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THE MAGAZINE FOR LEADERS IN AMERICAN ENERGY
January / February 2018
OilmanMagazine.com
Cover Photo: Theerapong Jaikaew - www.123RF.com
Interview with Giles
Edward, CEO, M-Flow
p. 24
Louisiana Oil & Gas
Industry Overview
p. 8
Navigating Mineral Rights?
Don’t Be Scared by the Complexity
p. 22
Drilling Technology Knows
No Bounds
p. 13
MONDAY MORNINGS CAN BE UNPREDICTABLE.
YOUR WORKERS’ COMPENSATION COVERAGE SHOULDN’T BE.
Trusted financial stability and unparalleled customer experiences, brought to you by
Louisiana’s Highest Rated Workers’ Compensation Company.
LWCC17-05- Louisiana Oilman.indd 1 8/25/17 1:33 PM
IN THIS ISSUE
Feature
2018 Oil & Gas Market Outlook
By Samuel Cook - pages 20 and 21
In Every Issue
Letter from the Publisher – page 2
OILMAN Contributors – page 2
OILMAN Crossword Puzzle – page 3
OILMAN Online // Retweets // Social Stream – page 4
Downhole Data – page 4
Product Showcase – page 16
OILMAN Crossword Puzzle Answers – page 17
— OILMAN PRIDE —
Oklahoma City Oil Field, State Capital Building, OK – pages 5 & 6
— OILMAN COLUMNS —
Steve Burnett: Oilman Cartoon – page 3
Thomas G. Ciarlone, Jr.: Oil and Gas Law: 2017 Year in Review – page 7
Louisiana Oil & Gas Industry Overview – page 8
Paul Azores: New Accounting Standards May Bring Vehicles Leases on Your Balance Sheet – page 10
Mark A. Stansberry: Energy Efciency and Environmental Preservation – page 12
Eric R. Eissler: Drilling Technology Knows No Bounds – page 13
Clara Fuge: From Siloed Data to Integrated Capabilities – page 15
Tara Malhotra: South Asia Region Becomes Global LNG Hotspot – page 18
Josh Robbins: 3 Ways To Sell Your Oil & Gas Assets Quickly – page 19
Tim McNally: Navigating Mineral Rights? Don’t Be Scared by the Complexity – page 22
Sundeep Sanghavi: Savings Across The Board: How Anomaly Detection & Prediction
Improves Business Performance In Oil And Gas – page 23
Tim McNally: Interview with Giles Edward, CEO, M-Flow – page 24
Don Briggs: Changing Headlines – page 25
Brad McMillan: Oil Prices Collapse: Is the Energy Industry Going Back to the Future? – page 26
MarketsandMarkets, Inc.: Articial Intelligence: The Future of Oil & Gas – page 27
Jason Spiess: Gov. Burgum’s Ambitious Challenge to Bakken Producers and Investors – page 28
Oilman Magazine / January-February 2018 / OilmanMagazine.com
1
MONDAY MORNINGS CAN BE UNPREDICTABLE.
YOUR WORKERS’ COMPENSATION COVERAGE SHOULDN’T BE.
Trusted financial stability and unparalleled customer experiences, brought to you by
Louisiana’s Highest Rated Workers’ Compensation Company.
LWCC17-05- Louisiana Oilman.indd 1 8/25/17 1:33 PM
Don Briggs
Don Briggs is the President of the Louisiana
Oil and Gas Association. The Louisiana Oil
& Gas Association (known before 2006 as
LIOGA) was organized in 1992 to represent
the Independent and service sectors of
the oil and gas industry in Louisiana; this
representation includes exploration, production and oileld
services. Our primary goal is to provide our industry with a
working environment that will enhance the industry. LOGA
services its membership by creating incentives for Louisiana’s
oil & gas industry, warding off tax increases, changing existing
burdensome regulations, and educating the public and
government of the importance of the oil and gas industry in
the state of Louisiana.
Mark A. Stansberry
Mark A. Stansberry, Chairman of The GTD
Group, is an award-winning author, columnist,
lm producer, radio talk show host and 2009
Western Oklahoma Hall of Fame inductee.
He has been involved in the oil and gas
industry for over 39 years. He is currently
serving as Chairman of the Board of the Gaylord-Pickens
Museum/Oklahoma Hall of Fame, Vice Chairman of the
Board of Regents of the Regional University System of
Oklahoma, Board of Directors of OKC Port Authority,
Board of Governors of the Recording Academy/Grammys
Texas Chapter, Lifetime Trustee of Oklahoma Christian
University and Board Emeritus of the Oklahoma Governor’s
International Team. He has served on several private and
public corporate boards.
Jason Spiess
Jason Spiess is an award winning journalist,
talk show host, publisher and executive
producer. Spiess has worked in both the radio
and print industry for over 20 years. All but
three years of his professional experience,
Spiess was involved in the overall operations
of the business as a principal partner. Spiess is a North
Dakota native, Fargo North Alumni and graduate of North
Dakota State University. Spiess moved to the oil patch in 2012
living and operating a food truck in the parking lot of Macís
Hardware. In addition to running a food truck, Spiess hosted
a daily energy lifestyle radio show from the Rolling Stove food
truck. The show was one-of-a-kind in the Bakken oil elds
with diverse guest ranging from U.S. Senator Mike Enzi (WY)
to the traveling roadside merchant selling ags to the local
high school football coach talking about this week’s big game.
Joshua Robbins
At Beachwood Marketing Group, our mission
is to market oil and natural gas properties in the
most cost effective and efcient way. We strive
to provide excellent leadership and unparalleled
service for each of our clients. Josh has been
instrumental in dening Beachwood’s market
leading solutions and has overseen the company’s expediential
growth. Josh is also an accomplished writer on the acquisition
and divestment market and a speaker and presenter at
conferences. He continues to keep his focus on the strategic
direction of Beachwood Marketing Group and its expansion into
new markets.
Thomas G. Ciarlone, Jr.
Tom is a litigation partner in the Houston ofce
of Kane Russell Coleman Logan PC, where he
serves as the head of the rm’s energy practice
group. Tom is also the host of a weekly podcast
on legal news and developments in the oil-and-gas
industry, available at www.energylawroundup.com,
and a video series on effective legal writing, available at www.
theartofthebrief.com.
Steve Burnett
I was raised in a small West Texas town where
the school mascot is a roughneck. Growing up
with a roughneck as the town symbol, how could
I not spend most of my adult life working in
the petroleum industry? I started working in the
oilelds age 16. In Texas you had to be 17 with
a signed minors release from your parents, but my parents were
glad to keep me working. I had been working since my rst job
working on a commercial elephant garlic farm at age 12. By
the time I reached 16, I had enough work experience to prove
I knew how to hold my own on a work crew. Anybody whose
parents survived the great depression can attest to the fact that
their children learn the value of a solid work ethic.
Phil Graves
Phil Graves has spent nearly a decade working in
the oil and gas industry. He has served as Director
of Sales and Director of Digital Development for
a large national industry publication and has held
various management positions with a completions
company and was in charge of operations in the
Permian Basin and Eagle Ford shale. Phil now runs a marketing
and photography company focused on providing vivid images of
the industry at work in multifaceted disciplines and projects.
Looking back at the past twelve months, our industry has revealed fantastic gains in the U.S.
shale market. Overall drilling permits are up 63 percent in Texas and drilling rigs rose 88
percent, according to the Baker Hughes Rig Count. The Permian Basin eld in Texas continues
to be a major player, followed by the STACK and SCOOP elds in Oklahoma. Rig count in
Oklahoma and Louisiana increased 48 and 29 percent, respectively. The decline in exports and
the rise in crude demand resulted in reduced oil stockpiles, which in turn stabilized the market.
As a result, the price of WTI crude oil hovered around $50 a barrel for most of 2017 and
ended with just above the $60 mark.
However, while the market was stabilizing in 2017, many of the companies that directly support the oil and gas
industry were still experiencing the effects of the prior three-year downturn, many had to merge with competitors to
survive, some had to close, and several were still laying off employees to cut expenses. Experts also warn that if the
U.S. increases rig count due to higher prices, another price collapse could result by the end of this year.
OPEC also through curves in the market and many of us watched closely as the cartel reached deeper into propping
up oil. Russia along with several other non-OPEC producers agreed to cut oil exports by 1.8 million barrels per day,
which expires in March. Last November, the group agreed to extend the cuts until the end of 2018. Although, they all
signaled a possible early exit from the deal if the market overheats.
Recovering from the market downturn has brought advances in technology that will only improve as the industry
rebounds. At OILMAN we’re excited to see machine learning, blockchain and IoT take a role in improving the health
of the entire oil and gas sector, from engineering and services to exploration and production. We look forward to
what the industry will bring us this year and we’re eager to report on key advances in the technology and software our
industry relies on to thrive.
Happy New Year from the OILMAN Team!
MAGAZINE
JANUARY FEBRUARY 2018
PUBLISHER
Emmanuel Sullivan
MANAGING EDITOR
Samuel Cook
FEATURE WRITER
Eric Eissler
Tim McNally
GRAPHIC DESIGNER
Kim Fischer
CONTRIBUTORS
Dan Briggs
Steve Burnett
Thomas Ciarlone, Jr.
Phil Graves
Joshua Robbins
Story Sloane III
Jason Spiess
Mark Stansberry
SALES
OilmanAdvertising.com
Eric Freer
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2018 by Oilman Magazine, LLC, with all
rights restricted. Any reproduction or use of
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gathered from sources considered to be
reliable, but the accuracy of the information
cannot be guaranteed. Oilman Magazine
reserves the right to edit all contributed
articles. Editorial content does not
necessarily reflect the opinions of the
publisher. Any advice given in editorial
content or advertisements should be
considered information only.
CHANGE OF ADDRESS
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Oilman Magazine
P.O. Box 771872
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LETTER FROM THE PUBLISHER
CONTRIBUTORS — Biographies
Oilman Magazine / January-February 2018 / OilmanMagazine.com
2
Emmanuel Sullivan, Publisher, OILMAN Magazine
Oilman Magazine / January-February 2018 / OilmanMagazine.com
33
OILMAN CARTOON
1 Utica and ___
6 Happens every April/
May____
8 Holiday drink
9 _____Information
Administration
10 Inert gas symbol
11 Lady referred to
13 Appropriate
15 Win
17 Mark on the skin
18 Spanish article
21 Binary number
22 Possess
24 Sailor, abbr.
26 Rubberneck
27 Subsea _____
30 ____Q excellence, core
value for the oil industry
32 American ____ Institute
36 Governing body
38 Where deals happen ___
39 Geographic referenced
area in Oklahoma
Down
1 Operation &
Maintenance____
2 Mineral ____
3 Texas Alliance of ___
Producers
4 Stretch out
5 Indication
6 Above
7 Headquartered in San
Ramon, CA
12 Andarko Basin in
Oklahoma also known
as ___ play
14 Pea’s place
16 Short for Internet of
Things
19 Louisiana O&G
Association ___
20 Crane operator’s area
23 Lived
25 Oil ___ (OPEC member
perhaps)
Across
28 Dangerous weather condition
for the roads
29 Retains
31 Get really wet
32 Camera sweep
33 Over the ___
34 CEO’s deg., perhaps
35 Strange
37 Southern California county,
for short
See page 17 for answers.
