Oilman Magazine Jan/Feb 2015 : simplebooklet.com

Oilman Magazine / January-February 2015 / OilmanMagazine.com55IN THIS ISSUEFeatures- The Oil and Gas Knowledge Curve: Young Professionals in Energy allows the torch to be passed & knowledge transfer to ourish -By Jennifer Delony - page 24- Q & A With Jason Spiess: Innovation - page 40In Every IssueLetter from the Publisher – page 6OILMAN Contributors – page 6OILMAN Online // Retweets // Social Stream – page 8Feedback: Letters from OILMAN readers – page 8— OILMAN PRIDE —1920s West Texas: One of Halliburton’s First Vehicles – page 101950s Gulf of Mexico: Early Noble Drilling Offshore Rig – page 121920s Tulsa, Oklahoma: Brand New Equipment Showcased at Oil Exposition – page 14— INNOVATION & TECHNOLOGY —A Winning Combination! Triple-play for the oil and gas industryBy Elias V. Basse III – page 19— OILMAN COLUMNS —Jessica Byrd: Make a #TwitterResolution – page 17Mike Thomas: Oil and Natural Gas Inspection: Training, Discipline, and Maximizing Pipeline Pilum – page 18Don Briggs: Time For a Reasonable Assessment of Oil Prices – page 20Mark Stansberry: Eisenhower’s Energy Vision – page 22Energy Scene: Road Trip Across America’s Shale Play – pages 44 through 47Cartoon In Closing, Steve Burnett (CrudeOilCalendars.com): Texas Roughnecks Freeze Faster – page 50— NEWS—Bill to Approve Keystone XL Pipeline Fails in Senate – page 30Halliburton to Acquire Baker Hughes – page 30Policy Considered for NG Modernization Cost Recovery – page 31EPA: Oil Reserves Surpass 36bn barrels – page 32Offshore News – page 33Oklahoma News – pages 34 and 35Texas News – pages 36 and 37Louisiana News – pages 38 and 39OILMAN Marketplace: pages 48 and 49MARCH 17-19, 2015MARRIOTT HOUSTON WESTCHASE HOTELHOUSTON, TEXAS, USAGO.ASME.ORG/FRACTURINGASME’s 2015 Hydraulic Fracturing Conference draws long-sought focus to the central role of mechanical engineering in shale development and hydraulic fracturing. This dynamic three-day event will bring together leading industry manufacturers, engineers and supply chain executives to discuss highlights, trends, and new technologies and solutions related to ‘above-ground’ stimulation equipment and the inherent mechanical engineering involved. Our 2015 Program is craed with Thought Leadership from our Executive Advisory Commiee:BPASMEBaker Hughes Pumping ServicesBaker Hughes, Inc.BP GWO EngineeringDraper LaboratoryGE Oil & Gas Drilling and SurfaceGE Oil and Gas Marathon OilNaborsSchlumbergerShell Exploration and Production CompanySouthwestern EnergyUS Well Services LLCProgram AreasDAY 1 Regulatory, Drilling, and Well ConstructionDAY 2 Fracturing & Stimulation, Pumping, Chemistry & LogisticsDAY 3 Production Operations, Artificial Lift, Workover, and Water ManagementAbout ASME For more than 100 years, ASME has successfully enhanced performance and safety for the energy and piping industries worldwide through its renowned codes and standards, conformity-assessment programs, training courses, journals, and conferences – including the Offshore Technology Conference (OTC), the International Conference on Ocean, Offshore and Arctic Engineering (OMAE), Turbine Technical Conference and Exposition (TURBOEXPO), and the International Pipeline Conference (IPC).ASMEHYDRAULIC2015FRACTURINGHEAR INSIGHTS FROM INDUSTRY LEADERS WHO WILL HELP YOU TRANSFORM YOUR BUSINESS!THIS IS THE ONE EVENT IN NORTH AMERICA THAT BRINGS ALL LINKS OF THE SUPPLY CHAIN TOGETHER. CAN YOU AFFORD TO MISS OUT?Serving Unconventional Oil & Gas: Equipment and TechnologiesFOR FULL SESSION DESCRIPTIONS AND SPEAKER LIST, VISIT GO.ASME.ORG/FRACTURING GO.ASME.ORG/FRACTURING The American Society of Mechanical Engineers (ASME)Philip FusacchiaProgram ManagerGE Oil & GasJoe AndersWell Integrity AdvisorBPBill LaneVice President of Emerging TechnologiesWeatherford Artiﬁcial Lift SystemsJeffrey MeisenhelderVice President, Unconventional ResourcesSchlumbergerPhilip FusacchiaProgram Manager, GE Oil & GasSHALE DEVELOPMENT IS MECHANICAL$200 EARLY BIRD DISCOUNT ENDS JAN. 31, 2015 – REGISTER ONLINE TODAY!

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com6 7Last week while visiting with my family I had a conversation with my grandpa Charlie about many things. Inevitably, the oil industry came up as the topic of conversation. We talked about everything from drilling technologies like hydraulic fracturing to the future outlook of the oil and gas industry. That’s when he buttoned up our conversation in the most perfect way. Being a farmer, he simply said, “Well, while it’s sunny, we better make hay!”. I couldn’t stop thinking about this comment because in just eight words he summed up the opportunity we have here in America to control our own energy destiny.Yes, the sharp decline in the price of oil is on everyone’s mind. The continued opposition from critics and governing bodies is always a disappointing road block. But we are oil and gas, and we’re American - we move forward. Make no mistake about our current situation - we are in a world-wide battle for oil. The rest of the world cannot survive with oil prices at current levels; however, we can. The road may be bumpy. Production levels may rise and fall, but we will survive the volatility. We will continue to prosper, especially when the price of oil bounces back to true market value. We can pivot. We can change strategies. We can outlast the competition. It may seem as though it’s dark and dreary lately, but let me humbly say, it’s still very sunny - so keep making hay.Luke McDonald Publisher, OILMAN MagazineMAGAZINE JANUARY — FEBRUARY 2015PUBLISHED BY Oilman Magazine, LLC116 W Main STNorman, OK 73069(800) 562-2340OilmanMagazine.comPUBLISHERLuke McDonaldpublisher@OilmanMagazine.com(800) 562-2340 Ex. 5EDITORJennifer DelonyDIGITAL CONTENT MANAGERChandler PettyGRAPHIC DESIGNERKim FischerCONTRIBUTORSDon Briggs— LOGA President.......David Blackmon— Managing director of the FTI Strategic Communications.......Mike Thomas— Pipeline inspector in the northeast region of Oklahoma.......Mark Stansberry— Chairman of The GTD Group.......Joseph DeWoody— President of Clear Fork Royalty, an oil & gas royalty investment company located inFort Worth, Texas.......Jessica Byrd— CEO of Clean Energy Chemicals @CleanEnergyChem.......Steve Burnett— CrudeOilCalendars.com....Story Sloane III— The Sloane Gallery in Houston,Texas (281) 496-2212).......Paul Flessland— Photographic Artist, PaulFlesslandPhoto.com.......Jason SpiessSUBSCRIPTIONSOilmanMagazine.com/subscribe(Controlled, free circulation to oil and gasprofessionals in Louisiana, Oklahoma and Texas)ADVERTISING(800) 562-2340 Ex. 1advertising@OilmanMagazine.comOilmanMagazine.com/advertise© Copyright 2015 by Oilman Magazine, LLC. All rights reserved. Reproduction without permission is prohibited. All information inthis publication is gathered from sources considered to be reliable,but the accuracy of the information cannot be guaranteed.Image credits — The Sloane Gallery, Houston, TX;Jamie Rood,Photographic Artist; 123rf.com..........LETTER FROM THE PUBLISHERCONTRIBUTORS — BiographiesDon BriggsDon Briggs is the President of the Louisiana Oil and Gas Association. The Louisiana Oil & Gas Association (known before 2006 as LIOGA) was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includes exploration, production and oileld services. Our primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by creating incentives for Louisiana’s oil & gas industry, warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana.David BlackmonDavid Blackmon is a managing director of the FTI Strategic Communications practice and is based in Houston. Throughout his 34 year career in the oil and gas industry, David has led industry-wide efforts to develop and implement strategies to address key issues at the local, state and federal level. David has more than 15 years experience working legislative and regulatory issues in Washington, DC, Texas and other states. He is a recognized subject matter expert on a variety of oil and natural gas issues, and regularly offers testimony at legislative hearings. David is currently a contributing columnist for Forbes.com, focusing on public policy issues affecting the oil and gas industry. He also writes regular commentary for World Oil Magazine.Mike ThomasMike Thomas is a Doctor of Management candidate at The University of Phoenix in Organizational Leadership with over 16 years of pipelining experience. He is currently a pipeline inspector in the northeast region of Oklahoma. His expertise encompasses pipeline safety, integrity, and inspection for assorted pipeline clients.Mark A. StansberryMark 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 ByrdJessica Byrd is the CEO of Clean Energy Chemicals in Huntsville, TX. CEC is an environmentally conscience global supplier of pipeline cleaning, hydraulic fracturing and biodegradable oil remediation products.Joseph DeWoodyJoseph P. DeWoody (@jpdewoody) is the president of Clear Fork Royalty, an oil and gas royalty investment company located in Fort Worth, Texas. Clear Fork Royalty works with accredited investors, trusts and family ofces to provide portfolio access to oil and gas mineral rights and royalties to hold for long term investment through various direct investment vehicles. Joseph was selected by Oil and Gas Investor Magazine as a winner of the Top 20 under 40 Award, and by TIPRO and Texas Monthly Magazine as a Texas Top Producer. Joseph is a member of the Young Presidents’ Organization (YPO). He was appointed by Texas Governor Rick Perry to a six year term on the Texas Board of Professional Geoscientists. He serves on the Board of Directors for the National Stripper Well Association and the Texas Alliance of Energy Producers.Steve BurnettI was raised in a small West Texas town where the school mascot is a roughneck. Growing up with a roughneck as the town symbol, how could I not spend most of my adult life working in the petroleum industry? I started working in the oilelds age 16. In Texas you had to be 17 with a signed minors release from your parents, but my parents were glad to keep me working. I had been working since my rst job working on a commercial elephant garlic farm at age 12. By the time I reached 16, I had enough work experience to prove I knew how to hold my own on a work crew. Anybody whose parents survived the great depression can attest to the fact that their children learn the value of a solid work ethic.Jason SpiessJason Spiess is an award winning journalist, talk show host, publisher and executive producer. Spiess has worked in both the radio and print industry for over 20 years. All but three years of his professional experience, Spiess was involved in the overall operations of the business as a principal partner. Spiess is a North Dakota native, Fargo North Alumni and graduate of North Dakota State University. Spiess moved to the oil patch in 2012 living and operating a food truck in the parking lot of Macís Hardware. In addition to running a food truck, Spiess hosted a daily energy lifestyle radio show from the Rolling Stove food truck. The show was one-of-a-kind in the Bakken oil elds with diverse guest ranging U.S. Senator Mike Enzi (WY) to the traveling roadside merchant selling ags to the local high school football coach talking about this weekís big game.Paul FlesslandPaul 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esslandphoto.com

