Port Bureau News - EIA Short Term Energy Outlook: November 2020 - Greater Houston Port Bureau
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Greater Houston Port Bureau
Port Bureau News
November 2020
EIA Short Term
Energy Outlook:
November 2020
Also in this Issue: Captain’s Corner l USACE Report l Port Watch l
Port Bureau Updates l 12th Annual Captain's Cup Golf Tournament l
Contents
About the Cover
The November Short-Term Energy Outlook (STEO) expects that as global oil demand rises, forecast inventory draws in 2021 will cause some upward oil price pressures.
EIA forecasts Brent crude oil prices will average $47/b in 2021. Read more on page 9. Photo courtesy of Enterprise Products.
Publisher/President
CAPT Bill Diehl, USCG (Ret.), P.E..
Editor
Andrea LaVorgna
14 Copy Editor
Judith Schultz
Art Director
A Proposed Storm Surge Barrier System configuration in the USACE Coastal Texas Study includes two 650-foot navigation
gates separated by an island in the middle, providing two-way vessel traffic between the Gulf of Mexico and Galveston Bay. Andrea LaVorgna
This gate configuration will allow about 90 percent of the existing flow of water between the Gulf of Mexico and Galveston
Bay to be maintained. Read more about the USACE Report on page 4. Writers
CAPT Bill Diehl, USCG (Ret.) P.E.
Feature Articles Andrea LaVorgna
Tom Marian
Judith Schultz
Captain’s Corner:Perfecting the Short Game.3
USACE Report: USACE Coastal Barrier
6 Protection Plan Taking Another Step
Forward..........................................................4
Port Watch: Tallying the Numbers................6
Data Visualization
Janette Molina
Christine Schlenker
EIA: Short Term Energy Outlook-November
2020................................................................8 Photographers
19
Port Bureau Updates...................................13 Andrea LaVorgna
Golf: 12th Annual Captain's Cup Golf
Tournament...................................................19 Port Bureau Staff
Commerce Club..........................................22 Al Cusick
Executive Partners......................................24 CAPT Bill Diehl, USCG (Ret.), P.E.
Cristina Gomez
Susan Hendrickson
Andrea LaVorgna
Advertising Index Janette Molina
Buffalo Marine Service.................................18 Christine Schlenker
Cooper/Ports America...................................17 Judith Schultz
Houston Pilots...............................................23 Tanya Scott
HDR Inc..........................................................9
Lonestar Forklift...........................................15
Suderman & Young Towing Company..........12 Port Bureau News
4400 Highway 225 E, #200
Deer Park, TX 77536
Phone: (713) 678-4300
Email: info@txgulf.org
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their respective owners.
2
Captain's Corner
Captain’s Corner
Perfecting the Short Game
For me, this holds true off of the golf course, as well. Especially
in this new business world, it’s the little details that can make
the difference between success and mediocrity. We’ve spent
the past few months listening to our Port Bureau members
talk about what their new short game looks like. What we’ve
found is that two of the most important things our members
need right now is information and communication. While
we've added a few new reports, our information services,
such as our vessel movement reports, already worked for any
type of business environment.
Communication, though, has changed as much for us as I’m
sure it has for everyone else. We regularly get emails or calls
from members about how much they miss networking with
The Port Bureau hosted its annual Captain’s Cup Golf 200 other maritime professionals at our Commerce Club
Tournament on November 2, and it was very enjoyable to luncheons. We are working on a plan to restart in-person
see everyone who came out to play, volunteer, or sponsor events in the second quarter of 2021, but until then, we will
a tent. The social restrictions necessitated by COVID-19 continue our virtual events.
are particularly tough on an industry that is noted for its
hospitality and fellowship, and it was good to enjoy a This makes the other networking details that much more
sampling of that camaraderie. This was our first in-person important. Our committees have been thriving as our
event since our February Commerce Club luncheon, and it members seek both to remain engaged in the port community
was clear that our members and guests were eager for this and to have a monthly opportunity to network with other
safe, socially distanced opportunity to see each other face- port leaders. Our print and online membership directory,
to-face for the first time in months. which has always been popular, has become essential for
our members to have the contacts they need to keep doing
While not one of us could claim a spectacularly lucky shot business. Of course, the golf tournament motivates us to
like Jon Rahm’s pond-skipping hole-in-one in the Master’s get back to in-person events as soon as it is safe. In the
practice round earlier this month, there was plenty of good meantime, we can only improve our short game by knowing
sport on the greens of Sugar Creek Country Club. For photos what’s important to you, so please give me a call or send me
of the day’s events, see page 20. an email if there’s a detail you think we can improve upon.
At the Master’s, Rahm had that lucky shot, but in the end I know this holiday season will look different for many of
Dustin Johnson took home the championship. Johnson has us, but from myself and everyone at the Port Bureau, I hope
great natural ability and is known in the sport to have one you have a safe and enjoyable time seeing (or Zooming with)
of the longest drives. But, he didn’t become a world-class your friends and family.
contender until he started focusing on his short game.
The long game, though important, rarely requires as much
precision nor presents as many options as the shorter
distances. Hitting wedges and putting requires that all of
the little details are done right. It also lends itself to more
creativity as you consider how many different ways you
could accomplish your objective. There’s only a few ways CAPT Bill Diehl
to hit most long shots, but a dozen ways to hit a short one. USCG (Ret.), P.E.
My own golf instructor drilled these points home, even for a GHPB President
recreational golfer like myself.
Port Bureau News txgulf.org 3
USACOE Report
USACE Coastal Barrier Protection Plan
Taking Another Step Forward
Hurricane Ike slammed into Galveston in a little over 12 years ago, bringing category 2 sustained
winds of 110 mph and producing a destructive, deadly storm surge across the upper Texas and
southwest Louisiana coasts. In its aftermath, plans to build a costal storm barrier, dubbed as the
“Ike Dike” in its early days, have ebbed and flowed, but the Army Corps of Engineers (“USACE”)
has plans moving forward.
