simplebooklet thumbnail

of 0
LOUISIANA
Sabine Pass plant,
the next ‘Keystone’?
p. 24
OILMAN ARCHIVES
PHOTOS FROM OIL AND GAS HISTORY— p. 6
EDITORIAL
HAYNESVILLE SHALE FAR FROM OVER— p. 14
WILDCATTERS RUSH SPINDLETOP IN
RETURN TO EAST TEXAS OIL— p. 26
FRACKING CELEBRATES ITS
65TH BIRTHDAY— p. 28
OILMAN INTERVIEW
JOHN BRINKMAN, PRESIDENT OF
IMBIBITIVE TECHNOLOGIES— p. 30
OILMAN MARKETPLACE
BUSINESS LISTINGS— p. 34
OKLAHOMA
Universities offer energy
education programs
p. 29
YOUR VOICE IN ENERGY
May / June 2014
OilmanMagazine.com
OILMAN Magazine is a free publication
for the Oil & Gas industry in Louisiana,
Oklahoma and Texas. To subscribe,
ll out the quick online form at
OilmanMagazine.com/subscribe
TEXAS
Piping treated wastewater
for production
p. 27
2
Oilman Magazine — Your Voice In Energy May / June 2014
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
3
4
Oilman Magazine — Your Voice In Energy May / June 2014
In this issue, we introduced a new segment of the magazine call “Mainstream -vs- Midstream.
This part of the magazine will be dedicated to challenging biased and misleading reporting.
The subject in this edition is on hydraulic fracturing. I was energized by the ood of feedback
we received as we developed this edition of Mainstream -vs- Midstream, which is on page 32.
The mainstream media is relentless with its attempts to hinder oil and gas exploration and
development. The pages of this magazine will always provide a voice to the industry. After all,
who would know more about it than you! As we develop future issues, all OILMAN subscribers
will have the opportunity to submit feedback and expert opinions as we set the record straight
on reports, articles, websites, movies or even TV specials produced by obscure cable channels
that will give your local weather forecast on the 8’s. (again, see page 32 for context..) We have
also added several contributors, a special thank-you to David Blackmon, Mike Thomas, Mark
Stansberry, Joseph DeWoody and Steve Burnett. We truly appreciate your insights and look
forward to reading your columns. I also want to thank our newest advertisers. Sco-Jo Land and
Environmental is the nation’s leading environmental compliance and land brokerage rm; Black
Jack Energy Services has all kinds of services and crews in Texas (check out page 25 for a list
of their services); Nitro Downhole is a complete thru-tubing service company in Texas; and Ed
Jones with McKinley Ranch Services can literally nd your dream ranch anywhere in the world.
I’m very impressed by these companies and it gives me great pleasure to advocate and promote
all you have to offer the industry.
Best,
Luke McDonald
Publisher, OILMAN Magazine
To subscribe go to OilmanMagazine.com/
Subscribe and ll out the quick online form.
Letter from the Publisher
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
5
// In This Issue
MAGAZINE
MAY — JUNE 2014
PUBLISHED BY
Oilman Magazine, LLC
116 W Main ST
Norman, OK 73069
(800) 562-2340
OilmanMagazine.com
PUBLISHER
Luke McDonald
publisher@OilmanMagazine.com
(800) 562-2340 Ex. 5
CONTRIBUTERS
Don Briggs— LOGA President
David Blackmon
Mike Thomas
Mark Stansberry
Joseph DeWoody
Steve Burnett - CrudeOilCalendars.com
Story Sloane III— (The Sloane Gallery....
Houston, Texas (281) 496-2212)
Jamie Rood — Photographic Artist
(www.JamieRood.com - see page 31)
LAYOUT & DESIGN
Eric Prater
SUBSCRIPTIONS
OilmanMagazine.com/subscribe
(Controlled, free circulation to
the oil and gas industry in Louisiana,
Oklahoma and Texas)
ADVERTISING
(800) 562-2340 Ex. 1
advertising@OilmanMagazine.com
OilmanMagazine.com/advertise
(Rates from $100 per ad)
© Copyright 2014 by Oilman Magazine, LLC. All rights
reserved. Reproduction without permission is prohibited.
All information in this publication is gathered from
sources considered to be reliable, but the accuracy of the
information cannot be guaranteed. Image credits — The
Sloane Gallery, Houston, TX; Jamie Rood, Photographic
Artist; 123rf.com.
Feature
MAINSTREAM vs MIDSTREAM
With your help, we set the record
straight on hydraulic fracturing.
Page 32
Editorial
6 OILMAN Archives (Photos from Oil & Gas History)
12 Innovative Product Spotlight (Pronto Software & IMBIBER Beads)
14 Haynesville Shale Far From Over (By Don Briggs)
16 Maintaining High Security and Pipeline Peace of Mind (By Mike Thomas)
18 King Coal is Dying; Prince Oil & Gas is Next (David Blackmon)
20 LIGHTS, CAMERA, ACTION! (By Mark Stansberry)
22 Investing in Mineral Rights (By Joseph DeWoody)
30 OILMAN Interview: John Brinkman, President of Imbibitive Technologies
31 Jamie Rood, Photographic Artist: A Day on the Rig - Viking
34 OILMAN Marketplace (Business Listings)
36 Oil and Gas Jobs
37 OILMAN Cartoon (By Steve Burnett - CrudeOilCalendars.com)
News
24 Louisiana
Sabine Pass natural gas plant, the next ‘Keystone’?
MarathonproposesLa.reneryexpansion
Halcon’s Wilson Says Tuscaloosa Shale Among Last Big Shale Finds
25 Texas
Smitherman: Texas could break oil record by 2020
U.S. CO2 Emissions at Lowest Level in 20 Years
Texas crude production hits highest level since 1980
Company will pipe “treated wastewater” for oil and gas production
28 National News
Oil and gas industry generates thousands of jobs in California
Fracking celebrates its 65th birthday
Marcellus Shale Takes the Lead in Natural Gas News
International Opportunities in Natural Gas
29 Oklahoma
Oklahoma’s not Alone in Denying Link of Quakes to Fracking
Baker Hughes opens the door to “secret sauce”
Oklahoma universities offer energy education
RETWEETS
OILMAN ARCHIVE: Roughneck holding a
1920’s era drill bit
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
@OilmanMagazine
6
PHOTO BY STORY SLOANE III
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
The Pierce Junction Oil Field was just south of
Houston Texas and produced some fantastic
wells. These old wooden derricks are long gone
but the location should be familiar to most Texas
football fans. The old Houston Astrodome and
the new Reliant stadium were built on top of the
Pierce Junction Oil Field.
Photos by Story Sloane III — The Sloane Gallery, Houston, Texas. These images and more are for sale and can be
found by visiting www.sloanegallery.com or calling 281-496-2212.
1 of 3
Pride
Where Business Lives Well
281-719-6100 • www.TheWoodlands-Commercial.com
NOW LEASING TWO HUGHES LANDING
CLASS A OFFICE BUILDING ON LAKE WOODLANDS
8 Stories, 197,719 sq. ft.
27 miles north of downtown Houston, close to Bush Intercontinental Airport
Extraordinary quality of life • Highly educated workforce
World-class legal and nancial services • Walking distance to planned restaurants,
retail, hotel, Whole Foods Market
®
, tness center, and multi-family residences
“When we decided to
relocate our headquarters,
The Woodlands was
our top choice.”
Our executive team established a set criteria when we
decided to relocate our corporate headquarters from
the Kansas City area. Houston met our criteria and
The Woodlands exceeded our expectations.
Rene Robichaud
President and CEO, Layne Christensen Company
One Hughes Landing, The Woodlands
Oilman Magazine — Your Voice In Energy May / June 2014
88
PHOTO BY STORY SLOANE III
Harvey La. Barge getting ready to
drive a few pilings – 1950’s
- - - - - - - - - - - - - - - - - - - - - - - - - -
If you hunt, sh or drill for oil in the
state of Louisiana you probably are
going to do it in or close to a body of
water. Vast saltwater lakes and shallow
water marshes were no obstacle when
it came to drilling and producing oil.
These 1930’s & 1950’s era photographs
illustrate the way of life for the Louisiana
oilman looking for riches along the Gulf
Coast. Narrow channels that crisscrossed
saltwater marshes were the roads traveled
by tugboats, crew boats and barges
transporting men and materials to the
wet drilling site. Drilling platforms
constructed on timber pilings introduced
in the 1930’s were still being used in the
1950’s in 10 -15 feet of water
2 of 3
Photos by Story Sloane III — The Sloane Gallery, Houston, Texas. These images and more are for sale and can be
found by visiting www.sloanegallery.com or calling 281-496-2212.
Pride
9
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
9
Oilman Magazine — Your Voice In Energy May / June 2014
10
PHOTO BY STORY SLOANE III
Driller Jack Clark (white shirt) and Crew east Texas 1930’s
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Long before the gas ows from the pump to the car the process of drilling for it has to start. Men made of steel
willing to tackle a dangerous job worked rigs all over Texas looking to hit that gusher. Very little regard to safety was
considered in the drilling effort. These images represent a slice of the roughneck’s life on the early rigs of Texas….
Sometimes it took more than a college degree to get the job done.
3 of 3
Photos by Story Sloane III — The Sloane Gallery, Houston, Texas. These images and more are for sale and can be
found by visiting www.sloanegallery.com or calling 281-496-2212.
See this photo and
the entire collection at
OilmanMagazine.com
10
Pride
12
Oilman Magazine — Your Voice In Energy May / June 2014
Pronto Soware has a global, next generaon
ERP soluon that provides a single source
of informaon across the enterprise and
automates processes that previously had to
be performed manually or semi-manually.
It makes businesses more ecient and
helps prepare for future. Pronto’s agship
enterprise system, Pronto Xi, is a fully
integrated soluon that can be tailored to
suit the unique needs of the oil and gas eld
services industry. Pronto Xi oers exible,
scalable performance and a strong base from
which to achieve an accelerated return on
investment. While its true that the oil and
gas eld services industry is experiencing
signicant expansion and challenges,
nding ways to manage health, safety
and environmental condions; intelligent
forecasng and visibility; compliance and
regulatory complexity
and accounng
and nancial issues
requires the best
available end-to-end
ERP soluon. The
reward of correctly
selecng and using a
best-in-class ERP will
quickly manifest by avoiding just one day of
downme. Pronto Soware’s Pronto Xi is just
such a soluon—one which enables oil and
gas eld service companies to have greater
control, increased growth and protability
and reduced costs and risks. Implemenng a
new or replacement ERP system usually starts
with a need to address mulple dicules:
• Inventory is tough to determine
• Downme due to improperly maintained
equipment
• Diculty in determining the protability of
each job
• Inability to spot trends in a mely fashion
• Customer sasfacon is faltering
• Invoices oen include incorrect or missing
line items
• Customers are slow to pay
• A disconnect between the eld sta,
warehouse and back oce sta
• Lack of adherence to safety checklists
• Forecasts are based more on guesswork
than solid gures
Our company, Imbibive Technologies is a specialty
sorbent manufacturer. Our agship product is
IMBIBER BEADS® which is the only “oil-sensive”
super-absorbent polymer (SAP) currently available
anywhere in the world. The performance of IMBIBER
BEADS® products is superior and fundamentally
dierent from all other hydrocarbon-sorbing
technologies, in accordance with ASTM Performance
Standard denions.
IMBIBER BEADS® are “engineered” to absorb/imbibe
a broad range of organic liquids including gasoline,
engine oil, crude oil, diesel, BTEX type solvents and
jet fuels to name a few.
IMBIBER BEADS® has been selected as the best
technology for spill recovery of the 162 highest
volume Hazardous & Noxious Substances (HNS)
imported into Japan resulng in a strategic, naonal
deployment at 23 major seaports across the
country. This was a 7 year study in which IMBIBER
BEADS® we found to be the only truly eecve
technology at recovering the chemicals from water
spills.
Performance facts:
• IMBIBER BEADS® completely capture & contain the
liquid phase of spill removing the risk of secondary
contaminaon of personnel or environment.
• Captured liquid cannot be re-released by
any means once contained including gravity,
compression/squeezing or cung product in half.
• Each IMBIBER BEADS® is capable of absorbing up to
27x’s its own volume making it the industry leader in
capture quanty.
• IMBIBER BEADS® signicantly reduce
concentraons of vapour in the air (up to 600%), to
below Lower Explosive Limit (LEL) minimizing risk of
re, explosion or inhalaon of toxic fumes.
• Completely unaected by water (hydrophobic) such
that water can actually be used as the propellant to
dispense the product.
• Compable with a wide range of hydrocarbons/
organic chemicals.
Link to YouTube video product demos at
imbiberbeads.com.
Superior performance.
Unprecedented quality.
Advanced composite technology.
Learn more www.exelisinc.com
Aerospace grade composite materials, premium elements,
patented segmenting-slip design and melt-kit technology,
ensures the Bear Claw
®
millable bridge and frac plugs
deliver superior performance every time.
Bear Claw®. When performance counts.
Exelis is a registered trademark and “The Power of Ingenuity” is a trademark, both of Exelis Inc.
Copyright © 2014 Exelis Inc.
Exelis_ad_12.indd 1 4/23/14 6:25 PM
// Product Spotlight
Superior performance.
Unprecedented quality.
Advanced composite technology.
Learn more www.exelisinc.com
Aerospace grade composite materials, premium elements,
patented segmenting-slip design and melt-kit technology,
ensures the Bear Claw
®
millable bridge and frac plugs
deliver superior performance every time.
Bear Claw®. When performance counts.
Exelis is a registered trademark and “The Power of Ingenuity” is a trademark, both of Exelis Inc.
Copyright © 2014 Exelis Inc.
Exelis_ad_12.indd 1 4/23/14 6:25 PM
Oilman Magazine — Your Voice In Energy May / June 2014
14
Common thought is that the Haynesville Shale
natural gas play is over. Pack up your trucks
and move to another shale play. False. What the
media portrays, might not be the correct facts.
Indeed, the Haynesville did see a mass exodus
starting in early 2012 due to natural gas prices
dropping to an historic low of $1.81. What
caused this drop in price? What can help the
prices rebound?
As a reminder, the Haynesville Shale saw a
rig count rise to 139 in 2010-2011. This was a
direct result of having an abundant supply of
dry natural gas in the ground, $12-$13 natural
gas prices, and developing technologies to
retrieve these resources. As the exploration
and production companies moved into the
Haynesville Shale region, the natural gas market
became inundated with supply. As the demand
was much lower at the time to utilize the
supply, the market experienced a great drop in
price with the rig count following suit.
However, the Haynesville Shale play is far
from over. Reports say that roughly 30% of
the resources have been recovered from this
particular play. While over 2,500 wells have
been drilled with over 2,200 of those producing
dry natural gas, the price must continue to
tick upward in order to see rigs return to the
Northwest Louisiana area. Since 2012, the
market has now moved in a positive direction,
as natural gas prices are now well over $4.00
and the Haynesville rig count is hovering in the
20’s.
Three functions of the market will bring
natural gas prices back up to a stable place.
First, the current manufacturing renaissance
in Louisiana will be a needle mover for the
natural gas industry. The petro-chemical
industry operates on natural gas as a baker
does with our. Over the next ve years, the
manufacturing industry will be demanding
nearly four times the amount of natural gas a
day that the largest producer in the Haynesville
Shale was extracting a day in 2011.
The second market driver of natural gas usage
is power generation. In July of 2012, for the
rst time in United States history, natural gas
surpassed coal as the chief power generator.
Over the next several years, many older coal
and nuclear plants are being taken off line and
replaced by natural gas. The third contributor
to natural gas demand is the exporting of
liqueed natural gas (LNG) around the globe
by companies such as Cheniere Energy from
their facility in Cameron Parish. Cheniere will
have the capability to ship LNG by tanker to
the Asian and European markets where natural
gas trades at nearly four times the price of the
United States market. It was just six short years
ago that the United States had a shortage of
natural gas. Nearly 50 import facilities were
being constructed to bring in natural gas to
the United States, whereas today, over a dozen
facilities are in the federal approval process to
construct additional LNG export locations.
While weather might drive up the price of
natural gas, this is merely a temporary climb.
Sustainable natural gas prices higher than $5
will bring back that encouraging site of rigs
towering across our rural and urban horizons in
Northwest Louisiana.
Haynesville Shale Far From Over
By Don Briggs — President Louisiana Oil and Gas Association
DON BRIGGS - LOGA PRESIDENT
- - - - - - - - - - - - - - - - - - - - - - - - - -
Don Briggs is the President of the Louisiana
Oil and Gas Association. The Louisiana Oil
& Gas Association (known before 2006 as
LIOGA) was organized in 1992 to represent the
