Return to flip book view

Oilman Magazine May/June 2021

Page 1

THE MAGAZINE FOR LEADERS IN AMERICAN ENERGYMay / June 2021OilmanMagazine.comKyle Lehne, Sun Coast Resources, Chief Business Development Ofcer Facilitating a Safe Work Culture Without Policing It p. 38Reducing Lifting Cost with End-to-End Commodity Transportation Management p. 4The Death of Petroleum Engineering… is an Exaggeration p. 22Interview with Dr. Ryan Todd, CEO and Co-founder of Headversity p. 16

Page 2

Explore why over a 100 upstream and midstream companies rely on us to Accelerate their Business Performance, Reduce Costs, and Empower their Workforce.JOINTHE RUSHTO THE LEADINGOIL & GAS SAAS ERPWEnergySoftware.comDISCOVER THE FUTUREWe are the Oil & Gas Industry’s Only Unified SaaS ERP Solution, Built for the Cloud

Page 3

Oilman Magazine / May-June 2021 / OilmanMagazine.com1IN THIS ISSUEFeatureCover Story: Sun Coast Resources: Help is on the Way: Rebecca Ponton .......................................................... 26-29In Every Issue Letter from the Publisher ......................................................................................................................................................2OILMAN Contributors .........................................................................................................................................................2OILMAN Online .................................................................................................................................................................. 3Downhole Data ..................................................................................................................................................................... 3OILMAN ColumnsInterview with Dr. Ryan Todd, CEO and Co-founder of Headversity: Eric Eissler .................................................16America’s Energy Reliability: Mark A. Stansberry .................................................................................................32Living the Crude Life: Jason Spiess ..........................................................................................................................40Oilman Cartoon: Steve Burnett ................................................................................................................................ 42Guest ColumnsReducing Lifting Cost with End-to-End Commodity Transportation Management: Jeff O’Block ......................... 4App Puts Safety Lessons in the Palms of Workers’ Hands: Nick Vaccaro .......................................................... 8Career Downturn Leads to Journey of Discovery: Daniel Tyson ........................................................................10Your Oil Field Job Has Been Automated. What Now? Ben Samuels .................................................................12For ESG Investors, “Clean Fracs” Could Mitigate Environmental Impacts: Mason Anderson .....................14LWD Versus MAD Pass Formation Sampling in ERD Wells: Adedayo Iroko..................................................18The Death of Petroleum Engineering… is an Exaggeration: Claudia M. Caruana ......................................... 22Young Professional in the Oil & Gas Industry: Interview with Ahmed Tarabily: Alan Alexeyev ................. 30Looking to the Future: Carbon Capture and Storage: Andres Ocando ............................................................. 34Facilitating a Safe Work Culture Without Policing It: Nick Vaccaro ..................................................................38

Page 4

Oilman Magazine / May-June 2021 / 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. 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.Joshua RobbinsJosh Robbins is the Founder of Beachwood. 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.Ben SamuelsBen Samuels, CEO of Source Rock Midstream, and chief growth ofcer of Blu Capital Resources, is an entrepreneur focused on the energy markets with an innovative and collaborative approach to the issues facing the industry today. Based in Midland, Texas, since 2014, Samuels has had a front row seat to the boom-and-bust cycles of energy investment and development, which has helped form his view on the markets, domestically and internationally. Samuels is a stakeholder in a litany of ventures across the energy markets value chain, with an emphasis on value creation, innovation and risk mitigation. His podcasts, Don’t Let e Facts and Coee & Liquidity, and body of work for e War Room, Oilman Magazine, Energy Brushback Insider and others, all speak to Samuels’ motivation to be a voice for the underserved and a positive force in the lives of those around him. When he is not producing content for these channels, he can be found immersed in other passions such as sports cards and cooking. Find Samuels on Twitter: @baspermian.MAY — JUNE 2021PUBLISHER Emmanuel SullivanEDITOR-IN-CHIEF Rebecca PontonMANAGING EDITOR Sarah SkinnerASSISTANT EDITOR Eric R. EisslerASSOCIATE EDITOR Tonae’ HamiltonCOPY EDITOR Shannon WestCREATIVE DIRECTOR Kim FischerCONTRIBUTING EDITORS Joshua Robbins Ben Samuels Jason Spiess Mark StansberryADVERTISING SALES Diana GeorgeTo subscribe to Oilman Magazine, please visit our website, www.oilmanmagazine.com/subscribe. The contents of this publication are copyright 2021 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 reect 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 Sun Coast Resources, Inc.LETTER FROM THE PUBLISHERCONTRIBUTORS — BiographiesEmmanuel Sullivan, PublisherTexas and 20 states led a lawsuit against the Biden Administration in March for canceling the Keystone XL Pipeline. The executive order halted the high-prole pipeline project, which included Canadian partners and immediately cut thousands of high-paying, blue-collar jobs across several states. Biden revoked the pipeline permit just hours after reciting the oath of ofce. Several state attorneys general suing Biden mentioned in their court motion that the power to regulate foreign and interstate commerce belongs to Congress, not the President. The Biden Administration has ignored several studies by the Obama Administration that concluded the Keystone XL Pipeline would boost the U.S. economy, create jobs and safely transport oil around the country without increasing greenhouse gas emissions. In addition to the pipeline lawsuit, 14 states have led a court challenge to Biden’s ban on drilling on federal lands. In January, Biden signed Executive Order 14008 that halted new oil and gas leasing and the Interior Department halted new development on existing leases. The drilling ban also applies to offshore oil and gas leases. Like prior administration policies, and by executive at, Biden has abandoned middle-class jobs and placed our energy security in the hands of foreign countries. The $2 trillion infrastructure bill proposed by Biden only includes six percent or $115 billion to modernize roads, highways and bridges, projects typically dened as infrastructure, and have a relationship to our energy independence. Add another $100 billion for Amtrak and road safety. The surprising fact is more money will be spent on electric cars than on roads, bridges, ports, airports and waterways combined. Items in the bill not typically associated with infrastructure include $400 billion for home-based care for the elderly and disabled, $35 billion for climate change R&D, $50 billion for a new department dedicated to monitoring domestic industrial capacity and $213 billion for home sustainability and public housing. There are more elements in the bill that do not meet the traditional infrastructure denition that are not listed here due to space limitations. Our energy ecosystem is tied to traditional infrastructure and it is poor public policy to spend tax dollars on projects that do not modernize our country’s infrastructure. Regarding the lawsuits, I’ll repeat what our good friend Mark Stansberry often mentions, “America needs America’s energy.”

Page 5

Oilman Magazine / May-June 2021 / OilmanMagazine.com3DIGITALConnect with OILMAN anytime at OILMANMAGAZINE.com and on social media#OilmanNEWSStay updated between issues with weekly reports delivered online at OilmanMagazine.comWeek Ending April 30, 2021DOWNHOLE DATAGulf of Mexico: 14Last month: 12Last year: 17 New Mexico: 70Last month: 67Last year: 70 Texas: 212Last month: 205Last year: 231 Louisiana: 49Last month: 46Last year: 40 Oklahoma: 21Last month: 17Last year: 20 U.S. Total: 440Last month: 417Last year: 465OIL RIG COUNTS*Source: Baker HughesBrent Crude: $65.50Last month: $64.06Last year: $18.11 WTI: $62.02Last month: $61.49Last year: $19.23CRUDE OIL PRICES*Source: U.S. Energy Information Association (EIA)Per BarrelGulf of Mexico: 49,304,000Last month: 55,215,000Last year: 57,164,000New Mexico: 27,474,000Last month: 33,659,000Last year: 31,736,000 Texas: 107,296,000Last month: 144,700,000Last year: 155,408,000Louisiana: 2,528,000Last month: 3,037,000Last year: 3,331,000Oklahoma: 8,994,000Last month: 12,981,000Last year: 16,214,000 U.S. Total: 276,129,000Last month: 342,844,000Last year: 369,622,000CRUDE OIL PRODUCTION*Source: U.S. Energy Information Association (EIA) – February 2021 Barrels Per MonthGulf of Mexico: 61,693Last month: 68,156Last year: 78,343 New Mexico: 149,247Last month: 176,124Last year: 158,434 Texas: 591,656Last month: 774,276Last year: 771,344Louisiana: 220,932Last month: 271,728Last year: 251,755 Oklahoma: 166,334Last month: 221,164Last year: 243,139 U.S. Total: 2,588,342Last month: 3,093,429Last year: 2,958,634NATURAL GASMARKETED PRODUCTION*Source: U.S. Energy Information Association (EIA) – February 2021Million Cubic Feet Per MonthWe would like to dedicate this issue of the magazine to our friend and colleague, Eric Freer, who believed in our mission, was unwavering in his enthusiasm and support and, through his contributions, helped us realize our vision and become what we are today. In Memory of Eric Freer

Page 6

Oilman Magazine / May-June 2021 / OilmanMagazine.com4OILMAN COLUMNOil and gas producers may not have control over the direction of their com-modity prices, but lifting cost is a lever that can be applied to lower breakeven and improve protability. One area that may not immediately come to mind to reduce lifting cost is the expense associ-ated with safely disposing of produced water. Permian operators face increas-ing water production in the Midland Basin – as much as seven barrels per barrel of oil produced – and 10 barrels in the Delaware Basin. Produced water transportation is arguably a bigger business in many basins than moving crude oil. The hauling costs come back to an operator’s balance sheet adding something north of $3 to a barrel of oil’s lifting cost in the Midland Basin. Boom or bust, oil producers are sure to take a ve percent or more boost to their cash ow any day. New technology is enabling a step change in how ef-ciently produced water is moved, which in turn is lowering the cost of doing business for haulers, translating to lower lifting cost, and enabling producers to get out of the transportation manage-ment business.A 30 cent per barrel reduction in water disposal, is a $3.00 per barrel lifting cost savings on a 10 to one cut. The dollar cost savings are signicant, but the ESG impact can be even greater. Technology brings better data, and better data leads to better, more efcient planning and eld operations. That’s good for haulers and good for the environment.The energy industry has always pulled more out of the ground than oil, gas and natural gas liquids. There are often other commodities that can be sold or must be disposed of, including sulfur, CO2, and even lithium, that are now being extracted from a well’s petroleum brine. This puts energy companies in the business of tracking multiple streams of molecules produced at the wellhead. Those who do it well can dramatically reduce costs while gaining a deeper view into where, when and how commodities are owing through the energy value chain.Following the Physical and Account-ing Movement of CommoditiesEnergy companies assume responsibil-ity for every molecule they produce and moving each commodity along the value chain is a risk they carefully manage. In some parts of the Midland Basin, that means seven to 10 water trucks are needed for every oil hauler (if you’re 100 percent efcient). That’s a lot of trafc on West Texas roads and even where there is access to water pipelines, chances are trucks are moving it to the terminal. The ability to monitor driver and carrier safety is critical to managing risk.For many producers, water management is its own department with a head count that includes dispatchers, back-ofce and technology costs for eld opera-tions. A lot of paper tickets are gener-ated as a result, requiring the necessary accounting staff to process thousands or even tens of thousands of invoices per month from haulers. Field opera-tions and accounts payable also have to manage relationships with dozens or more haulers, requiring bandwidth and patience.Everyone has a stake in the game. Cost effectively moving a barrel of water and knowing where it is at all times enables producers to optimize production expenses and gain transparency into its disposition while enabling haulers to be more proactive, avoid deadhead runs and demurrage, and compete on price. Technology also enables carriers to run more efciently while being more envi-ronmentally responsible.Adding complexity, how produced water ends up at a disposal well or Reducing Lifting Cost with End-to-End Commodity Transportation Management By Jeff O’BlockPhoto courtesy of Shutterstock/Pavel Chagochkin

Page 7

Oilman Magazine / May-June 2021 / OilmanMagazine.com5OILMAN COLUMNtreatment facility often requires more than trucks. Across the country, a single molecule of oil, gas, NGLs or water is increasingly transported in multiple modes or intermodality. As such, once a molecule leaves the wellhead, stake-holders in the value chain must follow it across a mix of trucks, pipelines, rail-cars, ships, barges and vessels. Tracking even a single molecule through intermo-dal transportation is complex enough, so just imagine what it takes to see where the production stream is at any given moment, and effectively reduce or eliminate demurrage. Transportation management is critical in the digital oil eld.Just ten years ago, managing the physi-cal and accounting movement of water and other commodities was almost entirely paper-based – paper run tickets left in Mason jars, grease sheets for pumpers, physical invoices sent by haul-ers. Producers and carriers have mostly gone digital, even if they still exchange physical run tickets in the eld. Sup-porting hauling operations these days requires a raft of software and back-ofce capabilities, including inventory management, scheduling, invoicing, accounts payable, payroll and compli-ance. The persistent problem for most companies is that all of this – paper eld tickets, back-ofce software and the G&A to manage it all – is expen-sive, resource intensive and, at the end of the day, only provides a static view of where a commodity is in the supply chain.Three major waves of innovation have intersected to enable a paradigm shift in how stakeholders up and down the value chain move and track com-modities. The rst is the Cloud. With on-demand access from anywhere and automatic provisioning of storage and compute power, the Cloud created a Cambrian explosion of innovation and new opportunities to build software as a Continued on next page...Figure 1: Cloud-based transportation management system seamlessly connects producers with carriers in real time.Figure 2: Axle Hub users can follow orders on a map from creation to completion.

Page 8

Oilman Magazine / May-June 2021 / OilmanMagazine.com6OILMAN COLUMNservice (SaaS), avoiding the limitations and costs of traditional on-premise software.Secondly, mobile devices have brought real-time data access and acquisition into the oil eld. The smart phones that eld staff now carry in their pockets, and the tablets sitting in the truck, in-troduced exciting new opportunities to support lease assessments, the hauling process and tracking the molecule. This includes collection of key metadata for every molecule such as volume, gravity, BS&W draw and tank strapping. But these devices also carry real-time GPS, accelerometers, thermometers and cam-eras. The upshot is that a producer can now accept its run tickets digitally, then follow a water haul in real time to the end of its journey with a photo to mark each milestone.And nally, 5G brings data access to even the most remote of locations. It allows images to be transferred in real time and allows a large pipeline of data to be used for optimization of the whole supply chain.Transportation management has advanced further with innovators like Chorus Logistics, a W Energy Software company, that is executing on a road-map to provide upstream and mid-stream companies with complete visibil-ity into every molecule of production passing through the energy value chain. Its transportation management solution consists of a SaaS product called AXLE Hub, which provides back-ofce man-agement tools for inventory manage-ment, intermodal scheduling, invoicing, payroll and regulatory reporting.Connecting the eld to the back-ofce application is TollTagger, a mo-bile app designed for Apple and Android devices, that continuously synchronizes driver location, speed and status with the Cloud. It leverages articial intelligence algorithms to en-able adaptive routing similar to logistics systems used by UPS and FedEx. As a result, commodities are automatically routed along the most efcient path from wellsite to the nal destination and points in between. Importantly, AXLE Hub and TollTagger combine to create a two-way network that automati-cally links producers with their carriers to optimize logistics in real time and simplify transactions.The Opportunity for Upstream and MidstreamAXLE Hub and TollTagger lower the barrier for new water haulers to get into the business. The transportation management solution effectively deliv-ers a complete back-ofce for new and existing haulers, enabling the former to immediately start moving water and the latter to dramatically reduce G&A and technology costs.Moving produced water, or any oil-eld produced commodity, must be a well-choreographed dance to ensure trucks are constantly moving, not wait-ing in line with engines idling, and not burning deadhead miles (driving long distances with empty tanks). TollTagger choreographs this dance for the hauler, rerouting them if trucks are waiting in line at one location and providing turn-by-turn guidance that ensures they are always taking the most cost-effective routes. Haulers face many other challenges where automation can streamline business efciency. Consider the International Fuel Tax Agreement, or IFTA, which requires haulers to regularly disclose their fuel usage when they operate in multiple states, such as crossing the Texas/Oklahoma state line with a load or moving between U.S. states and Canadian provinces. Given the record keeping involved and complexity of IFTA reporting, staying up-to-date and compliant requires signicant time and resources each month. With the TollTagger app, however, IFTA reporting is completely automated because the system records fuel usage, calculates mileage and prepares requisite forms without any intervention from the carrier.The technology is also helping haulers get paid more and faster. Because many producers can take months to pay in-voices, haulers resort to invoice factor-ing or selling their accounts receivables to a third party for less than they’re Figure 3: Executive Dashboards display real time status.Lean, well-orchestrated hauling operations can trim 30 cents or more for every barrel of water trucked. For haulers it’s a competitive advantage and, for many producers, the reduction in lifting cost can be the difference between making or losing money.