USACE has released the 2020 Draft Feasibility Report The Gulf Side
of its Coastal Texas Protection and Restoration Feasibility
Study (“Coastal Texas Study”) and is looking for input from
the industry and the public.
The Coastal Texas Study is a 5.5 year, $19.8M comprehensive
study, led by USACE in partnership with its non-federal
cost-share sponsor, the Texas General Land Office (GLO).
Its purpose? To identify feasible projects that reduce risks to
public health and the economy, restore critical ecosystems,
and advance coastal resilience.
The Draft Proposal outlines the findings of the study and
puts forward a recommendation as to how to best protect the
Texas coast in a cost-effective, feasible way. Our unusually
busy storm season, with a close call from Hurricane Laura,
makes it a timely step.
While the study area consists of the entire Texas Gulf coast,
from the mouth of the Sabine River to the mouth of the Rio
Grande, proposed measures vary significantly by location.
For the Upper Texas Coast, which include Orange, Jefferson,
Chambers, Harris, Galveston, and Brazoria counties, USACE
has proposed uniquely tailored measures of protection for Images courtesy of The Texas General Land Office, Coastal Texas Study
the bay and gulf sides of the coastal areas. Bolivar Roads Gate System
Bolivar Roads Gate System
This surge mitigation gate would stretch across the entrance
to the Houston Ship Channel, between Bolivar Peninsula
and Galveston Island. The proposed gate has been updated
to provide a more efficient way to prevent storm surge while
reducing the overall cost of the structure.
4 November 2020 Port Bureau News
Galveston Seawall Ring Barrier Inverted T Floodwall
The current Galveston Seawall does not currently provide
robust protection from storm surge. The existing 10-mile Surge Gates
Seawall on Galveston Island will be improved to complete Two surge gates would be on the west perimeter of
the continuous line of defense against the Gulf surge, along Galveston Bay (at Clear Lake and Dickinson Bay) to reduce
with an increase in height in some regions. surge volumes that push into neighborhoods and thousands
of homes around the critical industrial facilities that line
To reduce storm surge from entering the Bay system, the Galveston Bay.
Upper Coast Plan includes 43 miles of beach and dune
improvements on Bolivar Peninsula and West Galveston Pumping Stations
Island that work with the Bolivar Roads Gate System. Because Galveston Island currently operates on a gravity
drainage system, the plan would add a forced drainage
system consisting of approximately six new pump stations
to move water off the island.
Additional Protection
Complementary non-structural measures, such as elevating
homes, floodproofing structures and potential property
buyouts, to further reduce Bay risks are proposed.
Beach and Dune Restoration Ecosystem Restoration (Bay and Gulf)
Ecosystem restoration addresses habitat loss and provides
The Bay Side a natural buffer from coastal storms. Each ecosystem
restoration measure represents a combination of features
The Bay defense systems manage the less dangerous, yet and is formulated in a specific geographic location to restore
still concerning risks caused by storm surge and Gulf surge diverse habitats and provide multiple lines of defense.
that makes it past the Gulf lines of defense. Bay defense
components include: A final recommended plan that consists of coastal storm
risk management and ecosystem restoration features will be
Ring Barrier System submitted to Congress for authorization and funding in late
An 18-mile Galveston Ring Barrier System that prevents Spring of 2021. USACE is accepting comments on this draft
Bay waters from flooding neighborhoods, businesses, and proposal during a 45-day public comment period that began
critical health facilities within the City of Galveston. The on October 30, 2020 and closes on December 14, 2020.
proposed system has been revised since publication of the
Draft Report in October 2018 to incorporate residents’ Read more details and get involved at https://coastalstudy.
concerns and comments. texas.gov/get-involved/public-meetings/index.html.
Port Bureau News txgulf.org 5
Port Watch
Port Watch
Tallying the Numbers
Just before midnight on November states instructing them to not a positive exercise given the overall
7, 1876, retired Union General, concede those states to Tilden. In the 7.3% gain. Of course, it should come
“Devil Dan” Sickles dropped by the end, the nation’s Centennial election as no surprise that 2020 still trails
Republican National Headquarters proved to be the most controversial 2019’s year-to-date tally by 4.7%.
i n N e w Yo r k C i t y t o s e e i f in the country’s history. Indeed, Nevertheless, there were a number
Governor Hayes – the Republican Hayes had snatched victory by a sole of bright spots with the onset of the
nominee – had prevailed over New electoral college vote after enough fourth quarter.
York Governor Tilden. Sickles votes had been ruled ineligible by a
was informed by the lone janitor Congressional commission in early The port of Freeport posted its
sweeping the ticker tape returns that March 1877 – a mere two days second-best month for the year with
the Republican National Chairman, before the inauguration. its third triple-digit count. Freeport
Zachariah Chandler, was passed is currently outpacing last year ’s
out from strong whiskey after Ironically, the final vote tally numbers by 13% and only the port of
determining that the Democrats had showed that Governor Tilden had Brownsville can claim a better year-
captured the White House for the won a plurality in his quest for the over-year showing. Brownville’s
first time in 20 years. presidency. Having been denied count for the year is leaps and bounds
the prize, he eventually mused, "I beyond that of last year to the tune
Sickles immediately foraged through can retire to public life with the of 30% even after factoring in last
the returns and calculated if the consciousness that I shall receive month’s 4% wane. The only other
Republicans could prevail in South from posterity the credit of having Texas port that remains in positive
Carolina, Louisiana and Florida, been elected to the highest position territory for the year is Corpus
Hayes would potentially snatch in the gift of the people, without any Christi. Its infrastructure expansion
victory from the jaws of defeat. of the cares and responsibilities of continues to pay dividends in a year
C o n s e q u e n t l y, S i c k l e s d a s h e d the office." that has mostly seen contractions.
