2014 Summer PVF Roundtable, Houston

The summer PVF Roundtable meeting at the Westin Galleria in Houston was highlighted by the organization awarding $100,000 in scholarships to two Texas universities.

The PVF Roundtable Scholarship Fund presented checks for $50,000 each to representatives of the University of Houston’s Cullen College of Engineering and Texas A & M University’s Dwight Look College of Engineering (industrial distribution).

“We are most impressed and most grateful for the support the PVF Roundtable has shown to our program,” Cullen College of Engineering Dean Dr. Joseph Tedesco said.

PVF Roundtable President Danny Westbrook (Westbrook Mfg.) said he would like the scholarship fund to expand beyond the university level and into trade schools and community colleges. “We want to expand the scholarship program to include occupations such as welders and pipe fitters,” he said. “There is a big need for those positions in our industry.”

Another large Roundtable crowd heard from a keynote panel comprised of members of the Procurement Executives Group, which provides a forum to identify and address procurement-related issues that will improve the effectiveness of the engineering and construction industry. The panel included Art Wardlaw (Technip USA), John Mika (CB & I),Kent Malone (S&B Engineers and Constructors), Peter Jessup (AMEC Group) and John Krehmeier (Jacobs).

Mika, the director of global procurement, oil and gas, at CB& I, delivered the group’s market outlook based around its Engineering Construction Cost Index. Mika noted oil’s share of primary energy continues to decline, while gas steadily gains share. Fossil fuels, he said, will still be the dominant form of energy in 2035, while power will be the largest growth area.

“If we look forward to the future of global demand, it still will be extremely balanced around the three fossil fuels (gas, oil and coal),” he said.

Other highlights from John Mika’s presentation:

• Shale oil production in the United States will continue to grow to 9 million BPSD in 2015.
• Crude prices will remain around $100 per barrel with the gap closing between West Texas Intermediate and Brent Crude.
• Several large liquid natural gas expansion projects are underway, which will create opportunities due to the complexity of the work.
• The next wave of LNG expansion will occur in east Africa.

Jessup then addressed another hot-button topic, the issue of quality control on projects.

“There has to be confidence and trust in the supply chain and the ability to manage quality assurance,” he said. “That can affect the evaluation of suppliers’ bids. There is an increasing concern by customers and their shareholders that projects are not hitting their financial targets and that has led to deferment or cancellation of projects. We as an industry need to address the issues related to quality and the impacts they create, which are a factor.”