EXECUTIVE INSIGHTS
Mike Achacoso
Senior VP Operations at Calumet
Mike Achacoso shares insights from his extensive career in the Oil & Gas industry.
In this conversation, 6-Group Client Partner Sam Yates interviews Mike Achacoso, Senior Vice President Operations at Calumet. Mike shares insights from his extensive career in the oil and gas industry, particularly his experiences at ExxonMobil and later in smaller operating companies, as well as consulting roles. Mike discusses the importance of leadership, the challenges of transitioning between different company cultures, and the critical role of communication during crises such as hurricanes and the COVID-19 pandemic.
Sam: Thanks for offering to participate today, Mike. I think the best place for us to start would be for you to give us a run-through of your career to date.
Mike: Certainly, most of my career, about 20 years, was spent with Exxon and then ExxonMobil. Great opportunities and experiences with that company, in my early career I worked in process engineering, planning and operations management. I worked in six different locations and three different countries around the world. It gave me a solid grounding for ‘what good looks like’ in the refining industry in terms of operations, planning, economics, maintenance, you name it. That was a great experience for me and laid the foundation for the rest of my career.
Sam: Then you moved on to your first refinery manager role at Casper with what was then Sinclair Oil Corporation. What spurred the move from Exxon to the smaller firm?
Mike: For folks in my generation, I remember my dad’s mindset. He worked for one company, gave it his all, and retired there. That was my mindset too, at first. But as my career progressed, I realised the risk-reward of trying to achieve your career objectives is something you must consider. For me, achieving my objective of becoming a refinery manager required moving companies. It was a gut-wrenching, tough decision. Going from ExxonMobil, which was very structured, to a smaller, family-owned oil company required me to switch from being “creative within a structured environment” to “bringing structure to a creative environment”. My advice for transitioning from a larger company to a smaller one is to be prepared to make that switch.
Sam: So was there a difference in performance culture between ExxonMobil and the smaller family-owned refinery environment at Casper? Did you find that the mindset of the people was different, or were the differences purely structural? From our perspective candidates from ExxonMobil are generally very impressive, but there are often questions about how they adapt when transitioning out of that global environment.
Mike: The positives of moving to the Casper refinery were that the people there were very proud of their jobs and contributions. They felt they were an integral part of the company rather than just another number on the employee list. That pride is important, but it can also be a hindrance. Being proud can mean believing that your way of doing things is the only right way. So, coming in with my experience of what good looks like in the industry, I had to adapt those practices to fit the local culture.
It goes back to my grounding at ExxonMobil, where I had to implement changes in different countries and cultures. You need to figure out how to adapt your vision to fit the existing culture and make changes like improving efficiency, safety, or throughput.
Another aspect of working in smaller companies is that you don’t have as many support resources. At ExxonMobil, I could easily call someone for help, but in a smaller company, I often found myself having to rely on my own initiative. A piece of advice I’d give is to be mindful of that. You might be motivated and know what you want to achieve, but you might not have the resources or people who understand your vision. So, you end up doing a lot of the work yourself.
One of my learnings was that trying to do everything on my own wasn’t feasible. No one can do it all alone. You need to bring in the right people. You can either hire external experts who understand your vision or work with what you have. For me, building buy-in from my leadership team was crucial. They eventually understood the direction we were going.
Another challenge is what I call the “frozen middle,” your first-line supervisors who interact with the field staff daily. If you can’t get them on board, the change you’re trying to implement might not stick. The key to sustainable change is making sure it’s lasting. Immediate change might happen, but without a system in place to maintain it, people may revert to old ways.
Sustainability means having first-line supervisors bought in, having new management systems, and or procedures that support lasting change.
Sam: After spending about five years with Sinclair and another five with new owners HollyFrontier, you made a significant shift to a consulting role with Solomon Associates. What influenced that decision?
Mike: For me, it was about achieving my career objectives, which doesn’t always mean moving up the ladder. Sometimes it means diversifying your experience. I’ve heard people refer to career ladders as “jungle gyms” because you often need to move sideways instead of “always up.”
What I look for in people I hire is a diverse background, and I see that in myself as well. Many operations professionals have a more narrowly focused experience. While my background in operations was invaluable, I wanted to broaden my experience beyond just operations. I had experience in planning, economics, and sales, and consulting offered a way to further diversify my background.
Consulting gave me the opportunity to explore different company cultures and help implement changes. It was exciting to see various company cultures around the world and use my skills to assist them in enacting change. For me, it was about exposing myself to new experiences and leveraging my background to help others navigate and improve their cultures.
Sam: Do you have any advice for someone considering a transition into a consulting role?
