FREE
VOLUME 2 NO. 12
The Power of
DECEMBER 2014
TEXAS
Are These Good Times Gonna Last? 8
Giving Back
Chevron and Concho Employees Get Into the Holiday Spirit
PBE PROFILES: L. D. “Buddy” Sipes 20
• U.S. RIG COUNT • TOP 35 Drillers & Operators
Industry Data
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News
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Top 10 Unique Gifts of 2014 16
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Events
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Calendar
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RESTAURANT BITES
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Energy
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Tech
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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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DECEMBER 2014
contents
Pbe Features 8
Are These Good Times Gonna Last?
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12 Giving Back - Chevron and Concho Employees Get Into the Holiday Spirit 16 Top 10 Unique Gifts of 2014
Other Editorials
15 Calendar of Events 20 PBE Profiles: L. D. “Buddy” Sipes
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22 Conferences in November - December 23 Upcoming Auctions 24 Advice for Mineral Owners from Permian Basin Land Girl 27 Safety Tips - Stay Safe this Holiday Season 28 Festivals and Events in Texas 32 PBE Cares - Opportunities to Give this Holiday 34 Tech Bites - Is the Government Spying on You? Find Out... 36 PBE News Briefs: Basin, Shale, State, Government, Nation, Offshore & World 42 Restaurant Bites - Top 5 Restaurants in Abilene, TX 44 PBE Inspires - I Give Because He Gave 46 By The Numbers: Texas Rig Count, Top Drillers, Top Operators 49 This Month in Petroleum
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LETTER FROM
THE EDITOR Great thoughts speak only to the thoughtful mind, but great actions speak to all mankind. - Theodore Roosevelt Times they are a changin’. It’s a concept that has defined our nation, our state and our local economy for decades and it’s as relevant now as it has ever been. Whether it’s the constant technological advancements moving us forward, changes in our culture and how we do business or just the ebb and flow of our economy that causes us to pause and reevaluate priorities; we live in a state of continuous change. In this month’s PBE, former Executive Vice President of the Permian Basin Petroleum Association shares some insight from his years of up close and personal experience with the cyclical nature of this industry and explains why those who know better are prepared for whatever change may come. You’ll hear similar sentiments echoed in some of our news briefs as large, experienced company leaders express confidence in their business’s ability to survive and even thrive amidst the changing tides and dropping oil prices. For those who have prepared and are ready for the next chapter, there is less of a sense of holding back and holding on and more of a seasonal reaction of giving back and pressing on. You’ll read about how many local companies are not only making a statement of charity on an administrative level but also with their employees actively supporting various non-profit organizations and groups this holiday. To top off the spirit of giving, Pastor Daniel Stephen’s talks about the importance of spreading hope and joy through our ability to give back this time of year and you’ll even be able to browse a list of those looking for extra support in PBE Cares. The Christmas season is a special time of year for me and my family because it gives us all a reason to stop the craziness, if only for a few days, and take time to enjoy what God has so richly blessed us with; love, life and each other. Not to mention the ability we have to pursue happiness through hard work and determination in this great nation, which really gives us all the chance to live the American dream. Merry Christmas and Happy New Year from our family to yours!
Carlos Madrid Editor in Chief/Publisher sales@pbemag.com
/PBENERGYMAG @PBENERGY DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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EDITORIAL CONTRIBUTORS PBE MAGAZINE CONTACTS VOLUME 2 NO. 12
EDITOR IN CHIEF/PUBLISHER Carlos Madrid sales@pbemag.com 432. 559. 5886
Taryn SnideR FREELANCE WRITER tarynsnider@gmail.com
ART DIRECTOR/LAYOUT & GRAPHICS Luke Pawliszyn Lukasz Design Studio West Hollywood, CA luke@lukaszdesign.com ADVERTISING For advertising info call 432. 559. 5886 or email sales@pbemag.com ACCOUNT EXECUTIVE Dominique Brown dominique@pbemag.com 432. 599. 3127
MORRIS BURNS FREELANCE WRITER morrisburns@sbcglobal.net
SUBMISSIONS Submit story ideas & other news to marcy@pbemag.com PUBLISHED BY: PBE Magazine, LLC. Permian Basin Energy Magazine 4500 Erie Drive Midland, TX 79703 Main Phone: 432. 559. 5886
DANIEL STEPHENS SENIOR PASTOR Mid-Cities Community Church • Midland, TX daniel.stephens@midcities.org
www.PBEMag.com
/PBENERGYMAG
@PBENERGY Shawn Todd American Safety Services, Inc.
Copyright © 2014 Permian Basin Energy, Inc. • Mad Ads Media All rights reserved. Reproduction in whole or in part without the written permission of PBE MAGAZINE, LLC is strictly forbidden. The greatest care has been taken to ensure the accuracy of information in this magazine at time of going to press, but we accept no responsibility for omissions or errors. PBE Magazine welcomes any comments, feedback, suggestions, and/or submissions for consideration for publication. These may be submitted to: sales@pbemag.com.
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Kimberly Smith CEO Development Resources, Inc.
The Power of
TEXAS
www.PBEMag.com
To Advertise call
(432) 559 - 5886 or email
sales@pbemag.com
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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Are These
Good Times Gonna Last ? by Morris Burns
Look at a line graph of oil prices since the early 1970’s and you would have a great roller coaster model for Six Flags. Anyone who has spent much time in this industry has used up a years supply of Dramamine riding this roller coaster.
There have been two disastrous price drops, in 1986 and 1998, and a couple of minor ones like 2008. During the late 1970’s an early 1980’s OPEC set quotas to limit production in order to keep the price up. Saudi Arabia’s oil minister was the president of OPEC, which set the quotas for each of member nations. As the members had their quotas lowered to keep the price up many began cheating by overproducing. This resulted in lowering the price so Saudi Arabia took it upon itself to become the swing producer. When one nation cheated on its quota the Saudis would reduce their output by that amount to prop up the price. In early 1986 King Faud got tired of covering for the cheaters so he fired the Saudi oil minister and opened the spigots. This resulted in dropping the price from $29.00 in January to less than $9.00 by April. 8
In 1998 Hugo Chavez of Venezuela flooded the market again driving prices down from just under $20.00 to once again under $10.00. This was the second devastating oil bust. In both these cases Saudi Arabia and Venezuela had excess production and were able to flood the market causing devastating price drops. By 2008 worldwide production and worldwide consumption pretty much reached parity. When this happened oil prices went up to around $150.00, gasoline prices went up to about $5.00. This resulted in a worldwide economic slowdown, resulting in a minor downturn in the oil economy, though not nearly to the extent of 1986 and 1998. In 2013 worldwide production and worldwide consumption both were around 85 to 90 million barrels
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
per day resulting in price stability. It is estimated that over 95 percent of the world’s transportation runs on gasoline, jet fuel and diesel fuel. It will be many years before that will be reduced by other “green energy” resulting in a lower of demand for crude oil and its products. Willie Nelson is making diesel fuel from used cooking oil, but there are hundreds or maybe thousands of barrels of that compared to millions of barrels of crude oil produced each day so it will be a long time before this makes a dent in fuel from crude oil. What can go wrong? Worldwide recession, government regulation on things like hydraulic fracturing, flaring, prairie chicken or water use. Denton, Texas, where the horizontal drilling and hydraulic fracturing technology for producing oil and gas from shale started, recently vote to ban fracturing in the city limits. The Texas Land Office is already preparing law suits to overturn the ban. Then we have what I call gullible warming. Let’s see, doesn’t that sound familiar? Check out the covers of Time magazine in 1977 and 2006. The same “scientists” that in 1977 said we were entering another ice age in 2006 changed to gullible warming. The current price slide has the Chicken Little folks once again shouting, “The sky is falling!” In a normal year the price is lower in the spring and fall and higher mid-winter and mid-summer. That is Economics 101, the law of supply and demand. When there is more demand than supply the price goes up and more supply than demand the price goes down on everything from oil and gas to cumquats. This time last year we were worried about Egypt closing the Suez Canal and this held the price up. We have had major hurricanes in the Gulf of Mexico like Rita and Katrina. This year we don’t have any hurricanes in the Gulf or revolutions in Nigeria or Egypt so the price is taking its normal seasonal dip. This drop has been somewhat exacerbated by economic downturns in China and Europe. As soon as we get some really cold weather in the North we will see the prices go back to more normal levels. If we do not see prices go up in January and February then start to worry but not now.
Bottom line --- there gonna last!
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Giving
Back...
Chevron and Concho employees get into the holiday spirit by Taryn Snider
One of the Permian Basin’s best kept secrets is the philanthropic nature of the people in our community. Ask any director of a local nonprofit and they’ll tell you how generous our people are. But a study by Chronicle of Philanthropy has also shown that to be true. While the national average giving ratio (percent of income) is 3%, the Ector County average is 3.75% and the Midland County average is 4.95%. As a whole, the Permian Basin averages 3.85% of charitable giving per household income. There is also never a better time for giving than during the giving season. In fact, it’s typical for a nonprofit organization to receive from around 25% to a third of its total annual income in the last two months of the year. 12
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While charitable giving can take on many different forms depending on where one’s passions might lay, the most common charitable c a u s e people tend to donate
foster care system. We are hoping to fill even more this season. Each child puts in two gift requests so we were able to serve 200 children last year.” Marci Nix, Community Initiative Specialist at CPS Region 9 said that the Permian Basin currently has nearly 600 children who have been removed from their homes due to abuse or neglect and the current housing shortage, a byproduct of the boom, has complicated the matter. Nevertheless, our local people and corporations have stepped up to the plate and made sure to meet the needs of these children that they could. Nix was pleased to say, “People in the Permian Basin have been so generous!”
towards is children in need and that’s especially true during the holidays. Elana Marion, Community Engagement Specialist at Chevron Corporation said, “Every year around the holidays, Chevron employees purchase a full set of new clothing for children in need through Salvation Army’s Dress a Live Angel program.”
The overall betterment of the Permian Basin as a whole can be attributed to the people of West Texas who have committed to the effort of improving our community through volunteering and generous giving. It’s no doubt that the residents of the Permian Basin have adopted the idea that giving back to the community is better for everyone involved. mIt’s just another reason that makes the Permian Basin such a great place to live.
