AFPM Annual Meeting 2022: Communicating the industry’s values through the noise
The 2022 AFPM Annual Meeting – the world’s premier refining meeting and one of AFPM’s flagship events – kicked off an in-person gathering on Monday, March 14, in New Orleans.
Industry leaders, trade and policy experts, and refining and petrochemical peers met to discuss and learn what technology and policy changes mean for the refining and petrochemical industries.
In addition to in-depth technical sessions and high-level panel discussions, this year’s event featured a keynote speech at the Annual Meeting Luncheon by The Honorable Michael R. Pence, 48th Vice President of the United States. The vice president drew upon his experiences on Capitol Hill, as the governor of Indiana, and in the White House to provide thoughtful conversation and practical takeaways on public service, principled leadership, and faith and family.
This year’s event also featured presentations by Representative Garret Graves (R-LA-6) as well as experts on politics, policy and technology: Ian Bremmer, President and CEO of Eurasia Group, “Managing risk in an unstable world”; Frank Luntz, pollster and communications expert, “What’s REALLY on the mind of America”; Robert Bryce, energy journalist and author, “Renewable dreams, hydrocarbon realities, and the fuels of the future”; and David Wasserman, Senior Editor, Cook Political Report, “An insider's guide to DC: What’s next? Navigating 2022.”
Chet Thompson, President and CEO, American Fuel & Petrochemical Manufacturers, opened the event by welcoming all the attendees and expressing his appreciation for their attendance and the opportunity to be together in person.
Thompson praised the character and values of the industry professionals’ commitment to their industry, people, communities and environment as they continue to deliver much-needed energy to the U.S. and the world.
The Russian invasion of Ukraine – and its social as well as wide-ranging impact on the industry – was a key focal point throughout Thompson’s remarks and the entire event. “Within hours of Russia’s invasion of Ukraine, when most policy makers were hemming and hawing about what to do, you knew exactly what to do,” Thompson said. “You immediately suspended all new purchases of Russian crude and refined products. You led as opposed to following others’ lead. You didn’t wait for instructions from the government or the president’s delayed executive order to act.
“You could have taken advantage of discounted crude, but you didn’t. You knew what was right; you knew what the world needed, and you acted. That’s a show of real leadership.”
Thompson addressed the industry’s performance during the COVID crisis, noting that refining and petrochemical companies adapted and continued to operate and produce needed fuels and products while most businesses shut down.
“Our products fuel more than 10 MM passenger flights, and trillions of miles driven,” Thompson continued. “Ironically, the technologies that are meant to make our petroleum fuels irrelevant are, in fact, made from these very products.”
Security. “Our products are also a strategic asset to the U.S., helping us to become more secure and less reliant on other countries, many of which do not have the same stringent environmental standards we have.”
Thompson stated that the war in Ukraine should tell us all we need to know about energy security, and asserted that maintaining and advancing U.S. energy security must be a strategic priority. “Without it, we could lose important ground on matters of trade, diplomacy and national security,” Thompson said.
With an expected global population growth of more than 2 B people in the next few decades, there is no scenario in the foreseeable future in which the world stops needing refined and petrochemical products. “If we pull back from the hydrocarbon business in the U.S., other countries will fill the gap, likely to the detriment of our security, economy and the environment. We have the resources and capability to meet our own country’s energy needs and help our allies be less dependent on the likes of Vladimir Putin. It would be a mistake for us as a country not to do so.”
Domestic strength. Thompson stressed the importance of the HPI industry to the U.S. economy and local communities. Nearly $600 B is contributed to the GDP and almost $125 B of taxes are paid. Thompson said, “Our facilities are the foundation of hundreds of communities across the country and support more than 3 MM jobs, providing quality, family-supporting wages that are upwards of three times the national average wage. We continue to foster more diverse, equitable and inclusive workplaces, where each employee is valued for their unique experience and point of view.”
He continued by praising the industry for its commitment to providing the fuel and petrochemical products the growing world needs to thrive, in an increasingly sustainable way…finding new ways to tackle the biggest challenges, reducing emissions, creating a more circular economy for plastics, and pioneering and supporting technologies to reduce emissions from operations.
U.S refiners are driving emissions reductions across the transportation fleet, as well, investing record amounts in the production of lower carbon fuels, such as renewable diesel and sustainable aviation fuel, that could cut carbon emissions by as much as 80%.
Thompson concluded with a call for the industry to develop and champion policies that drive the energy evolution forward, as well as develop solutions to drive progress.
“We must have the courage and conviction to stand up for what we believe and the products we manufacture,” Thompson said. “We must have the courage to push back against the narrative that the only path to a cleaner and safer future is one without our industries and products, even if it makes us unpopular in certain circles. We must offer our own roadmap for a cleaner future, but also have the courage to call out bad ideas and bad policies, and hold policy makers accountable.”
Thompson concluded by stating that, despite the backdrop of the world today, he is optimistic about the industry’s future. “Better days are on the way. God-willing, we are on the other side of COVID. The free world has come together to support the people of Ukraine and stand against tyranny. The world is recognizing the importance of our products and more Americans are coming to see the value of our energy security.”
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