Independent and service sectors of the oil and
gas industry in Louisiana; this representation
includesexploration,productionandoileld
services. Our primary goal is to provide our
industry with a working environment that
will enhance the industry. LOGA services
its membership by creating incentives for
Louisiana’s oil & gas industry, warding off
tax increases, changing existing burdensome
regulations, and educating the public and
government of the importance of the oil and
gas industry in the state of Louisiana.
The Haynesville Shale play is
far from over. Reports say that
roughly 30% of the resources
have been recovered from this
particular play. While over
2,500 wells have been drilled
with over 2,200 of those
producing dry natural gas...
15
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
Buoys
Mooring Systems
Navigational Aids
LED Technologies
Fire/Gas Detection
Emergency Lighting
TECHNOLOGY
Maurice, LA Amelia, LA Houston, TX
WetTechEnergy.com 337.893.9992
Wet Tech Energy maintains one of the largest inventories of mooring systems, buoys
and navigational aids that meet and exceed stringent regulations and withstand the
harshest environments worldwide. With a fully mobilized offshore vessel outtted
for buoy and mooring installations, we are always prepared to head offshore for the
immediate needs for our clients.
The technology to set your operations apart from the rest. The creative, cost-effective
solutions that smart business require. The service to maximize your results.
Wet Tech Energy helps your business, whether near or far,
stay ahead and stay aoat.
Oilman Magazine — Your Voice In Energy May / June 2014
16
Pipeline security requires a combination of
assorted technology systems to maintain
control during pipeline initiation, installation,
and operation. Sociotechnical systems
inuences organizational results through rst
developing tacit knowledge on underlying
factors assorted sociotechnical relationships
offer an organization (Haavik, 2011).
Technology systems (TS) divided by four
sociotechnical organizational factors will lead
management to control waggish colloquies and
ll inspection gaps.
The four factors are management,
procedural, technical, and cultural. Each
factor will coordinate management and
work approaches synonymously to detect
organizational reliability. A successfully
controlled technostructure allows the pipeline
organization an opportunity to focus on
each organizational factor in organizational
cooperation across a changing pipeline
process (Haavik, 2011). Integrated operations
or IO elaborates modern characteristics of
management styles while addressing iterative
organizational components. IO’s and TS’s
intertwined begin to advance organizational
models of innovation to increase operating
functions throughout the pipeline spread. The
steps to support and encourage sociotechnical
approaches through a combination of a few
methods are outlined next. One method
is accident models to treat the pipeline
contractor as one entity and not divide into
parts. Management has the option to have
a distributed pattern of interaction (Walker,
Stanton, Salmon, & Jenkins, 2008). The pattern
of interaction Walker et al. (2008) reviewed
sociotechnical systems as a classic concept to
explain various management styles and diffuse
innovation through patterns of interaction.
The classic pattern of interaction consists of
allocation of decision rights and distribution
of information to each section of the pipeline.
The allocation of decision rights is innocuous
to the organizations management style although
contains peer to peer hierarchies and tight
control of information. Innovation takes total
control of organizational information and the
allocation of management decisions to create a
ducially pattern of sociotechnical support.
Technology systems are the best choice to
replace old pipeline habits and protect life
and preserve property. Specializing in TS’s
is the ideal option for pipeline organizations
to monitor tanks, piping, compressor
stations, pressure vessels, and natural gas
facilities. A pure justice approach of the facts
about how oil and natural gas pipelines are
monitored is needed to prevent a pipeline
contextual discrimination toward the pipeline
infrastructure. Solving inspection challenges
will provide pipeline integrity solutions through
implementing the right TS.
References
1. Haavik, T. (2011). On Components and Relations
in Sociotechnical Systems. Journal of Contingencies and
Crisis Management, 19(2), 99-109. Doi: 10.1111/
j.1468-5973.2011.00638. x.
2. Walker, G., Stanton, N., Salmon, P., and
Jenkins, D. (2008). A Review of Sociotechnical
Systems Theory: A Classic Concept for new
command and control paradigms. Theoretical
Issues in Ergonomics Science, 9(6), 479-499. doi:
10.1080/1463920701635470.
Maintaining High Security and Pipeline Peace of Mind
By Mike Thomas
MIKE THOMAS
- - - - - - - - - - - - - - - - - - - - - - - - - -
Mike Thomas is a Doctor of Management
candidate at The University of Phoenix in
Organizational Leadership with over 16 years
of pipelining experience. He is currently a
pipeline inspector in the northeast region
of Oklahoma. His expertise encompasses
pipeline safety, integrity, and inspection for
assorted pipeline clients.
One method is accident models
to treat the pipeline contractor
as one entity and not divide
into parts. Management has
the option to have a distributed
pattern of interaction...
Oilman Magazine — Your Voice In Energy May / June 2014
18
Several years ago, during a period of time
when some in the oil and natural gas industry
were engaging various environmentalist
organizations in discussions on how to
promote and better regulate natural gas as a
fuel for power generation, a very wise man
took me aside and said, “Don’t kid yourself.
These groups are focused on killing coal right
now, but once they’re done with them, they’re
coming after us.
Now that the environmentalist lobby, working
in concert with the Environmental Protection
Agency – which is largely populated by folks
who came out of these same environmental
organizations – has almost succeeded in killing
the nations coal industry for all intents and
purposes, it is obvious that truer words were
never spoken. Anyone paying attention to what
is happening today in the U.S. energy space
can clearly see that the focus of the radical
environmental movement is indeed turning
very quickly to efforts to do the same with oil
and gas.
The nal two-plus years of the Obama
Administration will be a very precarious time
for this industry, as the EPA ramps up its
efforts to overlay as many cumbersome new
regulations as it possibly can before 2017.
That’s what the Administration’s stepped-up
effort to regulate methane emissions at various
steps throughout the natural gas supply chain is
all about, it’s what the EPAs proposed “Waters
WAT +1.21% of the United States” regulatory
regime is all about, and it’s what efforts by the
EPA and the Bureau of Land Management
(BLM) related to regulation of hydraulic
fracturing and well completions are all about.
It’s what ballot initiatives to ban hydraulic
fracturing in Colorado, Texas, California and
Ohio are all about. It’s what fake documentaries
like Gasland and Gasland Too are all about
Add into all of that the fact that the U.S. Fish
& Wildlife Service must make listing decisions
on hundreds of additional plants and animals
nominated for listing under the Endangered
Species Act over the next next two years
in response to the “Sue and Settle” racket
engaged in by radical groups like the Center
for Biological Diversity, and you clearly have
a multiple-front assault on one of the nation’s
few remaining great industries.
The irony of this nal two-year push by the
Administration against oil and natural gas is
that this is the industry that has literally carried
the Obama economy on its gargantuan back
and kept it aoat throughout the entirety of
the President’s time in ofce. Were it not for
the Shale Revolutions creation of millions of
jobs and hundreds of billions of dollars in
annual economic impact, the nations economy
would almost have certainly been mired in an
unending deep recession for the last six years.
Whatever golden eggs this Administration
can brag about have been laid by the oil and
gas industry’s proverbial goose. And it has all
taken place on private and state lands, since the
Administration has done its best to strangle
new oil and gas development on federal lands.
Even more ironic is the fact that the use of
more natural gas in the power generation
sector has enabled the Administration to brag
about the fact that U.S. carbon emissions
have fallen to their lowest levels in more than
20 years under the President’s watch, a fact
the environmentalist lobby tends to forget
whenever the truth is inconvenient for them
The efforts by the radical environmental
community and the Administration continue to
be predictably supported by the usual suspects
King Coal is Dying; Prince Oil & Gas is Next
By David Blackmon
The nal two-plus years of the Obama Administration will be a very precarious time
for this industry, as the EPA ramps up its efforts to overlay as many cumbersome
new regulations as it possibly can before 2017.
19
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
in academia and a compliant news media.
Most recently we’ve seen yet another report
assaulting natural gas from Anthony Ingraffea
and Robert Howarth at Cornell University,
at least the third such highly-suspect report
these fellows have produced over the last few
years. Like their previous reports, this one is
easily debunked, funded by the same groups
and foundations that fund the anti-fracking
movement, and was completely dismantled here
by Katie Brown at EnergyInDepth.
But these fellows are quite clever: while they
even admit some of the shortcomings of
their “research” in the bowels of their own
report, they know they can rely on sympathetic
reporters and editors at many of the nation’s
media outlets to publish uncritical stories
on the report which contain only the things
they want to highlight along with sensational
headlines. They also know that the headlines
are all most people ever read, and that even
reports that contain balancing information will
go largely unnoticed. The whole point is to
create a sense of alarm among the populace,
and to demonize natural gas as an energy
source, a threat to the air, the water, and the
public health. Exactly the strategy that has
crippled the nations coal industry.
It’s a very effective strategy, and one the oil
and natural gas industry ignores at its own
peril. A couple of years back, the industry put
out a study that showed that oil and natural
gas supports 9.2 million jobs in this country,
a number that has only grown signicantly
since then. Everyone reading this needs to
understand that the radical environmentalist
lobby and regulatory community will not be
satised until each and every one one of those
9.2 million workers are unemployed.
That’s the goal – the”King” is almost dead, and
they’re coming for you next. Don’t kid yourself
otherwise.
David Blackmon is a managing director of the FTI
Strategic Communications practice and is based in
Houston. Throughout his 34 year career in the oil and
gas industry, David has led industry-wide efforts to
develop and implement strategies to address key issues at
the local, state and federal level. David has more than
15 years experience working legislative and regulatory
issues in Washington, DC, Texas and other states. He
is a recognized subject matter expert on a variety of oil
and natural gas issues, and regularly offers testimony at
legislative hearings. David is currently a contributing
columnist for Forbes.com, focusing on public policy
issues affecting the oil and gas industry. He also writes
regular commentary for World Oil Magazine.
It’s a very effective strategy,
and one the oil and natural
gas industry ignores at its
own peril. A couple of years
back, the industry put out
a study that showed that oil
and natural gas supports 9.2
million jobs in this country, a
number that has only grown
signicantly since then.
Oilman Magazine — Your Voice In Energy May / June 2014
20
In 2001, I teamed up with Academy
Award winning producer Gray
Frederickson (Godfather II) to begin a
lm production company. Since that
time, I have heard from several in the
movie industry who believe that the oil
and gas industry should not be respected.
Several in Hollywood believe that the oil
and gas industry is only for the greedy
and that it is not interested in the welfare
of others and of the environment.
Having been in the oil and gas industry
for thirty-seven years, I have advocated
that the message be clear. I continue to
point out that the movie industry is a
major user of energy and therefore, needs the
oil and gas industry. Energy is needed from the
beginning to the end of production as well as
into the marketing and distribution of the lms.
The movie industry needs transportation and
the use of power generation. A lm project
often needs: transportation to and from the
sets, the use of autos, trucks and other vehicles
including planes and helicopters, fuel for
traveling and living for the crew, transportation
of animals, air transportation, taxis/limos,
phones, rail transportation, caterers, and
products made from petroleum including
wardrobes, lm, air conditioners, carpet, combs
and brushes, cameras, and many other items
that I show on pages 157 to 159 of my book
America Needs America’s Energy”.
Electricity is needed for lighting, equipment,
music, trailers for the actors and others,
optical effects, sound, set construction, special
effects, generators, computers, photography,
set operations, sound stage, ac/heat, washing/
drying of clothes, dishwashing, and other.
There is even a Gaffer assigned to the specic
movie project, (a gaffer heads up the electric
department) and electricians are needed.
The sound for the movie needs a mixer, boom
operator and microphones, to mention a few
of the items needed.
Millions upon millions of dollars are expended
for energy to make and distribute the lms
for our enjoyment. Hollywood has been
successful, in great part, due to the energy
industry.
We, as consumers, can view the lms on
DVDs, at the theatre, at our home with the
use of energy. The movie industry wants for
everyone to strive for energy efciency and
environmental preservation. The oil and gas
industry wants the same.
I tell those outside of the oil and gas industry:
“think about the use of energy and the
importance of the oil and gas industry next
time you watch a movie. Know that there
are those in the oil and gas industry who
are working 24/7 in all kinds of weather
supporting the movie industry and providing us
all a wonderful lifestyle”.
There would be no strong movie industry
without a very strong oil and gas industry.
There would be no strong movie industry
without a strong consumer base. It is
time we come together: The US has
the immediate challenge of striving for
energy independence. It is extremely
important that the US be in a strong
position of securing energy reserves
within its own boundaries. Therefore,
we need a plan. The US needs energy
security. America Needs America’s
Energy!
Together we can create the
People’s Energy Plan! Go to www.
peoplesenergyplan.com to join the effort.
Facebook: America Needs America’s
Energy with over 10,000 supporters plus
and growing. -- America Needs America’s
Energy: Creating Together the People’s Energy
Plan!
LIGHTS, CAMERA, ACTION!
By Mark Stansberry
MARK STANSBERRY
- - - - - - - - - - - - - - - - - - - - - - - - - -
Mark Stansberry is the Chairman of The GTD
Group and award winning author, columnist
and radio talk show host. He is the author of
the book, “America Needs America’s Energy:
Creating Together the People’s Energy Plan”
www.peoplesenergyplan.com
www.thegtdgroup.com
A lm project often needs: transportation to and from the sets,
the use of autos, trucks and other vehicles including planes and
helicopters, fuel for traveling and living for the crew, transportation
of animals, air transportation, taxis/limos, phones...
21
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
Oilman Magazine — Your Voice In Energy May / June 2014
22
The old adage across the plains of West
Texas is to “Never Sell Your Mineral
Rights!” And for good reason, the
ownership of mineral rights provides
families with a generational wealth
preservation tool that surpasses many
investment opportunities in the current
marketplace.
Mineral ownership is a perpetual
ownership of the real estate under the
surface of the earth. Often severed from
the surface, mineral rights are held like
any other real estate investment. The
major benet of mineral rights is there
ability to produce royalties through oil
and gas lease bonuses and production.
A royalty is cost-free share of the production
revenue from an oil and gas well or lease.
Where the owner of the mineral rights receives
a share of the production revenue without
having to pay any of the exploration or
operating costs of the project.
Investing in mineral rights and royalties can
provide wealthy families, trusts and family
ofces valuable exposure to the oil and gas
