TX Oilman Magazine Jan/Feb 2014 : simplebooklet.com

Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 20144 MAGAZINEJANUARY — FEBRUARY 2014PUBLISHED BY Oilman Magazine, LLC116 W Main STNorman, OK 73069(800) 562-2340OilmanMagazine.comPUBLISHERLuke McDonaldpublisher@OilmanMagazine.com(800) 562-2340 Ex. 5View the publisher’s introduction at OilmanMagazine.com/subscribeLOUISIANA OILMANASSOCIATE PUBLISHERD. L. Georgedlgeorge@OilmanMagazine.com(800) 562-2340 Ex. 2CONTRIBUTING WRITERSDon BriggsStory Sloane III—The Sloane Gallery— Houston, TexasSUBSCRIPTIONSOilmanMagazine.com/subscribeADVERTISING(800) 562-2340 Ex. 1advertising@OilmanMagazine.comOilmanMagazine.com/advertise© Copyright 2013 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, 123rf.com.DownHole DataDepartmentsCompany SpotlightsFeaturesDupre’ Logistics— Page 18AMPOL— Page 22OMI Environmental Solutions— Page 26Sources: BakerHughes.com — U.S. Energy Information Administration (EIA)OIL RIG COUNTSTX: December, 2013— 843LA: December, 2013— 111TX: November, 2013— 829LA: November, 2013— 108 TX: October, 2013— 820LA: October, 2013— 108TX: September, 2013— 837LA: September, 2013— 111OIL PRICES (BARREL)October, 2013— $96.24September, 2013— $102.45August, 2013— $103.13July, 2013— $101.61June, 2013— $94.05May, 2013— $95.00April, 2013— $94.72March, 2013— $95.85CRUDE OIL PRODUCTION (BARRELS)TX: Oct, 2013— 85,320,000LA: Oct, 2013— 5,924,000TX: Sep, 2013— 81,067,000LA: Sep, 2013— 5,959,000TX: Aug, 2013— 82,958,000LA: Aug, 2013— 6,233,000TX: July, 2013— 81,362,000LA: July, 2013— 6,517,000NATURAL GAS MARKETED PRODUCTION (Volumes in Million Cubic Feet)TX: September, 2013— 610,911LA: September, 2013— 180,868TX: August, 2013— 633,277LA: August, 2013— 197,390TX: July, 2013— 636,469LA: July, 2013— 207,000TX: June, 2013— 605,288LA: June, 2013— 197,446// In This IssueOILMAN PRIDE Honoring Our Proud HistoryPage 6-8Killing the Golden Goose— Don Briggs, LOGAPage 10Downhold Data | Oil Briefs Page 28FeatureNumbers Fly Off the Charts—Page 12 FeatureRushing to the Gulf of Mexico—Page 14ENGINEERING & MANUFACTURINGOil and Gas Careers—Page 16Transportation & LogisticsNatural Gas-Powered VehiclesPage 20Environmental & SafetyOSHA Forms Alliance—Page 24

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201410Killing the Golden GooseBy Don Briggs — President Louisiana Oil and Gas Association// ColumnA common saying in the South is “Don’t kill the goose that laid the golden egg”. In Louisiana’s business environment, this golden goose is Louisiana’s oil and gas industry. The industry contributes in severance taxes, royalties and bonuses between 15-17% of the states general fund revenue and contributes 19 billion dollars in annual impact to the state’s economy. These dollar amounts do not even account for the tens of thousands of direct and indirect jobs that come from the oil and gas industry. This week, the South Louisiana drilling rig activity reached an all-time historic low with a mere 13 rigs running on land. Why is this rig count so low? With over $100 per barrel oil and a booming oil and gas industry around the rest of the United States, why? The president of a medium size independent company answered these questions by simply stating, “My investors don’t want to cross the Sabine River because of Louisiana’s legal climate”. His answer sounds very simple, but the situation is actually extremely complex. However complex the situation may be, a caustic legal climate is currently a reality in Louisiana. Proponents of the lawsuits are often quoted as saying, “The oil companies will not leave Louisiana. As long as there is oil and gas in the ground, these companies will be here.” These statements are partially true in the fact that the companies will not leave completely, however, they will NOT REINVEST in our state. Eventually oil and gas production will deplete, as will the billions in revenues and thousands of jobs for our state economy. The year 2003 was the beginning of the “legacy lawsuits” feeding frenzy by a small group of trial lawyers. Fast-forwarding to today, more than 350 such lawsuits exist with around 2,000 defendants. Legacy lawsuits are lawsuits that can be led or authorized by landowners, school boards, the Louisiana Attorney General, parish governments and levee boards to name but a few. These suits are against oil and gas companies for alleged land contamination during drilling activities that were performed decades ago. As a reminder, these drilling activities were legal according to the existing technology and regulations of that time period. In other words, these suits convey a message to the companies that states, “Drill here today and we will sue you 20 years from now for an alleged issue that requires little to no proof.” According to the U.S. Chamber of Commerce, Louisiana is the 2nd most litigious state in the United States. So, when a company is contemplating where to invest in a drilling program or where they will get the best bang for their buck, the current legal climate in Louisiana is deterring future investments. You simply cannot sue thousands of companies and individuals with such frivolous lawsuits and NOT expect to have a drastic impact on the business climate.Here are the facts: drilling activity in South Louisiana is facing an unprecedented decline and will continue to be in a decline until the state of Louisiana recognizes its severe need for legal reform. Without such positive reform, the Golden Goose will be killed.w w w . w i n n r o c k . c o m(318) 628-352310264 U.S. 84 | Winnfield, Louisiana 71483Louisiana's superior rock resource.Winn Rock's local quarry produces crushed stone for all of your needs. Our applied cost saves you both time and money with no compaction necessary.Oilﬁeld and natural gas sitesLogging and forestry roadsParking and storage areasMining operationsSecondary public, private andindustrial haul roads●●●●●

