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March / April 2015
OILMAN Magazine is a publication for
professionals in the Oil & Gas industry.
To subscribe, ll out the quick online form at
Helis Receives State Permit for
Tuscaloosa Well
p. 40
Senate Committee Hears
Testimony on S.33
p. 32
FERC Authorizes Liquefaction
Project, Pipeline
p. 38
Bills Seek to Amend Municipal
Powers over O&G
p. 36
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Laying Down
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Oilman Ad March 2015 pg5.pdf 5 2/25/15 10:43 AM
Superior Design and Application Engineering
from the
Pioneers of Fiberglass Rods
Corporate Office
610 Main Street
(432) 264-7500
Fax (432) 714-4723
Plant Office
3408 E. 11th Place Ext.
(432) 517-4145
Fax (432) 517-4528
Oklahoma Office
(405) Superod
Kansas Sales
South Texas Sales
Laying Down
that ESP?
Are you
when pricing
your Rods?
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Oilman Magazine / March-April 2015 /
 
By Mike Schepper - page 16
- Jobs Growth in Oil & Gas -
By Jennifer Delony - page 22
 
Oilman Magazine / January-February 2015 /
Each month I speak with several hundred companies as part of our ad sales efforts here
at OILMAN, from large E&P companies to independent service companies. As you can
imagine, over the last two months there’s been a consistent theme across the board -
uncertainty and fear. Both of which are understandable with the sharp decline in the price
of oil. When your business and jobs are on the line, it’s easy to feel like the industry is falling
off a cliff. Because of this I do quite a bit of research on the history of the oil and gas
market to reassure our potential customers of two things: 1) the market has gone through
dips before, and 2) each time we’ve taken a ride down, it’s been followed by a climb back up.
Most recently, a climb that entered a bull market within 12 months of bouncing. For a reference, here is a graphic
of the price of WTI Crude since 2002. I keep this graphic next to my computer as a constant reminder to focus
our magazine as well as our customers to position for the climb up. Right now, a lot of capital is on the sidelines
but that won’t last long. Do your potential customers know who you are or how your products and services
are better than your competitor’s? Here at OILMAN we work to provide our customers with as much value as
possible in an effort to separate ourselves from other magazines and win business. We recently implemented a
data retrieval function that provides our advertisers with information
on how their ads are performing so they can either keep or change their
promotional message. This took most of Q4 2014 to complete and
requires a lot of sweat equity to contact potential customers to let them
know it’s available and included in our advertising packages. And it has
already started to pay dividends, both in sales and in building relationships.
To sum it up, now is the time to position yourself for the inevitable
market climb back up. Where will your
company be next month or next year?
With every marketing message you
create, and each sales call you make,
keep pushing forward - and be bold.
 
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.......
Mike Thomas Pipeline inspector in the northeast
region of Oklahoma.......
Mark Stansberry Chairman of The GTD Group.......
Joseph DeWoodyPresident 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 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.
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 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 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.
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 Bakken’s impact
on North Dakota and the nation. Visit his
website at paul
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.
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
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.
Oilman Magazine / January-February 2015 /
Oilman Magazine / January-February 2015 /
Letters from OILMAN Readers
January-February 2015
Keep up the good work you folks do in representing
our industry and joining us in hoping we get thru this
“oil-price slump” soon!
Charley Britt, Product Development
Anchor Drilling Fluids | Minden, LA
Selling in the oileld is about developing and
nurturing relationships. Using the phone and email
is ne but only when a person has established a
face-to-face relationship. This is the only way trust
can be built. Just this morning, I had a customer call
with a SCADA radio issue and my company didn’t
sell them this particular product, but my contact
knew I would provide him customer service. I then
tracked down someone from the factory that had
been dealing with the issue and put the two together,
which resolved the issue. This is the kind of thing a
company needs to do for continuing to develop and
nurture customer relationships. I applaud the fellow
(see the article on page 16 by Mike Schepper) that
took three months to dive into the Eagle Ford area
to see what was going on and how he could develop
Bill Parker, Sales Rep., KC5UZE
Nalcom Wireless Comm., Inc. | Lindale Ofce
I enjoy receiving my email version of Oilman
magazine every week. It keeps me updated with
current news in the industry, and I really like the
photos from years past.
Kevin Knight, Sales Manager
Vita International | Houston, TX
As a relatively new subscriber to Oilman magazine,
I am trying to learn about this industry as it pertains
to regions of the country that are thriving. With the
prices of oil falling so much, I am concerned about
the effect on companies in oil and gas. Because
I provide equipment loans, this slowdown may
affect me because of how much equipment will
be purchased. That denitely hurts lenders who
provide that capital. I also search through Oilman to
nd various equipment manufacturer advertisers to
connect with.
Rosanne Wilson, CLP, BPB
1st Independent Leasing, Inc. | Beaverton
Oilman Magazine / January-February 2015 /
Is there a true metric that can completely
identify the unbiased reliability of a product
or even a company as a whole? For as long
as the oil and gas industry has been evolving,
there have been key performance indicators
(KPI) that have helped dictate the decision to
use a product or even continue its existence in
the market.
Without sparking a debate on who has
the best metric or KPI to give the best
recommendation on true reliability, let’s agree
it will be an ever-growing debate between
what’s fair and what’s true. When you look at
consumer products you see websites such as
Consumer Reports, Angie’s List, and Amazon
that provide reviews from the people who
actually use the product. All these companies
rely on the end user of the products to leave
feedback, and this approach helps convince
the consumer to make informed decisions to
purchase the product or not. How many times
have companies drilled a well and said, “Now
that we know that, how can we do it better
and at less cost?
While we can all agree that there are always
areas to improve, we have to stop and ask,
“What if we could use true end user data to
identify what product or tool is the best t?”
After all, the data we obtain from service
providers is their information that they have
collected and presented. Ask yourself this,
do you always trust a car
salesperson or do you
look at the review from
previous owners and
reviewing companies?
With Rig Chat, end users
in the eld or in the ofce
can leave reviews both by
name and anonymously,
thus giving companies the ability to see what
really provides value in true performance.
“Rig Chat provides oil and gas companies
with the ability to understand their markets
and services so they can improve reliability
and reduce costs by managing vendors and
understanding the markets view on products
and services,” Rig Chat co-founder Steven
Plake said. “No longer do companies have
to make decisions without truly dening the
value before they go down hole.”
In addition to crowd sourced reviews, Rig
Chat is opening the market to
create a communication system
that allows people in the eld
to talk with people in the ofce
and vice versa. It’s not just what
is written in a review and given a
“thumbs up” rating that counts
– it is also the ability to learn
what is truly needed when supply
chain, nance, engineering or
executive management is making a decision.
“We strive on our ability to provide a system
that can extend an education for the new
generations and a communication window for
the experienced,” Plake said.
So where does reliability and performance
measuring come in? These metrics are where
the decisions are based for the operator and
the reputation for the service provider is
on the line. Rig Chat creates a secure virtual
world for the operator and the provider to
manage the major gaps that can help in times
that are most needed – when oil drops and
decisions have to be cost-effective to maintain
protability. Keeping your AFE’s on track
is always crucial for a project, weather the
market is up or down.
Ask yourself, “What if I could have unbiased
ratings and reviews on a product or a service
before I deploy it in the eld?” Is your budget
worth the risk of not making an informed
Mary Faucett is the Public Relations Director
for Rig Chat.
Reliability and Performance:
What is the right way to judge a
product by its presentation?
By Mary Faucett
 
