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SCT&E LNG receives DOE
approval for export
p. 39
Bill to approve Keystone
XL pipeline fails in senate
p. 30
Energy dept authorizes
Freeport LNG for export
p. 37
January / February 2015
OILMAN Magazine is a publication for
professionals in the Oil & Gas industry.
To subscribe, ll out the quick online form at
Continental completes four
Springer wells in SCOOP
p. 34
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Oilman Magazine / January-February 2015 /
- The Oil and Gas Knowledge Curve: Young Professionals in Energy
allows the torch to be passed & knowledge transfer to ourish -
By Jennifer Delony - page 24
- Q & A With Jason Spiess: Innovation -
page 40
In Every Issue
Letter from the Publisher – page 6
OILMAN Contributors – page 6
OILMAN Online // Retweets // Social Stream – page 8
Feedback: Letters from OILMAN readers – page 8
1920s West Texas: One of Halliburton’s First Vehicles – page 10
1950s Gulf of Mexico: Early Noble Drilling Offshore Rig – page 12
1920s Tulsa, Oklahoma: Brand New Equipment Showcased at Oil Exposition – page 14
A Winning Combination! Triple-play for the oil and gas industry
By Elias V. Basse III – page 19
Jessica Byrd: Make a #TwitterResolution – page 17
Mike Thomas: Oil and Natural Gas Inspection: Training, Discipline, and Maximizing Pipeline Pilum – page 18
Don Briggs: Time For a Reasonable Assessment of Oil Prices – page 20
Mark Stansberry: Eisenhower’s Energy Vision – page 22
Energy Scene: Road Trip Across America’s Shale Play – pages 44 through 47
Cartoon In Closing, Steve Burnett ( Texas Roughnecks Freeze Faster – page 50
Bill to Approve Keystone XL Pipeline Fails in Senate – page 30
Halliburton to Acquire Baker Hughes – page 30
Policy Considered for NG Modernization Cost Recovery – page 31
EPA: Oil Reserves Surpass 36bn barrels – page 32
Offshore News – page 33
Oklahoma News – pages 34 and 35
Texas News – pages 36 and 37
Louisiana News – pages 38 and 39
OILMAN Marketplace: pages 48 and 49
MARCH 17-19, 2015
ASME’s 2015 Hydraulic Fracturing Conference draws long-sought focus to the central role of mechanical engineering in shale development
and hydraulic fracturing. This dynamic three-day event will bring together leading industry manufacturers, engineers and supply chain
executives to discuss highlights, trends, and new technologies and solutions related to ‘above-ground’ stimulation equipment and the
inherent mechanical engineering involved.
Our 2015 Program is craed
with Thought Leadership
from our Executive
Advisory Commiee:
Baker Hughes Pumping Services
Baker Hughes, Inc.
BP GWO Engineering
Draper Laboratory
GE Oil & Gas Drilling and Surface
GE Oil and Gas
Marathon Oil
Shell Exploration and Production
Southwestern Energy
US Well Services LLC
Program Areas
DAY 1 Regulatory, Drilling, and Well Construction
DAY 2 Fracturing & Stimulation, Pumping, Chemistry & Logistics
DAY 3 Production Operations, Artificial Lift, Workover, and Water Management
About ASME
For more than 100 years, ASME has successfully enhanced performance and safety for the energy and piping
industries worldwide through its renowned codes and standards, conformity-assessment programs, training courses, journals,
and conferences – including the Offshore Technology Conference (OTC), the International Conference on Ocean, Offshore and Arctic
Engineering (OMAE), Turbine Technical Conference and Exposition (TURBOEXPO), and the International Pipeline Conference (IPC).
Serving Unconventional Oil & Gas: Equipment and Technologies
The American Society of Mechanical Engineers (ASME)
Philip Fusacchia
Program Manager
GE Oil & Gas
Joe Anders
Well Integrity Advisor
Bill Lane
Vice President of
Emerging Technologies
Weatherford Artificial
Lift Systems
Jeffrey Meisenhelder
Vice President,
Unconventional Resources
Philip Fusacchia
Program Manager, GE Oil & Gas
JAN. 31, 2015 –
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
6 7
Last week while visiting with my family I had a conversation with my grandpa
Charlie about many things. Inevitably, the oil industry came up as the topic of
conversation. We talked about everything from drilling technologies like hydraulic
fracturing to the future outlook of the oil and gas industry. That’s when he
buttoned up our conversation in the most perfect way. Being a farmer, he simply
said, “Well, while it’s sunny, we better make hay!”. I couldn’t stop thinking about
this comment because in just eight words he summed up the opportunity we have
here in America to control our own energy destiny.
Yes, the sharp decline in the price of oil is on everyone’s mind. The continued opposition from
critics and governing bodies is always a disappointing road block. But we are oil and gas, and we’re
American - we move forward. Make no mistake about our current situation - we are in a world-wide
battle for oil. The rest of the world cannot survive with oil prices at current levels; however, we can.
The road may be bumpy. Production levels may rise and fall, but we will survive the volatility. We
will continue to prosper, especially when the price of oil bounces back to true market value. We can
pivot. We can change strategies. We can outlast the competition. It may seem as though it’s dark and
dreary lately, but let me humbly say, it’s still very sunny - so keep making hay.
Luke McDonald
Publisher, OILMAN Magazine
Oilman Magazine, LLC
116 W Main ST
Norman, OK 73069
(800) 562-2340
Luke McDonald
(800) 562-2340 Ex. 5
Jennifer Delony
Chandler Petty
Kim Fischer
Don Briggs— LOGA President.......
David Blackmon— Managing director of the FTI
Strategic Communications.......
Mike Thomas Pipeline inspector in the northeast
region of Oklahoma.......
Mark Stansberry— Chairman of The GTD Group.......
Joseph DeWoody— President of Clear Fork Royalty, an
oil & gas royalty investment company located in
Fort Worth, Texas.......
Jessica Byrd— CEO of Clean Energy Chemicals
Steve Burnett—
Story Sloane III— The Sloane Gallery in Houston,
Texas (281) 496-2212).......
Paul Flessland— Photographic Artist,
Jason Spiess
(Controlled, free circulation to oil and gas
professionals in Louisiana, Oklahoma and Texas)
(800) 562-2340 Ex. 1
© Copyright 2015 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;
CONTRIBUTORS — Biographies
Don Briggs
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.
David Blackmon
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, focusing on public
policy issues affecting the oil and gas industry. He also writes
regular commentary for World Oil Magazine.
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.
Mark A. Stansberry
Mark Stansberry Chairman of The GTD
Group, award winning author, columnist and
radio talk show host Author of book, “America
Needs America’s Energy: Creating Together the
People’s Energy Plan”
Jessica Byrd
Jessica Byrd is the CEO of Clean Energy
Chemicals in Huntsville, TX. CEC is an
environmentally conscience global supplier
of pipeline cleaning, hydraulic fracturing and
biodegradable oil remediation products.
Joseph 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.
Steve Burnett
I was raised in a small West Texas town where
the school mascot is a roughneck. Growing up
with a roughneck as the town symbol, how could
I not spend most of my adult life working in the
petroleum industry?
I started working in the oilelds age 16. In Texas
you had to be 17 with a signed minors release from your parents,
but my parents were glad to keep me working. I had been
working since my rst job working on a commercial elephant
garlic farm at age 12. By the time I reached 16, I had enough
work experience to prove I knew how to hold my own on a work
crew. Anybody whose parents survived the great depression can
attest to the fact that their children learn the value of a solid
work ethic.
Jason Spiess
Jason Spiess is an award winning journalist, talk
show host, publisher and executive producer.
Spiess has worked in both the radio and print
industry for over 20 years. All but three years of
his professional experience, Spiess was involved in
the overall operations of the business as a principal
partner. Spiess is a North Dakota native, Fargo North Alumni
and graduate of North Dakota State University.
Spiess moved to the oil patch in 2012 living and operating
a food truck in the parking lot of Macís Hardware. In addition
to running a food truck, Spiess hosted a daily energy lifestyle
radio show from the Rolling Stove food truck. The show was
one-of-a-kind in the Bakken oil elds with diverse guest ranging
U.S. Senator Mike Enzi (WY) to the traveling roadside merchant
selling ags to the local high school football coach talking about
this weekís big game.
Paul Flessland
Paul Flessland is an editorial, event and portrait
photographer based in Fargo, North Dakota.
Featured in over fteen regional and national
publications, Flessland is passionate about visually
telling the story of the Bakkens impact on
North Dakota and the nation. Visit his website at
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
8 9
Letters from OILMAN Readers
November-December 2014
Oilman Magazine is a valuable
asset in my tool belt. The magazine
keeps me up to speed on current
events and technology that gives me
a competitive advantage in the oil
and gas industry. The information
is always interesting and never
repetitive. I would highly recommend
the magazine to anyone.
Seth Spiers,
Business Development Manager
Baker Hughes, Upstream Chemicals
U.S. Land, Dallas
Connect with OILMAN anytime at and on social media
I would like to say rst and foremost that
Oilman Magazine is about cultural identity and
preservation of our industry to help connect each
individual with what is happening in our oil and
natural gas environment. I feel your magazine
helps everyone stay informed of leadership,
innovation, inspiration, and the future of
economic development for years to come. Also,
as a Cherokee pipeliner, I believe that Anadisgoi
(A-NA’-di-s-go-I) or “what people are saying,
will impact our state and country more than ever.
Mike Thomas, MSJSA
Oklahoma Oil and Natural Gas Inspector
Pipeline Inspector | Tulsa, Oklahoma
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Oilman Magazine / January-February 2015 /
Photo courtesy of the Story Sloane Gallery - Houston, TX
View all the archives at
Oilman Magazine / January-February 2015 /
Photo courtesy of the Story Sloane Gallery - Houston, TX
View all the archives at
Polymer gel treatments can be an eective
solution in oil & gas wells aected by:
•Excessive water production
•High liing costs
•High permeability streaks or fractures
•Interwell channeling or early water
breakthrough in waterood
injection wells
•Adverse mobility ratios between
water and oil
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Booth #3029
Oilman Magazine / January-February 2015 /
Photo courtesy of the Story Sloane Gallery - Houston, TX
View all the archives at
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
16 17
Happy New Year!
I hope you and your family are having a #Safe,
#Happy and #Prosperous #NewYear! One
of the greatest aspects of the New Year is the
universal consciousness of making a resolution,
and therefore, making a change. The dictionary
denes the word resolution in two ways; A
formal expression of opinion or intention
made and a decision or determination.
The word change is dened as something
different from what it is or from what it would
be if it were left alone and also to #Transform.
Making a resolution is a #GreatWay to not only
start a new year, but also to start any month,
week or day! It inspires us to do and try new
things, meet new people, and evolve as human
beings. Even though change can be difcult at
times, it ultimately allows us to learn, grow, and
see things in a new light.
We now live in what is commonly referred to
as the #InformationEra. The way information
is readily available at our ngertips has
dramatically changed not only the way we
communicate with each other, but also how we
do business.