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201412Texas Oil and Gas Numbers Fly Off the ChartsSOURCE: Forbes— The growing scale of the oil and natural gas boom in Texas continues to stun most observers. We have discussed this phenomenon periodically, but the newest developments are so off the charts that an update is warranted. We’ve pointed out a couple of times that Texas’s oil production represents roughly 30% of the total US output, an amazing statistic, especially considering that the percentage was below 15% just a few years ago. In May, that statistic became even more amazing, as Texas accounted for 34.5% of total US oil production, thanks to continued production growth in the Eagle Ford Shale and in several shale plays in the Permian Basin region of West Texas. As Dr. Mark J. Perry points out in his Carpe Diem blog, Texas’ daily oil output has doubled in just a little more than two years, averaging 2.525 million barrels per day in May, the highest daily output the state has experienced since April 1982. In February of this year, Texas – were it a nation in and of itself – would have ranked as the 14th largest oil producing nation on earth. In April – the most recent month global data is available – Texas would have ranked 12th among all nations, in this category, just ahead of Venezuela, and slightly behind Kuwait and Mexico. By the end of the year, when Texas’s daily production is likely to exceed 3 million barrels per day, Texas would likely rank 9th on this list. Extraordinary. Where natural gas is concerned, Texas accounted for just over 27% of all US production in May, and would still rank 3rd among all nations in natural gas production, behind Russia and the other 49 US states.Facilitating all of this production growth is the fact that the latest rig count indicates Texas remains home to 832 drilling rigs, about 47% of all land rigs in the United States, and fully 25% of all the rigs working anywhere in the world. Again, extraordinary. So now that we’ve got the numbers accounted for, let’s talk about the real-world impact of what this amazing growth means for Texans. One terric example came to light late last week, when Texas State Comptroller Susan Combs was able to make the happy announcement that state receipts from oil and gas severance taxes had exceeded her projections for the rst nine months of Fiscal Year 2013 by a whopping $900 million. The Comptroller’s announcement came shortly after Texas Governor Rick Perry had called the Texas Legislature back for a 3rd straight special session, with the House and Senate deadlocked on how to produce more funding for maintenance and expansion of state highways. Each house had produced competing bills designed to dedicate excess funds from the state’s Rainy Day Fund in order to accomplish that task. The good news for Texas is that the Rainy Day Fund is almost entirely funded by oil and gas severance tax collections, and the Comptroller’s announcement that the Fund would be much more ush with money than previously thought provided the impetus necessary to break the impasse. So on Monday, the Legislature was able to reach agreement on a mechanism directing an additional $1.2 billion from the Rainy Day Fund to highway construction and maintenance, and nally, at long last, adjourn the session so that members could return to their homes, families and jobs. That’s great news in and of itself, but it’s not where this story ends. During the regular session, the Legislature also passed a series of bills that will also tap surplus funds in the Rainy Day Fund to fund the State Water Plan, as well as other road, port and rail infrastructure projects desperately needed in the state’s rapidly growing economy. The legislation would create two funds: 1) The State Water Implementation Fund (SWIFT) that will contain $2.5 billion to fund projects in the State Water Plan; and 2) The State Water Implementation Revenue Fund of Texas (SWIRFT) that will contain $3.5 billion for road, port and rail infrastructure projects. All told, the legislature was able to tap the almost exponential growth in the Rainy Day Fund for more than $7 billion to pay for a great variety of much-needed infrastructure projects. As an aside, The State Water Plan was conceptually approved by the Legislature in 1997, but not funded. For the last 16 years, proponents have tried in vain to devise a source of funding for the plan that does not involve an increase in taxes. As recently as two years ago, no one had the slightest idea how the Water Plan or any of these myriad other infrastructure needs could be paid for. Today, thanks to the amazing growth in Texas oil and natural gas production since 2011, and the resulting windfall of tax revenues that has produced, the legislature was able to fund all of that, without any sort of tax increase, and still maintain a very healthy balance in the Rainy Day Fund. The result is a great story that opponents of the oil and natural gas industry hate to hear, but it’s a story that is well worth telling. Good news of this magnitude – like rain, it seems – doesn’t just fall out of the Texas sky on a regular basis. God Bless Texas.// FeatureAlso on OilmanMagazine.com — Texas Sees Growth in Natural Gas-Powered Vehicles... Developments in Hot Tapping Technology... A Roadmap For IP Protection Strategies....Texas’ daily oil output has doubled in just a little more than two years... thanks to continued production growth in the Eagle Ford Shale and in several shale plays in the Permian Basin region of West Texas...

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201414Oil Drillers Rush Back to the Gulf of MexicoSOURCE: businessweek.com// FeatureThe Gulf of Mexico has been left for dead more than once over the past half-century. It’s now roaring back to life with at least 10 recent mega-discoveries that have renewed oil explorers’ enthusiasm for the region. Billions of dollars are being poured into new wells in the ultra-deep waters off Texas and Louisiana, fueling a resurrection that could set a production record this decade and complete a recovery from the worst offshore oil spill in U.S. history.In 2014, output from the deepest parts of the Gulf, where the water is more than 1,300 feet deep, will be equivalent to about 1.5 million barrels of oil a day, 15 percent more than this year, according to estimates by energy consultants Wood Mackenzie. By 2020, the rm says, the deepwater Gulf, which accounts for about half the Gulf ’s 252,000 square miles of federal waters, is expected to produce an average of more than 1.9 million barrels a day, a new high. “Investors should not sleep on the Gulf of Mexico,” says Brian Youngberg, an analyst with Edward Jones in St. Louis. “Onshore shale is obviously the main driver in the growth in U.S. production, but going forward, the Gulf of Mexico should start contributing to that.”dec-2013_IHS_data_BW47_energy_gulfchart_315U.S. crude production has surged in recent years, largely because companies used hydraulic fracturing and advanced drilling technology to open onshore shale formations. Now producers including Chevron (CVX), Royal Dutch Shell (RDS/A), and Anadarko Petroleum (APC) are preparing to surpass the Gulf ’s 2009 peak; production collapsed after BP’s (BP) 2010 spill. That disaster, and the ve-month drilling moratorium that followed, led to an exodus of rigs and drilling equipment as regulators bolstered safety requirements. As large oil companies have begun drilling again, so has BP, which remains a major operator in the deep Gulf. It was the biggest producer there in 2012 and has ownership stakes in more than 650 leases.In the late 1970s energy companies began referring to the Gulf as “the Dead Sea.” Shallow-water wells drilled decades earlier were tapering off, and the industry lacked the technology to nd oil in the deeper waters. New seismic equipment has since let explorers see through once-opaque layers of rock. Engineering innovations enable companies to lower their drills through 10,000 feet of water to the seabed. There the drills penetrate 5 miles into the earth’s crust, where temperatures are hot enough to boil water and high pressures approach the weight of four cars resting on one square inch. That seismic and drilling technology has improved even since the 2010 oil spill, allowing ventures into deeper and deeper waters.Chevron, with a company-record ve rigs drilling, is among the most bullish. The company expects its $7.5 billion Jack/St. Malo platform to begin producing oil and gas in 2014, with a long-range target of 177,000 barrels per day. Other deep-water projects that may begin producing in the Gulf next year include Anadarko’s Lucius, Hess’s (HES) Tubular Bells, and Murphy Oil’s (MUR) Dalmatian. Gulf projects can cost $15 billion for infrastructure, wells, and facilities, and take more than a decade to bring into production.The U.S. Department of the Interior estimates the Gulf has 48 billion barrels of oil yet to be discovered. “What catches our attention,” says Robert Ryan, vice president for global exploration at Chevron, “is the potential—billions of barrels right in our own backyard.”Also on OilmanMagazine.com — Texas Oil And Gas Numbers Fly Off The Charts... House Approves Bill To Speed Up Oil And Gas Drilling... Higher U.S. Oil Drilling Has An Unexpected Effect

