10/12 Industry Report [Q1 2018]

Q1 2 01 8

20

Y O U N G LE A DE RS t o w at c h

M e et s o ut h L o ui si a n a’ s ri si n g i n d u str y t al e nt — all of t h e m u n d er t h e a g e of 4 0.

P L U S: H e r e c o m e s t h e p r o d u c ti o n s u r g e N e w t o n T h o m a s’ u ni q u e s u c c e s si o n s t r a t e g y F o c u s o n s af e t y

C h ri st e n C a m p b ell,

Pr o c ur e m e nt H u b M a n a g er, B A S F, G ei s m ar

• A D WILL R U N A S I S u nless a p prov al or fi n al revisio ns are receive d by t he close of b usi ness to d ay.

• A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees.

C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 7. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

S W AT T E A M SI X P a rt n e r wit h t h e elit e t u r n a r o u n d t e a m Tr u st S W A T f o r s u p e ri o r m a n a g e m e n t a n d e x e c u ti o n o n a n y t y p e of p r oj e c t

C H O OSE T HE E XPE RTSI N T U R N A R O U N DS A N D M O RE S p e ci al t y W el di n g a n d T u r n a r o u n d s ( S W A T ) i s t h e p r e mi e r t u r n a r o u n d c o m p a n y f o r all p e t r o c h e mi c al, c h e mi c al a n d r e fi ni n g f a cili ti e s t h r o u g h o u t t h e G ulf C o a st, T h e U. S. a n d b e y o n d. O u r t e a m of s p e ci al t y t r ai n e d c r af t s m e n c a n h a n dl e a n y j o b, a n y ti m e. W h e n t h e r e st w o n’ t d o, c all o n t h e eli t e s q u a d f o r all y o u r e m e r g e n c y, t u r n a r o u n d o r s p e ci al t y w el di n g n e e d s.

• S p e ci al t y

W el di n g & Pi pi n g

•

H e a t e r S e r vi c e s

•

B oil e r s

•

A S M E & N BI C C o d e R e p ai r s

• E x c h a n g e r s, T o w e r s & D r u m s • 2 4- H o ur E m er g e n c y R e s p o n s e S SEE NI N G RE ATE R AT O N R O U GE U SI N E S S R E P O R T’ S 017 TOP 100 RI V A T E C O M P A NI E S

T op 1 0 0 iv

Pr

A B B 2 P

2 0 17

a te

Com pani

4 0 4 9 2 C a n o n R o a d, G o n z al e s, L A 7 0 7 3 7 • ( 2 2 5 ) 6 4 4 - 1 2 0 0 • s w a t s e r vi c e. c o m

es

• A D WILL R U N A S I S u nless a p prov al or fi n al revisio ns are receive d by t he close of b usi ness to d ay.

• A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees.

C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 7. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

2 0 17

C O N S T R U C TI O N •

M AI N T E N A N C E • F A B RI C A TI O N • E N GI N E E RI N G

C h e mi c al • R e fi ni n g • P o w er • W at er Tr e at m e nt • Alt er n ati v e F u el s Oil & G a s • M ari n e • T er mi n al St or a g e • M a n uf a ct uri n g 8 6 4 1 U nit e d Pl a z a B o ul e v ar d, B at o n R o u g e 2 2 5 - 4 0 8 - 1 3 0 0 • w w w. e x c el u s a. c o m 1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

3

2 01 7 J A G U A R

X E

T HI S I S N O T B U SI N E S S A S

U S U A L

T h e r e’ s n e v e r b e e n a b et t e r ti m e t o j oi n t h e J a g u a r f a mil y.

A n d, all 2 01 7 m o d el s a r e p r ot e c t e d b y J a g u a r Elit e C a r e, o u r B e s t-I n - Cl a s s c o v e r a g e i n cl u di n g c o m pli m e n t a r y s c h e d ul e d m ai n t e n a n c e.* P a r e t ti J a g u a r B a t o n R o u g e 1 3 9 3 4 Ai rli n e H w y.

B a t o n R o u g e, L A 2 2 5- 7 5 6- 5 2 4 7

2 01 7

$

w w w.j a g u a r b a t o n r o u g e. c o m

T H E

A R T

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P E R F O R

J A G U A R

2 6 9

P E R

M A N C E

X E

M O N T H

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3 3 - M O N T H L E A S E. $ 3, 9 9 5 + T A X, TI T L E A N D F E E S, D U E A T SI G N I N G. $ 0 S E C U RI T Y D E P O SI T. I N C L U D E S $ 1, 0 0 0 C U S T O M E R C R E DI T.

M o d el s h o w n: 2 01 7 J a g u a r X E R - S p o r t. E u r o p e a n li c e n s e pl a t e s h o w n. † X E 2 5 T m o d el. M S R P - $ 3 6, 7 0 0. $ 3, 9 9 5 d u e a t si g ni n g, $ 0 s e c u ri t y d e p o si t, e x cl u d e s r e t ail e r f e e s, t a x e s, ti tl e a n d r e gi s t r a ti o n f e e s. 1 0, 0 0 0 mil e s p e r y e a r. F o r c o m pl e t e d e t ail s r e g a r di n g of f e r s h o w n o r J a g u a r Eli t e C a r e c o v e r a g e, vi si t J A G U A R U S A. C O M, c all 1. 8 5 5. J A G U A R U S A / 1. 8 5 5. 5 2 4. 8 2 7 8 o r vi si t y o u r l o c al J a g u a r R e t ail e r. © 2 01 7 J a g u a r L a n d R o v e r N o r t h A m e ri c a, L L C

4

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

1 0 1 2i n d u str yr e p ort. c o m

M A RI N E

H E A V Y CI VI L

P A VI N G

PI LI N G

A S P H A LT

U TI LI TI E S

SI T E W O R K

VACUU M E X C A V A TI O N

W W W. B O H B R O S. C O M 1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

5

C O N TE N TS

P u bli s h er:

R olf e M c C olli st er, Jr.

E DI T O RI A L E dit ori al Dir e ct or: P e n n y F o nt S p e ci al Pr oj e ct s E dit or: J err y M arti n E dit or: S a m B ar n e s Dir e ct or of R e s e ar c h: Si err a Cr u m p C o ntri b uti n g Writ er s: Eri n Z. B a s s, D a vi d J a c o b s, M er e dit h W hitt e n C o ntri b uti n g P h ot o gr a p h er s: L e e C el a n o, T erri F e n s el, C h er yl G er b er, D o n K a d air A D V E R TI SI N G S al e s Dir e ct or: K erri e Ri c h m o n d A c c o u nt E x e c uti v e s: J. C. A p pl e w hit e, A n gi e L a P ort e, Lilli a n M c G uir e, M el a ni e R e a A d v erti si n g C o or di n at or: Britt a n y Ni et o

20

M A R K E TI N G C hi ef M ar k eti n g Of fi c er: Eli z a b et h M c C olli st er M ar k eti n g a s si st a nt: K at el y n O gl e s b y C o m m u nit y Li ai s o n: J e a n n e M c C olli st er M c N eil

Y O U N G LE A DE RS

P R O D U C TI O N/ D E SI G N Pr o d u cti o n M a n a g er: M el a ni e S a m a h a Art Dir e ct or: H o a V u Gr a p hi c D e si g n er s: M eli n d a G o n z al e z, R a c h el P ar k er, E mil y Witt

t o w at c h

P A G E 2 0 L A U N C H

1 0 1 4 1 6

17 1 8 1 9

I C Y MI I n d u str y bri ef s T h e bi g pi ct ur e W or ki n g t o g et h er P e o pl e M e et t h e w o m e n o v er s e ei n g f o ur of E x x o n M o bil’ s L o ui si a n a f a ciliti e s.

E x e c uti v e s p otli g ht M e et R e g gi e D u pr é, C E O a n d pr e si d e nt of D u pr é L o gi sti c s I nt elli g e n c e T h e l o gi sti c s p u z zl e Aft er h o ur s I n d u str y e v e nt s a cr o s s t h e c orri d or

N E W S

3 0 3 4 3 6

4 0

4 2

A d a pti n g t o s ur vi v e Oil p at c h o w n er s, s u p pli er s m o v e t o s h al e, b ut s o m e c a n’t f oll o w.

T h e wil d c ar d inthe ga me F a ci n g a n e w s et of r ul e s, I T E P st u m bl e s f or w ar d.

Sil v er li ni n g L a k e C h arl e s b a n k s o n u p c o mi n g L N G pr oj e ct s i n t h e w a k e of S a s ol’ s G T L p ull o ut.

J et s et E x x o n M o bil’ s n e w a vi ati o n l u bri c ati o n pl a nt i n L o ui si a n a i s d e si g n e d t o s ati sf y a gr o wi n g gl o b al d e m a n d.

A st e p u p f or w o m e n A n e x e c uti v e pr o gr a m i n R o b ert b uil d s a b ett er f ut ur e f or e n er g y s e ct or W B E s.

F O C U S: S A F E T Y

4 4

4 8

5 0

P a s si n g i n s p e cti o n Fr o m dr o n e s t o r o b ot s t o r o p e a c c e s s, o w n er s a n d c o ntr a ct or s ar e fi n di n g n e w w a y s t o r e d u c e ‘ atri s k’ l a b or h o ur s.

T h e bi g f a k e Wit h pr o d u cti vit y a n d s af et y o n t h e li n e, i n d u str y r a c e s t o o ut p a c e dr u g t e st d o d g er s.

A s oft er t o u c h O S H A r e g ul ati o n s ar e n’t c h a n gi n g m u c h u n d er Tr u m p, b ut m a n uf a ct ur er s m a y h a v e a diff er e nt ki n d of r el ati o n s hi p wit h t h e a g e n c y.

I N SI G H T

6 0

C L O SI N G N O T E S

6 3 6 4 6 6

7 0

S P E CI A L A D V E R TI SI N G S E C TI O N

5 3

C o m p a n y s p otli g ht s

S e n d y o ur i d e a s a n d c o m p a n y n e w s t o e dit or @ 1 0 1 2i n d u str yr e p ort. c o m.

6

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

O ur c ol u m ni st s w ei g h i n o n t h e f ut ur e of oil pri c e s a n d t h e i m p a ct of c a pit al i n v e st m e nt.

E x e c uti v e m o v e s C o m pa ny ne ws Pr oj e ct b y pr oj e ct O ur m a p s of t h e m e g a pr oj e ct s a n d m e di u m- si z e d pr oj e ct s t h at ar e dri vi n g t h e i n d u stri al b o o m.

M y t o u g h e st c h all e n g e N e wt o n T h o m a s of T h e N e wtr o n Gr o u p

C O L LI N RI C HI E

M e et s o ut h L o ui si a n a’ s ri si n g i n d u str y t al e nt — all of t h e m u n d er t h e a g e of 4 0.

A D MI NI S T R A TI O N C hi ef Fi n a n ci al Of fi c er: A n dr e w P erill o u x S e ni or B u si n e s s A s s o ci at e: L y di a S p a n o B u si n e s s A s s o ci at e: Tiff a n y D ur o c h er Of fi c e C o or di n at or: D e b bi e L a m o ni c a C o uri er: Ji m W ai n wri g ht R e c e pti o ni st: C at h y Br o w n A U DI E N C E D E V E L O P M E N T A u di e n c e D e v el o p m e nt Dir e ct or: S h a n n o n K a hl er A u di e n c e D e v el o p m e nt C o or di n at or: K e n n a M ar a nt o A P U B LI C A TI O N O F L O UI SI A N A B U SI N E S S I N C. C h air m a n: R olf e H. M c C olli st er, Jr. Pr e si d e nt a n d C E O: J uli o A. M el ar a E x e c uti v e A s si st a nt: Milli e C o o n S U B S C RI P TI O N S/ C U S T O M E R S E R VI C E 9 0 2 9 J eff er s o n Hi g h w a y, S uit e 3 0 0 B at o n R o u g e, L A 7 0 8 0 9 2 2 5 - 4 2 1- 8 1 5 7 • F A X 2 2 5 - 9 2 8 - 5 0 1 9 1 0 1 2i n d u str yr e p ort. c o m e m ail: cir c ul ati o n @ b u si n e s sr e p ort. c o m V ol u m e 3 - N u m b e r 1 © C o p yri g ht 2 0 1 8 b y L o ui si a n a B u si n e s s I n c or p or at e d. All ri g ht s r e s er v e d b y L BI. 1 0/ 1 2 I n d u str y R e p ort i s p u bli s h e d q u art erl y b y L o ui si a n a B u si n e s s I n c. R e pr o d u cti o n wit h o ut p er mi s si o n i s pr o hi bit e d. B u si n e s s a d dr e s s: 9 0 2 9 J eff er s o n H w y., St e. 3 0 0, B at o n R o u g e, L A 7 0 8 0 9.

T el e p h o n e ( 2 2 5) 9 2 8 - 1 7 0 0.

P O S T M A S T E R: S e n d a d dr e s s c h a n g e s t o 1 0 1 2 I n d u str y R e p ort, 9 0 2 9 J eff er s o n H w y., St e. 3 0 0, B at o n R o u g e, L A 7 0 8 0 9.

1 0/ 1 2 I n d u str y R e p ort c a n n ot b e r e s p o n si bl e f or t h e r et ur n of u n s oli cit e d m at eri al — m a n u s cri pt s or p h ot o gr a p h s, wit h or wit h o ut t h e i n cl u si o n of a st a m p e d, s elf- a d dr e s s e d r et ur n e n v el o p e.

I nf or m ati o n i n t hi s p u bli c ati o n i s g at h er e d fr o m s o ur c e s c o n si d er e d t o b e r eli a bl e, b ut t h e a c c ur a c y a n d c o m pl et e n e s s of t h e i nf or m ati o n c a n n ot b e g u ar a nt e e d. N o i nf or m ati o n e x pr e s s e d h er e c o n stit ut e s a s oli cit ati o n f or t h e p ur c h a s e or s al e of a n y s e c uriti e s.

1 0 1 2i n d u str yr e p ort. c o m

E DI T O R’ S T A K E

Mill e n ni al s mi g ht b e g etti n g a b u m r a p

F

S A M B A R NES

8

e ar n ot. ere a p pe ars t o be ple nt y of drive a n d te n acit y c o mi n g o ut of t he ne xt ge nerati o n.

Give n t he s uccess- orie nte d traject or y of t h ose fe at ure d i n t his iss ue’s “ 2 0 Yo u n g Le a ders t o Watc h” c over st or y, o ur f ut ure is i n g o o d h a n ds. is m a kes o ne c o nsi der t h at per h a ps t he mille n ni als are getti n g a b u m ra p — at le ast i n t he L o uisi a n a petr oc he mic al, oil a n d g as m ar kets.

Ma n y of t hese u p- a n d-c o mers — all u n der t he a ge of 4 0 — h ave acc o mplis he d m ore i n a rel ativel y brief s p a n of ti me t h a n m ost will i n t heir lifeti mes. e y i ncl u de le a ders of st ate g over n me nt, a dv oc ates of v ol u nteeris m, presi de nts of ass oci ati o ns, de velo pers of ne w tec h n ol o gies, u p h ol ders of civic res p o nsi bilities, e ar ners of a dva nce d de grees, y o u n a me it. All w hile h a n di n g t he res p o nsi bilit y of g ui di n g t heir c o m p a nies, divisi o ns or gr o u ps t hr o u g h c h alle n gi n g ti mes.

As o ne of o ur 2 0 Yo u n g Le a ders t o Watc h s u bjects p ut it: Ma y be we s h o ul d st o p wri n gi n g o ur h a n ds over t o d a y’s w orries a n d be gi n activel y recr uiti n g a n d trai ni n g le a ders f or t he f ut ure. After all, as t he 5 0- a n d- over cr o w d be gi ns t o pre p are f or t he ne xt p h ase of life, s o me o ne nee ds t o be t here t o t a ke t he rei ns.

S o me of t hese y o u n g le a ders h ave pl a ye d cr uci al r oles i n t he wa ke of t he oil price decli ne t hese l ast fe w ye ars.

I ncl u de d i n t h at n u m ber are Mar k Da n os a n d his br ot hers at Da n os i n Gra y, L o uisi a n a, w h o h ave m a de s o me di ffi c ult decisi o ns t o a d a pt t o a l o wer-f or-l o n ger oil m ar ket [ see “ A d a pti ng t o s ur vi ve,” p age 3 0].

Des pite rece nt u ptic ks i n oil prices, o ff s h ore o w ners a n d s u p pliers c o nti n ue mi grati n g t o t he s h ale pl a ys. e y’ve als o t ur ne d t o m ore c o nve nti o n al me a ns of t o u g hi n g it o ut, n a mel y l a y o ff s, e x p a n de d ge o gra p hies a n d a m ore diversi fi e d clie nt b ase.

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

A n d at t he ur gi n g of o w ners, s u ppliers are a d di n g a n d / or c o m bi ni n g ser vices t o bec o me “o ne-st o p-s h o ps” i n t he ne ver- e n di n g q uest t o re d uce o perati n g c osts.

Wit h o ut d o u bt, t he G ulf of Me xic o is bec o mi n g a g h ost t o w n, a n d t he res ult h as bee n a dire u ne m pl o y me nt pict ure f or H o u m a, i b o da ux a n d L af a yette. B ut w hile s o me s u p pliers c a n f oll o w t he oil gi a nts t o t he s h ale pl a ys of t he Per mi a n Basi n, t here are t h ose w h ose h a n ds are tie d b y t he ver y water- b or ne n at ure of t heir b usi ness. As L o uisi a n a Oil & Gas Ass oci ati o n Vice Presi de nt Gi ff or d Bri g gs p ut it, b o ats d o n’t d o s o well o n l a n d. “If y o ur w h ole b usi ness is cre w b o ats or s u p pl yi n g t o ols a n d e q ui p me nt t h at are s peci fi c all y use d o ff s h ore,” he o bser ves, “ y o u c a n’t j ust s hift over t o t he Per mi a n.” at me a ns t he y’ve bee n left wit h li mite d o pti o ns, n o ne of w hic h are desira ble. S e a Tra n Mari ne i n Ne w I beri a, a m ari ne tra ns p ort ati o n ser vice c o m p a n y, h as sl as he d its w or kf orce b y m ore t h a n 6 0 % si nce 2 0 1 4, a n d is e x p a n di n g its f o ot pri nt b y p urs ui n g w or k be y o n d t he oil a n d g as m ar ket.

Ot hers h ave or will s h utter t heir b usi nesses, si nce t he y were b arel y s ust ai n a ble e ve n bef ore t he oil dr o p.

T HE S AFET Y F R O NT Else w here, petr oc he mic al o w ners a n d c o ntract ors are fi g hti n g tec h n ol og y wit h tec h n ol o g y i n t he war a g ai nst s u bst a nce a b use [see “ e big f a ke,” p age 4 8 ].

I n t his war, t he i nter net h as bec o me a f or mi d a ble o p p o ne nt, as it pr ovi des w or kers wit h q uic k a n d e as y ti ps f or circ u mve nti n g a dr u g test.

Here’s t he r u b: N o o ne re all y k n o ws h o w s uccessf ul t hese ne’er- d o- well w or kers h ave bee n. If tr ul y s uccessf ul, t here w o ul d be n o wa y of k n o wi n g.

N o net heless, i n d ustr y is fi g hti n g b ac k wit h ne w tec h n ol o gies — o ne pr o d-

uct o n t he m ar ket detects s y nt hetic uri ne — a n d b y s h ari n g testi n g d at a vi a a c o m m o n testi n g l a b orat or y s uc h as DI S A Gl o b al S ol uti o ns.

St a yi n g a he a d of t he test d o d gers will be i m p ort a nt, si nce t he use of o pi oi ds a n d s y nt hetic m arij u a n a c o nti n ues t o i ncre ase. St ate t as k f orces are a n al y zi n g d at a t o deter mi ne j ust h o w wi des pre a d t he pr o ble m h as bec o me ( o pi oi d f at alities h ave tri ple d i n t he l ast fe w ye ars), a n d pl a n t o use t h at d at a t o re me d y t he pr o ble m.

At t he j o bsite, c o ntract ors s a y o pi oi ds c o ul d s o o n overt a ke a m p heta mi nes a n d m arij u a n a as t he N o. 1 re as o n f or dr u g test f ail ures. e good ne ws is t h at o w ners are bec o mi n g m ore a ware of t he nee d f or i m pr ove d detecti o n a n d are t heref ore t a ki n g decisive acti o n. e y rec o g ni ze t h at a w or kf orce u n der t he i n fl ue nce is si g ni fi ca ntl y less s afe a n d si g ni fi ca ntl y less pr o d uctive.

Tec h n ol o g y is i m pr ovi n g s afet y st ats i n a deci de dl y di ff ere nt wa y t hr o u g h t he l o weri n g of “at-ris k” l a b or h o urs [ see “ Passi ng i ns pectio n,” p age 4 4 ]. A dva nce d t o ols s uc h as dr o nes, r o b otics, ac o ustic e missi o n testi n g a n d ot hers are t a ki n g w or kers o ut of h ar m’s wa y d uri n g r o uti ne i ns pecti o ns. I n t he case of dr o nes, t heir use a p pe ars t o be li mite d o nl y b y c urre nt re g ul ati o ns, a n d s o me are p us hi n g f or ne w Fe deral Avi ati o n A d mi nistrati o n re g ul ati o ns t h at w o ul d all o w t he m t o g o f art her a n d d o m ore.

Ot hers h ave g o ne “ol d sc h o ol,” t ur ni n g t o met h o ds tra diti o n all y all ocate d t o t he r oc k cli m bi n g i n d ustr y t o scale t all vessels.

W h ate ver t he met h o d, t he g o al is u nivers al. As Sc ott Wa g ues p ac k, mec h a nical ser vices m a n a ger at B A S F, s a ys, “ O ur a p pr o ac h t o s afet y f or t he l ast c o u ple of ye ars h as bee n e x p os ure re d ucti o n. If y o u eli mi n ate t he h a z ar d, t he n y o u’ve c o m pletel y t a ke n it o ut of t he sit u ati o n.”

1 0 1 2i n d u str yr e p ort. c o m

1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

9

LAU NC H I C Y MI

E y e s o n t h e G ulf

10

b o d a u x c o ul d c o me fr o m o p e ni n g t he e aster n G ulf t o oil a n d g as drilli n g,” n ote d C o urier e xec utive e dit or Keit h M a gill. “ fie are a, a n e as y w or ki n g dist a nce fr o m t he G ulf’s m ai n oil fiel d ser vice h u b at P ort F o urc h o n, h as b ee n o ff li mits si nce 1 9 8 8.”

A n d e ve n t h o u g h t he B O E M q uic kl y a xe d Fl ori d a’s c o ast al w aters o ut of t he pl a n, t he f act re m ai ns t h at dee p w ater pl a yers h ave le ar ne d b etter h o w t o m a ke G ulf drilli n g pr o fit a ble. At B P’s c urre nt c as h bre a k- e ve n price of less t h a n $ 4 0 / b bl, M al o ne s ai d, dee p w ater G ulf o p erati o ns c a n b e c o m p etitive wit h ti g ht oil i n t he U. S. l a n d sect or. “ Yet n ot o nl y de vel o p me nt o p erati o ns, b ut e x pl orati o n o p erati o ns als o are b ec o mi n g m ore vi a ble,” Oil Wo rl d n ote d. Acc or di n g t o M al o ne, dee p w ater e x pl orati o n wells h ave t o p p e d $ 2 0 0 milli o n p er well i n

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

t he p ast dec a de, b ut m ore rece ntl y, G ulf of Me xic o e x pl orati o n wells h ave b ee n drille d f or less t h a n $ 1 0 0 milli o n, a n d i n s o me c ases, less t h a n $ 5 0 milli o n.

Si mil arl y, S hell sl as he d its bre a ke ve n price fr o m $ 8 0 / b bl t o ar o u n d $ 4 0 / b bl t o m a ke its c utti n g- e d ge A p p o m att o x pr oject vi a ble. A n d wit h prices t o uc hi n g $ 7 0 / b bl f or t he first ti me i n t hree ye ars i n Ja n u ar y, t he G ulf o pti mists g ot a n ot her lift.

O n t o p of t his c a me Wo o d M ac ke n zie’s mi d-Ja n u ar y pr ojecti o n t h at G ulf pr o d ucti o n will re ac h a n all-ti me rec or d t his ye ar. F urt her m ore, Wo o d m ac g o es a ye ar f urt her, wit h se ni or rese arc h a n al yst Willi a m Tur ner s a yi n g t h at pr o d ucti o n re c or d c o ul d b e br o ke n a g ai n i n 2 0 1 9.

“I n 2 0 1 8 we e x p ect t o see ne arl y 2 milli o n b arrels e q uiv ale nt p er d a y, wit h a b o ut 8 0 p erce nt b ei n g oil,” Tur ner n ote d i n a p o dc ast re p orte d

b y O ffs h ore E nerg y To d ay .

He s ai d t h at f or 2 0 1 8 t he fiel ds t h at will be drivi n g al m ost h alf of t he gr o wt h are o ne ne w fiel d, St a m pe de, w hic h Wo o d M ac ke n zie e x pects t o see c o mi n g o nli ne “a n y d a y n o w,” a n d five ot hers t h at are e x p a nsi o ns of le g ac y fiel ds i n t he G ulf.

The v ari a bles at pl a y are st a g ger i n g. M ore U. S. pr o d ucti o n c o ul d i ncre ase s u p pl y a n d i nve nt ories a n d u n derc ut t he alre a d y-te n u o us O P E C pr o d ucti o n c uts, le a di n g t o a price sli de [ See D a vi d Dis m u kes’ I nsig ht c ol u m n, p age 6 0].

A n d as 1 0 / 1 2 I n d ustr y Re p ort we nt t o press, E x x o n M o bil le a ke d a $ 6 0 billi o n c a pit al e x pe n dit ure pl a n f or t he ne xt five ye ars t h at gives he av y e m p h asis t o t he Per mi a n’s s h ale, tri pli n g t ot al d ail y pr o d ucti o n t o m ore t h a n 6 0 0, 0 0 0 oil- e q uiv ale nt b arrels t here. St a y t u ne d.

— J err y M arti n

MAERSK

T H E S E A R E I N T E R E S TI N G ti mes f or t he oil i n d ustr y i n t he G ulf of Me xic o, w hic h is s o critic al t o t he ec o n o mic f ates of f a milies a n d b usi nesses i n s o ut h L o uisi a n a.

L o w oil prices h ave de alt a br ut al bl o w t o t he i n d ustr y, t o j o bs i n pl ac es li ke H o u m a, a n d t o t he c a pit al e x pe n dit ure decisi o ns of t he m aj ors w h o are n o w l ar gel y l or ds of t he G ulf.

It’s i m perative t h at c o m p a nies c h a n ge b usi ness m o dels t o s ust ai n f ut ure dee p w ater U. S. oil pr o d ucti o n gr o wt h, acc or di n g t o R ya n M al o ne, B P’s pr ojects ge neral m a n a ger f or t he G ulf of Me xic o, Oil Worl d re p orts.

Deliveri n g a ke y n ote prese nt ati o n at t he 2 0 1 7 L o uisi a n a G ulf C o ast Oil E x p ositi o n ( L A G C O E), M al o ne s ai d t h at B P is o perati n g u n der its belief t h at oil prices will re m ai n “l o wer f or l o n ger,” pre dicti n g t h at oil prices will li kel y tre n d cl ose t o $ 5 0 / b bl f or t he f oresee a ble f ut ure. Thi s c o ncl usi o n h as le d t he c o m p a n y t o e x a mi ne e ver y as pect of its o p era ti o ns, a n d t o c ut c osts b y ref oc usi n g a n d re- e n gi neeri n g its G ulf of Me xi c o pr o gra m.

F or m a n y pl a yers i n b ot h t he drill i n g a n d s u p p ort sect ors, si m ple m at h h as s hifte d t heir res o urces t o s h ale pl a ys li ke t he Per mi a n B asi n [ See “ A d a pti ng t o s ur vi ve,” p age 3 0].

Yet t he ne ws is n ot all b a d. The Tr u m p a d mi nistrati o n’s a n n o u nce me nt at t he be gi n ni n g of t he ye ar t o o pe n 9 0 % of fe deral w aters o ff t he U. S. c o ast t o drilli n g s p ar ke d h o p e a n d de b ate o n t he o nli ne s p aces of t he The [ Ho u m a] C o urier . “ Drill, b a b y, drill,” s ai d H a n k H oll a n d of L oc k p ort o n t he ne ws p a p er’s Face b o o k p a ge. “ Thi s is gre at.” “ N ot s ure w h at t his will acc o m plis h,” c o u n tere d E d G ui dr y, als o of L oc k p ort. “ Dee p w ater is st a g n a nt ri g ht n o w d ue t o s h ale.”

“I n t he s h ort-ter m, t he bi g gest p ote nti al i m p act f or H o u m a- Thi -

1 0 1 2i n d u str yr e p ort. c o m

I N S O

M A N Y

A NE W S C HE D ULE

W O R D S

O n e of t h e z o m bi e i d e a s t h at r ef u s e s t o di e i n t h e e n e r g y w o rl d i s t h at t h e gl o b al L N G m a r k et i s ‘ o v e r s u p pli e d.’ T hi s i d e a of e x c e s s L N G r e p e at e dl y r e a p p e a r e d i n 2 0 1 7 d e s pit e all t h e e vi d e n c e p oi nti n g t o t h e c o nt r a r y.

T E L L U RI A N I S P U S HI N G b a c k c o n str u cti o n of it s m ulti billi o n- d oll ar Drift w o o d L N G pr o d u cti o n a n d e x p ort t er mi n al s o ut h of L a k e C h arl e s f or at l e a st a y e ar, T h e A m eri c a n Pr e s s r e p ort s. T ell uri a n ori gi n all y pl a n n e d t o b e gi n c o n str u cti o n o n t h e t er mi n al t hi s y e ar a n d st art s hi p pi n g L N G t o gl o b al b u y er s b y 2 0 2 2. B ut aft er f e d er al r e g ul at or s r el e a s e d a s c h e d ul e f or t h e fi n al e n vir o n m e nt al r e vi e w of t h e pr oj e ct a n d a n a s s o ci at e d 9 6- mil e pi p eli n e, t h e c o m p a n y p u s h e d t h o s e d at e s b a c k t o 2 0 1 9 a n d 2 0 2 3, r e s p e cti v el y. T h e F e d er al E n er g y R e g ul at or y C o m mi s si o n will i s s u e t h e pr oj e ct’ s fi n al e n vir o n m e nt al i m p a ct st at e m e nt o n O ct. 1 2, o p e ni n g a 9 0- d a y wi n d o w f or ot h er f e d er al a g e n ci e s li k e t h e E n vir o n m e nt al Pr ot e cti o n A g e n c y t o i s s u e t h eir a p pr o v al s. T ell uri a n h a s c o ntr a ct e d wit h c o n str u cti o n c o ntr a ct or B e c ht el t o d e si g n a n d c o n str u ct Drift w o o d f or $ 1 5. 2 billi o n.

— d ail y-r e p ort. c o m

— Ar g u s M e di a Bl o g

$

S A S OL CE O S D R O P S O ME I N SI D E R K N O W L E D G E S A S O L L T D., t h e w orl d’ s l ar g e st m a k er of f u el fr o m c o al, will c o n si d er c ar vi n g o ut a s e p ar at e c o m p a n y fr o m it s e x p a n di n g c h e mi c al s b u si n e s s, w hi c h f e at ur e s t h e $ 1 1. 1 billi o n L a k e C h arl e s C h e mi c al Pr oj e ct a s a k e y c o m p o n e nt. T h e S o ut h Afri c a n c o m p a n y will f o c u s o n a p ot e nti al s plit aft er t h e L C C P i s c o m pl et e d i n l at e 2 0 1 9, c o- C E O s St e v e C or n ell a n d B o n g a ni N q w a b a b a t ol d Bl o o m b er g at t h e e n d of N o v e m b er.

S a s ol i s s hifti n g str at e g y a s it e x p e ct s l o w oil pri c e s t o p er si st, w hil e e x e c uti v e s s a y it s s p e ci alt y c h e mi c al s u s e d i n l u bri c a nt s, i n k s, m et al w or ki n g a n d c at al y st s e nj o y a c o m p etiti v e a d v a nt a g e. T h e i nt er vi e w c a m e a w e e k aft er t h e c o m p a n y a n n o u n c e d it w o n’t i n v e st i n m or e oil-r e fi ni n g c a p a cit y a n d c a n c el e d pl a n s t o b uil d a $ 1 4 billi o n g a s-t oli q ui d s f u el pr oj e ct at t h e L o ui si a n a sit e [s e e p a g e 3 6 ].

Ot h er n u g g et s fr o m t h e C E O c h at: • T h e L C C P will b o o st S a s ol’ s e ar ni n g b y at l e a st 2 0 % wit hi n fi v e y e ar s.

• T h e L a k e C h arl e s pr oj e ct will c o n v ert et h a n e t o et h yl e n e, w hi c h will b e c o n v ert e d i nt o p ol y et h yl e n e pl a sti c s a n d ot h er pr o d u ct s. P ol y et h yl e n e pr o d u cti o n at L a k e C h arl e s s h o ul d b e gi n l at e i n t h e t hir d q u art er of 2 0 1 8, wit h a n et h yl e n e pl a nt t o f oll o w i n t h e f o urt h q u art er a n d a s e c o n d p ol y et h yl e n e u nit st arti n g i n t h e fir st q u art er of 2 0 1 9.

• T h e c o m p a n y i s alr e a d y e v al u ati n g f urt h er s p e n di n g t o b o o st o ut p ut aft er t h e pr oj e ct’ s st art u p, a n d S a s ol’ s L o ui si a n a h u b will b e t h e f o c u s of i n v e st m e nt s f or d e c a d e s t o c o m e, C or n ell s ai d.

— Bl o o m b er g

I N S O

70 M A N Y

1 0 1 2i n d u str yr e p ort. c o m

S o ur c e: B B C

W O R D S

W e h a v e l a n d s e c ur e d f or a d diti o n al tr ai n s b e y o n d t h e fi v e [f o ur o p er ati n g, o n e u n d er c o n str u cti o n], s o w e h a v e a m pl e s p a c e t o d e v el o p, e v ol v e. O ur n e xt tr ai n [ si xt h] i s f ull y p er mitt e d, r e a d y t o i n v e st, w h e n w e’ v e m a d e t h e n e c e s s ar y s al e s t o m a k e FI D. S o it’ s d e fi nit el y g oi n g t o b e a fi v e -tr ai n f a cilit y; c o ul d b e a si x tr ai n, s e v e n -tr ai n, 1 0 -tr ai n ... w h o k n o w s ?

— A n dr e w W al k er, Vi c e Pr e si d e nt L N G Str at e g y, C h e ni er e E n er g y, o n S a bi n e P a s s

B U SI N E S S TI C K E R • B A S F pl a n s t o e x p a n d pr o d u cti o n of M DI at it s L o ui si a n a c h e mi c al s c o m pl e x i n G ei s m ar fr o m 3 0 0, 0 0 0 mt p y t o al m o st 6 0 0, 0 0 0 mt p y. T h e fir st p h a s e of t h e pr oj e ct i s a $ 1 5 0 milli o n i n v e st m e nt.

• M c D er m ott I nt er n ati o n al I n c. a n d C hi c a g o Bri d g e a n d Ir o n N V ( C B &I) ar e c o m bi ni n g t o cr e at e a n e w c o m p a n y t h at will off er a r a n g e of s er vi c e s fr o m e n gi n e eri n g t o pr o c ur e m e nt.

• Al b e m arl e i s s elli n g it s p ol y ol e fi n c at al y st s a n d c o m p o n e nt s b u si n e s s t o W. R. Gr a c e & C o. i n a c a s h d e al v al u e d at $ 4 1 6 milli o n.

• H & E E q ui p m e nt S er vi c e s I n c. i n B at o n R o u g e i s a c q uiri n g t h e n o nr e si d e nti al c o n str u cti o n e q ui p m e nt r e nt al c o m p a n y C o ntr a ct or s E q ui p m e nt C e nt er i n t h e D e n v er ar e a f or $ 1 2 2. 4 milli o n.

price of oil ( Brent crude) on Jan. 1 1, hitting $ 7 0 for the first ti me since Dece mber 2 0 1 4

• B a y o u Bri d g e L L C s el e ct e d E u ni c e, L o ui si a n a - b a s e d S u nl a n d C o n str u cti o n t o b uil d a p pr o x i m at el y 5 5 mil e s of t h e 1 6 3- mil e B a y o u Bri d g e Pi p eli n e e x p a n si o n pr oj e ct, fr o m St. M arti n s vill e P ari s h t o St. J a m e s P ari s h.

• S a u di Ar a m c o S h ell R e fi n er y h a s a w ar d e d C B &I a $ 9 5 milli o n- pl u s E P C m a n a g e m e nt c o ntr a ct f or t h e m o d er ni z ati o n a n d e x p a n si o n of it s r e fi n er y i n Al- J u b ail cit y, S a u di Ar a bi a.

• S e m pr a E n er g y a n d O n c or El e ctri c D eli v er y C o m p a n y L L C, t h e l ar g e st utilit y i n T e x a s, a n n o u n c e d t h e F E R C a ut h ori z e d S e m pr a E n er g y’ s a c q ui siti o n of E n er g y F ut ur e H ol di n g s C or p., t h e i n dir e ct o w n er of a p pr o xi m at el y 8 0 % of O n c or.

7. 1 %

Ye arly pr oj e ct e d m ar k et gr o wt h t hr o u g h 2 0 2 6 of t er mi n al a ut o m ati o n syst e ms S o ur c e: T a n k s & T er mi n al s

S o ur c e s: T h e A d v o c at e, Ri g z o n e, d ail y-r e p ort. c o m, R e ut er s

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

11

L A U N C H: I C Y MI I N S O

M A N Y

W O R D S

T h e e c o n o mi c a n d p oliti c al i m p a ct s of s o ari n g U. S. [ oil] o ut p ut ar e br e at ht a ki n g, c utti n g t h e n ati o n’ s oil i m p ort s b y a fift h o v er a d e c a d e, pr o vi di n g hi g h - p a yi n g j o b s i n r ur al c o m m u niti e s a n d l o w eri n g c o n s u m er pri c e s f or d o m e sti c g a s oli n e b y 3 7 p er c e nt fr o m a 2 0 0 8 p e a k.

45 %

D e c e m b er 2 0 1 7 ov er D e c e m b er 2 0 1 6 gr o wt h i n U. S. ri g c o u nt S o ur c e: S & P Gl o b al Pl att s

— R E U T E R S, o n t h e a p pr o a c hi n g mil e st o n e of 1 0 milli o n b arr el s p er d a y of U. S. o ut p ut —t o p pli n g a r e c or d s et i n 1 9 7 0

$ 2. 8 B m et h a n ol pr oj e ct f or Pl a q u e mi n e s m ov es a h e a d

S A F E T Y C O R N E R

P art n eri n g wit h c o ntr a ct or s o n y o ur sit e

“ C o ntr a ct or s p art n er wit h u s i n pr ot e cti n g o ur n ei g h b or s, all i n di vi d u al s w h o w or k o n sit e, a n d o ur sit e a s s et s. A s w e stri v e t o w ar d G o al Z er o wit h n o o n e g etti n g h urt e v er, w e ar e w or ki n g wit h c o ntr a ct or s t o eli mi n at e t ol er a n c e ri s k. ... At N or c o, w e e m p h a si z e t h e i m p ort a n c e of n ot t a ki n g a n y ki n d of ri s k w h at s o e v er, e v e n if it m e a n s st o p pi n g w or k t o e n s ur e s af et y. T h er e i s a t hr e e- st e p pr o c e s s N or c o f oll o w s w h e n w e c h o o s e o ur c o ntr a ct e d c o m p a ni e s. 1. R e vi e wi n g t h e d at a a n d s af et y l o g s of p ot e nti al c o ntr a ct or s. 2. O n b o ar di n g c o ntr a ct or s t o e m p h a si z e s af et y e x p e ct ati o n s at o ur sit e a n d a n s w er q u e sti o n s. 3. E n s uri n g t h at all c o ntr a ct or e m pl o y e e s ar e a p pr o pri at el y cr e d e nti al e d a n d ori e nt e d t o t h e S h ell N or c o w a y of w or ki n g. ”

A N D T H E WI N N E R I S: D o w e m pl o y e e s a n d c o ntr a ct p art n er s g at h er e d f or t h e c o m p a n y’ s B e st of t h e B e st C el e br ati o n J a n. 2 5.

D o w L o ui si a n a O p er ati o n s’ B e st of t h e B e st c er e m o n y a w ar d s a n o p er ati n g d e p art m e nt t h at a c hi e v e s e x c e pti o n al e n vir o n m e nt al, h e alt h & s af et y pr o gr e s s.

T h e 2 0 1 7 a w ar d w e nt t o Gl y c ol 1, w hi c h c o m pl et e d t h e y e ar i n ci d e nt fr e e wit h o ut st a n di n g s af et y p erf or m a n c e.

I G P M et h a n ol L L C w a s gr a nt e d a titl e V Air Q u alit y P er mit b y t h e L o ui si a n a D e p art m e nt of E n vir o n m e nt al Q u alit y f or it s G ulf C o a st M et h a n ol P ar k, l o c at e d i n Pl a q u e mi n e s P ari s h.

T h e $ 2. 8 billi o n pr oj e ct will c o n si st of f o ur i d e nti c al m et h a n ol pl a nt s or “tr ai n s, ” e a c h pr o d u ci n g 1. 8 milli o n t o n s p er y e ar of m et h a n ol fr o m n at ur al g a s, m a ki n g it t h e w orl d’ s l ar g e st p er mitt e d m et h a n ol pr o d u cti o n f a cilit y.