industry without the risks associated with
exploration and production. The income from
oil and gas royalties currently also enjoys a
depletion allowance under the tax code. The
combination of the tax structure and the
“mailbox money” aspect of royalties makes
them an attractive investment for many
individuals.
There are multiple approaches to investing in
royalties, certain exchange traded funds (ETFs)
and master limited partnership (MLPs) provide
investors with some exposure to the royalty
market. Another route, is direct investment
in mineral rights and royalties through a
private limited partnership. These can provide
individuals direct “access” to the ownership of
the royalties and the most potential to harness
the upside and generational wealth protection
and preservation provided by them.
Among the many benets, royalty ownership
can also provide a hedge against ination. With
governments around the world printing money
to feed their appetites of cheap cash, there
are many that believe the inevitable result will
be higher ination. Royalties, and oil and gas
generally, have traditionally been a good hedge
against ination.
In fact, many consequences of governmental
and federal bank decisions including higher
taxes, monetary easing, and raising the interest
rate, all provide avenues to increase the value
of oil and gas and in turn, the cash ow to
royalty owners.
The United States is in the middle of an
energy revolution. The vast amounts, of once
un-producible, oil and gas are being discovered
and produced at a rate and amount not seen
in many decades. Thanks to technological
advancements in horizontal drilling and
hydraulic fracturing, American oil and gas
producers are able to nd and develop oil and
gas in parts of the United States that
have had very little oil and natural gas
production prior.
There has been a vast amount of wealth
created, and there will be much more
created by the ownership of royalties
in the areas that are a part of the shale
drilling “bonanza”. There are 1.44
billion acres of privately owned mineral
rights in the United States. According to
Blackbeard Data Services, in Texas alone,
the proved producing reserve value of
royalties is approximately $35 billion.
Nation-wide Blackbeard estimates the
yearly transactional value of oil and gas
royalties to total $500 million. These amounts
are growing daily and present a valuable
investment opportunity to individuals seeking
asset diversication and wealth creation and
preservation.
Investing in Mineral Rights
By Joseph P. DeWoody
JESEPH P. DeWOODY
- - - - - - - - - - - - - - - - - - - - - - - - - -
Joseph P. DeWoody (@jpdewoody) is the
president of Clear Fork Royalty, an oil and
gas royalty investment company located in
Fort Worth, Texas. Clear Fork Royalty works
with accredited investors, trusts and family
ofcestoprovideportfolioaccesstooiland
gas mineral rights and royalties to hold for
long term investment through various direct
investment vehicles. Joseph was selected by
Oil and Gas Investor Magazine as a winner
of the Top 20 under 40 Award, and by TIPRO
and Texas Monthly Magazine as a Texas
Top Producer. Joseph is a member of the
Young Presidents’ Organization (YPO). He
was appointed by Texas Governor Rick Perry
to a six year term on the Texas Board of
Professional Geoscientists. He serves on the
Board of Directors for the National Stripper
Well Association and the Texas Alliance of
Energy Producers.
Among the many benets, royalty ownership can also provide a
hedge against ination. With governments around the world printing
money to feed their appetites of cheap cash, there are many that
believe the inevitable result will be higher ination.
23
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
Professionally protecting
assets and lives
PROTECTING YOUR ASSETS WITH AN
ENVIRONMENTALLY FRIENDLY SUPPRESSION AGENT.
Novec 1230 Fire Suppression System Highlights
Highly effective fire suppression agent.
Harmless to the environment, with Zero Ozone Depletion
and only a 5 day atmospheric life.
Ideal for environments such as computer rooms, control rooms and
data rooms where uninterrupted operation of equipment is critical.
Novec 1230 will not damage sensitive electronic files or other
valuable documents.
Engineered to be “Space Saving.
Novec 1230 will not leave a residue.
Novec 1230 has an extremely large safety margin when discharged.
Contact us for information on your next fire suppression project.
7701 Johnston Street Lafayette, LA 70596
337-993-9377
|
337-216-972 fax
|
www.teamfss.com
FSSLA (Fire & Safety Specialists Latin America)
Calle 38 No. 304, Col Miami
|
Cd del Carmen, Campeche. México.
Tel y Fax. 01(938) 3844239
Start Securing your work environment by contacting Fire & Safety Specialists at WWW. TEAMFSS.COM
Oilman Magazine — Your Voice In Energy May / June 2014
24
CNN Money - The Advocate - Bloomberg
Louisiana News at a glance...
Sabine Pass natural gas plant, the next ‘Keystone’
At the mouth of the Gulf of Mexico along the Texas-Louisiana border,
Cheniere Energy could be just weeks away from breaking ground on the
rst natural gas exporting facility ever built in the lower 48 states.
It’s also where a new ght with echoes of the Keystone pipeline is
building, pitting economic
development against
environmental protection.
To Cheniere (LNG)
and its supporters,
the 500-plus acre, $10
billion plant represents a
boon for the American
economy. Known as
Sabine Pass, they say the
facility will support tens
of thousands of jobs,
raise billions in export
revenue, and help put the
nation on track to be an energy-exporting powerhouse. But to critics it
will greatly expand the use of hydraulic fracturing. They also say that far
from creating jobs, the plant may actually cost jobs and raise the price of
natural gas in America. Opponents of the project want the government
to take fracking into account when considering issuing permits -- both
for the Sabine Pass facility and seven others like it that have applications
in with federal authorities. If all eight plants were authorized, the nation
could wind up exporting one-fth its current natural gas output. As the
country ramps up its energy production ghts like these are bound to
become more common. Thanks in part to new drilling technology and
the expanded use of fracking, the United States produces 30% more
natural gas and nearly that much more oil than it did in 2005. It’s also the
main reason why companies like Cheniere want to export it. In Asia and
Europe natural gas commands up to ve times the U.S. price. The gas
can be liqueed, loaded onto a tanker here and sent anywhere around the
world. Besides Cheniere, which is just the processing rm, any of the Big
Oil companies like Exxon Mobil, BP, and Royal Dutch Shell that produce
gas in the Untied States, plus a host of smaller companies like Chesapeake
or Devon, would in all likelihood make a killing. Cheniere believes its
facility at Sabine Pass, which would be built alongside an existing, little
used natural gas import facility, would support 30,000 to 50,000 jobs a
year. While a relatively small amount of people would work at the actual
plant, Cheniere’s number also includes all the drillers, restaurant workers,
hotel employees and equipment makers that would supply the gas industry.
Plus, the value of the gas exported each year would total nearly $7 billion
-- a small dent in the country’s trade decit, but a dent nonetheless. The
Energy Department has already granted Sabine Pass a permit, although it
has promised to consider other impacts on the economy and environment
before approving any of the remaining seven proposals. The Federal
Energy Regulatory Commission is expected to vote on the matter later this
month, and approval seems likely.
Frustrated, the environmental groups have taken their case all the way to
the President, ling letters with the Environmental Protection Agency
and the White House Council on Environmental Quality asking them
to intervene. EPA said it is reviewing the request. The White House
didn’t respond to a request for comment. For now, it appears Cheniere
will get its way. “We don’t believe [the] opposition is loud enough yet
to change the current course,” Whitney Stanco, an energy analyst at the
Washington Research Group, wrote in a recent note. But she did note
that environmentalists were successful in a last-minute drive to block the
Keystone pipeline. “We’ll be watching the level of opposition closely,” she
said.
Marathon proposes La. renery expansion
Marathon Petroleum Corp. said it is taking
the next step toward a potential $2.2 billion
to $2.5 billion upgrade to the company’s
Garyville renery and expects to make a nal
decision on the project by early 2015. The St.
John the Baptist Parish project would create
65 new direct jobs, with an average annual
salary of $115,000 per year, plus benets.
The company plans to le permit applications
for the potential project with Louisiana’s
Department of Environmental Quality at the
end of April, having completed feasibility
studies on the project. “If the company
decides to move forward, it is anticipated that
the construction would begin mid-2015 and
be completed in 2018,” said Rich Bedell, the
company’s senior vice president for rening
“In addition to the potential renery jobs,
we would estimate that approximately 3,000
construction jobs will be created during the
construction phase.” Marathon Petroleum
operates a 522,000-barrel-per-day renery at the
site, the largest in Louisiana and third-largest
in the U.S. The renery employs 800 Marathon
Petroleum employees and 650 contract
workers. The proposed project would enable
the company to convert a byproduct of the
rening process into about 1.2 million gallons
per day of ultra low-sulfur diesel at Garyville.
The project would also include hydrotreating,
hydrocracking and desulfurization equipment
installations, along with buildings, tanks,
cooling towers, and rail and electrical facilities.
“Never before in our state’s history have we
seen such extraordinary gains in petroleum
rening technology complemented by favorable
oil and gas economics and the most rapidly
improving business climate in America,” Gov.
Bobby Jindal said in a statement. The Louisiana
economic development department estimates
the project would result in an additional 304
indirect jobs. Among those would be 35 new
contractor employees at the renery. Should
Marathon Petroleum undertake the project,
LED would offer the company a performance-
based Modernization Tax Credit of $3 million,
along with the job training services.
Halcons Wilson Says Tuscaloosa Shale Among
Last Big Shale Finds. Floyd Wilson, the
wildcatter who helped discover the fastest-
growing U.S. oil eld, says a prospect called
the Tuscaloosa Marine Shale is among the
last great elds that may emerge in the U.S.
energy renaissance.The chairman and chief
executive ofcer of Houston-based Halcon
Resources Corp. said that his company in the
last six months has acquired 250,000 acres in
the eld that spans from Texas to Mississippi.
The company expects wells there to produce
between 500,000 to 1 million barrels of oil
each. Wilsons previous company, Petrohawk
Energy Corp., helped discover and develop
Texas’s Eagle Ford formation, where oil output
rose to 1.2 million barrels a day last year from
about 50,000 in 2007. The Tuscaloosa prospect
is “maybe one of the last remaining large
footprint oil shale plays in the U.S.,” Wilson
said. “It’s an important oil resource play. The
puzzle is how to get it out economically.”
The company began drilling its rst well less
than two weeks ago in the eld, where there
may be as many as 2 million acres of drilling
opportunities, Wilson said. The decision about
whether to seek a partner in a potential joint
venture will depend on how much risk the
company sees in developing the eld, he said.
Recent well results have made the Tuscaloosa’s
prospects look better, he said. The lower the
risk, the less likely Halcon will take on a partner,
Wilson said.
25
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
Smitherman: Texas could break oil record by 2020.
Texas Railroad Commission Chairman Barry Smitherman said
Friday the shale revolution could drive the state’s oil production
to record levels before the end of the decade. Oil production in
Texas is now close to 2 million barrels a day. And Smitherman,
speaking at the IHS CERAweek energy conference in Houston,
said the state could be at 3 million barrels by 2017 and 4 million
barrels by 2020. In 1972 Texas produced 3.5 million barrels a day,
according to Railroad Commission data. “It could easily go to 5
million by 2023,” Smitherman said. “I don’t know where the end
is because it’s a technological revolution.” Hydraulic fracturing
and horizontal drilling technologies have allowed oil companies
to open up huge deposits in the Eagle Ford formation south of
San Antonio. Last year that eld accounted for close to 700,000
barrels of Texas’ daily production. And with the Wolfcamp,
Spraberry and Cline elds in West Texas still developing, many
within the industry think the Permian Basin formation there could
soon surpass the Eagle Ford. But hanging over the oil boom’s
future are analysts’ predictions that oil prices will be down close to
$80 a barrel by the end of 2015. U.S. crude was trading for more
than $102 a barrel mid-day Friday. And U.S. shale oil will only
become more difcult to extract as drilling progresses, said Raoul
LeBlanc, managing director for IHS. “The future’s not guaranteed.
If you actually focus on the asset itself it’s important to realize
what we as an industry have done. We’ve moved down from the
cheap and easy resources,” he said. “Right now, we’re tending
to focus on the best areas. These plays are not innite. They’re
not magic.” As a
railroad commissioner,
Smitherman is tasked
with both regulating
and promoting the
state’s oil and gas
industry. And his
point Friday was the
Permian presents a
special opportunity
because of the
long drilling history
there, which brings abundant geological data and infrastructure.
The scarcity of water in West Texas has many concerned that
increased drilling would further strain aquifers. But Smitherman
downplayed those concerns, saying the increased use of water
recycling and brackish water for fracking was making a difference.
Rather he pointed to Washington D.C., where pressure is growing
on the Obama administration to begin regulating methane
emissions from natural gas drilling. “I can’t manage what
happens in Washington. And that’s what keeps me up at night,
Smitherman said.
Texas news at a glance...
CNN Money - The Advocate - Bloomberg
Dallas Morning News
Oilman Magazine — Your Voice In Energy May / June 2014
26
Wildcatters Rush Spindletop in Return to
East Texas Oil. From the storied King Ranch
near the Mexican border to the 1901 Spindletop
well in East Texas-- the most famous gusher
of all time--oil companies are returning to their
old stomping grounds in search of the next big
nd. All over East Texas, producers such as
Anadarko Petroleum Corp. (APC) and EOG
Resources Inc. are ocking back to areas that
helped fuel America’s rise as a superpower after
World War II. They’re applying new techniques
to layers of rock stacked like playing cards
underground that oil companies have drilled
for decades. And, as elds from Louisiana to
North Dakota are starting to show signs of
fatigue, drillers are targeting areas that have
long been overlooked or barely tapped. “I never
thought I’d go back to East Texas,” said Mark
Plummer, a third-generation oil man who grew
up hearing stories about his grandfather’s days
in the oil patch “living the roughneck dream.
Those elds were thought to be long-played
out by the time Plummer arrived in 2000 with
his own company, Chestnut Exploration &
Production. The basin was “dead as a doornail,”
he said. Now he’s betting his East Texas play
will be his “Jed Clampett moment,” referring
to the television character who struck it rich in
the 1960s TV sitcom, The Beverly Hillbillies.
East Texas’ oil and gas prospects are springing
to life again. Plummer’s closely held production
company just drilled a successful natural gas
well in Rusk, Texas, and is preparing to drill
horizontally for oil near the same formation
that helped build H.L. Hunt’s energy empire in
the 1930s. He plans to drill another three dozen
wells over the more than 10,000 acres he’s
leased 150 miles north of Houston. “Now, it’s
a hot area,” he said. “East Texas is a great place
to play.”
Horizontal drilling and hydraulic fracturing,
which cracks rocks to release oil and gas, are
allowing the industry a fresh start in old hot
spots, said Jordan Marye, a managing director
for oil and gas at Denham Capital Management
LP, which has invested in East Texas. “What
we’ve been able to do is essentially have
another full pass at these same resources.” Oil
companies are racing to establish new elds
capable of sustaining a drilling campaign that
has upended world markets and pushed the
U.S. past Saudi Arabia and Russia last year as
the world’s top producer of oil and natural gas.
Fueling the renewed search is a concern that
shale wells are petering out too quickly, raising
the stakes for a new nd to replace rapidly