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201416// ColumnThe time is now for oil and gas engineering, design careers SOURCE: chron.com// Engineering & ManufacturingWith the oil and gas industry currently in an upward cycle, driven by the natural gas shale-play discoveries in the United States, companies continue to scramble for quality talent to ll an array of positions, predominantly in engineering and design roles. “It’s a glory time for engineering and design,” said Tim Turner, the recruiting manager of Foster Wheeler USA, a global engineering and construction company. “From my perspective, I’m seeing a lot of new projects and anticipate a very positive outlook for the near future.”The demand for experienced talent is tremendous. Bill Bradshaw, president of Afnity, a specialized stafng and recruiting services company, said career opportunities are hot for oil and gas engineers. “It’s all disciplines – structural, process, designers – it’s not just one group blowing up, they are all blowing up,” he said. “We are doing our best to keep up with domestic demand. We have so many opportunities to help companies in the United States we aren’t even looking overseas.” Ryan Hanemann, president of Audubon Engineering, agreed. “It’s all about talent acquisition now,” he said. “Every discipline of engineer and draftsman is in demand and it’s difcult to nd the best people in every discipline. It’s a resource-constrained market.” Turner said the majority of job opportunities are in the downstream sector of rening and petrochemicals, but that the offshore industry in the upstream sector is on the rise. He said all disciplines are sought, but tops his list with mechanical and process engineers. “The biggest emphasis is on the planning and scheduling disciplines,” he said. With the competition for experienced talent described as “cut-throat” by Hanemann, companies need to be creative in nding and retaining employees. “At Audubon we are doing controlled growth by only hiring people referred to us by employees,” he said. “Our employees help us in the ‘quest for the best’ by building their own teams and turning the company into a club that people want to get into.” Audubon moved to this strategy from a broader, shnet approach to recruiting to ensure applicant quality, Hanemann said. Turner said there is no lack of applicants, but the issue is nding people with industry and project experience. “We are all trying to nd the exact same person and competing with offers from several companies at one time,” he said. “We’re very pleased that Foster Wheeler has one of the strongest college graduate-recruiting programs with a large number of new hires from colleges, but at same time, we have to keep a focus on more experienced engineers and designers who can launch immediately and without supervision.” Turner said that proven tenure with projects and companies is crucial for many of their positions. Foster Wheeler has expanded the geography of its talent search beyond the Houston area to other parts of the United States and Canada, while maintaining stringent standards for applicants. “We never sacrice on those requirements,” he said. “It does take more patience and more creative recruiting methods, but our clients are counting on us to provide same top quality and we can’t do that if we hire someone unqualied for the position.” Rather than escalate salaries, companies are looking for ways to improve benets and workplaces to attract and retain talent. Turner said he hears from recruits that key determiners can include paid time off, retirement contributions and wait time for benets eligibility.College graduates represent a huge prospect pool to all the companies, with more students showing an interest recently in oil and gas careers. Hanemann attributed this primarily to attractive salaries and numerous job opportunities, but also to a more philosophical pursuit. “It’s exciting to feel like you are doing something important, because this is what civilization needs,” he said. “It’s a noble quest as well as a protable one.” Bradshaw agreed that potential income is a big draw for students, and sees an idealistic interest in the challenges of how to produce cleaner and safer energy. Though fresh graduates have great potential, the real job training comes down to the employers teaching and mentoring to bring along new hires quickly, he said.Many oil and gas companies are responding to this need by putting programs in place internally to mature young talent. For example, Foster Wheeler has a strong mentoring program, Turner said. And, Audubon Engineering has Audubon University for its new graduate hires. “It’s really about developing young people,” Hanemann said.Bradshaw said recruiting efforts need to start even earlier than college level. “The engineering companies and operators have to get out to the junior high and high schools,” he said. “They have to point out the whole industry as a viable choice for a career. And we need to change the perception that the only people who can be engineers are those extremely good at math. Yes, you have to be smart and have some technical ability, but it is so much more than that. It’s project management, it’s self-management, it’s people skills.”All three experts agree that it is a great time to have a technical degree. “I believe that even with importing talent, we still aren’t going to be able to keep up with the demand,” Bradshaw said. “It’s a great profession to be in with tons of opportunity. You can do almost anything. Companies are looking for great people.”Also on OilmanMagazine.com — Texas Oil And Gas Numbers Fly Off The Charts...Midland, TX Is Now The Richest Metropolitan Area In The U.S... Sabine Pass seeks to export....

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201418A Year in Review: Dupré LogisticsIn 2013, Dupré Logistics continued to conrm the company’s reputation of safe service, environmental responsibility and active involvement while growing their company to reach into new niche markets and areas. Established in 1980 with only two trucks, Dupré has grown to operate more than 500 trucks, employs over 1,200 professional drivers in its dedicated eets and has established a network of 2,000 preferred carriers through a stringent carrier approval process. Dupré has an ability to enable manufacturers and distributors to eliminate the invisible costs that occur in their distribution and supply chain. Dupré clients gain increased productivity, permanently decrease their cost structures and become more competitive and protable through the Dupré approach- a results-based supply chain process. Throughout 2013, Dupré has reached a number of milestones in its pursuit of excellence for our clients including:Safety Record:Using its employee safety programs as a catalyst for growth and not just an afterthought instituted to meet regulatory requirements, the company has created a progressive, award-winning environment that has kept it growing and vibrant. Dupré has had a longstanding tradition of recognition in safety. In 2013, Both the Texas Motor Transport Association (TMTA) and the Louisiana Motor Transport Association (LMTA) recognized Dupré for their safety performance. The American Trucking Association (ATA) presented Dupré Logistics with three awards at their annual Safety & Human Resources Conference. The National Tank Truck Carriers (NTTC) Association awarded Dupré Logistics with the Grand Award in the 31.5 – 40 million mile class in Personnel Safety.Employee Training and Monitoring:Dupré’s Safety program is continuously looking forward to evolve as the industry changes, in 2013, that evolution occurred as well. With ongoing training for all of its employees, from the top down, Dupré’s corporate culture is one of safety. Each Dupré driver is given courses on safe driving and evaluated on a regular basis. The Dupré safety initiative includes the direct monitoring and observation of drivers in the eld. Combining fatigue management with measuring and analyzing driver data has gotten the company recognition nationwide as an innovator. Environmental Responsibility: Dupré strives to be a leader in freight supply chain environmental performance and energy efciency. Dupré Logistics demonstrated top environmental performance by effectively hauling all freight with environmentally and energy efcient SmartWay carriers. Industry Change: In early July new Hours of Service regulations were put into effect by the US Department of Transportation. Those in the Oil and Gas industry, working on tight deadlines and a fast pace, must be prepared for these changes, pay attention to the regulations and prepare to mitigate the impact of the change. The two major changes focus on when truckers can “restart their clocks,” and when and how they must take rest breaks. It is often said that with every challenge lies an opportunity. The HOS regulations certainly present a challenge that when properly managed provide you the opportunity to exploit operational excellence and drive improved performance against your competitors. Dupré Logistics continues it works with the Alliance for Driver Safety and Security (The Trucking Alliance), a small group of trucking companies that formed to lobby Dupré’s corporate culture is one of safety. Each Dupré driver is given courses on safe driving and evaluated on a regular basis. The Dupré safety initiative includes the direct monitoring and observation of drivers in the eld. // Transportation & Logistics