Page 9

Oilman Magazine / May-June 2021 / OilmanMagazine.com7OILMAN COLUMNworth (typically around 80 percent), trading revenue for immediate cash ow. With carriers and producers doing business through AXLE Hub, hauling invoices are automatically aggregated across all carriers, profoundly simplify-ing the invoicing process for the pro-ducers involved and enabling haulers to get paid on the same day in some cases.Lean, well-orchestrated hauling op-erations can trim 30 cents or more for every barrel of water trucked. For haul-ers it’s a competitive advantage and, for many producers, the reduction in lifting cost can be the difference between mak-ing or losing money. Instead of receiv-ing thousands of invoices per month, AXLE Hub provides one consolidated invoice for producers, enabling them to shrink costs further by reducing the G&A and technology costs of manag-ing oil eld transportation in-house.AXLE Hub and TollTagger create new opportunities for pipeline operators too. Pipelines are only a partial solution to the country’s produced water challenge. AXLE Hub enables anyone to get into the virtual trucking business and of-fer their customers a complete water management solution. This enables a water pipeline operator to become an intermodal transportation provider by effectively creating a virtual trucking eet through AXLE Hub, which puts it in control of how and where customer water is moved. For pipeline infrastruc-ture and disposal wells that can cost billions to build, this puts more power in the hands of midstream service pro-viders to extract more value from their assets while extending their reach with a network of intermodal capabilities, including rail and marine.Building the Best End-to-End Energy Supply ChainWater management is just one facet of the complex logistical needs of today’s energy market. A dynamic industry re-quires more than a static snapshot into where a given commodity is. It requires a dynamic and real-time view into the ow of every molecule in order to op-timize costs and supply chains. Crude, natural gas, NGLs, water and rened products are increasingly moving along the value chain in a constantly evolving mix of pipeline, truck, rail, barge, ship, and vessel, underscoring the need for new ways to manage intermodal and cross-commodity transportation.Chorus Logistics (a W Energy Software company) is responding to the needs of the industry by offering each stake-holder in the value chain deep insight into where commodities are at every stage and at every moment. Equipped with its AXLE Hub and TollTagger technologies, upstream, midstream and downstream gain new agility, business performance and cost efciencies. Benets for companies along the value chain include:• Producers – Simplies invoicing, eliminates the transportation man-agement cost center, and provides a granular view into how, where and when commodities are moving.• Carriers – Increases operational ef-ciencies, reduces G&A and technol-ogy costs, and enables savings to be passed back to producers.• Pipelines – Provides customers with a complete intermodal transportation solution and enables the operator to control the destiny of the commodity it is moving.• Purchasers – Enables crude pur-chasers to source and streamline delivery of specic commodity grades and composition and respond to evolving market conditions.• Processors – Reduces transportation costs and risks, improves marketing operations, and keeps producers and customers up-to-date.• Reneries – Provides a deep view into long supply chains and enables visibility into the movement of clean fuels.More than ever before, energy com-panies need a holistic picture of the ow of commodities across basins and modes of transportation, viewed from the right lens in ways that support their business drivers in the energy value chain. Chorus Logistics complements W Energy Software’s overall vision of delivering the only fully unied oil and gas SaaS ERP, spanning upstream and midstream workows, including nancials, upstream accounting, land management, production operations, gathering, pipeline, plant accounting, marketing, trading and risk manage-ment.Bolstered with technology, energy companies are gaining new exibility to adapt and reduce transportation costs armed with actionable insights into commodity movement. Increasingly, the physical and accounting movement of hydrocarbons, water and rened products is being seamlessly managed through W Energy Software.Jeff O’Block has an extensive background in energy accounting and transportation. He is the founder of Chorus Logistics, the leading provider of cloud-based and mobile transportation manage-ment solutions (a W Energy Software company). O’Block co-founded Con-rmation Corporation, (acquired by the New York Mercantile Exchange in 2002), a developer of software that provides conrmation services to subscribed trading companies. He is co-founder of Texas Cedar Clearing, which has become a premiere oil ser-vices company in Texas specializing in seismic line clearing, road building, transportation, site preparation and cleanup, pipeline construction and right-of-way work. O’Block was also the co-founder of PSC Energy, the original developer of GMS, one of the most successful energy trading platforms that became a very popular trade capture, scheduling, and ac-counting system (acquired by Altra Energy in 2000 and now supported by Sungard). He has assisted pipeline companies in authoring tariffs and is an expert in pipeline operations. O’Block is also a pilot with more than 3,000 hours of ight time.

Page 10

Oilman Magazine / May-June 2021 / OilmanMagazine.com8OILMAN COLUMNWhile graduating from Texas A&M with a mechanical engineering degree, Dil-lon Bloodworth never expected that he would later be paving the way with an intuitive app designed to bring safety awareness straight to the hands of a workforce that needed it most. Now, with his Oileld Lessons Learned app, he can reach an audience as large as the number of people who own smart-phones.Bloodworth initiated his oil and gas career in 2013 as an operations engineer with BHP and now serves the industry as a company man. Throughout the dura-tion of his career, he has witnessed his share of unsafe behavior and incidents, but it was the repetitiveness that served as the catalyst for his development of Oileld Lessons Learned. He recounts an incident where a crewmember received burns from contaminated water and then discovered that the same incident occurred ve years prior with another individual.“This showed [that] the lack of acces-sibility of knowledge can be a major problem,” says Bloodworth. “At the time, there was no way of sharing incidents well. Companies were passionate about lessons learned but, when it came time to share or pull up old ones, it was in a database on your desktop or a le share that you could not lter well and could not give to everyone on location.”Bloodworth instantly realized that a simple solution was possible, but the disconnect was a failure to realize how important it was to make the information directly accessible by eld personnel. He decided to develop a solution of simplici-ty. The ability to populate a database with mistakes and safety incidents and en-able these instances to be shared would prevent death and loss of jobs. Oileld Lessons Learned accomplishes this feat by providing these various instances for all to read, study, discuss and use as a learning tool.Oileld Lessons Learned provides actual instances that serve as robust lessons de-signed to educate subscribers to prevent future occurrences. To accomplish this, real and applicable data must be collect-ed, which takes place through the mobile application. The challenge is in getting individuals to come forward and provide the data.“We have struggled to nd personnel willing to submit incidents due to fear of company retribution,” says Bloodworth. “When I reach out, however, they will send me the incident, ask me to scrub the data, and then I post it on the ap-plication. We have recently made the app anonymous to protect our users as much as possible.”To be proactive, Oileld Lessons Learned favors presenting information with corrective actions that are specic in nature. In an industry that emphasizes legalities and liabilities, publishing this exemplary quality of corrective actions can be met with a whole new set of chal-lenges. A certain responsibility accompa-nies the act of publishing mitigative acts that could enact liability issues of their own should they themselves fail if a sub-scriber attempts to use them in similar situations for which they were developed.“Much like IADC and BSEE, they cannot be held responsible by users by agreeing to the terms; we cannot be held responsible either in the same way,” says Bloodworth. “Our user IDs are pro-tected as well. We don’t even allow users to input their full names, so we rely on being anonymous.”The process of accessing the informa-tion from one’s trusty smartphone could not be easier. A simple download of the app and one is off and running to a safer work experience. Featured safety inci-dents are provided when opening the app and contain a synopsis of the incident. Recommendations are provided and the hazards are listed. Even the person responsible for the occurrence is made known. All this information serves as a collection of tools for the subscriber and is utilized to avoid similar situations and outcomes. A comment section allows the subscriber to provide feedback. This capability directly involves the user, but the functionality does not end there. The ltering process proves to be quite useful. The app can match incidents in your areas using location services. Ad-ditionally, incidents are searchable by various tags such as alarms. Categories also can be the center of an incident search and include topics such as drilling, casing and cementing. If the subscriber is interested in seeing data specic to a gen-eral area other than his own, searches can be isolated to regions like the Permian and Haynesville plays. Even the person responsible for the incident is searchable by occupation like the company repre-sentative or tool pusher. The signicance of such functionality provides a surplus of options in providing information to App Puts Safety Lessons in the Palms of Workers’ Hands By Nick VaccaroImages courtesy of OileldLessons.com

Page 11

Oilman Magazine / May-June 2021 / OilmanMagazine.com9OILMAN COLUMNthe user. The scenarios compiled are only valuable if they are located and used. These multiple methods of extraction make this possible.Bloodworth indicates that the lter-ing process was a major concern when developing the app. Discussions with Schlumberger and bp personnel provided the direction taken as their systems were difcult to navigate as incidents were hard to locate because keywords did not allow for the process of ltering down.“With our trickle-down ltering, you can either nd out if the incident you’re looking for is there or, if it’s not, as well as overlapping safety categories,” says Bloodworth. “Another user at bp recently said he wanted a system where he could pull all dropped objects and all working at heights but in many systems, you have to choose one or the other when submit-ting an incident. In our system, you can select multiple entries.”The Oileld Lessons Learned app is rooted in a user-friendly website, Oileld Safety Software | R-14 Apps | Les-sons Learned App (oileldlessons.com), where how-to directions can be found to provide a step-by-step guide to using the app. Additionally, a barrage of articles on the website expound on the theme of safety. A free demonstration can be taken advantage of so that the user gains the most capability while navigating the app itself. To further allow for ease of use, the app is customizable and live support is available.According to Bloodworth, there is a cost associated with app customization. Spe-cic inputs and outputs can be crafted to the user’s liking. Companies that use the app also can have it designed to display incident submissions for only their list of users. In the spirit of the app and using the information for all to learn from, Bloodworth does not necessarily favor such customization efforts.“This detracts from our current mission, but could be a start, where we could incentivize them to submit incidents to the general database for a cut of their monthly costs.”While safety is a global concern and not exclusive to the oil and gas industry, the Oileld Lessons Learned concept was designed with a domestic audience in mind. Although it is available to all and the path of least resistance is sought, Bloodworth shares that most users are found outside of the United States.“The places where we have a majority of our users are Pakistan, India and Sudan. These users are reaching out to me to ask for more content local to their area that they can learn from. So, our largest growth may be in the second and third world nations that are coming into the drilling game.”When discussing input by major players such as Chevron and Royal Dutch Shell, Bloodworth feels they have their own systems in place and would not likely deviate toward his concept. However, he suggests companies of such size and magnitude might be more in tune with displaying good social proactiveness by supporting a collaborative process like Oileld Lessons Learned.“The world is becoming more open-sourced and collaborative. This is the future of sharing incidents and mistakes. I just don’t know which major is going to support us rst.”Bloodworth’s commitment to ensuring a safe working environment is a direct inuencer of his primary goal, which is arming oil and gas workers with all industry mistakes and incidents so they can learn from these occurrences and refrain from repeating them. He wants to perfect the system for oil and gas and then continue his mission by targeting additional high-risk industries like con-struction.Taking on incidents and injury with smart technology, the Oileld Lessons Learned concept supplies everything needed to combat unwanted outcomes. Each pathway can lead to success. The challenge is simple utilization.“Even with me it’s a struggle to review one lesson per day but, when I do it dili-gently at work, I notice I am more aware of the mistakes and incidents that can happen,” says Bloodworth. A summari-zation of success can easily be dened as simple repetition in using the Oileld Lessons Learned app to eliminate repeti-tion of incident and injury.Nick Vaccaro is a free-lance writer and pho-tographer. In addition to providing technical writing services, he is an HSE consultant in the oil and gas industry with eight years of experience. Vaccaro also contributes to SHALE Oil and Gas Business Magazine, Louisiana Sports-man Magazine, and follows and pho-tographs American Kennel Club eld and herding trials. He has a BA in pho-tojournalism from Loyola University and resides in the New Orleans area. Vaccaro can be reached at 985-966-0957 or navaccaro@outlook.com.

