Seaports Magazine - Fall 2017 - 48

"Ports like Lake Charles and the Port of New Orleans
have these deep-draft capabilities and this great quick
access to the Gulf of Mexico; you're seeing billion-dollar
investments in plants because of this wonderful decline in
the price of natural gas."
-Dr. Loren Scott,
Loren C. Scott & Associates, Inc.
profitable to build big chemical plants,"
Scott says. "Ports like Lake Charles and
the Port of New Orleans have these deepdraft capabilities and this great quick
access to the Gulf of Mexico; you're seeing
billion-dollar investments in plants because
of this wonderful decline in the price of
natural gas."
In addition, some shipping lines are
beginning to move away from diesel fuel to
LNG or CNG (compressed natural gas), for
a number of reasons. Reducing greenhousegas emissions is one consideration. "There
are also cost savings," says Worthington.
"Our natural gas is much cheaper than it is
in Europe, and vastly cheaper than in Asia."
Crude oil export from the U.S. is also
building entirely new businesses, and
the market continues to offer surprises.
"Probably the thing that has most surprised the market is that since September,
the Saudis have reduced their output; they
got together with OPEC and let the price
of oil go up to $55," says Scott. "An even

48

AAPA SEAPORTS MAGAZINE

bigger surprise was how fast the capitalists in the U.S. went back to the plays,
producing almost enough to offset what
the Saudis had held back. Right now, we're
on schedule in early 2018 to produce more
oil than has ever been produced in the
USA before."
He says the one area of uncertainty for
ports is coal exports, which could increase
or decrease. President Trump has made
statements about the possibility of increasing U.S. coal exports, and developing countries are providing a new market. Although
many financial institutions haven't been
providing support for coal plants, the current U.S. administration may change that.
At the same time, large companies like
Walmart are implementing sustainability
policies that require all their suppliers and
business partners to demonstrate corporate
social responsibility in areas like greenhouse-gas emissions, energy consumption
and carbon footprint. Other considerations
being equal, ports that show a commitment

Dr. Loren Scott
to energy reduction will be looked upon
most favorably by these organizations.
"A lot of port facilities are still fueled by
diesel fuel, specifically when you talk about
the big cranes," notes Worthington. "There's
an initiative on the part of ports to reduce
their carbon footprint by moving to electrification rather than diesel, which, depending on the source of energy, may reduce
greenhouse-gas emissions. There may be
cost savings, depending on the local costs of
electricity versus diesel. The electric power
business is looking at all transportation as
a way to increase electricity sales, so ports
are just a natural addition; they may well
offer incentives."
He says some port facilities will gradually
begin to produce some of their own power,
"for example, if you're burning natural gas
and you produce more heat than you need."
The other aspect he mentioned was that
"you're likely to see a thriving offshore wind
business," particularly along the East Coast.
"Every governor wants a port in their state
to be the focal point of the offshore wind
industry. The potential is huge, because this
equipment is gigantic; there is significant
potential for manufacturing facilities."
Overall, both sides of the energy equation
are potentially good news for ports. "We're
just going to be doing a massive expansion of our fossil energy exports, including coal, crude oil and crude oil products
like gasoline and diesel fuel, so it's quite an
opportunity for ports," says Worthington.
"We have moved over the past five years
from an era of energy scarcity to an era of
energy abundance, and it's almost nothing short of a revolution in the domestic
energy sector. It's really a keen opportunity to take advantage of these abundant
resources that we have," he says. "It's just
a whole new world."  ●