OILMAN CROSSWORD PUZZLE
Oilman Magazine / January-February 2018 / OilmanMagazine.com
4
For The Week Ending December 29, 2017
DIGITAL DOWNHOLE DATA
Connect with OILMAN anytime at
OILMANMAGAZINE.com and on social media
SOCIAL STREAM
facebook.com/OilmanMagazine
RETWEETS
@OilmanMagazine
#OilmanNEWS
Stay updated between issues with weekly reports
delivered online at OilmanMagazine.com
California: 14
Last month: 14
Last year: 6
North Dakota: 46
Last month: 46
Last year: 33
Texas: 453
Last month: 450
Last year: 324
Louisiana: 62
Last month: 63
Last year: 48
Oklahoma: 120
Last month: 122
Last year: 86
U.S. Total: 929
Last month: 923
Last year: 658
OIL RIG COUNTS
*Source: Baker Hughes
Brent Crude: $64.61
Last month: $63.56
Last year: $53.93
WTI: $59.55
Last month: $57.96
Last year: $52.82
CRUDE OIL PRICES
*Source: U.S. Energy Information Association (EIA)
Per Barrel
California: 14,593,000
Last month: 14,296,000
Last year: 15,534,000
North Dakota: 36,082,000
Last month: 32,417,000
Last year: 32,114,000
Texas: 116,792,000
Last month: 106,831,000
Last year: 98,335,000
Louisiana: 3,928,000
Last month: 4,025,000
Last year: 4,762,000
Oklahoma: 15,235,000
Last month: 14,002,000
Last year: 12,798,000
U.S. Total: 298,732,000
Last month: 284,110,000
Last year: 272,520,000
CRUDE OIL PRODUCTION
*Source: U.S. Energy Information Association (EIA) – October 2017
Barrels Per Month
California: 17,103
Last month: 16,656
Last year: 16,891
North Dakota: 63,783
Last month: 57,936
Last year: 53,311
Texas: 694,012
Last month: 655,980
Last year: 668,817
Louisiana: 201,443
Last month: 189,205
Last year: 146,371
Oklahoma: 224,740
Last month: 211,243
Last year: 206,225
U.S. Total: 2,886,216
Last month: 2,755,634
Last year: 2,718,264
NATURAL GAS
MARKETED PRODUCTION
*Source: U.S. Energy Information Association (EIA) – October 2017
Million Cubic Feet
Per Month
1 OF 2 OKLAHOMA CITY OIL FIELD, STATE CAPITAL BUILDING, OK, 1920s
Photo courtesy Library of Congress
Pride
Oilman Magazine / January-February 2018 / OilmanMagazine.com
5
Oilman Magazine / January-February 2018 / OilmanMagazine.com
6
2 OF 2 OKLAHOMA CITY OIL FIELD, STATE CAPITAL BUILDING, OK, 1930s
Photo courtesy Oklahoma Historical Society
Pride
Oilman Magazine / January-February 2018 / OilmanMagazine.com
7
OILMAN COLUMN
At the end of the year, I like to take stock—in
summary form—of the leading decisions
impacting the energy industry. Historically,
this has been for my own personal reference,
or something I share inside our rm with my
partners. Since this crib sheet of sorts has been
well received by my colleagues, I gured there
might be broader interest in this annual “quick
reference” guide. So, without further ado (and
in no particular order), here is my short list of
cases from 2017 that should be on your radar
screen if you work in the oil and gas sector.
Denbury v. Texas Rice Land Partners
(available here: https://tinyurl.com/den-
burytexasrice). The Texas Supreme Court
concluded that a pipeline can qualify as a
common carrier for purposes of exercising
eminent domain powers if it shows that it
would serve the public interest by transport-
ing gas “for one or more customers who will
either retain ownership of their own gas or
sell it to parties other than the carrier.
Notably, the Court emphasized that a
pipeline company can make this evidentiary
showing after condemning private land and
after constructing a gas pipeline. In other
words, the required showing of a public
interest need not occur prior to the exercise
of eminent domain powers. This was a big
win for the industry.
Lightning Oil Co. v. Anadarko E&P
Onshore, LLC (available here: https://
tinyurl.com/lightningoil). According to this
watershed decision from the highest Court
in Texas, drilling through a mineral estate—
which is not under lease by the driller—to
access a reservoir beneath a bordering tract
does not constitute a form of trespass.
This settled a long-running debate about
how traditional rules of trespass (originally
formulated in the context of vertical wells)
would apply to newer, directional drilling
technologies.
Davis v. Mueller (available here: https://
tinyurl.com/davismueller). In this closely
watched case that threatened to invalidate
mineral leaseholds across the state, the Texas
Supreme Court addressed a challenge to a
mineral conveyance, as ambiguous, because
it had been made—lock, stock, and barrel—
on a county-wide basis (in other words, the
mineral deed provided for the transfer of all
the seller’s oil-and-gas interests in a specic
county). Mercifully, the Texas Supreme
Court reached the correct decision, and
came to the common-sense conclusion that
county-wide mineral deeds are valid and
enforceable. Leaving no room for doubt,
Chief Justice Hecht wrote that, on its face,
a county-wide conveyance “could not be
clearer.” He then added, simply enough, that
“all means all.
Wenske v. Ealy (available here: https://
tinyurl.com/wenskeealy). According to
the dissent in this case that deeply divided
the Texas Supreme Court, the ve-justice
majority ignored both “[o]ur decisions that
imbue words with ‘magic,’” and the fact
that “drafters rely on that talismanic power
to create certainty in their instruments.” In
a nutshell, the majority concluded that the
intent of the parties to mineral conveyances
must be ascertained on a case-by-case basis,
by parsing the instrument as a whole—
without assigning undue importance to
words and phrases of art. As a practical
matter, wrote Justice Boyd on behalf of the
dissent, the majority in Wenske jettisoned
“long-standing rules in the oil and gas eld,
thus potentially “alter[ing] the ownership
of minerals conveyed in deeds which rely
on the law established by this court and
followed by lower courts, commentators,
and especially lawyers advising their clients.”
Samson Exploration LLC v. T.S. Reed
Properties Inc. (available here: https://
tinyurl.com/samsonreed). The Texas
Supreme Court told a cautionary tale for
operators with this unanimous opinion,
which addressed the circumstance in which
a well is situated within not just one pooled
unit, but instead within two overlapping
units. The operator, Samson Exploration,
paid royalties from the well to interest
owners from one of the units, to the
exclusion of the other. The royalty owners
from the second unit who had gone unpaid
balked, arguing that—although Samson may
have struck a poor bargain by including a
single well in multiple units—a deal is a deal,
and so a sophisticated actor like Samson
must sleep in the bed it made. The Supreme
Court of Texas agreed, invoking the
language from a 1968 Fifth Circuit decision,
Howell v. Union Producing Company: “To
argue that we must enforce only reasonable
contracts or contracts which reasonable
men enter into, mistakes our function. We
can and do enforce unreasonable contracts
if they be clear. Unreasonable men make
reasonable contracts and reasonable men
may make unreasonable contracts.
Hardin-Simmons University v. Hunt
Cimarron LP (available here: https://
tinyurl.com/
hardinhunt). In this
decision out of the
Seventh Court of
Appeals in Amarillo,
several mineral
lessors maintained
that Hunt Cimarron
had failed to execute
a release setting
forth the acreage
and depths that were
no longer held by an
expired lease. The Seventh Court of Appeals
sided with the mineral owners. While some
operators casually treat acreage releases as
housekeeping matters, this lackadaisical
attitude can have serious consequences if
the release obligation is not approached
soberly. Indeed, mineral lessors may take the
position that an operator’s failure to timely
release acreage deprives it of the ability to
enter into new, lucrative leases with other oil
and gas companies. To inoculate against this
kind of exposure, operators would be wise
to give their full attention to lease provisions
that require them to put acreage releases in
place by a specic deadline.
Texas Outtters Limited v. Nicholson
(available here: https://tinyurl.com/
texasouttters). Here, the Court of Appeals
in San Antonio decided one of the rst
cases in some time to address the duties of
the party with the executive right to lease
minerals to non-executive mineral-interest
owners. Texas Outtters, the surface owner
and also the owner of the executive right,
operated a hunting business on the subject
property. To keep the surface estate pristine,
Texas Outtters refused to exercise the
executive right to lease, and, in response, the
minerals owners sued for breach of duciary
duty. The San Antonio Court of Appeals
held that this claim was meritorious because,
by declining to lease, Texas Outtters was
angling to get for itself “unfettered use of
the surface for its hunting operation,” and
“the ability to sell its land at a large prot
free of any oil and gas lease.
Tom is a litigation partner in the Houston
ofce of Kane Russell Coleman Logan PC,
where he serves as the head of the rm’s
energy practice group. Tom is also the host
of a weekly podcast on legal news and
developments in the oil-and-gas industry,
available at www.energylawroundup.com, and a
video series on effective legal writing, available
at www.theartofthebrief.com.
Oil and Gas Law: 2017 Year in Review
By Thomas G. Ciarlone, Jr.
Thomas G. Ciarlone, Jr.
Louisiana Oil & Gas
INDUSTRY OVERVIEW
TOP 5 PRODUCERS
Hillcorp Energy Co.
Texas Petroleum Investment Co
Denbury Onshore LLC
Range Louisiana LLC
Gulfport Energy Corporation
TOP 5 LARGEST NATURAL
GAS FIELDS BY ESTIMATED
RESERVES
TOP 5 CITIES FOR
ENERGY JOBS
TOP 5 OIL & GAS
SCHOOLS
PRODUCTION FIGURES
AVERAGE WEEKLY WAGE
• Oil and Gas Extraction $2,758
• Petroleum Products Manufacturing $2,371
• Chemical Manufacturing $2,027
• Pipeline Transportation $1,888
Total Employees
Oil & Gas
Industry
48,157
in 2016
1
1
1
3
5
2
4
1
2
2
2
3
3
3
4
4
4
5
5
5
$
Haynesville
Terryville
Elm Grove
Caspiana
Vernon
New Orleans Lafayette
Metairie Bossier City
Chalmette
University of Louisiana at Lafayette
Louisiana State University
Nicholls State University
South Central Louisiana Technical College
Bossier Parish Community College
• Crude Oil Rening Capacity: 3.2 million
barrels per day
• Crude Oil Reserves: 424 Million barrels
• Rotary Rigs in operation in 2016: 46
• Natural Gas Producing wells in 2016:
17,760 Wells
Based on population growth.
Source: LOGA
Source: EIA
Source: EIASource: Nola.com
Source: Universities.com
Source: Louisiana Workforce Commission Source: Louisiana Workforce Commission
Louisiana Oil & Gas
INDUSTRY OVERVIEW
Source: Universities.com
OILMAN COLUMN
Oilman Magazine / January-February 2018 / OilmanMagazine.com
10
Both the International Accounting Standards
Board (IASB) and the Financial Standards
Accounting Board (FASB) have recently
issued new accounting standards related
to lease assets. For public companies
following FASB standards, the effective date
for implementation is for the scal year
beginning on or after December 15, 2018.
For all other companies, the effective date of
the FASB standard will be for the scal year
beginning on or after December 15, 2019.
The IFRS standards for all companies are
required to be effective starting in January
1, 2019. For U.S. companies, a prior period
comparison is required, although this is not a
requirement for companies that follow IASB
standards. There are certain exemptions that
may preclude these assets from consolidating
onto your balance sheet.
These new accounting regulations will have
a signicant impact on companies that are
leasing or expect to lease their vehicle eet.
While it seems there is plenty of time to
implement this accounting change, the time
to start preparing is now.
The new standards change how lease assets
are accounted for and presented on the
balance sheet and should not impact the
decision in the “lease vs. purchase” debate.
Reason for the Change
Both the IASB and the FASB have stated
that the intent behind these revisions was
to improve the transparency related to
lease assets. In a statement released by the
IASB, it was estimated that the change in
lease accounting standard would result in an
increase of over $3.3 trillion in total assets on
the related balance sheet for companies that
follow either standard.
While more astute investors have always
adjusted the nancial statements when
analyzing the impact of leased assets on a
company’s nancial strength, these changes
provide for more consistent comparisons
across companies. As such, we do not expect
the investor’s assessment of the company’s
performance to change; this is especially true
for investors in the xed rate market.
Areas of Focus
When the standard becomes effective, an
asset called a “Right of Use Asset” will be
calculated and recorded on the company’s
balance sheet along with a liability referred
to as “Lease Liability.” To simplify, the Right
of Use Asset is the net present value of the
remaining lease payments. In order to do the
calculation, the company needs to make a
number of assumptions and these will need
to be disclosed in the nancial statement
footnotes. The Lease Liability at inception
will match the Right of Use Asset.
Full service lease products will make the
accounting more complicated due to the
presence of the services component in the
lease payment. New guidance will require that
the two components in the full service lease
payments are accounted for distinctly
This accounting change may result in
signicant investments of time and resources
to ensure that companies are ready to
implement the requirements under this
standard. Since the implementation time
frame is quickly approaching, especially
for U.S. public companies, now is the time
to start planning to ensure accounting
compliance.
During this process, it will be critical
for eet managers to work closely with
both their internal and external nance
and accounting groups for guidance and
interpretation to ensure a successful and
timely implementation. Among the key things
for your team to consider are:
Which standard applies to your company
(IASB or FASB).
Which data points are required for the
calculations under the applicable standard.
What is the information you currently
possess.
What are the investments required to
successfully
implement the
standard.
Leasing – An
Important
Alternative
Companies decide to
lease for a number
of different reasons,
all of which remain
viable under the new
accounting standards.
Given the right circumstances, leasing will
allow a company to improve cash ow with
the potential to reap additional benets.
Leasing can allow companies to meet their
eet needs with newer vehicles, which
results in additional cost savings related to
maintenance and fuel efciency.
As an example, NJ Transit recently decided to
begin leasing a percentage of its eet of over
1,000 vehicles, which consists of light duty
trucks, cars, and specialty railroad equipment.