The development and acceleration of
technology has given us many tools to do
business more efciently and effectively.
#SocialMedia is a tool that has brought us
together by providing a platform that gives us
the ability to reach and do business with an
innite amount of people #AcrossTheWorld.
In #Honor of the New Year, I’d like to
introduce you to a few new tools that you can
add to your #TwitterToolbox.
In search of information? #Topsy is a great
tool and you dont have to be a registered
member to use it. In a sense it is Google (a
search engine) for Twitter. Type a word in
the search box and it will search all the tweets
about your topic. It is more in-depth than
simply using the Twitter search box because
it also displays the analytics that include a
trending graph. You will be able to see the
latest results for your topic over the past hour,
day, seven days, and 30 days or for all time.
The default search is set to include everything,
but you can narrow your search of information
further by clicking on links, tweets, photos,
videos or inuencers. It also displays results in
10 different languages, which allows anyone to
easily research or tap into the #GlobalMarket
in their industry. I use a translator app to read
information, industry news and posts in other
languages, as it allows me to learn new things
and #Connect with people around the world.
Need help managing your list of followers?
Twitter has guidelines, and in the beginning,
it only allows you to follow 2,000 users. Each
Twitter account is based on the ratio of
followers to people that you are following.
Once you are following 2,000 users, if you
don’t have more than 2,000 followers, you
will not be able to follow more users until you
yourself have more followers. This formula is
considered having a healthy ratio.
#Tweepi is a tool that works to keep your
account ratio healthy and helps you eliminate
people who no longer use Twitter, don’t engage
with you or dont follow you in return.
Do you have multiple Twitter accounts?
#TweetDeck could be the tool for you. It
allows you to monitor multiple timelines in
one easy interface and streams each timeline
in real time so you never miss a beat or have
to refresh. This is a great time management
tool for the multi-user, as it also allows you
to schedule tweets to be posted in the future.
If you use multiple social media platforms,
#Hootsuite is a great tool that manages all of
your accounts through one interface.
Things to Know
When do I use the Messaging Option? When
you follow someone, sometimes you will notice
that they use an auto message welcoming you as
their follower. These auto messages appear very
spammy and usually direct you to follow them
on another social media platform, direct you
to their website or a video, and at times, they
even ask you to buy something. The general
consensus of properly using the messaging
option is to only use messaging after you know
somebody and have developed a relationship
with them on your main feed. It’s important
that your Twitter is #Authentic and #Personal.
Answering all of your @ replies is extremely
important. It creates #Connections and helps
to #Build your following. If you start a Tweet
with the @ symbol, the user you are tweeting
will be the only one to see the message. Using
the @ symbol at the beginning of a Tweet is
for a direct conversation with another user.
It will show up on your home stream but not in
the main feed that everyone sees. If you want
everyone to see what you are Tweeting with
that person or business you can use another
character prior to the @ symbol such as (.) or
a (>) symbol and it will show up in the main
The secret to making your #Tweets soar this
year: Use 2 hashtags (#) per #Tweet! Using
hashtags has proven to double the audience
engagement rate! Three great Social Media
things to think about in the #NewYear:
#Growth, #Connections and #Hashtags.
*Lets #Connect! Tweet me @nvestnthefuture
or @CleanEnergyChem with your favorite
thing about #ThisNewYear!
Make a #TwitterResolution
By Jessica Byrd
Oilman Magazine / January-February 2015 /
Oil and Natural Gas Inspection: Training,
Discipline, and Maximizing Pipeline Pilum
By Mike Thomas
The assessment of training, discipline,
and leadership practices within the oil and
natural gas industry affects organizational
environments. The evaluation includes
training programs, punishments, and
various leadership approaches. At the same
time, unassailable support highlighted in
organizational behavior and emerging
leadership models may appear complacent.
The oil and natural gas leadership approaches
permeate the environment to unroil the
autonomy of technology and organizational
behavior. Based on research of the Roman
army, various management styles will
address a historic approach intertwined with
modern-day management styles to maximize
stakeholder value and increase morale
and camaraderie, which leads the way to
organizational creativity and innovation.
Training in various organizational
environments depends on coworker
camaraderie and arduous attempts to discover
human ontology. Training is broken down
into stages to arrange the employee from
beginner to intermediate to expert. The rst
stage is physical strength and stamina. What
is the use to an organization if the employee
is not able to perform multiple tasks if
stamina is not adequate?
Jim Collins writes in “How the Mighty Fall
and Why Some Companies Never Give In”
that any exceptional enterprise depends rst
and foremost upon having self- managed and
self-motivated people.
Experience is needed next to perform tasks
if appropriate training is not implemented
for the particular job the employee is hired
to do. A foundation of consistency is desired
to breakdown organizational sludge and
removes the harmful levels of organizational
sediment (inadequate training and discipline
The discipline of the oil and natural gas
industry is demanding and constantly shifting
to promote healthy organizational standards
to meet and exceed policy and procedure
variances along with revisions. Take, for
example, Mark Antony, a leader of the
Roman army and politician, who terminated
to the death every tenth man of the cohort
who knowingly allowed the adversary to take
possession or prot in any way from their
labor and apply this
mindset to present
day workers and
count how many
employees are
standing ready for
work the following
This example is
not the case now,
as organizations
may disqualify
a certication,
such as operator’s
welding qualications
(plastic or steel),
sent home, or red.
A pecunaria multo,
or better known as
docking of pay, may
be implemented to
decrease a severe
punishment, while
organizational ‘death’
may be avoided.
Jeremy Fields, area planning manager at
John Christner Trucking, said “one of the
most important items I stress is consistency.
Consistency develops muscle memory and
streamlines efciencies. I have always found
it important to train individuals to be as
consistent in their operation as possible.
This goes from leaving their phone on their
desk in the same place and all the way down
to where they position their stapler. The
less one has to commit to thinking about
the straightforward task, the more they can
commit to the task at hand.
The oil and natural gas organization now
has the opportunity to maximize leadership
behaviors, styles, and various leadership
powers by maximizing pipeline pilum.
Pilum was a Roman legionary practice
of souring a javelin of about two meters
in overall length a distance of about 20
feet to overcome the enemy to add to the
legionaries’ combat arsenal. The pilum
practice consisted of two parts: how to throw
it and how to receive it.
This technique would
improve with repetition
and eagerness to increase
one’s ability as a Roman
soldier. Pilum practice
is needed to acquire
the results of each
organizational goal while
increasing the oil and
natural gas industry talent
pool. Josh Peak with
Peak Enterprises said
to “empower and equip
people to create a culture
of innovation” will
aid the organization to
avoid the capitulation of
organizational death.
The ability to increase
strength and stamina will
lead to a fully trained
and qualied pipeline
environment consisting
of multifaceted employees
possessing the tactics
to go the distance with
consistency. Josh continued to add to the
impending opportunity of employee latitude
to create a solid foundation of organizational
The modern day pipeline employee has
the path to achieve a whole new level of
training, discipline, and ow to organizational
greatness through each identied stage.
Innovation is the next area of discussion to
correlate work approaches through arduous
implementation of organizational training,
discipline, and practice techniques.
The science behind the innovation will incur
within each oil and natural gas environment.
The energy sector would be well-served to
consider what drives the innovation while
supporting the vast area of possibilities if the
proper formation is achieved.
As technology moves with the speed of
industry, new technologies emerge to make
our lives better and better at home. One of
these is “Triple Play,” but what exactly is
it? Triple play is the combination of voice,
Internet, and television through one service.
What does this mean for the oil and gas
industry? It means seamless integration and
continuity for a company’s entire site needs,
whether they are ofces in the middle of the
ocean or ofces in the big city – including
vessels at sea!
Turnkey solutions for delivering enterprise-
class systems to company sites that
encompass all of these technologies now is
available. The blur of the lines of technology
can be somewhat of a headache, but with
turnkey solutions these become much easier
to understand, and deploy.
Telephony for Company Sites
Telephony can be full of buzz words, but
with a turnkey solution for a company’s
sites, a high-technology solution can be
custom-tailored to scale from one phone
to a million phones, allowing a company to
utilize a scalable approach to its business
and site needs as its grows. With the proven
technology of voice over internet protocol
(VoIP), the costs have come down to the
realm of affordability for almost any size
Small footprint phone systems can greatly
reduce the needs from one full rack of
equipment to one small box that can replace
entire racks of equipment. This feature also
offers a company the ability to scale as its
business expands from one site to multiple
sites. Through the use of the cutting-edge
Aeonix Platform by Tadiran, delivery of
reliable and scalable unied communications
for any organization couldn’t be any
Aeonix is one of the latest proven
solutions from a company that has
more than 50 years in telephony
services across the globe. With
more than 120,000 installations and
growing, Tadiran has a strategic
focus on reliability and scalability for
This technology can be deployed across
all avenues of connection methods,
from cellular data, VSAT, terrestrial
satellite, microwave, and wireless technologies.
This broad range of delivery changes the way
that services can be delivered.
Data for a Company’s Sites
Data technologies are becoming more
and more of a requirement for day-to-day
operations day in a business. From a simple
e-mail to a video conference with a colleague
located across the globe at another branch,
these are all applications that are moving
business from a local to a global presence.
With wide ranges of data solutions available,
such as cellular, microwave, wireless, satellite,
and terrestrial, a custom solution that can be
used for the most efcient communications is
possible. This option also allows a company
to save costs and increase the stability of daily
data needs.
Data does not just mean Internet research
anymore. With unied communications,
the lines between all of a company’s needed
systems can be integrated to make one user
friendly and cost-effective solution. E-mail,
messaging, video conferencing, shared data
repositories, and even full servers to support
critical business applications can now work
seamlessly across any data connection and live
as a cloud-offered solution.
With the support of Microsoft, the cloud
now is an affordable and turnkey solution for
all of a company’s business needs, whether
it has one employee or more than a million.
These technologies
bridge the gaps
and reduce
total operating
cost of critical
Video for a Company’s Sites
Some sites suffer from the cable TV blues,
while other sites are located in the middle
of the ocean or desert. With the advances
in technologies for delivery of television
systems, a custom solution can be delivered
from one to more than 100 channels of
video for a very affordable price. Whether a
company needs all of its sites to have access
to the latest box ofce movies, news, and
sports or the latest company training video,
there is a solution.
With IP, voice, and video through coaxial
and IP networks, a company can receive all
of its entertainment, training, and corporate
needs in one seamless system across all
sites. This option includes the use of the
innovative COM-2000 system with their
its own integrated and custom IP-delivery
technologies for delivering additional content
to those that need it most, in a seamless and
integrated system.
The whole package can be affordable
and scalable, often costing thousands less
than the older style analog systems. With
digital delivery via either coaxial or network
technology, a solution can be tailored for a
company’s needs and its sites.
Cost Savings of Triple-Play
The combinations of voice, data, and video
services can be daunting to manage across
multiple sites, vessels, and ofces, but that
does not have to be the way any longer. The
cost-effectiveness and affordability of
these high technology systems today is
Elias V. Basse III is Systems Engineer
at MidSouth Technologies.
