Government Relations at Phillips 66

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Conoco and Phillips 66 announced on November 18, 2001 that their boards of directors had unanimously approved a definitive agreement for a "merger of equals". The merged company, ConocoPhillips, became the third-largest integrated U.S. energy company based on market capitalization and oil and gas reserves and production. On November 11, 2011 ConocoPhillips announced that Phillips 66 would be the name of a new independent oil and gasoline refining and marketing firm, created as ConocoPhillips split into two companies. ConocoPhillips kept the current name of the company and concentrated on oil exploration and production side while Phillips 66 included refining, marketing, midstream, and chemical portions of the company. Photo: Hugh Pickens all rights reserved.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Contents

Master Index of Articles about Phillips 66

The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the Refinery Complex in Ponca City. The supercrane was used to move two new 232 ton coker reactor units within the refinery on September 29, 2013. Phillips was willing to invest $70 million in the two new coker reactor units because the Ponca City Refinery is one of the best run, safest, and most profitable of Phillips' fifteen worldwide refineries and Garland wants the refinery in Ponca City to continue to run smoothly and profitably. This photograph of the supercrane in Ponca City was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.
Hugh Pickens, an analyst who closely follows Phillips 66, speaks with Phillips CEO Greg Garland (right) about the disposition of the North Tower, South Tower, and Research West at Phillips' Ponca City Refinery after Garland's speech to the Bartlesville Chamber of Commerce on August 13, 2014.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Government Relations

Phil Brady, the president of National Automobile Dealers Association, was named senior vice president of government affairs for Phillips 66 on July 30, 2012. Brady, who will be based in Washington, will be responsible for the company's federal, state and international policy and governmental affairs efforts.[1] Photo: Businesswire

July 27, 2017: EPA Director Scott Pruitt Visits Phillips 66 Research Facility in Bartlesville

Bartlesville Radio reported on July 27, 2017 that Environmental Protection Agency Administrator Scott Pruitt visited Phillips 66 Research Facility in Bartlesville this week and talked to leaders there as part of Pruitt 's Back to Basics Agenda -- an effort he implemented to take the EPA back to its core mission. Pruitt says he sees Phillips 66 as making an effort to do the right thing, not just to meet a government mandate.[2]

February 1, 2016: Phillips Spent $1.4 Million on Lobbying in California in 2015

The East Bay Express reported that Phillips 66 spent $1,483,032 lobbying in the state of California in 2015. The total for all oil companies in California was a record $22 million. According to a report from the American Lung Association in California written by Will Barrett, Big Oil spent its $22 million “attacking healthy air and climate legislation." Under intense pressure from Western States Petroleum Association (WSPA) , the legislature and governor removed a provision from SB 350 to reduce petroleum use in California by 50 percent in the next fifteen years. In addition, Big Oil forced SB 32 (Fran Pavley), which would have set greenhouse gas reduction limits to 80 percent below 1990 levels by 2050, to be shelved until the next legislative session. The oil industry also defeated legislation, SB 788, which sought to close a loophole in state law that currently allows slant oil drilling through a marine protected area — the Vandenburg State Marine Reserve, created under the Marine Life Protection Act (MLPA) Initiative, and the Tranquillon Ridge.[3]

May 19, 2015: Phillips Lobbies Texas Legislature to Simplify Qualification of Companies for School District Tax Breaks

The Austin Business Journal reported on May 19, 2015 that lobbyists for Phillips 66 were on hand at the Texas Capitol Tuesday to support a House bill set to simplify the qualification of companies for school district tax breaks. The House bill would allow applicants to combine a larger project’s value rather than qualify separate applications with individual school districts. In the case of Phillips 66 (NYSE: PSX), the company’s current $3.5 billion project in Brazoria County south of Houston crosses three school districts. For each school district, Phillip 66 must verify $100 million of value to be taxed. Phillips 66 produces natural gas liquids and petrochemicals. Heath DePriest, who spoke on behalf of Phillips 66 on Tuesday, said the ability to simplify the application process would ease the work to bring some of the more than $15 billion in projects Phillips 66 has planned for the next 5 years. Short term, this change could put more of a financial burden on taxpayers, but long term the projects would provide more tax dollars for all jurisdictions.[4]

May 8, 2015: California Fines Phillips and ConocoPhillips $11.5 Milion for Waste Violations

The San Fransisco Chronicle reported on May 8, 2015 that Phillips 66 and ConocoPhillips have agreed to pay the fine as part of a settlement of the violations, according to the final judgment filed Thursday in Alameda County Superior Court. The companies were accused of allowing 560 of their service stations in 34 counties to improperly operate and maintain underground gasoline storage tanks, endangering nearby water supplies. The violators included the 150 stations in the Bay Area, including 16 in San Francisco, authorities said. “This settlement holds Phillips 66 and ConocoPhillips accountable for this dangerous negligence and will ensure future compliance with environmental laws,” said Attorney General Kamala Harris. The complaint, filed in January of 2013, claims that the two affiliates failed to properly train employees and have not adequately maintained leak detection devices, tested secondary containment systems, conducted monthly inspections or maintained operational alarm systems since 2006.[5]