Though public transit agencies traditionally
purchase these vehicles and use them beyond
their estimated life, NJ Transit was faced
with a dire need to replace their aging and
dilapidated assets. As this coincided with a
period of reduced budgetary funding, they
decided to pass on the traditional approach
and decided to lease approximately 100
vehicles. Their decision was rewarded with
a 10 percent reduction in maintenance costs
year-over-year.
Leasing, in all its forms, is expected to remain
a viable nancing strategy with signicant
benets for most companies. As the new
standards take effect, proper reporting,
compliance and other associated factors
need to be considered in the decision making
process.
Paul Azores is Vice President of Finance at
ARI in Mount Laurel, New Jersey, the world’s
largest family-owned eet management
company, managing nearly 1.5 million
vehicles in North America, the UK and
Europe. Visit www.arieet.com.
New Accounting Standards May Bring
Vehicles Leases on Your Balance Sheet
By Paul Azores
Paul Azores
April
4-5
2018
www.cleanwaterwaysevent.org
St. Louis, Missouri
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Rivers Response Conference
31506
Oilman Magazine / January-February 2018 / OilmanMagazine.com
12
OILMAN COLUMN
In 1992, I founded and chaired the rst
International Energy Policy Conference
(IEPC) now known as National Energy Talk
(NET). IEPC/NET is now in its twenty-fth
year. The theme then and now is “Striving
for Energy Efciency and Environmental
Preservation,” National Energy Talk provides
a means of open dialogue regarding energy
policies and issues.
The November 18-19, 2017 issue of the
Wall Street Journal
had an editorial entitled,
“Germany’s Green Energy Meltdown.” The
editorial begins “American climate-change
activists point to Europe, and especially
Germany, as the paragon of green energy
virtue…Berlin last month conceded it will
miss its 2020 carbon emissions-reduction goal,
having cut emissions by just under 30 percent
compared with 1990 instead of the 40 percent
that Mrs. Merkel promised.
The editorial went on to state, “Natural
gas would be cleaner and is easy to switch
on and off… natural gas accounts for only
9.4 percent of Germany’s electricity, down
from a little over 14 percent in 2010. Gas
accounts for some 30 percent of US electricity
generation…”
Natural gas, in my opinion, will be a strong
force in lling global energy needs in the
years to come for both power generation and
transportation. Natural gas burns more cleanly
than other fuels, can be piped into homes to
provide heating, cooking, and run appliances,
can be used as a fuel for vehicles, and is
relatively abundant, and clean-burning.
An article was written by Matt Ridley in 2013
entitled “How Fossil Fuels Have Greened the
Planet”.
The article stated, “Did you know that
the Earth is getting greener, quite literally?
Satellites are now conrming that the amount
of green vegetation on the planet has been
increasing for three decades.
This will be new to those accustomed
to alarming tales about deforestation,
overdevelopment and ecosystem destruction.”
The article stated, “The inescapable if
unfashionable conclusion is that the human
use of fossil fuels has been causing the
greening of the planet in three separate ways:
rst, by displacing rewood as a fuel; second
by warming the climate; and by raising carbon
dioxide levels, which raise plant growth rates.”
Natural gas is leading
the transition from
being a net importer
to a net exporter
primarily due to the
LNG efforts. Natural
gas is an energy answer
that is available today.
We should denitely
be putting it to use
even more. For years,
I have voiced my
belief that natural gas
reserves are critical to
a strong US economy
and extremely important to America’s
energy security. Natural Gas: “abundant and
clean” is important to our country’s energy
sustainability. Energy is the future of America
and America Needs America’s Energy!
National Energy Talk is a platform engaging a
national dialogue on energy issues, views and
solutions. We address the needs, plans and
issues that all types of energy face
today. Through discussion, we can create a
national energy vision. -- What do you think?
It is time for National Energy Talk.
www.nationalenergytalk.com
Energy Efficiency and
Environmental Preservation
By Mark A. Stansberry
Mark A. Stansberry
Oilman Magazine / January-February 2018 / OilmanMagazine.com
13
OILMAN COLUMN
Scientists and researchers are continually
on the forefront of new drilling technology
development, to allow companies to compete
in a tighter prot-margin market. Some are new
types of technology and others utilize existing
technologies but employ a novel technique
to their use. Below are some of the new
technologies and techniques that are currently
being used in the eld and some of which are
in development.
Zipper fracking
The main goal of zipper fracking is to alter
the stress eld in the rock at the vicinity of the
next fracturing stage to be placed. By altering
the stress eld, it allows for the creation of a
more extensive fracture network. A fracture
network is required for reservoir development.
Two wells are drilled side by side at the same
time and then a zipper fracture is carried out.
It will save time by fracking well 1 in stage one
and then fracture the rst stage of well 2.
While stimulation takes place on the rst stage
of well 2, there is simultaneous running of
wireline to plug and perf stage 2 on well 1.
Furthermore, another advantage is multiple
wells can be drilled from the same pad which
saves hundreds of thousands of dollars. The
rig does not need to be disassembled, moved to
another location and re-assembled. This drilling
technique essentially doubles the production
volume of a well.
On the topic of zipper drilling, Dr. Mukul
Sharma from the University of Texas at Austin
said, “I think what people are nding is if you
put wells closer and closer you tend to get
reasonably good production from inll wells.
According to the school’s website, “Sharma’s
group is also in the process of building a
downhole tool that is specically designed for
improving recovery in tight rocks. ‘This tool
will be of great interest to a lot of operators
in the Bakken and maybe the Eagle Ford - any
oil reservoir that is tight is a perfect t,’ said
Sharma.” Even with this new technique, a new
type of tool is in development to facilitate and
improve the process further.
Ultra-Deep offshore
The market and drillers continue to indicate
that the days of easy oil are gone, and the
focus has now shifted toward the exploration
of ultra-deep offshore resources, which are
found at depths of 1,500 meters and deeper.
According to the U.S. Energy Information
Administration in 2015, 9.3 million barrels of
oil per day were extracted from deep and ultra-
deep water. Drilling at such depths requires
enhanced drilling tools to withstand the heat
and the pressure. The two kinds of rigs that
are required for this kind of drilling are semi-
submersibles and drill ships, which work at
or beyond 3,000 meters, respectively. At these
depths, a oating rig is required, in order to
reach the seaoor. Another important factor
to consider is the pressure on the well casing
at such a great depth. Wells must be constantly
monitored to ensure their structural integrity.
Well casing monitoring tools and systems
Downhole tools and wireline services such as
Weatherford’s Secureview: Casing and Cement
Evaluation are new technologies that allow the
operator to maintain constant monitoring on
well casing integrity. Systems like these examine
inner casing, outer casing, cement strength and
bonds. Another way of monitoring well casing
could be through the use of “smart cement”
which is being engineered and developed by
the University of Houston professor of civil
and engineering, Cumaraswamy Vipulanandan.
Mixing cement with Nano sensors would
enable offshore operators to monitor the well
casing without having to send down any tools
at all. It’s sort of like your skin. When someone
touches your skin, you can feel it. You can feel
the pressure,” Dr. Vipulanandan said in an
interview. Operators could easily call up the
status of the cement structure with related
software and look for areas of weakness and
potential problems and x them before they
happen.
Electric impulse technology
Currently in a research and development stage
through cooperation between the Technical
University Dresden in Germany and several
industry players, electric impulse technology
(EIT) is something straight out of a science
ction book. The system is essentially two
electrodes that are immersed in a conductive
uid and placed up against the rock, emitting
high-voltage impulses to impinge and pulverize
it. The EIT system is delivered in much
the same way a conventional drill is used
and rigs do not require any modication or
supplementary equipment to operate the EIT
assembly.
Laboratory tests have shown that the EIT can
operate under pressure of up to 500 bar and
can cut through rock at a rate between 0.5
and 1 m/h. Rates can be increased if there is
a proper debris removal system in place. The
system is designed to cut a borehole with a
diameter of 12 ¼ inches under pressures up to
1000 bar and temperatures up to 200 Celsius.
To its advantage, the lifetime of the system
is 350 hours and therein lies the savings by
reducing non-operational time between tool
changes up to 7 times the normal drill bit.
While this technology was originally intended
for boreholes with geothermic properties, it
can also be modied for use in hydrocarbon
excavation.
R&D continues to grow
Research dollars continue to pour into labs
and universities on the quest for better
extraction technology in today’s low-price and
hard-to-get oil. Many universities in Texas are
pioneering the new technologies for the oil and
gas industry. Investors and oil companies are
doubling down to ensure they can get to the
very last drop of oil.
Drilling Technology Knows No Bounds
By Eric R. Eissler
Photo Credit: Kanok Sulaiman - www.123RF.com
www.beachwoodmarketing.com
Beachwood navigates teams
to find deals that no one else can.
2828 NW 57th Street, Suite 309 l Oklahoma City l (405) 463-3214
We don’t market to test the waters, we hit the market to make waves.
Oilman Magazine / January-February 2018 / OilmanMagazine.com
15
OILMAN COLUMN
From production efciency to cost reduction,
business challenges in the upstream are still
driven by low oil prices. Sector leaders recognize
the chance to improve operational efciency
and increase production as a basis for future
prosperity and they know that, in this tough
energy economy, IT must drive business value
through innovative technology solutions. That’s
why they are investing in digital transformation
to automate workows, ll functionality gaps
and align processes.
Take the case of Ballard Petroleum, a
private exploration and production company
headquartered in Billings, Montana, operating
primarily in the Powder River and Williston
basins in the Rocky Mountains with a daily oil
production of 4,000 barrels across 112 wells.
A production solution had been in place at
Ballard since 2009, but when news broke
that the product was on its way to being
unsupported, Randy Zickuhr, Ballard’s IT
and GIS Manager, and Mike Perius, Director
of Engineering and Operations, decided to
put all the company’s production systems and
processes under a microscope.
The business needed to get rid of
organizational data silos, simplify the eld
data capture and validation process, give the
production engineers the ability to identify key
trends and put accurate and timely data at top
management’s ngertips. With those goals in
mind, Zickuhr and Perius began the search for
an integrated, end-to-end production solution
that would create efciencies, saving monthly
eld hours and ultimately reducing costs.
Too much reliance on manual processes
Under its legacy systems, Ballard’s data lived
in separate repositories and was being entered
and re-entered several times. Pumpers had to
capture production data in a very old-fashioned
way—using pen and paper. Once daily routes
were completed, they would then drive to a
Ballard eld ofce and use a desktop computer
to re-enter the information. Needless to say,
this approach created several challenges and
inefciencies.
Unless they brought the physical production-
history reports with them on their routes,
pumpers had no way of knowing if production
was trending down beyond the rate of natural
decline. This resulted in situations needing
immediate attention going unnoticed—and not
being dealt with.
Another problem was that data input into
the production solution didn’t ow well into
Ballard’s back-ofce systems, so information
had to be keyed in multiple times by multiple
people. “We had disparate systems and people
were re-entering data several times. Sometimes
the data didnt match up from application
to application,” Zickuhr says. Every time
somebody touches data, you’re increasing the
chances of introducing error to it. Reconciling
the inconsistent data involved exporting lots
of text les and trying to determine what
was correct and what wasnt—a rather time-
consuming and unreliable process. As a result,
some employees weren’t 100 percent condent
with the data being used and management
often did not receive information needed to
make important business decisions in a timely
fashion. Opportunities for creating efciencies
were being missed. It was time for change.
An integrated solution to put an
end to siloes
In 2013 Ballard opted for P2 Production
which has capabilities that would allow data
to ow seamlessly from team to team for eld
data capture and validation, production data
management, hydrocarbon allocation and
production optimization needs.
The eld data capture tool is used to quickly
and efciently collect and validate data at the
well sites. This was a game changer for the
pumpers as they no longer needed to collect the
data, go back to the ofce and re-enter it into
another system. They could now input the data
while they were in the eld and be done at the
end of the day. The technology, which is very
easy to use, also integrates Ballard’s manually
captured data with the data from its SCADA
systems, giving everyone a complete picture of
the company’s operations. When you have a ton
of data, having the tools to make sense of all of
it and track what’s taking place is crucial.
The software’s reporting and analytics tool is
used to analyze trends and get production-
robbing issues resolved quickly. There were
several blind spots before the adoption of
the new solution whereas now Ballard can
recognize when there is a dip in production
and what the cause is which makes it easier to
diagnose production problems. Critical data
about Ballard’s assets is presented in a very
intuitive format enabling access to the details
that help make better decisions.
From the eld, the data ows seamlessly into
the production data management system
within the solution to be allocated and stored.
From there, the data is channeled directly
into Ballard’s accounting system for revenue
purposes. All the silos are brought together into
a single place.
