DCT Industrial had a busy 2017, despite the oil downturn.The real estate investment trust broke ground on three new Houston-area facilities totalling 474,000 square feet, and it acquired 48 acres in the Port of Houston.
The Denver-based company is one of the largest industrial owners and developers in the Bayou City, managing 5 million square feet of industrial real estate locally.Justin Bennett, the senior vice president overseeing DCT’s Houston operations, recently visited with the Chronicle about his outlook for 2018.
Q: How’s business? A: Business is doing very well. A big boon to the industry has been the expansion of plastics.
Source: Q&A: Plastics boom keeps Houston humming – Houston Chronicle
An abundance of petroleum in the U.S. has prompted many companies in Houston’s petrochemical sector to work on projects expanding capacity, something that — in the case of Exxon Mobil Corp.’s (NYSE: XOM) petrochemical arm — will bring about 45,000 new jobs to the Gulf Coast in the next several years.But at about the same time, the existing workforce has been aging, and there aren’t as many young skilled laborers entering the industry to take their place. So in 2013, the Irving, Texas-based company funded the Community College Petrochemical Initiative, which granted scholarships to Houston-area community colleges in order to draw new talent to the industry.
Source: Exxon Mobil chemical exec: ‘We’re hiring at record levels today’ on Gulf Coast – Houston Business Journal
The Gulf Coast energy boom continues to drive a hot job market, and companies such as Fluor Corp. are positioned to design and build many of the new projects in the region. Fluor is a complete solutions provider offering engineering, procurement, fabrication and construction services EPFC.A growing resumeDan Spinks, Fluor’s Houston operations vice president and general manager, said, “Our Houston office is currently executing several large projects and we have many good prospects. We look forward to continued growth and are ready to ramp up to meet our clients’ needs and expectations.”In October, Fluor, in a joint venture, announced a new contract to provide engineering, procurement and construction services to Sasol for their petrochemical complex near Lake Charles, Louisiana.This new project will provide significant opportunities for both technical and skilled craft workers. To support this new project, Fluor is hiring construction workers in the Louisiana region, as well as professional engineers and support staff in the company’s Houston office. Fluor also is responsible for significant petrochemical projects in Texas. As part of a joint venture, the company is providing engineering, procurement and construction services for a new ethane cracker for Chevron Phillips Chemical Co. in Baytown. Additional workers are needed in the Baytown area to support the project ramp-up, with an expected peak of 3,500 craft workers hired by fall 2015.In addition, Fluor is designing and building a new expansion to Dow’s Oyster Creek complex in Freeport. The project expects to peak at 3,000 in late 2014.Other refinery projects in Texas, Louisiana and Indiana also constitute Fluor’s deep portfolio of projects in the U.S.Germany-based BASF has chosen Fluor as its engineering partner for chemicals capital projects across North America, and a number of BASF projects are under way along the Gulf Coast.
via Employer Profile: Fluor – Energy boom means job growth – Houston Chronicle.
Kinder Morgan Energy Partners LP NYSE: KMP said Oct. 14 that it will invest approximately $240 million to expand two terminals at the Houston Ship Channel.The expansion will include the construction of 2.1 million barrels of storage between the Pasadena and Galena Park terminals.It also includes building a new ship dock and infrastructure improvements at Galena Park, which will increase the terminal’s vessel load rates to up to 15,000 barrels per hour.
via Kinder Morgan Energy Partners to expand Pasadena and Galena Park terminals at Houston Ship Channel – Houston Business Journal.
Houston-based pipeline giant Enterprise Products Partners LP NYSE: EPD has bought controlling ownership of a major oil storage and terminal business in a nearly $4.6 billion deal as part of a larger acquisition process.Enterprise Products will have about 66 percent of Houston-based Oiltanking Partners LP NYSE: OILT and full ownership of its general partner from Oiltanking Holding America Inc., which is a subsidiary of Germany-based oil and gas storage provider Oiltanking GmbH.The deal includes $2.21 billion in cash, $2.2 billion in newly issued EPD units and $228 million in cash for notes receivables and interest on Oiltanking notes payable and credit facility.Enterprise CEO Michael Creel said the completed deal is the first step of a two-part process for the “merger of Oiltanking Partners into Enterprise” to help expand its liquefied petroleum gas export business near Houston. Enterprise is rapidly expanding within the Houston region.Creel said Enterprise plans to acquire the remaining publicly held partner interests in Oiltanking in a roughly $1.4 billion deal, making the two-part process a $6 billion transaction.
via Enterprise Products Partners buys control of Oiltanking Partners – Houston Business Journal.