W h e n c o m pl et e, G ulf C o a st M et h a n ol will pr o d u c e 7. 2 milli o n t o n s of m et h a n ol p er y e ar. Pr o d u cti o n i s pl a n n e d t o b e gi n i n l at e 2 0 2 0. T h e f a cilit y will e m pl o y u p t o 1, 5 0 0 c o n str u cti o n w or k er s p er pl a nt, a n d o v er 3 2 5 w ell- p ai d p er m a n e nt o p er ati o n a n d m ai nt e n a n c e j o b s. “ W e h a v e i n v e st e d y e ar s of w or k a n d v er y si g ni fi c a nt c a pit al t o d e si g n a n d e n gi n e er w h at w e b eli e v e i s t h e l ar g e st, a n d at t h e s a m e ti m e, t h e l o w e st- e mi s si o n m et h a n ol pl a nt i n t h e w orl d, p er t o n of pr o d u cti o n, ” s ai d J a m e s S. L a m o ur e a u x, I G P’ s m a n a gi n g dir e ct or, i n a st at e m e nt.

H al d or T o p s ø e i s t h e t e c h n ol o g y pr o vi d er f or all f o ur pl a nt s, w hi c h will utili z e it s a ut ot h er m al r ef or mi n g ( A T R) t e c h n ol o g y a s w ell a s it s st at e- of-t h e- art c at al y st s.

— J err y M arti n

— S h ell N or c o C o ntr a ct or S af et y M a n a g er J err y Fl o o d, at a 2 0 1 7 N or c o C o m m u nit y A d vi s or y P a n el m e eti n g

12

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

1 0 1 2i n d u str yr e p ort. c o m

P O R T O F S O U T H L O UI SI A N A

T h e P ort of S o ut h L o ui si a n a s et a c ar g ov ol u m e r e c or d i n 2 0 1 7 wit h t ot al t o n n a g e o v er 3 0 7. 8 milli o n s h ort t o n s.

H er e’ s h o w t h e s hi p m e nt s br o k e d o w n b y c at e g or y.

N U M B E R S I N S O

M A N Y

W O R D S

R e all y, t hi s i s a gr e at p art n er s hi p wit h [t h e p ort] b e c a u s e it gi v e s u s t h e c a p a cit y t o k e e p gr o wi n g i n St. C h arl e s P ari s h. A n d w h e n w e’r e s u c c e s sf ul a n d gr o wi n g, t h at o b vi o u sl y b e n e fit s t h e p ari s h.

— K Y L E G R A H A M, Sit e L o gi siti c s L e a d er, D o w St. C h arl e s, o n t h e arr a n g e m e nt t o l e a s e l a n d fr o m t h e P ort of S o ut h L o ui si a n a f or a n e w r ail y ar d

2 0, 5 0 0

F o ur-y e ar j o b gr o wt h i n t h e L a k e C h arl es M S A S o ur c e: L o ui si a n a E c o n o mi c O utl o o k

886

%

2 0 1 7 gr o wt h i n oil ex p orts fr o m p orts i n t h e Gr a m er cy ar e a S o ur c e: F or b e s

M A KI N G F R A C KI N G B E T T E R SI X S M A L L U. S. oil a n d n at ur al g a s drilli n g pr oj e ct s will r e c ei v e a b o ut $ 3 0 milli o n i n f e d er al f u n di n g f or r e s e ar c h a n d d e v el o p m e nt, t h e E n er g y D e p art m e nt a n n o u n c e d i n e arl y J a n u ar y. T h e pr oj e ct s ar e i n w h at i s k n o w n a s u n c o n v e nti o n al s h al e d e v el o p m e nt. T h e y c urr e ntl y pr o d u c e l e s s t h a n 5 0, 0 0 0 b arr el s p er d a y e a c h. T h e s el e ct e d pr oj e ct s ar e at sit e s i n cl u di n g t h e T u s c al o o s a M ari n e S h al e i n L o uisi a n a a n d Mi s si s si p pi, e sti m at e d t o c o nt ai n 7 billi o n r e c o v er a bl e b arr el s of li g ht, s w e et cr u d e oil, a n d t h e H ur o n S h al e i n A p p al a c hi a.

T h e pr oj e ct s will i n cr e a s e u n d er st a n di n g of t h e b e h a vi or of oil a n d g a s r e s er v oir s, a d v a n c e t h e c o m pl eti o n of w ell s, a n d i m pr o v e drilli n g t e c h n ol o gi e s at off s h or e o p er ati o n s, t h e D O E s ai d.

— R e ut er s

1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

13

L A U N C H: T H E BI G PI C T U R E

W O R KI N G T O GET HER

14

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

1 0 1 2i n d u str yr e p ort. c o m

A BI G P A R T N E R S HI P I n N o v e m b er, t h e s e c o n d of fi v e h e a v y-lift pr oje ct c ar g o pi e c e s m a n uf a ct ur e d i n L o ui si a n a w a s e x p ort e d t hr o u g h t h e P ort of N e w Orl e a n s, bri n gi n g t o g et h er t hr e e N e w Orl e a n s- b a s e d e ntiti e s o n a n i nt er n ati o n al s u p pl y c h ai n s ol uti o n. P ort N O L A i s p art n eri n g wit h I nt er m ari n e, a N e w Orl e a n s- b a s e d s hi p pi n g c o m p a n y, a n d C h et M orri s o n C o ntr a ct or s, a H ar v e y- b a s e d l a n d a n d m ari n e c o n str u cti o n c o m p a n y, t o e x p ort fi v e s hi p m e nt s of l o c all y m a n uf a ct ur e d oil pl atf or m c o m p o n e nt s t o Tri ni d a d t hr o u g h 2 0 1 9.

T H E Y S AI D I T “ T hi s p art n er s hi p b o d e s w ell f or t h e P ort’ s di v er s e c a p a biliti e s a n d c arri er o pti o n s, a s w ell a s f or o ur h o m e gr o w n m a n uf a ct ur er s’ a bilit y t o c o m p et e gl o b all y, ” s a y s Br a n d y C hri sti a n, P ort of N e w Orl e a n s pr e si d e nt a n d C E O. “ W or ki n g h a n d i n h a n d wit h o ur l o c al r e s o ur ce s, w e w er e a bl e t o i d e ntif y c o st s a vi n g s f or t h e tr a n s p ort of pr ef a bri c at e d m o d ul e s fr o m o ur H ar v e y f a cilit y t o t h e pr oj e ct l o c ati o n i n t h e C ari b b e a n, ” s a y s Br e nt D e s s ell e, C h et M orris o n C o ntr a ct or s pr oj e ct m a n a g er.

P O RT N OL A

F R O M B A R G E T O S HI P T h e fi r st pi e c e arri v e d at P ort N O L A b y b ar g e at t h e P ol a n d A v e n u e w h arf a n d w a s di s c h ar g e d dir e ctl y fr o m b ar g e t o t h e I nt er m ari n e I n d u stri al E d g e b y t er mi n al o p er at or C o a st al C ar g o i n A u g u st. T h e s e co n d pi e c e, t h e t o p si d e d e c k b uilt b y C h et M orri s o n C o ntr a ct or s, pi ct ur e d h er e, arri v e d b y b ar g e at t h e H ar m o n y Str e et w h arf a n d w a s al s o di s c h ar g e d dir e ctl y fr o m b ar g e t o t h e I nt er m ari n e I n d u stri al E d g e b y C o a st al C ar g o.

W H A T’ S N E X T B ot h oil pl atf or m c o m p o n e nt s arri v e d i n Tri ni d a d a n d w er e s u c c e s sf ull y di s c h ar g e d.

T h e n e xt pr oj e ct i n t h e c oll a b or ati o n will b e gi n l o a di n g i n M ar c h 2 0 1 8 wit h t h e s a m e t w o c o m p o n e nt s.

1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

15

L A U N C H: P E O P L E

W O M E N i n c h ar g e I N J A N U A R Y, Gl ori a M o nc a d a b ec a me t he first- e ver fe m ale m a n a ger of E x x o n M o bil’s re fi ner y. B ut t he firsts e n de d t here, as w o me n are n o l o n ger a rarit y a m o n g t he c o m p a n y’s t o p ra n ks i n L o uisi a n a. I n f act, f o ur of E x x o nM o bil’s five m aj or f acilities c urre ntl y are m a n a ge d b y w o me n. fi at f act is n ot l ost o n M o nc a d a: “I’ m kee nl y a p preci ative of all w h o h ave w or ke d t o m ove t he i n d ustr y f or w ar d,” s he s a ys. Here’s a l o o k at t he f o ur w o me n at t he t o p.

G L O RI A M O N C A D A

J E N NI F E R D U N P H Y

A p p oi nt m e nt:

A p p oi nt m e nt:

M a n a g er, B at o n R o u g e R e fi n er y J a n u ar y 2 0 1 8

M O N C A D A N O W O V E R S E E S the n ati o n’ s f o urt h l ar g e st r e fi n er y, wit h a w or kf or c e of m or e t h a n 3, 7 0 0 e m pl o y e e s a n d c o ntr a ct or s. A n ati v e of P hil a d el p hi a, s h e r et ur n s t o t h e B at o n R o u g e R e fi n er y aft er b e gi n ni n g h er c ar e er t h er e i n 1 9 9 2.

Al o n g t h e w a y, s h e s er v e d i n l e a d er s hi p r ol e s at E x x o n sit e s i n T e x a s a n d C alif or ni a. I n 2 0 1 0, M o n c a d a w a s n a m e d i n v e st or r el ati o n s a d vi s or a n d tr a n sf err e d t o t h e c o m p a n y’ s c or p or at e h e a d q u art er s i n D all a s b ef or e b e c o mi n g a di vi si o n m a n a g er of it s Si n g a p or e r e fi n er y. F or t h e p a st t w o y e ar s, s h e’ s b e e n a cr u d e o pti mi z ati o n m a n a g er i n T e x a s.

WI T H A B A C H E L O R’ S d e gr e e i n c h e mi c al e n gi n e eri n g fr e s hl y i n h a n d, D u n p h y j oi n e d E x x o n M o bil i n 1 9 9 3 at t h e B e a u m o nt P ol y et h yl e n e Pl a nt. U ntil 2 0 0 6, s h e cli m b e d t h e r a n k s at m ulti pl e l o c ati o n s i n t h e p ol y m er s, b a si c c h e mi c al s a n d i nt er m e di at e s b u si n e s s e s. S h e’ s n o n e w c o m er t o pl a nt m a n a g e m e nt: S h e m a n a g e d t h e E di s o n S y nt h eti c s Pl a nt i n N e w J er s e y b e gi n ni n g i n 2 0 0 8. S h e r et ur n e d t o B a yt o w n i n 2 0 1 1 a s t h e g e n er al m a n a g er of t e c h n ol o g y li c e n si n g a n d t hr e e y e ar s l at er b e c a m e t h e Gl o b al O x o M ar k eti n g M a n a g er.

A N G EL A Z E RI N G U E

A p p oi nt m e nt:

A p p oi nt m e nt:

J a n u ar y 2 0 1 8

G R E E N W O O D W A S B O R N j u st o ut si d e of N e w Orl e a n s b ut m o v e d t o H o u st o n at t h e a g e of 1 0. H er l e a d er s hi p s kill s e m er g e d i n hi g h s c h o ol, w h er e s h e w a s el e ct e d st u d e nt cl a s s pr e si d e nt a n d n a m e d b e st f e m al e at hl et e w hil e gr a d u ati n g wit h h o n or s. W hil e p ur s ui n g a n el e ctri c al e n gi n e eri n g d e gr e e at Pr airi e Vi e w A & M U ni v er sit y, s h e w a s el e ct e d t e a m c a pt ai n of t h e b a s k et b all t e a m a n d r e c o g ni z e d f or h a vi n g t h e hi g h e st G P A of a n y c oll e g e at hl et e. H er c ar e er wit h E x x o n M o bil st art e d i n 2 0 0 1 at t h e B a yt o w n R e fi n er y w hil e al s o pl a yi n g pr of e s si o n al w o m e n’ s f o ot b all, l e a di n g h er t e a m t o t w o W orl d C h a m pi o n s hi p s a s t h e st arti n g r u n ni n g b a c k. S h e’ s b e e n i n B at o n R o u g e f or t h e l a st t w o a n d a h alf y e ar s, a n d n o w o v er s e e s t h e B at o n R o u g e, M e m p hi s a n d N a s h vill e t er mi n al.

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

F e br u ar y 2 0 1 6

S H O N T A’ G R E E N W O O D U S Mi d- Atl a nti c/ S o ut h e a st Ar e a M a n a g er, E x x o n M o bil Pi p eli n e C o.

16

Pl a nt M a n a g er, B at o n R o u g e Pl a sti c s Pl a nt

Pl a nt M a n a g er, B at o n R o u g e P ol y ol e fi n s Pl a nt

S e pt e m b er 2 0 1 0

Z E RI N G U E’ S C A R E E R WI T H E x x o n M o bil h a s b e e n s p e nt i n t h e m a n uf a ct uri n g ar m of t h e c o m p a n y, e ntir el y i n it s B at o n R o u g e f a ciliti e s.

S h e i s a L o ui si a n a n ati v e, h a vi n g gr o w n u p i n D e str e h a n a n d e ar n e d h er d e gr e e fr o m T ul a n e U ni v er sit y. S h e b e g a n w or k wit h E x x o n i n p ol y et h yl e n e m a n uf a ct uri n g at t h e B at o n R o u g e Pl a sti c s Pl a nt a s a s u m m er i nt er n i n 1 9 8 7. S h e pr o v e d h er c h o p s i n pr o d u ct d e v el o p m e nt, c u st o m er s er vi c e a n d o p er ati o n s m a n a g e m e nt b ef or e m o vi n g t o E x x o n M o bil’ s B at o n R o u g e C h e mi c al Pl a nt i n 2 0 0 0 — fir st a s t h e H al o b ut yl d e p art m e nt m a n a g er a n d t h e n P ol y m er s O p er ati o n s m a n a g er.

S h e g ot i n v ol v e d wit h t h e c o m p a n y’ s r e fi ni n g o p er ati o n s w h e n s h e l e d a t e a m t o c o m bi n e t h e m ai nt e n a n c e org a ni z ati o n s a cr o s s t h e c h e mi c al pl a nt a n d r e fi ni n g c o m pl e x. I n 2 0 0 6, s h e b e g a n m a n a gi n g t h e B at o n R o u g e Ar e a E n gi n e eri n g S er vi c e s Di vi si o n b ef or e st e p pi n g u p a s pl a nt m a n a g er.

1 0 1 2i n d u str yr e p ort. c o m

E x e c uti v e Pr o fil e:

R e g gi e D u p r é

W h er e di d y o ur c ar e er st art, a n d h o w di d y o u g et t o w h er e y o u ar e t o d a y ?

I w as t he presi de nt of a s m all re fi ni n g c o m p a n y, C a n al Re fi ni n g.

It w as a c h ai n of ser vice st ati o ns m y d a d b uilt t o sell g as a n d diesel.

I gre w u p p ai nti n g t h ose st ores a n d w or ki n g. I e n de d u p b u yi n g a s m all c o nve nie nce st ore w he n I w as 2 2 ye ars ol d d uri n g m y l ast se mester of m y c olle ge c areer. Th at’s h o w I g ot i nt o b usi ness. We ne ver di d h ave tr uc ks, b ut i n t he l ate 1 9 7 0s, ser vice fr o m tr uc ki n g c o m p a nies w as getti n g b a d, s o we deci de d t o ac q uire a s m all g as deliver y tra ns p ort c o m p a n y.

W h at i s y o ur s e cr et t o l e a d er s hi p a n d a d v a n ci n g i n y o ur fi el d ?

I d o n’t t hi n k it’s a secret. I j ust t hi n k t h at perse vera nce is necess ar y

1 0 1 2i n d u str yr e p ort. c o m

P O SI TI O N

C E O & Pr e si d e nt C O MPA NY

D u p r é L o gi sti c s

A GE

66

H O MET O W N

O p el o u s a s E D U C A TI O N

B a c h el o r’ s i n B u si n e s s M a n a g e m e nt, U L L af a y ett e D o ct o r of M e di ci n e, L S U S c h o ol of M e di ci n e i n N e w O rl e a n s

t o b e s uccessf ul i n a n y fiel d. Yo u’re g oi n g t o h ave c h alle n ges, a n d t here’s g oi n g t o b e t o u g h ti mes a n d if y o u h ave t he a bilit y t o p erse vere —it c a n c o me fr o m a s p o use or p e o ple hel pi n g y o u — b ut t here nee ds t o b e a cert ai n a m o u nt t o m a ke it t hr o u g h t o u g h ti mes.

W h at i s o n e t hi n g a b o ut y o ur j o b p e o pl e d o n’t e x p e ct or d o n’t k n o w a n d h e ar a b o ut ?

fie hi g her u p y o u get i n a n or g a ni z ati o n w he n it c o mes t o le a ders hi p, t he m ore res p o nsi bilit y y o u h ave f or m ore p e o ple. It’s n ot a b o ut p o wer a n d presti ge as m uc h as it is a b o ut a se nse of res p o nsi bilit y f or d oi n g t he ri g ht t hi n g f or y o ur c ust o mers, te a m me m b ers a n d c o m p a n y. Res p o nsi bilit y c a n get t o b e a b ur de n s o meti mes.

W h at ar e y o ur n e xt g o al s b ot h pr of e s si o n all y a n d p er s o n all y ?

I’ m 6 6, s o de vel o pi n g o ur le a ders hi p pi p eli ne is b ec o mi n g m ore critic al. We nee d t o m a ke s ure we’re b uil di n g a s uccessi o n pl a n f or t he ne xt ge nerati o n a n d t he ge nerati o n after t h at. W he n b uil di n g a c o m p a n y, y o u d o n’t necess aril y t hi n k a b o ut t he ne xt ge nerati o n, b ut de vel o pi n g t h at t ale nt is w h at I’ m re all y e n g a ge d i n n o w.

T E R RI F E N S E L

L

a u nc hi n g wit h j ust t w o tr uc ks h a uli n g g as oli ne a n d t he i de a t h at tr uc ki n g ser vice c o ul d b e i m pr ove d, Re g gie D u pré h as b uilt D u pré L o gistics i nt o o ne of t he t o p 1 0 0 priv atel y hel d c o m p a nies i n Ac a di a n a.

The O pel o us as n ative gre w u p w or ki n g f or his d a d’s c h ai n of ser vice st ati o ns. He b o u g ht his o w n self-service c o nve nie nce st ore d uri n g his l ast se mester of c olle ge a n d f o u n de d D u pré L o gistics a ye ar l ater i n 1 9 8 0.

His d a d ser ve d as his me nt or a n d t a u g ht hi m h o w t o wit hst a n d t he c yclic al n at ure of t he b usi ness. “ B e h u m ble w he n it’s g o o d a n d p ositive w he n it’s b a d” is D u pré’s m ott o. F or t he m ost p art, he’s b ee n l uc k y t o gr o w a s m all tra ns p ort c o m p a n y i nt o a n i n d ustr y le a der.

As ne w tec h n ol o g y a n d w or k f orce c h alle n ges i m p act t he tr uc ki n g i n d ustr y, D u pré is n o w c o ncer ne d wit h b uil di n g a s uccessi o n pl a n f or t he ne xt ge nerati o n of his c o m p a n y.

At a ge 6 6, he h o pes t o retire i n t he f ut ure a n d h ave m ore ti me t o travel t he w orl d wit h his wife a n d h u nt a n d fis h wit h his c hil dre n.

W h at ar e s o m e of t h e bi g g e st c h all e n g e s t h at c o m e wit h w or ki n g i n y o ur i n d u str y ?

Ri g ht n o w: p e o ple. Pr ofessi o n al tr uc k drivers are i n hi g h de m a n d.

We’re gr o wi n g o ur b usi ness a n d nee d t o st a ff o ur p ositi o ns. M ai n te n a nce tec h nici a ns are als o ver y sc arce. Getti n g p e o ple w h o re all y w a nt t o n ot j ust c o me here a n d s p e n d 4 0 or 5 0 h o urs w or ki n g, b ut deci de t he y’re g oi n g t o b e e n g a ge d a n d cre ate v al ue a n d m a ke t his t heir h o me. A le a der’s j o b is t o hel p cre ate t h at e n g a ge me nt f or p e o ple s o t h at t he y n ot o nl y give y o u t heir ti me, b ut give y o u t heir he art.

W h at i s a n it e m o n y o ur b u c k et li st ?

a ble t o d o a l ot of t he t hi n gs. I w a nt t o g o b ac k a n d d o a fe w m ore river cr uises i n E ur o pe, a n d we h ave n’t bee n t o t he Far E ast.

If y o u c o ul d h a v e a n y j o b ot h er t h a n y o ur o w n, w h at w o ul d it be?

I’ m d oi n g w h at I w a nt t o d o. I’ve bee n l uc k y. I c a n’t t hi n k of w h at else I’ d w a nt t o be d oi n g.

W h at i s y o ur g o -t o s p ot i n L af a y ett e ?

C h arle y G’s. M y f av orite dis h is us u all y t he fres h fis h of t he d a y, b ut t heir d uc k a n d a n d o uille g u m b o is t o die f or.

I’ve b ee n f ort u n ate e n o u g h t o b e 1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

17

L A U N C H: I N T E L LI G E N C E

T h e l o gi sti c s p u z zl e A pr o d u cti o n s ur g e i s o n it s w a y t o t h e G ulf C o a st .

I s t h e s u p pl y c h ai n r e a d y f or it ?

T H E RI P P L E E F F E C T S of t he s h ale b o o m will li kel y b e felt f ar d o w nstre a m. I n Dece m ber, p a nelists at t he Petr oc he mic al S u p pl y C h ai n & L o gistics C o nfere nce i n H o ust o n c o nve ne d t o disc uss w het her t he s u p pl y c h ai n w as re a d y f or t he i m p e n di n g s ur ge i n pl astics, li q ue fie d n at ural g as a n d ot her petr ole u m- b ase d pr o d ucti o n al o n g t he G ulf C o ast.

Partici p a nts were p artic ul arl y c o ncer ne d a b o ut t he p ossi bilit y of tra ns p ort ati o n b ottle nec ks. “ fie s h ale g as p he n o me n o n h as fli p pe d t he sce n ari o u psi de d o w n,” s a ys Ric k Liss a, se ni or direct or of l o gistics m a n a ge me nt f or F or m os a Pl astics C or p. “ Wit h t he ne w c a p acit y c o mi n g o n li ne, we will pr o b a bl y g o fr o m a n i m p orter t o a n e x p ort er of b ot h pl astics a n d L N G. We nee d t o e v al u ate t he i nfrastr uct ure a n d h o w we’re g oi n g t o m ove pr o d uct all over t he w orl d.”

Pa nelists stresse d t he i m p ort a nce of i m pr ove d o w ner-s u p plier c oll a b orati o n at all le vels of t he p etr oc he mic al s u p pl y c h ai n — b ut p artic ul arl y i n re g ar d t o tra ns p ort ati o n.

“I t hi n k c oll a b orati o n is i m p ort a nt t o gr o wt h,” s a ys p a nel me m b er Bill We hrle, s u p pl y c h ai n direct or at B A S F. “I’ve see n a 18

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n u m b er of s hi p p ers i n t he p ast t h at j u m p e d i n a n d o ut as a l o w- c ost pr ovi der. Yo u’ve g ot t o p art ner wit h t he m l o n g-ter m, de vel o p strate gic rel ati o ns hi ps a n d gr o w wit h t he m. I t hi n k t h at’s o ne of t he ke ys t o b ei n g s uccessf ul.”

It’s “q u alit y over q u a ntit y,” he a d ds. “ We c a n’t j ust c o nti n ue m ovi n g f or w ar d wit h t he l o w- c ost pr ovi der a n d c o nti n ue t o s q uee z e tra ns p ort ati o n pr ovi ders. We’re ki n d of at a bre a ki n g p oi nt ri g ht n o w w here we’ve g ot t o c oll a b orativel y w or k wit h t he m a n d l o ose n u p t he p urse stri n gs a little bit.”

Pa nelists s a y t he s heer si z e a n d sc ale of pr ojects al o n g t he G ulf C o ast will li kel y drive nee de d e fficie ncies i n all tra ns p or t ati o n m o des, w het her it b e tr uc k, rail or frei g ht. Alre a d y, t he y’ve n otice d a v ariet y of c ost- c utti n g me as ures a n d ne w di giti z ati o n tec h n ol o gies wit h t he g o al of i m pr ovi n g l o gistics. “ Fr o m a s u p pl y c h ai n p ers p ective, it’s a b o ut o pti mi z ati o n,” Liss a s a ys. “It’s a b o ut m a ki n g s ure t h at y o u’re drivi n g d u plic ati o n a n d e xcess c ost o ut of y o ur s u p pl y c h ai n.

There’s al w a ys a w a y t o i m pr ove pr o d uctivi t y a n d d o t hi n gs a little bit b etter.”

Di giti z ati o n a n d v ari o us G P S- b ase d tec h n ol o gies are a m o n g t he m ore pr o misi n g rece nt de vel o p me nts. S o me o w ners are w or ki n g wit h c ust o mers t o cre ate direct li n ks b et wee n c o m p uter s yste ms, w here d at a is n o w q uic kl y tra nsferre d bet wee n c o m p a nies. “I n o ur B a yt o w n l oc ati o n, we’ve st arte d a pil ot pr o gra m w here t he driver d o es n’t e ve n nee d t o get o ut of his tr uc k,” s a ys p a nelist Fra n k Vi n ger h oets, presi de nt of K at o e n Natie. “ He p uts i n his d at a a n d gets a b arc o de a n d e nters o ur f acilit y. A n d i n t he w are h o use we are p a perless. The pr o d uct is u nl o a de d or l o a de d m uc h f aster, a n d t he n t he driver g oes b ac k o ut.”

Ot her m o des of tra ns p ort ati o n are als o m a ki n g tec h n ol o gic al he a d w a y. Wit h o ffices i n I n di a a n d Ger m a n y, c o nfere nce s p o ns or Oce a n I nsi g hts pr ovi des d at a a n d i ntelli ge nce f or t he l o gistics i n d ustr y t o i m pr ove visi bilit y a n d tra ns p are nc y i n oce a n frei g ht.

Usi n g s atellite vessel trac ki n g, it c o nst a ntl y kee ps a n e ye o n t he e ntire w orl d’s merc h a nt fleet. As s uc h, it m o nit ors f or c h a n ges i n tra ffic p atter ns a n d c o m m u nic ates del a y w ar ni n gs bef ore t hi n gs g o wr o n g.

—SA M BAR NES

1 0 1 2i n d u str yr e p ort. c o m

L A U N C H:

N E T W O R KI N G

Aft e r H o u r s

C O U RTE S Y B R C C

C O U R T E S Y A S S O CI A T E D B UI L D E R S & C O N T R A C T O R S P E LI C A N C H A P T E R

I n d u str y e v e nt s a cr o s s t h e c orri d or

BI G H O N O R S: Fr o m l eft, A n dr e w L o p e z of C aj u n I n d u stri e s, B E A M Cl u b A w ar d wi n n er W e sl e y Littl et o n of T h e Br o c k Gr o u p a n d D a vi d H el v e st o n a n d A n n a Z e b e a u of t h e A B C P eli c a n C h a pt er.

G R A D U A TI O N D A Y: Gr a d u at e D er e k G ui dr y, c e nt er, wit h B at o n R o u g e C o m m u nit y C oll e g e C h a n c ell or L ari s s a Littl et o n- St ei b a n d t h e n- E x x o n M o bil r e fi n er y m a n a g er M ar k N ort h c utt. At ri g ht: gr a d u at e s D e v ei n L e wi s a n d J al y n Br o w n.

A s s o ci at e d B uil d er s a n d C o ntr a ct or s P eli c a n C h a pt er E x c ell e n c e i n C o n str u cti o n A w ar d s

T h e N ort h B at o n R o u g e I n d u stri al Tr ai ni n g I niti ati v e gr a d u ati o n

I N D E C E M B E R, t h e or g a ni z ati o n h o n or e d 2 4 pr oj e ct s i n 1 0 c at e g ori e s r a n gi n g fr o m c o m m er ci al b uil di n g s t o i n d u stri al m e g a pr oj e ct s at it s a n n u al E x c ell e n c e i n C o n str u cti o n A w ar d s at t h e B at o n R o u g e Hilt o n. Bi g wi n n er s of t h e ni g ht w er e C aj u n I n d u stri e s wit h f o ur a w ar d s, a n d Ar k el C o n str u ct or s a n d B arri er e C o n str u cti o n C o. wit h t hr e e a w ar d s a pi e c e.

N B RI T TI G R A D U A T E D I T S t hir d cl a s s of el e ctri c al, pi p e fitti n g a n d w el di n g st u d e nt s wit h N ati o n al C e nt er f or C o n str u cti o n E d u c ati o n a n d R e s e ar c h C or e, L e v el I, a n d L e v el II c erti fi c ati o n s. Gr a d u at e s a n d t h eir f a mili e s c el e br at e d at t h e B at o n R o u g e C o m m u nit y C oll e g e A c a di a n C a m p u s.

L et 1 0/ 1 2 I n d u str y R e p ort i n cl u d e y o ur i n d u str y e v e nt i n Aft er H o ur s.

S e n d d et ail s a n d hi g h-r e s ol uti o n p h ot o s t o e dit or @ 1 0 1 2i n d u str yr e p ort. c o m.

1 0 1 2i n d u str yr e p ort. c o m

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19

C OVER ST ORY

20

Y O U N G LE A DE RS

t o w at c h

M e et s o ut h L o ui si a n a’ s ri si n g i n d u str y t al e nt — all of t h e m u n d er t h e a g e of 4 0.

BY S A M B A R NES

T h er e i s t al k of “t h e gr e at cr e w c h a n g e ” i n t h e oil a n d g a s b u si n e s s, a n d m a n y c o m p a ni e s t hr o u g h o ut t h e p etr o c h e mi c al s e ct or a n d ot h er h e a v y i n d u stri e s str u g gl e t o fill t h eir w or kf or c e s u p pl y li n e s wit h e n o u g h y o u n g e n gi n e er s, pr o c e s s t e c h n ol o gi st s a n d m a n a g er s. Still, w h e n w e a s k e d i n d u str y l e a d er s t hr o u g h o ut s o ut h L o ui si a n a t o t ell u s a b o ut t h e y o u n g t al e nt t h at i s t a ki n g o n l e a d er s hi p r ol e s, t h er e w a s n o s h ort a g e of r e c o m m e n d ati o n s. H er e’ s a l o o k at s o m e of t h e b e st of t h e b e st u n d er t h e a g e of 4 0.

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Ni n a

K yl e

Ol e fi n s C o or di n ati o n S u p er vi s or, E x x o n M o bil C h e mi c al, B at o n R o u g e J ust se ve n ye ars i nt o her c areer, Ni n a B ass’ acc o m plis h me nts are alre a d y i m pressive. S he h as b ee n a M a n uf act uri n g E xcelle nce A w ar d wi n ner, Gl o b al O p erati o ns E xcel le nce a w ar d wi n ner, me m b er of t he Wo me n’s I n d ustr y Net w or k, presi de nt of E x x o n M o bil’s Ne w E m pl o yee A dvis or y C o m mittee a n d tre as urer of t he E x x o n M o bil Ne wc o mers’ Cl u b. “ Thr o u g h U nite d Wa y a n d WI N, I’ve s u p p orte d t he c o m m u nit y a n d p artici p ate d i n v ol u nteeri n g o p p or t u nities,” B ass s a ys. “I als o hel p e d pl a n t he‘I ntr o d uce a Girl t o E n gi neeri n g Da y’ s p o ns ore d b y WI N, a n d v ol u nteere d at t he f o o d b a n k, I RI S D o mestic Vi ole nce Ce nter a n d ot hers w hile at E x x o n M o bil.”

D uri n g t he Fl o o d of 2 0 1 6, s he pl a ye d a cr uci al r ole o n a n E x x o n M o bil te a m cre ate d t o s ust ai n st a ble o p erati o ns f or t he re fi ner y a n d c he mic al pl a nts. S he h as als o pl a n ne d e ve nts t o hel p ne w e n gi neers u n derst a n d c areer p at hs at E x x o n M o bil. B ass h as a b ac hel or’s de gree i n c he mic al e n gi neeri n g fr o m Worcester P ol ytec h nic I nstit ute.

P art n er, H a n ni s T. B o ur g e oi s L L C, B at o n R o u g e As a p art ner at H a n nis T. B o ur ge ois L L C i n B at o n R o u ge, Kyle C o o k h ol ds a v ariet y of me m ber s hi p a n d le a ders hi p p ositi o ns wit h or g a ni z ati o ns i n t he c o nstr ucti o n a n d i n d ustri al m ar kets, s uc h as As s oci ate d B uil ders a n d C o ntract ors, Ass oci ate d Ge neral C o ntract ors, t he C o nstr ucti o n Fi n a nci al M a n a ge me nt Ass oci ati o n a n d t he A meric a n C o u ncil of E n gi neeri n g C o m p a nies.

Rece ntl y, C o o k briefe d t he S o ut h west M ulti ple E m pl o yer Pl a n Re vie w, t hr o u g h A G C, o n c o m m o n 4 0 1( k) pitf alls a n d prese nte d a “ C o nstr ucti o n I n d ustr y Acc o u nti n g U p d ate” t o t he me m bers hi p of A C E C. At t he fir m, C o o k strives t o de vel o p t he ne xt ge nerati o n of le a ders t hr o u g h H T B’s Yo Pre a u x y o u n g pr ofessi o n als gr o u p. Yo Pre a u x f oc uses o n de vel o pi n g as pirati o n al g o als, pr ofessi o n al de vel o p me nt, c o m m u nit y ser vice, net w or ki n g a n d b usi ness de vel o p me nt. C o o k h as a b ac hel or’s de gree i n acc o u nti n g fr o m L o uisi a n a St ate U niversit y a n d a m aster’s de gree i n b usi ness fr o m S o ut he aster n L o uisi a n a U niversit y.

B A S S, 2 8

C O O K ,3 4

1 0 1 2i n d u str yr e p ort. c o m

C h ri st e n

C A M P B E L L ,3 2

1 0 1 2i n d u str yr e p ort. c o m

D O N K A D AI R

Pr o c ur e m e nt H u b M a n a g er, B A S F, G ei s m ar fie p at h C hriste n C a m p b ell t o o k t o b ec o me B A S F’s pr oc ure me nt h u b m a n a ger w as a bit u n ort h o d o x. After all, s he h a d ori gi n all y pl a n ne d t o practice b usi ness l a w o ne d a y, u ntil a c o nvers ati o n wit h her fres h m a n a dviser at L S U se nt her i n a n e ntirel y di ffere nt directi o n. “ He s ai d,‘ Yo u re all y s h o ul d n’t m aj or i n b usiness l a w, bec a use if l a w sc h o ol d o es n’t p a n o ut it’s g oi n g be h ar d t o fi n d a j o b.’ He c h alle n ge d me t o tr y s o met hi n g m ore di ffic ult, s uc h as bi ol o g y. As a res ult, I b ec a me o ne of t he fe w i n m y gra d u ati n g cl ass w h o h a d n o desire t o g o t o me dic al sc h o ol or de nt al sc h o ol.”

W hile i n c olle ge, s he crafte d her le a ders hi p s kills as t he st u de nt b o d y vice presi de nt a n d presi de nt of her s or orit y. S he als o p artici p ate d i n e ver y or g a ni z ati o n i m a gi n a ble. “It t a u g ht me t h at b uil di n g rel ati o ns hi ps a n d de vel o pi n g le a ders hi p p ote nti al are ke ys t o s uccess.”

C a m p bell w o ul d e ve nt u all y e ar n her m aster’s de gree i n b usi ness a d mi nistrati o n w hile w or k i n g f or her first e m pl o yer, a n e nvir o n me nt al e n gi neeri n g c o ns ult a nt. W hile at t he fir m, s he m a de a n ot her disc over y —s he h a d a k n ac k f or pr ocess s afet y m a n a ge me nt a n d ris k m a n a ge me nt.

Th at pr ove d t o be a n at ural se g ue i nt o her first j o b at B A S F as pr ocess s afet y m a n a ge me nt /ris k m a n a ge me nt s p eci alist. B y t he ti me s he left t h at p ositi o n, s he’ d b ec o me B A S F’s N ort h A meric a n re g ul at or y e x p ert, e x p a n d i n g her r ole t o i ncl u de all re g ul ate d sites a n d be gi n ni n g a c o m m u nit y of practice t o s h are k n o wle d ge a b o ut pr ocess s afet y m a n a ge me nt re g ul ati o ns a n d best practices. S he w as als o h o n ore d b y t he M a n uf act uri n g I nstit ute as a S T E P A he a d E mer gi n g L e a der i n t he fiel d of s afet y a n d e nvir o n me nt al c o m pli a nce.

The n, after acc u m ul ati n g 1 0 ye ars i n pr ocess s afet y e x perie nce, C a m p b ell deci de d t o g o i n a n e ntirel y di ffere nt directi o n b y t a ki n g t he r ole of pr oc ure me nt h u b m a n a ger i n A u g ust 2 0 1 7. It h as t ur ne d i nt o o ne of t he b est decisi o ns of her c areer. J ust d a ys after t a ki n g t he ne w p osi ti o n, s he bec a me t he m ai n pr oc ure me nt h u b m a n a ger t o assist a n d s u p p ort fl o o d victi ms a n d e m pl o yees i m p acte d b y H urric a ne H ar ve y i n Te x as. “It w as a n i nteresti n g sce n ari o b ec a use we h a d g o ne t hr o u g h t he s a me e x act t hi n g here a ye ar e arlier,” s he s a ys.

C a m p bell als o de m o nstrates a p assi o n f or v ol u nteeri n g, as s he is i nv olve d i n l oc al a n d gl o b al e ff orts t o hel p ot hers i n nee d a n d is a n active le a der i n her c h urc h. S he cre dits B A S F f or pr ovi di n g her wit h o p p ort u nities f or gr o wt h. “ Thi s is a c o m p a n y t h at e n a bles me t o g o o utsi de t he sc o pe of m y r ole a n d b uil d t h at i nt o s o met hi n g bi g ger.”

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M ar k

D A N O S, 3 9

“ W e ar e o nl y as g o o d as t h e p e o pl e i n t h e fi el d.”

D O N K A D AI R

— M ar k D a n o s, D a n o s

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O w n er E x e c uti v e, D a n o s, Gr a y M ar k Da n os literall y gre w u p i n t he f a mil y b usi ness, s o m uc h s o t h at “f a mil y” a n d “ b usi ness” see me d s y n o n y m o us a n d i nterc h a n ge a ble t o hi m. Per h a ps it w as f or t h at re as o n t h at his f at her e nc o ura ge d hi m a n d his t w o br ot hers t o get a n e d uc ati o n a n d p urs ue pr ofessi o n al de vel o p me nt o utsi de t he c o m p a n y.

He desire d f or his s o ns t o h ave a bi g ger vie w of t he w orl d t h a n c o ul d be f o u n d i n Gra y, L o uisi a n a. It w o ul d h ave t o be t heir c h oice w het her t o j oi n t he f a mil y b usi ness o ne d a y.

As f or M ar k, he p urs ue d a deci de dl y “gl o b al e x perie nce” t h at l aste d m ore t h a n a dec a de. After e ar ni n g his mec h a nic al e n gi neeri n g de gree at L S U, he live d wit h a n o m a dic tri be i n Ke n ya as a missi o n ar y f or a ye ar. “I use d m y e n gi neeri n g de gree a n d m y h a n ds t o w or k wit h t he m a n d d o s o met hi n g ver y, ver y di ffere nt,” he s a ys.

L ater, w hile w or ki n g at his first j o b f or E x x o n M o bil, he live d a n d w or ke d i n ei g ht di ffere nt c o u ntries f or t he better p art of a dec a de. D uri n g t h at ti me, he w as e x p ose d t o pr ojects of a l ar ger sc ale t h a n he w as acc ust o me d t o. All of t hese e x perie nces g ave hi m a gre ater a p pre ci ati o n f or pe o ple, w hic h he strives t o i nc or p orate i nt o t he Da n os p hil os o p h y. “ We are o nl y as g o o d as t he pe o ple i n t he fiel d,” he s a ys.

To d a y, Da n os s h ares t he title of o w ner e xec utive wit h his br ot hers, w hile his f at her h as tra nsiti o ne d fr o m C E O t o c h air m a n of t he b o ar d. “ We’re esse nti all y c o- C E Os. fie t hree of us are peers a n d e q u als,” he s a ys. “ R at her t h a n s a y t h at o ne of us w as g oi n g t o be t he C E O t o t he detri me nt of t he ot hers, we deci de d t o s h are t he title, b ut wit h o ur o w n stre n gt hs a n d i n divi d u al res p o nsi bilities.”

The decisi o n w as i n dic ative of t he wis d o m p asse d d o w n b y Da n os’ f at her, w h o m he cre dits as his gre atest i ns pira ti o n. “ He w as d a d a n d he w as a b usi nessm a n. He di d b ot h a n d he di d b ot h well.

He w as ver y prese nt i n o ur lives. He le d o ur or g a ni z ati o n a n d o ur f a mil y a n d di d b ot h e ffectivel y.”

A p art fr o m w or k, Da n os’ pl ate is e q u all y f ull. He w or ks wit h y o ut h pr o gra ms, b ot h t hr o u g h his c h urc h a n d t he Yo u n g Life or g a ni z ati o n, w hic h de vel o ps a n d hel ps y o u n g pe o ple, mi d dle sc h o ol a n d ol der, i n nee d. “It’s a n i nter n ati o n al C hristi a n or g a ni z ati o n t h at f oc uses o n hi g h sc h o ol ki ds, a n d we’re tr yi n g t o get it st arte d i n t his c o m m u nit y.”

1 0 1 2i n d u str yr e p ort. c o m

“[ M y f at h er] e n c o ur a g e d m e i n w h at e v er dir e cti o n I w a nt e d t o g o.

H e w a s v er y bi g o n m ai nt ai ni n g w or k et hi c. W h at e v er I d e ci d e d t o d o, h e w a nt e d m e t o d o it b ett er t h a n e v er y b o d y el s e a n d n ot t o q uit.”

