Conferences

2007 Management Conference Speaker Abstracts

Dr. Uma Chowdhry - Fueling our Future

Manuel Junco - EPC Contractors: Changing with the Industry

Chris Ross - Terra Incognita: A Navigation Aid for Energy Leaders

Jim McIlvenny - Paradigm Shift? : In Search for Advantaged Sustainable Energy & Feedstock

Alexis T. Bell - Research Opportunities for the Synthesis of Chemicals from Non-Traditional Feedstocks

Robert P. Wilson - Alternative Fuel Scenarios in the Automotive Sector (2010-2025)

Richard D. Witt - Industrial Gasification: From Concept to Reality

Susan Dio - Addressing the Upcoming Challenges in U.S. Refining

Linda Hicks - Break-through Energy Reduction Paradigms With Creative Cross Functional Efforts

Christine Dean - The Forest Biorefinery

Michael Schaal - The Outlook for Domestic Fossil Fuel Prices and Availability

H.J. Leimkuehler - Innovations for a Sustainable Future

Charles E. Bayless - With oil and gas prices near an all time high--many question, "Where are we going?"

Paul F. Bryan - Diversifying Liquid Transportation Fuels through Biofuels and other Unconventional Sources

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Fueling our Future
Dr. Uma Chowdhry
Sr. Vice President & Chief Science & Technology Officer
E. I. DuPont de Nemours & Co.

Renewable energy that can obviate the risk of global warming & reduce our dependence on depletable feedstocks, is on the minds of technology leaders today. The goals of simultaneous environmental protection and sustainable economic growth, while daunting, pose exciting challenges for science and technology. Examples from DuPont's commitment to sustainability will be used to illustrate progress towards these goals. Specific examples of how Corporate R&D in cooperation with government funded R&D, is being used to accelerate the commercialization of viable biofuels & energy efficient solar cells, will be discussed. Investment in innovation for a sustainable future is at a tipping point and with cooperation across public and private sectors, the challenges of achieving efficient, affordable energy sources for a safer world now seem plausible.

EPC Contractors: Changing with the Industry
Manuel Junco
Senior Vice President, Downstream – Energy and Chemicals
Fluor Corporation

The energy sector is currently witnessing an increase of projects in every facet of the industry – upstream, downstream, chemicals and power. The projects are getting larger and more complicated where the client team will often include a major international industry client and a national company that are figuring out how to split responsibilities, ownership, permitting and profitability among themselves. Companies are looking at increasing the number of “unconventional” projects which include tackling new technologies which equates to more risk for EPC contractors. And, as the demand for resources of an aging workforce increases, there is an inadequate replenishing with young graduates. On top of all of that, there is a lack of materials, engineered equipment, and construction equipment. This discussion will look at how the engineering, procurement and construction (EPC) industry is adjusting to this ever-changing market for the present and looking forward.

Terra Incognita: A Navigation Aid for Energy Leaders
Chris Ross
Vice President
CRA International, Inc.

In this paper, the author describes the strategic challenges that are facing energy executives over the next several decades, and propose an approach to meeting them. The energy system created by and for the OECD countries is not scalable to accommodate the aspirations of China and India. Most hydrocarbon resources are owned by countries whose natural inclination is to conserve rather than rapidly grow production. There is a tension between concern over supply security, which suggests expanding use of coal, and concern over the climate, which suggests the opposite. High oil and gas prices are leading indicators of a Phase Change in the global energy complex that will create opportunities for those who can position themselves downwind of the new trends and threats to those who wish to continue doing the same things in the same way. The paper describes how the global energy complex is being reconfigured and suggests a new scope for hydrocarbons transformation plants of the future. Based on over twenty interviews with leaders of energy companies, the paper proposes a Charter for the next generation of leaders as they approach a period of massive change. (This paper is based on a new book by the author and Lane Sloan entitled Terra Incognita: A Navigation Aid for Energy Leaders, available from PennWell Books.)