Oilman Magazine / March-April 2015 /
Photo courtesy of the Story Sloane Gallery - Houston, TX
View all the archives at
The risk factor has always been a part of our industry. It certainly was back in the old days and it still is today. Through each incident we have
courageously moved forward, developing safer procedures and technologies.
Oilman Magazine / March-April 2015 /
Photo courtesy of the Story Sloane Gallery - Houston, TX
View all the archives at
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Oilman Magazine / March-April 2015 /
Photo courtesy of the Story Sloane Gallery - Houston, TX
View all the archives at
Oilman Magazine / March-April 2015 /
Three months ago, I made the decision
to pack my bags, rent out my house and
move to the Eagle Ford Shale area to do
sales and on-the-ground marketing in the
oilelds. Before I left, I wrote an article
about marketing in the oilelds for Oilman
magazine, which you may have read. This is a
follow-up on what I have learned in the last
three months, and hopefully it will provide
some insight into selling to the oilelds.
The rst thing you should know is practical:
nothing is ever close. Traveling from one
town to the next might take 45 minutes. The
roads are rutted due to all the semi-trucks,
trailers and trafc, and travelers drive 80
mph on these small roads. You’ll be driving
for hours, so plan ahead to schedule your
locations, routes and travel days.
Next, some of what you see in the region is
an illusion: an illusion of wealth, status or
company success. Money and success are
not transparent in most of Texas – as you
might see in other places, such as California,
Washington or New York. If you do not
know the little things to be on the watch
for, you could end up foolishly walking away
from a great lead or connection.
Lastly, your new sales and connections will
not happen next to a rig site, a strategic seat
at a football game, a business meeting or at
an expo. Your leads and sales will happen
over coffee in the morning at a local café or
at a dive bar made of tin that might have one
jukebox and no tables. Outward appearances
will deceive you. Remember, everyone has
something to offer.
You are going to do a lot of driving. Get
used to it. In smaller oileld towns, such as
Cuero, Yorktown, Kenedy, and Alice, you
will drive through the main road and think
you have seen the entire town. Even though
most of the oileld support companies and
satellite branches will be on the main roads,
I have seen several companies located on
dirt roads and small county roads that you
Marketing & Sales in the Oilfields:
Three Months of Traveling, Illusions & Beer
By Mike Schepper
Oilman Magazine / March-April 2015 /
would not otherwise consider checking. As for
larger cities, such as San Antonio, Houston,
and Dallas/Fort Worth, I wish you good
luck. Houston takes a full hour to cross and
is jammed with companies, trafc and people.
Most the companies in the smaller towns are
not listed on the internet and some don’t even
have physical addresses. Finding them is a task
in itself.
One of the main things people in this region
want from you is presence. The people are not
interested in a guy who shows up, looks out
of place and disappears after a week. They
want to see that you are embedding yourself
in the community or at least see you stop
by a few times. When folks found out that
I actually packed up and moved to the area,
they were more receptive about who I was
and why I had come to Texas. Make yourself
seen a lot for several months before you
expect a warm reception.
We should all know better than to judge
a book by its cover, but it’s a mistake that
people make. In the oilelds, a huge amount
of money is made and spent. You might not
see all of it initially.
My rst surprise encounter was a beat-up
old warehouse on a fenced lot I passed while
driving to Beeville. The building was rusted,
patched together and looked abandoned. The
company name and phone number had been
painted on a plywood sign in the front of the
building. I remember thinking it would be a
small shop with just a few employees that was
likely not generating any substantial revenue. I
thought I’d go in and see what they did.
Inside, the ofce was not fancy. The business
turned out to be a fabrication shop. They weld
trucks, tanks, and specialized piping for oil
companies. The yard was full of equipment,
trucks and pipes. I sat down with the owner
and talked to him about how they were
doing nancially. They did several million in
business this past year and were growing. I
told him that when I rst pulled up, I thought
they would be a small, struggling business.
He told me they were too busy to upgrade
the building. The trucks and equipment in the
yard were extras and they pay cash for all their
new equipment. Everyone in the area knew of
their company, so they did not feel like they
needed to market or hang up big fancy signs.
I thanked him for the education and left my
I learned that money isn’t ashed here.
You cannot gauge success or growth
by appearance. That twenty-something
roustabout sitting at the bar with a shiny (or
dusty) new truck in the parking lot? He has no
debt and pays for everything with cash. Yep,
he will say, “it’s paid for, along with the boat
attached to the back of it.” He will sit and
chat with you all night about shing and drink
cheap beer.
The older gentleman I saw every morning
during my rst month here, wearing the
same jacket and old leather cowboy boots at
the coffee shop, who would ask me, “Where
you off to today?” each morning? He owns
several hundred acres of land dotted with oil
rigs and is well-known in the community and
oil industry.
You have to come here with an open mind
and the ability to listen to people. Don’t be
articial. Notice the little things and take
the time to talk with everyone and hear
their stories. If you rush, you will end up
missing several opportunities and leads, not
to mention missing an opportunity to make
some good friends.
Local bars, cafés and restaurants are hotspots
for leads, direction and sales. Once people in
the community get to know you, they want to
help you.
When I rst arrived in Texas, I stayed in a
motel for the rst month. The oilelds are
spread out, and I didnt want to be tied into
an apartment lease without knowing where
I would be traveling day to day. (In fact, I’m
bringing down a travel trailer this month
because I found out I needed to become more
mobile.) Next to the motel is a little café, and
every morning as I bought coffee there, I
would see the cook come out and staple that
day’s lunch special in front of the café.
The café is located by the shing docks, and
after a few days, I mentioned to the cook
that if he posted them on the corner, all the
people going to the docks would see the sign
and possibly come in. What can I say? I’m
always marketing.
The next day I suggested something else.
Eventually, he asked me what I did for a living
and I told him about my career in nancial
sales in the oilelds and that I had been in
marketing and design for a few years. As it
turns out, he wasn’t the cook; he was the
owner. The café was a fun little side business
and his main business was located in Victoria,
where he had 12 welding trucks and several
oileld contracts.
I told him I was having a hard time reaching
other small contracting companies like his and
asked if he could give me some direction. I
have remained friends with him for the last
several months. This same type of thing has
happened to me lately in a few of the local
bars. It takes time for people in the area to
accept you, but if they do, they will look out
for you.
In Texas, people sh, hunt, go out, dance and
drink a lot of beer. You will see them in small
cafés and restaurants in the morning and local
bars at night or on the weekends. You want
to make connections? Be where they are. Do
the same things they do. Don’t rush your
conversations, listen carefully and try to think
of a way to help them out.
A few things to remember before you go to
The internet connections are horrible in the
small towns, and most of the companies
arent listed online anyway – plan on
traveling to seek them out
• The trucks drive fast down country roads,
and they won’t slow down for you
• The drive to anyplace worth going to will
take longer than 30 minutes
• Southern hospitality is a custom, and has
nothing to do with whether someone likes
you or not
• Embed yourself into the community
• Learn to hunt, sh, or boat or do something
active that lets you identify with the locals
• Dont rush – Nothing here moves fast
except the trafc
• Carry a koozie, because the beer is always
on ice, and it’s cheap
Oilman Magazine / March-April 2015 /
Haynesville Shale Could See
Increase in Activity
By Don Briggs
The hot topic around the world continues
to be the falling price of oil. Yes, oil prices
have fallen more than $60 over the last few
months. The stock market has seen points
fall off the board, operating companies
have reduced drilling budgets for 2015, the
workforce has experienced some cutbacks
and the general consumer is experiencing $2
Thankfully, Louisiana has more to offer than
just oil. Louisiana is home to the second
largest natural gas eld in the country. At one
point, the Haynesville Shale of Northwest
Louisiana was the most productive eld in
the U.S. However, the Haynesville Shale has
seen its fair share of decline over the last
three years.
Once peaked at 139 rigs in 2010, the
Haynesville sits at around 20 rigs today.
The Haynesville, in addition to other large
natural gas elds, caused the U.S. supply of
natural gas to skyrocket, while demand lagged
behind. This caused a simple economics
curve price drop. Natural gas fell from $13
down to around $1.80 in
2012. So, while the oil market is seeing its
rst signicant drop in several years, the
natural gas market is a seasoned veteran to
these price uctuations.
How does this oil price drop affect the
Haynesville Shale? As companies are
evaluating their budgets, some operators
might decide that drilling for natural gas
is more protable than $44 oil. Comstock
Resources has announced that they will be
moving rigs from different oil plays back into
the Haynesville Shale. (See Louisiana News at
a Glance, p. 38.)
While the drop in oil prices can cause
operators to consider drilling for natural
gas, three other factors continue to cause
demand to rise in the natural gas market and
thus keep the Haynesville Shale relevant.
First, the completion of the rst U.S. based
liqueed natural gas (LNG) exporting facility
will come online later this year. Second,
Louisiana continues to see a growth trend in
the manufacturing sector as dozens of new
facilities are relocating to Louisiana. Third,
several coal- powered electric plants are
converting to natural gas-red facilities.
Cheniere Energy’s $20 billion LNG export
plant, opening in the fourth quarter of
2015, will have the capability of exporting
3 billion cubic feet of natural gas per day.
Several other LNG exporting facilities have
announced construction projects in Louisiana
as well.
In addition to LNG exporting, Louisiana is
experiencing a manufacturing renaissance.
Up to $100 billion in economic development
commitments have been made to Louisiana
over the next three to ve years. As our is to
a baker, so natural gas is the feedstock to this
petro-chemical and manufacturing sector.
Finally, due to the abundance of clean
burning natural gas, numerous coal- powered
electric plants around the country will soon
be natural gas-red facilities. This conversion
process takes about a year to complete and
costs about $1 billion.
Again, with those factors driving demand
for natural gas, drills will be turning in the
Haynesville for many years to come, but only
time will truly tell how the price of oil will
specically affect the Haynesville Shale.
Oilman Magazine / March-April 2015 /
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Oilman Magazine / March-April 2015 /
On Dec. 4, 2013, at the South Texas
Wildcatters Association in San Antonio, I
launched the energy education campaign
“It’s Time to Tell Our Story!” based upon
my book “America Needs America’s
Energy: Creating Together the People’s
Energy Plan!” The message has been
delivered through radio interviews in more
than 30 states and 150 radio stations, a
weekly radio show, weekly column/blog,
speeches throughout the U.S., op-eds,
newspaper interviews, and other media
The message is clear that the oil and gas
industry needs to tell the story. The oil
and gas industry must effectively tell “our
Future generations are depending on us
to keep the American dream alive. We are
the ones who will have to do it, because
our societal institutions have proven they
are not up to the task. It is time to take
a stand, evaluate our own impact on our
nation, and play our part in preserving our
Though we are now facing a downturn
in oil and natural gas activity, it is time
to maximize our efforts in telling our
important story. Demand will increase, and
we need to be ready.
It is time to tell our story:
The oil and gas industry has made and is
making a tremendous impact – our energy
industry for decades has provided energy
security and jobs, and contributed funds
for scholarships, schools, hospitals, and
many other causes
According to an IHS study, the shale play
alone has created more than 2 million
direct and indirect jobs
There are approximately 10 million jobs
supported by the oil and natural gas
industry and approximately $225 billion in
wages paid to U.S. industry employees in
Natural gas is an energy answer that is
available today, and we should denitely
be putting it more to use, now – for
years, I have voiced my belief that natural
gas reserves are critical to a strong U.S.
economy and that it is extremely important
for America’s energy security
Natural gas is an abundant, clean fuel that
has many domestic uses – from heating
our homes to serving as an alternative
to gasoline – and it is important to U.S.
energy sustainability
In 2012, the oil and gas industry paid
more than $600 million in property taxes,
accounting for nearly 9% of all property
taxes paid that year
By 2040, natural gas is expected to account
for 35% of U.S. electricity generation,
according to the U.S. Energy Information
Administration (EIA)
70% of all oil produced in the U.S. is
directed to fuels used in transportation,
according to the EIA
In 2013, the U.S. exceeded Russia in oil and
natural gas production, and in
2011, the U.S. became a net exporter of
petroleum products for the rst time since
1949, according to the EIA
There are thousands of petroleum based
products provided by the oil and natural
gas industry
These are only a few of the many facts and
examples of the U.S. oil and gas industry.
There are men and women taking great
care in making sure – 24/7 – that the
consumer has the necessary energy to
maintain a standard of life. From the
drilling rig to pipeline to renery to
production site to oil truck to tanker – the
energy industry is making a tremendous
Together, the people in the oil and gas
industry are making a difference! We have
provided jobs, economic growth, created
security, brought about a renaissance
in manufacturing, caused an energy
revolution, and made a global impact!
America Needs America’s Energy:
It is Time to Tell Our Story! Go to to join the effort
or visit us on Facebook.
Its Time to Tell Our Story!
By Mark Stansberry
Digital Product & Service Catalog
Imagine how much could be accomplished if you could access performance
information, approved vendors, purchase orders and assigned rigs all in one
place to help manage your business.
Contact Rig Chat today and stop wasting time combining all those reports.
WWW.RIGCHAT.COM OR 1-844-370-1885
Oilman Magazine / March-April 2015 /
Digital Product & Service Catalog
Imagine how much could be accomplished if you could access performance
information, approved vendors, purchase orders and assigned rigs all in one
place to help manage your business.
Contact Rig Chat today and stop wasting time combining all those reports.
WWW.RIGCHAT.COM OR 1-844-370-1885
Oilman Magazine / March-April 2015 /
Jobs Growth
in Oil & Gas
Oilman Magazine / March-April 2015 /
A report on the policies that can
support long-term jobs development
and economic prosperity in the U.S
By Jennifer Delony
Jobs Growth
in Oil & Gas
          
    
 
    
     
    
      
        
      
   
    
    
     
