continues to implement major Trump-era rulemaking, including the Transportation Worker Identification Credential (TWIC) Reader Rule.
Clay explained the rule, required by the U.S. Department of Homeland Security, applies to facilities along waterways and in port facilities. A biometric requirement is now going into effect, she said, adding that ILTA, the American Fuel and Petrochemical Manufacturers (AFPM), and the American Chemistry Council (ACC) have sought to ease implementation for their members.
"We have actually not been supportive of this rule, but now that it is going forward, we are working hard to pivot and be part of the solution, working with the Coast Guard, and making sure that the implementation makes sense," Clay noted. "We believe that there are a lot of opportunities for terminals, for chemical facilities, for refiners to work within the current regulatory structure, re-designate key parts of their footprint to lower that burden that will be imposed by the TWIC Reader biometric requirement. What that means for a particular facility might be that, instead of 15 biometric reader engagement points or entry points, you might be able to have 14 that just retain normal gates and fence lines and one designated area that is subject to the TWIC Reader biometric improvements."
Clay said other trends ILTA is seeing include:
- increased resistance to terminal and storage infrastructure, even in places with longstanding ties to such facilities
- the likelihood that the Environmental Protection Agency (EPA) in a Biden administration will pursue environmental justice aims by targeting usage of firefighting foams containing PFAS and PFOA chemicals.
Hector Rivero, president and CEO, Texas Chemical Council (TCC)
Echoing Bowser's points about the chemical industry's role in combating COVID-19, Rivero also highlighted the sector's contributions in providing materials for food supply and drinking water safety and meeting surging demand for health, hygiene and safety products.
"Many of our companies have changed their production processes to make materials and finished products … that are in high demand," he said.
Looking ahead, Rivero pointed out the pandemic has paused many chemical industry growth projects brought on by the shale revolution.
"We're hoping there's an opportunity for further investment going forward once we get past this pandemic, but the world will tell us how that looks," he said.
More immediately, Rivero said the industry is working to restart existing projects and turnarounds delayed by COVID-19. He added that other, longer-term trends TCC sees include:
- employee work environment changes, such as permanent work-from-home arrangements
- rumblings that a Biden-era EPA will advance risk management changes in Toxic Substances Control Act (TSCA) reform and take actions tied to climate change and product regulations
- process safety initiatives
- more sustainability programs, such as targets to eliminate plastic waste via greater recyclability.
Dräger and USA Industries sponsored the webinar, viewable in its entirety on BIC's website.
