Oilman Magazine November/December 2020 : simplebooklet.com

Oilman Magazine / November-December 2020 / OilmanMagazine.com1IN THIS ISSUEFeatureInvesting in Technology and People – Bridging the Digital Gap: Sarah Skinner .............................................................................44-46In Every Issue Letter from the Publisher ...................................................................................................................................................................................2OILMAN Contributors .....................................................................................................................................................................................2OILMAN Online // Retweets // Social Stream ...........................................................................................................................................3Downhole Data .................................................................................................................................................................................................. 3OILMAN Columns Interview: Stephen Anson, Director of Measurement, W Energy Software: Eric R. Eissler ..................................................................4Sustainability Through Innovation: How Legasea’s Eco-Conscious Solutions are Shaping the Industry: Tonae’ Hamilton .......... 102020: The Final Nail Transformation for the Oil and Gas Industry: Eric R. Eissler ............................................................................26Oilman Cartoon: Steve Burnett ......................................................................................................................................................................63America’s Energy Challenges: Mark A. Stansberry .....................................................................................................................................65It Takes an Industry to Build a Forest: Jason Spiess ...................................................................................................................................66Living the Crude Life: Jason Spiess ................................................................................................................................................................71Guest Columns Why a Trusted Seal Supplier is More Important Than Ever: Russell Wood ..............................................................................................8Product Showcase: You Can Now Buy Petroleum and Industrial Equipment Online .......................................................................... 132020 Sees Higher Than Ever Demand for Drone Inspections: Chris Fleming ...................................................................................... 14Improving Well Safety with Accurate, Real-Time Condensate Detection: Zachary Susko ................................................................... 18New Technology Improves Oil Spill Detection: John Rauseo ..................................................................................................................20Lawyer and Landman Finds Nexus Between Oil and Gas and Alternative Energy in Central Texas: C.T. Marshall .......................24Fuel Retailers: Get More for Your Money When Upgrading to EMV-Compliant Hardware: Dan Lyman ....................................... 28Is Now the Right Time to Rethink Your Enterprise Software Strategy? Rob Roberts .........................................................................30How Does the Oil Industry Benet from GIS Software? Megan Nichols ..............................................................................................32Balancing Defense with Offense During COVID-19: Jimmy Leppert and Rod Walker .......................................................................34Flushing Rotary Equipment of Contaminants and Excess Costs: Nick Vaccaro ...................................................................................38How Businesses are Engaging Asset Performance to Improve Competitive Advantage: Kim Custeau ............................................42Private Equity’s Essential Role in the Upstream Space: Randy Newcomer .............................................................................................48Scanning Takes on New Meaning for Pipeline Work: John Stenmark .....................................................................................................50Utilizing Technology to Create a Customized Training Experience: Samantha Magee .........................................................................52The Business Case for Oil and Gas Companies to Think — and Act — Sustainably: Brent Potts .................................................... 54Young Professionals in the Oil and Gas Industry: Interview with Kamilia Putri: Alan Alexeyev ....................................................... 56What to Consider When Choosing a New Oil Field: Henry Berry ..........................................................................................................58Tips for Operating Unconventional Reservoirs: Jose Osorio .................................................................................................................... 60Virtual Training Technologies Will Be Used to Re-Train Furloughed COVID-19 Oil Industry Workers: Dijam Panigrahi ..........64Technologies That Help Diagnose Hydraulic Fracturing: Andres Ocando .............................................................................................68

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Oilman Magazine / November-December 2020 / OilmanMagazine.com2Mark A. StansberryMark A. Stansberry, Chairman of The GTD Group, is an award-winning author, columnist, lm and music producer, radio talk show host and 2009 Western Oklahoma Hall of Fame inductee. Stansberry has written ve energy-related books. He has been active in the oil and gas industry for over 41 years having served as CEO/President of Moore-Stansberry, Inc., and The Oklahoma Royalty Company. He is currently serving as Chairman of the Board of Regents of the Regional University System of Oklahoma, Chairman Emeritus of the Gaylord-Pickens Museum/Oklahoma Hall of Fame Board of Directors, Lifetime Trustee of Oklahoma Christian University, and Board Emeritus of the Oklahoma Governor’s International Team. He has served on several private and public boards. He is currently Advisory Board Chairman of IngenuitE, Inc. and Advisor of Skyline Ink. Joshua RobbinsJosh Robbins is currently the Chief Executive Ofcer of Beachwood Marketing. He has consulted and provided solutions for several industries, however the majority of his consulting solutions have been in manufacturing, energy and oil and gas. Mr. Robbins has over 15 years of excellent project leadership in business development and is experienced in all aspects of oil and gas acquisitions and divestitures. He has extensive business relationships with a demonstrated ability to conduct executive level negotiations. He has developed sustainable solutions, successfully marketing oil and natural gas properties cost effectively and efciently.Jason SpiessJason Spiess is an award winning journalist, talk show host, publisher and executive producer. Spiess has worked in both the radio and print industry for over 20 years. All but three years of his professional experience, Spiess was involved in the overall operations of the business as a principal partner. Spiess is a North Dakota native, Fargo North Alumni and graduate of North Dakota State University. Spiess moved to the oil patch in 2012 living and operating a food truck in the parking lot of Macís Hardware. In addition, 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.Steve BurnettSteve Burnett has been working in the oil industry since the age of 16. He started out working construction on a pipeline crew and upon retirement, nished his career as a Pipeline Safety Compliance Inspector. He has a degree in art and watched oil and art collide in his career to form the “Crude Oil Calendars.” He also taught in the same two elds and believes that while technology has advanced, the valuable people at the core of the industry and the attributes they encompass, remain the same. With a humorist for a father, he also learned that a dose of comedy makes everything better. The major inuences on his cartooning style were the Ace Reid Cowpokes cartoons, the Dirk West sports cartoons and V.T. Hamlin’s Alley Oop comic.NOVEMBER — DECEMBER 2020PUBLISHER Emmanuel SullivanEDITOR-IN-CHIEF Rebecca PontonMANAGING EDITOR Sarah SkinnerASSISTANT EDITOR Eric R. EisslerASSOCIATE EDITOR Tonae’ HamiltonGRAPHIC DESIGNER Kim FischerCONTRIBUTING EDITORS Steve Burnett Joshua Robbins Jason Spiess Mark StansberryADVERTISING SALES Eric Freer Diana GeorgeTo subscribe to Oilman Magazine, please visit our website, www.oilmanmagazine.com/subscribe. The contents of this publication are copyright 2020 by Oilman Magazine, LLC, with all rights restricted. Any reproduction or use of content without written consent of Oilman Magazine, LLC is strictly prohibited.All information in this publication is 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 Please send address change to Oilman Magazine P.O. Box 42511 Houston, TX 77242 (800) 562-2340Cover photo courtesy of Anatolii Stoiko – www.istockphoto.comLETTER FROM THE PUBLISHERCONTRIBUTORS — BiographiesEmmanuel Sullivan, Publisher, OILMAN MagazineAmazing that we are near the end of the year and our November/December issue is already here. This year went by super fast for me. I hear the same from industry associates who also point out the virus, subsequent lockdowns, election year campaigns, and an uncertain future all played a role in consuming the direction of our daily lives. As a result of the pandemic, the oil and gas industry took a strong hit this year. The price per barrel sank to an all-time low, and is now hovering in the low $40s, after starting the year above $60. As of September, $84 billion in debt has been brought to the bankruptcy court for the Southern District of Texas alone, nearly double the amount in 2016, the last major oil and gas downturn. The Haynes and Boone, LLP, Oil Patch Bankruptcy Monitor, compiled a list of notable companies with signicant bankruptcy lings across the country, such as BJ Services, HI-Crush, Noble Corporation, California Resources, and the largest, Chesapeake Energy. There has been industry discussion for several years that oil and gas companies need to consolidate, and the prolonged pandemic may have forced that position. As a result of M&A activity, the companies merging may see costs savings, a larger, competitive footprint, and free cash ow for investors.Naturally, bankruptcies, coupled with a slowdown in commerce, meant virtually every industry had to furlough or layoff employees, and the oil and gas industry was no different. In a recent Deloitte report, the industry lost 107,000 jobs this year or seven percent of the 1.5 million employed in the U.S. Texas, the nation’s largest oil producing state lost 39,900 jobs, followed by Louisiana with 12,300, and Oklahoma with 10,700, according to August employment data from the Bureau of Labor Statistics. For perspective, in Texas, the industry employed 297,100 workers 2014. Now 162,350 are employed as reported by the Texas Alliance of Energy Producers. Almost every major producer announced layoffs this year: Chevron plans to cut 6,000 employees globally; Shell 9,000; BP 10,000; and Exxon Mobil mentioned potential layoffs reviewed by country. Several oil and gas companies announced mergers; presumably, a result of the pandemic and the subsequent oil price crash, along with the declining demand for oil. Chevron acquired Noble Energy; Pioneer Natural Resources agreed to buy Parsley Energy; two Oklahoma-based companies, Devon Energy and WPX Energy, merged; ConocoPhillips is acquiring Concho Resources; and Canadian oil sands producer, Cenovus Energy and Husky Energy agreed to merge. There have been several smaller acquisitions in every pocket of the oil and gas industry, from technology and software to equipment and services. Like our own personal nances, companies do what is needed to survive. Many will thrive and, unfortunately, some will not. Overall, the industry has seen this playbook before; it is a resilient market and will bounce back.We close out the year on a positive note. OILMAN Magazine has expanded and now has a companion publication called OILWOMAN. I invite you to read our new magazine, on the ip side of the print edition, and online at OilwomanMagazine.com. We are excited to offer our readers the perspective women and other minorities bring to the oil and gas industry. Here’s hoping 2021 with be better and brighter for us as individuals and for the industry as a whole. Happy holidays!

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Oilman Magazine / November-December 2020 / OilmanMagazine.com3Week Ending October 30, 2020DIGITAL DOWNHOLE DATAGulf of Mexico: 12Last month: 12Last year: 20 New Mexico: 47Last month: 41Last year: 110 Texas: 133Last month: 113Last year: 418 Louisiana: 37Last month: 39Last year: 54 Oklahoma: 14Last month: 12Last year: 54 U.S. Total: 296Last month: 261Last year: 830OIL RIG COUNTS*Source: Baker HughesBrent Crude: $39.06Last month: $40.30Last year: $60.22 WTI: $38.39Last month: $40.05Last year: $54.85CRUDE OIL PRICES*Source: U.S. Energy Information Association (EIA)Per BarrelGulf of Mexico: 37,062,000Last month: 51,107,000Last year: 63,397,000New Mexico: 31,464,000Last month: 30,619,000Last year: 28,249,000 Texas: 145,289,000Last month: 146,823,000Last year: 159,339,000Louisiana: 2,635,000Last month: 3,149,000Last year: 3,949,000Oklahoma: 14,250,000Last month: 14,809,000Last year: 17,448,000 U.S. Total: 327,957,000Last month: 340,375,000Last year: 385,168,000CRUDE OIL PRODUCTION*Source: U.S. Energy Information Association (EIA) – August 2020 Barrels Per MonthGulf of Mexico: 43,362Last month: 67,292Last year: 91,215 New Mexico: 169,867Last month: 164,636Last year: 157,091 Texas: 789,719Last month: 767,500Last year: 836,414Louisiana: 257,605Last month: 265,321Last year: 276,770 Oklahoma: 225,145Last month: 227,656Last year: 268,965 U.S. Total: 3,039,047Last month: 3,028,117Last year: 3,159,401NATURAL GASMARKETED PRODUCTION*Source: U.S. Energy Information Association (EIA) – August 2020 Million Cubic Feet Per MonthConnect with OILMAN anytime at OILMANMAGAZINE.com and on social media RETWEETS@OilmanMagazine#OilmanNEWSStay updated between issues with weekly reports delivered online at OilmanMagazine.com SOCIAL STREAMfacebook.com/OilmanMagazine

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Oilman Magazine / November-December 2020 / OilmanMagazine.com4OILMAN COLUMNOILMAN COLUMNEric Eissler: Can you give a brief overview of your measurement pedigree and role in building the next generation of measurement solutions?Stephen Anson: In my two decades in energy, I’ve always been focused on measurement in the eld, the ofce and in the classroom. On the engagement and support side, I’ve been involved with many of our industry’s standards. My experience covers both gas and liquids measure-ment, including eld maintenance activi-ties, equipment design, and back ofce measurement data management. I’ve held various roles for E&P companies, midstream companies, and manufactur-ers always focusing on measurement.I know, rsthand, the critical role of measurement to our industry, which is why I am so committed to excellence in this discipline, which is just as important as engineering, geoscience, and other disciplines we may be more familiar with in the oil and gas industry. That is why I am so active in measurement education, including the International School of Hydrocarbon Measurement (ISHM) where I am an instructor and General Committee member. I am also a member of multiple committees for the American Petroleum Institute (API) and participate in other industry forums. As director of measurement at W Energy Software, I am representing the users we are designing software for, truly building software for measurement professionals by a measurement profes-sional. What’s exciting for me personally is that I get to build the next generation of measurement solutions, what we’re calling WE Measure. I’m taking my vast experience and applying it to building out our measurement product roadmap in tight collaboration with a dedicated development team. I am also leading our Measurement Product Consortium, a group of client partners who are interested in being early adopters of WE Measure and helping to drive the development and testing.EE: In W Energy’s announcement there is a quote: “Until now, there has only been one game in town for measurement solutions ...” What is this only one game in town? How long has the measurement sector been dominated by this company?SA: There are a few commercial mea-surement products on the market but the one we’re talking about is probably the most well-known. As a measure-ment professional, I’ve used this soft-ware package for over a decade. The man who created that software rst made a living out of manually integrat-ing charts in Excel until he recognized there was an opportunity to better integrate electronic measurement data, seized the moment, and built a measure-ment product from scratch the industry could use to better handle the data. He always did right by the client through boom or bust and I always felt that as a measurement user, my voice was always heard. I admire his legacy. Now we’re seizing the moment and building our measurement product. W Energy Software is returning to customer com-mitment by centering WE Measure around the voice of the measurement community.EE: Do you have a focus on hard-ware, too, or is it mostly software that W Energy has developed?SA: The hardware is already out there in the oileld, meters, SCADA and that kind of technology. These systems physically interface with everything up and down the value chain, from wellhead meters to gas meters on your house. All of this equipment is already transforming into the digital age.The problem is the torrent of data from the hardware. WE Measure is a 100 percent software solution designed to manage an energy company’s inbound measurement data, which could be hundreds or thousands of data sources. The real task of orchestrating the ow is in the database architecture and applications that calibrate, validate and balance the measurements.W Energy Software is not starting from scratch. Because of our unied software architecture and existing technology in areas such as production allocations and midstream meter functionality, we’ve already done a lot of the basic work for WE Measure. We’re leveraging this modern code base and building on it to rapidly stand up our measurement solution.EE: Why is there a need for change when it comes to measurement in the energy value chain?SA: The metering and other measure-ment hardware that feed into measure-ment data management systems have changed. Software needs to change too, in order to keep pace with the rapidly evolving digital oileld and the emerg-ing needs of the measurement commu-nity. Today’s users need modern Soft-Interview: Stephen Anson, Director of Measurement, W Energy Software By Eric R. Eissler

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Oilman Magazine / November-December 2020 / OilmanMagazine.com5OILMAN COLUMNOILMAN COLUMNware as a Service (SaaS) solutions that take full advantage of the cloud and agile technology that can match their complex workows.Measurement is an especially important space where dialogue between technol-ogy providers and technology users is critical for aligning myriad use cases and business needs. I’m passionate about measurement, which is why I’m pas-sionate about bringing back the voice of measurement users to ensure that all opinions, concerns and needs are continuously leveraged.There is an opportunity to further serve the industry I love and be part of another change. That’s why we made our decision this year to step in and be part of the next revolution in oil and gas. We’re going to let the measurement community know that their voices mat-ter and their needs are met.EE: Can you provide an overview of W Energy Software’s range of upstream and midstream solutions and how your new measurement initiative ts in?SA: The important thing to note about measurement is that it doesn’t take place in a vacuum. So many departments use measurement data in their workows, and we have a lot of workows across the energy value chain that are on the W Energy Software roadmap. We’re continuing to execute our vision of a fully unied oil and gas ERP platform built on the cloud that brings core upstream and midstream workows together in one place. That has a couple of huge advantages over the dozens of current solutions still relied on by energy companies. The cloud and W Energy Software architecture drive down costs signicantly. A unied ERP means applications and workows share a common and consistent dataset, which eliminates redundancies, manual data management and human error. [It also] means applications share a common and intuitive user interface.W Energy Software has a complete eco-system of software applications power-ing the entire value chain. For upstream, this includes purpose-built accounting and general ledger, land management, production operations and regulatory solutions. On the midstream side, W Energy Software drives key workows for nancial accounting, plant account-ing, liquids and gas transportation, terminal management and marketing.Measurement and what I’m working on cut across all of these product areas, from the wellhead, tanks and eld tickets through gathering, processing, storage, and points of sale for hydrocarbon products. All Continued on next page...