      
Continued on next page
Oilman Magazine / March-April 2015 /
The recent trend in job cuts in oil and gas,
while a stark contrast to growth trends the
sectors were experiencing, should be put
into perspective, explains Dan Kish, senior
vice president for policy at the Institute for
Energy Research.
“For anybody who has been in the oil
business for any period of time, we’ve seen
this before,” Kish said. “But what we’re
seeing now might be a little different than
what we’ve seen before, and I think the
chapter has yet to be written.
With the higher price of oil attracting capital
over a long period of time, industry players
attracted not only investments, but also
personnel to try to sustain those investments,
he said.
“People were hiring at just incredible rates,”
Kish added. “Now, with the decline in [oil]
prices, there is a lot of economic dislocation.”
That dislocation is the miracle of the
capitalist system, Kish explained.
“It’s creative destruction in a lot of ways,
he said. “It forces people to sharpen their
Kish expects that the oil and gas industry will
experience a certain amount of consolidation.
“Some of the weaker companies that were
maybe too leveraged are going to be attractive
for other people to pursue because of their
investments that will gain value later,” he said.
“It happens in all markets – it’s part of the
natural process.
Kish believes that the market will rebound
from the current downturn, as long as the
government does not create a new regulatory
environment that makes it more expensive to
do business in the U.S.
The EPAs recently proposed methane
regulations constitute “a classic example” of
the government coming into the market at
the wrong time with the wrong approach for
a paradigm that seeks to encourage domestic
investment, Kish said.
Janet McCabe, Acting Assistant Administrator
for the EPA Ofce of Air and Radiation
on Jan. 14 released the details for a set of
actions to cut methane emissions from the
oil and gas sector by 40% to 45% from 2012
levels by 2025. (See News at a Glance, p. 30.)
As part of that plan, the EPA will initiate a
rulemaking to set standards for methane and
volatile organic compounds emissions from
new and modied oil and gas production
sources, and natural gas processing and
transmission sources.
In addition, President Obama’s FY16 budget
includes $15 million in funding for the U.S.
Department of Energy (DOE) to develop
cost-effective technologies to detect and
reduce losses from natural gas transmission
and distribution systems and $10 million to
 
Oilman Magazine / March-April 2015 /
launch a program at DOE to enhance the
quantication of emissions from natural gas
infrastructure for inclusion in the national
Greenhouse Gas Inventory.
The EPAs actions on methane emissions
come at a time when the reduction in
methane by the oil and gas industry,
according to EPAs own reports, has been
phenomenal, according to Kish.
“The problem with the government coming
in and doing something along these lines is
that, without the government, business has
already been nding it in its own interest to
reduce [emissions] so rapidly that, if they give
them a few more years, they may reduce it
to such an extent that nobody is concerned
about it,” Kish said.
President Obama on Feb. 24
returned S.1, the Keystone XL
Pipeline Approval Act, without his
In a Feb. 24 message to the U.S.
Senate, Obama said that, “through
this bill, the United States
Congress attempts to circumvent
longstanding and proven processes
for determining whether or not
building and operating a cross-
border pipeline serves the national
The Keystone XL Pipeline
Approval Act, which would have
approved TransCanada’s proposed
Keystone XL pipeline project, had
passed both the U.S. House of
Representatives and the Senate,
falling short of the two-thirds
majority needed to override a
presidential veto.
Earlier this year, President Obama
agreed with a Secretary of State
recommendation that the Keystone
XL application should be denied.
In a Jan. 7 statement, he said that,
as the State Department made
clear last December, “the rushed
and arbitrary deadline insisted on
by Congressional Republicans
prevented full assessment of the
pipeline’s impact, especially the
health and safety of the American
people, as well as our environment.
President Obama also said that his
administration would continue to look
for new ways to partner with the oil and
gas industry to increase energy security,
“including the potential development of an
oil pipeline from Cushing, Okla., to the Gulf
of Mexico.
In his Feb. 24 message to the Senate,
President Obama said that he takes the
Presidential power to veto legislation
“[B]ecause this act of Congress conicts
with established executive branch procedures
and cuts short thorough consideration
of issues that could bear on our national
2015 Texas Job
Growth Forecast
Remains Healthy
Texas job growth is expected to moderate
but remain healthy in 2015 as lower
oil prices slow growth, Keith Phillips,
Federal Reserve Bank of Dallas senior
economist and research ofcer said in
San Antonio in January.
Phillips presented the Bank’s annual
Texas Economic Outlook before local
business leaders at the Dallas Fed’s San
Antonio Branch.
Texas job growth will likely slow from
about 3.6% in 2014 to between 2% and
2.5% in 2015, Phillips said. That equates
to about 235,000 to 295,000 new jobs in
Texas in 2015, down from an estimated
408,000 jobs created in 2014.
“The sharp decline in oil prices has
created much uncertainty in our outlook
for state job growth this year, but we’re
viewing it as a headwind for the Texas
economy,” Phillips said. “However, Texas
has a diversied economy, and while the
drop in oil prices slows job growth, it
won’t send the state into a recession like
it did in the 1980s.
Sustained oil prices of $50 per barrel
or lower will sharply curtail drilling and
extraction in the state, Phillips said. This
change will negatively affect parts of
Texas that are more dependent on energy
production, including the Permian Basin
in West Texas and the Eagle Ford Shale
in South Texas.
Job growth in the Houston region, which
has a large share of energy-related jobs,
will slow signicantly but remain positive
in 2015, he added.
Slowing exports may be another
headwind for the Texas economy in 2015,
according to Phillips. Texas exports have
declined in recent months, and a strong
U.S. dollar may further dampen exports
this year.
 
   
 
Oilman Magazine / March-April 2015 /
interest – including our security, safety, and
environment – it has earned my veto.
U.S. Senate Majority Leader Mitch
McConnell, R-Ky., in a Feb. 24 statement
expressed his disappointment in the veto.
“Even the President’s own State Department
says construction of this jobs and
infrastructure project would result in only
minimal environmental impact,” he said.
“Even though the President has yielded to
powerful special interests, this veto doesn’t
end the debate. Americans should know that
the new Congress wont stop pursuing good
ideas, including this one.
Sen. Lisa Murkowski, R-Ala., chairman of
the Senate Energy and Natural Resources
Committee, in a Feb. 24 statement also
criticized President Obama’s veto, calling it a
“short-sighted, politically-driven mistake.
In a Feb. 24 statement responding to the veto,
TransCanada said it remains fully committed
to Keystone XL.
As we have done throughout the permitting
process, TransCanada will keep working
in good faith with the Department of
State and other federal agencies to address
any outstanding concerns with regard to
Keystone XL, including those that were most
recently raised by the EPA.
On Feb. 2, the EPA submitted a letter to the
State Department with comments on the nal
supplemental environmental impact statement
(SEIS) for the project. In that letter, the EPA
said that, given the recent variability in oil
prices, it is necessary to revisit the nal SEIS
conclusion that development of oil sands
would lead to signicant additional releases
of greenhouse gasses, and a decision not to
grant the requested permit would likely not
change that outcome.
According to the State Department,
the number of jobs associated with the
construction of the estimated $10bn
Keystone XL pipeline over a two year period
would be about 42,000.
That type of infrastructure project is exactly
the development prole that President
Obama has traditionally supported to boost
the economy, Kish said.
The jobs associated with the construction of
the pipeline may be temporary, but they’re
high-paying and highly skilled, he added.
“They ush other jobs throughout the
economy because of a consequence of
people moving into an area to construct
something on a large scale, and it puts new
demands for services and purchases in the
local communities,” he said.
If the U.S. can buy and use domestic oil
instead of buying oil from other areas around
the world, it attracts manufacturing processes
to the U.S. and provides the initial investment
as well as the ongoing jobs, according to Kish.
“If we’ve been used to taking hundreds of
billions of dollars a year and buying energy
with it from abroad and we stop doing that,
and switch that focus to buying the same
commodities produced in North America, we
not only get the jobs from that but we also
get the expansion of economic activity, the
taxes, and all the wealth that goes with it,” he
On the ip side, Kish believes that shifting
policies to support export of surplus oil
and gas also would greatly benet the jobs
“There’s increasing discussion in Washington
 
Oilman Magazine / March-April 2015 /
of the export issue because we’re nding and producing
supplies of both oil and gas that are surplus to our needs,
and other people are willing to pay more for those products
than we are here in the U.S.,” Kish said. “It makes sense to
begin discussing export of them.
Increasingly, studies are showing that if the U.S. raises
the amount of oil it exports, it would help producers and
consumers simultaneously – a win-win scenario that does
not happen most of the time, according to Kish.
“There’s a growing understanding that we have enough oil
here at home to not only serve our own needs and make
sure that we get it at a reasonable price, but also to export
it to other people around the world,” Kish said, noting that
the idea will need “a lot more ripening in Congress.
The policy side of the energy industry is currently a highly
dynamic space due to the Obama Administrations focus on
global warming goals and climate change, according to Kish.
Applaud or criticize as people may, depending on where
they are in the situation, the fact is that nobody should be
surprised by what President Obama is doing,
and as a consequence, that has major ramications for the
energy picture in the U.S. and on economic growth,” Kish
said. “Those actions all have a bearing on oil and gas.
EPA regulation of coal-powered plant emissions under the
Clean Power Plan will change how electricity is sourced in
the U.S. over the next decade. Pressure to shutter nuclear
generation, despite its highly affordable prole, will grow
alongside the ongoing increases in state-level renewable
energy mandates.
“These changes are going to necessitate huge investments
not only in new natural gas power plants, but also in the
transportation systems related to those plants,” Kish said.
Job growth in the natural gas sector will rise with that
demand, but additional policies are necessary to support the
That rapid growth in demand for natural gas for power
plants has not been met by expediting construction of the
pipelines necessary to get the natural gas to the areas it is
needed the most, Kish noted.
“In the very places where we need additional pipeline
capacity, they’re running into trouble locally and also with
federal permitting,” he said.
Recent bills that seek to streamline the permitting process
are gaining ground in Washington. The bills are designed
to ensure that permitting and construction of pipelines
IEA Forecasts
Rebalancing of Oil
The recent crash in oil prices will cause the oil market to rebalance in
ways that challenge traditional thinking about the responsiveness of
supply and demand, the International Energy Agency (IEA) said in its
annual Medium-Term Oil Market Report released on Feb. 10.
The U.S. light, tight oil (LTO) revolution has made non-OPEC
production more responsive to price swings than during previous market
selloffs, the report said, adding that this would likely set the stage for
a relatively swift recovery. At the same time, lower oil prices will not
provide as strong a boon to oil demand growth as might be expected.
According to the report, supply will grow far more slowly than previously
projected, as producers cut spending, but global capacity is still forecast to
expand by 5.2 million barrels per day by 2020, and the toll on production
will vary by country. In addition, growth in U.S. LTO is expected to regain
momentum in the latter part of the forecast period as prices recover, and
North America remains a top source of supply growth for the remainder
of the decade.
The report said that Russia faces lower prices, sanctions and currency
swings, pushing its production into contraction, and OPEC’s share of
global supply will inch up from recent lows, but will not recover to the
levels enjoyed before the surge in LTO supply.
“This unusual response to lower prices is just one more example of how
shale oil has changed the market,” IEA Executive Director Maria van
der Hoeven said during the launch of the report during International
Petroleum Week in London. “OPEC’s move to let the market rebalance
itself is a reection of that fact. It may have effectively turned LTO into
the new swing producer, but it will not drive it out of the market. LTO
might in fact come out stronger.
Assuming that international sanctions on Iran remain in place, OPEC
growth in crude production capacity is expected to be limited to 200,000
barrels per day per year, the report said, adding that the overwhelming
majority of that growth will come from Iraq and will be at signicant risk
as geopolitical instability there persists.
Political risk to supply will remain extraordinarily elevated in the next few
years, both on the upside and the downside, according to the report. In
addition, lower oil prices may heighten the risk of political disturbances in
oil-export-dependent economies countries with low buffers, but can also
offer an incentive to maximize output and stimulate production growth.
Oilman Magazine / March-April 2015 /
 