Page 12

Oilman Magazine / May-June 2021 / OilmanMagazine.com10OILMAN COLUMNFor Connor Albrecht, landing a job in the vice-grip tight oil and gas labor market came down to simple doggedness and inventiveness. After being pink slipped as a petroleum engineer earlier this year in the industry’s latest bust, Albrecht knew he needed to start some high-octane networking.“I became more exible than most, more persistent, more creative, more trusting in God’s plan and became an expert at networking and landing an interview without getting lost in the shufe of applying online,” says Albrecht, referring to a well-known secret that about only one in four online applications is seen by a human.Out of a job, the 27-year-old rented his Austin, Texas, home and headed west to rural New Mexico for employment after reaching out to an independent oil company executive. Now, he’s working on an operations/production engineering team overseeing operations of six wells and monitoring the batteries/facilities for daily maintenance and upkeep.Albrecht says he went from ying in private planes to living in a man camp in the middle of nowhere within a couple of weeks. “During a recession of this magnitude, you have to be willing to relocate, take on another role and just be all around more exible if you truly want to compete in this industry,” he says. “Wherever a company needs you, you have to be willing to move on a dime without thinking twice.”After being in the oil and gas industry a few years, Albrecht says if a person isn’t willing to move every few years, the sector isn’t for them. “If you view many older and experienced petroleum engineers’ resumes, you will notice a trend of continuous relocation throughout their careers,” he observes.His new employer, Ameredev, is a small, privately backed company, creating a jack-of-all-trades situation, an aspect Albrecht enjoys. Working for majors often pigeonholes employees in one job and they can’t branch out, he says.Man Camp Livin’With his “Reduction in Force” notice came some tough choices. After leasing his house to cover the mortgage and property, he headed west and ended up in the oilelds of Lea County, New Mexico, where the living conditions and landscape are far different than urban Austin.“[I’m] currently living in an oileld trailer park during my 14 days on,” he says. “I’ve been living out of a suitcase/homeless for the last few months…”Albrecht says working in rural New Mexico got him away from all of Aus-tin’s distractions. Now, he’s adopted a daily route of Bible study, where he’s writing down and answering a series of gratitude/purpose questions, journaling, reading and going to the gym. He keeps three journals: “Walk the Path,” where he pens his daily Bible study scriptures, and another labeled “YouTube Univer-sity,” where he writes down what he learned from the online platform. The nal one is “The Journey,” which is Career Downturn Leads to Journey of Discovery By Daniel TysonPhotos courtesy of Connor Albrecht

Page 13

Oilman Magazine / May-June 2021 / OilmanMagazine.com11OILMAN COLUMNmore of a memoir/chronicle of success lled with life lessons and triumphs.Albrecht says living out of a suitcase for 14 days does have its advantages. “I have been travel-ing quite a bit on my days off to vacation, visit friends and fam-ily,” he says. The non-traditional work schedule allows him time to explore starting a side hustle in property management. In addition to his Austin house, he recently signed on another property to es-tablish an Airbnb/short time rental in Nashville, Tennessee. “I plan to continue to keep monetizing and adding on units that will [create] cash ow; therefore, I do not have to rely on the volatility of the oil and gas industry in the long term.”“A cool perk of my schedule is that I have the ability to take a [seven] day vacation every two weeks with a 14/7 schedule. Some people would kill to be able to take off [seven] days bi-weekly. But every-thing has a price and not everyone could manage working weekends to get there.”However, Albrecht admits the remoteness of southeast New Mexico is hard at times, saying it’s his only dislike of the job. It’s tough mentally being in an isolated location with no chance to see friends and family for two weeks. It’s especially hard on the week-ends when friends are out enjoying life and he’s working in the desert in the middle of nowhere. His maturity has helped offset those feelings of isolation. “When I was straight out of college work-ing for Haliburton in south Texas, I remember getting severe FOMO (fear of missing out); however, I have matured since then after going out nearly every weekend [while] working in Austin. It is much easier for me to work week-ends now [knowing] I have been there and experienced the outdoor action and city nightlife.”Not a Lifer?While some in the oil and gas industry decide to take a sever-ance package to relax or retire, Albrecht has decided on dogged-ness. “I took the initiative to nd a job right out of the gate to make a double salary this year…to set me ahead of my peers nancially and begin investing the capital in real estate and the stock market. I considered taking some time off and traveling the world; however, the pandemic didn’t encourage this. Therefore, instead of traveling, I got back to work pursuing my goals.” Albrecht adds that nancial responsibility came at a young age when he opened his rst Roth IRA account at 14 with earnings from mowing the lawns of friends, fam-ily and church members. Albrecht, a Texas Tech University alum, recommends a similar path for some in the industry, but warns it’s not an avenue everyone should explore. “If you are single and don’t have kids, this would be a no brainer. Like I said, you must be exible in the oil industry if you want to make it in the long term and succeed. This may be more difcult on the average family [person]; however, it is denitely doable, and people do it every day.”To the thousands of oil and gas veterans who lost their positions during the pandemic, Albrecht has a bit of advice: Don’t go low, go high. Go to the top levels when ap-plying for a job. “I have never got-ten a job or interview by applying online. I go straight to the source which separates me from the rest of my peers.”Dan Tyson has covered the energy industry for more than a decade, focusing mainly on coal and natural gas.

Page 14

Oilman Magazine / May-June 2021 / OilmanMagazine.com12OILMAN COLUMNWhile there are some who may still wax poetic about the days of cassette tapes, CD players and boomboxes, reports show that Gen Z represents roughly one quarter of the oil and gas workforce. Still, there are probably some of you reading this who do not know what those things are or how they work. In the advent of Napster, LimeWire and the ensuing revolution-ary shift in the monetization model of the music business, record labels, music artists, movie studios and a vast majority of the lm and music enter-tainment, business caused an uproar over the perception that artists would have no way to monetize their craft anymore and these downloads would be a death knell to the industry and was paramount to theft. In truth, the industry evolved to cre-ate innovative revenue streams and is better off for it today. The ubiq-uity of music through streaming and other platforms has positively democ-ratized the business and changed the game forever. There are numerous similar examples, yet human nature is to be skeptical of change until the req-uisite trust is built through time, ad-aptation and familiarity. As the world progressed from horses to cars, can-dles to electricity and printing presses to telephones, there were certain jobs that became obsolete or dramatically changed in scope upon the onset of these new protocols. Some of these workers took on other roles within the same company or industry, some found occupations in other industries, and some would simply automate ele-ments of their workow but kept their position due to the inherent nuance required to do the job effectively. Arguably, the most impactful result of these leaps forward in technology and the correlated efciency has repeatedly been the litany of new niche markets, products, services and support staff these new positions and industries require. For example, Glob-al Market Insights has projected that the digital oil eld market will exceed $35 billion by 2026 and the intense focus on the environmental, social and corporate governance (ESG) elements of the energy business will require signicant manpower to support those new standard operating procedures. Further, recent reports indicate that approximately half of overall tasks done by humans today could be automated with current technology. The AI-driven predictive analytics and preventative maintenance capa-bilities already deployed in the eld have enabled rms to more accurately and quickly strategize, operational-ize, troubleshoot, monitor and revise operations. A signicant barrier to entry for many rms, at this point, is the availability of employees with the skills necessary to collect, analyze, interpret and operationalize all of the available data without bias, as the director of data science at CLARA analytics, Jia Li, pointed out in a recent Forbes article. “To build this team in-house, you will have to hire more than just data scientists. Full deployment of a new solution requires product managers, software engineers, data engineers and operational experts to develop process and operational workows, staff to integrate data models into operations, people to manage onboarding and training of the employees who will ultimately use the solution, and staff Your Oil Field Job Has Been Automated. What Now? By Ben Samuels Photo courtesy of Weerapong Khodsom – www.123RF.com

Page 15

Oilman Magazine / May-June 2021 / OilmanMagazine.com13OILMAN COLUMNwho can quantify value generation.” Operators with insufcient or in-complete data, whether from poor records, faulty measurement instru-ments, lackluster maintenance stan-dards or other factors are in constant “reghting” mode to tackle the next critical issue to come up on one of the sites they oversee. In an industry which continues to be starved of li-quidity, stability, supportive regulation and investor condence, accurate and real-time data powered by AI is the next giant leap forward that will keep the men and women of our industry out in the eld and the rigs continu-ing to break ground with increasing efciency, prot and safety; however, AI is only as good as the input data it is trained on, so implementation is critical. To add to the complexity, the oil and gas industry has some bad habits regarding accurate data across an entire operation, often experienc-ing gaps in these data streams, which can be problematic at the automation stage. Gigabytes upon gigabytes of data are generated daily at each and every wellsite and, if any inherent bi-ases or other disruptive anomalies are introduced into the “training” of the AI, the output will mirror these aws in its calculations and determinations.“Digitalization will be the backbone of the energy transition,” says John Markus Lervik, CEO and co-founder of Cognite. “Instant access to trust-worthy contextualized data for better business decisions will transform the industry. Those who invest in their digital agendas and focus on scalabil-ity and democratized user enablement will continue to lead the way and in-crease sustainability, safety, effective-ness and protability in the process.”There will be opportunities for work-ers who were displaced by the auto-mation process to ll these roles once they are properly trained. Coupling the expertise of engineers, geolo-gists, landmen and others with the predictive power of AI will yield far better results than either physics or pure AI could attain singularly. In an exceedingly competitive, complex and challenging industry like oil and gas, increasing efciency, decreasing downtime and quickly adapting to new environments are all collectively and individually critical to long-term success. While traditionally slow to adopt new ways of doing things, the industry recognizes the immense potential of articial intelligence (“AI”) and machine learning (“ML”), which is a subset of AI, and the ball is only beginning to pick up steam, rolling downhill in the last couple years. As AI software and hardware incremen-tal costs decrease and opportunity costs increase, there are innumerable ways in which downstream, mid-stream and upstream rms have and will continue to incorporate machine learning into their operations. Ac-cording to the 2020 New Directions, Complex Choices study, published by DNV GL, 85 percent [of survey respondents] expect to maintain or increase spending on operational as-set efciency in 2020, while most (80 percent) will also maintain or increase investments to extend the life cycle of their existing assets.“In our industry today, we waste so much time redoing things,” says Julie Cranga, vice president Subsea, at TechnipFMC. “We are too document-centric; engineers have to spend too much time trying to access reliable information. We see digitalization as a way to solve these issues, boost our efciency and reduce our costs. It is also a way to help us reduce the num-ber of people we have offshore. This is mostly because we want to limit risk, but it also helps lower costs.”Over just the last eighteen months, we have seen Microsoft and Halliburton announce a strategic agreement to enhance Halliburton’s digital platform and build out the framework to support these automation initiatives across every division of the company; the University of Houston open the Articial Intelligence Industry Incubator and Digital Oileld Lab; data giant Enverus DrillingInfo’s primary nancier sell a majority interest to a private equity rm with a focus on SaaS solutions; the Department of Energy (DOE) announce a $35 million grant to support clean energy and climate solution technology research; Egypt and Schlumberger collaborate on an initiative to model the national subsurface estate through enhanced modeling and numerous other major announcements. The race to rene and enhance these tools and reap the benets is on; those that choose not to innovate will be left behind to slowly dissipate.Ben Samuels, CEO of Source Rock Midstream, and chief growth ofcer of Blu Capital Resources, is an entrepreneur focused on the energy markets with an innovative and collaborative approach to the issues facing the industry today. Based in Midland, Texas, since 2014, Samuels has had a front row seat to the boom-and-bust cycles of energy investment and development, which has helped form his view on the markets, domestically and internationally. Samuels is a stakeholder in a litany of ventures across the energy markets value chain, with an emphasis on value creation, innovation and risk mitigation. His podcasts, Don’t Let The Facts and Coffee & Liquidity, and body of work for The War Room, Oilman Magazine, Energy Brushback Insider and others, all speak to Samuels’ motivation to be a voice for the underserved and a positive force in the lives of those around him. When he is not producing content for these channels, he can be found immersed in other passions such as sports cards and cooking. Find Samuels on Twitter: @baspermian.

Page 16

Oilman Magazine / May-June 2021 / OilmanMagazine.com14OILMAN COLUMNOILMAN COLUMNIt is no secret that the upstream oil and gas industry has been under increased scrutiny from environmental, social and governance (ESG)-conscious investors and the public regarding the environ-mental impact of their operations. One issue that has been under particularly intense scrutiny is what happens with methane gas (the primary component of natural gas) that is produced as a byproduct during hydraulic fracturing or “fracking.” Many oil and gas companies utilize gas aring to relieve pressure, prevent risk of explosions, release gas-eous waste products and safely combust volatile organic compounds (VOCs) but, due to both regulatory and inves-tor pressure, aring is becoming less accepted. For example, the Biden administration recently passed an executive order call-ing for the EPA to review their methane emissions policy. In addition, companies like bp plc, ConocoPhillips and Chev-ron have joined global initiatives like the World Bank’s “Zero Routine Flaring by 2030” to curb gas aring. As aring becomes less common, the upstream oil and gas industry will be forced to adopt alternative ways of dealing with byprod-uct natural gas that would otherwise be burned off by aring. Understanding Flare GasMethane gas is typically produced as a byproduct during the completion of hydraulically fractured oil and gas wells. Water is pumped into the formation to fracture it and allow for higher recovery of oil and gas. As this water returns to the surface, it brings methane and other materials like drilling mud, VOCs and the chemicals that are used in fracking. Methane is a known potent greenhouse-gas (GHG); thus, the release of this gas is heavily scrutinized by regulators. Flaring has historically occurred when there’s inadequate infrastructure to capture and sell gas. One of the rea-sons there has been a rise in aring over the last decade is because of the increase in unconventional drilling in shale plays like the Permian Basin and the Eagle Ford in Texas and the Bakken in North Dakota. These areas are heavy oil shale plays and the rapid expansion of drilling has left gas infrastructure lagging, thus exacerbating the need for aring. “Clean Fracs” to the ESG Rescue?So-called “green completions” or “clean fracs” allow for the safe capture of byproduct natural gas with reduced emission of GHGs compared to ar-ing. As investors become more socially aware and environmentally responsible, upstream oil and gas companies are being held to higher ESG standards. Therefore, this trend makes it crucial that companies use techniques like green completions to minimize their envi-ronmental impact – the “E” in ESG – which will attract and retain investors.To understand why green completions are a safer and cleaner alternative to ar-ing, the process of aring should be un-derstood rst. Flaring is the burning off excess gas that is created as a byproduct of completions. After water is used to hydraulically fracture the targeted forma-tion in an oil or gas well, it ows back to the surface, bringing associated natural gas with it. This gas cannot simply be released into the atmosphere because it naturally surfaces as methane, a potent GHG. Therefore, a system must be put in place to safely dispose of this gas. By combusting (aring) the CH4 meth-ane, the molecules are separated into less harmful CO2 (carbon) dioxide and H2O (water). Flaring is commonly used because it lowers the environmental im-pact of byproduct gas while not adding large costs to the well drilling process. But, aring still releases carbon dioxide, which is less harmful than methane, into the environment and when this is done in large quantities, it negatively impacts For ESG Investors, “Clean Fracs” Could Mitigate Environmental Impacts By Mason Anderson Photo courtesy of Robert Wilson – www.123RF.com

Page 17

Oilman Magazine / May-June 2021 / OilmanMagazine.com15OILMAN COLUMNthe environment. Flaring also burns off the methane gas that could have been taken to market and sold, which is seen as a wasteful practice by the “Zero Routine Flaring by 2030” initiative. The recent focus on the environmental impacts of upstream oil and gas activ-ity has brought more scrutiny to the practice of aring, leading companies to search for an alternative method to handle byproduct gas. Green completions differ from aring in that they separate byproduct gas from the water that ows back to the surface of the well and they allow for the by-product gas to be sold instead of burned off. The “Overview of Reduced Emis-sions Completions (RECs)” by the EPA (see diagram below) lays out an example of the REC process, which is a more technical name for green completions or clean fracs. This specic diagram was adapted from a bp presentation. As shown in the diagram, the benet of this system when compared to aring is that owback gas can be sold after it passes through the separator (if the quality of gas meets the gathering sys-tem specication and there is access to a sales pipeline). The greatest benet of this system is that no methane needs to be ared, eliminating the need for releasing GHG emissions. Benets of this process include reduced disposal costs and improved public relations. The diagram above represents equipment that would be transported to the wellsite when the completion process is started. This equipment is mobile and can be trans-ported to multiple well completions, which can make an investment in the equipment more economical. Below is an example of what the equipment might look like on-site, per the afore-mentioned EPA document.So, the question remains: Why are green completion methods not more preva-lently used instead of aring? Like any solution, these methods also have hur-dles to clear. The primary concern when performing a green completion is access to a sales line/gathering system for the gas output from the green completion equipment; without access to a sales line, there is likely no way to transport the gas off-site and, therefore, aring is the preferred method for disposal of byproduct gas. Additional hurdles include the invest-ment in, or rental of, the specialized equipment by the upstream oil and gas producer, stock tanks if wells are producing high amounts of condensate; and gas quality must meet strict speci-cations before it’s shipped in nearby sales lines. Lastly, supply for natural gas is currently abundant, which has kept prices low, thus the marginal benet of selling the gas that outows during green completions can be minimal from a revenue perspective. Staying Ahead of the CurveRegardless of hurdles, as the upstream oil and gas industry continues to face increased investor, environmental and regulatory pressures, aring, unless required for safety, will continue to become less accepted, which will push the industry into greener methods of completion. Embracing these techniques now will help upstream oil and gas com-panies stay ahead of the curve, especially as ESG reporting and transparency increases. Mason Anderson is a consultant in Opportune LLP’s Complex Financial Reporting practice based in Houston. Prior to Opportune, his experiences included internships at Dell Technologies and the Texas Permanent School Fund. Anderson graduated magna cum laude in May 2020 from Texas A&M Univer-sity with a BBA in Finance as part of the Business Honors Program. Image courtesy of bpPhoto courtesy of Opportune LLP