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com16 17OILMAN COLUMNHappy New Year!I hope you and your family are having a #Safe, #Happy and #Prosperous #NewYear! One of the greatest aspects of the New Year is the universal consciousness of making a resolution, and therefore, making a change. The dictionary denes the word resolution in two ways; A formal expression of opinion or intention made and a decision or determination.The word change is dened as something different from what it is or from what it would be if it were left alone and also to #Transform. Making a resolution is a #GreatWay to not only start a new year, but also to start any month, week or day! It inspires us to do and try new things, meet new people, and evolve as human beings. Even though change can be difcult at times, it ultimately allows us to learn, grow, and see things in a new light.We now live in what is commonly referred to as the #InformationEra. The way information is readily available at our ngertips has dramatically changed not only the way we communicate with each other, but also how we do business.The development and acceleration of technology has given us many tools to do business more efciently and effectively. #SocialMedia is a tool that has brought us together by providing a platform that gives us the ability to reach and do business with an innite amount of people #AcrossTheWorld. In #Honor of the New Year, I’d like to introduce you to a few new tools that you can add to your #TwitterToolbox.In search of information? #Topsy is a great tool and you don’t have to be a registered member to use it. In a sense it is Google (a search engine) for Twitter. Type a word in the search box and it will search all the tweets about your topic. It is more in-depth than simply using the Twitter search box because it also displays the analytics that include a trending graph. You will be able to see the latest results for your topic over the past hour, day, seven days, and 30 days or for all time.The default search is set to include everything, but you can narrow your search of information further by clicking on links, tweets, photos, videos or inuencers. It also displays results in 10 different languages, which allows anyone to easily research or tap into the #GlobalMarket in their industry. I use a translator app to read information, industry news and posts in other languages, as it allows me to learn new things and #Connect with people around the world.Need help managing your list of followers? Twitter has guidelines, and in the beginning, it only allows you to follow 2,000 users. Each Twitter account is based on the ratio of followers to people that you are following. Once you are following 2,000 users, if you don’t have more than 2,000 followers, you will not be able to follow more users until you yourself have more followers. This formula is considered having a healthy ratio.#Tweepi is a tool that works to keep your account ratio healthy and helps you eliminate people who no longer use Twitter, don’t engage with you or don’t follow you in return.Do you have multiple Twitter accounts? #TweetDeck could be the tool for you. It allows you to monitor multiple timelines in one easy interface and streams each timeline in real time so you never miss a beat or have to refresh. This is a great time management tool for the multi-user, as it also allows you to schedule tweets to be posted in the future. If you use multiple social media platforms, #Hootsuite is a great tool that manages all of your accounts through one interface.Things to KnowWhen do I use the Messaging Option? When you follow someone, sometimes you will notice that they use an auto message welcoming you as their follower. These auto messages appear very spammy and usually direct you to follow them on another social media platform, direct you to their website or a video, and at times, they even ask you to buy something. The general consensus of properly using the messaging option is to only use messaging after you know somebody and have developed a relationship with them on your main feed. It’s important that your Twitter is #Authentic and #Personal.Answering all of your @ replies is extremely important. It creates #Connections and helps to #Build your following. If you start a Tweet with the @ symbol, the user you are tweeting will be the only one to see the message. Using the @ symbol at the beginning of a Tweet is for a direct conversation with another user.It will show up on your home stream but not in the main feed that everyone sees. If you want everyone to see what you are Tweeting with that person or business you can use another character prior to the @ symbol such as (.) or a (>) symbol and it will show up in the main feed.The secret to making your #Tweets soar this year: Use 2 hashtags (#) per #Tweet! Using hashtags has proven to double the audience engagement rate! Three great Social Media things to think about in the #NewYear: #Growth, #Connections and #Hashtags.*Lets #Connect! Tweet me @nvestnthefuture or @CleanEnergyChem with your favorite thing about #ThisNewYear! Make a #TwitterResolutionBy Jessica Byrd

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Oilman Magazine / January-February 2015 / OilmanMagazine.com18OILMAN COLUMN Oil and Natural Gas Inspection: Training, Discipline, and Maximizing Pipeline PilumBy Mike ThomasThe assessment of training, discipline, and leadership practices within the oil and natural gas industry affects organizational environments. The evaluation includes training programs, punishments, and various leadership approaches. At the same time, unassailable support highlighted in organizational behavior and emerging leadership models may appear complacent.The oil and natural gas leadership approaches permeate the environment to unroil the autonomy of technology and organizational behavior. Based on research of the Roman army, various management styles will address a historic approach intertwined with modern-day management styles to maximize stakeholder value and increase morale and camaraderie, which leads the way to organizational creativity and innovation.Training in various organizational environments depends on coworker camaraderie and arduous attempts to discover human ontology. Training is broken down into stages to arrange the employee from beginner to intermediate to expert. The rst stage is physical strength and stamina. What is the use to an organization if the employee is not able to perform multiple tasks if stamina is not adequate?Jim Collins writes in “How the Mighty Fall and Why Some Companies Never Give In” that any exceptional enterprise depends rst and foremost upon having self- managed and self-motivated people.Experience is needed next to perform tasks if appropriate training is not implemented for the particular job the employee is hired to do. A foundation of consistency is desired to breakdown organizational sludge and removes the harmful levels of organizational sediment (inadequate training and discipline programs).The discipline of the oil and natural gas industry is demanding and constantly shifting to promote healthy organizational standards to meet and exceed policy and procedure variances along with revisions. Take, for example, Mark Antony, a leader of the Roman army and politician, who terminated to the death every tenth man of the cohort who knowingly allowed the adversary to take possession or prot in any way from their labor and apply this mindset to present day workers and count how many employees are standing ready for work the following morning.This example is not the case now, as organizations may disqualify a certication, such as operator’s qualications, welding qualications (plastic or steel), sent home, or red. A pecunaria multo, or better known as docking of pay, may be implemented to decrease a severe punishment, while organizational ‘death’ may be avoided.Jeremy Fields, area planning manager at John Christner Trucking, said “one of the most important items I stress is consistency. Consistency develops muscle memory and streamlines efciencies. I have always found it important to train individuals to be as consistent in their operation as possible. This goes from leaving their phone on their desk in the same place and all the way down to where they position their stapler. The less one has to commit to thinking about the straightforward task, the more they can commit to the task at hand.”The oil and natural gas organization now has the opportunity to maximize leadership behaviors, styles, and various leadership powers by maximizing pipeline pilum.Pilum was a Roman legionary practice of souring a javelin of about two meters in overall length a distance of about 20 feet to overcome the enemy to add to the legionaries’ combat arsenal. The pilum practice consisted of two parts: how to throw it and how to receive it.This technique would improve with repetition and eagerness to increase one’s ability as a Roman soldier. Pilum practice is needed to acquire the results of each organizational goal while increasing the oil and natural gas industry talent pool. Josh Peak with Peak Enterprises said to “empower and equip people to create a culture of innovation” will aid the organization to avoid the capitulation of organizational death.The ability to increase strength and stamina will lead to a fully trained and qualied pipeline environment consisting of multifaceted employees possessing the tactics to go the distance with consistency. Josh continued to add to the impending opportunity of employee latitude to create a solid foundation of organizational assets.The modern day pipeline employee has the path to achieve a whole new level of training, discipline, and ow to organizational greatness through each identied stage. Innovation is the next area of discussion to correlate work approaches through arduous implementation of organizational training, discipline, and practice techniques.The science behind the innovation will incur within each oil and natural gas environment. The energy sector would be well-served to consider what drives the innovation while supporting the vast area of possibilities if the proper formation is achieved. INNOVATION AND TECHNOLOGYAs technology moves with the speed of industry, new technologies emerge to make our lives better and better at home. One of these is “Triple Play,” but what exactly is it? Triple play is the combination of voice, Internet, and television through one service. What does this mean for the oil and gas industry? It means seamless integration and continuity for a company’s entire site needs, whether they are ofces in the middle of the ocean or ofces in the big city – including vessels at sea!Turnkey solutions for delivering enterprise-class systems to company sites that encompass all of these technologies now is available. The blur of the lines of technology can be somewhat of a headache, but with turnkey solutions these become much easier to understand, and deploy.Telephony for Company SitesTelephony can be full of buzz words, but with a turnkey solution for a company’s sites, a high-technology solution can be custom-tailored to scale from one phone to a million phones, allowing a company to utilize a scalable approach to its business and site needs as its grows. With the proven technology of voice over internet protocol (VoIP), the costs have come down to the realm of affordability for almost any size company.Small footprint phone systems can greatly reduce the needs from one full rack of equipment to one small box that can replace entire racks of equipment. This feature also offers a company the ability to scale as its business expands from one site to multiple sites. Through the use of the cutting-edge Aeonix Platform by Tadiran, delivery of reliable and scalable unied communications for any organization couldn’t be any simpler!Aeonix is one of the latest proven solutions from a company that has more than 50 years in telephony services across the globe. With more than 120,000 installations and growing, Tadiran has a strategic focus on reliability and scalability for organizations.This technology can be deployed across all avenues of connection methods, from cellular data, VSAT, terrestrial satellite, microwave, and wireless technologies. This broad range of delivery changes the way that services can be delivered.Data for a Company’s SitesData technologies are becoming more and more of a requirement for day-to-day operations day in a business. From a simple e-mail to a video conference with a colleague located across the globe at another branch, these are all applications that are moving business from a local to a global presence.With wide ranges of data solutions available, such as cellular, microwave, wireless, satellite, and terrestrial, a custom solution that can be used for the most efcient communications is possible. This option also allows a company to save costs and increase the stability of daily data needs.Data does not just mean Internet research anymore. With unied communications, the lines between all of a company’s needed systems can be integrated to make one user friendly and cost-effective solution. E-mail, messaging, video conferencing, shared data repositories, and even full servers to support critical business applications can now work seamlessly across any data connection and live as a cloud-offered solution.With the support of Microsoft, the cloud now is an affordable and turnkey solution for all of a company’s business needs, whether it has one employee or more than a million. These technologies bridge the gaps and reduce total operating cost of critical business services.Video for a Company’s SitesSome sites suffer from the cable TV blues, while other sites are located in the middle of the ocean or desert. With the advances in technologies for delivery of television systems, a custom solution can be delivered from one to more than 100 channels of video for a very affordable price. Whether a company needs all of its sites to have access to the latest box ofce movies, news, and sports or the latest company training video, there is a solution.With IP, voice, and video through coaxial and IP networks, a company can receive all of its entertainment, training, and corporate needs in one seamless system across all sites. This option includes the use of the innovative COM-2000 system with their its own integrated and custom IP-delivery technologies for delivering additional content to those that need it most, in a seamless and integrated system.The whole package can be affordable and scalable, often costing thousands less than the older style analog systems. With digital delivery via either coaxial or network technology, a solution can be tailored for a company’s needs and its sites.Cost Savings of Triple-PlayThe combinations of voice, data, and video services can be daunting to manage across multiple sites, vessels, and ofces, but that does not have to be the way any longer. The cost-effectiveness and affordability of these high technology systems today is amazing. Elias V. Basse III is Systems Engineer at MidSouth Technologies.Oilman Magazine / January-February 2015 / OilmanMagazine.com19A Winning Combination!Triple-play for the oil and gas industryBy Elias V. Basse IIIThe discipline of the oil and natural gas industry is demanding and constantly shifting to promote healthy organizational standards to meet and exceed policy and procedure variances along with revisions.