The most critical feature of the new system is
that it connects the eld to top management
who can now see daily volumes and consolidat-
ed volumes. Management is also reassured by
the fact that their teams are tracking production
properly, which makes them condent their de-
cisions are based on accurate data and therefore
most likely to be right.
In fact, everyone across the company is now
condent in the accuracy of their individual
work. That’s because they all trust the numbers
coming out of the eld and the “downstream”
processes being used. “In my estimation, the
pumpers are the keepers of the cash. If they
dont get it right in the eld, we cant deliver
accurate numbers to management, which means
they cant forecast and plan with condence,
Perius says. When everything is done right in
the eld, everything else that follows is also
done right.
Measurable, transparent results
The new solution brought Ballard many
tangible benets. Pumpers now spend more
time on resolving rather than hunting for
problems. In fact,
300 hours are saved every
month on eld activities.
This helps them nd
more time to focus on meeting production
targets.
Downtime reduction
is a second important
benet. Pumpers can now analyze current and
historical production numbers side-by-side and,
if something is amiss, they’re able to resolve
the issue quickly and return the asset to peak
performance.
Last but not least, the
data is now overall more
accurate and of higher quality
thanks to the
pumpers catching most of their own errors.
In today’s upstream sector, it’s all about
volumes. Companies need to match down
to the dollar what they sell with what
they produce. By leveraging digital oileld
technologies, IT can support the move to
operational intelligence. Ballard’s story teaches
us that better, more evolved technologies
and consistent data can provide the insights
you need to ride out low prices and emerge
stronger.
Clara Fuge is vice president of product
management at P2 Energy Solutions.
From Siloed Data to Integrated Capabilities
By Clara Fuge
Oilman Magazine / January-February 2018 / OilmanMagazine.com
16
PRODUCT SHOWCASE
FOX Thermal Instruments has launched a new
product - the Model FT4X Thermal Mass Flow
Meter - ideal for serving Oil & Gas and Industrial
applications.
The new FOX Model FT4X allows the user to enter
a Custom Gas Composition to optimize the ow
meters calibration and calculate Density and Gross
Heating Value.
The FT4X is a high-end ow meter, and it features 
a robust design. The notable new
feature of  the Model FT4X is the
Data Logger. The FT4X Data
Logger records ow rate, totals, and
other events and alarms. The advanced
features of  the Model FT4X Data
Logger include:
 40 daily totals
 Settable Contract Time denes
Contract Day
 Time/date stamped alarm & 
event logs; 7 year history
 Power off totalizer; power failure 
creates event log entry
 View Density and Gross Heating 
Value of  selected gas
The logs in the Model FT4X also display information
about the meter’s setting and functionality:
Gas or gas mix composition
• Flowmeter’s conguration settings
Calibration Validation historical test data
Logs of  events and alarms
The FT4X has a long list of  other advanced features:
2nd generation non- cantilevered DDC-Sensor™ - 
Advanced Direct Digitally Controlled sensor
Expanded Gas-SelectX® Menus – 3 onboard 
gas selection menus
CAL-V™ - In-situ Calibration Validation
RS485 Modbus RTU or HART - Communications 
options
Standard USB Port – Connect a PC
• FT4X View™ - Software for conguring, 
graphing, and logs
The 2nd generation DDC-Sensor™ eliminates the
sensor element vibration which can lead to metal
fatigue and failure. Its unique design provides a
technology platform for calculating accurate gas
correlations for the Gas-SelectX® feature.
The FT4X was designed to be used in Oil & Gas
and Industrial applications. It is ideal for monitoring
pure gases or even complex are gas compositions.
Gas-SelectX® provides an expanded selection of
gases from 3 menus:
Pure Gas Menu (11 common gases)
Mixed Gas Menu (11 common gases - mix in 
0.1% increments)
O&G Gas Menu (C1 – C9+, Nitrogen, and 
CO2 gases - mix in 0.1% increments)
The FT4X’s CAL-V™ feature allows users to
conrm that the meter is functioning properly and
accurately -- with just a simple push of  a button.
FT4X View™ software allows easy adjustments
to the meter conguration, evaluation of alarm
conditions, collection of  process data, and
measurement viewing from your PC or control
station. Moreover, this software can be used to
initiate CAL-V™ -- and it automatically logs the
results of  each CAL-V™ test. If any regulatory
submission is required, the software will generate
a certicate for easy recordkeeping.
Greg Smith, Sales Support & Customer Service Manager
FOX Thermal Instruments, Inc.
399 Reservation Road, Marina, CA 93933
Fox Thermal Instruments

Oilman Magazine / January-February 2018 / OilmanMagazine.com
17
1 Utica and ___
6 Happens every April/  
May____
8 Holiday drink
9 _____Information  
Administration
10 Inert gas symbol
11  Lady referred to
13  Appropriate
15  Win
17  Mark on the skin
18  Spanish article
21  Binary number
22 Possess
24 Sailor, abbr.
26 Rubberneck
27 Subsea _____
30 ____Q excellence, core  
 value for the oil industry
32 American ____ Institute
36 Governing body
38 Where deals happen ___
39 Geographic referenced  
 area in Oklahoma
Down
1  Operation &   
Maintenance____
2 Mineral ____
3  Texas Alliance of  ___  
Producers
4  Stretch out
5 Indication
6  Above
7  Headquartered in San  
 Ramon, CA
12  Andarko Basin in  
 Oklahoma also known
 as ___ play
14  Pea’s place
16 Short for Internet of  
Things
19  Louisiana O&G  
 Association ___
20 Crane operator’s area
Across
23 Lived
25 Oil ___ (OPEC member  
perhaps)
28 Dangerous weather 
 condition for the roads
29 Retains
31  Get really wet
32 Camera sweep
33 Over the ___
34 CEO’s deg., perhaps
35 Strange
37 Southern California 
 county, for short
Custom
Gas Mix
Ethane
Carbon
Dioxide
Methane
Hexanes
Hydrogen Argon
Butane
Pentanes
Propane
Heptanes
Nonanes+
Octanes
Nitrogen
Set and Log a Custom Gas Mix!
FT4X Advanced Features:
 Robust 2nd Generation DDC-
Sensor
 Data Logger with date/time 
stamp & 40 24-hour daily
totals
 Gas-SelectX® Gas Selection 
Menu
 Density and Gross Heating 
Value of Gases
 CAL-V Calibration 
Validation
 Up to 1000:1 Turndown
 FM/FMc, ATEX, IECEx, and 
CE Approvals
 Optional RS485 Modbus RTU
 Free FT4X View™ Software 
Fox’s Model FT4X Data Logger records 40 24-hour daily totals, logs events and alarms with a 7 year history, 
has settable Contract Time to define the contract day, and has a power off totalizer. The FT4X also has the
2nd Generation DDC-Sensor™ and advanced correlation algorithms to provide accurate, multi-gas-capable gas
flow measurement. Direct mass flow measurement, exceptional low-flow sensitivity, fast response, and low
maintenance requirements also distinguish the Fox Model FT4X.
TRY THE
FOX ONLINE
CONFIGURATOR
TOOL
Email at sales@foxthermalinstruments.com, call us at (831)
384-4300, or visit us online to find out how we can help you meet
your gas measurement and process efficiency needs. Use the online
product configurator to customize a meter for your application!
w w w
. F
o x
T
h e r m a l
I
n s T r u m e n T s
.
c o m
The FT4X Gas-SelectX® allows the user to choose pure gases or a custom gas
mix with the gases available in the Oil & Gas and Mixed Gas Menus. Set the gas
composition in 0.1% increments in the field and the meter’s Flow Calibration,
Density, and Gross Heating Value are automatically adjusted for the entered mix.
The new Data Logger will store the gas composition and other configuration data.
Model FT4X Flow Meter
OILMAN CROSSWORD PUZZLE - ANSWERS

Oilman Magazine / January-February 2018 / OilmanMagazine.com
17
1 Utica and ___
6 Happens every April/  
May____
8 Holiday drink
9 _____Information  
Administration
10 Inert gas symbol
11  Lady referred to
13  Appropriate
15  Win
17  Mark on the skin
18  Spanish article
21  Binary number
22 Possess
24 Sailor, abbr.
26 Rubberneck
27 Subsea _____
30 ____Q excellence, core  
 value for the oil industry
32 American ____ Institute
36 Governing body
38 Where deals happen ___
39 Geographic referenced  
 area in Oklahoma
Down
1  Operation &   
Maintenance____
2 Mineral ____
3  Texas Alliance of  ___  
Producers
4  Stretch out
5 Indication
6  Above
7  Headquartered in San  
 Ramon, CA
12  Andarko Basin in  
 Oklahoma also known
 as ___ play
14  Pea’s place
16 Short for Internet of  
Things
19  Louisiana O&G  
 Association ___
20 Crane operator’s area
Across
23 Lived
25 Oil ___ (OPEC member  
perhaps)
28 Dangerous weather 
 condition for the roads
29 Retains
31  Get really wet
32 Camera sweep
33 Over the ___
34 CEO’s deg., perhaps
35 Strange
37 Southern California 
 county, for short
Custom
Gas Mix
Ethane
Carbon
Dioxide
Methane
Hexanes
Hydrogen Argon
Butane
Pentanes
Propane
Heptanes
Nonanes+
Octanes
Nitrogen
Set and Log a Custom Gas Mix!
FT4X Advanced Features:
 Robust 2nd Generation DDC-
Sensor
 Data Logger with date/time 
stamp & 40 24-hour daily
totals
 Gas-SelectX® Gas Selection 
Menu
 Density and Gross Heating 
Value of Gases
 CAL-V Calibration 
Validation
 Up to 1000:1 Turndown
 FM/FMc, ATEX, IECEx, and 
CE Approvals
 Optional RS485 Modbus RTU
 Free FT4X View™ Software 
Fox’s Model FT4X Data Logger records 40 24-hour daily totals, logs events and alarms with a 7 year history, 
has settable Contract Time to define the contract day, and has a power off totalizer. The FT4X also has the
2nd Generation DDC-Sensor™ and advanced correlation algorithms to provide accurate, multi-gas-capable gas
flow measurement. Direct mass flow measurement, exceptional low-flow sensitivity, fast response, and low
maintenance requirements also distinguish the Fox Model FT4X.
TRY THE
FOX ONLINE
CONFIGURATOR
TOOL
Email at sales@foxthermalinstruments.com, call us at (831)
384-4300, or visit us online to find out how we can help you meet
your gas measurement and process efficiency needs. Use the online
product configurator to customize a meter for your application!
w w w
. F
o x
T
h e r m a l
I
n s T r u m e n T s
.
c o m
The FT4X Gas-SelectX® allows the user to choose pure gases or a custom gas
mix with the gases available in the Oil & Gas and Mixed Gas Menus. Set the gas
composition in 0.1% increments in the field and the meter’s Flow Calibration,
Density, and Gross Heating Value are automatically adjusted for the entered mix.
The new Data Logger will store the gas composition and other configuration data.
Model FT4X Flow Meter
OILMAN CROSSWORD PUZZLE - ANSWERS

Oilman Magazine / January-February 2018 / OilmanMagazine.com
18
OILMAN COLUMN
International market experts, analysts,
consultant agencies and specialists in the oil
and gas sector see more growth in the Asian
LNG market instead of Europe, especially
from non-OECD countries.
Analysts believe that several factors will
come into play to make Asian a strong
trading market in 2018. The easing crude
prices due to constant increasing U.S.
production, OPEC’s decision to cut
production, China’s policy to reduce imports
of petroleum products since 2014, and the
Russian strategy to acquire oil assets in other
countries could put Asia in a leading position
in oil and gas business over Europe.
Analysts are of the view that all of the
above factors created sufcient opportunity
for surplus crude oil and natural gas in
the global market. The stated factors have
changed the global LNG trade and as a
result, global LNG in 2016 witnessed rising
LNG demand offsetting growth in supplies.
As China has again decided to import
petroleum products, LNG importers
especially from the South Asia region are
in focus for traditional exporters (Middle
Eastern nations) and new exporters like the
United States and Australia. Market experts
say the industry (LNG) is expected to remain
oversupplied and a buyer’s market will
prevail through 2020.
During the last few years, South Asia region
has emerged as a hotspot for the LNG
business, with Pakistan and Bangladesh set
to join India as major consumers. More
importantly, global oversupply and low LNG
prices are set to continue helping the region
resolve their decades-long energy crisis.
Figures suggest that only India and Pakistan
in the South Asia region currently import
LNG, taking in a combined 25 million
tonnes, or 8 percent of global demand last
year.
It is equally important to note that since the
past about 20 years or so, China has been the
main driver of global oil demand growth.