In recent years, they have sponsored upwards of 550 children based on community needs. Marion added, “Chevron employees have a strong spirit of volunteerism and giving back, and we recognize its vital role in Chevron’s commitment to the communities where we live and work.” According to philanthropy.com, Chevron Corporation was the third largest charitable corporation last year. Internationally, they gave about $20 million to the Niger Delta Partnership Initiative Foundation and the Global Fund to Fight AIDS, Tuberculosis, and Malaria. Nationally, they gave more than $7 million to Fuel Your School. Locally, Marion said, “Chevron employees volunteer in the community throughout the year in programs like Christmas in Action, Meals on Wheels and the Petroleum Museum’s Family Science Nights.” Another great cause in the Permian Basin is Child Protective Service’s Giving Tree. Elizabeth Stout, Community Relations Coordinator at Concho Resources said, “Our employees filled over 400 gift requests for children currently in the Permian Basin DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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OBSERVANCES AND CELEBRATIONS
DECEMBER 2014
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Birthstone: Turquoise Flower: Narcissus National: Bingo Month, Eye Care Month, Volunteer Blood Donor Month,
Starbright Village
Dec. 4, 2014 - Jan. 2, 2015 6 PM. McKinney Park 625 W. Pool Road Odessa, TX
Book Month,
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PEARL HARBOR DAY
Thank You Month
15-31 COMANCHE TRAIL FESTIVAL OF LIGHTS
Big Spring. A mile of various themes & silhouettes are highlighted with a stunning display of Large Poinsettias on the Dam of Comanche Trail Lake, off Highway 87. (432) 263-8235 or (866) 430-7100.
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Wright Brothers Day
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17 WINTER SOLSTICE
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CHRISTMAS DAY
Hanukkah begins
NEW YEARS EVE Celebration Midland
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Alcohol & Drug free New Years Celebration. 105 N. Main. Midland, Texas 79701. 7:18 PM - 12:20 AM. The Palmer Drug Abuse Program along with the Midland Coalition will be having their 9th annual New Years Eve Festival. A safe, family friendly alcohol free New Years Eve Celebration. There will be games for our youth and their families with food, face paintings, jumpers, video games, music, prize walk and a scavenger hunt.
JANUARY 2015 2
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The Sandhills Stock Show and Rodeo
Jan. 2–10. Ector County Coliseum 4201 Andrews Hwy. Odessa, TX
Birthstone: Garnet Flower: Carnation, Snowdrop
Peak of Quadrantid meteor shower
Martin Luther King Jr. DAY
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Top unique 10
Here are the best Christmas Gifts of 2014, and some of the most unique gifts you can give this holiday season. Catch them off guard with gifts that will put a smile on their face, and that they won’t expect.
1 60 Hour Candle
Give them the gift that keeps on giving, hour after hour. This candle really has no competition, as every other one out there can’t come near it in longevity. A great gift if you want to stay on their mind for about 60 hours or so. $30 www.uncommongoods.com
2 1000 Ultimate Experiences
The experiences in this book are priceless, so really you are giving them a gift that you can’t put a price on. The Lonely Planet is renowned for their ability to shed light on some of the best of what’s out there, and they do a great job of what they do great in this book. $16.71 www.amazon.com
6 Make Your Own Macarons Kit
If they love delicious macaroons you can’t go wrong with this kit that will enable them to make their own from scratch. Everything tastes better when you make it yourself, because psychologically you’ve seen everything that goes into making it, so you appreciate it more. $40 www.uncommongoods.com
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gifts of 2 0 1 4
Source: www.dodoburd.com
3 Live Video Camera Drone
Here’s a way to spy on your neighbours or anyone else within a certain radius. It beams back a live feed right to your smartphone, and the controller has a spot on it that holds your phone so you can see what it sees while you’re piloting it. $1300 www.hammacher.com
7 Aromatherapy Diffuser
This diffuser allows you to enjoy your choice of different aromatherapy scents. It sends the mist into the air in just the right amount so that you’re not overwhelmed by it, and it’s not too faint. Aromatherapy has been shown to help with a number of conditions, and helps you feel more at ease. $50.19 www.amazon.com
9 Pressure Cooker/Slow Cooker
There are pressure cookers and there are slow cookers, and then there’s this thing! It has both in one unit, so you’re taking up about half the space as you would if you had both. It can slow cook your meal, or really speed things up by pressure-cooking it. $119.75 www.amazon.com
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Deep Sea Sand Art
Flip this over and it starts to make a piece of art right before your eyes. Sand drips down onto itself and forms what looks like mountains, lakes, oceans, and other terrain. It’s a mesmerizing gift that is fun to watch, and fun to display once the piece is finished. $85 www.uncommongoods.com
Sunrise Simulator Alarm Clock
Stop them from waking up to a loud alarm clock. There’s a better way to wake up, one that’s more natural and taps into our lineage from a time when there were no alarm clocks. Waking up to a simulated sunrise is the only way to go, especially in the winter. $164.95 www.amazon.com
8 Yours Mine and Ours Decanter Set
Here’s a fun decanter set that really spells things out. It has the words Your and Mine on the two glasses, and the word Ours on the larger bottle. It’s a fun and true statement and it makes a great gift for someone that you’d like to enjoy fine spirits with. $65 www.uncommongoods.com
10 3-Speed Stereo Turntable
When you want to go retro and use vinyl records you’ll need something to play them on. That’s where this 3-speed stereo turntable comes in handy. It also features MP3 recording so you can convert some of those old records into digital versions to enjoy going forward. PRICES VARY www.amazon.com DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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PR O FILES L. D. “Buddy” Sipes by Morris Burns
What do you call a true gentleman who runs a successful oil and gas operation, has served in the Midland City Council, the Region F Water Planning Group, the City of Midland Water Board, MOTRAN, the Rail Board as well as serving as a deacon and leader in his church? You call him L. D. “Buddy” Sipes. Buddy began his college education at Texas A&M studying to be an electrical engineer. He quickly learned he did not want to be an electrical engineer so he enrolled at Texas Tech studying petroleum engineering. He had to work his way through college working for Stanolind Oil Co. in the oil fields around Andrews. He soon took a job with Core Lab working 35 to 40 hours a week while carrying 18 hours a semester to finish his degree. He married during his senior year, after he knew that he could make a living in the oil patch. After graduation he soon discovered he did not like research work, which he was doing with Core Lab in Dallas. Uncle Sam took care of that problem and sent Buddy to Korea for thirteen months. He went back to Core Lab upon his return from Korea and was promoted to the consulting department, which is what he wanted all along. He was recalled into the armed services for another year. Upon his return to Core Lab he learned the company was opening an office in Midland. Buddy’s life dream was to 20
be a consultant in Midland Texas in the oil patch so he jumped at the chance to transfer to Midland. There was one man ahead of him for the Midland job, but Buddy convinced him he would not like Midland. Two and a half years later he went to work as a reservoir engineer with Leibrock, Landreth, Campbell and Callaway in Midland working with Arlen Edgar. Buddy soon partnered with Bob Bailey and Roy Williamson to form Bailey, Sipes & Williamson who then bought the consulting practice. At their peak Sipes, Williamson & Associates had offices in Midland, Denver, Houston and Nashville. With financial partners Buddy and Roy were the high bidders for the working interests of the late George Abell. This was how Buddy got into the production and operating part of the business. In 1981 Buddy and Roy formed Chisos Operating, Inc. Soon after, Buddy bought Roy out and Chisos became the family owned business it is today. In 1982 Chisos was deep in debt, or as Buddy put it, “owed the bank
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
more money than there was at the time,” when they were drilling a gas well that blew out. Buddy got permission from the Railroad Commission to capture the gas and sell it. The Railroad Commission designates an allowable for gas wells that they are not to exceed. This well was not completed so it had no allowable and Chisos sold almost 3 billion cubic feet of gas at a little over $3.00 an mcf. That got Chisos out of their deep hole, pun intended, and on their feet financially. After the well was controlled it had overproduced its allowable by so much the Railroad Commission shut it in for six months. During those six months the pressure of the gas in the well did not decrease a lick, which is very unusual for a gas well. Normally a gas well that is shut-in will slowly lose pressure. Often if it is shut-in long enough the well will never produce again. Buddy said he told the Lord, “If you get me out of this debt mess, I promise never to get in this deep again.” He has kept that promise ever since. Chisos now operates and participates in wells with EOG in New Mexico, Reef Exploration in Dawson County and Great Western Drilling in the Coyanosa area. Chisos buys production in slow times when operators need to raise money and continues to drill and operate its own prospects. Chisos goes to great lengths to see to it that no one gets hurt in their operations. Buddy serves as the oil industry representative on the Region F Water Planning Group. PBPA was asked by Region F Director John Grant to furnish a member when the new water districts were formed in the late 90’s. Larry Sanders with Phillips was the first Region F member representing the industry. When Larry retired from Phillips, Buddy took his seat and has served the industry well ever since. Buddy served on the Midland City Council from 1990 to 1993. One funny incident he recalls from his City Council days concerned people who were trying to get Vietnamese pot-bellied pigs declared as domestic animals or house pets. Ed Todd appeared before the Council to ask that if potbellied pigs were indeed declared house pets would it be possible for his goat Rosetta to also be declared a house pet since she stayed in his house and was very dear to him.
In addition to the City Council and Region F Water Planning Group, Buddy has served on the Board of MOTRAN, the City of Midland Water Board and the Rail Board. He is very involved at First Baptist Church and has also served as Chairman of the Board of Trace Engines which is building modern, high tech aircraft engines at its facility on the north side of Interstate 20. Buddy’s philosophy is to find something you enjoy doing and do it. He wants to continue to be an oil and gas operator, play golf and stay active in the community. “I just want to see Midland prosper,” he replied when asked what motivates him. It is certainly nice, in this time of the news media calling oil companies everything from pirates to out and out crooks, to see someone like Buddy Sipes who gives of his time, effort and money to make Midland Texas a better place to live and raise a family.
If you have a suggestion of someone who would make a good subject for a story please email me at morrisburns@sbcglobal.net or give me a call at 432-230-9838.