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com20 21INNOVATION AND TECHNOLOGYTime For a Reasonable Assessment of Oil PricesBy Don BriggsIt is safe to say that the hot button topic in the oil patch is the oil price and its impact on U.S. drilling operations. Many analysts and talking heads are stating that the current price drop is not affecting our U.S. market, while others are stating just the opposite. While it is impossible to accurately predict the future, today, we are seeing companies indeed restructuring their drilling budgets for 2015 due to the change in oil prices.Right here in Louisiana, some companies, such as Halcon and Sanchez, have already announced reductions in their budget for 2015 in the Tuscaloosa Marine Shale (TMS) directly due to falling oil prices. (See story, p. 38.) Unfortunately, Louisiana is not home to any cheap oil plays. The TMS is a good example of an expensive play especially now with $77 a barrel oil.The Gulf of Mexico has already seen companies reducing manpower and scaling back drilling budgets for 2015. To say the market in the U.S. is not being negatively affected is simply not an accurate assessment of the situation.What is the reasoning behind this drop in oil prices? For starters, U.S. production is up from 5 million barrels of oil a day to right around 8.7 million barrels a day. The Energy Information Administration is predicting that U.S. production will be at 9.5 million barrels of oil a day by 2015. For a mental comparison, this 9.5 million barrels a day gure is the same barrel count of 1971 when our nation reached peak oil.How does this uptick in production cause a fall in oil prices? As production rises and demand does not, a simple imbalance in the economics curve occurs. In addition to the U.S. oil supply drastically growing, international politics also play a role in the rise and fall of U.S. crude oil prices.The Organization of Petroleum Exporting Countries (OPEC) recognizes that the U.S. is gaining market share from them. OPEC, for obvious reasons, wants to retain control of the crude oil market. Saudi Arabia, a member of the cartel and the cartel’s largest producer, is specically making moves to retain its market share from the U.S. Saudi Arabia, in December 2015, lowered export prices to the U.S. and raised its prices to other countries. This shift caused a decline in U.S. oil prices. This export price drop from the Saudis to the U.S. makes drilling domestically less nancially appealing.As consumers are enjoying a brief bit of relief at the gasoline pump, the larger implications of cheap gasoline will play a more detrimental role on the U.S. economy should the price of oil continue to drop. So again, as analysts are indicating everything is still “ok” for the U.S. market, the company executives that are cutting jobs and reducing drilling budgets most likely do not agree with the television commentators. Something to keep in mind as oil prices drop is the fact that investors are not looking to simply break even on oil prices. These investors need an actual return on their investment, as this is what will keep the U.S. economy strong for the future.Photo by Maksim VivtsarukProfessionally protectingassets and livesPROTECTING YOUR ASSETS WITH ANENVIRONMENTALLY FRIENDLY SUPPRESSION AGENT. Novec 1230 Fire Suppression System Highlights •Highly effective fire suppression agent. •Harmless to the environment, with Zero Ozone Depletion and only a 5 day atmospheric life. •Ideal for environments such as computer rooms, control rooms and data rooms where uninterrupted operation of equipment is critical. •Novec 1230 will not damage sensitive electronic files or other valuable documents. •Engineered to be “Space Saving.” •Novec 1230 will not leave a residue. •Novec 1230 has an extremely large safety margin when discharged. Contact us for information on your next fire suppression project. 7701 Johnston Street Lafayette, LA 70596337-993-9377 | 337-216-972 fax | www.teamfss.comFSSLA (Fire & Safety Specialists Latin America)Calle 38 No. 304, Col Miami | Cd del Carmen, Campeche. México. Tel y Fax. 01(938) 3844239Start Securing your work environment by contacting Fire & Safety Specialists at WWW. TEAMFSS.COM

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com22 23OILMAN COLUMNFor the past 37 years, I have been involved in the oil and gas industry. During that time, I have had the opportunity of working in other outside capacities.From 2009 to 2013, I had the honor of serving as chairman of the 14-member international governing board of People to People International (PTPI) and acting chief executive ofcer during the spring/summer of 2013. PTPI world headquarters is based in Kansas City, Mo., and has a presence in 135 countries, with more than 80,000 families and individuals actively participating in student and adult programs.U.S. President Dwight D. Eisenhower founded PTPI during his presidency in 1956. It was an honor for me to work with Mary Eisenhower, granddaughter of former President Eisenhower and chief executive ofcer and president of PTPI.Another organization that I chair and was founder of is the International Energy Policy Conference. I asked Mary to share her views and vision at the 20th International Energy Policy Conference in 2012.The following are Mary’s remarks presented at that conference:“Energy is more than an ‘American issue.’ Energy is a global issue, as we are all interconnected. It is the topic at hand, whether we are discussing the future of America’s energy needs, or following the United Nations Human Development Index, which many of you know relates quality of life with access to energy. As James Conca shared in Forbes, ‘The world will not be rid of poverty, war, or terrorism until almost everyone on earth is in the middle class. And that requires energy.’ We are all in this together!Conca further stated, ‘That energy use is one of the most accurate indicators of what is considered prosperity and happiness is a powerful concept. Even more important to national security is that energy use trends with life span, peace, and democracy.’ Conca’s view is that it is ‘unethical and unjust, as well as not in our national security interests, not to ensure that the rest of humanity achieves prosperity and long life.’As we explore the future of energy, I hope that you will remember that point: we are all interconnected. When my grandfather, U.S. President Dwight D. Eisenhower, gave his famous, ‘Atoms for Peace’ speech in 1953, the topic was atomic warfare. He said, ‘Occasional pages of history do record the faces of the ‘great destroyers’, but the whole book of history reveals mankind’s never-ending quest for peace and mankind’s God-given capacity to build. It is with the book of history, and not with isolated pages, that the United States will ever wish to be identied. My country wants to be constructive, not destructive. It wants agreements, not wars, among nations. It wants itself to live in freedom and in the condence that the peoples of every other nation enjoy equally the right of choosing their own way of life.’ So whether we are facing the specter of atomic warfare in the 1950s or the future of natural gas today, it is you, the innovators and the visionaries, who will ensure a brighter future for all.In my role as People to People International’s president and chief executive ofcer, I have the great pleasure of working to connect people of all countries and cultures. Granddad believed that ‘peaceful relations between nations require understanding and mutual respect between individuals.’ It takes each of us, working together, to combat misperceptions, and it will take each of us, working together, to address the issues of energy in America and beyond. We owe it to ourselves and to each other to address these needs in terms beyond today. The future won’t wait!”Future generations are depending on us to keep the American dream alive. In the 1950s, President Eisenhower had the great vision to construct the massive interstate highway system – the road system we heavily rely on today.With the right leadership and vision, we can move forward with an energy plan much like the great vision that President Eisenhower had with moving forward the interstate highway system.It is time we come together! The U.S. has the immediate challenge of striving for energy independence and global energy security for others. It is extremely important that the U.S. be in a strong position of securing energy reserves within its own boundaries. America Needs America’s Energy!Please let me know what you think. Go to peoplesenergyplan.com to join the effort or visit us on Facebook. Eisenhower’s Energy VisionBy Mark Stansberry“Energy is more than an ‘American issue.’ Energy is a global issue, as we are all interconnected. It is the topic at hand, whether we are discussing the future of America’s energy needs...KEEPING AFE’s ON TRACK AND EVERYONE INFORMEDRig Chat’s vendor management system ORGANIZES and EDUCATES everyone in the eld and in the oceWe are REVOLUTIONIZING the way COMMUNICATIONis used in the oileldCONNECTING WITH PEOPLE...and connecting people with reliable information