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OILMANMAGAZINE.COM19for a dened set of safety initiatives that affect the industry. The Trucking Alliance membership is evidence of Dupré’s commitment to passing effective and important legislation. Currently, the alliance is focusing on mandatory speed limiters and improvements to drug and alcohol testing amongst other safety initiatives. Dupré is playing an important role in lobbying for the initiative surrounding their innovative fatigue management program. Community Involvement: Dupré Logistics, a trucking and logistics provider operating throughout the United States, is partnering with local re emergency responders to prevent rollovers of water transporting re trucks, known in the industry as a water tanker. With a DVD produced through National Tank Truck Carriers (NTTC) association, Dupré’s local Field Safety Representatives are sharing training and expertise in preventing deadly commercial vehicle rollovers. Fire water tankers often transport hundreds of gallons of water in time-sensitive emergency situations. The NTTC reports that water tanker drivers have been killed or injured as a result of these rollovers due in part to lack of training for many reghters many of which are volunteers. Dupré’s employees are distributing the NTTC’s Cargo Tank Rollover Prevention video and sharing safety principles that commercial tank truck drivers use every day to haul both dangerous and nontoxic liquids.Changing the Game with Shale:As more shale formations are being discovered and developed throughout the United States, logistics providers are playing a more important role in addressing the needs of energy producers. Dupré has been a mainstay in the gulf coast energy sector throughout its history, growing into a full-service provider throughout the country. As directional drilling and shale fracturing techniques have allowed oil to be accessed and gathered for rening in ways never done before, Dupré’s role as an innovator and safety specialist is regularly tapped in the harsh shale play landscape. Even as efforts continue to bring more capacity and exibility to the nation’s pipeline infrastructure through the Keystone XL and other smaller projects, Dupré is focused on the growth of the short haul for bulk crude and gas loads as pipeline capacity makes that method of delivery more economically viable. That shorter haul also eliminates one of the biggest dangers in trucking, the physical demands of marathon-length runs across the nation’s interior on both drivers and equipment. Dupré Logistics works with major oil producers to provide truck takeaway capacity for crude oil in the Eagle Ford shale play, a growing energy sector in southwest Texas. Drivers:In August, Reggie Dupré, CEO of Dupré Logistics, spoke about the company’s innovative safety program at the annual Commercial Vehicle Outlook Conference in a panel titled: How Regulations & Customer Demand are Driving Safety Technology Forward. Dupré provided the unique perspective as an operator who relies on recruiting, retaining, training and knowing their drivers who implement the company safety program with the assistance of technology.Dupré’s safety program utilizes equipment, technology and research as part of their safety program. However, the company recognizes that their team members hold the key to success. That is the main reason for the overall Dupré Logistics personnel strategy called “The Ideal Place to Work.” The company wants to have the best people in the industry so Dupré can give the best service. In order to do this, Dupré needs to have the best jobs to have the best people. For professional drivers, Dupré pays hourly and overtime after 40 hours. The company also has an advanced understanding of fatigue and what is does to the body. They apply this knowledge of the body’s physiology to create and manage driver schedules that are both benecial for the client and allow the driver to have optimum performance. Additionally, Dupré utilizes technology to monitor performance indicators of each driver. The company places a great importance on communicating the results to those behind the wheel. The safety monitoring mechanisms open the door for communication so that drivers are always seeking continuous safe service and improvement. Driver Performance Management:GreenRoad™, owner of driver performance management technology, announced the recipients of the rst annual Fleet Elite™ awards. As the leading driver performance management service for eets, GreenRoad™ uses cloud and mobile technology to help drivers self-improve. The technology-based driver performance management service provides drivers with real-time, in-vehicle feedback every trip, every mile. A series of green, yellow and red lights in the vehicle notify the driver and the company of 5 risky events (speed, cornering, lane handling, braking, acceleration) that are tabulated to reveal a safety score. Driver behavior is measured using a sophisticated combination of a sensitive accelerometer, GPS data and advanced algorithms. Dupré has used GreenRoad to realize signicant savings because better drivers use less fuel, crash less frequently and reduce vehicle emissions. Proven across 70,000 drivers worldwide, in all vehicle types and industries, GreenRoad dramatically reduces fuel consumption and crashes so customers realize positive ROI within 60-90 days. Six hundred Dupré drivers were recognized with the Fleet Elite distinction as the best eet drivers on the road. Fleet Elite status is awarded to GreenRoad drivers who maintain a GreenRoad Safety Score of 5 or less for the previous fullcalendar year, and log over 500 GreenRoad driving hours. In 2012, less than 5% of the global GreenRoad driver base attained Fleet Elite status. About Dupré Logistics:Dupré Logistics, LLC is a team of professionals who design and deliver safe, diversied solutions and services for quality-focused clients committed to increasing their competitive advantage. Dupré has more than 1,300 team members and is headquartered in Lafayette, La. For more information, visit www.duprelogistics.com. For forward thinking about logistics, visit blog.duprelogistics.com.

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201420Texas Sees Growth in Natural Gas-Powered VehiclesFolks driving natural gas vehicles around San Antonio will soon have less to fear about running out of fuel. This month, at a Pilot Flying J truckstop off Interstate 10, a Clean Energy fueling station is expected to ip the switch on the city’s rst natural gas pumps. The liqueed natural gas station will plug a gap in what Texas calls its “Clean Transportation Triangle,” a growing network of natural gas fueling stations along highways that link San Antonio, Austin, Dallas, Fort Worth and Houston. The bustling region is home to 10 percent of the nation’s trafc.Natural gas enthusiasts say the station is one of many signals that the fuel, which burns cleaner than unleaded or diesel gas, is gaining more than a toehold in Texas’ transportation sector, as a mix of factors combine to erode long-standing barriers to expansion, including a lack of fueling infrastructure across the U.S. and the high upfront costs of natural gas vehicles. “The tipping point has already started,” said John Esparza, president of the Texas Trucking Association. “We’re seeing an across-the-board increase.”Oil, of course, still has a stronghold in the auto industry, and costs continue to limit the number of natural gas-powered personal vehicles from hitting roads. But truckers, large companies and even public agencies across Texas are increasingly purchasing natural gas vehicles in hopes of saving on long-run costs and boosting their green credentials. Those Also on OilmanMagazine.com — Texas Oil And Gas Numbers Fly Off The Charts... Utilizing In-truck Printers to Comply with DOT and Client needs... DOT’s new driver hours is hurting productivity// Transportation & LogisticsNatural gas enthusiasts say the station is one of many signals that the fuel, which burns cleaner than unleaded or diesel gas, is gaining more then a toehold in Texas’ transportation sector, as a mix of factors combine to erode long-standing barriers to expansion....