About the Author Morris Burns: From December 1997-October 2006, Morris served as the Executive Vice President for the Permian Basin Petroleum Association. Since retiring from the PBPA in 2006, Morris opened a public relations and safety consulting firm doing safety classes and public relations for many firms both in and out of the petroleum industry. Morris is also a frequent contributor to local TV news concerning the oil and gas industry in the Permian Basin, as well as a weekly radio show participant since 1998 on KWEL 1070 AM from 8:00 am to 9:00 am Tuesdays talking about oil and gas issues. morrisburns@sbcglobal.net
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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Conferences in Dec. 2014 - Jan. ‘15 Oil and Gas Safety Conference 12/02/2014 - 12/03/2014 Houston TX, USA www.oshasafetyconference.org/Events/ugm/ Osha2012/default.aspx
API Inspection Summit 01/26/2015 - 01/29/2015 Galveston TX, USA www.api.org/events-and-training/calendar-ofevents/2015/inspection-summit
PIRA Natural Gas Markets Conference 12/08/2014 - 12/09/2014 New York City NY, USA www.pira.com
API Exploration and Production Winter Standards Meeting 01/26/2015 - 01/30/2015 New Orleans LA, USA www.api.org/events-and-training/calendar-ofevents/2015/e-p-winter
Annual CO2 Conference 12/08/2014 - 12/12/2014 Midland TX, USA www.co2conference.net PIRA Understanding Global Oil Markets Conference 12/10/2014 - 12/11/2014 New York City NY, USA www.pira.com NAPE Rockies - North American Prospect Expo 12/10/2014 - 12/12/2014 Denver CO, USA www.member.seg.org/Calendar/tabid/319/ ModuleID/944/ItemID/390/mctl/EventDetails/ Default.aspx
API-AGA Joint Committee on Pipeline Welding Practices 01/28/2015 - 01/29/2015 New Orleans LA, USA www.api.org/events-and-training/calendar-ofevents/2015/aga World LNG Fules Conference 02/02/2015 - 02/04/2015 Houston TX, USA www.worldlngfuels.com/about World LNG Fuels Conference 02/02/2015 - 02/04/2015 Houston TX, USA www.worldlngfuels.com/about IADC Health, Safety, and Environment Conference and Exhibition 02/03/2015 - 02/05/2015 Houston TX, USA www.iadc.org/events
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Leading Auctions in the Oilfield Industry. Upcoming Auctions and Auction Equipment listings from Tradequip International’s online and site-held auction companies. Saurce: Tradequip International
Drilling Rigs
Prod. Equip.
Drilling Equip.
Tubular Goods
Oilfield Trucks
Oilfield Trailers
Parts & Tools
Support Equip.
www.tradequip.com
SOUTHCENTRAL
AUCTIONS
COMPANY
DATES
LOCATION
INVENTORY
2.08± ACRES BLACKWELL OK • INDUSTRIAL COMMERCIAL PROPERTY
Lippard Auctioneers Inc
December 3, 2014
Blackwell, OK
Public Auction
Machinery Auctioneers of Texas
December 3, 2014
Alice, TX
No Lots are Currently Posted for this Auction
Public Auction
Machinery Auctioneers of Texas
December 10, 2014
Beaumont, TX
No Lots are Currently Posted for this Auction
Public Auction
Machinery Auctioneers of Texas
January 15, 2015
Odessa, TX
No Lots are Currently Posted for this Auction
INTERNET AUCTIONS
COMPANY
DATES
LOCATION
Surplus Inventory for RJV Gas Field Services Inc
Energy Auctions Inc
December 2-15, 2014
Internet
Pipe & Equipment Sealed Bid
Network International Inc
December 3, 2014
Internet
Online Auction - Pipe & Equipment Auction
Network International Inc
December 10, 2014
Internet
INVENTORY
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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ADVICE for Mineral Owners from a Permian Basin Land Girl During the holidays, West Texas families will join with family and friends. We’ll reflect on the joy, sorrow, & changes throughout the year. We hope you have time to laugh with and enjoy your family and if there are family members that you are trying to avoid, we understand that as well! Family time can be a welcome change of pace, or a culture that brings misery and grief. I want to reflect on people who have experienced a loss this last year. You may have lost a grandparent or parent. We pray that you will find peace and be comforted by warm memories of people you love. I lost my grandmother this last year, Thadine Askins Harless. She was a true Ranch girl from Borden County. She loved the memories from the family ranch. She had seen so much of life over the last century. She loved the Dallas Cowboys, and Texas Rangers. She was tough, and her “own” kind of grandmother. She encouraged us to drive our careers and take care of business. She was a Master Quilter and Community Volunteer. After the funeral, through the tears, we went through her things and I found many news articles about her volunteer time at the Scurry County Hospital Auxiliary as a “Pink Lady.” We were more alike than I realized. I share this anecdote to encourage you personally, in life and in business. Take time to find the similarities & not the differences with family. Take time to look through closets and bring out items & get your elders to talk about their lives and history. We actually found a beautiful, antiquated photo album of my grandmother’s with black and white photos of her home on the ranch held onto black construction paper texture with the gold triangular tabs. I regret that I missed looking at this album when she was living. I could have looked at it with her and listened to her reflect on her life on the Askins Ranch in Borden. It is never too late to meander through your family’s things and extract an important story. Also, take time to ask them about family business. When I took the Finishing Well class by Rays of Hope in Midland taught by, Vicki Jay & Mary Lou Cassidy, I was blessed. Vicki and Mary Lou had a passion to help families work through their grief. They also urged families to discuss legal and financial plans for their heirs. If you are an elder in the family, take time to explain the financial plans for your mineral,
royalty and real property estate to your children. a. Tell them about your financial planners, estate-planning attorneys. b. Talk to them about the oil & gas companies, which send monthly royalty checks. Show them the pay stubs & discuss the process with the companies to change the distribution. c. As a Christmas present, do you want to convey minerals and royalties to your children or grandchildren? Work with Development Resources, Inc. to help you transfer your minerals & royalties to the next generation. d. Add these minerals to your will or sign legal documents this holiday season. (We recommend estate-planning attorneys who understand oil and gas including Mary Lou Cassidy, or Kristi Hyatt) e. Also take time to tell your children and grandchildren the oral history of the sacrifices & hard work it took for such a gift, and your heritage. It will stay with them for a lifetime. We have enjoyed having Janet Pollard, Author of Hard Times on Ask the Permianlandgirl (Radio Show on AM 1070/FM 107.1 at 1:00 on Saturdays) this fall, because she truly understood the hardships & courage it took for Clayton Wheat Williams to be a pioneer! Have a “Janet Pollard” moment and share your family heritage. As a Petroleum Landman, when I looked through the Borden County Clerk’s Office at our oil and gas and real property, I saw that my grandmother’s family, the Askins took care of family business. We hope your family will be like mine! I hope Santa will bring me the historic Cattle Brands from our Savage & Harless family farming & ranching history! What will be under your Christmas tree this year? Truly yours, Kimberly Smith, CEO Development Resources, Inc. can also help retrieve and inventory your mineral estate. @permianlandgirl on twitter or landmaam.com
Ask the Permianlandgirl on KWEL.com, AM 1070 and FM 107.1 - every Saturday at 1 PM. Call 432-620-8700 to ask questions or email me at permianlandgirl@gmail.com Wishing you a happy holidays as you begin planning to have joy with your family! Let your minerals be a joy in your life… Contact us to help us inventory your minerals. www.permianlandgirl.org 24
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SAFETY TIPS Stay Safe this Holiday Season... The holidays should be a magical time for children. Yet each year, hospital emergency rooms treat about 8700 people for injuries, such as falls, cuts and shocks, related to holiday lights, decorations and Christmas trees. Each year, fire departments respond to an average of 210 structure fires caused by Christmas trees. Carefully decorating Christmas trees can help make your holidays safer. Toys are a wonderful part of the holidays as well, but if you have young children, you need to take special precautions to make sure they're safe this holiday season.
Keep the season merry with this list of safety tips from the folks at American Safety Services.
•
• • •
•
When purchasing an artificial tree, look for the label "Fire Resistant." When purchasing a live tree, check for freshness. A fresh tree is green, needles are hard to pull from branches and when bent between your fingers, needles do not break. When setting up a tree at home, place it away from fireplaces and radiators. Place the tree out of the way of traffic and do not block doorways. Cut a few inches off the trunk of your tree to expose the fresh wood. This allows for better water absorption and will help to keep your tree from drying out and becoming a fire hazard. Never use lighted candles on a tree or near other evergreens.
Lights for Safe Families • • •
• •
Indoors or outside, always use lights that have been tested in conformance with safety standards. Check each set of lights and throw out damaged sets. Use no more than three standard-size sets of lights per single extension cord.
Before using lights outdoors, check labels to be sure they have been certified for outdoor use. Plug all outdoor electric decorations into circuits with ground fault circuit interrupters. Turn off all lights when you go to bed or leave the house. The lights could short out and start a fire.
Trouble-Free Toys • • • •
Safer Trees •
•
Before buying a toy or allowing your child to play with a toy read the instructions carefully. Follow recommended age ranges on toy packages. Children under age three can choke on small parts contained in toys or games. Watch for pull toys with strings that are more than 12 inches in length.
Happy Visiting • • •
•
Clean up immediately after a holiday party. Remember that the homes you visit may not be childproofed. Keep an eye out for danger spots. Keep a laminated list with all of the important phone numbers you or a baby-sitter is likely to need in case of an emergency. Traveling, visiting family members, getting presents, shopping, etc., can all increase your child’s stress levels. Trying to stick to your child’s usual routines, like sleep schedules and timing of naps, can help you and your child enjoy the holidays and reduce stress. Adhering to these tips will help reduce your family’s risk of falling victim to an unfortunate mishap or accident this holiday season. At American Safety we pride ourselves in making Safety our Attitude. From everyone at the American Safety Family, we would like to wish everyone a safe and wonderful Christmas and a prosperous and fulfilling New Years!
Shawn Todd Safety Manager, American Safety Services, Inc.