With current trends of LNG trade, it is
believed that China is expected to become
the leading determinant in global natural gas
demand in the next 20 to 30 years.
The International Energy Agency (IEA)
estimates that roughly 90 percent of global
LNG demand growth will come from
emerging and frontier economies by 2022.
IEA sees global gas demand growing 1.6
percent annually until 2022, with China
making up 40 percent of this growth.
Earlier last month, Mr. Neil Beveridge, an
analyst from Sanford C. Bernstein & Co.
has estimated in a research note that China’s
gas consumption is expected to rise to 300
billion cubic meters (bcm) in 2020 from
206 BCM in 2016, and surge to 600 bcm by
2040.
Kerry-Anne Shanks, Head of Asia gas and
LNG, Wood Mackenzie, said that demand
for LNG in China is growing. Shanks
estimates that demand could reach 330 bcm
by 2020, up from 206 bcm in 2016.
The future of LNG trade on the Asian
continent seems bright as the Chinese
Government aims to increase the role of
natural gas within the country’s energy mix
from 6 percent in 2016 to 8-10 percent by
2020. Some other South Asian nations, such
as India, Pakistan, and Bangladesh have also
decided to increase the use of gas in their
countries from the current levels.
Realizing the potential in China’s gas
market, U.S. President Donald Trump has
visited Beijing earlier this month with a
large business delegation in tow, including a
sizeable contingent from the energy sector.
Another Asian giant, India, has also emerged
as the demand center for petroleum
products, especially for the natural gas.
Global oil major Royal Dutch Shell expects
that India may see at least six times growth
in its gas market by 2030 from the current
levels. Shell further adds that liqueed
natural gas (LNG) may be the largest
contributor to this growth in the gas market.
The latest prediction by Royal Dutch Shell
comes at a time when India is already trying
to increase the share of gas in the overall
energy mix to over 15 percent by 2030.
Interestingly, Shell’s prediction regarding the
rising trend in India’s gas market is not the
very rst. Before this prediction some other
oil giants have also expressed similar views
about the Indian gas market.
South Asia Region Becomes
Global LNG Hotspot
By Tara Malhotra
Photo Credit: Evgeny Gromov - www.123RF.com
Oilman Magazine / January-February 2018 / OilmanMagazine.com
19
OILMAN COLUMN
Josh Robbins
3 Ways To Sell Your Oil & Gas
Assets Quickly
By Josh Robbins
It’s a new year, and the oil and gas market is
hungry for assets. There are companies all
over the map looking for good quality assets,
but the transactions are not happening. We
have noticed a considerable amount of deal
ow in the past few months, as seller’s have
seen this period as a market shift in their
favor. So, with a number of deals available,
willing sellers, and active buyers, why are there
not more transactions?
Beachwood has seen a number of
transactions in 2017, and it’s because we’ve
seen companies that are looking to sell follow
a few crucial steps.
#1 Don’t put your deal to auction
If you are a buyer in this market, you are
running the exact same economic model as
every other company in the auction. So, if you
are a seller, you can expect 30 or so bids on
your assets that are only a few dollars from
one another. More than likely it is based on
PV10 (or close) and offers no value on the
upside you see for your asset. This should be
a last resort for operators and owners that are
looking to get PV10 on assets with positive
cash ow, and slightly higher than zero for
assets in the red.
#2 Make sure you give data
Companies that are looking to buy your
assets want to know what you know. If you
know that production is down because of a
land issue or a new pumper, that information
is very valuable to a buyer. Big data is
everywhere. Most of your production, decline
curves, reservoir information and estimated
expenses are available or easily accessible.
The upside storyline of each asset is what
will bring additional value to your sell price.
Buyers want to know as much information as
possible. Don’t view this as a waste of time,
understand that this data will (in many cases)
increase the chances of closing quickly.
#3 Know the market value
With that being said, you as a seller need to
know the market
value. We all want to
live in 2013. It was
fun. But the reality
is that asset is worth
half of what it was
in 2013, and the
decline curve has
continued to move
5 years down the
line. Knowing the
estimated value of
your assets gives you
great leverage toward
a quick close.
As I say in every article I publish, every deal
is different. Our strategy is generalized and
can be used as discussion points for your
A&D team, or your contract divestiture
organization. The team at Beachwood is
always available to discuss your company
specic questions, just give us a call: (405)
463-3214.
OILMAN COLUMN
Last June, BP Plc outlined in its 2017
Energy Outlook that global consumption of
energy is expected to increase by 30 percent
through 2035, driven primarily by growth in
emerging economies, especially China and
India.
Platts also sees growth in Indian gas
consumption, but maintains that Indian
LNG imports should rise by 10 percent
annually over the next few years, surpassing
30 million mt/year by 2020, versus 19
million mt/year in 2016.
Knowing the importance of natural gas
and low prices due to oversupply, India also
announced its intentions to soon build a
natural gas trading platform. Such an action
could lead to market-determined pricing of
gas for domestic and imported supplies.
The introduction of a natural gas trading
platform was recently announced by India’s
Oil Minister Dharmendra Pradhan, at India
Energy Forum by CERAWeek, organized in
New Delhi from October 8-10, 2017.
Today, the world average for gas
consumption is 24 percent, while in India
it is 6-7 percent. However, gas demand in
both of the largest Asian countries (China
and India) has potential for much higher
growth.
Having a population of over 1.3 billion
people with more than 82 percent of
its crude imported, India’s natural gas
consumption may see new records in the
next few years. Global gas exporting nations
like, U.S., Australia and Middle Eastern are
not in a position to ignore this potential
buyer.
Since domestic gas production is limited,
India is already the world’s fourth-largest
importer of LNG, behind Japan, South
Korea, and China. But trends suggest that
demand for imported LNG would surge
threefold in the coming years.
Due to the global LNG oversupply, Wood
Mackenzie forecasts Asia spot LNG prices
to drop to below $5/mmbtu by 2019
and remain in that range till 2022. Wood
Mackenzie feels that this will be an attractive
price range for Indian LNG buyers.
Other energy hungry nations in the South
Asia region are Pakistan and Bangladesh.
Platts published some analysis on these
countries.
According to gures provided by Platts,
Pakistans current gas consumption
oscillates between 6.2 Bcf/d in the summer
season and 6.8 Bcf/d in winter.
Zeeshan Afzal, head of research with Kara-
chi-based Insight Securities, was quoted by
Platts as saying that LNG was initially seen
as a short-term solution, but it looks like
Pakistan would keep importing 3-4 Bcf/d or
more in the long term, given rising domestic
demand and difculties to start exploration
activities in the more unstable areas.
Reports also suggest that Bangladesh’s
imports of LNG are expected to reach 5
million tonnes in 2020.
2018 Oil & Gas
Market Outlook
By Samuel Cook
FEATURE
Oilman Magazine / January-February 2018 / OilmanMagazine.com
20
Few industries are as accustomed to change as
oil and gas. From the rapid emergence of new
technologies to dramatic ups and downs in the
market, the uid nature of the industry always
offers up good discussion material as the year
comes to a close. Each year is also tug of war
between both good and bad that develops for
the industry. 2017 was a good example of that.
According to data from the World Bank, crude
oil prices in 2017 hovered between $50 - $55 a
barrel for most of the year. While prices are at
near-historic lows, they’ve also been extremely
stable. The steady development and expansion
of American shale continues to provide needed
predictability to the international market. This
is a welcome change, especially in the wake of
the precipitous price drops that occurred in
2008-2009, and later in 2014-2015, that saw
crude oil lose 60 percent of its value in less
than a decade.
Despite a bit of investor angst at low per-barrel
oil prices, companies have proven surprisingly
innovative at surviving and thriving under
current market conditions. All signs point to
the 2017 market as a good marker for this year,
overall.
Meanwhile, nature continues to be an
unpredictable and devastating force. Many in
Houston are still striving toward recovery after
the destruction wrought by Hurricane Harvey.
After several quiet years without any major
hurricanes making landfall in the continental
U.S., nature decided to wreak havoc on the lives
and livelihoods of people across the Gulf and
in the Caribbean.
In an August 31 article, Bloomberg noted
that when Katrina hit in 2005, the U.S. was
exporting 800,000 barrels of rened oil
products. Over a decade later, the international
markets felt a ripple effect after Harvey due to
the large increase in American oil exports—
now 6 million barrels per day of crude oil and
rened products.
If the impact of Harvey brought anything to
light this year, it was the increasing importance
of American oil on the international market.
And as much damage as Harvey left behind, it
also helped highlight the growing importance
of oil on the American and world economies.
With that in mind, looking toward 2018 is a
distinct reection on what 2017 brought us. As
the United States quickly steps into the role as
a key oil exporter instead of a net importer, the
2018 market outlook looks favorably on the
growth prospects in the oil and gas sector.
2018 Oil and Gas Market Outlook
In his 2017 Outlook on Oil and Gas, Deloitte
Vice Chairman John England stated that 2017’s
market would be seen as the “slow road back.
His prediction was spot on in many ways. As
England pointed out, the oil market reached
near-historic lows the years prior. However,
in 2016, U.S. oil companies learned to more
effectively tighten their belts. 2017’s stable, yet
higher oil prices marked the steady demand
for American oil, alongside the growing
importance of liqueed natural gas.
As 2017 comes to a close, the market prospects
for 2018 look increasingly bright. America is
now exporting more oil than ever, including
new and increasing shipments to growth
markets like India. With a better understanding
of how to stay protable even at lower per-
barrel oil prices, investors may be eyeing oil and
gas as a potentially lucrative venture in 2018.
Industry Leader Perspective:
Sid Miramontes, President of Miramontes
Capital:
On December 13, a bipartisan agreement was
set to lower the corporate tax rate to 21 percent
beginning in 2018. This dramatic reduction
Photo Credit: bizoon - www.123RF.com
FEATURE
Photo Credit: bizoon - www.123RF.com
is intended to benet industry workers and
investors while making the oil and gas industry
more competitive in global markets.
President Trump has historically shared fossil-
fuel friendly views and the plan which the House
passed initially on December 19 expands the
ability of businesses from shale drillers to solar
panel manufacturers to write off equipment
expenses. This continuation of tax incentives
preserves investment in the energy sector as a
whole, including renewable energy.
The primary objective is to simplify the tax code
by getting rid of most deductions. Through
decades of legislature intended to reward
individual and corporate investment, the tax code
has become a complicated web of loopholes and
exemptions navigated through complex nancial
maneuvering.
So far, the tax plans preserve the use of last-in-
rst-out (LIFO) accounting rules. This allows
crude stockpiles to be valued at current market
prices rather than original purchase costs. Also
preserved are intangible drilling costs deductions
and a taxable income reduction to reect the
depreciation of reserves.
While the details of the legislation are by no
means secure, the intended net effect will
hopefully translate to nancial benet to
hardworking Americans, more jobs and a strong,
independent economy in 2018.
Miramontes Capital provides concierge advisory
services and nancial guidance to individuals
making the transition into retirement. Clients
receive personalized investment strategy taking
into account each client’s unique values and
objectives.
Sid has been featured in Forbes Magazine, which
included him as a California Financial Leader,
and named three times to Barron’s Top Financial
Advisors.
Exploration and Production
The U.S. Energy Information Administration
regularly publishes updates on the changes
in the U.S. oil and gas industry. In comparing
December 2016 to December 2017, key changes
in exploration and production have emerged.
The Permian and Bakken regions continue to
see steady growth in new wells and increasing
production numbers. New wells and large gas
outputs are also popping up in the Appalachian
oil elds, such as the Marcellus and Utica shale
plays.
Meanwhile, legacy oil and gas wells continued
to the decline in production rst seen in 2014.
Interestingly, new oil well production in several
key regions was weak overall in 2017, despite
a sharp rise in the well count. New gas well
production also attened or fell in some key
regions as well, even as gas rig counts grew in
many places.
For new oil rigs, the Bakken, Niobrara and Eagle
Ford regions proved the strongest, posting gains
by December that continued strong growth from
2016. On the new gas rig front, Haynesville and
Appalachia proved to be extremely valuable
to U.S. production numbers. Additionally, as
legacy oil and gas wells saw notable decreases in
production output, Eagle Ford and Haynesville
continued to show stable output and even
growth by the end of the year.
While 2018 will likely see more rigs added
across oil and gas, a year-over-year doubling
of numbers may not be as likely. Legacy wells
may continue to fall in production output in
most regions as well as companies pour more
resources into new, more technologically
advanced and efcient rigs.
Natural gas, in particular, is set to be a leader
in the coming year and beyond. As Mark A.