Oilman Magazine / January-February 2015 /
A Winning Combination!
Triple-play for the oil and gas industry
By Elias V. Basse III
The discipline of
the oil and natural
gas industry is
demanding and
constantly shifting
to promote healthy
standards to meet
and exceed policy
and procedure
variances along with
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
20 21
Time For a Reasonable
Assessment of Oil Prices
By Don Briggs
It is safe to say that the hot button topic in
the oil patch is the oil price and its impact on
U.S. drilling operations. Many analysts and
talking heads are stating that the current price
drop is not affecting our U.S. market, while
others are stating just the opposite. While
it is impossible to accurately predict the
future, today, we are seeing companies indeed
restructuring their drilling budgets for 2015
due to the change in oil prices.
Right here in Louisiana, some companies,
such as Halcon and Sanchez, have already
announced reductions in their budget for
2015 in the Tuscaloosa Marine Shale (TMS)
directly due to falling oil prices. (See story,
p. 38.) Unfortunately, Louisiana is not home
to any cheap oil plays. The TMS is a good
example of an expensive play especially now
with $77 a barrel oil.
The Gulf of Mexico has already seen
companies reducing manpower and scaling
back drilling budgets for 2015. To say the
market in the U.S. is not being negatively
affected is simply not an accurate assessment
of the situation.
What is the reasoning behind this drop in
oil prices? For starters, U.S. production is up
from 5 million barrels of oil a day to right
around 8.7 million barrels a day. The Energy
Information Administration is predicting
that U.S. production will be at 9.5 million
barrels of oil a day by 2015. For a mental
comparison, this 9.5 million barrels a day
gure is the same barrel count of 1971 when
our nation reached peak oil.
How does this uptick in production cause
a fall in oil prices? As production rises and
demand does not, a simple imbalance in
the economics curve occurs. In addition
to the U.S. oil supply drastically growing,
international politics also play a role in the
rise and fall of U.S. crude oil prices.
The Organization of Petroleum Exporting
Countries (OPEC) recognizes that the U.S. is
gaining market share from them. OPEC, for
obvious reasons, wants to retain control of
the crude oil market. Saudi Arabia, a member
of the cartel and the cartel’s largest producer,
is specically making moves to retain its
market share from the U.S. Saudi Arabia, in
December 2015, lowered export prices to the
U.S. and raised its prices to other countries.
This shift caused a decline in U.S. oil prices.
This export price drop from the Saudis to
the U.S. makes drilling domestically less
nancially appealing.
As consumers are enjoying a brief bit
of relief at the gasoline pump, the larger
implications of cheap gasoline will play a
more detrimental role on the U.S. economy
should the price of oil continue to drop. So
again, as analysts are indicating everything is
still “ok” for the U.S. market, the company
executives that are cutting jobs and reducing
drilling budgets most likely do not agree with
the television commentators. Something to
keep in mind as oil prices drop is the fact
that investors are not looking to simply break
even on oil prices. These investors need an
actual return on their investment, as this is
what will keep the U.S. economy strong for
the future.
Photo by Maksim Vivtsaruk
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Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
22 23
For the past 37 years, I have been involved
in the oil and gas industry. During that
time, I have had the opportunity of
working in other outside capacities.
From 2009 to 2013, I had the honor of
serving as chairman of the 14-member
international governing board of People
to People International (PTPI) and
acting chief executive ofcer during the
spring/summer of 2013. PTPI world
headquarters is based in Kansas City, Mo.,
and has a presence in 135 countries, with
more than 80,000 families and individuals
actively participating in student and adult
U.S. President Dwight D. Eisenhower
founded PTPI during his presidency in
1956. It was an honor for me to work
with Mary Eisenhower, granddaughter of
former President Eisenhower and chief
executive ofcer and president of PTPI.
Another organization that I chair and
was founder of is the International
Energy Policy Conference. I asked Mary
to share her views and vision at the 20th
International Energy Policy Conference in
The following are Mary’s remarks
presented at that conference:
“Energy is more than an ‘American issue.
Energy is a global issue, as we are all
interconnected. It is the topic at hand,
whether we are discussing the future of
America’s energy needs, or following the
United Nations Human Development
Index, which many of you know relates
quality of life with access to energy. As
James Conca shared in Forbes, ‘The world
will not be rid of poverty, war, or terrorism
until almost everyone on earth is in the
middle class. And that requires energy.’ We
are all in this together!
Conca further stated, ‘That energy use
is one of the most accurate indicators
of what is considered prosperity and
happiness is a powerful concept. Even
more important to national security is that
energy use trends with life span, peace,
and democracy.’ Conca’s view is that it
is ‘unethical and unjust, as well as not
in our national security interests, not to
ensure that the rest of humanity achieves
prosperity and long
As we explore the
future of energy,
I hope that you
will remember that
point: we are all
When my
grandfather, U.S.
President Dwight
D. Eisenhower,
gave his famous,
Atoms for Peace’
speech in 1953, the
topic was atomic
warfare. He said,
‘Occasional pages
of history do record
the faces of the
‘great destroyers’,
but the whole book
of history reveals
mankind’s never-
ending quest for
peace and mankind’s God-given capacity
to build. It is with the book of history, and
not with isolated pages, that the United
States will ever wish to be identied. My
country wants to be constructive, not
destructive. It wants agreements, not wars,
among nations. It wants itself to live in
freedom and in the condence that the
peoples of every other nation enjoy equally
the right of choosing their own way of
life.’ So whether we are facing the specter
of atomic warfare in the 1950s or the
future of natural gas today, it is you, the
innovators and the visionaries, who will
ensure a brighter future for all.
In my role as People to People
International’s president and chief
executive ofcer, I have the great
pleasure of working to connect people
of all countries and cultures. Granddad
believed that ‘peaceful relations between
nations require understanding and mutual
respect between individuals.’ It takes
each of us, working together, to combat
misperceptions, and it will take each of
us, working together,
to address the issues of
energy in America and
beyond. We owe it to
ourselves and to each
other to address these
needs in terms beyond
today. The future wont
Future generations are
depending on us to keep
the American dream
alive. In the 1950s,
President Eisenhower
had the great vision to
construct the massive
interstate highway system
– the road system we
heavily rely on today.
With the right leadership
and vision, we can move
forward with an energy
plan much like the great
vision that President Eisenhower had with
moving forward the interstate highway
It is time we come together! The U.S.
has the immediate challenge of striving
for energy independence and global
energy security for others. It is extremely
important that the U.S. be in a strong
position of securing energy reserves
within its own boundaries. America Needs
America’s Energy!
Please let me know what you think. Go to to join the effort
or visit us on Facebook.
Eisenhower’s Energy Vision
By Mark Stansberry
“Energy is more
than an ‘American
issue.’ Energy
is a global issue,
as we are all
It is the topic at
hand, whether we
are discussing the
future of America’s
energy needs...
Rig Chats vendor management system ORGANIZES
and EDUCATES everyone in the eld and in the oce
is used in the oileld
and connecting people with reliable information
The Oil and Gas
Knowledge Curve
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
24 2524 25
Young Professionals in Energy allows
the torch to be passed & knowledge
transfer to flourish
By Jennifer Delony
There is a lot of hype in the media about a growing ‘crisis’ in the oil and gas workforce. Depending on who you
talk to and the sector you look at, the median age in the oil and gas workforce is anywhere from 45 to 60, and
many sources say more than half of the industry’s workers will be at retirement age by 2018.
Continued on next page
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
26 2726 27
Further statistics point to a gap in the available
workforce to ll the jobs that are soon to be
vacated, and industry representatives express
concern that the U.S. workforce will not have the
skills needed to ll the jobs that the expanding
oil and gas industry is creating. The greatest
fear seems to rest in the potential loss of an
extensive wealth of knowledge as workers with
30 or 40 years of experience exit the industry.
How the industry is negotiating the cultural
differences between generations to accomplish
critical knowledge transfer ultimately will dene
the oil and gas industry for decades.
Young Professionals in Perspective
For the past decade, the not-for-prot group
Young Professionals in Energy (YPE) has been
providing a necessary forum for harnessing
the opportunities for young people in the oil
and gas industry and providing a runway for
them to move up the knowledge curve to get
promotions, take on more responsibility, and
eventually run companies of their own.
Stephen Cravens, executive director of Young
Professionals in Energy, explains that this forum
“allows the torch to be passed so this knowledge
transfer can actually take place and experience
doesn’t just wear off into the ether once the
older generation retires.
YPE has more than 40,000 members worldwide
and offers networking and career development
through social, educational, and civic service
opportunities in order to facilitate the
advancement of young professionals in the
global energy industry.
Cravens, founder and CEO of Sutton Hill Co.,
co-founded YPE in 2005 with Michael Teplitsky,
a vice president at Wynnchurch Capital.
Cravens said that YPE’s events-focused mission
lls a couple of gaps for the industry that
existed in the early 2000s.
“Before YPE was formed, the special interest
groups, whether that be [The Society of
Petroleum Engineers] or the [American
Association of Professional Landmen], focused
on their own niche,” Cravens said. “The reason
that YPE has taken off is that it allows our
members to really get exceedingly competitive in
their elds.”
YPE, he explains, opens up the opportunity for
landmen to interact with investment bankers,
private equity investors to
interact with geologists,
and so on.
“That allows them to
quickly advance up the
knowledge curve so that
we can more quickly ll
the generation gap that is
endemic in our industry
and that has been so well
publicized,” Cravens said.
With its decade of service
to young people, YPE
has done more than just
provide advancement – it’s
helping build executives
and entrepreneurs,
according to Cravens.
In a cross section of
YPE’s 40,000 members,
there are a signicant
number of entrepreneurs
in any segment you want
to identify, he added.
“Junior professionals who
started coming around in
2005 and 2006 have been
a part of all these new
plays that have sprung up
around North America,”
Cravens said. “The growth
in the industry right now
and the growth in these
geographic areas that this
is taking place are less than
ten years old, so you take a
35-year-old geologist YPE
member, and he or she
may be as knowledgeable
in a particular play as
somebody who is 60 years
The way this reality has
manifested itself in the
industry, he noted, is that
YPE members, who are
executives or partners
at private equity rms,
are actually making the
decisions to acquire
companies, own them, and
grow them.
YPE’s ability to grow over
the years has been directly
linked to its location in
Houston, according to
Cravens. The organization’s
membership originates
from the many energy rms
located in the region and
radiates across the globe
from there.
“They may go from
Houston to London,
Houston to Africa, Houston
to South America, Houston
to Calgary, and it’s like they
have a void once they get
to these new places that
can really only be lled by
the networking that YPE
provides,” Cravens said.
“So they will move down
to Mexico City or they’ll be
in London, and they’ll say,
‘I need YPE in this city.
Part of my function is to
empower and set up these
leaders to have YPE thrive
in their city.”
This process of organic
growth, he added, has been
the result of “just showing
our members a good time
just in our core areas.”
