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APRIL 2016 ENERGY PIPELINE 3
Features
26 LAW OF THE LAND
22
Greeley City Council approves controversial 22-well site. By Sharon Dunn
DEMOGRAPHICS STILL DRIVING GREAT SHIFT CHANGE
Generation X and Millennials are being groomed to lead companies into the future for decades to come.
ON THE COVER Design by
By Dan Larson
14
RIDING THE HOT WIND
Darin Bliss
20
Vestas reports 2015 was best earnings year yet.
The power on the road.
By Sharon Dunn
16
HERE TO STAY
Noble plans to spend lion’s share of global capital budget in Weld County. By Sharon Dunn
18
GARDENING THE SUN Solar company officials hope to break new ground in Weld.
TECH TALK
By Gary Beers
30
MAKING HOLE
Departments 8
Support Company Profile
10
Field Worker Profile
12
Executive Profile
31
Data Center
Japanese sub attacks oilfield. By Bruce Wells
By Linda Kane
4 ENERGY PIPELINE APRIL 2016
Titan Energy Services, LLC
Meet Matt Summitt, Fuzion Field Services
Meet Jon Sullivan, Sunshare, Senior Director of Project Development
APRIL 2016 ENERGY PIPELINE 5
ENERGY is your
BUSINESS PUBLISHER Bryce Jacobson EDITOR Randy Bangert GENERAL MANAGER Bart Smith ACCOUNT/PROJECT MANAGER Bruce Dennis BUSINESS MANAGER Mike Campbell MANAGING EDITOR Sharon Dunn CONTRIBUTING WRITERS Gary Beers Linda Kane Dan Larson Bruce Wells
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ENERGY PIPELINE MAGAZINE 501 8th Ave. P.O. Box 1690 Greeley, CO 80632 For all editorial, advertising, subscription and circulation inquiries, call (970) 352-0211. Send editorial-related comments and story ideas to: editor@energypipeline.com For advertising inquiries, contact: bjacobson@energypipeline.com
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SUPPORT COMPANY PROFILE
Titan Energy Services, LLC. HOW LONG HAS YOUR BUSINESS BEEN OPERATION IN WELD COUNTY? 3 years.
CORPORATE HEADQUARTERS 1314 N. 7th Ave. Greeley, CO 970.356.1879
NUMBER OF EMPLOYEES 15
WEBSITE www.titanDJ.com
SERVICES OFFERED Containment and equipment rentals
WHY SHOULD CUSTOMERS DO BUSINESS WITH YOUR COMPANY? Titan Energy Services prides ourselves on providing superior customer service to our clients, by listening to their needs and finding solutions to those needs in a costeffective manner. We are an environmentally and safety conscious company that continues to look for ways to improve upon our practices to better fit our customer’s needs.
HOW LONG DO YOU ANTICIPATE BEING IN BUSINESS IN NORTHEAST COLORADO? We are positioning ourselves to be a premier leader in the oil and gas industry for many years to 8 ENERGY PIPELINE APRIL 2016
come. Our ownership team combined has over 35 years of experience. This has allowed us to build a strong foundation for our business and the opportunities for growth are ever present.
ability to be efficient and meet our customer needs in a struggling market.
IS YOUR COMPANY IN A GROWTH MODE?
We look for individuals who want to be a part of a team. We want forward thinkers with an ability to handle opportunities with a positive attitude while working long hours in sometimes extreme weather conditions.
With the owners knowledge of industry needs we have grown from four employees at the start of 2014 to the 15 employees we have today and will continue to look for ways to grow through products and services we offer.
HOW ARE YOU HANDLING THE DOWNTURN? We are dedicated to being a company that customers can turn to for solutions. We do so by maintaining relationships and standing behind our services. Our strong focus on our safety culture allows us to pride ourselves on our
WHAT KIND OF SKILLS, EXPERIENCE OR EDUCATION DO YOU LOOK FOR IN EMPLOYEES?
HOW CAN INTERESTED RESIDENTS APPLY? Potential employees can come by our office located at 1314 N. 7th Ave., in Greeley between the hours of 8 a.m. to 4 p.m. Monday through Friday and fill out an application. If you have questions or for more information please contact Chris Greer at (970) 515-2101.
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FIELD WORKER PROFILE
Matt Summitt FUZION FIELD SERVICES STAFF REPORT • FOR ENERGY PIPELINE
HOMETOWN Brighton, Colo.
WHERE DO YOU LIVE? Kersey, Colo.