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DECEMBER 2014 & January 2015
TOP
FESTIVALS AND EVENTS IN TEXAS All across Texas, a variety of festivals, events and attractions are a great way to have fun and to spend time with your family. CHRISTMAS IN FLATONIA December 1, 5, 6 Flatonia - Dec 1 - Christmas Village Lighting & Santa; Dec 5 Wonderful Winter Wine Walk (5pm-9pm); and Dec 6 - Christmas Market, Cookie/Candy Carnival & Santa. Civic Center, 9am-4pm. 208 E.N. Main Street in Flatonia. Exit 661 on I-10. (361) 865-3920 flatoniacofc@sbcglobal.net www.FlatoniaChamber.com 28th SIGHTS & SOUNDS OF CHRISTMAS December 3-6 San Marcos - Get the entire family into the Christmas spirit by joining in on the fun-filled activities at Sights & Sounds. Start your Christmas shopping early at the arts & crafts marketplace, visit Santa’s village, ride the carousel, view a live nativity scene, and enjoy holiday foods. Admission: $5 adults nightly; kids free 12 & under. (512) 393-8400 www.toursanmarcos.com ROSENBERG CHRISTMAS NIGHTS December 4-6 Rosenberg - Historic Downtown. (832) 595-3525 www.CityofRosenberg.com/RCN HOLIDAY SIP ‘N STROLL December 4-6 Seguin - Enjoy a North Pole Stroll on the Square to shop and sample cocoa at each participating shop, plus a festive lighted parade on Town Square, photos with Santa, Christmas music, carriage rides, Heritage Tour of Homes, trolley shuttle, and much more! (830) 379-6382 www.visitseguin.com
5:30pm - 9:30pm. (888) 381-1818 www.dentonholidaylighting.com 31st ANNUAL “FOR GRANBURY A CANDLELIGHT TOUR” December 5-6 Granbury - www.granburyacandlelighttour.com for early discounted tickets, or also visit www.facebook/granburyacandlelighttour.com UNDER THE CHRISTMAS TREE December 5 Sherman - www.shermanchamber.us DOWNTOWN BRENHAM CHRISTMAS STROLL & LIGHTED PARADE December 5 Brenham - Enjoy live entertainment and holiday shopping as you stroll the beautifully-lighted streets of Historic Downtown Brenham. The downtown lighted parade is sure to put everyone in the holiday spirit. Free admission & free parking. 1-888-Brenham www.downtownbrenham.com WINTERFEST December 5, 6, 7 Gonzales - The annual lighted parade is Friday, Dec 5 at 6pm. Santa’s Market is Saturday, Dec. 6. Call 888-672-1095 www.gonzalestexas.com
UNITY THEATRE PRESENTS “PLAID TIDINGS” December 4-21 Brenham - Unity Theatre, 300 Church. (979) 830-8358 www.unitybrenham.org Tickets@UnityBrenham.org 22nd ANNUAL HOLIDAY LIGHTING FESTIVAL December 5 Denton - Capture the spirit of the holidays on Denton’s Downtown Historic Courthouse Square. Sip wassail as you browse gift & specialty shops and enjoy musical entertainers on the Square. Friday, 28
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
STARS IN THE VILLAGE December 5-6 & 12-13 Gonzales - Gonzales Pioneer Village Living History Center presents a stroll through its 1800s village after dark. Enjoy period Christmas decorations and sip wassail with ginger cookies while musicians play Christmas music on old-time instruments. Bus. US 183N. Adults $8; children $5. (830) 672-2157 thevillage@gvec.net www.gonzalespioneervillage.com NORWEGIAN COUNTRY CHRISTMAS TOUR December 6 Clifton - “The Norwegian Capital of Texas” Call 1-800-344-3720 www.cliftontexas.org Junior Achievement Jingle Bell Run December 6 Wall Street, Midland Texas. 8:30 AM - 11:30 AM. The Jingle Bell Run is a 5K chip timed event the helps provide funds so that JA programs can be presented in our local schools that help students own their economic success. Register at www.texasgotime.net
31st ANNUAL OMA’S CHRISTMAS FAIR December 6-7 Boerne - Shop for handcrafted merchandise among dozens of vendors in three buildings at the Kendall County Fairgrounds. Enjoy photos & scheduled visits with Santa, door prizes, kid’s activities, complimentary holiday spiced tea & a bake sale. www.KCFA.org NORTH POLE VILLAGE December 11-13 & December 18-20 Canyon Lake - CRRC Recreation Center, 125 Mabel Jones Dr., Canyon Lake, TX. 6pm to 9pm. (830) 964-2324 www.crrcofcanyonlake.org 7th ANNUAL TOMBALL GERMAN CHRISTMAS MARKET December 12-14 Tomball - Shop 175 vendors for holiday decor, food & gifts at this open-air street festival with three tented stages of live performances, German Santa, biergartens, Kinderfest entertainment for youngsters, carnival, food, hayride, arts & crafts, German & Texas music. Old Town near historical Depot Plaza. Free admission. (281) 379-6844 www.TomballGermanFest.org CHRISTMAS AT FORT CROGHAN December 13 Burnet - Fort Croghan Museum & Grounds, 703 Buchanan Drive (TX29 West). (512) 756-8281 CANDLELIGHT CHRISTMAS December 13 Washington - Modern and historic activities will be staggered throughout the site during the day. Evening activities move to Barrington Living History Farm for vignettes of holiday festivities from the 1850s. Noon-6pm. Washington-on-the-Brazos State Historic Site, FM 1155. Call for fees (936) 878-2213 www.BirthplaceofTexas.com
CHRISTMAS PARADE December 6 Cameron - Join us for Cameron’s Annual Christmas Parade & fun on downtown’s decorated historic square. Get a snack at the food booths, listen to the music & have your picture taken with Santa. Festivities start at 5:30 pm, with parade at 6:30 pm. What a great way to recapture your childhood Christmas spirit with lights, music, floats and Santa! (254) 697-4979 www.cameron-tx.com
CHRISTMAS IN WINEDALE December 13 Winedale - Enjoy 19th-century folk-life demonstrations, stagecoach rides, historic homes decorated as they would have been in the mid-1800s, farm animals, storytellers, children’s crafts, musical entertainment, family friendly event. 12-4pm. Free. Wine-dale Historical Complex, 3738 FM-2718, Round Top. winedale@austin.utexas.edu www.cah.utexas.edu
HOLIDAY BY THE TRACKS December 6 Elgin - On Hwy 290, only 19 miles east of Austin. 9am-3pm. (512) 285-4515 www.elgintx.com
INGLESIDE RENAISSANCE FAIRE December 13-14 Ingleside - Relive the 1700’s with medieval com-bat, archery, acrobats, costumes, jousting, food, juggling, belly dancing, musical entertainment, vendors & much more! Live Oak Park. (361) 776-2906 inglesidetxchamber@gmail.com
28th ANNUAL CHRISTMAS LIGHTED BOAT PARADE December 6 Port Isabel - This spectacular lighted boat parade can be viewed bayside Saturday evening as floating, decorated vessels dazzle onlookers. All sizes and types of boats take part in this annual illuminations extravaganza - even kayaks! (800) 527-6102 19th ANNUAL CY-FAIR FFA COUNTRY CHRISTMAS CRAFT SHOW December 6-7 Cypress - Contact Liz Gilbreath at 281-513-6781 or Dione Pevehouse at 832-220-6011. Email: vendor.info@cyfaircountrychristmas.org www.cyfaircountrychristmas.org
COMANCHE TRAIL FESTIVAL OF LIGHTS December 15 -31 Big Spring - A mile of various themes & silhouettes are highlighted with a stunning display of Large Poinsettias on the Dam of Comanche Trail Lake, off Highway 87. (432) 263-8235 or (866) 430-7100 Wagner Noel Presents A Christmas Carol December 16 1310 N FM 1788. Midland, Texas. 7:30 PM - 9:30 PM
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polos
t-shirts
koozies
pens
business cards
caps
flashlights knives
misc.
Promotional Products • TV/Video Production • Graphic Design • Photography
432-559-5886 promoitems@mad-ads-media.com
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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Cares
Opportunities to Give this
Holiday For this month’s PBE cares, we wanted to take some time and give you an overview of several local non-profits looking for some extra support this holiday season. Although most of these organizations need help all year long, the holidays are the perfect time to start a habit of giving back.
Midland Soup Kitchen
Contact: Nancy Ivy Email: nancyivy@yahoo.com (432) 230-9801 The Midland Soup Kitchen will be serving Christmas Dinner on Wednesday, December 24 at 11 am until 1 pm. They typically serve 350-400 people. Each child will receive a toy with a bag of goodies (orange, apple, candy). Teens will receive a bag of goodies and a small gift card. Each woman will receive a blanket and each man will receive a pair of gloves as well as a hat. The menu consists of boneless spiral ham, mashed potatoes, green beans and black-eyed peas. Needs: • Volunteers to help serve the meal (Dec. 24, 11 am-1 pm) • For the meal: boneless spiral ham, mashed potatoes, green beans and black-eyed peas. • Toys for the children • Gift cards for the teenagers • Candy for the goodie bags • Gloves and warm hats • Blankets (fleece, etc.)
Jesus House-Odessa
Contact: Donny Kyker Email: Donny@ftfodesssa.com (432) 272-3362 Jesus House serves their Christmas meal on December 25 at 11 am- 1pm. They welcome volunteers but require a form 32
to be filled out if you wish to volunteer. The have already received vital donations from other churches (sleeping bags, etc.) However, they welcome any donations such as blankets. Needs: • Volunteers to actually cook the meal • Volunteers to serve (10:30 am-1:30 pm on Dec. 25) • Volunteers who would like to come and sing Christmas carols during the meal • Bagged goodies (cookies, baked goods, etc.) to hand out • A possibility could be to gather requests from the people they serve and meet that need (warm coat, etc.). (This will need to be communicated with them fairly soon) • Any items that they have on their Survival Guide & daily list on their webpage: http://www.jesushouseodessa. com/#!supplies/cm44
Breaking Bread Soup Kitchen-Midland
Contact: Trisha Weatherford Email: trishaweatherford@live.com (432) 813-7714 Breaking Bread serves 100 meals on average each weeknight. This year they will be closed for ten days for Christmas. However, their families will not go without. They are planning to give out ten $10 food gift cards for each family to help compensate for the time that they are closed. Currently, three local restaurants have donated gift cards for three nights! They will also be giving each family a bag of non-perishable food.