Craven’s goal for every
YPE event is to “tap into
something intrinsically or
uniquely human, which is
to provide an exceptional
networking experience by
instilling a sense of comfort
and community that they
can’t get anywhere else.
A job in the energy
industry usually means
doing something very
technical or specialized in a
city that may not be where
Business Insider says is the
top ve cities where college
graduates want to move to,
he said. “The people who
self-select into this industry
do it because they love the
industry, and it’s almost like
they want to be successful
in this industry above a lot of the other factors
that maybe go into the decision making of a
YPE is trying to access this group of people who
want to establish connections and move up the
learning curve in the energy industry, but may
also experience certain barriers in the process.
“Maybe they have anxiety around walking into
a business where they don’t know anyone or
walking into a crowded venue when they don’t
know anyone,” Cravens said. “YPE has been
successful because it can grease those skids and
for the rst few minutes for a new attendee to
a YPE event, make that person feel exceedingly
comfortable to where they can then meet more
The result, he explained, becomes cyclical, as
members become advocates for the organization.
“We’ve really tapped into what their core
passions are, which is to network, and we’ve
provided an acceptable environment for
20-somethings to talk business,” he said.
In addition, YPE focuses on empowering its
“The industry is evolving in terms of more
training and making the ofce environment more
pleasant for millennials – there’s healthy snacks
and wellness programs, etc., but for the longest
time, the energy norms were such that you sat in
a dark ofce and you were just expected to do
your work,” Cravens said. “While that was how
you paid your dues over the years, what YPE
then allows is for people to come out of that
cave and come to an event where people actually
are asking you what kind of work you do.
A simple expression of interest, he added,
empowers young people to be more interested in
their work.
“When you go out with your friends who don’t
work in the industry, they don’t really understand
the technical aspects of oil and gas and they’re
not really going to be digging into what you do,”
Cravens said. “YPE provides an environment in
which people curiously and with a lot of listening
bandwidth ask you what you do.”
This external stimulus provides a “blanket of
empowerment” that allows young professionals
to be bolder with a boss, ask for more
responsibility, talk to a competitor, or consider
different roles within their organizations, he said.
YPE networking lunch in Bismark, N.D. Photo Courtesy of YPE
YPE charity event in Oklahoma city. Photo Courtesy of YPE
Saint Jude donation. Photo Courtesy of YPE
YPE Halloween party in Oklahoma City. Photo Courtesy of YPE
YPE charity golf event in Canton, Ohio. Photo Courtesy of YPE
YPE Abu Dhabi site visit. Photo Courtesy of YPE
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
28 2928 29
Advice for Young Professionals
Craven believes that young professionals can
take specic, aggressive action to demonstrate
their interest in moving up the knowledge curve
in the oil and gas industry.
“My recommendation to these people is to
contact the companies directly and lead in with
the clear concise statement that they are willing
to move to Oklahoma City or Houston or
Calgary,” he said. “Those locations are not part
of the natural ow of where top-tier or high
achieving college graduates naturally go after
He suggested that parents of high school
students consider the value of moving to
Oklahoma City or spending two to three years in
Houston, for example.
“By letting these rms in energy hubs know that
the person is already on the ground in Houston
or ready to move to Alberta will put them at the
head of the pack,” Cravens said.
Advice for CEOs
Cravens said that CEOs can
build loyalty and promote
long-term interest in oil
and gas among younger
employees in two ways.
“CEOs should over-
communicate with young
professionals,” he said. “That
is the number one thing
they can do to have these
people buy into the company and to allow them
to sound knowledgeable with their peers about
what is going on with the company.
CEOs also can pay attention to what young
people need in their physical environment
compared to the generations before them.
“They like to be in an open environment and
have more interactions throughout the day than
the prior generation of oil and gas professionals
does,” he said. “It’s important to promote
more informal interactions without disciplines
within the organization just because these junior
professionals don’t know at 23 or 24 what job
role within the company might be their best
long-term t.”
He suggested that CEOs
consider spreading their
employees out and giving
junior employees an
opportunity to get exposure
to different functions
within the
“People come out of undergrad or they start
their career thinking that jobs in oil and gas
are pretty narrow,” he said. “They need to
realize that there are these diverse crucial roles
within these rms that aren’t widely publicized.
Whether you’re the person that markets the
production of oil and gas or you review the
insurance contracts, there are all kinds of niches
within these companies.”
It’s up to the CEOs to create a forum for
interactions across functions within the
company in order to retain talent for the long
run, he said.
Texas A&M University-Kingsville
Launches Engineering Initiative
Texas A&M University-Kingsville has launched
a plan to bring Javelina Engineering to the Rio
Grande Valley.
The Rio Grande Valley Engineering Initiative
will expand engineering educational and research
programs to the Rio Grande Valley in January.
Initial offerings will include bachelor’s programs
in chemical, environmental and natural gas
engineering. Classes will be held at the A&M-
Kingsville Citrus Center in Weslaco.
While a limited amount of courses will be offered
in January, the rst round of engineering students is
expected to be admitted later this year. The initiative
will make it possible for engineering students in
Rio Grande Valley to earn a Texas A&M-Kingsville
degree from the Weslaco campus.
In related news, The Center for Continuing
Education at Texas A&M University- Kingsville
recently began offering basic courses geared at
training employees for entry-level positions in the
oil and gas industry.
As the result of an agreement with Navarro
Junior College, Texas A&M-Kingsville is teaching
these classes through ShaleNET, a program
funded through the Trade Adjustment Assistance
Community College and Career Training Grant.
The rst class was for roustabouts.
Texas Senator Celebrates Debut of Oil and Gas
Mobile Classroom
Texas State Senator Judith Zafrini recently joined
state, local and Coastal Bend College (CBC) ofcials
in celebrating the debut of the college’s new mobile
Process Technology trailer, which will provide
hands-on experience for students interested in
pursuing careers in the oil and gas industry.
The trailer and equipment will allow CBC to
provide top-quality training not only at its campus
in Beeville and sites in Alice, Kingsville and
Pleasanton, but also at the high schools in 14 rural
counties, where the college offers dual-enrollment
programs. Participating students will receive
instruction in areas including programmable logic
controllers, petroleum instrumentation, oil and gas
electricity and electrical power instruction.
“I am delighted that this equipment will help
expand higher education opportunities in South
Texas and the Coastal Bend,” said Senator Zafrini
during the launch celebration. “What’s more, this
mobile classroom will allow more high school
students to explore careers in the oil and gas
industry while gaining valuable hands-on experience
and earning college credit.
The purchase of the trailer and equipment was
made possible by a $347,548 grant from the state’s
Jobs and Education for Texans grant program. As a
member of the Senate Finance Committee, Zafrini
secured $25 million for the program in 2009 and an
additional $10 million in 2013.
South Texas Establishes Oil & Gas Law
South Texas College of Law/Houston recently
established the regions rst Oil & Gas Law
Institute, an initiative to address the growing legal
needs in the energy industry through a wide-ranging
regimen of courses, projects, symposia, advocacy
and scholarship.
Located in downtown Houston, the law school
has been educating and preparing practice-
ready graduates to serve the energy industry for
decades. The institute will build extensively on
this experience through expanded educational and
training classes, programs and opportunities, and by
promoting oil and gas legal scholarship pertaining
to industry practice in Texas and beyond.
“With the U.S. in the midst of an historic energy
transformation and Houston at the heart of it,
South Texas College of Law knew it was the right
time to establish the Oil & and Gas Law Institute,”
said President and Dean Donald J. Guter in a
statement. “Our goal is to be the national leader
in oil and gas law education. The needs are great,
and we believe there is no better place to have this
institute than at South Texas College of Law in
downtown Houston.
The institute will seek to respond to the specic,
practical needs of law rms and the energy industry
and provide students the education and training
they need to make immediate contributions to the
oil and gas industry.
The college has selected Christopher Kulander, a
visiting associate professor, as the initial director
of the Institute. Kulander, who taught oil and gas
law for three years at Texas Tech University, is
Of Counsel at Haynes and Boone, LLP, is a legal
writer, works as an expert witness, and frequently
gives presentations and speeches about the oil and
gas industry. He also will represent the institute at
various oil and gas events in Texas and throughout
the nation.
“South Texas has a unique opportunity to be
the leading law school for educating and training
practice-ready graduates in the oil and gas industry,
and that is attractive to potential employers,
Kulander said in a statement. “The workforce
needs of the oil and gas industry continue to grow,
particularly in the legal arena. South Texas fully
understands this fact and is prepared to address
those demands through the institute’s diverse
classes and programs.
The Institute will concentrate on developing applied
petroleum-related transactional, title and regulatory
practice skills. Kulander said one of his main
goals is to make the third year in law school much
more specialty-focused and practice-responsive. In
addition, the institute will seek to place advanced
students in the legal departments of oil and gas
companies around Houston. Future areas of study
will include international petroleum transactions,
midstream and downstream oil and gas activities,
and other sources of energy.
Additionally, the institute will produce and promote
signicant scholarships related to the oil and gas
legal business, and the institute may partner with
other educational institutions and policy institutes
to help lead public discourse on topics pertaining
to the oil and gas industry and the energy sector
With a planned advisory board comprised of
representatives from the energy industry, academia
and regulatory and legislative agencies, the institute
also will sponsor policy papers and public symposia
on specic current issues.
YPE Houston Clay Shoot for a Cause.
Photo Courtesy of YPE
YPE innovation summit in Israel. Photo Courtesy of YPE
Stephen Cravens, Executive Director, Young Professionals in Energy. Stephen
coordinates global YPE operations and leads efforts to empower leadership at the
local level. He works currently as founder and CEO of Sutton Hill Co., a provider
of investor relations and talent acquisition services to private equity rms. Prior
to founding Sutton Hill, Stephen led the global fund analytics practice at Cogent
Partners, where he called on the world’s largest and most sophisticated pension
funds, endowments and foundations. He is a native of Dallas.
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
30 31
Bill to Approve Keystone XL
Pipeline Fails in Senate
Policy Considered for NG
Modernization Cost Recovery
Halliburton Co. and Baker Hughes Inc. have
reached a denitive agreement, under which
Halliburton will acquire all the outstanding
shares of Baker Hughes in a stock and cash
“We are pleased to announce this combination
with Baker Hughes, which will create a
bellwether global oileld services company and
offer compelling benets for the stockholders,
customers and other stakeholders of Baker
Hughes and Halliburton,” said Dave Lesar,
chairman and chief executive ofcer of
Halliburton. “The transaction will combine the
companies’ product and service capabilities
to deliver an unsurpassed depth and breadth
of solutions to our customers, creating a
Houston-based global oileld services champion,
manufacturing and exporting technologies, and
creating jobs and serving customers around the
The transaction is valued at $78.62 per Baker
Hughes share, representing an equity value
of $34.6 billion and enterprise value of $38
billion, based on Halliburton’s closing price on
Nov. 12, 2014. Upon the completion of the
transaction, Baker Hughes stockholders will own
approximately 36% of the combined company.