off telegrams, under Chairman Thus, despite no percentage gain
Chandler’s name, to the Republican Tallying the blue moon month’s from September to October, it is
Chairs in the three closely contested arrival numbers for Texan ports was exceeding 2019’s arrival stats by
11.6%
6 November 2020 Port Bureau News
While the remainder of the Lone overseas. On the bright side, LPG state of maritime commerce. With
Star ’s ports lag 2019’s arrivals, arrivals were at their highest for the a mere two months left in what is
they kicked off the fourth quarter year and tankers equaled their best turning out to be the most dystopian
far better than the previous quarter. arrival count in 2020. of years, it is anyone’s guess on what
Texas City, a port that has not seen note things will end when 2021 calls.
an arrival decline since May, posted The port that serves the Bayou City
a 4% monthly rise and climbed a bit and beyond – Houston – chalked up That was certainly the case for the
more out of the maritime commerce its fifth consecutive monthly gain dueling governors as 1876 came to
doldrums. Galveston posted its third with a respectable 5.9% increase. an end and the country still had no
consecutive monthly gain; the most While that rise nudged the needle idea who would succeed General
recent of which was nearly 17%. The to the right a mere one tenth of Grant as the 19th president of the
cruise ship lockdown has relegated one percent year-to-date, there United States. In the end, Hayes was
the port to the highest year-over- were some impressive gains in a declared the winner on March 2 of
year-percentage decrease, but it few vessel categories. Chemical the new year and the country moved
is waxing creatively to offset that tankers witnessed their best month on. Hopefully, 2021 will bring plenty
crisis. of the year, as did container ships of movements on our waterways as
and LPG vessels. This appears this year’s difficulties move on from
The port of Sabine is struggling to indicate that inventories are in present to past.
nearly as much as Galveston, need of replenishment and overseas
as reflected in the year-to-date manufacturers are in need of raw
numbers that trail 2019 by over 16%. materials . Deman d for o il h as
Unfortunately, it cannot blame the been sporadic at best. October ’s
disappearance of the cruise business tanker count was the 2nd lowest
for its woes. Its two biggest vessel for the year. General cargo arrivals Tom Marian
experienced a healthy b ounce, Buffalo Marine Service
types – tankers and chemical tankers
– are “in the tank” due to moribund but bulkers took a tumble further buffalomarine.com
demand for the cargoes they transport underscoring the fragility of the
Port Bureau News txgulf.org 7
Energy
EIA Short Term Energy Outlook:
November 2020
Forecast Highlights
Global Liquid Fuels
The November Short-Term Energy Outlook (STEO) Brent crude oil spot prices averaged $40 per barrel (b) in
remains subject to heightened levels of uncertainty because October, down $1/b from the average in September. Brent
responses to COVID-19 continue to evolve. Reduced prices fell in October as previously disrupted crude oil
economic activity related to the COVID-19 pandemic has production in Libya came back online and as COVID-19
caused changes in energy demand and supply patterns in cases began increasing in many countries, which could
2020 and will continue to affect these patterns in the future. reduce oil demand in the coming months. Despite these
U.S. gross domestic product (GDP) declined by 4.4% in developments, the U.S. Energy Information Administration
the first half of 2020 compared with the same period a year (EIA) expects global oil inventories to continue falling in
ago. GDP began rising in the third quarter of 2020, and this the coming months. However, EIA expects high global oil
STEO assumes it will grow by 3.7% from 2020 to 2021. inventory levels and surplus crude oil production capacity
The U.S. macroeconomic assumptions in this outlook are will limit upward pressure on oil prices and that Brent
based on forecasts by IHS Markit. prices will remain near $40/b through the end of 2020. EIA
expects that as global oil demand rises, forecast inventory
draws in 2021 will cause some upward oil price pressures.
EIA forecasts Brent crude oil prices will average $47/b in
2021.
8 November 2020 Port Bureau News
EIA estimates that an average of 95.3 million barrels per Gulf of Mexico averaged 1.2 million b/d in August, down 0.5
day (b/d) of petroleum and liquid fuels was consumed million b/d from July. Since reaching a two-and-a-half year
globally in October. Liquid fuels consumption was down low of 10.0 million b/d in May, when producers curtailed
5.9 million b/d from October 2019, but it was up from wells, U.S. crude oil production has increased mainly
both the third-quarter 2020 average of 94.1 million b/d and because tight oil operators have brought wells back online in
the second-quarter 2020 average of 85.3 million b/d. EIA response to rising prices. EIA estimates that production will
forecasts that global consumption of petroleum and liquid rise to 11.2 million b/d in November. However, EIA expects
fuels will average 92.9 million b/d for all of 2020, down by U.S. crude oil production to generally decline to an average
8.6 million b/d from 2019, before increasing by 5.9 million of 11.0 million b/d in the second quarter of 2021 because
b/d in 2021. new drilling activity will not generate enough production
to offset declines from existing wells. EIA expects drilling
EIA reported that 10.6 million b/d of crude oil was produced activity to rise later in 2021, contributing to U.S. crude oil
in the United States in August (the most recent month for production reaching 11.3 million b/d in the fourth quarter of
which historical data are available), down 0.4 million 2021. On an annual average basis, EIA expects U.S. crude
b/d from July. Production fell in August mainly because oil production to fall from 12.2 million b/d in 2019 to 11.4
hurricanes disrupted production from the U.S. Gulf of million b/d in 2020 and 11.1 million b/d in 2021.