Paradigm Shift? : In Search for Advantaged Sustainable Energy & Feedstock
Jim McIlvenny
President, Asia Pacific & Greater China
The Dow Chemical Company

Dow started China activities in the 1930's and has now a turnover of roughly $3 bn a year. The most significant growth has been achieved on the back of the competitive advantage of Dow's global manufacturing and supply chain capabilities, and the solid economic expansion of the country in the last years. US manufacturing bases will continue to supply Dow China with the majority of the trades, but there are growing concerns about the structural cost pressures facing the US manufacturers - one of the issues being the rising cost of energy and feedstock for the chemical industry, against the backdrop of the increased environmental concerns.

Whilst the industry is doing its best to improve energy efficiency, minimize its environmental impacts and increase its competitiveness, for example Dow has cut energy consumptions per pound of product by more than 20% between 1996 to 2005, the question remains how the current energy and feedstock prices and availability would drive the options in resolving the conflict between energy, growth and the environment. One of the examples is Dow China's study into coal conversion, utilising technological advances to convert abundant, low cost hydrocarbon sources into chemicals & plastics, whilst minimizing environmental footprints, which is also consistent with Chinese Government policy to utilise its vast coal reserves as a clean and efficient means to fuel its rapid economic expansion.

Research Opportunities for the Synthesis of Chemicals from Non-Traditional Feedstocks
Alexis T. Bell
Department of Chemical Engineering
University of California

For most of the past 100 years, petroleum and natural gas have served as the principal feedstocks for the chemical industry. The rising demand for petroleum and natural gas to produce transportation fuels, commercial and residential heating, and electric power generation have driven up the price of these sources of the building block chemicals on which the CPI is based. This is causing the industry to assess the availability of alternative feedstock sources such as stranded natural gas, biomass, and coal and to examine strategies for producing traditional building block chemicals (i.e., ethylene, propylene, benzene) from these sources and, alternatively, making desired products from non-traditional building block chemicals (i.e., methanol, levulonic acid, etc.). The aim of this talk is to identify a portfolio of research opportunities that might be pursued by researchers in academic institutions with either federal support or in partnership with industrial sponsors. It will be shown that most of the challenges lie in the discovery and development of new catalysts and solvents.

Alternative Fuel Scenarios in the Automotive Sector (2010-2025)
Robert P. Wilson
Managing Director, Clean Energy Unit
TIAX LLC, Cambridge, MA

Kevin Lindemer and Gil Rogers
Global Insight, Lexington MA

In this paper we review the changing driving forces that are shifting automotive fleet attention from historical alternative fuels such as compressed natural gas and methanol over to non petroleum based fuels such as biodiesel, ethanol, dimethyl ether, and coal-to-liquids based synthetic diesel. Distinct regulatory and fuel price scenarios are used to develop scenarios for the long range evolution of these fuels in the automotive market, with various assumptions as to the pace of technical advances in both fuel production/distribution processes and in alternative-fuel compatible vehicle designs. The impact of emerging automotive markets on these scenarios is discussed.

Industrial Gasification: From Concept to Reality
Richard D. Witt
Vice President, Developing Technologies
Eastman Chemical Company

It may seem counter-intuitive: Build new production in the U.S. chemical industry based on low-cost, domestic feedstocks. After all, most of the industry's investment has been decidedly outside the United States in recent years, following a long trend of co-locating in regions of the world where hydrocarbon costs are low and supplies are plentiful. That trend has only been exacerbated as the prices of crude oil and natural gas in the U.S. continue to escalate. But there is new hope for the North American chemical industry, even if it does turn the accepted model on its head. Industrial gasification – using less expensive coal and other domestic feedstocks – is slowly gaining acceptance as a viable alternative for the production of key raw materials. Eastman – the first company to commercialize a coal gasification facility in the U.S. – has said it intends to increase from 20 percent to 50 percent the volume it derives from gasification-based raw materials. Gasification allows it to take advantage of the lower costs of solid hydrocarbons versus traditional gas and oil and to stake out a low, stable cost position. This presentation will outline Eastman's strategy and look at the relative risks and considerations as this new, counter-intuitive model moves from concept to reality.