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FEATURE FEATUREOilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com26 2726 27Further statistics point to a gap in the available workforce to ll the jobs that are soon to be vacated, and industry representatives express concern that the U.S. workforce will not have the skills needed to ll the jobs that the expanding oil and gas industry is creating. The greatest fear seems to rest in the potential loss of an extensive wealth of knowledge as workers with 30 or 40 years of experience exit the industry.How the industry is negotiating the cultural differences between generations to accomplish critical knowledge transfer ultimately will dene the oil and gas industry for decades.Young Professionals in PerspectiveFor the past decade, the not-for-prot group Young Professionals in Energy (YPE) has been providing a necessary forum for harnessing the opportunities for young people in the oil and gas industry and providing a runway for them to move up the knowledge curve to get promotions, take on more responsibility, and eventually run companies of their own.Stephen Cravens, executive director of Young Professionals in Energy, explains that this forum “allows the torch to be passed so this knowledge transfer can actually take place and experience doesn’t just wear off into the ether once the older generation retires.”YPE has more than 40,000 members worldwide and offers networking and career development through social, educational, and civic service opportunities in order to facilitate the advancement of young professionals in the global energy industry.Cravens, founder and CEO of Sutton Hill Co., co-founded YPE in 2005 with Michael Teplitsky, a vice president at Wynnchurch Capital.Cravens said that YPE’s events-focused mission lls a couple of gaps for the industry that existed in the early 2000s.“Before YPE was formed, the special interest groups, whether that be [The Society of Petroleum Engineers] or the [American Association of Professional Landmen], focused on their own niche,” Cravens said. “The reason that YPE has taken off is that it allows our members to really get exceedingly competitive in their elds.”YPE, he explains, opens up the opportunity for landmen to interact with investment bankers, private equity investors to interact with geologists, and so on.“That allows them to quickly advance up the knowledge curve so that we can more quickly ll the generation gap that is endemic in our industry and that has been so well publicized,” Cravens said.With its decade of service to young people, YPE has done more than just provide advancement – it’s helping build executives and entrepreneurs, according to Cravens.In a cross section of YPE’s 40,000 members, there are a signicant number of entrepreneurs in any segment you want to identify, he added.“Junior professionals who started coming around in 2005 and 2006 have been a part of all these new plays that have sprung up around North America,” Cravens said. “The growth in the industry right now and the growth in these geographic areas that this is taking place are less than ten years old, so you take a 35-year-old geologist YPE member, and he or she may be as knowledgeable in a particular play as somebody who is 60 years old.”The way this reality has manifested itself in the industry, he noted, is that YPE members, who are executives or partners at private equity rms, are actually making the decisions to acquire companies, own them, and grow them.YPE’s ability to grow over the years has been directly linked to its location in Houston, according to Cravens. The organization’s membership originates from the many energy rms located in the region and radiates across the globe from there.“They may go from Houston to London, Houston to Africa, Houston to South America, Houston to Calgary, and it’s like they have a void once they get to these new places that can really only be lled by the networking that YPE provides,” Cravens said. “So they will move down to Mexico City or they’ll be in London, and they’ll say, ‘I need YPE in this city.’ Part of my function is to empower and set up these leaders to have YPE thrive in their city.”This process of organic growth, he added, has been the result of “just showing our members a good time just in our core areas.”Craven’s goal for every YPE event is to “tap into something intrinsically or uniquely human, which is to provide an exceptional networking experience by instilling a sense of comfort and community that they can’t get anywhere else.”“A job in the energy industry usually means doing something very technical or specialized in a city that may not be where Business Insider says is the top ve cities where college graduates want to move to,” he said. “The people who self-select into this industry do it because they love the industry, and it’s almost like they want to be successful in this industry above a lot of the other factors that maybe go into the decision making of a millennial.”YPE is trying to access this group of people who want to establish connections and move up the learning curve in the energy industry, but may also experience certain barriers in the process.“Maybe they have anxiety around walking into a business where they don’t know anyone or walking into a crowded venue when they don’t know anyone,” Cravens said. “YPE has been successful because it can grease those skids and for the rst few minutes for a new attendee to a YPE event, make that person feel exceedingly comfortable to where they can then meet more people.”The result, he explained, becomes cyclical, as members become advocates for the organization.“We’ve really tapped into what their core passions are, which is to network, and we’ve provided an acceptable environment for 20-somethings to talk business,” he said.In addition, YPE focuses on empowering its membership.“The industry is evolving in terms of more training and making the ofce environment more pleasant for millennials – there’s healthy snacks and wellness programs, etc., but for the longest time, the energy norms were such that you sat in a dark ofce and you were just expected to do your work,” Cravens said. “While that was how you paid your dues over the years, what YPE then allows is for people to come out of that cave and come to an event where people actually are asking you what kind of work you do.”A simple expression of interest, he added, empowers young people to be more interested in their work.“When you go out with your friends who don’t work in the industry, they don’t really understand the technical aspects of oil and gas and they’re not really going to be digging into what you do,” Cravens said. “YPE provides an environment in which people curiously and with a lot of listening bandwidth ask you what you do.”This external stimulus provides a “blanket of empowerment” that allows young professionals to be bolder with a boss, ask for more responsibility, talk to a competitor, or consider different roles within their organizations, he said.YPE networking lunch in Bismark, N.D. Photo Courtesy of YPEYPE charity event in Oklahoma city. Photo Courtesy of YPESaint Jude donation. Photo Courtesy of YPEYPE Halloween party in Oklahoma City. Photo Courtesy of YPEYPE charity golf event in Canton, Ohio. Photo Courtesy of YPEYPE Abu Dhabi site visit. Photo Courtesy of YPE

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com28 2928 29FEATURE OIL & GAS EDUCATION NEWSAdvice for Young ProfessionalsCraven believes that young professionals can take specic, aggressive action to demonstrate their interest in moving up the knowledge curve in the oil and gas industry.“My recommendation to these people is to contact the companies directly and lead in with the clear concise statement that they are willing to move to Oklahoma City or Houston or Calgary,” he said. “Those locations are not part of the natural ow of where top-tier or high achieving college graduates naturally go after college.”He suggested that parents of high school students consider the value of moving to Oklahoma City or spending two to three years in Houston, for example.“By letting these rms in energy hubs know that the person is already on the ground in Houston or ready to move to Alberta will put them at the head of the pack,” Cravens said.Advice for CEOsCravens said that CEOs can build loyalty and promote long-term interest in oil and gas among younger employees in two ways.“CEOs should over-communicate with young professionals,” he said. “That is the number one thing they can do to have these people buy into the company and to allow them to sound knowledgeable with their peers about what is going on with the company.”CEOs also can pay attention to what young people need in their physical environment compared to the generations before them.“They like to be in an open environment and have more interactions throughout the day than the prior generation of oil and gas professionals does,” he said. “It’s important to promote more informal interactions without disciplines within the organization just because these junior professionals don’t know at 23 or 24 what job role within the company might be their best long-term t.”He suggested that CEOs consider spreading their employees out and giving junior employees an opportunity to get exposure to different functions within the company.“People come out of undergrad or they start their career thinking that jobs in oil and gas are pretty narrow,” he said. “They need to realize that there are these diverse crucial roles within these rms that aren’t widely publicized. Whether you’re the person that markets the production of oil and gas or you review the insurance contracts, there are all kinds of niches within these companies.”It’s up to the CEOs to create a forum for interactions across functions within the company in order to retain talent for the long run, he said.Texas A&M University-Kingsville Launches Engineering InitiativeTexas A&M University-Kingsville has launched a plan to bring Javelina Engineering to the Rio Grande Valley.The Rio Grande Valley Engineering Initiative will expand engineering educational and research programs to the Rio Grande Valley in January. Initial offerings will include bachelor’s programs in chemical, environmental and natural gas engineering. Classes will be held at the A&M-Kingsville Citrus Center in Weslaco.While a limited amount of courses will be offered in January, the rst round of engineering students is expected to be admitted later this year. The initiative will make it possible for engineering students in Rio Grande Valley to earn a Texas A&M-Kingsville degree from the Weslaco campus.In related news, The Center for Continuing Education at Texas A&M University- Kingsville recently began offering basic courses geared at training employees for entry-level positions in the oil and gas industry.As the result of an agreement with Navarro Junior College, Texas A&M-Kingsville is teaching these classes through ShaleNET, a program funded through the Trade Adjustment Assistance Community College and Career Training Grant. The rst class was for roustabouts.Texas Senator Celebrates Debut of Oil and Gas Mobile ClassroomTexas State Senator Judith Zafrini recently joined state, local and Coastal Bend College (CBC) ofcials in celebrating the debut of the college’s new mobile Process Technology trailer, which will provide hands-on experience for students interested in pursuing careers in the oil and gas industry.The trailer and equipment will allow CBC to provide top-quality training not only at its campus in Beeville and sites in Alice, Kingsville and Pleasanton, but also at the high schools in 14 rural counties, where the college offers dual-enrollment programs. Participating students will receive instruction in areas including programmable logic controllers, petroleum instrumentation, oil and gas electricity and electrical power instruction.“I am delighted that this equipment will help expand higher education opportunities in South Texas and the Coastal Bend,” said Senator Zafrini during the launch celebration. “What’s more, this mobile classroom will allow more high school students to explore careers in the oil and gas industry while gaining valuable hands-on experience and earning college credit.”The purchase of the trailer and equipment was made possible by a $347,548 grant from the state’s Jobs and Education for Texans grant program. As a member of the Senate Finance Committee, Zafrini secured $25 million for the program in 2009 and an additional $10 million in 2013.South Texas Establishes Oil & Gas Law InstituteSouth Texas College of Law/Houston recently established the region’s rst Oil & Gas Law Institute, an initiative to address the growing legal needs in the energy industry through a wide-ranging regimen of courses, projects, symposia, advocacy and scholarship.Located in downtown Houston, the law school has been educating and preparing practice-ready graduates to serve the energy industry for decades. The institute will build extensively on this experience through expanded educational and training classes, programs and opportunities, and by promoting oil and gas legal scholarship pertaining to industry practice in Texas and beyond.“With the U.S. in the midst of an historic energy transformation and Houston at the heart of it, South Texas College of Law knew it was the right time to establish the Oil & and Gas Law Institute,” said President and Dean Donald J. Guter in a statement. “Our goal is to be the national leader in oil and gas law education. The needs are great, and we believe there is no better place to have this institute than at South Texas College of Law in downtown Houston.”The institute will seek to respond to the specic, practical needs of law rms and the energy industry and provide students the education and training they need to make immediate contributions to the oil and gas industry.The college has selected Christopher Kulander, a visiting associate professor, as the initial director of the Institute. Kulander, who taught oil and gas law for three years at Texas Tech University, is Of Counsel at Haynes and Boone, LLP, is a legal writer, works as an expert witness, and frequently gives presentations and speeches about the oil and gas industry. He also will represent the institute at various oil and gas events in Texas and throughout the nation.“South Texas has a unique opportunity to be the leading law school for educating and training practice-ready graduates in the oil and gas industry, and that is attractive to potential employers,” Kulander said in a statement. “The workforce needs of the oil and gas industry continue to grow, particularly in the legal arena. South Texas fully understands this fact and is prepared to address those demands through the institute’s diverse classes and programs.”The Institute will concentrate on developing applied petroleum-related transactional, title and regulatory practice skills. Kulander said one of his main goals is to make the third year in law school much more specialty-focused and practice-responsive. In addition, the institute will seek to place advanced students in the legal departments of oil and gas companies around Houston. Future areas of study will include international petroleum transactions, midstream and downstream oil and gas activities, and other sources of energy.Additionally, the institute will produce and promote signicant scholarships related to the oil and gas legal business, and the institute may partner with other educational institutions and policy institutes to help lead public discourse on topics pertaining to the oil and gas industry and the energy sector overall.With a planned advisory board comprised of representatives from the energy industry, academia and regulatory and legislative agencies, the institute also will sponsor policy papers and public symposia on specic current issues.YPE Houston Clay Shoot for a Cause. Photo Courtesy of YPEYPE innovation summit in Israel. Photo Courtesy of YPEStephen Cravens, Executive Director, Young Professionals in Energy. Stephen coordinates global YPE operations and leads efforts to empower leadership at the local level. He works currently as founder and CEO of Sutton Hill Co., a provider of investor relations and talent acquisition services to private equity rms. Prior to founding Sutton Hill, Stephen led the global fund analytics practice at Cogent Partners, where he called on the world’s largest and most sophisticated pension funds, endowments and foundations. He is a native of Dallas.