Page 18

Oilman Magazine / May-June 2021 / OilmanMagazine.com16OILMAN COLUMNHeadversity is a workplace mental health support service that helps em-ployees talk and deal with their mental health, often a frowned-upon topic in industries such as oil and gas. If any-thing, during the pandemic, we have been able to open up more about our mental health and it is becoming more commonplace and acceptable in many workplaces, including oil and gas. Eric Eissler: How do you make your services known to your potential clients in the oil and gas industry? As we know, this is normally not an easy group to talk to about these things. Ryan Todd: We’ve been fortunate to grow into oil and gas through organiza-tions’ focus on health and safety, and leadership’s recognition that psycho-logical health plays a huge part in this. Leaders understand there’s a direct correlation between workplace injury and high stress levels, with 60-80 percent of workplace injuries being a result of stress. Previously, when the world al-lowed for it, we had the chance to speak at a couple industry events with a few oil and gas companies and, thankfully, our unique approach to workforce mental health resonated. Throughout the pan-demic, we’ve also attended some leader-ship forums with oil and gas execs that have made a few introductions. But, for the most part, we’ve had the good for-tune of growing in the industry through referrals from the great relationships we’ve built.EE: Do you feel that COVID-19 has been helpful for more companies in this space to realize the importance of caring about the mental health of the workers in the oil and gas industry?RT: It’s denitely accelerated things. One thing throughout the pandemic is that, for the rst time ever, we’ve all experienced mental health. Whether loneliness, isolation, depression or even anxiety over job security and nances, this has been tough on everyone. Lead-ers and employees at all levels have felt it. We saw statistics early in the pandem-ic out of the University of Houston that 28 percent of employees in the energy sector had six or more “bad mental health days” in the previous month. These gures have seen a huge jump and companies have felt it.EE: It is very hard for many men in this industry to reach out for help. What are some things that you say or do to help clients feel comfortable when they initially seek help? RT: What we do that I think has really resonated with this industry is design a proactive mental health experience. We believe that mental health has had a seri-ous brand problem and for this industry, in particular, that needed to change. Support in place up until now has focused on rehabilitating people who’ve fallen ill or need to return to work after a prolonged absence. We knew that to reach workers in this industry, [many of whom] work with their hands and are DIY types who prefer to be in control, we needed to give them tools to pro-actively build up their mental wellbe-ing. And, on the employer’s end, it was about helping them build a culture of mental health and psychological safety and working with them as an extension of their team to help with this. Putting them at ease has been two-fold: the rst is an anonymous, personalized experi-ence for each worker on our platform, and the second is cascading mental health as a company priority from lead-ership down.EE: What is the biggest fear that most mention when seeking help? Are they more worried about what their boss or their co-workers would think about them if they would nd out they are getting help?Interview with Dr. Ryan Todd, CEO and Co-founder of Headversity By Eric EisslerPhoto courtesy of headversity

Page 19

Oilman Magazine / May-June 2021 / OilmanMagazine.com17OILMAN COLUMNRT: Our platform is more about giving employees an inexhaustible skillset to build up their mental health and re-silience, so that’s the major difference versus coming to us for help. But the experience is entirely anonymous and personalized, and that’s why I think we’re not getting these same stigmatic concerns that have plagued the industry and people from getting the help they need. Employees can use it and, when needed, get directly channeled to their Employee Assistance Program (EAP) or Employee and Family Assistance Program (EFAP) or general crisis line, if they’re in distress. EE: What are some of the usual/gen-eral results that you see in most cases after they start seeking help?RT: Results have been really strong. Quantitatively, employers are seeing their workforce use our platform at ve or six times the rate of their EAP or EFAP programs in place. Qualitatively, we regularly hear feedback from employers about how this has made a huge differ-ence in their company culture, and from employees [there is] a sense of relief at how the simple tools and approaches on our platform have reduced their stress and improved their overall mental wellbeing. EE: Do you feel that once you have established a good connection with a client that individual seems to perform better at his job? If yes, could you say that seeking help and establishing a routine with a counselor is not only something benecial for the individ-ual, but for the company as a whole? In other words, the more workers that have help, the better they perform, which leads to better overall perfor-mance for the company?RT: The evidence-based approaches on our platform were born out of practices used in psychiatry and performance psychology for more than 20 years in clinic. On the performance psychology end, one of our founders, Dr. Karen MacNeill, consults with the Canadian Olympic team, so performers on the highest global stage use practices that are built into our platform. Without question, if one were to apply these principles, they would see improvement in both their personal and professional life.EE: Where do you see the state of men-tal healthcare in the U.S. in 10 years? Could you say that COVID-19 has already sped up the progress of mental health awareness in the oil and gas industry and beyond?RT: That’s a tough question! In the last decade, some of the stigma has eroded and awareness has increased dramatically overall. But, from a solution standpoint, where we’ve been with mental health isn’t sustainable. As a clinician, the queue for patients to see me is normally upwards of six months, which, to me, highlights a broken system. I look at the future of mental health being, in large part, humanless. We need to take the strategies deployed in clinics and put them into digital formats so they’re ac-cessible to the wider public immediately. The younger population is already push-ing for mental wellbeing so, in a span of 10 years, I think we’ll see stigma start to eradicate and wider acceptance that we all have mental health, that we’re not limited to “well” or “ill.”

Page 20

Oilman Magazine / May-June 2021 / OilmanMagazine.com18OILMAN COLUMNIn the oil and gas industry, the complex design and engineering of Extended Reach Drilling (ERD) wells, which may have horizontal sections spanning more than 20,000 feet, introduce signicant challenges to meeting specic drilling and geological well objectives. Drilling to ensure that all reservoir objectives are met requires the deployment of custom-ized Logging While Drilling (LWD) technologies that will provide real-time, subsurface formation data for on-the-spot reservoir analysis.An amalgam of adverse downhole drill-ing conditions is responsible for high shocks and vibrations on the bottom hole assembly (BHA) while drilling. These might include difculty in trans-mitting drilling weight effectively from the surface to the drilling bit, leading to negative revolutions per minute (RPM); drilling through non-homogeneous formations; and increased contact with the formation due to the size selection of the drill pipe and stabilizer. If these conditions are not effectively eradicated during the BHA design phase, adequate mitigation measures are required once drilling commences to prevent premature downhole tool failures. This typically in-volves nding a combination of drilling parameters such as Weight on Bit (WOB) and RPM that offers the least damag-ing effect on the BHA. Some cases also may require pumping mud lubricants to reduce friction.In ERD wells, the formation pressure at well total depth (TD) must be able to transport the formation uids (oil and gas) to the surface post-completion. Real-time formation pressure measure-ments taken while drilling will help in calling TD, especially while drilling in reservoirs that have been producing for some time and where pressure deple-tion is expected. Formation pressure (pressure exerted on uids in the reser-voir pore spaces) varies with depth and exerts an energy which normally drives the formation uid post-drilling from regions of high pressure (downhole) to low pressure regions (surface). Because this reservoir energy reduces over time, an accurate idea of the formation pres-sure prole is critical in determining total depth (TD) of a well being drilled. Figure 1 illustrates how, in development elds where multiple wells have been drilled and are producing, the reservoir energy drops, leading to eventual depletion: pressure points taken over time indicate a decrease in formation pressure.Injector wells can help generate addi-tional oil and gas production in depleted reservoirs where there are no faults or ow barriers. After drilling the injec-tor well, water or gas (or a combination of both) can be pumped in to increase the reservoir pressure in the connected producing well. Figure 2 shows how low reservoir pressures can be increased to drive production output.Formation pressure measurements are taken while the drill string is stationary, requiring zero rotation or movement during drawdowns to prevent damages to the pressure probe and piston. Once the sealing rubber on the formation tester tool is damaged, getting a seal (complete isolation with uids in the an-nulus) with the formation will be almost impossible, leading to pull-out-of-hole (POOH) events. In the past, having an idea of formation mobility could help in selecting the correct type and duration of pressure tests. High-mobility forma-tions have faster pressure buildups, while low-mobility formations require more time. These delayed buildups can lead to extended stationary time which, if not monitored, can pose a risk of differential sticking, such as stuck pipe incidents in which the rig will need to implement a series of anti-stick activities to free the BHA. And in those cases where LWD tools in the BHA contain radioactive sources, all efforts to free the stuck pipe must be made to prevent loss of the sources. Further complicating matters, LWD Versus MAD Pass Formation Sampling in ERD Wells By Adedayo IrokoPhoto courtesy of Adedayo IrokoFigure 1: Reservoir pressure prole indicating depletion over time

Page 21

Oilman Magazine / May-June 2021 / OilmanMagazine.com19OILMAN COLUMNmost of the formation pressure testers are modular in design, with interconnected modules, which in very high downhole shock envi-ronments can undergo lateral and transversal vibrations that may lead to damages in electronic and mechanical components prior to reaching the pressure points. These two concerns often prompt oil and gas operators to have a dedicated run post-drilling for the evaluation of formation pres-sure. This dedicated run, called the Measurement After Drilling (MAD) pass, commences after drilling is completed and the well is in a stable state. The MAD pass occurs most often after a series of bottoms-up circulation for hole cleaning and well monitoring to conrm that the well is not ow-ing prior to pulling out of hole with the drilling BHA.MAD passes offer minimal adverse downhole conditions during formation pressure test-ing, less chances of stuck pipe incidents (due to small BHA contact areas with the formation), and can be utilized for additional clean-out runs prior to running the completion string(s). Pres-sure measurements during MAD passes in ERD wells typically take an additional 48 to 72 hours of rig time – from tripping in hole, tak-ing pressure points and pulling out of hole. Yet, because the pressure points taken during MAD passes are post-fact, they are generally not benecial for real-time drill-ing decisions. Hence, selecting the appropriate pressure testing pass is critical to meeting all reservoir objectives. Some of the real-time benets derived from LWD formation pressure measurements that are not available in MAD Passes include:• Optimization of mud weight: formation pressure measure-ments can be used to identify pressured zones and can help in adjusting mud weight to match reservoir pressure, ensuring that drilling can continue safely with reduced drilling kick risks.• Optimization of reservoir hole length: formation pres-sure measurements taken along Continued on next page...Figure 1: Reservoir pressure prole indicating depletion over time

Page 22

Oilman Magazine / May-June 2021 / OilmanMagazine.com20OILMAN COLUMNthe reservoir path help in conrming whether reservoir pressure at specic depths is sufcient for normal ow of oil and gas formation uids to the surface.• Mobility guided steering: forma-tion pressure measurements taken along the well path will help in avoid-ing high viscous reservoir uids like bitumen or tar in known reservoirs. These viscous layers cannot be de-tected with conventional resistivity/density logs, and can only be identi-ed using mobility measurements derived from formation pressure. Pressure tests in tar are often dry (very low mobility), so the well can then be steered upward to move away from the tar layer.With the numerous benets provided by LWD pressure measurements, it is then essential to eliminate any drilling shortcomings and/or challenges to making this method the pressure test-ing mode of choice. BHA design must incorporate shock reduction subs and optimal Hevi-Wate drill pipes (HWDP), with sufcient quantity and placement to ensure efcient transmission of drill-ing weight from surface to the drilling bit. Also, ruggedization of the electron-ic chassis in the formation tester tool will reduce the lateral and transversal vibrations while drilling. Meeting both of these conditions will reduce the risk of premature tool failure. Another key factor is the reduction of stationary time while taking pressure points in low-mobility formations. This sta-tionary time has now been reduced with the advancement in software technologies in which the formation tester tool can determine the amount of drawdowns and duration for various mobility ranges instead of the xed time pressure point measurements.Every ERD well is planned to be deliv-ered within its approved authority for expenditure (AFE). This raises the im-pact on cost management, because all extra rig hours and days for additional runs – time that may have been avoid-able – will be reviewed, especially when these additional services can be deliv-ered while drilling. LWD also delivers critical information required to extend the length of the drilled reservoir. Ultimately, increased production capac-ity is available with LWD, as opposed to MAD pass runs, where information about formation pressure is obtained after drilling has been completed, mak-ing LWD the preferred pressure test for ERD wells.Adedayo Iroko is an engineer and expert in drilling engineer-ing management for the global oil and gas industry. As a geomarket resource manager in drilling and measure-ments for one of the world’s larg-est oileld services companies, he specializes in leading state-of-the-art ERD, MWD, and LWD operations. Iroko also brings his 15 years of oileld experience to training drilling engineers in new technologies and processes. Figure 2: Water Injection to drive reservoir pressureSUBSCRIBE 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

Page 23

2021 NAPE Summit is unocially brought to you by the eraser. We’ve planned, replanned and re-replanned our agship event in the wake of the COVID-19 pandemic — leaving trails of eraser shavings behind us — and now we’re preparing for a grand return to business in Houston in August. We’re ready to deal. Are you?2021 NAPE SUMMITIN PERSON: AUG 18–20 HOUSTONVIRTUAL: AUG 9 – SEP 3 NAPE NETWORKMake plans to attend, exhibit, sponsor and advertise. Register and learn more about our hybrid event at NAPEexpo.com.