Stansberry states in his OILMAN Magazine
article this month, “Natural gas...will be a
strong force in lling global energy needs in
the years to come for both power generation
and transportation.” The signs of a strong
natural gas market are with us now. According
to EIA data, the supply of natural gas rose
year-over-year from 2016 to 2017. Natural gas
production rose by about 1 billion cubic feet
per day for both Marketed Production and Dry
Gas Production, respectively. EIA projections
suggest both types of natural gas production will
rise by about 6 billion cubic feet per day in 2018.
Technology in Oil and Gas
We’ve seen a lot of technological changes come
to the oil industry just in the past ten years. As
companies have been forced to tighten their
belts as a result of lower per-barrel oil prices,
new drilling and production methods emerged to
help reduce costs. Drilling innovations in shale,
in particular, have happened at a furious pace
as companies learn to produce more with fewer
resources—human resources included.
Still, the future of oil and gas extends beyond
just physical tech, but digital trends. Big data is
already starting to take over the industry, as more
and more companies realize the way in which
data collection, analysis and application can bring
unprecedented clarity to almost every aspect of
the industry. From exploration to downstream
operations, every part of the industry can be
upended in unique ways with the knowledge
imparted by big data.
Combined with the innovative connections
between big data and the “Internet of Things”
or IoT, connecting all of those massive data
points together through actionable devices and
services.
A June 2017 article from CIO, titled “How
big data is disrupting the oil and gas industry,”
highlights exactly what everyone in the industry
has been thinking for some time. “Big data is
changing everything. The oil and gas industry is
nally catching up,” they write.
Indeed, it is. Oil and gas is often slow to adopt
new technology, preferring often to wait until
something has been thoroughly proven before
investing. And in today’s market, investment
dollars are often far tighter than in the past,
making any new venture worth vetting rst.
Still, big data stands to change everything. From
helping to decrease accidents in the eld to
improving yields and increasing revenues, the
more data companies collect and analyze using
new analysis tools, the better. 2018 is likely to be
a noticeable break-out year for oil and gas and its
burgeoning love affair with 21st-century tech.
Industry Leader Perspective:
David Bateman, Co-CEO of SitePro®:
“[The Internet of Things] in the oil and gas
business is revolutionizing the way things are
done from a eld operations and production
perspective. It is driving efciency and reducing
costs from non-value added activities by giving
users information to make better decisions in
real time.
Magne Halvorsen, Global Industry Director
for Oil & Gas at IFS:
With governments around the world increasingly
focused on restricting pollution, 2018 will see a
continued rise in demand for ways to minimize
CO2 and NOx emissions as well as to accurately
document them for compliance purposes. Thus,
we are likely to see a move away from diesel-
powered plants to the use of alternative energy
sources, such as tidal, to reduce emissions.
With each rig producing as much CO2 annually
as 5,000 cars, there is a heavy price to pay -
nancially and environmentally.
Advanced compliance and risk solutions will
become an essential requirement to automate
the monitoring and reporting of emissions,
replacing inefcient manual processes. While
remote facilities have historically been difcult to
connect to the internet, satellite communications
are enabling a new wave of cloud-powered
systems to support these efforts.
IFS develops and delivers enterprise software for
customers around the world who manufacture
and distribute goods, maintain assets, and
manage service-focused operations.
2018 and Beyond
There’s far more anticipated in 2018 than
covered here, of course. With oil hitting a 2 ½
year high of $60/barrel .just as 2017 closed out,
the prospect of a newly energized oil market are
strong. Additionally, the opening of ANWAR
(an historic provision couched into the tax
overhaul) offers interesting prospects for well
beyond 2018.
Oilman Magazine / January-February 2018 / OilmanMagazine.com
21
Oilman Magazine / January-February 2018 / OilmanMagazine.com
22
OILMAN COLUMN
The complex legal nature of negotiating
a mineral rights lease agreement can be
intimidating to the landowner as well as smaller
oil and gas companies who perhaps cannot
afford the legal cavalry necessary to hash out
a benecial deal. Misunderstanding the terms
of a deal, or failing to research the rules and
laws that apply to each situation, can lead to an
unsatisfactory outcome and a substantial loss in
earnings potential.
A misunderstanding of the certain rights which
accompany the ownership of land or minerals
is one particular point of perplexity which can
lead to an unfortunate outcome if carelessly
navigated. As the Louisiana Oil and Gas
Association (LOGA) notes, “Owning land does
not automatically mean you own the mineral
rights to a property. If your current deed does
not specically discuss minerals, you may need
to contact a professional in title research.
Each state also has its own unique laws and
rules which can further complicate matters.
For instance, “In Louisiana, mineral rights can
only be reserved (held by the seller of surface
property) for ten years, either from the date of
sale or from the date of the last exploration
activity or production of minerals from the
land. If there is no mineral development on the
property in that time period, the mineral rights
then automatically transfer to the buyer.”
Mineral rights are certainly not to be confused
with surface rights, which deal with the usage
and ownership of land above ground. Conicts
arising between the varying interests of mineral
and surface rights owners have produced a
number of legal cases which have yielded
important precedents regarding the issue.
A paper titled Minerals, Surface Rights, and
Royalty Payments from the Texas A&M
University (TAMU) Real Estate Center
examined some of the more inuential cases
which set long-standing precedents for mineral
and surface rights. As the paper notes, “One of
the earliest and most signicant cases decided
by the Texas Supreme Court held that the
mineral estate is dominant over the surface
estate. The grant of the mineral lease gives
the mineral lessee the implied right to use as
much of the surface as is reasonably necessary
for the exploration and development of the
minerals.
Furthermore, when the lessee is deciding how
much or what region of surface land needs
to be used for exploration
purposes, “The surface
owner’s consent is not
required for this right to be
exercised. The mineral lessee is
liable for surface damages only
in limited situations.” In other
words, mineral rights will
always trump surface rights
in most situations, giving a
considerable advantage to the
holder of the mineral rights.
It is imperative that both the
seller and buyer in a mineral
rights agreement understand the terms of their
specic agreement and how it relates to the
state and national laws which apply to general
mineral rights agreements.
Another important precedent established by
Texas courts posited the idea that an oil and
gas lease gives the mineral lessee the exclusive
right to initiate and complete various tests
to ascertain the location of oil and gas on
the premises. However, “Because an oil and
gas lease is silent concerning how, when, and
under what circumstances the tests may be
undertaken, the mineral owner may wish to
address these issues when negotiating an oil
and gas lease.
These issues should be addressed when a
company initially approaches a mineral owner
with a desire to conduct exploratory tests for
minerals. The mineral owner has considerable
power at the beginning of the negotiation
process, and, based on the terms set forth
in a lease or purchase agreement, can decide
whether or not to give access to companies
for the purpose of exploring the property for
mineral resources.
“Permission from the mineral owner may be
granted in one of two forms. The oil company
may acquire an oil and gas lease that, among
other things, grants to the lessee the exclusive
right to explore. Or, the oil company may
acquire permission only to conduct geophysical
tests. If the tests prove positive, an oil and gas
lease may be sought,” the TAMU paper notes.
Another front which warrants discussion is the
differences between leasing and selling one’s
mineral rights. Mineral Rights Coach notes that
there is a very important distinction between
selling and leasing one’s mineral rights. Selling
offers the option to receive a large upfront
payment regardless of whether any valuable
minerals are discovered or not. However, this
decision could mean sacricing the option to
yield a consistent income from future royalty or
lease payments, which might eventually surpass
the amount of initial funds received from an
upfront sale.
On the other hand, choosing to agree to a deal
with royalty payments also has its own risks,
as there is no guarantee that oil and gas will be
discovered within the region concerned in the
mineral lease agreement. Of course, no one
can be sure if there are minerals sitting beneath
the surface before tests are conducted, so an
individual must base this decision on their
unique situation and needs.
A company should also consider these factors,
as offering to pay a lump sum up front does
not guarantee any sort of return on investment
if the land does not produce any valuable
minerals. However, it should be kept in mind
that if minerals are found, the royalty check
that will be going to the mineral owner will
consistently be taking a cut out of the potential
prots that could be derived from the drilling
operations.
Navigating the terrain of a mineral rights lease
or purchase agreement can be overwhelming
to companies or individuals who may lack
the necessary experience to determine what
is considered a fair deal. The costs incurred
upfront in order to avoid a future legal issue
may seem burdensome at rst. However,
seeking out the proper legal representation
can prevent signicant nancial headaches in
the future, and it will usually prove to be well
worth the cost if a reliable, trustworthy legal
resource is found.
Navigating Mineral Rights?
Don’t Be Scared by the Complexity
By Tim McNally
Photo Credit: bacho12345 - www.123RF.com
Oilman Magazine / January-February 2018 / OilmanMagazine.com
23
OILMAN COLUMN
Leading oil and gas companies haven’t
exactly been quick to bring their maintenance
systems up to date. And with that comes huge
risks to the environment, workers, and an
organization’s nancial state.
The 2010 Deepwater Horizon oil spill, for
example, killed 11 platform workers and was
named ‘the worst U.S. environmental disaster.’
But even if organizations do sidestep calamity,
outages and system failures can cause the worst
performers to lose out on $88 million annually,
according to GE company Baker Hughes.
That’s all while having to deal with complex
equipment infrastructure, difculty in accessing
reserves, and swinging oil prices.
Fortunately, anomaly detection for predictive
maintenance technology is gaining steam.
The sensor technology—paired with Articial
Intelligence (AI) and machine learning—has
made offshore rigs much easier to monitor. It
can predict downtime even before it occurs.
Yes, just like foreseeing the future. Here’s
why oil and gas companies should invest in
predictive maintenance
The AI industry is advancing—and fast
There’s no doubt that computers are smarter
than ever before. But did you know that
computers can ‘learn’ without being given any
instruction? In what’s called reinforcement
learning, machines can associate an outcome
with the steps that lead up to it, and know
whether the result will be positive or negative.
Simply put, the AI industry is advancing
beyond belief.
Undoubtedly, these advancements in machine
learning will push forward the predictive
maintenance market, which is already expected
to be worth $4.9 billion by 2021. So, while
many companies might feel AI is too big of an
investment at this stage in the game—especially
since for the past three years, oil and gas prices
havent exactly been stable—it’s actually quite
the opposite. With more than 1,700 renery
shut downs between 2009-2012 (1.16 a day),
not leveraging the right technology now puts
oil and gas players at a disadvantage now, but
also down the road.
It’s not like companies haven’t tried to
implement predictive maintenance. But while
data is being collected from large pipelines
or gas-gathering platforms, the insights
arent being used for good. Oftentimes, the
data is siloed into legacy systems which are
difcult for computers to process. Despite
many companies’ efforts to leverage sensor
technology, many times this powerful data is
going to waste.
On the other hand, predictive maintenance can
give oil and gas companies access to hoards
of data with the power to alert for any faults
that may happen in the future—thus enabling
companies to avoid costly downtime or
environmental disasters.
Boosting revenue, lowering maintenance
costs
Financially speaking, unplanned downtime in
the oil and gas industry is incredibly wasteful.
In fact, according to a report published on
GE, offshore operators lose out on $49 million
to $88 million in potential prots each year.
However, for those that engage in a data-
driven approach to maintenance, it’s an entirely
different story. These companies experience
36 percent less downtime, making them $17
million every year as a result.
In adopting a proactive approach to
maintenance, data-driven oil and gas companies
can improve efciency, increase production by
2-5 percent, and reduce their overall costs by
a whopping 10 percent, according to The Oil
and Gas Technology Centre.
Big player Shell uses what it calls Smart
Fields technology to monitor its oil and gas
wells. Engineers aboveground have complete
visibility into what might impact operational
performance —pressure may be low or there
could be a leak—and will take the appropriate
action to make sure downtime doesn’t occur.
Shell says that through this, they’ve recovered
10 percent more oil, and 5 percent more gas
from the eld.
Case study
Let’s now look at a DataRPM case study of
a large oil production company based in the
Middle East. The company was struggling with
the activity of its Electrical Submersible Pumps
(ESPs); these are an important component
to oil eld infrastructure, and are responsible
for 60 percent of oil production worldwide.
However, ESPs are
pretty unpredictable.
When they fail,
companies lose out on
a great deal of cash.
This particular
company wanted to
use data collected from
ESPs to predict when
the pumps might fail,
thus increasing their
overall production
output and decreasing
downtime across the board. Using intelligent
cognitive analytics, 12 different sensors on
the pump were analyzed, including frequency,
current, voltage, temperature, and wellhead
pressure. And the goal? To identify what might
be wrong with the ESPs. Or in data science
speak, to
identify anomalies.