HOW LONG HAVE YOU BEEN WORKING IN NORTHEASTERN COLORADO? Since January 2011.
HOW DID YOU GET INTO THE INDUSTRY? I moved to Greeley for my wife’s career.
WHAT IS YOUR JOB TITLE AND DUTIES?
WHAT IS THE BEST PART OF YOUR JOB?
Operations manager, to oversee day-today operations and assist with the safety department.
Being challenged every day.
WHAT IS THE MOST INTERESTING THING ABOUT YOUR JOB? Meeting different types of people and continuing to learn more everyday.
WHAT DO YOU DO IN YOUR SPARE TIME? VOLUNTEERISM, SCHOOL, SPORTS? I love fishing, golfing and spending time with my family.
WHAT ARE YOUR FUTURE AMBITIONS IN THE INDUSTRY? To continue climbing through upper management and to further my knowledge on the safety portion of the industry.
WHAT DOES THE WATTENBERG FIELD AND THE DJ BASIN MEAN TO YOU?
HOW DO YOU FEEL ABOUT THE CURRENT ENVIRONMENTAL DEBATE GOING ON WITH FRACKING IN COLORADO? I don’t think fracking is an issue, through all the EPA studies, they haven’t found any harm and it helps our economy.
A lot of good people, a great community that sticks together.
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GREELEY - 970 888 3390 APRIL 2016 ENERGY PIPELINE 11
EXECUTIVE PROFILE
SUNSHARE Senior Director of Project Development
Jon Sullivan BY LINDA KANE • FOR ENERGY PIPELINE
before settling into the corporate
world of solar energy, Jon Sullivan was a world traveler. It was sort of a fluke that he stumbled into a career in renewable energy. Sullivan, now the senior director of project development for Sunshare, clean energy company in Denver that builds and installs community solar gardens, was working random jobs to support his lifestyle of traveling. He had guided mountaineering and trekking trips in China and Tibet when he predicted solar energy to be the next big thing. “Back then I worked many random jobs to make money to support my travel lifestyle,”
ABOUT
Jon Sullivan CURRENT JOB TITLE Senior Director of Project Development.
Sullivan said. “I’d be installing panels on a roof and cars were pulling over to ask us questions; moms with strollers were yelling up to the roof to ask solar questions; people in the super market would stop me when I wore my solar company’s shirt, etc. “I could feel that there was a movement building, that an industry was about to explode. After several more weeks of these encounters I had the realization that this will be my career.” So, Sullivan climbed the ranks. In 2006, he worked part-time as a solar installer. Then he moved on to crew leader, project manager, sales consultant and now has combined all his experience as the director
CHILDREN We have a 3 year old boy named Zander and 1 year old girl named Terra.
WHERE DID YOU GROW UP? Born and raised in Colorado. I grew up in Castle Rock.
Management from CU Denver. Bachelors Degree in Business Management from CU Boulder.
WHAT DO YOU DO IN YOUR SPARE TIME?
of project development. He believes in the industry and thinks it especially viable during a time when the oil and gas industry is in a downturn. “Oil and gas is experiencing a long down-turn leading to layoffs, suspended operations, and overall lack of economic development,” he said. “Solar is bursting at the seams all over the country. “Solar development would be an excellent hedge to oil and gas development and keep Colorado’s diverse energy economy thriving. Removing red tape and simplifying permitting processes in Weld and other jurisdictions is the next evolution in making this possible.”
learning about recent American history while being amazed about the ups and downs of Jobs’ personality and leadership style.
SOMETHING ABOUT YOU FRIENDS AND CO-WORKERS DON’T KNOW.
Douglas County High School.
We try and get our kids on mini-adventures such as camping trips or simple outings to the stock show, zoo, or a museum. It’s all about the kids and solar right now.
SPOUSE
HIGHER EDUCATION/ COLLEGE/DEGREE
LAST GOOD BOOK YOU READ?
HOW LONG HAVE YOU BEEN WITH SUNSHARE?
My wife is a nurse at Denver Health Hospital.
Masters Degree in Global Energy
The Steve Jobs biography was fascinating. It’s
I’m entering my third year at SunShare. I am
AGE 35.
WHERE DO YOU LIVE? Highlands Ranch.
12 ENERGY PIPELINE APRIL 2016
WHERE DID YOU GO TO HIGH SCHOOL?
My childhood nickname was “Chuck Coyote.”
the eighth employee.