declining production in some areas. North
Dakota, one of two states at the heart of the
U.S. oil renaissance, saw the sharpest output
decline in the state’s history in December.
Link to this entire article and more at
OilmanMagazine.com.
CNS News - Fuel Fix - Bloomberg - Odessa American (right)
Driller Jack Clark (white shirt) and Crew east Texas 1930’s
U.S. CO2 Emissions at Lowest Level in 20 Years, Thanks to
Fracking. Something to celebrate this Earth Day: carbon dioxide
emissions in the United States are at their lowest level in twenty
years, and the Intergovernmental Panel on Climate Change
(IPCC) credits shale development and fracking technologies with
this positive development. “[The] rapid
deployment of hydraulic fracturing and
horizontal drilling technologies, which has
increased and diversied the gas supply...
is an important reason for a reduction of
GHG emissions in the United States,
the IPCC said in a report. “The decline
in energy-related CO2 emissions in the
United States in recent years has been one
of the bright spots in the global picture,
the International Energy Agency says in
a report. “One of the key reasons has
been the increased availability of natural
gas, linked to the shale gas revolution.” “We’ve been improving
our emissions in this country without agreeing to the Kyoto
accords, without Congressional action because of innovation
from the natural gas areas,” says Senator Tim Kaine (D-Va.) “And
that moves us down the carbon density scale. Not as fast as some
would like, but it’s moving us down the carbon density scale.
“We’ve been growing much more rapidly than Europe, and yet our
greenhouse gases are falling... and the reason is because of shale
gas, which is natural gas recovered via what’s called fracking,” said
Harvard Professor Jeffry Frankel.
EPA Administrator Gina McCarthy has called natural gas a “game
changer” and has said, “Responsible development of natural
gas is an important part of our work to curb climate change and
support a robust clean energy market at home.” Add to that the
news (reported by AP) that unions are backing fracking because
it’s good for employment: “The shale
became a lifesaver and a lifeline for a lot
of working families,” said Dennis Martire,
the mid-Atlantic regional manager for the
Laborers’ International Union. Looks like
there’s lots of good news - for Americans
and for the earth - today.
Texas crude production hits highest level
since 1980. An index that measures oil and
gas activity in Texas has reached a record
level, bolstered by rising production and
wellhead prices, its creators announced
this week. The Texas Petro Index hit the record in February,
buoyed by daily crude production levels that soared to the state’s
highest level since 1980, said Karr Ingham, the economist who
created the index. February crude production in Texas reached an
estimated 77.2 million barrels — up 22.4 percent from the same
time period in 2013. Ingham said higher wellhead prices caused an
even more dramatic increase in the value of oil and gas produced
in February, which rose by more than $2.85 billion from the
previous year to $10.63 billion.
Texas news at a glance...
Trending on OILMANMAGAZINE.com
27
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
Company will pipe “treated wastewater” for oil and gas production. RDX
Technologies Corporation ofcials plan to pipe treated wastewater from
a facility in Odessa to oil leases, pursuing a water delivery method for oil
and gas operations that the company’s CEO Dennis Danzik described as
a rst-of-its kind approach. Danzik, in a Monday conference call, would
not say where the water treatment and energy technology company’s
Odessa properties are, because he said ofcials choose not to until they are
up and running. And a review of state and local public records revealed
little. But Danzik said about a mile of pipeline from where the company
has an operating contract with the Gulf Coast Waste Disposal Authority,
the privately owned water treatment facility at 2760 S. Grandview Ave.
RDX Technologies has about a total 16 miles of right-of-way secured
for pipeline. If that pipeline were utilized, Danzik said it could pump
about 81,000 gallons of water per hour. Danzik also announced a multi-
year contract with one company: COG Operating LLC, a subsidiary of
Concho Resources in Midland. The companies entered the contract on
March 1 for more than 45,000 barrels per day of treated water, Danzik
said. It lasts for 13 years, divided into three terms. Gordon Pederson, the
Gulf Coast Waste Disposal Authority Manager of Facility Services, said
Monday he did not know of RDX Technologies but pointed to an October
agreement with Kerr Energy to send up to 2 million gallons of treated
afuent water a day to the company for oil and gas production. Kerr
Energy, of Midland, is tied to RDX Technologies, according to previous
announcements from the company. Kerr Energy entered an agreement
in April 2013 that the company would be managed by Ridgeline Energy
Services, which later became RDX Technologies. Transporting wastewater
often means using trucks, contributing to the increase in trafc on strained
West Texas roads and creating a cost for oil and gas companies that Danzik
said RDX Technologies is competing against, although the company’s
operations use trucks to a lesser extent. In the rst three-year term of the
contract with COG, RDX Technologies reported an expected $14.6 million
guarantee but up to $24 million in income from the project. Danzik said
RDX Technologies in negotiations with other companies and expects to
contract out the rest of its available water by June 15. “I believe that our
pipeline network will extend and it will also multiply,” Danzik said. RDX
Technologies, when it was still Ridgeline Energy Services, announced
the installation of a waste water treatment facility in May of last year
in south Odessa, which had an initial capacity of 5,000 barrels per day.
The installation was near a permanent tank battery to allow for reuse of
treated water. Danzik said the company would announce the locations of
its Odessa operations “in due time.” RDX Technology ofcials want to
develop pipelines to take produced and ow back water off leases, Danzik
said. “We believe we can show the State of Texas how a lot of this water
can be recycled,” Danzik said. “And we are working very, very hard on
that process right now.” As it stands now, most waste water in the Permian
Basin winds up in a disposal wells because the economics favors them,
according to industry experts. But more and more companies are also
experimenting with water recycling. “We are just seeing the start of that,”
Danzik said. “And again, I don’t want to overplay this. There are a lot of
people in the industry who say water is the new gold. Well, it’s not. It’s just
water, and it has a value. That value is increasing.
Texas news at a glance...
Oilman Magazine — Your Voice In Energy May / June 2014
28
National news at a glance...
Oil and gas industry generates thousands of jobs in California
The oil and gas industry creates about 49,000 jobs in Los Angeles County
and billions of tax revenue in California. That’s according to a new
report conducted by the Los Angeles County Economic Development
Corp. and commissioned by the trade group Western States Petroleum
Assn., which takes a look at the role of oil and gas on the Golden State
economy in 2012. In the county of Los Angeles, more than 17,000 people
are employed in oil and gas extraction, while an additional 12,000 work
at gas stations, the report said. The industry generates about $5.7 million
in labor income. On a statewide level, California enjoyed $21.6 billion in
state and local tax revenues from gas and black gold. These energy sectors
also created a combined 468,000 direct and indirect jobs. The study comes
at a time of intense debate in California over potential regulations for
the controversial drilling technique called hydraulic fracturing, or more
commonly known as fracking. Advances in drilling technology has helped
unlock large amounts of previously inaccessible oil and gas from shale
formations in places like North Dakota and Texas. Petroleum companies
are hoping to hit a similar pile of black gold in California’s Monterey
Shale.
Fracking celebrates its 65th birthday
The oil and natural gas well completion process that helped spark the
country’s ongoing energy boom — and has drawn challenges and protests
in parts of the country — this week celebrated its 65th birthday. While
hydraulic fracturing, or fracking, has gained considerable attention
over the past decade, the process itself is far from new. The technique
was born March 17, 1949, when Halliburton rst used large amounts
of water to shatter the rock in two test wells deep below Duncan and
Archer County, Texas. More than half a century later, George Mitchell
and his Texas-based Mitchell Energy discovered just the right mix of
fracking uids and the right number and type of sections were needed to
economically produce the natural gas-rich Barnett Shale near Fort Worth.
Oklahoma City-based Devon Energy Corp. purchased Mitchell in 2002.
Devon expanded on Mitchell’s research and combined the practice with
horizontal drilling to spark the Shale Boom that rapidly allowed producers
to recover oil and natural gas from dense rocks throughout the country.
Among the most successful areas in recent years have been the Permian
and Eagle Ford basins in Texas, the Bakken in North Dakota and the
Marcellus in the Pennsylvania area. In Oklahoma, companies have used
fracking and horizontal drilling most heavily in the Cana Woodford in the
west, the Mississippian in the north and now the South Central Oklahoma
Oil Province. The oil and natural gas industry expansion also has drawn
its share of criticism and concern. A few wells and well casings have
failed, allowing natural gas and oil the opportunity to escape and threaten
drinking water.
Marcellus Shale Takes the Lead in Natural Gas
News
Investors looking for opportunities in the
energy sector are watching a giant in the
natural gas production industry, specically
the Marcellus Shale. This 104,000 square mile
expanse that reaches through New York,
Pennsylvania, Ohio, and West Virginia is
making headlines in natural gas news by taking
the lead in production in the U.S. and Canada.
According to analysts at Moody’s, surges in
production by companies who are members or
afliates of the Marcellus Shale Coalition are
expected to continue for the foreseeable future.
The report further states that these companies
stand to prosper even if prices were to drop
to levels seen in 2012. This is good news for
investors, economists, and industries that rely
on economical, plentiful energy sources.
By making use of a relatively new drilling
technique known as “horizontal drilling” or
“fracking,” natural gas stores found within
the shale deposits of the Marcellus can
be harvested with minimal impact to the
surrounding environment. This projected
growth is based on more than conjecture.
Technological advances and innovations have
been utilized to boost production from 1.2
billion cubic feet per day (bcfd) in 2007 to
current levels of 14 bcfd. Further estimates
project levels to reach 20 bcfd by the year
2020. It is projected that within the next year,
Marcellus will provide at least one-fourth of
the nations supply of natural gas. Additionally,
areas in and along the Marcellus Shale are
reaping the benets that come from all the new
jobs. But the recent Marcellus Shale natural
gas news sounds ripe with opportunities for
companies - and their investors - that go
beyond U.S. borders.
International Opportunities in Natural Gas
News. The U.S. isnt the only nation beneting
from the economic growth of the Marcellus
Shale. With an estimated 30 to 75 years’ worth
of natural gas reserves contained within the
region, the U.S. can prot from its bounty
with other nations. In recent natural gas news
reported by Bizjournals.com, an Energy
Innovation Summit was held in Pittsburgh, Pa.
in which Canadian Consulate General John
F. Prato applauded the innovations of the
Marcellus Shale. Prato noted that one-third
of Ontario’s natural gas supply is provided by
Marcellus. During a panel discussion held at the
Summit, NOVA Chemicals Corp. vice president
of corporate strategy John Hotz afrmed the
importance of shale gas from the Marcellus
in his company’s operations. Hotz noted that
his company, which is based out of Alberta,
began facing problems with crisis potential a
few years ago. Natural gas supplies within the
area began to drop, while prices of crude oil
began to soar. As the aforementioned process
called “horizontal drilling” and “fracking”
became known to Nova management, the
company decided to take a serious look at how
this new energy source could benet their
bottom line. The growth in production within
Marcellus is taking the lead in natural gas news.
With additional export opportunities opening
overseas - especially as European countries look
to help ease dependence on Russian natural
gas supplies for Ukraine - demand is strong.
The means used for transporting the natural
gas overseas may pose a challenge. But, as
one industry leader noted, “Challenge equals
opportunity.”
LATIMES - MoneyMorning - NewsOK
29
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
Oklahoma’s not Alone in Denying Link of Quakes to Fracking
The Texas Railroad Commission apparently isn’t shaken up by Ohio
regulators’ decision to limit hydraulic fracturing after nding the process
may have touched off minor earthquakes in the Buckeye State. The
Ohio Department of Natural
Resources last week announced
it’s tightening permit rules on
fracking in direct response to
tremors in Mahoning County,
citing “a probable connection” to
fracking near a small, previously
unknown fault. The quakes
included one that shook homes
near a Hilcorp Energy Co.
drilling site. But Ofcials with
the Texas Railroad Commission,
which has regulatory oversight
of oil-and-gas drilling in Texas,
say they have not found a link
between fracking and tremblers,
adding that geology differs
between states. Environmental activists have long argued that hydraulic
fracturing, or fracking — the process used to release oil from dense shale
formations — may cause earthquakes. They also maintain that injection
wells used for disposal of wastewater used in the process could trigger
seismic shifts. A recent peer-reviewed study from the journal Earth and
Planetary Science Letters posits that extraction of oil and water from the
Eagle Ford may have prompted recent small earthquakes. But the paper
stopped short of directly linking fracking to that instability. Other states,
including Kansas, have launched similar investigations. Thomas Tunstall,
research director of the University
of Texas at San Antonio’s Institute
for Economic Development,
says the Railroad Commission is
aware of residents’ concern over
a possible link between fracking
and quakes. However, based on
the evidence so far available, the
commission is more likely to
impose limits on injection wells
than it is to restrict fracking in the
state. “If stricter regulation is just
being applied to injection wells,
I don’t think that would be a big
issue,” says Tunstall, who tracks
economic data related to the Eagle
Ford. “It may raise the cost of injection wells, and you may have to drive
a longer distance to get rid of some of this waste. But that’s just a part of
doing business.
San Antonio Business Journal - NewsOK - Platts
Baker Hughes opens the door to fracking’s
“secret sauce”
Baker Hughes’ decision to release all of
the components of its frack uids begs the
question: Why wait until now? Keeping
secret some of the ingredients in hydraulic
fracturing uids, while identifying most of
them, as has been the case in the industry, just
gives ammunition to critics of shale oil and
gas drilling. And the Baker Hughes’ decision
comes as a consensus appears to be forming
in industry and government that full disclosure
wouldn’t dull the competitive edge of any
of the oil and gas service companies. Baker
Hughes acknowledged as much, saying it could
identify 100% of its chemical ingredients
“without compromising our formulations.” So
why now? Well, as my colleague Bill Holland
reported, Baker Hughes isn’t specifying why
the company is changing the policy. But Bill
notes that Baker Hughes made the decision
on March 28, the same day that a government
task force recommended full disclosure
to FracFocus.org, the industry database.
Coincidence or not, Baker Hughes’ move now
puts pressure on the other industry kingpins,
Halliburton and Schlumberger, to follow suit.
Baker Hughes’ move would be accomplished
immediately, either. A company spokesman
said it will take “several months” to complete
negotiations with suppliers and customers, and
ensure compatibility in reporting procedures.
But it’s a big step, and one that’s perhaps
a harbinger of a larger movement by the
industry.
Oklahoma universities offer energy education
programs
The growing oil and natural gas industry has
spawned a unique challenge, and the state’s
universities have created programs to address
the need. Oklahoma City University’s Meinders