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
Needs: 100 - $10 Walmart gift cards 100 - $5 Sonic gift cards 100 - $10 domino's gift cards 100 - $5 McDonald's Gift cards 100 - $5 Jack in the Box gift cards !00 - $5 Texas Burger Gift certificates 100 - $10 Rosa's Gift certificates 100 - $ 5 Taco Villa Gift certificates 100 - $10 Chick-Fil-A gift certificates 100 - $6 little Caesars gift certificates • Large gift bags for each family • Granola bars • Fruit snacks • Apples • Oranges • Pop top cans • Beef jerky • Peanut butter crackers • Nuts • Toiletries • Gloves and socks
Genesis Center of the Permian Basin
Contact: Michelle Motley Email: motley@genesiscenter.org (432) 682-2514 There are currently 13 women and 7 children that are staying at the Genesis Center. For a detailed list of needs for the single mothers and children, please email Michelle Motley. Needs: • Bath and Body Works Gift Sets • Bath Robes / House Coats • Christian Jewelry • Flat Irons / Curling Irons / Curling Wands • Makeup Gift Sets • Mardel Gift Cards • Pajama’s / House Shoes / Socks • Paper Goods • Portable CD Players / Christian CD’s • Stationary • Study Bible / Bible Covers • Wal-Mart Gift Cards
Midland Co. Greater Works
Contact: Katy Beauchamp Email: katybeauchamp@sbcglobal.net (432) 352-9646 Midland County Greater Works feeds the food insecure of Midland County focusing on the low income elderly and disabled. We meet needs and reach hearts. We give each of our residents food for Christmas, In addition, we usually do a towel and washcloth, socks, hard candy, tooth brushes/ toothpaste, deodorant, slippers, robes and throw blankets—200 each. Please contact Katy Beauchamp for more information or to donate.
Church Under the Bridge-Midland Contact: Evan Rogers Email: evan@cutbmidland.org (432) 664-5370 Church Under the Bridge Midland will be having a Christmas meal on December 20. If you would like to help fulfill any needs from their groups wish list please contact Evan Rogers.
Agape Dream Center-Odessa Contact: Amanda Torres Email: agapedreamcenter@gmail.com (432)337-1745 Agape Dream Center will be hosting a Christmas Banquet on Tuesday, December 23 at 11:30 am to 1:30 pm that is open to the community. They will be serving a traditional meal with turkey and all of the fixings. Needs: • Volunteers to help serve food and love on those that attend • Assistance with purchase of food for their meal
West Texas Food Bank Contact: Libby Campbell Email: Libbycampbell@feedingamerica.org (432) 580-6593 The West Texas Food Bank serves 19 counties in the Permian Basin. Needs: • Peanut butter • Canned meats (tuna, chicken, etc.)
Food2Kids Contact: Sara Kate Billingsley Email: Sarakate1413@gmail.com (432) 366-1597 Food2Kids has received 2,100 blankets for Christmas to pack in the bags of all of the children that benefit from the in the Permian Basin. Food2Kids is looking for donations of the following in addition to what they normally receive. Needs: • Rice crispy treats • Pop-tarts • Christmas candy • Small bags of chips • Fruit roll-ups & gushers
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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Tech
Bites
Source: CNN Money
Is the government
spying on you? Find out...
Are you concerned that the government is spying on you? A consortium of human rights activists claim a new app called Detekt will alert you if spies are watching. Detekt works like an antivirus scan. Run it on your computer, and it tells you if the machine has been infected with malware that many government-sponsored hackers are known to use to spy on activists and journalists. For example, the Ethiopian government has been hiring hacking mercenaries to crack down on bloggers. Ethopia has jailed journalists for critical reporting. Their surveillance is widespread: An American citizen in Silver Spring, Maryland with Ethiopian ties recently found this kind of spyware on his home computer, according to a federal lawsuit.
Detekt is limited, though. It only works on Windows computers. Researchers don't have enough insight into how spyware works on Macs, Guarnieri said. It's also not meant to stop the kind of bulk government surveillance revealed by NSA contractor Edward Snowden last year.
Ala'a Shehabi, a British economist in Bahrain, was among those targeted with FinFisher spyware during that country's lethal military crackdown on pro-democracy protests during the Arab Spring in 2012. And the Chinese government is widely suspected of spying on its citizens' online activities. Detekt is the work of Italian security researcher Claudio Guarnieri, Amnesty International, the Electronic Frontier Foundation and similar groups in England and Germany. 34
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And Detekt only spots eight different types of malware, including the strains most commonly used by governments. Now that government-hired hackers know there's a foil around, they're sure to find a workaround, Guarnieri acknowledged. Those limitations are why some cybersecurity experts aren't convinced it'll work. But it's not meant to be the only solution, said Jillian C. York, who worked on the project as EFF's director for international freedom of expression. "It's just one more piece of a toolkit to fight corporations selling spyware to democratic and authoritarian governments," she said. "But we absolutely need it." The fact that Detekt was made an open-source project means that it can only get better, because anyone can see how the code works -- and contribute to it. It also makes Detekt trustworthy, said Mikko Hypponen, the top security researcher at F-Secure in Finland. But if anything else, the man behind Detekt also expects it will spark a conversation about the ethical ramifications of government espionage. "I also hope that this will get people to reflect on how they feel about their governments using spyware," Guarnieri said.
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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PBE NEWS BRIEFS Watching the basin
Conoco to spend less in 2015, below $16 billion ConocoPhillips plans a capital budget below $16 billion next year and will defer spending on some of its lessdeveloped areas, including the Permian Basin and Western Canada, if crude oil prices continue to slide, the company said in November. "Beginning in 2015 capital in our major projects begins to taper off," Ryan Lance, Conoco's chief executive officer told investors on a conference call. "We have significantly more flexibility to ramp up or down our capital as circumstances dictate." The planned budget cuts will not affect the company's ability to achieve its goal to grow production 3 percent to 5 percent per year, Conoco said. This year, the Houston company is on track to spend $16.7 billion.
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Source: Reuters
Watching THE SHALE
U.S. fracking firms stay in top gear despite oil price slump Unfazed by slumping oil prices and battering in the stock market, firms that supply sand and guar gum for shale oil and gas companies are not ready yet to call an end to a four-year boom spurred by hydraulic fracturing technology. The optimism could reflect confidence that the U.S. shale industry is more resilient to retreating oil prices than investors might think. Oil prices have fallen 30 percent since late June and shares of such firms as U.S. Silica Holdings (SLCA.N) and Hi Crush (HCLP.N), which supply sand to U.S. drillers, followed, dumped by investors anticipating 2015 output cuts and a drop in demand. However, the service companies say business remains as strong as ever. Furthermore, they point out that most of their supply has been bought under long term contracts meaning next year should be good too. "We have not seen any data or had any discussions that indicate lower demand for our sand," said Robert Rasmus, Co-Chief Executive Officer of sand producer Hi-Crush after the company reported record third quarter revenues this week. Hi Crush's share price has fallen more than 40 percent since the beginning of September, but Rasmus said almost 90 percent of the company's sand output was sold for 2015. His comments echoed those of other firms that supply sand and other materials to oil drillers. U.S. Silica Holdings, whose oil and gas sector revenues doubled in the third quarter of this year, remains upbeat about its outlook. "We are actively engaged in conversations with our customers about their future growth, and none has brought down their estimated requirements," chief executive officer Bryan Shinn told investors last week. Demand for sand and the powder-like gum made from guar seeds has soared in recent years. Both are used in what is known as "completion" of an oil well, which occurs after drilling and during fracking to keep open tiny fractures in shale rock to allow oil to escape. Their optimism could also be a sign that the shale oil boom, which has transformed U.S. energy industry since
the end of last decade, has enough momentum to keep output and service firms' business rising next year and perhaps beyond even as some drillers already start cutting their 2015 investment plans. Industry experts say existing wells that have been drilled but not yet fracked will keep output surging for months and many have hedged next year's production well above current prices Furthermore, while U.S. oil prices CLc1 hit a three-year low below $76 a barrel this week, several shale oil firms have indicated they would remain profitable if prices stayed above $70. Some companies are still proceeding cautiously though, like Diamondback Energy, an oil producer in the Permian Basin, who said in November that it would start 2015 with five drilling rigs and wait to see what oil prices do before adding three more rigs as earlier planned. Other firms have also signaled potential 2015 spending cuts should oil prices remain low or slide further, eventually weighing on their suppliers' business. Analysts are closely watching the oil rig count for any early signs of a slowdown. The number of oil rigs in North America is near all-time high, according to a weekly survey from service firm Baker Hughes. "It all depends how low oil prices go and how long they stay there - and the jury is still out on that," said Judith Dwarkin, director of energy research at ITG Investment Research in Calgary. "We will be watching the rig deployment." In the meantime, some firms still bet on a continued shale boom. United Guar, a Houston-based firm that supplies guar gum to U.S. drillers, plans to triple its processing capacity over the next 18 months, the company's chief executive Aamer Sarfraz said in an interview, confident that prices will recover. "I don't care if fracking slows in the United States," Sarfraz said. "You have to take a longer term view." Source: Reuters/Andrew Cullen
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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Watching the STATE
Texas leads nation in growth in oil and natural gas production jobs during 2013 Texas added more than 19,000 new private sector jobs in oil and natural gas production in 2013, almost six times the number added in New Mexico, the next highest state for oil and natural gas production jobs added last year. The extraction, drilling, and support jobs categories are a measure of on-the-ground production jobs, and do not reflect the many jobs at oil and natural gas corporate headquarters based in Texas. In the past decade, growth of jobs in oil and natural gas extraction, drilling, and support activities has outpaced the national average of private sector job gains. Overall, oil and natural gas production jobs in the United States increased from 292,846 annual jobs in 2003 to 476,356 in 2008, a 63% increase. Following the net loss of 54,323 oil and natural gas production jobs during the 2008-09 recession and relatively little national job growth, jobs in oil and natural gas production increased another 28% from 2009 to 2013, from 422,033 to 586,884. Additionally, average wages of oil and natural gas production jobs were $108,000 in 2013, more than