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com30 31NEWS AT A GLANCE NEWS AT A GLANCEBill to Approve Keystone XL Pipeline Fails in SenatePolicy Considered for NG Modernization Cost RecoveryHalliburton Co. and Baker Hughes Inc. have reached a denitive agreement, under which Halliburton will acquire all the outstanding shares of Baker Hughes in a stock and cash transaction.“We are pleased to announce this combination with Baker Hughes, which will create a bellwether global oileld services company and offer compelling benets for the stockholders, customers and other stakeholders of Baker Hughes and Halliburton,” said Dave Lesar, chairman and chief executive ofcer of Halliburton. “The transaction will combine the companies’ product and service capabilities to deliver an unsurpassed depth and breadth of solutions to our customers, creating a Houston-based global oileld services champion, manufacturing and exporting technologies, and creating jobs and serving customers around the globe.”The transaction is valued at $78.62 per Baker Hughes share, representing an equity value of $34.6 billion and enterprise value of $38 billion, based on Halliburton’s closing price on Nov. 12, 2014. Upon the completion of the transaction, Baker Hughes stockholders will own approximately 36% of the combined company. The transaction is subject to approvals from each company’s stockholders, regulatory approvals and customary closing conditions.Halliburton to Acquire Baker HughesThe U.S. Senate on Nov. 18, 2014, fell short of passing a bill introduced by Sen. John Hoeven (R-N.D.) to approve the Keystone XL Pipeline by a vote of 59 to 41. On Nov. 14, 2014, the U.S. House of Representatives passed the bill by a vote of 252-161.“Today, we did not gain the 60 votes necessary in the Senate to pass my bill to approve the Keystone XL pipeline,” Hoeven said in a Nov. 18 statement. “Even had it passed, however, President Obama has indicated that he intends to veto the bill. I believe we will have the votes to pass the bill in January when a number of new Senators who support my legislation take ofce and the new Congress begins.”Hoeven said he may reintroduce the bill as part of a broader energy package or appropriations bill that the president will not want to veto.TransCanada on May 4, 2012, led an application with the Department of State to build the 1,179-mile Keystone XL pipeline project from Hardisty, Alberta., to Steele City, Neb.Keystone XL would allow oil producers in Canada and the northern U.S. to access rening markets in the Midwest and Gulf Coast by connecting to the Cushing Extension and Gulf Coast pipeline. –JDThe Federal Energy Regulatory Commission (FERC) in November 2014 asked for public comments on a proposed policy statement that would allow interstate natural gas pipelines to recover, through surcharge or tracker mechanisms, certain capital expenditures made to modernize pipeline system infrastructure to enhance reliability, safety, and regulatory compliance.As a result of regulatory reforms by the Pipeline and Hazardous Materials Safety Administration, interstate pipelines likely will face new standards requiring signicant capital cost expenditures to enhance the safety and reliability of their systems. Under recent Environmental Protection Agency initiatives, they also may face increased environmental monitoring and compliance costs, as well as a need to replace or repair existing compressors and other facilities.The proposed policy statement is meant to ensure that existing FERC ratemaking policies do not create barriers to the ability of pipelines to expedite needed or required upgrades and improvements. In addition to allowing recovery of modernization costs, FERC may consider capital costs to replace compressor facilities or make other improvements in response to increased federal or state environmental regulations as eligible for inclusion in the surcharge.Under the proposed policy statement, a pipeline seeking a cost-recovery surcharge would have to meet ve standards:• The pipeline’s base rates must have been recently reviewed through a rate proceeding or through a collaborative effort between the pipeline and its customers• Eligible costs must be limited to one-time capital costs incurred to meet safety or environmental regulations, and the pipeline must specically identify each capital investment to be recovered by the surcharge• Captive customers must be protected from cost shifts if the pipeline loses shippers or increases discounts to retain business• There must be a periodic review to ensure rates remain just and reasonable• The pipeline must work collaboratively with shippers to seek their support for any surcharge proposalIt’s just heat, caused by agitated oil in a flameless, sparkless, low-pressure environment to deliver up to 1.2 million BTUs per hour with temperatures exceeding 180°F at 7,500 CFM. But when it’s ten below and an open flame is out of the question, what it provides at your rig site is immeasurable.THERM DYNAMICS manufacturers different models with varying heating capacities. Visit thermdynamics.com for details. The TD400 Flameless Heater is just one of many THERM DYNAMICS units Globec Resources, LLC carries. As the Mid-Continent Dealer for THERM DYNAMICS, you can be assured that we have the right rig to fit your job. Give us a call today.GLOBEC RESOURCES, LLC Mid-Continent Dealer for THERM DYNAMICS(806) 669-9421Steele CityHardistyCalgaryReginaWinnipegBismarckBakerPierreLincolnTopekaJefferson CitySpringfieldKeystone Pipeline:Hardisty to Steele City, Wood River & PatokaWood RiverPatoka

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NEWS AT A GLANCE NEWS AT A GLANCE: OFFSHOREOilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com32 33Chevron Makes Offshore Oil Discovery in Wilcox SandsHess Plans Offshore Development of StampedeRepsol Discovers Oil Offshore at LeónEPA: Oil Reserves Surpass 36bn barrelsThe U.S. Energy Information Administration (EIA) in December reported that U.S. crude oil and lease condensate proved reserves rose for the fth consecutive year in 2013, increasing by 9% from the 2012 level to 36.5 billion barrels.According to the “U.S. Crude Oil and Natural Gas Proved Reserves, 2013” report, U.S. crude oil and lease condensate proved reserves surpassed 36 billion barrels for the rst time since 1975.The EIA reported that North Dakota had the largest increase (1.9 billion barrels, 51%) in oil reserves among individual states in 2013, based on development of the Bakken/Three Forks formation in the Williston Basin. With 5.7 billion barrels of proved reserves, North Dakota has more reserves than the federal offshore waters of the Gulf of Mexico.Texas remains the leading state in total proved oil reserves, with an 8% increase in reserves from 11.1 billion barrels in 2012 to 12 billion barrels in 2013, according to the report. In addition, the EIA found that the largest decline of 2013 was in Alaska, where proved reserves decreased by 454 million barrels, due mainly to reduced well performance at large existing oil elds.Chevron has made a new oil discovery at its Guadalupe prospect in the deepwater U.S. Gulf of Mexico.“Chevron subsidiaries are among the top producers and leaseholders in the Gulf of Mexico, averaging net daily production of 143,000 barrels of crude oil, 347 million cubic feet of natural gas, and 15,000 barrels of natural gas liquids during 2013,” said Jeff Shellebarger, president, Chevron North America Exploration and Production Co. “The company expects additional Gulf of Mexico production from the Tubular Bells and Jack/St. Malo projects by the end of the year.”The Keathley Canyon Block 10 Well No. 1 encountered signicant oil pay in the Lower Tertiary Wilcox Sands. The well is located approximately 180 miles off the Louisiana coast in 3,992 feet of water and was drilled to a depth of 30,173 feet.Hess Corp., together with its project co-owners, plans to proceed with the development of Stampede, an oil and gas project in the deepwater U.S. Gulf of Mexico.Discovered in 2005, the Stampede Field is located approximately 115 miles south of Fourchon, La., in the Gulf of Mexico (Green Canyon Blocks 468, 511 and 512). The eld is located in approximately 3,500 feet of water, with a reservoir depth of 30,000 feet. The plan initially calls for six subsea production wells and four water injection wells from two subsea drill centers tied back to a tension leg platform. A two-rig drilling program is planned, with the rst rig commencing operations later this year. First production is expected in 2018.The processing capacity for the project is approximately 80,000 barrels of oil per day and 100,000 barrels of water injection capacity per day. Total estimated recoverable resources for Stampede are estimated in the range of 300 million to 350 million barrels of oil equivalent. The development is estimated to cost approximately $6 billion.Hess has a 25% working interest in the project and is the project operator. Union Oil Co., a Chevron subsidiary, Statoil, and Nexen Petroleum Offshore U.S.A. Inc. each have a 25% working interest.Repsol has made a new oil discovery in the U.S. Gulf of Mexico. The company made the nd about 218 miles from the Louisiana coast in an ultra-deep water well named León, located in the Keathley Canyon 642 block.The well found about 492 feet of net oil pay within a column of over 1,312 feet. The well was drilled in water just over one mile deep, and reached a total depth of about six miles, making it one of the deepest wells operated by the company.Repsol has a 60% participation in the license, with Colombia-based Ecopetrol holding the remaining 40%.Photo by JCVPhoto by Kathy Hicks

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com34 35OKLAHOMA NEWS AT A GLANCE...Continental Completes Four Springer Wells in SCOOPContinental Resources, Inc., has completed four oil wells in its Springer play in the South Central Oklahoma Oil Province (SCOOP).“Four new wells further conrm the repeatability and growth potential of Continental’s new discovery, the Springer play in SCOOP,” said Harold G. Hamm, chairman and chief executive ofcer of Continental. “These individual delineation wells in the play are generating excellent returns, with shallow decline rates compared to other unconventional resource plays. We expect to realize even stronger well economics as development drilling gets underway utilizing extended laterals, pad drilling, and other drilling and completion efciencies.”The four new wells had an average horizontal lateral length of approximately 4,475 feet. Continental expects estimated ultimate recovery of 940,000 gross barrels of oil equivalent (Boe) per well in the oil fairway of the play for a well with a 4,500-foot lateral section. In November 2014, Continental commenced drilling its rst extended lateral well in the Springer play, with a planned lateral length of 7,500 feet. The company expects an average estimated ultimate recovery of approximately 1.6 million gross Boe for extended lateral wells of this length, reecting the 67% longer lateral.Continental’s current Springer production is approximately 9,200 gross Boe per day, of which approximately 70% is crude oil.The four new wells in Grady County, Okla., include:• The Nancy J 1-28H well with an initial 24-hour production test rate of 1,815 Boe, with 79% of the initial production being crude oil• The AC Walters 1-27H with an initial 24-hour test rate of 1,630 Boe, of which 78% was crude oil• The Schoof 1-17H with an initial 24-hour production of 1,465 Boe, of which 74% was crude oil• The Ince 1-21H with an initial 24-hour production test rate of 1,037 Boe, of which 86% was crude oil Plains All American to Build Pipeline from Duncan to LongviewPlains All American Pipeline, LP, plans to construct a new 226-mile, 16-inch pipeline originating from the Plains Basin pipeline system at Duncan, Okla., and largely following an existing Plains right-of-way to Longview, Texas. The pipeline is supported by long-term commitments and is expected to be completed by the second quarter of 2016.The new pipeline will also have access to Cushing-sourced crude oil through connections with the Plains Cherokee and Red River pipeline systems. Capacity for the pipeline will be approximately 150,000 barrels per day (bpd) of WTI crude oil, and the pipeline will have the ability to deliver crude oil to local reneries in Oklahoma and in East Texas, and to the Plains Longview terminal, which is connected to third-party pipelines. As part of the project, capacity for an existing Plains pipeline system from Longview to Shreveport will be increased from 40,000 bpd to 80,000 bpd with a joint venture partner. Continental Joint Venture to Develop Northwest Cana Woodford ShaleContinental Resources, Inc., has formed a joint venture with a wholly owned U.S. subsidiary of South Korea-based SK E&S Co. Ltd to jointly develop a portion of Continental’s Northwest Cana Woodford natural gas assets, primarily in Blaine and Dewey counties, Okla.Continental sold a 49.9% interest in approximately 44,000 net acres in the Northwest Cana area of the Anadarko Woodford Shale play, including interests in 37 producing wells, for total consideration of approximately $360 million. Continental OKLAHOMA NEWS AT A GLANCE...received $90 million at closing, and SK has committed to pay an additional $270 million to carry 50% of Continental’s remaining share of future drilling and completion costs.The companies’ joint development agreement establishes an area of mutual interest in Northwest Cana and certain incentives for the joint venture to expand its leasehold position. Continental will be the operator for all current and future wells that are operated by the joint venture. The company began drilling in the AMI during November 2014, with four operated rigs running by the end of the year. Monarch Launches Open SeasonMonarch Oil Pipeline, LLC, a subsidiary of Monarch Natural Gas Holdings, LLC, on Dec. 1, 2014, launched an open season to solicit capacity commitments from shippers for a new crude oil pipeline system that will be constructed to gather and transport crude oil in interstate commerce from production areas in Hemphill and Lipscomb counties, Texas, to Plains Pipeline, LP’s, Reydon Station located in Roger Mills County, Okla., with the potential for expansion to other regional interconnects.The new pipeline system will be divided into two primary components, an upstream gathering system to transport crude oil from the production areas to the Casey Station, an operational terminal and storage facility in Section 161 in Lipscomb County, Texas, and an 8-inch mainline pipeline that will transport crude oil from the Casey Station to the Reydon Station interconnect. Monarch projects an initial capacity of 30,000 barrels of crude oil per day on both components, but is open to negotiations to increase the pipeline capacity and/or alter its conguration to meet market needs.The open season ends Jan. 30. American Energy Minerals Raises $500mAmerican Energy Minerals Holdings, LLC, an afliate of American Energy Partners, LP, has raised $500 million in equity commitments to pursue a business plan focused on the acquisition of minerals and overriding royalty interests across targeted high-return onshore basins in the U.S.The equity commitment was provided by AEMN’s private equity sponsor, Houston-based The Energy & Minerals Group, with additional equity provided by American Energy Partners others. The rst $350 million closing will be used to acquire 28,000 net mineral acres and 29,000 acres of ORRIs across the the Woodford Shale in Oklahoma as well as Ohio’s Utica Shale, the Marcellus Shale in Pennsylvania and West Virginia, and the Permian Basin in Texas.