Mexico. EIA reported that U.S. crude oil production in the
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Port Bureau News txgulf.org 9
Natural Gas
In October, the Henry Hub natural gas spot price averaged natural gas consumption will average 79.4 Bcf/d in 2021, a
$2.39 per million British thermal units (MMBtu), up from an 5.2% decline from 2020. The expected decline in 2021 is the
average of $1.92/MMBtu in September. Higher natural gas result of rising natural gas prices that will reduce demand
spot prices reflected stronger demand for liquefied natural for natural gas in the electric power sector.
gas (LNG) exports as LNG terminals increased liquefaction
following hurricane-related disruptions in August and EIA forecasts U.S. dry natural gas production will average
September. EIA expects Henry Hub spot prices to rise to a 91.0 Bcf/d in 2020, down from an average of 93.1 Bcf/d
monthly average of $3.42/MMBtu in January 2021 because in 2019. In the forecast, monthly average production falls
of rising domestic demand for natural gas for space heating, from a record 97.0 Bcf/d in December 2019 to 87.0 Bcf/d
rising U.S. LNG exports, and reduced production. EIA in April 2021 before increasing slightly. EIA forecasts dry
expects that monthly average spot prices will remain higher natural gas production in the United States to average 87.9
than $3.00/MMBtu throughout 2021, averaging $3.14/ Bcf/d in 2021. EIA expects production to begin rising in the
MMBtu for the year, up from a forecast average of $2.14/ second quarter of 2021 in response to higher natural gas and
MMBtu in 2020. crude oil prices. The increase in crude oil prices is expected
to raise associated gas production from oil-directed wells in
EIA estimates that total U.S. working natural gas in storage late-2021, especially in the Permian region.
ended October at almost 4.0 trillion cubic feet (Tcf), 5%
more than the five-year (2015–19) average and the second EIA estimates that the United States exported 7.2 Bcf/d
highest end-of-October level on record. However, because of LNG in October, an increase of 2.3 Bcf/d from
EIA forecasts less U.S. natural gas production this winter September—the largest month-on-month increase since
than last winter, EIA forecasts that inventory draws will U.S. LNG exports began in 2016. Cameron LNG resumed
outpace the five-year average during the heating season LNG exports in October after being shut down following
(October–March) and end March 2021 at 1.5 Tcf, which Hurricane Laura and Hurricane Delta. Cove Point LNG
would be 16% lower than the 2016–20 average. completed its scheduled three-week annual maintenance
and resumed LNG exports in mid-October. Higher global
EIA expects that total U.S. consumption of natural gas forward prices for LNG indicate improving netbacks for
will average 83.7 billion cubic feet per day (Bcf/d) in buyers of U.S. LNG in European and Asian markets for
2020, down 1.7% from 2019. The decline in total U.S. the upcoming winter season. The increased prices come
consumption reflects less heating demand in early 2020, amid expectations of natural gas demand recovery in those
contributing to residential demand in 2020 averaging 13.2 markets and potential LNG supply reductions because
Bcf/d (down 0.6 Bcf/d from 2019) and commercial demand of outages at several LNG export facilities in the Pacific
in 2020 averaging 8.8 Bcf/d (down 0.9 Bcf/d from 2019). Basin and Atlantic Basin. EIA forecasts that U.S. LNG
EIA forecasts industrial consumption will average 22.5 exports will be above pre-COVID levels in November 2020,
Bcf/d in 2020, down 0.6 Bcf/d from 2019 as a result of averaging 8.5 Bcf/d, and will average 8.4 Bcf/d in 2021, a
reduced manufacturing activity. EIA expects total U.S. 31% increase from 2020.
10 November 2020 Port Bureau NewsElectricity, Coal, Renewables, and Emissions
EIA forecasts that the consumption of electricity in the than the average electricity price was in 2019. Annual
United States will decrease by 3.6% in 2020. EIA expects changes in regional residential electricity prices this year
retail sales of electricity to fall by 6.4% this year in the range from 0.8% lower in the South Atlantic region to 4.0%
commercial sector and by 8.8% in the industrial sector. higher in the Pacific region.
EIA forecasts residential sector retail sales will increase
by 2.5% in 2020. Milder winter temperatures earlier this EIA forecasts that renewable energy will be the fastest-
year led to less residential consumption for space heating, growing source of electricity generation in 2020. EIA
offset by increased summer cooling demand and increased expects the U.S. electric power sector will add 23.2
electricity use by more people working and attending classes gigawatts (GW) of new wind capacity in 2020 and 7.9
from home. In 2021, EIA forecasts total U.S. electricity GW of new capacity in 2021. Expected utility-scale solar
consumption will increase by 0.9%. Higher forecast capacity rises by 12.8 GW in 2020 and by 13.0 GW in 2021.
electricity consumption in the first half of 2021 because of
increased demand for space heating will be offset slightly by EIA expects U.S. coal production to be 521 million short
less forecast electricity consumption in the third quarter of tons (MMst) in 2020, a decline of 26% compared with 2019
2021 because of less cooling demand based on the NOAA levels. EIA forecasts production to rise to 627 MMst in 2021,
forecast of fewer cooling degree days. an increase of 20%. EIA expects coal production to increase
in 2021 in response to increased natural gas prices and
EIA expects the share of U.S. electric power sector increased demand in electric power consumption because
generation from natural gas-fired power plants will increase of lower-than-average winter temperatures, especially in the
from 37% in 2019 to 39% this year. In 2021, the forecast Upper Midwest and Northwest regions of the United States.
natural gas share declines to 33% in response to higher
natural gas prices. Coal’s forecast share of electricity EIA forecasts that U.S. energy-related carbon dioxide
generation falls from 24% in 2019 to 20% in 2020 and (CO2) emissions, after decreasing by 2.6% in 2019 from
then increases to 25% in 2021. Electricity generation from the previous year’s level, will decrease by 10% in 2020
renewable energy sources rises from 18% in 2019 to 20% as a result of reduced consumption of all fossil fuels.
in 2020 and to 22% in 2021. The increase in renewables’ EIA expects emissions from coal will be down 18% from
share is the result of planned additions to wind and solar 2019 and emissions from petroleum will be down 13%
generating capacity. EIA expects nuclear generation to from 2019. This decline in emissions is the result of less
decline by about 2% in both 2020 and 2021, reflecting recent energy consumption related to slowing economic growth
and planned retirements of nuclear generating capacity. The in response to the COVID-19 pandemic. In 2021, EIA
nuclear share of U.S. generation remains close to 20% in forecasts that energy related CO2 emissions will increase by
these years. 6% from the 2020 level as the economy recovers and energy
use increases.
