The New Terminal Conversion Trend, Is It Already Being Exported?

Refinery to terminal conversions have, for the most part, occurred quietly. It’s a trend that hasn’t yet swept the market but is slowly beginning to pick up momentum. Companies like Royal Dutch Shell PLC and Petroplus have made headlines for such conversions but larger investment firms are slowly moving in to capitalize on such investments. Many conversions that have happened here in the United States are due to an excessive amount of shuttered refineries created from government subsidies back in the 1950s and 1970s. By the time crude prices collapsed in 1982, many of the smaller refiners were left at a disadvantage within the market at the hands of huge transportation and financial costs.

Now, these long shuttered and mostly unpleasant sleeping giants are being transformed into useful storage and distribution centers that can also accommodate water treatment facilities and other industrial uses. By breathing life back into these dormant sites, small communities are able to experience quality job growth and local tax revenue from these tracts of land.

As the world’s largest consumer and importer of oil, it is essential that local refiners can continue to run efficient operating budgets while local economies can reap the benefits of the transformed sites. However, as the demand for fuel continues to rise in industrializing nations like China and India, such conversions may have some competition from abroad. In the

Shell Oil refinery in Hemmingstedt, Dithmarsch...

Wall Street Journal’s online edition, Ben LeFebvre speaks to a new phenomenon of Asian firms seeking to “expand their fuel-making capacity” through “cheaper” means by purchasing ex-refineries, tearing them down and exporting the components.

Currently our job market is hemorrhaging and our countries responses to creating new opportunities for American citizens are pithy. It’s clear that no community wants to have a shuttered refinery within their city limits, but if it could be commissioned to supply a varied amount of talent and economic feasibility, why would we want to export American benefits to a competing economy?

ICOSA worked with industry insiders to follow a current terminal to refinery conversion happening in Fruita, Colorado. Pick up the next issue of ICOSA, Infrastructure: Building Tomorrow...Today or visit www.theicosamagazine.com for the story "Converting Refineries to Terminals".

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Dr. Jerry Peterson, Understanding a Nuclear Fellow

On the tenth floor, perched high above the University of Colorado, Boulder campus, teeming with young minds, running eagerly between classes is the office of physics professor, Dr. Jerry Peterson, Ph.D.  His office is quaint but every inch of it is covered. Books line shelves and table tops, papers and binders are stacked high on two separate desks, graphs and charts hang on the walls and sitting atop one of his bookshelves are Geiger counters and a Safeway bag filled with uranium ore. “Come on in, check out my view,” he says to me. Through the only window in the office, he looks out onto the beauty and simplicity of the flatirons that stretch across the Boulder horizon.  It is the perfect juxtaposition to the chaos of his office and the nature of his study.

Dr. Peterson is a renowned expert on nuclear power and served as a Jefferson Science Fellow to the State Department. While his primary duty now is advising students, Peterson spent the latter part of his career advising U.S. officials and members of the intelligence community on issues and ideas pertaining to coal, nuclear energy and the environment.

His capstone class, Technology and Global Security, examines nuclear weapons, information and climate change as phenomenon and technical origins and fixes for problems that his future leaders will face in their careers. He teaches them not so that they know the details but so that they know enough to examine the impacts.

Old Main on the University of Colorado at Boul...

“There is nothing taught about nuclear weapons on this campus except for in my class,” Peterson says, “There is a lot of distaste, especially amongst the educated, for the idea of nuclear weapons or anything nuclear for that matter.” He is clear that people would have a better understanding about the ideas, the issues and the element if people could transmit just enough relevant information about the subject to get their point across.

“People need just-in-time information,” but stressed that, “Public opinion is too often swayed by headlines and less about the facts.” Inherently, with the nature of uranium and the recent attention grabbing headlines like the nuclear fuel meltdown at Fukushima Daiichi, Peterson is sure that people will continue to have a skewed perception about uranium and the nuclear industry.

In lieu of the Daiichi disaster, the industry experienced a substantial setback as prices were validated on growth in the industry.  And while there are currently 433 nuclear reactors actively burning uranium in 30 countries worldwide, the market is still shaky from many worldwide economic variables.

Miningweekly.com quoted junior CanAlaska executives who said the industry had reached “the bottom of the trough” and that there would be “a wave of buying.”  The decline stands in contrast to the desire by many to have access to carbon free energy sources.  The demand is seen in areas that rely heavily on air-conditioning which in turn generates a greater demand for energy growth to existing grids.