J as o n

T yl e r

C h air m a n, L o ui si a n a E n er g y E x p ort A s s o ci ati o n, N e w Orl e a n s Jas o n Fre nc h, t he f o u n di n g me m b er a n d first c h air m a n of t he L o uisi a n a E ner g y E x p ort Ass oci ati o n, h as a re p ut ati o n f or le a ders hi p a n d visi o n.

F or t he p ast fe w ye ars, he h as b ee n a tr ue pi o neer i n t he st ate o n all m atters re g ar di n g li q ue fie d n at ural g as. He als o ser ves as vice presi de nt of g over n me nt a n d p u blic a ff airs at Tell uri a n I nc., w hic h is de vel o pi n g t he Drift w o o d L N G e x p ort pr oject i n C alc asie u Paris h.

He c urre ntl y ser ves o n t he b o ar d of direct ors f or t he C o u ncil f or a Better L o uisi a n a a n d t he Worl d Tra de Ce nter i n Ne w Orle a ns, a n d is a me m ber of t he C o m mittee of 1 0 0 f or Ec o n o mic De vel o p me nt.

Fre nc h h as a b ac hel or’s de gree i n p olitic al scie nce fr o m t he U niversit y of L o uisville.

G e n er al C o u n s el, L o ui si a n a Mi d- C o nti n e nt Oil & G a s A s s o ci ati o n, B at o n R o u g e Tyler Gra y c urre ntl y le a ds t he Mi dstre a m C o m mittee at L o uisi a n a Mi d- C o nti ne nt Oil & Gas, w hic h f oc uses o n pi p eli nes, p orts, li q ue fie d n at ural g as, a n d ot her critic al i nfrastr uct ure i n oil a n d g as. He als o re prese nts L M O G A o n t he Oil fiel d Rest orati o n C o m missi o n, Water Res o urces C o m missi o n a n d Pil ot a ge Fee C o m missi o n, all w hile w or ki n g o n his m aster’s de gree i n b usi ness at L S U. “I l ove m y j o b,” Gra y s a ys. “It gives me w o n derf ul o p p ort u nities t o m a ke a di ffere nce t hr o u g h m y p ers o n al a n d pr ofessi o n al c o n nec ti o ns t o de vel o p p olic y f or t he st ate of L o uisi a n a a n d t he oil a n d g as i n d ustr y. W het her it’s m a n a gi n g o ur Mi dstre a m C o m mittee or s p e n di n g h o urs at t he C a pit ol, I ge n ui nel y e nj o y tr yi n g t o s olve pr o ble ms b y a n al y zi n g t he c h alle n ges a n d f or m u l ati n g a pl a n f or s uccess.”

Gra y e ar ne d his j uris d oct orate fr o m L o y ol a U niversit y i n 2 0 1 0 a n d b ac hel or’s de gree i n ec o n o mics fr o m Ja mes M a dis o n U niversit y i n 2 0 0 5.

F R E N C H, 3 9

1 0 1 2i n d u str yr e p ort. c o m

G R A Y ,3 6

C O L LI N RI C HI E

— J e s s e M or ai n, T ur n er I n d u stri e s

Jess e

M O R AI N , 3 7

Br a n c h M a n a g er, E q ui p m e nt Di vi si o n, T ur n er I n d u stri e s, B at o n R o u g e It’s all i n t he f a mil y f or Jesse M orai n, B at o n R o u ge bra nc h m a n a ger f or Tur ner I n d ustries’ E q ui p me nt Divisi o n. He’s a t hir d- ge nerati o n e m pl o yee, f oll o wi n g i n t he f o otste ps of his f at her, c urre nt e xec utive vice presi de nt a n d ge neral m a n a ger of t he E q ui p me nt Divisi o n, a n d his gra n df at her, w h o w or ke d f or Tur ner u ntil his retire me nt i n t he mi d- 1 9 8 0s.

“I re all y l ove t his c o m p a n y,” M orai n s a ys. “ fie y h ave bee n m ore t h a n f air t o m y f a mil y i n givi n g us t he o p p ort u nit y t o be a p art of t his c o m p a n y f or t hree ge nerati o ns.”

Still, i n t he e arl y d a ys M orai n s a ys his c areer p at h w as less t h a n cert ai n. “I re all y w as n’t s ure w h at I w as g oi n g t o d o t o be q uite h o nest. W he n I g ot o ut of hi g h sc h o ol a n d st arte d c olle ge, I st arte d w or ki n g p art-ti me f or Tur ner t o m a ke a little m o ne y. I e n de d u p b ec o mi n g a n e q ui p me nt o perat or a n d j ust m ove d u p t hr o u g h t he c o m p a n y t h at w a y.”

To d a y, M orai n’s r ole h as e x p a n de d t o i ncl u de t he d a y-t o- d a y o perati o ns of Tur ner’s B at o n R o u ge bra nc h, w hic h i ncl u des t he oversi g ht of s o me 1 2 0- 1 3 0 pieces of e q ui p me nt. Al o n g t he w a y, he w as n a me d b y C o nstr ucti o n E q ui p me nt m a g a zi ne as o ne of its U n der 4 0, receive d t he Presi de nt’s Vol u nteer S er vice A w ar d a n d gra d u ate d fr o m Tur ner’s Voice of L e a ders hi p pr o gra m, a 1 0- wee k c o urse t o de vel o p pr o ble m-s olvi n g s kills.

O ne of his m ore life- c h a n gi n g e x perie nces c a me vi a a t w o a n d a h alf ye ar sti nt as a pr oject m a n a ger f or a Tur ner pr oject i n St. Cr oi x. It w as his first s u p er vis or y r ole. “ Th at w as a milest o ne f or me; a de fi nite gr o wi n g e x perie nce,” he s a ys. “I w as i n c h ar ge of t he e q ui p me nt o perati o ns wit hi n t he m ai nte n a nce c o ntract t h at we hel d wit h t h at clie nt. W hile t here, I w as i n c h ar ge of t he cra nes, m a nlifts, f or klifts a n d mec h a nics.”

He cre dits his f at her as his bi g gest i ns pirati o n. “ He e nc o ura ge d me i n w h ate ver directi o n I w a nte d t o g o. He w as ver y bi g o n m ai nt ai ni n g w or k et hic.

W h ate ver I deci de d t o d o, he w a nte d me t o d o it better t h a n e ver y b o d y else a n d n ot t o q uit.”

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23

D a vi d

C O L LI N RI C HI E

H E L V E S T O N, 3 4

To m my

F A U C H E U X, 3 7

S o ut h e a st U. S. G o v er n m e nt A fi air s L e a d er, D o w C h e mi c al C o., N e w Orl e a n s To m m y Fa uc he u x cre dits his c areer i n p u blic rel ati o ns t o a c h a nce meeti n g t h at f ore ver c h a n ge d his life. “I n m y se ni or ye ar of hi g h sc h o ol, C o x C o m m u nic ati o ns w as p utti n g o n a p u blic T V s h o w f or hi g h sc h o ol ki ds a n d w a nte d a st u de nt fr o m H a h nville Hi g h Sc h o ol. M y pri nci p al at t he ti me c a me t o me a n d s ai d,‘ He y, t his is ri g ht u p y o ur alle y.

Yo u s h o ul d d o t his.’

“I e n de d u p d oi n g t his T V s h o w m y e ntire se ni or ye ar a n d w or ki n g s u m mers f or C o x w hile I w as i n c olle ge. I w as j ust a s m all-t o w n ki d fr o m L uli n g, s o it g ave me t he o p p ort u nit y t o see h o w e ver yt hi n g w or ks.”

Fa uc he u x gra d u ate d i n p u blic rel ati o ns fr o m L o y ol a U niversit y i n Ne w Orle a ns, t he n j oi ne d D o w i n 2 0 0 7 as its c o m m u nic ati o ns m a n a ger. To d a y, he is t he acti n g se ni or g over n me nt a ff airs le a der f or D o w i n t he s o ut he ast U. S., c o m prise d of L o uisi a n a, Ke nt uc k y, Te n nessee, Ge or gi a a n d Al a b a m a. “ D o w h as give n me gre at access t o p e o ple ar o u n d t he w orl d,” Fa uc he u x s a ys. “ Ever y d a y f or me is di ffere nt, a n d t h at is ver y e xciti n g. I feel li ke I’ve acc o m plis he d a l ot of w h at I w a nte d t o acc o m plis h i n a p eri o d of 1 5 ye ars or s o.”

I n his r ole, he activel y w or ks wit h le gisl at ors, t he g over n or’s o ffices, l oc al o ffici als, c h a m b ers a n d ec o n o mic de vel o p me nt gr o u ps. Al o n g t he w a y, he h as le ar ne d t he v al ue of rel ati o ns hi ps, h o nest y, tr ust a n d res p ect f or p e o ple.

Fa uc he u x’s c areer will re ac h yet a n ot her pl ate a u l ater t his ye ar w he n he b ec o mes t he y o u n gest i nc o mi n g c h air m a n of Gre ater Ne w Orle a ns I nc. W hile t here, he pl a ns t o p ur p osel y f oc us o n i de ntif yi n g a n d pre p ari n g t he ne xt ge nera ti o n of le a ders. “ W het her it b e t he G N O I nc. b o ar d, t he L o uisi a n a C he mic al Ass oci ati o n b o ar d or re gi o n al c h a m b ers of c o m merce, t here is a ge nerati o n al s hift t h at m ust t a ke pl ace,” he s a ys. “ A l ot of t he m are getti n g re a d y t o m ove o n t o a n ot her st a ge of life, a n d t he y’re g oi n g t o le ave a g a p. “ As we t al k a b o ut t a x ref or m a n d f ut ure i nfrastr uct ure nee ds, we als o nee d t o m a ke s ure we’re i de ntif yi n g t h ose pe o ple w h o c a n ste p u p a n d b ec o me b ot h g o o d e m pl o yees a n d g o o d civic le a ders.”

Pr e si d e nt/ C E O, A B C – P eli c a n C h a pt er, B at o n R o u g e As t he ne w presi de nt a n d C E O of Ass oci ate d B uil ders & C o ntract ors’ Pelic a n C h a pter, Davi d Helvest o n is q uic kl y m a ki n g his m ar k o n t he L o u isi a n a i n d ustri al m ar ket. Helvest o n, w h o h as a b ac hel or’s de gree i n fi n a nce a n d a j uris d oct orate a n d M B A fr o m L S U, pre vi o usl y ser ve d as direct or of t he G over n or’s Wor kf orce I nvest me nt C o u ncil a n d vice presi de nt f or c areer, tec h nic al a n d w or kf orce e d uc ati o n at t he L o uisi a n a C o m m u nit y a n d Tec h nic al C olle ge S yste m.

D uri n g his ti me at L C T C S, he receive d a Nati o n al Wor kf orce De velo p me nt A w ar d fr o m t he C o nstr ucti o n Users R o u n dt a ble. I n 2 0 1 3, as t he de m a n d f or i n d ustri al c o nstr ucti o n w or kers w as f orec ast t o b o o m, he w or ke d wit h t he Wor kf orce I nvest me nt C o u ncil’s S kille d Craft Tas k F orce t o c o nve ne st a ke h ol ders acr oss i n d ustr y, g over n me nt a n d e d uc ati o n t o de vel o p a strate gic st ate wi de res p o nse.

Ni c h ol a s

H E B E R T, 3 7

C F O a n d G e n er al C o u n s el, Q u alit y E n er g y S er vi c e s, H o u m a Nic h ol as He b ert b e g a n his c areer i n oil a n d g as i n 2 0 1 3 as ge neral c o u nsel f or Q u alit y E ner g y S er vices I nc., t he n a d de d t he r ole of C F O i n 2 0 1 5. Wit h a b ac hel or’s de gree i n ec o n o mics fr o m L S U a n d j uris d oct orate fr o m t he U niversit y of Al a b a m a, He b ert is als o p art o w ner of a n i ns ura nce c o m p a n y, b o ar d me m b er of t he Terre b o n ne Ec o n o mic De vel o p me nt A ut h orit y a n d a me m b er of t he B a y o u C a ne Fire District B o ar d.

24

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I n 2 0 1 7, he receive d t he H o u m a- Terre b o n ne C h a m ber of C o m merce’s Yo u n g Ac hie vers A w ar d. “ Ofte n, o ur pr o fessi o n is de picte d ne g ativel y i n t he me di a, a n d s o meti mes it is h ar d t o est a blis h y o urself as o ne of t he g o o d o nes,” he s a ys. “I feel t h at t h ose w h o k n o w me a n d de al wit h me o n a re g ul ar b asis k n o w me t o be a n h o nest pers o n of i nte grit y.

M y h o p e is t h at I will ac hie ve t his m o me nt at t he e n d of m y c areer as well.”

1 0 1 2i n d u str yr e p ort. c o m

I s s u e D at e: 1 0/ 1 2 2 n d Qtr A d pr o of # 2

• Ple ase res po n d by e- m ail or f ax wit h yo ur a p prov al or mi nor revisio ns.

• A D WILL R U N A S I S u nless a p prov al or fi n al revisio ns are receive d by t he close of b usi ness to d ay.

• A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees.

C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 7. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

™

T ott y

K O S T M A Y E R, 33

Vi c e Pr e si d e nt of B u si n e s s D e v el o p m e nt, K o st m a y er C o n str u cti o n C o., Sli d ell Tott y K ost m a yer is a sec o n d- ge n erati o n f a mil y b usi ness m a n w h o is well-sc h o ole d i n s afet y, e fficie nt m ari ne a n d mec h a nic al c o nstr ucti o n.

His le a ders hi p h as i nvi g orate d t he c o m p a n y a n d delivere d v al ue t o its c ust o mer b ase.

After atte n di n g t he U niversit y of Al a b a m a f or t hree ye ars, he left sc h o ol f oll o wi n g H urric a ne K atri n a i n 2 0 0 5 t o be gi n a c o nstr ucti o n fir m wit h t w o c olle a g ues. After s uccess f ull y e xec uti n g n u mer o us pr ojects, K ost m a yer j oi ne d his f at her at K ost m a yer C o nstr ucti o n. I n 2 0 1 3, he t o o k o n t he r ole of b usi ness de vel o p me nt a n d s uccessf ull y diversi fie d t he c o m p a n y’s clie nt b ase, tra nsiti o ni n g it t o w or k pri m aril y i n t he petr oc he mic al, re fi ni n g a n d grai n i n d ustries.

K ost m a yer is a me m b er of L A M P ( L o uisi a n a M a n uf act urers P olitic al Acti o n C o m mittee), t he L o uisi a n a C he mic al I n d ustr y Alli a nce a n d A B C Pelic a n C h a pter a n d a c or p orate s p o ns or of Gre ater B at o n R o u ge I n d ustr y Alli a nce.

M e g a n M o n s o ur

H A R T M A N, 3 5

P u bli c R el ati o n s Dir e ct or, P hilli p s 6 6, W e stl a k e Me g a n H art m a n w as n a me d t he p u blic rel ati o ns direct or f or P hilli ps 6 6 i n A u g ust 2 0 1 6. Wor ki n g i n p u b lic rel ati o ns f or m ore t h a n a dec a de, five ye ars of w hic h w as i n re fi neries, h as e n a ble d her t o e asil y tra nsiti o n i nt o t he r ole.

H art m a n, w h o e ar ne d her b ac he l or’s de gree i n m ass c o m m u nic ati o ns fr o m L S U i n 2 0 0 4, is a certi fie d Travel M ar keti n g Pr ofessi o n al. S he h as als o b ee n rec o g ni z e d as a n U p a n d C o mi n g Wo m a n B usi ness L e a d er b y t he S W L A Wo me n’s B usi ness Net w or k. fir o u g h o ut her c areer, s he h as i nc or p orate d her visi o n of c o nti n u al g o al-setti n g a n d fi n di n g a pr o p er w or k /life b al a nce. After her f at her w as di a g n ose d wit h e arl y o nset Al z hei mer’s dise ase i n 2 0 1 5, s he cre ate d a “ Me m ories M atter” c a m p ai g n a n d s ol d T-s hirts t o a dv oc ate a n d raise m o ne y f or t he Al z hei mer’s Ass oci ati o n.

U N D E R C O N T R O L. Fr o m l ar g e-s c al e pr o p erty a n d li a bility l oss es t o t hir d p arty a d mi nistr ati o n, t o cl ass s ettl e m e nts, W orl ey cr e at es C E R T AI N T Y I N A W O R L D O F RI S K Wit h ov er 4 0 y e ars’ ex p eri e n c e, W orl ey d eliv ers c ust o m s ervi c es t o r e d u c e y o ur w or kl o a d, i n cr e as e r et ur n, a n d k e e p y o u fir mly i n c o ntr ol.

• • •

“I f e el li k e I’ v e a c c o m pli s h e d a l ot of w h at I w a nt e d t o a c c o m pli s h i n a p eri o d of 1 5 y e ar s or s o.”

— T o m m y F a u c h e u x, D o w C h e mi c al C o.

• •

Pr o gr a m A d mi nistr ati o n R e s o ur c e St af fi n g Pr o p erty I ns p ecti o n S ervic es C all C e nt er S ol uti o ns Pr oj ect M a n a g e m e nt 9 8 5- 5 4 2- 2 3 6 4

•

• • • • •

Q u ality Ass ur a nc e C ust o miz e d S oft w ar e S ol uti o ns Cl ai ms A d mi nistr ati o n E nvir o n m e nt al S ervic es G ov er n m e nt S ervic es

P. O. B o x 2 4 9 •

H a m m o n d, L A 7 0 4 0 4

w w w. w orl e y c o. c o m (f or S p e ci alt y St af fi n g I n q uir e s)

1 0 1 2i n d u str yr e p ort. c o m

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

25

C o u rt n e y

Ma n dy

Z e nill e

R o b e rt

Pr e si d e nt, A n c h or 3 6 Tr u c ki n g & L o gi sti c s, K e n n er As presi de nt of her o w n he av y e q ui p me nt tr uc ki n g c o m p a n y, C o urt ne y Ric h ar d h as b ee n dee pl y i nv olve d i n b ot h her i n d ustr y a n d c o m m u nit y, i ncl u di n g p ast a n d pres e nt me m bers hi ps i n Gre ater Ne w Orle a ns I nc.’s Ne xt Ge n C o u ncil, t he A meric a n B usi ness Wo me n’s Ass oci ati o n, t he S peci ali z e d C arrier & Ri g gi n g Ass oci ati o n, t he L o uisi a n a M ot or Tra ns p ort Ass oci ati o n, t he Wo me n’s B usi ness E nter prise Nati o n al C o u ncil, Yo u n g Pr ofessi o n als of L A G C O E a n d t he Al u m ni A dvis or y B o ar d f or G ol d m a n S ac hs 1 0, 0 0 0 S m all B usi nesses.

S he h as bee n h o n ore d b y C o n str ucti o n E q ui p me nt m a g a zi ne as a n U n der 4 0 i n C o nstr ucti o n E q ui p me nt a w ar d wi n ner a n d as B usi ness Wo m a n of t he Ye ar b y t he A meric a n B usi ness Wo me n’s Ass oci ati o n.

Ric h ar d als o p artici p ate d i n t he J u ni or L e a g ue’s To uc h a Tr uc k e ve nt, a u ni q ue e x perie nce t h at gives f a milies a n u p- cl ose l o o k at t heir f av orite “ bi g tr uc ks.”

S he is a gra d u ate of t he G ol d m a n S ac hs 1 0, 0 0 0 S m all B usi ness Pr o gra m a n d is a n accre dite d asset m a n a ge me nt s peci alist. S he e ar ne d her b ac hel or’s de gree fr o m S o ut her n Met h o dist U niversit y.

Li g ht Cl e a n Pr o d u ct Pl a n n er, CI T G O P etr ol e u m, W e stl a k e M a n d y Mic h al k o b e g a n w or ki n g f or CI T G O Petr ole u m i n J ul y 2 0 1 1 as a pr ocess e n gi neer, w as pr o m ote d i n S e pte m b er 2 0 1 5 t o p erf or m a nce a n al yst a n d i n S e pte m b er 2 0 1 6 t o pr o d uct pl a n ner. Mic h al k o’s i ncre as i n g res p o nsi bilities c orres p o n d wit h her e ver-i ncre asi n g tec h nic al a n d m a n a geri al a bilities. S he p artici p ates o n t he Cit g o Dra g o n B o at R ace te a m, raises m o ne y f or C hil dre n’s Miracle Net w or k a n d pl a ys a r ole i n F usi o n Five, a y o u n g pr ofessi o nals’ or g a ni z ati o n t h at pr o m otes pr ofessi o n al a n d le a ders hi p gr o wt h f or e mer gi n g le a ders i n s o ut h west L o uisi a n a.

Mic h al k o h as als o b ee n acce pte d b y t he 2 0 1 8 L e a ders hi p S W L A pr o gra m a n d is t he tre as urer of CI T G O L a ke C h arles Re fi ner y’s E m pl o yees’ Cl u b or g a ni z ati o n. “ M y pr o u dest ac hie ve me nt b y f ar is receivi n g Te a m CI T G O Vol u nteer of t he Ye ar rec o g niti o n,” s he s a ys.

R e g ul at or y S er vi c e s L e a d er, D o w, Pl a q u e mi n e Ze nille S a u n ders is p art of D o w’s E nvir o n me nt al, He alt h a n d S afet y Re g ul at or y S er vices Gr o u p a n d ser ves as t he o p erati o ns re g ul at or y ser vices le a der f or L o uisi a n a a n d Al a b a m a. S a u n ders’ p assi o n f or t he e nvir o n me nt, her c o m m u nit y a n d t he brilli a nce of scie nce is a c o nsi dera ble asset t o D o w.

S a u n ders is a le a der i n D o w’s Afric a n A meric a n Net w or k a n d w or ks wit h c o m m u nit y gr o u ps s uc h as 1 0 0 Bl ac k Me n, me nt ors hi p pr o gra ms a n d o utre ac h wit h S o ut her n U niversit y.

S he is als o a me m b er of D o w L o uisi a n a S T E M A m b ass a d ors, t he D o w P olitic al Acti o n C o m mittee, t he Nati o n al S ociet y of Bl ac k E ngi neers a n d t he S yrac use U niversit y F ull Circle Me nt ors hi p Pr o gra m.

Gr o u p M a n a g er, A s p h alt Gr o u p, B arri er e C o n str u cti o n, B at o n R o u g e A risi n g le a der i n B arriere C o n str ucti o n’s B at o n R o u ge As p h alt Gr o u p, l oc ate d a dj ace nt t o t he E x x o n M o bil p ol y ole fi ns pl a nt, R o bert S e n gel m a n n s peci ali z es i n c o nstr uc ti o n m a n a ge me nt.

A gra d u ate of A u b ur n U niversit y, S e n gel m a n n h as bee n certi fie d b y a v ariet y of i nstit uti o ns, s uc h as t he Na ti o n al Ce nter f or As p h alt Tec h n ol o g y, F MI E mer gi n g M a n a gers I nstit ute a n d Astec I n d ustries. He is a me m ber of G B RI A, Ass oci ate d B uil ders a n d C o ntract ors, t he Nati o n al As p h alt Pave me nt Ass oci ati o n, t he L o uisi a n a As p h alt Pave me nt Ass oci ati o n, Ass o ci ate d Ge neral C o ntract ors, a n d t he A meric a n P u blic Wor ks Ass oci ati o n.

RI C H A R D, 3 7

MI C H A L K O, 2 9

S A U N D E R S, 2 7

S E N G E L M A N N, 36

“[ M y b o s s, L y n d e e Br a s si e ur] s ai d s o m et hi n g t h at h a s r e all y st a y e d wit h m e: ‘ D o n’t f or g et t o t a k e a s e at at t h e t a bl e.’ T o m e, t h at m e a n s y o u s h o ul d n’t b e afr ai d t o b e a p art of t h e c or e t e a m.”

— A s hl e y M a g ur a n y, W e sl a k e C h e mi c al

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1 0 1 2i n d u str yr e p ort. c o m

A s hl e y

C o nti n u o u s I m pr o v e m e nt L e a d er, W e stl a k e C h e mi c al, W e stl a k e As hle y M a g ura n y w aste d little ti me after gra d u ati n g fr o m B uc k nell U niversit y wit h a de gree i n c he mic al e n gi neeri n g.

Si nce j oi ni n g P P G I n d ustries i n 2 0 1 1 as a pr o d ucti o n e n gi neer at its Natri u m, West Vir gi ni a, pl a nt ( n o w o w ne d b y Westl a ke C he mic al), s he h as bee n pr o m ote d t hree ti mes, m ost rece ntl y i n M arc h 2 0 1 6 as c o nti n u o us i m pr ove me nt le a der i n West l a ke.

S he cre dits a pr ofess or at B uc k nell f or givi n g her s o me ti mel y e nc o ura ge me nt e arl y i n her c areer. “ He t ol d me t h at he w o ul d tr ust me wit h a n yt hi n g, b ec a use wit h m y drive a n d acc o u nt a bilit y I w o ul d get it d o ne a n d drive it t o res ults,” s he s a ys. “ fi at w as a h u ge m otiv at or f or me.”

Si nce m ovi n g t o L a ke C h arles, M a g u ra n y h as a g gressivel y p urs ue d a v ariet y of le a ders hi p o p p ort u nities. I n f act, s he is t he c urre nt c h air m a n of Westl a ke C he mic al’s Pr ofessi o n al De vel o p me nt Or g a ni z ati o n a n d v ol u nteers f or U p f or D o w ns, A bra h a m’s Te nt ( a l oc al f o o d b a n k), a n d Fa mil y & Yo ut h c o u nseli n g t hr o u g h its Der b y f or D oll ars e ve nt. S he w as als o a 2 0 1 7 gra d u ate of L e a ders hi p S W L A, s p o ns ore d b y t he S W L A Ec o n o mic De vel o p me nt Alli a nce.

At w or k, s he s u per vises e n gi neers i n Westl a ke C he mic al’s c o nti n u o us i m pr ove me nt gr o u p, kee pi n g t he m ali g ne d wit h site g o als. “ The e x perie nce h as t a u g ht me a l ot a b o ut v ali d ati o n, pri oriti z ati o n a n d h o w t o de vel o p y o u n g e n gi neers,” s he a d ds.

M a g ura n y, w h o p ossesses a str o n g desire f or c o nti n u o us de vel o p me nt a n d le ar ni n g, e nj o ys t he u n pre dict a ble n at ure of her c urre nt r ole at Westl a ke. “ There’s ne ver a t y pic al d a y. It c o ul d i nv olve a pr o d ucti o n pr ocess, a c o m m u nic ati o ns pr ocess, etc., b ut it’s al w a ys a c h alle n ge o n a site wit h 1, 1 0 0 pe o ple. I get i nv olve d i n a l ot of c h a n ge m a n a ge me nt j ust t o m a ke s ure t h at e ver yt hi n g is c o m m u nic ate d e ffectivel y a n d t h at t here is a g o o d c o ntr ol pl a n.”

S he s a ys her c urre nt b oss, L y n dee Brassie ur, re gi o n al m a n a ger- c o nti n u o us i m pr ove me nt, h as b ee n a si g ni fic a nt i n fl ue nce i n her pr ofessi o n al life. “ S he s ai d s o met hi n g t h at h as re all y st a ye d wit h me: ‘ D o n’t f or get t o t a ke a se at at t he t a ble.’

To me, t h at me a ns t h at y o u s h o ul d n’t b e afrai d t o be p art of t he c ore te a m. If y o u w al k i nt o a meeti n g a n d t here’s a b u nc h of i m p ort a nt pe o ple sitti n g at t he t a ble, d o n’t sit o n t he o uts kirts a n d t hi n k t he y d o n’t w a nt t o he ar y o ur o pi ni o n.”

1 0 1 2i n d u str yr e p ort. c o m

AI R D O N KA D

M A G U R A N Y, 2 8

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Bl a k e

MI G U E Z,

— Bl a k e Mi g u e z, S e a Tr a n M ari n e [ a n d pr of e s si o n al c o m p etiti v e h a n d g u n s h o ot er]

36

Pr e si d e nt/ C E O, S e a Tr a n M ari n e, N e w I b eri a Bl a ke Mi g ue z’s l a u n dr y list of acc o m plis h me nts, de grees a n d h o n ors re a ds li ke a m a n o n t he ver ge of retire me nt, n ot o ne i n his mi d- 3 0s.

N ot o nl y is he o ne of t he y o u n gest st ate le gisl at ors i n t he L o uisi a n a H o use of Re prese nt atives a n d a j uris d oct orate gra d u ate, he is als o t he y o u n gest me m ber o n t he b o ar d of direct ors f or t he O ffs h ore M ari ne S er vice Ass oci ati o n.

A n d i n his s p are ti me, he c o m p etes pr ofessi o n all y i n h a n d g u n s h o oti n g c o m p etiti o ns, w here he h as w o n b ot h w orl d a n d U. S. titles.

N o net heless, his c hief desire h as al w a ys b ee n t o t a ke t he hel m of S e a Tra n M ari ne. W hile i n l a w sc h o ol, he e n g ulfe d hi mself as m uc h as p ossi ble i n t he f a mil y b usi ness, w or ki n g t here o n bre a ks t o g ai n a n u n derst a n di n g of t he c o m p a n y.

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“I w as g oi n g t o l a w sc h o ol, b ut I di d n’t w a nt t o b e a l a w yer. I j ust w a nte d a l a w de gree. fie mi n ute I g ot o ut of sc h o ol, I w as deter mi ne d t o b e presi de nt of m y d a d’s c o m p a n y a n d t a ke it over as q uic kl y as p ossi ble,” he a d ds. “ F ort u n ate l y, m y d a d h a d w a nte d t o retire 1 0 ye ars pri or, s o t h at w as O K wit h hi m.”

W hile he g ot w h at he w a nte d, t he res p o n si bilit y of r u n ni n g a c o m p a n y pr ove d c h alle n gi n g at ti mes f or t he y o u n g Mi g ue z. “ Wit h t he res p o nsi bilit y c a me a l ot of he a d ac hes, he art ac hes, s acri fice a n d a l ot of sc h o ol of h ar dk n oc ks m o me nts. B ut al m ost 1 0 ye ars l ater, I feel I’ve acc o m plis he d a l ot.”

W he n he t o o k over t he b usi ness, t he c o m p a n y h a d a b o ut five or si x vessels. B ef ore t he sl o w d o w n i n t he oil a n d g as m ar ket, t h at n u m b er

h a d s h ot u p t o 3 0.

His e d uc ati o n i n t he o ffs h ore m ari ne tra ns p ort ati o n b usi ness h as bee n a lifel o n g c o urse of st u d y. As Mi g ue z m at ure d, his gra n df at her pl a ye d a n i ncre asi n gl y i m p ort a nt r ole b y e n c o ura gi n g hi m t o t a ke over t he f a mil y b usi ness.

Ar me d o nl y wit h a si xt h- gra de e d uc ati o n, his gra n df at her p ossesse d a tre me n d o us w or k et hic. “ W he n he l o o ke d y o u i n t he e yes a n d g ave y o u his w or d, he f oll o we d t hr o u g h,” Mi g ue z s a ys. “ Th at’s s o met hi n g t h at h as hel pe d me, e ve n i n t he L e gisl at ure. Re g ar dless of w het her y o u a gree or dis a gree wit h s o me o ne, y o u nee d t o give s o me o ne y o ur w or d. If y o u h ave t o c h a n ge y o ur mi n d, y o u better let t he m k n o w y o u’re c h a n gi n g y o ur mi n d, bec a use y o ur w or d a n d y o ur re p ut ati o n are all y o u h ave.”

1 0 1 2i n d u str yr e p ort. c o m

T E R RI F E N S E L

“ Wit h t h e r e s p o n si bilit y [ of r u n ni n g t h e f a mil y c o m p a n y] c a m e a l ot of h e a d a c h e s, h e art a c h e s, s a cri fi c e a n d a l ot of s c h o ol of h ar d k n o c k s m o m e nt s.

B ut al m o st 1 0 y e ar s l at er, I f e el I’ v e a c c o m pli s h e d a l ot.”

I s s u e D at e: 1 Q A d pr o of # 1

• Ple ase res po n d by e- m ail or f ax wit h yo ur a p prov al or mi nor revisio ns.

• A D WILL R U N A S I S u nless a p prov al or fi n al revisio ns are receive d by t he close of b usi ness to d ay.

• A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees.

C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S

Br e n d o n

T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 8. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

S T O U T, 2 9

T e c h n ol o g y M a n a g er, Vir di a B 2 X L L C, R a c el a n d As a y o u n g e n gi neer, Bre n d o n St o ut h as m a de si g ni fic a nt c o ntri b u ti o ns t o t he de vel o p me nt, desi g n a n d o p erati o n of t he Vir di a B 2 X L L C x yl ose pl a nt i n R acel a n d.

St o ut h as w or ke d f or si x ye ars i n hel pi n g t o de vel o p a first- of-itski n d tec h n ol o g y t o c o nvert s u g ar c a ne b a g asse i nt o x yl ose a n d ot her v al ue- a d de d pr o d ucts. He pr ovi de d a le a ders hi p r ole i n t he i niti al desi g n, b uil d a n d st art u p of t he pl a nt, fre q ue ntl y w or ki n g wit h a n d trai ni n g e n gi neers a n d y o u n g tec h nici a ns fr o m t he are a.

“It h as b ee n a h u m bli n g e x p erie nce t o see t his g o fr o m a c o nce pt t o a n o p erati n g pl a nt, cre ati n g j o bs a n d l a yi n g t he f o u n d ati o n f or f ut ure de vel o p me nt,” he s a ys. St o ut e ar ne d a b ac hel or’s de gree i n c he mic al e n gi neeri n g fr o m N ort h C ar oli n a St ate U niversit y.

Ia m

T U C K E R, 3 5

Pr e si d e nt, I L SI E n gi n e eri n g, N e w Orl e a n s Ia m Tuc ker ser ves as t he presi de nt a n d C E O of I nte grate d L o gisti c al S u p p ort I nc., a 1 0 0 % fe m ale, mi n orit y- o w ne d, 8( a) certi fie d civil e n gi neeri n g fir m. Tuc ker is res p o nsi ble f or t he d a y-t o- d a y m a n a ge me nt, directi o n, b usi ness de vel o p me nt a n d i m ple me nt ati o n of p olic y f or all civil e n gi neeri n g, str uct ural e n gi neeri n g a n d c o nstr ucti o n m a n a ge me nt activities.

S he is a me m b er of t he n o n p arti s a n a dv oc ac y gr o u p Afric a n A meric a n Wo me n of P ur p ose a n d P o wer, a gra d u ate of t he G ol d m a n S ac hs 1 0, 0 0 0 S m all B usi ness Pr o gra m a n d a n h o n oree i n t he 2 0 1 3 Ga m bit 4 0 u n der 4 0 cl ass.

S he h as als o b ee n a p p oi nte d t o t he Ne w Orle a ns P olice & J ustice F o u n d ati o n, w as n o mi n ate d f or t he I n ner Cit y 1 0 0 Pr o gra m as a “ 2 0 1 5 I n ner Cit y 1 0 K S m all B usi ness Al u m ni” a n d w as a m o n g 2 0 i n di vi d u als selecte d t o p artici p ate i n t he E mer gi n g L e a ders I nstit ute series b y A C E C of L o uisi a n a a n d AI A L o uisi a n a.

1 0 1 2i n d u str yr e p ort. c o m

C or p or at e H e a d q u art er s a n d W ar e h o u s e s: 9 4 3 6 Hi g h w a y 7 5, G ei s m ar, L A 7 0 7 3 4 2 2 5. 6 7 3. 3 3 7 0 • 1. 8 8 8. 2 6 9. 4 3 1 5 •

w w w. br a u d c o. c o m

D oi n g i t ri g h t f o r O V E R 3 0 y e a r s!

B r a u d W el di n g & I n d u st ri al S u p pl y h a s b e e n p r o vi di n g m at e ri al t o i n d u st ri e s f o r o v e r t hi rt y y e a r s.

O u r e m p h a si s i s o n s e r vi c e. W e t a k e p ri d e i n s a m e d a y d eli v e r y.

C u st o m e r s e r vi c e i s al w a y s o u r n u m b e r o n e p ri o rit y. W e d eli v e r o nti m e, e v e r yti m e.

W e al s o h a v e a w ell st o c k e d w al k -i n s al e s c o u nt e r w h e r e y o u c a n p u r c h a s e a n y q u a ntit y of a n it e m.

2 4/ 7 3 6 5 D a y s a Y e a r!

S a m e D a y D eli v e r y A b r a si v e s | A d h e si v e s, S e al a nt s & T a p e s | Di s pl a y U nit s C h e mi c al s, L u b ri c a nt s & P ai nt s | El e ct ri c al & Li g hti n g El e ct ri c al T o ol s | F a st e n e r s, Cl a m p s & St r a p s | H a n d T o ol s Oilfi el d | H V A C | J a nit o ri al E q ui p m e nt | M a r k eti n g T o ol s M at e ri al H a n dli n g | M e a s u ri n g & L e v eli n g T o ol s | M R O S u p pli e s Pl u m bi n g E q ui p m e nt | P n e u m ati c s | P u m p s | P o w e r T o ol s S af et y & S e c u rit y | W el di n g S u p pli e s

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N E WS

A d a pti n g t o s u r vi v e Oil p at c h o w n er s, s u p pli er s m o v e t o s h al e, b ut s o m e c a n’t f oll o w. B Y S A M

M

ost oil p atc h o w ners, c o ntrac t ors a n d s u p pliers h ave le ar ne d t he h ar d w a y i n rece nt ye ars t h at t he y m ust eit her a d a pt t o a le a ner l o w- oil price e nvir o n me nt or s u ffer t he c o nse q ue nces. fii s is es peci all y tr ue i n t he w orl d of o ff s h ore oil, w here d wi n dli n g ret ur ns are se n di n g m a n y t o t he s h ale pl a ys.

The dire ness of t he sit u ati o n is a p p are nt acr oss a wi de s w at h of s o ut h L o uisi a n a. H o u m a, L af a yette, Thi b o d a u x a n d ot her c o m m u nities h ave s u ffere d s h ar p i ncre ases i n u ne m pl o y me nt, wit h rates al m ost d o u bli n g si nce 2 0 1 4. M ore over, t he hiri n g of ne w gra d u ates fr o m u niversities a n d tra de sc h o ols h as bee n di ale d b ac k fr o m hist oric hi g hs, a n d f a bric ati o n yar ds o nce fille d

30

M A KI N G A D J U S T M E N T S: B P w or k e d wit h p art n er s B H P a n d C h e vr o n t o r e- e n gi n e er, si m plif y a n d s a n cti o n it s m ulti billi o n- d oll ar M a d D o g P h a s e II off s h or e pl atf or m. It s br e a k e v e n p oi nt i s n o w l e s s t h a n $ 4 0 a b arr el, r o u g hl y h alf of w h at it w a s i n 2 0 1 4.

B A R N ES

a n d b ac kl o g ge d h ave b ec o me g h ost t o w ns.

B P’s pr ojects ge neral m a n a g er R ya n M al o ne s u m me d u p t he sit u ati o n d uri n g his ke y n ote s p eec h at t he L o uisi a n a G ulf C o ast Oil E x p ositi o n i n L af a yette l ast f all. “ These u n prece de nte d re d ucti o ns i m p acte d m a n y of y o u i n t his r o o m a n d y o ur b usi nesses d o n’t l o o k t he s a me t o d a y as t he y o nce were,” M al o ne s a ys. “ Li ke m a n y of t he m aj ors, we were f ace d wit h m a ki n g re d ucti o ns i n o ur c a pit al s p e n di n g, a n d we di d t his s o t h at we c o ul d m a p a s ust ai n a ble b usi ness f or t he l o n g d o w nt ur n i n c o m m o dit y prices.”

The U. S. I nteri or De p art me nt’s a n n o u nce me nt t h at it w o ul d h ol d t he l ar gest o ffs h ore a ucti o n t o d ate, ne arl y 7 7 milli o n acres, i n M arc h h as d o ne little t o b o ost o pti mis m. Tur n -

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

T H E A S S O CI A T E D P R E S S

OI L I N D U S T R Y

i n g a pr o fit o ffs h ore h as b ec o me a te n u o us pr o p ositi o n, s o t he s h ale pl a ys — p artic ul arl y t he Per mi a n B a si n — are attracti n g o w ners i n dr oves.

The Per mi a n is l ar gel y c o nt ai ne d i n wester n Te x as a n d s o ut he aster n Ne w Me xic o, a n d h as e x p erie nce d a re viv al of activit y as t he oil a n d g as i n d ustr y’s i nterest i n u nc o nve nti o n al res o urces gr o ws al o n g wit h ne w tec h n ol o gies. “ Yo u’re d o w n t o j ust t he m aj ors a n d s u p er-i n de p e n de nts t h at c a n act u all y b e o ut i n t he G ulf a n y m ore,” s a ys Gi ff or d Bri g gs, vice presi de nt of t he L o uisi a n a Oil & Gas Ass oci ati o n. “ W h y w o ul d y o u g o w he n y o u k n o w t h at f or $ 9 milli o n y o u c a n drill a well, d o a 1 0, 0 0 0-f o ot l ateral, get‘ X’ pr o d ucti o n o ff of t h at, a n d it’s al m ost 1 0 0 % g u ara ntee d? The ris ks are m uc h hi g her i n t he G ulf, w here

y o u c o ul d s pe n d $ 1 billi o n or $ 2 billi o n … a n d t h at’s n ot g u ara ntee d.”

E F F E C T O N S U P P LI E R S B P’s M al o ne s a ys t he m ass e x o d us of oil c o m p a nies fr o m t he G ulf of Me xic o h as dra m atic all y altere d t he o ffs h ore l a n dsc a pe. After a dec a de of ne w pl a yers e nteri n g t he m ar ket, se veral c o m p a nies h ave n o w m a de t he decisi o n t o e xit. F urt her m ore, a b o ut 5 0 % of t he av ail a ble s u p pl y vessel fleet h as bee n i dle d, t he helic o pter fleet h as bee n re d uce d b y m ore t h a n 1 0 0 aircraft a n d seis mic activit y h as f alle n fr o m a n avera ge of 5 0 s ur ve ys t o j ust 1 1.