are coordinated so that there isnt lag time
between having the natural gas to re the new
plants and when the power is needed, Kish
The House Energy and Commerce
Committee on Feb. 9 released a framework
for advancing several energy reform initiatives
that would include creating an efcient
approval process for cross-border oil and gas
The committee will prepare a series of
discussion drafts under its Architecture of
Abundance initiative to address policies
that would modernize infrastructure,
develop a 21st century energy workforce,
and promote energy diplomacy, efciency
and accountability, according to a Feb. 9
committee statement.
In a combined statement on Feb. 9, House
Energy and Commerce Committee Chairman
Fred Upton (R-Mich.) and House Energy and
Power Subcommittee Chairman Ed Whiteld
(R-Ky.) said: “Our energy realities have
changed dramatically – we’ve gone from bust
to boom practically overnight. Today’s energy
policies are lagging far behind, and are better
suited for the gas lines in the 1970s than
this new era of abundance. We need policies
that meet today’s needs and are focused on
the future, and that starts with building the
Architecture of Abundance.
The committee said it will advance the
discussion drafts through the committee’s
legislative process in the coming months and
bring an energy package to the House oor
later this year.
According to the framework, a discussion
draft to modernize the transmission,
reliability, and security of energy distribution
will address the permitting challenges for
current domestic and cross-border pipelines.
It will also seek to protect critical energy
infrastructure with improved emergency
coordination and information sharing, ensure
robust and transparent energy markets,
and bring added levels of accountability to
Upton unveiled the Architecture of
Abundance initiative at the Energy
Information Administration 2014 Energy
Conference in Washington, D.C., last July. His
plan laid out several steps that the House has
taken toward achieving the goals of the plan,
including House passage on June 24, 2014,
of H.R. 3301, the North American Energy
Infrastructure Act, according to a July 2014
committee statement.
The North American Energy Infrastructure
Act would consolidate and standardize the
cross-border approval process for pipelines
by eliminating the presidential permit
requirement for cross-border facilities and
requiring a certicate of crossing to be issued
for cross-border facilities within 120 days
of completion of an environmental review.
The Federal Energy Regulatory Commission
(FERC) would continue to approve cross-
border natural gas pipelines under the act. On
June 26, 2014, the act was placed on the U.S.
Oilman Magazine / March-April 2015 /
 
Senate Legislative Calendar No. 422 under
General Orders, according to the House
website. No further action was taken.
Sen. John Hoeven (R-N.D.) introduced
a similar bill – S. 2823 – to the Senate
last September. The Senate read the bill
on Sept. 19, 2014, and referred it to the
Senate Committee on Energy and Natural
Resources, according to the Senate website.
As part of the Architecture of Abundance
framework, the Energy and Commerce
Committee said it will seek to expand the
U.S. energy and manufacturing workforce
to include more minority and low-income
communities. The discussion drafts will
support opportunities for the DOE, along
with the national laboratories, community
colleges, and public-private partnerships, to
coordinate and leverage existing resources
to foster an energy and manufacturing
workforce. In addition, the committee said
the discussion drafts will seek to improve
coordination and strengthen energy
partnerships with Canada and Mexico and
to establish a process to evaluate how energy
permitting decisions impact international
energy security.
Uptons Architecture of Abundance
framework also supports the Natural Gas
Pipeline Permitting Reform Act. Introduced
in July 2013 as H.R. 1900 and reintroduced
in January as H.R. 161, the bill amends
the Natural Gas Act to require that FERC
approve or deny a pipeline certicate within
12 months of receiving the complete
The bill requires that any relevant agencies
responsible for issuing a license, permit, or
approval under federal law in connection
with the project approve or deny the request
within 90 days after FERC’s issuance of
the nal environmental document. FERC
may extend the 90-day period by 30 days if
the relevant agency demonstrates it cannot
complete its review on time. If the relevant
agency does not approve or deny the request
within the specied time, approval of the
request will take effect.
The bill passed in the House on Jan. 21, and
the Senate received the bill on Jan. 22.
On Jan. 29, the Senate Energy and Natural
Resources Committee heard testimony
regarding the LNG Permitting Certainty and
Transparency Act (S. 33), sponsored by Sens.
Martin Heinrich (D-N.M.) and John Barrasso
(R-Wyo.). The bill is designed to expedite
the approval process for LNG exports to
countries with which the U.S. does not have a
free trade agreement. (See News at a Glance,
p. 30.)
S. 33 directs the Secretary of Energy, for
proposals that must also obtain authorization
from FERC or the United States Maritime
Administration to site, construct, expand,
or operate LNG export facilities, to issue a
decision on an application for authorization
to export natural gas within 45 days after the
later of the conclusion of an environmental
review or the enactment date of the act.
Oilman Magazine / March-April 2015 /
Oilman Magazine / March-April 2015 /
Oilman Magazine / March-April 2015 /
Senate Committee Hears Testimony on S.33
The U.S. Senate Energy and
Natural Resources Committee
on Jan. 29 held a hearing on the
LNG Permitting Certainty and
Transparency Act (S. 33), sponsored
by Sens. Martin Heinrich (D-N.M.)
and John Barrasso (R-Wyo.).
The bill is designed to expedite
the approval process for LNG
exports to countries with which
the U.S. does not have a free trade
Sen. Lisa Murkowski, R-Ala., issued
the following opening statement for
the hearing:
“I have long argued that exports
of liqueed natural gas should be
expedited from the United States
to our friends and allies overseas.
I made the case in Energy 20/20
two years ago and again in two
white papers: The Narrowing
Window: America’s Opportunity
to Join the Global Gas Trade and
A Signal to the World: Renovating
the Architecture of U.S. Energy
“Know from the start that I fully
support this bill. It is truly the
culmination of years of legislative
work here in the Congress. I
remember Sen. Richard Lugar, who
introduced in December 2012 the
concept that exports for NATO
members should receive expedited
treatment over at the Department
of Energy. As proposals came
forth, more and more countries
were added to this prospective
list – Ukraine, Japan, India, and
eventually the entire World Trade
Organization. Just yesterday
we voted on Sen. Cruz’s WTO
amendment as part of the ongoing
Keystone XL debate.
“Last year, legislative activity
turned to the approval process
over at DOE. We saw proposals
to give the department a time
limit for authorizations – these
licenses – with the clock starting at
various points – after FERC nal
authorization, after pre- ling,
and so forth. Many colleagues
co-sponsoring this current
legislation were involved in those
efforts, as was our former ENR
colleague, Sen. Mark Udall.
“I think we would all recognize
that this legislation in front of
us … is a compromise. It is
imperfect, but it is the result of
serious work by very serious
people coming together to try
to address an issue. I thank my
colleagues for all their efforts to
come together on this one.
S. 33 directs the Secretary of
Energy, for proposals that must
also obtain authorization from
FERC or the United States
Maritime Administration to site,
construct, expand, or operate
LNG export facilities, to issue
a decision on an application for
authorization to export natural
gas within 45 days after the later
the conclusion of the review
to site, construct, expand, or
operate the LNG
facilities required by the
National Environmental Policy
Act (NEPA)
the date of enactment of S. 33
S. 33 deems a NEPA review
to be concluded when the lead
publishes an environmental
impact statement if the project
requires one
publishes a nding of no
signicant impact if the
project needs an environmental
determines that an application is
eligible for a categorical exclusion
pursuant to NEPA regulations
 