With three predictive maintenance modules
(for predicting how much oil is produced,
understanding the root cause of the
breakdowns, and optimizing the pump’s
performance to improve how much oil is
yielded) the Middle Eastern oil company
had its problems solved. With predictive
maintenance technology, it is now empowered
to nd failure points, analyze them, and predict
when a breakdown might happen again. The
same solution has been deployed to more than
1000 oil elds worldwide, which collectively,
according to the company, have seen a 25
percent spike in oil yield.
With gas and oil prices low, the industry
is headed through a bit of a rough patch;
every company is feeling the bite. However,
this doesnt mean oil and gas organizations
shouldnt take a forward-thinking approach.
It’s time to jump on the predictive maintenance
bandwagon. With proven cost savings and
more security for the environment and
workers, there’s no reason oil and gas players
shouldnt be leveraging data today.
Sundeep Sanghavi is a Cognitive Computing
veteran and Industrial IoT pioneer based in
Washington DC. He is CEO and co-founder
of DataRPM, a Progress company. They were
acquired for $30M by the NASDAQ-listed
software giant in March 2017.
Savings Across The Board: How Anomaly
Detection & Prediction Improves Business
Performance In Oil And Gas
By Sundeep Sanghavi
Sundeep Sanghavi
Oilman Magazine / January-February 2018 / OilmanMagazine.com
24
OILMAN COLUMN
The following is an interview with M-Flow
CEO Giles Edward. M-Flow is a UK-based
metering company providing repeatable metering
products to the oil and gas industry. Responses
were submitted in writing and have been left
unchanged.
Tim McNally: How many founders came
together to develop the technology produced by
M-Flow, and why was 2012 the year that they set
out to improve on it?
Giles Edward: As with many step change
technologies, M-Flow’s innovations arose because
a group of people connected through networks
found their curiosity, different skills and access to
technology connected a solution to a problem.
The foundation of M-Flow included perhaps half
a dozen individuals and two or three companies,
all of whom made key contributions.
For us, the key factors came from a number
of industry spaces: an understanding of the
operational value and complexity of multiphase
measurement; access to emerging composite
technologies; experience of cutting edge industrial
sensing from outside the oil industry; and
experience of building and funding technology
driven start-up businesses.
2012 was the time when the development of our
core technologies and the industry’s heightened
interest in new multiphase technologies crossed
paths. It’s interesting to reect that in 2012 the
industry was in the midst of a high oil price
boom, which made getting the company up and
running possible.
A couple of years later and the oil price crash
may have made M-Flow commercially difcult to
fund, but in fact the oil price crash has reduced
operator margins and improved the drivers for
our products to improve production efciency at
a low cost.
TM: There are always things that can be
improved upon in any industry, and this is of
course true of the oil and gas industry as well. As
such, why did the founders choose to focus on
innovating and improving upon the multiphase
metering system in particular?
GE: I have talked above about the role that
fate plays in bringing the solution and the need
together, but to focus on the need in the modern
industrial world, process control is driven by data,
as is ensuring successful production optimisation.
The more reliable, accurate, and available the data
is, the better you can improve your wells. That
comes with an important caveat: if you can’t
trust or access the data that’s being created, you
cant expect it to deliver valuable insights. The oil
industry has been behind the curve on this. There
are cultural conservative drivers for this, but also
the rst generation of multiphase meters did
not deliver the reliability, usability and low costs
required to allow their widespread adoption.
Manufacturers delivered expensive technology
for niche high-end applications focusing on
inherently uncertain ow rate measurement,
rather than promoting accuracy and repeatability
in parameters that can be more directly measured,
such as water cut and gas fraction. This inherently
leads to complexity, human intervention, and
validation-hungry systems.
We saw the need to change the focus if wellhead
multiphase measurement was to become the
norm across the industry, particularly onshore.
The solution we identied was to create a unique
carbon bre structure with proven sensing
systems embedded inside them. This created
a transparent window on the pipe ow, and
eliminated the need to have intrusive sensing
probes exposed to the uids. This lowered build
costs, almost completely removed maintenance
costs and manpower intensive interventions, and
delivered highly repeatable accuracy.
TM: Why is multiphase metering so important
to an oil and gas company’s operations while
drilling?
GE: When operators want to improve margins,
they need to reduce costs and improve
production. Multiphase measurement can have
a big impact on costs through reduced man
power required to gather data through well
testing and sampling, but it also gives much richer
data to make decisions and populate models
for reservoir, well and production optimisation.
Ultimately, multiphase metering data contributes
to longer-term understanding, which improves
well design, while also delivering immediate data
on the effectiveness of workovers and other
operations. It takes accurate measurement to
understand the effects of your actions. Unless you
can understand and quantify these changes, it’s
difcult to get a clear picture of what has worked,
and what hasnt.
As we’ve seen rst-hand in the eld, and
something that is now becoming widely accepted,
the biggest improvement on this front will come
from continuous well-by-well data. The sticking
point for getting to that point has been cost.
Today, with M-Flow, it’s commercially viable.
Operators can manage an oileld without having
to amend the operational pattern every time
something changes at a lower cost than traditional
multiphase meters, and with almost zero
subsequent opex.
TM: I saw you all use a
carbon bre structure. How
did you all conclude that this
was the best option? Was it
through extensive testing,
trial and error, or previous
experience with other
materials and technologies
that failed to efciently
accomplish the job?
GE: Accessing the benets
of using a non-metallic composite pipe for
sensing was the key insight and driver for the
formation of M-Flow. The unique opportunities
offered by this approach drove the other steps in
innovation, which have been incorporated into
our products. However, that rst key step into the
use of composites was the spark that created the
business.
The fact that the non-metallic pipe is almost
transparent to most sensing systems, particularly
electromagnetic ones, meant the complex
sensitive parts could be removed from the ow.
Immediately, maintenance and calibration issues
are avoided, costs come down, and performance
takes a big step forward.
I often cite the big step forward that medical
science saw when we stopped sticking probes in
people’s bodies to work out what was ailing them
and started to use MRI and similar technologies
to see the bigger picture with much less risk.
Sensing with composites pipe is an analogous
change.
M-Flow’s non-metallic spool piece allows
measurement of the full volume of uid ow
equally. This unique whole pipe measurement
is made with microwave sensors and, when
required, gamma density gauges.
This avoids reliance on either spot or narrow
chordal measurements which make the meter
performance ow regime dependent. This
complete, direct measurement removes the
uncertainty of ow regime modelling.
The absence of probes or narrow
measurement windows in the pipe creates a
highly reliable measurement even with heavy
oil or solids.
TM: A lot of companies we talk to have found
certain niches or products in the O&G industry
which have not been signicantly improved
upon. For example, one rm we spoke with was
ST9 Gas and Oil, a company which focused on
producing oil and gas-drilling parts at a fraction
Interview with Giles Edward, CEO, M-Flow
By Tim McNally
Giles Edward
Oilman Magazine / January-February 2018 / OilmanMagazine.com
25
OILMAN COLUMN
It is not uncommon to hear people all across
Louisiana talking about the Permian Basin and
for a good reason. The west Texas formation
saw its rst commercial oil well completed in
1921, and since then, the basin continues to
be a predominant supplier of United States
oil and gas. Some even say that an oil and gas
recovery begins and ends in this portion of
West Texas.
The Lone Star state has beneted tremendously
from the exploration, production, and
transportation of oil and gas. Recently, Texas
Tech University conducted a report looking
at the current and future impacts of the oil
and gas pipeline industry on Texas’ bottom
line. The report found that between 2014 and
2024, the pipeline industry’s economic impact
will generate around $374 billion in economic
output, $212 billion in additional gross state
product, and contribute $19.5 billion in state
and local government revenues, as well as
sustain an average of 171,000 jobs. Who
wouldn’t be eager to talk about these numbers?
In Louisiana, when we see an increase in
oil and gas activity, it’s the Haynesville shale
formation. For many years, people wrote off
the Haynesville as a place that was just too
expensive to produce. So the Haynesville was
forgotten and companies headed northeast to
the Marcellus and Utica formations in search
of lower cost oil and gas production. But years
of shut-in production due to a lack of pipeline
infrastructure are causing companies and
investors to return to what some have called a
natural gas giant in North Louisiana. This turn
of events is very welcomed news.
From the 30,000 foot view, it would look as
though Louisiana is making a recovery, and
the town of Lafayette, which relies heavily on
the oil and gas industry, should be getting back
on their feet. That is just not the case; the vast
majority of oil and gas activity is above I-10.
The truth is that many oil and gas companies
in south Louisiana, especially oileld service
companies, are moving away from southern
Louisiana and in many cases, walking across the
border to Texas where there is opportunity and
willingness to invest. According to those who
do business in West Texas, it is not uncommon
to see many Louisiana license plates at various
Texas restaurants and gas stations.
So what is the issue with oil and gas activity
in south Louisiana? It’s not that this part of
Louisiana is void of oil and gas to be produced
or has a lack of pipeline infrastructure…it’s not
that we aren’t strategically located on the Gulf
of Mexico with some
of the busiest ports
in the U.S. The reason
that investors arent
willing to invest in
south Louisiana is due
to the multiple lawsuits
against oil and gas
companies. What smart
investor would spend
hard earned capital
in a place where he
or she is almost all but
promised to get sued decades later? The issue
of a toxic legal environment was recognized by
the United States Chamber for Legal Reform.
The group ranked Louisiana as having the
worst legal system in the nation.
It is time that the people of Louisiana see for
themselves why south Louisiana isn’t thriving
and why south of I-10 hasn’t kept up the
inux of oil and gas activity in Louisiana. Trial
lawyers and frivolous litigation are destroying
our industry and hurting Louisiana’s nancial
footing. It is time we stop reading headlines
about jobs leaving south Louisiana and start
making headlines about bringing jobs back
home.
Changing Headlines
By Don Briggs
Don Briggs
OILMAN COLUMN
Visit OilmanMagazine.com
to read the full interview.
of the current cost and with a higher level of
durability than products currently in the market.
Why do you think that certain components of
the O&G operating process go unimproved for a
number of years, or even decades?
GE: The oil industry has some unique challenges,
and those create practical and cultural obstacles to
technology adoption. One of the big challenges
to the oil industry right at the front end is that
there are thousands, or even tens of thousands
of wells, feeding and funnelling raw product
into the infrastructure of pipelines and reneries
that produce the consumer facing products.
That diverse network of upstream producers
is exposed to high economic and technical risk
around their complex base operations, and there
are a lot of people to educate and convince of
the benets of innovation. Add to that that the
bigger, more centralised guys are often working
in huge long-term projects and it should not
be surprising that adoption can be slow. But
that does not mean that change does not take
place. The changes to well technology in the
unconventional space shows that the industry
embraces change rapidly once the evidence is on
the table, so the focus is always on building case
studies.
As a cyclical industry with frequent booms and
busts, investment in R&D doesnt always track
periods when companies are willing and able
integrate new technologies. Inventions that focus
on increasing production are less valuable when
there’s a global glut. Similarly, when prices are
high and there’s less demand for efciency, it can
be difcult for products that produce incremental
gains to get a fair hearing.
Some technologies persist over a long period,
because people just havent come up with a better
way of doing it. However, I think it’s clear the
multiphase area we are in is in a phase of change.
Multiphase metering has simply not penetrated
into the onshore space; we see companies
continuing to invest in traditional multiphase
meters. But the body of evidence is that these
produce less accurate and reliable results at high
costs than will drive a cultural change, and that’s
a difcult case to sell. At present, it’s rare to nd
an operator claim to get better than 10% +/-
accuracy from their multiphase meters.
The traditional multiphase meter companies
are looking to nd ways to make their last
generation products more competitive and suited
to the costs and operations of the US onshore
environment.
To address these weaknesses, cumbersome and
expensive test separators remain in operation;
but they provide only piecemeal or fragmented
information that rarely delivers more than limited
value. What it will take to see real change is smart
monitoring systems throughout the upstream
production chain.
TM: What are the main advantages for operators
using the M-Flow multiphase metering system
when compared to the traditional metering
systems found in the market?
Oilman Magazine / January-February 2018 / OilmanMagazine.com
2626
OILMAN COLUMN
Energy, and in particular the oil and gas
industry, has always been one of the
foundations of both the economy and the
nancial markets. The world has run on oil
and gas for decades, to the extent that oil
prices have been among the key determinants
of recessions and market crashes. In recent
years, that impact has been just as strong. The
rise in oil prices in the 2000s—and the recent
collapse—shook economies and governments
around the world.
When you look at the cause of this collapse
and the subsequent market behavior, however,
some interesting parallels to history emerge. In
my view, these parallels can help us understand
what has happened and, more important, what
is likely to happen next.