There h as als o bee n a pr o p a g a ti o n of c o ns oli d ati o ns a n d alli a nces.

C o m p a nies s uc h as Tec h ni p a n d F M C, Sc hl u m ber ger Lt d. a n d C a m er o n I nter n ati o n al C or p., Sie me ns 1 0 1 2i n d u str yr e p ort. c o m

1 0 1 2i n d u str yr e p ort. c o m

Y

ES RT

CO

“ W e w er e f a c e d wit h m a ki n g r e d u cti o n s i n o ur c a pit al s p e n di n g, a n d w e di d t hi s s o t h at w e c o ul d m a p a s u st ai n a bl e b u si n e s s f o r t h e l o n g d o w nt u r n i n c o m m o dit y pri c e s.”

R Y A N M A L O N E, pr oj e ct s g e n er al m a n a g er, B P

T H E A S S O CI A T E D P R E S S

I N T E G R A TI O N A N D P A R T N E R S HI P S Ma n y s o ut h L o uisi a n a oil p atc h c o m p a nies h ave s ur vive d b y f oll o wi n g o w ners t o t he s h ale pl a ys a n d diversif yi n g t heir clie nt b ase. e y’ve als o t a ke n ste ps t o i nte grate a n d c o m bi ne ser vices t o m a ke t he mselves m ore attractive.

Da n os i n Gra y, L o uisi a n a, h as d o ne all of t he a b ove. A pr ovi der of pr o d ucti o n s u p p ort, c o nstr ucti o n, f a bric ati o n, c o ati n gs a n d l o gistics, Da n os h as l ost o nl y a b o ut 1 0 % of its e m pl o yees si nce t he d o w nt ur n, l ar gel y d ue t o t he resilie nc y of its b usi ness m o del. Pri or t o t he oil b ust, a b o ut 8 0 % of Da n os’ b usi ness was all oc ate d t o t hree or f o ur clie nts.

To d a y, 8 0 % of its b usi ness is s pre a d acr oss 2 0 clie nts. “ at h as all o we d us t o we at her t he st or m,” s a ys Mar k Da n os, o w ner e xec utive. “If we h a d all of o ur e g gs

BP

he a d ds, “s o y o u re all y nee d t o ste p b ac k a n d t hi n k a b o ut re-setti n g y o ur b usi ness i n a wa y t h at a dj usts t o t he ne w re alit y. ere’s a n o p p ort u nit y, bec a use t here’s n ot e n o u g h pe o ple o ut t here t h at re all y k n o w w h at t he y’re d oi n g. e Per mi a n’s b o o mi n g a n d it’s g oi n g t o b o o m f or a l o n g ti me.”

U

a n d Dresser- R a n d, Ge neral Electric C o. a n d B a ker H u g hes h ave mer ge d t o stre n gt he n t heir p ortf oli os. A n d, u nf ort u n atel y, b a n kr u ptc y fili n gs h ave i ncre ase d. “ Gl o b all y, t he ser vices i n d ustr y h as l ost a n esti m ate d 4 0, 0 0 0 j o bs a n d o perat ors h ave re d uce d st a ff b y u p w ar ds of 9 0, 0 0 0 p ers o n nel,” M al o ne s a ys. As f or B P, it m ai nt ai ns a prese nce i n t he G ulf b y mi ni mi zi n g over he a d a n d m a ki n g l o gistic al a dj ust me nts. “ We reset o ur a p pr o ac h t o l o gistics a n d h alve d o ur fl eet of vessels a n d helic o pters,” M al o ne s a ys. “ We h ave als o ne arl y h alve d o ur G ulf of Me xic o st a ff si nce 2 0 1 4, m ost of t his c o mi n g fr o m o ur o ns h ore p ers o nnel. We w or ke d cl osel y wit h o ur t hir d- p art y s u p pliers t o c a pt ure defl ati o n a n d de fi cie ncies a n d c o nti nue d i nvest me nt t o b o ost o p erati n g e ffi cie nc y i n o ur pr o d uci n g wells a n d o ur o perati n g pl a nts.”

M ore rece ntl y, B P w or ke d wit h p art ners B H P a n d C he vr o n t o re- e n gi neer, si m plif y a n d s a ncti o n its m ulti billi o n- d oll ar M a d D o g P h ase II o ff s h ore pl atf or m t o b e c o m p etitive i n a $ 4 0 a b arrel w orl d. As a res ult, its bre a ke ve n p oi nt is n o w less t h a n $ 4 0 a b arrel, r o u g hl y h alf of w h at it w as i n 2 0 1 4.

Still, f or m a n y o w ners t he attracti o n of t he s h ale pl a ys h as b ee n t o o m uc h t o resist. S pe a ki n g at a L af a yette I nter n ati o n al Ce nter l u nc he o n, Davi d Pa y ne, vice presi de nt of drilli n g & c o m pleti o ns at C he vr o n, s ai d s o met hi n g h a d t o c h a n ge w he n t he b ott o m fell o ut i n 2 0 1 4. “ We were all as a n i n d ustr y getti n g a little f at a n d a little sl o p p y i n r u n ni n g o ur b usi nesses, a n d all of us were c h asi n g v ol u me. e n t he oil price fell. ere w as n o w a y we c o ul d c o nti n ue t o i nvest as a n i n d ustr y at a 2 % rate of ret ur n. We were all he a de d o ff a cli ff a n d n o ne of us n otice d. S o t here are s o me t hi n gs we re all y h ave t o d o di ff ere ntl y g oi n g f or w ar d t o t ur n t h at ar o u n d.”

W hile t he Per mi a n B asi n is b y f ar t he m ost attractive i nl a n d pr os p ect f or oil pr o d ucti o n, Pa y ne s a ys rates of ret ur n t here are n’t m uc h b etter.

It’s all a b o ut v ol u me, m a de p ossi ble b y re v ol uti o n ar y a dv a nces i n frac ki n g tec h n ol o g y t h at are j ust n o w bei n g f ull y re ali z e d. “ ere’s e n o u g h o ut t here t o de vel o p f or t he ne xt 4 0 or 5 0 ye ars,”

W H E R E T H E M O N E Y I S: S h al e pl a y s — p arti c ul arl y t h e P er mi a n B a si n — ar e attr a cti n g o w n er s i n dr o v e s. L ar g el y c o nt ai n e d i n w e st er n T e x a s a n d s o ut h e a st er n N e w M e xi c o, t h e s h al e h a s e x p eri e n c e d a r e vi v al of a cti vit y a s t h e oil a n d g a s i n d u str y’ s i nt er e st i n u n c o n v e nti o n al r e s o ur c e s gr o w s al o n g wit h n e w t e c h n ol o gi e s.

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N E W S:

OI L I N D U S T R Y

i n j ust a fe w ver y l ar ge b as kets, we’ d re all y be h urti n g a n d scra m bli n g.

B y diversif yi n g a n d h avi n g a ver y di ffere nt clie nt b ase, a n d g oi n g i nt o t he mi dstre a m a n d s h ale si des of t he b usi ness, we h ave a m uc h l ar ger p o ol t h at we’re g oi n g after.”

Da n os is als o t a ki n g a m ore i nte grate d a p pr o ac h t o its ser vices. “ We’re n ot j ust o perati n g t he f acilit y or b uil di n g t he f acilit y, we c a n d o b ot h. We d o n’t desi g n it, b ut we c a n b uil d it, i nst all it a n d o perate it. O ur c ust o mers are s a yi n g,‘ W h y de al wit h t hree or f o ur or si x di ffere nt b usinesses if we ca n g o t o o ne?’ ” C he vr o n’s Pa y ne s a ys s u p plier p art ners hi ps cre ate gre ater e ffi cie ncies at t he drill site. “ We were m a n a gi n g m ore t h a n 1, 0 0 0 s u p pliers at oil’s pe a k,” he a d ds. “ We d o a l ot of ‘ d ue dili ge nce’ o n e ac h of o ur c o ntract ors, a n d t o d o all of t h at w or k o n t h at m a n y s u p pliers cre ates a gi a nt b ure a ucrac y t h at is di ffic ult t o n avi g ate a n d p ulls a l ot of m o ne y o ut of o ur b usi ness. S o we h ave t o get m ore e fficie nt i n t h at s p ace. We si m pl y ca n n ot r u n a n a ff or d a ble b usi ness a n d m a n a ge t h at m a n y s u p pliers.”

L O G A’s Bri g gs s a ys s o me c o m p a nies si m pl y c a n’t f oll o w o w ners t o t he s h ale pl a ys, a n d h ave little c h oice b ut t o re m ai n e ntre nc he d i n t he o ffs h ore oil m ar ket. fi at me a ns t he y h ave t o ri de o ut d o w nt ur ns w he n t he y c o me. “ Th ose are t he c o m p a nies t h at are reall y str u g gli n g ri g ht n o w,” he a d ds. “If y o ur w h ole b usi ness is cre w b o ats or s u p pl yi n g t o ols a n d e q ui p me nt t h at are s peci ficall y use d o ffs h ore, y o u c a n’t j ust s hift over t o t he Per mi a n.”

O ne s uc h c o m p a n y is m ari ne tra ns p ort ati o n ser vice c o m p a n y S ea Tra n Mari ne i n Ne w I beri a. C E O Bl a ke Mi g ue z s a ys his c o m p a n y h as bee n f orce d t o a d a pt b y l o o ki n g f or e fficie ncies i n its o perati o ns a n d c utti n g e q ui p me nt a n d st a ff. The c o m p a n y h as sl as he d its e m pl o yees fr o m 2 0 0 i n 2 0 1 4 d o w n t o 7 5 t o d a y, i ncl u di n g b ot h o ns h ore st a ff a n d o ffs h ore o perat ors. S e a Tra n h as als o e x p a n de d its f o ot pri nt b y p urs ui n g w or k o utsi de t he oil a n d g as m ar ket.

Des pite all t h at, t he c o m p a n y is still feeli n g t he strai n. “ We’ve a d a pte d d o w n t o s uc h a le vel t h at s o me t hi n gs are n ot s ust ai n a ble at o ur c urre nt re ve n ue rates,” Mi g ue z s a ys.

A C l ea r e r P a t h

I n a n u n pr e di ct a bl e b u si n e s s l a n d s c a p e, y o u n e e d a d e di c at e d t e a m t o h el p y o u s e e t h e f or e st f or t h e tr e e s.

W e o ff er di v er s e

s er vi c e s t o g ui d e y o u al o n g t h e cl o u d e d p at h of c o m pl e x r e g ul ati o n s, e v er - c h a n gi n g t e c h n ol o g y a n d c o n st a ntl y e v ol vi n g pr a cti c e s – n e v er str a yi n g fr o m t h e b ott o m li n e t h at m a p s it all. a s s u ra n c e

–

c o n s ul t in g

–

t ax

–

t e c h n o lo g y

–

p n c p a .c o m

P o s t le t h w a it e & N e t t e r v ille , A P r o f e s s i o na l A c c o u n t in g C o r p o r a t i on

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1 0 1 2i n d u str yr e p ort. c o m

DI V E R SI F YI N G C LI E N T E L E: D a n o s i n Gr a y, L o ui si a n a, h a s l o st a fr a cti o n of it s e m pl o y e e s si n c e t h e d o w nt ur n, l ar g el y d u e t o t h e r e sili e n c y of it s b u si n e s s m o d el. Pri or t o t h e oil b u st, a b o ut 8 0 % of D a n o s’ b u si n e s s w a s all o c at e d t o t hr e e or f o ur cli e nt s; t o d a y, it’ s s pr e a d a cr o s s 2 0 cli e nt s.

C O U RTE S Y D A N O S

“ At s o me p oi nt, t here’s g ot t o be s o me t y pe of [rate] c orrecti o n t o h ave a s ust ai n a ble a m o u nt of re ve n ue. We’re n ot t al ki n g a b o ut drastic i ncre ases of t he c ost t o o ur clie nts, b ut we nee d t o at le ast c over o ur c ost a n d t ur n s o me pr o fit s o we c a n kee p o ur le n di n g i nstit uti o ns h a p p y.” “ Wit h t he price of oil g oi n g b ac k u p t his ne xt ye ar I t hi n k y o u’ll st art seei n g t he o p erat ors s a yi n g,‘ Yo u’re still getti n g o ur ser vices f or c he a p. We j ust c a n’t d o t he m f or u n der bre a k e ve n a n y m ore.’”

Of c o urse, s o me o p erat ors h ave alre a d y s h uttere d t heir b usi nesses i n re acti o n t o d wi n dli n g pr o fit m ar gi ns.

1 0 1 2i n d u str yr e p ort. c o m

C O M MI T T E D T O T H E G U L F Des pite a m ass e x o d us fr o m t he o ffs h ore m ar ket, B P’s

M al o ne re m ai ns ste a df astl y o pti mistic a b o ut o ffs h ore’s p ote nti al. Tec h n ol o g y is m a ki n g u n prece de nte d a dv a nces, he s a ys, a n d t h at will c o nti n ue t o drive d o w n o perati n g c osts. “ fi at c o mes fr o m a first h a n d acc o u nt of t he a m a zi n g t hi n gs t h at o ur ge oscie ntists, e n gi neers a n d d at a a n al ysts are d oi n g t o drive d o w n t he c ost of dee p w ater s u p pl y, gr o w t he res o urce b ase a n d e xec ute m ore e fficie nt l y,” he a d ds. “It h as yiel de d ne w e x pl orati o n s uccesses t hr o u g h o ur e xisti n g le ases, be y o n d w h at we pre vi o usl y t h o u g ht w as p ossi ble.

I n a ret ur n- drive n b usi ness, M al o ne s a ys, t he c o m p a n y nee ds t o e m brace t h at mi n dset. “ Dee p w ater i nvest me nts a n d ret ur ns h ave bee n a n d will re m ai n c o m petitive f or dec a des t o c o me, a n d t his b asic all y rem ai ns strate gic t o o ur i n d ustr y a n d t o B P,” he s a ys. “ The G ulf of Me xic o re m ai ns a vit al a n d i m p ort a nt h y dr oc ar b o n b asi n f or t he U. S.”

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NEWS: GOVERNMENT

The wild card in the game Facing a new set of rules, ITEP stumbles forward.

D

BY DAVID JACOBS

ec.12, 2017, was a historic day for Louisiana's lucrative Industrial Tax Exemption Program.

For the first time, the state Board of Commerce and Industry approved ITEP exemptions for projects launched after June 26, 2016, the day Gov.John Bel Edwards gave lo­ cal governments the right to choose whether their local property taxes would be sacrificed in the name of economic development.

"We live in a new industrial cax exemption world in Louisiana;' says C&I Board President Steve Wind­ ham.

The board approved the appli­ cations without controversy. But it cook a year and a half to get to this point, which helps explain why com­ pany executives aren't sure if they can still rely on the program to give their projects a financial boost.

"I don't think [the uncertainty] is holding up projects;' Windham says.

"I do think that they are nervous.n Greg Bowser, president of the Louisiana Chemical Association, offers a less tactful assessment.

"It's a terrible process;' Bowser says. "It has almost made the pro­ gram useless:'

school board, parish and, where applicable, municipal government­ have a say in the process. They can limit a company's exemption or reject its application outright before it gees to the C&I Board and, ulti­ mately, the governor.

"When you look ac what you have to go through, it's unbeliev­ able;' Bowser says. "You've got to get approval from all che local governing authorities. They're not sure what the process is.Half of them have never even heard of a 10-year tax exempcion.n Bowser wonders what will happen if different entities approve differ­ ent amounts. He says companies considering projects in Louisiana are assuming they won't receive any ITEP benefits, since they don't know what co expect.

Michael Hayes, who manages government and industry affairs for Sasol's North American operations, says a project chat's paid for on a company's balance sheet can tolerate uncertainty longer than one being financed by lenders.

"What the governor's trying to do is admirable;' he says.

But companies have never been required to show the return on in­ vestment for tax abatements, Hayes

TOLERATING UNCERTAINTY ITEP offers local property tax exemptions to manufacturers that make capital investments. Compa­ nies say property tax abatements are one of the factors considered when deciding where, or if, they will build.

"This is a critically important program;' says Louisiana Econom­ ic Development Secretary Don Pierson.

In che past, companies that made qualifying investments could avoid paying property taxes on that investment for 10 years. Now, new projects are eligible for a 100% exemption for the first five years of che project's life and a possible three­ year extension capped at 80%.

The biggest change is that local taxing bodies-the sheriff's office, 34

10/12 INDUSTRY REPORT • FIRST QUARTER 2018

adds. He says industry leaders plan to commission a third-party study examining the ROI. Pierson, the state economic development chief, says companies should be willing to be accountable and clearly state what parishes are getting in exchange for the tax break.

But he realizes many industry offi­ cials aren't accustomed to interacting with local government.

LED has created templates for the contracts and resolutions needed

co show compliance with the new guidelines.

"Parishes have always been in competition for investments;' Pier­ son says."The solutions for commu­ nities [under the new system] are likely to not be 'one size fies all; but rather what matches the comfort zone of a community:' DIFFERENT PROCESSES FOR DIFFERENT PLACES "Everyone is in this learning curve;' says Russell Richardson, senior vice president of business development wich the Baton Rouge Area Chamber. "There could be proj­ ects ouc there that companies are waiting to disclose once they know more about the predictability of the program.n Parishes that have addressed this issue tend to fall into one of two extremes, says Broderick Bagert, spokesman for Together Louisiana, which has been critical of the program. Some, like West Felici­ ana, are essentially offering a blank check, saying they will approve every qualifying project at the maximum allowed. Others, like Ascension, are reviewing each project on a case­ by-case basis, which doesn't give companies much predictability.

Ease Baton Rouge officials have 1012industryreport.com

“I d e all y, t h e pr o c e s s s h o ul d t a k e a b o ut ei g ht w e e k s . T hi s o n e t o o k al m o st f o ur m o nt h s.”

K A T E M A C A R T H U R,

N ot hi n g r u n s s m o ot h er t h a n a w ell- oil e d m a c hi n e.

C E O, A s c e n si o n E c o n o mi c D e v el o p m e nt C or p.

disc usse d cre ati n g a m atri x t h at w o ul d s pell o ut f or c o m p a nies e x actl y w h at t he y c a n e x p ect t o get.

B a gert s u g gests setti n g s p eci fic cri teri a, s uc h as a mi ni m u m of five j o bs cre ate d b y t he pr oject or a m a xi m u m e xe m pti o n of $ 2 0 0, 0 0 0 p er ne w j o b.

Of t he ni ne I T E P pr ojects gra nte d a p pr ov al b y l oc al e ntities a n d t he st ate I & C b o ar d, f o ur were s he p her de d b y Asce nsi o n Ec o n o mic De vel o p me nt C or p. C E O K ate M ac Art h ur. S he s a ys l oc al o ffici als disc usse d cre ati n g a m atri x b ut c o ul d n’t a gree o n t he criteri a, s o t he pe n di n g pr ojects were a p pr ove d se p aratel y b y e ac h t a xi n g b o d y.

“I de all y, t he pr ocess s h o ul d t a ke a b o ut ei g ht wee ks,” s he s a ys. “ fii s o ne t o o k al m ost f o ur m o nt hs.”

M ac Art h ur h o pes t o s p ee d u p t he pr ocess i n t he f ut ure. E ac h pr oject will nee d a c o ncrete n o n discl os ure a gree me nt, a n d l oc al o ffici als h o p e f ull y will tr ust A E D C t o a n al y z e t he pr oject a n d descri be it acc uratel y, s he s a ys. “ Th at’s n ot t he i de al pr ocess,” M ac Art h ur s a ys. “ B ut I d o n’t k n o w w h at t he i de al pr ocess l o o ks li ke.”

S he s a ys s he’s he ar d “r u m ors” t h at c o m p a nies are del a yi n g pl a n ne d e x p a nsi o ns, b ut n o o ne h as t ol d her t he y’re n ot m ovi n g f or w ar d wit h a pr oject bec a use of t he I T E P u ncer t ai nt y.

C alc asie u Paris h h as f or me d a n I T E P re vie w c o m mittee. Its first pr oject, a P hilli ps 6 6 re fi ner y

e x p a nsi o n, w as a p pr ove d f or t he f ull e xe m pti o n b y t he C &I b o ar d i n Dece m b er.

The c o m mittee is le d b y eit her t he presi de nt or vice presi de nt of t he S o ut h west L o uisi a n a Ec o n o mic De vel o p me nt Alli a nce a n d i ncl u des re prese nt atives of t he p olice j ur y, sc h o ol b o ar d a n d s heri ff, al o n g wit h t he rele v a nt m u nici p alit y if a pr oject is wit hi n its b or ders. The re prese nt atives, all s w or n t o secrec y, meet wit h c o m p a n y o ffici als a n d re vie w L E D’s pr oject descri pti o n b ef ore a greei n g t o a rec o m me n d ati o n t h at me m b er b o dies w o ul d b e e x p ecte d t o a p pr ove. “ Th at t a kes t he p olitics o ut of it,” s a ys alli a nce vice presi de nt R. B. S mit h. “ The fee d b ac k I’ve g otte n s o f ar [fr o m i n d ustr y] is,‘ Wo w, we ne ver t h o u g ht t his w as g oi n g t o w or k as well as it di d.’”

C alc asie u Paris h A d mi nistrat or Br ya n B e a m s a ys t he g o al is t o pr o m ote j o b cre ati o n a n d rete nti o n w hile av oi di n g gra nti n g e xe m pti o ns f or mi n or w or k or r o uti ne m ai nten a nce. He re ali z es t he st ate’s ne w re q uire me nts cre ate a “ wil d c ar d” t h at c o ul d m a ke c o m p a nies ner v o us, b ut n otes t h at l oc al i n p ut is t he n or m i n ot her st ates wit h si mil ar pr o gra ms.

“I t hi n k if we’re c o nsiste nt a n d f air i n h o w we a p pl y t he criteri a,” B e a m s a ys, “t h at will c al m a n y a n xieties t h at t he i n d ustries here m a y h ave.”

“I t hi n k if w e’r e c o n si st e nt a n d f air i n h o w w e a p pl y t h e crit eri a, t h at will c al m a n y a n xi eti e s t h at t h e i n d u stri e s h er e m a y h a v e.”

B RI A N B E A M, C al c a si e u P ari s h A d mi ni str at or

E xt e n d e q ui p m e nt lif e | D e cr e as e d o w nti m e |I m pr o v e s af et y

I s s u e D at e: 3 Q R T 2 0 1 7 A d 3 pr o of # 1

• Ple ase res po n d by e- m ail or f ax wit h yo ur a p prov al or mi nor revisio ns.

• A D WILL R U N A S I S u nless a p prov al or fi n al revisio ns are receive d by t he close of b usi ness to d ay.

• A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees.

C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 7. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

R E NT AL S

LEE CEL A N O

S A L E S • P A R T S • S E R VI C E

T H E L E A DI N G P R O VI D E R O F H Y D R A U LI C C R A N E P A R T S 2 0 Y e ar s of E x p eri e n c e Pr o vi di n g 1 5 t o n O S H A C erti fi e d R e nt al Cr a n e s

FAX

1 0 1 2i n d u str yr e p ort. c o m

•

T OLL F REE 8 0 0. 3 2 6. 9 0 9 4 • L O C AL 2 2 5. 6 7 5. 5 6 6 9 2 2 5. 6 7 5. 5 5 3 3 • E M AIL i nf o @ c h e r r y pi c k e r p a r t s. c o m

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P R OJ E C TS B A C KI N G O U T: L o w oil pri c e s a n d a s at ur at e d n at ur al g a s m ar k et m a d e S a s ol’ s $ 1 5 billi o n g a s-t oli q ui d s i n v e st m e nt i m pr a cti c al.

T H E A S S O CI A T E D P R E S S

f or s p ot L N G i n Asi a i n t hree t o f o ur ye ars. Yo u’re seei n g s o me f airl y s u bst a nti al re b o u n di n g i n price.”

M ost e x perts a gree t h at a n L N G s h ort a ge is i m mi ne nt b y 2 0 2 2- 2 3, w hic h is w h y Fre nc h a n d ot hers are p us hi n g f or t he ne xt w ave of pr ojects t o get o ff t he gr o u n d. “ These pr ojects t a ke si x or se ve n ye ars t o b uil d. Yo u c a n’t j ust fli p a s witc h w he n de m a n d arrives i n 2 0 2 3.”

Pr o g n ostic at ors i n B P’s E ner g y O utl o o k 2 0 3 5 s a y gl o b ali z ati o n will be t he pri m ar y re as o n f or f ut ure i ncre ases i n n at ural g as de m a n d. “ The ra pi d gr o wt h i n t he U. S. a n d A ustrali a is li kel y t o drive bi g str uc t ural c h a n ges i n t he gl o b al n at ural g as m ar kets,” s a ys M ar k Fi nle y, B P’s ge neral m a n a ger of Gl o b al E ner g y M ar kets, “ wit h L N G pl a yi n g t he L N G. Th at als o m a de it di ffic ult f or r ole of c o n necti n g w h at are c urre ntl y y o u t o raise c a pit al t o b uil d t hese disc o n necte d re gi o n al m ar ket pl aces c ostl y pl a nts.” t hr o u g h gr o wi n g tra de a n d b uil di n g I n t he pre vi o us hi g h- d oll ar oil m ore of a gl o b al g as m ar ket.” e nvir o n me nt, L N G s u p pliers c o ul d I n rece nt m o nt hs, t he L a ke e asil y e nter i nt o 2 0- ye ar c o ntracts C h arles- are a L N G m ar ket h as see n wit h clie nts. Th at all c h a n ge d i n s o me si g ns of life. Ve nt ure Gl o b al 2 0 1 4, Sc ott s a ys.

L N G’s C alc asie u Pass L N G pr oject a n d Tell uri a n I nc.’s T H E L O N G- T E R M P L A Y “ E v e n wit h oil Drift w o o d L N G Jas o n Fre nc h, pr oject — b ot h t o be n o l o n g er at c h air m a n of t he l oc ate d i n s o ut h west L o uisi a n a E ner g y L o uisi a n a —receive d $ 1 0 0 a b arr el E x p ort Ass oci ati o n, sc he d uli n g n otices t h er e i s still a d mits t he bra kes fr o m t he Fe deral h ave b ee n t a p p e d a si g ni fi c a nt a n d E ner g y Re g ul at or y bit b y L N G o w ners, C o m missi o n, pr o ri si n g d e m a n d vi di n g s o me o pti b ut i nsists t h at de m a n d is risi n g. mis m t h at t he y will f or L N G i n M ost f orec asters s o o n receive pert h e gl o b al ste a df astl y pre dict mits. Fre nc h h o pes t h at m ar ket de m a n d t h at c o nstr ucti o n at m ar k et pl a c e.” will s pi ke i n t he e ar t he Drift w o o d site — J A S O N F R E N C H, c h air m a n, l y 2 0 2 0s, a n d t h at’s c o ul d be gi n b y t he L o ui si a n a E n er g y E x p ort a b o ut h o w l o n g it first h alf of 2 0 1 9.

A s s o ci ati o n w o ul d t a ke t o b uil d Ne ar b y, C he niere a pl a nt.

E ner g y’s S a bi ne Pass li q uef acti o n Fre nc h feels t here’s re all y n o o perati o n is alre a d y deliveri n g c o m p aris o n b et wee n G T L a n d pr o d uct ar o u n d t he gl o be a n d h as L N G. “ Eve n wit h oil n o l o n ger at a n ot her t w o pr o d ucti o n trai ns o n $ 1 0 0 a b arrel t here is still si g ni fic a nt t he w a y, w hile t he C a mer o n L N G a n d risi n g de m a n d f or L N G i n t he pr oject s o ut h of L a ke C h arles is gl o b al m ar ket pl ace,” he a d ds. “ W hile u n der c o nstr ucti o n. t here are t h ose w h o w o ul d ar g ue Still, f or t he s h ort-ter m Sc ott s a ys t here’s a gl ut, i n rece nt m o nt hs we’re t he price of oil will re m ai n a dra g seei n g s o me of t he hi g hest prices o n t he m ar ket as a w h ole, m a ki n g

Sil v e r li ni n g

L a k e C h arl e s b a n k s o n u p c o mi n g L N G pr oj e ct s i n t h e w a k e of S a s ol’ s G T L p ull o ut.

B Y S A M B A R N ES

S

as ol’s decisi o n t o a b a n d o n pl a ns f or a $ 1 5 billi o n g as-t o-li q ui ds pl a nt i n L a ke C h arles l ate l ast ye ar w as esse nti all y a n o ne ve nt, as ec o n o mists a n d i n d us tr y le a ders h a d f or m o nt hs pre dicte d t he pr oject’s c a ncell ati o n. L o w oil prices a n d a s at urate d n at ural g as m ar ket h a d m a de t he G T L i nvest me nt i m practic al l o n g a g o.

I n a writte n st ate me nt, R ussell J o h ns o n, se ni or m a n a ger of c or p orate a ff airs f or S as ol’s N ort h A meric a n O perati o ns i n H o ust o n, s a ys t he v al ue pr o p ositi o n f or S as ol t o b uil d ne w G T L pr ojects w as “ u nec o n o mic a g ai nst a v ol atile e xter n al e nvir o n me nt a n d a str uct ural s hift t o a l o w oil price e nvir o n me nt.” fie G T L pr ocess c o nverts n at ural g as i nt o diesel a n d ot her re fi ne d pr o d ucts.

H a d it bee n c o nstr ucte d, t he pr oject w o ul d h ave b ee n t he bi g gest i n d ustri al i nvest me nt i n L o uisi a n a hist or y. I nste a d, S as ol s ai d it w o ul d f oc us o n c o m pleti n g its $ 1 1. 1 billi o n

36

et h a ne crac ker at t he L a ke C h arles c o m ple x.

Ec o n o mist L ore n Sc ott of L ore n C. Sc ott & Ass oci ates i n B at o n R o u ge h a d alre a d y c o nsi dere d t he li keli h o o d t h at t he G T L pr oject w o ul d n’t h a p p e n i n his L o uisi a n a Ec o n o mic O utl o o k: 2 0 1 8- 1 9 . “ Oil prices w o ul d nee d t o b e si g ni fic a ntl y hi g her t o m a ke a n at ural g as-t og as oli ne pr oject m a ke se nse,” Sc ott s a ys. “ We h a d alre a d y disc o u nte d t h at a n d ass u me d it w as n ot g oi n g t o h a p p e n.”

F urt her m ore, Sc ott pre dicts t h at si mil ar f act ors c o ul d i m p act, or at le ast del a y, a n ot her m aj or c o ntri b ut or t o s o ut h west L o uisi a n a’s ec o n o mic f ut ure: li q ue fie d n at ural g as. “ W he n t he price of oil dr o p p e d, it c h a n ge d t he c o m p etitive d y n a mics f or t he L N G pl a nts,” he s a ys. “ M ore i m p ort a ntl y, it m a de it di ffic ult f or L N G o w ners t o m a ke a pr o fit. Yo u are n o l o n ger c o m p etitive wit h R us si a a n d s o me of t he Mi d dle E aster n c o u ntries w he n it c o mes t o selli n g

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1 0 1 2i n d u str yr e p ort. c o m

NE XT STEPS S o w h at d oes S as ol’s p ull o ut a n d L N G’s u ncert ai n f ut ure me a n f or L a ke C h arles? I niti all y, Sc ott pre dicts t he cit y will e x perie nce a bit of a n ec o n o mic l ull i n 2 0 1 8 as a v ariet y of pr ojects are c o m plete d a n d fe w are t a p pe d t o bre a k gr o u n d. C o nstr ucti o n- wise, t h at tra nsl ates t o a decli ne of a b o ut 5, 0 0 0 j o bs fr o m 1 4, 5 0 0 t o 9, 5 0 0.

Thi n gs will li kel y pic k u p l ate i n t he ye ar. “ D uri n g t he l atter p art of 2 0 1 8 a n d e arl y p art of 2 0 1 9 t w o or t hree of t hese L N G f acilities c o ul d deci de t o p ull t he tri g ger a n d st art b uil di n g s o t h at t heir pl a nts will c o me o n li ne b y 2 0 2 2,” Sc ott s a ys. “ The y’re ti mi n g t he c o nstr ucti o n s o t h at t he y’ll b e re a d y ri g ht a b o ut t he ti me we st art r u n ni n g i nt o a s h ort a ge.”

I n t he me a nti me, L N G o w ners are scra m bli n g t o fi n d i n n ov ative w a ys t o raise c a pit al a n d re- e x a m i ni n g t heir c ust o mer b ase, w hic h will ulti m atel y deter mi ne w h o bre a ks gr o u n d first. Tell uri a n is raisi n g c a pit al b y o fferi n g e q uit y i n its pr ojects, s a ys Fre nc h, w h o is als o t he c o m p a n y’s vice presi de nt of g over n me nt a n d p u blic a ff airs. “ Thi s is a u ni q ue b usi ness m o del i n t he U. S. L N G m ar ket,” he a d ds. “ We’re o fferi n g pr oject e q uit y t o o ur c us t o mers b y act u all y m a ki n g t he m a n o w ner, w hic h is w h at a l ot of gl o b al c ust o mers w a nt.”

I n s uc h a n arra n ge me nt, a b o ut 7 0 % of t he o perati o n w o ul d b e o w ne d b y o utsi de c ust o mers, wit h t he re m ai ni n g 3 0 % of c a p acit y s ol d i n t he s p ot m ar ket. Th at’s a ne w a p pr o ac h f or U. S. L N G. “It all o ws us t o t a ke o n less de bt a n d give c ust o mers cert ai nt y i n price. If t he y’re o w ners, t he y c a n l oc k it i n,” s a ys Fre nc h.

It als o fits i nt o a p ortf oli o of o fferi n gs at Tell uri a n t h at is c o m prise d of l o n g-ter m, mi d-ter m a n d s h ort-ter m c o ntracts. “I t hi n k t h at’s w h at y o u’re seei n g acr oss t he i n d ustr y … m ore 1 0 1 2i n d u str yr e p ort. c o m

“ Oil p ri c e s w o ul d needto be si g ni fi c a ntl y hi g h e r t o make a n at u r al g a s t o - g a s oli n e p r oj e ct m a k e s e n s e.”

— L O R E N S C O T T, e c o n o mi st, L or e n C. S c ott & A s s o ci at e s

D O N K A D AI R

i nvest me nts i n c a pit al m ore di ffic ult. “ F ol ks c a n’t get 2 0- ye ar c o ntracts, w hic h i n t ur n me a ns it’s di ffic ult f or t he m t o raise t he billi o ns of d oll ars t o b uil d t heir f acilities. fie price of oil h as w or ke d a g ai nst t he ei g ht or ni ne L N G pr ojects t h at are still at t he F E E D st a ge.”

of a p ortf oli o a p pr o ac h t o meeti n g de m a n d. The i n d ustr y is a d a pti n g t o ne w m ar ket c o n diti o ns, a n d t h at’s w h y I’ m c o n fi de nt it will c o nti n ue t o gr o w a n d b e s uccessf ul.”

Re g ar dless of m ar ket c o n diti o ns, h o we ver, it re m ai ns u nli kel y t h at a m aj orit y of t he st ate’s a n n o u nce d L N G pr ojects will bre a k gr o u n d. “ Give n t he n at ure of t he gr o wt h a n d de m a n d f or L N G, a n d t he a m o u nt t h at’s c o mi n g o n li ne, it’s j ust h ar d t o

see t h at t he m ar ket c a n h a n dle ei g ht of t he m,” Sc ott s a ys.

A N L N G T S U N A MI Ge or ge S wift, presi de nt / C E O of t he S o ut h west L o uisi a n a Ec o n o mic De vel o p me nt Alli a nce, s a ys 1 0 ye ars a g o t he c a ncell ati o n of a m ulti bil li o n- d oll ar G T L pl a nt w o ul d h ave b ee n c at astr o p hic f or L a ke C h arles.

Th at’s n ot t he c ase t o d a y. “ S o me o ne s ai d o nl y i n s o ut h west L o uisi a n a

c o ul d y o u l ose a $ 1 5 billi o n pl a nt a n d n ot be t o o u pset a b o ut it,” S wift s a ys. “ S ure, t h at’s a l oss of 7 5 0 perm a ne nt j o bs, b ut we h ave $ 6 5 billi o n of pr ojects i n t he q ue ue. We h ave t o kee p t hi n gs i n pers pective.”

W hile m a n y are w o n deri n g w h at S as ol pl a ns t o d o wit h t he se ver al- h u n dre d acres of pri me i n d ustri al pr o pert y pre vi o usl y all oc ate d f or t he pl a nt, J o h ns o n s a ys n ot hi n g de fi ni tive is pl a n ne d f or t he l a n d, at le ast

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37

N E W S:

P R OJ E C TS

D O N K A D AI R

“I k n o w t h e s e c o n str u cti o n pr oj e ct s ar e g oi n g t o d wi n dl e o n e d a y.”

— N EI L A S PI N W A L L, c h a n c ell or, S O W E L A T e c h ni c al C o m m u nit y C oll e g e

5, 0 0 0

38

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

“ S o m e o n e s ai d o nl y i n s o ut h w e st L o ui si a n a c o ul d y o u l o s e a $ 1 5 billi o n pl a nt a n d n ot b e t o o u p s et a b o ut it.”

— G E O R G E S WI F T, pr e si d e nt/ C E O, S o ut h w e st L o ui si a n a E c o n o mi c D e v el o p m e nt Alli a n c e

LEE CEL A N O

f or n o w. “ The L C C P ( L a ke C h arles h ave m ore t h a n 5, 0 0 0 c o nstr ucti o n C he mic als Pr oject) is est a blis hi n g w or kers o n site.”

S as ol’s L a ke C h arles l oc ati o n as a n As L N G w or k b e gi ns t o pic k u p, i nte grate d, m ulti- asset site t h at will S O W E L A Tec h nic al C o m m u nit y e n a ble gr o wt h f or dec a des t o c o me, C olle ge C h a ncell or Neil As pi n w all pr ovi di n g a strate gic pl atf or m f or feels g o o d a b o ut his f acilit y’s a bilit y f urt her i nvest me nt i n o ur c he mit o acc o m m o d ate w or kf orce nee ds i n c als b usi ness,” he s a ys i n a writte n t he are a f or at le ast t he ne xt se ve n st ate me nt. ye ars. The sc h o ol rece ntl y a d de d a S as ol’s L C C P c o nsists of a 1. 5 ne w $ 2 0 milli o n tra des a n d crafts milli o n-t o n- per ye ar et h a ne crac ker trai ni n g ce nter a n d is c o nti n u o usl y a n d si x d o w nstre a m c he mic al u nits, e v olvi n g i n res p o nse t o i n d ustr y a n d is c urre ntl y u n der c o nstr ucti o n de m a n d. a dj ace nt t o S as ol’s e xisti n g c he mic al Rece ntl y, S O W E L A ra m p e d u p o perati o ns. The pr oject’s c urre nt its pr ocess tec h n ol o g y c urric ul u m. price t a g is $ 1 1. 1 3 “ We cre ate d a f astbilli o n, i ncl u di n g a n trac k pr o gra m w here a d diti o n al $ 1 3 0 milli o n st u de nts c a n e ar n a n e x pe n dit ure rel ate d ass oci ate of a p plie d Pr oj e ct e d d e cli n e i n 2 0 1 8 t o H urric a ne H ar ve y. scie nce i n pr ocess d e m a n d f or c o n str u cti o n j o b s i n s o ut h w e st J o h ns o n e x pects fe w tec h n ol o g y i n j ust 1 6 L o ui si a n a a s m aj or t o n o c h a n ges i n t he wee ks,” he s a ys. “ Th at’s pr oj e ct s wi n d u p sc o pe of t he e xisti n g a n ei g ht- h o ur- a- d a y pl a nt, wit h pr o d ucti o n pr o gra m, b ut y o u h ave f orec asts o n t ar get wit h pre vi o us t o h ave a de gree t o p artici p ate.” St ua n n o u nce me nts. “ We h ave hire d de nts wit h b ac hel or’s a n d m aster’s o ur 5 0 0t h f ull-ti me S as ol e m pl o yee de grees are e nteri n g t he pr o gra m b e t o s u p p ort L C C P o p erati o ns a n d c a use t he y are attracte d b y st arti n g e x pect t o hire at le ast 2 0 0 m ore. Re s al aries t h at avera ge $ 7 5, 0 0 0. g ar di n g c o nstr ucti o n j o bs, we n o w A d diti o n all y, S O W E L A h as

u p gra de d its wel di n g f acilities, a n d a d de d m ac hi nist, mill wri g ht a n d r o d b usti n g pr o gra ms. F or e ac h of its pr o gra ms, S O W E L A m ai nt ai ns a pr o gra m a dvis or y c o m mittee c o m prise d of o w ner a n d i n d ustr y re pre se nt atives. fie c o m mittees c o nve ne e ac h q u arter t o re vie w c urric ul u m, pl ace me nt a n d rete nti o n rates. “ The y tell us h o w o ur gra d u ates are d oi n g, w h at we nee d t o c h a n ge a n d h o w

t he y see t heir b usi ness m o dels i n t he f ut ure,” As pi n w all s a ys.

F or t he l o n g ter m, he e x pects a p ara di g m s hift i n l a b or de m a n d as i n d ustri al i nvest me nt i ne vit a bl y r u ns o ut of ste a m, a d di n g t h at de m a n d fr o m t he L a ke C h arles me dic al a n d g a mi n g sect ors will t a ke u p t he sl ac k.

“I k n o w t hese c o nstr ucti o n pr ojects are g oi n g t o d wi n dle o ne d a y,” he a d ds. “ We’ll pic k u p a l ot of ne w per m a ne nt w or kers, b ut f or m a n y of t h ose pr o gra ms t he e nr oll me nt n u m bers are g oi n g t o decli ne. We’ve st arte d l o o ki n g at pr o gra ms w here we k n o w t he n u m bers will be m ore c o nsiste nt.”