twice the average wage for all private sector industries. Since 2009, average wages from oil and natural gas production jobs have increased by 12%, compared with a 10% increase for all private sector industries. Most of the job growth has occurred in Texas, along with significant contributions from Oklahoma, New Mexico, and North Dakota. These jobs are part of the larger mining sector, which includes the extraction of coal and metals as well as oil and natural gas extraction. Many of the states that exhibit strong growth in oil and natural gas employment also show growth in mining activity and economic activity (measured as gross state product). In 2013, Texas, Oklahoma, and North Dakota were among the top states for growth in gross state product and in the mining sector. Much of the growth in oil and natural gas jobs can be traced to growing onshore production in several shale formations in the Lower 48 states. • Texas is home to the Eagle Ford, the most prolific oil-producing play, as well as much of the Permian and Haynesville formations. • North Dakota contains most of the Bakken formation, whose oil production has spurred significant employment and state product growth over the past decade in what was one of the smallest state economies. • New Mexico has four large counties producing from the oil-rich Permian Basin that contains 3 of the 100 largest oil fields in the United States. • Pennsylvania has seen significant job growth from natural gas production in the Marcellus region in recent years, although growth flattened during 2012-13. • Colorado and Wyoming share the oil- and natural gasproducing Niobrara formation. Source: U.S. Energy Information Administration, based on U.S. Department of Labor, Bureau of Labor Statistics, Quarterly Census of Employment and Wages
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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
Watching the GOVERNMENT
U.S. House passes Keystone bill The Republican-led U.S. House of Representatives approved the Keystone XL pipeline in November, but a similar measure struggled to get enough support in the Senate and President Barack Obama indicated he might use his veto if the bill does get through Congress. The legislation, approved by 252 votes to 161, circumvents the need for approval of TransCanada Corp's (TRP.TO) $8 billion project by the Obama administration, which has been considering it for more than six years. No Republicans voted against the measure, while 31 Democrats voted for the bill. It was the ninth time the House has passed a Keystone bill, and supporters were confident that this time the Senate would follow suit and pass its version. Approval for the pipeline, which would help transport oil from Canada's oil sands to the U.S. Gulf coast energy hub, has rested with the Obama administration because it crosses an international border. The decision has been pending amid jousting between proponents of the pipeline who say it would create thousands of construction jobs and environmentalists who say it would increase carbon emissions linked to climate change. If the measure did pass Congress Obama would have to decide whether to make rare use of his veto power. While the White House has not said if he would do this, Obama has threatened to use his veto in the past. Shortly after the Keystone Pipeline vote, he said he still favored the evaluation that is being carried out by the State Department. Noting legal action in Nebraska, where a court is expected to rule in coming weeks on a case over the pipeline's route in the state, Obama said "until we know what the route is it's very hard to finish that evaluation. And I don't think we should short-circuit that process." The House vote would have no effect on the State Department’s review, department spokeswoman Jen Psaki told a briefing. She did not say when it would be completed. Source: Reuters DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
39
Watching the Nation
Rail shipments of oil and petroleum products through October up 13% over year-ago period U.S. rail traffic, including carloadings of all commodity types, has increased 4.5% through October 2014 compared to the same period in 2013. Crude oil and petroleum products had the second-biggest increase in carloadings through the first 10 months of this year, with these shipments occurring in parts of the country where there is also strong demand to move coal and grain by rail. In response to shipper concerns over the slow movement of crude oil, coal, grain, ethanol, and propane, federal regulators are closely tracking service among the major U.S. freight railroad companies. Rail carloadings of oil and petroleum products totaled 672,118 tank cars during January-October 2014, 13.4% higher compared to the same period last year, according to the Association of American Railroads (AAR). Rising U.S. crude oil production, particularly in North Dakota's Bakken Shale formation, where pipeline takeaway capacity is limited in moving the state's growing oil volumes to market, is one of the main reasons for this increase in rail shipments of petroleum and petroleum products. Rail shipments of coal were up a relatively small 0.3% during the same period, but coal is still by far the largest commodity volume moved by rail, with 4.9 million carloadings. Power plant operators are seeking more coal deliveries by rail to rebuild their coal stockpiles,
40
which were drawn down during last winter's colderthan-normal weather. Rail also moves U.S. coal to various points for export. At the national level, coal exports were down nearly 16% during the first half of this year, but coal exports from the Seattle Customs District (mostly sourced from Wyoming's Powder River Basin) were up 2.4% during the first half of 2014. Increased movement of grain represents the biggest commodity increase in rail traffic so far this year, up about 15% to 878,824 carloadings, according to AAR. The U.S. Department of Agriculture (USDA) forecasts a record harvest of corn and soybean crops this year. Harvesting of these crops is well underway in the major growing areas in the northern Great Plains states, according to USDA's crop progress reports. On October 22, the U.S. Department of Transportation's Surface Transportation Board (STB) began requiring major freight rail carriers to file weekly updates on their service performance in delivering goods and commodities. These filings will lead to a better understanding of commodity movements by rail and the potential issues associated with increased demand from multiple types of commodities. Source: U.S. Energy Information Administration, based on Association of American Railroads
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
Watching Offshore
Statoil in test case for industry as Canada extends seabed territories Norway's Statoil risks millions of dollars in extra costs in Canada - a test case that could spell problems for other oil firms too as coastal states extend their seabed territories far into resource-rich ocean depths. Coastal nations are using U.N laws to extend and define new limits to their seabed territories, pushing beyond a previously established 200-nautical mile (370 kms) zone for drilling and mining as technology opens new frontiers in finding deepwater oil and gas. But that extended territory comes with a bill to pay a percentage of future revenues to the U.N. body that monitors the international seabed - something governments are seeking to pass on to oil and mining firms. The rules - articles of the U.N. Convention on the Law of the Sea - have thus far been irrelevant because the regions beyond the previous limit are so remote they would have cost too much to develop. But industry advances have lately opened up huge deepsea possibilities from the Arctic Ocean to the Pacific: specialist
firm Transocean drilled a well in a record 3,174 metres (10,411 feet) of water off India last year. Dozens of states have made submissions to the U.N. Commission looking at seabed rights. However all eyes are on Canada's extended territories as the test case for oil companies because Statoil has found potential new fields there. Assuming oil production goes ahead, Canada and Statoil will be the first to become liable to Article 82 - the part of U.N. law that lays out the terms of the payments to the International Seabed Authority (ISA). The payments start at one percent of revenues in the sixth year of production and rise by one percentage point a year to a maximum of 7 percent from the 12th year. "It does seem likely that the Statoil field will be the first Article 82 area to go into production," said Michael Lodge, legal counsel to the Jamaica-based ISA, which would collect revenues and redistribute them, mostly to developing nations. Source: Reuters
Watching the WORLD
Iran to draw on sovereign fund to withstand oil price slide Iran will draw on its sovereign wealth fund to cope with damage to its economy from plunging global oil prices, Iranian Oil Minister Bijan Zanganeh was quoted by the ministry's news agency Shana as saying. "By drawing upon its National Development Fund to reimburse contractors active in upstream projects, Iran will make up for the impact of the oil revenue decline on these projects," Zanganeh said, according to a Shana report in November. Iran's National Development Fund is worth about $62 billion, according to the Sovereign Wealth Fund Institute, which tracks the industry. Some of its assets may be frozen by international sanctions imposed over Iran's disputed nuclear program. Iran is hoping to ramp up its oil and gas output if it can win a lifting of the sanctions at talks on the nuclear program with world powers this month. But to increase output it needs to invest heavily in ageing production facilities and infrastructure, and the oil price plunge has slashed the money it has available to do that. The International Monetary Fund has estimated Iran needs an oil price above $130 a barrel to balance its state budget;
Brent crude is now below $80 a barrel. The IMF estimated last month that Iran would run a general government deficit of $8.6 billion this year, at the official exchange rate. Zanganeh also said Iran would raise tax revenues to compensate for the impact of the oil price slide, but Shana gave no details. The economy is recovering only slowly from a deep recession triggered by the sanctions, so it may be difficult to introduce any major tax increases. Iran will adopt "a contractionary monetary policy" for the next year, Zanganeh said. He did not elaborate, but his statement appeared to indicate the central bank would not loosen policy in an effort to offset the drop in oil revenues. Under the administration of President Mahmoud Ahmadinejad, who left office last year, monetary policy was loosened to fight the effect of the sanctions, fuelling a leap in inflation and depreciation of the rial currency in the free market. Under his successor Hassan Rouhani, the central bank has tightened policy, stabilizing the rial, and annual urban inflation is down to 19 percent from peaks above 40 percent. Source: Reuters
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
41
RESTAURANT Source: tripadvisor.com
BITES
TOP 5 RESTAURANTS IN ABILENE, TX
For this months restaurants bites we searched out the 5 top rated restaurants in Abilene Texas, and compiled a list for those of you who may be traveling through on business in the near future.
Belle's Chicken Dinner House
Ranked #1 of 223 restaurants in Abilene on Trip Advisor 2002 Clack St, Abilene, TX (325) 677-7100 "Incredible!” Reviewed November 2014 This is the best meal you can get in Abilene. Fried Chicken is the signature meal but you can also have baked chicken, fried catfish, chicken and dumplings and chicken fried steak. The meals are served family style, you choose your meat and the sides are brought in bowls and can be refilled. I saved the best for last. The rolls, oh those rolls! Probably the best rolls in Texas! They leave honey on the table because they know you will want it. The rolls are to die for! Did I mention the rolls? You get the idea! Be sure to check the days and hours they are open. The outside of the building looks like a Texas pool hall, but don't let it scare you off!
Szechuan Chinese Restaurant
abileneszechuanrest.com Ranked #2 of 223 restaurants in Abilene on Trip Advisor 3425 S 1st St, Abilene, TX (325) 673-9100 “Excellent!” Reviewed November 2014 Who would have guessed that the 6th highest rated Chinese restaurant in the US would be in Abilene, Texas? I have eaten here a couple of times. I can say it is among the best I have ever had. We ordered and shared several entrees and they were all good. 42
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
Middle East Restaurant
Ranked #3 of 223 restaurants in Abilene on Trip Advisor 4621 south 14th street Abilene, Texas (325) 691-9266 "That Lamb...” Reviewed November 2014 This restaurant is consistently excellent. It may not appear great from its location and building, but this is some of the best food in Abilene. I am also a fan of the Iraqi spices and now prefer them even over Persian spices. This is not the Middle Eastern restaurant that will serve Greek and pretend you do not know any better. The falafel, hummus, and baba ganoush are fantastic. You will not go wrong with the lamb, beef, or chicken. I am partial to the Gyro Sandwich. I do not know who had the brilliant idea to serve it with fries, but that person is a genius. If you live in or visit Abilene come try this food. You will not be disappointed. It may be a little slow because of short staff, but it is well worth the wait.