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37Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com36 37TEXAS NEWS AT A GLANCE... TEXAS NEWS AT A GLANCE...Railroad Commission Amends Disposal Well RulesThe Railroad Commission of Texas (RRC) has adopted disposal well rule amendments designed to address disposal well operations in areas of historical or future seismic activity. Disposal wells are permitted by the RRC to dispose of non- hazardous produced water and hydraulic fracture owback uid from oil and gas wells.“These disposal rule amendments represent the fourth signicant rule amendments over the last three years,” Commissioner Barry Smitherman said in an Oct. 28, 2014, statement. “Our rst in the nation hydraulic fracturing chemical disclosure rule, our water recycling rules, our rule amendments relating to well integrity and construction requirements, and now this seismic-related rule, maintain the [RRC’s] commitment to best practices for the industries we oversee.”The main components of the adopted rule amendments are:• Requiring applicants for new disposal wells to conduct a search of the U.S. Geological Survey seismic database for historical earthquakes within a circular area of 100 square miles around a proposed, new disposal well• Clarifying the RRC staff authority to modify, suspend or terminate a disposal well permit, including modifying disposal volumes and pressures or shutting in a well if scientic data indicates a disposal well is likely to be or determined to be contributing to seismic activity• Allowing RRC staff to require operators to disclose the current annually reported volumes and pressures on a more frequent basis if staff determines a need for this information• Allowing RRC staff to require an applicant for a disposal well permit to provide additional information, including pressure front boundary calculations, to demonstrate that disposal uids will remain conned if the well is to be located in an area where conditions exist that may increase the risk that the uids may not be connedThe amendments became effective on Nov. 17, 2014. TXOGA, Land Ofce File Suits against City of DentonThe Texas Oil & Gas Association and the Texas General Land Ofce on Nov. 5, 2014, led lawsuits in Denton County and Travis County, respectively, against the City of Denton, Texas, in response to voter passage on Nov. 4, 2014, of a town ordinance banning hydraulic fracturing. According to the TXOGA, the ban is inconsistent with state law and violates the Texas Constitution. The TXOGA said that while home-rule cities may regulate some aspects of exploration and drilling, TXOGA does not believe that they may enact ordinances that outlaw conduct, such as hydraulic fracturing, that has been approved and regulated by state agencies.In a Nov. 5, 2014, statement about the ban, Railroad Commission of Texas Chairman Christi Craddick said the charges delegated to the Railroad Commission of Texas are to manage the safe and responsible production of the state’s natural resources.“We have ensured that our state has an exemplary environmental and public safety record,” Craddick said. “That record has fostered unprecedented economic growth and job creation. It is my goal that every community in Texas not only understands that they are safe, but they are the beneciaries of our regulatory expertise.”The City of Denton on Dec. 1, 2014, led its answers to the petition, claiming that environmental conditions in Denton that are caused by hydraulic fracturing “constitute a public nuisance, which may be abated and future occurrences prevented by the city under its regulatory powers.” –JDPlains All American to Acquire Interest in BridgeTexPlains All American Pipeline, LP (PAA) has entered into a denitive purchase and sale agreement with Occidental Petroleum Corp. for the purchase by PAA of Occidental’s 50% interest in BridgeTex Pipeline Co. for approximately $1.1 billion.The BridgeTex pipeline is a new 300,000 barrel-per-day crude oil pipeline system that extends from Colorado City in West Texas to Texas City. At Colorado City, the BridgeTex pipeline is connected to PAA’s Basin Pipeline System as well as PAA’s Sunrise Pipeline. The Sunrise Pipeline originates in Midland.Approximately 80% of the BridgeTex pipeline’s capacity is committed to long term contracts with a volume weighted average tenor of 9.5 years. The remaining 50% interest in BridgeTex is owned by Magellan Midstream Partners, LP, the operator of the pipeline.BridgeTex also has agreed to sell the southern segment of the pipeline system, which runs from Houston to Texas City to Magellan. Energy Department Authorizes Freeport LNG for ExportThe U.S. Department of Energy (DOE) has issued two nal authorizations for Freeport LNG Expansion, LP, and FLNG Liquefaction, LLC, to export domestically produced liqueed natural gas (LNG) to countries that do not have a free trade agreement with the U.S. The Freeport LNG terminal in Quintana Island, Texas, is authorized to export LNG up to the equivalent of 1.4 billion standard cubic feet per day (Bcf/d) of natural gas and 0.4 Bcf/d, for a total authorized volume of 1.8 Bcf/d, for a period of 20 years.According to the DOE, federal law requires approval of natural gas exports to countries that have an FTA with the U.S., and for countries that do not have an FTA with the U.S, the Natural Gas Act directs the DOE to grant export authorizations unless it nds that the proposed exports “will not be consistent with the public interest.” Partnership to Build NGL PipelineLone Star NGL, LLC, a partnership of Energy Transfer Partners, LP, and Regency Energy Partners, L.P., plan to construct a 533-mile, 24- and 30-inch natural gas liquids (NGL) pipeline from the Permian Basin to Mont Belvieu, Texas. In addition, Lone Star will convert the existing 12-inch West Texas NGL pipeline into crude oil/condensate service. The new pipeline and conversion projects, estimated to cost between $1.5 billion and $1.8 billion, are expected to be operational by third quarter of 2016 and rst quarter of 2017, respectively.The new pipeline is being built to accommodate Lone Star’s contracted NGL transportation volumes that will exceed the partnership’s existing 290,000 barrels per day of capacity from the Permian Basin by 2016. The 24-inch pipeline will initially be sized to transport 375,000 barrels per day from the Permian Basin to Bosque County, Texas, while the 30-inch pipeline is currently sized to transport 495,000 barrels per day from Bosque County to Mont Belvieu, Texas.Lone Star’s West Texas NGL pipeline runs from the Midland area to the Gulf Coast and will be sized to ship 70,000 barrels per day to Corsicana, Texas, and 100,000 barrels per day to Sour Lake, Texas.