Addressing the Upcoming Challenges in U.S. Refining
Susan Dio
Works General Manager
BP Texas City Chemicals

With the uncertainty surrounding the availability of certain segments of the world’s oil supply and an increasing emphasis on environmental concerns, the energy industry is in a period of massive change. This is certainly true for American refining, where large-scale adjustments are already underway. The supply and demand balance for fuels is shifting, helping to increase the interest in biofuels and other energy sources. Automobile manufacturers are also working to increase the fuel efficiencies through technologies such as hybrid automobiles. With these changes, refining companies are working to understand the upcoming trends and must adjust accordingly. Many of the American refineries are also moving to upgrade their refining capacity to match more stable supply crude oils. Projects such as the BP Whiting Canadian oil project, which had been previously considered not economically viable, have become more important as a future source of fuel supply. Many companies, like Marathon at their Garyville refinery, are installing larger cokers to allow for increase volumes of increased heavy sour crudes. With no new facilities likely to be constructed in the near future, existing refineries are also moving to increase their efficiency of their refining processes by investing in newer technologies and reliable infrastructure while developing long-term plans to eliminate obsolete systems.

Break-through Energy Reduction Paradigms With Creative Cross Functional Efforts
Linda Hicks
Vice President,
Corporate Technology and Manufacturing
Vertellus Specialties Inc.

When natural gas could be purchased for $3.00/MCF and this pricing was stable, energy projects were difficult to justify within our operations. Capital payback was not there, competitive pressures were weak, and raw material prices were less volatile, all of which led to complacency. These dynamics have all shifted in the past three years for our business. Our manufacturing can no longer maintain status quo. It's a business imperative to remain the low cost producer and having an aggressive productivity improvement plan around energy consumption is a critical element of our business strategy.

This presentation will outline our journey to achieve a 47% reduction in the amount of energy consumed per metric ton of production at our largest integrated site. This type of step change improvement required collaborative creative thinking across all areas of our organization including technology, manufacturing, supply chain management and finance. The effort cannot stop at project implementation, the presentation will share how monitoring key metrics and holding the gains is also critical to success.

The Forest Biorefinery
Christine Dean
Vice President, Forestry and Timberlands R&D
Weyerhaeuser Company

The forest products industry has long used the renewable, sustainable forest resource to meet important human needs for building materials, packaging, and communications papers. Forest residuals have traditionally supplied a significant fraction of the fuels required for internal manufacturing system needs, but it is only recently that energy and chemicals have begun to be viewed as important new markets on their own merit. This paper explores the potential of intensively managed forestlands to address the sharply increasing demand for renewables-based energy and chemicals while preserving the capability to supply high value softwood sawtimber. Additionally, we speculate how emerging technology for the conversion of lignocellulosics will lead to large-scale production of renewable transportation fuels and chemical intermediates. We conclude that as climate change pressures build, sustainable carbohydrate resources will become increasingly competitive with hydrocarbons, and intensively managed forestlands will become an important source of raw materials for tomorrow’s energy and chemical industries.

The Outlook for Domestic Fossil Fuel Prices and Availability
Michael Schaal
Director, Oil and Gas Division
Office of Integrated Analysis and Forecasting
U.S. Energy Information Administration

Annual Energy Outlook 2007 projections are presented from the perspective of feedstock costs to the U.S. chemical industry. The presentation focuses primarily on projected crude oil, natural gas, and coal prices.

The themes of this presentation are:

Following an expected decline in prices over the next few years, over the long-term, domestic fossil fuel prices are projected to rise in real dollar terms reflecting both the depletion of conventional fossil resources, the cost of producing non-conventional substitutes, and other factors.
The long-term availability of these hydrocarbon resources is not in question, only the cost of obtaining those resources.
Of the three primary hydrocarbon sources, crude oil and coal prices are projected to increase by 0.2 percent per year from 2005 through 2030, while natural gas prices are projected to decline by 0.9 percent per year from 2005 through 2030.
The relatively lower projected future prices for natural gas reflect the availability of relatively low cost domestic and foreign gas supplies. Domestic growth in unconventional gas production from gas shale deposits, tight sandstones, and coal seams, along with future availability of conventional natural gas from the Alaska North Slope and liquefied natural gas imports, are projected to keep natural gas prices lower than what would otherwise be expected.
U.S. natural gas prices will increasingly reflect world natural gas supply and demand conditions, as the LNG trade increasingly arbitrages natural gas price differences that occur throughout the world.
Because domestic natural gas production is projected to remain relatively high over the long-term, domestic natural gas liquids production (ethane, butane, propane, etc.) is projected to remain relatively constant through 2030.

