November 2018 Commerce Club Luncheon
Dan Holton, Vice President, Global Supply Chain, ExxonMobil: Demand for Chemicals Increasing Globally
“It’s an exciting time to be in the chemical industry,” said Dan Holton in his opening remarks at the Port Bureau’s Commerce Club luncheon on November 8. Holton is vice president of ExxonMobil’s global chemicals supply chain. The event was held at the Houston Marriott South.
Holton presented “Growing Together: The Chemical Industry and the Port of Houston” in his talk to attendees. “Chemical demand is growing,” he said, estimating global chemical demand to grow by 45% over the next decade, attributing growth to an expanding “global middle class”. Holton explained that rising income propels chemical demand.
“Chemical growth is focused on sustainability,” Holton added. “Chemical products provide solutions for society to reduce overall emissions and give our customers choices to help them reduce their own environmental footprint.” He also mentioned the leadership role industry is taking in plastics recycling as well as research to minimize waste in the future.
Cost was cited by Holton as an advantage to the U.S. chemical industry due to the low cost of natural gas and its role in ultimately producing ethylene. Consequently, the industry is investing in growth, and he indicated chemicals have surpassed petroleum in Texas. ExxonMobil continues to expand chemical capacity, with the company’s Baytown expansion the largest chemical investment in the U.S., to date. This expansion and more is part of ExxonMobil’s “Growing the Gulf” project, and is expected to continue through 2022.
“Much of the new chemical capacity will be exported,” said Holton. “As much as three-fourths of U.S. polyethylene exports from Houston, primarily in the form of polyethylene pellets.” He emphasized the importance of continued collaboration in meeting the increased export business demands. “Our Mont Belvieu facility alone can fill 120 forty-ft. containers every day!”
“With your support, the outlook for the port of Houston and the expanding petrochemical industry is bright,” concluded Holton.
- Date January 29, 2019
- Tags 2019 Jan