GPA '17: GPA Midstream to "play more offense" on regulatory issues

By Adrienne Blume, Editor

SAN ANTONIO—At the packed Monday morning general session of the 2017 GPA Midstream Convention, GPA Midstream President and CEO Mark Sutton, and Chairman Wouter van Kempen of DCP Midstream, gave opening remarks and presented service and safety awards.

The CEO and Chairman's speeches were followed by a keynote address by Bill McDermott, CEO of business applications and analytics software firm SAP.

GPA Midstream taking offensive stance on regulation. Mr. Sutton noted that the GPA Midstream Pipeline Safety Committee is working with the US Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA) to address the lack of midstream participation in ongoing and upcoming pipeline legislation.

He also mentioned the Association's involvement in the US Environmental Protection Agency's (EPA's) information-collection request for first-time regulations for methane emissions from existing sources.

Mr. van Kempen noted that GPA Midstream members had accomplished much since the last annual convention in New Orleans, Louisiana, but that it had been a "rollercoaster of a year."

Chairman Wouter van Kempen of DCP Midstream

He also gave a nod to the rebranding of GPA as GPA Midstream, and to the Association's new look, which was introduced in 2016. The rebranding of GPA Midstream is an important component of shaping the US' evolving midstream sector into the future, Mr. van Kempen noted.

Additionally, the midstream industry is taking actions to reduce regulatory burdens and maintain the proactive ­development of energy supplies while being sensible about environmental issues, Mr. van Kempen said.

The Chairman added, "Our direction is to play more offense versus defense on regulatory issues." To that end, "One of GPA Midstream's highest priorities—with the greatest benefits to members—is the formation of an advocacy advisory group," he said.

This group will replace the existing Advocacy Steering Committee and "provide council, direction and expertise on advocacy issues directly affecting midstream companies," the Chairman noted.

In closing, Mr. van Kempen urged attendees to "be visible; do not stand in the shadows … We need to be engaged. That is how you, your company and GPA Midstream will achieve success."

A Winners Dream. Bill McDermott, CEO of SAP, then addressed attendees with an inspirational keynote speech about overcoming challenges and practicing smart business.

Bill McDermott, CEO of SAP

Mr. McDermott talked about how he traded three part-time jobs at the age of 16 to buy a small delicatessen on Long Island. To achieve success in his new business endeavor, he created a customer-driven philosophy to cater to potential patrons in his neighborhood. "The customer determines whether we win or we lose," Mr. McDermott asserted.

He began a deli delivery service for senior citizens at a nearby retirement community, so that the seniors would not need to leave their condominiums. He also offered credit for blue-collar workers, whom he credited with always repaying their debts. Mr. McDermott also found a way to attract students from the nearby high school by installing a small arcade at the deli.

Mr. McDermott started at SAP in 2003 and became CEO in 2010. "What did I learn from this experience? Vision," he said. "But the world was changing fast, and the business needed to change with it."

To determine SAP's business strategy moving forward, Mr. McDermott said, "We [at SAP] had to ask ourselves: If we weren't around, would anyone notice? Would it really matter?" The same questions can be asked about the oil and gas business and the midstream sectors, the CEO noted.

The answer, in all cases, is the same: "Yes, we matter." SAP quickly moved into—and excelled in—such spaces as Cloud computing, new business analytics software platforms, real-time data management and big data, to name a few.

"As you think about your business strategy, do things that help the world run better," Mr. McDermott said in closing. "Think about your customers and how you can help them succeed, and you will succeed."

The GPA Midstream Convention is taking place at the Marriott Rivercenter in San Antonio, Texas, from April 9–12.

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