Page 24

Oilman Magazine / May-June 2021 / OilmanMagazine.com22PETROLEUM ENGINEERING EDUCATIONDespite the advances that renewable sources of energy can provide, the use of fossil fuels is not dead nor is the fu-ture for those working in the petroleum industry. However, the discipline is in transition like the industry itself.If a recent article in the New York Times describing the plight of several disil-lusioned petroleum engineering (PE) students graduating this semester is any indication, Chicken Little might be right: The sky is falling. There are few offers or opportunities for new PE grads, the future for petroleum engi-neering looks murky, and the boom and bust cycle, common to the oil and gas industry, has been even more stark dur-ing COVID-19.Although this is not the time to down-play or belittle honest concerns about one’s future in an industry that has had severe economic twists and turns over the years, a look at the facts shows a dif-ferent picture. To be sure, it’s been a hell of a year for everyone; COVID-19 issues have not been kind to anyone, and for 2021 PE and other new graduates, academic life has been upended. Most students were displaced at the beginning of the pandemic, when colleges and universi-ties had to shutter their doors, making important lab and research work virtu-ally impossible. Given the current climate, it is un-derstandable that there is worry and concern among new and potential PE graduates in the pipeline as well as al-ready employed petroleum engineers.The oil and gas industry and its relation-ship with its engineers has always been cyclical in response to world oil politics, price uctuations in the commodities markets, and now the keen interest in renewables. Despite several tumultuous economic cycles, the industry has always managed to come back as evidenced by statistics and economic drivers.There are more than 17,000 petroleum engineers in the United States today, many of them graduates from PE pro-grams at prestigious American universi-ties, such as Texas A&M, the University of Texas – Austin, Colorado School of Mines, and others. In fact, Texas A&M International University (TAMIU) in Laredo, Texas, just recently approved the creation of a PE degree program.According to the Bureau of Labor Sta-tistics (BLS), employment of petroleum engineers is projected to grow three percent from 2019 to 2029, about as fast as the average for all occupations. Oil prices will be a major determinant of employ-ment growth. Higher prices can cause oil and gas companies to increase capital investment in new facilities and expand existing exploration and production (E&P) activities.Salaries for petroleum engineers have remained strong as well.Why PEs are Here to StayLast summer, the Society of Petroleum Engineers sponsored a webinar called The Way Ahead for Petroleum Engi-neering with Dr. Jeffrey B. Spath, chair of PE at Texas A&M, College Station, and Dr. Jennifer Miskimins, head of PE at the Colorado School of Mines, Golden. Both were aware of the jit-ters new graduates and new to the eld PEs were experiencing, with Miskimins acknowledging that many students are deeply concerned that PE will be “disap-pearing” with the increased interest in renewables. She stressed that the rising use of renewables will be more of a transition than a “switch.” PEs will still be needed for their expertise and train-ing and can expect career growth.The Death of Petroleum Engineering… is an Exaggeration By Claudia M. CaruanaPresident and Partner Cliffe Killam (L), Killam Oil & Gas, and President Pablo Arenaz (R), Texas A&M International University (TAMIU). Photo courtesy of Guillermo A. Sosa.

Page 25

Oilman Magazine / May-June 2021 / OilmanMagazine.com23PETROLEUM ENGINEERING EDUCATIONSpath also acknowledged the worries of students regarding petroleum engineer-ing’s “death,” stressing that the oil and gas industry looks to “problem solvers,” and PE students are trained to provide solutions. Another important takeaway is the fact that many PE engineering skills can be transferred to other areas of the industry.Also signicant are ndings discussed by Dr. Lloyd Heinze, a PE professor at Texas Tech University, who tracks PE enrollment gures. At the 2019 SPE Annual Technical Conference and Ex-hibition in Calgary, he told the audience that he expected the number of PE degrees conferred to continue dropping in 2020. His prediction came from a paper he co-authored, and which was pub-lished in the SPE Journal. It is based on statistics provided by PE depart-ment heads at the beginning of every academic year. In his observations, he concluded that petroleum engineering enrollment and the resultant degrees are inuenced by oil and gas prices, noting that the changes lag prices by 2.5 years. Although most of the data came from American universities, for the last ve years, the research has included non-American programs, too.Highlights of the study, contained in Source: PayScale ©Statista 2020The View from CanadaAre petroleum engineers at risk for extinction in the U.S.’s northern neighbor?It doesn’t seem so, if analysts at Ian Martin Group, an employ-ment consultancy based in Oakvlle, Ontario, Canada, are correct.In a blog post on their website, the analysts believed Canada’s petroleum industry was set to rebound in 2017. The analysts estimated that job growth would surge to 300 percent by 2018 before slowing slightly to 200 percent by 2024. “Regard-less, prospects don’t look as grim as they once did for these engineering jobs in Canada,” they wrote.And, there also seems to be some other good news from north of the border as well.According to the researchers, demand isn’t the only selling point for petroleum engineers. “Median salaries hover just be-low $105,000 per year, so these professionals can expect to live large. Petroleum engineers can also seek work with a wide vari-ety of employers, from govern-ment or research organizations to oil extractors and more.”Continued on next page...

Page 26

Oilman Magazine / May-June 2021 / OilmanMagazine.com24SPE 195908, also showed the num-ber of U.S. colleges and universities offering PE accredited programs had dropped from 35 to 20. Interest-ingly, PE programs in non-American schools have been steadily increasing since 2016.Dr. Pablo Arenaz, president of TA-MIU, emphasizes, “No future is with-out change and no future comes with a guarantee. The oil and gas industry is predicated on challenge and risk and it has always responded to both with commitment, intelligence and grit. The future of the industry will be no different.”He is quick to point out, “Oil and gas have been and will continue to be an industry of both great history and promise for years to come.”New directions in petroleum educa-tion might not be the same as they were in previous generations. Arenaz stresses, “We will encourage exibil-ity in our program development to accommodate teaching of cleaner/greener energy concepts and work to create graduates who can be nimble in their response to the changing needs of the industry.” No question, a college education is ex-pensive and working toward a degree in petroleum education is not easy. The last thing an upperclassman wants to hear is that initial career opportuni-ties in the discipline may be limited or even dwindling. So, should a student considering a pe-troleum engineering degree now look at the situation in the same way as Chicken Little’s proverbial falling sky?Chicken Little Might Need an UmbrellaArenaz stresses that he would tell prospective petroleum engineering students “the same as I would pro-vide any student pursuing any degree program: research the eld, look at all the options, meet with seasoned professionals working in the eld and get their insight. Many have seen the industry through highs and lows and can attest to what professionals can do to weather these changes and what newcomers to the eld might do to help ensure their success.”In reference to the university’s new PE degree program, Arenaz says, “The addition of PE to our engineering inventory has been a direction for the School of Engineering and the univer-sity since 2010 and reects our com-mitment to develop degree programs that are responsive to the needs of this south Texas region and the state of Texas.” The program was recently approved after a 10-year campaign following the vision of Texas oilman Cliffe Killam, president and partner at privately owned Killam Oil.Still Concerned About the Future?At the conclusion of bp’s annual en-ergy outlook meeting in March 2020, then-CEO Bob Dudley sought to allay the fears of a worried student who questioned the future of petroleum engineering. “A job or training as an engineer of any kind is so important. There is going to be a huge need for that.”To listeners still concerned about the role of petroleum engineers in the future, he referred to a presentation made by Spencer Dale, group chief economist for bp, whose outlook showed “oil demand likely will be growing until 2030, and remaining around 100 million bbl/d through 2050 while natural gas demand contin-ues to rise.”Dudley pointed out that the most downloaded SPE paper in 2019 on OnePetro was “The End of Petro-leum Engineering as We Know It.” While it describes the challenges PEs will face in years to come, in Arenaz’s opinion, “Bright, committed and intel-ligent petroleum engineers will always have a future.” Claudia M. Caruana is a New-York based science and environmental writer who teaches at NYU’s Stern School of Business. PETROLEUM ENGINEERING EDUCATIONAdvertise 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! OilmanMagazine.com/advertise • Advertising@OilmanMagazine.com • (800) 562-2340 Ex. 1

Page 27

Visit aveva.com to find out how our APM portfoliohelps you turn opportunity into business value.Asset Utilization+30%Unplanned Downtime-25%Asset Availability+20%Forge a path toward zero unplanned downtime. Empower your peopleto make informed decisions that continuously improve your organization’s agility, quality, safety and bottom line. AVEVA simplifies the complex. Experience the fastest and simplest way to increase reliability andproductivity. Deploy in the Cloud and realize value within days.linkedin.com/company/avevalinkedin.com/company/avevalinkedin.com/company/aveva@avevagroup@avevagroup@avevagroupaveva.comaveva.comMaximize YourAsset Uptime

Page 28

Oilman Magazine / May-June 2021 / OilmanMagazine.com26FEATURESun Coast ResourcesHelp is on the Way By Rebecca Ponton Long fuel trucks with Sun Coast Resources’ blue, yellow and white logo emblazoned on the sides are a familiar sight to those of us in Texas driving along the I-10 corridor, as is the story of Sun Coast’s founding by 23-year-old Kathy Lehne – one of the unique entrepreneurial stories in the oil and gas industry with a female protagonist. Over the years, Sun Coast also has gained a certain amount of name recognition in places as far away as Puerto Rico for its disaster relief efforts. After winter storm Uri, the Arctic blast that hit in mid-February 2021, nearly shut down the state’s electricity grid, and at its peak left millions of people without electricity – and some without water – more Texans have come to see Sun Coast as a reliable resource for everything associated with petroleum supply, particularly during periods of peril.As Kyle Lehne, Sun Coast’s chief busi-ness development ofcer (CBDO), explains, the company is constantly monitoring fuel markets and weather conditions, but “they’re [called] emergen-cies for a reason. Sometimes they can sneak up on you without much warning.” He says preparing for the winter storm was similar to anticipating a hurricane in the sense that he, Kathy and the Sun Coast team knew there were going to be issues with treacherous road conditions from ice and snow, as well as frozen wa-ter lines and burst pipes. Despite having some idea of what to expect, Lehne says, “You really don’t know the [extent of the] damage until the storm has passed.” Advance preparations include monitor-ing what type of emergency is anticipat-ed, brieng drivers, loading fuel, gather-ing all necessary equipment and materials – depending on where the affected areas are – and then being ready to mobilize when a customer calls.Sun Coast’s customers, which include federal agencies, city and county govern-ments and private businesses in Texas and other states, may call Lehne and his team when there is an impending natural disaster and share their emergency preparation strategies (or “game plans,” as Lehne refers to them). Seventy-two hours before a storm is projected to strike, the team starts getting tanks and fuel ready, topping off generators and,

Page 29

Oilman Magazine / May-June 2021 / OilmanMagazine.com27FEATUREdepending on the severity of the storm, may position a fuel trailer at a customer’s facility or schedule daily deliveries until the power or water source has been restored.While each situation is unique, Lehne says, “The bottom line is ensuring that our customers have the fuel they need to keep their businesses up and run-ning, and to make sure their employees can get back and forth to work.” Sun Coast is typically thought of as a fuel transportation company, but it also hauls water, delivers propane and has a thriv-ing lubricants partnership with Chevron. Currently, it also is partnering with oth-ers on transporting renewable fuels, as well compressed natural gas (CNG) and liquid natural gas (LNG). Sun Coast’s “whatever it takes” philoso-phy contributes signicantly to the com-pany’s long and storied history within the oil and gas industry. Sun Coast was founded in 1985 by Kyle’s wife, Kathy, who at the age of 23 took her $2,000 of savings and started the business. Under her leadership, it has prospered to be-come one of the largest woman-owned businesses in Texas, employing a eet of over 900 trucks, 850 professionals, with annual revenue totaling $640 million in 2020, despite the COVID-19 global pandemic.Part of Sun Coast’s success is Lehne’s insistence that you never tell a customer “no,” a belief that permeates the compa-ny’s culture from the top down. Potential employees are made aware of expecta-tions during the interview and onboard-ing process. “If a hurricane comes in, they’re not going to be surprised if they’re asked to work extra-long hours.” By the same token, management has the exibility to recognize when there is not an impending disaster looming on the horizon, employees should have the option of leaving early or taking personal time off because they will be expected to work later “when things are crazy,” as Lehne refers to hurricane season on the Gulf Coast.He cites winter storm Uri as a perfect example. Weeks after the storm wreaked havoc in Texas, Lehne said certain key personnel were still working 15- and 16-hour days. “Of course, we reward and compensate people; they’re not doing volunteer work,” Lehne says, acknowl-edging the sacrices that are sometimes required. And while the company’s everyday mission of delivering fuel to its customers is important, he says it is the emergency response aspect of the job where “we are making a difference in lives, and that feeling of really help-ing the community goes a long way with employees.” Dealing with natural disasters and acts of God may not sound like the makings of a dream job, but for Lehne and the employees of Sun Coast responding to emergencies in places where power lines are down and water sources are contaminated, it is a worthy calling. He relays the story of an employee in the sales department, who was thinking Continued on next page...

Page 30

Oilman Magazine / May-June 2021 / OilmanMagazine.com28FEATUREabout leaving to go back to school to earn a teaching certicate in order to make a difference in the lives of children.“What can you do to make more of a difference than supplying fuel?” Lehne asks. While acknowledging the impor-tance of the work teach-ers do, he also points out that without fuel the school buses aren’t going to run, teachers aren’t going to work and kids aren’t going to school. “Nothing happens in this world without fuel, so while what we do may not be really glamorous to some people, it pow-ers the world.”Part of the devotion Sun Coast engenders among its employees is the fact that Lehne and his wife, Kathy, as CEO, are right there in the trenches with them. He is only half-joking when says he would prefer not to recount the particularly brutal 2017 storm season that started with Hurricane Harvey, a Category 4 Hurricane that devastated Houston, followed by Irma and cul-minated with Maria, both Category 5 storms. Kyle, Kathy, and their employ-ees spent 60 straight days in the “storm room” at the Sun Coast campus, which has onsite apartments, because it is his belief, “When there’s an emergency, Kathy and I as leaders, should be here. I stay, she stays, and we just get it done.”Sun Coast sent over 100 trucks to Puerto Rico, where Maria decimated the island, resulting in the deaths of nearly 3,000 people, making it the dead-liest U.S.-based natural disaster in a century, and causing approximately $90 billion in damage. Once the trucks, drivers and sup-plies were in place, Kyle and Kathy made several trips to the island. As horric as it was, Lehne says tornadoes cause a different kind of devastation.Sun Coast was on the scene during the 2011 tornado season after an EF-5 tornado (the maximum ranking on the Enhanced Fujita Tornado Intensity Scale) ripped through Joplin, Missouri, killing approximately 160 people, injuring over 1,000, and leaving nearly $3 billion in damages in its wake.“When you go to the site of a hurricane, and drive into the affected area, it gets progressively worse,” Lehne explains. “When you drive into an area that’s been hit by a tornado, it goes from normal to complete devastation in one block.”Lehne recalls standing outside of an el-ementary school where half the building was gone. As he peered inside, he saw a haunting sight: among the destroyed classrooms stood one room that was untouched. “It was like a picture. The books were still on the tops of the desks and you could see the pencils. None of the bookshelves were messed up. It was like you were looking through a window at what the classroom used to be like, but every room around it was completely destroyed,” he says quietly, still sounding somewhat unnerved by the surreal sight.As heartbreaking as these scenes of dev-astation are, Lehne also says he has seen disasters bring out the best in humanity. Having delivered fuel and emergency supplies from New York, all the way down south to Brownsville, Texas, he says, “Across the board wherever you go everybody just steps up and helps out. Communities come together.”“What we do may not be glamorous [but] it powers the world.”