1 0 1 2i n d u str yr e p ort. c o m

• A D WILL R U N A S I S u nless a p prov al or fi n al revisio ns are receive d by t he close of b usi ness to d ay.

• A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees.

C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 8. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

G E O T E C H NI C A L | C O N S T R U C TI O N M A T E RI A L S T E S TI N G

Q U A LI T Y

VAL UE

I N N O V A TI V E S O L U TI O N S

W W W. S O E A R T H. C O M • 1 0 1 2i n d u str yr e p ort. c o m

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N E W S:

GL O B AL M A R KE TS

J et s et

E x x o n M o bil’ s n e w a vi ati o n l u bri c ati o n pl a nt i n L o ui si a n a i s d e si g n e d t o s ati sf y a gr o wi n g gl o b al d e m a n d.

B Y D A VI D J A C O B S

C O U R T E S Y E X X O N M O BI L/ J A NI C E R U B E N

E

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x x o n M o bil cele brat e d t he first birt h d a y of its ne west B at o n R o u ge- are a pl a nt l ast s u m mer wit h a n o pe n h o use f or p u blic o ffici als a n d t he me di a. fie 9 0, 0 0 0-s q u are-f o ot P ort Alle n avi ati o n l u bric ati o n pl a nt w as c o m missi o ne d i n 2 0 1 5 a n d st art e d pr o d ucti o n i n J ul y 2 0 1 6. The ble n di n g, p ac k a gi n g a n d w are h o use o perati o n pr o d uces a b o ut five mil li o n g all o ns of jet t ur bi ne l u bric a nts a n n u all y, o ffici als s a y, a n d is p art of a $ 2 0 0 milli o n i nvest me nt.

E x x o n M o bil w a nte d t o ste p u p pr o d ucti o n of its M o bil Jet avi ati o n e n gi ne l u bric a nts t o s atisf y a gr o wi n g gl o b al m ar ket. De m a n d f or a dv a nce d avi ati o n f uels a n d l u bric a nts is e x pecte d t o i ncre ase 5 5 % b y 2 0 4 0, s a ys Na nc y C arls o n, vice presi de nt of avi ati o n a n d m ari ne at E x x o n M o bil F uels a n d L u bric a nts.

B ut w h y P ort Alle n? The a ns wer mi g ht be s u m m ari z e d wit h o ne of c or p orate A meric a’s f av orite b u z z w or ds: s y ner g y.

The site w as c h ose n l ar gel y be c a use it c o ul d e asil y c o o perate wit h t he c o m p a n y’s B at o n R o u ge c he mic al pl a nt, e x pl ai ns Sc ott Gle as o n, w h o m a n a ges t he P ort Alle n l u bri c a nts c o m ple x. T w o i dle u nits at t he c he mic al pl a nt were rec o m missi o ne d t o pr ovi de t he b ase st oc k, w hic h is t he n s hi p pe d t o P ort Alle n i n t a n k c ars. The ne w pl a nt a n d t he ret o ole d c he mic al pl a nt u nits t o get her s u p p ort 4 5 ne w per m a ne nt direct j o bs a n d c ost a b o ut $ 2 0 0 milli o n, t he c o m p a n y s a ys.

S e veral t y pes of l u bric a nts are

G LI DI N G A L O N G: E x x o n M o bil e m pl o y e e D w a y n e St a nf or d/ T err y P a ul m o nit or s q u art s of j et oil m o vi n g d o w n t h e li n e at t h e c o m p a n y’ s $ 2 0 0 milli o n P ort All e n a vi ati o n l u bri c a nt s pl a nt.

1 0 1 2i n d u str yr e p ort. c o m

‘ G R O WI N G T H E G U L F’ E x x o n M o bil o ffici als s a y t he re ce nt P ort Alle n l u be pl a nt t o ur w as me a nt t o cele brate t he first ye ar of o perati o n. B ut hi g hli g hti n g t he ne w pl a nt als o gives t he m a c h a nce t o ar g ue f or a t a x cli m ate t h at e nc o ura ges s uc h i nvest me nts.

The P ort Alle n f acilit y is o ne of 1 1 E x x o n M o bil pr ojects w ort h a t ot al of $ 2 0 billi o n pl a n ne d f or L o uisi a n a a n d Te x as t hr o u g h 2 0 2 2, a w ave of i nvest me nt d u b be d “ Gr o wi n g t he G ulf ” t h at is me a nt t o c a pit ali z e o n l o w n at ural g as prices. Th at t ot al i ncl u des a $ 1 0 billi o n et h a ne crac ker, t o be o w ne d j oi ntl y wit h a S a u di Ara bi a n c or p orati o n, t h at w as c o nsi dere d f or L o uisi a n a b ut i nste a d will be b uilt ne ar C or p us C hristi.

E x x o n M o bil s a ys t he f av ora ble b usi ness cli m ate i n Te x as f act ore d i nt o t he decisi o n. “ E x x o n M o bil is a hi g hl y i ntegrate d or g a ni z ati o n, a n d t here is ge nerati o n al i nvest me nt o p p ort u nit y o n t he h ori z o n f or o ur c he m ic al o perati o ns i n t he G ulf C o ast are a,” s a ys E x x o n M o bil P u blic a n d G over n me nt A ff airs A dvis or L a n a Ve n a ble. “ W hile t he c o m p a n y m a de a rece nt decisi o n t o b uil d its et h a ne crac ker pr oject i n Te x as, we w a nt 1 0 1 2i n d u str yr e p ort. c o m

FA CTS A N D FI G U R E S: E x x o n M o bil’ s P ort All e n a vi ati o n l u bri c a nt s pl a nt F A C I L I T Y: T h e 9 0, 0 0 0- s q u ar e-f o ot pl a nt sit s o n 5 a cr e s a s p art of t h e P ort All e n l u b e bl e n di n g f a cilit y.

Pl a nt c o n str u cti o n w a s c o m mi s si o n e d i n t h e f all of 2 0 1 5, a n d pr o d u cti o n st art e d l a st s u m m er.

C O S T:

T ot al c o st of $ 2 0 0 milli o n i n cl u d e s t h e a vi ati o n pl a nt a n d u p gr a d e s at t h e E x x o n M o bil B at o n R o u g e c h e mi c al pl a nt, w hi c h s u p pli e s t h e b a s e st o c k s vi a t a n k c ar s.

C E L E B R A TI N G O N E Y E A R: T h e 9 0, 0 0 0- s q u ar e-f o ot P ort All e n a vi ati o n l u bri c ati o n pl a nt w a s c o m mi s si o n e d i n 2 0 1 5 a n d st art e d pr o d u cti o n i n J ul y 2 0 1 6.

P R O D U C T:

Pr o d u c e s a b o ut fi v e milli o n g all o n s of milit ar y- gr a d e M o bil J et oil a n n u all y, w hi c h gr e a s e s t h e t ur bi n e s of c o m m er ci al p a s s e n g er j et s. P a c k a g e o pti o n s i n cl u d e o n e- q u art c a n s, fi v e- g all o n p ail s, 5 5- g all o n dr u m s a n d 3 3 0- g all o n t ot e s.

P H O T O S C O U R T E S Y E X X O N M O BI L

use d i n avi ati o n. fie M o bil Jet oils pr o d uce d i n P ort Alle n are s ol d t o c o m merci al airli nes a n d use d t o gre ase jet e n gi ne t ur bi nes. Pr o d uct s peci fic ati o ns are set b y t he U. S. Nav y.

The c o m p a n y t o uts se veral fe at ures me a nt t o m a ke t he f acilit y m ore e nvir o n me nt all y s ust ai n a ble.

S o n n y F o urr o u x, t he avi ati o n pl a nt’s o perati o ns m a n a ger, s a ys t he f acilit y mi ni mi z es w ater us a ge b y c ollecti n g, tre ati n g a n d st ori n g st or m w ater f or use i n m ai nte n a nce. “ Hist oric all y, we m a y h ave use d t he m u nici p al w ater s u p pl y,” F o urr o u x s a ys. “ Thi s ne w pl a nt is b asic all y at z er o w ater us a ge, fr o m a pl a nt- m ai nte n a nce p ers p ective.”

The pl a nt als o utili z es n at ural d a y li g hti n g p a nels t o mi ni mi z e t he use of electric li g hti n g, Gle as o n s a ys.

A n d w he n electric li g hts are nee de d, e fficie nt L E D li g hti n g is use d, he s a ys. “ A n y w aste pr o d uct t h at’s ge nerate d i n t he pr ocesses is rec ycle d,” Gle as o n a d ds, “or re p ur p ose d f or a n ot her pr oject.”

L o uisi a n a t o c o m p ete f or f ut ure i nvest me nt t h at E x x o n M o bil m a y b e c o nsi deri n g.”

L o uisi a n a’s i n d ustri al pr o p ert y t a x e xe m pti o n pr o gra m, c o m m o nl y referre d t o as I T E P, will f act or i nt o t h ose decisi o ns, Ve n a ble a d ds. B ut t he pr o gra m is i n fl u x.

I T E P b e ne fits u ntil rece ntl y were d ole d o ut b y a st ate-le vel b o ar d wit h o ut l oc al c o nse nt. G ov. J o h n B el E d w ar ds h as give n l oc al t a xi n g a ut h orities a s a y i n t he pr ocess, w hic h s u p p orters of t he c h a n ge s a y is o nl y f air, si nce l oc al g over n me nts s h o ul der t he c osts.

B ut n o w, c o m p a nies m a y fi n d it di ffic ult t o pre dict h o w l ar ge of a t a x bre a k a give n pr oject will receive, if a n y. E ast B at o n R o u ge Paris h, f or e x a m ple, h as n ot fi n ali z e d t he

pr ocess it will use t o deter mi ne I T E P a w ar ds.

L ast ye ar, E x x o n M o bil wit h dre w a p plic ati o ns f or t he E ast B at o n R o u ge Paris h versi o n of t he E nter prise Z o ne pr o gra m, citi n g a l ac k of s u p p ort fr o m t he Metr o C o u ncil.

The c he mic al pl a nt ret o oli n g t o ser ve t he avi ati o n l u bric a nts pl a nt w as a m o n g t he pr ojects t h at w o ul d h ave b e ne fite d.

S ke ptics w h o s a y L o uisi a n a h as b ee n h a n di n g o ut w a y t o o m a n y t a x bre a ks f or pr ojects t h at w o ul d h ave h a p p e ne d a n y w a y welc o me gre ater scr uti n y. B ut i n d ustr y le a ders fe ar t he ref or m atte m pts will le a d t o a less st a ble, pre dict a ble a n d b usiness-frie n dl y e nvir o n me nt, n u d gi n g f ut ure i nvest me nts t o nei g h b ori n g st ates.

W O R K F O R C E: St aff e d b y 1 6 E x x o n M o bil e m pl o y e e s a n d f o ur c o n tr a ct or s. O n c e c h e mi c al pl a nt e x p a n si o n i s t a k e n i nt o a c c o u nt, t h e pr oj e ct pr o vi d e s a t ot al of 4 5 p er m an e nt n e w j o b s. C o n str u cti o n s u p p ort e d 4 0 0 t e m p or ar y j o b s.

M A R K E T:

M o bil J et oil s ar e s hi p p e d w orl d wi d e. D e m a n d f or t h e l u bri c a nt s i s e x p e ct e d t o i n cr e a s e 5 5 % b y 2 0 4 0.

I N C E N T I V E S:

T o s e c ur e t h e pr oj e ct, L o ui si a n a E c o n o mi c D e v el o p m e nt pr o vi d e d a M o d er ni z ati o n T a x Cr e d it v al u e d at $ 1. 8 milli o n a n d p a y a bl e o v er fi v e y e ar s, al o n g wit h c u st o mi z e d w or kf or c e tr ai ni n g fr o m L E D’ s F a st St art pr o gr a m. E x x o n M o bil al s o b e n e fit e d fr o m L o ui si a n a’ s E nt er pri s e Z o n e a n d I n d u stri al T a x E x e m pti o n i n c e nti v e pr o gr a m s, alt h o u g h t h e v al u e of t h o s e b e n e fit s i s n ot it e mi z e d b y pr oj e ct. T h e c o m p a n y wit h dr e w a n a p pli c ati o n f or a l o c al E nt er pri s e Z o n e b e n e fit fr o m E a st B at o n R o u g e P ari s h.

S o ur c e: E x x o n M o bil

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N E W S:

P R O F E S SI O N A L D E V E L O P M E N T

“It p r o vi d e d m e wit h a n o p p o rt u nit y t o m e et s o m e d y n a mi c w o m e n t h at w o r k i n t h e s a m e i n d u st r y.”

C o- O w n er, RI G- C H E M

D O N K A D AI R

— L O RI D A VI S,

A st e p u p f or w o m e n

A n e x e c uti v e pr o gr a m i n R o b ert b uil d s a b ett er f ut ur e f or e n er g y s e ct or W B E s.

B Y S A M B A R N ES

F

or a wee k i n N ove m b er, a gr o u p of 2 9 fe m ale le a ders fr o m t he U. S. e ner g y sect or met at S hell’s R o b ert, L o uisi a n a, trai ni n g a n d c o nfere nce ce nter f or a first- of-its- ki n d e x p eri me nt. fie i n a u g ural E ner g y E xec utive Pr o gra m, orc hestrate d b y t he Wo me n’s B usi ness E nter prise Nati o n al C o u ncil, i m merse d w o m e n’s b usi ness e nter prise ( W B E)

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atte n dees i n a c urric ul u m ai me d at i m pr ovi n g t heir m a n a geri al s killsets.

As a res ult, m aj or o w ners S hell, B P, C he vr o n a n d E x x o n M o bil h o p e t o s h a ke u p t heir b usi ness m o dels b y m a ki n g W B Es m ore c o m p etitive.

Li n dse y All, se ni or m a n a ger of m ar keti n g, pr o gra ms a n d b usi ness de vel o p me nt f or W B E N C i n B at o n R o u ge, s a ys t he pr o gra m is b ase d o n a 1 5- ye ar- ol d “i n d ustr y a g n ostic” pr o gra m at Dart m o ut h C olle ge’s

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Tuc k Sc h o ol of B usi ness, a n d i ncl u de d a mi x of lect ures, e x p ert p a nels a n d fiel d e xercises.

D uri n g t he five- d a y c o urse, pr ofess ors fr o m t he U niversit y of Te x as’ Mc C o m bs Sc h o ol of B usi ness le d e d uc ati o n al sessi o ns o n t o pics s uc h as m ar keti n g strate g y, decisi o n m a ki n g, strate gic m a n a ge me nt a n d fi n a nce. Partici p a nts als o t o ure d t he S hell f acilit y a n d liste ne d t o e xec utive p a nel disc ussi o ns i n t he e ve ni n gs. “ Thi s m ar ks o ur first i n d us tr y-s p eci fic i niti ative,” All s a ys. “ We were ver y c aref ul t o fi n d a u niversit y p art ner t h at h a d t he ri g ht e x p erie nce i n b ot h t he oil a n d g as i n d ustr y, as well as t he necess ar y c urric ul u m.”

S uccessf ul i n t heir o w n ri g ht, p ar tici p a nts i n t he pr o gra m alre a d y e ar n a n avera ge of $ 5 milli o n t o $ 3 0 mil li o n i n a n n u al s ales, a n d c a me fr o m as f ar a w a y as C alif or ni a, Ne w Yor k a n d C hic a g o. “ The c o m m o n t hre a d is

t h at t he y are all o w ners, o perat ors or C E Os a n d are c urre nt s u p pliers of t he e ner g y i n d ustr y,” All s a ys.

L ori Davis, c o- o w ner of oil fiel d c he mic al c o m p a n y RI G- C H E M i n H o u m a, s a ys it w as a bit of a j u g gli n g act t o t a ke a wee k-l o n g hi at us t o atte n d t he pr o gra m. “ D uri n g bre a ks a n d bet wee n cl asses, we’re all o n o ur p h o nes, tr yi n g t o t a ke c are of e m ails a n d j ust t o uc hi n g b ase t o m a ke s ure t h at o ur b usi nesses a n d clie nts are t a ke n c are of.”

Still, it w as ti me well s pe nt. “It pr ovi de d me wit h a n o p p ort u nit y t o meet s o me d y n a mic w o me n t h at w or k i n t he s a me i n d ustr y,” s he a d ds.

“I t hi n k s o meti mes we get sil oe d i nt o w h at we d o e ver y d a y a n d f or get t h at ot her pe o ple o ut t here are de ali n g wit h s o me of t he s a me c h alle n ges we are.”

The i de a f or t he pr o gra m ori gi n at e d fr o m a n a n al ysis b y W B E N C’s 1 0 1 2i n d u str yr e p ort. c o m

y o u r p a rt ne ri n

g re s s

D E M C O gi v e s y o ur b u si n e s s t h e p o w er t o gr o w.

C O U R T E S Y W O M E N’ S B U SI N E S S E N T E R P RI S E N A TI O N A L C O U N CI L

p r

M A KI N G C H A N G E: T hr o u g h t h e E n er g y E x e c uti v e Pr o gr a m, m aj or o w n er s S h ell, B P, C h e vr o n a n d E x x o n M o bil h o p e t o s h a k e u p t h eir b u si n e s s m o d el s b y m a ki n g W B E s m or e c o m p etiti v e.

E ner g y A dvis or y B o ar d, w hic h i n cl u des le a ders fr o m B P, E x x o n M o bil, C he vr o n a n d S hell. De bra Ste w art, S hell’s direct or of s u p plier diversit y a n d diversit y o utre ac h i n H o ust o n, s a ys t he pr o gra m we nt fr o m a n i de a t o re alit y i n less t h a n a ye ar. “ We were t he first u n der writer t o get it m ovi n g a n d t he n o ur p eers c a me o n b o ar d, b ut W B E N C t o o k t he b all a n d ra n wit h it.”

Ste w art s a ys W B Es a n d mi n orit y- o w ne d b usi nesses are ofte n e xcl u de d fr o m w or k b ec a use of t he s heer si z e a n d sc o pe of m ost e ner g y sect or c o ntracts. “ We st arte d t his bec a use we were n ot h a p p y wit h o ur a bilit y t o d o b usi ness wit h t he m,” s he a d ds. “ We write bi g c hec ks t o s u p pliers d a y i n a n d d a y o ut, b ut t here are ver y fe w mi n orit y- or w o me n- o w ne d b usi nesses t h at h ave t he necess ar y sc ale or c a p a bilities. “ W he n t he y u n derst a n d us b etter, t he y ser ve us better. We als o k n o w t h at w o me n- a n d mi n orit y- o w ne d b usi nesses n at urall y hire m ore w o m e n a n d mi n orities, s o t h at cre ates j o bs i n t he c o m m u nities t h at nee d t he m m ost.”

R a y De m pse y, c hief diversit y o fficer f or B P A meric a a n d presi de nt of t he B P F o u n d ati o n, is e xcite d a b o ut t he pr o gra m’s p ote nti al. “It’s u nf ort u n atel y tr ue t h at b ec a use of t he sc ale of o ur b usi ness a n d t he ki n ds of pr ojects t h at we d o, it li mits t he a bilit y f or a l ot of w o me n- a n d mi n orit y- o w ne d b usi nesses t o p artici p ate.”

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De m pse y h o p es t he pr o gra m will hel p B P m a ke he a d w a y t o w ar d its g o al of “getti n g a se at at t he Billi o n D oll ar R o u n dt a ble.” Cre ate d i n 2 0 0 1, t he Billi o n D oll ar R o u n dt a ble rec o g ni z es c or p orati o ns t h at s p e n d at le ast $ 1 billi o n wit h mi n orit y a n d w o m a n- o w ne d s u p pliers, as well as s h ares b est practices i n s u p pl y c h ai n diversit y.

He s a ys i ncre ase d p artici p ati o n b y W B Es a n d mi n orities is e q u all y b e ne fici al t o B P. “It u n der pi ns b usi ness p erf or m a nce a n d hel ps all of us t hi n k a b o ut w a ys t h at we c a n drive t h at s p e n d i nt o o ur c o m p a nies. We deci de d a c o u ple of ye ars a g o t h at t h at w as o ur g o al.”

W B E N C is c o m mitte d t o c o n ti n ui n g t he pr o gra m i n L o uisi a n a f or at le ast t he ne xt f o ur ye ars. A n after- acti o n re vie w will i de ntif y b est practices a n d r o o m f or i m pr ove me nt. “ We h o p e t o i de ntif y h o w we c a n i m pr ove a n d b uil d u p o n t he e x p erie nce,” s a ys S hell’s Ste w art. “ We’re n o w c oll a b orati n g wit h t he Nati o n al Mi n orit y S u p plier De vel o p me nt C o u ncil, a n d we’re l o o ki n g t o t a ke t his t o t he ne xt le vel. fii s i n a u g ural e ve nt pl a nte d a see d. It’s t he b e gi n ni n g of a pr ocess.”

RI G- C H E M’s Davis h as n o re grets, s a yi n g t he pr o gra m g ave her a le g u p i n a d o w n oil c ycle. “ N o o ne gives y o u b usi ness t o d a y,” s he a d ds. “ Th at j ust d o es n’t h a p p e n. We h ave t o e ar n it a n d we h ave t o b e c o nsiste nt.”

d e m c o. o r g

/ D E M C O L o ui si a n a

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F O C US S AFE TY

P a s si n g i n s p e cti o n Fr o m dr o n e s t o r o b ot s t o r o p e a c c e s s, o w n er s a n d c o ntr a ct or s ar e fi n di n g n e w w a y s t o r e d u c e ‘ at-ri s k’ l a b or h o ur s.

B Y S A M B A R N ES

A

dv a nces i n i ns p ec ti o n tec h n ol o g y are pl a yi n g a si z e a ble r ole i n mi ni mi zi n g “at-ris k” l a b or h o urs i n t he i n d ustri al s p ace. R a n gi n g fr o m t he ol d sc h o ol t o t he hi g h-tec h, t he pr ocess of i ns p ecti n g vessels a n d e q ui p me nt is g oi n g t hr o u g h a ra dic al tra nsf or m ati o n. fie desire f or c h a n ge is u n der st a n d a ble. Acc or di n g t o t he U. S. B ure a u of L a b or St atistics, c o nstr uc ti o n f at alities n u m b ere d 9 9 1 i n 2 0 1 6 (t he m ost rece nt d at a av ail a ble), c o m prisi n g m ore t h a n 2 0 % of all w or ker de at hs i n t he c o u ntr y. The le a di n g c a use of t hese f at alities w as f alls, f oll o we d b y b ei n g str uc k b y a n o bject, electr oc uti o n a n d cr us hi n g acci de nts.

I n a n e ff ort t o t a ke h u m a ns o ut of t he e q u ati o n, t here h as b ee n a l ot of b u z z ar o u n d dr o nes a n d r o b ot ic tec h n ol o g y i n rece nt m o nt hs.

A m o n g a h ost of ot her re as o ns, a bi g

p art of t he a p pe al is t h at c o ntract ors a n d o w ners c a n si deste p O S H A’s stri n ge nt C o n fi ne d S p ace E ntr y ( C S E) st a n d ar d. C o n fi ne d s p aces i ncl u de, b ut are n ot li mite d t o, t a n ks, vessels, sil os, v a ults, e q ui p me nt h o usi n gs, d uct w or k a n d pi peli nes. “ O ur a p pr o ac h t o s afet y f or t he l ast c o u ple of ye ars h as bee n e x p os ure re d ucti o n,” s a ys Sc ott Wa g ues p ac k, mec h a nic al ser vices m a n a ger at B A S F i n Geis m ar. “If y o u eli mi n ate t he h a z ar d, t he n y o u’ve c o m pletel y t a ke n it o ut of t he sit u ati o n.” “ Yo u’re n ot p utti n g a h u m a n at ris k. Th at’s N o. 1,” s a ys L a nce Wie bec k, pr oject m a n a ger at Tur ner I n d ustries i n B at o n R o u ge. “ The n u m ber of at-ris k h o urs g oes d o w n ri g ht o ff t he t o p.” Tur ner h as j u m pe d i nt o t he r o b otics m ar ket wit h b ot h feet, a n d t o d a y uses t he tec h n ol o g y f or a v ariet y of i n d ustri al a p plic ati o ns s uc h as t a n k, vessel a n d pi pe i ns pecti o ns. The c o ntract or’s

T E R RI F E N S E L

T H E B O T: J o s h u a V a u g h n a n d hi s r o b oti c s a n d c o ntr ol s r e s e ar c h gr o u p at t h e U ni v ersit y of L o ui si a n a at L af a y ett e ar e w or ki n g wit h J a p a n e s e d e v el o p er Hi B ot C or p. t o d e v el o p a “ c a bl e- dri v e n p ar all el m a ni p ul at or ” t o i n s p e ct v erti c al m et alli c s urf a c e s s u c h a s i n c h e mi c al st or a g e t a n k s.

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1 0 1 2i n d u str yr e p ort. c o m

1 0 1 2i n d u str yr e p ort. c o m

D O N K A D AI R

i ns pecti o n a n d n o n- destr uctive e x a mi n ati o n gr o u p relies u p o n a diverse li ne u p of r o b ots a n d e m pl o ys m ore t h a n 5 0 0 f ull-ti me e n gi neers, tec h nici a ns a n d certi fie d i ns p ect ors.

Wie bec k a n d S e a n St a nf or d, o perati o ns m a n a ger, h ave b ee n he avil y i nv olve d i n t he oversi g ht of Tur ner’s r o b otics i niti ative, a n d i n first q u arter 2 0 1 8 h o p e t o f urt her e x p a n d t he fleet. fie y e x p ect t he ne w i nvest me nt t o p a y f or itself i n s h ort or der. “ The u nits will be a ble t o g o i nt o s o met hi n g as s m all as 4 i nc hes i n dia meter u p t o 7 2 i nc hes a n d gre ater,” Wie b ec k s a ys. “ A n d wit h m a g netic w heels, t he y’ll be a ble t o cra wl u p t he si des or g o i nt o a piece of e q ui pme nt a n d g o vertic al. Th at o p e ns u p ne w ave n ues t h at pre vi o usl y were n ot p ossi ble.”

A d diti o n all y, t he ne wer r o b otics li nes are s u b mersi ble u p t o 1 0 0 feet.

Tur ner’s de vices t y pic all y use ultras o nic testi n g t o fi n d u n detecte d c orr osi o n, crac ks or ot her defects i n s urf aces. The y are als o well-s uite d f or well a n d t a n k i ns p ecti o ns. “ There’s a r o b otic cra wler t h at uses L F E T [l o w-fre q ue nc y electr o m a g netic tec h ni q ue]. Th at all o ws us t o drive o n a t a n k fl o or a n d access t h ose are as wit h o ut p utti n g i n divi du als at ris k.”

L o uisi a n a’s ac a de mi a is als o di p pi n g its t oes i nt o t he r o b otics m ar ket.

At t he U niversit y of L o uisi a n a at L af a yette’s De p art me nt of Mec h a n ic al E n gi neeri n g, assist a nt pr ofess or J os h u a Va u g h n a n d his r o b otics a n d c o ntr ols rese arc h gr o u p are w or k i n g wit h Ja p a nese de vel o p er Hi B ot C or p. t o de vel o p a “c a ble- drive n p ar allel m a ni p ul at or” t o i ns p ect vertic al met allic s urf aces s uc h as i n c he mic al st ora ge t a n ks.

The tec h n ol o g y rese m bles a s k yc a m at a f o ot b all st a di u m a n d c o nsists of a de vice s us p e n de d fr o m c a bles a n d wi nc hes.

W hile Hi B ot is h a n dli n g t he de vice’s mec h a nic al desi g n, Va u g h n is desi g ni n g t he c o ntr ol s yste m —“t he s oft w are t h at gets t he m ac hi ne t o d o w h at we w a nt it t o d o” —fr o m ne wl y re n ov ate d l a b s p ace o n c a m p us. The i niti ative is f u n de d b y t he L o uisi a n a B o ar d of Re ge nts’ I n d ustri al Ties Rese arc h S u b pr o gra m. “ We’re c urre ntl y deter mi ni n g if t he s yste m c a n drive ar o u n d t he

‘ LI K E RI N GI N G A B E L L’: Ti m H arri s, pl a nt m a n a g er at E a st m a n C h e mi c al i n St. G a bri el, i s i m pr e s s e d wit h t h e r eli a bilit y of a c o u sti c e mi s si o n t e sti n g f or d et e cti n g cr a c k s i n hi s pl a nt’ s pr e s s uri z e d r e a ct or.

o uter e d ge of a t a n k e ffectivel y as t he r o b ot h a n gs over t he si de f or i ns p ecti o n p ur p oses,” he a d ds. “It’s a c a ble- drive n s yste m w here t he wi nc hes are a ble t o a ut o n o m o usl y m ove ar o u n d t he t a n k.”

The s yste m will b e p ort a ble a n d c o ul d s o o n b e av ail a ble f or c o m merci al a p plic ati o ns. “I d o n’t k n o w w he n a n o ff-t he-s helf versi o n will b e av ail a ble, b ut i n a ye ar’s ti me we c o ul d st art l o o ki n g at s p eci fic a p plic ati o ns,” Va u g h n s a ys.

D R O NI N G O N As a n ot her i ns p ecti o n t o ol, dr o nes h ave b ec o me s o pre v ale nt t h at t he Alli a nce S afet y C o u ncil i n B at o n R o u ge pl a ns t o u nveil a dr o ne s afet y c o urse i n first q u arter 2 0 1 8. Ge or ge Re y, w h o hel p e d de vel o p t he 2. 5h o ur c o urse, s a ys it’s l o n g over d ue, si nce m a n y o w ners, c o ntract ors a n d s u p pliers are alre a d y usi n g t he tec hn ol o g y wit h n o f or m al trai ni n g.

B y l a w, a n y pil ot fl yi n g a dr o ne f or c o m merci al p ur p oses is re q uire d t o c o m pl y wit h Part 1 0 7 of Fe deral Avi ati o n Re g ul ati o ns a n d o bt ai n a U A V ( u n m a n ne d aeri al ve hicle) pi l ot’s lice nse. If t he y d o n’t, t he y c o ul d f ace a fel o n y c h ar ge a n d heft y fi nes.

Re y, w h o is presi de nt of t he L o uisi a n a Pelic a n C h a pter of t he Ass oci ati o n f or U n m a n ne d Ve hicle S yste ms I nter n ati o n al, s a ys t here are bi g c h a n ges o n t he h ori z o n f or t he dr o ne i n d ustr y. It’s wi del y a ntici -

p ate d t h at t he F A A will s o o n all o w pil ots t o fl y b e y o n d “ vis u al li ne of si g ht.” C urre ntl y, t he y m ust m ai nt ai n vis u al c o nt act wit h t he dr o ne, a r ule t h at se verel y li mits t heir p ote nti al.

“It’s g oi n g t o b e all a b o ut pr oced ure,” Re y s a ys. “ The y will let y o u fl y as l o n g as y o u f oll o w w h ate ver g ui d a nce t he y c o me u p wit h.” The ne w r ules are e x p ecte d s o meti me i n 2 0 1 8.

Tur ner I n d ustries h as lice nse d pil ots w h o o p erate a fleet of si x dr o nes f or b ot h e xter n al a n d i nter n al i ns p ecti o ns. O n wi n dier d a ys, t he c o ntract or uses its DJI M atrice 6 0 0 Pr o, a l ar ger, m ore st a ble oct oc o pter.

“It h as 4 5 mi n utes of b atter y life, w hic h is i m p ort a nt f or fl are st ac k i n s p ecti o ns,” Wie b ec k s a ys. “Its c a mera als o h as 6 0 x m a g ni fic ati o n, s o we c a n fl y 1 0 0 feet a w a y fr o m t he fl are a n d act u all y re a d t he seri al n u m b er.”

I ncre di bl y, Tur ner c a n e ve n fl y i nt o pi p es as s m all as 1 6 i nc hes i n di a meter utili zi n g a DJI Eli os dr o ne, w hic h is e nc ase d wit hi n a pr otective c ar b o n fi b er s p here.

Ot her re v ol uti o n ar y a dv a nce me nts are o n t he h ori z o n — o ne ne w dr o ne li ne will b e a ble t o t a ke ultra s o nic t hic k ness me as ure me nts. At a price t a g of m ore t h a n $ 5 0, 0 0 0, it c o ul d b e c o m merci all y av ail a ble e arl y t his ye ar. “ We w o ul d b e a ble t o g o u p a t o wer a n d t a ke t hic k ness re a di n gs.

Pre vi o usl y, y o u’ d h ave t o bri n g i n a cra ne a n d m a n- b as ket, or y o u’ d h ave

t o sc a ff ol d it.”

I n t he w orl d of o ffs h ore oil, Dr. B al aji R a m ac h a n dra n, ass oci ate pr ofess or of ge o m atics at Nic h olls St ate U niversit y, h as bee n activel y w or ki n g wit h t he F A A a n d S hell t o de vel o p pr oce d ures f or t he s afe o per ati o n of dr o nes ar o u n d o ffs h ore pl at f or ms. Ulti m atel y, t his c o ul d o pe n u p a ne w w orl d f or t he i n d ustr y, o ne d a y all o wi n g t he deliver y of g o o ds a n d m ateri als t o t he ri gs b y dr o ne.

R a m ac h a n dra n’s w or k wit h S hell f alls i n li ne wit h t he c o m p a n y’s c o mmit me nt t o a ut o m ate m uc h of its o ffs h ore o perati o ns b y 2 0 2 5, t here b y mi ni mi zi n g t he i m p act t o h u m a n s afet y. I n p artic ul ar, dr o nes h ave t he p ote nti al t o si g ni fic a ntl y re d uce s afe t y h a z ar ds d uri n g fl are i ns pecti o ns. “ The y’re h avi n g all t hese pe o ple cli m b u p t he st ac ks, s o y o u’re p ut ti n g a pers o n, a h u m a n o perat or, i n d a n ger,” R a m ac h a n dra n s a ys.

Still, o perati n g a dr o ne o n a n o ffs h ore pl atf or m bri n gs its o w n s afet y c o ncer ns, a n d R a m ac h a n dra n is w or ki n g wit h S hell i n de vel o pi n g s afet y pr ot oc ols. “ Ever y b o d y t hi n ks if y o u c a n o perate a helic o pter it s h o ul d be e as y t o o perate a dr o ne. I n re alit y, y o u still h ave t o w orr y a b o ut s afet y. F or e x a m ple, t he lit hi u m b atteries t h at g o i n t he dr o nes c a n e x pl o de, s o we h ave t o de vel o p st a n d ar ds f or tra ns ferri n g t he b atteries t o t he pl atf or m t o mi ni mi z e t he ris k.”

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F O C U S: S A F E T Y

46

c ost- e ff ective i n m ost c ases.

At B A S F, r o p e access is i de all y s uite d f or i ns p ecti n g distill ati o n c ol u m ns, w hic h are t y pic all y t all a n d s m all i n di a meter. Hist oric all y, i ns p ecti o n of t he c ol u m ns w o ul d re q uire a si g ni fi c a nt a m o u nt of sc a ff ol di n g. “ We c a n literall y d o r o p e access i n a 3-f o ot- di a meter s p ace,” Wa g ues p ac k a d ds. O n t he ot her e n d of t he s p ectr u m, a te a m of r o p e access i ns p ect ors c a n t ac kle a 1 0 0-f o ot- di a meter st ora ge t a n k wit h 3 0-f o ot-t all si de w alls.

LI C E N S E D PI L O T S: G e or g e R e y, l eft, w h o i s pr e si d e nt of t h e L o ui si a n a P eli c a n C h a pt er of t h e A s s o ci ati o n f or U n m a n n e d V e hi cl e S y st e m s I nt er n ati o nal, h el p e d d e v el o p a dr o n e s af et y c o ur s e t h e Alli a n c e S af et y C o u n cil i n B at o n R o u g e pl a n n e d t o u n v eil i n e arl y 2 0 1 8.

O T H E R I N S P E C TI O N T O O L S Ti m H arris, pl a nt m a n a ger at E ast m a n C he mic al i n St. Ga briel, is i m presse d wit h t he reli a bilit y of ac o ustic e missi o n testi n g f or detecti n g crac ks i n his pl a nt’s press uri z e d re act or. C o m p ari n g it t o ri n gi n g a b ell, he s a ys strate gic all y pl ace d tra ns d ucers c a n detect c orr osi o n or crac ks t hr o u g h s o u n d w aves. e pr ocess re q uires t h at tra ns d ucers — a k a liste ni n g de vices — b e gl ue d t o t he e xteri or si des of t he vessel, si mil ar t o a n E K G de vice at a d oct or’s o ffi c e.

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C HE RYL GE R BE R

GI V E T H E M S O M E R O P E W hile n ot c o nsi dere d “ hi g htec h,” s o me i ns pecti o n met h o ds still m a n a ge t o mi ni mi z e at-ris k h o urs i n m ore c o nve nti o n al w a ys. F or t he l ast t w o ye ars, B A S F’s Geis m ar f acilit y h as relie d i ncre asi n gl y o n t he “ol d sc h o ol” met h o d ol o g y of r o p e access i ns pecti o ns. I niti all y de vel o p e d fr o m tec h ni q ues use d i n cli m bi n g a n d c avi n g, r o pe access all o ws w or kers t o access di ffi c ult-t o-re ac h l oc ati o ns wit h o ut t he use of sc a ff ol di n g, cradles or aeri al w or k pl atf or ms.

I n 2 0 1 7, B A S F a ut h ori z e d a b o ut 6 6 0 of t he i ns pecti o ns, m ost p erf or me d b y C a pit ol Ultras o nics L L C i n B at o n R o u ge a n d its te a m of s p eci all y trai ne d r o pe access i ns p ect ors. “ ere’s a dece nt a m o u nt of pl a n ni n g t h at g oes i nt o it,” B A S F’s Wa g ues p ac k s a ys. “ ese r o p es are n’t h ar d w are st ore r o p es. It’s ver y s peci ali z e d h ar d w are; ver y si mil ar t o w h at y o u w o ul d use f or r oc k cli m bi n g.” W hile sc a ff ol di n g will al w a ys h ave its use, r o pe access eli mi n ates t he h a z ar ds c o m m o nl y ass oci ate d wit h t he b uil di n g, te ari n g d o w n a n d cli m bi n g of sc a ff ol di n g. It’s als o m ore

1 0 1 2i n d u str yr e p ort. c o m

C O U R T E S Y C A PI T O L U L T R A S O NI C S L L C

G OI N G O L D S C H O O L: B A S F’ s G ei s m ar f a cilit y h a s r eli e d i n cr e a si n gl y o n r o p e a c c e s s i n s p e cti o n s.

L a st y e ar, t h e c o m p a n y a ut h ori z e d a b o ut 6 6 0 of t h e i n s p e cti o n s, m o st p erf or m e d b y C a pit ol Ultr a s o ni c s.

To pre p are f or t he test, t he re act or is t a ke n o ut of ser vice, e m ptie d of pr o d uct a n d fille d wit h w ater. “ Yo u w a nt t o b e a ble t o stress it as m uc h as p ossi ble b ec a use if y o u h ave a crac k, y o u w a nt t o m a ke s ure y o u h ave e n o u g h stress t o detect it,” he a d ds. fie test is se nsitive e n o u g h t o detect t he s m allest of crac ks a n d t he pl ace me nt of m ulti ple tra ns d ucers c a n hel p tri a n g ul ate t he crac k’s p ositi o n. The pr ocess is less l a b or i nte nsive t h a n vis u al met h o ds.

“If t here’s a crac k it’s g oi n g let o ut a s o u n d,” s a ys Ric h ar d Ree ves, m ai nten a nce m a n a ger at E ast m a n. “ A n d t he ti me di ffere nce f or t h at s o u n d w ave t o hit t he di ffere nt tra ns d ucers will give y o u a li ne of p ositi o n.”

C o m m u nic ati o n is a n ot her i m p ort a nt p art of t he i ns p ecti o n pr ocess, o ne t h at H o ne y well rece ntl y a d dresse d w he n it u nveile d its Voc ol lect v oice s ol uti o n at t he Dece m b er Petr oc he mic al S u p pl y C h ai n & L o gistics C o nfere nce i n H o ust o n.

Utili zi n g a h a n ds-free he a dset, Voc ollect relies u p o n v oice activ ati o n tec h n ol o g y t o direct tec h nici a ns t hr o u g h c hec klists, t here b y all o wi n g

E X C A V A TI O N O F S OI L I S D A N G E R O U S

“ T H E T R E N C H & T R A F FI C S A F E T Y S P E CI A LI S T S ”

WI T H A N A TI O N WI D E B R A N C H N E T W O R K,

1 0 1 2i n d u str yr e p ort. c o m

W E’ R E

h a n ds-free, e yes-free v oice d at a e ntr y.

D uri n g t he i ns pecti o n pr ocess, t he s p o ke n i nf or m ati o n is c o nverte d i nt o te xt a n d c o m m u nic ate d b ac k t o t he h ost d at a s yste m wit h re al-ti me u p d ates. The tec h nici a n als o i nteracts wit h a dis pl a y t o re vie w i m a ges or descri pti o ns. “ We’re a ble t o i ncre ase t he s pee d of t he pr ocess si g ni fic a ntl y t hr o u g h v oice activ ati o n,” s a ys C hris M u n nell y, direct or of pr o d uct m ar keti n g at H o ne y well. “ We ari n g a he a dset, t he h a n ds are free, t he e yes are free, a n d pr o d uctivit y is si g ni fic a ntl y i ncre ase d.”

H o ne y well c a n t a ke a n i ns pecti o n c hec klist, di giti z e it a n d p ut it i n t he cl o u d or a l oc all y b ase d s yste m. “ We pr ovi de t he a bilit y f or t he w or ker t o g o t hr o u g h his t as k, a n d t he n t he c o m p uter s yste m will re a d o ff t he list t o hi m or her, a n d all o w t he m t o p a use, d o ot her w or k, a n d c o me b ac k t o it.”

As a ne xt ste p, a clie nt c o ul d use t he d at a t o ascert ai n t he s pee d of a n i ns pecti o n a n d n u m ber of mist a kes, as well as m a n a ge a n d c o ac h w or kers acr oss a l ar ge gr o u p.