The transaction is subject to approvals from each
company’s stockholders, regulatory approvals
and customary closing conditions.
Halliburton to Acquire Baker Hughes
The U.S. Senate on Nov. 18, 2014, fell short of
passing a bill introduced by Sen. John Hoeven
(R-N.D.) to approve the Keystone XL Pipeline
by a vote of 59 to 41. On Nov. 14, 2014, the
U.S. House of Representatives passed the bill
by a vote of 252-161.
“Today, we did not gain the 60 votes necessary
in the Senate to pass my bill to approve the
Keystone XL pipeline,” Hoeven said in a Nov.
18 statement. “Even had it passed, however,
President Obama has indicated that he intends
to veto the bill. I believe we will have the votes
to pass the bill in January when a number of
new Senators who support my legislation take
ofce and the new Congress begins.
Hoeven said he may reintroduce the bill as part
of a broader energy package or appropriations
bill that the president will not want to veto.
TransCanada on May 4, 2012, led an
application with the Department of State to
build the 1,179-mile Keystone XL pipeline
project from Hardisty, Alberta., to Steele City,
Keystone XL would allow oil producers in
Canada and the northern U.S. to access rening
markets in the Midwest and Gulf Coast by
connecting to the Cushing Extension and Gulf
Coast pipeline. –
The Federal Energy Regulatory Commission
(FERC) in November 2014 asked for public
comments on a proposed policy statement that
would allow interstate natural gas pipelines
to recover, through surcharge or tracker
mechanisms, certain capital expenditures made
to modernize pipeline system infrastructure
to enhance reliability, safety, and regulatory
As a result of regulatory reforms by the Pipeline
and Hazardous Materials Safety Administration,
interstate pipelines likely will face new standards
requiring signicant capital cost expenditures
to enhance the safety and reliability of their
systems. Under recent Environmental Protection
Agency initiatives, they also may face increased
environmental monitoring and compliance costs,
as well as a need to replace or repair existing
compressors and other facilities.
The proposed policy statement is meant to
ensure that existing FERC ratemaking policies
do not create barriers to the ability of pipelines
to expedite needed or required upgrades and
improvements. In addition to allowing recovery
of modernization costs, FERC may consider
capital costs to replace compressor facilities
or make other improvements in response
to increased federal or state environmental
regulations as eligible for inclusion in the
Under the proposed policy statement, a pipeline
seeking a cost-recovery surcharge would have to
meet ve standards:
The pipeline’s base rates must have been
recently reviewed through a rate proceeding
or through a collaborative effort between the
pipeline and its customers
Eligible costs must be limited to one-time
capital costs incurred to meet safety or
environmental regulations, and the pipeline
must specically identify each capital
investment to be recovered by the surcharge
Captive customers must be protected from
cost shifts if the pipeline loses shippers or
increases discounts to retain business
There must be a periodic review to ensure
rates remain just and reasonable
The pipeline must work collaboratively
with shippers to seek their support for any
surcharge proposal
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Steele City
Jefferson City
Keystone Pipeline:
Hardisty to Steele City, Wood River & Patoka
Wood River
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
32 33
Chevron Makes Offshore Oil Discovery
in Wilcox Sands
Hess Plans Offshore Development
of Stampede
Repsol Discovers Oil Offshore at León
EPA: Oil Reserves Surpass 36bn barrels
The U.S. Energy Information
Administration (EIA) in December
reported that U.S. crude oil and
lease condensate proved reserves
rose for the fth consecutive year
in 2013, increasing by 9% from the
2012 level to 36.5 billion barrels.
According to the “U.S. Crude Oil
and Natural Gas Proved Reserves,
2013” report, U.S. crude oil and
lease condensate proved reserves
surpassed 36 billion barrels for the
rst time since 1975.
The EIA reported that North
Dakota had the largest increase
(1.9 billion barrels, 51%) in oil
reserves among individual states in
2013, based on development of the
Bakken/Three Forks formation in
the Williston Basin. With 5.7 billion
barrels of proved reserves, North
Dakota has more reserves than the
federal offshore waters of the Gulf
of Mexico.
Texas remains the leading state
in total proved oil reserves, with
an 8% increase in reserves from
11.1 billion barrels in 2012 to 12
billion barrels in 2013, according
to the report. In addition, the EIA
found that the largest decline of
2013 was in Alaska, where proved
reserves decreased by 454 million
barrels, due mainly to reduced well
performance at large existing oil
Chevron has made a new oil discovery at its
Guadalupe prospect in the deepwater U.S.
Gulf of Mexico.
“Chevron subsidiaries are among the top producers
and leaseholders in the Gulf of Mexico, averaging
net daily production of 143,000 barrels of crude
oil, 347 million cubic feet of natural gas, and 15,000
barrels of natural gas liquids during 2013,” said Jeff
Shellebarger, president, Chevron North America
Exploration and Production Co. “The company
expects additional Gulf of Mexico production
from the Tubular Bells and Jack/St. Malo
projects by the end of the year.”
The Keathley Canyon Block 10 Well No. 1
encountered signicant oil pay in the Lower
Tertiary Wilcox Sands. The well is located
approximately 180 miles off the Louisiana coast
in 3,992 feet of water and was drilled to a depth
of 30,173 feet.
Hess Corp., together with its project co-
owners, plans to proceed with the development
of Stampede, an oil and gas project in the
deepwater U.S. Gulf of Mexico.
Discovered in 2005, the Stampede Field is
located approximately 115 miles south of
Fourchon, La., in the Gulf of Mexico (Green
Canyon Blocks 468, 511 and 512). The eld is
located in approximately 3,500 feet of water,
with a reservoir depth of 30,000 feet. The plan
initially calls for six subsea production wells and
four water injection wells from two subsea drill
centers tied back to a tension leg platform. A
two-rig drilling program is planned, with the rst
rig commencing operations later this year. First
production is expected in 2018.
The processing capacity for the project is
approximately 80,000 barrels of oil per day
and 100,000 barrels of water injection capacity
per day. Total estimated recoverable resources
for Stampede are estimated in the range
of 300 million to 350 million barrels of oil
equivalent. The development is estimated to cost
approximately $6 billion.
Hess has a 25% working interest in the project
and is the project operator. Union Oil Co.,
a Chevron subsidiary, Statoil, and Nexen
Petroleum Offshore U.S.A. Inc. each have a 25%
working interest.
Repsol has made a new oil discovery in the U.S.
Gulf of Mexico. The company made the nd
about 218 miles from the Louisiana coast in an
ultra-deep water well named León, located in the
Keathley Canyon 642 block.
The well found about 492 feet of net oil pay
within a column of over 1,312 feet. The well
was drilled in water just over one mile deep, and
reached a total depth of about six miles, making
it one of the deepest wells operated by the
Repsol has a 60% participation in the license,
with Colombia-based Ecopetrol holding the
remaining 40%.
Photo by JCV
Photo by Kathy Hicks
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
34 35
Continental Completes Four Springer
Wells in SCOOP
Continental Resources, Inc., has completed
four oil wells in its Springer play in the
South Central Oklahoma Oil Province
“Four new wells further conrm the
repeatability and growth potential of
Continental’s new discovery, the Springer
play in SCOOP,” said Harold G. Hamm,
chairman and chief
executive ofcer of
Continental. “These
individual delineation
wells in the play are
generating excellent
returns, with shallow
decline rates compared
to other unconventional
resource plays. We
expect to realize even
stronger well economics
as development drilling
gets underway utilizing
extended laterals, pad
drilling, and other
drilling and completion
The four new wells had
an average horizontal
lateral length of
approximately 4,475
feet. Continental expects
estimated ultimate
recovery of 940,000
gross barrels of oil
equivalent (Boe) per
well in the oil fairway
of the play for a well
with a 4,500-foot lateral
section. In November
2014, Continental
commenced drilling its
rst extended lateral
well in the Springer play,
with a planned lateral
length of 7,500 feet.
The company expects
an average estimated
ultimate recovery of
approximately 1.6
million gross Boe
for extended lateral wells of this length,
reecting the 67% longer lateral.
Continental’s current Springer production is
approximately 9,200 gross Boe per day, of
which approximately 70% is crude oil.
The four new wells in Grady County, Okla.,
The Nancy J 1-28H well with an initial
24-hour production test rate of 1,815
Boe, with 79% of the initial production
being crude oil
The AC Walters 1-27H with an initial
24-hour test rate of 1,630 Boe, of which
78% was crude oil
The Schoof 1-17H with an initial 24-
hour production of 1,465 Boe, of which
74% was crude oil
The Ince 1-21H with an initial 24-hour
production test rate of 1,037 Boe, of
which 86% was crude oil
Plains All American to Build Pipeline
from Duncan to Longview
Plains All American Pipeline, LP, plans to
construct a new 226-mile, 16-inch pipeline
originating from the Plains Basin pipeline
system at Duncan, Okla., and largely
following an existing Plains right-of-way to
Longview, Texas. The pipeline is supported
by long-term commitments and is expected
to be completed by the
second quarter of 2016.
The new pipeline will also
have access to Cushing-
sourced crude oil through
connections with the Plains
Cherokee and Red River
pipeline systems. Capacity
for the pipeline will be
approximately 150,000
barrels per day (bpd) of
WTI crude oil, and the
pipeline will have the ability
to deliver crude oil to local
reneries in Oklahoma and
in East Texas, and to the
Plains Longview terminal,
which is connected to third-
party pipelines. As part of
the project, capacity for
an existing Plains pipeline
system from Longview
to Shreveport will be
increased from 40,000 bpd
to 80,000 bpd with a joint
venture partner.
Continental Joint Venture
to Develop Northwest
Cana Woodford Shale
Continental Resources, Inc.,
has formed a joint venture
with a wholly owned U.S.
subsidiary of South Korea-
based SK E&S Co. Ltd to
jointly develop a portion
of Continental’s Northwest
Cana Woodford natural gas
assets, primarily in Blaine
and Dewey counties, Okla.
Continental sold a 49.9%
interest in approximately 44,000 net acres in
the Northwest Cana area of the Anadarko
Woodford Shale play, including interests in
37 producing wells, for total consideration
of approximately $360 million. Continental
received $90 million at closing, and SK has
committed to pay an additional $270 million
to carry 50% of Continental’s remaining share
of future drilling and completion costs.
The companies’ joint development agreement
establishes an area of mutual interest in
Northwest Cana and certain incentives for
the joint venture to expand its leasehold
position. Continental will be the operator for
all current and future wells that are operated
by the joint venture. The company began
drilling in the AMI during November 2014,
with four operated rigs running by the end of
the year.