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Oilman Magazine / November-December 2020 / OilmanMagazine.com6OILMAN COLUMNof these have meters and other data acquisition systems. With the advent of WE Measure, energy companies can realize innovation with their data, and clients will benet from having their measurement data seamlessly integrated into the same platform that drives their upstream and midstream workows. EE: Could you say that your tech-nology is a “digital twin,” or would you describe it as something else?SA: Yep, that’s one way to look at our products. You really are creating a digital twin in a couple of ways. First, we’re duplicating physical meters and measurement points with digital representations. And this allows W Energy Software clients to digitally twin assets where measurement plays a central role, such as representing complex allocation networks, gathering and transportation systems, processing and storage terminals. Clients will use all of this measurement data to track actuals but for purposes of creating a digital twin, what’s interesting is how that data can be used to model “what if ” situations, such as how to optimally load and balance a transportation network. EE: With global energy markets in turmoil and the industry undergo-ing unprecedented change, why choose 2020 to make such a bold stride in your product line?SA: It’s been a perfect storm for the oil and gas business. We have ag-ing assets and infrastructure. There’s vintage measurement technology out in the eld and legacy solutions back in the ofce. Additionally, there is a data management storm, which was already brewing before COVID-19 hit. While the industry is strong, many companies have been forced to go into survival mode this year.Market turmoil has piled on top of an unprecedented imperative to ac-curately account for every drop of oil and MCF of gas to uplift margins as much as possible. This perfect storm has just underscored the vital impor-tance of measurement even more, where upstream and midstream need more than ever to aggregate a vast ar-ray of measurement sources, validate that data, and get it into the hands of the professionals who need it, from accounting and eld staff to manage-ment and boards of directors.W Energy leadership saw the oppor-tunity to invest in the industry it loves and wanted to help the companies, who produce, transport, and account for hydrocarbons, become more ef-cient. The energy sector needed anoth-er option to run such a critical aspect of its business and W Energy Software is going to partner with the industry to ensure it’s right on all fronts.EE: What are the potential cost savings for a company, should they switch over to your new measure-ment software?SA: That’s a great question. Cost is al-ways a concern for any company. WE Measure is going to change that by tap-ping into the economy of scale offered by the cloud and W Energy Software’s application architecture. There are enormous savings just in terms of eliminating the total cost of owner-ship associated with in-house data infrastructure and servers as well as the associated G&A that comes with full-time admins and measurement techs. There’s also enormous value in having a client’s measurement data integrated into the same platform as its business software, which eliminates manual data wrangling, accelerates cycle time, and improves business performance. It all adds up to tangible cost reduc-tion while also enhancing data integrity and accuracy, which translates to more accurate volume reporting. These system-gained efciencies drop more revenue into the bottom line.EE: Can you explain what the measurement product consortium is tasked to provide?SA: Measurement is the life blood of the energy business. That’s why having new options for managing this critical data infrastructure is so important. As W Energy Software sets out to provide choice in the market, we want to do so in a very transparent and responsible way that ensures what we build for the industry perfectly aligns and matches business needs.That’s where the Measurement Product Consortium will play such a vital role. Part of this is, of course, encouraging early adopters of our technology so we can actively work with live digital oileld assets. We don’t want to design our measurement product from the armchair, so to speak, [but] rather get our boots on the ground and work directly with a wide variety of measurement users to battle test WE Measure.The most important aspect of the Measurement Product Consortium is giving the industry representation in a technology initiative that will impact everyone in the value chain. That voice of the customer needs to be heard during all stages of what W Energy Software is designing, testing and deploying.A simple analogy: The Measurement Product Consortium is like building a railroad from two sides of the country that has to meet in the middle. Well, W Energy Software is laying down track on one side and the industry on the other. It takes careful collaboration!EE: Do you have any early adopters or client use cases that help tell the measurement story?SA: We’ve attracted a lot of interest right out of the gate and with our recent announcement of Phillips 66 joining the Measurement Product Consortium, we’ve got the critical mass needed to really make bold strides. Phillips 66 is now working closely with W Energy Software to align the direction of WE Measure with its vast operational footprint that encompasses a wide range of midstream use cases, including gathering, transportation, storage and processing.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com8It is no secret to those of us embedded in the oil and gas industry that 2020 has been a challenging time. In an industry dependent on energy supply and de-mand, COVID-19 has provided an un-paralleled worldwide reduction in oil and gas demands, resulting in lower prices per barrel and greater reserves. Even with the beginnings of a rebound on our radar, we still have not yet crossed the threshold to a full recovery. During economic downturns, there are several ways that a trusted seal supplier can help guide you through potential cost-saving measures for both short-term and long-term savings in equipment operation and repair. Now, more than ever, it is important to avoid costly mistakes, and nding a seal sourcing partner that you can trust is one way to do this.Why Your Sourcing Partner MattersWhile a solid sourcing partnership is valuable at all times, economic downturns are opportunities for your partners to come through for you. A question to ask is: Are you working with suppliers who are not only willing, but also able, to be resourceful and effective in helping you weather economic storms? Finding a partner who not only understands the economic climate, but is also able to help you avoid common missteps, can affect the speed at which you are able to recover. Here are three missteps that are often made when sourcing seals, and ways that a supplier should be able to provide relief.Choosing Price Over PerformanceIn the best of economies, it is common to want to cut corners in regard to seal replacement costs – even more so when cash ow may be limited. However, some seal materials are more expen-sive for a reason, and the money you might be saving on an inferior seal could cost you more in the long run due to poor performance, equipment failures and costly downtime. With under-engi-neering a common pitfall in the oil and gas industry, knowing how to determine the best material to support your unique applications is critical. Working with a sealing expert with a deep knowledge of materials and the applications they are most suited for can save you time and money in the long run. Another area in which an experienced sealing expert can be of service is in seal sourcing. Not all polymers are created equal, and many times the quality of the product is not found simply in the com-ponents used. There are myriad factors that affect the true quality of a seal. For example, you may purchase a seal made from top-of-the-line materials, but if it is not processed properly, the quality of the overall seal may be compromised. In this case, you may have paid top dollar, but receive subpar performance. Work-ing with a sealing partner who is familiar with the brands, materials and processes related to developing a seal can help you make the most informed decision on the most cost-effective way to allocate your resources, making sure that the quality – not just the price point – is taken into consideration. Standards MatterA second misstep that could be made in seal replacement is working with a partner who is not up-to-date on the latest American Petroleum Institute (API) requirements. Currently, the API has around 500 technical standards for processes and components. There have been four versions of the API standards released with an updated fth edition currently in the works.According to a 2014 Emerson Process Management Whitepaper, “Beyond Switches for Pump Monitoring: What Changed with API Standard 682,” the importance of strict adherence to API standards is threefold: circumventing unexpected costs/downtime, mitigating environmental incidents and injuries, and avoiding negative publicity. First, unantic-ipated failures due to poor seal selection can lead to unexpected oil rig downtime and other lost revenue that may not be recoverable. Secondly, environmental spills and other contamination, as well as Why a Trusted Seal Supplier is More Important Than Ever By Russell WoodPhoto courtesy of H&D Distributors.OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com9the potential for injuries or even deaths, can occur with seal choices that do not meet API standards, leading to unexpect-ed nancial setbacks. Finally, continual environmental incidents and agency audits can lead to bad publicity – not to mention additional legal fees and nes. Since not every in-house person re-sponsible for purchasing new seals is expected to know the ins and outs of API standards, it is critical that your seal supplier is well-versed in understanding these requirements. Not only will this save you time and money in the long run, it ensures that your company maintains its reputation so that when the economy rights itself, recovery is the only battle you’re ghting. Inventory PlanningPerhaps the best way to weather eco-nomic downturns is to manage your inventory planning. This can be the most important area in which a trusted sourc-ing partner can make an impact. Working with a team of engineering professionals that are actively involved in overseeing inventory demand forecasting can help you to know what your usual schedule for seal replacement is and how that may change in the near future. Another consideration when proactively planning your inventory is how the cur-rent global economy may affect pricing. This often manifests in longer lead times. In the U.S., we have seen government furloughs affect transportation, which makes predicting arrival dates more dif-cult. Also, many products coming from overseas are subject to varying export regulations. Inventory planning can help mitigate these concerns. Alongside lead times and delivery con-cerns, there is also the potential that the seals and other products that you need might not be available. With a higher de-mand for certain products and the pro-duction of these items down, costs will increase. Having a handle on what seals you need in advance of needing them will help you to avoid downtime and the higher costs of on-demand ordering. Creative Problem SolvingEven with all these pieces in place, you still may need to get creative with new ways to maintain lower prices, avoid overspending and keep your equipment running at its highest capacity. That’s where a partnership shows its greatest value. Forming a relationship with a company that is willing to go the extra mile with creative solutions to keep your price point low and your deliverables available is imperative.How do you nd a trusted partner? First, determine the areas where you are most concerned. Ask potential partners about ways that they have supported other customers in similar situations and make sure their suggested solutions work for you. Finally, be transparent in what you need to accomplish. The extra time you spend now to vet your future partners is time well spent for both pres-ent and future cost efciency. For more information on H&D Distrib-utors’ sealing solutions for the oil and gas industry, visit www.hddistributors.com/oil-gas.Russell Wood is the general manager at H&D Distributors, an expert sealing solutions provider for OEM and MRO customers in various industries where productivity is key. With over 30 years of experience in the seal industry, he leads both the H&D Technical Team and Inside Sales Team in offering creative and innovative solutions for the oil and gas industry. OILMAN COLUMNADVERTISE WITH US!Are you looking to expand your reach in the oil and gas marketplace? Do you have a product or service that would beneﬁt the industry? If so, we would like to speak with you! We have a creative team that can design your ad! Call us (800) 562-2340 Ex. 1 OilmanMagazine.com/advertise Advertising@OilmanMagazine.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com10The utilization of subsea equipment is essential in offshore oil exploration. Unfortunately, subsea operations aren’t always the most eco-friendly, having the potential to cause negative, long-term environmental impacts and increase carbon emissions. As a result, operators in the oil and gas industry require a solution that makes subsea operations more environmentally friendly and efcient.Noticing the environmental impact that comes with offshore exploration and a lack of sustainable equipment in the industry, Legasea, a U.K.-based subsea startup, sought to resolve the sustainability issue by providing innovative services to oil and gas operators. Together, Ray Milne, operations director for Legasea, and his teammates at Legasea decommission and refurbish subsea production and well equipment for various oil and gas businesses, making the parts safe and reusable during production. Now a booming startup with three business award nominations, Milne shared how Legasea was established, the goals and mission Legasea has to improve oil operations, and why innovation and sustainability are critical in the industry.Legasea was founded based on the idea of “difference” – to create a company that was unlike others, one that placed its values and ethos at the center of the business and gave its personnel real power to drive the company and shape its future. “We planned every element of the organization, and developed a detailed business plan, throughout Q1 2019, moved into our facility in April and then ofcially launched the business in May,” says Milne. He had met Legasea’s Managing Director, Lewis Sim, back in 2009, ten years prior to the launch of Legasea. “We were both working for a subsea equipment supplier, where we witnessed many instances of good equipment being unnecessarily scrapped,” says Milne. What prompted Milne and Sim to begin refurbishing subsea production and well equipment was constantly seeing oil and gas operators, over the years, have urgent requirements for equip-ment that was obsolete. This resulted in expensive, and time consuming, processes to re-manufacture using the original drawings, if available.To adequately serve oil and gas operators, Legasea focuses on the “Circular Economy.” “We specialize in production systems and controls, and offer a range of electrical, hydraulic and mechanical engineering services,” states Milne. He further explains how Legasea promotes sustainability and reuse, with its ethos being one of a circular economy, taking one company’s waste and restoring it to be of value elsewhere. “Legasea provides a complete shore-to-store service, for equipment returned following decommissioning, and we also work with surplus inventory that is no longer required by operators,” says Milne.As a result, Legasea maintains a wide range of clients, including major international oil and gas operators, U.K. North Sea operators, oileld service providers and renewable energy companies. “The organization Sustainability Through Innovation: How Legasea’s Eco-Conscious Solutions are Shaping the Industry By Tonae’ HamiltonLegasea Facility – Photos courtesy of LegaseaOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com11works in a range of markets, including subsea oil and gas production, drilling, topsides and renewables,” Milne states. Although considered a recent company that is still establishing a foothold in the industry, Legasea has received a signicant, positive reception, surpassing the team’s expectations. Legasea has managed to establish a diverse clientele of operators and service companies, including several that have placed repeat orders, and worked to add the company to approved vendor lists. “Within the sector, Legasea has been welcomed as a refreshing change to the status quo, and positive feedback has been received from all clients and visitors to our facility,” says Milne.The services Legasea provides support the positive reception, particularly its restoration process. According to Milne, “The impact is most evident in scenarios, which are becoming more and more frequent, where we get a call regarding an urgent part, and it is ready and available in our inventory. Being able to deliver emergency spares, in a short time frame, has the potential to save our clients millions, when factoring in the cost of lost production.” Milne explains how obsolescence management within the industry, as the years progress, is going to be critical, with various oil and gas producing regions transitioning towards being mature basins. “We are here to mitigate the risks associated with critical parts being unavailable,” he says.With outdated and underused equipment existing in the industry, decommissioning, refurbishing and risk management services are essential. “There is a signicant amount of subsea equipment that is surplus to requirements, that has either been stored as back up equipment, or only used a small number of times. When an oil or gas eld is closed, it becomes surplus to requirements and is disposed of,” explains Milne, further explaining that, because much of the equipment is considered obsolete, it is not seen as having any value, since it cannot be sold in its entirety, and simply becomes scrapped. “However, many of the components have value, and there are opportunities to reuse them. Our key objective, with regards to the environment, matches the ethos of the business, as a circular economy business, meaning that we will always do everything in the most environmentally-friendly manner.” Adhering to the ethos of their business, Legasea WorkshopElectrical ConnectorsOILMAN COLUMNContinued on next page...

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Oilman Magazine / November-December 2020 / OilmanMagazine.com12the team at Legasea encountered zero environmental incidents in January 2020, and were since awarded the ISO 14001 certication for Environmental Management.Actively contributing their own sustainable efforts to the industry, Legasea’s Ray Milne indicates other initiatives he has recently seen occur to make oil and gas operations more sustainable. “There are a number of initiatives ongoing at present, to convert existing offshore wells for carbon capture and storage (CCS).” Milne describes how the CCS projects typically involve three steps, which include: CO2 capture, from a large point source, such as a power station; transport of CO2, by pipeline or ship; and CO2 storage, within underground geological formations. “One example of this is the Acorn project in North-East Scotland led by Pale Blue Dot Energy, which has plans to be operating by 2024,” says Milne.Even with the recent sustainable initia-tives, Milne notes how the mission to be more sustainable in the industry is a difcult one to accomplish. “Sustain-ability is challenging within our indus-try due to the use of nite resources that are not renewable.” However, he mentions there are always ways to reduce the impact oil and gas produc-tion has on the environment. “By building circular economy principles into the design of equipment, it can be engineered with reuse in mind. Ac-centure estimates that, worldwide, the circular economy will be worth $4.5 trillion in the next 15 years, referring to it as ‘the biggest revolution in the global economy in 250 years,’ and this represents a great opportunity for the energy sector,” Milne explains. Applying the principles of circular economy to its products, Legasea offers a diverse line of services refurbished equipment to its customers. “We are very proud to be able to offer a wide range of services all under one roof within our facility near Aberdeen. As there are multiple cranes onsite, we can handle assemblies of up to 75 tonnes, which provides the capabilities to carry out major test and assembly projects, as well as nal acceptance tests (FAT) and systems integration testing (SIT),” says Milne. “During these projects, we conduct electrical, mechanical and hydraulic scopes, and we have the added advantage of being able to provide equipment from our inventory of re-certied equipment.” As aforementioned, Legasea has been nominated for three business awards, due to its innovative and eco-conscious solutions. “All of the nominations have been incredible, and we are honored to have received all of them,” Milne acknowledges. The well-received startup has managed to achieve the nominations in such a short time frame. “Receiving such accolades really helps to validate the Hydraulic CouplingsHydraulic UmbilicalOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com13PRODUCT SHOWCASENorthwest Pump, a 61-year old distrib-utor of petroleum and industrial parts has decided it’s time to go full digital. NWP recently purchased Petrostuff, an online petroleum sales platform that sold items such as nozzles, breakaways, swivels, pumps and more. Petrostuff has been around since 2010 and has made great strides in the ecommerce world for the petroleum industry.Northwest Pump now has two online platforms. The rst is for current B2B customers, allowing them to login and access the entire NWP product line, which includes thousands of items and 30-day terms. The second, newly pur-chased platform, is for B2C customers, who are looking for an easy way to buy petroleum and industrial products on-line without the hassle of setting up an account or being a NWP customer. “Our goal for having two platforms is that our current customers will get more perks and access to our full list of products; however, we realized we are not reaching a potential target mar-ket of B2C customers that are looking for a quick online option,” says Mark Mathews, NWP president and CEO. All products on the current Petrostuff site will be staying and a few Industrial items are being added that NWP feels will enhance the product line. NWP’s goal is to bring a digital option for customers that are on the go, as well as continue to provide the NWP cus-tomer-focused business model where customers can reach out to the inside sales team with any questions. “We know the industry is busy, so we want to give consumers the opportuni-ty to seamlessly buy products they need online with just the click of a button. We are still here for support, ques-tions and product evaluations but, for the customers who needs something quickly, we now also provide that op-tion as well,” comments Bob Mathews, NWP vice president. The new online platform is located on the NWP website at www.shop.nw-pump.com. Customers can either check out as a guest or create an account so they can track all their recent purchases. For all B2B help, consumers can email esales@nwpump.com.For more information on Northwest Pump or the new online sales platform, e-mail online@nwpump.com or call 1-877-567-3876. Northwest Pump has been an in-dustry leader in selling and servicing petroleum products since 1959. We offer top quality products, decades of experience and unparalleled customer service. When we added our industrial division over 10 years ago, those same qualities were established immediately. Employee-owned since 2006, that pride in ownership is reected in everything we do. You Can Now Buy Petroleum and Industrial Equipment OnlineOILMAN COLUMNconsiderable efforts of everyone in our team, after a little over one year in business, and they recognize the impact that we have managed to make on the industry along the way,” says Milne.Following its business award nominations, Legasea plans to continue supporting the oil and gas industry globally and providing innovative and sustainable solutions for its clients. “Throughout 2021, it is our intention to continue to expand our team at our base in Scotland, whilst reviewing options for a variety of locations globally, specically in key oil and gas hubs, because we work with products which have a global market,” states Milne. In addition to improving sustainabil-ity in the industry, Legasea is focused on making products more efcient, reliable and up-to-date. “Wherever you go, subsea components are of a standard design, and there are limited manufacturers. The global industry is suffering from the same issues, with regards to availability and obsoles-cence. In the North Sea, we use the same components as a eld in the Gulf of Mexico, which uses the same components as a eld offshore Perth, Australia,” Milne explains. Ultimately, Legasea is focused on making parts and equipment readily available and usable for operators around the globe, reducing obsolescence in the industry, and minimizing the environmental impacts along the way.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com14The use of drone technology for in-specting offshore oil and gas assets has grown massively over the last decade and is predicted by Research and Mar-kets to grow by a further 60 percent over the next ve years. Quicker, more cost-effective, and with a reduction in safety risks, companies are embracing the benets of drone inspec-tion compared with traditional methods, such as using rope access or scaffolding. With the coronavirus pandemic plac-ing increasing pressure on businesses to limit the manpower involved in opera-tions, and regulators becoming more exible around the need for an on-site presence during inspections, we are see-ing a further rise in inspection services being delivered remotely. The ability to digitize offshore assets is one of the main advantages of using drones to capture visual data. By using images of the assets captured during routine inspection campaigns, we can start to build highly detailed 3D digital twins. This was already benecial to oil and gas asset owners before the pan-demic, and demand has grown even higher this year as operators look at ways to avoid sending workers on-site.Even before COVID-19, oil and gas assets presented an inherently hazard-ous workplace and it remains important to limit the exposure that people have to these environments. By creating a 3D model, engineers have the ability to in-spect the facility and plan maintenance virtually, meaning repairs are focused and minimal time is spent on-site. The ability to inspect, analyze and plan re-pairs remotely is even more benecial in current times, as this allows companies to maintain social distancing and keep their workforce safe, while maintaining the safety and integrity of the assets and driving productivity. The Benets of Drone InspectionsThere are many reasons why drones have become benecial to oil and gas companies in recent years. Using this revolutionary airborne technology to inspect assets reduces the need to send personnel into dangerous areas, or have people working at height for extended periods of time. They enable us to y into hard-to-reach conned spaces, often without need for human entry. This means equipment such as pipe ranks, vessels and storage tanks can be easily and safely inspected both visually and thermally. These safety benets don’t come with a high price tag; in fact, it’s the opposite. By conducting inspections in a fraction of the typical time required, there are huge cost savings on offer – often millions of dollars for large inspection campaigns.This doesn’t come at the sacrice of data quality either. Drones allow for detailed imagery of even the smallest defects with less potential for human er-ror. A drone can capture overview and standoff shots, as well as close visual in-spection imagery, allowing asset manag-ers to effectively gauge the context and extent of any areas of damage.Suitable for Even the Most Complex Inspection CampaignsThe benets of drone inspection are becoming more widely understood and embraced; however, we still surprise people with how efciently we can inspect highly challenging areas. For instance, many believe that a platform underdeck is one area that is inaccessible by a drone. This is undoubtedly a complex area to inspect, where pilots are met with no GPS, and there are potential magnetic interference and complex structures to navigate around. A full underdeck inspection can, however, be undertaken by an experienced pilot who has the ability to y completely manually. 2020 Sees Higher Than Ever Demand for Drone Inspections By Chris FlemingPhotos courtesy of CyberhawkOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com15The traditional methods of access would be to use scaffolding or rope access technicians. Erecting and dis-mantling scaffolding is often extremely costly – potentially hundreds of thou-sands of dollars for large areas – and makes this technique unjustiably expensive when other solutions exist. Both scaffolding and rope access can take weeks, if not months, to complete full inspection scopes. Using a drone brings more efciency to the inspection process. One underdeck inspection Cyberhawk conducted for a client in the Norwegian North Sea was completed within just one day, resulting in substantial time and cost-savings. Our team was also able to obtain standoff shots of the underdeck, an angle that would not be obtainable from alterna-tive inspection techniques. Training is KeyOur ability to carry out such complex and intricate inspections comes as a result of our internal pilot training scheme; at Cyberhawk, this is four levels of intense training and practice, with pilots completing increasingly complex work scopes as they progress. The training starts with pilots learning manual ying skills. It is essential that our drone operators are able to take control if difculties occur, particularly when ying in hazardous environments such as oil and gas plants and offshore platforms.Our pilots must be Level 3 qualied before they can work on these types of complex onshore plants, and Level 4 for offshore. That means a minimum of 18 months or 500 hours of ying experi-ence on actual jobs before they can mobilize to these sites.This training program is deemed the gold standard in the drone community, proven by many successful aviation audits conducted on our business by global oil and gas operators. A New World of Digital DataWe’ve highlighted that the use of drones is safer, quicker and more cost-effective than traditional inspec-tion methods, but it’s the digitalization of the data captured that allows us to unlock a new world of information and begin to properly monitor, track, analyze and predict at scale. Advancements in data management have enabled us to generate further efciencies and gain more value from data. Key to that has been understand-ing how data should be stored and man-aged. Until recently, this was the biggest barrier to really embracing the power of drone technology.Previously, the challenges included a lack of software with the ability to process, store, assemble and search through large amounts of data. With the improvement of computing Drones are capable of capturing a highly intricate level of detail.Cyberhawk inspections teams include an experienced drone pilot and an industry-qualied engineer.OILMAN COLUMNContinued on next page...