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OILMANMAGAZINE.COM21Also on OilmanMagazine.com — Texas Oil And Gas Numbers Fly Off The Charts... Utilizing In-truck Printers to Comply with DOT and Client needs... DOT’s new driver hours is hurting productivityinclude public transit systems in Dallas, Houston and San Antonio. The River City also operates the state’s largest eet of refuse trucks.The trend is unfolding across the country. For instance, some 60 percent of new waste trucks purchased in 2013 were powered by compressed natural gas. That was up from 3 percent in 2008, according to Americas Commercial Transportation Research. Texas is home to 69 active natural gas fueling stations (both liquied and compressed gas) in at least 40 cities, and more than $75 million in private investment has been put toward 62 stations, according to tracking by Pioneer Resources, a large oil and gas company that has been gradually converting its eets to natural gas power.It’s hard to tell how that number, which includes private stations, compares with tallies in other states, because that data is not publicly available. Of all 654 public stations across the country, however, 42 are in Texas, according to the U.S. Department of Energy. The vehicle’s growth in Texas is thanks in part to the millions of dollars in grants the state has doled out in recent years. That includes $3.9 million spent on fueling stations in the “Triangle,” following passage of legislation in 2011, and nearly $1.8 million for storage and compression infrastructure in counties that struggle to meet air regulations, made possible by legislation in 2013. “Texas is certainly leading the way,” said Patric Rayburn, a spokesman for Clean Energy Fuels, which owns more than 400 fueling stations across the country. Those policies and others are a “vote of condence,” he said.But Rayburn and other observers say the trend’s far bigger drivers amount to simple economics. The nation’s surge in natural gas production has made the fuel far cheaper — as much as $1.50 less per gallon, in some cases — than gasoline and diesel, while natural gas engine technology is rapidly improving, boosting mileage between ll ups and driving down the vehicles’ upfront costs.“That helps,” Rayburn said of the incentives, “but it is happening regardless.”The trend is unfolding across the country. For instance, some 60 percent of new waste trucks purchased in 2013 were powered by compressed natural gas. That was up from 3 percent in 2008... Texas is home to 69 active natural gas fueling stations... in at least 40 cities, and more than $75 million in private investment has been put toward 62 stations.

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201422AMPOL Strives to Keep Industry SafeAMPOL is on the move offering industrial and environmental services to a global market. AMPOL rst made its name providing spill response services and has grown over the years into a diversied, full-service industrial and environmental services provider covering the Gulf coast region with additional South American operations in Peru and Colombia.For decades, the energy sector has put its resources front and center to develop cleaner and more efcient methods of operational remediation. Current directives have forged collaborative efforts on the part of the oil and gas industry with external public and private agencies to remedy critical environmental concerns.American Pollution Control Corp., better known as AMPOL, had its beginnings in the early ‘90’s managing oil spill clean up and remediation to the Gulf of Mexico. “In 1993, American Oileld Divers hired me to start a new division called American Pollution Control,” said Kirk Headley, President and CEO of AMPOL, “and, in 1994 I had an opportunity to purchase the company.”Although, the rst image that comes to mind when thinking of an oil pollution problem is a spill, AMPOL’s services cover a far wider range of capability. The company routinely manages hazardous and biological waste materials through the cleanup, packaging and manifesting to the nal disposition of waste materials. AMPOL additionally offers industrial tank and vessel cleaning, hydro-blasting, vacuum services, scaffolding, insulation, coatings, abatement, N.O.R.M. cleaning facility and remediation. “We’ve grown in assets, and the Deepwater Horizon incident has helped us to do that,” Headley said. “It was a great project for us. We’ve always been a sound company, but it improved our ability to grow like we wanted to grow, getting a lot of great people, assets and new technology. We’ve been able to really plan ahead and set our company apart from any of our competition.”Toward that end, AMPOL has continued since 1994 to invested its prots in its people and equipment. Aside from building up a full-time staff of 250 employees, the company has added the latest technology in industrial and emergency response equipment.“Let’s go back in history a little bit, to 1988,” Headley said. “Prior to OPA 90, it was common practice to use employees with minimal or no training on spills.” Headley says his goal is to change the old school model attached to that perception. “One thing that AMPOL has done is try to bring a sense of professionalism to our industry,” Headley explained. “All AMPOL employees are full-time employees with benets and 401Ks. “We’ve grown in assets, and the Deepwater Horizon incident has helped us to do that... It was a great project for us.”// Environmental & Safety

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OILMANMAGAZINE.COM23They are given proper physicals with DOT drug testing. AMPOL’s goal is to upgrade the industry standard.” The company has also positioned itself to stand up an internationally recognized “spill response school” in conjunction with UL-Lafayette and its Marine Survival Training Center and The Response Group (TRG), which provides emergency response preparedness consulting. The purpose of the school is to highlight oil spill response strategies and methods as part of training courses offered through UL Lafayette’s Continuing Education Program. The four-day training courses will begin in mid December, said Jim Gunter, Director of UL Lafayette’s Marine Survival Training Center. “This is something that’s greatly needed in this region,” said Gunter, citing the potential for spills given the area’s heavy oil and gas production.Representatives of oil companies, spill response teams, governmental agencies and anyone interested in spill response can attend the school. Instructors for the training courses will be provided by AMPOL and TRG, using the two companies’ wealth of institutional knowledge to make the industry more responsive to environmental incidents. One example of the talent and experience AMPOL has been able to recruit is personied in the company’s new Director of Response, Jeff Dalessandro. Like Headley, Dalessandro comes from a diving background, a graduate of the U.S. Navy’s Deep Sea Dive School. During his 25 years in emergency response, Dalessandro has worked many incidents of national signicance. Dalessandro also brings years of experience as a Coast Guard case ofcer to AMPOL’s repertoire. He coordinated federal responses to environmental emergencies, including working as a senior technical expert on many recent nationally signicant spills. “We have assembled a tremendous staff with synergy skill sets across our service line offerings, said Al Baker, AMPOL’s General Manager. “We believe our personnel are some of the best-trained groups of employees in the Gulf South. They know what to do, both safely and efciently,” Baker said of his staff. “They are among the best in the industry. For the rst month they are with the company, AMPOL’s workers are in training for 160 hours. After that, they remain on a mentoring program for their rst year.”“We work as a team, focused on safe practices and quality service,” Baker continued. “We expect excellence and quality performance throughout all phases of a project. AMPOL maintains one of the largest privately owned inventory of emergency response equipment in the south.”In addition to the service side of the house, AMPOL also owns OilStop, a global manufacturer of oil spill response and pollution control products, from containment boom and skimmers to ood control barriers and decontamination pools. This is not the only advantage AMPOL’s wide-ranging equipment inventory offers. “We are one of a few response companies that own its own offshore vessel assets,” Headley explained. “That combination of talent and equipment allows AMPOL to offer a turnkey, one-stop solution for just about any type of industrial, environmental or regulatory issues its clients may have. The company is focused on all service offerings; industrial cleaning, tank and vessel cleaning, vacuum truck services, hydro-blasting, scaffolding, insulation, coatings, abatement and our N.O.R.M. cleaning facility and remediation capabilities, both offshore and on-shore. “For me, this is my dream job,” Headley said. “It’s not your typical 9 to 5. In the energy industry, it’s 24-7. A lot of people who want to get into this don’t understand that, but when AMPOL gets the call, we respond.”“One thing that AMPOL has done is try to bring a sense of professionalism to our industry... All AMPOL employees are full-time employees with benets and 401K’s.”This is not the only advantage AMPOL’s wide-ranging equipment inventory offers. “We are one of the few response companies that own its own offshore vessel assets.”