Innovations for a Sustainable Future
H.J. Leimkuehler
Director of Process Design
Bayer Technical Services

Sustainable supplies of feedstocks and process energy are a prerequisite for the future development and survival of the Chemical Process Industry. Companies are, therefore, increasing efforts to secure such sustainable supplies. Governments are implementing programs in support of this development.

In the presentation, this industrial development is highlighted from a European perspective. The author is employed at Bayer AG – the headquarters of which are located in Germany. Bayer is a global enterprise, with core competencies in health care, nutrition, and high-tech materials. Particularly in the field of high-tech materials we heavily rely on the supply of energy and raw materials, due to large material and energy flows.

Three topics will be elaborated upon throughout the presentation: the increase of energy efficiency in our processes, the supply of regenerative fuels, and the utilization of renewable feedstocks to replace fossil resources.

The most straightforward approach to minimizing the use of fossil resources and to save on costs is by reducing required energy consumption. Thus, the enhancement of the energy efficiency of our processes has a long and important history at Bayer. Throughout the early 90’s, we executed several projects that were designed to find innovative ways of maximizing the reuse of energy in our processes. Since that time, the focus has been on the development of new, integrated processes with even higher efficiency. Some interesting examples for innovations will be highlighted in the lecture: the substitution of an isothermal nitration by an adiabatic process (use of the reaction enthalpy), the development of processes for the production of isocyanate that require less solvent (less energy consumption for solvent distillation), and a new electrolysis process for chlorine recycling requiring lower power consumption. Due to the results of these examples, amongst others, Bayer has reduced the overall energy consumption of its plants (at approximately constant production rates) by 16% from 2000 to 2004, and by another 10% from 2004 to 2005.

Concerning the generation of renewable fuels, Bayer supports the development of innovative processes for the production of bioethanol and biodiesel (e.g. at Bayer Technology Services we have developed a modern process for bioethanol production from rye). The utilization of non-food feedstocks for fuel production is currently being investigated in research and development projects.

The substitution of fossil resources by renewable feedstocks is of increasing importance on a world scale. Bayer applies renewable feedstocks in any case that this will result in technical and economic advantages for the client. An example is the production of polyols, which serve as the raw material for the production of soft foams. In this application, in today’s modern process, a significant fraction of the feedstock is renewable. Other opportunities to substitute fossil feedstocks are being developed in research projects. Examples will be shown in the presentation.

In order to ensure research in the mentioned fields the European Union and National Governments provide notable financial resources. A summary of these programs will conclude the lecture.

With oil and gas prices near an all time high--many question, "Where are we going?"
Charles E. Bayless
President
West Virginia University Institute of Technology

Temporary Abstract

This presentation will explore all facets of the Global Energy Picture and explore alternatives, in an attempt to answer questions surrounding our energy future.

Diversifying Liquid Transportation Fuels through Biofuels and other Unconventional Sources
Paul F. Bryan
Vice President - Biofuels Technology
Chevron Technology Ventures LLC

Global energy demand will expand by about 40% over the next two decades, driven largely by population growth and rapid industrialization in the developing world. In China alone, the population is expanding by about 8 million people per year - roughly like adding a city the size of New York to the world every year. And with China's population and economic growth comes an increase in energy demand. From 2002 to the end of this year (2007), automobile registrations in China are expected to grow from 20 million to 50 million.

Consumer and commercial / industrial needs for heat and electricity can be met by a broad array of conventional and unconventional energy
resources: natural gas, coal, nuclear, hydro, wind, and solar, to name some of the most familiar. But transportation fuels have been, and for the foreseeable future will continue to be made up of organic liquids, which cannot be provided directly by any of the aforementioned sources.
The requirement for high energy density and the enormous global investment in liquid fuels, the infrastructure for processing and distributing them, and the engines in cars that use them endure that liquid fuels will dominate the transportation sector for at least the next two decades.

During these next two decades, however, the burgeoning demand for transportation fuels, combined with the increasing pressure to reduce net emissions of CO2 from human activity will place enormous pressure on the world's ability to produce these fuels from crude oil at a reasonable price. This presentation will discuss Chevron's view of the "New Energy Equation," with a focus on the role of renewable, sustainable liquid transportation fuels derived from biomass.