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Oilman Magazine / November-December 2020 / OilmanMagazine.com16OILMAN COLUMNwww.beachwoodmarketing.comBeachwood navigates teams to ﬁnd deals that no one else can.508 West Vandament Avenue, Suite 304 l Yukon, OK l (405) 467-4366We don’t market to test the waters, we hit the market to make waves.software, expanded cloud capability, and software algorithms becoming more sophisticated, we are beginning to overcome these challenges and are starting to reap the benets of effective data management. Cyberhawk has developed its own cloud-based software, iHawk, which improves asset management and offers increased insight using visual data. It has the ability to enhance the indus-try’s asset management capabilities by allowing operators to completely digitalize their inspection reports in the context of the asset.Understanding how teams will use this data to become more efcient is essential. Most people process data more quickly and efciently when it is presented in a visual format, which, thanks to drone and software technol-ogy, is becoming a reality. Using cloud-based software, operators can now access an up-to-date, full visual record of their assets. This allows for detailed information to be shared between as-set management and operations teams, senior managers and contractors. This digitalization is being further bolstered through the introduction of asset familiarization. This is where a complete visual record of the asset can be used to monitor the ongoing condi-tion of the asset to prioritize future in-spection and maintenance campaigns. These 3D digital twins mean compa-nies are less reliant on human efforts to carry out inspections, which greatly reduces the risk to safety, as well as minimizing the potential for human error during inspection processes. In addition, iHawk allows for enhanced productivity through reduction in physical site visits, efcient document management, and more time on tools due to reduced asset downtime, leading to lower costs. Shell is one company which is embrac-ing drones and digitalization globally. Earlier this year, the supermajor award-ed Cyberhawk a ve-year, multi-mil-lion-dollar contract to use iHawk as its next generation visualization software platform for all onshore, offshore and subsea assets, as well as all global con-struction projects.We’ve been a key supporter of Shell’s digital transformation strategy since 2012 and our collaborative, progressive relationship has been a prime enabler in the evolution of iHawk. Managing complex infrastructure, particularly in the energy industry, cannot be based on a one size ts all approach, so we work closely with iHawk clients in this sector to ensure our software is t-for-purpose, and doesn’t stand still.The Future Holds Exciting Potential It is certain that drone demand will continue to increase in the oil and gas industry in the coming years, as the complexity and volume of visual asset management requirements grow by the day. As technology improves, we can expect to see more digitalization and automation being incorporated into the oil and gas industry inspection of its assets – from creating 3D twins, to detecting methane, and supporting the sector’s desire to reduce emissions. We’ve been working in this world for more than 10 years and the industry is now long past the proof of concept stage for drone inspections. Today, it’s all about creating as much value from the data as possible. Working with our clients, we continue to push the boundaries every day and are extremely excited about what the future holds. Life as a pilot at Cyberhawk: https://insights.thecyberhawk.com/news_and_blog/scotts-story-made-in-the-royal-navy-now-ying-high-at-cyberhawk Drone inspections in oil and gas: https://pages.thecyberhawk.com/en/oil-gas-capability-overview Chris Fleming is rec-ognized as a pioneer in the UAV inspection industry. Having per-sonally carried out over 150 live are inspections to date, he still leads eld teams on the most technically challenging projects for Cyberhawk. As an offshore Inspec-tion Engineer, Fleming has spent the last 20 years working around the globe in Australia, Norway, the North Sea, the Middle East, Ma-laysia and Brunei. Prior to joining Cyberhawk, Fleming specialized in FPSO operations with his last seven years on the Captain FPSO. Flares are just one area in which drones are replacing traditional methods of inspection.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com18Condensate can easily be detected and quantied in a laboratory setting. However, real-time condensate detec-tion, especially in the eld, has been an elusive goal. Why is condensate detection impor-tant? The simple answer is safety. The ramications of undetected condensate impinging upon frac and trucking assets can be explosive. Many of the early cata-strophic accidents experienced in basins across the United States can be directly correlated to condensate encroachment – that is, condensate ended up being in areas where it never should have been. Condensate can be produced as part of a well’s natural lifecycle throughout the production phase of natural gas wells in wet gas areas. Production uid gathering systems are constructed on well locations to store both production water and con-densate that is gathered through the nor-mal production cycle. The production water and hydrocarbons striate within the production tank infrastructure to al-low for water haulers to haul production water for reuse or disposal, and hazard-ous material haulers to haul condensate to separation facilities for marketing. While operational procedures can be implemented to prevent the hauling of ammable liquids by non-sanctioned haulers, errors relating to faulty telem-etry or operational oversight can lead to potentially unsafe conditions. In January 2003, a truck re erupted that resulted in three people being seriously burned and two people being killed. The re traced back to condensate contamination that was caused by the release of hydrocar-bon vapor during the unloading process. This accident could have been prevented if the condensate were observable and detected before it could impinge upon the situation. There are many other ex-amples of dangerous incidents that have occurred in the past, and these types of incidents continue to have catastrophic potential across our basins every day. The problem of condensate migra-tion into unwanted operational areas is further compounded when production water is reused for completion opera-tions. Centralized water ofoad loca-tions designed for reuse water gathering create a more functional platform for operational water reuse. Troublingly, these operations create opportunities for production water combined with large amounts of condensate to get ofoaded into these centralized facilities contami-nating the bulk water and requiring costly cleanup efforts. Condensate contamina-tion of the frac causes further safety and costly operational concerns. Fortunately, effective, robust and real-time condensate detection is now avail-able. This technology is accurate enough to prevent condensate from getting on trucks as it is loaded from production tanks. It can also prevent condensate from being unloaded onto frac sites as the water is delivered from the produc-tion tanks. Eliminating the ability of con-densate getting onto trucks and the frac pad solves 99 percent of the condensate-related problems seen by the oil and gas industry. With the newly developed ability for real-time detection, exploration and produc-tion (E&P) companies and their vendors can prevent condensate migration. The HC-DETX condensate detection tech-nology has recently been developed and deployed in the eld to prove its efcacy. Over a one-month trial, the HC-DETX prototype collected data from over 500 trucks that were being delivered into a centralized water storage and distribu-tion facility. The facility was designed to gather produced water from a single operator’s producing well locations. Each driver loading production water on loca-tions was instructed to observe a 36-inch buffer based on take level telemetry when pulling the tanks down so that they would not encroach on the oating con-densate layer. Regardless of this opera-tional protocol, the HC-DETX system observed condensate in different PPM ranges throughout the course of the trial. Of the 500-plus trucks tested, 84 percent tested lower than 100PPM; 61 trucks had Improving Well Safety with Accurate, Real-Time Condensate Detection By Zachary Susko Photo courtesy of Pichit Boonhuad – www.123RF.comOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com19condensate in the range of 100 to 500 PPM; and ve percent had greater than 500 PPM condensate in their load. At the end of the trial, the HC-DETX probe allowed us to identify the fact that every truck had some percentage of conden-sate on board. The HC-DETX detection system works by inserting a detection probe into the process line, where it provides continu-ous monitoring of the uid stream with an accuracy down to a single PPM. The system is housed in a Class1/Div2 enclo-sure for deployment in hazardous areas and has been outtted with a self-clean-ing function tailored to the water stream to ensure that it does not lose detection ability due to plating or fouling. The sys-tem requires 110V, 1HP power and 7CF of air at 90psi per hour. Using cellular or satellite connectivity, the system can be accessed from anywhere in the world allowing visibility into condensate-related accidents and alarm conditions. Ultimately, the HC-DETX system’s ability to detect the presence of condensate in situ creates a platform for prevention and rejection to eliminate condensate migration. The detection skid can be outtted with fast acting pneumatic valves that, upon detection of condensate levels of a predetermined hazardous PPM range, can eliminate or redirect ow. The redirection of ow can allow for the capture and separation of condensate into separate process vessels to eliminate safety hazards while allowing for the resale of the captured hydrocarbons. While current operating procedures have not been sufcient to prevent condensate migration, a solution is now at hand. Continuing development of technology that allows for real time monitoring will give exploration and production companies assurance that their greatest assets are protected from these hazardous conditions. Zachary Susko, business development and sales director for Comtech Industries Incorporated, is an upstream energy professional with 10 years’ experi-ence working in the water and waste space. Throughout his tenure, Susko has worked alongside the Comtech R&D team to deliver innovative new technologies that help solve critical problems that afict exploration and production companies within our basins. Susko holds an undergraduate degree in economics from Ohio State University, and is currently nishing his Master of Business Administration program from Duquesne University. Condensate contamination can have explosive results. Managing or eradicating the presence of condensates in areas they should not be can considerably improve safety. The HC-DETX in-line condensate detection system is an accurate system for detecting the presence of hydrocarbons in production water. It is capable of measuring condensate down to one PPM and will prevent condensate from contaminating trucks and fracs. Photos courtesy of Comtech Industries, Inc.In a month-long trial, the HC-DETX prototype proved effective in showing real-time condensate levels in trucks. It also showed that every truck tested had some level of condensate on board – some exceeding 500 PPM (laboratory testing shows that ignition becomes possible at 100-150 PPM). OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com20With the recent disaster in Mauritius reminding everyone about the damage caused by an oil spill, renewed emphasis is being placed on rapid oil spill detection to minimize and contain the spread of leaked oil as soon as possible. Long wave infrared (LWIR) cameras have been a useful tool for the detection of oil spills for many years, but they have many holes in their capabilities. In 2015, Polaris Sensor Technologies made a big technological leap by introducing the Pyxis camera, a combined infrared and polarization-based camera. Pyxis offers improved detection capability of oil spills and other petroleum-based products due to its ability to simultaneously generate polarization imagery and thermal imagery. Small enough (3.5” x 2” x 2”) and light enough (less than 0.5 pound) to be mounted on a UAV, but robust enough to withstand constant salt spray on an open water oil rig, the Pyxis camera has proven itself to be a vital tool for oil spill detection. There are times when LWIR radiation provides a stronger signal than polarization when detecting an oil spill. However, there are even more times, such as at night, or when the oil has reached thermal equilibrium with the water, or when waves confuse the scene, or when oil becomes emulsied, that polarization gives a stronger signal. The strength of the Pyxis camera is that it captures both LWIR data and polarization data at the same time from the same image and superimposes them into a single image, resulting in the best possible detection capability, regardless which method is providing a stronger signal. This capability makes autonomous monitoring possible and effective because it doesn’t matter whether thermal imagery or polarization imagery gives the stronger signal; Pyxis gives you both. For a comparison showing Pyxis versus visible wavelengths, a short (30 second) video is presented here: https://www.youtube.com/watch?v=AQqJRylKud4. In 2017, a battery of tests comparing polarization to LWIR detection was conducted at the Ohmsett National Oil Spill Response and Renewable Energy Test Facility located in Leonardo, New Jersey, USA. A chart showing a summary of the oil detection testing results is presented here. A great deal of research has gone into determining these performance parameters. The Ohmsett testing focused on comparing the performance of LWIR only versus Polarization-enhanced-LWIR under the following conditions:a. Nighttime performanceb. Detection capability in the presence of wave actionc. Detection of emulsied oilNew Technology Improves Oil Spill Detection By John RauseoPhoto courtesy of Gwendoline Defente/EMAE via APDescription LWIR camera onlyPyxis Polarization Enhanced LWIRWell understood technology Yes YesGeneral availability of camera Multiple sources One sourceStrong signal with temperature difference Yes YesStrong signal with no temperature difference No YesStrong nighttime performance No YesStrong performance in waves No YesStrong detection of emulsied oil No YesStrong performance under warm, low clouds No NoOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com21Nighttime Performance TestingFigure 1 below shows the differences in performance among visible, thermal and polarization-based cameras at three different times of day: 3:27 PM, 5:17 PM and 9:27 PM. Each of the images shows two oating “boxes,” which are simply four walls with no bottom containing oil on top of water in a pool. These walls help prevent the oil from leaking into the surrounding pool water. As expected, the visible camera shows good contrast between the oil (black) and the water (clear in a yellow-colored pool) at 3:27 PM and 5:17 PM, but just shows a black screen after sundown in the picture taken at 9:27 PM. The thermal imagery shows relatively weak contrast in all three pictures between the gray water and the lighter gray oil, but at least there is some image at nighttime, as opposed to the visible camera. However, polarization gives a consistently strong contrast of black oil on gray water at all times of day. Figure 2 compares thermal IR (red) and polarization (blue) camera imagery contrast of the oil versus water signal taken from the test shown in Figure 1. A continuous test to show nighttime performance between thermal imagery and polarization imagery was conducted from 3:00 PM on Day 1 to 9:00 AM the following day. This test shows polarization provided superior contrast over thermal IR imagery at almost all times during the entire 18-hour test. A small window of timeContinued on next page...OILMAN COLUMNFigure 1. Comparison of visible, thermal IR and polarization imagery of oil on water at the Ohmsett Oil Spill Response facility operated by the Bureau of Safety and Environmental Enforcement (BSEE) and examined thick (on the left) and thin (on the right) oil floating on water in 2017. A time lapse video of this test can be seen here: https://www.youtube.com/watch?v=U32ZQ7gmyGM.Figure 2. Imaging contrast performance: Thermal IR imagery versus Polarization Imagery.Visible Thermal Polarization

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Oilman Magazine / November-December 2020 / OilmanMagazine.com22OILMAN COLUMNoccurred when the rising sun heated the oil faster than the water, which resulted in the thermal imagery having a stronger contrast starting somewhere around 8:00 AM. However, by 9:00 AM, the polarization imagery once again showed a stronger signal than the LWIR data.Wave Action Performance TestingFigures 1 and 2 above show the results in calm water. What happens when wave action complicates the situation? Figure 3 shows the difference in performance of visible, thermal and polarization imagery in the presence of waves. The result shows, if you didn’t know to look for oil in the image, then you wouldn’t know that a contaminant was in the water, in either the visible or the thermal imagery. Only the polarization image provides a strong enough contrast to make it obvious that some kind of contamination exists. In addition, it was expected that the oil would stay in the “boxes” shown in the middle of the image. However, very shortly after the wave pool was turned on, the oil quickly migrated out of the containment boxes and spread over a much larger surface area. Polarization was easily able to clearly show the spread. Emulsied Oil Detection TestingDetecting solid oil slicks on the surface of the water is one thing, but very often oil doesn’t cooperate with our detection efforts and becomes emulsied instead of remaining as an easily detectable solid sheet on the water. In an actual oil spill, oating oil ages and changes properties signicantly due the action of UV radiation and the waves. As the oil emulsies, the detection capability of various techniques can be severely degraded. In particular, detection methods based solely on LWIR can suffer dramatically. Polarization detection also yields signicant benets under these conditions. One of the tests conducted during the Ohmsett research involved creating emulsied oil. Oil was left on the surface of a calm pool and exposed to the sunlight for several days so any chemical changes caused by UV radiation had sufcient time to take effect. One hour before the test was conducted, the wave generator was turned on. After this one-hour period, the image in Figure 4 was captured. Despite the mixing and emulsifying that occurred from the wave action, a strong signal is obtained in the visible waveband and in polarization. However, it is not possible to clearly identify the oil in the water in the thermal imagery. These tests and others performed by Polaris have shown that, in most situations, polarization imagery gives a much stronger signal when trying to detect oil on water than does thermal IR imagery alone. However, the Pyxis camera from Polaris Sensor Technologies does not force the user to choose between polarization and thermal imagery; Pyxis provides both. The Pyxis thermal/polarization hybrid camera captures the LWIR data and the polarization data in each frame, thus allowing the user to view only the thermal imagery, only the polarization imagery, or both in a fused image called eTherm. Additional TestingOther less rigorous tests not conducted at Ohmsett imply that vegetation and water fowl that have oil on them can also be identied by Pyxis; however, it is difcult to ethically perform this testing on a large scale. Additionally, due to the nature of polarization, the minimum detectable thickness of oil with the polarization signature is approximately 50 microns but depends on ocean and weather conditions. This amount is very close to the minimum thickness typically considered to be worthy of recovery, so the physics of polarization itself helps prevent false positive detections. Figure 3. Detection capability of visible (upper left), thermal (upper right), and polarization (lower left) and the combined IR/polarization signal (lower right) in breaking waves.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com23OILMAN COLUMNImproved DetectionThe testing conducted at Ohmsett shows that adding the capability of detecting polarization in the same image as LWIR thermal imagery provides a much greater capability in the detection of oil-on-water than just LWIR thermal imagery alone. It shows that Pyxis provides better detection capabilities for oil on water at night, in both calm water and under breaking waves, and when the oil has become emulsied. The Pyxis camera is a leap forward in oil detection and is a valuable tool for use in efforts to keep waterways and coastlines clean and the ecology healthy. A satised customer offered this testimonial: “The Pyxis camera is an exciting new technology that we are seeking to deploy around the world for routine monitoring and in support of incident response. Our testing on drones has shown that it can be invaluable for rapid response, robust detection and ease of use.” – senior scientist in environmental protection at a major oil producerFor more information, contact John Rauseo at Polaris Sensor Technologies –john.rauseo@polarissensor.com. Figure 4. Detection capability of visible (upper left), thermal (upper right), polarization (lower left) and the combined IR/polarization signal (lower right) when dealing with emulsied oil.On the left is a picture of the Pyxis camera. It is small enough (ts in a 3.5” x 2” x 2” envelope) and light enough (weighs less than 0.5 pound) to mount on a drone or to be used as a hand-held device for easy transport. It can also be hardened to withstand constant waves and salt spray for use on an open water oil rig. ADVERTISE WITH US!Are you looking to expand your reach in the oil and gas marketplace? Do you have a product or service that would beneﬁt the industry? If so, we would like to speak with you! We have a creative team that can design your ad! Call us (800) 562-2340 Ex. 1 OilmanMagazine.com/advertise Advertising@OilmanMagazine.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com24Having left the Beechcraft Bonanza G36 sitting in the steadily warming Texas sun, Jonathan Grammer is now three miles south of Haskell, Texas, watching the dirt y from his legs as he brushes off his hands on his jeans. The property, forty-ve miles north of Abilene, is meaningful to him, a test case in which he is actively developing not only the oil and gas rights, but also the solar, wind and surface acreage as well. While most of his counterparts and colleagues are either three hours north in Oklahoma, in the Scoop/Stack Play, or three hours southwest in Midland, elbowing their way into the Permian, Grammer is here in the quiet wind surrounded by miles of wheat elds. “Times are never bad,” he asserts. “It’s merely a time now to prepare for the next wave.” “There’s a shallow Harber Strawn well just over that property line at about 4,700 feet [that’s] been producing since about ’82,” Grammer says, pointing off to the northeast. “One of the reasons I like this area is the abundance of shallow vertical wells that still need attention. There’s a lot areas like this throughout the Mid-Con region with all the same characteristics: recover-able hydrocarbons, good well structure, good available service companies, that can still be developed with minimal investment. They just need some good secondary recovery, someone to pay attention to them.”It is early September and the tem-perature is climbing passed 85 degrees. Grammer has chosen to meet here in the dust to talk about the evolution of this business and his thoughts on the present and future of the industry. Grammer readily admits he’s one of only a few that still promotes interest in the shallow vertical programs, mostly because the economics still work, he says. While most of the industry has gravitated toward multi-stage frac unconventional horizontal drilling programs over the past decade, not Grammer, founder of Grammer Land & Exploration Corp., a private land, mineral and royalty acquisition com-pany, as well as Grammer Law Group, P.C., his small private oil and gas law rm. Whether acquiring oil and gas leases, mineral rights, royalty interests or representing legal clients, Grammer has long held rm to his affection for shallow verticals, especially in some of the more historic elds in Texas. Established nearly twenty years ago, Grammer originally formed Gram-mer Land & Exploration Corp. when he was a young independent landman. After a few years of contracting out the company’s legal work, he decided to resurrect his law practice in an effort to streamline productivity and drive down costs, and now maintains a group of four experienced oil and gas attorneys, in addition to himself. “After about two years of full-time practicing law, I began buying oil leases in Seminole County, Oklahoma, in the Wilcox Sands, just about the same depth as around here. Two years after that I hired my rst landman and, after about ve years, had just over fteen landmen working for me, mostly then in the Texas Panhandle.”Now approaching its twentieth year, Grammer Land & Exploration Corp., specializes in oil and gas lease acquisi-tion, mineral title examination, pipeline right-of-way, and also acquires produc-ing and non-producing mineral inter-ests throughout the Mid-Continent Re-gion. The staff of oil and gas attorneys Lawyer and Landman Finds Nexus Between Oil and Gas and Alternative Energy in Central Texas By C.T. MarshallJonathan GrammarOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com25followed shortly thereafter. “Spinning off Grammer Law Group was well overdue. I’m really remiss I didn’t start to utilize my law license more in the early stages of my land career. I’d sworn off practicing law so that I could focus on land and acquisi-tion. However, we began to see real issues in turn-around time for title opinions for not only ourselves, but also for our clients after we had handed off the upstream acquisition work. Rather than pull from the law schools for newly admitted associates, we began to staff up with older attorneys, some even retired from places like Devon and Pennzoil, who wanted to maintain a transactional practice and no longer wanted a brick-and-mortar law rm environment upon which to build a career. The result was not only landing some really qualied attorneys, but also expanding our legal services reach into Colorado, New Mexico, Oklahoma, Texas and Kansas.”In watching the development of un-conventional plays over the course of his career, Grammer has formulated opinions which, over time, have be-come cornerstones to his businesses. “I have a stronger aversion to bor-rowing money than most which has prolonged a great deal of our growth; however, it’s resulted in a stronger portfolio. As a result, we were slower in getting into the working interest and royalty components of our oil and gas holdings simply because we would not nance. I think one of my prouder achievements will be over time having built these companies out of cash ow. It’s one of the enormous problems that came with horizontal drilling in my opinion. For all of its benets, I see a perpetual plague on the industry in that it appears to be more driven by some really oppressive nancial structures. Every few years Haynes and Boone out of Dallas puts out a spreadsheet listing volumes of oil companies that are en-tering bankruptcy protection. It breaks my heart for the industry because it’s unnecessary, but also for all employees and contractors that depend on those companies for livelihood. However, it has also served as a wonderful oppor-tunity to add to our asset base. We’ve built a great deal of our mineral and production portfolio off of larger companies that have led for Chapter 11 at times when we had good cash ow and few others did. I’d stop short of indicting the industry as a whole, but if the United States is ever to become wholly energy independent, it’s going to have to re-examine the way we nance oil and gas exploration.”One of the beliefs Grammer holds true is that the ingredients for success are specic to the pursuer. As a re-sult, many of his beliefs and ideals are almost of a time gone by, apparent not only in the way he talks, but the way he stands here in this dusty pasture. There is an air about his mannerisms that seems well beyond his forty-ve years of age and more akin to an oil and gas industry now far gone. It is apparent even in his prophecies for the industry, and for the country, in looking toward the future. “Without a doubt, the primary objective for the next generation needs to be eradicating the dependency of the United States on foreign energy. Regardless of the political rhetoric and its proclaimed solutions, it’s a national security issue, plain and simple. The evolution that needs to take place is making domestic energy more affordable to obtain. That is not going to come from merely drilling more wells in the Permian Basin. That is one of the obvious elements of this little part of central Texas: the nexus that already exists between oil and gas and the alternative energy industry. It is becoming more common, and I think we need to pay closer attention to how solar panels, wind turbines, electrical transmission, and oil and gas development are beginning to occupy the same landscape. There will not be one sole energy source dominating the other, but rather trying to nd solutions that incorporate all of them into a powerful energy infrastructure. That is the only way in which the United States can truly triumph over this massive problem in importing oil from the Middle East.”“If the political momentum that is presently devoted to special inter-est groups could be redirected into a national objective of making the country more energy independent as opposed to facilitating development of our individual industries, we could truly be unstoppable and truly put us in a position to effectively compete with nations like China and Saudi Arabia. In the end, we don’t have enough oil to move the needle globally, we don’t have enough coal, or solar and wind, but the conglomerate of all of those energy sources together would be unmatched and would effectively make each indi-vidual industry more economical.”Grammer Land & Exploration Corp. and Grammer Law Group, P.C., main-tain ofces in Amarillo and Dripping Springs, Texas, and Oklahoma City. A native of Austin, Texas, Grammer is the father of three and married to wife Claire, also an attorney. OILMAN COLUMNADVERTISE WITH US!Are you looking to expand your reach in the oil and gas marketplace? Do you have a product or service that would beneﬁt the industry? If so, we would like to speak with you! We have a creative team that can design your ad! Call us (800) 562-2340 Ex. 1 OilmanMagazine.com/advertise Advertising@OilmanMagazine.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com26OILMAN COLUMNAugust 27, 1859, was a dening moment for America when the rst oil well was drilled near Titusville, Pennsylvania. It set the course for industry and innovation for the next 161 years, which has led us to today, a period where the oil industry has reached its apex. The COVID-19 pandemic has altered the way the world works. Demand has fallen for the last time, leaving industry unable to get back up and ght, like it has done so many times before, through the ups and downs those in the oil and gas industry have come to know. No Demand, No Man’s LandAndrew Inkpen, professor of manage-ment and J. Kenneth and the Jeanette Seward Chair in Global Strategy at the Arizona State University, says, “The only thing that changed in 2014 was price and that was part of the natural cycle of commodity prices – they go up and down.” While 2014 wasn’t that long ago, it’s important to “remember that the Great Recession had only a short-term impact on price and demand. The pandemic is different,” says Inkpen. “Travel, and jet fuel, could take ve years to recover. Or perhaps it won’t re-cover. Commuter travel will never come back to the way it was. The result will be a permanent drop in demand.”Small and mid-size companies in the oil and gas industry face many challenges to remain in operation. The ones that are not competitive will meet certain failure; others may be acquired by larger rms. While the industry is usually ush with cash, that has not been the case for the past six years. Smaller companies borrowed lots of money and now demand is gone and the supply tank is lled to the brim. It will be a hard market to survive in. Peak Oil was Feared, but Peak Demand is ShockingInkpen agrees that “BP’s latest Energy Outlook predicts that peak demand will occur in the next decade. The world will continue to use oil for many decades, but the oil and gas industry will not occupy as central a role in the energy landscape as it once did.” We are in the dawn of the Electric Age. Battery cells and capacitors have evolved to the point that Tesla CEO Elon Musk says he will have electric airplanes in the not too distant future. Oil and gas will still be there, but they just will not have the presence they once did. They will cede power to the alternatives of today and many companies, such as Shell and BP, are diversifying their energy sources. There is a good chance the majors will still be around but will diversify their energy offerings to meet the needs and the markets of the future. Global OutlookWhile OILMAN Magazine focuses predominantly on the U.S. sector, it sometimes takes into account the global industry. In the quote below, Inkpen brings up an astute observation about how the U.S. and Canada will fare in the long run compared to government-controlled industries. The U.S. oil industry and Canada, to a lesser degree, are the only real competitive oil sectors in the world, where property rights allow private capital to own the oil. The U.S. industry has had an amazing ability to reinvent itself through innovation and private investment. In contrast, the OPEC nations and Russia are stuck in an environment where government 2020: The Final Nail Transformation for the Oil and Gas Industry By Eric R. EisslerImage courtesy of Warakorn Harnprasop – www.123RF.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com27OILMAN COLUMNentities dominate. The U.S. industry will innovate itself out of the current challenges. For some rms that means great success in the future. It also means some rms will fail. That is the nature of the U.S. private sector-oriented oil industry – a great example over the past 150 years of constant creative destruction.Possible Post-pandemic Small SurgeWhile the pandemic is still hard to predict, it’s the author’s point of view that, at least in his own observations, life is trying to come back to normal in some cases, and that demand will ramp up a bit. Once a vaccine is in place, there could be pent-up demand for travel that could push prices higher in the near term, but probably will be unsustainable in the longer term as the world embraces many of the things we are now calling the “new normal.” This temporary surge will offer relief for many of the smaller and mid-sized companies, if they can hold on long enough to see a vaccine breakthrough in the coming months. The industry is relying on life returning to normal, which seems, at this point in time, like a pipe dream. Bankruptcies AboundWhile there could be a small surge for the ones who hang on, the Haynes and Boone Oil Patch Bankruptcy Monitor paints a dire picture. In the past three quarters, 36 companies in oil and gas have led for bankruptcy, the majority of which are in Texas. In the second quarter alone, producers ling for bank-ruptcy held over $29 billion in debt, with shale pioneer Chesapeake Energy accounting for $9 billion of that. Over-all, the total for the amount of debt owed by bankrupt companies in 2020 is $50 billion, which by the end of fourth quarter 2020 will easily surpass the $56 billion of debt owed in 2016. Analysts agree that the number will only continue to increase through the end of this year and into the next. Demand Down, Prices DownBetween Q1 and Q2, oil demand fell by about ten million barrels per day. Crude oil prices dipped below $20 per barrel in April, then moved up steadily, resulting in an average crude oil price of $29 per barrel for the quarter. However, this is still well below the Q1 average of $48 per barrel. Reduced demand worsened existing oversupply conditions in the gas markets, pushing prices to historic lows. The rening environment was also extremely challenging as U.S. and Europe crack spreads fell to nearly 50 percent of their year-to-date levels.Way of the World The cards are on the table, the industry is showing its hand, while fate smiles and draws from the deck of possibilities. The near-term is not looking good for anyone right now – not oil and gas or many other industries – but one thing is sure, compared to other countries of the world, the U.S. will continue to innovate and come out with new ideas on how the oil and gas industry, relived of its kingship over the energy industry, will continue to operate at a reduced capacity and the alternative energy sources of today become the majors of tomorrow. The world is going through a reckoning, and accelerated changes that we were not ready for, but have had them thrust upon us. Tomorrow we will wake up reborn, stronger and wiser than we were yesterday. While things might not be what they once were, we will adapt, change and move on. It is the only thing to do.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com28Retail is transforming at lightning speed across all sectors, and the fuel and convenience industry is not exempt. Customers now expect digital buying experiences with modern options like delivery and curbside service via app or text; in other words, they expect every business to use technology, even if it’s not a core competency for every store or business owner. Meanwhile, for fuel retailers, the cost of doing busi-ness continues to rise even as margins shrink, saddling owners and operators with more to do, and less with which to do it.That creates challenges whenever a fuel and convenience site or store requires new equipment investments. Right now is a prime example of a time when those investments are not optional, but absolutely necessary. As fuel and convenience retailers work to upgrade their automated fuel dispenser (AFD) equipment ahead of the April 2021 deadline for the Europay, Mastercard and Visa (EMV) liability shift, many are looking to maximize their return on investment and get the most out of their projects – and that means upgrading not just the pumps themselves, but also the payments technologies that support fast, secure transactions at the pump.To get the biggest bang for their buck during EMV upgrades, retailers should look to implement a comprehensive payments processing technology, in ad-dition to the necessary hardware. When perusing your available options for a service provider, look for one with these eight key components:1. Longevity. Ask how long the suppli-er has been in the market. Tenure and experience will ensure your vendor is not a y-by-night, but instead has been in the industry for a signicant amount of time and understands the complexity of payments processing.2. Support. Fully managed payments services that include 24/7/365 dis-tributed support infrastructure from global network operations centers will provide you with the help you need during installation, as well as for any troubleshooting. Fully man-aged providers also support ongoing necessities like software updates, so retailers don’t need to remember to do it themselves. 3. Certication of security. Security is paramount to any payment transac-tion, so look for a service provider that has been successfully PCI DSS certied. 4. Ease of use. Find a service pro-vider that offers ease of use for both installers and operators. Choosing Managed Network Service Provid-ers (MNSPs) certied by Gilbarco and Verifone ensures operators get a payments technology that plugs into pump hardware and accommodates EMV at the pump without requiring network conguration or additional hardware and software. 5. Communications system options. An owner/operator may have its own preference on the kind of data communications network it uses for an individual site; additionally, some-times the type of network is dictated by the best available options in an area. Look for a service provider that supports multiple types of data com-munications networks – from DSL to dual radio routers and everything Fuel Retailers: Get More for Your Money When Upgrading to EMV-Compliant HardwareTo get the most out of your upgrade project, ensure your technology partner(s) help you realize these eight qualities. By Dan Lyman Photo courtesy of Sergey Ryzhov – www.123RF.com OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com29in between – so you can get the best option for a given site.6. Reliability. This one probably goes without saying: Fuel and convenience retailers need high availability for critical infrastructure like payments technology because a nonfunctioning payments system at a fuel pump can cost a retailer sales. Look for provid-ers that have demonstrated over time that they can maintain non-stop high availability for their infrastructure, including automated failover, so that store personnel don’t need to get involved in the case of an unplanned outage or an event that could impact uptime.7. Fast replacement service. Related to the last point: Sometimes, things happen; equipment occasionally will go down. Choose a provider that has demonstrated quick turnarounds for replacing impacted equipment. Again, the longer a pump has to be shut down, the bigger the revenue losses a retailer will incur.Bonus: An Eye Toward the FutureThe previous seven qualities focused on what a service provider should have now, but the nature of innovation means ongoing improvements. So much of the payments business has been built on dial-up and point-to-point telecom technology, but those are be-coming a thing of the past. Convenient, modern options for customers such as app-based or mobile phone payments, and new capabilities for retailers, such as sales data analytics, use cloud envi-ronments; additionally, more retailers are using infrastructure options like software-dened wide-area networking (SD-WAN) to expand and interconnect their networks.The future of payments processing lies in these new technologies, but it shouldn’t be up to the retailers to for-mulate a comprehensive understanding of how to implement and support them. Instead, look for a payments provider with solutions that keep pace with how technologies are evolving across the wider world while tting within fuel and convenience environments, both now and in the future.Dan Lyman is head of payments mar-kets, North America at Transaction Network Services, a Level 1 PCI DSS certied service provider and trusted partner to the payments industry, offering a broad portfolio of secure commerce solutions that includes parking reservations, unattended pay-ments, point-of-sale services (POS), ATM connectivity and secure man-aged processing. OILMAN COLUMNADVERTISE WITH US!Are you looking to expand your reach in the oil and gas marketplace? Do you have a product or service that would beneﬁt the industry? If so, we would like to speak with you! We have a creative team that can design your ad! Call us (800) 562-2340 Ex. 1 OilmanMagazine.com/advertise Advertising@OilmanMagazine.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com30Working remotely has drastically shifted work processes across every industry; however, the effects on the energy industry specically seem to be more entrenched. In many cases, com-panies have been forced into a digital transformation for which they were not ready. Before the COVID-19 pandemic and the massive drop in crude oil prices and demand, most companies that hadn’t already started their digital trans-formation efforts at least had those projects on their books for 2020. Many responded to the economic hardship by slashing capital budgets and moving such projects into the “discretionary” column. Now, forced to look at how they do business, how more people than ever work outside an ofce build-ing, and how their enterprise software reacts to these massive process chang-es, many companies are now taking a long hard look at the software they use to run their business.We’re not just talking about Excel (although that favorite tool of choice is getting a workout during the pan-demic). Many companies are expect-ing some of the processes and work-from-home (WFH) policies to become permanent or nearly so. Despite the downturn, many are looking at whole-sale changes in their enterprise software and global processes to aid in their digi-tal revolution. For some, this includes rethinking big investments in enterprise resource planning (ERP) software, commodity trading and risk manage-ment systems, and how they run and support those systems.Digital Transformation – YOU ARE HEREThe response to process and software changes depends on where you, your department and the entire company are in your digital transformation journey. For early adopters who bit the bullet, you could be hailed as a genius in hind-sight. Those still on their journey are often speeding up to make that last push to completion in case another round of pandemic, locusts or other plagues circles the globe. For those followers and laggards who treated digital trans-formation as if it were a fad that would just “disappear like MySpace,” you may nd yourself the proverbial coyote riding your “Acme Digital Transforma-tion rocket” off the COVID cliff. But, thanks to technology (not from Acme), there is hope.As organizations, including major software vendors, moved to Agile frameworks to deliver software and implementations more quickly, a convergence of technologies and Is Now the Right Time to Rethink Your Enterprise Software Strategy?While it may be counterintuitive to make sweeping changes to enterprise software strategies amid a pandemic, reduced budgets and headcounts, the payoff could be substantial in the long run. By Rob RobertsImage courtesy of Muhammad Ribkhan – www.123RF.com OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com31services fell into place. Sure, cloud services have been around quite a while, but the incredible push to move infrastructure to cloud platforms and software as a service (SaaS) has been nothing short of amazing. With the latest release of rapid deployment low-code/no-code tools from Salesforce, Microsoft, Amazon and Google/Alphabet, the toolsets are now designed for two speeds: fast and faster. Faster Than the Bits Can Travel?Changing the software and changing the processes are related, but two different paths. Given the recent process changes thrust upon them are fresh in the minds of managers and corporate executives, many are looking to lock in, codify and automate the best of those changes, and nd a way to x the others. During that time, those same stakeholders began to see the cracks in their enterprise soft-ware, especially the ERP systems they use to manage so many functions across the organization. In recent conversations with managers in the energy and chemical industries, I’ve heard some common themes:• “Our people could make changes manually, but the software would not support the changes fast enough.”• “The software had unexpected limi-tations based on assumptions made for all industries, but not specic to oil and gas.”• “We’ve started looking for software that can change as fast as we do/need to and automate repetitive tasks.”While it may be counterintuitive to make sweeping process and software changes in response to the COVID-19 crisis while costs are being slashed, many executives have found that making the change can reduce their budget foot-print. With the traditional ERP imple-mentation lifecycle typically ranging from six months to two years, how can the change be justied? By merging cloud technologies, process changes that have already occurred and new software supporting rapid imple-mentation cycles (and Agile continu-ous releases), a new ERP or other key software can be rolled out in under six months. That includes big players like SAP (though continuous releases are harder there). For instance, Micro-soft’s Dynamics platforms and Oracle’s Netsuite, both as SaaS offerings, can be installed in days and rolled out in a few weeks, depending on data requirements.Simplifying and Streamlining with Less IT HelpSimilarly, moving other applications to the cloud and simplifying the users’ virtual desktops into workow-driven processes drive both cost savings and quick process changes. Whether you’re moving a trading system or an as-set maintenance system, today’s cloud platforms often make migrations easier, although the biggest benets are seen when migrating to cloud-rst solutions (those designed to take full advantage of cloud components.)As more software opts for a look that incorporates a known click-and-feel (making everything look like Outlook and Excel), users can tolerate – and generate – change more quickly. With open application programming in-terfaces (APIs) making it easy to use drag-and-drop, using low-code/no-code platforms like Salesforce Lightning, Microsoft’s PowerPlatform and Ama-zon’s Honeycode to drive automation, the new business users can drive innova-tion from their own desktop (from the ofce or their kitchen). These collabora-tive workows – along with insightful self-service analytics using PowerBI and Tableau – save on development and support costs while cloud migration can push non-tech companies out of the server business.If you think it’s time to take a closer look at your software and your processes to accelerate your digital transformation initiatives, or you think it’s high time to look at moving apps to the cloud, Op-portune can help you dene a strategy for automation and operating with less.Rob Roberts is a director in Opportune LLP’s process and technology practice. He has over 20 years of experience in the energy industry (upstream, downstream, oileld services) focused on the delivery of mid-to-large-scale ERP implementations involving process optimization, system integration and application automation. His focus has been on the architecture, design and implementation of cross-functional solutions, including process integration, mobility and business analytics. He has been involved in multiple full life cycle system implementations from pre-sales and system planning to implementation and support. Prior to joining Opportune, Roberts was responsible for ERP and technology services for multiple private consulting rms. OILMAN COLUMNADVERTISE WITH US!Are you looking to expand your reach in the oil and gas marketplace? Do you have a product or service that would beneﬁt the industry? If so, we would like to speak with you! We have a creative team that can design your ad! Call us (800) 562-2340 Ex. 1 OilmanMagazine.com/advertise Advertising@OilmanMagazine.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com32Geographic information system (GIS) data enables collecting and analyzing spatial and location-based information and extracting valuable insights from it. Here are some of the emerging ways companies can use GIS in oil industry projects.Getting More Familiar with World-wide Oil OperationsWhen oil professionals have a broader understanding of current or historical activity in the industry, it becomes easier to decide where to focus future efforts to get the best outcomes. However, nd-ing reliable oileld data is not as straight-forward as you might think.The ROSA GIS Project sought to reduce some of the known challenges by using a pyramid structure when categorizing information. The rst level included data from countries with at least 1,000 million tons of oil in reserves. Re-searchers applied their acquired knowl-edge throughout their work, eventually making the content even more specic with each level of information created. They concluded that this work gave a global look at the most prominent oil extractors and where those companies operate. The data also included details about how the brands use technology to achieve their aims. This kind of compre-hensive database could prove instrumen-tal for businesses making decisions about how and when to expand their world-wide footprints. Studying the Impact of Oil Infra-structure on Marine LifeEnvironmental activists commonly discuss the negative impacts of the oil industry on marine life while overlook-ing the positive aspects. For example, decommissioned rigs often become arti-cial coral reefs. Moreover, oil helps feed many organisms found in deep-sea regions. The lack of light in those parts of the ocean means oil and gas provide energy for bacteria living there.A collaborative scientic research pro-gram seeks to learn more about how the oil industry affects marine life in the North Sea through its collective actions. GIS software will help participants draw many of their conclusions. The program, known as INSITE, now has a GIS-based data-sharing portal called INSITE Interactive. It gives scientists access to oil sector information that they could not otherwise see. Richard Heard, the program’s director, comments, “This tool has been devel-oped to provide a robust process for scientists to identify data collected by industry during their operations, which could be used to further research into the role of anthropogenic structures in the ecosystem. The new portal provides a GIS-based reference for sourcing industry-held ecological data relating to offshore structures.”Increasing Transparency Between Multiple PartiesGIS software helps people use infor-mation collected by global positioning system (GPS) satellites. Many forward-thinking construction companies com-bine GPS survey equipment with digital terrain modeling and topographic data collection. The benets of these ad-vanced technologies mean that clients have a clearer idea what to expect during the early stages of a process and don’t ex-perience costly, frustrating surprises later. Oileld data could become crucial for increasing project success rates and boosting visibility in countries known for their petroleum exportation. In Pakistan, government ofcials recently began using a dashboard for managing and monitor-ing exploration and production data. The tool lets people use GIS in oil to access real-time information and guide their de-cisions about suspended or shut-in wells, delayed drilling or other challenges. Photo courtesy of GeoffreyWhiteway - FreeRange StockOILMAN COLUMNHow Does the Oil Industry Benefit from GIS Software? By Megan Nichols