October 20, 2014: Candidates for US Congress Discuss Wood River Refinery

The Telegraph reported on October 20, 2014 that Republican challenger for the Illinois Congressional District 12, Mike Bost, was joined by fellow Republican, John Shimkus (R- IL Dist. 15) at the Phillips 66 refinery in Wood River to discuss energy issues that affect Illinois residents. Shimkus is on the Congressional Energy Subcommittee, and was at the refinery to support Bost as well as future legislation regarding the controversial Keystone Pipeline XL. Shimkus said that the general public was not aware of how many pipelines there were in everyday use. “It is the safest, cheapest, and most environmentally sound way to move liquid product,” said Shimkus and added that Democrats in Congress were “dragging their feet” on the matter and he said that it was “ridiculous.” The two were discussing the expansion of the Keystone Pipeline with Phillips 66 in the background to display how many jobs American energy creates. According to representatives from Phillips 66, the refinery employs as many as 850 people directly and 400 indirectly through contract work. Many jobs were created when the refinery spent $4 billion to prepare for the incoming Canadian crude oil according to Shimkus. “They gave us jobs in a time when there wasn’t a lot of jobs in the area,” said Shimkus. After their short statements at the Phillips 66 refinery in Wood River, Shimkus and Bost went to Percy, Ill. to tour the Nighthawk Coal Mine.[6]

February 20, 2013: Phillips Retains Van Ness Feldman as New DC Lobbyists

Legal Times reported on February 20, 2013 that Phillips has retained Van Ness Feldman as their first outside firm to lobby in Washington to advocate for it on oil and gas industry matters, tax reform and the looming $85 billion in spending cuts known as the sequester, according to lobbying registration paperwork filed with Congress.[7]

February 20, 2013: Phillips Spent $1.5 million Lobbying Federal Government in 2012

Legal Times reported on February 20, 2013 that according to congressional records, Phillips has spent $1.5 million on federal government advocacy since it submitted lobbying registration paperwork to Congress in June 2012 and deployed three of its employees to lobby for it. In 2012 Phillips lobbied on U.S. Environmental Protection Agency issues concerning the oil and gas industry, the EPA's renewable fuel standard program and refinery rulemaking.[8]

November 14, 2012: Greg Garland Expects More Government Regulations During Second Obama Term

Fuel Fix reported on November 14, 2012 that Greg Garland expects President Barack Obama’s second term to bring a wave of regulations on their industry that portends another four years of policies that will reduce demand for their refineries’ petroleum-based fuels. “With the election now decided, I see a very active regulatory environment for the next four years,” says Garland. "There’s no question, between renewables and CAFE standards, over the next 10 to 20 years, you’re looking at a 10 to 20 percent reduction in gasoline demand. That’s something that concerns us.” Garland and Marathon Petroleum CEO Gary Heminger said new and expanded federal regulations, including the Renewable Fuel Standard and the Corporate Average Fuel Economy (CAFE) standards, have cost their companies billions over the years while cutting use of their products.[9]

July 30, 2012: Phil Brady Named Top Lobbyist for Phillips 66

The Detroit News reported on July 30, 2012 that Phil Brady, the president of National Automobile Dealers Association, has been named senior vice president of government affairs for Phillips 66. Brady, who will be based in Washington, will be responsible for the company's federal, state and international policy and governmental affairs efforts. Brady has previously served in senior White House positions for President Ronald Reagan and President George H.W. Bush and also served as general counsel at the U.S Transportation Department, and in senior positions with the U.S. Justice Department and Congress.[10] “It is important that our key constituents understand the economic value that energy companies like Phillips 66 bring to our country as a U.S. manufacturer, and Phil will help us to effectively share that story,” says Phillips 66 CEO Greg Garland. “Over just the past few months as an independent company, Phillips 66 has already put together an exceptional management team and strategy to grow in meeting the energy needs of this country,” says Brady. “I look forward to joining the team to help re-introduce this iconic energy company to our government leaders.”[11]

References



Master Index of Articles about Phillips 66

The North Tower and the South Tower, part of Phillips 66's Refinery Complex in Ponca City, contain over 250,000 square feet of Class A office space that is essentially unused. Research West contains another 230,000 square feet of unused Class A office space. Photo: Hugh Pickens
Ponca: A Core Asset. Phillips CEO Greg Garland told members of the Bartlesville Chamber of Commerce on August 27, 2013 that the refinery at Ponca is a 'core asset' of Phillips 66. The refinery in Ponca City "is making very good money for us," Garland told his Bartlesville audience. Garland added that he expects gas demands in the U.S. to decline by 20 percent in the next 10 years, but that demand for refined products in South America and Africa will more than offset that decline.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations

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