The past: “Wildcatters” to fracking
First, let’s consider where the oil industry
came from. It was originally dominated by
“wildcatters,” cowboys who drilled as much
as they could, anywhere they could. When
overproduction crashed prices, they declared
bankruptcy and moved, starting over when
prices rose again.
Then, a handful of businessmen, John
Rockefeller chief among them, took the
industry and organized it. The group bought
and controlled larger and larger parts of the
whole, until it was in a position to manage
production and prices. Standard Oil, at its peak,
pretty much owned the industry and could set
prices at will. At least this was the case until it
was broken up into the smaller (but still huge)
companies that we think of as the U.S. oil
industry even today.
A similar scenario played out at the
international level. Countries produced and
sold as much oil as they could, until the arrival
of OPEC (the Organization of Petroleum
Exporting Countries) brought them together to
manage and limit production—and force prices
up much higher. As a competitive market, oil
prices crashed. When a monopoly or oligopoly
took over, prices rose to everyone’s benet.
Small wonder, then, that countries around the
world replicated Rockefeller’s playbook.
All of this worked, of course, until cheating
became too rewarding. But prices were still
much higher than they would have been, as
open competition and production were kept
out of the market. Then came the fracking
revolution.
Fracking brought the return of the wildcatters,
thousands of small companies drilling when
and as fast as they could. These companies
produced as much as possible in order to pay
their bills and, consequently, drove prices down
to levels that had not been seen in decades. The
energy industry, which had developed in an era
of prices managed by OPEC, got hit hard.
The present: Solving the oversupply
problem
Which brings us to now. The collapse in oil
prices largely solved the oversupply problem, as
many of the smaller companies
went bankrupt. It also laid the
groundwork for a return to a
more managed price structure.
Large companies could now buy
up those assets on the cheap,
taking a much larger share of
production—and enhancing their ability to
once again keep prices higher than they would
have been in a free market.
Back to the future?
As this process continues, I suspect that the
next 10 years will be very similar to the later
stages of the last industry consolidation. The
economy and investors will see stable prices,
which has largely been the case since the
initial collapse. But we will also see prices that
increase over time, which so far has also been
the case. Oil will no longer be a free market
with the wild price cycles that entails, but a
more managed one. In many respects, it will
look much more like the 1990s than the boom
period (in oil prices) from 2003 to 2008 or the
bust period from 2014 to recently.
Overall, the effects should be positive. Markets
and the economy thrive on stability. While the
collapse in oil prices was a tailwind for many
sectors, the damage to the energy sector wiped
out many of those gains. Moving forward,
energy should be neither a signicant headwind
nor a tailwind, but a solid foundation—which
is what a sector this vital should be.
Oil Prices Collapse: Is the Energy
Industry Going Back to the Future?
By Brad McMillan
Brad McMillan
Oilman Magazine / January-February 2018 / OilmanMagazine.com
27
OILMAN COLUMN
MarketsandMarkets projects that the AI in the
oil and gas market was worth $1.42 billion in
2016 and is expected to grow at a CAGR of
12.66 percent from 2017 to 2022 to reach a
market size of $2.85 billion by 2022.
Improving operational efciency in the oil and
gas industry and predictive maintenance to
avoid costly downtime will drive the articial
intelligence in oil and gas in the coming future.
The growth of the articial intelligence in
the oil and gas market can be attributed
to the increasing big data technology in
the oil and gas industry to augment E&P
capabilities, signicant increases in venture
capital investments, the growing need for
automation driving the oil and gas industry,
and tremendous pressure to reduce production
costs.
In the coming years, the market is expected
to witness the highest growth rate in the
North American region. This growth is due
to increasing adoption of AI technologies
by oileld operators and service providers
and the strong presence of prominent AI
software and system suppliers, especially in
the US and Canada. The Middle East and
Africa are the fastest growing markets due
to increasing investments in start-ups for AI
implementation, which would further raise the
demand for AI in the near future.
The research study of AI in oil and gas,
further segmented into Type, Function and
Application Type is classied into hardware,
software, and services. The software segment
led AI in the oil and gas market in 2016.
Software in AI in the oil and
gas market are applicable
in upstream oil and gas
exploration and production
activities. The hardware
segment in AI in the oil
and gas market is expected
to grow swiftly during the
forecasted period (2017 to
2022), mainly due to the
increasing requirement for
sophisticated hardware
system congurations and
components capable of
handling massive data,
including, but not limited
to Tensor Processor Unit
(TPU), Graphic Processing Unit (GPU),
Resistive Processing Unit (RPU), Field
Programmable Gate Array (FPGA), and Visual
Processing Unit (VPU) to install software-
based AI capabilities.
Function is classied into predictive
maintenance and machinery inspection,
material movement, production planning,
eld services, quality control, and reclamation.
Preventive maintenance is the largest and one
of the fastest growing segment in AI in the oil
and gas market. Predictive maintenance aids
in addressing costly downturn by predicting
maintenance schedules for equipment to
prevent the possibility of equipment failures
and, thus, save millions of dollars.
Application is classied into upstream,
midstream, and downstream. The midstream
segment is expected to grow at the highest
CAGR in the global AI in oil and gas market
during the forecast period. The growth in
the shale oil and gas production in the US is
creating the need for an expanded midstream
network of pipelines, rail, tankers, and
terminals. AI is widely used in the midstream
sector to gather data during the transportation
process through pipelines and provides the
same to the human-machine interface to
control the process. In the oil and gas industry
these tools have been used to solve problems
such as pressure transient analysis, well log
interpretation, reservoir characterization, and
well selection for stimulation, among others.
Key players:
IBM (US), Accenture (Republic of Ireland),
Google (US), Microsoft Corporation (US),
and Oracle (US).
Artificial Intelligence:
The Future of Oil & Gas
By MarketsandMarkets, Inc.
Image Credit: MarketsAndMarkets, Inc.
Oilman Magazine / January-February 2018 / OilmanMagazine.com
2828
Gov. Burgum’s Ambitious Challenge to
Bakken Producers and Investors
By Jason Spiess
OILMAN COLUMN
Tis’ the season for annual meetings, but North
Dakota Governor Doug Burgum caught many
people’s attention with his public speech that
was making the rounds.
Burgum took full advantage of his invitation
to address industry leaders on what direction
he would like to see the Bakken go. He laid out
four basic challenges:
Produce 2 million barrels day.
Create an industry standard of zero spills.
Develop an innovative collaboration with
coal.
Take the Bakken to the next big step in
natural gas gathering.
As Burgum spoke, many people in the audience
dropped their jaw, taken aback by the ambitious
goals proclaimed by the entrepreneurial-rooted
governor.
On the other hand, there was a handful of
people nodding in agreement with the governor,
smiling because someone is laying the gauntlet
down in a way that will attract new investment
into the Bakken shale play.
Lynn Helms, director for the North Dakota
Department of Mineral Resources, is the state’s
top regulator and major source of the Bakkens
knowledge. He understands what message the
Governor is trying to get across.
“We’ve lost that edge, that rst place in
competition for capital has shifted to Oklahoma
and Texas, largely because the perception is
there that they can produce oil cheaper and
faster, they are closer to markets,” Helms said.
“...If North Dakota is going to take rst place
again, in terms of competition, we’ve got to
become cutting edge rst in technology, in
regulation, in innovation, in value added in all
the areas we have been talking about.
Helms added that by no means is this a Chicken
Little situation, but rather an opportunity to
reset our goals as a state and reevaluate how we
attract investors.
“We haven’t exactly fallen behind, but we haven’t
continued to innovate to the extent that we’ve
maintained rst place in terms of where capital
wants to go,” Helms said.
From Burgum’s perspective, starting out with
simple goals creates a path of achievement.
When asked where he pulled the number “two
million” from, Burgum looked to basic grouping
and the Bakkens recent history.
“It’s a nice round number and it is the next
sort of logical milestone and number for us,”
Burgum said. “But when you go back to 2007
we were doing 30,000-barrels-a-day; I don’t
think anyone thought one-million-barrels was
possible.
Burgum continued, saying the 2 million barrel
goal is very easy in theory, at least when you take
out the human element and focus on the math.
“To get to where we are today, about 1.1 million,
to 2 million is just a math problem. It’s a math
problem the entrepreneurs in this industry are
solving,” Burgum said.
Consequently, it’s a problem they’re solving
every day at the well, in the ofce and in board
rooms.
Listening to Burgum explain his challenge, it is
almost as if it is really more of a math process
rather than a problem.
“You solve it by one, drilling a hole in fewer
days than you did before, which is what Bakken
producers are doing. We have people drilling
wells in 12-14 days which used to take 30 days,
Burgum said. “And when you are talking about
a well in North Dakota and the Bakken, that’s a
two-mile vertical and two-mile lateral, and they
are getting that done in 12-14 days.”
Simple math note: many of the North Dakota
producers have continued their efciency and
streamlining ways to the tune of producing
twice as many wells per month.
So that’s one part of the math equation. “The
other part is what do you get out of that well
after you drill it,” Burgum said.
Historically, the Bakken curves have been pretty
consistent and the producers have gotten used
to it. But now, with the advent of “super-fracs,”
the game is changing once again.
“Now you have some of the folks working
through formulas. Generically, some folks are
calling them ‘super-fracs’, but if you are putting
more sand and water down these wells, some
people are seeing a big jump in their production
curve, in terms of what is produced per well,
Burgum said.
Circling back to the simple math of 2 million
barrels a day in the Bakken, Burgum resets and
revisits the logical, mathematical path.
“So if you have more wells and more barrels
per day per well, that sets you on the path,
Burgum said. “And when you do the second
one and have higher productivity, that’s going
to attract capital.
Back to the money. Once the math problem is
solved, you still need to attract the investments
and historically the WTI Bakken discount has
been an ongoing issue.
“We got to 1.1 million barrels a day with a huge
constraint on takeaway capacity and with the
resolution on DAPL last year adding 500,000
barrels a day of takeaway capacity,” Burgum
said. “My Lt. Gov Brent Sanford and I have
talked to two oil companies that are saying
right now, in the last month, their oil was being
purchased at zero discount at WTI.
Burgum explained how the state has worked
with a variety of industries in response to
market conditions and the Bakken discount.
A few years ago there was a big spread and that
was brought down a bit by more train loading
facilities being built, but many times there was
still a $5,6, or $7 spread with the hope that the
Dakota Access Pipeline would bring it down
to $2, but now I have people telling me there is
zero spread,” Burgum said.
Both Helms and Burgum agree that the
Bakken has done an excellent job investing in
infrastructure to ensure more takeaway capacity
so the 2 million barrel goal can be achieved.
“That improves the bottom line for the people
who are thinking about where they want to
invest their capital,” Burgum said. “So if we can
attract the capital, drill more wells per month
and have those wells be more productive that
puts you on the path to 2 million barrels a day.
It’s pretty simple.
Assuming the capital investments are there and
the rigs continue to rock the Bakken, will the
infrastructure even be able to handle 2 million
barrels a day?
“It’s going to take continued investment, but
a lot of the work that has already been done
with pipeline and the roads, that’s increased our
capacity and some of that has room to grow,
Burgum said. “It will take more, but North
Dakota has demonstrated to the industry that
we are willing to step up and do our share as a
state and do the public infrastructure to support
the private capital coming in.
Simply put, the math is there and the
investments are coming so the Bakken can
produce 2 million barrels a day in the near
future.
“It will take more, but it is a path that is very
doable,” said Burgum.
Featuring Top Industry Professionals
and Exhibiting Companies from across the U.S.
Call Donna Brown or Jo Ann Baker at (800) 299-2998
for exhibitor or sponsorship information
350 Booths in Exhibit Hall
Outside Equipment Showcase
Country & Western BBQ will
feed approx. 2,000 people
Oil & Gas Symposium
Golf Tournament
Oil Patch Cocktail Reception
inside Exhibit Hall
Networking opportunities
in a casual, professional
environment
& Annual Meeting
April 24 & 25, 2018 | Wichita Falls, Texas
Expo
Alliance
2018
Exhibit Booths and Sponsorships Still Available
NAPE IS TURNING 25, AND IT’S A BIG DEAL.
In addition to our flagship two-day expo that brings together thousands
of the industry’s top decision makers to one marketplace where deals happen,
NAPE Summit Week offers four networking events, five education seminars and a
new Job Fair. If you do the math, NAPE equals value. And with over 400 exhibitors
already staking a claim to booth space on our show floor, we’re ready to celebrate.
We’re also planning anniversary surprises like a Ford F-150 giveaway! And cake!
REGISTER TO EXHIBIT & ATTEND & PARTY at www.NAPEexpo.com
NAPE SUMMIT WEEK | 59 FEB 2018 | Houston | George R. Brown Convention Center