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Oilman Magazine / November-December 2020 / OilmanMagazine.com33Since parties in Pakistan’s provinces get paid royalties on oil and gas production and consumption, there was a growing need for up-to-date data to inform future payments and ensure fairness. People using the tool can lter information by company or basin and then export it as GIS layers, PDFs or Excel spreadsheets. The program also contains specics for current wells and upcoming plans. Learning How Local Requirements Impact Oil AvailabilityMany places in the United States have oil and gas setback requirements. They stipulate the minimum distances between oil and gas activity and the locations of homes, schools and businesses. Research-ers in Colorado investigated whether cer-tain setback distances affected oil and gas availability. The team restricted its study to that single state and used both GIS data and publicly accessible information.The ndings showed a direct relationship between the state’s annual resource revenues and the mandated setback distances. The span ranges from 500-1,500 feet depending on nearby developments. Setbacks of 1,500 feet cause a loss of 0.1 percent or $500 million for Colorado’s gross domestic product. However, the setback costs for revenues balloon to $4.5 billion when increasing the required distance to 2,500 feet. Daniel Kafne, an economics profes-sor and co-author of the study, remarks, “In some counties, increasing the setback just 500 feet had major consequences in terms of accessible oil and gas.” This kind of data makes it easier for oil com-pany lobbyists to argue against increasing these distances, as some ballot initiatives in Colorado tried to accomplish. This ex-ample shows that seemingly small changes can make signicant differences. Enhancing Responses to Oil SpillsOil spills can become public relations disasters for the companies responsible. Fortunately, GIS software emerged as a crucial advancement that supports when and how these enterprises respond. There are then more opportunities for oil brands to ensure they do everything possible to minimize the damage, whether to the envi-ronment or their reputations. Ofcials in Newfoundland hired con-sultants to explore how to apply GIS technology to the region’s oil spill re-sponse. The Hibernia oileld sits about 300 kilometers offshore from St. John’s Newfoundland. It contains the world’s largest oil drilling platform, so planning for future spills became exceptionally important. The consultants integrated GIS technology into a database that gives accurate information to command centers and informs emergency responses. Sharon Janes, a senior consultant at the company selected for the job, explains why GIS data on a digitized platform would make such a major difference. “The problem with these [commonly used paper] resources is that they do not present information that is as complete and current as possible within an emergency situation. This is what we are excited to help change – putting this data into the hands of responders as quickly and efciently as possible.”Making Oileld Data More ApplicableCompanies tend to enjoy better outcomes when relying on statistical information in-stead of guesswork. These examples show that there are plenty of compelling reasons to use GIS in oil industry endeavors.However, company representatives that want to move forward with that op-tion should not do so haphazardly. They should rst investigate vulnerabilities or challenges that must be dealt with. They’re then in signicantly better positions to explore how GIS information could help overcome those issues and make the brand more protable in the process.Megan R. Nichols is a technical writer who regularly contributes to sites like American Ma-chinist and Manufacturing tomorrow. She also publishes easy to understand manufacturing and engi-neering articles on her blog, Schooled By Science. Keep up with Megan by subscribing to her blog or following her on Twitter. OILMAN COLUMNADVERTISE WITH US!Are you looking to expand your reach in the oil and gas marketplace? Do you have a product or service that would beneﬁt the industry? If so, we would like to speak with you! We have a creative team that can design your ad! Call us (800) 562-2340 Ex. 1 OilmanMagazine.com/advertise Advertising@OilmanMagazine.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com34Within the oil and gas industry, the pandemic set off a chain reaction of events, resulting in the largest drop in crude oil pricing in three decades. Unable to assess the continued impact of COVID-19 and severely reduced production, oil and gas companies are instead looking to achieve sustainable change in a volatile market. Restructuring is a common decision under these circumstances. A new organization model is designed, divisions are consolidated, and layoffs are conducted. Yet the typical model – cyclical to oil and gas – is no longer, by itself, a sustainable solution to realizing value in today’s crisis and tomorrow’s competitive opportunity. While leaders must play defense, dealing with the immediate needs of their business, they must also play offense, accelerating strategic priorities and positioning themselves for the future. When Wolves Are at the DoorAs an industry that thinks in decades rather than years, the rapid shifts required by oil and gas organizations to adhere to COVID-19 guidelines globally and react to production reductions from unprecedented supply constraints has caused many leaders to fall into the trap of focusing only on what is happening to the business today, rather than where they want to take the business in the future. Mandatory ofce closures and reduced asset activity have led many players to pursue dramatic organizational transformations spearheaded by a defensive position from leadership. Paramount to any operation is safety – for the workers, the customers and those ancillary to the work. Yet COVID-19 presented leaders with a unique challenge: reduce asset workers to impede the spread of the virus and potentially create risk in operational safety or implement new working procedures to continue acceptable operations and risk the health of the workforce. Either situation posed additional complexities. In a pre-COVID world, the rate of adoption and adherence would have taken months, or even years, to institute new safety policies or procedures. But in the post-COVID environment, winners have been challenged to emerge stronger, leaner and more agile at a faster pace than ever before. Leadership teams must commit to not only taking the above defensive postures, but also seeking any available window of opportunity to transform for the future. Doing so requires an aligned leadership team – with a comprehensive understanding of the full strategic enterprise – to evaluate multiple decisions to accelerate the formation of a new organization. Over the last several years, we have worked with some of the world’s largest multinational oil and gas companies, helping them transform during times of crisis, most recently during COVID-19. One striking pattern that has emerged is the acceleration of digital transformations, prioritizing strategic initiatives (and reducing the noise working against them), and attening the organization for sustainable, long-term growth. Accelerating Digital TransformationA leader playing offense when everyone else is playing defense must mobilize an often-paralyzed organization by Balancing Defense with Offense During COVID-19 By Jimmy Leppert and Rod WalkerPhoto courtesy of Zbynek Burival - Unsplash OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com35ADVERTISE WITH US!Are you looking to expand your reach in the oil and gas marketplace? Do you have a product or service that would beneﬁt the industry? If so, we would like to speak with you! We have a creative team that can design your ad! Call us (800) 562-2340 Ex. 1 OilmanMagazine.com/advertise Advertising@OilmanMagazine.comcreating the conditions for change. A crisis lends itself to a defensive stance, a reghting reaction, that can leave a workforce debilitated and unable to quickly respond if another crisis emerges. Risks and liabilities are created when leaders over-index on a defensive posture. Balancing defense with an offensive approach, however, can create alignment and energy to activate workforce talent and accelerate a new organization. During COVID-19, we have partnered with oil and gas companies to identify windows of opportunity, move quickly and drive unambiguous results. For these organizations, taking a defensive stance meant ensuring every employee utilized the best technology to drive productivity. COVID-19 required swift action by leadership to connect a disconnected workforce, including providing appropriate devices to each employee, such as laptops, external monitors, tablets and smartphones, to work from home, remain connected, share critical data, and hear the latest from the leadership team on COVID-19 restrictions. In the midst of the pandemic, many companies we’ve worked with have migrated their organizations to Microsoft Teams for real-time digital collaboration and replaced satellite Internet with high-speed WiFi. Their defensive game plans payed off: once again, workers were safe and connected. This was not, however, the digital transformation that a majority of leadership teams had planned to deploy over the next three years. Instead, leaders have had to ask, “How can we enable our workforce to accelerate the delivery of what is now essential, large-scale digital transformation in under three months?”We worked with the leadership teams to identify, align and commit to critical digital levers that would position them ahead of their competitors, post-pandemic. For one organization this entailed developing new AI predictive tools to optimize production under market constraints and, at another organization, the priority was to improve terminal reliability due to the increase in typhon disruption in South East Asia.Each digital transformation initiative was accomplished in less than three months, far ahead of the original OILMAN COLUMNContinued on next page...