Beehive Restaurant
www.beehivesaloon.com Ranked #4 of 223 restaurants in Abilene on Trip Advisor 442 Cedar St, Abilene, TX (325) 675-0600 “Perfect Vintage and Updated West Texas Steakhouse” Reviewed November 2014 We found this while in Abilene for our son's tennis tournament. Not wanting to go to a chain and always enjoying searching out local gems, we happened onto this during our internet search of local restaurants. The place from the outside looked like a classic 1960s upscale restaurant, but on the inside, while there were still 1960's touches and feel, it was updated in its food and service style, upscale but understated, not trying to prove anything because it already has. Great food (one of the best steaks ever, crusty charcoaled on the outside and juicy and delicious on the inside) Great experience.
Little Italy
www.littleitalyabilene.com Ranked #5 of 223 restaurants in Abilene on Trip Advisor 1417 south Danville, Abilene Texas (325) 692-8117 “There's no other word but amazing.” Reviewed November 2014 I don't know how well I can attribute this to authentic Italian food, as I have never been to Italy...but this is how I imagine true Italian food to taste. The atmosphere is beautiful. They have booths that can be semi-private because they have folding screens that can be pulled in front to close you off in your own little space. I imagine this being a very romantic place to eat due to the intimacy. The staff is PHENOMENAL! I was here with a large group, and the server did not even bat an eye. He helped us all with our orders, and the food came out very quickly. Unlike most restaurants, the staff did not mind that we stayed for a while to chat. I was with a group of friends that does not get together often, so it was nice to be able to chat. They were not terribly busy at the time, so that might have been a contributing factor. And oh my goodness the food. The house dressing was fantastic. It had some type of tomato base, but it was literally the best salad dressing I have ever tasted. I ordered the chicken parmesan, which is my go-to Italian food. Unlike most restaurants, it did not taste like a frozen chicken patty. It was oh-so tender, juicy, and breaded to perfection. The pasta was wonderful. Everything about it was wonderful! I also got to sample the tortellini...which was phenomenal as well. Also, the creamy pink sauce is to die for! DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
43
I Give Because He Gave by Daniel Stephens
Daniel Stephens is the Senior Pastor of Mid-Cities Community Church, since 2006. He is the honored husband to Kayla Stephens, a proud father of twin sons Jonah & Jude, daughter Kampbell and youngest daughter Karis Anna.
When I was a kid the Holidays couldn’t come soon enough. It seemed like an eternity before another Christmas would arrive. The day after Christmas my brothers and I would begin to count down the days until the next one. 364…363...
The other night we had a family movie night. We had How to Train a Dragon 2 queued up, blankets on the floor, the lights turned down. I was lying next to my five year old when she looked over towards me with her big brown eyes
Now, as an adult, it feels like holidays arrive with the regularity of a syndicated sitcom. There are the tubs of Christmas décor that are hauled from the attic. Then there is the Christmas tree or trees depending on whom you are married to, and outdoor lights of which we risk our lives and livelihood to hang. Amidst all of these chores, it’s easy for Christmas to become another item to do in our already over scheduled and complicated lives. I don’t want it to feel that way, but often I do. I ran across a truth recently that has helped my attitude as we head into this season. It is found in the most well known passage in the Bible. Jesus says these words “For God so loved the world, that he gave his only Son, that whoever believes in him should not perish but have eternal life. 1 This verse can be so familiar to us we can miss those two words that define the season. Two words that can sum up the good news Jesus tells his followers to proclaim. “He gave”. God gave His Son, so that those who would be believe in Him might have eternal life and forgiveness of sins. He gave. It shouldn’t surprise us that God is a generous, giving God. Throughout scripture, He is constantly giving mercy, grace, land, rest, provision, forgiveness, and the ultimate gift, His Son. 44
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
as the movie started and said those words every dad wants to hear, “Dad, would you make us some popcorn”. Moved by her sentimentality, I promptly went to the kitchen to make the crew some popcorn. As I distributed the snacks and settled into my leather chair, I found myself getting lost in the movie. During an epic battle scene, the father of the main character steps in front of his son and takes a blow that proves to be fatal. At this pivotal moment in the show, my “brown eyes” made her way up into my lap and once again looked up at me, this time touching my cheek. “Daddy, if you died, I’d be so sad”. It got me to thinking later that night, what if I did die? What would I want said of me? On my tombstone, I concluded I want the words “He Gave”. Just as the Father in that movie and my heavenly Father gave. I want to be a dad who gives love and wisdom, grace and truth, support and discipline. I want to give my wife unconditional love. I want to give my friends encouragement to be who God created them to be. I want to be generous with my time and resources towards those who are in need. I want to be like God whose nature and character is to GIVE and GIVE generously. When someone steps up to the microphone at my memorial service I hope they say, “He gave, because God gave”.
Christmas reminds us of God’s generosity. We celebrate the greatest gift humanity could have ever received. God came to us. He became one of us. What if this Christmas we spent less time worrying about presents and shopping and spent more time giving? Giving to those in need. Giving our loved ones encouragement and quality time? What if as a family we decided we are going to the Midland Soup Kitchen or Jesus House in Odessa to serve their Christmas meal? What if you grabbed your crew on Dec 20th and joined Church Under the Bridge to feed the homeless this year? There are a number of organizations and people who have a need this Christmas. Yes, they may need a meal or some clothes but what if beyond that they received compassion, empathy, conversation, and respect? Let’s change our attitudes about Christmas this year. Let’s be like God…and give. There is a complete list of opportunities for you or your family to serve and give this Christmas in PBE Cares on page 32. Follow Daniel on Twitter: @DanielBstephens The Holy Bible: English Standard Version. (2001). (Jn 3:16–17). Wheaton: Standard Bible Society.
1
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
45
U.S. RIG COUNT - TEXAS States &
through December 5, 2014
BAKER HUGHES RIG COUNT
RIGDATA RIG COUNT
Four Week Average 2013
Four Week Average 2014
Last Week
This Week
Four Week Average 2013
Four Week Average 2014
Last Week
This Week
Waiting to Spud
Texas RRC District 1
131
127
123
123
125
121
117
118
10
Texas RRC District 2
83
85
88
88
81
95
96
92
6
Texas RRC District 3
48
71
67
71
52
78
79
73
4
Texas RRC District 4
34
23
22
22
27
24
26
27
0
Texas RRC District 5
13
8
7
7
12
9
9
7
0
Texas RRC District 6
27
31
30
30
28
35
36
36
3
Texas RRC District 7B
14
14
14
15
21
24
24
22
3
Texas RRC District 7C
69
96
95
97
76
105
105
109
6
Texas RRC District 8
278
337
339
335
268
322
324
317
18
Texas RRC District 8A
40
33
33
35
43
37
39
34
2
Texas RRC District 9
22
16
16
16
35
23
26
24
2
Texas RRC District 10
67
64
67
66
73
67
69
61
4
Texas Total
826
905
901
905
841
940
950
920
58
U.S. Totals
1,761
1,931
1,967
2,186
2,206
2,143
141
Districts
1,928 1,929
COPYRIGHT Š 2014 RIGDATA P.O. Box 820547 Fort Worth Texas 76182-0547 1-800-627-9785 | www.rigdata.com This report is protected under United States and international copyright laws and is intended for the exclusive use of the subscriber. Any unauthorized reproduction, retransmission, distribution, publication, broadcast or circulation of this report to anyone, directly or indirectly, without the express prior written consent of RIGDATA is prohibited. To order additional report copies at a reduced rate or for a corporate site license, please contact: 1-800-627-9785 46
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
Top 35 Drillers Rankings Each month we track the activity of all the drillers and compile the results into a report that identifies the top 35 out of 100 drillers based on their footage drilled. Updated monthly, these reports also detail the number of well starts and the number of directional wells drilled by each of the top 35 out of 100. through October 31, 2014 Company
Footage Drilled
% of Total
Average Footage
Well Starts
% of Total
Directional Wells
1
Helmerich & Payne, Inc.
54,282,423
17.9%
10,585
5,128
13.7%
4,646
2
Patterson-UTI Drilling Company, LLC
32,421,271
10.7%
10,807
3,000
8.0%
2,734
3
Nabors Industries, Ltd.
27,152,919
8.9%
7,928
3,425
9.2%
3,091
4
Chesapeake Energy Corporation
13,199,130
4.3%
9,887
1,335
3.6%
1,335
5
Precision Drilling Trust
12,254,552
4.0%
8,893
1,378
3.7%
1,315
6
Ensign Energy Services, Inc.
11,621,989
3.8%
6,361
1,827
4.9%
1,075
7
Unit Corporation
10,056,655
3.3%
10,283
978
2.6%
922
8
Pioneer Energy Services Corp.
8,546,390
2.8%
10,538
811
2.2%
623
9
Trinidad Energy Services Income Trust
7,256,667
2.4%
9,754
744
2.0%
600
10
Cactus Drilling Company, LLC
6,117,029
2.0%
10,315
593
1.6%
584
11
Oil States International, Inc.
6,097,381
2.0%
6,260
974
2.6%
259
12
Sidewinder Drilling, Inc.
4,467,961
1.5%
8,936
500
1.3%
467
13
Xtreme Drilling and Coil Services Corp.
4,336,150
1.4%
10,707
405
1.1%
390
14
Savanna Energy Services Corp.
4,260,856
1.4%
8,914
478
1.3%
174
15
Latshaw Drilling & Exploration Company
2,956,050
1.0%
8,694
340
0.9%
338
16
Superior Energy Services, Inc.
2,797,173
0.9%
9,990
280
0.8%
137
17
Frontier Drilling, LLC
2,760,693
0.9%
8,992
307
0.8%
268
18
Cyclone Drilling, Inc.
2,731,618
0.9%
5,174
528
1.4%
511
19
Robinson Drilling of Texas, Ltd.
2,429,711
0.8%
11,044
220
0.6%
7
20
SandRidge Energy, Inc.
2,413,667
0.8%
6,649
363
1.0%
132
21
CanElson Drilling, Inc.
2,373,583
0.8%
8,890
267
0.7%
113
22
Scandrill, Inc.