School of Business about two years ago began
its Master of Business Administration in
Energy program. In January, the University of
Oklahoma’s Price College of Business began
its rst Master of Business Administration in
Energy program. OU’s program focuses on
top-level executives or those on track to reach
such positions. And the University of Tulsa’s
Collins College of Business is in its third year
of offering a Master of Energy Business.
Oklahoma news at a glance...
30
Oilman Magazine — Your Voice In Energy May / June 2014
John Brinkman
President of Imbibitive Technologies on their revolutionary product, IMBIBER BEADS
Interviewed by Oilman Magazine Publisher, Luke McDonald
See the entire video interview at OilmanMagazine.com
OILMAN: I was very intrigued when I rst read about IMBIBER Beads, and watched your demonstration videos online. It’s very innovative and I feel it
could revolutionize spill clean up and prevention within our industry. So tell us about IMBIBER Beads?
John Brinkman: Imbembitive Technologies is a specialty absorbent manufacturer, our agship product is knows by the brand name Imbiber Beads. The
word ‘Imbibe’ and ‘Absorb’ are synonyms, there’s a lot of confusion in the marketplace as to what an absorbent actually does. Most of the products on the
market that are commercially available are surface coating materials and are by ASTM International Performance Standard denitions ‘aDsorbent’ that’s
‘D’ as in dangerous especially if you’re dealing with things like fuels and solvents. The IMBIBER Beads were originally invented by The Dow Chemical
Company and specically by my former partner Dr. Richard Hall. Unfortunately Dr. Hall passed away a couple years ago, but part of his legacy was the
invention of the only oil sensitive, super absorbent polymer currently available anywhere in the world today. Dick Hall invented IMBIBER Beads roughly
in 1968, which was a little bit after the time that a fellow by the name of Victor Mills invented the rst water sensitive, super absorbent polymer, which
later went on to become the brand name “Pampers” and revolutionized the personal hygiene industry with disposable baby diapers.
OILMAN: How do Imbiber Beads work and how can they be applied to the oil and gas industry?
John Brinkman: We happen to think that IMBIBER Beads should have the same impact on the oil industry in revolutionizing the way that oil spills are
dealt with the way that oil releases are prevented from entering the environment and have endeavored to incorporate the properties of the IMBIBER
Beads into a number of spill response and pollution prevention applications. How the beads differ from the surface coating materials is that the liquid
physically diffuses into the polymer structure. If you can visualize a salt or a sugar granule it’s approximately the size of the IMBIBER Beads and the
liquid diffuses into the beads by swelling two the three times their original size. What this really implies is a tremendous thirst. If you’ve seen any of the
commercials on television for personal hygiene products they’ll say that the water sensitive products will pick up a tremendous volume of water, the beads
do the same thing, but are unaffected by the water, they’ll only react with a wide range of organic liquids such as crude oil, gasoline, benzene, ethylene
styrene, PCB’s. Once the liquid goes into the IMBIBER Beads, it becomes part of the structure of the IMBIBER Beads and can’t be re-released through
compression or even if you were to grind them up and try to get them to release their contents - the polymer and the liquid have integrated and become
one material.
OILMAN: Aside from IMBIBER Beads’ application during an accident clean up, it sounds like their is also an application to reduce the risk of hazardous
vapors at an incident site?
John Brinkman: Good question, if you use the example again of the disposable baby diaper, those polymers are engineered to absorb water and within
a short period of time the fabric is dry to the touch and hopefully that keeps your baby’s bottom dry and free from rashes and infections. With the
Imbiber products they work the same way they illuminate the liquid faze, in other words the liquid is no longer available for re-release so in doing so you’re
illuminating secondary contamination. If you’ve ever tried to pick up a polypropylene pad for example that’s been saturated with diesel fuel or gasoline
simple gravitational pull causes it to re-release the amount of its contents. With the IMBIBER Beads that can’t happen, so that makes it safer for response
personnel to clean up spills. And the other issue is very important, by illuminating the liquid faze; we reduce the rate at which vapors are released. Through
independent third party testing, the IMBIBER Beads have demonstrated their ability to reduce the concentration in the air to below the lower explosive
limit in many, many instances. So that’s a huge occupational and safety consideration for utilizing IMBIBER Beads’ unique performance properties.
OILMAN: Environmental and safety issues is very important to everyone in the oil and gas
industry. How can a company implement IMBIBER Beads as part of their safety strategy?
John Brinkman: The easiest step is to just Google IMBIBER Beads, visit our website or call our
toll free number 888-THE-BEAD. And whether someone has a particular issue like spill response,
pollution prevention or specialty application we’re available to address those. I think we can
demonstrate a level of expertise; we take great pride in our technical accuracy. Our scientists are all
former Dow Chemical scientists and engineers so once we know what the chemical properties of
the liquid in question are we can go back to the science team and explain what the properties are
and what the issue might be and then customize solutions based on that. In many instances, we’ll
know within a relatively short period of time. We also have another generation of products we’re
working on as well that will increase our surface area by as much as 30 million times the size the
beads are today.
// Interview
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
31
Part II: A Day on the Rig - Viking
(By Jamie Rood, Photographic Arst)
On the morning of the last day of August 2010,
returning from my Colorado tour, I left my parents
place to head over to the ghost town of Barstow to
shoot (at mom’s suggestion). There was a rig up at
the end of of the road (half a mile away) - visible
from their place. It was on the way, so I decided
to stop by and take some shots from across the
street. The site was on a lot where there used to be a
couple of caliche pits known as the “Turtle Ponds”.
Perhaps it was most infamously known as the
place my brother Jody broke both legs and an arm
jumping his dirt bike. The past time of riding in the
various caliche pits had also sent me to the hospital
many years years before, but I digress...
I saw a young man on the phone and explained what
I was doing so no one would get concerned. He was
getting his wife to bring the family out and told me
I should stick around as they were about to case the
well. Before you know it, I was onsite with a
borrowed hard hat, then up on the rig oor. The
driller told me just to stay out of the guys’ way. No
problem - I didn’t want to cause any problems and
appreciated the access. You see, there was what I
gathered as a ‘PR problem’ between the oileld
companies and community at the time. When I
was growing up, there was activity around, but
the communities were pretty much just places
where people lived. This go around however, the
companies were drilling not just ‘in’ the community,
but literally in peoples’ backyards!
Now anyone growing up watching the “Beverly
Hillbillies” will remember the intro with Jed shooting
after some food one moment, then a Beverly Hills
millionaire the next. So everyone is getting big
royalty checks, right? What’s the problem? Well,
when my parents bought their place, I remember the
discussion about mineral rights not being included
with the property. Practically no one in the area had
mineral rights. So now the majority of homeowners
were getting, at most, surface rental fees, loss of
use of some
of their land,
and perceived
lowered property
values. (In reality,
it appears to me
that the current
boom has raised
property values so
much in the area,
this is more than
compensated for).
It was explained to me that with the current boom,
oil companies had to either drill on their leases or
lose them, and many of the untapped land was
populated. Even a portion of my parents’ land was
staked. To me though, oil & gas for the most part,
was what that area was built on. Even though you
might not work directly in the eld, you were likely
there because of it, and that should be appreciated.
The people I met could see that instead of
documenting the bad deeds of “Big Oil” we’ve seen
so much of in the past, I was showing the hard
work, and even romanticizing the oileld again. I
wanted to show it in a positive light. As one client
wrote on my blog:
“It puts to life how hard these guys work. I am from Midland
so I grew up around men who worked and work in the
business and I now work in the business. Thanks for nding
beauty in the hard working men of West Texas!”
So, I spent the rest of the afternoon getting to know
the crew, learning about casing and just having a
great shoot on and around the rig. The guys shared
their water and lunch with me and talked a little
about experiences they’d had. They worked very
hard and seemed to really have a great time! I kept in
touch with a couple, like Erin - my superstar in the
“Dragon Arm” piece with the Eckel tool. Sometimes
I tease that while other photographers shoot
swimsuit models, I shoot roughnecks. ;) I was invited
back the next day to see the breakdown and moving
of the rig down the road, past Mom and Dad’s place
to a new site in the Eastern end of Gardendale,
south of the new water tower (everyone was on
well water til now). I never made it to Barstow that
trip. ;)
The move of the rig was like an orchestrated circus
- lots of heavy equipment, and lots going on! The
rig was down, loaded onto trucks and on it’s way.
I stopped by the house for a quick lunch and got
down to the new site where the rigs were waiting
in line to unload at the previously prepared pad.
I watched the rig raise up and captured “Rig &
Dust”. While shooting the trucks coming in with
the big pumps, one of the guys asked, “Want to see
something really cool?”. Of course I did, so I got
into position and watched a huge red pump slide
off the back of the truck, raising the front end
into the air. (“Letting Off the Pump - Wheelie”)
followed by lots of dust (“... - Dust”). A dust devil
passed through the site, whipping up more of the
white caliche dust. As the Sun started going down,
I sat my worn Oakley sunglasses on the hood of
my truck, positioned where the rig and landscape
showed in one lens, giving a solarizing effect. I stared
and reected on the last two days and on what I
had captured. I
had just a few
days to get some
of the images
ready for my new
“Day on a Rig”
series to debut at
Septemberfest at
the Museum of
the Southwest
in Midland,
Texas. The rush
effort paid off as the series was really well received
(including people like Mrs. Eckel giving me a hard
time), encouraging me to continue delving into this
niche.
Jamie Rood, Photographic
Artist
www.JamieRood.com
Email: art@JamieRood.com
Studio: 512.345.3468
Cell: 512.785.5830
32
Oilman Magazine — Your Voice In Energy May / June 2014
From NBCNews.com
Fracking wastewater
contaminated — and likely
radioactive
CONTAMINATED WATERS
The concentrations of radium Vengosh and
his team detected are higher than those found
in some radioactive waste dumps, and exceed
the minimum threshold the federal government
uses to qualify a disposal site as a radioactive
dump site, Vengosh told LiveScience. While
the Josephine Brine Treatment Facility removes
some of the radium from the wastewater,
the metal accumulates in the sediment, at
dangerously high levels, he added. Radium
can make its way into the food chain by rst
accumulating in insects and small animals, and
then moving on to larger animals, like sh,
when they consume the insects and smaller
animals, Vengosh added. But it’s not known to
what extent this is happening, since this study
didn’t address that question, he said.
ALARMING
“The occurrence of radium is alarming —
this is a radioactive constituent that is likely
to increase rates of genetic mutation” and
poses “a signicant radioactive health hazard
for humans,” said William Schlesinger, a
researcher and president of the Cary Institute
of Ecosystem Studies, in Millbrook, N.Y., who
wasnt involved in the study. Researchers say
they are sure the contaminants are coming
from frackingbecause the Josephine facility
treats this oil and gas wastewater, and the water
contains the same chemical signature as rocks
in the Marcellus Shale Formation, Vengosh
said. This wastewater is often called “owback,
as it’s the water that ows back to the surface
from underground after being injected into
rocks in the fracking process. In Pennsylvania,
some of this water is transported by oil and
gas companies to treatment locations such as
the Josephine facility, where it is processed
and released into streams and rivers. However,
much of the water used in fracking is treated
by oil and gas companies and reused, or
injected into deep wells, said Lisa Kasianowitz,
an information specialist at the Pennsylvania
Department of Environmental Protection
(DEP). The treatment facility did remove some
contaminants, including some of the radium,
though enough made it through to accumulate
in high levels in sediments, Vengosh said. It
also “did nothing” to remove certain salts, like
bromide, he said. Traditional wastewater plants
are not built to remove these contaminants, he
added.
From InsideClimateNews.com
State-funded study projects
dramatic increase in emissions
from oil and gas development by
2018.
What might the oil- and gas-rich Eagle Ford
Shale region of South Texas look like in 2018?
A newly released but largely unnoticed study
commissioned by the state of Texas makes
some striking projections. These projections
are included in a study prepared by scientists
with the Alamo Area Council of Governments
(AACOG) in San Antonio and paid for by the
Texas Commission on Environmental Quality
(TCEQ). The study was designed to determine
the extent to which oil and gas development in
the Eagle Ford region is contributing to rising
ozone levels in the San Antonio metropolitan
area, which lies north of much of the drilling.
San Antonio’s ozone readings have violated
federal air quality standards since August 2012,
making the city vulnerable to sanctions under
the Clean Air Act.
The study’s ndings also have implications
beyond San Antonio. In February, the Center
for Public Integrity, InsideClimate News and
The Weather Channel produced a series of
reports about air quality in the Eagle Ford and
found that the Texas regulatory system does
more to protect the gas and oil industry than
the public. The TCEQ has installed only ve
permanent air monitors in the region, which is
nearly twice the size of Massachusetts, and all
of them are on the fringes of the shale play, far
from the heavy drilling areas where emissions
are highest.
INSTANT FACT CHECK: Energy in Depth’s Katie Brown has posted a
response to the water analysis study— pointing out, among other things,
that members of the Marcellus Shale Coalition stopped using the Josephine
Brine Treatment Facility in May 2011, that some samples were taken close
to the discharge source, and that the levels of radioactivity were well below
industrial discharge limits.
INSTANT FACT CHECK: Texas Railroad Commissioner David Porter
criticized the InsideClimate/CPI report on the Eagle Ford during a panel
discussion this week in Dallas, defending the work that state regulators
do to protect the public while also dismissing the authors of the report for
being opposed to oil and gas development.
Noise from the mainstream...
MAINSTREAM VS MIDSTREAM
With your help, we’ve set the record straight on all the misleading reporng surrounding hydraulic fracturing.
The number of wells drilled in the
20,000-square-mile region could quadruple,
from about 8,000 today to 32,000.
Oil production could leap from 363 million
barrels per year to as much as 761 million.
Airborne releases of volatile organic
compounds (VOCs) could increase 281
percent during the peak ozone season
compared to 2012 emissions. VOCs,
commonly found at oil and gas production
sites, can cause respiratory and neurological
problems. Some, like benzene, can cause
cancer.
Nitrogen oxides—which react with VOCs
in sunlight to create ground-level ozone,
the main component of smog—could
increase 69 percent during the peak ozone
season.
Oilman Magazine — Your Voice In Energy May / June 2014
32
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
33
Studies, facts & expert feedback from the industry...
“Fracking has helped this naon
by unlocking vast resources of
oil and gas, to make our country
more secure and have a stronger
economy by providing thousands of
jobs.