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Oilman Magazine / November-December 2020 / OilmanMagazine.com36OILMAN COLUMNPrecision Mass Flow MeasurementAn ONICON BrandTHERMAL MASS FLOW METERMODEL FT4Xsales@foxthermal.com • (831) 384-4300• Accuracy compliant BLM 3175 & API 14.10• Data Logger with 7-year history• Gas-SelectX® gas selection menus• Advanced DDC-Sensor™ technology• CAL-V™ in-situ Calibration Validation• No additional pressure or temperature compensation• Direct mass flow measurement• Low pressure drop GET A FREE QUOTEfoxthermal.com/quotecompletion dates of ve to eight years out. In fact, a senior leader challenged the team driving the AI predictive tool to add a new capability to the platform, thinking the best-case scenario would yield a prototype within several months. Yet he was blown away when the team met his challenge within seven days. Likewise, the other team improved terminal reliability by over 90 percent resulting in $20 million to $25 million in annualized revenue. Reducing the NoiseThe level of noise in an organization can be directly traced to the varying degrees of a crisis. In times of panic and confusion, defensive reactions often result in equal to or greater activity, regardless whether that heightened activity will drive value under the constrained circumstances. Often, decentralized task force groups are stood up across divisions to seek solutions specic to a functional area, resulting in copious work and misaligned action plans that over-resource employees and deprioritize key operations. Financial losses are attributed to the crisis and an organization will announce workforce reductions, ironically laying off those whose role was deprioritized in light of the crisis, but who still contribute to a critical function of the business. The result is an organization with fewer workers who must now make up for the losses incurred. Sound familiar? In a cyclical industry, oil and gas companies follow this defensive pattern in volatile markets, resulting in constraints when the market is on the upswing and demands achieving more with fewer resources. Leadership at an OCTG manufacturer in the U.S. struggling to get their goods through nal production found themselves asking, “What is under our control that can dramatically be streamlined or simplied?”The solution was simple – do less. Turns out the inspection protocol included looking for issues that were within an acceptable level of variance and visual inspections were creating more issues than they were solving. An initiative team quickly advocated for and installed a new digital solution to eliminate this bottleneck.The difference was dramatic. Enabled by digital solutions, the leadership team saw critical initiative teams move at a speed that outpaced the organization, which became a catalyst for long-term programs to be fast-tracked and for a growing market opportunity to be capitalized on.Flattening the OrganizationA sustainable restructuring institutes the conditions for leaders at all levels to be empowered to drive change. A key characteristic of a sustainable organization is exibility to rapidly pivot in new circumstances. Without this enabler, organizational restructurings must occur more frequently to alter static operations. Knowing the toll a restructuring can take on the workforce, the leadership team at one oil and gas company we’ve worked with gathered to determine what offensive approach could be taken to create a long-standing and sustainable new organization, post-pandemic. As initiatives were removed and noise was reduced, the leadership team designed a attened organizational model to eliminate redundant, cascading levels and provide clarity and transparency to the organization. Leadership also added one key step to the process: evaluating current and future hires based on behaviors, in addition to the traditional past performance and skillset assessment. In determining new roles and responsibilities in the emerging organization, leadership started with those who embraced and modelled the behaviors they wanted to see. The conversation felt very different than before. Rather than considering an individual for a role based on their long-term tenure or relationships across the organization, individuals at all levels were assessed based on potential to exceed expectations because of what leaders had seen demonstrated during the crisis and would need in the new organization. For many oil and gas companies this is a tectonic shift: restructuring based upon future impact, not simply performance-based ranking from the past. Harnessing Lessons from VolatilityLeaders in every organization are facing a new challenge and an unrivaled opportunity. The last few years have brought major shocks to the oil and gas industry and 2020 was no exception. The COVID-19 pandemic has the potential to set back organizations for years as they tend to nancial losses and an overwhelmed workforce. Yet, leaders also have the opportunity to harness the lessons from this company on balancing defense with offense. Leaders who can act both defensively – acknowledging the criticality of responding to the pandemic as key to enabling the opportunities in crisis – and offensively to accelerate long-term strategies, are given a unique chance. By acting now, leaders can take advantage of opportunities that are yet to be discovered while also sustaining the behaviors from COVID-19 to prepare their organization for the future. Jimmy Leppert is man-aging director/oil and gas practice leader and Rod Walker is presi-dent of consulting at strategy execution and change management rm Kotter, helping leaders bring speed and scale to the implemen-tation of their most pressing strate-gic priorities. They can be reached at jimmy.leppert@kotterinc.com and rod.walker@kotterinc.com.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com38Innovation has always been a key com-ponent in the success of the offshore oil and gas industry. New and improved procedures coupled with enhancements in technology have paved the way for economic gains. Lube oil ushing found its way into the industry’s arsenal of weaponry, although not in recent years. This process originated more than 20 years old but has yet to nd it-self entered into the standard play book of all oil and gas companies.According to Michael DalDegan, senior operations manager for Gly-Tech Ser-vices, Inc., lube oil ushing is dened as the process of removing harmful con-taminants from rotating and hydraulic systems. Sometimes referred to as a hot oil ush, oil is circulated through the equipment’s lubrication system at an increased velocity resulting in turbulent ow. Metal shavings, rust and dirt that enter the system during construction and maintenance are then removed. Equipment containing lubrication sys-tems includes gas turbines, compressors, large electric motors and pumps, as well as pump gearboxes.The process can be compared on an elementary basis to an automobile en-gine and the oil that circulates through it. Much like changing the oil in an automobile to avoid dirt and possible shavings damaging the working parts of the engine, lube oil ushing refers to the procedure as circulating the hydraulic uid and cleaning it to remove harmful particles. A screen is inserted in the ow path and captures particles to measure contamination. One might think this process would be seriously valued and utilized by all oil and gas companies; however, that is not always the case.“Not everyone initially sees the value in lube oil ushing,” says DalDegan. “Gly-Tech’s lube oil ushing business is a mixture of calling on customers who are not necessarily familiar with the pro-cess, but a good portion of it is repeat business.”Normally conducted during the com-missioning of new equipment or after major maintenance, the concept of lube oil ushing remains consistent for each project with variations in design, setup and process. Equipment and ow path design are not always the same. Flush-Flushing Rotary Equipment of Contaminants and Excess Costs By Nick VaccaroOffshore platform under construction. Flushing services occur at this stage and then on the commissioning side afterwards.OILMAN COLUMNAir transportation to an offshore platform is standard. I thought the helicopter landing with personnel speaks to the offshore audience.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com39ing contractors like Gly-Tech must evaluate customer piping and instru-ment diagrams (P&ID), determine ow path, and specify pumps and hoses to be supplied and used.The process of lube oil ushing in-cludes interconnecting piping and coolers. Although lube oil coolers and other factory assembled equipment are cleaned by the manufacturer, DalDe-gan indicates that Gly-Tech has ushed these components in the eld to ensure they are not compromised. In DalDe-gan’s experience, lube oil coolers are usually found to still be contaminated and require extensive ushing to achieve the level of acceptance published in the manufacturer’s cleanliness specications.DalDegan identies lube oil ushing as a staged process using specialized equipment. The system of equipment includes a holding tank that may be potentially heated. In cold weather applications, an external heat source may be used. Pumps must be sized to accomplish turbulent ow. Additionally, the ltration system must be designed to handle the required ow rate. The lter elements gured for the project must be sized appropriately to achieve the required cleanliness. A ow meter is included in the setup to measure ow rate. To reverse ow, a manifold system is designed for the ush. Lastly a basket strainer is equipped with a 100-mesh screen.According to DalDegan, when listing the steps of a lube oil ush, a strong quality management program is neces-sary to ensure equipment is clean and functional. Specic to the point, hoses are shipped to project sites with both ends capped to keep their interiors from becoming dirty and compromised. Additionally, anges to be included in the setup are shipped with their ends capped as well. Filters are packaged in zip up slip covers to protect them from weather.When planning a ush, environmental concerns are addressed in procedure and setup. Containments are placed at connection points and equipment that could potentially suffer from a leak and lead to an environmental spill. Proactive behavior includes using over-engineered hoses in the ush.“We use high pressure hose rated at 1000psi,” says DalDegan. “Typically, we’re working with pressure ratings less than 150psi.”Before starting or setting up for a lube oil ush, all of the components of the lube oil system must be identied, including the piping. This aids in determining where and how to circulate the equipment.This is the results of a screen test showing contaminants found in the piping.OILMAN COLUMNContinued on next page...