“As a 50 percent worldwide urban population, we are more separated from the fundamentals of supply than ever before,” he says, “We’ve created highly engineered complex systems to stay efficient, but that same efficiency we’ve created holds intrinsic dangers." That same efficiency has led us to be unprepared for energy demands that regardless of what people think, are vital to the cog of America and every corner of the planet.

While green energy has pushed its way to the forefront of many industrialized nations and is even spreading into developing nations as well, it has not evolved enough to slow the use of other natural resources that still face increasing demands. Peterson knows this.

The inherent contrast of Peterson’s life is what makes him so fascinating. On one hand he lives in Colorado where the landscape dominates the forefront of people’s minds, however he understands the barriers and opportunities that exist within the energy sector, especially nuclear. As an element that provided roughly 13.5% of the worlds energy last year, according to the Nuclear Energy Institute, it is clear that regardless of people’s fears and environmental concerns, plants will continue to burn uranium.

“Of all environmental hazards it (nuclear) is by far the easiest to detect, you don’t need complicated chemistry. It is an in your face notification of its hazard. Far, far more dangerous and harder to detect is mercury; at very small concentrations it is very hard to measure. Uranium, even at a level far from hazardous clicks loudly and gives you a number on a meter and you know all about it,” he informs me.

The map shows the commercial nuclear power pla...

Like other natural resources, it is important for individuals to understand the process along with the pros and the cons of extraction and production. As the industry remains hard hit there is still a new market for nuclear power.  “It’s been done before, but its the use of smaller reactors. The military did it years ago running radar stations,” he reminds me, “These new kinds of nuclear reactors are smaller, sealed and self-contained. It’s a way for remote mines, oilfields and areas with a weak grid, even small towns to receive more energy.”

Peterson at this point brought me full-circle. In just under an hour and a half he ran through history, talked about implications and gave a clear understanding about the facts of uranium and nuclear’s certain future. At this point I understood the evolution of our conversation and was clear why as a prominent nuclear physicist, he is a leading CU professor and once a Jefferson Science Fellow. He’s relatable.

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Aspen Institute's MBA Ranking Includes Four Colorado Schools

September 21st marked a milestone for Colorado business schools who took home top spots in the Aspen Institute’s new MBA rankings. The ranking focused on schools that offer relevant courses centered on topics of sustainability via social, environmental and ethical practices and how businesses are impacted by these decisions. Over the course of seven months, the Aspen Institute analyzed course descriptions, course availability and faculty research data from 149 schools in 22 countries to determine this years top MBA schools. Participating schools were measured independently based on size, enrollment and resources to determine the strength of each score.

The University of Denver Daniels College of Business took the top spot at number 15, while the University of Colorado Boulder's Leeds School of Business finished number 21, Colorado State University number 37 and the University of Colorado Denver took home the number 53 spot on the Institute's list of top 100 MBA programs in the world.

The rankings were released on the heels of the fifth straight week of higher than average summer unemployment claims. Reminding businesses, schools and students why it is important to create a culture of sustainability. Now, more than ever, graduate programs are changing their teaching models to focus on how to better educate their students in an ever changing business environment.

And while some may contend that the touchy-feely trend of corporate social responsibility and the ethical analysis of business at the graduate level is an obligatory and forced curriculum that emphasizes too much on results that should be common sense; the reality of Wall Street-esque practices are still too close for comfort to some. “Long-term sustainability is here to stay. The recognition of the importance of ethical, sustainable business models will be taught and go beyond the business school and I think you’ll see it in public affairs and other areas of academic institutions focusing on responsible control mechanisms,” said Dr. Cliff Young from Colorado University, Denver.

As the effects from business decisions have become far more reaching, graduate classes focused on long-term sustainable growth and corporate social responsibility will continue to creep into college and university curriculum. “There is a greater recognition and attention in business to things like ethical conduct, being socially responsible in your community and operating in a sustainable manner; they  aren’t trade-offs to profit margins they are contributors to profit margins and long-term value,” said Dr. Bruce Hutton, Dean Emeritus, Daniels College of Business, University of Denver.

As a society we’ve witnessed the cost of doing business and the fragility associated with that cost. A company’s corporate mission statement, philosophies and public perception can be tarnished in the blink of an eye. It’s become more apparent that the ability to operate effectively is part and parcel to an organization’s efforts towards a responsible future for its sustainable growth and the leaders charged with doing so. Ethics may seem to be a common sense attribute but our communities have paid witness that it is not.