In 2020, EIA expects U.S. residential electricity prices to
average 13.1 cents per kilowatt hour, which is 0.7% higher To read the EIA's detailed report, visit www.eia.gov/
outlooks/steo.
Port Bureau News txgulf.org 1112 November 2020 Port Bureau News
Port Bureau Updates
Port Bureau Updates
Port of Brownsville Foreign Trade Zone Port Houston Posts Historic Monthly Cargo
Ranks Number 2 in U.S. for Exports Value Volume
Emissions Port Houston Executive Director Roger
Guenther provided his monthly staff report
to the Port Commission of the Port of
Houston Authority at its Annual Budget
Workshop held on November 10. Guenther
said that this was the “busiest month ever”
for Port Houston, “jumping 15% over October 2019” by
handling over 296,000 twenty-foot-equivalent (TEU)
container units, putting it year-to-date at only 1% lower than
2019, a record year for Port Houston.
Guenther credited the growing cargo activity as driven by an
18% increase in “loaded” or full containers. He added “Port
Photo courtesy of the Port of Brownsville. Houston’s peak season has been compressed over the last
couple of months, as retailers rush to ensure merchandise
For the eighth year in a row, Foreign Trade Zone No. 62 is on the shelves to meet holiday demands.” Guenther
(FTZ) at the Port of Brownsville remains near the top in indicated that October operating revenue of $36.6 million,
the nation for the value of exports, according to the U.S. driven by the increased container volume, also represents a
Foreign-Trade Zones (FTZ) Board’s annual report to new record.
Congress released on November 13, 2020.
The Port Houston team and all partners, including the
FTZ No. 62 ranks second in the country with more than $4.3 International Longshoremen Association, seafarers, Houston
billion in exported goods in 2019, an increase from the $3.8 Pilots, and tugboat operators, were recognized for “pushing
billion reported in 2018. Celebrating its 40th anniversary forward together exceptionally well, “ensuring jobs and
this year, the port’s FTZ has consistently ranked in the top economic stability for the region."
three for exports out of 193 FTZs nationwide since 2012.
Additionally, FTZ No. 62 ranks number 18 in the nation Guenther pointed out that along with increased cargo
for the value of imports totaling $4.6 billion, up from $3.69 activity, the Port Houston team and partners continue to
billion in goods reported in 2018. deliver “tremendous growth efficiently and reliably for our
customers and free of congestion.” Guenther concluded his
“These are the highest numbers we’ve seen in the zone’s report saying, “we expect to see a strong finish through the
history, which highlight the importance of the Port of remainder of 2020.”
Brownsville as a statewide and regional economic driver,”
said Eduardo A. Campirano, Port Director and CEO. “This The Port Commission approved the 2021 Operating and
year, we’ve made significant investments in infrastructure Capital Budget, including expected operating revenues of
and FTZ 62’s continuous high ranking only further $398 million, up 5% over this year. Container volumes are
validates our efforts to increase the port’s role in the global projected to grow by 6%, and general cargoes are expected
marketplace.” to show recovery next year.
The 81st Annual Report of U.S. Foreign-Trade Zones Board The budget also includes next year’s $239 million Capital
to the Congress of the United States for 2019 is available Plan to support new growth opportunities, primarily at the
at www.trade.gov/ftz. For more information about FTZ No. container terminals, with investments in the redevelopment
62, visit https://www.portofbrownsville.com/about/foreign- of existing assets as well.
trade-zone-no-62/.
The next Port Commission meeting is scheduled for
Tuesday, December 8.
Port Bureau News txgulf.org 13BWC Terminals Enters into Purchase USCG Marine Safety Unit Texas City Presents
Agreement for NuStar Texas City Facility Meritorious Public Service Award to Port
Community Partners
BWC Terminals, a provider
of bulk liquid storage and
logistics services in North
America, announced it has entered into an agreement to
purchase NuStar Texas City Terminal located in Texas City,
Texas.
This transaction of ownership will allow BWC Terminals to
further strengthen its position along the U.S. Gulf Coast to
support its strategic business objective to deliver innovative
liquid storage solutions across North America in the
petrochemical, hydrocarbon, and agriculture markets.
“I’m confident that Texas City is a natural fit for the BWC
organization,” said Michael Suder, CEO of BWC Terminals.
“Like NuStar Texas City, we store a diverse array of liquids Photo: Eric Carrero, USCG Texas City, Jim Andrews, Galveston-Texas City Pilots;
Darrell Butler, CBP; Charles "Fritz" Kuebler, UTMB Galveston; Brett Milutin, Port
— including hydrocarbons, chemicals, and agricultural of Galveston. Photo courtesy of Darren Shelton.
products — and we believe the strength of our combined
business will help further develop Texas City’s operational The U.S. Coast Guard Marine Safety Unit Texas City
capabilities.” presented the Meritorious Public Service Award to port
community partners for exceptional services rendered
Headquartered in Houston, Texas, BWC Terminals is during COVID-19 Houston-Galveston cruise ship
a premier provider of bulk liquid storage and logistics response operations. Representatives from MSU Texas
services to refiners, manufacturers and distributors of bulk City, Galveston-Texas City Pilots, U.S. Customs & Border
liquids in North America. Protection (CBP), Galveston County Health District, The
University of Texas Medical Branch (UTMB) Galveston,
Port of Galveston and the Centers for Disease Control and
Prevention (CDC) cooperated for a unified response to
Ingram Barge Acquires Houston Barge and manage the COVID-19 pandemic aboard cruise ships within
Towing Company’s Assets the Houston-Galveston region from January to May 2020.