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Oilman Magazine / November-December 2020 / OilmanMagazine.com40To ensure hose success and avoid leaks while circulating lube oil, specic t-tings are used. Connectors are either anged or JIC ttings. This allows for a locking scenario to occur. Quick disconnect ttings are frowned upon. During the staging of equipment and hoses, grounding and bonding take place.Although their equipment is managed according to their company’s quality management program, DalDegan states that a proving ush takes place only on Gly-Tech’s equipment arranged in the setup. Customer equipment is bypassed with jumper hoses. Circulation is initiated and a screen test is conducted to measure or check for particles of contamination. These particles are measured in microns. Upon verifying the system is clean, the jumper hoses are removed, and customer equipment designated to be cleaned is then tied into the circulation setup. “After approval that our equipment is clean, we start our actual ush with a baseline screen,” says DalDegan. “It’s based on the specs of the rotary equip-ment being ushed.”The ushing action typically consists of a four to eight-hour time span to monitor the particle count. After the time span is completed, the ush is temporarily shut down and the screen is pulled from the ow path. A particle counter is used to measure the contaminating material collected on the screen. This process continues until the lter count is found to be acceptable, which may take several four to eight-hour ushes. Contamination and cleanliness desired are the deciding factors.“The number of ushes conducted is dependent upon the specications and how clean the customer wants the system,” says DalDegan.When discussing cleanliness speci-cations, an important factor to un-derstand is the standard or level to which it is measured. NAS Cleanliness codes serve as that standard and were originally developed in 1964 to address aircraft component contamination. Because no other standard was avail-able, NAS codes were broadened to include industrial hydraulic systems. Contamination classes are identied by a number ranging from 00 to 12.Understanding the value in the process of lube oil ushing, Leonard Dickhaut, commissioning manager with Compe-tentia and contracted to Equinor, says that it takes a level of experience to recognize the need for the process.“The industry has evolved in seeing the need for lube oil ushing,” says Dick-haut. “The process needs to be taught in school as a good deal of young rotary equipment engineers need to be educated on the process.”Using customer pictures and P&ID’s, Gly-Tech determines ow path and then decides how to alter piping and hoses to correctly circulate through to accomplish a clean lube oil system.Specic to the equipment and system being ushed, a pump must be sized accordingly. In this image a pump is connected to lters.OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com41According to Dickhaut, variations can be made when lube oil ushing. At times, an increase in turbulent ow and heat is required to achieve the level of cleanliness desired. Additionally, the size of the pump used to circulate the product is directly related to the actual size of the piping through which this turbulent ow occurs.“Heat moves dirt and evaporates,” says Dickhaut.Dickhaut indicates a good practice in lube oil ushing is to include a vacuum dehydrator in the process. A vacuum dehydrator is a piece of equipment that is included in the ow path through which the oil travels. It includes a heating element that removes moisture from the oil. “During a ush, moisture in oil shows up as a particle,” says Dickhaut, stat-ing that the process of applying heat is specically useful in warm climates, such as in the South and the Gulf of Mexico. Tanks are atmospherically vented and serve as an intrusion point for humidity. Moisture is the byproduct which contaminates the oil. Heating that lubricating oil during the ush with a vacuum dehydrator removes that moisture product.History shows that the contamination factor is considered as offshore plat-form components, such as turbines, are shipped in crates in an attempt to maintain cleanliness. Once they are opened and exposed to the atmo-sphere, they are contaminated and must be ushed. After the commis-sioning process of a platform takes place, lube oil ushing is needed.According to Dickhaut, the expenses associated with the offshore oil and gas industry can easily be described as greater than those experienced with land operations. Logistics serve as an expensive commodity when discussing offshore costs.“If you’re talking offshore,” says Dickhaut, “you’re talking at least three times longer than on land which adds increased costs.”When considering the budget matched to rebuilding a turbine, Dickhaut speculates that the rebuild costs are 50 percent of the purchase price of a new unit. The downtime and loss of production must also be added. Respectively, a new turbine price tags in the neighborhood of $10 million. An immediate argument can be formulated for the need in maintaining equipment to avoid costly repairs and the trickle-down effect caused as a direct consequence. Lube oil ushing has proven to be an economically viable option in the maintenance process of rotary equipment.“There is a clear message to take away when thinking about the process of lube oil ushing,” says Dickhaut. “There is a greater value in doing it now than not doing it in the long run.”Nick Vaccaro is a free-lance writer and photog-rapher. In addition to providing technical writing services, he is an HSE consultant in the oil and gas industry with eight years of ex-perience. Vaccaro also contributes to SHALE Oil and Gas Business Maga-zine, Louisiana Sportsman Magazine, and follows and photographs Ameri-can Kennel Club eld and herding tri-als. He has a BA in photojournalism from Loyola University and resides in the New Orleans area. Vaccaro can be reached at 985-966-0957 or navac-caro@outlook.com. Depicted is a vacuum dehydrator. Offshore work falls under the regulations of the American Petroleum Institute (API). Equipment, including vacuum dehydrators, must meet the requirements of API Recommended Practice 14C.OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com42OILMAN COLUMNOILMAN COLUMNIn 2020, industry saw big, industrial operations truly pivot toward tech-nology, as the growing demand for data, information and visibility has become amplied to the extreme. Simultaneously, we have seen the combination of a heightened aware-ness to safeguard employees and the need to deliver cleaner, greener sup-ply chains. This perfect storm has brought asset performance manage-ment (APM) to the fore as a critical lever in both improving operations and mitigating the impact of detri-mental issues.The key driver behind APM is data democratization. Data needs to be channeled to the right people and areas of the business where the re-quired analysis can be implemented. This process needs to be slick and seamless, so it’s unsurprising that businesses are now infusing this data with articial intelligence (AI) to provide guidance and prescriptive action.Optics optimization is the second driver. In essence, this is the contin-ued optimization of balancing risk, cost and performance to ensure the right investment in an organization’s asset strategy. The nal element, and perhaps the most important, is the workforce. Ensuring safety, while mitigating operational impact has been a fundamental challenge during the pandemic and one that will linger.Strategize, Visualize, RealizeStrategy is fundamental to suc-cessful APM, including strategy of deployment, and where, how and why it sits within the entire op-eration. It informs investment decisions and ensures the right time and money are being spent on the right assets to meet corporate objectives, not to mention the return on invest-ment informing other major business decisions around changing systems, processes and cul-ture.This is all supported with predictive ana-lytics. This means leveraging advanced pattern recognition and AI to build up applications at scale, to turn insights into money saving opportunities. By identifying an anomaly before it becomes an issue, alongside providing remote guid-ance for correction, businesses are realizing incredible value.Bringing People, Plants and Possibility TogetherAPM isn’t just a concept born to maintain operations during a pan-demic. APM is a foundational tech-nology that brings people, plants and possibility together to make the orchestration of operating and maintaining equipment that much easier and more effective. This is something that will deliver value to businesses, long after the specter of COVID-19 has passed.To learn more, visit https://sw.aveva.com/partners/microsoft. How Businesses are Engaging Asset Performance to Improve Competitive Advantage By Kim CusteauPhoto courtesy of AVEVA.Kim Custeau develops and leads the strategy for in-dustrial asset performance management solutions that help AVEVA customers improve asset reliability and perfor-mance to maximize return on capital investments and increase protability.Custeau has 30+ years of experience in industrial asset management software and services. Prior to AVEVA, she was responsible for the strategic direction, commercialization and development of Schneider Electric Software’s asset per-formance software portfolio globally. Her remit includes global responsibility for delivering solutions that help cus-tomers improve asset reliability and per-formance to maximize return on capital investments and increase protability.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com44FEATUREOver the last several years there has been a digital transition taking place in industries across the board. The oil industry was no exception. It realized the positive impact that customizable software could have on operations and, after careful consideration, companies were following the trend toward prot and safety optimization. Through predictive analysis, big data, machine learning, articial intelligence (AI) and the Internet of Things (IoT), the change has truly been revolutionary. The transition is not simple by any stretch of the imagination. From major oil and gas corporations to minor EPCs, it’s quite the task to convert an entire operation to digital. Is it easy? No. Is it worth it? Absolutely. There are hiccups, of course, but the positive vastly outweighs the negative. Gradually, companies started to try it and nd the best t for their operation. Something that may have worked for them ve years ago may be outdated now and something more innovative may make more sense at this time. The software market, much like the oil market, is always evolving and new players are always entering the game. In our normal, everyday life, it’s just a matter of guring out what works and what doesn’t. But it’s 2020 and this isn’t our normal, everyday life anymore. The pandemic changed everything, for everyone; that’s a given. No person or company was untouched by the effect of it and everyone had to gure out how to limit or completely eliminate human interaction for an indenite amount of time. It was a panicked rat race to gure out how to completely rely on technology and machines to continue to remain in operation. According to a new EY survey, the 2020 Oil and Gas Digital Transfor-mation and the Workforce Survey, 90 percent of oil and gas executives agree that investment in technology and workforce is essential to surviving current market conditions. In fact, 58 percent said the COVID-19 pandemic has made investing in digital technol-ogy more urgent, with a majority (51 percent) planning to invest a moderate amount and a further 29 percent plan-ning to invest a great deal relative to their total budget. “The COVID-19 pandemic has ac-celerated the timeline for some digital technology adoption from ve years to three months,” says Andy Brogan, EY Global Oil and Gas Leader. “The cost savings digital can deliver are critical for survival in today’s low-price environ-ment, as oil and gas companies look to gain greater operational efciencies and drive productivity across the value chain. However, to capture the full value of these investments, oil and gas companies need the skills to harness and use the technology to its maximum potential.” According to the survey, nearly half (46 percent) of companies, on average, do not have the skills within their current workforce to realize the investment on their adopted technologies. Companies recognize a lack of maturity in many skills around digital technologies they have deemed as critical – on average, the gap between importance and maturity is 36 percent. For instance, the increasing availability of data analytics and insights was cited by 43 percent of executives as one of the top three trends that will positively impact their Investing in Technology and People – Bridging the Digital Gap By Sarah SkinnerImage courtesy of asnia – www.123RF.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com45FEATUREcompany’s business growth in the next three years. Yet, the gap between strategic importance and maturity of key skills was one of the widest on data analytics at 59 percent. “The sector is now in a critical period in which the role of technology will only accelerate, the volume of data will only grow, and competition for talent will only increase,” says Tim Haskell, U.S. Oil and Gas People Advisory Services Leader, Ernst & Young LLP (EY U.S.). “The challenge for oil and gas is immediate. It’s not enough for companies to simply spend more on technology. Investment in the work-force is needed to scale and integrate technologies and ultimately capture the intended value. Companies must nd an investment balance while addressing market pressures. Otherwise, the indus-try will lose crucial years and potentially a generation of workers.” Essentially, there are two problems here: One being a critical need for a rapid technological data transition and the other being a human technological transition. If employees aren’t trained and equipped with the knowledge of how the software or technology works, then it’s a useless tool to have and one that is being wasted. It’s critical, now more than ever, that employers prepare those that work for them with the skills needed to maximize their software as-sets. There are many different oil specic jobs where big data and analytics are in-volved. OspreyData is a company that has brought together seasoned, veteran articial lift experts to guide them in building their Production Intelligence solutions. It is a company that can ef-fectively identify suboptimal conditions, failure root causes and optimization opportunities across mass amounts of historical data.Its well data technology allows thou-sands of wells to be managed with ease and gives engineers, operators and techs a unied solution that enables them to see trends, nd anomalies and x problems quickly. By having this infor-mation available to them, it improves operations and raises protability by leveraging the digital oileld. I was in contact with Richard West, the vice president of sales for OspreyData, on its well data technology solutions.Can the technology detect or pre-vent rod parting on conventional pumping units?Detect – yes. Our dynacard descriptors can indicate a rod part based on dynacard shape. We also have models looking for changes in the other sensors, such as load, that can indicate friction or parted rod.Prevent – that is up to the operator. As Continued on next page...ADVERTISE WITH US!Are you looking to expand your reach in the oil and gas marketplace? Do you have a product or service that would beneﬁt the industry? If so, we would like to speak with you! We have a creative team that can design your ad! Call us (800) 562-2340 Ex. 1 OilmanMagazine.com/advertise Advertising@OilmanMagazine.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com46FEATUREmentioned, we have models to detect friction, which could lead to a rod part in the future. Can it show at what depth there is a hole in the tubing?We have developed a “hole in tubing” model for rod pump during previous proofs of concept, but [we’re] not aware if it can show what depth. For gas lift, we have developed an “ap-parent open valve” model. If a hole was present between two valves, the model could potentially ag there is a high in-jection point, indicating a potential hole.Speaking to the Venkat, we can also de-velop a more sophisticated model using our transient model and history match-ing to indicate shallower holes in tubing. Can it show rate of feed in the well-bore as to set intermittent timers on ESPs and conventional units?When we do history matching and optimization models, we calculate the productivity index for the well which is essentially the “rate of feed.”ESPs are designed for a high rate and are expensive. Operators like to keep them running and not turn them on and off all the time. Having said that, our pump performance curves can indi-cate if not enough uid is entering the pump and is in a down thrust position. If that is the case, it’s time to downsize the pump or, in this case, put it on an intermittent schedule. For a conventional rod pump unit, we don’t necessarily calculate feed rate, but we measure pump llage and pump speed. These measurements can be used to guide someone setting off their pump controller. For intermittent plungers and gas lift wells, we can use indirect measurements and calculations like plunger velocities, load ratios and critical rates to help us determine optimum ow settings.Can it detect pump failure before it happens on subsurface temperatures?We have developed a pump failure de-tection model for rod pump and, similar to the rod part model, we have dynacard descriptors that can indicate potential failure. From what I can tell, none of our rod pump models incorporates temperature. For ESPs, we have developed models such as gas in pump, and gas lock that can indicate a potential shutdown, which incorporate several sensors, including temperature. OspreyData has developed solutions with data from thousands of wells from leading upstream companies and have worked to advance their machine learn-ing capabilities, by listening to customers to build solutions that operators want. By doing this, they’re working with the people behind the scenes to ensure they have the knowledge to operate effective-ly and efciently. They have a web-based tool called Production Intelligence Dashboard that features congurable dashboards, lift-specic visualizations, centralized le storage, and collabora-tion tools to access les and make com-ments. Because it is web-based, it can be accessed from anywhere. From EY’s articles, “Technology can light the way, but do you know where you’re going?” and “Low prices and the COVID-19 demand slump make embracing and integrating technology a necessity,” the majority of their survey respondents’ key priority for investment in the value chain is operations. They are the main focus for companies in the industry because they represent the big-gest cost center, and therefore a prime target for seeking efciencies. The key attraction of digital technology for many oil and gas rms is the opportu-nity to scale back their reliance on costly and time-consuming manual operations. This is the area OspreyData is benet-ting with its well technology. Operations are benecial, but a strategic approach is usually best when consid-ering investment strategy in the value chain, since efforts at change often impact multiple areas of the business. Secondary priorities in the value chain are maintenance and reliability (25 per-cent) and logistics and supply chain (19 percent), but 96 percent of respondents are planning to invest in these two areas as well. Less attention is being paid to nance and human resources, though a majority said they would devote at least some capital to these areas. Digital tools do more than enable communication and collaboration. They allow engineers and operators to plan and monitor operations remotely, automate manual tasks and streamline processes, and support operational integrity and process safety. Interest-ingly, the COVID-19 environment and resulting work-from-home policies have the potential to expedite some of the change necessary to support full inte-gration of digital technology across an entire organization. Digital technology supports social distancing, allowing em-ployees to work efciently from remote locations, which will likely be a necessity throughout 2020 and beyond. The last several months have proven that oil and gas companies can operate successfully in digital platforms, supported by cloud computing.A company’s biggest assets are its people and its technology, and the two need to work together like a well-oiled machine to adapt to the time we’re in right now. The greatest facility and product in the world are no good if they aren’t being run at maximum efciency. Companies need to invest in the training of their people to properly utilize their technology investment. We need these skills now more than ever because, at this point, technology needs to do what some people aren’t capable of doing and we need capable people to run these operations, most of them remotely. Whether wells are operating and being monitored remotely, or it’s the ac-counts payable department, the machine never stops. To stay ahead of the game, competency is key and protability and production will be maximized as long as companies bridge the gap and remain cognizant of the changing times.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com48Current Realities in the Oil and Gas Property Acquisitions and Divestitures MarketRiverbend continues to see a discon-nect between buyers and sellers in the property acquisition market as the oil and gas industry begins to rebound from a signicant downturn in rev-enues, activity and condence in 2020 due to the impact of COVID-19 and the Q1 OPEC price war. For success-ful transactions to occur, sellers need to come to terms with the current state of the market (access to debt/equity capital, valuations, ESG, com-modity prices, shale well spacing, “end of life”) and the value of their assets. As we enter Q4 2020, we sense a coming time whereby rational “strike prices” on assets of size become more actionable and likely to actually nd the closing table. Many existing and potential energy investors are taking a slower, more vigilant approach to investing, emphasizing patience, as the political landscape, global response to COVID-19 and world crude supply/demand continue to become apparent. Consumer condence and OPEC’s impulsive decision making are other incremental factors that have tradi-tional energy equity investors hitting the pause button, therefore piquing the interest of “new equity entrants.” SPACs are coming to the overall mar-ket in great numbers, but few have tar-geted E&P or producing assets to date. We have recently seen a SPAC, original-ly formed for oil and gas acquisitions, pivot and close on a renewable (charg-ing station) company acquisition. That said, capital intensive spaces that are particularly susceptible to commod-ity uctuations, such as the upstream industry, must lean on private equity investors for encouragement, support and partnership. On the other hand, investors are “picking their spots” and/or wading cautiously into new capital formation and/or acquisitions and weighing risks and upsides with a growing lack of dry equity powder in the market. With most talking about an oil and gas market cycle over previous decades in these subdued times, today there is more discussion of a con-trarian view of those condent of a demand recovery for fossil fuels.Factors Shaping Capital Flow in Oil and GasCommercial banks and their chang-ing (and slowing) nancial support to the upstream oil and gas industry are another factor to consider as the transaction process evolves. This bank phenomenon is due to the rise in sen-sitivity of public and equity investors related to carbon capture, overall ESG mindsets and a string of loan losses in E&P-land. Additional aspects of the current commercial bank drivers and attitude include the year-to-date signicant drawdown of commercial paper by the supermajors, adding to the bank sector’s exposure to oil and gas. This bank nancing situation and, in most cases, a step-back, provides a unique opportunity for new, creative investors and/or private capital to propose alternative nancing solutions and timelines. In 2020, E&P bankruptcies have seen a signicant increase, in part due to the aforementioned lack of support of the banks and the reduced borrowing credit against lowered asset valuations. However, the number of bankruptcy lings have been fewer than many ex-pected at the onset of the pandemic/price war, and those corporations that have fallen victim to this year’s lings most likely had underlying nancial issues heading into March. Another de-velopment worth noting is the increase in Chapter 7 lings, in which assets are liquidated, as opposed to Chapter 11, where a reorganization is structured. This creates a unique opportunity for energized, liquid private equity inves-Private Equity’s Essential Role in the Upstream Space By Randy NewcomerImage courtesy of mindscanner – www.123RF.comOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com49tors to obtain compelling holdings alongside management teams with experience and good track records. Those who have circumvented their nancial demise have turned to alternative solutions and are pursu-ing protection and/or renegotiated arrangements with creditors to withstand the current environment. This area of the market will be very interesting to follow, and Riverbend is actively working through possible ideas as we enter into 2021.Markets to WatchRiverbend is active in all sectors of the acquisition space, inclusive of operated, non-operated, natural gas and mineral assets. The aforemen-tioned market conditions and factors are impacting investment and trans-action decisions in all of these mar-kets. As “stay at home” orders have been released, and optimism slowly re-enters the market, the stage could be set for certain sectors within the space to rally back. The natural gas market in particular may be poised for an exciting 2021 as prices have strengthened due to reduced activ-ity/production and changes in the electrical generation stack. Crude oil is another division to eye, with high base decline rates, reduced drilling and completion activity (CAPEX) and increasing worldwide demand. Many analysts are watching for a possible inventory crunch in the coming quarters, leading to escalating valuations. Most analysts are tracking U.S. (natural gas, oil) and worldwide (oil) inventory levels as demand recovers and, clearly, jet fuel (inter-national travel) is a key center under pressure.Looking ForwardWithout a signicant adjustment in total cost structures (lower) and/or increased revenue generation (com-modity prices), oil and gas ventures will be strained for cash ow and capital, likely requiring greater need in private capital support. Since commercial banks are trending to a lower loan “book,” by count and dollars, oil and gas producing com-panies need to position themselves as secure, prudent and free cash ow driven entities to attract pri-vate investors. Many existing public companies are already converting to distribution-oriented ventures with many more headed that way in 2021. Although debt and equity capital is scarce and concerns regarding ESG and supply/demand fundamentals are high, Riverbend expects to see the remainder of 2020 and 2021 bring unique acquisition and private investing opportunities to the table for those private equity groups that are well positioned with great equity and commercial bank partners. Since the start of energy private equity (funds raised by G.P.’s to sup-port the small cap E&P space) in the late ‘80’s, private equity became a signicant participant in the oil and gas upstream space. Private equity rms became great in number as institutions (endowments, insurance companies, family ofces, founda-tions) desired exposure to a growing segment of the market outside of merely investing in the oil and gas public equities. This role, 30 to 35 years later, remains essential, but is currently stied with thoughts of a declining fossil fuel world and with energy only about two percent of the S&P 500.The oil and gas market has withstood uctuations since its inception, and Riverbend has experienced cycles since 2003. The current market provides Riverbend with opportunity. We remain encouraged for the next decade of growth and performance as we look to identify unique op-portunities in the space. In a chang-ing market, ultimately anchored by diligent technical subsurface reserves assessments, and land, accounting and commercial diligence, Riverbend has a very high degree of condence to sustain and thrive through these times due to our culture and perfor-mance-based team and systems.Randy Newcomer, Jr., has served as president and chief executive of-cer since Riverbend’s inception in 2003. Riverbend has been and is very active in closing oil and gas acquisitions and divestitures, drilling partnerships and equity investments. Historically, Riverbend’s core business has been oil and gas producing property and drill-bit ready acquisitions. Riverbend is currently active in multiple drill-ing opportunities seeking operated and non-operated working interest, mineral and royalty acquisitions. The multi-disciplined and experienced Riverbend Team takes pride in being a partner of choice and in closing trans-actions in all market cycles. Riverbend has formed nine purpose-built ven-tures since 2003, with ve monetized and four currently closing transac-tions with a deep bench of equity and debt partners. For more information, please peruse www.rboil.com.Previously, Newcomer served as vice president of EnCap Investments L.P. (from 1997 to 2003), where he evaluated a multitude of nancings involving mezzanine debt and equity investments. Newcomer began his career in 1989 at Amoco Production Company serving in diverse production and reservoir engineering, business development, and acquisition and divestment roles (all associated with activities in the Permian Basin).Newcomer holds a Bachelor of Science in Petroleum Engineering from Texas A&M University and an Executive MBA from the University of Houston. Select companies that Newcomer has served and/or serves on the Board of Directors include Riverbend, Ovation Energy, Chalker Energy II & III, Navidad Resources, Parsley Energy and Mercury. Further, he has served or serves on the Board of Directors of Houston Producer’s Forum and the Advisory Boards of Yellowstone Academy and Stoney Creek Ranch. OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com50Scanning is getting easier in the oil-elds. Just ask Texas-based S Oliver and Associates (SOA), which has provided surveying services for the oil and gas industry for more than 20 years. The varied and changing require-ments of its clientele call for exibility, innovation and the ability to implement solutions to handle site-specic chal-lenges. Like most surveying rms, with increasing demand for 3D scanning, SOA welcomed any opportunity to use new technologies to improve efciency and overall job productivity. Though SOA’s primary focus is on pipeline surveys, it often receives requests for scanning. Maintaining aboveground pipeline equipment often requires detailed surveying and modeling, work that lends itself to scanning. SOA had tried scanning more than a decade ago but had never invested in a scanner until a client presented a large, complex scanning project and the rm declined. “We felt it was too big a project for our rst return to scanning,” SOA project manager Jason Trevino explains. Instead, the company concentrated on developing a exible and productive ap-proach to serving its clients. Technolo-gy was key, and one early purchase was a Trimble SX10 scanning total station, which enabled them to scan and survey with a single instrument. Challenging Site Demands a Flexible ApproachAn early job required SOA to provide a detailed survey of a 15-acre (six hect-are) tract that contained a large excava-tion exposing several large pipes. The site also held a roughly 10,000-square foot (900 square mile) area lled with pipes and equipment, including a 900-square foot (80 square mile) in-ground vault containing piping, anges,tees and valves. To have crews climb into the vault for the survey meant re-moving grating over the vault, a process that entailed costly and time-consuming procedures for approvals, safety and plant operations. To work around the constraints, SOA crews used the total scanning station to establish control points around the site. Then, for subsequent setups, they used resection to accurately determine the instrument’s location, typically Scanning Takes on New Meaning for Pipeline Work By John StenmarkAn SOA surveyor uses the Trimble SX10 for pipeline locations. An SOA surveyor uses the Trimble SX10 for pipeline locations. OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com51with residuals of 0.02ft (6mm) or less. The approach enabled them to place the SX10 in optimal places for both scanning and conventional total station measurements.Rather than removing the vault grat-ing, crews could use smaller openings to safely measure the equipment in the vault. By placing the scanning total sta-tion in strategic locations, they com-pleted the vault scans with just three setups in half a day. Surveying the remainder of the site required another half day and included scanning as well as prism measurements for precise location of the excavated pipes. The SX10 also captured high-resolution digital images of the area and equip-ment. In all, the crews visited the site on three separate days to set control and capture comprehensive data.Integrating Complex Information SOA technicians used a business software throughout the project. For the control, they combined data from the SX10 as well as digital levels and GNSS receivers. “Most of our GNSS work is done with Trimble VRS,” Trevino says. “And we have long used special software for QA/QC on our data and for computing control coordinates.” Using the software’s scanning module, SOA technicians quickly combined all the scans from the project site. Because all setups were resected onto project control, no adjustment was needed. The nished point cloud was delivered to engineers in PTX format for use in Autodesk and LFM modeling software. “SOA and its clients were impressed by the scanning, and welcomed seeing the scanning total station in action,” Trevino says. “We had scan[ned] data from three different days and everything t together nicely. It was an easy deliverable for our rst project.”John Stenmark is a writer and consultant working in the geospatial, AEC and associated industries. A professional surveyor, he has more than 25 years of experience in applying advanced technology to surveying and related disciplines. Combined point clouds provide complete data on piping and equipment in sunken vault.Finished 3D model of the vault developed from SX10 scanning data. The Trimble SX10 Scanning Total Station combines scanning and high-accuracy surveying in a single instrument. OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com52Without a doubt, technology is changing the way we live and work. This notion is nothing new or groundbreaking. For example, the energy industry has been utilizing drone technology since 2013, and processes are becoming increasingly automated universally across industries. According to a 2017 report from the McKinsey Global Institute, automation could eliminate 500 million jobs by 2030, with 73 million of those located across the U.S. This means employees who do remain will be multi-skilled, will require upskilling and will need a reduced learning curve to keep up with the increasing pace.At the same time, a new generation of workers is emerging as the experienced workforce reaches retirement or leaves the industry due to the economic downturn. This causes a widening in the experience gap, which means that industries such as oil and gas are seeing signicant gaps in the competency of the workforce. Organizations are investing billions of dollars in new technologies like virtual reality (VR), augmented reality (AR), and electronic tracking and management sys-tems in hopes that it is effective in training workers. But companies are up against the time and risk involved to get workers up to speed.As the digital revolution seeks to connect users through technology such as AR, VR and the Internet of Things (IoT), com-panies also face large room for error with the actual end user. This creates a wide variability in the one area where organiza-tions have very little data – their people. Service company Danos, with operations in the Gulf of Mexico, Permian and Delaware basins, Eagle Ford and Marcel-lus Shale plays, believes that it is eliminat-ing this variability through a competency management system (CMS). Danos says that the web-based application allows it to manage the individual learning and development needs of its workforce in a way that is consistent with the expectation of its global customer base. One technology enterprise Danos is part-nering with is the newly established iCAN Technologies LLC. iCAN is Danos’ sole provider for competency solutions. “Through partnership with iCAN, our CMS is designed to track and measure the competency prole of each eld em-ployee throughout his or her career with Danos,” says Competency Assurance and Training Manager Mark Theriot. “We can measure each individual’s unique train-ing and competency level and track the employee’s career progression.” According to Theriot, the platform can identify competencies for each skill set and provide the user with an unambigu-ous, competency-based roadmap to reach a desired role.To enhance these competencies, Danos is using iCAN’s solutions to expedite learning and development through its computer-based training (CBT). Danos has invested in course development software to provide quality, CBT modules that were created by in-house subject matter experts. The CBTs encompass all typical skillsets the company employs in upstream, midstream and downstream. Developed using 3D-modeling technol-ogy, the courses feature interactive games, characters and voice narration, making training “fun, interesting and a step above your average instructor-led course,” says Theriot. VR is also an important part of Danos’ program. Through collaborative efforts with technology partners, Theriot says the company has developed a complete virtual offshore platform. It features the major pieces of equipment found on an actual oil and gas producing facility and creates a safe environment in which the user can experience hands-on learning. “This interactive platform allows our employees to be completely immersed in Utilizing Technology to Create a Customized Training Experience By Samantha MageeiCAN and Danos are utilizing technology that gives users the ability to see the internal mechanics on platform equipment, like this heater treater vessel. This technology helps to expedite the learning curve during training as users can better understand equipment processes. OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com53an offshore environment, identify equip-ment, perform tasks and explain process-es to a qualied assessor,” says Theriot. “Employees can demonstrate their knowl-edge and skills in the same manner they would on real equipment, but in VR they can do this without consequences.”“The competency, learning and training systems through iCAN are all intertwined, which allows us to perform regression analytics on all variables. In turn, this en-ables us to select best-in-class employees, develop them and measure performance to improve their work.”When it comes to the skills and competency gap, iCAN believes the answer to the problem is fundamentally deeper than just presenting learning material in new ways.“We see it in organizations in the oil and gas industry and beyond,” says David Decuir, partner at iCAN, “when an organization uses technology to satisfy training gaps, but misses out on determining the effectiveness of the training. They often fail to capture and analyze data, replace inefcient techniques or even invest more capital in the learning tools that are effective.” iCAN looks at what it calls the “Human Internet of Things,” utilizing the same statistical, predictive algorithms that are applied to equipment through articial intelligence and machine learning. How-ever, the company takes those algorithms and applies them to the employee or end user’s technical aptitude. “This allows organizations to determine not only who is competent but also what it takes for the next workers to become competent and ready in expedited form.” iCAN says it is saving customers a mini-mum of 20 percent on training costs and in some cases as much as 40 percent. This is mainly because its scalable platform allows companies to analyze employee competency and the effectiveness of the training. Processes that at one time took trainers years to determine can now be done faster.At the same time, Decuir says it eliminates the need for in-person assessments or group training sessions, both of which can incur signicant costs in terms of time and money. “By developing unit-based competency proles for workers, organizations can identify holistically which training is work-ing, what the largest gaps are and how to close those gaps,” says Decuir. According to Decuir, iCAN has received positive feedback from its customers’ employees using the program, particularly regarding the VR and AR features of training.“They love the idea of impactful training that breaks down the mechanics of the equipment and processes. Our technol-ogy gives people the ability to see what is happening internally on equipment, which is a game changer since humans are visual learners.” Danos’ Theriot says that working with iCAN and other technology partners has introduced improvements to its training program.“iCAN Technologies has given Danos the ability to pinpoint weaknesses in the workforce,” he says. “Rather than training or re-training employees with skills already mastered, we can look at the data, pin-point areas of concern and train employ-ees specically in areas where they lack competency. This saves time and money but, most importantly, it improves compe-tency and safety.”iCAN has received positive feedback from customers regarding the available data analytics as well. “The analytics allow customers to objec-tively view their workforce and empower employees. They can truly diversify their workforce based on data driven results, as opposed to an evaluator’s opinion,” De-cuir says. “Obviously, they also appreciate the savings they see with our approach.” Samantha Magee joined Danos in 2018 as media relations coordinator. She has ten years of market-ing and communication experience in oil and gas, education and non-prots. Magee holds a Bachelor of Arts in Mass Communication from Louisiana State University and an MBA from the University of Houston. Using VR, users are immersed in an offshore environment and can perform tasks and walk through processes in the same way they would on real equipment, reducing nancial cost and risk. A Danos employee participates in training via a virtual, interactive platform with a qualied assessor. The VR platform intertwines with iCAN’s competency and learning software to perform regression analytics, allowing the company to enhance employee development through individualized training. OILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com54There was talk when the COVID-19 crisis hit that it would sidetrack, at least temporarily, the oil and gas industry’s “beyond the barrel” diversication into new, more sustainable lines of business and, in doing so, set back global efforts to decarbonize the energy mix in order to address climate change.Instead, the opposite has happened, at least for the dozen or so super-majors whose CEOs comprise the Oil and Gas Climate Initiative (OGCI).“The reality,” states a May 26, 2020, letter signed by the 13 CEO members of the consortium, “is that rather than shifting our priorities, the COVID-19 crisis is further crystallizing our focus on what is essential: health, safety and protection of the environment while providing the energy and vital products that society needs to support economic recovery.”A signicant portion of those CEOs — including top execs from Repsol, Total, BP, Equinor, Shell and ENI — have committed their organizations to a specic target: net-zero emissions by 2050 or sooner. And others around the globe are following suit, if not with net-zero commitments then with other emission-reduction programs. During a September 2020 meeting of the United Nations General Assembly, Chinese President Xi Jinping pledged that his country, the world’s largest producer of greenhouse gas emissions, would achieve carbon neutrality before 2060.Moving from a heavily hydrocarbon-leaning energy portfolio to one that is more diverse and carbon-neutral won’t happen overnight. But even fossil fuel-focused oil and gas organizations are acknowledging it’s time to get serious about carbon-reduction. “Meaningful action toward climate progress is rooted in investment and innovation, and no one is investing more in clean tech than the U.S. oil and natural gas industry,” Todd Staples, president of the Texas Oil & Gas As-sociation, writes in a recent column published in the San Antonio Express-News. The kind of meaningful action to which Staples refers is largely predi-cated on a company’s ability to diver-sify its business portfolio and manage emissions across that portfolio in a digitally intelligent way. Doing so will require oil and gas companies to focus on three key areas:Mindset. An August 2020 study from Oxford Economics identies a class of high-achieving oil and gas companies that share a business approach and mindset known as systems thinking. Systems thinking, the study explains, is “a way of seeing the entire web of relationships within and beyond the or-ganizational rewall as a unied entity that operates smoothly, dynamically and as part of a cohesive strategy.”According to the study, whose nd-ings come from a survey of 3,000 senior executives across ten industries, including 300 from the oil and gas business, there’s a clear link between systems thinking and overall results. “Leaders are far more likely than other respondents to say they have integrated communication and data-sharing pro-cesses across the business, increased transparency into operations, broken down organizational silos and invested in collaborative technologies.”Another common thread among this The Business Case for Oil and Gas Companies to Think — and Act — Sustainably By Brent PottsA signicant portion of oil and gas CEOs have committed their organizations to a specic target: net-zero emissions by 2050 or sooner. It’s going to take a shift in mindset to achieve this goal. Photo courtesy of Feed MediaOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com55elite class of oil and gas companies is its embrace of a purpose beyond short-term protability. The Oxford Economics study nds that those companies “have created and taken meaningful action on a clear and con-sistent purpose-driven vision.”What does systems thinking look like when it’s applied to a purpose such as carbon emission-reduction? At the organizational level, it means every part of the company is connected and accountable toward meeting that goal. It means extending that interconnec-tivity to the company’s partners and suppliers, with uniform data standards and transparent information-sharing along the entire value chain. And par-ticularly with regard to sustainability and emission-reduction programs, it’s about linking employees explicitly to a purpose like net-zero carbon emis-sions. “Providing employees with a clear and consistent purpose-driven vision that is backed by substantive ac-tion is key” to thriving in an uncertain future, asserts the Oxford Economics report.Agility. Rather than neglecting their oil and gas origins, companies like ENI are diversifying around them with that net-zero 2050 target in mind. Amid a urry of announcements about partnering on a new laboratory that’s investigating ways to turn the power of ocean waves into electricity and investing in solar and wind ven-tures in the United States, the Italian company also was touting a new natu-ral gas play off the coast of Egypt.Likewise, another OGCI member, Spain’s Repsol, was opening an off-shore windfarm along the Portuguese coast, launching an electric vehicle charging venture with the automaker Kia, and closing a renewable energy acquisition in Chile at about the same time it was announcing a new deepwa-ter oil discovery in Mexican waters.Successfully developing new renew-ables-focused ventures alongside traditional oil and gas lines of business requires a company to have a strong, exible digital infrastructure, one that provides a platform on which a company and its business partners can connect, share information and collab-orate. That digital platform also should enable data and real-time insight to ow unimpeded, so these new lines of business seamlessly integrate into the broader enterprise. With advanced modeling and predictive capabilities as part of that platform, a company (and its partners) can model various pricing, billing, consumption and customer preference scenarios to gain valuable strategic insight into how to position a new venture.Molecule management. To ensure their beyond-the-barrel ventures run efciently and protably alongside their traditional oil and gas lines of business, while producing the desired emissions reductions, it’s vitally impor-tant that energy companies be able to measure the energy molecule’s entire journey downstream, however it was produced. Using data and analytics, companies can begin to make direct correlations between specic asset-management tactics and emission reductions. They also need to be able to measure and accurately report every particle of emissions, from exploration to extrac-tion, processing and transportation, through to product use and end-of-life treatment. This data is valuable on multiple levels — for regulatory com-pliance, for measuring progress toward carbon-reduction goals, and for public relations purposes, to differentiate a company as sustainably minded in the eyes of consumers and the work-force. As the Oxford Economics study points out, “Efforts toward sustainable operations, net-zero carbon footprints, and green energy production are a strength in the talent marketplace for companies in the [oil and gas] sector.”Brent Potts is senior director of global marketing, oil and gas, at SAP. He’s based in Arizona. OILMAN COLUMNADVERTISE WITH US!Are you looking to expand your reach in the oil and gas marketplace? Do you have a product or service that would beneﬁt the industry? If so, we would like to speak with you! We have a creative team that can design your ad! Call us (800) 562-2340 Ex. 1 OilmanMagazine.com/advertise Advertising@OilmanMagazine.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com56OILMAN COLUMNKamilia Putri is a production engineer at Sch-lumberger and is currently based in Houston, Texas. As an active Soci-ety of Petroleum Engineers (SPE) member, she was the communica-tion coordinator with SPE GCS YP, and currently serves as the secretary. Putri holds a Master of Engineering and Bach-elor of Science in Petroleum Engineering from Colorado School of Mines. Alan Alexeyev: What inspired you to start a career in the oil and gas industry? How did you decide to become a petroleum engineer? Kamilia Putri: My family and the place I grew up in inspired me to start a career in oil and gas. I grew up in a Chevron camp in Riau, Indonesia. Both my grand-father and my father used to work for Chevron. As a child, I was accustomed to meeting engineers and seeing rod pumps. In high school in Bakerseld, CA, my science teacher would wear a Colorado School of Mines t-shirt, which piqued my interest. Seeing my dad have assignments in Bakerseld, Indonesia and Venezuela showed me the opportu-nity I could have to travel with oil and gas industry. These things inuenced me to study petroleum engineering at Colo-rado School of Mines. AA: As you communicate with students on a regular basis, would you say there is an increased interest among younger individuals to start a career in the oil and gas industry, in comparison to the past? KP: There is a less interest among younger individuals to start a career in the oil and gas industry. This can be shown from the decline of petroleum engineering student enrollment. The data from Texas Tech University [shows] the 22 petroleum engineering programs in the U.S. enrolled nearly 2,000 seniors in 2019. This is about 1,800 fewer students than in 2016. I am sure some people have heard about the paper “The End of Petroleum Engineering as We Know It” published by SPE 194746. It begins with the question, “Would you recommend your son or daughter go into petroleum engineering?” In today’s environment, there is a negative connotation [associ-ated with] fossil fuels with issues regard-ing climate change. Not only that, the students know the oil and gas industry has a cycle, causing layoffs during the downturns, which provides instability to their career. There is a less interest for students to start their career in the oil and gas industry. As such, the oil and gas industry has a responsibility to promote a greener ap-proach. For instance, BP and Repsol are among the companies aiming to be net zero companies by 2050. In December 2019, Schlumberger announced it will commit to reducing its emissions using science-based targets. Its commitment to cut greenhouse gas (GHG) emissions has been submitted to the Science Based Targets initiative (SBTi); in line with the dened criteria, Schlumberger plans to dene its reduction target by 2021. This is an exciting time for young engi-neers to be part of the change and inu-ence the direction that energy takes to produce a positive impact for the future.AA: Do you think it is important for more young adults to be a part of the oil and gas industry? If so, why? KP: Yes. The next generation provides different approaches to problem solving. For instance, I am currently working for a service company as a production engi-neer. My role is to provide support and service to the operators or midstream companies. Previously, we built pipelines in the simulation from scratch, drawing them manually or importing the shape-le. With the introduction of Python toolkit capability on the PIPESIM soft-ware, we can automate some of the tasks that we could not before. The individuals in our company using this new approach are young engineers. In addition, as the senior engineers retire, there will be a crew change. We need the continuity by hiring new graduates to obtain previous knowledge and move the industry forward toward a new frontier. AA: How accepting do you think traditional industries, like oil and gas, are of younger generations of workers? KP: Traditional industries are welcom-ing of younger workers. For instance, the SPE Energy4Me introduces students to the energy industry. As a volunteer, I toured students and teachers around different oil and gas company exhibits at the SPE Conference. These companies are excited and engaging with the high school students. The SPE Engergy4Me program is one of the ways that illus-trates how we are looking forward to having more young engineers. When I was an SPE Denver section member, as a team we taught students about the oil and gas industry. We are showing young people that oil and gas is not all about fracking. There are many everyday benets that result from the work we do, such as the energy we use to the materi-als we interact with daily. AA: Has the industry taken initiatives to smoothly transition young profes-sionals into the oil sector? What, if anything, could be done better? KP: Different companies approach the transition differently. I am blessed to be in a company where they have a smooth transition for young professionals to join Young Professionals in the Oil and Gas Industry: Interview with Kamilia Putri By Alan Alexeyev