“Our economy job base is held
up by our recent surge in oil &
gas exploraon, mostly due to
hydraulic fracturing.Russ Didlake –

“Hydraulic fracturing has been used
for decades. It is only unl now
that the successful combinaon of
it with direconal drilling that has
exponenally grown the ability to
exploit our bounful hydrocarbon
resources that the pseudo-
environmental crowd has deemed it
dangerous.” The plight of hydraulic
fracturing is eerily similar to what
happened with the gasoline addive
methyl terary butyl ether (MTBE),
which the government regulated
reners to produce an oxygenate
to replace lead (tetra-ethyl) and
therefore clean the air. Then it was
banned when faulty underground
gasoline tanks leaked and polluted
the water. It wasn’t really the MTBE
that did the damage; it was the old
and leaky gasoline tanks. And don’t
get me started on the replacement
for MTBE: ethanol!! At the end
of the day, like any industrial
operaon, there are risks involved.
But if the contractor performing the
hydraulic fracturing ensures proper
techniques, it is a proven safe
operaon.

“From a Pipeliner’s point of view,
the only noceable eect from
hydraulic fracturing operaons I
observed was an occasional leak in
an aboveground spoil water tank,
where earthen levees we unsecured
or not compacted. Minor leaks
from a single tank out of hundreds.
This Naon needs the oil & gas
captured by whatever modern
means we can devise. There’s an
older eld just south of Houston,
Texas, where CO2 gas is piped from
an exnct volcano in Mississippi
then pumped into this eld to
extract surprisingly huge amounts
of crude & gas...will CO2 be the next
media villain? Hydraulic fracturing
creates jobs, drives technology,
bolsters crude reserves and
contributes to naonal strength.


Engineering LLC
“Because of Hydraulic Fracturing,
natural gas is abundant
and inexpensive. Ulizing
the technology of hydraulic
fracturing has produced a direct,
unquesoned, eect of lowering
green house gases in the United
States. My vision is lowering green
house gases around the world; with
more US natural gas exported to
make a benecial change on the
world’s environment. In addion,
the transportaon sector is the
second largest producer of green
house gases. Converng more cars,
trucks and busses to natural gas will
greatly improve our environment.


“Most people don’t realize that
the oil and gas industry has been
fracking since World War II. The rst
applicaons of hydraulic fracturing
were used 65 years ago in Stephens
County, Oklahoma. We’ve been
employing this technique ever
since, a fact conveniently omied
by an-development alarmists
who want to make fracking seem
unproven and unsafe. As an
industry, we need to do a beer job
communicang the long history of
safe, proven success that we’ve had
with hydraulic fracturing so that the
general public understands that this
isn’t an untested process.Shane


“Mainstream media is concerned
with narrowed knowledge of oil
and natural gas structure and
operaons because of assorted
paerns of interacon formed by
insucient condions of jused
oil and natural gas knowledge. The
problem is what makes jused
beliefs jused and how can
mainstream media become jused
in the oil and natural gas industry...
only to provide a solid foundaon
of knowledge jused as true belief
through incorporang various
organizaonal structures and social
reinforcement to support oil and
natural gas knowledge claims.Mike
Thomas - Pipeline Inspector
Background images: 123rf.com
MAINSTREAM VS MIDSTREAM
With your help, we’ve set the record straight on all the misleading reporng surrounding hydraulic fracturing.
JOSEPH DeWOODY
The argument
that Hydraulic
Fracturing
contaminates
drinking water
is completely
unmerited and without any
scienticevidence.Thetypical
rock formation that requires
hydraulic fracturing to achieve
commercial oil and gas
production is thousands of feet
below the average depths of
fresh water rock or aquifers.
Between the fresh water and
the potential productive zones
are multiple strata of solid rock
that are often times very low in
permeability and porosity. The
oil and gas industry is a highly
regulated industry. Operators
are required by state regulatory
agencies to set adequate casing
and cement to protect the
annulus of the wellbore and
prevent any communication of
the fracs and the fresh water
zones. Each frac is extensively
monitored throughout the
process to make sure that the
frac is completed properly to
produce the most hydrocarbon
and provide an economic return
for the operator. Even if it was
possible for a frac to break
through thousands of feet of
rock under the pressure of
massive amounts of gravity and
weight and reach fresh water,
the economic interest of the
operator would be to ensure that
it did not.
Joseph P. DeWoody
(@jpdewoody) is the president
of Clear Fork Royalty, an oil and
gas royalty investment company
located in Fort Worth, Texas.
33
OILMAN Magazine at .

From the U.S. Department of Energy
Preliminary data nds no link to water
supply contamination
Washington Post: The leading federal research effort into
the controversial drilling method known as fracking has
turned up no evidence so far linking the process to water
contamination — a connection continually drawn by many
environmentalist critics along with some Democrats in
Congress. Department of Energy research, being conducted
at a Marcellus Shale natural gas well in western Pennsylvania,
thus far has shown that chemicals used in the hydraulic
fracturing practice have stayed thousands of feet below
drinking-water supplies. The fracking boom has led to a
massive surge in U.S. natural gas supplies and is helping to
rewrite the global balance of power among energy suppliers.
But there are many detractors, who say fracking is dangerous
for the environment. Specically, they argue that the practice
is inherently harmful to water supplies. Such claims formed
the basis of the recent documentary “Gasland 2,” a highly
critical look at fracking and its impacts in Pennsylvania and
elsewhere. Recent research from the federal government and
state ofcials, however, indicates that fracking — when done
correctly and in line with proper rules and environmental
regulations — is safe. In addition to these initial results from
the Energy Department, there was a determination in April
of 2013 by Pennsylvania investigators that fracking isn’t to
blame for high methane levels in three families’ drinking
water in a northern Pennsylvania town.
From Energy in Depth
Activism and Deception Underlie Weather
Channel’s Eagle Ford Shale Report
A new investigative report by InsideClimate News and the
Center for Public Integrity – promoted and produced by
the Weather Channel – concludes that shale development in
south Texas is “releasing a toxic soup of chemicals into the
air.” But shaky research underlying the report raises serious
questions about the validity of those claims, including the
use of widely discredited literature promoted by activist
groups. The InsideClimate/CPI report claims that, despite
complaints from residents in the Eagle Ford Shale region,
regulators have done little to nothing to protect them. The
facts, as they say, tell a much different story.
With great reporting from Energy in Depth’s Steve
Everley, we have a compiles a list of ten claims made in
the InsideClimate/CPI report and in excerpts from the
Weather Channel video, each followed by an explanation of
reality. Link to this post at OilmanMagazine.com. It’s pretty
entertaining.
34
Oilman Magazine — Your Voice In Energy May / June 2014
ENVIRONMENTAL



