Processing

SF: Most of our businesses have more in common than might meet the eye. We take some form of commodity and we’ll process it through a very, very large plant that requires sophisticated technology and analysis to ensure that we have a competitive advantage and a capability to go to market in scale. Then we’ll optimize around that processing or manufacturing process because there is raw material risk, commodity risk, and counterparty risk.

We also have the capability to be very efficient and effective from a cost perspective and the capability to constantly innovate because the technology changes in these big plants. We must be adaptable to ensure that we don’t fall from the first quartile to the second, third, or fourth quartile in cost advantage.

Our other core capabilities besides innovation and operations excellence are Market-Based Management®; trading; transaction excellence; and public sector, which encompasses legal, communication, community relations, and government relations.

So, whether it’s crude oil going into refined products, natural gas going into fertilizer, naphtha going into chemicals, trees going into pulp, metals going into our manufacturing businesses — each of these businesses fit the capabilities described above.

fascinated by this interview with Steve Feilmeier, CFO of Koch Industries (from Graham & Doddsville).

I don’t agree with the Kochs on politics but I have wiped my ass with their toilet paper.