To capitalize on a flood of domestic and Canadian crude into the U.S. Gulf Coast, logistics giant Kinder Morgan Energy Partners is spending more than $1.5 billion in Houston to build the most flexible oil and fuel transport hub in the country.The company’s expanding infrastructure smorgasbord includes a bit of almost everything at the increasingly crowded Houston Ship Channel – all next door to the biggest concentration of refiners in the country.The buildout, executives say, responds to the increasingly dynamic world of physical crude trading in North America, where the variety of available crudes is growing, and is aimed at securing their central position in moving oil from the U.S. shale boom to market.Customers want multiple options to switch delivery modes on a dime and snag the best price for refinery feedstocks. They need more dock and storage space to handle surging volumes of fuel being shipped overseas.”More of them are producing more than they can consume in the United States. So they want to take it to water, either for movement up and down the coast … or to export because you see a tremendous amount of growth,” John Schlosser, president of Kinder Morgan’s terminal division, said of refiners.Schlosser, who spoke to Reuters on a tour of the company’s facilities, said the company was doubling down on its core business.”Our bread and butter is the midstream – that’s where we’re making all of our investments,” he said. “It’s like connecting the dots.”Kinder’s latest push is to add storage and pipeline connections to final domestic destinations, a huge oil-by-rail offloading operation, and a wider export platform.
via Kinder Morgan builds out Gulf Coast logistics hub in U.S. oil boom | Reuters.
Houston is among the top cities in the country with the most industrial construction underway, thanks mostly to the booming energy industry. And there’s more to come.There are currently 45 spec and build-to-suit industrial buildings totaling 5.2 million square feet under construction in Houston. Only Atlanta; Chicago; Baltimore; Columbus, Ohio; Dallas; Indianapolis; Southern California; and Philadelphia are building more this year, according to Graham Hildebrand, JLL research manager.
via Port of Houston spurs industrial construction – Houston Business Journal.
A new report co-authored by the Greater Houston Partnership and HSBC Bank USA finds that the benefits of the shale energy revolution are poised to continue in Houston, extending far beyond just the jobs on the wellpads. The study, “Houston’s Next Boom: Exporting Innovation,” analyzes the combined impact of the surge in energy-related exports and the expected oil and gas exploration efforts in Mexico, all made possible by advances in hydraulic fracturing and horizontal drilling. This “surge” in additional economic activity is expected to bring in an additional 55,185 jobs to the region. Here’s the job breakdown from the report:
Industrial machinery exports: 28,574
Chemical exports: 23,787
Infrastructure projects: 2,824
The report notes that as Mexico opens its doors to oil and gas expansion, Houston’s industrial machinery exports will continue to climb. Currently, Houston exports $19.3 billion in industrial machinery, according to the report, but this figure is projected to rise by 15 percent—creating over 28,000 jobs.
via Shale Will Help Deliver 55,000 Additional Jobs to Houston | NorthCentralPA.com.
As the shale boom continues, the next wave of energy economic development in Houston could bring an estimated 55,185 jobs to the region, according to a new report.
The combined impact of the petrochemical growth surge, liquefied natural gas exporting and the opening up of Mexico to oil and gas exploration are all expected to bring a huge glut of energy-related jobs to Houston that are largely focused on exporting resources, technology and innovation.
The new study, called “Houston’s Next Boom: Exporting Innovation,” was put together by the Greater Houston Partnership and HSBC Bank USA.
via HSBC Group, GHP say petrochemical growth, LNG exporting, Mexican energy reform will bring jobs to Houston – Houston Business Journal.