Their collective efforts facilitated the safe evacuation of
Ingram Barge Company LLC announced its wholly-owned 18 critically ill patients, ensured the health and wellbeing
subsidiary, Houston Fleeting Services LLC, has entered into of over 5,500 on-board crew members, and enabled the
an agreement to acquire the business assets of Houston- disembarkation of over 1,600 crew members representing
based Cheryl K LLC and San Jacinto River Fleet, LLC. 26 different countries, back to their respective homes.
The move is intended to strengthen Ingram Barge’s position
in the inland marine industry by expanding its reach and Foley Attorneys Recognized in Best Lawyers
capabilities to the Houston area and along the Texas Gulf in America 2021 List
Coast.
Foley & Lardner LLP, a
Cheryl K and San Jacinto River Fleet have been significant leading law firm in Texas, has
players in the Houston market. The purchase of their assets announced that the firm has
allows Ingram Barge to expand its footprint into the Houston received 27 national Tier 1 rankings and 127 metropolitan
area while simultaneously growing its logistics, dry barge Tier 1 rankings in the 2021 edition of U.S. News – Best
and liquid barge businesses by adding critical infrastructure, Lawyers “Best Law Firms.”
vessels and personnel.
The 2021 practice-area rankings are calculated using client
Ingram Barge plans to operate the assets in Houston, by feedback, Best Lawyers peer review, the Law Firm Survey
integrating personnel and operations into the larger Ingram and the Law Firm Leaders Survey, which utilizes more than
Barge business. eight million evaluations of more than 110,000 individual
leading lawyers collected by Best Lawyers. For a practice
The transaction is expected to close by the end of November. area to be eligible, a firm must have at least one lawyer from
that practice listed in Best Lawyers “The Best Lawyers
in America” 2020, which recognizes the top 4 percent of
practicing attorneys in the U.S.
14 November 2020 Port Bureau NewsJanuary 2021 Virtual Commerce Club
WISTA Texas Christmas Box Event for Seafarers
It’s that time Join us for a Virtual Commerce Club
of year again! and Annual Meeting
Each year, Janaury 14, 2021
thousands of
Christmas The Greater Houston Port Bureau will hold our annual
boxes are meeting and first Commerce Club webinar event of
provided free the new year on Thursday, January 14. Guest speaker
of charge to details are coming soon!
our visiting
Seafarers Join professionals from maritime, transportation, and
by the Houston International Seafarers Center. Decorated energy companies as well as other organizations in
shoe boxes filled with many useful items are donated the port region via Zoom for a virtual Commerce Club
by numerous community churches, organizations, and event brought to you at no charge by our sponsors. For
individuals from Texas and throughout the Midwest. details as they come available or to register, click here.
WISTA Texas is joining in and is seeking donations for the
Seafarers’ Christmas boxes this year.
Thank You to Our Sponsors
Many Seafarers have been out to sea for months or have
been “contained” on board for months on end, making it
more important than ever to get these Christmas boxes
packed and delivered to these forgotten heroes. To
donate via Amazon, click WISTA Seafarers Christmas
Gifts. WISTA TX will be packing the boxes Thursday,
December 3rd from 3-8 pm, at the Houston Pilots’ office.
All are welcome to participate. For more information
email: Captainsheena@msn.com.
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Port Bureau News txgulf.org 15Sergio Tito Lopez Named BND Commission Callan Marine Names Three Staff Members to
Chairman Vice President Positions
Sergio Tito Lopez was elected as Callan Marine, LTD (“Callan Marine”) has announced
chairman of the Brownsville Navigation the promotion of Kevin Pearse, Sarah Dearing, and Todd
District (BND) on November 17, 2020. Knight to vice presidents within the company, where they
will expand their current roles and continue leading Callan
Lopez serves as chairman alongside Marine into the future.
BND Vice Chairman Cowen and
Secretary Esteban Guerra, who were also Kevin Pearse, operations manager, was
unanimously elected to serve as part of named vice president of operations. He
the executive board. Commissioners is a 28-yearveteran of the dredging and
John Wood and Reed round out the board marine construction industry having
as assistant secretaries. worked for Great Lakes Dredge &
Dock, the Bean Companies, and the
Lopez previously served as chairman from 2012-2014. The Orion Marine Group. His roles have
BND is the elected authority for the Port of Brownsville in included project engineer, estimator,
Brownsville, Texas, setting policy and fiscal decisions for superintendent, and project management.
the port. Pearse graduated from Louisiana State
University in 1992 with a Bachelor of Science in General
Business.
Callan Marine Names Matt Stika New Chief
Financial Officer
Callan Marine, LTD ("Callan Marine") Sarah Dearing, estimating manager, was
has named Matt Sitka, CPA, MBA as named vice president of estimating. She is
company’s new chief financial officer. A a 12-yearveteran of the dredging industry
15-year veteran of the industrial services, and began her career at Great Lakes
dredging, and marine construction Dredging & Dock. She has a Bachelor of
industry, Sitka brings experience in Science in Ocean Engineering from Texas
the petrochemical, refining, power A&M University.
generation, marine, public, and
government industries, in addition to
four years in public accounting.