W O R K...

a n d c a n l e a d t o s e v e r e i nj u ri e s a n d e v e n d e a t h if t h e e x c a v a ti p r o c e s s i s n o t p r o p e rl y a d d r e s s e d. N a ti o n al Tr e n c h S af e t y h a s a f c o m pl e m e n t of e x c a v a ti o n s u p p o r t s y st e m s a s w ell a s e n gi n e e ri a n d t r ai ni n g s e r vi c e s t o e n s u r e y o u h a v e t h e e q ui p m e n t n e e d e d p e rf o r m t h e j o b s af el y a n d e ff e c ti v el y.

W HE RE Y O U NEE D US T O BE

C ALL 888

on ull ng to

2 3 4 9 2 4 4 w w w. n t s a f e t y. c o m

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F O C U S: S A F E T Y t h at’s irrele v a nt. “ O nli ne, y o u c a n b u y it all d a y l o n g a n d s hi p it t o y o ur h o use ne xt d a y.” He s a ys Tr o m L a b’s tec h n ol o g y, w hic h is s ol d directl y t o testi n g l a bs, c a n acc uratel y detect s a m ple v ali dit y.

S ara h Ta yl or, cli nic a d mi nistra t or at G ulf C o ast Occ u p ati o n al Me dici ne i n B at o n R o u ge, s a ys l oc al testi n g a ge ncies are d oi n g a dece nt j o b of kee pi n g u p wit h t he ti mes, b ut a grees t h at t here are f orces w or ki n g a g ai nst t he m. “ Ta ke a tri p t o a‘ he a d s h o p’ or a dr u g p ara p her n ali a st ore a n d y o u’ d be a m a z e d at e ver yt hi n g o n t he m ar ket, fr o m s h a m p o os t o dri n ks t o e ver yt hi n g else t o hel p y o u wit h y o ur dr u g test,” Ta yl or s a ys. “ C a n I s a y t h at 1 0 0 % of o ur clie nts are teste d wit h o ut a n y of t h at s ort of t hi n g h a p pe ni n g? N o, I c a n’t s a y t h at. I c a n s a y t h at we are c o nst a ntl y e m pl o yi n g ne w e ff orts, me as ures a n d testi n g tec h ni q ues t o eli mi n ate t h at. We are ver y c o n sci o us of it.”

ST O C K P H OT O

A V OI DI N G D E T E C TI O N: S y nt h eti c uri n e i s t h e m o st si g ni fi c a nt t hr e at t o L o ui si a n a i n d u str y fi g hti n g w or k pl a c e s u b st a n c e a b u s e.

T h e bi g f a k e

Wit h pr o d u cti vit y a n d s af et y o n t h e li n e, i n d u str y r a c e s t o o ut p a c e dr u g t e st d o d g er s.

B Y S A M B A R N ES

L

o uisi a n a’s i n d ustri al c o m ple x h as a s hre w d o p p o ne nt i n t he fi g ht a g ai nst w or k pl ace s u bst a nce a b use —t he

i nter net.

Eve n as dr u g testi n g tec h n ol o g y bec o mes i ncre asi n gl y s o p histic ate d, s o me w or kers are fi n di n g w a ys t o el u de e m pl o yer- m a n d ate d dr u g testi n g t hr o u g h a q uic k a n d e as y i nter net se arc h. “ Ty pic all y, y o u get b et wee n 5 milli o n t o 8 milli o n hits w he n y o u se arc h o n G o o gle,” s a ys Garet Re m bert, presi de nt of Tr o m L a b, a Fl ori d a- b ase d de vel o p er of dr u g detecti o n tec h n ol o g y. “ S oci al me di a e d uc ates t he dr u g user i nst a ntl y o n h o w t o p ass t he dr u g test, a n d t here are a t o n of di ffere nt s u bversi o n met h o ds.”

S y nt hetic uri ne is t he m ost si g 48

ni fic a nt t hre at. Re m b ert esti m ates t h at $ 1 billi o n of t he pr o d uct is s ol d o nli ne i n t he U. S., pri m aril y b y c o m p a nies b ase d i n C hi n a. C he m ists t here b al a nce t he p H p erfectl y a n d act u all y pr ovi de pre p arati o n i nstr ucti o ns f or p assi n g a test. “ The y s h o w y o u ste ps, fr o m A t o Z,” Re m b ert a d ds. “ A n d if y o u f ail y o ur test, y o u c a n get 1 0 0 % of y o ur m o ne y b ac k, g u ara ntee d. Th at’s h o w c o n fi de nt t he y are.”

Des pite t he av ail a bilit y of s y nt het ic pr o d ucts, s o me o w ners a n d c o ntract ors feel t he n u m b er of f or geries is rel ativel y l o w.

M ar k S a m mis, direct or of h u m a n res o urces at E xcel M o d ul ar Sc aff ol d, wit h f o ur o ffices i n L o uisi a n a, s a ys his c o m p a n y st a ys a he a d of t he pr o ble m b y usi n g re p ut a ble testi n g l a b orat ories s uc h as DI S A Gl o b al S ol uti o ns.

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fie DI S A l a b relies u p o n a p ort f oli o of testi n g met h o ds, i ncl u di n g uri ne, h air a n d s aliv a, t o st a y a he a d of t he c he aters. “ We feel as a c o m p a n y t h at we’re d oi n g all t he ri g ht t hi n gs,” S a m mis s a ys. “ M ost f acilities als o d o h air or s aliv a testi n g n o w.

Yo u c a n’t f a ke t he h air a n d y o u c a n’t f a ke a s aliv a test.”

Still, uri ne testi n g re m ai ns t he st a n d ar d f or m a n y i n t he p etr oc he mic al, oil a n d g as m ar kets.

Re b ecc a J o nes, Pal a Gr o u p’s h u m a n res o urces de p art me nt m a n a ger, s a ys t h ose t h at tr y t o circ u mve nt t he pr ocess are t y pic all y c a u g ht i n t he act. “ We h ave e m pl o yees t h at g o o ut t o t he cli nic a n d tr y t o give a c ol d s p eci me n, or t he y tr y t o get a w a y wit h s o met hi n g,” J o nes s a ys. “ B ut t o s a y t h at I k n o w p e o ple w h o are getti n g a w a y wit h it, I c a n’t s a y t h at.”

Re m b ert s a ys t he pr o ble m is bi g ger t h a n s o me t hi n k b ec a use t here’s n o w a y t o re all y k n o w h o w dee pl y t he m ar ket h as b ee n i m p acte d.

“If y o u c a n’t detect s o met hi n g, h o w c a n y o u k n o w?” he as ks. There are se ve n st ates i n t he U. S. t h at h ave o ffici all y b a n ne d t he p urc h ase of c o u nterfeit uri ne, b ut Re m b ert s a ys

C H A N G E S I N H A BI T Al ar mi n gl y, t here h as bee n a s pi ke i n t he n u m ber of p ositive tests i n prescri pti o n dr u gs a n d s y nt hetic m arij u a n a i n rece nt m o nt hs. I n 2 0 1 7, Ta yl or s a ys, o pi oi ds t hre at e ne d t o s ur p ass a m p het a mi nes a n d m arij u a n a i n t he n u m ber of p ositive dr u g tests perf or me d b y G ulf C o ast Occ u p ati o n al Me dici ne.

O verall, Ta yl or’s gr o u p h a d 1 1 % p ositive dr u g tests l ast ye ar, m ost disc overe d d uri n g pre- e m pl o y me nt testi n g.

St ate d at a see ms t o b ac k u p her cl ai m. Acc or di n g t o t he L o uisi a n a Vit al Rec or ds O ffice, a n n u al de at hs i n L o uisi a n a fr o m o pi oi ds h ave m ore t h a n tri ple d i n a five- ye ar peri o d, i ncre asi n g fr o m 1 0 0 i n 2 0 1 1 t o 3 2 0 i n 2 0 1 6.

Fr o m t he fr o nt li nes, Pal a Gr o u p’s J o nes s a ys t he vie w is t he s a me. “ We’ve f o u n d t h at o pi oi ds a n d s y nt hetic m arij u a n a a p pe ar t o be m ost pre v ale nt at t his ti me,” s he a d ds. “ We’re h avi n g iss ues wit h pe o ple a b usi n g t h ose t y pes of dr u gs.”

C o nse q ue ntl y, as Pal a’s t hir d- p art y a d mi nistrat or, DI S A be g a n testi n g f or b ot h i n J ul y 2 0 1 7.

Eve n t h o u g h o pi oi ds are ofte n le g all y prescri be d, Pal a a n d ot hers c o nsi der t he m “s afet y se nsitive.”

Sc ott C o u per, a se ni or m a n a ger at 1 0 1 2i n d u str yr e p ort. c o m

ST O C K P H OT O

T E S TI N G P O SI TI V E: P o siti v e t e st s i n pr e s cri pti o n dr u g s a n d s y nt h eti c m arij u a n a h a v e s pi k e d i n r e c e nt m o nt h s.

Pal a, s a ys t here h ave b ee n ti mes w he n “g o o d, l o n g-ter m e m pl o yees w h o are o n a prescri pti o n dr u g h ave bee n relie ve d of t heir d uties u ntil t he y are well e n o u g h t o get o ff t h at prescri pti o n.”

To trac k o pi oi d tre n ds i n t he st ate, Dr. Este b a n Gers h a ni k, direct or of t he B ure a u of He alt h I nf or m atics at t he L o uisi a n a De p art me nt of He alt h, is c urre ntl y usi n g $ 2 3 mil li o n i n gra nts fr o m t he Ce nters f or Dise ase C o ntr ol a n d Pre ve nti o n t o g at her a n d v ali d ate av ail a ble d at a o n t he s u bject.

Gers h a ni k’s o ffice m o nit ors h os pi t ali z ati o ns a n d w or ks wit h t he L o uisi a n a Vit al Rec or ds O ffice, c or o ners’ o ffices, h os pit al ass oci ati o ns a n d t he L o uisi a n a B o ar d of P h ar m ac y. “ We’re di g gi n g i nt o t he n u m b ers t o u n derst a n d w h at a ge, ge n der, race a n d l oc ati o ns are m ost a ffecte d, t he n p ulli n g t h ose pieces t o get her,” he s a ys.

Gers h a ni k’s b ure a u pl a ns t o u nveil a n o nli ne d as h b o ar d i n e arl y 2 0 1 8 t h at will pr ovi de a ce ntral l oc ati o n f or t he d at a.

As o ne o utc o me of his w or k, t he first A dvis or y C o u ncil o n Her oi n a n d O pi oi d Pre ve nti o n a n d E d u c ati o n — c o m prise d of v ari o us st ate gr o u ps a n d e ntities — c o nve ne d i n l ate 2 0 1 7 t o be gi n usi n g t he d at a t o 1 0 1 2i n d u str yr e p ort. c o m

de vel o p a re me d y f or t he crisis.

A N I N C R E A SI N G S O P HI S TI C A TI O N Ta yl or s a ys t he f ut ure l o o ks bri g ht, si nce i ncre asi n gl y s o p histi c ate d dr u g tests are m a ki n g it less li kel y t h at e m pl o yees will b e a ble t o f a ke a dr u g test. I n d ustri al o w ners a n d c o ntract ors are als o b ec o mi n g s av vier as t he y rec o g ni z e t he b e ne fits of a dr u g-free w or k c ult ure. “ The y are pl aci n g a hi g her pri orit y o n s u bst a nce a b use testi n g a n d m a ki n g s ure t heir c o m p a n y p olicies pr otect t he m a n d t heir w or kf orce,” s he a d ds. “ Str o n g dr u g testi n g hel ps y o u wit h y o ur w or kers’ c o m p e ns a ti o n i ns ura nce. It eli mi n ates i nj uries.

It als o gets y o u a b etter, cle a ner w or kf orce t h at is m ore pr o d uctive a n d e fficie nt.”

S a m mis s a ys DI S A Gl o b al s h ares dr u g testi n g i nf or m ati o n wit h ot her me m b er c o ntract ors a n d o w ners, t here b y pre ve nti n g s u bst a nce a b users fr o m tra nsferri n g u n detecte d t o a n ot her e m pl o yer or j o bsite. “ The y fill o ut t he a p plic ati o n a n d t he n we st art rese arc hi n g t he m,” he s a ys. “ We d o n’t hire a n y o ne t h at h as teste d p ositive wit hi n t w o ye ars.”

F urt her m ore, E xcel ra n d o ml y tests 5 5 % of its e m pl o yees, w hic h is a b ove i n d ustr y st a n d ar d, a n d als o tests e m pl o yees w he n t here is

re as o n a ble s us pici o n or f oll o wi n g a n acci de nt.

Pal a als o kee ps t he b ar hi g h f or its dr u g testi n g pr o gra m. “ S o me testi n g is drive n b y o ur clie nts’ req uire me nts, b ut we f oll o w t he s a me st a n d ar ds f or all of o ur w or kf orce,” s a ys C o u p er. “ fi at i ncl u des testi n g o ur e xec utives.”

Pal a’s dr u g testi n g p olic y e xte n ds t o its tr uc k drivers as well, w h o are o nl y re q uire d b y l a w t o p ass a D O T dr u g test. “ B ec a use t he y’re g oi n g i nt o o ur clie nt f acilities, we’re meeti n g b ot h t he D O T re q uire me nts ( w hic h e xcl u des s y nt hetic m arij u a n a) a n d o ur clie nts’, t o o,” C o u p er n otes. “ We m a ke s ure t he y’re dr u g-free i n t heir f acilities.”

S a m mis feels dr u g testi n g a n d e d uc ati o n are m uc h i m pr ove d over a dec a de a g o. “I t hi n k it’s a l ot b etter n o w t h at y o u h ave t hese c o ns or ti u ms t h at t he m aj orit y of clie nts are usi n g. The M arat h o ns, S hells a n d E x x o n M o bils are t y pic all y usi n g DI S A or a n ot her m aj or c o m p a n y.”

N o net heless, t here c o ul d b e f orces w or ki n g a g ai nst t he s h ari n g of s uc h i nf or m ati o n.

I n a m ove t h at c o ul d d o m ore h ar m t h a n g o o d, a ne w O S H A re g ul ati o n i n Ja n u ar y 2 0 1 7 pr o hi bits or se verel y restricts ret ali at or y c o n d uct a n d electr o nic re p orti n g of occ u p ati o n al i nj uries a n d ill nesses, e x p a n di n g t h at t o i ncl u de alc o h ol a n d dr u g testi n g.

T HE RE AL D A N GE R I n d ustr y le a ders s a y t he d a n gers of w or k pl ace s u bst a nce a b use are self- e vi de nt. “ Ever y d a y, t he decisi o ns [i n d ustr y w or kers] m a ke c o ul d c a use h ar m t o t he p e o ple ar o u n d t he m,” Pal a’s J o nes s a ys. “ The y nee d t o b e c o m pletel y alert a n d a w are a n d i n t he m o me nt.

The y c a n’t b e t a ki n g me dici nes t h at are i n fl ue nci n g t heir re acti o ns.”

Pal a’s “ St o p Wor k Pr o gra m” e nc o ura ges e m pl o yees t o st o p w or k if t he y n otice a p ote nti al d a n ger, see a b etter w a y t o d o a t as k, or n otice a c o- w or ker w h o mi g ht b e u n der t he i n fl ue nce.

“I practic all y a d o pt all t he p e o ple t h at w or k f or Pal a; t he y b ec o me m y ki ds,” J o nes s a ys. “I w a nt t he m t o g o o ut t here a n d b e s afe a n d n ot h ave t o w orr y t h at s o met hi n g is g oi n g t o h a p p e n t o t he m w he n t he y get i nt o t he fiel d.”

D e at h b y a d di cti o n

A n n u al d e at h s i n L o ui si a n a fr o m o pi oi d s h a v e m or e t h a n tri pl e d i n a fi v e- y e ar p eri o d.

2 0 1 1: 2 0 1 6:

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S O U R C E: L o ui si a n a Vit al R e c or d s Of fi c e

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T h e t hr e e m o st c o m m o n f or m s of dr u g t e sti n g u s e d b y L o ui si a n a i n d u str y U RI N E

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S O U R C E: G ulf C o a st O c c u p ati o n al M e di ci n e, B at o n R o u g e

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F O C U S: S A F E T Y S AFETY E NF O R CE ME NT U N DE R T HE T R U MP A D MI NI S T R A TI O N: A s a m pli n g of w h at i s — a n d i s n’t — c h a n gi n g El e ct r o ni c r e c o r d k e e pi n g

A s oft e r t o u c h

O S H A r e g ul ati o n s ar e n’t c h a n gi n g m u c h u n d er Tr u m p, b ut m a y h a v e a diff er e nt ki n d of r el ati o n s hi p wit h t h e a g e n c y.

T H E A S S O CI A T E D P R E S S

A N E W E R A ? F e w e x p e ct t h e a d mi ni str ati o n of Pr e si d e nt D o n al d Tr u m p t o tr y t o r oll b a c k r ul e s t h at w er e pr o m ul g at e d u n d er hi s pr e d e c e s s or, b ut e nf or c e m e nt i s e x p e ct e d t o b e f ar l e s s a g gr e s si v e.

m a n uf a ct ur er s

B Y D A VI D J A C O B S

T

he Tr u m p a d mi nistra ti o n h as pr o mise d t o r oll b ac k re g ul ati o ns t h at it s a ys are h a n dc u ffi n g b usi nesses a n d sti fli n g t he ec o n o m y, a n d it h as s h o w n p artic ul ar i nterest i n b olsteri n g t he m a n uf act uri n g i n d ustr y.

W he n it c o mes t o Occ u p ati o n al S afet y a n d He alt h A d mi nistrati o n oversi g ht, h o we ver, y o u m a y see c h a n ges i n t o ne m ore t h a n s u bst a nce, o bser vers s a y.

D uri n g t he e arl y m o nt hs of t he ne w a d mi nistrati o n, o ffici als si g n ale d t he y w o ul d t a ke a m ore rel a xe d a p pr o ac h t o w or ker s afet y re g ul ati o n a n d e nf orce me nt.

B ut E d Fl y n n, vice presi de nt f or he alt h, s afet y a n d sec urit y wit h t he L o uisi a n a C he mic al Ass oci ati o n, d oes n’t e x pect Tr u m p o ffici als t o tr y t o r oll b ac k r ules t h at were le g all y pr o m ul g ate d b y t he pre vi o us a d mi n istrati o n. “ G oi n g f or w ar d, are t he y g oi n g t o be as a g gressive i n l a u nc hi n g ne w r ules?” he as ks. “I t hi n k t he j ur y’s o ut o n t h at.” B ut after a ye ar i n o ffice, he s a ys, it a p pe ars O S H A h as a “ m ore 50

li g ht- h a n de d a p pr o ac h” n o w. “ U n der O b a m a, O S H A w as re all y tr yi n g t o m a ke a n a me f or t he mselves a n d m a ke ne w r ules,” a d ds Ja ne Hei d i n gsfel der, a l a b or a n d e m pl o y me nt att or ne y wit h J o nes Wal ker. “ fie y were ver y a g gressive fr o m t h at st a n d p oi nt. U n der Tr u m p, I t hi n k t h at will all b ut g o a w a y.”

The fe deral r ule m a ki n g pr ocess is l o n g a n d ar d u o us. O nce pr o p erl y e n acte d, ne w r ules c a n’t si m pl y b e eli mi n ate d b y a ne w a d mi nistrati o n.

Eve n t we a ks t o est a blis he d r ules c a n f ace a c o urt c h alle n ge.

F or e x a m ple, w or k o n ne w r ules t o pr otect w or kers fr o m bre at hi n g i n t o o m uc h cr yst alli ne silic a d ust b e g a n i n 2 0 0 3. B ut O S H A di d n’t b e gi n e nf orci n g t he r ules i n t he c o nstr uc ti o n i n d ustr y u ntil l ast ye ar, a n d m ost pr ovisi o ns of t he st a n d ar d f or ge neral i n d ustr y w o n’t b e i n f orce u ntil J u ne 2 3, s a ys K at h y Tra h a n, presi de nt a n d C E O of t he B at o n R o u ge- b ase d Alli a nce S afet y C o u ncil. “ O nce a ne w st a n d ar d is p asse d, it is rarel y re verse d,” s he n otes.

Meliss a B aile y, a Was hi n gt o n, D. C.- b ase d att or ne y wit h O gletree

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De a ki ns w h ose practice f oc uses o n occ u p ati o n al s afet y a n d he alt h iss ues, h as see n “ ver y little c h a n ge” i n fe deral s afet y e nf orce me nt. S he s a ys O S H A is o n trac k t o d o j ust as m a n y i ns pecti o ns t his fisc al ye ar as l ast ye ar.

O ne t hi n g t h at h as c h a n ge d, s he s a ys, is t he press rele ases. W hile t he O b a m a a d mi nistrati o n “c alle d o ut e m pl o yers or b a d act ors w h o di d n’t c are a b o ut s afet y,” t he ne w f ol ks t a ke a s ofter t o ne. “ Ot her t h a n t h at, it’s b ee n b usiness as us u al,” s he s a ys. “ Eve n if t he Tr u m p a d mi nistrati o n w a nte d t o p ull b ac k o n e nf orce me nt, t h at’s a t all or der. It’s li ke t ur ni n g a n aircraft c arrier.”

Sc ott M u g n o, Presi de nt Tr u m p’s n o mi nee t o le a d O S H A as assist a nt secret ar y of l a b or, h a d n ot b ee n c o nfir me d w he n t his st or y w as writte n.

M u g n o is t he vice presi de nt of s afet y, s ust ai n a bilit y a n d ve hicle m ai nte n a nce at Fe d E x Gr o u n d, a n d h as ser ve d as O S H A s u bc o m mittee c h air m a n f or t he U. S. C h a m b er of C o m merce, w hic h h as o p p ose d a n u m b er of t he a ge nc y’s re g ul ati o n pr o p os als.

D e a dli n e s f or t hi s n e w r e q uir e m e nt h a v e b e e n p u s h e d b a c k m or e t h a n o n c e. B arri n g a n ot h er r e pri e v e, c o m p a ni e s wit h 2 5 0 or m or e e m pl o y e e s n o w ar e r e q uir e d t o s u b mit t o O S H A el e ctr o ni c r e c or d s of w or k pl a c e i nj uri e s a n d ill n e s s e s. B ut i n r e s p o n s e t o pri v a c y c o n c er n s, t h e a g e n c y h a s pr o p o s e d t w e a ki n g t h e r ul e s s o t h at o nl y F or m 3 0 0 A, w hi c h d o e s n ot i n cl u d e p er s o n all y i d e nti fi a bl e i nf or m ati o n, m u st b e s u b mitt e d. T h e n e xt a g e n c y h e a d will h a v e t o d e ci d e h o w t o i nt er pr et t h e r ul e’ s a nti-r et ali ati o n pr o vi si o n s, w hi c h i n d u str y of fi ci al s s a y di s c o ur a g e p o st-i n ci d e nt dr u g t e sti n g.

C r y st alli n e sili c a

I n d u str y r e pr e s e nt ati v e s l o st t h eir m o st r e c e nt c o urt c h all e n g e t o t h e s e st a n d ar d s, w hi c h O S H A alr e a d y h a s b e g u n e nf or ci n g f or t h e c o n str u cti o n i n d u str y. M o st pr o vi si o n s f or g e n er al i n d u str y ar e s c h e d ul e d t o b e i n f or c e b y J u n e 2 3, s a y s K at h y Tr a h a n, pr e si d e nt a n d C E O of t h e Alli a n c e S af et y C o u n cil.

‘ Bl a c kli sti n g’ r ul e

C o m p a ni e s v yi n g f or f e d er al c o n tr a ct s n o l o n g er h a v e t o di s cl o s e l a b or vi ol ati o n s, s u c h a s w or k pl a c e s af et y p e n alti e s.

Ri s k m a n a g e m e nt pl a n s

O b a m a- er a r ul e s c h a n g e s m e a nt t o r e q uir e d e e p er c oll a b or ati o n a m o n g f a cilit y m a n a g er s a n d l o c al fir st r e s p o n d er s h a v e b e e n d el a y e d b y E P A f or r e e v al u ati o n u ntil at l e a st 2 0 1 9.

B e r ylli u m e x p o s u r e

N e w, l o w er e x p o s ur e li mit s will r e m ai n i n pl a c e.

F ut u r e r ul e s

A si g ni fi c a nt a m o u nt of r ul e m a ki n g a cti vit y t h at a p p e ar e d o n O S H A’ s 2 0 1 6 r e g ul at or y a g e n d a, i n cl u di n g st a n d ar d s f or bl o o d b or n e p at h o g e n s a n d c o m b u sti bl e d u st, di s a p p e ar e d fr o m t h e 2 0 1 7 a g e n d a.

I nf or m ati o n c o m pil e d i n D e c e m b er 2 0 1 7 fr o m i nt er vi e w s a n d p u bli cl y a v ail a bl e s o ur c e s.

1 0 1 2i n d u str yr e p ort. c o m

O N LI N E C H A L L E N G E S fie ne xt O S H A c hief will h ave t o fi g ure o ut h o w t o i nter pret a n d e n f orce t he a ge nc y’s ne w r ules re g ar di n g electr o nic rec or d kee pi n g. W hile c o m p a nies h ave l o n g b ee n re q uire d t o kee p i nci de nt l o gs o n site, l ar ge e m pl o yers n o w will h ave t o s u b mit t h ose rec or ds electr o nic all y. “ F or t he first ti me, a c o m pli a nce o fficer c a n p us h a fe w b utt o ns a n d c a n see t he c or p orate hist or y of i nj uries a n d ill nesses,” B aile y s a ys.

A hist or y of, s a y, f or klift acci de nts at o ne c o m p a n y f acilit y mi g ht c a use O S H A t o j u d ge si mil ar acci de nts at ot her sites r u n b y t h at c o m p a n y m ore h ars hl y, s he s u g gests.

O S H A pl a n ne d t o de vel o p a n o nli ne p ort al t h at w o ul d all o w users t o re vie w a n d c o m p are c o m p a nies’ s afet y rec or ds. Fl y n n, t he L o uisi a n a C he mic al Ass oci ati o n o ffici al, s a ys e m pl o yers were re a d y t o c o m pl y, b ut O S H A h a d t o del a y t he de a dli nes bec a use it h a d f aile d t o set u p t he we bsite.

O nce t he p ort al w as live, it w as h ac ke d wit hi n t w o wee ks, he s a ys.

“I’ m s y m p at hetic t o O S H A, bec a use t he y h ave a n i ncre di bl y di ffic ult j o b,” Fl y n n s a ys.

I n d ustr y re prese nt atives h o p e t he ne xt O S H A he a d re vie ws t he electr o nic rec or d- kee pi n g r ule’s a nti-ret ali ati o n pr ovisi o ns. Fl y n n s a ys t h ose pr ovisi o ns c o ul d hi n der acci de nt i nvesti g ati o ns t h at i ncl u de p ost-i nci de nt dr u g testi n g.

M O R E C O O P E R A TI O N Tr u m p h as pr o p ose d eli mi n ati n g t he U. S. C he mic al S afet y B o ar d, w hic h d oes n’t h ave re g ul at or y or

e nf orce me nt p o wer b ut pl a ys a n i m p ort a nt r ole i n i nvesti g ati n g i nci de nts at pl a nts a n d re fi neries a n d de vel o pi n g rec o m me n d ati o ns f or a ge ncies li ke O S H A a n d t he E P A, Fl y n n s a ys. H o we ver, C o n gress h as m ove d t o c o nti n ue f u n di n g t he b o ar d’s o p erati o ns, w hic h L C A s u p p orts.

Ti m Sc ott, a l a b or a n d e m pl o y me nt att or ne y wit h Fis her P hilli ps, e x p ects O S H A u n der Tr u m p t o f oc us m ore o n c o m pli a nce t hr o u g h c o o p erati o n a n d less o n e nf orce me nt a n d “c alli n g p e o ple o ut.”

U n der t he pre vi o us a d mi nistra ti o n, i n d ustr y re prese nt atives s a y, O S H A w as e a ger t o “c all o ut” a n d “s h a me” r ule bre a kers. M ore rece nt a ge nc y a n n o u nce me nts a d o pt a s ofter t o ne.

As t he ne w a d mi nistrati o n gets its p e o ple i n pl ace, Sc ott e x p ects fe wer vi ol ati o ns will b e cl assi fie d as seri o us o ffe nses w ort h y of t he hi g hest fi nes.

Still, Sc ott s a ys m a n a gers of f acilities t h at f all u n der t he ne w electr o nic rec or d kee pi n g r ules will w a nt t o m a ke s ure t he y’re i n c o m pli a nce.

Ot her wise, his m ai n a dvice is t o “ kee p d oi n g w h at y o u’ve b ee n d oi n g.”

A n y r ules t h at d o c h a n ge w o n’t c h a n ge q uic kl y, a n d O S H A still w a nts t o m a ke s ure e m pl o yees are pr otecte d.

W he n O S H A c o mes t o y o ur j o bsite, t he y c a n re vie w a n yt hi n g a n d e ver yt hi n g, Sc ott w ar ns, n ot j ust w h ate ver m a y h ave c a use d a s p eci fic i nci de nt.

“It’s j ust as i m p ort a nt n o w as it w as u n der t he pre vi o us a d mi nistra ti o n t o re all y b e re a d y f or a n O S H A i ns p ecti o n,” B aile y a d ds.

J OI N O U R T E A M

1 0 1 2 I n d u st r y R e p o rt i s c urr e ntl y t a ki n g a p pli c ati o n s f or a n a d v erti si n g s al e s r e pr e s e nt ati v e.

We ar e l o o ki n g f or a n o ut g oi n g, p ositi v e a n d m oti v at e d i n di vi d u al t o w or k i n a n e x citi n g i n d ustr y. J oi n L o uisi a n a B usi n ess I n c. – o n e t h e c o u ntr y’s pr e mi u m ni c h e m e di a c o m p a ni es. T his o utsi d e s al es r e pr es e nt ati v e is r es p o nsi bl e f or t h e gr o wt h a n d t h e est a blis h m e nt of n e w a c c o u nts i n S o ut h L o uisi a n a.

A p pli c a nts s h o ul d h a v e o utsi d e s al es e x p eri e n c e a n d m ust b e a hi g hl y m oti v at e d s elf-st art er wit h a str o n g w or k et hi c a n d hi g h l e v el of i nt e grit y. K n o wl e d g e of m ar k eti n g a n d/ or i n d ustri al s e ct or is pr ef err e d b ut n ot r e q uir e d. If y o u l o v e s elli n g a n d s er vi n g p e o pl e, a p pl y n o w.

F o r m o r e i nf o r m ati o n o r t o a p pl y e m ail r e s u m e t o K e r ri e Ri c h m o n d at k ri c h m o n d @ b u si n e s s r e p o rt. c o m

T h e i n si d e S C O O P. I n si d e y o u r I N B O X.

T H E A S S O CI A T E D P R E S S

L E A DI N G T H E W A Y: At pr e s s ti m e, S c ott M u g n o w a s Pr e si d e nt Tr u m p’ s n o mi n e e t o l e a d O S H A a s a s si st a nt s e cr et ar y of l a b or. T h e F e d E x Gr o u n d e x e c uti v e h a s s er v e d a s O S H A s u b c o m mitt e e c h air m a n f or t h e U. S. C h a m b er of C o m m er c e.

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TA R GET Y O U R

M A R K E T!

• T h e pr e mi er r e gi o n al r e s o ur c e f or t h e I n d u stri al s e ct or • T h e O N L Y p u bli c ati o n t h at f o c u s e s e x cl u si v el y o n L o ui si a n a’ s i n d u stri al s e ct or • Dir e ct m ail e d t o t h e i n d u str y l e a d er s a n d d e ci si o n- m a k er s

1 0 /1 2

IB U O R D IS T R C O R R ID

U D E S T H E H O U S T O N R E G IO N T IO N A R E A IN C L

B AT O N R O U G E HO USTO N

L A K E C H A RL E S

L AF A Y E T T E N E W O RL E A N S

“

1 0 1 2 I N D U S T R Y R E P O R T H A S B E E N G R E A T F O R O U R M A R K E TI N G I NI TI A TI V E S. W E H A V E B E E N A D V E R TI SI N G O N T H E B A C K C O V E R F O R 4 Y E A R S A N D H A V E S E E N G R E A T R E S U L T S! C H RI S T Y RI T C HI E A u sti n Fir e S y st e m s, Dir e ct or of T e c h n ol o g y & M ar k eti n g

R E S E R V E Y O U R S P A C E T O D A Y!

”

C all K erri e Ri c h m o n d at 2 2 5. 4 2 1. 8 1 5 4 or e m ail kri c h m o n d @ b u si n e s sr e p ort. c o m 52

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

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S P E CI A L A D V E R TI SI N G S E C TI O N

Co m p a ny

S P O T LI G H T S M er c e d e s - B e n z of B a t o n R o u g e B X S I n s ur a n c e At hl o n S ol u ti o n s L L C R e d S ti c k Ar m a t ur e W or k s, I n c.

1 0 1 2i n d u str yr e p ort. c o m

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S P E CI A L A D V E R TI SI N G S E C TI O N

M E R C E D E S- B E N Z O F B A T O N R O U G E AB O UT O U R C O MPA N Y

M er c e d e s- B e n z of B at o n R o u g e d e al s i n n e w a n d c er fi Th e d pr e- o w n e d M er c e d e sB e n z s e d a n s, c o u p e s a n d S U Vs. W e al s o o Th er t h e M er c e d e s- B e n z S pri nt er a n d M etri s v a n li n e u p ( o nl y M er c e d e s- B e n z v a n d e al er /s er vi c e c e nt er i n L o ui si a n a).

T O P E X E C U TI V E S J o e A gr e s ti — D e al er Pri n ci pl e Ni c k P e n t a s — G e n er al M a n a g er / C o - o w n er

YE A R F O U N DE D 1992

GI VI N G B A C K

M er c e d e s- B e n z of B at o n R o u g e i s c o m mi Th e d t o gi vi n g b a c k t o o ur l o c al c o m m u nit y. A s s u c h, w e ar e pr o u d t o s u p p ort t h e f oll o wi n g l o c al or g a ni z a Th o n s: Dr e a m T e a c h er s, f or S c h o ol s, J u ni or L e a g u e B at o n R o u g e, J u v e nil e Di a b et e s F o u n d a Th o n, A m eri c a n R e d Cr o s s, Tr a Th c ki n g H o p e a n d Wr e at h s A cr o s s A m eri c a. W e h o p e y o u’ll j oi n u s i n s u p p ort of t h e s e w o n d erf ul or g a ni z a Th o n s t h at d o s o m u c h f or o ur gr o wi n g c o m m u nit y.

M er c e d e s- B e n z of B at o n R o u g e h a s c of o u n d e d o ur o w n c h arit y n a m e d Dr e a m T e a c h er s.

T hi s c h arit y h a s gr o w n i nt o a l ar g e or g a ni z a Th o n wit h 5 0- pl u s m e m b er s a n d h u n dr e d s of s p o n s or s a cr o s s t h e st at e. A s i s e vi d e nt b y it s n a m e it s p ur p o s e i s t o s u p p ort t h e b e st t e a c h er s a n d a d mi n i str at or s i n t h eir q u e st t o i m pr o v e t h e q u alit y of e d u c a Th o n f or o ur c hil dr e n.

V E HI C L E S T H A T A D D V A L U E

V e hi cl e s ar e a w a y of lif e a n d n e arl y a n a b s ol ut e n e c e s sit y. M er c e d e s- B e n z p a s s e n g er 51 4

1 0/1 0/ 1 21I2 NI DN UD SUTS RT YR YR ERPE OP RO TR T• •FI FIR SRTS TQ UQ AU RATRETRE R2 021081 8

N U M BE R OF E M PL O YEES 1 07

W H AT T O E X PE CTI N T HE F UT U RE

v e hi cl e s n o w r a n g e fr o m t h e v er y a Th or d a bl e C L A f o ur- d o or c o u p e t o t h e l u x uri o u s M er c e d e sM a y b a c h a n d v ari o u s A M G P erf or m a n c e m o d el s.

C o m m er ci al v e hi cl e s ar e a n e c o n o mi c al w a y f or b u si n e s s o w n er s t o i n v e st i n a t o ol t h at will h el p r et ur n di vi d e n d s f or w or k. M er c e d e s- B e n z v a n s b e gi n wit h t h e M etri s W O R K E R C ar g o v a n st art i n g u n d er $ 2 6, 0 0 0 a n d r a n g e u p t o a n e xt e n d e d w h e el b a s e S pri nt er C ar g o v a n wit h p a yl o a d c a p a ci Th e s n e ari n g 3 t o n s.

M er c e d e s- B e n z h a s b e e n t h e m o st p ur c h a s e d l u x ur y c ar br a n d f or t h e p a st t w o y e ar s, a n d wit h c o n st a nt i m pr o v e m e nt s b ei n g m a d e t o a n al r e a d y e x c ell e nt pr o d u ct, gr o wt h i s e x p e ct e d t o c o n ti n u e.

T h e M er c e d e s - B e n z p a s s e n g er v e hi cl e li n e u p i s al w a y s b ei n g u p d a t e d a n d i n cl u d e s s o m e of t h e s af e s t a n d m o s t t e c h n ol o gi c all y a d v a n c e d s y s t e m s a v ail a bl e i n t h e U ni t e d S t a t e s t o d a t e. M er c e d e s B e n z v a n s will b e r el e a si n g a br a n d n e w S pri n t er m o d el f or c al e n d ar y e ar 2 01 9, t h e fir s t m aj or u p d a t e si n c e arri vi n g i n t h e s t a t e s n e arl y a d e c a d e a g o.

M B O B R h a s gr o w n e x p o n e n ti all y o v er t h e p a s t f e w y e ar s a n d c o n ti n u e s t o d o s o.

M er c e d e s - B e n z i s b uil di n g a br a n d n e w pl a n t f or $ 5 0 0 milli o n i n L a d s o n, S o u t h C ar oli n a, s o t h e 2 01 9 S pri n t er c a n b e b uil t s t a t e si d e i n s t e a d of i n G er m a n y, yi el di n g dr a s ti c all y r e d u c e d d eli v er y ti m e s a n d a m or e e ffi ci e n t pr o c e s s.

1 0 9 4 9 Airli n e Hi g h w a y | B at o n R o u g e, L A 7 0 8 1 6 m b o br. c o m

1 0 1 2i n d u str yr e p ort. c o m

S P E CI A L A D V E R TI SI N G S E C TI O N

B X S I n s ur a n c e C oll e a g u e s fr o m a cr o s s t h e st at e

B X SI N S U R A N C E AB O UT O U R C O MPA N Y

B X S I n s ur a n c e h a s gr o w n t hr o u g h t h e str at e gi c m er gi n g a n d a c q ui si fi o n of str o n g r e gi o n al l e g a c y a g e n ci e s t h at n o w o p er at e a s a si n gl e e n Tht y a cr o s s ei g ht st at e s. I n L o ui si a n a, t h e s e a g e n ci e s i n cl u d e Wri g ht & P er c y I n s ur a n c e, W a g u e s p a c k I n s ur a n c e, K n o x I n s ur a n c e Gr o u p a n d T h e P err y A g e n c y.

B X S I n s ur a n c e w a s e st a bli s h e d a s B a n c or p S o ut h I n s ur a n c e S er vi c e s i n 1 9 9 9, a n d w e tr a c e o ur h erit a g e b a c k t o 1 8 8 2 wit h t h e f o u n di n g of T h e P er c y A g e n c y i n B at o n R o u g e.

S O L U TI O N S T H A T E X C E E D E X P E C T A TI O N

W e ar e d e di c at e d t o h el pi n g cli e nt s a c c o m pli s h t h eir p er s o n al a n d or g a ni z a Th o n al g o al s b y cr a Thi n g s ol u Th o n s t h at ar e d e si g n e d t o e x c e e d e x p e ct a Th o n. O ur g o al i s t o s h o w o ur cli e nt s h o w t o pr o t e ct t h eir a s s et s, h o w t o c ar e f or t h eir e m pl o y e e s, a n d h o w t o b e st m a n a g e t h eir i n s ur a n c e-r el at e d c o st s.

Stri vi n g f or p art n er s hi p a n d c o n s ult a Th v e p er f e c Th o n, w e d eli v er t h e hi g h e st st a n d ar d i n br ok er a g e s er vi c e s wit h a gilit y t h at all o w s u s t o o ut p erf or m l o c al c o m p e Tht or s. A d di Th o n all y, w e pr o vi d e i n di vi d u ali z e d a Th e n Th o n t h at l ar g er a g e n ci e s ar e u n a bl e or u n willi n g t o o n a d ail y b a si s.

O ur s p e ci ali z a ti o n s i n cl u d e: B o n d s, B u si n e s s I n s ur a n c e, Cl ai m A n al y ti c s, C o m pli a n c e, E m pl o y e e B e n e fit s, H u m a n R e s o ur c e C o n s ul ti n g, L o s s C o ntr ol, Pr o p ert y & C a s u alt y, P er s o n al a n d Pr e mi er Cli e nt S er vi c e s, P h ar m a c y C o n s ul ti n g, 1 0 1 2i n d u str yr e p ort. c o m

T O P E X E C U TI V E S M ar k h a m M c K ni g h t, Pr e si d e n t & C E O S c o t t N a u gl e, C hi ef O p er a ti n g O ffi c er C hri s B o o n e, Pr e si d e n t of Pr o p er t y & C a s u al t y Di vi si o n K err y Dr a k e, Pr e si d e n t of E m pl o y e e B e n e fi t s Di vi si o n

N U M BE R OF E M PL O YEES 63 0+

B X S I n s ur a n c e’ s E x e c u ti v e T e a m

a n d Ri s k a n d Cl ai m M a n a g e m e nt C o n s ult a ti o n.