S.33 confers upon either the U.S.
Court of Appeals for the District
of Columbia Circuit or the circuit
in which the export facility will
be located original and exclusive
jurisdiction over any civil action
for the review of:
a DOE order regarding the
DOE failure to issue a nal
decision on the application
In Jan. 29 testimony at the hearing,
DOE Ofce of Fossil Energy
Assistant Secretary Christopher
Smith said that the DOE does not
believe that S. 33’s decision-making
timeline is necessary to ensure
efcient and responsible action by
the DOE.
Oilman Magazine / March-April 2015 /
Chadbourne & Parke:
Cost of Capital 2015
Outlook Webinar,
January 16
Keith Martin, Partner, Chadbourne & Parke
What was the North American project nance bank market in
2014 compared to 2013?
Tom Emmons, Managing Director, Head of Renewable Energy
Finance, Americas, Rabobank, New York Branch
2014 was a year of big growth for North American project
nance. Volumes were up signicantly – 45% from 2013 – $28
billion up to $41 billion. The U.S. was dominant, with 80% of that
market. Canada had 15% and Mexico 5%. Sector wise, oil and gas
was just under a half of the market, conventional power was about
a quarter, and renewables was just under one quarter.
“While we understand that the
intent of S. 33 is to add greater
regulatory assurance to applicants
for LNG exports and the [DOE]
shares the goals of transparency
and certainty of process, we do not
believe that S. 33 is necessary to
meet these goals,” he said.
America’s Natural Gas Alliance
President and CEO Martin Durbin
said in testimony during the hearing
that the DOE process for issuing
a public interest determination on
export applications has not been
“By requiring the Secretary of
Energy to issue its public interest
determination within 45 days after
the conclusion of the NEPA review
by FERC, S. 33 provides this clarity
and timeliness,” he said. “Applicants
will be better able to estimate their
costs, construction timelines, and
labor needs. And, these multi-
billion dollar investments will be
more likely to progress toward
construction and operation.
In a Jan. 29 statement about the
hearing, Center for Liqueed
Natural Gas (CLNG) President
Bill Cooper said that the hearing
emphasized a wide consensus
among energy experts, economists
and policy-makers.
“[LNG] exports will be an
economic boon to the U.S.,
creating jobs and investment
while enhancing our trading
partnerships,” he said. “Thanks
to our abundance of natural
gas supplies, the U.S. is uniquely
positioned to both meet domestic
demand and still bring real wealth
back into this country by selling
a small percentage of our surplus
natural gas to our friends and allies
abroad. CLNG applauds today’s
hearing participants for urging
strong bipartisan legislative action
to move these projects forward.
The U.S. Environmental Protection Agency
(EPA) is proposing to amend requirements
under the National Oil and Hazardous
Substances Pollution Contingency Plan to
improve the nations ability to plan for and
respond to oil spills.
“Our emergency ofcials need the best
available science and safety information to
make informed spill response decisions when
evaluating the use of specic products on oil
discharges,” EPA Ofce of Solid Waste and
Emergency Response Assistant Administrator
Mathy Stanislaus said in a statement. “Our
proposed amendments incorporate scientic
advances and lessons learned from the
application of spill-mitigating substances in
response to oil discharges and will help ensure
that the emergency planners and responders are
well-equipped to protect human health and the
The proposed revisions include:
New and revised product toxicity and efcacy
test methodologies for dispersants and other
chemical and biological agents
New toxicity and efcacy criteria for listing
agents on the Subpart J Product Schedule
Additional human health and safety
information requirements from manufacturers
Revised area planning requirements
for chemical and biological agent use
New dispersant monitoring requirements
when used on certain oil discharges
Dispersant manufactures will be able to
use a new, well-tested and peer-reviewed
laboratory method for determining the
effectiveness of their dispersant on two
types of crude oils at two temperatures
measured against proposed performance
criteria. The EPA is also proposing an
aquatic toxicity threshold so that products
that meet both the performance and toxicity
criteria will offer greater performance at less
environmental impact.
In addition, the EPA is proposing product
chemical ingredient disclosure options
and new evaluation criteria and a process
for removing products from the Product
EPA Proposes Oil Spill Amendments
Oilman Magazine / March-April 2015 /
Obama Administration Takes Action on
Methane Emissions
Janet McCabe, Acting Assistant Administrator
for the U.S. Environmental Protection Agency
(EPA) Ofce of Air and Radiation on Jan. 14
released the details of a new goal to cut methane
emissions from the oil and gas sector by 40%
to 45% from 2012 levels by 2025, and a set of
actions to achieve that goal.
Methane emissions accounted for nearly 10%
of U.S. greenhouse gas emissions in 2012, of
which nearly 30% came from the production,
transmission and distribution of oil and natural
gas, according to an EPA statement. Emissions
from the oil and gas sector are projected to rise
more than 25% by 2025 without additional steps
to lower them, the EPA said.
The plan includes a coordinated, cross-agency
effort that considers the role of the Federal
Energy Regulatory Commission (FERC), state
utility commissions and environmental agencies,
and industry.
1. Propose and Set Standards for Methane and
Ozone-Forming Emissions from New and
Modied Sources
The EPA will initiate a rulemaking effort
to set standards for methane and volatile
organic compounds emissions from new
and modied oil and gas production sources,
and natural gas processing and transmission
sources. EPA will issue a proposed rule
in the summer of 2015 and a nal rule
will follow in 2016. In developing these
standards, EPA will work with industry,
states, tribes, and other stakeholders to
consider a range of approaches that can
reduce emissions from the sources such as
oil well completions, pneumatic pumps, and
leaks from well sites, gathering and boosting
stations, and compressor stations.
2. New Guidelines to Reduce Volatile Organic
The EPA will develop new guidelines to
assist states in reducing ozone-forming
pollutants from existing oil and gas systems
in areas that do not meet the ozone
health standard and in states in the Ozone
Transport Region. These guidelines will
also reduce methane emissions in these
areas. The guidelines will help states that
are developing clean air ozone plans by
providing a ready-to-adopt control measure
that they can include in those plans.
3. Consider Enhancing Leak Detection and
Emissions Reporting
The EPA will strengthen its Greenhouse
Gas Reporting Program to require reporting
in all segments of the industry. In addition
to nalizing the updates to the program
EPA has already proposed by the end of
2015, EPA will explore potential regulatory
opportunities for applying remote sensing
technologies and other innovations in
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Oilman Magazine / March-April 2015 /
measurement and monitoring technology
to further improve the identication and
quantication of emissions and improve
the overall accuracy and transparency of
reported data cost-effectively.
4. Update Public Lands Standards
The Department of Interior’s
Bureau of Land Management
(BLM) will update decades-
old standards to reduce
venting, aring, and leaks of
natural gas, which is primarily
methane, from oil and gas
wells. These standards, to be
proposed in the spring, will
address both new and existing
oil and gas wells on public
lands. BLM will work with the
EPA to ensure an integrated
5. Create Pipeline Safety
The Department of
Transportation’s (DOT)
Pipeline and Hazardous
Materials Safety
Administration will propose
natural gas pipeline safety
standards in 2015.
6. Drive Technology to Reduce
Natural Gas Losses
President Obama’s FY16
budget includes $15 million in
funding for the Department
of Energy (DOE) to develop
and demonstrate more cost-
effective technologies to
detect and reduce losses from
natural gas transmission and
distribution systems. This
action will include efforts to
repair leaks and develop next
generation compressors. The
budget also proposes $10
million to launch a program
at DOE to enhance the
quantication of emissions
from natural gas infrastructure
for inclusion in the national
Greenhouse Gas Inventory in coordination
with EPA.
7. Modernize Natural Gas Transmission and
Distribution Infrastructure
The DOE will:
• Issue energy efciency standards for
natural gas and air compressors
• Advance research and development to
bring down the cost of detecting leaks
• Work with FERC to modernize natural
gas infrastructure
• Partner with the National Association
of Regulatory Commissioners and local
distribution companies to accelerate
pipeline repair and replacement at the
local level
8. Quadrennial Energy Review (QER)
The Obama Administration will release the
rst installment of the QER, which focuses
specically on policy actions that are needed
to help modernize energy transmission,
storage, and distribution infrastructure.
This installment of the QER will include
additional policy recommendations and
analysis on the environmental, safety, and
economic benets of investments that
reduce natural gas system leakage.
Several voluntary industry efforts
to address existing sources of
methane emissions are underway,
including the EPAs plans to
expand on the Natural Gas STAR
Program by launching a new
partnership in collaboration with
key stakeholders later in 2015.
The EPA will work with DOE,
DOT, and certain companies,
individually and through broader
initiatives such as the One Future
Initiative and the Downstream
Initiative, to develop and verify
commitments to reduce methane
In a Jan. 14 statement about the
EPAs proposed new regulations,
American Petroleum Institute
President Jack Gerard said that
methane emissions from oil
and natural gas production are
falling, and new regulations on
methane disrupt America’s energy
As oil and natural gas production
has risen dramatically, methane
emissions have fallen thanks
to industry leadership and
investment in new technologies,”
Gerard said. “And even with that
knowledge, the White House has
singled out oil and natural gas
for regulation, where methane
emissions represent only 2% of
total greenhouse gas emissions.
Gerard said that existing
EPA and state regulations are
already working, and more regulation will be
“We need our government to implement sound
policies, but this plan seems to be based on
politics,” Gerard said. “We hope EPA will work
with industry during the regulatory process to
ensure that any regulations are based on science
and technology and do not impair the industry’s
ability to supply America with energy.” - JD
Oilman Magazine / March-April 2015 /
Several new bills related to oil drilling bans
were introduced in the Oklahoma state
legislature in January.
The bills are:
HB2124 and HB1395, Acts relating
to oil and gas that strike provisions
recognizing the rights of cities and towns
to provide rules and regulations for oil
and gas drilling or production. The Acts
allow municipalities, counties and other
governmental subdivisions to enact certain
reasonable laws and prohibit municipalities,
counties and other governmental
subdivisions from banning oil and gas
operations. In addition, the Acts grant
the Oklahoma Corporation Commission
authority to determine if certain laws are
SB341, an Act relating to oil and gas that
creates the 2015 Oil and Gas Conservation
and Regulation Modernization Act. The
Act modies purpose of well spacing
for certain wells and modies Oklahoma
Corporation Commission procedures for
spacing in certain wells. In addition, the Act
claries state authority over municipalities,
counties and political subdivisions relating
to oil and gas exploration.
HB1722, HB 2178, SB468, and SB809,
Acts relating to oil and gas that authorizes
regulation by municipalities, counties and
other political subdivisions of certain
oil and gas operations and establishing
setbacks and repeals 52 O.S. 2011, Section
137, which relates to the powers of cities
and towns to regulate oil and gas drilling or
production. –JD
Core Resource Management Inc. has
acquired the Oklahoma oil and gas assets
of White Stone Resources LP and Royal
Energy Resources Inc. in exchange for
common stock equity of Core.
Both White Stone and Royal are private
companies. They currently own and are
selling to Core nearly $1.8 million in PV10
proved developed producing properties.
“The addition of these new assets
to our balance sheet along with the
compartmentalization of oil and gas
expertise and our expertise in the capital
markets of our team, puts us in a unique
position for rapid expansion,” Core CEO
James Clark said in a statement. “With
the market price of oil declining, it has
produced value buying opportunities, and
we feel Core can capitalize on this current
market condition.
The nal denitive purchase sale agreement
and terms of the all-equity deal was
executed on Dec. 12, 2014.
Northcote Energy has signed an agreement
with NAPP to acquire the entire issued
share capital of NAPP’s wholly owned U.S.
subsidiary, NAP USA Inc.
The acquisition increases the company’s
working interest from 55% to 85% at Zink
Ranch in Oklahoma and from 35% to 70%
at Shoats Creek in Louisiana. Shoats Creek
wells are expected to be the initial focus
for the group. Northcote Energy will issue
shares in the company to NAPP equal to
29.9% of Northcote’s enlarged issued share
capital as of the date of closing.
“The combination of North American
Petroleum’s U.S. assets with our own
creates a larger and stronger company that
still retains its focus on the development
of its core assets in Oklahoma and
Louisiana,” Northcote Managing Director
Randall Connally said in a statement. “This
transaction makes sense in any environment
but particularly in the current low oil price
Jericho Oil Corp. has signed a letter of
intent to acquire a 50% working interest
in 2,050 acres in the Cherokee basin in
northeastern Oklahoma. Upon closing,
Jericho will begin the build-out of its
second platform, focused on developing
and optimizing legacy productive basins.
The acquisition, which has both oil and gas
production of approximately seven barrels
of oil equivalent per day, will bring Jericho’s
total acreage position to over 5,800 acres.
“The market’s recent turbulence has
provided us an opportunity to focus our
efforts on acquiring assets with good, long-
term development potential at favorable
pricing,” Jericho Oil CEO Allen Wilson
said in a statement. “We are excited about
starting our second platform and look
forward to diligencing more opportunities
in Oklahoma. With a strong cash position
and no company debt, it is our intention
to continue down this path to patiently
evaluate leases as they present themselves.”
Commissioner Dana Murphy in
January provided updates on the
latest developments in the Oklahoma
Corporation Commission’s (OCC)
earthquake response measures.
As I’ve said before, it’s very important
for everyone to be kept informed and
understand what’s being done,” said
Murphy. “At the same time, it should be
stressed that additions or changes are
possible at any time. We know far more
now than we did three years ago, but there
is obviously much more to be learned.”
Developments include:
1. The OCC’s “yellow light” permitting
program now extends the area of
seismicity review for any proposed
disposal well to those:
proposed within three miles of a
seismically active fault
proposed within three miles of a
stressed fault, even in the absence of
proposed within six miles of an
earthquake “swarm”
2. A new rule has been proposed to require
disposal well operators to notify the
OCC at the start of a disposal well’s
initial injection
3. New rules have gone into effect
increasing from monthly to daily the
required recording of well pressure and
volume from disposal wells that dispose
into the Arbuckle formation
4. Under the new rules, Mechanical
Integrity Tests for wells disposing of
volumes of 20,000 barrels a day or more
have increased from once every ve
years to every year, or more often if so
directed by the OCC
Oilman Magazine / March-April 2015 /
5. For those wells injecting into the Arbuckle
formation, any question regarding the
well’s actual depth must be addressed using
modern technology to determine true
depth, and if there is any issue with depth,
the well is directed to be shut-in and cannot
be restarted until the issue is addressed and
permission for restart received from the oil
and gas division
6. The OCC is beginning a joint project with
the Oklahoma Secretary of Energy and
Environment that will provide essential
reservoir and other data on the Arbuckle
7. Recent staff changes within the OCC’s Oil
and Gas Conservation Division will allow
key staffers to devote their entire work day
to the issue of seismicity
8. The OCC is an active participant on
Governor Mary Fallins Coordinating
Council on Seismic Activity
Murphy also noted that these ongoing
measures do not constitute the OCC’s nal
plan for seismic activity.
“What we are doing now is the result of
an open, exible process based on sound
scientic data, and driven by the utmost
necessity to address this issue,” she said.
Above all, that process must and will
Flowtex Energy recently entered into two
partnerships that will focus on drilling new
wells in central Oklahoma and southeast
Flowtex Energy will partner with Edmond,
Okla.-based Emerald Natural Resources
Group Inc., a provider of drilling and
consultancy services to the oil, gas and geo-
thermal sectors. Together with the Emerald
NRG team, Flowtex Energy will focus
on developing proven oil elds in central
“Oklahoma is a top oil producing state and
accounts for 3% to 4% of the country’s crude
oil total each year, and central Oklahoma in
particular is home to one of the nation’s 100
largest oil elds,” Beau Flowers, president
and CEO of Flowtex Energy said in a
statement. “This partnership with Emerald
NRG ts perfectly with our innovative
outlook, scientic approach, and rigorous
due-diligence process, and empowers us to
enhance our track record of success in the
Flowtex Energy also will partner with Buna,
Texas-based H.E.X.T. Operating LTD, a
provider of oileld services. Together with
the H.E.X.T. team, Flowtex Energy will focus
on developing oil wells in the Spindletop area
of southeast Texas.
“In 2014, Texas alone produced over 730
million barrels of crude oil, and almost
7 billion MCF of natural gas,” Flowers
said. “This partnership with H.E.X.T.
demonstrates our commitment to actively
researching and developing new sources of
oil and natural gas, constantly improving our
methods, and meeting our high standards.
The company expects to begin drilling in
Oklahoma and Texas in the second quarter
of 2015.
Oilman Magazine / March-April 2015 /
The Federal Energy Regulatory
Commission (FERC) on Dec. 30, 2014,
issued an order authorizing Corpus Christi
Liquefaction to site, construct, and operate
the company’s proposed liquefaction
project located in San Patricio and Nueces
counties in Texas. In addition, FERC
issued a certicate of public convenience
and necessity to Cheniere Corpus Christi
Pipeline LP to construct and operate the
company’s proposed 23-mile, 48-inch-
diameter pipeline in San Patricio County,
The liquefaction project and pipeline must
be built within ve years of the date of
FERC’s order.
In addition, the order adopted Christi
Liquefactions and Cheniere Pipeline’s
proposed mitigation plans and FERC
staff s recommendations to reduce the
environmental effects described in the
nal environmental impact statement.
Corpus Christi Liquefaction will build the
liquefaction project on the northern shore
of Corpus Christi Bay, at the north end
of the La Quinta Channel, northeast of
Corpus Christi, Texas.
The project will have the capability of
liquefying for export approximately 15
million metric tons per annum (MMTPA)
of LNG and vaporizing approximately
400 million cubic feet (MMcf) per day of
imported natural gas. Cheniere Marketing
will export and import the LNG by LNG
carriers, totaling between 200 and 300
trips per year through Corpus Christi Bay,
according to the order.
Corpus Christi Liquefaction will build
three liquefaction trains, each with a
liquefaction capacity of approximately 5
MMTPA. Pending export, the LNG will
be stored in three proposed 160,000 cubic
meter full containment LNG storage
tanks, each equipped with ve in-tank
well columns and safety and monitoring
systems. The liquefaction project will
also include two trains of ambient
air vaporizers, each with an average
vaporization capacity of approximately
200 MMcf per day of natural gas.
Cheniere Pipeline will build its bi-
directional pipeline from Corpus Christi
Liquefactions facilities to a point near
Sinton, Texas. The pipeline will transport
domestic natural gas to Corpus Christi
Liquefactions proposed LNG terminal
for liquefaction and export, as well as to
transport regasied imported LNG from
the LNG terminal to interconnections
with the existing pipeline systems of
Texas Eastern Transmission Corporation,
Kinder Morgan Tejas Pipeline LLC,
Natural Gas Pipeline Company of
America, Transcontinental Gas Pipe Line
Corporation, and Tennessee Gas Pipeline
Company. As proposed, the pipeline will
have a peak capacity of 2.25 billion cubic
feet per day. –JD
Commissioner Ryan Sitton was sworn-in
on Jan. 5 as the 49th commissioner of the
Railroad Commission of Texas.
Texas Supreme Court Justice Don
Willett administered the oath of ofce to
Commissioner Sitton, who was joined by
his wife, Jennifer, and their three children.
The ceremony took place at the Railroad
Commission headquarters in the William
B. Travis State Ofce Building in Austin.
“I look forward to working with Chairman
Christi Craddick and Commissioner David
Porter as we draw on our unique and
diverse experiences to provide a stable
regulatory environment that will protect
our citizens and our natural resources,
while allowing our energy industry to
thrive,” Commissioner Sitton said at the
ceremony. “To the citizens of the state of
Texas, I say that we are here to serve. In
that service, we want to do a couple of
things. We want to be communicating with
you in the language of science, technology
and data. We want to make sure when
there are questions about how energy is
developed, that we are quick to respond
and that we provide the applicable
resources to answer those questions. We
are going to be a service-oriented group,
and we want the citizens of Texas to feel
condent in that.
Medallion Pipeline Company LLC, a
subsidiary of Medallion Midstream
LLC, on Jan. 14 led a request with the
Federal Energy Regulatory Commission
seeking a declaratory order concerning
two proposed expansions of Medallion’s
existing Wolfcamp Connector crude oil
pipeline system.
The expansion projects would extend
both the geographic reach of the current
Wolfcamp Connector system and
substantially expand its capacity, according
to Medallions ling.
Medallions existing Wolfcamp Connector
crude oil pipeline system, which was
completed and placed in commercial
service in October 2014, originates in
the Midland Basin in West Texas. The
system extends approximately 112 miles
northward through the Midland Basin,
with a capacity of approximately 65,000
barrels per day (“bpd”), to a point of
interconnection, currently, with the
pipeline facilities of BridgeTex Pipeline
Company LLC.
After the commencement of operations
last year, Medallion contemplated a
potential westward extension of the
existing system into Upton and Midland
counties in Texas, called the Midkiff
Lateral, as well as a potential expansion
of the Wolfcamp Connector’s mainline
from the existing Garden City station
to the Colorado City hub, called the
Wolfcamp Expansion, according to
the ling. Medallion conducted a
public open season from Nov. 6, 2014,
to Dec. 1, 2014, to solicit long-term
transportation commitments to support
the commercial development of the two
expansion projects and secured a binding
commitment from one participant in the
open season, Medallion said.
The resulting committed rm service
awarded through the open season amounts
  