Page 31

Oilman Magazine / May-June 2021 / OilmanMagazine.com29FEATUREDealing with natural disasters and other emergencies requires leadership with an ability to think and react calmly and rationally during high stress situations. Lehne’s wife, Kathy, who plays non-professional high-stakes poker, as a way of unwinding, is especially cool under pressure.“I got into the fuel industry because I married a lady who had a fuel company,” Lehne says laughing, although he has nothing but praise for his wife’s entre-preneurial skills and business acumen. Lehne, who has a degree in speech com-munications (“If it weren’t for account-ing class, I probably would have some kind of economics or business degree”), was working for the Pappas’ Restaurant Companies when he met his wife and says, “Instead of delivering catsh, now I’m delivering diesel fuel!”On a more serious note, he credits his wife with helping him make the switch from the hospitality industry to fuel distribution, calling her “a great mentor.” Being one of the few female CEOs in the petroleum industry makes her a great role model for women, although Lehne quickly interjects that she is a great role model “for everyone. I tell her I’ve learned more from her than anybody.” His pride in her capabilities building Sun Coast into the busi-ness it is today is evident when he calls her success story “absolutely incred-ible.”While recognizing Kathy as an “impressive leader and a great CEO,” Kyle says he doesn’t know those qualities are because she’s a woman, but instead at-tributes them to “who she is.” He also believes she brings a different perspec-tive to the role that has “benetted the company and served our industry well.” One example he cites is, early on, as a working mother with small children, Kathy had nurseries set up on the Sun Coast facilities, a rarity back in the ‘90s and still not commonplace even today. “I think Sun Coast was probably one of the pioneers in that area even if it wasn’t on purpose [but out of necessity].”Not only have the Lehne’s three children – Karly, Kelsy and Kash – observed rst-hand their mother successfully running a company that is now one of the larg-est women-owned businesses in Texas, but they have seen their parents work together as a team, which may be one of the reasons two of three (so far) have been inspired to join the family business, although Lehne is quick to say, “They don’t get any special treatment because they’re Kyle and Kathy’s kids.”Their older daughter, Karly, who had entertained the idea of going to law school and had gone so far as to take the LSAT, has been rotating through differ-ent departments in the company every six months in order to learn all facets of the business, including recruiting and billing, and is currently working in Sun Coast’s supply department. Their other daughter, Kelsy, thought about becoming a teacher after graduating from college, but also found herself at Sun Coast, and describes her role as “improving efcien-cies,” which entails developing ways to help drivers do their jobs more efcient-ly. Lehne says, “As luck would have it, they do a great job!” Son, Kash Lehne, pitched in during the winter storm, making fuel deliveries, as well as delivering face masks and anti-bacterial wipes to customers. A senior in high school, Kash aspires to be a profes-sional golfer, and has been accepted at Texas A&M University, where he intends to study ranch management.Describing his son as “very highly motivated,” Lehne said he wouldn’t be surprised if he goes off and forges his own path to avoid being in his parent’s shadow, but says his son can always come in and “we can be in [his] shadow. He may even be able to help Sun Coast go to an even higher level.”With a new generation comes fresh ideas and innovative ways of thinking which may mean adding renewables to the mix at some point. As a fuel distributor, Lehne points out that Sun Coast isn’t creating or developing products, but the company partners with producers and suppliers to deliver the products its customers require, to ensure they have what Lehne calls the “energy source of their choice.” While Lehne believes it will still be quite some time before heavy equipment and machinery will run on alternative fuels to a signicant degree, he says it would be “shortsighted to think the industry is not changing. There will be a signicant shift from today’s fuels to renewables in the future, so Sun Coast must be ready to provide whatever our customers need to keep them running at peak performance, no matter what.” “What can you do to make more of a difference than supplying fuel?”

Page 32

Oilman Magazine / May-June 2021 / OilmanMagazine.com30OILMAN COLUMNAlan Alexeyev: Tell us a little bit about your current (or most recent) position and what you do, as well as how you found a job?Ahmed Tarabily: I was a eld engineer with Schlumberger, under Cameron’s Surface Sys-tem Division, special-izing in owback and production well testing operations. I found the job through the 2018 SPE North America Student Symposium (NASS) Career Fair that was held at Louisiana State Univer-sity (LSU). AA: What inspired your career in the oil and gas industry? How did you decide on becoming a petroleum engineer?AT: I found petroleum engineering the most interesting and most relevant to re-al-life applications. Also, the geopolitical exposure associated with the oil and gas industry really appealed to me, as you get to learn a lot of different things and skills that might not be applicable just to oil and gas. Every well is different, and I think there is no universal answer in the oil eld with regard to problem-solving techniques, and the responsive actions taken toward various issues. Each well is like a monster that should be tamed dif-ferently. Hence, the unpredictability that comes with our industry is my favorite part of them all. AA: You often meet workers in indus-try who do not have a formal college degree but, in your case, how valuable was it to get the university experience? AT: Unfortunately, I didn’t nd ow-back and production testing technically challenging enough for a guy with my skills and expertise, knowing that I have a Master of Science in Petroleum En-gineering, specialized in Smart Oileld Technologies, from the University of Southern California (USC). I know the case might be quite different if Schlum-berger placed me in a high-tier product line such as drilling, wireline, frac, etc. Yet, I had the privilege to learn and absorb all the knowledge possible from some of the most experienced eld techs whom I consider great mentors and friends, not only professionally, but I could also relate to them at a personal level, aside of the fact that they don’t have a formal college education. AA: How did you nd yourself tran-sitioning from the academia environ-ment to the industry/corporate? What would you tell people who are about to make such a transition?AT: The rst three months were tough, and physically and mentally challeng-ing for sure, knowing that I didn’t have much experience when it comes to basic labor skills such as how to swing a ham-mer properly, or how to lift heavy equip-ment properly. My advice to newbies is to be patient, resilient, believe in them-selves, and know that once they catch their momentum, they will be unstop-pable. There is always light at the end of the tunnel. AA: Has the industry taken initiatives to smoothly transition young profes-sionals into the oil sector? What, if anything, could be done better?AT: I feel the industry should seriously allocate more time and effort toward developing young professionals’ soft and leadership skills, especially for those transitioning into an oil eld experi-ence. I have personally observed a lot of miscommunication issues while working in the oil eld because of the cultural conict between college gradu-ates and eld operators/techs. There should be a communication standard through which college graduates stop becoming [in]sensitive, lead by example, and also take their ego down and accept the fact that during their time in the eld they need to be humble, listen and learn from those who are more experi-enced, but unfortunately didn’t have a real opportunity to get a degree or have any formal education. Conversely, non-college-based professionals need to stop believing that every college graduate is a spoiled brat, be patient with them and give them a solid chance to show their real value and worth. AA: e oil and gas industry has tons of conferences and events. Have you attended any of them? If so, how use-ful do you nd them and what’s your takeaway?AT: Before taking that job with Schlum-berger, I used to regularly attend SPE main events like ATCE and NASS but, unfortunately with my busy schedule, it became a lot harder. I had a 21/7 schedule, working almost 15-16 hours on a daily basis. Then, I got laid off back in April due to the pandemic and operations slowing down everywhere around in the nation, so lots of events got canceled and it just became harder for everybody to attend any events that will eventually help with their profes-sional and self-development. Hopefully, the current situation and the industry’s situation will not last much longer. AA: What advice do you give to current college students who have an interest in the oil and gas industry? Should they pursue the career during these constant downturns?AT: To be extremely honest, I don’t think this is the right time to pursue a career in oil and gas. It might take years Young Professional in the Oil & Gas Industry: Interview with Ahmed Tarabily By Alan Alexeyev

Page 33

Oilman Magazine / May-June 2021 / OilmanMagazine.com31OILMAN COLUMNif current conditions remain the same, or oil prices start gradually going up, unless a signicant political event comes into play at a global level. That would be a game changer. To those about to go to college and planning to pursue a petroleum engineering degree, I advise them to make up their mind unless they are specically passionate about reser-voir modeling and simulation. But in that case, they have to keep in mind that reservoir engineering positions are very limited in numbers and highly com-petitive, leading to a highly imbalanced supply and demand. Other than that, I highly recommend approaching another engineering major, preferably mechani-cal engineering, which will help [them] gain a better diversied skill set and have more options to choose from after graduation as they will be considered eli-gible candidates for multiple industries, including oil and gas. AA: What main technical skills do you think will be needed for the industry in the near term based on your experience so far?AT: I think it is really important for fresh graduates to understand at least the basic differences between upstream, midstream and downstream operations. Since most of our petroleum engineer-ing graduates are mainly interested in the upstream side of business, it is crucial to develop sufcient knowledge that helps them comprehend the whole upstream gamut starting from exploration, moving to drilling, then unconventional comple-tions and ending with production. Comprehending the various technical operations associated with each process denitely will enable them to master their problem-solving skills. Economic modeling, programming languages, probability and statistics, uid mechan-ics and hydraulics are always a plus. With the digital wave the oil and gas industry is currently riding, it became crucial to stay up to date with fast-evolving and trending technologies. Therefore, under-standing IIoT, AI, VR, deep learning, cyber security, edge computing applica-tions, etc. will give any candidate a major advantage over others. AA: What would you like to learn in the near future from experienced people who are in their mid-to-late careers?AT: Best practices to avoid getting laid off during a downturn, how to smoothly grow [my]self into an undisputed corpo-rate leader and how they manage to have a healthy life-work balance considering how intense and busy our industry is. “Contains quality information for all piping professionals.”“A pocket dictionary to process piping industry personnel.”“Excellent piping and pipe engineering resource.”“Excellent book. Very useful.”These words of praise come from various industry leaders, who either have served or are still serving in the oil and gas/downstream energy industry, in reference to the newly published book, Process Piping Components Quick Reference Flash Cards. The author, Nirmal Surendran Menon, has made a substantial effort to gather all relevant informa-tion about process piping into one convenient reference guide with pictorial representations. Collated from various standards and compiled into a single, easy-to-understand volume, the book is a practical and useful reference for process piping, making it a great resource, not only for piping professionals, but project engineers who may not have a piping background.The book has made it into the collection of the National University of Singapore Library which, in itself, is a credit to the author’s effort in draft-ing and publishing this book. More information can be found here: https://linc.nus.edu.sg/record=b4287662.“Piping” constitutes the major portion of work, and one that is critical, in any process industry, whether it is oil and gas, energy or petrochemical. It takes substantial work experience and knowl-edge gained through that experience to draft and publish a book. Having acquired this experience by working on four major LNG projects in differ-ent geographical locations, Menon has used his knowledge to give back to the industry by consoli-dating the information and publishing it as a book. An oil and gas facility’s construction engineer with over 13 years of experience in the development of engineering and construction projects from feasi-bility through construction and commissioning to handover, Menon has extensive experience in the execution of construction of LNG facilities, as well as being integrally involved in the development of small to multi-billion-dollar mega projects. He currently is working on drafting a similar book dedicated solely to valves in the process industry.Read reviews here: https://tinyurl.com/bphdswsb.“Great companion reference for piping system engineers and designers.”“Well written and practical reference book.”

Page 34

Oilman Magazine / May-June 2021 / OilmanMagazine.com32OILMAN COLUMN“Creating Together the People’s En-ergy Plan” was the sub-theme of my book entitled, America Needs America’s Energy. A dependable energy plan is necessary for all of us. Our nation, states, cities, corporations and con-sumers are all faced with the challenge of “striving for energy efciency and environmental preservation.” In mid-February of this year, unusual weather made an impact on Texas and other regional states. The Energy Reli-ability Council of Texas (ERCOT) was challenged in its preparation for energy reliability. Texas’ infrastructure was under a multi-energy-sector’s failure. For four days or more, Texans did not have access to their energy needs, and problems mounted. Planning is essential at all levels! ER-COT’s council members were mainly from out of state. This is an example of how we must meet the challenge of having qualied individuals lead in this nation, based upon their knowl-edge of their particular sector. In this nation, we have an individual lead-ing our climate change initiative who travels using jet fuel and doesn’t carry the example of combining energy us-age and environmental preservation. Another example is an individual who has served on a natural gas company board, but does not support fossil fuels. In order to have a plan, we need to have direction and consistency. All forms of energy need to be a part of the national dialogue, in order to have as smooth a transition as pos-sible. In order to have a transition, the use of oil and natural gas is an impor-tant part of America’s energy future. The infrastructure alone, in the oil and gas industry, is vital not only to energy usage, but economic prosperity and national security. All natural resources are important to future generations. A plan needs to be in place that transi-tions America and that unites us, not divides us. The energy industry is a very complex sector. According to the Ofce of Energy Efciency and Renewable En-ergy, “You probably don’t think about what’s happening behind the scenes every time you ip a light switch or turn on the air conditioner, but there is a lot that goes into “keeping the lights on.” Beyond the watts that you use, which is what your local utility uses to calculate your electric bill, there are a number of additional parts necessary to keep electricity owing.” The Ofce of Electricity, U.S. Department of Energy, says, “Modernizing America’s electricity infrastructure is one of the U.S. Department of Energy’s top priorities. The nation’s electric grid needs to be more efcient, reliable and secure.”The nine points of the current Admin-istration’s plan are the following:1. Take executive action on Day 1 not just to reverse all of the damage Trump has done but go further and faster.2. Work with Congress to enact in 2021, President Biden’s rst year in ofce, legislation that, by the end of his rst term, puts us on an ir-reversible path to achieve economy-wide net-zero emissions no later than 2050. 3. Rally the world to urgent and ad-ditional action. 4. Make a historic investment in clean energy and innovation.5. Accelerate the deployment of clean technology throughout our economy.6. Make environmental justice a prior-ity across all federal agencies.7. Hold polluters accountable.8. Create 10 million good-paying, middle-class, union jobs. 9. Fulll our obligation to the commu-nities and workers that have risked their lives to produce fossil fuels that made it possible for America to win world wars and become an industrial power.In order for the U.S. to be successful in energy policy, the oil and gas industry has to be factored in. The message to OPEC+ and countries throughout the world is that we maintain our energy resources, work force, security and geopolitical inuence. This is Part One in a series on Amer-ica’s energy reliability. Your input is needed. Contact your representatives to let them know how you feel/think!America needs America’s energy! All forms. All American. Future genera-tions are depending on us to keep the American dream alive! America’s Energy Reliability By Mark A. StansberryMark A. Stansberry

Page 35

Water Resourcing A&D DiligenceOilfield Beneficial Reuse Ranch ESG Advisoryad sponsored by the Coffee & Liquidity podcast223 West Wall Street, Suite 222 Midland, TX 79701 432.217.0806SOURCEROCKMIDSTREAM.COMWater Resourcing A&D DiligenceOilfield Beneficial Reuse Ranch ESG Advisoryad sponsored by the Coffee & Liquidity podcast223 West Wall Street, Suite 222 Midland, TX 79701 432.217.0806SOURCEROCKMIDSTREAM.COM