D e v el o pi n g c o st- e ff e c ti v e, t ar g et e d pr o gr a m s, w e t ail or c o v er a g e t o pr ot e ct o ur cli e nt s’ u ni q u e e x p o s ur e s — fi n a n ci al, str at e gi c, o p er a ti o n al a n d ot h er wi s e. W e s e p ar at e o ur s el v e s fr o m ot h er s b y f or mi n g l a s ti n g r el a ti o n s hi p s b a s e d o n a ct u all y u n d er st a n di n g o ur cli e nt s’ n e e d s, f ull y e d u c a ti n g t h e m a b o ut t h e c o v er a g e t h e y r e q uir e, a n d pr ovi di n g t h e n e c e s s ar y r e s o ur c e s f or t h eir e m pl o y e e s t o u n d er st a n d w h at i s a v ail a bl e t o t h e m.

T HE O UTL O O K

W e f ull y e x p e ct o ur i n d u str y t o r e m ai n c o m p e ti ti v e fr o m a v ari et y of vi e w p oi nt s. A g e n ci e s will c o n ti n u e t o m er g e wit h ot h er e n ti ti e s, c o m bi ni n g str e n gt h wit h str e n gt h. U n d o u bt e dl y, w e will b e a p art of t h at e q u a ti o n a s w ell. A d di ti o n all y, w e will c o n ti n u e t o s er v e t h e i n d u stri e s w e d o n o w, i n cl u di n g c o n str u c ti o n, e d u c a ti o n, e n er g y, h e alt h c ar e, m u ni ci p ali ti e s, m a n uf a ct uri n g, m ari n e, n o n pr o fit s a n d tr a n s p ort a ti o n.

HE A D Q U A RTE RS P. O. B o x 2 5 0 G ulf p or t, M S 3 9 5 0 2

W H AT T O E X PE CTI N T HE F UT U RE

T h e i n s ur a n c e e n vir o n m e n t i s d y n a mi c t o s a y t h e l e a s t. Si m pl y t a k e a l o o k a t w h a t h a s a n d c o n ti n u e s t o h a p p e n i n t h e r e al m of h e al t h c ar e. A n e x tr a p ol a ti o n t o t h e r e s t of o ur i n d u s tr y a n d t h e i n fi ni t e ni c h e or g a ni z a ti o n s t h a t w e s er v e pr o vi d e s t h e s m all e s t i n kli n g i n t o all of t h e r e g ul a t or y d e m a n d s o ur cli e n t s f a c e. A s B X S I n s ur a n c e, w e ar e u ni fi e d a cr o s s o ur or g a ni z a ti o n i n a w a y t h a t w e h a v e n’ t b e e n b ef or e t o pr o vi d e cli e n t s wi t h l o c al t e a m s t h a t h a v e gl o b al r e s o ur c e s a t t h e r e a d y. M o s t i m p or t a n tl y, w e ar e c o n ti n ui n g t o d e v el o p a n d r e cr ui t c oll e a g u e s w h o will s o o n b e t h e f a c e of B X S I n s ur a n c e.

M A RKET P RESE N CE

O ffi c e s i n Al e x a n dri a, B a t o n R o u g e, G o n z al e s, H a m m o n d, L af a y e t t e, L a k e C h arl e s a n d M e t airi e all o w u s t o e ffi ci e n tl y s er v e all p ar t s of t h e 1 0 /1 2 c orri d or a n d b e y o n d i n t h e s t a t e of L o ui si a n a.

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T h e G ei s m ar, L o ui si a n a, pl a nt i s o n e of t w o m a n uf a ct uri n g pl a nt s s u c c e s sf ull y s er vi n g G ulf C o a st- ar e a c u st o m er s.

A T H L O N S O L U TI O N S L L C O U R HI S T O R Y

O ur r o ot s pr o u dl y b e g a n i n W e st T e x a s 6 5 y e ar s a g o i n 1 9 5 3, wit h t h e f o u n di n g of a s m all oil fi el d c o m p a n y, C h a m pi o n C h e mi c al s I n c. I n 1 9 9 0, C h a m pi o n C h e mi c al s c h a n g e d it s n a m e t o C h a m pi o n T e c h n ol o gi e s.

At t h e Th m e of t h e s al e of C h a m pi o n T e c h n ol o gi e s t o E c ol a b I n c. Th n ali z e d i n 2 0 1 3, t h e c o m p a n y h a d gr o w n t o b e c o m e t h e l ar g e st pri v at el y- o w n e d a n d s e c o n d l ar g e st gl o b al oil Th el d pr o d u c Th o n c h e mi c al c o m p a n y, s er vi n g t h e e n er g y s e ct or wit h m or e t h a n 3, 3 0 0 e m pl o y e e s i n 5 0 c o u ntri e s o n si x c o n Th n e nt s.

I n e arl y 2 0 1 3, t h e J o h n s o n a n d Li n dl e y f a mili e s a c q uir e d C h a m pi o n T e c h n ol o gi e s’ r e Th n er y pr o c e s s a n d w at er tr e at m e nt b u si n e s s u nit s a n d f or m e d At hl o n S ol u Th o n s t o o p er at e t h e pr o c e s s a n d w at er tr e at m e nt u nit s a s o n e i n d e p e n d e nt c o m p a n y.

T h e pr o d u ct s, s er vi c e s a n d m a n y of t h e p e o pl e t h at m a d e C h a m pi o n T e c h n ol o gi e s (i n cl u di n g C h e mt e c h C h e mi c al S er vi c e s L L C, w hi c h h a s a l o n g hi st or y o n t h e G ulf C o a st a n d w a s a c q uir e d b y C h a m pi o n i n D e c e m b er 2 0 1 0) a l e a d er i n t h e i n d u stri al pr o c e s s a n d w at er tr e a Th n g b u si n e s s ar e s Thll i n pl a c e at At hl o n S ol u Th o n s, all o wi n g u s t o o Th er t h e m ar k et s u p eri or s ol u ti o n s t o tr a di ti o n al a n d n e w i n d u str y c h all e n g e s. T hi s i n cl u d e s b uil d i n g u p o n 5 0- pl u s y e ar s of r e s e ar c h a n d d e v el o pm e nt, m a n uf a ct uri n g a n d a p pli c a fi o n e x p eri e n c e f or c o m pl e x c h all e n g e s s u c h a s f o uli n g, s c ali n g, e m ul si o n a n d c orr o si o n.

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W H AT W E D O

At hl o n S ol u ti o n s h a s gr o w n t o b e c o m e a pr e mi er pr o vi d er of s p e ci alt y w at er a n d pr o c e s s tr e at m e nt c h e mi c al s, c u st o mi z e d e n gi n e eri n g s ol u ti o n s, a n d s er vi c e s t o t h e i n d u stri al s e ct or, i n cl u di n g t h e r e ti ni n g, p etr o c h e mi c al, c o ntr a ct m a n uf a ct uri n g & w h ol e s al e, a m m o ni a /f er ffli z er, a n d p o w er / u tili fi e s i n d u stri e s.

W e s er v e m a n y of t h e l ar g e st r e ti n eri e s a n d a m m o ni a pl a nt s i n t h e U nit e d St at e s a n d ar e e x p a n d i n g o ur pr e s e n c e t o i nt er n a ti o n al m ar k et s.

At hl o n S ol u ti o n s d eli v er s c u st o m er v al u e t hr o u g h e n gi n e eri n g a n d d at a dri v e n a n al y si s t o d eli v er t h e b e st s ol u ti o n t o o ur c u st o m er s t hr o u g h m e c h a ni c al c h a n g e, pr o c e s s c h a n g e or s p e ci alt y c h e mi c al a p pli c a ti o n.

U NI Q U E E N GI N E E R E D S O L U TI O N S

O ur “ u ni q u e e n gi n e er e d a p pr o a c h” i s t h e c or n er st o n e of o ur v al u e c o m mit m e nt. W e e m pl o y a t e a m c o n si s ti n g of e x p eri e n c e d ti el d r e pr e s e nt ati v e s, pr oj e ct e n gi n e eri n g a n d t e c h ni c al s u p p ort w h o ar e a c c o u nt a bl e f or i m pr o v e d r eli a bilit y, pr o c e s s o p ti mi z a ti o n a n d v al u e d eli v er y i n c o nj u n c ti o n wit h c u st o m m a n uf a ct ur e d c h e mi stri e s.

O ur a p pr o a c h i s t o pr o vi d e a n e x p eri e n c e d t e a m a c c o u nt a bl e f or r eli a bilit y, o p ti mi z a ti o n a n d v al u e d eli v er y. W e m a n a g e pr o c e s s e s a n d w at er wit h s kill a n d a c o m pl et e u n d er st a n di n g of t h eir i m p a ct, w hi c h all o w s u s t o w or k wit h o ur c u st o mer s t o i d e n tif y ar e a s w h er e w e c a n d eli v er a d di ti o n al v al u e.

T O P E X E C U TI V E S

T o m A m o n e t t, Pr e si d e n t & C E O; Eri c A x c ell, V P D o w n s tr e a m S al e s & Fi el d O p er a ti o n s; L arr y I t o, V P C o n tr a c t M a n uf a c t uri n g & W h ol e s al e; B u si n e s s; Mi c h a el M c S h a n, V P C or p or a t e A c c o u n t s & S tr a t e g y

YE A R F O U N DE D 2 01 3

N U M BE R OF E M PL O YEES 25 0

HE A D Q U A RTE RS

5 5 0 0 N. S a m H o u s t o n P ar k w a y W., S t e. 8 0 0 H o u s t o n, T X 7 7 0 8 6

W E B SI T E

a t hl o n s ol u ti o n s. c o m

W H AT T O E X PE CTI N T HE F UT U RE

O ur s ol u ti o n s, w h e t h er t h e y ar e s p e ci al t y c h e mi c al s, a n e n gi n e er e d a p pr o a c h, a n o v el a p pli c a ti o n or a c o m bi n a ti o n, ar e d e si g n e d t o i m pr o v e t hr o u g h p u t a n d r eli a bili t y, w hil e h el pi n g o ur c u s t o m er s m a xi mi z e pr o fi t a bili t y.

I n a d di ti o n, w e h a v e h el p e d s e v er al c u s t o m er s g ai n milli o n s of d oll ar s a n n u all y i n a d di ti o n al R OI b y i d e n tif yi n g a n d d eli v eri n g v al u e i m pr o v e m e n t pr oj e c t s. I n f a c t, m a n y of o ur c u s t o m er s k n o w t h e v al u e t h e y g ai n s t a c k s u p f a v or a bl y a g ai n s t t h eir s p e ci al t y c h e mi c al s p e n d.

1 0 1 2i n d u str yr e p ort. c o m

S P E CI A L A D V E R TI SI N G S E C TI O N

N e w H e a d q u art er s & T e c h ni c al C e nt e r L O C A TI O N:

E O / P O R e a c t o r & Pil ot Pl a nt L O C A TI O N: B a y p or t ( P a s a d e n a, T e x a s)

H o ust o n

D E S C RI P TI O N: A t hl o n S ol u ti o n s m o v e d i t s h e a d q u ar t er s a n d t e c h ni c al c e n t er i n mi d - A u g u s t 2 0 1 7 t o a c o m bi n e d s p a c e i n n or t h w e s t H o u s t o n.

“I t h a s b e e n a t hr e e - y e ar s e ar c h f or a c o m bi n e d f a cili t y,” s ai d T o m A m o n e t t, pr e si d e n t a n d C E O. “ H a vi n g t h e c or p or a t e o ffi c e a n d t e c h ni c al c e n t er i n o n e s p o t all o w s u s t o b e t t er w or k wi t h e a c h o t h er a n d m or e i m p or t a n tl y s er v e o ur c u s t o m er s.”

T h e l a b or a t or y c a p a bili ti e s, w hi c h s p a n s 1 7, 0 0 0 s q u ar e f e e t, ar e e x t e n si v e a n d m a n a g e d b y a t e a m of e x p eri e n c e d l e a d er s w h o h a v e s u c c e s sf ull y m e t c h al l e n g e s i n i n d u s tri al pr o c e s s a n d w a t er tr e a t m e n t i nd u s tri e s, i n cl u di n g r e fi ni n g, p e tr o c h e mi c al a n d oil fi el d s p e ci al t y c h e mi c al m ar k e t s.

E a c h of t h e l a b s ( A n al y ti c al, Pr oj e c t s, a n d S y n t h e si s) h a s a d e di c a t e d f u n c ti o n a n d l a b m a n a g er, e n s uri n g a c o n si s t e n t f o c u s a n d ti m el y r e s p o n s e t o t h e n e e d s of o ur c u s t o m er s. T h e n e w T e c h ni c al C e n t er i s al s o l o c a t e d n e ar a l ar g e n e t w or k of l a b or a t ori e s s p e ci al i z e d i n s er vi n g t h e e n er g y i n d u s tr y, i n cl u di n g r e fi n er y, p e tr o c h e mi c al a n d oil fi el d pr o d u c ti o n. If n e e d e d, t h e t e a m l e v er a g e s t hi s n e t w or k t o s u p p or t i t s e ff or t s.

1 0 1 2i n d u str yr e p ort. c o m

D E S C RI P TI O N: A t hl o n S ol u ti o n s h a s r e c e n tl y m a d e a c o n si d e r a bl e i n v e s t m e n t i n i t s m a n uf a c t u ri n g c a p a bili ti e s.

I n 2 0 1 6, t h e c o m p a n y l a u n c h e d i t s e t h yl e n e a n d p r op yl e n e o xi d e r e a c t or a t t h e B a y p o r t pl a n t. T h e a bil i t y t o d e v el o p E O / P O - b a s e d p r o d u c t s h a s e x t e n d e d A t hl o n S ol u ti o n s’ r e a c h i n t o a n d b e y o n d i t s t r a di ti o n al m ar k e t s. T h e n e w E O / P O c a p a bili t y e s p e ci all y b o o s t e d A t hl o n S ol u ti o n s’ o ff eri n g t o t h e w h ol e s al e a n d t oll i n g m ar k e t s. T o d a y, t h e y a r e o n e of t h e f a s t e s t g r o wi n g c u s t o m m a n uf a c t ur er s a n d t oll e r s of s p e ci al t y c h e mi c al s i n t h e c o u n tr y.

T h e c o m p a n y c o m pl e t e d c o n s t r u c ti o n of a pil o t pl a n t a t t h e B a y p or t si t e i n 2 0 1 7. T h e pl a n t all o w s t h e c o m p a n y t o b e t t er bri d g e t h e b e n c h t o p d e v el o p m e n t of pr o d u c t s t o m a n uf a c t uri n g. T h e b e n e fi t s a r e f a r - r e a c h i n g f or t h e c o m p a n y a n d t h ei r c u s t o m e r s. T h e pil o t pl a n t, w hi c h i s a f ull y a u t o m a t e d al k o x yl a ti o n r e a c t o r s y s t e m a bl e t o m a n a g e a b r o a d s e t of c h e mi s t ri e s, al l o w s A t hl o n S ol u ti o n s t o e x a mi n e all a s p e c t s of a p r oc e s s b ef or e c o m m er ci ali z a ti o n a t i t s o w n si t e a n d n o t a c u s t o m er si t e, w h er e t h er e i s a c o s tl y ri s k of d o w n ti m e a n d r e d u c e d t hr o u g h p u t.

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S P E CI A L A D V E R TI SI N G S E C TI O N

R E D S TI C K A R M A T U R E W O R K S, I N C. AB O UT O U R C O MPA N Y

W e t h e p e o pl e of R e d S fi c k Ar m at ur e W or k s ar e t h e A m eri c a n Dr e a m m a nif e st. R S A W w a s b or n fr o m t h e h ar d- e ar n e d l e s s o n s w o n b y t h e Gr e at e st G e n er a Th o n. T h e c o m p a n y w a s f o u n d e d i n 1 9 5 9 b y E C H o w ar d. E C s ur vi v e d P e arl H ar b or a n d w a s c h ar g e d t o t hri v e i n t h e el e ctri c m ot or r e p air b u si n e s s a Th er t h e w ar.

R e d S Th c k b e c a m e t h e l e a d er i n el e ctri c m ot or r e p air s fr o m t h e h ar d w or k a n d u nr el e n Th n g d e dic a Th o n t o s er vi c e E C i n s Thll e d i n t h e b u si n e s s fr o m d a y o n e. H e i n s pir e d t h e c o m p a n y c or e v al u e s of d oi n g t h e ri g ht t hi n g, g e Th n g t h e j o b d o n e n o m at t er w h at it t a k e s, p u Th n g t h e c u st o m er Thr st, b ei n g d e p e n d a bl e a n d m a ki n g t h e i m p o s si bl e p o s si bl e.

C ar e y H o w ar d, E C’ s s o n, a n d hi s wif e C at h y c arri e d t h e f a mil y tr a di Th o n f or w ar d, a n d p a s s e d o n t h e k n o wl e d g e, s kill s a n d w or k et hi c t o u s, t h eir s o n s, C ari c k a n d C a s e y H o w ar d. T hr o u g h e x a m pl e, t h e y t a u g ht u s t h at t h e o nl y w a y t o e n s ur e s u c c e s s f or t h e c o m p a n y w a s t o c o n Th n u all y

58

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i n v e st i n it, a n d i n t h e p e o pl e t h at m a k e it w or k.

T hi s i s o ur f or m ul a t o c o n ti n u o u sl y e m p o w er o ur c u st o m er s wit h i n n o v a ti v e s ol u fi o n s t h at k e e p t h e m r u n ni n g wit h e ti ci e n c y a n d s e c urit y.

Dr a wi n g fr o m t h e h ar d- e ar n e d wi s d o m of o ur li n e a g e, w e st e w ar d t h e c o m p a n y t o m ai nt ai n it s p o si ti o n of i n d u str y l e a d er s hi p. T h e f ut ur e i s c h ar g e d wit h s u c c e s s.

E L E C T RI C M O T O R S A R E W H AT W E D O

W e o ti er i n s h o p m ot or r e p air, ff el d s er vi c e a n d n e w pr o d u ct s.

O ur s p e ci alt y i s el e ctri c m ot or s. O ur t e a m i s c o m pri s e d of tr o u bl e- s h o o ti n g e x p ert s w h o will n ot q uit u n fil t h e pr o bl e m i s s ol v e d a n d o ur c u s t o m er s ar e h a p p y. H o n ori n g t h e c ult ur al li n e a g e fr o m t h e Gr e at e st G e n er a ti o n, “ W e G RI T it D o n e.”

C O NSTA NTI MP R OVE ME NT

W e h a v e al s o i n v e st e d i n o ur i nt er n al o p er a ti n g s y st e m s t o e n s ur e t h at R e d S ti c k c o n ti n u e s t o pr o vi d e e x c ell e nt s er vi c e a n d s ol u ti o n s t o o ur v al u e d c u st o m er s. R e d S ti c k stri v e s t o g et a li til e b e ti er e v er y d a y. M ai nt ai ni n g t h e st at u s q u o i s n ot e v e n a n o p ti o n f or o ur c o m p a n y. T h at w o ul d l e a d t o a l a c k of e ti ci e n c y a n d a dr o p i n t h e l e v el of s er vi c e f or o ur c u st o m er s. T h at pr o s p e ct i s u n a c c e pt a bl e. All w e k n o w h o w t o d o i s t o gi v e 1 0 0 % d e di c a ti o n a n d e ti ort t o w ar d s a n y m ot or pr o bl e m w e ar e u p a g ai n st. T h at will n e v er g o a w a y —it’ s i n o ur bl o o d.

T O P E X E C U TI V E S J o e H o w ar d, C a s e y H o w ar d, J e a n n e R o bi n s o n

YE A R F O U N DE D 1959

N U M BE R OF E M PL O YEES 72

HE A D Q U A RTE RS

411 0 U. S. Hi g h w a y 61 S t. Fr a n ci s vill e, L A 7 0 7 7 5

W E B SI T E

r e d s ti c k ar m a t ur e. c o m

W H AT T O E X PE CTI N T HE F UT U RE

W e j u s t c o m pl e t e d a n e x p a n si o n of o ur t e s ti n g c a p a bili ti e s. W e i n s t all e d a 5 0 0 0 k V A t e s t s t a n d wi t h a m a x v ol t a g e of 1 3, 8 0 0 v ol t s. T hi s i s t h e l ar g e s t t e s t s t a n d i n t h e S o u t h e a s t. T hi s will all o w f ull v ol t a g e t e s t r u n s o n m o t or s u p t o 2 5, 0 0 0 H P. W e w or k cl o s el y wi t h t h e p o w er u tili t y i n or d er t o u p gr a d e t h e el e c tri c al s er vi c e t o t h e b uil di n g.

W e ar e n o w a bl e t o h a n dl e l ar g er m o t or s a n d will b e a bl e t o o ff er l ar g er s er vi c e t o o ur c urr e n t c u s t o m er s.

1 0 1 2i n d u str yr e p ort. c o m

C el e b r a ti n g

2 0 17

I N J U R Y F R E E!

0 0 1 p o T

a n d o n e of t h e T O P I N D U S T R I A L

FI R

M S

i n

n iv a t e C o m p a

B E A R D C O N S T R U C TI O N G R O U P, L L C i s a n i n d u stri al c o n str u cti o n fir m s p e ci ali zi n g i n all p h a s e s of ci vil c o n str u cti o n s er vi c e s. O ur m a n a g e m e nt a n d fi el d s u p er vi s or t e a m s h a v e e xt e n si v e e x p eri e n c e i n m a n a gi n g a n d p erf or mi n g o n i n d u stri al f a cilit y e x p a n si o n s a n d m aj or gr a s s r o ot pr oj e ct s. O ur e x p erti s e i n cl u d e s w or ki n g i n t h e m o st c h all e n gi n g a n d u ni q u e s oil c o n diti o n s n ati v e t o t h e G ulf S o ut h r e gi o n.

S A F E T Y

|

Q U A LI T Y |

C O N S T R U C TI O N

S o u t h L o ui si a n a

ie s

Pr

a n ot h e r y e a r

E X C E L L E N C E

O U R MI S SI O N:

T o pr o vi d e o ur c u st o m er s wit h s u p eri or q u alit y, s af e w or k p erf or m a n c e, c o m p etiti v e pri ci n g a n d a hi g h l e v el of c u st o m er s er vi c e.

T o pr o vi d e t h e m o st q u ali fi e d s u p er vi si o n wit h a w or k f or c e w h o h a s a hi st or y of s af e w or k p erf or m a n c e a n d a pr o v e n tr a c k r e c or d.

I N SI G H T

T h e w h y s a n d h o w s of m ai nt ai ni n g t h e oil p ri c e ri s e

T

D A VI D DI S M U K E S

“ T h e bi g wil d c ar d f or 2 0 1 8 will b e U. S. pr o d u cti o n.

T o d at e, t h e drilli n g r e s p o n s e t o r e c e nt pri c e i n cr e a s e s h a s b e e n r el ati v el y m ut e d.”

60

he ne w ye ar is bri n g i n g welc o me relief t o U. S. pr o d ucers. As of mi d-Ja n u ar y, cr u de oil prices h ave cli m be d b y 3 0 % si nce A u g ust 2 0 1 7, t o al m ost $ 7 0 per barrel. fii s welc o me c h a n ge i n price, u nf ort u n atel y, rests u p o n a n u m ber of s o me w h at li mite d a n d te m p orar y f act ors.

F or i nst a nce, t he cat al yst f or t he ne w ye ar c h a n ge i n prices ori gi n ate d i n t he N ort h S e a wit h t he u n pl a n ne d s h ut d o w n of t he F orties Pi peli ne S yste m i n mi d- Dece m ber 2 0 1 7.

Ge o p olitical f act ors h ave als o t ur ne d b ullis h f or prices as O P E C e xte n de d its pr o d ucti o n c uts f or yet a n ot her ye ar; p olitical u nrest st arte d t o a wa ke n i n Ira n, a n d t he p ossi bilit y h as arise n t h at t he U. S. c o ul d re-i m p ose s a ncti o ns, i ncl u di n g o n oil e x p orts, o n Ira n, give n its perceive d l ac k of c o m pli a nce wit h its n ucle ar a gree me nt wit h Wester n n ati o ns.

All of t hese are tra nsit or y i n fl u e nces t h at re all y ca n n ot be e x pecte d t o s u p p ort hi g her prices o n a m ore s ust ai ne d basis.

There is o ne str uct ural c h a n ge, h o we ver, t h at h as arise n over t he past se veral m o nt hs t h at c o ul d hel p t o s u p p ort t hese rece nt c h a n ges i n cr u de oil prices over a l o n ger peri o d of ti me.

Si nce mi d- 2 0 1 7, t here h as bee n a c o nti n u al a n d si g ni fica nt e asi n g of t he hi g h le vel of cr u de oil i nve nt or y t h at h as pl a g ue d m ar kets f or t he past t w o ye ars. U. S. cr u de oil st oc ks pe a ke d i n A u g ust 2 0 1 6 at 1. 3 7 billi o n barrels, a rec or d st ora ge le vel t h at was 2 0 % gre ater t h a n its pri or five- ye ar avera ge.

As of mi d-Ja n u ar y, t h ose cr u de oil st ora ge le vels were d o w n t o j ust 8 % hi g her t h a n t h at five- ye ar avera ge.

W hile t hese tre n ds s u g gest a “t ur n i n g of t he c or ner” f or t he 2 0 1 8 cr u de

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

oil prices, t here are s o me h ar bi n gers re a d y a n d willi n g t o p o p t his ne w ye ar b u b ble.

First, w hile cr u de oil st ora ge n u m bers are m ovi n g i n t he ri g ht directi o n, t he y are still at tre n d a n d n ot yet bel o w five- ye ar avera ges. S o, fr o m a st ora ge pers pective, t he m ar ket ca n be t h o u g ht of as bei n g i n “ bal a nce” a n d n ot necess aril y “ti g ht.”

S ec o n d, w hile cr u de oil st ora ge n u m bers are f alli n g, t he st ora ge n u m bers f or re fi ne d pr o d uct, partic ul arl y g as oli ne, are risi n g. Ulti m atel y, cr u de oil is a derive d de m a n d fr o m re fi ne d pr o d ucts, a n d as t hese re fi ne d pr o d uct i nve nt ories gr o w, t he de m a n d f or cr u de oil, a n d t he a bilit y t o f urt her re d uce cr u de oil i nve nt ories, will f all.

Thi r d, t he ge o p olitics of e ner g y is a fic kle h a n d m ai de n. W hile t ur m oil ca n, i n m a n y i nst a nces, le a d t o perceive d / a ntici pate d s u p pl y i nterr u p ti o ns, it ca n als o cre ate o p p ort u nities f or p us hi n g m ore s u p pl y t o t he m ar ket.

The u nrest i n Ira n is a f u ncti o n of a n u n h a p p y a n d restive p o p ul ati o n t h at is pre d o mi n a ntl y u n der t he a ge of 2 1. W h at better wa y t o q uell t h at u nrest t h a n t hr o u g h i ncre ase d i nter n al sec urit y me as ures a n d i ncre ase d d o mestic s pe n di n g a n d s oci al pr o gra ms —t he c ost of w hic h are pai d f or b y petr o- d oll ars, w hic h i ncre ases, n ot decre ases, Ira n’s i nce ntive t o b ust its O P E C a gree me nt a n d stic k t he c o nse q ue nces t o its fell o w O P E C a dvers ar y a n d re gi o n al p olitical rival, Sa u di Ara bi a.

L astl y, t he bi g wil d car d f or 2 0 1 8 will be U. S. pr o d ucti o n. To d ate, t he drilli n g res p o nse t o rece nt price i ncre ases h as bee n rel ativel y m ute d.

O ver t he past se veral ye ars, U. S. pr o d ucers h ave re acte d al m ost i nst a nt a ne o usl y t o price i ncre ases b y i ncre asi n g drilli n g.

Thi s c o nsiste nt past e m p h asis o n

drilli n g h as dra w n s o me de gree of dis pleas ure fr o m t he fi n a nci al c o m m u nit y, si nce pr o d ucers are c o mi n g u n der i ncreasi n g press ure fr o m e q uit y a n al ysts, a n d ulti m atel y i nves t ors, t o f oc us o n de-le vera gi n g t heir bal a nce s heets, n ot i ncreasi n g drilli n g, wit h t heir ne w-f o u n d price g ai ns.

W hile m ost pr o d ucers see m t o be hee di n g t his i nvest or se nti me nt, it mi g ht n ot l ast ver y l o n g si nce t here are t w o f act ors t h at c o ul d re- e ner gi ze U. S. u nc o nve nti o n al drilli n g activit y.

First, U. S. pr o d ucti o n c o nti n ues t o i ncrease, l ar gel y d ue t o pr o d ucti o n fr o m wells t h at were drille d over t he past se veral years b ut h ave bee n a waiti n g frac ki n g cre ws t o c o m plete.

To d ate, t here are still a l ar ge n u m ber of drille d b ut u nc o m plete d wells (“ D U Cs”) t h at c o ul d be m a de rea d y f or pr o d ucti o n rel ativel y q uic kl y i n s o me of t he m ore pr oli fic pr o d uci n g areas i n t he U. S., li ke t he Per mi a n a n d E a gle F or d basi ns.

A m ore ra pi d c o m pleti o n of t hese D U Cs c o ul d lea d t o a sit u ati o n w here U. S. pr o d ucti o n c o nti n ues t o meet or s ur pass its a ntici pate d 2 0 1 8 f orecast of 1 0 milli o n barrels per d a y.

Sec o n d, t he i m plicati o ns of t he re ce ntl y passe d U. S. t a x ref or m s h o ul d give i n de pe n de nt pr o d ucers at least s o me o p p ort u nit y t o b ot h s h ore u p t heir c h alle n ge d bal a nce s heets a n d re patri ate s o me of t hese ne w-f o u n d t a x re bates i nt o a d diti o n al drilli n g activities.

If t his d oes h a p pe n, t he n we c o ul d fi n d t he rece nt price i ncreases t o be ver y s h ort-live d a n d t o h ave, o nce a g ai n, s o w n t he see ds of t heir o w n de mise.

D a vi d E. Dis m u kes is a professor a n d t he e xec uti ve director of t he Ce nter for E nerg y St u dies at L o uisi a n a St ate U ni versity. He h ol ds a joi nt ac a de mic a p p oi nt me nt i n t he de p art me nt of e n viro n me nt al scie nces.

1 0 1 2i n d u str yr e p ort. c o m

T h e lif e bl o o d of a c o m m u nit y i s c a pit al i n v e st m e nt

n rece nt ye ars, t he B at o n R o u ge re gi o n h as h a d t he g o o d f ort u ne t o b e t he reci pie nt of m a n y ne w a n d e x p a n de d i n d ustri al pl a nts. fie decisi o n t o i nvest occ urs t hr o u g h c aref ul a n al ysis of m ar ket c o n diti o ns, a willi n g ness t o m a ke a l o n g-ter m c o m mit me nt of f u n ds, a belief t h at a n asset will e ar n a re a s o n a ble rate of ret ur n a n d a st a ble, welc o mi n g c o m m u nit y.

Ec o n o mic i nce ntives fr o m g ov er n me nt al a ge ncies c a n l ure pr ojects t o a s peci fic l oc ati o n a n d are a n i m p ort a nt f act or i n m a n a ge me nt’s fi n al decisi o n.

H o we ver, t he c a pit al d oll ars s p e nt t o l oc ate a ne w f acilit y are j ust t he be gi n ni n g of t he c o m mit me nt, a n d pe o ple m ust be p ai d t o desi g n, b uil d, o perate a n d m ai nt ai n t he ne w f acilit y.

O utsi de fir ms t o pr ovi de utili ties, e n gi neeri n g, c o nstr ucti o n a n d s u p plies are nee de d as well. Thi n k u nif or ms, e ar pl u gs, gl oves, gl asses, h ar d h ats, steel-t oe d s h o es, s o a p, p a per t o wels, pri nters, c o m p uters, o ffice f ur nit ure, p allets, me als, c ut ler y a n d “g o b o xes.”

A n d t h at’s j ust a fracti o n of t he nee ds t h at are us u all y p urc h ase d wit h l oc al s u p pliers a n d n ot i ncl u de d i n t he c a pit al s pe n d n u m b er t o ute d at t he i nce pti o n of a pr oject.

E m pl o yees a n d c o nstr ucti o n pr ofessi o n als rel oc ate d t o t he are a will bri n g t heir f a milies, w h o nee d ser vices s uc h as h o usi n g, gr oceries,

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C O N NI E F A B R É

I N V E S TI N G I N L O UI SI A N A: I n M a y 2 0 1 7, H o n e y w ell P erf or m a n c e M at eri al s a n d T e c h n ol o gi e s c o m pl et e d a $ 3 0 0 milli o n m a n uf a ct uri n g f a cilit y i n G ei s m ar. T h e n e w f a cilit y pr o d u c e s t h e c o m p a n y’ s f a st- gr o wi n g S ol sti c e a ut o m oti v e r efri g er a nt. T h e i n v e st m e nt cr e at e d 5 5 n e w j o b s.

d oct ors, h airc uts a n d sc h o ols t o n a me a fe w.

The r ole t h at tec h n ol o g y h as pl a ye d i n ne w i n d ustri al pl a nt c o nstr ucti o n c a n n ot b e overst ate d, a n d b uil di n g ne w pl a nts wit h t he b est ne w tec h n ol o g y is necess ar y t o re m ai n c o m p etitive i n t he gl o b al m ar ket pl ace. It see ms e ver y o ne e m braces r o b otics t hese d a ys, a n d al m ost e ver y sc h o ol h as a r o b otics cl u b t h at e nters r o b otics c o m p etiti o ns.

B ut w here is all t his he a de d?

Ri g ht b ac k t o m ore e fficie nt, m ore a ut o m ate d, i m pr ove d i n d ustri al f acilities. A n d ne w i P h o nes, t o ys a n d g a d gets f or o ur kitc he n t o o, of c o urse.

All t his l ove of r o b otics a n d ne w tec h n ol o g y is heral de d o n o ne h a n d, b ut w he n it c a uses ne w f acilities t o b e b uilt, re-f ur bis he d, a n d m ai n t ai ne d wit h fe wer a n d fe wer p e o ple, t he n we h ave a pr o ble m.

The i n d ustri al c o m m u nit y i n o ur re gi o n h as b ee n acc use d b y

s o me of l osi n g j o bs over ti me a n d h as b ee n p ai nte d as n ot kee pi n g its c o m mit me nt or u p h ol di n g its e n d of t he b ar g ai n w he n give n ec o n o mic i nce ntives.

Thi s c o ul d n ot b e f urt her fr o m t he tr ut h. Alt h o u g h t he n u m b er of j o bs i n direct e m pl o y me nt wit h a n i n d ustri al c o m p a n y m a y h ave eit her ke pt p ace or decre ase d sli g htl y i n t he l ast 2 0 ye ars, t he n u m b er of j o bs cre ate d vi a p urc h ases of o utsi de ser vices a n d s u p plies h as de fi nitivel y i ncre ase d.

The gre ater B at o n R o u ge re gi o n h as e nj o ye d ste a d y e m pl o y me nt gr o wt h over ti me, a n d it’s a si m ple f act t h at t he m ai n re as o n f or t his is d ue t o t he i n d ustri al i nvest me nts t h at h ave l oc ate d here.

The life bl o o d of ec o n o mic pr os p erit y br o u g ht b y t he B at o n R o u ge i n d ustri al sect or c a n o nl y c o nti n ue t hr o u g h c o nsiste nt ne w c a pit al i nvest me nt.

M ar kets c h a n ge ra pi dl y a n d pl a nts m ust i nvest c a pit al t o u p d ate t heir c he mistr y a n d t heir f acilities.

W he n y o ur ne w c ar h as be a utif ul s oft se ats t h at h u g y o ur b o d y or y o u gr o w a wee d-free g ar de n, t hese pr o d ucts are m a de i n o ne of t he f acilities here.

W he n y o ur A n gel S oft tiss ue hel pe d y o u over t he fl u a n d w he n y o u d o n ne d y o ur ne w fleece s we at er w he n it s n o we d, t h at p a per a n d p ol yet h yle ne h a d t o c o me fr o m s o me w here, s o w h y n ot fr o m B at o n R o u ge?

We c a n kee p t hese pl a nts here b y l o weri n g t he h ur dles t o i nvest a n d e nc o ura gi n g a n d s u p p orti n g c o m p a nies t h at e m pl o y o ur frie n ds a n d rel atives.

To d a y, l oc al decisi o n- m a kers c a n hel p c o nti n ue a l o n g hist or y of bei n g a gl o b al s u p plier of c h oice or sc ale b ac k t he activit y a n d let ot hers d o t he m a n uf act uri n g.

W hic h will it be? Eit her w a y, o ur re gi o n is i n f or a n i nteresti n g f ut ure.

C o n nie Fa bré is t he e xec uti ve direct or of t he Gre ater B at o n Ro uge I n d ustr y Alli a nce I nc.

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B

U S I

N E S S

R E P

O R T

L E A D E R S HI P A

C

A

D

E

M

Y

B ef o r e y o u a r e a l e a d e r, s u c c e s s i s all a b o ut g r o wi n g y o u r s elf. W h e n y o u b e c o m e a l e a d e r, s u c c e s s i s all a b o ut g r o wi n g ot h e r s. — J A C K

W EL C H

N o w a c c e pti n g a p pli c ati o n s

A n e x cl u si v e p r o g r a m f o r a d v a n ci n g p r of e s si o n al s, e x e c uti v e s o r s m all b u si n e s s o w n e r s. Off e ri n g t h e b e st of p e r s o n al d e v el o p m e nt, p r of e s si o n al g r o wt h, l e a d e r s hi p e x p o s u r e a n d e x p e ri e nti al l e a r ni n g t h r o u g h di s c o v e r y s e s si o n s a n d g u e st C E O s p e a k e r s.

F O R

M O R E I N F O R M A TI O N

O R T O A P P L Y, VI SI T:

w w w. B R L e a d e r s hi p A c a d e m y. c o m

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C L O SI N G N O T E S E X E C U TI V E M O V E S

G A UT RE A UX

F E D E R A L M O T O R C A R RI E R S A F E T Y A D MI NI S T R A TI O N C at h y G a utr e a u x , f or mer e xec utive direct or of t he L o uisi a n a M ot or Tra ns p ort Ass oci ati o n, h as de p arte d t o t a ke a le a ders hi p p ositi o n wit h t he Fe deral M ot or C arrier S afet y A d mi nistrati o n, t a ki n g t he title of de p ut y a d mi nistrat or of t he F M C S A i n N ove m b er. A n L S U al u m n a, Ga utre a u x s p e nt 3 2 ye ars at t he L M T A, i ncl u di n g 2 9 ye ars as e xec utive direct or. S he re pl aces Da p h ne Je ff ers o n, w h o retire d o n N ov. 3. S he w as as ke d t o j oi n F M C S A b y Presi de nt Tr u m p a n d De p art me nt of Tra ns p ort ati o n S ecret ar y El ai ne C h a o a n d is c urre ntl y t he a ge nc y’s hi g hest-ra n ki n g o ffi ci al.

Tr u m p h as n o mi n ate d R a y m o n d M arti ne z t o he a d t he a ge nc y, b ut he h as n ot yet bee n c o n fi r me d b y t he f ull U. S. S e n ate.

E N LI N K E n Li n k h as a p p oi nte d B arr y E. D a vis t o e xec utive c h air m a n, Mic h a el J. G ar b er di n g t o presi de nt a n d C E O, a n d Eric D. B atc h el d er t o e xec utive vice presi de nt a n d c hief fi n a nci al o ffi cer. e tra nsiti o ns are t he res ult of t he c o m p a n y’s s uccessi o n pr ocess, w hic h w as de vel o p e d a n d a d mi nistere d b y E n Li n k’s b o ar ds of direct ors t o e ns ure strate gic le a ders hi p c o nti n uit y a n d t he c o m p a n y’s l o n g-ter m s uccess.

Davis h as tra nsiti o ne d fr o m his r ole as c h air m a n a n d C E O t o b ec o me e xec utive c h air m a n, a ne wl y cre ate d r ole i n w hic h he will c o nti n ue t o g ui de t he c o m p a n y’s l o n g-ter m strate g y. Davis h as ser ve d as C E O si nce E n Li n k w as cre ate d i n 2 0 1 4, f oll o wi n g t he mer ger of Cr osste x E ner g y a n d De v o n E ner g y C or p., a tra ns acti o n t h at Davis w as i nstr u1 0 1 2i n d u str yr e p ort. c o m

D A VI S

G A R B E R DI N G

C H AVEZ

me nt al i n s p e ar he a di n g. Pre vi o usl y, Gar b er di n g ser ve d as E n Li n k’s C F O si nce 2 0 1 1 a n d presi de nt a n d C F O si nce 2 0 1 6. He h as m ore t h a n 2 5 ye ars of le a ders hi p e x p erie nce i n t he e ner g y i n d ustr y a n d h as hel d se veral e xec utive-le vel p ositi o ns wit hi n E n Li n k a n d its pre decess ors si nce 2 0 0 8, i ncl u di n g se ni or vice preside nt of b usi ness de vel o p me nt a n d fi n a n c e.

B R A U NI NTE RTE C Bra u n I ntertec, a Mi n ne a p olis- b ase d e n gi neeri n g, c o ns ulti n g a n d testi n g fi r m, a n n o u nce d P hili p Gric e h as j oi ne d its G ulf C o ast o perati o ns as pri nci p al a n d are a le a der.

Grice bri n gs dec a des of e x p erie nce i n t he ge otec h nic al, m ateri als testi n g, e nvir o n me nt al, a n d dee p f o u n d ati o ns testi n g fi el ds w or ki n g wit h c o m merci al, m u nici p al, tra ns p ort ati o n, i n d ustri al, p etr oc he mic al a n d e ner g y clie nts al o n g t he G ulf C o ast of Te x as a n d L o uisi a n a. F or t he p ast 2 5 ye ars, Grice h as m a n a ge d a v ariet y of l ar ge pr oject te a ms al o n g t he G ulf C o ast, i ncl u di n g or g a niz ati o n a n d o p erati o n of a m ateri als testi n g te a m f or t he rece nt S as ol L C C P pr oject i n L a ke C h arles.