Monarch Launches Open Season
Monarch Oil Pipeline, LLC, a subsidiary of
Monarch Natural Gas Holdings, LLC, on
Dec. 1, 2014, launched an open season to
solicit capacity commitments from shippers
for a new crude oil pipeline system that will
be constructed to gather and transport crude
oil in interstate commerce from production
areas in Hemphill and Lipscomb counties,
Texas, to Plains Pipeline, LP’s, Reydon Station
located in Roger Mills County, Okla., with
the potential for expansion to other regional
The new pipeline system will be divided
into two primary components, an upstream
gathering system to transport crude oil from
the production areas to the Casey Station,
an operational terminal and storage facility
in Section 161 in Lipscomb County, Texas,
and an 8-inch mainline pipeline that will
transport crude oil from the Casey Station to
the Reydon Station interconnect. Monarch
projects an initial capacity of 30,000 barrels
of crude oil per day on both components,
but is open to negotiations to increase the
pipeline capacity and/or alter its conguration
to meet market needs.
The open season ends Jan. 30.
American Energy Minerals Raises $500m
American Energy Minerals Holdings, LLC, an
afliate of American Energy Partners, LP, has
raised $500 million in equity commitments
to pursue a business plan focused on the
acquisition of minerals and overriding royalty
interests across targeted high-return onshore
basins in the U.S.
The equity commitment was provided by
AEMN’s private equity sponsor, Houston-
based The Energy & Minerals Group, with
additional equity provided by American
Energy Partners others. The rst $350 million
closing will be used to acquire 28,000 net
mineral acres and 29,000 acres of ORRIs
across the the Woodford Shale in Oklahoma
as well as Ohio’s Utica Shale, the Marcellus
Shale in Pennsylvania and West Virginia, and
the Permian Basin in Texas.
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
36 37
Railroad Commission Amends
Disposal Well Rules
The Railroad Commission of Texas
(RRC) has adopted disposal well rule
amendments designed to address disposal
well operations in areas of historical or
future seismic activity. Disposal wells are
permitted by the RRC to dispose of non-
hazardous produced water and hydraulic
fracture owback uid from oil and gas
“These disposal rule amendments
represent the fourth signicant rule
amendments over the last three years,”
Commissioner Barry Smitherman said in
an Oct. 28, 2014, statement. “Our rst in
the nation hydraulic fracturing chemical
disclosure rule, our water recycling rules,
our rule amendments relating to well
integrity and construction requirements,
and now this seismic-related rule,
maintain the [RRC’s] commitment to best
practices for the industries we oversee.”
The main components of the adopted
rule amendments are:
Requiring applicants for new disposal
wells to conduct a search of the U.S.
Geological Survey seismic database for
historical earthquakes within a circular
area of 100 square miles around a
proposed, new disposal well
Clarifying the RRC staff authority
to modify, suspend or terminate
a disposal well permit, including
modifying disposal volumes and
pressures or shutting in a well if
scientic data indicates a disposal well
is likely to be or determined to be
contributing to seismic activity
Allowing RRC staff to require
operators to disclose the current
annually reported volumes and
pressures on a more frequent basis
if staff determines a need for this
Allowing RRC staff to require an
applicant for a disposal well permit
to provide additional information,
including pressure front boundary
calculations, to demonstrate that
disposal uids will remain conned
if the well is to be located in an area
where conditions exist that may
increase the risk that the uids may not
be conned
The amendments became
effective on Nov. 17,
TXOGA, Land Ofce
File Suits against City
of Denton
The Texas Oil & Gas
Association and the
Texas General Land
Ofce on Nov. 5,
2014, led lawsuits
in Denton County
and Travis County,
respectively, against the
City of Denton, Texas,
in response to voter
passage on Nov. 4, 2014,
of a town ordinance
banning hydraulic
fracturing. According to
the TXOGA, the ban is
inconsistent with state
law and violates the
Texas Constitution. The
TXOGA said that while
home-rule cities may
regulate some aspects
of exploration and
drilling, TXOGA does
not believe that they may
enact ordinances that
outlaw conduct, such as
hydraulic fracturing, that
has been approved and regulated by state
In a Nov. 5, 2014, statement about
the ban, Railroad Commission of
Texas Chairman Christi Craddick said
the charges delegated to the Railroad
Commission of Texas are to manage the
safe and responsible production of the
state’s natural resources.
“We have ensured that our state has an
exemplary environmental and public
safety record,” Craddick said. “That
record has fostered unprecedented
economic growth and job creation. It is
my goal that every community in Texas
not only understands that they are safe,
but they are the beneciaries of our
regulatory expertise.
The City of Denton on Dec. 1, 2014,
led its answers to the petition, claiming
that environmental conditions in Denton
that are caused by hydraulic fracturing
“constitute a public nuisance, which
may be abated and future occurrences
prevented by the city under its regulatory
powers.” –
Plains All American to Acquire
Interest in BridgeTex
Plains All American Pipeline, LP (PAA)
has entered into a denitive purchase
and sale agreement with Occidental
Petroleum Corp. for the purchase by
PAA of Occidental’s 50% interest in
BridgeTex Pipeline Co. for approximately
$1.1 billion.
The BridgeTex pipeline is a new 300,000
barrel-per-day crude oil pipeline system
that extends from Colorado City in West
Texas to Texas City. At Colorado City,
the BridgeTex pipeline is connected
to PAAs Basin Pipeline System as well
as PAAs Sunrise Pipeline. The Sunrise
Pipeline originates in Midland.
Approximately 80% of the BridgeTex
pipeline’s capacity is committed to long
term contracts with a volume weighted
average tenor of 9.5 years. The remaining
50% interest in BridgeTex is owned by
Magellan Midstream Partners, LP, the
operator of the pipeline.
BridgeTex also has agreed to sell the
southern segment of the pipeline system,
which runs from Houston to Texas City
to Magellan.
Energy Department
Authorizes Freeport
LNG for Export
The U.S. Department
of Energy (DOE)
has issued two nal
authorizations for
Freeport LNG
Expansion, LP, and
FLNG Liquefaction,
LLC, to export
domestically produced
liqueed natural gas
(LNG) to countries
that do not have a
free trade agreement
with the U.S. The
Freeport LNG terminal
in Quintana Island,
Texas, is authorized to
export LNG up to the
equivalent of 1.4 billion
standard cubic feet per
day (Bcf/d) of natural
gas and 0.4 Bcf/d, for a
total authorized volume
of 1.8 Bcf/d, for a
period of 20 years.
According to the DOE,
federal law requires
approval of natural gas
exports to countries that have an FTA
with the U.S., and for countries that do
not have an FTA with the U.S, the Natural
Gas Act directs the DOE to grant export
authorizations unless it nds that the
proposed exports “will not be consistent
with the public interest.
Partnership to Build NGL Pipeline
Lone Star NGL, LLC, a partnership
of Energy Transfer Partners, LP, and
Regency Energy Partners, L.P., plan to
construct a 533-mile, 24- and 30-inch
natural gas liquids (NGL) pipeline from
the Permian Basin to Mont Belvieu,
Texas. In addition, Lone Star will convert
the existing 12-inch West Texas NGL
pipeline into crude oil/condensate
service. The new pipeline and conversion
projects, estimated to cost between $1.5
billion and $1.8 billion, are expected to be
operational by third quarter of 2016 and
rst quarter of 2017, respectively.
The new pipeline is being built to
accommodate Lone Star’s contracted
NGL transportation volumes that will
exceed the partnership’s existing 290,000
barrels per day of capacity from the
Permian Basin by 2016. The 24-inch
pipeline will initially be sized to transport
375,000 barrels per day from the Permian
Basin to Bosque County, Texas, while
the 30-inch pipeline is currently sized to
transport 495,000 barrels per day from
Bosque County to Mont Belvieu, Texas.
Lone Star’s West Texas NGL pipeline
runs from the Midland area to the Gulf
Coast and will be sized to ship 70,000
barrels per day to Corsicana, Texas, and
100,000 barrels per day to Sour Lake,
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
38 39
Louisiana Voters Approve
Amendment 8
Voters in Louisiana on Nov. 4, 2014,
approved Amendment 8, the Louisiana
Articial Reef Development Fund
Protection, by a vote of 758,142 to
The legislatively referred constitutional
amendment establishes constitutional
protection for the Articial Reef
Development Fund (ARDF). According
to the Louisiana Legislative Fiscal Ofce
(LFO), the original fund was statutorily
dedicated and not constitutionally
protected, so funds could be “swept”
to cover budget shortfalls in other state
agencies. Approximately $46 million was
swept to cover state budget shortfalls
over the past few scal years, leaving a
$12.5 million balance in the fund, the
LFO said.
The ARDF relies on donations and
grants from oil and gas companies. Once
an oil platform is no longer productive,
it can be donated to the state and
converted to an articial reef instead of
being disassembled and removed. The
company donates half of the realized
savings from not disassembling the
platform to the state in order to maintain
the fund. In addition to the articial reef
creation, up to 10% of donations can
be used to support the wild-caught sh
certication program and another 10%
can be applied toward enhancement
projects for shery habitats.
The amendment creates constitutional
protection ensuring funding can only be
used for ARDF purposes, making the
fund inaccessible to use for addressing
budget shortfalls for other agencies and
The bill was sponsored in the legislature
by State Senator Bret Allain as Senate Bill
128. –
Venture Global to Develop LNG
Export Facility
Venture Global LNG is developing
a liqueed natural gas export facility,
called the Calcasieu Pass Project, in
southwestern Louisiana.
The U.S. Department of Energy (DOE)
authorized the Calcasieu Pass Project to
export 10 million tonnes per annum of
LNG to countries that have a free trade
agreement with the U.S. Additionally,
the project is seeking authorization from
both the Federal Energy Regulatory
Commission and the DOE to export 10
million tonnes per annum of LNG to
non-FTA countries.
“Venture Global’s investment of $4.25
billion in Louisiana is the latest in an
impressive series of projects here in
southwest Louisiana that showcase our
state’s tremendous energy infrastructure
and our outstanding workforce,
Louisiana Governor Bobby Jindal said.
“Cameron Parish affords the company
great access to both natural gas supplies
and deep-water access for shipping LNG
to customers around the world. With
billions of dollars in new investment
for projects like Venture Global LNG,
Louisiana is moving forward with
next-generation energy infrastructure to
connect to world markets and to create
the best jobs for the future.
The export facility will be located on 203
acres along the Calcasieu Ship Channel,
where it meets the Gulf of Mexico.
The plant will operate with a midscale,
modular technology to capitalize on
low-cost natural gas production under
the direction of a top management
team, including energy, engineering and
nancial experts.
Located south of Lake Charles, La.,
the Calcasieu Pass Project will be built,
operated and manufactured in Louisiana
and will create 1,500 construction jobs,
326 indirect jobs, and 100 permanent
jobs for the community.
The timeline for the project includes the
regulatory and government ling process
and securing commercial agreements
through 2016, with operations beginning
in late 2019.
Halcon Scales Back In Tuscaloosa
Marine Shale
Halcon Resources told investors during
a Nov. 11, 2014, earnings call that it will
be scaling back drilling in the Tuscaloosa
Marine Shale in southeast
Louisiana and southwest
Mississippi due to falling
oil prices.