Page 36

Oilman Magazine / May-June 2021 / OilmanMagazine.com34OILMAN COLUMNOne industry that will be worth about 1.4 trillion dollars by 2050, and which as of today has reached the signicant investment gure of $300 million, is the carbon capture and storage (CCS) industry. This was mentioned in the re-port created by Vivid Economics titled Greenness of Stimulus Index in 2020. In this way, this powerful industry branch is expected to reach the annual value of the oil and gas industry.The presence of carbon is a neces-sity and has always been present in the globe; it is the fourth most abundant element on Earth and is essential for life. It is the basis of carbohydrates, proteins and nucleic acids that all living beings on the planet need to live, grow and reproduce.From the beginning of time, the pres-ence of carbon has been in the atmo-sphere, plants, soil, animals, shallow and deep ocean, minerals, coal, oil and gas. Therefore, it can be classied as an essential element on Earth, so much so that the amount of this element is equal to 5.37 x 10 16 kg [11.83 x 10 16 lbm], distributed as explained above.During Earth’s time, carbon has main-tained two cycles: slow and fast, with the slow cycle taking between 100 and 200 years. It is where carbon moves from the waters to the soil, then to the rocks and nally reaches the atmosphere. The fast cycle consists of 50-100 years and is responsible for bringing carbon into the biosphere. The easiest cycle to alter is the fast cycle. The amount of carbon generated over the past 100 years has increased dramatically due to activities such as deforestation and combustion of fossil fuels. These activities tend to generate burned carbon CO2, which accumulates in the atmosphere. At the same time, the increase in CO2 due to anthropogenic activities also accumulates in the atmo-sphere, thus altering the equilibrium, since only 55 percent of this CO2 is absorbed by plants and oceans, leaving 45 percent that travels directly to the atmosphere, increasing environmental adverse effects.The infographic developed by Schlum-berger shows the two cycles of natural carbon formation, as well as how the temperature has been increasing over time, and the increase of carbon gen-erating processes. Despite this, there are solutions in the industry today for capturing this element. Ways to Capture CarbonTrees and ForestationAs mentioned previously, 55 percent of the carbon produced is treated naturally; the existence of forests is of immense importance in this process. With the use of the photosynthesis process, trees and plants can store large amounts of car-bon per year, absorbing carbon through their leaves and directing it toward the roots while releasing clean oxygen. According to a study by the World Resources Institute (WRI), the carbon-removal potential from forests and trees in the United States alone is more than half a gigaton per year, making this method as the most economical on the market, with the ability to remove a met-ric ton of carbon per year for $50.Bioenergy with Carbon Capture and Storage (BECCS)Based on capturing carbon before it enters the atmosphere, possible with the use of biomass, BECCS focuses on the heaviest emitters, such as large industries, transportation and power generation plants, with the use of con-trolled photosynthesis. This method, Looking to the Future: Carbon Capture and Storage By Andres OcandoPhoto courtesy of Adobe Stock/Jon Anders Wiken

Page 37

Oilman Magazine / May-June 2021 / OilmanMagazine.com35OILMAN COLUMNCarbon cycles. Source: SchlumbergerDirect air capture. Source: Carbxdespite being expensive, is one of the most recognized in the ght to save the environment and focus on carbon as a protable economic source. Direct Air CaptureWith the use of chemical processes, car-bon is captured directly from the air and then stored properly. Although similar to the carbon capture and storage method, it removes carbon directly from the air thus helping to decrease the amount of this pollutant in the atmosphere. It requires a signicant amount of energy to operate: 10 percent of the current energy consumption consumed in the U.S. to remove approximately one giga-ton of carbon. A 2018 WRI study states that $94 to $232 should be invested per metric ton of absorbed carbon, substan-tial numbers for our times, while it is a necessity to clean up the air we breathe. For that reason, in 2019 the U.S. Con-gress approved $60 million for carbon removal technologies. What Can Be Done with Carbon?Farming and AgricultureAgricultural soils are an important mar-ket when storing carbon. This is because one of the most important elements when growing a crop is carbon. At the same time, it is the most non-existent given that the repetitive use of the land creates a mineral decit. Storing carbon in agricultural plant soils ultimately adds yield to crops and nutrients to food. Carbon MineralizationA natural process of CO2 with some minerals allows the gaseous phase of carbon to be changed to a solid state, i.e., it converts it into a carbonate. This process, known as meteorization, is one of the reasons why large hydrocarbon deposits have formed, but this process takes hundreds or thousands of years to happen naturally. Using the same principle of natural mineralization, but this time applying it articially to speed up the procedure, in 2012 researchers at the University of Pittsburgh used aminization, nitrication and ammonication to turn this pollut-ing gas into an underground functional solid that will change metamorphic and igneous rocks to carbonate rocks over time. Even more important, it would be possible to trap the carbon and not contaminate the atmosphere.A Great Business for Oil and Gas CompaniesOne of the best examples that explains the business of capturing and storing carbon for oil and gas companies is the Continued on next page...

Page 38

Oilman Magazine / May-June 2021 / OilmanMagazine.com36agreement maintained by the Nor-wegian government with companies engaged in the hydrocarbons sector since 1996, which states that taxes are reduced for companies that capture and store carbon resulting from their operations.Another company involved in the cap-ture and storage of CO2 is Occidental Petroleum Corp (Oxy), which expects that within 15 to 20 years its most important business will go from oil ex-traction to carbon removal and storage from operations and from the air.The main investment of this company today is a carbon capture plant located in the Permian Basin in the U.S. Taking up the largest hydrocarbon production eld in the country, it is expected to collect one million tons of carbon di-oxide per year, which is approximately equal to what 215,000 cars produce per year. This investment is expensive, so external investments and tax credits are expected to achieve this goal. Another high-impact strategy comes from Silicon Valley where Chevron Corp will partner with Microsoft Corp, Schlumberger NV and Clean Energy Systems to create a carbon capture and storage plant that will use 200,000 tons of agricultural waste and remove approximately 300,000 tons of carbon dioxide per year.The announcement of the California Air Resources Control Board launch in February 2021 caused plans to speed up and these large companies to begin work, as the target date for phasing out the burning of agricultural waste in the Valley is 2025. Another of the oil giants in the carbon removal race is ExxonMobil. In Febru-ary 2021, the company announced a $3 billion investment in energy proj-ects, called ExxonMobil Low Carbon Solutions, to reduce carbon emis-sions. Working to cover more than 20 countries, it is based on the method of capturing carbon before it reaches the atmosphere, which involves placing its operations in the industrial plants with the greatest impact.Despite not having a presence as an oil company, the Carbx company is a pioneer in carbon capture, as it is one of the European companies with the greatest number of capture methods for different industries. Taking into account where the source of carbon is located, it develops the best form of carbon capture and, additionally, pro-vides support for the correct method of storage or mobilization, depending on the conditions of the location.The companies investing the most in carbon capture and storage worldwide are the companies linked to the oil and gas sector because they have the economic power to face such a chal-lenge. On the other hand, there is the environmental debt they have with the world.They also take into consideration that by 2050 carbon capture and storage are expected to have a signicant space in resource energy, as this element can be sold to as many industries as oil is to-day. In addition, the reduction of taxes posed by some countries generates an attractive outlook for these companies. Andres Ocando is a 30-year old petroleum engineer, who has been working for PDVSA for ve years, facing positions such as reservoir engineer and geomechanical engineer. He currently works as a project analysis engineer. There, he has optimized the data collection 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 technology industries. He collaborates for important techni-cal publications such as OILMAN Magazine and SPE. Quality and responsibility 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 COLUMNThe carbonate mineral calcite. Photo courtesy of USGS

Page 39

508 West Vandament Avenue, Suite 304 l Yukon, OK l (405) 265-7050 l bchwdx.comBeachwood navigates teams to find deals that no one else can.

Page 40

Oilman Magazine / May-June 2021 / OilmanMagazine.com38OILMAN COLUMNAchieving the “buy in” mentality of a successful safety culture is a daunting task of epic proportions. It involves persever-ing through teaching, coaching, mentor-ing, preaching and sometimes begging. When accomplished, the duration of this utopia seems eeting as it eventually begins to fade as the notorious villain of complacency creeps in. A safety profes-sional’s knee jerk reaction tends to be throwing in the towel and picking up the sheriff ’s badge with write-ups and lectures holstered on the hips.As a safety professional, I have come to the realization that I have seen it all when it comes to safety programs and the dis-taste and lack of support that accompany them. I have seen programs that were developed only to meet regulations and in no way utilized to ensure the health and safety of the workforce for whom they should have been designed. I have also been tasked with promoting safety pro-grams that were ideal in their formation but lacked the commitment of manage-ment for successful implementation. The hair on my neck stood at point when I learned at other workplaces that the safety manual was covered in 10 years of dust and resided in a closet never to have its availability made to the individuals it was designed to protect.A successful safety program should be a priority to both the workforce and management. It should be a tool that is depended upon and welcomed in daily activity. It has been my experience that a successful safety program is either desired, but no one has a clear path to accomplish the task, or the company lacks the man-power or ability to devote to its birth.Throughout my safety professional career, I have come to realize that a safe work culture is possible to create, but not simple to maintain. It is a two-part system that requires determination, grit and a positive attitude.Creating a Safe Work CultureCreating a safe work culture is much like an uphill climb. It is strenuous and involves pain. One must be clear in the goal and keep pushing as the pain tends to increase before it releases. Nothing turns away an individual more than to be lectured by someone who lacks their same knowledge level. It sparks the question of how do you know what I do everyday when you sit in an ofce in the air conditioning? Yes, many believe that safety professionals sit at lavish desks and wax our clipboards in preparation to make life miserable in the eld.Before a safety professional can expect to gather the masses to even consider creating a safe work culture, he or she must establish credibility. This involves communicating with the workforce on their level, which means going to their work environment and learning what they do through the course of the day. Notice I say learn, not observe. No one likes to be bird dogged while they are working; however, workers are more approachable if you take a genuine interest in what they are doing. This builds credibility, and this additional knowledge gain will assist the safety professional in recognizing unsafe behavior associated with the task at hand. It is here that an opportunity to plant the rst seed to grow that effective safety culture presents itself. Putting the employee at ease is essential while learning what they do in the eld. I have always found, without a doubt, cracking a joke and making a personal connection are the rst steps to achiev-ing the “buy in.” I have been blessed with incredible mentors in my career and one taught me how important the personal connection is to a successful relationship. I pride myself in knowing how many chil-dren my people have and the names of their spouses. I think it is important that I know Jack’s son, Jack Jr., plays football and that I ask on Monday mornings how his game went. It is just as crucial to know that Jenny’s husband is on the job hunt and I periodically ask if he has had any luck. These personal connections help establish that credibility and allow for a more receptive response when promoting safety.Management tends to be more supportive in what the safety professional needs to create a safe work culture if they see a positive advancement in its development. When “buy in” is visible, time and funds are made more readily available. Once the “buy in” has been established and the workforce is willing to listen to what the safety professional has to say, it is important to capitalize on the win. Careful consideration must be taken to keep the workforce’s attention while they are will-Facilitating a Safe Work Culture Without Policing It By Nick Vaccaro Photo courtesy of Sharaf Maksumov – www.123RF.com

Page 41

Oilman Magazine / May-June 2021 / OilmanMagazine.com39OILMAN COLUMNing to listen. Here is where mentoring is the big play of the game.If the safety professional is fortunate enough to have everyone’s ear, he or she must be careful not to lose it. Through mentoring and not lecturing, help can be administered to the workforce and guidance can be implemented to create that safe work culture. Mentoring can be crafted to deliver the message and relate it to personal life. For instance, instead of lecturing on the importance of eye pro-tection, I can mentor the workforce and relate its importance to their specic lives. “Imagine, Jack, if you make the decision not to wear your safety glasses and that debris your grinder is creating permanent-ly damages your vision. Imagine how you would feel to never see Jack Jr. catch the Hail Mary pass and win the game. Imag-ine how much that would hurt both of you.” When Jack nods his head in agree-ment and you see his commitment made to donning eye protection, congratula-tions are due. The safety professional has reached someone, and Jack has committed himself to working safely. Pop the cork!Maintaining the Safe Work CultureI have been at this game for a long time now. I do not claim to be an expert in everything safety, but I know what I know. In my experience, it is an undisputed fact that failure to maintain a safe work culture should be owned by the safety profes-sional. We all have heard the saying “it takes two to tango,” and while that is true, the safety professional is still the parent of the safe work culture and must protect it. One does not just plant a tree and walk away. It must be watered and cared for. The same is true for an effective safe work culture. When incident-free operations are achieved, the safety professional must still provide the proverbial water and continue to muster the care needed. Do not misunderstand. Maintaining a safe work culture isn’t a simple task. The safety professional must combat various factors, and these factors are all weapons in the arsenal of complacency, which rears its ugly head when least expected and at the most inopportune times.Incident-free operations are the goal; however, they serve as the catalyst for complacency to creep in. The workforce tends to let its guard down when incident and injury have been squashed. When least expected, Jack might not be so in-clined to wear those pesky safety glasses because he thinks they are not necessary. Afterall, he has gone without incident for a long period of time. Suddenly Jack is proudly listening to the commentator an-nounce that his son scored a touchdown and then instantaneously plummets into despair because he was robbed of that glorious sight due to poor decision mak-ing and a resulting injury.Perhaps Jack might not have strayed from working safely had he been continually engaged by the safety professional even after incident-free operations had been achieved. Yes, even the safety profes-sional can fall victim to complacency. It is a struggle for all.The safety professional must never lose the edge, so to speak. He or she must stick with what works. Interactive group exercises, continued mentoring and being visible in the eld are all strategies to battle complacency.Additionally, management must remain committed to fostering a safe work cul-ture. I recall an instance where, with the assistance of key personnel, we turned a safety culture around from a startling high incident rate to zero within one year. It was so rewarding. Imagine my disap-pointment when management wanted to pull me from safety and assign me to a different department. They felt the safety culture had been transformed into one that was acceptable and could “run it-self.” Management must remain commit-ted to a safe work culture and understand that it needs to be continually maintained.Even management’s commitment falls under the responsibility of the safety professional. As such, we must establish and maintain the safe work culture, but we must also advocate for it. We must continually validate and justify its impor-tance. I struggled and stood my ground in denying a departmental transfer to ensure I could remain in place manag-ing the safety culture that I and others proudly created.As soon as complacency enters the scene, a safety professional must react. Depend-ing on the severity of the complacent act, management’s commitment and the over-all attitude of the workforce may sharply decline. Consequently, the safety profes-sional might throw in the towel. Instead of remaining steadfast in coaching and mentoring, the safety professional often accepts the alter ego of “Safety Sheriff.” The once safe work culture goal now shifts to enforcing safety law and lling up the proverbial jail with offenders. No one wins and the tree withers away.Safety professionals must remain fo-cused. They must continually engage both management and the workforce to ensure a safe work culture. The best way to combat complacency is to prevent its very entrance. Continual mentoring, safety presentations that demand partici-pation, constant personal integration and showing that each member of the work-force is considered important serve as the pillars of a safe work culture. A true safety professional is uniquely dedicated. Harnessing this dedication, coupled with determination, will ultimately serve as a successful game plan in creating and maintaining a safe work culture. And if you, the safety professional, have accom-plished this major feat, consider yourself lucky as you have achieved something rare: safety greatness.Nick Vaccaro is a free-lance writer and pho-tographer. In addition to providing technical writing services, he is an HSE consultant in the oil and gas industry with eight years of experience. Vaccaro also contributes to SHALE Oil and Gas Business Magazine, Louisiana Sports-man Magazine, and follows and pho-tographs American Kennel Club eld and herding trials. He has a BA in pho-tojournalism from Loyola University and resides in the New Orleans area. Vaccaro can be reached at 985-966-0957 or navaccaro@outlook.com.