Todd Knight, technical manager, was
“We are thrilled to have Matt on our team,” stated Maxie named vice president of technical. He
McGuire, president of Callan Marine. “He excels at is a 30-year veteran of the oil and gas
communicating and establishing positive relationships and marine industries. He is responsible
between all sectors of the company, from the board of for all equipment, manages the repair
directors, management, and operations team. He is a great and maintenance program, and special
asset to our group of professionals at Callan.” projects pertaining to future Callan
Marine equipment. Knight’s experience
dates back to his role as chief electrician
Rich Howes Joins Intercontinental Terminals on semi-submersible drilling rigs. He is well versed in
Company PLC and VFD applications as well as extensive experience
with hydraulic and mechanical systems in many different
Intercontinental Terminals Company applications and configurations.
(“ITC”) has named Rich Howes as Land
Operations Manager. Howes comes to “Callan Marine is blessed with incredible experience
ITC after serving 25 years in the U.S. and talent,” remarked Callan Marine President Maxie
Coast Guard, retiring at the end of last J. McGuire. “Kevin, Sarah, and Todd not only embody
May after fulfilling his mission as Deputy the Callan mission and vision, but their teamwork and
Sector Commander, Sector Houston dedication are hallmarks of our company.”
Galveston, from 2017 to 2020. He holds
a Bachelor of Science degree in Marine
Science from the U.S. Coast Guard
Academy and a Master’s in Quality System management
from the National Graduate School-Falmouth.
16 November 2020 Port Bureau NewsGICA President Jim Stark Announces Retirement Plans
James (“Jim”) Stark, president of the GIWW, advocating on behalf of its members and working
Gulf Intracoastal Canal Association closely with the U.S. Army Corps of Engineers District
(“GICA”) recently announced plans to Offices in Galveston, New Orleans and Mobile, to advocate
retire from the organization in August for infrastructure and maintenance channel dredging to
2021 at their annual seminar in New ensure a safe and reliable waterway. Additionally, GICA
Orleans. partners with the Eighth Coast Guard District staff and all
the Gulf Coast Sector offices to assure safe operations and
Stark joined the GICA staff in 2010 as aids to navigation are sustained. GICA leads the Gulf Inland
Executive Director. Prior to his work with Waterways Joint Hurricane Response Team and maintains
GICA, Stark consulted on the response the Response Team Protocol which outlines a coherent
and recovery operations associated with the Deepwater self-help program by which the industry can participate in
Horizon Spill in the Gulf of Mexico. He also served as the post-storm efforts to clear the waterways and get traffic and
Federal Emergency Management Agency (FEMA) assistant commerce moving.
administrator for Gulf Coast Recovery. Stark served in the
U.S. Coast Guard in a number of capacities throughout his GICA is soliciting resumes for the president’s position
career, including chief of staff for the Eighth Coast Guard through December 15, 2020. Interested candidates can find
District in New Orleans. out more at www.gicaonline.com/about-us/gica-president-
position.
The Gulf Intracoastal Canal Association (GICA)is a not-for-
profit trade association with a mission to facilitate commerce
through ensuring safe, reliable, and efficient Gulf Coast
waterways – primarily, the Gulf Intracoastal Waterway.
GICA acts as a single voice for the industries that utilize the
Port Bureau News txgulf.org 17TxVEMP Accepting Applications for Level 2 Charging
Equipment for Light-Duty Zero Emission Vehicles
$10.4 million in grants available statewide on first-come, first-served basis
The Texas Volkswagen Environmental Mitigation Program is now accepting applications for grants to purchase and install
Level 2 charging equipment for light-duty zero emission vehicles. A total of $10.4 million in grants is available under
TxVEMP, which is administered by the Texas Commission on Environmental Quality. The program was created from a
settlement agreement between the U.S. Environmental Protection Agency, the state of California, and Volkswagen.
Eligible applicants include individuals, corporations, organizations, governments or governmental subdivisions or agencies,
business trusts, partnerships, associations, or other legal entities. Funds will be awarded on a first-come, first-served basis
while the program is open, or until all available funds are awarded.
Funding is available statewide for equipment installed: in a public place, workplace, or multi-unit dwelling; and at a site
without existing light-duty electric charging services.
Grant recipients will be eligible for a reimbursement of up to $2,500 per installation. Funds awarded may not exceed 70
percent of eligible costs for Level 2 chargers at public charging stations or 60 percent of the cost of chargers installed
at a workplace or multi-unit dwelling. Grants may not be used to expand the number of vehicles serviced at an existing
charging station or other site.
The TxVEMP’s goals include the addition of electric charging infrastructure in public areas, workplaces, and multi-unit
residences, with consideration given to the availability of existing charging infrastructure.
For more information, visit www.TexasVWFund.org or contact TxVEMP staff by phone at (833) 215-TXVW (8989) or by email at
VWsettle@tceq.texas.gov
18 November 2020 Port Bureau NewsPort Bureau News txgulf.org 19
Captain's Cup
The 12th Annual Captain’s Cup
Golf Tournament
to-the-Pin winners were Bill Wood,
Cooper/Ports America; Dan Manning,
Houston Pilots; and, Craig Wakefield,
BNY Mellon. The longest drive was
claimed by Andy Kuntz, Briggs &
Veselka.
Golfers stopped in for refreshments and
received some fun-to-get giveaways
at hospitality tents during the day.
A raffle of popular prizes included a
hotel & dining package at the San Luis
Resort, a golf foursome at Sugar Creek
Country Club, a PING Hoofer golf
bag, a backpack cooler, a variety of
golf gear, and more. All players went
home with the gift of a JBL Clip 3
portable Bluetooth speaker.