3190 Highway 30 W, Box # 8758
Huntsville, TX 77340
Ph: 936-439-4319
Website: www.cleanenergychemicals.com
Email: info@cleanenergychemicals.com
Twier: @CleanEnergyChem
CEC is an environmentally conscience global supplier
of hydraulic fracturing and Biodegradable oil
remediaon products. We service the Oil, Gas and
Marime Industries by delivering our opmal green,
nontoxic, biodegradable and low- toxicity products.
We aim to contribuon to the preservaon of our
environment, as protecng people, wildlife and the
environment is our top priority here at CEC! Our
focus is to connually improve industry processes
and products, making performance in the eld more
eecve, ecient and safe. Our Chemists develop
innovave proprietary technology that improves the
health and safety for workers, service organizaons,
wildlife and the environment. Our products are used
worldwide in many dierent scenarios.
You will be amazed at the results of our Glut Free
Biocide, NASA Award winning PRP for hydrocarbon
spills on water/land and our Biodegradable Rig Wash,
BLAST IT just to name a few.
We look forward to reducing your risk and operang
costs while increasing your protability!
Please contact Jessica N. Byrd if you would like a
tesng sample or informaon on any of our products.
Let’s work together in the eld to make a dierence
for many future generaons to come!
Safety Management Systems
2916 N. University Ave.
Lafayee, LA 70507
Ph. (337) 521-3400
(800) 252-5522 (24/7)
Website: www.SafetyMS.com
facebook.com/SafetyMS
twier.com/SafetyMS
At Safety Management Systems, our main goal is
protecng lives and changing cultures. We provide
companies in the oil & gas industry with safety
management and consulng services to promote
and maintain an ethical workplace atmosphere that
equally values health, safety, and environmental
responsibility. A safe work environment is not only
ethical, but essenal for a company’s success. Our
Health, Safety, and Environmental (HSE) consultants
and specialists are equipped and available to address
your companys relevant challenges and concerns,
while also providing educaon and awareness to
achieve an accident-free environment on the job.
AMPOL
New Iberia Oce
401 West Admiral Doyle
New Iberia, LA 70560
Ph: 337-365-7847
Oil Stop
Harvey Oce
1208 Peters Road
Harvey, LA 70058
Ph: 504-361-4321
Ampol Norm Remediaon
Bayou Vista Oce
575 Highway 182
Bayou Vista, LA 70380
Ph: 985-395-2020
www.ampol.net
American Polluon Control Corp. (AMPOL) is a
full-service environmental remediaon company
and contractor that specializes in inland, near-shore,
and oshore emergency response and hazardous
waste remediaon. Serving oil and gas companies,
industrial companies and government agencies,
AMPOL provides emergency and non-emergency
toxic and hazardous materials containment,
collecon and assistance with transport and
disposal. Safety is top priority with AMPOL. Safety
is planned into all of our acvies and is equal
to the expectaons of our clients for quality and
eciency. AMPOL has been recognized by the US
Department of Labor and the Louisiana Workmen’s
Compensaon Corporaon for its excellent safety
record.
ENVIRONMENTAL COMPLIANCE AND
LEASE BROKERAGE
Edmond, OK Oce:
3027 Willowood Rd.
Edmond, OK 73034
Phone: 405-340-5499
Midland, TX Oce:
4305 N. Gareld St. – Suite 229
Midland, TX 79705
Phone: 432-695-6020
Web address: sco-jooilandgas.com
Sco-Jo Land and Environmental is the naon’s leading
environmental compliance and land brokerage rm,
with 35 years of combined experience in the oil and
gas industry. Our environmental team specializes
in EPA audits, SPCC Plans, Annual Inspecons, Tier
II reports, air emissions, containment systems,
and all environmental needs. Our brokerage rm
specializes in lease and ROW Acquision, mineral
and HBP ownership reports, BLM, BIA, State leasing,
pooling applicaons, full curave measures, and due
diligence with a CPL Accreditaon.

7701 Johnston Street
PO Box 60639
Lafayee LA 70596
Phone: 337.993.9377
Fax: 337.216.9721
Email: customerservice@TeamFSS.com
www.TeamFSS.com
Fire & Safety Specialists Inc. (FSS) is commied to
providing re suppression systems and other safety
measures to beer protect your company. Our industry
experts’ experience is unmatched in the re and safety
industry. Unprecedented service, an honest approach
to business, superior distributor relaonships and a
commitment to geng the job done right sets our
company apart from the compeon.
Safety and training are key components to the success
of FSS. We take immense pride in our ability to
professionally protect our customers’ assets and lives.
Training for all personnel is an ongoing and integral part
of our organizaon, and allows us to connue doing
what we do best – which is to save lives.


4598 Woodlawn Road
Maurice, LA 70555
Ph: (337) 893-9992
www.WetTechEnergy.com
facebook.com/WetTechEnergy
Wet Tech Energy is a family owned and operated
company that has evolved into a diverse and unique
blend of service and supply. As one of the leading buoy
manufacturers in the country, what sets Wet Tech
Energy apart are our service capabilies; being able to
provide oshore installaon services with an Anchor
Handling Vessel and specialty crews.

EQUIPMENT

Houston, TX
281-330-6016
Website: www.haggard-muddog.com
Email: muddogid@airmail.net
Operators world-wide have saved rig me, drilling
mud, improved rig eciency and safety with the
Haggard MUD DOG ID WIPER - the only patented ID
wiper tool. The MUD DOG wiper will do your dirty
work for you while tripping drill pipe, keeping the mud
in the well bore instead of the rig oor and racking
area. (Messy stu to work in!) Time spent cleaning the
rig oor and racking area equals BIG BUCKS. Let the
MUD DOG wiper do it for you.
// Marketplace
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
35
TRANSPORTATION


201 Energy Parkway
Lafayee, LA 70508
Sales/Markeng: 855-686-5478
Corporate Informaon: 855-686-5478
Website: www.DupreLogiscs.com
Email: forwardthinking@duprelogiscs.com
youtube.com/dupremedia
Over the past 10 years, we have seen huge changes in
the Logiscs outsourcing business model. Third Party
Logiscs (3PLs) have long led the way in logiscs
outsourcing using their core business-forwarding,
trucking and warehousing. However, today this
oering has become a commodity service and does
not provide any compeve advantage. Customers,
anxious to increase their compeveness, need
improved and more integrated value proposions.
This has led to an altogether new partner-based
business model wherein the outsourcing company
brings to table its own perspecve, knowledge,
experience and technology to undertake a full-
spectrum of acvies from planning, controlling,
execung and organizing the whole logisc process.

COMPLIANCE

Walter C. Couch III,
Managing Member
Houston, Texas USA
Telephone: (832) 421-7004
e-mail: Walter@couchmorgangg.com
Website: www.couchmorgangg.com
QTEC
Aberdeen, Houston, Louisiana
Toll Free: 855-364-5650
Email: info@qtec-global.com
Website: www.qtec-global.com
Established in 1992, QTEC is headquartered in
Aberdeen, at the heart of the UK energy industry,
and has gained a strong track-record by providing
objecve, unbiased technical recommendaons to oil
and gas operators and drilling contractors worldwide.
The services we oer aim to ensure operators achieve
ongoing environmental compliance – something
which has been heightened post-Macondo – and a
reducon in their overall operang costs.

1530 St. Eenne Rd.
Broussard, LA 70518
(337) 856-7000
(800) PELSTAR
Website: www.pelstarusa.com
Email: dirk@pelstarusa.com
Parish Truck Sales
New Orleans Lafayee
10459 Airline 1101 Doyle Melacon Ext
St. Rose, LA70087 Breaux Bridge, LA 70517
(I-130 Exit 2-Kenner) (I-10 East Exit 109 South)
MAIN: 504-467-9630 MAIN: 337-442-1600
WATTS: 800-969-6225 WATTS: 877-237-0448

SERVICES
Port of Iberia
For leasing informaon contact Roy Pon:
Ph. 337-364-1065
Email: royp@portoberia.com
Website: www.portoberia.com
4611 South Lewis St.
New Iberia, Louisiana 70560
Markeng: markeng@portoberia.com
Administraon: administraon@portoberia.com
General Inquiries: info@portoberia.com
General Phone: (337) 364-1065
Fax: (337) 364-3136
Located near the Louisiana coast in Iberia Parish,
the Port of Iberia is a 2,000 acre industrial and
manufacturing site surrounding a man-made port
complex. The port has access to the Gulf Intracoastal
Waterway and the Gulf of Mexico through its own
Commercial Canal and has access to the Mississippi
River through major ports in Baton Rouge and New
Orleans.

24 Waterway Avenue, Suite 1100
The Woodlands TX 77380
Ph. 281-719-6100
Website: www.thewoodlands-commercial.com
1800 Hughes Landing Blvd.
The Woodlands, Texas 77380
Featured Property:

Bring your company home to The Woodlands’ newest
desnaon – Two Hughes Landing. This new Class
A, 8-story, 197,000-square-foot oce building is
located in Hughes Landing on Lake Woodlands, a
66-acre mixed use development planned to include
up to 11 oce buildings complemented by retail
shops, restaurants, bouque hotels and urban
residences. Situated at the upper end of 200-acre
Lake Woodlands, Hughes Landing will be a naturally
beauful, walkable environment to be enjoyed by
employees, residents and visitors.



Louisiana and Texas
(337)237-8343 in Lafayee
(800)213-BANK (2265) outside of Lafayee
Website: www.MidSouthBank.com
facebook.com/MidSouthBank
twier.com/MidSouthBank


Paradigm Partners
1500 S. Dairy Ashford, Suite 240
Houston, Texas 77077
Website: www.ParadigmLP.com
Craig LaGrappe, Sales Director
Ph. (281) 558-7100 x102
Email: CLaGrappe@ParadigmLP.com
Mike McCorkle, Account Manager
Ph. (281) 558-7100 x120
Email: MMcCorkle@ParadigmLP.com
Paradigm Partners is an internaonal consulng
rm specializing in complex federal and state tax
and funding incenves, for both public and private
enes, across a host of industries. Paradigm
Partners has disnguished itself amongst its peers
by adopng a low cost, high return service model
that employs a tailored two-phase approach; the
Company’s business development and professional
teams work hand in hand to provide accurate
analyses, establish eecve client dialogues, and
guarantee rapid turnaround mes.
The Company’s core consulng porolio includes
Global R&D Tax Credits Analyses, Hiring and
Locaon- Based Incenves, Unemployment Claims
Management, IC-DISC, Domesc Producon Acvies
Deducon, Grant and Non-diluve Funding Advisory,
Cost Segregaon Studies, Tax Controversy, Patent and
Audit Defense Services.
ADD YOUR LISTING!
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
To add your business lisng to the OILMAN
Marketplace, or for more informaon
about all of our aordable adversing
opons, contact us at:
Email: adversing@OilmanMagazine.com
-or
Online: OilmanMagazine.com/adverse
-or
Phone: 800-562-2340 Ex. 1
36
Oilman Magazine — Your Voice In Energy May / June 2014

Health & Safety Manager
Hire Resolve
HOUSTON, TEXAS, UNITED STATES
FULL TIME
$160-195K
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Manager of SEC Reporng
JMAR & Associates
DALLAS, TEXAS, UNITED STATES
FULL TIME
Dallas based independent midstream
energy company is seeking a Manager
of SEC Reporng. This person will be
responsible for the public ling compliance
on all public enes, as well as focus
on connuously improving producvity,
compliance and ensuring internal controls
are being met.
Responsibilies:
Responsible for ling quarterly and annual
SEC lings.
Coordinate quarterly reviews quarterly and
annual audit.
Establish processes to meet compliance for
quarterly and annual lings with SEC.
Conduct technical research and compliance
for GAAP.
Special projects as assigned.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Reservoir Engineering Tech
Richard, Wayne & Roberts
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Geophysicist
Richard, Wayne & Roberts
MIDLAND, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Compleons Manager
Richard, Wayne & Roberts
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Operaons Engineer
Hire Resolve
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Chief Informaon Ocer
Richard, Wayne & Roberts
HOUSTON, TEXAS, UNITED STATES
FULL TIME
Geoscience Technician
Richard, Wayne & Roberts
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Lead Exploraonist
EarthStream Global Limited
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Chief Operang Ocer
Dalton Boggs & Associates
MIDLAND, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Geoscience Technician
Stellar Recruitment
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Senior Geologist
EarthStream Global Limited
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Drilling Technician
EarthStream Global Limited
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Oil and Gas Accountant
JMAR & Associates
FORT WORTH, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Sta Geologist - Exploraon - GOM
Richard, Wayne & Roberts
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Drilling Supervisors
Richard, Wayne & Roberts
HOUSTON, TEXAS, UNITED STATES
CONTRACT
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Technical Safety Engineers – Process,
Oil and Gas
Risktec Soluons Inc
HOUSTON, TEXAS, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Drilling Technician
EarthStream Global Limited
HOUSTON, TEXAS, UNITED STATES
FULL TIME
 