M ost rece ntl y, Grice ser ve d as se ni or vice presi de nt of Tol u n a y- Wo n g E n gi neers.

PE A B O DY Pa ul Ric h ar d h as b ee n n a me d se ni or vice presi de nt a n d c hief h u m a n res o urces o ffi cer at Pe a b o d y, t he w orl d’s l ar gest priv ate-sect or c o al c o m p a n y. He h as m ore t h a n 3 0 ye ars of h u m a n res o urces e x p erie nce a n d h as b ee n i nstr u me nt al i n le a di n g his pri or or g a ni z ati o ns t o ac hie ve Gre at Pl ace t o Wor k a n d To p Trai ni n g Or g a ni z ati o n desi g n ati o ns. He

BI R C H

GI L B E R T

s p e nt ne arl y 1 5 ye ars as vice preside nt – h u m a n res o urces f or S h a w I n d ustries Gr o u p I nc., a s u bsi di ar y of B er ks hire H at h a w a y I nc. Ric h ar d h ol ds a B. S. i n m a n a ge me nt a n d a n M B A fr o m L o uisi a n a Tec h U niversit y.

CI T G O As dr ú b al C h á v e z h as b ee n n a me d presi de nt a n d C E O of CI T G O Petr ole u m C or p. C h áve z c o mes t o CI T G O wit h m ore t h a n 3 0 ye ars of i n d ustr y e x p erie nce. A c he mic al e n gi neer gra d u ati n g fr o m t he U niversi d a d de l os A n des i n 1 9 7 9, C h áve z b e g a n his c areer at t he El Palit o Re fi ner y i n t he st ate of C ara b o b o, Ve ne z uel a, a n d asce n de d t o b ec o me a direct or at CI T G O a n d Mi nister of t he P o p ul ar P o wer of Petr ole u m a n d Mi ni n g, t he e ntit y res p o nsi ble f or all oil activit y i n Ve ne z uel a.

S E T P OI N T I N T E G R A T E D S O L U TI O N S S et p oi nt I nte grate d S ol uti o ns h as pr o m ote d J e ff Birc h t o t he p ositi o n of presi de nt & C E O fr o m his pre vi o us r ole as c hief o p erati n g o ffi cer. Pri or t o j oi ni n g t he S et p oi nt I nte grate d S ol uti o ns te a m, Birc h w as vice presi de nt of c o m merci al fi n a nce f or t he Dr Pe p p er S n a p ple Gr o u p, w here he w as b ase d o ut of N ort hl a ke, Illi n ois. Birc h h as a B. S. i n b usi ness a d mi nistrati o n fr o m t he U niversit y of L o uisi a n a at L af a yette, is a lice nse d C P A, a n d h as a n M B A fr o m N ort h wester n U niversit y’s Kell o g g Sc h o ol of M a n a ge me nt.

E X X O N M O BI L E x x o n M o bil C or p orati o n’s b o ar d of direct ors h as electe d N eil C h a p m a n t o t he p ositi o n of se ni or vice presi de nt a n d me m b er of t he

ST U MPE R

c or p orati o n’s m a n a ge me nt c o m mittee. As s uccess or t o C h a p m a n, t he b o ar d als o a p p oi nte d J o h n Verit y as presi de nt of E x x o n M o bil C he mic al C o m p a n y. B ot h assi g n me nts were e ff ective Ja n. 1.

B AT O N R O U G E A R E A C H A M B E R E mili a “ E mi” Gil b ert h as j oi ne d t he B at o n R o u ge Are a C h a mber’s e xec utive te a m as se ni or vice presi de nt of i nvest or de vel o p me nt.

Gil bert will oversee t he or g a ni z ati o n’s f u n draisi n g e ff orts, c ultiv ati n g rel ati o ns hi ps i n s u p p ort of B R A C’s fi ve- ye ar strate gic pl a n, i n k Bi gger. Pri or t o j oi ni n g B R A C, Gil bert ser ve d as t he se ni or direct or of de vel o p me nt f or t he L S U C olle ge of Scie nce as a n e m pl o yee of t he L S U F o u n d ati o n.

ME P OL D a ni el St u m p er h as bee n a p p oi nte d as a pr oject m a n a ger of t he M a n uf act uri n g E xte nsi o n Part ners hi p of L o uisi a n a. St u m per h as w or ke d f or over 1 5 ye ars wit h l ar ge a n d s m all c o m p a nies t o a ff ect c h a n ge i n o perati o ns, m a n uf act uri n g reli a bilit y, s u p pl y c h ai n, he alt h s afet y a n d e nvir o n me nt al, m ai nte n a nce, a n d l o gistics. Pre vi o usl y, St u m per als o w or ke d f or D o w C he mic al as a n e xec utive c o ns ult a nt as t he le a d f or c ust o mer pr ojects i n m ateri al h a n dli n g a n d st ora ge, m a n uf act uri n g reli a bilit y a n d o perati o ns.

LOGA After 2 6 ye ars as presi de nt of t he L o uisi a n a Oil a n d Gas Ass oci ati o n, D o n Bri g gs h as a n n o u nce d he is ste p pi n g d o w n. Bri g gs s ai d he will be s uccee de d b y his s o n Gi ff o r d Bri g gs , w h o c urre ntl y ser ves as t he or g a ni z ati o n’s vice presi de nt.

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C L O S I N G N O T E S:

C O M P A N Y NE WS

A B C P E LI C A N I N S T A L L S 2 0 1 8 Mi nci n, Tri a d; D o n nie Bra u d, L. S. B O A R D O F DI R E C T O R S Wo m ac k, I nc.; Sc ott C all a w a y, fie Pelic a n C h a pter of Ass oC aj u n I n d ustries; Sc ott Mc K ni g ht, ci ate d B uil ders a n d C o ntract ors B a nc or p S o ut h I ns ura nce S er vices; h as i nst alle d its 2 0 1 8 b o ar d of a n d Ste ve Wo o ds o n, Wo o ds o n I nc. direct ors. Tre y Cra wf or d wit h The Pelic a n C h a pter of Ass oci ate d Gra d y Cra wf or d C o nstr ucti o n will B uil ders a n d C o ntract ors re prese nts ser ve as t he 2 0 1 8 c h air m a n of t he m ore t h a n 5 0 0 me m b er c o m p a nies b o ar d. R o u n di n g o ut t he b o ar d are acr oss 5 2 p aris hes a n d trai ns t h o u D o n n Peters o n, Gr o u p I n d ustries, s a n ds of st u de nts e ac h ye ar.

C h air- Elect; L ee M a ye u x, C aj u n I n d ustries, S ecret ar y; R ya n GirE X X O N M O BI L R E S E A R C HI N G W E L L o u ar d, W hit ne y B a n k, Tre as urer; TE C H N OL O G Y S h a w n Wors h a m, Jac o bs, Vice E x x o n M o bil U pstre a m Rese arc h C h air E d uc ati o n; Je ff Pl a uc he, B o h C o. h as si g ne d a t hree- ye ar j oi nt de Br os. C o nstr ucti o n C o., Vice C h air vel o p me nt a gree me nt wit h M a g n a Me m ber Gr o wt h; J os h R o u n ds, B o n d t o de vel o p ne w tec h n ol o gies Perf or m a nce, Vice C h air Me m b er t h at c o ul d e n h a nce c ost- e ffective S er vices; Sc ott C o u p er, P A L A-I n e v al u ati o n of well ce me nti n g, c asi n g terst ate, Vice C h air G over n me nt al a n d t u bi n g. The a gree me nt w as f a Rel ati o ns; S ara h Ta yl or, G ulf C o ast cilit ate d b y t he I n d ustr y Tec h n ol o g y Occ u p ati o n al Me dici ne, Vice C h air Facilit at or as p art of its i niti ative t o O utl yi n g Are as; A n dre w L o p e z, a d dress c h alle n ges ass oci ate d wit h C aj u n I n d ustries, I m me di ate Past well dec o m missi o ni n g activities s uc h C h air; C arl os G ui dr y, Tur ner I n d us as pl u g gi n g a n d a b a n d o n me nt. tries Gr o u p; C o nra d B o ur g, Pri m oris S er vices C or p.; D o n nie Davi d, D Y N A MI C WI N S T L P H O O K U P II Ss sC u Ceo Dnstr at e:uct ors; 3r d Keit Qtr h A Cdolepr moaofn, # 1 C O N T R A C T • Ple n d byucti e- moailn orGr f axo uwitp;h yoSurh aa pne prov al or mi nor revisio Be arase d res C o ponstr D y n a ns.mic I n d ustries I nc., a Ne w • A D WILL R U N A S I S u nless a p prov al or fi n al revisio ns Firaremireceive n, Brd obywt nhe close & R ofo ot; Wes I b eri a- b ase d f a bric ati o n a n d ser vice b usi ness to d ay.

• A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees.

pr ovi der t o t he gl o b al oil, g as a n d p etr oc he mic al i n d ustries, a n n o u nce d t h at its fiel d ser vices divisi o n, D yn a mic C o nstr ucti o n S er vices, h as b ee n a w ar de d t he h o o k u p c o ntract f or a m aj or te nsi o n le g pl atf or m ( T L P) t o b e i nst alle d i n e arl y 2 0 1 8.

D C S will s u p pl y site s u p er visi o n a n d craft l a b or t o bri n g t he T L P fr o m i nst all ati o n t o pr o d ucti o n.

S er vices t o b e pr ovi de d i ncl u de pr oj ect m a n a ge me nt, fitti n g / wel di n g, sc a ff ol di n g, c o ati n gs, i ns ul ati o n a n d ri g gi n g. At c o m pleti o n, t he T L P will h ave a c a p acit y of 7 5, 0 0 0 b arrels of oil p er d a y a n d 2 5 milli o n c u bic feet of n at ural g as p er d a y.

S T O N E D E E P W A T E R W E L L HI T S P A Y DI R T St o ne E ner g y C or p. a n n o u nce d drilli n g s uccess at t he dee p w ater Mt. Pr ovi de nce de vel o p me nt well at Mississi p pi C a n y o n Bl oc k 2 8.

St o ne ge nerate d t he pr os p ect a n d o w ns a 1 0 0 % w or ki n g i nterest i n

t he well. The Mt. Pr ovi de nce well e nc o u ntere d a p pr o xi m atel y 1 5 3 net feet of hi g h- q u alit y, pri m aril y oil p a y i n o ne Mi oce ne i nter v al wit h n o visi ble w ater le vel, w hic h e xcee de d pre- drill e x pect ati o ns, t he c o m p a n y re p orte d. C o m pleti o n o perati o ns o n t he Mt. Pr ovi de nce well will be gi n i n t he sec o n d q u arter of 2 0 1 8, wit h first pr o d ucti o n e x pecte d e arl y i n t he t hir d q u arter of 2 0 1 8. I niti al pr o d ucti o n rate f or t he well is pr ojecte d at 3, 0 0 0 t o 5, 0 0 0 b arrels of oil e q uiv ale nt per d a y a n d will be tie d b ac k t o t he 1 0 0 % St o ne- o w ne d P o m p a n o pl atf or m t hr o u g h e xisti n g s u bse a i nfrastr uct ure. St o ne E ner g y is a n i n de pe n de nt oil a n d n at ural g as e x pl orati o n a n d pr o d ucti o n c o m p a n y he a d q u artere d i n L af a yette.

N E W C A Y E N N E PI P E LI N E U P A N D R U N NI N G A meric a n Mi dstre a m Part ners a n n o u nce d t he c o m pleti o n a n d c o m me nce me nt of deliveries o n t he pre vi o usl y a n n o u nce d C a ye n ne Pi peli ne j oi nt ve nt ure bet wee n A MI D a n d Tar g a Res o urces C or p. I niti al c a p ac it y of C a ye n ne will be 4 0, 0 0 0 b arrels

C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 7. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

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Q u alit y S er vi c e » O n Ti m e » E c o n o mi c al » E n gi n e er e d H ar d w ar e » Li n e Fr e e z e » L e a k S e ali n g » H ot T a p s / St o p s »

V o c L e a k R e p air s » E p o x y Pi p e R e p air s »

C o n cr et e P ol y m er » N D E »

T ur n ar o u n d S er vi c e s

G O N Z ALES | H O US T O N | NE W O RLE A NS | L A KE C H A RLES

2 2 5- 6 4 4- 4 9 4 8 | 8 0 0- 6 3 3-1 8 7 3 | 2 4 0 3 S. P hili p p e A v e n u e, G o n z al e s, L A 64

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

1 0 1 2i n d u str yr e p ort. c o m

DA N OS

f or me d b y m ateri al s p eci alists l oc ate d acr oss f o ur o ns h ore l oc ati o ns a n d se ve n o ffs h ore pl atf or ms. C urre ntl y, 4 7 Da n os e m pl o yees w or k o n t hese cre ws f or S hell.

D a n o s w or k er s c el e br at e s af et y mil e st o n e.

per d a y of Y- gra de N G L tra ns p ort c a p acit y, wit h t he a bilit y t o e x p a n d t o m ore t h a n 5 0, 0 0 0 b arrels p er d a y. C a ye n ne will ori gi n ate fr o m t he Tar g a- o perate d Ve nice g as pr ocess i n g pl a nt a n d deliver t o fracti o n ati o n i n s o ut her n L o uisi a n a.

D A N O S HI T S S A F E T Y MI L E S T O N E O n N ov. 1, Da n os’ m ateri als m a n a ge me nt ser vice li ne s u p p orti n g R o yal D utc h S hell’s o ns h ore a n d o ff s h ore pr o d ucti o n o p erati o ns i n t he

U. S. ac hie ve d a n i m p ort a nt s afet y milest o ne: 1 milli o n m a n- h o urs wit h o ut a n Occ u p ati o n al S afet y a n d He alt h A d mi nistrati o n-rec or d a ble i nci de nt. Da n os pr ovi des m ateri als m a n a ge me nt ser vices t o a n u m b er of S hell’s f acilities s u p p orti n g its o ffs h ore o p erati o ns, i ncl u di n g ter mi n als i n M or g a n Cit y a n d H ar ve y. fie sc o p e of w or k i ncl u des ce ntral receivi n g, m a n a ge me nt of critic al s p ares, p urc h ase or der e x p e diti n g a n d w are h o use m a n a ge me nt, p er -

K NI G H T A C HI E V E S R E C A P Cle arl a ke C a pit al Gr o u p a n d K ni g ht E ner g y H ol di n gs a n n o u nce d t h at Cle arl a ke h as s uccessf ull y c o mplete d t he rec a pit ali z ati o n of K ni g ht i n p art ners hi p wit h t he c o m p a n y’s m a n a ge me nt te a m, t he K ni g ht f a m il y a n d ot her e xisti n g st a ke h ol ders.

K ni g ht’s s uccessf ul rec a pit ali z ati o n, c o m plete d u n der C h a pter 1 1 b a n k r u ptc y pr otecti o n, res ulte d i n t he re d ucti o n of m ore t h a n $ 1 7 5 milli o n i n t he c o m p a n y’s t ot al de bt b al a nce.

He a d q u artere d i n L af a yette, K ni g ht is o ne of t he l ar gest priv atel y o w ne d oil fiel d re nt al t o ol c o m p a nies i n t he w orl d.

C O N V E N T F A CI LI T Y A D D S B A R G E U N L O A DI N G C A P A BI LI TI E S S u n C o ke E ner g y Part ners h as b e g u n o fferi n g b ar ge u nl o a di n g ser vices at its C o nve nt ( L o uisi a n a) M ari ne Ter mi n al i n c o m bi n ati o n

wit h ste ve d ori n g a n d b ar ge ser vices pr ovi der C o o per C o ns oli d ate d. The m ulti ye ar a gree me nt bet wee n C M T a n d C o o per C o ns oli d ate d pr ovi des f or t he use of C o o per C o ns oli d ate d’s e xte nsive fl o ati n g cra ne fleet a n d its u ni q ue L o uisi a n a Mi d- Stre a m O ne tra nsl o a d s yste m t o e fficie ntl y u nl o a d c o al, petr ole u m c o ke a n d ot her m ateri als fr o m b ar ges at C M T’s d oc k.

S O UT HE ASTE R N OS HE P R O G R A M T A G G E D WI T H ‘ S U P E RI O R’ A C C R E DI T A TI O N S o ut he aster n L o uisi a n a U niver sit y’s Occ u p ati o n al S afet y, He alt h a n d E nvir o n me nt pr o gra m h as a g ai n bee n rec o g ni z e d b y t he B o ar d of Certi fie d S afet y Pr ofessi o n als as a n e xce pti o n al pr o gra m h ol di n g s u peri or pr o gra m accre dit ati o n.

S o ut he aster n’s O S H E b ac hel or’s de gree is o ne of o nl y a fe w of its ki n d i n t he n ati o n. S o ut he aster n’s de gree is desi g ne d t o meet t he nee ds of i n d ustries i n t he re gi o n t h at de m a n d pr o perl y pre p are d pr ofessi o n als t o w or k i n i n d ustr y s afet y a n d he alt h.

S O M E T HI N G S A R E J U S T O U T O F R E A C H. W o r k e r s’ c o m p e n s a ti o n c o v e r a g e s h o ul d n e v e r b e.

A ff o r d a bl e c o v e r a g e t h a t h el p s o u r b u si n e s s e s a n d c o m m u ni ti e s t h ri v e, b r o u g h t t o y o u b y

L o ui si a n a’ s Hi g h e st R a t e d

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( $ 2 5 M- $ 2 5 0 M)

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L o ui si a n a i n d u stri al pr oj e ct s a n n o u n c e d or pr o p o s e d si n c e J a n. 1, 2 0 1 4, wit h pr oj e ct e d c a pit al i n v e st m e nt of $ 2 5 milli o n- $ 2 5 0 milli o n. S e c o n d li n e s h o w s pr oj e ct e d c a pit al i n v e st m e nt a n d dir e ct n e w j o b s. Li st i s r e pr e s e nt ati v e, n ot c o m pl et e; pr oj e ct st at u s e s c h a n g e fr e q u e ntl y.

1 Fir st B a u xit e $ 2 0 0 M| 1 0 0j o bs L o c ati o n: St. J o h n t h e B a pti st P ari s h St at u s: a n n o u n c e d J u n e 2 0 1 5, b ut still s e e ki n g fi n a n ci n g 2 Di a m o n d Gr e e n Di e s el $ 1 9 0 M | N/ A L o c ati o n: St. C h arl e s P ari s h St at u s: c o m pl eti o n e x p e ct e d Q2 2018 3 E nt er g y $ 1 8 7 M | N/ A L o c ati o n: C a m er o n, C al c a si e u p ari s h e s St at u s: p er mitti n g 4 I n d or a m a V e nt ur e s $ 1 7 5 M| 1 2 5j o bs L o c ati o n: C al c a si e u P ari s h St at u s: c o m pl et e

1 0 O c ci d e nt al C h e mi c al $ 1 4 5 M| 1 2j o bs L o c ati o n: A s c e n si o n P ari s h St at u s: c o n str u cti o n M a y 2 0 1 6-l at e 2 0 1 7 1 1 R e g e n c y E n er g y S er vi c e s $ 1 4 4 M| 6j o bs L o c ati o n: W e b st er P ari s h St at u s: u n d er c o n str u cti o n 1 2 B u n g e N ort h A m eri c a $ 1 4 0 M | N/ A L o c ati o n: St. C h arl e s P ari s h St at u s: u n d er c o n str u cti o n 1 3 A d v a n c e d R e fi ni n g T e c h n ol o gi e s $ 1 3 5 M| 3 2 5j o bs L o c ati o n: C al c a si e u P ari s h St at u s: pr oj e ct h a s b e e n pl a c e d o n h ol d, b ut i s n ot c a n c el e d

1 9 M o m e nti v e S p e ci alt y C h e mi c al s, I n c. $ 6 6 M| 6 8j o bs L o c ati o n: St. C h arl e s P ari s h a n d A s c e n si o n P ari s h St at u s: e x p e ct e d t o b e gi n c o n str u cti o n i n 2 0 1 6

2 4 B oi s e C a s c a d e $ 4 3 M| 4 0 0j o bs L o c ati o n: S a bi n e P ari s h St at u s: c o m pl eti o n pr oj e ct e d f or 2 0 1 7

1 6 Cl e c o/ C a b ot C or p. $ 8 0 M| 2 0j o bs L o c ati o n: St. M ar y P ari s h St at u s: br o k e gr o u n d O ct o b er 2016

2 5 Gr a p hi c P a c k a gi n g I nt er n ati o n al $ 4 1. 5 M | 1, 3 4 0 j o b s L o c ati o n: O u a c hit a P ari s h St at u s: u n d er c o n str u cti o n

8 Ki n d er M or g a n L a. Pi p eli n e e x p a n si o n $ 1 5 1 M| 0j o bs L o c ati o n: S o ut h w e st L a.

St at u s: p er mitti n g

1 7 Fl ori d a F u el C o n n e cti o n, LL C $ 7 5 M| 5 0j o bs L o c ati o n: Orl e a n s P ari s h St at u s: m o v e d fr o m E a st F eli ci a n a P ari s h; p ur s ui n g o p p ort u niti e s at P ort of N e w Orl e a n s

2 6 B al c h e m a n d T a mi n c o $ 4 0 M| 1 1 0j o bs L o c ati o n: I b er vill e P ari s h St at u s: N/ A

9 Pr a x air $ 1 5 0 M | N/ A L o c ati o n: A s c e n si o n P ari s h St at u s: c o m pl eti o n s et f or 2020

1 8 S o ut h w e st L o ui si a n a Bi o e n er g y $ 6 9. 3 M | 4 1 j o b s L o c ati o n: All e n P ari s h St at u s: u n d er c o n str u cti o n

2 8 B a y o u C o s. $ 3 9 M | 1 5- 2 0 j o b s L o c ati o n: I b eri a P ari s h St at u s: c o m pl et e

66

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

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2 2 Vir di a $ 6 0 M| 8 1j o bs L o c ati o n: L af o ur c h e P ari s h St at u s: c o m pl et e

1 5 Pr a x air $ 1 0 0 M + | N/ A L o c ati o n: A s c e n si o n P ari s h St at u s: c o m pl eti o n e x p e ct e d s e c o n d h alf of 2 0 1 8

7 N O L A Oil T er mi n al $ 1 6 2 M| 5 4j o bs L o c ati o n: Pl a q u e mi n e s P ari s h St at u s: u n d er c o n str u cti o n

S A BI N E

2 1 St e p a n C o m p a n y $ 6 0 M| 3 3j o bs L o c ati o n: A s c e n si o n P ari s h St at u s: hiri n g t o b e gi n a s e arl y as 2017

2 3 E pi c Pi pi n g $ 4 5. 3 M | 5 6 6 j o b s L o c ati o n: Li vi n g st o n P ari s h St at u s: c o m pl et e

6 Air Li q ui d e $ 1 7 0 M | N/ A L o c ati o n: St. J a m e s P ari s h St at u s: pl a n ni n g

N A T C HI T O C H E S

2 0 H u nti n g E n er g y S er vi c e s $ 6 2 M| 1 2 3j o bs L o c ati o n: T err e b o n n e P ari s h St at u s: c o m pl et e

1 4 M at h e s o n G a s $ 1 3 0 M| 4 0j o bs L o c ati o n: C al c a si e u P ari s h St at u s: c o m pl et e

5 T e n n e s s e e G a s Pi p eli n e C o. ( Ki n d er M or g a n) $ 1 7 0 M | N/ A L o c ati o n: N ort h e a st L o ui si a n a t o s o ut h w e st L o ui si a n a St at u s: c o n str u cti o n b e g a n M ar c h 2 0 1 7; e x p e ct c o m pl eti o n F e b. 2 0 1 8

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2 7 P C S Nitr o g e n $ 4 0 M| 0j o bs L o c ati o n: A s c e n si o n P ari s h St at u s: p er mitti n g

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( $ 2 5 0 M a n d u p)

BI E N VI L L E

L o ui si a n a i n d u stri al pr oj e ct s a n n o u n c e d or pr o p o s e d si n c e 2 0 0 9 wit h pr oj e ct e d c a pit al i n v e st m e nt of $ 2 5 0 milli o n or m or e.

S e c o n d li n e s h o w s pr oj e ct e d c a pit al i n v e st m e nt a n d dir e ct n e w j o b s. Li st i s r e pr e s e nt ati v e, n ot c o m pl et e; pr oj e ct st at u s e s c h a n g e fr e q u e ntl y. ( L N G = li q u e fi e d n at ur al g a s e x p ort pr oj e ct)

49

1 S a bi n e P a s s L N G ( C h e ni er e E n er g y) $ 2 0 B| 4 0 0j o bs

1 9 L a k e C h arl e s Cl e a n E n er g y ( L e u c a di a C or p.) $ 2. 5 B | 2 1 5 j o b s

2 S a s ol G T L $ 1 5 B| 7 5 0j o bs

2 0 R e v ol uti o n Al u mi n u m $ 2. 4 B | 1, 4 5 0 j o b s

3 Drift w o o d L N G $ 1 4. 5 B | 4 9 8 j o b s

2 1 M ar at h o n P etr ol e u m $ 2. 3 5 B | 6 5 j o b s

4 S a s ol L C C P $ 1 1. 1 B | 7 0 0 j o b s

2 2 C F I n d u stri e s Nitr o g e n, L L C $ 2. 1 B | 9 3 j o b s

4 1 L a k e C h arl e s C o g e n er ati o n, L L C $ 8 2 0 M| 2 1 0j o bs

5 G 2 L N G $ 1 1 B| 2 5 0j o bs

2 3 Li v e O a k L N G ( P ar all a x E n er g y) $ 2 B| 1 0 0j o bs

4 2 E n er g y W orl d U S A $ 8 0 0 M | N/ A

6 L a k e C h arl e s L N G (f or m erl y Tr u n kli n e L N G; B G Gr o u p a n d E n er g y Tr a n sf er P art n er s) $ 1 1 B| 2 5 0j o bs

2 4 Y u h u a n g C h e mi c al, I n c. $ 1. 8 5 B | 4 0 0 j o b s

4 3 P etr o pl e x $ 8 0 0 M | N/ A

2 5 S o ut h L o ui si a n a M et h a n ol $ 1. 7 B | 6 5 j o b s

4 4 S h ell C h e mi c al $ 7 1 7 M| 2 0j o bs

2 6 G 2 X E n er g y $ 1. 6 B | 2 4 3 j o b s

4 5 V al er o R efi ni n g – N e w Orl e a n s, L L C $ 7 0 0 M| 2 4j o bs

2 7 E ur o C h e m $ 1. 5 B | 2 0 0 j o b s

4 6 B a y o u Bri d g e Pi p eli n e $ 6 7 0 M| 1 2j o bs

2 8 S hi nt e c h ( et h yl e n e) $ 1. 4 B | 1 0 0 j o b s

4 7 L o ui si a n a L N G E n er g y, L L C $ 6 4 6. 6 M | 4 4 j o b s

2 9 Bi o Nitr o g e n L o ui si a n a H ol di n g s, L L C $ 1. 2 5 B | 2 5 0 j o b s

4 8 Pi n O a k T er mi n al s $ 6 0 0 M| 7 0j o bs

7 S e m pr a E n er g y/ C a m er o n L N G $ 1 0 B| 1 9 0j o bs 8 F or m o s a ( St. J a m e s P ari s h) $ 9. 4 B | 1, 2 0 0 j o b s 9 V e nt ur e Gl o b al L N G ( Pl a q u e mi n e s) $ 8. 5 B | 2 5 0 j o b s 1 0 C a m bri d g e E n er g y F L N G $ 8 B | N/ A 1 1 D elfi n L N G $ 7 B| 4 0 0j o bs 1 2 M o n k e y I sl a n d L N G ( S o ut h er n C alif or ni a T el e p h o n e & E n er g y) $ 6. 5 B | 2 0 0 j o b s 1 3 M a g n oli a L N G $ 4. 3 5 B | 5 0 j o b s

3 0 A M A gri g e n I n d u stri e s $ 1. 2 B | 1 5 0 j o b s 3 1 C a stl et o n C o m m o diti e s I nt er n ati o n al $ 1. 2 B | 5 0 j o b s 3 2 W a n h u a C h e mi c al Gr o u p $ 1. 1 2 B | 1 7 0 j o b s

1 4 V e nt ur e Gl o b al L N G ( C al c a si e u 3 3 D o w C h e mi c al $ 1. 0 6 B | 7 1 j o b s P a s s) $ 4. 2 5 B | 1 0 0 j o b s 3 4 C or n er st o n e C h e mi c al C o./ D y n o N o b el 1 5 L a k e C h arl e s M et h a n ol, L L C $ 1. 0 2 5 B | 6 5 j o b s $ 3. 8 B | 2 0 0 j o b s 1 6 N u c or St e el U p t o $ 3. 4 B | 1, 2 5 0 j o b s 1 7 A xi all/ L ott e C h e mi c al $ 3 B| 2 5 0j o bs 1 8 I G P M et h a n ol $ 2. 8 B | 3 2 5 j o b s 68

3 8 B e nt el er A G $ 9 7 5 M| 6 7 5j o bs 3 9 E nt er g y ( W e stl a k e) $ 8 7 2 M| 3 0j o bs N A T C HI T O C H E S

4 0 E nt er g y ( St. C h arl e s) $ 8 6 9 M| 2 7j o bs

S A BI N E

VE R N O N

BEA U RE GA R D

4 9 S o ut h er n Cr o s s Tr a n s mi s si o n Pr oj e ct $ 6 0 0 M | N/ A 5 0 M et h a n e x C or p., M et h a n e x 1 $ 5 7 0 M| 3 5j o bs

39

5 1 M et h a n e x C or p., M et h a n e x 2 $ 5 7 0 M| 1 2 0j o bs

61

5 2 S u n dr o p F u el s $ 4 5 0 M| 1 5 0j o bs

5 4 S E T yl o s e ( S hi nt e c h) $ 4 2 0 M| 8 8j o bs 5 5 S hi nt e c h ( et h yl e n e e x p a n si o n) $ 4 0 0 M | N/ A

3 6 M o n s a nt o $ 1 B| 1 0 0j o bs

5 6 H a z el w o o d E n er g y H u b $ 4 0 0 M| 1 2 0j o bs

3 7 M o n s a nt o $ 9 7 5 M| 1 2 0j o bs

5 7 Willi a m s Ol efi n s $ 4 0 0 M| 5j o bs

70

2 4

C A L C A SI E U

6 17 19 13 26 41 15 23 3

5 3 W e stl a k e C h e mi c al ( G ei s m ar) $ 4 2 5 M| 7 0j o bs

3 5 S hi nt e c h ( vi n yl s c o m pl e x) $ 1. 0 2 B | N/ A

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

R E D RI V E R

DES OT O

7 CA ME R O N

5 1

14 11

12 23

R E D = P R O J E C T KI L L E D B L U E = N E W P R O J E C T 1 0 1 2i n d u str yr e p ort. c o m

J

U NI O N

E

M O RE H O USE

WEST C A R R OL L EAST C A R R OL L

LI N C O L N

O U A C HI T A

RI C H L A N D M A DI S O N

5 9 N u St ar E n er g y $ 3 6 5 M| 3 2j o bs

6 7 A v al o n R ar e M et al s Pr o c e s si n g, L L C $ 3 0 0 M| 2 2 5j o bs

6 1 W e stl a k e C h e mi c al ( L a k e C h arl e s) $ 3 5 0 M| 2 5j o bs

F R A N K LI N

6 2 E x x o n M o bil C or p. ( C h e mi c al) $ 3 3 6 M| 3 0j o bs

TE NSAS WI N N

68

7 2 Sil uri a Si z e a n d l o c ati o n N/ A

6 5 B A S F ( G ei s m ar) $ 3 0 0 M| 1 0 0j o bs

G RA NT

T O T A L P O T E N TI A L C A PI T A L I N V E S T M E N T:

69

$ 1 7 5. 2 B +

C O N C O R DI A

T O T A L P O T E N TI A L DI R E C T N E W J O B S:

R A PI D E S

6 9 T o p C h e m P oll o c k (f or m erl y I n v e sti m u s F ori s) $ 2 6 5 M| 8 5j o bs

7 1 M ar u b e ni, I n c. (f or m erl y G a vil o n Tr a di n g) $ 2 5 0 M| 1 0 0j o bs

6 4 N F R Bi o E n er g y $ 3 1 2 M| 4 5 0j o bs

L A S ALLE

6 8 G er m a n P ell et s L o ui si a n a, L L C/ L o ui si a n a P ell et s, I n c. $ 2 9 0 M| 8 0j o bs

7 0 P P G I n d u stri e s, I n c. $ 2 6 4 M| 2 7j o bs

6 3 V al er o $ 3 2 5 M | N/ A C A TA H O U L A

20

6 6 H o n e y w ell I nt er n ati o n al $ 3 0 0 M| 8 0j o bs

6 0 S y n g a s E n er g y $ 3 5 0 M| 1 0 0j o bs

JACKSON

C AL D WEL L

5 8 S h ell M oti v a $ 3 8 0 M| 1 0 0j o bs

7 3 E x x o n M o bil A y et-t o- b e d et er mi n e d a m o u nt of t h e c o m p a n y’ s a n n o u n c e d $ 2 0 B i n v e st m e nt o n t h e G ulf C o a st i s pl a n n e d f or t h e p etr o c h e mi c al c o m pl e x i n B at o n R o u g e

1 2, 5 1 5 +

52 AVO YELLES

29

WEST F E LI CI A N A

EAST F E LI CI A N A

W A S HI N G T O N

S T. H E L E N A

E V A N G E LI N E

ALLE N

P OI N T E C O U P E E

S T. L A N D R Y

T A N GI P A H O A

56

WEST BAT O N R O U GE

55

64

46 I B E RIA

57 65 67 53

44 S T. J O H N 50 51 2 5 T H E B A P TI S T 24 71 30 48 22 66 45 43 32 16 63 36 S T. J A M ES 8 2 1 58 60 59 34 40 37 ON

I B E R VI L L E

27

N SI

S T. M A R T I N

L A F AY E T T E

35

33

A S S U M P TI O N

V E R MI LI O N

S T.T AM M A N Y

LI VI N G S T O N

CE

A C A DI A

54

62

AS

JEFFE R S O N D A VI S

28

EAST BAT O N R O U GE

S T. C H A R L E S

JEFFE R S O N

18 L AF O U R C HE

S T. B E R N A R D

47 9

P L A Q U E MI N E S

I B E RIA

1 0 1 2i n d u str yr e p ort. c o m

31

S T. M A R T I N S T. M A R Y

S o ur c e s: L E D , L E O, A m eri c a n Pr e s s, 1 0/ 1 2 r e s e ar c h

O RLE A N S

TE R RE B O N NE

10

42 1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

69

C L O S I N G N O T E S:

MY T O U G HES T C H ALLE N GE

N e wt o n T h o m as B Y D A VI D J A C O B S

T HE C H ALLE N GE fi o m as p a ys u p t o 6 0 % of his c o m p a n y’s pre-t a x e ar ni n gs t o his e m pl o yees. The ra n k a n d file is c o m p e ns ate d first a n d alw a ys get t heir b o n uses, n o m atter h o w well t he c o m p a n y perf or ms, w hile t o p m a n a geme nt at t he c o m p a n y is c o m p e ns ate d l ast.

W he n he be g a n pl a n ni n g f or t he f ut ure of his est ate, Th o m as w a nte d t o m a ke s ure t he c o m p a n y w o ul d c o nti n ue t o pl ace t he s a me v al ue o n its e m pl o yees after he w as g o ne. B ut h o w? If t he c o m p a n y w as s ol d, t he ne w o w ners pr o b a bl y w o ul d w a nt a bi g ger s h are of t he e ar ni n gs. A n e m pl o yee st oc k o w ners hi p pl a n di d n’t see m fe asi ble eit her, i n p art bec a use Th o m as fe are d t h at f ut ure n o n o w ner e m pl o yees mi g ht n ot b e tre ate d f airl y. “ H o w d o y o u get o ff t he ti ger, a n d n ot feel li ke y o u’ve c o m pr o mise d t he pri nci ples a n d v al ues y o u’ve es p o use d?” he s a ys. “ There were n o m o dels.”

P O SI TI O N: C O M P A N Y:

O w n er T h e N e wtr o n Gr o u p

W H A T T H E Y D O:

H e a d q u art er e d i n B at o n R o u g e, T h e N e wtr o n Gr o u p i s o n e of t h e l ar g e st pri v at el y o w n e d s p e ci alt y i n d u stri al c o n str u cti o n c o m p a ni e s i n t h e c o u ntr y a n d i s a m o n g t h e n ati o n’ s l e a di n g i n d u stri al el e ctri c al a n d i n str u m e nt ati o n pr o vi d er s.

C A R E E R: T h o m a s e ar n e d a b a c h el or’ s d e gr e e i n el e ctri c al e n gi n e eri n g fr o m L S U i n 1 9 6 7.

H e b e g a n hi s c ar e er a s a pr oj e ct e sti m at or wit h S o ut h er n I n str u m e nt s a n d e v e nt u all y s er v e d a t w o- y e ar t er m a s pr e si d e nt. H e l eft S o ut h er n I n str u m e nt s t o st art N e wtr o n, a u ni o n i n str u m e nt ati o n c o ntr a ct or, i n 1 9 7 3. T h e N e wtr o n Gr o u p w a s f or m e d i n 1 9 8 3 a s t h e p ar e nt c o m p a n y of N e wtr o n I n c. a n d Tri a d El e ctri c & C o ntr ol s I n c.

T H E R E S O L U TI O N I n his will, Th o m as d o n ates t he c o m p an y t o t he B at o n R o u ge Are a F o u n d ati o n.

The c o m p a n y will be oversee n b y a b o ar d t h at, be y o n d t he tra diti o n al missi o n of m a ki n g s ure t he b usi ness re m ai ns pr o fit a ble, is als o c h ar ge d wit h seei n g t h at it st a ys tr ue t o t he c ore v al ues Th o m as h as est a blis he d. W he n m a ki n g t h at deter mi n a ti o n, t he b o ar d will rel y o n a n a n n u al s ur ve y of l o n gti me e m pl o yees. “It is ki n d of t he h ol y grail of t he c o m p a n y,” Th o m as s a ys. “ The c h arter of t h at f o u n d ati o n b o ar d is t o l o o k at t he res ults a n d a ffir m t h at t he c o m p a n y is getti n g hi g h sc ores fr o m its e m pl o yees a n d is livi n g b y t he v al ues I’ve es p o use d.” Fr o m 4 0 % t o 6 0 % of e ar ni n gs e ac h ye ar will g o t o e m pl o yee b o n uses, a n d 4 % t o 6 % will b e give n t o c h arit a ble c a uses.

70

1 0/ 1 2 I N D U S T R Y R E P O R T • FI R S T Q U A R T E R 2 0 1 8

D O N K A D AI R

T HE TA KE A W AY It will be i m p ossi ble t o tr ul y k n o w w het her t he s yste m is w or ki n g u ntil after Th o m as h as p asse d a w a y. B ut si nce p utti n g t he pl a n i n m oti o n m ore t h a n a d o z e n ye ars a g o, he li kes w h at he’s see n s o f ar. The b o ar d is n’t m a ki n g decisi o ns yet, b ut t he y’re le ar ni n g h o w t he c o m p a n y w or ks.

E m pl o yee s atisf acti o n is hi g h, a n d t he c o m p a n y is m ore fi n a nci all y s uccessf ul t h a n e ver, ti o m as s a ys. tie e m pl o yees re ali z e t he s yste m is i n pl ace f or t heir be ne fit, he s a ys, a n d t he y’re w or ki n g h ar d t o re w ar d his f ait h. “I a m c o nvi nce d it will w or k be y o n d m y life s p a n,” fi o m as s a ys. “I’ m tr yi n g t o cre ate a m o del t h at will s ur vive me.”

1 0 1 2i n d u str yr e p ort. c o m

I N D UST RY

LE A DE R I S C, a pri v at el y h el d c o m p a n y, i s a n i n d u stri al el e ctri c al, i n str u m e nt ati o n, a n d c o ntr ol s c o m p a n y off eri n g e n gi n e eri n g, c o n str u cti o n a n d m ai nt e n a n c e s er vi c e s. F o u n d e d i n 1 9 8 9 i n B at o n R o u g e, L o u si a n a, w e h a v e gr o w n t o e m pl o y o v er 2, 5 0 0 p e o pl e pri m aril y i n t h e s o ut h er n r e gi o n of t h e U nit e d St at e s. T hr o u g h o ur r e gi o n al offi c e s, w e s er vi c e t h e c h e mi c al pr o c e s si n g, p etr o c h e mi c al, r efi ni n g, p o w er, a n d p ul p & p a p er i n d u stri e s.

• A D WILL R U N A S I S u nless a p prov al or fi n al revisio ns are receive d by t he close of b usi ness to d ay.

• A d ditio n al revisio ns m ust be re q ueste d a n d m ay be s u bject to pro d uctio n fees.

C aref ully c heck t his a d for: C O R R E C T A D D R E S S • C O R R E C T P H O N E N U M B E R • A N Y T Y P O S T his a d desi g n © Lo uisi a n a B usi ness, I nc. 2 0 1 8. All ri g hts reserve d. P ho ne 2 2 5- 9 2 8- 1 7 0 0 • F ax 2 2 5- 9 2 6- 1 3 2 9

E N GI N E E RI N G

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C O N S T R U C TI O N |

M AI N T E N A N C E

S T O P FI R E B E F O R E I T S T A R T S. Fir e a n d G a s S y st e m s

H y dr a nt s/ M o nit or s/ PI V s

Fir e S u p pr e s si o n S y st e m s

F o a m S y st e m s a n d pr o d u ct s

Fir e w at er Di stri b uti o n S y st e m s

Fir e E xti n g ui s h er s

S pri n kl er/ D el u g e S y st e m s

M a s s N oti fi c ati o n S y st e m s

L O UI SI A N A

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MI S SI S SI P PI |

8 7 7- 3 1 7- 3 4 7 3

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