Mike: Absolutely. The first thing to consider is the risk-reward balance. Moving to a consulting role isn’t just about climbing the career ladder; it’s about whether the move will help you achieve your career objectives.
One of the big adjustments for me as an operator transitioning into consulting was the need to track my hours and handle billing—things I hadn’t dealt with before. Consulting shifts you from a position of authority to that of an influencer. To effectively influence a client, you need to demonstrate your credibility. Your credibility might come from having walked in their shoes or having similar experience. Recognising and leveraging that credibility can be a major strength in helping clients enact change.
I did enjoy my time in consulting, but it’s important to understand what makes you happy and how you’re wired. For me, while I valued the diverse experiences I gained, I naturally gravitate back to what I enjoy and excel at operations. That’s why I eventually returned to refinery operations.
Sam: It sounds like you had quite a challenging year at TotalEnergies Port Arthur Refinery with COVID-19, Hurricane Laura, and Winter Storm Uri. How did you manage to engage your workforce and keep them focused during such uncertain times?
Mike: The key to handling those crises, especially Hurricane Laura, was communication. It was the first time in my career where I had to shut down a large, complex Gulf Coast refinery in less than two days. We had to do it safely, without any injuries, environmental incidents, or equipment damage. Communicating the reasons behind our actions and ensuring everyone understood the urgency was crucial.
We made sure our employees understood why we needed to shut down and get them out of harm’s way. Once they understood the purpose and importance of their tasks, they were more committed. Additionally, we considered the family aspect of our employees’ lives. While they were working, they were likely worried about their families. We ensured that their families were evacuated and had lodging, which helped ease some of their worries.
After the storm, we conducted an After-Action Review (AAR) to evaluate what went well, what needed improvement, and how we could enhance our response procedures for future events. This approach has also been beneficial at Calumet, where I’ve applied the same model to prepare for severe weather events.
With COVID-19, the challenge was managing a 24/7 operation while dealing with remote work for support functions. Communication was more difficult but having a solid business continuity plan was crucial. We had to activate multiple levels of our continuity plan to keep operations running smoothly despite the pandemic’s challenges.
Sam: Would you say that your role at Port Arthur was the most challenging of your career?
Mike: Each position in my career has presented its own set of challenges, just different ones. The role at Port Arthur was particularly challenging due to the external factors we faced extreme weather and a pandemic in the same year. It was a significant challenge, but every role has its own unique difficulties and learning experiences.
Sam: I noticed on your CV that you received a letter of appreciation from the governor of Wyoming for a statewide safety effort. Could you share the story behind that recognition?
Mike: Yes, I’m proud of that achievement. I still have the letter framed as one of my keepsakes. Wyoming is a small state with a population of around half a million people and has five operating refineries. It’s perhaps also known for its ‘cowboy’ culture, which often emphasises getting the job done at the expense of safety.
Throughout my career, I’ve learned that you don’t have to choose between production and safety; you can have both. I wanted to drive that message in Wyoming not just within the company I worked for, but across the entire industry. By fostering a common safety culture among the refineries, we were able to improve safety practices significantly.
The governor, recognising the importance of the energy industry to the state, appreciated our efforts. We worked with local community colleges to provide education and training for operating employees, which also contributed to our success. It was an honour to be recognized for these efforts.
Sam: It’s great to hear how you’ve made such a positive impact. Now, shifting to another topic, is there a piece of advice you’ve received either professionally or personally that has influenced your career decisions?
Mike: Yes, I remember when I was promoted to operations supervisor about four years into my career. I asked my boss for advice, and she told me, “Mike, management is easy. Leadership is hard.” That really struck me.
Management involves tasks like handling budgets and finances, which are relatively straightforward. Leadership, on the other hand, is about engaging people and guiding them to achieve objectives. I’ve carried that lesson with me ever since. Many people mistakenly think that leadership is just about managing numbers, but it’s much more about connecting with people and guiding them effectively.
I also learned the importance of situational leadership versus monolithic leadership. My default style is collaborative, but there are times when a command-and-control approach is necessary, especially in emergencies. Practicing situational leadership—being adaptable to different situations is something I emphasise to those I mentor.
Sam: Finally, is there anything exciting happening at Calumet that you’d like to highlight? Any new technologies, site openings, or other developments?
Mike: Yes, Calumet is in a phase of transition and growth, which is always exciting. We’ve had a strong foundation with our specialties business, and we’re now expanding our renewables sector. Both areas are cutting-edge and complement each other well.
One significant development is our recent conversion from limited partnership to a C-Corp. This change opens new opportunities for us. The blend of C-Corp vision backstopped by Calumet’s entrepreneurial spirit and family values creates a dynamic environment for future growth.