Oilman Magazine / March-April 2015 /
to 60,000 bpd of the Midkiff Lateral’s
75,000 bpd capacity – representing 80%
of the total capacity of the lateral – and
27,000 bpd of the Wolfcamp Expansion’s
30,000 bpd capacity – representing 90% of
the expansions capacity.
In its ling, Medallion requested that
FERC issue a declaratory order conrming
that the open season for the expansion
projects followed FERC guidelines;
Medallion properly committed capacity to
shippers; and the committed rates and rate
structure are just and reasonable. –JD
Azure Midstream Energy LLC, Marlin
Midstream Partners LP, and NuDevco
Midstream Development LLC have entered
into denitive agreements that will result in
Azure owning 100% of the general partner
of Marlin and 90% ownership of the total
outstanding incentive distribution rights in
In addition, Azure’s Legacy gathering
system will be contributed to Marlin for
$162.5 million. NuDevco will retain all
of its 10.7 million LP units, or 59.2%
ownership stake, in Marlin, subject to an
option granted to Azure to acquire 20%
units from NuDevco. Azure’s Legacy
system consists of approximately 658 miles
of high- and low-pressure gathering lines
primarily under xed-fee contracts that
serve approximately 100,000 dedicated
acres predominantly in the Cotton Valle
formation in east Texas and northern
Louisiana, with access to seven major
downstream markets.
According to Azure, the partnership
creates a diverse platform of midstream
assets with one of the largest gathering and
processing systems in the Haynesville and
horizontal Cotton Valley plays in east Texas
and northern Louisiana.
Spectra Energy Corp and Spectra Energy
Partners, through their afliate, Spectra
Energy Transmission II LLC, they have
entered into a purchase and sale agreement
to acquire from ConocoPhillips Company
100% of the equity interests in Brazoria
Interconnector Gas (BIG) Pipeline LLC,
which owns the BIG Pipeline.
The BIG Pipeline is a 42-inch natural gas
pipeline in Brazoria County, Texas, with a
capacity of approximately 1.8 billion cubic
feet per day. It extends 30.5 miles between
Stratton Ridge on its south end to a point
near Iowa Colony in northern Brazoria
The newly acquired BIG Pipeline will be a
component of the Stratton Ridge Project,
an expansion project of the Texas Eastern
Transmission pipeline system to deliver
up to 400,000 dekatherms per day of
natural gas to Stratton Ridge, Texas. The
Stratton Ridge Project, including the BIG
Pipeline acquisition, has an expected capital
expenditure of approximately $200 million
and is anticipated to be in service the rst
quarter of 2019.
The acquisition is expected to close in the
second quarter of 2016, subject to certain
Oilman Magazine / March-April 2015 /
The Bureau of Land Management is
offering competitive land leases on
parcels containing acres of Federal land in
The competitive oral auction will begin at
11:00 a.m. on March 19. The parcels are:
• 28.38 acres in Caddo Parish, T18N,
R15W, Louisiana Meridian, Sec 17, Lots
1 and 2
• 171.41 acres Caddo Parish, T23N, R15W,
Louisiana Meridian, Sec. 4, SWSW; Sec.
5, NWSE; Sec. 6, W2SW, SESW, SWSE
• 50.44 acres in Point Coupee Parish, T6S,
R10E, Louisiana Meridian Sec. 59, all;
Sec. 60, all
The parcels are subject to BLM
stipulations for cultural resources and
tribal consultation, endangered species,
and sensitive plant species as well as BLM
lease notices/best management practices
for migratory birds and federally listed
wildlife, perching and nesting birds and
bats, invasive and non-native plant species,
pesticide application and produced water
disposal. –JD
Comstock Resources Inc. said in December
2014 that it plans to spend $161 million for
drilling 14 Haynesville/Bossier shale natural
gas wells. In addition, Comstock plans
to refrac ten of its existing Haynesville
shale producing wells as part of its 2015
The company said that, in response to low
oil prices, it will suspend oil directed drilling
activity in its Eagle Ford shale properties in
South and East Texas and in the Tuscaloosa
Marine shale in Mississippi.
Comstock has released its rig in the
Tuscaloosa Marine shale and will postpone
its drilling activity there until oil prices
improve. In addition, Comstock has four
operated rigs drilling on its Eagle Ford
shale properties. The company also will
release two of four operated rigs drilling
on its Eagle Ford shale properties in early
2015 and move the other two rigs to North
Louisiana to start up a drilling program on
its Haynesville shale natural gas properties.
The company estimates that its drilling
program will generate company-wide oil
production of 3.5 million to 3.9 million
barrels in 2015 and natural gas production
of 55 billion cubic feet (Bcf) to 60 Bcf.
Comstock said that it will continue to
assess the oil and natural gas markets
throughout 2015 and adjust its drilling
program to reect the appropriate mix
of oil and natural gas wells in order to
maximize returns.
The Louisiana Ofce of Conservation on
Dec. 19, 2014, approved a permit for Helis
Oil & Gas Co.s proposed drilling operation
near Mandeville, La., in the Tuscaloosa
Marine Shale. Helis plans to use hydraulic
fracturing to complete the well, and water
for hydraulic fracturing operations will
come from private ponds and not scenic
bayous or groundwater wells, according to
the Dec. 19 order.
The order directs Helis to drill the well
using a closed-loop solids control system,
and no pits or earthen pits will be allowed.
Prior to acquiring water, Helis must
provide information to the Ofce of
Conservation to identify proposed water
sources, and acquisition of water cannot
proceed without Ofce of Conservation
approval. In addition, Helis must provide
full disclosure of the chemicals it uses to
hydraulically fracture the well and monitor
groundwater, air, storm water, and noise.
Helis still needs a wetlands permit from
the Army Corps of Engineers and a
water quality certication from the state
Department of Environmental Quality
before any work can begin. –JD
Magnolia LNG LLC has executed a
memorandum of understanding (MOU)
with Kellogg Brown & Root LLC, a
wholly owned subsidiary of KBR Inc.
and SKE&C USA Inc. (SKEC) whereby
KBR and SKEC propose to execute a
joint venture agreement on a 70%/30%
participation basis to deliver the Magnolia
LNG Project.
The MOU follows the execution of a
technical services agreement between
Magnolia LNG and SKEC in March
2014 and a subsequent technical services
agreement with KBR on Jan. 5. Under the
agreements, the companies will complete
all due diligence in relation to technical
commercial and contractual matters that
will enable the EPC JV to execute a lump
sum, turnkey engineering, procurement,
construction, commissioning, start-up and
performance testing EPC contract for the
LNG plant.
The Magnolia LNG project is a proposed
$3.5 billion, eight million tonne per annum
mid-scale LNG facility to be located in the
Port of Lake Charles, La. The companies
anticipate beginning construction later
this year with initial start-up operations
beginning in 2018.
 