2,088,934
0.7%
11,670
179
0.5%
158
23
SWN Drilling Company
2,068,571
0.7%
4,487
461
1.2%
460
24
Orion Drilling Company, LLC
2,016,028
0.7%
11,200
180
0.5%
170
25
Precision Drilling (US) Corporation
1,899,327
0.6%
9,175
207
0.6%
128
26
Bison Drilling and Field Services, LLC
1,874,913
0.6%
11,867
158
0.4%
64
27
Pinnergy, Ltd.
1,773,842
0.6%
9,191
193
0.5%
192
28
Basic Energy Services, Inc.
1,753,526
0.6%
7,430
236
0.6%
64
29
SST Energy Corporation
1,706,697
0.6%
10,039
170
0.5%
164
30
Lewis Energy Group, LP
1,696,600
0.6%
10,159
167
0.4%
166
31
Cade Drilling, LLC
1,693,441
0.6%
11,760
144
0.4%
144
32
ProPetro Services Incorporated
1,564,700
0.5%
11,590
135
0.4%
0
33
Sendero Drilling Company, LLC
1,447,095
0.5%
11,218
129
0.3%
5
34
Big Dog Drilling
1,419,900
0.5%
11,833
120
0.3%
8
35
Murfin Drilling Company, Inc.
1,415,385
0.5%
4,718
300
0.8%
0
Total Top 100 for year 2014
267,189,054
100.0%
---
33,104
100.0%
---
RANK
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
47
Top 35 Operators Rankings Updated every month, we track and rank the top
35 out of 100 operators based on their footage drilled.
Keep track of the most active operators with details on their number of well starts.
through October 31, 2014
RANK
Company
Footage Drilled
% of Total
Average Footage
Well Starts
% of Total
Directional Wells
1
Anadarko Petroleum Corporation
12,808,992
4.8%
10,397
1,232
3.7%
1,222
2
Chesapeake Energy Corporation
10,970,299
4.1%
10,233
1,072
3.2%
1,072
3
EOG Resources, Inc.
8,710,885
3.3%
10,495
830
2.5%
796
4
Pioneer Natural Resources Company
8,531,499
3.2%
12,946
659
2.0%
479
5
Occidental Petroleum Corporation
8,224,239
3.1%
6,188
1,329
4.0%
700
6
Apache Corporation
7,421,526
2.8%
8,942
830
2.5%
579
7
Marathon Oil Corporation
6,478,342
2.4%
15,031
431
1.3%
430
8
BHP Billiton Limited
5,241,707
2.0%
13,794
380
1.1%
379
9
Devon Energy Corporation
5,196,100
1.9%
9,262
561
1.7%
521
10
ConocoPhillips Company
4,934,697
1.8%
8,940
552
1.7%
468
11
QEP Resources, Inc.
4,701,073
1.8%
11,871
396
1.2%
354
12
Chevron Corporation
4,537,534
1.7%
5,070
895
2.7%
386
13
Encana Corporation
4,142,434
1.6%
12,184
340
1.0%
328
14
Exxon Mobil Corporation
3,922,405
1.5%
5,525
710
2.1%
343
15
Noble Energy, Inc.
3,763,927
1.4%
9,853
382
1.2%
380
16
Concho Resources, Inc.
3,527,968
1.3%
10,956
322
1.0%
243
17
Whiting Petroleum Corporation
3,520,798
1.3%
10,235
344
1.0%
309
18
Oasis Petroleum North America, LLC
3,431,449
1.3%
10,305
333
1.0%
333
19
Linn Energy, LLC
2,845,129
1.1%
5,668
502
1.5%
238
20
Laredo Petroleum, Inc.
2,804,300
1.0%
11,217
250
0.8%
106
21
Southwestern Energy Company
2,753,658
1.0%
4,529
608
1.8%
604
22
SandRidge Energy, Inc.
2,697,413
1.0%
5,352
504
1.5%
369
23
EP Energy E&P Company, LP
2,595,174
1.0%
9,756
266
0.8%
237
24
WPX Energy, Inc.
2,452,619
0.9%
6,851
358
1.1%
354
25
Continental Resources, Inc.
2,379,214
0.9%
4,159
572
1.7%
572
26
Antero Resources Corporation
2,296,375
0.9%
11,312
203
0.6%
203
27
CrownQuest Operating, LLC
2,257,100
0.8%
11,942
189
0.6%
0
28
Murphy Oil Corporation
2,204,715
0.8%
10,499
210
0.6%
210
29
Newfield Exploration Company
2,184,293
0.8%
6,205
352
1.1%
340
30
Ultra Petroleum Corp.
2,139,364
0.8%
11,952
179
0.5%
179
31
Penn Virginia Corporation
1,970,000
0.7%
14,485
136
0.4%
136
32
Cimarex Energy Co.
1,809,258
0.7%
10,458
173
0.5%
167
33
Energen Resources Corporation
1,716,062
0.6%
9,919
173
0.5%
113
34
Parsley Energy Operations, LLC
1,639,250
0.6%
11,709
140
0.4%
16
35
SM Energy Company
1,629,380
0.6%
9,311
175
0.5%
175
Total Top 100 for year 2014
267,189,054
100.0%
---
33,104
100.0%
---
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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
Source: www.eia.gov
Refinery outages in fall 2014 EIA has issued its semiannual report on refinery outages and their potential implications for the availability of gasoline and distillate supply. The report considers the supply of distillate fuel and gasoline supply at the Petroleum Administration for Defense District (PADD) and sub-PADD levels rather than at a national level. National balances have limited meaning for the adequacy of distillate fuel and gasoline supply because pipeline infrastructure, geography and marine shipping regulations constrain the amount of product that can flow among the different regions of the United States. The report also contains a discussion of current market conditions and average historical unplanned outages. As with previous semiannual refinery outage reports, this report analyzes the adequacy of available refinery capacity to produce middle distillate (diesel fuel, jet fuel, and heating oil) and gasoline, focusing on the two refinery units, the crude distillation unit (CDU) and the fluid catalytic cracking unit (FCCU), that are most strongly correlated with distillate and gasoline production, respectively. Across the different regions of the country, fall 2014 planned refinery maintenance was concentrated in September and October, and many refineries have returned to or are in the process of returning to normal operations. Less maintenance is planned for November and there is no maintenance planned for December.
However, in the Midwest, 9% of FCCU capacity was offline for maintenance in September and 20% was offline in October. This resulted in below-average gasoline stocks in September and October, which proved problematic in parts of the Midwest when unexpected outages in the Upper Midwest and the Eastern Great Lakes region further reduced gasoline supply. While Midwest refineries supply most of the distillate fuel and gasoline that is consumed in the region, the Midwest also receives products from the Gulf Coast, including supplemental supply during disruptions, as was the case in October. FCCU maintenance in the Rocky Mountain region (PADD 4) also was significant during October. PADD 4 refineries produce much of the distillate fuel and gasoline that is consumed in the region, but the region is also supplied with product from PADD 2 as well as Canada. During periods of tight supply, additional product can be made available to PADD 4 from these other regions. Seven percent of the region's CDU capacity was also offline in October. However, PADD 4 distillate stocks have been above the five-year average level and supply should be adequate.
Table 1 provides a by-PADD, by-month summary of the percentage of available refining capacity expected to be out of service for maintenance during September through November. In most regions, planned maintenance was light compared to last year as well as to historical levels. DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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In the Gulf Coast region (PADD 3), which is the largest refining center in the United States and home to just over half of U.S. capacity, planned fall 2014 CDU maintenance was concentrated in October, when 5% of regional CDU capacity was offline. FCCU planned maintenance was concentrated in September when 10% of regional capacity was offline. Supply of distillate and gasoline remained adequate during this period, although the change in the seasonal gasoline vapor pressure specification did cause some transient market imbalances, as is often the case. With substantially more refining capacity than is needed to meet in-region gasoline and distillate demand, PADD 3 refineries are important sources of supply for other U.S. regions, notably PADD 1, PADD 2 and to a lesser extent PADD 5. The region also supplies international markets. Exports of gasoline from PADD 3, which have averaged 443,000 barrels per day for the first eight months of 2014, can in some instances be diverted to domestic use, providing an important source of additional supply to meet both in-region and neighboring region supply shortfalls. PADD 5 had very little planned CDU maintenance and no planned FCCU maintenance.
GASOLINE AND DIESEL FUEL PRICES DECLINE The U.S. average price for regular gasoline decreased five cents last week to $2.89 per gallon as of November 17, 2014, 33 cents lower than the same time last year. The Rocky Mountain price declined seven cents to $3.01 per gallon.
Midwest price fell less than a penny to remain at $3.79 per gallon.
RESIDENTIAL HEATING FUEL PRICES DECREASE As of November 17, 2014, residential heating oil prices averaged $3.38 per gallon, 3 cents per gallon lower than last week, and nearly 44 cents less than last year’s price for the same week. Wholesale heating oil prices averaged $2.60 per gallon, 10 cents per gallon lower than last week and nearly 44 cents lower when compared to the same time last year. Residential propane prices decreased to $2.40 per gallon, almost 1 cent per gallon lower than last week, and 10 cents per gallon less than the price at the same time last year. Wholesale propane prices averaged $1.00 per gallon, nearly 2 cents lower than last week’s price and almost 41 cents per gallon lower than the November 18, 2013 price.
PROPANE INVENTORIES POST SLIGHT GAIN U.S. propane stocks increased by 0.1 million barrels last week to 81.2 million barrels as of November 14, 2014, 22.8 million barrels (39.0%) higher than a year ago. Gulf Coast inventories increased by 0.4 million barrels while Midwest inventories decreased by 0.3 million barrels. East Coast inventories and Rocky Mountain/West Coast inventories both remained unchanged. Propylene nonfuel-use inventories represented 3.7% of total propane inventories.
The Midwest, Gulf Coast, and West Coast prices each fell five cents, to $2.86 per gallon, $2.67 per gallon, and $3.11 per gallon, respectively. The East Coast price declined four cents to $2.91 per gallon. The average U.S price for diesel fuel decreased two cents from the week prior to $3.66 per gallon, down 16 cents from the same time last year. The East Coast and Rocky Mountain prices both declined three cents, to $3.54 per gallon and $3.77 per gallon, respectively. The West Coast and Gulf Coast prices fell two cents, to $3.76 per gallon and $3.54 per gallon, respectively. The 50
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2014
DECEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
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