PROFESSIONAL BACKGROUND I have been in the solar industry now for 10 years. I have been on a logical progression from installer, to crew leader, to project manager, to sales consultant, and am now combining all of those experiences with my education to settle into my role leading project development. Before solar, I guided mountaineering and trekking trips in China and Tibet.
QA
Paul Taucher P.G. Owner/Principal Hydrogeologist
&
Energy Pipeline sat down with Sullivan to talk further: ENERGY PIPELINE: Talk about your early years professionally. What did you learn that has helped you with your own company? JON SULLIVAN: I try and be nice with every single person I interact with from co-workers to planners to landowners to contractors. The friendships and relationships I’ve formed through the years have helped me develop projects, build teams, and overall just draw interesting connections between the people I meet. Never burn bridges! EP: Talk about your role with the company? What is a typical day like? JS: People joke about the solar industry being the “solar coaster.” Well, I’m still on the solar coaster at SunShare. The industry, our niche, our company, my department is growing and evolving quickly. I actually think that the whole thing is an adrenaline rush. There are emails, phone calls, meetings, just like any business - but we are slowly shaping and pushing a paradigm shift which gives purpose to the day-to-day grind. EP: What is it about your job that gives you the most satisfaction? Is it resolving challenges? Solving problems? Working with outstanding employees? JS: There are many “wins” to look forward to: signing leases, obtaining a permit, obtaining financing, hiring a new employee, passing an inspection, etc. But all of these small wins add up to more solar being deployed which is a big win.
Secondary Containment Systems for the Oil & Gas Industry Containment Options powder-coat paint (BLM colors) or galvanized • wall height (12-68 in) • shape (round, oblong, rectangular, round-corner rectangular) • 12 or 10-ga steel • wall bracing (Z-post or ZGD) • many liner options • geotextile fabric options crossover steps • load-line containment
with Jon Sullivan
EP: Up to this point in your career, what has been the highlight for you and why?
Containment Services Include SPCC required & as-built capacity calculations (no charge) • Multiple options designed and provided to ensure appropriate containment (no charge) Options for liner penetrations and cleanout sumps • Options for unique containment requirements
JS: Every completed solar project big and small is a win. I love driving around town and seeing a project I might have done five to 10 years prior. I especially like seeing solar pop up in my own neighborhood even if I have nothing to do with it.
Other Services HydroGeology • Site Assessment • Uranium Geology • WDEQ Voluntary Remediation Program • Environmental Compliance Project Management • Remediation Permitting • Waste Management
EP: Talk about renewable energy? Why is it important? JS: This is too easy to answer. I could speak volumes on the issue but the importance is obvious I think. EP: Explain some of the benefits your company provides? JS: We are a fast-paced entrepreneurial environment. We shape our own day, our own week, our own fate -I like the freedom a small company provides - this is a benefit. EP: Why should customers look at SunShare? JS: Our product will lead to more money in the customer’s bank account at the end of the year. It will save money and promote cleaner electricity; it’s a no-brainer. EP: Why build a solar garden as opposed to installing solar panels on rooftops? JS: Both business models have merit. I love that both models exist. Solar gardens can produce more electricity with each solar panel. This is because we use technology that optimally faces the sun and actually tracks with the sun all day long. Rooftop can’t provide the same energy density as a ground mounted solar garden.
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970-352-6418 APRIL 2016 ENERGY PIPELINE
13
Jason Martinez works on a section of a blade at the Vestas Blades facility in Windsor. Vestas Wind Systems is coming off its best year yet according to earnings results released in February. Photo by Joshua Polson/jpolson@greeleytribune.com.