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201424OSHA Forms Alliance to Protect Oil and Gas Workers SOURCE: safety.blr.com// Environmental & SafetyIn Dallas, OSHA has formed a region-wide alliance with the Association of Energy Service Companies (AESC) aimed at protecting workers in the oil and gas well industry. The goal, according to OSHA, is to promote understanding of workplace safety and health and the rights and responsibilities of workers and employers by increasing access to material and knowledge. The AESC’s members include professionals in the oil and gas industry including eld crews, engineers, manufacturers, and oil and gas producers and operators. Under the current initiative, the AESC plans to work closely with its member companies and OSHA to develop workplace health and safety goals for the oil and gas industry and provide training and outreach materials aimed at helping employers meet these goals. Eric Harbin, OSHA’s deputy regional administrator in Dallas, commented, “OSHA’s relationship with AESC will power new ideas and best practices to help make this industry as safe and healthful as possible.”The oil and gas industries involve many serious hazards, and workers in these elds experience a higher rate of work-related injuries and illnesses than the national average. In the most recent results from Bureau of Labor Statistics (BLS), despite a drop in the overall rate of workplace fatalities in the United States, fatalities in the oil and gas industry rose by 23% from 2011 to 2012. In addition to the Dallas-area alliance, OSHA has planned a voluntary oil and gas industry safety stand-down. If you’re responsible for the safety of oil and gas workers, the following are some key hazards to be aware of:Vehicle collisions. Although transportation incidents are the overall top cause of work-related fatalities in the United States, oil and gas workers are particularly vulnerable because oil and gas wells are often located in remote locations and long-distance travel is often necessary to reach the sites. Highway vehicle crashes are the leading cause of oil and gas extraction worker fatalities, accounting for nearly 4 in 10 fatalities in the industry.Struck-by, caught-in, and caught-between incidents. Moving vehicles and equipment, falling equipment, and high-pressure lines can put workers at risk of being struck by, caught in, or caught between pieces of machinery or other elements of the worksite. In fact, 3 out of every 5 on-site fatalities in the oil and gas industry are due to these incidents. Under the current initiative, the AESC plans to work closely with its member companies and OSHA to develop workplace health and safety goals for the oil and gas industry and provide training and outreach materials aimed at helping employees meet these goals.Also on OilmanMagazine.com — Developments in Hot Tapping Technology..... Texas Oil And Gas Numbers Fly Off The Charts..... Midland, TX Is Now The Richest Metropolitan Area In The U.S......

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OILMANMAGAZINE.COM25To protect against these hazards, make sure employees are wearing appropriate personal protective equipment (PPE), follow lockout/tagout procedures, use machine guards where appropriate, and use signage throughout the worksite to keep employees out of danger zones where these injuries are likely.Explosions and res. Flammable vapors and gases can ignite and cause re or explosion. To prevent this, make sure all ammable liquids and gases are stored and handled properly and keep any potential ignition sources (such as static, electrical energy, open ames, cigarettes, cutting and welding tools, and hot surfaces) away from ammable vapors and combustible materials. Make sure re extinguishing equipment is immediately available and that one or more employees are trained on its use.Falls. If workers must work on surfaces elevated more than 4 feet above the ground, make sure appropriate fall protection measures are taken. This includes guardrails, hole covers, personal fall arrest systems, and safety nets, as appropriate to the specic conditions. Other fall hazards can include uneven surfaces, open pits, stairs, oor holes, and equipment or materials on the ground.Conned spaces. If workers are required to enter storage tanks, mud pits, excavated areas, or other similar areas, make sure OSHA’s conned space procedures are followed. This includes training for employees authorized to enter permit-required conned spaces; testing of atmospheric conditions inside conned spaces; use of fall protection, rescue, air monitoring, lighting, ventilation, and communication equipment as necessary; and contact with a trained outside attendant during entry operations.If workers are required to enter storage tanks, mud pits, excavated areas, or other similar areas, make sure OSHA’s conned space procedures are followed. This includes training for employees authorized to enter permit-required conned spaces. Also on OilmanMagazine.com — Developments in Hot Tapping Technology..... Texas Oil And Gas Numbers Fly Off The Charts..... Midland, TX Is Now The Richest Metropolitan Area In The U.S......