Page 42

Oilman Magazine / May-June 2021 / OilmanMagazine.com40OILMAN COLUMNLiving the Crude Life By Jason SpiessOILMAN COLUMN“The electric frac is a fantastic step forward. I don’t think it’ll displace the industry overnight but slowly but surely. You know we have gas ready and available to consume over there in the eld and with a little bit of process-ing, an electric system enables us the ability to do that with an incredibly low emissions footprint, so it is the next generation of frac technology probably together with tier four dual fuel.”Ron Gusek, president, Liberty Oileld Services“There’s a budding symbiotic relationship between the Bitcoin mining industry and the oil and gas industry and the symbiotic relationships [are] going to make both industries more resilient and specically from an ESG and a PR per-spective. Like the Bitcoin mining – since miners are willing to show up to the source of these molecules – can signi-cantly help reduce are in the oil patches and by extension help turn the tides of the PR onslaught that’s going on from a climate perspective.”Marty Bent, Great American Mining Company, and co-host of Tales from the Crypt podcast“In this community, you have a lot of corporate and a lot of mom and pop. What I liked about TRC was that it was a family-owned business. Terry and Rose Carter are the owners. Now, I think that’s what TRC (Terry Rose Carter) stands for but they say it’s some other slogan, but what I do know is that I can trust TRC and so can others.”Israel Aguirre, TRC Construction“I do think it will help the industrial image; additionally, I think it will help a number of economies. There is a ma-jor shift happening. Every sector of oil and gas is going through a paradigm shift. From HR to drilling science to uid ows, changes are happening, and they are happen-ing in environmental action and industrial integrity, too. And yes, I know what you are talking about when you say Big Oil is Big Tobacco. But that’s a very short-sighted way to look at it. You don’t drive your car with Marlboros and Joe Camel doesn’t heat your home. In my opinion, this is another version of the NIMBY argument. Further to that thread and narrative is this idea that the planet is going to end in 10 years. I happen to nd it bizarre that leaders are enabling this doomsday prediction.”Jason Spiess answering questions at an API Dickinson Meeting“Western Energy Alliance felt a little lonely for a while, but now we’re in great company. We’re very pleased that 14 states have led lawsuits today against an executive order that so clearly exceeds presidential authority. Western Energy Alliance, representing a land-locked region, is focused on the onshore aspects of the President’s ban on leasing, so we’re pleased to see the Louisiana AG leading the charge off-shore. We especially appreciate that the state of Wyoming has led its lawsuit in the district [court] for Wyoming so that we have more repower focused there on the onshore leasing ban. I hope other states consider joining the litiga-tion in Wyoming as well. Since the onshore leasing ban alone will cost states $8.3 billion in revenue over just the President’s rst term, there’s a strong imperative for states to get legally involved.”Kathleen Sgamma, president, Western Energy AllianceContinued on next page...

Page 43

Introduction to the Oil & Gas IndustrySelf Paced eLearningThis short self-paced introductory training course provides delegates with an overview of principal activities in the international upstream, midstream and downstream petroleum industry, which can be undertaken as a whole (4 hours of study time) or as individual modules (45 minutes of study time).Ageing and Life Extension of Offshore Structures for Oil, Gas and Wind Energy6–7 and 9–10 September 2021, onlineThis course will give you an insight into managing ageing and life extension of offshore structures. Delivered by three engineers with extensive consultancy and regulatory experience of ageing and life extension of offshore structures.Introduction to LNG10–13 May, online & 1–2 November, classroom This course gives an overview of the LNG chain and the technology and economics of the global LNG industry. By the end of the course you will appreciate thecore technologies underpinning the LNG industry in Liquefaction, Shipping, and Regasication.Economics of the Oil and Gas Industry24–27 May, online & 8–9 November, classroom This course provides an introduction to the economics that drive the oil and gas industry. Topics covered include; the oil and gas value chains, costs, revenues, and risks associated with various stages in the chains, basic economic principles, the pricing of oil, and oil products and gas.Oil and Gas Mergers and Acquisition: Acquiring and Divesting Assets and Companies24–27 May, online & 25–27 October, classroom This course focuses on integrating an understanding of Mergers and Acquisition (M&A) activity trends, the process involved in conducting M&A activities and the skills that requires.Energy Storage Fundamentals for Energy SecuritySelf Paced eLearning & 6–7 May, onlineThis course provides delegates with a comprehensive overview of energy storage systems as we transition from fossil fuel based energy to renewable energy sources looking into the power and oil and gas sectors.Oil and Gas Industry Fundamentals – Awareness20–21 September, classroomThis course provides an overview of principal activities in the international upstream, midstream and downstream petroleum industry.Oil and Gas Industry Fundamentals – Intensive2–5 November, classroomThis intensive 4-day course comprehensively covers the oil and gas supply chains from exploration through to fuel retailing. Oil and Gas 2021 Training Courses For more information visit www.energy-inst.org/oilandgastrainingor contact webtraining@energyinst.orgIn-house training available upon requestThe EI can also create tailored programmes from a combination of our existing course content or develop a unique programme from scratch using our specialised qualied trainers. Introduction to the Oil & Gas IndustrySelf Paced eLearningThis short self-paced introductory training course provides delegates with an overview of principal activities in the international upstream, midstream and downstream petroleum industry, which can be undertaken as a whole (4 hours of study time) or as individual modules (45 minutes of study time).Ageing and Life Extension of Offshore Structures for Oil, Gas and Wind Energy6–7 and 9–10 September 2021, onlineThis course will give you an insight into managing ageing and life extension of offshore structures. Delivered by three engineers with extensive consultancy and regulatory experience of ageing and life extension of offshore structures.Introduction to LNG10–13 May, online & 1–2 November, classroom This course gives an overview of the LNG chain and the technology and economics of the global LNG industry. By the end of the course you will appreciate thecore technologies underpinning the LNG industry in Liquefaction, Shipping, and Regasication.Economics of the Oil and Gas Industry24–27 May, online & 8–9 November, classroom This course provides an introduction to the economics that drive the oil and gas industry. Topics covered include; the oil and gas value chains, costs, revenues, and risks associated with various stages in the chains, basic economic principles, the pricing of oil, and oil products and gas.Oil and Gas Mergers and Acquisition: Acquiring and Divesting Assets and Companies24–27 May, online & 25–27 October, classroom This course focuses on integrating an understanding of Mergers and Acquisition (M&A) activity trends, the process involved in conducting M&A activities and the skills that requires.Energy Storage Fundamentals for Energy SecuritySelf Paced eLearning & 6–7 May, onlineThis course provides delegates with a comprehensive overview of energy storage systems as we transition from fossil fuel based energy to renewable energy sources looking into the power and oil and gas sectors.Oil and Gas Industry Fundamentals – Awareness20–21 September, classroomThis course provides an overview of principal activities in the international upstream, midstream and downstream petroleum industry.Oil and Gas Industry Fundamentals – Intensive2–5 November, classroomThis intensive 4-day course comprehensively covers the oil and gas supply chains from exploration through to fuel retailing. Oil and Gas 2021 Training Courses For more information visit www.energy-inst.org/oilandgastrainingor contact webtraining@energyinst.orgIn-house training available upon requestThe EI can also create tailored programmes from a combination of our existing course content or develop a unique programme from scratch using our specialised qualied trainers.

Page 44

Oilman Magazine / May-June 2021 / OilmanMagazine.com42OILMAN COLUMN“How many bad decisions are made after six or seven Old Fashions around midnight?”Rocky Johnson, 4 Warriors Hydro Excavating“Pipelines are really critical. Just look out in West Texas right now and what’s going on with all the roads freezing and everything. If we solely depended on truck and rail to trans-port our crude oil and our gas, we’d be at a standstill right now. There’s very limited driving out there in West Texas.”Adam Perkins, president, Permian Basin Association of Pipeliners“Yes, sir, he’s a black lab and his name is Crash. He’s actually my rst pipeline leak detection dog. It’s basically a black lab, thinking that he’s a Belgian Malinois. But labs are also denitely one of the top breeds within the detection community depending on what the agency organization are using. It does give the appearance of a more gentler kind of friendlier dog out there within the public, so labs are actually very popular within the detection.”Dwayne Farris, Black Creek K9 Pipeline Leak DetectionThe Crude Life Morning Show, Play Hard Work Hard, can be heard Monday through Friday with a Week in Review news program aired on the weekend. For more info, visit www.thecrudelife.com. Oilman Cartoon By Steve Burnett

Page 45

https://www.reutersevents.com/events/data/Key Pillars for 2021: Ease Communications:Break down silos across exploration, drilling and production and strive for a digitally integrated oilfieldLower Carbon:Use digital to set near-term emissions targets and track accountability across upstream operations whilst meeting global energy demandAutomate to AccelerateWield automated and integrated systems to dramatically reduce downtime and OPEX at scaleData Driven Oil & Gas 2021 14-15 June | Online | #DDOG2021Female Leaders in Digital UpstreamRegister Nowreutersevents.com/events/data/3,000+Attendees25+Executive Speakers40%Operator Attendance 2Weeks On DemandJoin the world’s executive Oil & Gas forum at https://www.reutersevents.com/events/data/Raquel ClementDigital Product Line Deputy ManagerChevronRashi Gajula, Sr. Manager Emerging Technologies and Digital StrategyPioneer Natural ResourcesTracy BeamPrincipal Digital Strategy & Business Transformation Advisor, Chevronhttps://www.reutersevents.com/events/data/Key Pillars for 2021: Ease Communications:Break down silos across exploration, drilling and production and strive for a digitally integrated oilfieldLower Carbon:Use digital to set near-term emissions targets and track accountability across upstream operations whilst meeting global energy demandAutomate to AccelerateWield automated and integrated systems to dramatically reduce downtime and OPEX at scaleData Driven Oil & Gas 2021 14-15 June | Online | #DDOG2021Female Leaders in Digital UpstreamRegister Nowreutersevents.com/events/data/3,000+Attendees25+Executive Speakers40%Operator Attendance 2Weeks On DemandJoin the world’s executive Oil & Gas forum at https://www.reutersevents.com/events/data/Raquel ClementDigital Product Line Deputy ManagerChevronRashi Gajula, Sr. Manager Emerging Technologies and Digital StrategyPioneer Natural ResourcesTracy BeamPrincipal Digital Strategy & Business Transformation Advisor, Chevronhttps://www.reutersevents.com/events/data/Key Pillars for 2021: Ease Communications:Break down silos across exploration, drilling and production and strive for a digitally integrated oilfieldLower Carbon:Use digital to set near-term emissions targets and track accountability across upstream operations whilst meeting global energy demandAutomate to AccelerateWield automated and integrated systems to dramatically reduce downtime and OPEX at scaleData Driven Oil & Gas 2021 14-15 June | Online | #DDOG2021Female Leaders in Digital UpstreamRegister Nowreutersevents.com/events/data/3,000+Attendees25+Executive Speakers40%Operator Attendance 2Weeks On DemandJoin the world’s executive Oil & Gas forum at https://www.reutersevents.com/events/data/Raquel ClementDigital Product Line Deputy ManagerChevronRashi Gajula, Sr. Manager Emerging Technologies and Digital StrategyPioneer Natural ResourcesTracy BeamPrincipal Digital Strategy & Business Transformation Advisor, Chevronhttps://www.reutersevents.com/events/data/Key Pillars for 2021: Ease Communications:Break down silos across exploration, drilling and production and strive for a digitally integrated oilfieldLower Carbon:Use digital to set near-term emissions targets and track accountability across upstream operations whilst meeting global energy demandAutomate to AccelerateWield automated and integrated systems to dramatically reduce downtime and OPEX at scaleData Driven Oil & Gas 2021 14-15 June | Online | #DDOG2021Female Leaders in Digital UpstreamRegister Nowreutersevents.com/events/data/3,000+Attendees25+Executive Speakers40%Operator Attendance 2Weeks On DemandJoin the world’s executive Oil & Gas forum at https://www.reutersevents.com/events/data/Raquel ClementDigital Product Line Deputy ManagerChevronRashi Gajula, Sr. Manager Emerging Technologies and Digital StrategyPioneer Natural ResourcesTracy BeamPrincipal Digital Strategy & Business Transformation Advisor, Chevronhttps://www.reutersevents.com/events/data/Key Pillars for 2021: Ease Communications:Break down silos across exploration, drilling and production and strive for a digitally integrated oilfieldLower Carbon:Use digital to set near-term emissions targets and track accountability across upstream operations whilst meeting global energy demandAutomate to AccelerateWield automated and integrated systems to dramatically reduce downtime and OPEX at scaleData Driven Oil & Gas 2021 14-15 June | Online | #DDOG2021Female Leaders in Digital UpstreamRegister Nowreutersevents.com/events/data/3,000+Attendees25+Executive Speakers40%Operator Attendance 2Weeks On DemandJoin the world’s executive Oil & Gas forum at https://www.reutersevents.com/events/data/Raquel ClementDigital Product Line Deputy ManagerChevronRashi Gajula, Sr. Manager Emerging Technologies and Digital StrategyPioneer Natural ResourcesTracy BeamPrincipal Digital Strategy & Business Transformation Advisor, Chevronhttps://www.reutersevents.com/events/data/Key Pillars for 2021: Ease Communications:Break down silos across exploration, drilling and production and strive for a digitally integrated oilfieldLower Carbon:Use digital to set near-term emissions targets and track accountability across upstream operations whilst meeting global energy demandAutomate to AccelerateWield automated and integrated systems to dramatically reduce downtime and OPEX at scaleData Driven Oil & Gas 2021 14-15 June | Online | #DDOG2021Female Leaders in Digital UpstreamRegister Nowreutersevents.com/events/data/3,000+Attendees25+Executive Speakers40%Operator Attendance 2Weeks On DemandJoin the world’s executive Oil & Gas forum at https://www.reutersevents.com/events/data/Raquel ClementDigital Product Line Deputy ManagerChevronRashi Gajula, Sr. Manager Emerging Technologies and Digital StrategyPioneer Natural ResourcesTracy BeamPrincipal Digital Strategy & Business Transformation Advisor, Chevron

Page 46

Delayed Coking | Fluid Catalytic Cracking | Solvent Deasphalting | SulfurMay 10-14, 2021 |part of thegroup®REFCOMMVirtual Technical Conference2021The leading conference, training, & exhibition for Delayed Coking, Fluid Catalytic Cracking, Solvent Deasphalting, and SulfurRefComm is recognized as the premiere conference for operational and process excellence within the Delayed Coking, Fluid Catalytic Cracking, Solvent Deasphalting, and Sulfur Production and Processing units.Delayed CokingFluid Catalytic CrackingSolvent DeasphaltingSulfur Production & ProcessingDelayed Coker FundamentalsCoker ProcessCoke Drum Mechanical IntegrityFCCU Process16+500+35+5 days865We are now accepting presentationsTraining classes offeredattendees representing 140 companieshours of technical trainingDelayed Coking | Fluid Catalytic Cracking | Solvent Deasphalting | SulfurMay 10-14, 2021 |part of thegroup®REFCOMMVirtual Technical Conference2021For more information and to book your place, please visit:www.refcomm.comhours of live and on demand contentof technical contentnetworking opportunities*These figures based on RefComm Global 2020 virtual event