RIDING THE HOT WIND Vestas reports 2015 was best earnings year yet BY SHARON DUNN • SDUNN@ENERGYPIPELINE.COM vestas wind systems is coming off its best
year yet, and now that the global political discussion favors wind and other renewables for future power generation, company officials expect markets to stabilize. Vestas officials in February released the company’s 2015 full-year earnings results, revealing the company had garnered its highest ever net profit of 685 million euros, or the equivalent of $766 million. It also had its highest-ever order intake totaling, 8.9 gigawatts across 34 countries on five continents. “In 2015, we executed well on our profitable growth strategy, delivering strong financial and operational results across the board and across the globe,” CEO Anders Runevad said in a company statement. He said the year’s result “bodes well for continued high activity levels in 2016.” For Colorado, where Vestas has been on a hiring binge in the past year to meet increasing orders for turbine blades across North and Central America, that means continued production of wind turbines at the company’s U.S. manufacturing base 14 ENERGY PIPELINE APRIL 2016
IN THE U.S. MARKET ALONE, THE COMPANY ALMOST DOUBLED ITS DELIVERIES TO 2,999 MEGAWATTS FROM THE PREVIOUS YEAR in Windsor, Brighton and Pueblo. The Windsor and Brighton plants produce blades, a second Brighton plant produces nacelles (or the motors), and the Pueblo plant produces turbine towers. “Colorado is Vestas’ North American manufacturing base,” said Chris Brown, president of Vestas Americas in an email response to questions in recent months. “We also export production from Colorado to projects in Latin America and the Caribbean, for example. There’s no doubt Colorado will continue to be key to our
competitive success in this region.” Last year, the company reported, Vestas produced and shipped 3,330 wind turbines with a capacity of 7,948 megawatts of electricity, which was a 30 percent increase over 2014. In the U.S. market alone, the company almost doubled its deliveries to 2,999 megawatts from the previous year. Deliveries in the Americas increased 45 percent in that time, the report stated. Runevad told analysts in an earnings call Tuesday the outlook for 2016 would not be as stunning as last year’s growth. “Our view of overall market growth compared to last year, we see a stable market, but not the market that has the same kind of year on year growth that we saw during last year. But it’s stable,” Runevad said. The first quarter, especially, should slow down, as is the company’s pattern, he said. The company attributes its 2015 gains to policy developments such as the Wind Energy Production Tax Credit renewal in the United States, the COP21 Paris Accord, which is an international agreement among several nations to reduce carbon dioxide emissions,
and China and India targeting increased wind capacity in the future. “Overall, Vestas continues to generally see strong support for wind power across the regions,” the company’s year-end report states. “Incentive systems and schemes may vary across countries, but the overall picture is one of stability and a continued desire to use renewables and wind specifically, to secure a longterm sustainable energy supply.” Specifically, for the United States, which CEO Runevad said is arguably the company’s second largest market, the production tax credit renewal in December will help the company stay on stable ground, giving customers confidence in ordering wind turbines. The tax credit gives electricity generators a 23-cent-perkilowatt-hour credit on their generation for 10 years, which works to reduce overall costs of installation. The credit was renewed in December for two years, with three-year plan to phase-out of the credit. “I must emphasize I’m very positive and actually very pleased we got the five-year PTC extension,” Runevad told analysts regarding the tax credit renewal. “That should
VESTAS 2015 EARNINGS HIGHLIGHTS Source: Vestas 2015 year-end earnings report. • Highest ever net profit of 685 million euro, the equivalent of $776 million. • Produced and shipped 3,330 wind turbines worldwide, a 32 percent increase form 2014.
straighten out a lot of question marks we’ve always had around the U.S. market. That definitely makes our life a lot easier because we can now start to work with one scenario for the U.S. instead of two to three. “Vestas has invested in the U.S,” he said. “We have a good manufacturing capability in the U.S. If you look at the head count increase we’ve done in two years, a lot has gone into the U.S. market.” Company officials hope to grow the global business throughout 2016, obviously, but they will do so by outsourcing some operations to
• Received highest ever order intake of 8,943 megawatts of capacity, a 37 percent increase from 2014. • Ended year with 20,507 employees, a 16.5 percent increase from 2014.
reduce costs and increasing service work on exiting turbine facilities. The jump start on the service business came late last year, when Vestas acquired California-based UpWind Solutions Inc., and the Germany- based Availon Holding. Both are service companies that maintain wind turbines. “The benefits we see for Vestas is growing revenue and also capabilities on the technical side, on the commercial side. We see the service market growing. ... (It’s) also an attractive market to be in from a growth perspective.”