The Federal Energy Regulatory
Commission (FERC) recently said that
it will prepare an environmental impact
statement (EIS) for the proposed Calcasieu
Pass Project and an environmental
assessment (EA) for the proposed Gulf
Trace Expansion Project. FERC will use
the EIS and EA in its decision-making
process to determine whether the projects
are in the public convenience and necessity.
The EIS for the Calcasieu Pass Project
will examine the environmental effects of
construction and operation of LNG export
facilities by Venture Global Calcasieu Pass
LLC in Cameron Parish, Louisiana.
Venture Global plans to construct and
operate an LNG export facility in Cameron
Parish adjacent to the Calcasieu Ship
Channel. The facility would receive natural
gas from North American sources and
would liquefy and store it for export. When
constructed, the project could process
about 487.2 billion cubic feet per year of
natural gas.
The Calcasieu Pass project would consist
of the following facilities:
• Ten liquefaction blocks
• Two LNG storage tanks, each with
Oilman Magazine / March-April 2015 /
approximately 200,000 cubic meter (m3)
storage capacity
• Two marine berthing docks, to
accommodate LNG carriers ranging from
120,000 m3 to 185,000 m3 of carrying
• A temporary oating LNG storage vessel
berthed at one of the LNG berthing
docks, which would be discontinued after
the rst permanent LNG storage tank
becomes operational
• A turning basin on the Calcasieu Ship
• A utility dock
• A gas-red electric generation facility with
generating capacity of approximately 600
MW that will be constructed to provide
power for the project facilities
• Two natural gas pipelines to connect
to existing transmission pipelines – a
23.8-mile-long, 42-inch-diameter pipeline
and a 18.5-mile-long, 42-inch-diameter
• A Gas Gate Station to receive gas from
the two lateral pipelines
The EA of the Gulf Trace Expansion
Project will examine the environmental
effects of construction and operation of
facilities by Transcontinental Gas Pipe
Line Company in Cameron, Calcasieu,
Beauregard, Evangeline, and East Feliciana
Parishes in Louisiana.
The Gulf Trace Expansion Project would
provide about 1.2 million standard cubic
feet of natural gas per day from its Station
65 Zone 3 Pool in St. Helena Parish,
Louisiana, southward along its existing
mainline, existing Southwest Louisiana
Lateral, and the proposed project facilities
to Sabine Pass Liquefaction liqueed natural
gas terminal (SPLNG Terminal) in Cameron
Parish, Louisiana. The pipeline would
extend from a tie-in with the existing NHI
Laterals C and D to SPLNG Terminal.
The Gulf Trace Expansion Project would
consist of the following facilities:
• About 6.97 miles of 36-inch-diameter
pipeline (the Gulf Trace Lateral) in
• Cameron Parish
• Addition of two 16,000 horsepower (hp)
gas turbine-driven compressor units at
Transco’s existing Compressor Station 44
in Cameron Parish
• Two 16,000 hp gas turbine-driven
compressor units at the new Compressor
Station 42 at the junction of Transco’s
mainline and its Southwest Louisiana
Lateral in Calcasieu Parish
• Piping and valve modications on
Transco’s mainline at existing Compressor
Stations 45, 50, and 60 in Beauregard,
Evangeline, and East Feliciana Parishes to
allow for bi-directional ow
• Two new meter stations, one adjacent to
the SPLNG Terminal in Cameron Parish
(SPLNG Meter Station) and one adjacent
to the Texas Gas Interconnection in
Evangeline Parish (Duralde Meter Station)
• Piping and valve modications, and pig
launcher and receivers required to tie-in
the Gulf Trace Lateral with the existing
NHI Laterals C and D at the milepost 6.8
valve site1 in Cameron Parish
• Appurtenant underground and
aboveground facilities. –JD
Tom Petrie is the Chairman of Petrie Partners
LLC, an investment rm offering nancial
advisory services to the oil and gas industry.
Prior to joining Petrie Partners as chairman
in 2012, Petrie was vice chairman of Bank of
America Merrill Lynch. Previously, he was co-
founder of Petrie Parkman & Co., an energy
investment banking rm based in Denver
and Houston that merged with Merrill Lynch
in December 2006. Petrie was also a former
managing director and senior oil analyst of
The First Boston Corporation.
During his career, Petrie has been an active
advisor on more than $200 billion of energy-
related mergers and acquisitions, including a
number of the larger mergers in the energy
industry. He provided advisory roles to the
Kingdom of Saudi Arabia on its natural gas
initiative, the state of Alaska on gas pipeline
options and the U.S. Department of Energy
on the sale of the Elk Hills oileld.
An active member of several industry
associations, Petrie is a past president and
member of the board of directions of
the National Association of Petroleum
Investment Analysts as well as others.
Additionally, Petrie has been interviewed
by Barron’s, CNBC, Bloomberg, Fox News
and PBS. He has also authored the book
Following Oil: Four Decades of Cycle-Testing
Experiences and What They Foretell about
U.S. Energy Independence.
Q: Can the U.S. really compete with OPEC in
terms of oil production?
A: Whether there is even a need to compete
will probably depend on the overall rate of
growth in world oil consumption. At the
moment, demographic trends still indicate
that signicant growth in global demand over
the next several decades is likely. If rates of
demand fall short of expectations, there could
emerge a degree of competition between the
U.S. and OPEC countries.
Q: Can the U.S. shale plays impact energy
A: I believe North Dakota’s recent emergence
as the second largest U.S. producer along
with other plays in Texas, like the Eagle Ford
and Permian Basin, Colorado (Niobrara) and
Oklahoma, the Lana Woodford and possibly
the SCOOP, do represent a much-welcomed
improvement in America’s energy security
It is important to note that total barrel-for-
barrel independence is neither necessary nor
even optimal for establishing oil security.
Given the varying characteristics of different
types of oil, some experts to the world
markets alongside imports of oil better suited
to U.S. renery needs is probably optimal.
The benets to the overall U.S. strategic
position in terms of a reestablishment
competitiveness in manufacturing and creation
of higher paying, sustainable jobs are also
signicant. Finally, there are likely net positive
environmental benets from the overall
shale revolution due to the growing role of
natural gas, both associated and dry, and
the proximity of production to consuming
markets. For example, these factors indicate
lower emission associated with transportation
of fuels.
Q: What does domestic production in shale
plays mean to energy prices?
A: As indicated in my prior remarks, all U.S.
unconventional oil development is price-
sensitive. If available oil supply were to exceed
demand, prices would come under pressure.
In that case, the U.S. will still be an importer
Q & A with Jason Spiess
Oilman Magazine / March-April 2015 /
of oil throughout this decade under most
scenarios. Thus, proximity to markets would
probably provide an advantage over domestic
sources. On a longer-term basis, the growing
availability of shale oil production could tend to
dampen the volatility of oil prices.
Q: Why is energy so popular?
A: We are at a major inection point regarding
the interrelationship of developing the energy
supplies needed for global economic growth
versus legitimate environmental considerations.
Technological advances in communications and
rising economic aspirations around the world
necessitate a focused and rational assessment
of strategies to meet these human needs. Only
a decade ago there was rising fear of a global
peak in conventional oil output. That has now
been meaningfully postponed by the revolution
in developing unconventional fossil fuels.
However, it will be critical to pursue these new
sources wisely while evaluation and validation
of alternatives involving renewable sources
continues to advance over a realistic timeframe.
Q: Why is discussing developing energy supplies
so often polarizing?
A: There are clear environmental impacts
from virtually all new project developments.
Introduction of greener energy solutions on a
cold-turkey basis can involve disruptions and
inefciencies that need to be well-understood.
Some advocates of a changing energy mix
appeal to asserted fears involving new projects as
opposed to fact-based and rational analysis. The
stakes are large and the economic consequences
are sufciently impactful that reasoned
judgments become crucial.
Q: What are some of the important historic
events that have affected the energy industry?
A: In my book, I draw from my four-decade
career in the energy industry. The historic
events surrounding the rise of power of
the Organization of Petroleum Exporting
underscored the central role of energy in the
national security calculus of the U.S. and its
western allies. Concurrently, the emerging
confrontations over development of Alaskan
North Slope oil and the pioneering effort to
tap large North Sea oil discoveries were used as
case studies for assessing the effectiveness of
capitalism in energy development on a national
and even global scale. In subsequent periods,
that theme became powerfully reinforced as we
experienced waves of mergers, several Middle
East wars, oil and stock market collapses, and
impressive entrepreneurial responses to changing
economic incentives. As a participant in and
witness to these incidents, I think there are
lessons that can be learned from such events.
Q: What does domestic production mean to
foreign affairs and politics?
A: As I outlined in my book, energy dependence
has periodically signicantly hampered U.S.
exibility in foreign affairs and international
politics. The price of oil has historically been
driven by geopolitical events. This has been
especially true since The Yom Kippur War of
1973. In subsequent years, the Iranian Revolution
of 1979, the Iran/Iraq War of 1981 through
1988 and the invasion of Kuwait in 1990 all
demonstrated the impact of geopolitical drivers
on the petroleum sector. If utilized wisely, the
new era of growing domestic supply prospects
should signicantly facilitate America’s leadership
in fostering global and economic stability.
Q: Do you see a future where natural gas is
traded at a global price
A: The connectivity of the U.S. to the
international market should have some effect
at bringing down the margin prices, but, I am
not sure it will be full conversion. I do think it
will, however, have a benet. Because what is
going to happen is the Chinese are a lot more
interested in buying gas here and delivering it
into their system, than buying $15 gas, because
it’s much more ination. So there is going to be
a real dynamic there. That depends on several
things happening. I was down at the Panama
Canal in June of 2013, and the Panama Canal
project looked like it was going to get hung up,
but once the new Panama Canal comes online
we are going to be talking about a much greater
connectivity of U.S. gas into the market.
Q: Where do you see energy heading?
A: While I have addressed many of the
challenges I see in developing new energy
supplies, I nd myself perversely positive about
the future, especially for the U.S. After four
decades in which the U.S. has endured a large
structural trade decit due in part to rising oil
imports and prices, we are now positioned to
experience a very signicant – but perhaps not
total – reduction in oil import dependence. We
have learned much from our past mistakes and
are now capitalizing on recent technological
advances. Also, if used effectively, natural gas can
provide a much- needed multi-decade transition
to a new energy future. In sum, we have much-
improved optionality for meeting our upcoming
energy needs.
Oilman Magazine / March-April 2015 /
Oilman Magazine / March-April 2015 /
Energy Scene with Jason Spiess
 