Accounng Supervisor - Oil & Gas
HLP Soluons
OKLAHOMA CITY, OK, UNITED STATES
FULL TIME
The Accounng Supervisor will plan,
coordinate and direct the acvies for
an assigned area of responsibility, as well
as provide administrave direcon and
support for the daily operaonal acvies
of a team of employees.
Minimum Requirements:
Demonstrate ability to foster teamwork
and facilitate teams through the
encouragement and building of mutual
trust, respect, and cooperaon among
team members.
Possess administrave knowledge in order
to prepare and maintain reports, budgets,
and administrave records as required.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Senior Renery Consultant
Global Recruiters Network, Inc
ODESSA / MIDLAND, OKLAHOMA,
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Geologist
EarthStream Global Limited
OKLAHOMA CITY, OKLAHOMA
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Operaons Engineer
Dalton Boggs & Associates
TULSA, OKLAHOMA, UNITED STATES
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Director of Engineering Operaons
Dalton Boggs & Associates
OKLAHOMA CITY, OKLAHOMA
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Reservoir Engineer
EarthStream Global Limited
OKLAHOMA CITY, OKLAHOMA
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Compleons Engineer
JMAR & Associates
OKLAHOMA CITY, OKLAHOMA
FULL TIME
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Operaons Engineer
Dalton Boggs & Associates
TULSA, OKLAHOMA, UNITED STATES
// Job Listings
POWERED BY: FindanOilGasJob.com
FACEBOOK.COM/OILMANMAGAZINE @OILMANMAGAZINE OILMANMAGAZINE.COM
37
The power of SPAM, and I am not talking
about emails. In the time before electronic
devices conquered the world, the word
SPAM had a different meaning. It was canned
pork, consisting of an assorted mixture of
pork pieces, and that is about all I wanted
to know about it. It really is not too bad,
in my opinion, is if it is fried, covered in
mayo and put on a sandwich. I watched my
dad for many years carry the same thing in
his lunch box. A SPAM sandwich, a bag of
potato chips, a honey bun, a thermos of
coffee, and an apple. Even as a young child
I was intrigued by the can of meat my dad
fried up for his work sandwiches. Intrigued
because it was not something that my mom
would have ever serve the family. So the only
time I saw the strange looking mixture was
when dad would fry it the night before. As
a kid I would watch him unzip the can and
plop the meat puzzle on a plate before he
sliced if for frying. I also found it amusing
that the preservative gel in the can had the
consistency of clay. I should also add that
not only would my mother not serve it to
the family she would not even fry it up for
my dad’s lunches. If he insisted on going the
SPAM route he was on his own. It was not
until I was a young teen that I ever tasted the
stuff. I worked two summers with my dad in
the Sundown Slaughter Field in West Texas,
and every day he had the same thing. Do not
misunderstand me, I have a ton of love and
respect for my dad and how he worked in
the oilelds, the addiction to SPAM was just
an intriguing part of who he was. I tried it
a few times when I started working in the
oilelds. At the age of 16 I wanted to be an
oileld man, and apparently oileld workers
carried SPAM sandwiches. Like I mentioned
it was not bad, but every day, geez it seemed
like an unusual form of self-torture. I nally
got the nerve one day to inquire from my
father about the daily SPAM sandwich. His
reply was, “son if by noon that is not the best
thing you have ever ate, then you’re just not
working hard enough”. I remember at the
time thinking I had two choices, to review
my work ethic, or nd a different lunch
meat. I came to love pickle loaf and turkey
sandwiches.
Using my experience with SPAM I was able to
lower the maintenance cost of one platform
in the Gulf of Mexico by 30%. I had to tell
the rst part to give you a background on my
experiences with SPAM. I also discovered that
SPAM was not real popular with most people.
In the Gulf of Mexico during the boom years
of the 70’s and early 80’s most of Pennzoil’s
platforms had a cook. Contract crews and
the production crews were always treated
with a good meal and a clean room. When
the prots started falling Pennzoil cut out
the cooks, however the contract crews still
expected to be cooked for and treated like
guest. During this time I took over as part
of my duties a smaller platform WC 563 that
we had reduced to being manned by a single
person for 3-4 days of the 7 day hitch. No
longer having the luxury of a cook I keep
a small food supply on the platform, and
always kept a few cans of SPAM. I loved
telling the story of my dad’s SPAM tendencies
and would occasionally fry some up out of
respect for him, especially when I had worked
hard enough to test and see if I ever reached
the plateau of work efciency of my dad’s
standards.
While on WC 563 I would have contract
crews come onboard for a few days to do
various maintenance projects. Of course they
expected to be treated like guest, and since
I was the only person on the platform they
assumed it was my duty to cook for them.
One day I served fried SPAM sandwiches,
and I was amused at the negative affect it
had on the contract crew. That is when I hit
on an idea to reduce the amount of time
any contract crew would want to stay on my
platform with me cooking for them. I started
keeping a case of SPAM on in the pantry in
the Galley and served SPAM sandwiches. I
was amazed at how quickly the contract crew
would arrive on board, complete the project
and move onto their next project. Most of
the time they were on and off before the
rst plop of the SPAM puzzle hit the skillet.
My reputation for SPAM spread through the
Gulf very quickly.
Even when I would have one of own eld
technicians come on board they always
brought their own food. The work efciency
on WC 563 took a drastic turn for the better.
The wireline parafn cutting crew became
so efcient that the job went from a two day
chore to a quick turn around from rig up to
rig down in a mere 4 hours. They were off
before the SPAM was done. Unfortunately
for me because I had actually thought I had
witness a half days work that would have
met my dad’s standards and they left before I
could test his theory.
May your boots be dry, your coffee fresh, and
your gloves new. Amen.
Steve
www.crudeoilcalendars.com
GOM Cutting Platform Maintenance Cost with SPAM
A Louisiana Legacy Expands Through Management Buyout
AMI walking Founders and KLH through the process
Atchafalaya Measurement, Inc. “AMI” is a multi-basin oileld service
company based in Scott, Louisiana. A “one stop shop” for customized
measurement systems providing SCADA (Supervisory Control And Data
Acquisition) systems, installation of measurement equipment and the
maintenance of these systems and equipment to onshore and offshore
drilling operations. AMI has a rich history in the oileld that dates back
to 1982 when the company was founded by Craig Ortego and Randy
Fontenot. After 31 years of successfully running the business, Craig
and Randy began considering retirement and monetizing the business
they worked so hard to build. They contemplated an outright sale to a
strategic buyer but were concerned that might
negatively impact the culture they had built
at AMI and the employees who had helped
them build the business. Craig and Randy
decided to offer their younger management
team the opportunity to buy the company for
a fair market value if they sourced the capital.
They approached Nick Trahan and Shane
Daigle, loyal employees and key managers of
AMI’s sales and operations, and offered the
opportunity to purchase AMI and continue
its legacy. Given that Nick and Shane did not
have the personal nancial wherewithal to
fund the transaction, capital was the only issue
standing in the way of what they wanted, and
what Craig and Randy wanted.
Nick recalled a conversation he had with Duane Donner, managing
partner of Founders Investment Banking, several years earlier when they
were introduced to one another in South Louisiana. Donner, born and
raised in Lafayette, was on a hunting trip “back home”, hosting friends
at their family duck hunting lodge. Nick, who was a friend and guest
of Duane’s brother, recalls, “I rst met Duane while catching redsh
and shooting my limit of pintails and gadwalls. Duane’s family lodge at
Cameron Meadows is one of the nest properties in South Louisiana for
duck hunting and catching redsh”.
Nick had recently been promoted to general manger of AMI, and the
company was experiencing signicant growth under his leadership. Duane
inquired about the future of the company. Nick responded that he and
fellow manager Shane Daigle had been instrumental in the company’s
recent growth and that they were very optimistic about the future.
Together, they foresaw an opportunity to purchase the company as Craig
and Randy were getting closer to retirement. Nick knew they lacked the
capital to pursue such a transaction, but Duane advised they stay in touch
and have a discussion if the opportunity presented itself.
Fast forward three years to June 2013 the company had grown
substantially and Craig and Randy were looking to pursue a transition and
cash in their chips. Nick remembered the conversation with Duane and
made the phone call to discuss how they could get the appropriate capital
to purchase the business and garner meaningful equity ownership.
Not unlike most business owners and operators, Nick and Shane were
not well versed on the ins and outs of buying a company. However, that
did not slow their entrepreneurial spirit and desire to move forward with
the opportunity. After spending some time consulting with Duane, they
learned the idea of purchasing the company
from Craig and Randy was more of a reality
than either had previously thought. Six months
later in December of 2013, Nick and Shane
became meaningful equity owners and partners
of Atchafalaya Measurement, Inc. Nick is
acting President, while Shane took on the
responsibility of Vice President.
Principals of Founders Investment Banking
worked as exclusive advisers for Nick and Shane
and guided them through a process to nd the
capital, and the right partnership and terms with
KLH Capital, a private equity rm based in
Tampa, Florida. “The Founders team provided
us with an opportunity to take our business
to the next level by teaming us up with a great
partner while gaining ownership in the process,” said Trahan. The KLH
partnership provided Craig and Randy with liquidity, allowing them to
diversify their wealth and exit the business, and giving Nick and Shane a
meaningful stake in the company.
Based in Birmingham, Alabama and with a geographical focus on the
Deep South and Texas and an industry focus on Oileld Services in
particular, Duane Donner and his team pride themselves in taking a
more personal, customized approach to the transaction process, and are
committed to cultivating long-term relationships with their clients. “This
is what we do for a living. It’s our job to understand how these markets
work and how to structure deals to allow young management teams like
Nick and Shane to realize their goals of owning a business. Most people
don’t realize their options and what’s available to them. We see people
pass on great opportunities because they aren’t reaching out and asking
questions. Our job is to advise and educate our clients to help them make
the best decisions and ultimately help them realize their aspirations,” says
Donner.
www.foundersib.com - 2204 Lakeshore Drive, Suite 425 • Birmingham, Alabama • 35209 • 205.949.2043
Oilman Magazine — Your Voice In Energy May / June 2014
38
O
ur current economic climate is
very scary at best. Today 70%
of physicians’ main concern is
future compensation. Concerns
include Obamacare, Medicare, Medicaid,
reduced insurance reimbursements, malpractice
insurance, compliance, practice management,
overhead, kids, family, college, aging parents,
retirement and oh, taxes. How do you make a
living safely and insure the long term value of
your retirement without risking a dime?
e safest and most secure move you
can make is to build a portfolio of Antique
Guns that is buried in your safe. In my humble
opinion, in 20 to 25 years when you retire, a
portfolio of Antique Guns will be worth more
than the same money in stocks, bonds, an IRA
or 401K. Some stocks and bonds have gone to
zero, right? You think Antique Guns will ever go
to zero? John Williams from Shadow Stats, for 30
years, has been exposing the hidden truth
in government economic data, minus Wall
Street & political hype, simply the bitter U.S. economic reality.
Williams thinks the U.S. systemic solvency crisis of the last
5 years is accelerating unabated. Resulting in an inevitable economic
meltdown, and hyperinationary great depression. Creating a complete
loss in the purchasing power of the U.S. and a collapse in the U.S. nancial
system. Mr. Williams timing on hyperination is 2015. All instigated by
Ben Bernankes plan to debase the dollar since 2010, QE 1, 2, 3.
We can’t print money to spend our way out of debt. World
condence in the U.S. dollar is gone, because of U.S. political failure, to x
the continued systemic insolvency of the U.S. economy. Call Now for you
FREE 75 page Hyperination Report.
Portfolios are $5,000, $10,000 or $25,000 to get
started. Call Now for FREE IRA Approved Information
Pack & 3 FREE Special Reports.
v
T
he U.S. is at a rst ever 2+ years of a
lower AA+ credit rating, from a perfect
AAA, of U.S. Treasury debt rated by
Standard & Poor’s. e uncertainty
is multiplied by a $16 trillion dollar national
debt. e budget decit hit a record $6.6 trillion
in 2012, or 42% of GDP, highest in history,
forcing the U.S. into a certain mortal long term
solvency crisis. Williams warns Hyperination
remains a virtual certainty.What should you
do?
You must secure nancial catastrophe
insurance on the value of your money. You can’t
buy ood insurance aer the ood, can you?
You insure every part of your life; why not
insure the value of your money? You are safer
to err on the side of caution than to weather
this nancial hurricane uninsured. You
wouldnt drive your car without insurance, or not
have home owners insurance, or not renew your
malpractice insurance, would you? en
doesnt it make sense to insure the value of
your money with a portfolio of Antique Guns? Call now, you will be glad
you did!
e nest Gun Portfolios of all time are the result of integrity,
intelligent direction, and skillful execution. We apply the same
concepts that made you a great physician. We have over 100 years of
combined experience with a PhD in what not to do, with our trade and
business references posted below. We are Board Certied like you are.
You have worked hard all your life, protect yourself, let us build you the
portfolio of safety and security that you have earned and your family
deserves. e only thing worse than failure is regret!
Call Now for 3 FREE Special Reports,
1)The Danger of Hyperination, 2)The Art of Gun
Making, 3)The Failure of The 401K, a complete
information pack and our new Gun Catalog. Call Now.
6640 Eastex Freeway, Suite 154 Beaumont, TX 77708
Texas Gun Collectors
Association
ATF Federally
Licensed Gun Dealer
The Mighty Prot Power of Antique Guns
Antique Guns Are Safe Secure Hard Assets
Learn How To Build A Safe Secure Retirement
Avoid Common Life Crushing Mistakes
Colts Winchesters Springeld’s Henry’s Parker Brothers
Scarce Rare Antique Guns Keep Setting Record Prices
All Guns Before 1899 No Licensing No Registration No Reporting
Private & Condential Licensed Bonded Insured By Lloyds of London
Earn Up To 25%+ Annually Investing In Antique Guns
United States Gun Exchange
1-800-859-BUY-GUNS (24/7) LIVE
We Support
Border Sheriffs
Antique Gun Investing Is A Solid Retirement Plan
Learn The Big Money Secrets of Antique Guns
Texas Family Owned 35 Yrs Experience
Licensed Bonded Insured Safer Than Stocks & Bonds
THE
UNITED STATES
GUN JOURNAL
Americas Foremost Authority on Antique Guns
Call Now To Order Your Gun Catalog