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com38 39Louisiana Voters Approve Amendment 8Voters in Louisiana on Nov. 4, 2014, approved Amendment 8, the Louisiana Articial Reef Development Fund Protection, by a vote of 758,142 to 567,483.The legislatively referred constitutional amendment establishes constitutional protection for the Articial Reef Development Fund (ARDF). According to the Louisiana Legislative Fiscal Ofce (LFO), the original fund was statutorily dedicated and not constitutionally protected, so funds could be “swept” to cover budget shortfalls in other state agencies. Approximately $46 million was swept to cover state budget shortfalls over the past few scal years, leaving a $12.5 million balance in the fund, the LFO said.The ARDF relies on donations and grants from oil and gas companies. Once an oil platform is no longer productive, it can be donated to the state and converted to an articial reef instead of being disassembled and removed. The company donates half of the realized savings from not disassembling the platform to the state in order to maintain the fund. In addition to the articial reef creation, up to 10% of donations can be used to support the wild-caught sh certication program and another 10% can be applied toward enhancement projects for shery habitats.The amendment creates constitutional protection ensuring funding can only be used for ARDF purposes, making the fund inaccessible to use for addressing budget shortfalls for other agencies and programs.The bill was sponsored in the legislature by State Senator Bret Allain as Senate Bill 128. –JDVenture Global to Develop LNG Export FacilityVenture Global LNG is developing a liqueed natural gas export facility, called the Calcasieu Pass Project, in southwestern Louisiana.The U.S. Department of Energy (DOE) authorized the Calcasieu Pass Project to export 10 million tonnes per annum of LNG to countries that have a free trade agreement with the U.S. Additionally, the project is seeking authorization from both the Federal Energy Regulatory Commission and the DOE to export 10 million tonnes per annum of LNG to non-FTA countries.“Venture Global’s investment of $4.25 billion in Louisiana is the latest in an impressive series of projects here in southwest Louisiana that showcase our state’s tremendous energy infrastructure and our outstanding workforce,” Louisiana Governor Bobby Jindal said. “Cameron Parish affords the company great access to both natural gas supplies and deep-water access for shipping LNG to customers around the world. With billions of dollars in new investment for projects like Venture Global LNG, Louisiana is moving forward with next-generation energy infrastructure to connect to world markets and to create the best jobs for the future.”The export facility will be located on 203 acres along the Calcasieu Ship Channel, where it meets the Gulf of Mexico. The plant will operate with a midscale, modular technology to capitalize on low-cost natural gas production under the direction of a top management team, including energy, engineering and nancial experts.Located south of Lake Charles, La., the Calcasieu Pass Project will be built, operated and manufactured in Louisiana and will create 1,500 construction jobs, 326 indirect jobs, and 100 permanent jobs for the community.The timeline for the project includes the regulatory and government ling process and securing commercial agreements through 2016, with operations beginning in late 2019. Halcon Scales Back In Tuscaloosa Marine ShaleHalcon Resources told investors during a Nov. 11, 2014, earnings call that it will be scaling back drilling in the Tuscaloosa Marine Shale in southeast Louisiana and southwest Mississippi due to falling oil prices.“[Regarding the] Tuscaloosa Marine Shale, I’m going to do my darndest to make sure that people understand that we’re highly condent and we like the play,” said Halcon Chairman and Chief Executive Ofcer Floyd Wilson. “There is a lot of oil there, but it’s an early-stage development project. The core of the play has plenty of commercial locations, however, it is currently a relatively high-cost play, and with currently low crude prices, we will not be devoting a signicant portion of our resources to the Tuscaloosa Marine Shale in the near term. We don’t have any lease issues we care about.”The company said that it plans to pull its two rigs from the shale and focus on growing its prospects in the Williston Basin in North Dakota and Montana and the El Halcon Basin in eastern Texas.Earlier this year, the company secured investments to expand operations in the Tuscaloosa Marine Shale. The company announced in June its plan to spud 10 to 12 operated wells in the shale, running an average of two rigs in 2014. The company signed an agreement with afliates of Apollo Global Management for an investment of up to $400 million to support Halcon’s efforts. –JDJ-W to Acquire BHP’s Northern Louisiana PropertiesJ-W Operating Co. will acquire oil and gas properties in northern Louisiana from BHP Billiton. The properties are located in the Elm Grove and 38 39LOUISIANA NEWS AT A GLANCE... LOUISIANA NEWS AT A GLANCE...Caspiana elds and include interests in approximately 1,200 wellbores and associated gathering lines and compressor facilities. By the addition of approximately 700 active wells that are producing in the Cotton Valley formation, a conventional oil and gas eld, the acquisition will result in a signicant and immediate increase in production. The acquisition does not include any of BHP’s unconventional Haynesville Shale assets.“This acquisition will t perfectly into our existing portfolio in the Elm Grove and Caspiana elds and will increase our holdings by over 200 BCF in proven reserves,” said J-W President Tony Meyer. “Our evaluation suggests the potential for horizontal drilling opportunities as well as increased value through rework of the existing infrastructure.”The companies did not disclose the terms of the transaction. Apache Sells O&G Assets for $1.4bnApache Corp. has agreed to sell non-core southern Louisiana oil and gas assets along with other assets for approximately $1.4 billion in two separate transactions.In southern Louisiana, Apache agreed to sell its working interest in approximately 90,000 net acres. These mature elds, which are characterized by high decline rates and short reserve lives, produced approximately 21,000 barrel of oil equivalent (BOE) per day (62% gas and NGLs) net to Apache during the third quarter of 2014. Apache will retain its 275,000 mineral acres in south Louisiana.In a related transaction, Apache agreed to sell approximately 115,000 net acres in a portion of its Stiles Ranch eld in Wheeler County, Texas, and in its Mocane- Laverne and Verden elds in western Oklahoma. Net production from these properties averaged 26,000 BOE per day (83% gas and NGLs) during the third quarter of 2014. SCT&E LNG Receives DOE Approval for ExportSCT&E LNG has received authorization from the Department of Energy (DOE) to export liqueed natural gas (LNG) for 30 years to countries that hold a free trade agreement with the U.S.The DOE conducted a review of the application to export LNG from the future SCT&E LNG export terminal and determined that the exports are in the public interest. From its proposed 246 acre LNG project site on Monkey Island in Cameron Parish, La., SCT&E LNG plans to liquefy approximately 1.6 billion cubic feet of natural gas per day to produce approximately 12 million metric tons per annum (mtpa) of domestically produced LNG.“We are extremely pleased with the DOE’s approval at this time,” SCT&E LNG CEO Greg Michaels said in a statement. “Those that are concerned about climate change should also be extremely pleased with this approval. This project will be a substantial component to the international transition from the burning of traditional dirty fuels to clean burning natural gas.”At the next stage of the project, SCT&E LNG will seek approval from the Federal Energy Regulatory Commission for siting, construction, and operation of its LNG facilities. A nal regulatory step will involve approval from the DOE for export authorization of 12 mtpa to non-free trade countries SCT&E LNG is currently in the process of developing a $40 million private offering for investment into the company. After the private offering is complete, the plans to have an initial public offering (IPO).

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Traveling across the country attending BBQs, press conferences, county fairs and other energy-fueled events, you run into quite a cast of characters. In addition to the personalities, the scenery can be breathtaking as well. Whether your cup of tea is checking out oil rigs, rubbing shoulders with chief executive ofcers or enjoying the landscape of the Rocky Mountains, road tripping across these shale plays opens your eyes to how busy 2015 will be.U.S. Rep. Kevin Cramer (R-ND) on the emerging Unmanned Aerial Systems (UAS) industryNorth Dakota, Alaska, Nevada, New York, Texas and Virginia were the states selected to research integrating UAS into the general population. U.S. Rep. Kevin Cramer sees the Bakken as a potential home for UAS activity, however, establishing the ground rules will take some time.“I think it will happen. North Dakota was picked [as a test site] for a number of reasons, not the Q & A with Jason Spiess: Innovationleast of which is the tremendous cooperation between all levels of government and the private sector,” Cramer said. “Of course the intellectual and academic assets that we have, the diversity of our geography and our climate certainly are reasons, but another big reason is we have such a sophisticated precision agriculture culture in North Dakota, and we have this energy sector where you know the monitoring, for example, of the pipelines is a very important safety component.”Cramer added there are additional factors to consider when discussing UAS and industry.“Today, manned aircrafts travel and y over our pipelines and infrastructure to make sure everything is working the way it is supposed to be working and to detect any problems early,” Cramer said. “The advantage of unmanned aircrafts or remote piloted vehicles is that they can stay in the air much longer, y much closer, record everything. It’s really tremendous technology when used right, and I think North Dakota is the perfect place to test it rst because we do things right.”Travis Jordan, President, MT Rig Mat, Charlo, Mont.“The 2009 recession left a glut of unemployed electricians in our area,” Jordan said. “Actually anything that dealt with building or construction was hit hard. Even the logging industry was hit pretty hard. I had to reinvent myself, my business, with keeping my faith and family values intact. I couldn’t ship a wired house, and I saw a need for the rig mats. We had a group of certied welders and electricians hungry for work, so we set out to build a quality product by dedicated and hard working professionals.”Since then, MT Rig Mat has grown their little business to a real viable asset to oil elds and the Charlo community. MT Rig Mat started out small by shipping mats to North Dakota and Montana, according to Jordan. Since then, the company has OILMAN COLUMN OILMAN COLUMNOilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com40 4140 41U.S. Rep. Kevin Cramer (R-ND) on the emerging Unmanned Aerial Systems (UAS) industry Travis Jordan, president, MT Rig Mat, Charlo, MTU.S. Rep. Kevin Cramer (R-ND) on the emerging Unmanned Aerial Systems (UAS) industry Lynn Helms, Director, North Dakota Department of MineralsMatt Rose, Executive Chairman, BNSFKaren Alderman Harbert, President and Chief Executive Ofcer of the U.S. Chamber of Commerce’s Institute for 21st Century Energy (Institute)

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com42 4342 43OILMAN COLUMN OILMAN COLUMNgrown to be able to ship all over the U.S. and even into Canada and Australia.During the early days, Jordan, like many, had to solve some unforeseen problems with the ever-changing energy industry.“In the beginning we saw our competitors’ mats breaking, and we saw some of our rig mats getting broken,” Jordan said. “We knew this was something bigger than a couple of tweaks. We knew we had to make it stronger and better, so we hired a structural engineering rm to get load ratings for everything we did. There has been a lot of talk about using CLT for mats lately. We had this engineered and found that our improved design is now 19 times stronger than using CLT, so we keep building our improved design. It is important to not just believe everything you hear!”Karen Alderman Harbert, President and Chief Executive Ofcer of the U.S. Chamber of Commerce’s Institute for 21st Century Energy (Institute)Harbert believes the innovators and entrepreneurs that are actively seeking new technical information and applying it to traditional applications are driving our country’s economic rebound.“There is no other industry in the nation today that is higher tech than the energy industry,” Harbert said. “ET is the new IT. You look at the amount of change and the pace of change and the scale of change of what the energy industry has been able to unlock and getting more out of everything. The rocks haven’t changed. They’ve been here for millions of years. Our technology advanced so quickly to get at things unbeknownst to us just a couple of years ago.”Lynn Helms, Director, North Dakota Department of Minerals“The Bakken changes everything,” Helms said. “It has changed your life and will continue to change your life. We know where the edges of the Bakken are. We’ve also completed what I call the ‘homesteading’ phase. In 2012, we had 218 rigs chasing leasehold all across the Bakken play trying to de-risk that leasehold. Those rigs would pick up and move 150 miles at the drop of a hat. It was completely random and chaotic in terms of all of our thinking. As we enter the harvest phase it is going to be much more like a combine moving up and down a eld mowing those heads of wheat down or those stocks of corn down as we process and harvest this crude oil.”Helms also had some words of advice for anyone looking at the Bakken in 2015. “The big message I have for operators or the people working in the oil patch in North Dakota is that you have to think out ve generations,” Helms said. “By the time we get back to 100,000 barrels a day, which is where we started all this, it will be your grandchildren’s grandchildren who will be coming together for annual meetings. So as you drive somewhere today, or deliver a barrel of oil to a pipeline or test a meter, you need to be thinking about your grandchildren’s grandchildren. And that doesn’t include any enhanced oil recovery. That includes the recovery of about 10 to 15 barrels out of every 100 from this massive resource that lies underneath our feet. It only encompasses a 10% to 15% recovery factor of those barrels of crude oil.”Matt Rose, Executive Chairman, BNSFBNSF has committed $5 billion dollars to the rail system throughout the United States. The level of investment from BNSF indicates the country’s distribution backbone will take on new logistical opportunities.“That’s the largest investment and record of anytime ever for any railroad in the United States and the free world,” Rose said. “In 2013, all rail units grew by 800,000. Our railroad alone accounted for half of that. That is really signicant.”Rose continued to contextualize.“That’s the 4 million ties we have to put in each year, the 350 miles of track we have to replace,” he said.Phil Fusacchia, GE Oil & Gas Program Manager of the Last Mile FuelingThe GE Last Mile Fueling solution is a fully integrated natural gas fueling system developed in a joint venture partnership with Ferus Natural Gas Fuels. Fusacchia leads the commercial development of natural gas fueling networks for high horsepower applications, particularly the upstream oil and gas, rail, mining and marine markets for the GE and Ferus joint venture.“We go out to different cities in the country, even throughout the world, and deploy different equipment, whether it is C&C machines or 3-D printers, just ways that enables backyard tinkerers and entrepreneurs get their hands on equipment they wouldn’t have readily available or access to,” Fusacchia said. “It releases the inner entrepreneur and inner innovator that allow ideas and concepts to come organically or locally to solve local problems. When you come into an area and you have local solutions to local problems, it really opens up minds and innovations.”Phil Fusacchia, GE Oil & Gas Program Manager of the Last Mile Fueling. Photo by GE Oil & GasMt Rig Mat started small, shipping mats to North Dakota and Montana Mt Rig Mat has grown to be able to ship all over the United States and even into Canada and AustraliaLast Mile Fueling solution is a fully-integrated natural gas fueling system developed in a joint venture partnership with Ferus Natural Gas Fuels. Photo by GE Oil & Gas