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Oilman Magazine / November-December 2020 / OilmanMagazine.com57OILMAN COLUMNthe workforce. Within the rst week, we have orientation with other young pro-fessionals. Once at the ofce location, young professionals have many incen-tives to be active on the Schlumberger Empowerment Team at their location. In the team we meet other young profes-sionals who have been in the company for a few years, and gained some insights about the grade level program, ofce safety and other work-related topics. The SPE Gulf Coast Section Young Professionals has also taken great initia-tives to introduce students and young professionals to the oil and gas sector. For example, its Roughneck Camp is a one-day conference that empowers young professionals, interns and students with the knowledge to choose and plan career paths to be a valuable contributor to their respective companies. AA: What do you believe is the importance of having diverse demo-graphics in an industry like the oil and gas industry? KP: Having diverse demographics is benecial. In my production engineer team, I have colleagues from China, Turkey, Canada, Venezuela and the U.S. Everyone is open and welcoming. We incorporate our backgrounds into our professional environment. As a Muslim woman who wears a headscarf, I feel welcomed in my team. They accom-modate people’s religious and cultural practices very well. So many manage-ment positions are held by women, such as the current North America Software Integrated Solutions Product Line Man-ager, who leads our division. By having a diverse workplace, people bring differ-ent opinions and perspectives. In this team, individuals are more likely to think outside the box and be creative!A company with a highly diverse work-force may offer service and solutions that attract a broader customer base. Our clients are from all over the world and we travel to different countries to deliver projects. During meeting breaks or lunch break, topics about our countries came up and bring up insightful discussion. AA: Share what advice or main takeaways you provide to students who have an interest in the oil and gas industry KP: Have additional skills beyond your anticipated role. At Colorado School of Mines, the geophysics students have courses that include coding. My sister is currently working on a graduate thesis that combines machine learning with geophysics. After her research consor-tium with companies, many of them approached her to work full-time due to her unique knowledge. Even with the current oil downturn, she has a full-time job offer. My advice to current students is to take online coding courses or learn additional skills. Also, seek leadership roles in your school clubs. Organizing events or volunteering will help get your name out there to the companies. Kamilia Putri – LinkedIn: www.linkedin.com/in/kamiliaputri

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Oilman Magazine / November-December 2020 / OilmanMagazine.com58OILMAN COLUMNChoosing the optimum oil drilling location is certainly not a straight-forward process. Extensive planning is involved. It also requires various scientic parties to collaborate and, ultimately, a great deal of patience.There are multiple factors that need to be considered. Geology, costs, the presence of infrastructure, proof of prior development, the list goes on. Tristone Holdings is a U.K. oil and gas company that plans on developing a new prospect in the U.S. Director at Tristone Holdings, Henry Berry, has provided insight into this multi-layered and complex process, discussing the key variables that inform the process of selecting an oil eld.The Prospect ProleQuite obviously, the rst thing that needs to be identied is an area that will yield good levels of oil. It goes without saying that an oil eld in a location without oil is entirely worth-less. In order to identify an appropriate location for a new oil eld, a petro-leum geologist will need to conduct a geological prole. Oil typically will be found within sedimentary rock basins, meaning once a potential location has been identied, it will be necessary for the geologist to conduct a geophysical survey. This will be done in order to study the following aspects:• Source. The hydrocarbons (oil) are generated by the source rock deep underground.• Reservoir. The hydrocarbons seep from the source rock and are subsequently trapped within the reservoir rock.• Seal. The hydrocarbons are unable to escape the reservoir rock due to the seal.• Trap. Sandstones will provide a stratigraphic trap, while carbonate rocks will provide structural traps. It is at this point that the hydrocarbons are held in such a quantity that it becomes protable to drill into the rock and extract them.• Timing. Geologically speaking, it is essential that a specic sequence of events is indicated by the formation.• Maturation. Immense heat and pressure must be applied to the source rock in order for the oil to be produced.• Migration. This is the process of oil moving from the initial source rock into the reservoir rock.The viability of the potential oil eld can be determined by the geologist once he or she builds a prole of the land based on these various factors. Certain processes, such as mud-logging and seismic reection, may assist in providing a positive picture. If this is the case, then oil companies will be able to move toward the next selection criteria of securing a new oil eld.CostOnce it has been conrmed that a prospect is, indeed, suitable from the perspective of a drilling company, the economical feasibility must be assessed. Regardless how optimally they are run, or how much assistance can be provided by automation and AI, drilling operations certainly are not cheap. Putting an exact cost on what level of oil yield is needed in order to label it a protable venture, however, What to Consider When Choosing a New Oil Field By Henry Berry Photo courtesy of Vladimir Endovitskiy – www.123RF.com

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Oilman Magazine / November-December 2020 / OilmanMagazine.com59OILMAN COLUMNis incredibly difcult. This difculty is enhanced by the sheer, day-to-day, variability in the oil market.It’s essential to ensure that an oil well will be protable, especially when factoring in the increasingly punctilious legislation and government pressure, as well as the global trends toward more sustainable energy. There is virtually no room for error when choosing a new oil eld. Tristone Holding’s own Viola prospect, for example, has been conrmed to have excellent potential for the commercial production of oil. This degree of surety is imperative.InfrastructureThe infrastructure that surrounds an oil prospect is something that has a great effect upon the economics of a drilling project. There are multiple considerations that are important to bear in mind in regard to the fuel that is being transported through pipelines and tankers, as well as the site’s operations as a whole.Should a well with lower yield, but superior, existing infrastructural frameworks be chosen? Or, would it be a better idea to investigate a high-production prospect, and set up an entire infrastructure, including pipelines and roads, from scratch? While this question may seem difcult enough in itself, the reality of this situation would never be as black or white as simply picking one or the other; there are multiple other considerations that must be factored into the equation. Environmental concerns are one such consideration. The immediate area of the site will experience considerable ramications in regard to CO2 emissions, as well as the distribution of nutrients within local ecosystems, if new roads are created, for example. These infrastructural implications must be considered with as much care as the site and its geology by any oil company involved.LongevityFinding and securing a potentially successful development is one thing, but it’s also important to understand what must be done when the well runs dry. Extensive prospects are sought after by most oil companies – prospects that go beyond the initial drilling project and provide maximum potential for future commercial oil projects. The previously mentioned Viola prospect, for example, has a substantial 480-acre lease block which can be worked with in the future.Further to the consideration of how to utilize the site after the initial drilling project, it’s also important to consider what must be done when there is no oil left. Every oil eld, eventually, will be completely exhausted once all of its oil has been recovered. Previously, many companies may have simply abandoned these elds. Nowadays, however, depleted oil elds are being utilized for the mass storage of gases, such as carbon dioxide. Their impervious physical characteristics make them ideal candidates for this job.While choosing an oil eld and drilling into it, obviously, is rmly dictated by the presence of oil underground, it should be clear that this isn’t the sole factor that must be considered. Discovering the perfect prospect that meets all of the criteria above is an exceptionally complex task that takes a considerable amount of time and a high level of expertise. While the presence of oil may be the main question, it certainly isn’t the only one.Henry Berry is a director at Tristone Holdings, an energy company based in the U.K. with a primary focus in the U.S. It nds, develops and produces essential sources of energy and its portfolio includes high-quality conventional oil and natural gas assets in the top U.S. onshore plays. Currently, it is raising capital to acquire and expand its energy base, specically in the oil and gas sector. For more information visit tristoneholdings.com. SUBSCRIBE TODAY!Get the Oil & Gas news and data you need in a magazine you’ll be proud to read. To subscribe, complete a quick form online:OilmanMagazine.com/subscribe Questions? Call or email anytime.Editor@OilmanMagazine.com • (800) 562-2340 Ex. 5

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Oilman Magazine / November-December 2020 / OilmanMagazine.com60The world’s energy demand is steadily increasing to the point that it has now become difcult for conventional hydrocarbon reservoirs to meet demand levels. Therefore, oil and gas companies have gone through rapid changes to adapt, survive, improve processes, create automation, generate value and are also seeking novel ways to exploit and unlock the potential of unconventional resources. These resources have been known to exist for some time and their production has become increasingly economically viable over the past decades through the industry’s continuous technological progress based upon the combination of horizontal drilling and hydraulic fracturing. Drilling of high-pressure, high-temperature (HPHT) wells and shale reservoirs has become more widespread in the global petroleum and natural gas industry. There is a current need to extend robust techniques beyond costly drilling and completion work, with the potential for exponential expansion. This article identies some operational aspects that must be taken into consideration when operating unconventional reservoirs.Unconventional ReservoirsWhen we talk about unconventional reservoirs, we essentially refer to any reservoir that requires special recovery operations outside the conventional op-erating practices. Unconventional reser-voirs include reservoirs such as tight-gas sands, gas and oil shales, coalbed meth-ane, heavy oil and tar sands, gas-hydrate reservoirs, and high-pressure, high-tem-perature (HPHT) wells. These reser-voirs require assertive recovery solutions such as stimulation treatments or steam injection, innovative solutions that must overcome economic constraints in order to make recovery from these reservoirs monetarily viable (1).Unconventional Versus Conventional ReservoirsThe oil and gas industry has used the terms “conventional” and “unconven-tional” resources for decades, although no standard denitions exist. At its most basic level, a “conventional” resource will ow on its own to the wellbore, while an “unconventional” resource will not. Unconventional resources require the application of external stimulation to enable hydrocarbons to ow. Hydrau-lic fracturing, which cracks underground source rock releasing gas or oil em-bedded within it, is one such form of external stimulation.The terms “unconventional” and “conventional” can cause confusion in the public. They can imply that conventional means simple and unconventional means difcult. The distinguishing feature is whether the oil or natural gas can naturally ow on its own, not the relative ease or difculty in extracting the resource. The term “unconventional” neither refers to nor requires operational difculty, just as “conventional” is not dened by operational simplicity. In fact, the unconventional resources can be developed by less complex means than the operations involved with many projects that are accessing and producing conventional resources (2).Operating Unconventional ReservoirsThe economic viability of developing unconventional resources depends upon many factors. These include:• Geology (nature of resource, nature OILMAN COLUMNUnconventional reservoirs. Source: Popular MechanicsTips for Operating Unconventional Reservoirs By Jose OsorioTable 1. Differences between conventional and unconventional reservoirs. Source: SlideShare – AAPG Eypty

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Oilman Magazine / November-December 2020 / OilmanMagazine.com61of source rock, resource depth, size of resource, etc.).• Geography (size of markets, proximity of resource to markets).• Topography (ability to construct well pads, water sources, sand sources, etc.).• Governance (nature and stability of laws and regulations, over-arching s-cal regime, mineral ownership, lease/resource access, royalties/taxes, liabil-ity exposure, right-of-way policies).• Supporting infrastructure (roads, railways, waterways, power sources, pipelines, disposal options, worker housing/social services).• Supporting labor force (availability of trained personnel).• Materials and equipment availability (drilling, fracturing and environmental management equipment, cement, gravel, sand, chemical additives, trucks, piping, etc.).• Pricing (the price being offered for the given oil or gas commodity at the time of investment decisions).The costs and anticipated development pace associated with each of these fac-tors can encourage or discourage invest-ments in one location relative to other regions or countries. In the United States, supporting infrastructure, labor and supplies, as well as other factors have contributed in many instances to a favorable climate for unconventional resource development investment and expansion. To develop an unconven-tional resource, several steps are under-taken to drill a well and begin producing it. Generally, the time to construct a well is relatively short (months) compared to the time the well viably produces a resource for sale (decades).When developing an unconventional reservoir, non-conventional processes must be put in place, there are some few tips we could considerate for this, each one for each discipline (2).DrillingWhen drilling a well in unconventional reservoirs many factors must be con-sidered in order to secure its integ-rity, which is achieved by a properly designed and constructed oil and gas wellbore based on right well drilling trajectory, drilling uid design, features on casing to use, cementing.Drilling trajectory. Most of the wells drilled on unconventional reservoirs are horizontal, which is why determin-ing the optimum drilling trajectory is such an important point, achieving this involves the analysis of different elements, such as azimuth, well inclina-tion, sand thickness, layer dip, reservoir’s structure, pore pressure, magnitudes of vertical and horizontal stress, collapse and fracture pressure. The best hole sta-bility is obtained by drilling in the direc-tion of the least deviatoric stress; that is, in the direction where the perpendicular stresses present the smallest difference.Drilling uid design. The HPHT en-vironment requires suitable techniques and selection of particular technologies in order to conduct drilling into extreme environments. Drilling engineers cur-rently require thermally stable, multi-functional, environmental and inexpen-sive durable drilling uid additives for the drilling of unconventional HPHT reservoirs. Below there are several tips to ponder when selecting a drilling uid system for the HPHT environment, which include:• Narrow drilling operating window versus high density of HPHT drilling uid.• High-density drilling uids may plug nano-pores in unconventional reser-voirs in particular shale.• Thermal stability of uid products and systems.• The technical performance of the uid for the HPHT environment should be placed as the main priority, not cost, as the margin for error in the HPHT environment is very small, causing the whole operation to fail with the underperformance of drilling uid.• The uid and additives should be stable at high temperatures and with-stand the maximum expected time under the most extreme conditions.• For HPHT operations, well and drill-ing uid programs become more criti-cal, where it is important to prepare backup plans (3).Casing and cementing. As oil and gas companies must carry out different OILMAN COLUMNTypes of unconventional reservoirs. Source: SlideShare – Ahmed BouadelContinued on next page...

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Oilman Magazine / November-December 2020 / OilmanMagazine.com62stimulation methods for the develop-ment of unconventional reservoirs, there are many pressing questions concerning the development of these resources, such as, “Will my drinking water be safe?” Here is where casing and cementing selection plans take an important role. There are protective measures that consist of multiple layers of steel casing and cement to separate the well from the aquifer and also to isolate production streams within the center of the well. Casing and cementing designs must be based on real data ob-tained from previous wells. Testing the casing and cement is necessary to ensure they do not create a pathway for oil and gas to enter the water table. In addition, hydraulic fracturing completions are closely monitored and managed to en-sure that the pressures involved do not exceed well design parameters (1).Starting-up and Developing an Unconventional ReservoirThe development of drilling horizontal wells and using multi-stage hydraulic fracturing have made the exploitation of unconventional reservoirs not only possible but also protable reserves for small and big operators. These new extraction methods have led to the shale reservoirs playing a major role in the oil and gas industry, and these reserves are providing clean energy, environmental sustainability and increased security. The U.S. Energy Information Administra-tion (EIA) predicted that shale gas pro-duction would increase by 23 percent in 2010 and 49 percent by 2035.It is important to examine the differ-ent natural fracture systems present in coalbed methane and shale gas reser-voirs, the connection between hydraulic fractures (created during frac work) with natural fractures in the reservoir creat-ing the necessary channels for optimum production. Therefore, a moderate pres-ence of natural fractures is necessary to economically produce from shale reservoirs. A coalbed methane reservoir has a uniform fracture network making it easy to model while the shale matrixes possess a non-uniform fracture system that requires sophisticated models, such as quad-porosity and double-permeabil-ity models. In addition to the amount and quality of shale organic content, water satura-tion must also be under 45 percent for production to be economically feasible. The clay content of shale is another important parameter to investigate for shale reservoir evaluation. Clays are soft and loose materials formed as a result of weathering and erosion over time. Some clay swells when in direct contact with water and this can cause a reduction in the efciency of hydraulic fracturing. Moderate clay content (under 40 percent) is needed for a marketable production in shale reservoirs. Rock mechanical properties, such as brittleness, Young’s modulus and Pois-son’s ratio also play an important role when designing a fracturing process. A high Young’s modulus and low Pois-son’s ratio are the goal in hydraulically fracturing a zone. Rock brittleness is often used as an indication of forma-tion fracability. Reservoir pressure, also known as pore pressure, is another important param-eter in commercial production from shale gas reservoirs. Reservoir pressure needs to be above normal, which is dened as any reservoir with a pressure gradient >0,465 psi/ft. Areas that have above normal reservoir pressure gradi-ents are considered optimal for pro-duction enhancements. By using RFTs and MDTs, reservoir pressure can be estimated (4).Internal RisksThe safe and efcient development of unconventional resources depends on two important elements. A company should have both a responsible opera-tion philosophy and an established and effective risk management approach or framework. All businesses have risks and it is important to identify these risks, make assessments based on real data, and put in place mitigation mea-sures to reduce the risks to an accept-able level for both the operator and the community where it is operating. Risks should be assessed by their probability and consequence, using operational ex-pertise complemented by technical stud-ies that enable companies to mitigate and manage risks based upon real data from actual developments (2).ConclusionUnconventional reservoirs are resources that to be economically exploitable must be accompanied by a strong multi-disci-plinary management that guarantees ad-equate design and control of its opera-tions, based on technical knowledge and experience acquired in practice, since it depends upon many factors. A good un-derstanding of the difculties involved in carrying out successful operations in this type of reservoir is necessary.One of the most relevant disciplines for the development of unconventional OILMAN COLUMNTypical casing design for unconventional reservoir. Source: Exxon Mobil

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Oilman Magazine / November-December 2020 / OilmanMagazine.com63reservoirs is geomechanics, since it gen-erates results that range from the genera-tion of an optimal operational window (mud density when drilling) to the opti-mized design of the hydraulic fracturing for the commissioning of the wells.References:1 www.halliburton.com/en-US/ps/cementing/cementing-solutions/unconventional-reservoir-wells/default.html2 corporate.exxonmobil.com/-/media/Global/Files/hydraulic-fracturing/Unconventional-Resources-Development-Risk-Management-Report.pdf3 encyclopedia.pub/18944 books.google.co.ve/books?hl=es&lr=&id=me-dDwAAQBAJ&oi=fnd&pg=PP1&dq=info:vKUu5mmHJdkJ:scholar.google.com/&ots=1VpqhQo14_&sig=lHKv52nvKdMGzxhq-wKaivltSHU#v=onepage&q&f=falseJose Osorio has worked as a petroleum engineer for three years. He has worked for the oil and gas industry as an industrial electromechanical technician for Turbinas y Mecanicas, c.a. and as an oil reservoir development engineer for Petroleos de Venezuela, s.a. Osorio has experience on AutoCad industrial designs, gas articial lifting method Simulators Software. He is able to give support to any content related to the oil and gas industry, and analyze well designs, develop geomechanical models for conventional reservoirs, handle and give support with software related to the oil and gas industry, plan well intervention activities to obtain required well/reservoir performance data, perform production optimization activities to ensure reliability and optimum well performance, and champion new technologies aimed at improving well productivity. Osorio has knowledge of various oil and gas software/data-viewer (WellFlo, Ofm, Pipesim, Drillwork, Sisub, Centinela, COPyR, Skua-Gocad, MS Ofce), developing special techniques, procedures, tests and evaluating new technologies to enhance production and safety of wells, and translating technical documents related to the energy industry. OILMAN COLUMNOilman Cartoon By Steve Burnett