Table of Contents for the Digital Edition of Seaports Magazine - Fall 2017

AAPA Headquarters
From the President's Desk
Seizing LNG Supply Chain Opportunities
Find Your Niche
The Power of One, Collaboration by Many
Bringing the Outside In
Accelearating the Future
Power Shift: In the Energy Sector, Change Is the Only Constant
Strengthening U.S. Ports to Support Increasing Freight and Transportation
Port Partnerships for Strategic Positioning and Success
Index of Advertisers
Seaports Magazine - Fall 2017 - Intro
Seaports Magazine - Fall 2017 - bellyband1
Seaports Magazine - Fall 2017 - bellyband2
Seaports Magazine - Fall 2017 - cover1
Seaports Magazine - Fall 2017 - cover2
Seaports Magazine - Fall 2017 - 3
Seaports Magazine - Fall 2017 - 4
Seaports Magazine - Fall 2017 - 5
Seaports Magazine - Fall 2017 - AAPA Headquarters
Seaports Magazine - Fall 2017 - 7
Seaports Magazine - Fall 2017 - From the President's Desk
Seaports Magazine - Fall 2017 - 9
Seaports Magazine - Fall 2017 - Seizing LNG Supply Chain Opportunities
Seaports Magazine - Fall 2017 - 11
Seaports Magazine - Fall 2017 - 12
Seaports Magazine - Fall 2017 - 13
Seaports Magazine - Fall 2017 - 14
Seaports Magazine - Fall 2017 - 15
Seaports Magazine - Fall 2017 - 16
Seaports Magazine - Fall 2017 - 17
Seaports Magazine - Fall 2017 - 18
Seaports Magazine - Fall 2017 - Find Your Niche
Seaports Magazine - Fall 2017 - 20
Seaports Magazine - Fall 2017 - 21
Seaports Magazine - Fall 2017 - 22
Seaports Magazine - Fall 2017 - 23
Seaports Magazine - Fall 2017 - 24
Seaports Magazine - Fall 2017 - 25
Seaports Magazine - Fall 2017 - The Power of One, Collaboration by Many
Seaports Magazine - Fall 2017 - 27
Seaports Magazine - Fall 2017 - 28
Seaports Magazine - Fall 2017 - Bringing the Outside In
Seaports Magazine - Fall 2017 - 30
Seaports Magazine - Fall 2017 - 31
Seaports Magazine - Fall 2017 - 32
Seaports Magazine - Fall 2017 - 33
Seaports Magazine - Fall 2017 - 34
Seaports Magazine - Fall 2017 - 35
Seaports Magazine - Fall 2017 - 36
Seaports Magazine - Fall 2017 - Accelearating the Future
Seaports Magazine - Fall 2017 - 38
Seaports Magazine - Fall 2017 - 39
Seaports Magazine - Fall 2017 - 40
Seaports Magazine - Fall 2017 - 41
Seaports Magazine - Fall 2017 - 42
Seaports Magazine - Fall 2017 - 43
Seaports Magazine - Fall 2017 - 44
Seaports Magazine - Fall 2017 - Power Shift: In the Energy Sector, Change Is the Only Constant
Seaports Magazine - Fall 2017 - 46
Seaports Magazine - Fall 2017 - 47
Seaports Magazine - Fall 2017 - 48
Seaports Magazine - Fall 2017 - 49
Seaports Magazine - Fall 2017 - Strengthening U.S. Ports to Support Increasing Freight and Transportation
Seaports Magazine - Fall 2017 - 51
Seaports Magazine - Fall 2017 - Port Partnerships for Strategic Positioning and Success
Seaports Magazine - Fall 2017 - 53
Seaports Magazine - Fall 2017 - 54
Seaports Magazine - Fall 2017 - 55
Seaports Magazine - Fall 2017 - 56
Seaports Magazine - Fall 2017 - 57
Seaports Magazine - Fall 2017 - Index of Advertisers
Seaports Magazine - Fall 2017 - cover3
Seaports Magazine - Fall 2017 - cover4
Seaports Magazine - Fall 2017 - divider1
Seaports Magazine - Fall 2017 - divider2
Seaports Magazine - Fall 2017 - 66
Seaports Magazine - Fall 2017 - 67
Seaports Magazine - Fall 2017 - 68
Seaports Magazine - Fall 2017 - 69
Seaports Magazine - Fall 2017 - 70
Seaports Magazine - Fall 2017 - 71
Seaports Magazine - Fall 2017 - 72
Seaports Magazine - Fall 2017 - 73
Seaports Magazine - Fall 2017 - 74
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