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com48 49ENVIRONMENTAL & SAFETYTECHNOLOGYTECHNOLOGYOilman Marketplace...........For advertising information call 800-562-2340 ex. 1, 8am-5pm CST OR EMAIL ADVERTISING@OILMANMAGAZINE.COMOilman Marketplace...........For advertising information call 800-562-2340 ex. 1, 8am-5pm CST OR EMAIL ADVERTISING@OILMANMAGAZINE.COM MARKETPLACE MARKETPLACEPIPELINE CLEANING/OIL REMEDIATIONPIPELINE CLEANING | FRACTURING | BIO-REMEDIATION 3190 Highway 30 W, Box # 8758Huntsville, TX 77340Ph: 936-439-4319Website: www.cleanenergychemicals.comEmail: info@cleanenergychemicals.comTwier: @CleanEnergyChemCEC 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 Systems2916 N. University Ave.Lafayee, LA 70507 Ph. (337) 521-3400 (800) 252-5522 (24/7)Website: www.SafetyMS.comfacebook.com/SafetyMStwier.com/SafetyMSAt Safety Management Systems, our main goal is protecng lives and changing cultures. We provide companies in the oil & gas industry with safety management and consulng services to promote and maintain an ethical workplace atmosphere that equally values health, safety, and environmental responsibility. A safe work environment is not only ethical, but essenal for a company’s success. Our Health, Safety, and Environmental (HSE) consultants and specialists are equipped and available to address your 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ce401 West Admiral DoyleNew Iberia, LA 70560Ph: 337-365-7847Oil StopHarvey Oce1208 Peters RoadHarvey, LA 70058Ph: 504-361-4321Ampol Norm RemediaonBayou Vista Oce575 Highway 182 Bayou Vista, LA 70380Ph: 985-395-2020www.ampol.netfacebook.com/AmericanPolluonControl24 Hour Emergency Response: (800) 482-6765American Polluon Control Corp. (AMPOL) is a full-service environmental remediaon company and contractor that specializes in inland, near-shore, and oshore emergency response and hazardous waste remediaon. Serving oil and gas companies, industrial companies and government agencies, AMPOL provides emergency and non-emergency toxic and hazardous materials containment, collecon and assistance with transport and disposal. Safety is top priority with AMPOL. Safety is planned into all of our acvies and is equal to the expectaons of our clients for quality and eciency. AMPOL has been recognized by the US Department of Labor and the Louisiana Workmen’s Compensaon Corporaon for its excellent safety record.ENVIRONMENTAL COMPLIANCE AND LEASE BROKERAGEEdmond, OK Oce: 3027 Willowood Rd.Edmond, OK 73034Phone: 405-340-5499Midland, TX Oce:4305 N. Gareld St. – Suite 229Midland, TX 79705Phone: 432-695-6020Web address: sco-jooilandgas.comSco-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 Specialists7701 Johnston StreetPO Box 60639Lafayee LA 70596Phone: 337.993.9377Fax: 337.216.9721Email: customerservice@TeamFSS.comwww.TeamFSS.comFire & 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 RoadMaurice, LA 70555Ph: (337) 893-9992www.WetTechEnergy.comfacebook.com/WetTechEnergyWet 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.TRANSPORTATION & LOGISTICSDupré Logiscs, LLC201 Energy ParkwayLafayee, LA 70508Sales/Markeng: 855-686-5478Corporate Informaon: 855-686-5478Website: www.DupreLogiscs.comEmail: forwardthinking@duprelogiscs.comyoutube.com/dupremediaOver 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. QTECAberdeen, Houston, Louisiana Ph: 855-364-5650 Email: info@qtec-global.com www.qtec-global.comEstablished 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.DRILLING & EQUIPMENTHaggard ID Wiper, Inc.Houston, TX281-330-6016Website: www.haggard-muddog.comEmail: muddogid@airmail.netOperators 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 LLCHighway 84 WestWinneld, LA 714834 Miles West of WinneldOce: (318) 628-3523Website: www.WinnRock.comWe 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 Long’s 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 SalesNew Orleans10459 AirlineSt. Rose, LA70087(I-130 Exit 2-Kenner)MAIN: 504-467-9630WATTS: 800-969-6225Lafayee1101 Doyle Melacon ExtBreaux Bridge, LA 70517(I-10 East Exit 109 South)MAIN: 337-442-1600WATTS: 877-237-04483G Manifold L.L.C.Elk City, Ok 73644Website: www.3gmanifold.comAllen YoungCell: 580.799.5479E-mail: Allen@3gmanifold.comJoe WhiteCell: 580.799.5475 E-mail: Joe@3gmanifold.comDean FitzgeraldCell: 580.243.8526 E-mail: skipperdean68@yahoo.com 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 Technologies1219 Crescent Ave. Lockport, LA 70374Contact Name: Jamie Guidry Ph. 985.242.5100Fax: 985.242.5150Email: sales@mst.us.comWebsite: hp://www.mst.us.comFacebook: hps://www.facebook.com/MidSouthTechnologiesTwier: hps://twier.com/MstUsYouTube: hps://www.youtube.com/channel/UCE6oeEN6Y-NksYCPnbWio-A 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 Expectaons”.OIL & GAS TAX CREDITS & INCENTIVESParadigm Partners1500 S. Dairy Ashford, Suite 240Houston, Texas 77077Website: www.ParadigmLP.comCraig LaGrappe, Sales DirectorPh. (281) 558-7100 x102Email: CLaGrappe@ParadigmLP.comMike McCorkle, Account ManagerPh. (281) 558-7100 x120Email: MMcCorkle@ParadigmLP.comParadigm 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.

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Oilman Magazine / January-February 2015 / OilmanMagazine.com Oilman Magazine / January-February 2015 / OilmanMagazine.com50 51Texas Roughnecks Freeze FasterBy Steve BurnettA couple of things came into play for this cartoon. Somebody from the oilelds of North Dakota suggested I do some weather-related cartoons. I thought this was a good idea, although I had trouble getting a handle on it. I felt like the comment was valid and that perhaps I had slighted the oilelds in the extreme colder climates, unintentionally I assure you. It is a little difcult to write and cartoon about something that you have no experience with. On a few occasions, I worked with my dad on the old Citco leases at night to unfreeze water-ood lines during 11 degree weather. I also went to New Mexico and got caught in a driving snow storm laying a ow line and catching up on other chores at the Apace #1 while working part-time weekends when I was in high school. Both of these experiences were a major inuence on my decision to pursue my oileld career in the Gulf of Mexico. However, I did not feel they gave me enough insight into cartooning the Bakken.Recently, I heard a speaker from CCI Inc. with extensive experience in the oilelds of North Dakota. He talked about some of the challenges and mentioned that the wolves were starting to become a problem at night. That got my attention, although my only experience with anything like that is the coyotes of West Texas. Coyotes in West Texas are not exactly intimidating looking creatures. They are scrawny, underfeed, and about the size of an Australian Shepherd dog. Mostly scavengers, they are lucky if they can take down a winded jackrabbit. They keep the road kill and dead livestock cleaned up so well that there are no buzzards in West Texas. So my original cartoon was going to be about the Wolves of the North Dakota oileld. While researching stories about the oilelds of North Dakota, I came across an interview with an oileld man of the Dakotas, and he talked about keeping the employees warm in extreme cold weather. He said “some men freeze faster than others.” I found that comment amusing. He also told the story of some hands driving up from Texas. They never even made it to the rig before they quit, he said. Apparently, their truck got stuck in the snow. After digging the truck out, they decided they had enough. They quit and went back to Texas without even making it to the rig. I thought to myself, they must have frozen faster than the locals. Bingo! This cartoon was born.May your boots be dry, your coffee fresh, and your gloves new. Kybree. Steve Burnettwww.crudeoilcalendars.comIN CLOSINGMARCH 17-19, 2015MARRIOTT HOUSTON WESTCHASE HOTELHOUSTON, TEXAS, USAGO.ASME.ORG/FRACTURINGASME’s 2015 Hydraulic Fracturing Conference draws long-sought focus to the central role of mechanical engineering in shale development and hydraulic fracturing. This dynamic three-day event will bring together leading industry manufacturers, engineers and supply chain executives to discuss highlights, trends, and new technologies and solutions related to ‘above-ground’ stimulation equipment and the inherent mechanical engineering involved. Our 2015 Program is craed with Thought Leadership from our Executive Advisory Commiee:BPASMEBaker Hughes Pumping ServicesBaker Hughes, Inc.BP GWO EngineeringDraper LaboratoryGE Oil & Gas Drilling and SurfaceGE Oil and Gas Marathon OilNaborsSchlumbergerShell Exploration and Production CompanySouthwestern EnergyUS Well Services LLCProgram AreasDAY 1 Regulatory, Drilling, and Well ConstructionDAY 2 Fracturing & Stimulation, Pumping, Chemistry & LogisticsDAY 3 Production Operations, Artificial Lift, Workover, and Water ManagementAbout ASME For more than 100 years, ASME has successfully enhanced performance and safety for the energy and piping industries worldwide through its renowned codes and standards, conformity-assessment programs, training courses, journals, and conferences – including the Offshore Technology Conference (OTC), the International Conference on Ocean, Offshore and Arctic Engineering (OMAE), Turbine Technical Conference and Exposition (TURBOEXPO), and the International Pipeline Conference (IPC).ASMEHYDRAULIC2015FRACTURINGHEAR INSIGHTS FROM INDUSTRY LEADERS WHO WILL HELP YOU TRANSFORM YOUR BUSINESS!THIS IS THE ONE EVENT IN NORTH AMERICA THAT BRINGS ALL LINKS OF THE SUPPLY CHAIN TOGETHER. CAN YOU AFFORD TO MISS OUT?Serving Unconventional Oil & Gas: Equipment and TechnologiesFOR FULL SESSION DESCRIPTIONS AND SPEAKER LIST, VISIT GO.ASME.ORG/FRACTURING GO.ASME.ORG/FRACTURING The American Society of Mechanical Engineers (ASME)Philip FusacchiaProgram ManagerGE Oil & GasJoe AndersWell Integrity AdvisorBPBill LaneVice President of Emerging TechnologiesWeatherford Artiﬁcial Lift SystemsJeffrey MeisenhelderVice President, Unconventional ResourcesSchlumbergerPhilip FusacchiaProgram Manager, GE Oil & GasSHALE DEVELOPMENT IS MECHANICAL$200 EARLY BIRD DISCOUNT ENDS JAN. 31, 2015 – REGISTER ONLINE TODAY!

Oilman Magazine Jan/Feb 2015

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