  
XTO Energy holds the mineral rights on
the property about 20 miles northeast of
Watford City and is working with Houston-
based Nabor’s Drilling to drill wells
and extract oil and natural gas from the
Bakken shale formation about 17,000 feet
The oil and gas industry has invested large
amounts of capital into efciency, and rig
assembly is just one of the examples of it
paying off.
A good rig move, assuming all the trucks
and everything moves in a perfect world,
will take about four days.” Olsen said. “We
contract out the trucks and crane, but our
crews do pretty much everything else.
A well cycle operates in three phases –
drilling, completion and production. The drill
is surrounded by a sea of metal, machinery,
computer monitors and safety signs. It is
controlled in a nearby room by directional
drillers, who monitor graphs and relay
instructions to the driller. The driller, in turn,
precisely controls the drill underground.
As the well is drilled, multiple layers of steel
pipe, casing and cement are lined to separate
the oil and gas. The well is equipped with
a blowout preventer (BOP), which acts as
a backup in case there are any issues in the
The BOP is a large, specialized mechanical
device used to seal, control and monitor oil
and gas wells. The BOP controls the extreme
erratic pressures and uncontrolled ows
or kicks emanating from the well reservoir.
Additionally, the BOP controls the down
hole pressure and ow of the oil and gas.
“Tyson and I have put the BOP together
more times than I care to recall,” Nabor’s
Greg Burquist, drill superintendent said.
“The BOP is the fail safe device.
Oilman Magazine / March-April 2015 /
   
 
 
through a hopper
Oilman Magazine / March-April 2015 /
Oilman Magazine / March-April 2015 /
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 companys success. Our
Health, Safety, and Environmental (HSE) consultants
and specialists are equipped and available to address
your company’s 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.
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.
Oilman Magazine / March-April 2015 /
Oilman Magazine / March-April 2015 /
Oilman Marketplace...........For advertising information call 800-562-2340 ex. 1, 8am-5pm CST OR EMAIL ADVERTISING@OILMANMAGAZINE.COM
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.
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 / March-April 2015 /
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
To add your business lisng to the OILMAN
Marketplace, or for more informaon about
all of our aordable adversing opons,
contact us at:
Email: adver
Phone: 800-562-2340 Ex. 1
PO Box 692
Pearland, TX 77588-0692
Facebook: hps://
James Blount
(832) 364-5840
Daniel Blount
(281) 910-0228
PTA Safety is a premier safety and security training
company located in Houston, Texas; which travels
to you. Whether your needs are Health, Safety,
Environmental, Security, or Quality; you have come to
the right place.
PTA instructors have experience in many industries
and those invaluable experiences culminate into a
fun and educaonal classroom experience that will
not be soon forgoen. Please give us a call.
MidSouth Bank, NA
Louisiana and Texas
(337)237-8343 in Lafayee
(800)213-BANK (2265) outside of Lafayee
The mission of MidSouth Bank is to serve the
communies of Louisiana and Texas by providing
compeve nancial services. These services should
increase shareholder wealth and yield undivided
prots to protect the depositors of MidSouth Bank,
NA. Realizing our future is dependent upon the
development of our employees, we are commied
to improving professionalism and delivery of
services, while focusing on internal growth. We will
deliver exible, innovave banking services which
are accurate and ecient, always conducng our
business in an ethical manner.
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
The Company’s core consulng porolio includes
Global R&D Tax Credits Analyses, Hiring and
Locaon- Based Incenves, Unemployment Claims
Management, IC-DISC, Domesc Producon Acvies
Deducon, Grant and Non-diluve Funding Advisory,
Cost Segregaon Studies, Tax Controversy, Patent and
Audit Defense Services.
Add your business to the OILMAN
Magazine Marketplace.
Call 800-562-2340 Ex. 1 or email to submit
your business listing information.
Oilman Marketplace...........For advertising information call 800-562-2340 ex. 1, 8am-5pm CST OR EMAIL ADVERTISING@OILMANMAGAZINE.COM
Port of Iberia
For leasing informaon contact Roy Pon:
Ph. 337-364-1065
Email: royp@porto
Website: www.porto
4611 South Lewis St.
New Iberia, Louisiana 70560
Markeng: markeng@porto
Administraon: administraon@porto
General Inquiries: info@porto
General Phone: (337) 364-1065
Fax: (337) 364-3136
Located near the Louisiana coast in Iberia Parish,
the Port of Iberia is a 2,000 acre industrial and
manufacturing site surrounding a man-made port
complex. The port has access to the Gulf Intracoastal
Waterway and the Gulf of Mexico through its own
Commercial Canal and has access to the Mississippi
River through major ports in Baton Rouge and New
24 Waterway Avenue, Suite 1100
The Woodlands TX 77380
Ph. 281-719-6100
1800 Hughes Landing Blvd.
The Woodlands, Texas 77380
The Woodlands currently has 9.9 million square
feet of high quality oce space. While much of
the exisng space is already under lease, a limited
number of immediate occupancy opportunies
exist. See all the current available oce space.
Featured Property:
Two Hughes Landing
Bring your company home to The Woodlands’
newest desnaon – Two Hughes Landing. This new
Class A, 8-story, 197,000-square-foot oce building
is located in Hughes Landing on Lake Woodlands, a
66-acre mixed use development planned to include
up to 11 oce buildings complemented by retail
shops, restaurants, bouque hotels and urban
residences. Situated at the upper end of 200-acre
Lake Woodlands, Hughes Landing will be a naturally
beauful, walkable environment to be enjoyed by
employees, residents and visitors.
Oilman Magazine / March-April 2015 /
OPEC and Rednecks
By Steve Burnett
The inspiration for this cartoon is from the
recent OPEC decision to not cut production,
but to keep the market saturated with cut rate
oil. Some analysts claim that OPEC is trying
to take the shale gas out of market. It is an
interesting concept. OPEC’s primary focus is to
drive U.S. oil out of the U.S. domestic market. It
is not like we are exporting our oil on the world
market and keeping them from reaping prots
from other countries. It is our own prot they
are looking to knock out. It is my belief that
they have greatly underestimated the strength of
our petroleum industry.
I think we have had enough people in the
industry that have known that this could be a
possible scenario all along. I know there has
been a development of sonic fracking that will
revolutionize the industry. I also know that it
has been tested in the eld. I expect the industry
to tighten its belt and cut costs, but I think we
will also see a much more efcient revolution
of extracting the shale oil that will keep the
domestic petroleum industry as strong, if not
stronger, than it has ever been before. It is also
evident that OPEC is not concerned with all its
The cut rate price they are keeping on the
market is going to greatly dismantle more of
its own member’s economies than the U.S. This
situation looks like more of an opportunity
to start a new world power structure in the
petroleum industry and nally put the old
OPEC powers out to pasture.
Recently, I was informed that my cartoons were
too “redneck.” The person that was enlightening
me just happened to have moved to the U.S.
from the Middle East to open a fracking
business. One point that I longed to make
was that this person came to “my culture” and
decides to comment on my work being redneck?
However, my Texas ethics kept me from making
several comments that I should have made.
While I admit that I have been known to be a
redneck and quite proud of it, I wanted to make
the point that his denition of a redneck was
only something he had heard jokes about or
seen on YouTube.
If he really wants to be able
to judge my culture, he needs
to become a part of it, get a
rsthand view, which you do
not get from a fancy ofce
in Houston or by zipping
around in a corporate jet.
Get out on the interstate and
have your Mercedes break
down at the side of the road.
That person that stops to
put your alternator belt on
for you is that redneck that
you like to look down your
nose at.
This person also commented
that some of the 2015
CRUDE Calendar Cartoons
were an example of my
“redneck” humor. He said
the June cartoon about
the, cartel’s casa el burton
mud delivery would offend
his friends in Mexico. If a
cartoon about the Mexican
Cartel offends your friends,
then buddy, your prot
margin in Mexico has
nothing to do with fracking. My Mexican and
Hispanic friends hate the cartel just as much
as everybody and see no offense in a cartoon
that shows them to be stupid and inept. He also
said the April 2015 cartoon about Baku Gas
Detectors would offend his Russian friends. (Oh
gee, there go all my Russian sales.)
I guess all along the joke was on this old dumb
redneck, because you see this fracking investor
was looking for more cartoons about fracking
so he could print up his own calendar. He had
already downloaded a few of mine from the
internet but wanted a few more to make his own
fracking calendar. Too bad I just did not have
enough time to whip him out a few more, but I
have a 60 hp Johnson I need to nish putting a
head gasket on.
May your boots be dry, your coffee fresh, and
your gloves new. Kybree
Steve Burnett
IN CLOSING | 225-924-7788
When the work throws something unexpected, Louisiana’s workers count on us.
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