HDR Wins the Cup The Port Bureau extends hearty
Team: Dave Weston, Scott Marr, Danny Weston, and Bob Newell. congratulations to the Captain’s Cup
winners and thanks all the players for
a great day of sport. In addition to our
Sugar Creek Country Club lived up Additional team wins went to: generous sponsors, we would also like
to its reputation for a challenging yet • Second place gross: Moran to thank our Golf Committee for their
accommodating golf experience as the Shipping Agencies, Inc. – Jim hard work: Tim Studdert (Shamrock
Port Bureau hosted the 12th Annual Black, Tad Collier, Jesse Villarreal, Marine)-Chair, Brad Maxcey
Captain’s Cup Golf Tournament on and Jeff Williams (Danner’s Inc.), Michael Ruffino
November 2. Four-player shambles • Second place net: Rio Marine (Mobilease), Karl Schröder (Schröder
teed-off in weather that couldn’t have – Jordan Anderson, Bob Austin, Marine Services), JR Shaw (Suderman
been more perfect for a full day of Tommy Broussard, and Michael & Young ) Jacque Stilwell (San Luis
sport and networking on the beautiful McNeil Resort), Jamie Sylvester (Briggs &
greens. • Third place net: Mobilease – Veselka) and Craig Wakefield (BNY
Philip Gonzalez, Luke Johnson, Mellon).
HDR, Inc., won first place gross with Peter Johnson, and Stephen Young
players Scott Marr, Bob Newell, Danny The Captain’s Cup is quick to sell out
Weston, and Dave Weston. First place The Captain’s Cup featured several each year. If you or your company are
net went to the Lloyd Engineering contests as part of the day’s sport, interested in participating in the 2021
team with players Brandon Bricknell, including three closet-to-the-pin, hole- tournament, please send an email
Craig Drachman, Owen Parker, and in-one, and the longest drive. Closest- to golf-info@txgulf.org to receive
Patrick McKinney. updates.
20 November 2020 Port Bureau NewsTeam Wins
First place gross:
HDR Engineering − Dave Weston,
Scott Marr, Bob Newell, and Danny
Weston
Second place gross:
Moran Shipping Agencies,
Inc.− Jim Black, Tad Collier, Jesse
Villarreal, and Jeff Williams
1st Net-Lloyd Engineering 2nd Net-Rio Marine First place net:
Lloyd Engineering − Brandon
Bricknell, Craig Drachman, Owen
Parker, and Patrick McKinney
Second place net:
Rio Marine− Jordan Anderson,
Bob Austin, Tommy Broussard, and
Michael McNeil
Third place net:
Mobilease− Philip Gonzalez, Luke
Johnson, Peter Johnson, and
Stephen Young
3rd Net-Mobilease 2nd Gross-Moran Shipping Agencies
Port Bureau News txgulf.org 21Virtual Commerce Club
November Commerce Club Featuring Captain
Jason Smith, Sector Houston-Galveston, U.S. Coast Guard
Heavy Weather Port Condition Communications Revamped for Improved Preparation Planning
The role, responsibilities, and goals of U.S. Smith shared several areas of emphasis currently being
Coast Guard Sector Houston-Galveston addressed by the Sector. These included port condition
in the port region were the focal points tracks, unregulated obstructions, economic geographic
of Captain Jason Smith’s presentation, response strategies, aids to navigation knock down, and
entitled “Making Way: What We Have more.
Been Through – Where We Are Going”, at
the Port Bureau’s virtual Commerce Club Smith detailed the changes being made to port condition
on November 12. Smith currently serves status communications during heavy weather threats. “We
as Commander of Sector Houston-Galveston. understand the impact of closing down the port, yet we also
recognize the need to take prudent measures in advance
The 997 men and women of Sector Houston-Galveston of heavy weather,” said Smith. Consequently, the Sector
(“the Sector”) serve a region of the coast that spans from is creating three separate tracks to handle heavy weather
Freeport to Lake Charles, La. and accounts for 20%, or threats more efficiently and safely.
1/5th, of the U.S. maritime tonnage.
Track one is a heavy weather warning track. Similar
“This area includes five of the 20 largest ports in the warnings have been used in the past, but the new track
country, with Houston and Beaumont being number one and communications will clearly indicate no further conditions
number four, according to the Maritime Administration,” are likely to be set. The second track will be used when storm
explained Smith. “You could really call it the first and risk to the area increases. The track will go to “modified”
third single largest ports.” Smith indicated Houston and conditions, with the same expectations for limiting cargo and
Galveston alone exceed the ports of New York and New some vessel movement restrictions. However, the modified
Jersey combined.
22 November 2020 Port Bureau NewsTHE HOUSTON PILOTS
Silent Servants of Progress
www.houston-pilots.com
Thank You to Our Commerce Club Sponsors
condition indicates an expectation that port conditions are
unlikely to go to Zulu. The third track follows the traditional
heavy weather protocol, moving port conditions through
Whiskey, X-Ray, Yankee, and Zulu for approaching storms.
“Hopefully, that change will give you a better idea of what
our intentions are early on, based on what we know in a
weather forecast,” Smith said.
He closed his presentation with his thanks for the industry
and community support that enables Sector Houston-
Galveston to effectively perform their mission. “Our goals
all align with your goals. We all want to have safe, secure,
clean waterways, and we could not accomplish these goals
without your support,” he concluded.
The Question & Answer session included a brief discussion
on maritime security, the Sector’s role in ensuring IMO
2020 compliance, and potential impacts to the Sector’s
budget under a new Administration.
Port Bureau News txgulf.org 23Join Today!
2020 Executive Partners
The Port Bureau helps over 230
member companies work together to
promote cooperation and efficiency
within the maritime industry. As a
member you will have access to:
1. Vessel Movement Information:
statistical monthly vessel
movement report and vessel
movement information for Texas
ports
2. Port Information: weekly report,
monthly magazine, port updates,
special projects and grant writing
assistance
3. Networking: Commerce Club
luncheon discounts, annual dinner
and golf tournament, and annual
membership directory
4. Advocacy: community outreach,
harbor maintenance and dredging
support, port efficiency, maritime
awareness and education, and
maritime security
5. Research: data and analytics,
economic impact studies and
special industry reports upon
request
For more information about Port
Bureau membership, please visit:
txgulf.org/join-us-now or
call: (713) 678-4300.You can also read