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201426// Environmental & SafetyOMI Environmental Solutions (OMIES) is growing to meet the needs of its customers. In September, Joe Christiana, Vice President; Shaw Thompson, CEO and President; and Kyle Prest, CFO, broke ground in Belle Chasse, Louisiana for their new corporate headquarters. Additionally, this summer OMIES opened three new ofces in Louisiana in Shreveport,Gonzales and Galliano. According to Mr. Thompson, “OMI Environmental Solutions is pleased to be expanding our reach to service the northern Louisiana area as well as the industrial/ chemical corridor near Baton Rouge and Port Fourchon area. From these three ofces, OMIES will be offering its full complement of environmental services and products to all types of business including oil and gas, chemical, pipeline, railroads, manufacturing and reneries to name just a few.”In Shreveport, Mr. Christiana named Robby Tarver as the Business Development representative that is spearheading the opening of the new facility. Mr. Tarver has over 25 years of experience and has signicant knowledge in the railroad andtransportation industries as well as disaster recovery. Mr. Christiana reports, “Additional staff is now being hired including drivers to support the new diversied eet of trucks and equipment being brought in to support this area.” OMIES’ truck and equipment operators are highly trained professionals. They undergo extensive training in DOT regulations, USCG regulations, and they are all fully licensed totransport hazardous materials.In Gonzales, Daryl Rice has expanded his responsibilities as Port Allen Facility Manager to also include the Gonzales facility. Mr. Rice has decades of experience in the environmental service business including remediation, oilspill and haz-mat. This new location positions OMIES for better access to chemical and industrial plants, tanker truck terminals and railroads in the area.In Galliano, Ronald Johnson, Houma Facility Manager, has expanded his responsibilities to include the new Galliano facility. This ofce gives OMIES better access to Port Fourchon and was opened to meet increased customerdemand in that area.OMI Environmental Solutions currently has ofces in cities across Louisiana and Texas, but can respond with teams anywhere to provide solutions regardless of where or when the next challenge arises.OMI Environmental Solutions (formerly Oil Mop, LLC) has a world-renowned reputation and is one of the oldest oil spill response companies with over 40 years in business. OMIES has assisted with the cleanup of some of the largest oil spills and disasters in our nation’s history. OMIES can respond with solutions for any type of spill or hazmat response situation, industrial service, standby rescue, waste management anddisposal service, transportation service, safety, compliance, training service, and offers environmental, industrial and safety products both nationally and internationally.LAO 11/13For more than 40 years, OMI Environmental Solutions (OMIES) has been a leading manufacturer of oil recovery equipment. OMIES’ skimmers have become a large part of many industries – from the oil ﬁeld to food processing – and can be found in diverse industries worldwide.We’ve EXPANDED our focus to meet our customers’ needs and OMIES now has one of the largest distribution warehouses (50,000 square feet) in the Gulf Coast area with products YOU need!OMIES Enviro-Industrial & Safety Products currently represents hundreds of manufacturers and sells a wide variety of items such as:OUR COMMITMENT IS TO ENSURE OUR CUSTOMERS’ NEEDS ARE MET WITH QUALITY PRODUCTS AND OUTSTANDING SERVICE AT AN AFFORDABLE PRICE. CUSTOMER SERVICE IS OUR MAIN FOCUS. WE STRIVE TO HAVE EFFICIENT SOLUTIONS FOR PRODUCTS OUR CUSTOMERS NEED, WHEN THEY NEED THEM.IndustrialSafetyEnvironmentalWWW.OMIESP.COM 1-800-645-6671 ORDERS@OMIES.COM AbrAsivesAbsorbents/spill KitsContAinment boomCustom mAnufACturingCutting toolsDrumsfire extinguishersfirst AiD proDuCtslighting/eleCtriCAlmro/plAnt mAintenAnCe proDuCtsoil reCovery equipment/sKimmerspersonAl proteCtion proDuCts (ppe) sAfety proDuCtsseConDAry ContAinment equipmentsigns/tAgsstorAge equipmenttools AnD hArDwArewelDing proDuCts

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OILMANMAGAZINE.COM27level paid by manufacturers in New Jersey, one-third of the cost faced by European manufacturers and a fourth of what Asian factories pay. That’s steering more manufacturing to Texas. Four international steel rms have announced $3.3 billion in new plants — two outside Corpus Christi, one in Bay City and one in Bryan.LAO 11/13For more than 40 years, OMI Environmental Solutions (OMIES) has been a leading manufacturer of oil recovery equipment. OMIES’ skimmers have become a large part of many industries – from the oil ﬁeld to food processing – and can be found in diverse industries worldwide.We’ve EXPANDED our focus to meet our customers’ needs and OMIES now has one of the largest distribution warehouses (50,000 square feet) in the Gulf Coast area with products YOU need!OMIES Enviro-Industrial & Safety Products currently represents hundreds of manufacturers and sells a wide variety of items such as:OUR COMMITMENT IS TO ENSURE OUR CUSTOMERS’ NEEDS ARE MET WITH QUALITY PRODUCTS AND OUTSTANDING SERVICE AT AN AFFORDABLE PRICE. CUSTOMER SERVICE IS OUR MAIN FOCUS. WE STRIVE TO HAVE EFFICIENT SOLUTIONS FOR PRODUCTS OUR CUSTOMERS NEED, WHEN THEY NEED THEM.IndustrialSafetyEnvironmentalWWW.OMIESP.COM 1-800-645-6671 ORDERS@OMIES.COM AbrAsivesAbsorbents/spill KitsContAinment boomCustom mAnufACturingCutting toolsDrumsfire extinguishersfirst AiD proDuCtslighting/eleCtriCAlmro/plAnt mAintenAnCe proDuCtsoil reCovery equipment/sKimmerspersonAl proteCtion proDuCts (ppe) sAfety proDuCtsseConDAry ContAinment equipmentsigns/tAgsstorAge equipmenttools AnD hArDwArewelDing proDuCts