The Aspen Institutes new ranking, although based on a collection of willingly provided data from participating schools, showcased a group creating solid fundamental courses and programs to teach our future business leaders solutions to mitigate risk and how to create sustainable business models, in an effort to be a good corporate citizen while also turning a profit.

Project C.U.R.E and Rio Tinto Partner to Support Mongolia

It was a great day in Denver, but it was an even better day for the people in Mongolia. Thousands of miles away from the capital, Ulaanbaatar, in a ballroom in downtown Denver, 1,800 people came to support and provide hope to a population of people they will probably never meet.

In its seventh-annual fundraiser to increase awareness of global healthcare needs and support, Project C.U.R.E. hosted the First Lady of Mongolia, Mrs. Bolormaa Khajidsuren, to raise $3 million in medical supplies and equipment for the countries hospitals and clinics. “It is about unity and cooperation to achieve great goals and I believe that is what we are doing here,” said Khajidsuren.

And unified they were. In addition to Project C.U.R.E.’s partnership with the Mongolian government and its leaders, Rio Tinto, an international mining company, provided the underwriting sponsorship for the entire luncheon to ensure all of the money raised by attendees would go directly to the Mongolian aid effort. The corporate donation was a huge show of support to the citizens of Mongolia and Project C.U.R.E. who was able to concentrate its fundraising efforts solely towards medical relief.

“Project C.U.R.E.’s work to meet the world’s and Mongolia’s healthcare needs is consistent with Rio Tinto’s commitment to create sustainable benefits in the global communities where we live and work,” said Cameron McRae Rio Tinto Country Director in Mongolia and Oyu Tolgoi copper-mine CEO.

Rio Tinto’s, Oyu Tolgoi open-pit and underground gold-copper ore mining project is located in the Gobi Desert of southern Mongolia. The company estimates that the mine revenue will make up about one-third of Mongolia’s economy by 2020 helping to increase transportation, construction, retail and wholesale trade as well as manufacturing infrastructure.

“Rio Tinto’s support and community outreach initiatives matched perfectly with our goals. It only seemed right to work with them,” said Dr. Douglas Jackson, president and CEO of Project C.U.R.E., “If the people of Mongolia aren’t healthy they can’t achieve success. I want to see them be successful.”

Her Excellency, Mrs Bolormaa expressed her gratitude to both Rio Tinto and Project C.U.R.E. for their generous monetary and in-kind support. But it was Project C.U.R.E.’s founder Dr. James Jackson and his wife who she thanked for their tireless work and years of support for Mrs. Bolormaa's country and communities. “Mongolia needs support for its social settings including and mainly in its healthcare sector,” said Bolormaa, “The donations will be mainly spent on addressing medical and health needs in rural Mongolia, I would like to extend my earnest gratitude to Project C.U.R.E. and Rio Tinto for this support.”

Gillette Welcomes Basin Electric's New Coal-Fired Power Plant

Basin Electric's $1.36 billion Dry Forks Station located in Gillette, Wyoming.
Without a cloud in the sky, marked by a surprisingly windless morning in Wyoming; Basin Electric CEO and general manager, Ron Harper, members of the Basin Electric cooperative, along with state dignitaries and citizens, dedicated the new $1.35- billion Dry Forks coal-fired power plant just six miles north of Gillette.
In what could be considered the last permitted coal-powered plant, the 385 megawatt Dry Forks facility was recognized for investing $336 million in environmental controls and a budget of $5 million annually to operate those controls regulated in part by Wyoming Department of Environmental Quality, the State of Wyoming and the Environmental Protection Agency.

A crowd of over 1,100 good-humored people reveled in the finality the dedication provided, concluding over a half decade thronged with permitting issues and technical reviews and analyses of more than 12,000 pages that ultimately delayed the anticipated January, 2011 opening.

“There were amazing hurdles that had to be overcome to get the plant built,” said Wyoming Governor Matt Mead, “Coal is part of our past, present and future.” The Dry Forks facility, which employed 1,300 skilled workers from across the nation during the construction phase, will employ 85 people from the local Gillette community. The station, one of 135 member rural systems that distributes electricity in nine states, will supply enough whole sale power to service 308,000 homes.

For more about Basin Electric and the Dry Forks Station read ICOSA's next issue, Infrastructure: Building Tomorrow Today.