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Oilman Magazine / November-December 2020 / OilmanMagazine.com64OILMAN COLUMNThe COVID-19 pandemic wiped out nearly 40 million jobs dating back to mid-February. It didn’t matter which industry, as millions of workers were either sent home, let go or furloughed until further notice. In March and April, employers eliminated roughly 22 million jobs and, by April, the jobless rate hit 14.7 percent, a post-World War II high. Oil and gas industry jobs were affected signicantly, as many were sent home to avoid getting sick.According to The Wall Street Journal, the unemployment rate was just 3.5 percent in early February, matching a half-century low. Even with some jobs returning in the summer, the jobless rate reached one of the highest levels since the Great Depression. By comparison, the U.S. shed about nine million jobs between December 2007 and February 2010, a period that encompassed the 18-month recession triggered by the nancial crisis.Keeping America Moving When Workers Are HomeSome industry employees, such as those working in an ofce, were able to move to a remote home-ofce location to continue their duties. While the quick transition was abrupt for many, today’s digital workplace environment actually caters to a work from home (WFH) environment. In fact, according to a scholarly NPR interview,1 it is estimated that 37 percent of American jobs could plausibly be done from the home ofce, compared to an estimated four percent of people who worked from home before the virus. However, many oil and gas industry jobs must be handled from the eld, and these cannot be relocated to a home of-ce environment. As the industry slowly begins to recover, a percentage of these jobs will need to undergo additional training or re-training.Using Virtual Technology to Re-train EmployeesSocial distancing rules will apply in the near term, and it is not known how long they will persist. Because of this, virtual technologies will play an increasing role, not only in helping some perform their jobs, but also in re-training construction industry workers.Virtual technologies such as Augmented Reality (AR), Virtual Reality (VR) and Mixed Reality (MR) allow for an interac-tive experience between people and a real-world environment where objects from the actual setting are presented and enhanced by perceptual information from a computer. Recent survey data published in TechRepublic2 illustrates the increased utilization of AR/VR across the enter-prise. Companies within construction, technology, manufacturing, automotive, and aerospace and defense are prime examples of increased AR/VR use, and employee training and re-training are areas where AR/VR is expected to play a growing role. The application and use of AR/VR in corporate training can increase engage-ment and knowledge retention levels. What’s more, employees can receive proper training in a safer, more cost-efcient format.AR/VR enables oil and gas workers to receive instruction through practical and virtual experiences. In fact, this method is gaining momentum for many large companies, and it offers an effective way to learn a variety of skill sets, or even sharpen existing skill sets. This is important especially for manufacturing workers who have been idle from plants for two or three months and are now being called back to their jobs. Studies have even shown that learning through virtual experience increases the quality of learning3 and even retention rates by 75 to 90 percent.4In addition to business and soft-skills training, such as company protocols and Virtual Training Technologies Will Be Used to Re-Train Furloughed COVID-19 Oil Industry Workers By Dijam PanigrahiPhoto courtesy of Grid Raster, Inc.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com65America’s energy challenges will be before us for many years ahead. As I wrote in my book, America Needs America’s Energy, “Future genera-tions are depending on us to keep the American dream alive. For too long we in America have been wasting time blaming the energy industry or the government for failure to adopt a national energy strategy when we should be responsible for creating the plan.” Innovation, technology and re-search will be important in meeting the energy challenges ahead. In my book, I encouraged the reader to look at all of our energy options. The underlying theme was to strive for energy efcien-cy and environmental preservation. To nd that important energy and envi-ronmental balance, I addressed pros and cons of all the natural resource options we have available.The oil and gas industry for many years ahead will be an important part of the energy mix. It should be noted that renewables, solar, wind and all other forms of energy will also play an important part in the transition of our energy future. The challenges in the energy industry include infrastructure, workforce devel-opment, transportation, power genera-tion and other key factors. In order to maintain energy security, we must use our natural resources effectively. My home state of Oklahoma, for example, not only is a leader in oil and gas, but also has other energy sectors, such as coal, solar, wind, hydro and other key sources. The energy sector embraces all forms of energy.One energy expert recently stated, “We all expect our heat to run, gas stations to have fuel, and lights to never icker – all at an affordable price. Around the world, billions of people are expecting a middle-class quality of life and its requisite available, affordable, reliable energy. None of this demand is going away soon. Because energy is so reliable and available, the public believes they no longer require it.”“Oil-based products are likely the rst thing you touch at the beginning and end of each day, whether it is your alarm clock, television remote, cellphone or even the toothpaste and toothbrush you use to brush your teeth. Those who wear makeup or synthetic bers, such as polyester or nylon, are using or touching petroleum nearly 24 hours a day. As a key component in heart valves, seat belts, helmets, life vests and even Kevlar®, petroleum is saving tens of thousands of lives daily. Furthermore, oil and gas are key components in many medicines and antibiotics such as antiseptics, antihistamines, aspirin and sulfa drugs.” Bottomline, the oil and gas industry will be needed for years ahead. One company’s energy initiative: BP has announced it will “increase its low-carbon spending to $5 billion a year by 2030 and boost its renewable power generation to 50 gigawatts (GW) while shrinking oil and gas output by 40 percent compared with 2019.”The main challenge ahead is to unite America by embracing our energy industry and striving for energy ef-ciency and environmental preserva-tion! Energy education must be at the forefront. National Energy Talk is one of many initiatives targeting energy education for the public. Facebook: National Energy Talk. America Needs America’s Energy. America’s Energy Challenges By Mark A. StansberryMark A. StansberryOILMAN COLUMNprocedures, and public speaking skills, AR/VR can offer training in high-risk areas such as safety and materials handling in a safer environment. For example, the oil and gas company, BP, used virtual training technolo-gies to teach its employees start-up and exit procedures at a renery in England. As more oil and gas companies bring back employees, virtual technologies such as AR/VR will be utilized more frequently to re-train the critical skill sets they need in order to do their jobs effectively, efciently and safely.Appendix: 1: www.npr.org/2020/05/08/852527736/covid-19-forces-more-people-to-work-from-home-hows-it-going 2: www.techrepublic.com/article/91-of-businesses-already-using-or-planning-to-adopt-ar-or-vr-technology3: www.aacu.org/publications-research/periodicals/power-experiential-education4: www.academia.edu/1969321/Active_Learning_to_improve_long-term_knowledge_retention Dijam Panigrahi is co-founder and COO of Grid Raster Inc., a leading provider of cloud-based AR/VR platforms that power compelling high-quality AR/VR experiences on mobile devices for enterprises. For more information, please visit www.gridraster.com.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com66OILMAN COLUMNNearly ten years ago, journalist and entrepreneur Jason Spiess began inves-tigating the oil and gas industry in the Bakken oilelds. Months of sleeping in his vehicle, touring well pads and having coffee with landowners shaped his view of the oil and gas industry and it was this embedded experience that changed his entire business plan and life purpose.“Before we ofcially opened our doors, The Crude Life was going to be an in-vestigation series against the oil and gas industry,” Spiess reveals. “After one week of experiencing the oil patch and talking to all kinds of people that are totally for industry and completely against it, I knew my business model had to change before I launched my company.”Spiess, who personally Adopted-A-Highway in 2004, says it was energy innovation and reclamation programs that changed his mind on industry and talking with landowners changed his heart.“Look, I’ve heard the good, the bad and the ugly about industry. Every area in life has it’s nger-pointing sound bites. But when you look at the everyday uses of energy, the carbon to hydrogen transi-tion trends and the actual economic engine it is, the oil and gas industry is not only the leader in the environmental movement, it is vital to it.”One of the main issues around tree planting is sustainability and Spiess says The Industrial Forest is another example of industry solving a problem. “Accord-ing to a number of studies, about half the trees planted over the past 20 to 30 years die within the rst year. That’s from nonprot tree planting events to municipal tree planting programs. It’s a real-life problem and a serious eco-issue.”It was this revelation that created The Industrial Forest’s slogan, “It Takes an Industry to Build a Forest.”Lack of watering, transplant shock and poor growing conditions are a few rea-sons trees have a difcult time surviving. “The Industrial Forest uses a sustain-ability shed and a critical pipeline system in order to ensure the forest’s survival,” Spiess says. “Trees need more than just an Instagram pic or a corporate-sponsored eld trip. They need water every day for one year and at least once a week for years after.”The Industrial Forest does more than build sustainable forests, it also creates jobs. Sustainability sheds and critical pipeline systems will need to be con-structed and engineered. Local busi-nesses like real estate companies, artists, communication professionals, wood fabricators and nurseries will be given opportunities for business during a time when doors are closing.“We are creating something that is so unique and inclusive. A forest that advertises positivity for industry, creates jobs, consumes carbon, promotes the need for pipelines, demonstrates ethical capitalism and brings all walks of life together,” Spiess says. “It creates its own eco-system that allows trees to live and industry jobs to grow.”The Industrial Forest will hold public meetings in each of the states leading up to the planting party and barbecue. These public meetings are designed to provide engagement, communication, awareness, inclusion and transparency, while the planting party and barbecue are community events.“We will meet with local ofcials, civic leaders and industrial experts to ensure the trees survive, produce an ecosystem and absorb carbon for decades,” Spiess explains. “The Industrial Forest will stimulate community economies by pur-chasing young trees from local nurseries, stability stakes from fabricators and ora direction from county extension agents.”It Takes an Industry to Build a Forest By Jason SpiessBeaver Fest Vegfest. Photos courtesy of Jason Spiess

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Oilman Magazine / November-December 2020 / OilmanMagazine.com67OILMAN COLUMNKendall DeHaan, who has been an environmental activist since protecting the beaver’s habitat in high school, has agreed to join The Industrial Forest as a sustainability supervisor.“I met Jason back at VegFest back when I was in high school advocating for the beaver and its habitat. I remember think-ing how odd it was that an oil and gas guy was at VegFest,” DeHaan says. “So, when Jason asked me if I would help in-dustry build forests, I was very intrigued. Then when I saw the sustainability part of The Industrial Forest, I was like all in. Did you know most companies don’t even have a sustainability plan? How is that even a thing?”DeHaan’s passion for sustainability has continued.“My family is from Texas, so I have grown up hearing about the oil and gas industry. Jason has told me on multiple occasions over the years that industry is the leader in the environmental move-ment. I always rolled my eyes when he said that,” DeHaan says. “But now, if industry is going to build sustainable forests, I am ready to listen and plant trees. Besides, Jason has assured me that oil and gas will listen to me, too.”The plan is to build a network of industrial forests across the United States by planting 1000 trees in 50 states over the next ve years. The construction of the industrial forests will start in 2021 with ve states. First year states are North Dakota, Minnesota, Colorado, Oklahoma and Texas. In 2022, 15 states are scheduled.That’s a minimum of 50,000 trees and 10 million pounds of carbon consumed by Mother Earth. The word “minimum” is used because Bismarck, ND, is already looking at building a micro-industrial forest within its city limits as an edu-cational walking park for the ve-acre industrial forest.“I am excited to be a part of The In-dustrial Forest and its potential to use shared knowledge to advance innovation and environmental stewardship. Cur-rently, we are in the exploratory phase of site location and logistics; however, as the Mayor of Bismarck, I personally will do what it takes to make sure Bismarck, North Dakota, plants the rst tree in The Industrial Forest.”Mayor Steve Bakken appeared on a live recording session of The Crude Life at the Bakken barbecue where Spiess men-tioned afterwards that he was partnering with The Industrial Forest and thought Bismarck might make a good site for a micro-forest. The mayor agreed.“I’ve known Jason for nearly 15 years and cannot think of too many others who are more qualied to bring people and Mother Earth together,” Bakken says. “I’ve seen his best and worst, and what I can tell you about Jason Spiess is that he has the mind of a capitalist and the heart of a hippie.”For more information about The Industrial Forest email info@theindustrialforest.com. Jason Speiss Kendall DeHaanEarth Day Girl Scout Tree Planting.

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Oilman Magazine / November-December 2020 / OilmanMagazine.com68Hydraulic fracturing is part of the upstream sector, occupying a privi-leged place in terms of its impor-tance, as it is constantly used to raise production in depleted elds. The application of hydraulic fracturing depends, to a large extent, on its cost and, in turn, on the effective produc-tion improvement it can provide. The costs of fracturing are associated with the depth of the well, the quality of the rock to be fractured, the type of control and fracturing uids to be used, and the proppant elements to be used to keep the fracture open and to create ow channels. The functionality of the fracture is calculated using software similar to Fracpro, which is responsible for the simulation of the behavior of the fracture and the possible outcome. Despite the use of tools that gener-ate a prediction about the productiv-ity of the fracture, the response of this type of software is not success-ful most of the time. This is because it is momentarily impossible to understand the arrangement of the rock and the strength that it can of-fer to fracture in each millimeter of penetration. Therefore, it is a com-plete necessity to be able to test the functionality of the fracking process. There are different methodologies that are associated with technologies to test the production of a well, and these are used to test the quality of hydraulic fracturing. There are two forms of diagnosis for hydraulic fracturing: indirect and direct test. Indirect TestThe hydraulic fracturing test system is a technology that is widely used in the geotechnical eld, being adapted to the eld of oil and gas some years ago using geomechanics. To carry out this procedure, the following is required:The taking of cores from the area of interest, then plugs are cut with an eccentricity of three feet long and one foot wide, these samples being identical to those used for rock destruction tests in geomechanics laboratories. Triaxial test (TRX) equipment is then used to simulate the reservoir pressure at which the rock was, both vertically and horizontally. Next, a uid at high pressure is added, to reach the point of fracture and fracture propagation, the latter procedure which is done at a slow speed in order to know the amount of uid that the rock can resist. At the end of the test, the rock can be studied post-mortem, thus noting which channels were and which form the fracture took at the time of destroying the rock. This allows personnel to understand different factors, such as the fracture propagation and Technologies That Help Diagnose Hydraulic Fracturing By Andres OcandoHydraulic fracking results. Source: Geology PageOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com69direction, and the average pore throat size per barrel of injected fracturing uid. This methodology was tested and the results were part of an article titled, “Simulation of Hydraulic Fracture Propagation in Poroelastic Rock with Application to Stress Measurement Techniques,” written by Boone and others. During this study, they decided to use different processes of rock destruction to conduct a fracturing test, concluding that the use of triaxial tests with the application of fracturing uid is the most promising. For the numeric calculation, Dugdale-Barenblatt’s non-linear fracture mathematical model was used, a poroelastic model and a nal connection between the two models in order to understand the behavior of the uid in the fracture and rock. Direct TestFor the validation of the success in the hydraulic fracturing process, the most used tool by the industry is the production logging tool (PLT). In its simplest presentation, this type of tool is able to measure ow, density, temperature and pressure. Knowing the pre-fracture production values, and after obtaining the post-fracture values, they are compared, thus determining the gain.This log is usually used before the fracture in order to know the exact values and then it is used again after the fracture when the well stabilizes, since after fracturing and opening to production there is enclosed uid pressure that potentially raises production at the time of opening the well again. Thanks to the values provided by any of the PLT tests that are conducted on a well, it is possible to know how the skin factor was affected, and whether the fracture was successful. For the calculation of the skin factor, the basic concept of Prouvoust and Economides’ technique is used, which uses the differences between a well that has skin effects and the result after altering the effects, i.e., the skin factor.Another element widely used today is the resistivity image log. This type of log is run in two phases like the PLT, before the fracture to see if there are natural fractures that can be exploited or to see the integrity of the formation, and then to validate that the target area was successfully fractured.To identify the induced fractures, i.e., created by mechanical stress, it is enough to analyze the results of the log, which must be observed as two semi-parallel lines; these fractures are always open, the direction of the fracture represents the main direction of the stress.Since this log is resistivity type, there are certain considerations that must be taken before generating an analysis of the images obtained, since factors such as the resistivity of the drilling mud or completion of the formation temperature affect the reading. On the other hand, the resistivity of the area also causes an altered reading. The microseismic technique (MS), or well seismic technique, is a technique that registers and locates microseismic events, also called microseismicity, which is about small pulses of seismic wave energy generated by insignicant movements of rock in response to changes of in situ stress and the total volume of rock or target area. These types of pulses are similar to those generated during hydraulic fracturing. During the process of uid Resistive image logs. Source: ScienceDirectOILMAN COLUMNContinued on next page...Prouvoust and Economides’ formule. Source: PetroPedia

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Oilman Magazine / November-December 2020 / OilmanMagazine.com70injection at high pressure, pulses that can be registered by microseismic tools are created and, given the fact that after the fracture is done, the personnel tries to keep them open with proppants, the propagation of the fracture is maintained and the change is signicant with the use of microseismicity. The microseismic analysis is per-formed in real-time, which allows the on-site fracturing engineers to use various techniques to face stimula-tion challenges, one of which is the use of microseismic readers, and the measuring derived from inclinom-eters, which indicate the existence of mechanical changes in the subsoil.When this anomaly is detected, we proceed to use radioactive and chemical trackers, tools that belong to the production logs, and are used as complementary indicators to know in this way the changes produced in the uid paths as a result of fracturing. Due to the high cost of applying MS technology, it is commonly used in reservoirs with high production prospecting; however, with highly signicant permeability problems, the chosen candidates are usually un-conventional reservoirs. In this type of reservoir, we look for pre-existing fractures in the area and analyze the best strategy to create a connection: well-natural fractures-reservoir, to use the existing ow channels and increase the ow to the well. With the implementation of MS, the most common methodology used is to perform a pre-fracture explora-tion, with the intention of knowing the course and direction of exist-ing natural fractures, then a map of trajectories and how natural fractures can effectively be inuenced using the hydraulic magnitude.At last, the fracturing process takes place, making real-time observation with the MS technology. Since the personnel already has a static map of the pre-fracture conditions, it is appropriate to process the pulses generated by the injection of uid at high pressure, which will show the path that the fracture is taking and whether it is achieving the desired connection between the hydraulic fracture with the naturally-fractured channels from the reservoir. This type of procedure applies to all types of reservoir, both conventional and unconventional. Hydraulic fracturing is a methodol-ogy to stimulate production in the face of the oil well. This procedure will help prolong the useful life of a reservoir but, in turn, it represents a signicant value investment for companies around the world. For this reason, technology does not stop trying to search for the best tools to face the challenges that operating in the heterogeneous conditions of the subsoil brings; however, being able to verify the success of a fracture before, during and at the end of the process is a necessity of vital impor-tance to back the investment made in the beginning, and the continuous operation of the reservoir that’s be-ing worked.References:www.sciencedirect.com/science/article/abs/pii/014890629193228Xwww.petropedia.com/denition/2928/production-logging-tool-pltwww.sciencedirect.com/science/article/pii/S0264817216300344www.researchgate.net/publication/327269600_Image_log_interpretation_and_geomechanical_issuesAndres Ocando is a 30-year old petro-leum engineer, who has been working for PDVSA for ve years, facing positions such as reser-voir engineer and geomechanical engineer. He currently works as a project analysis engineer. There, he has optimized the data collec-tion process for the development of geomechanical models. Ocando has experience in copywriting and is currently a technical writer on topics related to the oil and tech-nology industries. He collaborates for important technical publica-tions such as OILMAN Magazine and SPE. Quality and responsibil-ity are two words that describe him perfectly. Ocando is currently pursuing higher studies at the University of Zulia to obtain his master’s degree in petroleum engi-neering. OILMAN COLUMNMicroseismic process. Source: SchlumbergerOILMAN COLUMN

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Oilman Magazine / November-December 2020 / OilmanMagazine.com71OILMAN COLUMNOILMAN COLUMN“We are in the process of closing a deal in Howard County in the Permian, so that will give us a presence there. We picked up a nice little acreage position with a few active wells on it. We’re really excited about that because it ts hand in hand with some other stuff we’re doing in the Palo Duro Basin. We’re really looking forward to and excited about those projects and what they’re going to bring to the table for Swan Energy and Oak Energy in the future, but we have a lot of excitement centered around the Howard County acquisition as well as Palo Duro Basin.Jeremy Pate, Swan Energy“You have to drill vertical wells to nd out what’s down there, then you can go in and drill horizontal. So, areas that aren’t as prevalently drilled vertically, it takes a little more, a few more vertical wells to be drilled before you can deter-mine exactly how to drill your horizon-tal. I mean, that’s just getting the data, and we still do vertical projects, so it’s not out of the question. It’s just they aren’t very, not very often.” Brandon Davis, CEO, Swan Energy“Bismarck’s booming. You have to re-member that Bismarck’s not a or, in the previous formula, was not a hub city. We were outside of that. We didn’t get the state money that the oil patch got. When you take a look at the population of Bismarck, for example, Williston got a brand new high school for 46 kids coming into the school district and, at that same time, Bismarck had 450 kids coming into the school district year after year after year. So, we had some different challenges because what we were nding out was families were moving to Bismarck because it was a bigger city.”Bismarck (ND) Mayor Steve Bakken“Paradigm shift is what you said earlier, and that’s exactly what it is. So now you’re looking at making a product that doesn’t have the same margins as it did when it was $120. Based on that, everything’s kind of gone through, and now data has really become a big part of what you have to do.”Imran Khan, Swan Energy“It’s amazing to me how everybody wants to give back. You know if some-body is needing a chair or is having a charity event, somebody will donate a generator. Somebody will donate elec-tricity. Whatever it may be, they’ll donate – water, food, so on and so forth. You know there’s not a lot of other people that can say, ‘Hey, this is my industry that donated this,’ and it’s amazing.”Jackie Jenkin, co-founder of the Bakken BBQ“I just ran into a couple last week that have been in Watford City since 2015, and in 2010 they worked for a big pipe-line company that left. But these two are staying behind and they’re starting their own company, Silver Fox Pipeline. They’re going to do a fantastic job. I’m getting those two people in front of the city planner and economic develop-ment next week to have a meeting and also the school because these guys are interested in helping train welding and welders to high schools and doing some stuff like that so I’m very optimistic about what’s going on in Watford City and I’m seeing those displaced workers get called back to active duty right now.”Patrick Bertagnoli, community enhancement director, City of Watford City“I want to say the rst thing, if you would have told me in high school I’d be working in oil and gas, I prob-ably would have laughed at you. It’s true. Today, however, I can tell you I will hopefully never work for another industry because I love the way oil and gas is a family.”Tiffany Steiner, co-founder of the Bakken BBQ“Work’s picked up here in the Permian Basin. We’ve got crews going in and it’s denitely been a big challenge through 2020, but our lodges are growing and, man, we just we’re super excited about all of our recent business. After Okla-homa and Orla (TX), I will be making my way to Watford City and the Bak-ken because it’s been picking up there like crazy.”Tiffany Wilson, Aries BuildingsLiving the Crude Life By Jason SpiessLiving the Crude Life live recording session at Cowboys and Indians restaurant in Houston, TX. Host Jason Spiess (left), interviewees Imran Khan (middle left), Brandon Davis (middle right) and Jeremy Pate of Swan Energy about Mining Money.Living the Crude Life live recording session at the Bakken BBQ in Dickinson, ND. Host Jason Spiess (middle) moderates the discussion of “How Oil and Gas Builds Culture and Communities” with the co-founders of the Bakken BBQ, Jackie Jenkin (left) and Tiffany Steiner (middle left); Mayor of Bismarck (ND) Steve Bakken (middle right), and Patrick Bertagnoli, community enhancement director, City of Watford City (right).

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