“[Regarding the]
Tuscaloosa Marine Shale,
I’m going to do my
darndest to make sure
that people understand
that we’re highly
condent and we like
the play,” said Halcon
Chairman and Chief
Executive Ofcer Floyd
Wilson. “There is a lot
of oil there, but it’s an
early-stage development
project. The core of
the play has plenty of
commercial locations,
however, it is currently a
relatively high-cost play,
and with currently low
crude prices, we will not
be devoting a signicant
portion of our resources
to the Tuscaloosa Marine
Shale in the near term.
We don’t have any lease
issues we care about.
The company said that it
plans to pull its two rigs
from the shale and focus
on growing its prospects
in the Williston Basin in
North Dakota and Montana and the El
Halcon Basin in eastern Texas.
Earlier this year, the company secured
investments to expand operations in the
Tuscaloosa Marine Shale. The company
announced in June its plan to spud 10 to
12 operated wells in the shale, running
an average of two rigs in 2014. The
company signed an agreement with
afliates of Apollo Global Management
for an investment of up to $400 million
to support Halcon’s efforts. –
J-W to Acquire BHP’s Northern
Louisiana Properties
J-W Operating Co. will acquire oil and
gas properties in northern Louisiana
from BHP Billiton. The properties
are located in the Elm Grove and
38 39
Caspiana elds and include interests
in approximately 1,200 wellbores and
associated gathering lines and compressor
facilities. By the addition of approximately
700 active wells that are producing in the
Cotton Valley formation, a conventional
oil and gas eld, the acquisition will result
in a signicant and immediate increase
in production. The acquisition does not
include any of BHP’s unconventional
Haynesville Shale assets.
“This acquisition will t perfectly into
our existing portfolio in the Elm Grove
and Caspiana elds and will increase our
holdings by over 200 BCF in proven
reserves,” said J-W President Tony Meyer.
“Our evaluation suggests the potential for
horizontal drilling opportunities as well
as increased value through rework of the
existing infrastructure.
The companies did not disclose the terms
of the transaction.
Apache Sells O&G Assets for $1.4bn
Apache Corp. has agreed to sell non-core
southern Louisiana oil and gas assets
along with other assets for approximately
$1.4 billion in two separate transactions.
In southern Louisiana, Apache agreed to
sell its working interest in approximately
90,000 net acres. These mature elds,
which are characterized by high decline
rates and short reserve lives, produced
approximately 21,000 barrel of oil
equivalent (BOE) per day (62% gas and
NGLs) net to Apache during the third
quarter of 2014. Apache will retain its
275,000 mineral acres in south Louisiana.
In a related transaction, Apache agreed
to sell approximately 115,000 net acres
in a portion of its Stiles Ranch eld
in Wheeler County, Texas, and in its
Mocane- Laverne and Verden elds in
western Oklahoma. Net production from
these properties averaged 26,000 BOE
per day (83% gas and NGLs) during the
third quarter of 2014.
SCT&E LNG Receives DOE
Approval for Export
SCT&E LNG has received authorization
from the Department of Energy (DOE)
to export liqueed natural gas (LNG)
for 30 years to countries that hold a free
trade agreement with the U.S.
The DOE conducted a review of the
application to export LNG from the
future SCT&E LNG export terminal
and determined that the exports are in
the public interest. From its proposed
246 acre LNG project site on Monkey
Island in Cameron Parish, La., SCT&E
LNG plans to liquefy approximately 1.6
billion cubic feet of natural gas per day to
produce approximately 12 million metric
tons per annum (mtpa) of domestically
produced LNG.
“We are extremely pleased with the
DOE’s approval at this time,” SCT&E
LNG CEO Greg Michaels said in a
statement. “Those that are concerned
about climate change should also be
extremely pleased with this approval. This
project will be a substantial component
to the international transition from the
burning of traditional dirty fuels to clean
burning natural gas.
At the next stage of the project, SCT&E
LNG will seek approval from the Federal
Energy Regulatory Commission for
siting, construction, and operation of its
LNG facilities. A nal regulatory step
will involve approval from the DOE
for export authorization of 12 mtpa to
non-free trade countries SCT&E LNG is
currently in the process of developing a
$40 million private offering for investment
into the company. After the private
offering is complete, the plans to have an
initial public offering (IPO).
Traveling across the country attending BBQs,
press conferences, county fairs and other
energy-fueled events, you run into quite a cast
of characters. In addition to the personalities,
the scenery can be breathtaking as well. Whether
your cup of tea is checking out oil rigs, rubbing
shoulders with chief executive ofcers or
enjoying the landscape of the Rocky Mountains,
road tripping across these shale plays opens your
eyes to how busy 2015 will be.
U.S. Rep. Kevin Cramer (R-ND) on the
emerging Unmanned Aerial Systems
(UAS) industry
North Dakota, Alaska, Nevada, New York, Texas
and Virginia were the states selected to research
integrating UAS into the general population. U.S.
Rep. Kevin Cramer sees the Bakken as a potential
home for UAS activity, however, establishing the
ground rules will take some time.
“I think it will happen. North Dakota was picked
[as a test site] for a number of reasons, not the
Q & A with Jason Spiess: Innovation
least of which is the tremendous cooperation
between all levels of government and the private
sector,” Cramer said. “Of course the intellectual
and academic assets that we have, the diversity
of our geography and our climate certainly are
reasons, but another big reason is we have such a
sophisticated precision agriculture culture in North
Dakota, and we have this energy sector where you
know the monitoring, for example, of the pipelines
is a very important safety component.
Cramer added there are additional factors to
consider when discussing UAS and industry.
“Today, manned aircrafts travel and y over
our pipelines and infrastructure to make sure
everything is working the way it is supposed to be
working and to detect any problems early,” Cramer
said. “The advantage of unmanned aircrafts or
remote piloted vehicles is that they can stay in the
air much longer, y much closer, record everything.
It’s really tremendous technology when used right,
and I think North Dakota is the perfect place to
test it rst because we do things right.
Travis Jordan, President, MT Rig Mat,
Charlo, Mont.
“The 2009 recession left a glut of unemployed
electricians in our area,” Jordan said. “Actually
anything that dealt with building or construction
was hit hard. Even the logging industry was hit
pretty hard. I had to reinvent myself, my business,
with keeping my faith and family values intact. I
couldn’t ship a wired house, and I saw a need for
the rig mats. We had a group of certied welders
and electricians hungry for work, so we set out
to build a quality product by dedicated and hard
working professionals.
Since then, MT Rig Mat has grown their little
business to a real viable asset to oil elds and the
Charlo community. MT Rig Mat started out small
by shipping mats to North Dakota and Montana,
according to Jordan. Since then, the company has
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
40 4140 41
U.S. Rep. Kevin Cramer (R-ND) on the emerging Unmanned Aerial Systems (UAS) industry
Travis Jordan, president, MT Rig Mat, Charlo, MT
U.S. Rep. Kevin Cramer (R-ND) on the emerging
Unmanned Aerial Systems (UAS) industry
Lynn Helms, Director, North Dakota Department of Minerals
Matt Rose, Executive Chairman, BNSF
Karen Alderman Harbert, President and Chief Executive Ofcer of the U.S. Chamber of Commerce’s Institute for 21st
Century Energy (Institute)
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
42 4342 43
grown to be able to ship all over the U.S. and
even into Canada and Australia.
During the early days, Jordan, like many, had to
solve some unforeseen problems with the ever-
changing energy industry.
“In the beginning we saw our competitors’ mats
breaking, and we saw some of our rig mats
getting broken,” Jordan said. “We knew this was
something bigger than a couple of tweaks. We
knew we had to make it stronger and better, so
we hired a structural engineering rm to get
load ratings for everything we did. There has
been a lot of talk about using CLT for mats
lately. We had this engineered and found that our
improved design is now 19 times stronger than
using CLT, so we keep building our improved
design. It is important to not just believe
everything you hear!”
Karen Alderman Harbert, President and
Chief Executive Ofcer of the U.S. Chamber
of Commerce’s Institute for 21st Century
Energy (Institute)
Harbert believes the innovators and
entrepreneurs that are actively seeking new
technical information and applying it to
traditional applications are driving our country’s
economic rebound.
“There is no other industry in the nation today
that is higher tech than the energy industry,
Harbert said. “ET is the new IT. You look at the
amount of change and the pace of change and
the scale of change of what the energy industry
has been able to unlock and getting more out
of everything. The rocks haven’t changed.
They’ve been here for millions of years. Our
technology advanced so quickly to get at things
unbeknownst to us just a couple of years ago.
Lynn Helms, Director, North Dakota
Department of Minerals
“The Bakken changes everything,” Helms said.
“It has changed your life and will continue to
change your life. We know where the edges of
the Bakken are. We’ve also completed what I call
the ‘homesteading’ phase. In 2012, we had 218
rigs chasing leasehold all across the Bakken play
trying to de-risk that leasehold. Those rigs would
pick up and move 150 miles at the drop of a hat.
It was completely random and chaotic in terms
of all of our thinking. As we enter the harvest
phase it is going to be much more like a combine
moving up and down a eld mowing those heads
of wheat down or those stocks of corn down as
we process and harvest this crude oil.”
Helms also had some words of advice for
anyone looking at the Bakken in 2015.
“The big message I have for operators or the people
working in the oil patch in North Dakota is that
you have to think out ve generations,” Helms
said. “By the time we get back to 100,000 barrels
a day, which is where we started all this, it will be
your grandchildrens grandchildren who will be
coming together for annual meetings. So as you
drive somewhere today, or deliver a barrel of oil to
a pipeline or test a meter, you need to be thinking
about your grandchildrens grandchildren. And that
doesn’t include any enhanced oil recovery. That
includes the recovery of about 10 to 15 barrels out
of every 100 from this massive resource that lies
underneath our feet. It only encompasses a 10% to
15% recovery factor of those barrels of crude oil.
Matt Rose, Executive Chairman, BNSF
BNSF has committed $5 billion dollars to the
rail system throughout the United States. The
level of investment from BNSF indicates the
country’s distribution backbone will take on new
logistical opportunities.
“That’s the largest investment and record of
anytime ever for any railroad in the United
States and the free world,” Rose said. “In 2013,
all rail units grew by 800,000. Our railroad
alone accounted for half of that. That is really
Rose continued to contextualize.
“That’s the 4 million ties we have to put in each
year, the 350 miles of track we have to replace,
he said.
Phil Fusacchia, GE Oil & Gas Program
Manager of the Last Mile Fueling
The GE Last Mile Fueling solution is a fully
integrated natural gas fueling system developed
in a joint venture partnership with Ferus Natural
Gas Fuels. Fusacchia leads the commercial
development of natural gas fueling networks for
high horsepower applications, particularly the
upstream oil and gas, rail, mining and marine
markets for the GE and Ferus joint venture.