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Oilman Magazine — Your Voice In Energy JANUARY / FEBRUARY 201428// Oil BriefsDrilling rig in Gulf of Mexico no longer on re; no oil spotted in waterFrom the Associated Press - A drilling rig that caught re after a natural gas blowout in the Gulf of Mexico appears stable now that the re is out, and there was no sign of any oil sheen on a y-over Thursday morning, a rig company executive said. “The well essentially snuffed itself out,” said Jim Noe, a vice president with the rig owner Hercules Offshore Inc., speaking in a telephone interview. Earlier Thursday, federal authorities overseeing the rig re had said it was nearly out. The well had blown wild Tuesday, forcing the evacuation of 44 workers. The rig caught re Tuesday night and part of it collapsed. The federal Bureau of Safety and Environmental Enforcement announced Thursday morning that the well had clogged with sand and sediment, a process called “bridging over” that Noe said can commonly happen with shallow water wells. Now, ofcials are focusing efforts on permanently plugging the well and nding out why it blew wild. There were no injuries when the blowout occurred about 55 miles off the Louisiana coast at a well operated by Walter Oil & Gas. When the re was raging, ofcials said they were preparing to drill a relief well nearby to divert the gas and end the blowout and re. Such a step is probably not necessary now that the re is out and the well has bridged over, said Adam Bourgoyne, an industry consultant and a former dean of Louisiana State University’s petroleum engineering department. He said nding some way to seal or cap the well permanently will be much easier now. Well control experts should now be able to get close to the rig and examine it. “You never know anything for certain but usually if it bridges it doesn’t re-start,” Bourgoyne said. The rig is in 154 feet of water, relatively shallow in terms of offshore drilling. The Hercules 265 was built in 1982. It was certied by the American Bureau of Shipping until September 2017 and by the Coast Guard through July 4, 2017, according to federal records. It also had a blowout preventer control system approved in November of 2010. In May, Hercules told its investors that Walter Oil & Gas was paying between $101,000 and $103,000 a day to rent the Hercules 265 for a 60-day period that was supposed to end July 25. After that Arena Energy was supposed to rent the rig for 90 days, paying $102,000 to $104,000 a day. Why the blowout prevention system did not prevent the blowout is part of the investigation. Neither Noe nor anyone else connected with the investigation would say anything about the probe so far. “Our efforts will now turn to, rst, conrming the conditions at the well site, and then to assisting in Walter’s effort to permanently secure and seal the well. We will then focus on a precise analysis of the facts that led to this incident,” Noe said. The rig is called a “jackup rig” because it has four legs extending to the ocean oor to hold it up. Parts of the rig had collapsed as it burned Wednesday, but the structure remained intact. Experts had said the environmental effect of the blowout was expected to be limited, even before the well was blocked and all 44 workers were safely evacuated. Because the well involved is a natural gas well, not an oil well, experts said the pollution threats were far less than those posed by some previous accidents. Federal inspectors said a light sheen was spotted around the rig Wednesday evening. But like one spotted shortly after the blowout began Tuesday, the sheen quickly dissipated. Ofcials and scientists agree the latest accident should not be nearly as damaging as the BP oil spill, also in the Gulf of Mexico, that sent crude oil oozing ashore in 2010. Tuesday’s blowout occurred at a drilling rig next to a natural gas platform that wasn’t producing gas at the time. The rig was completing a “sidetrack well,” which drills into the same well hole under the platform. Such wells are used to access a different part of the gas reserve.Oil Traders Misread Tweet, Spike In Oil Prices FollowFrom CarConnection.com - Look before you leap, our grandmothers used to say. That calm, orderly, sage advice could’ve come in handy yesterday, when traders panicked about the price of oil after misreading a tweet. Yes, a tweet. The tweet in question came from the Israeli Defense Forces: Oct. 10 #YomKippur73: Israel Air Force bombards airports in Syria to prevent Soviet weapons reaching the Syrian Army http://t.co/tKnMzYjgFF— IDF (@IDFSpokesperson) October 10, 2013At rst glance, that might seem alarming. After all, Syria has been engaged in a bloody civil war for two and a half years, which has escalated tensions with Israel. And Russia has been a key supporter of Syria’s Al-Assad regime. Bottom line: the possibility of a Syrian/Israeli war looms large. That said, knee-jerk traders should’ve been tipped off by at least two things: 1. Yom Kippur was weeks ago. 2. The Soviet Union is ancient history. Combine those two, and it becomes pretty clear that the IDF’s tweet is intended to commemorate something that happened in the past. In this case, that something is the Yom Kippur war, which took place in 1973. (Thus, the hashtag.) Unfortunately, in the fast-paced world of investing, cooler heads didn’t prevail. Investors saw the tweet and rumors quickly began to spread that the Syrian/Israeli conict had nally bubbled over. Traders assumed that oil production would be compromised, which pushed the price of oil higher. Within an hour, it had jumped more than $1, from $110.40 to $111.50.What’s interesting is that, even after investors realized their mistake, oil prices remained high. According to Reuters, “Although traders quickly realized the historical nature of the Tweet, oil prices maintained their gains, supported in large part by hopes of a breakthrough in U.S. debt discussions and earlier anxiety over political stability in Libya.” Looks like traders got tweet-drunk and wanted any excuse to keep the party going. Within three hours of the IDF’s tweet, oil prices hit $111.74 per barrel -- the highest price seen in a month. Yesterday wasn’t the rst time something like this has happened. And you can bet a sizable chunk of change that it’s going to happen again. This is why we can’t have nice things. Electric Car Rentals Stalled In U.S. by Range Anxiety From Reed Landberg, Bloomberg - Rental car drivers just aren’t plugging into electric vehicles, largely because of fears the batteries will die. In fact, people who drive off in electric vehicles from Enterprise Holdings Inc., the biggest U.S. auto renter, often bring them back to trade for a car that runs on gasoline. “People are very keen to try it, but they will switch out of the contract part way through,” Lee Broughton, head of sustainability at Enterprise, said in an interview. “Range anxiety makes them think they can’t get to a charging station.”Limited range is holding up demand for electric vehicles nationwide, both in rentals and sales. About 140,000 plug-in EVs are on U.S. roads, short of President Barack Obama’s goal for 1 million of the cars by 2015, data from the Electric Drive Transportation Association shows. That may slow efforts to cut pollution from transport, which is responsible for a third of U.S. carbon-dioxide emissions. At Enterprise, customers rent the electric cars for about 1.6 days on average, compared to six days to seven days for conventional vehicles. Slow demand is the main reason the St. Louis-based company has 300 electric cars in its eet, 40 percent below a target it set in 2010 when it ordered 500 of Nissan Motor Co.’s plug-in electric Leafs, Broughton said. Hertz Global Holdings Inc. (HTZ) said in 2010

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OILMANMAGAZINE.COM29blend over 10%. When the ethanol requirements continued to rise while demand for end product fell, the reners were reduced to buying and selling RINs or Renewable Identication Numbers, which are, in effect, credits that allow reners to meet the terms of the 2005 Clean Air Act without producing fuel that is unsuitable for most cars. So as demand for gas falls, reners need to buy more RINs. From just pennies-per-gallon in January, RINs had soared over $1.40 by last summer. Lutz says as much as 75% of the additional cost was passed along to the consumer. Therefore, in an attempt to force cleaner burning fuels into the marketplace, the EPA created a policy that ended up articially inating the cost of rening gas when demand fell. So the reners and consumers got gouged for not burning enough fossil fuels. Only the government could make renery companies look sympathetic. Here’s the good part: Lutz sees the price of RINs falling, a sign that the EPA is nally getting around to modifying their absurd policy. Once RINs are out of the equation, Lutz says the price per gallon is going to fall lower. “I’m not going to be stunned if we see gas prices going below $3 by the end of the year,” Lutz says. “That’s going to be a heck of a tailwind going into the holiday shopping season.”Gulf Coast Gasoline Rises to 6-Week High on Seasonal WorkFrom Bloomberg, Christine Harvey - Spot gasoline on the U.S. Gulf Coast strengthened to a six-week high as reners carried out seasonal maintenance, lowering production in the region. Conventional, 87-octane gasoline climbed 2.5 cents to 8.25 cents a gallon below futures on the New York Mercantile Exchange at 3:45 p.m., the strongest since Sept. 3, according to data compiled by Bloomberg. Conventional CBOB gasoline gained 2.25 cents to 9 cents below futures. Differentials narrowed as reners including Marathon Petroleum Corp. (MPC)’s Garyville, Louisiana, site and Delek US Holdings Inc. (DK)’s Tyler, Texas, plant planned to shut units for work this month. Valero Energy Corp. (VLO)’s Port Arthur renery, also in Texas, is operating at reduced rates during repairs at a wet-gas compressor, a person familiar with operations said. Reneries in the area, known as PADD 3, processed almost 8 million barrels a day of crude oil and other feedstocks in the week ended Oct. 4, the lowest level since April 26, according to U.S. FOR MORE OILMAN NEWS BRIEFS AND NEWS 24-7, VISIT-OILMANMAGAZINE.COM

TX Oilman Magazine Jan/Feb 2014

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