Bradley Murchinson was proud to once again sponsor the 10/12 Industry Report and Baton Rouge Business Report’s 2022 Louisiana Petrochemical Outlook on March 29th. The webinar was hosted by Julio Melara, CEO of Melara Enterprises, a multi-media company whose publications include Baton Rouge Business Report and 10/12 Industry Report and moderated by Baton Rouge Business Reportexecutive editor JR Ball.
Expert panelists included Rhoman Hardy, senior vice president of Shell Chemical and Products for the U.S. Gulf Coast; Martha Gilchrist Moore, chief economist and managing director of the American Chemistry Council; and David Yankovitz, principal and chemical practice leader for Deloitte, author of the 2022 Chemical Industry Outlook discussing topics from the state of the Louisiana petrochemical industry, its future amongst changing market conditions, and an evolving energy landscape.
The Q+A opened prompting the esteemed panel to share their personal insights as to 2022 bringing recovery for the petrochemical industry. To this, one panelist praised Louisiana’s prominent petrochemical industry as the second largest chemical manufacturing state in the nation, a sector responsible for more than 26,000 direct jobs and supporting more than 81,000 indirect jobs throughout the state with expectations of 3.6% expansion and record-breaking chemical exports leading to an “industry surplus of $31 billion by 2025.”
These thoughts and positive outlook echo earlier remarks from Bradley Murchinson member Jerry Jones, saying, “Louisiana is so fortunate to have such a strong petrochemical industry” and that “it’s been amazing to see the renaissance over the course of the last few years.”
When asked about their high-level thoughts about potential impacts resulting from the situation in Ukraine, the panel gave thoughtful replies that the situation in Ukraine was a humanitarian issue but also a “fundamental disruption to the energy system.” and that trade flows would be impacted, but results would depend on the effectiveness of sanctions and length of the conflict.
After a discussion about the capacity of sustainability within the industry, the panel concluded with positive comments about employment growth and while levels remained below pre-pandemic, “the gap is closing” suggesting the opportunity and advantages Louisiana has for chemical manufacturing.
When asked as a final question about the outlook for Louisiana’s petrochemical industry, the panel noted that the chemical industry in the U.S. was “well-poised for the coming year” and despite inflation and the situation with Ukraine, things are headed for a “good year for the chemical industry.”
As always, the firm is happy to be a longtime sponsor and invested partner in bringing events like this one to fruition, and we continue to be grateful for the “companies who invest in Louisiana, employ our people and feed our families.”