“We go out to different cities in the country,
even throughout the world, and deploy different
equipment, whether it is C&C machines or
3-D printers, just ways that enables backyard
tinkerers and entrepreneurs get their hands on
equipment they wouldn’t have readily available
or access to,” Fusacchia said. “It releases the
inner entrepreneur and inner innovator that
allow ideas and concepts to come organically
or locally to solve local problems. When you
come into an area and you have local solutions
to local problems, it really opens up minds and
Phil Fusacchia, GE Oil & Gas Program Manager of the Last Mile Fueling. Photo by GE Oil & Gas
Mt Rig Mat started small, shipping mats to North Dakota and Montana Mt Rig Mat has grown to be able to ship all over the United States and even into Canada and Australia
Last Mile Fueling solution is a fully-integrated natural gas
fueling system developed in a joint venture partnership with
Ferus Natural Gas Fuels. Photo by GE Oil & Gas
Oilman Magazine / January-February 2015 /
Oilman Magazine / January-February 2015 /
Energy Scene:
Road Trip Across Americas Shale Play
Words By Jason Spiess
From the tiny town of Charlo high in the mountains of Montana, MT Rig Mats president Travis Jordan gets ready to ship some of his company’s product
Harold Hamm (left) CEO, Continental Resources and Jim Volker (right) CEO, Whiting Petroleum
participate together on a panel discussion at the Williston Basin Petroleum Conference
The morning sun shines a light on the relationship with agriculture and energy near a Nabor’s well pad
Texas Flying Legends joined the Million Barrels, Million Thanks celebration in Tioga, N.D. Host of the
party and Bakken geologist Kathy Neset (back to the camera) seen thanking the Texas Flying Legends
Agassiz Chemical’s Steve Hareland (middle) poses with Nabor’s Tyson Olsen
(left), rig manager, and Greg Burquist (right), drill superintendent, on a
Nabor’s well pad
MT Rig Mats Espresso and Coffee break room with locally roasted mountain
Oilman Magazine / January-February 2015 /
Oilman Magazine / January-February 2015 /
A stack of mats from MT Rig Mats enjoying one last day of mountain air before being shipped to the Eagle Ford in Texas
A shipping barge at the Port of Vancouver Belle Fourche, S.D., Mayor Gary Hendrickson and then-interim economic development director Jim Doolittle pose in front of their community’s investment into a multi-million-dollar
industrial rail park. Belle Fourche currently sees more trafc on Highway 85 than there is on I-90
A wide-angle shot of the Port of Vancouver
Target Logistics CEO Brian Lash (left) talks with multimedia journalist Jason Spiess (right)
First batch of liqueed natural gas produced from North Dakota LNG plant in
Tioga, N.D.
Ron Ness, president, North Dakota Petroleum Council,
holds up a saucer-size commemorative coin at the
Million Barrels, Million Thanks celebration in Tioga,
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
48 49
Oilman Marketplace...........For advertising information call 800-562-2340 ex. 1, 8am-5pm CST OR EMAIL ADVERTISING@OILMANMAGAZINE.COM
Oilman Marketplace...........For advertising information call 800-562-2340 ex. 1, 8am-5pm CST OR EMAIL ADVERTISING@OILMANMAGAZINE.COM
3190 Highway 30 W, Box # 8758
Huntsville, TX 77340
Ph: 936-439-4319
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)
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.
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onControl
24 Hour Emergency Response: (800) 482-6765
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.
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-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.
Fire & Safety Specialists
7701 Johnston Street
PO Box 60639
Lafayee LA 70596
Phone: 337.993.9377
Fax: 337.216.9721
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.
Wet Tech Energy, Inc.
4598 Woodlawn Road
Maurice, LA 70555
Ph: (337) 893-9992
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.
Dupré Logiscs, LLC
201 Energy Parkway
Lafayee, LA 70508
Sales/Markeng: 855-686-5478
Corporate Informaon: 855-686-5478
Website: www.DupreLogis
Email: forwardthinking@duprelogis
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.
Aberdeen, Houston, Louisiana
Ph: 855-364-5650
Established in 1992, QTEC has gained a strong track-
record by providing objecve, unbiased technical
recommendaons to oil and gas operators and
drilling contractors worldwide.
Haggard ID Wiper, Inc.
Houston, TX
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.
Winn Rock LLC
Highway 84 West
Winneld, LA 71483
4 Miles West of Winneld
Oce: (318) 628-3523
We at Winn Rock are proud of the history that
surrounds us. Just four miles west of Winneld,
Louisiana’s mber capital, there have been aggregate
removal operaons in place at our locaon for over
a century. First, limestone was produced, which was
used for roads crisscrossing the state during and aer
Huey Longs involvement in transportaon. In 1952,
when the limestone ran out, mining switched to
gypsum, which was used as a retardant to control the
curing me in cement. Eventually digging reached
massive reserves of anhydrite, which has proven to
make the best and longest lasng roads in the state.
Parish Truck Sales
New Orleans
10459 Airline
St. Rose, LA70087
(I-130 Exit 2-Kenner)
MAIN: 504-467-9630
WATTS: 800-969-6225
1101 Doyle Melacon Ext
Breaux Bridge, LA 70517
(I-10 East Exit 109 South)
MAIN: 337-442-1600
WATTS: 877-237-0448
3G Manifold L.L.C.
Elk City, Ok 73644
Allen Young
Cell: 580.799.5479
Joe White
Cell: 580.799.5475
Dean Fitzgerald
Cell: 580.243.8526
3G Manifold L.L.C. is bringing something new to the
oileld and frac’ing industry. We have developed
a system that signicantly reduces the possibility
of leaks where the joints of manifold are secured
together. The use of 150 series raised face anges
combined with a rubber gasket allows us to prevent
the spillage of uid on well locaons. We provide 12
inch sucon manifold that will allow you to pump
uids at rates above 100 bbl/min on oil and gas wells.
We are based out of Elk City, Oklahoma; which allows
us to service the Eastern Texas Panhandle and the
state of Oklahoma. 3G Manifold is able to go almost
anywhere you need our services.
MidSouth Technologies
1219 Crescent Ave. Lockport, LA 70374
Contact Name: Jamie Guidry
Ph. 985.242.5100
Fax: 985.242.5150
Website: hp://
Facebook: hps://
Twier: hps://twi
YouTube: hps://
For more than 11 years, MidSouth Technologies has
provided technology services to businesses around
the world. Its team is trained and cered to manage
the complexity of any system, with experience in
VSAT Communicaons, An-Piracy & Security, Vessel
Tracking (AIS), IT Infrastructure aboard vessels & port
facilies, Satellite TV (DIRECTV), CCTV & DVR, and Port
Security. MidSouth’s broad knowledge base allows it
to integrate exisng systems with new and emerging
ones. With a clear understanding of the needs and
possibilies of the marime and oil & gas industry,
they have the soluons for you. Located in Lockport,
La, MidSouth is “Solving Problems, Exceeding
Paradigm Partners
1500 S. Dairy Ashford, Suite 240
Houston, Texas 77077
Craig LaGrappe, Sales Director
Ph. (281) 558-7100 x102
Mike McCorkle, Account Manager
Ph. (281) 558-7100 x120
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.
Oilman Magazine / January-February 2015 / Oilman Magazine / January-February 2015 /
50 51
Texas Roughnecks Freeze Faster
By Steve Burnett
A couple of things came into play for this
cartoon. Somebody from the oilelds of
North Dakota suggested I do some weather-
related cartoons. I thought this was a good
idea, although I had trouble getting a handle
on it. I felt like the comment was valid and
that perhaps I had slighted the oilelds in the
extreme colder climates, unintentionally I assure
you. It is a little difcult to write and cartoon
about something that you have no experience
with. On a few occasions, I worked with my
dad on the old Citco leases at night to unfreeze
water-ood lines during 11 degree weather. I
also went to New Mexico and got caught in
a driving snow storm laying a ow line and
catching up on other chores at the Apace #1
while working part-time weekends when I was
in high school. Both of these experiences were
a major inuence on my decision to pursue my
oileld career in the Gulf of Mexico. However,
I did not feel they gave me enough insight into
cartooning the Bakken.
Recently, I heard a speaker from CCI Inc.
with extensive experience in the oilelds of
North Dakota. He talked about some of the
challenges and mentioned that the wolves were
starting to become a problem at night. That
got my attention, although my only experience
with anything like that is the coyotes of West
Texas. Coyotes in West Texas are not exactly
intimidating looking creatures. They are scrawny,
underfeed, and about the size of an Australian
Shepherd dog. Mostly scavengers, they are lucky
if they can take down a winded jackrabbit. They
keep the road kill and dead livestock cleaned up
so well that there are no buzzards in West Texas.
So my original cartoon was going to be about
the Wolves of the North Dakota oileld.
While researching stories about the oilelds of
North Dakota, I came across an interview with
an oileld man of the Dakotas, and he talked
about keeping the employees warm in extreme
cold weather. He said “some men freeze faster
than others.” I found that comment amusing.
He also told the story of some hands driving up
from Texas. They never even made it to the rig
before they quit, he said. Apparently, their truck
got stuck in the snow. After digging the truck
out, they decided they had enough. They quit
and went back to Texas without even making
it to the rig. I thought to myself, they must
have frozen faster than the locals. Bingo! This
cartoon was born.
May your boots be dry, your coffee fresh, and
your gloves new. Kybree.
Steve Burnett
MARCH 17-19, 2015
ASME’s 2015 Hydraulic Fracturing Conference draws long-sought focus to the central role of mechanical engineering in shale development
and hydraulic fracturing. This dynamic three-day event will bring together leading industry manufacturers, engineers and supply chain
executives to discuss highlights, trends, and new technologies and solutions related to ‘above-ground’ stimulation equipment and the
inherent mechanical engineering involved.
Our 2015 Program is craed
with Thought Leadership
from our Executive
Advisory Commiee:
Baker Hughes Pumping Services
Baker Hughes, Inc.
BP GWO Engineering
Draper Laboratory
GE Oil & Gas Drilling and Surface
GE Oil and Gas
Marathon Oil
Shell Exploration and Production
Southwestern Energy
US Well Services LLC
Program Areas
DAY 1 Regulatory, Drilling, and Well Construction
DAY 2 Fracturing & Stimulation, Pumping, Chemistry & Logistics
DAY 3 Production Operations, Artificial Lift, Workover, and Water Management
About ASME
For more than 100 years, ASME has successfully enhanced performance and safety for the energy and piping
industries worldwide through its renowned codes and standards, conformity-assessment programs, training courses, journals,
and conferences – including the Offshore Technology Conference (OTC), the International Conference on Ocean, Offshore and Arctic
Engineering (OMAE), Turbine Technical Conference and Exposition (TURBOEXPO), and the International Pipeline Conference (IPC).
Serving Unconventional Oil & Gas: Equipment and Technologies
The American Society of Mechanical Engineers (ASME)
Philip Fusacchia
Program Manager
GE Oil & Gas
Joe Anders
Well Integrity Advisor
Bill Lane
Vice President of
Emerging Technologies
Weatherford Artificial
Lift Systems
Jeffrey Meisenhelder
Vice President,
Unconventional Resources
Philip Fusacchia
Program Manager, GE Oil & Gas
JAN. 31, 2015 –