APRIL 2016 ENERGY PIPELINE 15
HERE TO STAY Noble plans to spend lion’s share of global capital budget in Weld County BY SHARON DUNN • SDUNN@ENERGYPIPELINE.COM like all other oil and gas exploration
and production companies these days, Noble Energy shut the door on 2015 with another loss. The company closed the final months of the year with a $2 billion loss and a 2016 spending plan cut in half. The good news is the lion’s share of the company’s global capital spending will come back to Colorado via Noble’s drilling program in the Denver-Julesburg Basin, primarily in the Wells Ranch northeast of Greeley and an area called East Pony in northeast Weld County. The company set its sights on spending $600 million in Weld while running two drilling rigs - that’s 40 percent of its global program of $1.5 billion. Noble, in fact, will spend more in Weld than all of its offshore and non-U.S. assets combined. Noble’s three other U.S. assets will share $400 million of the total pie. Noble is the second-largest producer in Weld behind Anadarko Petroleum, which in January reported a $1.25 billion loss in its fourth-quarter earnings. The company in March announced it also would reduce its capital spending program in half, and reduce its number of rigs down to one in the Denver-Julesburg Basin and four in the Delaware Basin in Texas. “Without question, we are achieving more while spending less,” Noble CEO and President David Stover told analysts in an earnings call in February. He and other executives pointed to the company’s continued success in Colorado, which in the past three months of the year hit a production record of 121,000 barrels of oil equivalent per day (that includes crude oil, natural gas and natural gas liquids such as ethane and butane). “From an efficiency and cost perspective, 16 ENERGY PIPELINE APRIL 2016
2016 U.S. CAPITAL PROGRAM DJ Basin (Colo.)
$600 MILLION
Eagle Ford (Texas)
$150 MILLION
Delaware (Texas)
$100 MILLION
Marcellus (Penn.)
$150 MILLION
Offshore/other assets $500 MILLION Source: Noble Energy.
the company is firing on all cylinders,” said Gary Willingham, executive vice president of operations for Noble in the earnings call. “Once again, the DJ was a big contributor to lower operating costs and productions outperformance. ... After drilling and completing horizontal wells in the DJ for more than five years, our team is still driving step changes in drilling results and well performance.” Noble reported it also reduced its drilling costs by 40 percent and lease operating expenses by 36 percent in Colorado. The company also sold off $200 million in assets in the Mediterranean, found an additional $200 million in a recent dividend adjustment and debt refinancing and shaved $95 million from its exploration costs by cutting its Nevada program. The company also laid off 400 employees in two rounds of layoffs last year, only 45 of which came out of the company’s Greeley headquarters. The company reported it also has reduced drilling costs on what are called long-lateral horizontal wells. A typical horizontal well is drilled vertically 6,000
to 7,000 feet in the formation, then horizontally throughout the formation. Lateral portions have been growing, and companies are drilling as long as 9,000 feet in the horizontal portion, which allows companies to produce more while having to drill from fewer well pads on the surface. Horizontal laterals started at 4,000 feet just a few years ago, and companies’ continued experimentation with drilling and completing, or producing, the wells have improved immensely. Efficiencies in drilling laterals in terms of amounts produced and reduced drilling times have driven costs down, and Noble reports it has its long-lateral costs down to $3 million per well - that’s down from $5 million to $7 million in drilling costs five years ago. The majority - 70 percent - of Noble’s 2016 program in the DJ will focus on 9,000-foot laterals in the Wells Ranch. The company plans to drill 150 wells this year and see reduced production. “While these lower activity levels suggest that DJ production will be down somewhat from last year, I’m optimistic that these new completion designs can help offset some of the potential declines,” Willingham said. Stover said any further cutting likely will be in its overseas assets, where the company has more flexibility with assets in the Mediterranean. “The good part about our lower-48 portfolio, it’s essentially been cleaned up and cored up to what we’re focusing on is high quality with tremendous upside value opportunities,” Stover said. “So any trimming in the lower-48 portfolio would be around the edges on that, so there’s no dependency here, if you look at things going forward on any big trimming on our lower-48 portfolio.”
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Solar capacity is about to get more prevalent in Colorado. About 80 percent of energy consumers are unable to utilize rooftop solar. That’s where community solar gardens fit in. Photo by Joshua Polson/jpolson@greeleytribune.com.
GARDENING THE SUN Solar company officials hope to break new ground in Weld BY LINDA KANE • FOR ENERGY PIPELINE renewable energy is at the forefront
of many industrial minds not only to provide sustainable energy, but also to meet increasing energy demands and to help protect the environment. SunShare is a fairly new company looking at doing just that. Founded in 2011 in Colorado Springs, the solar panel company is now based in Denver and has several projects underway in Weld County. “SunShare specializes in providing community solar solutions, also known as solar gardens. We are pioneers in this niche of the solar industry,” said Jon Sullivan, senior director of project development for SunShare. “When we develop a solar garden project in a particular location we provide the businesses, schools and resident with the ability to save money while promoting clean energy.” Weld County is in the closing stages with SunShare in acquiring land sites for solar gardens. “At this stage we would normally be already permitting these sites to move toward construction,” Sullivan said. “Unfortunately, 18 ENERGY PIPELINE APRIL 2016
WELD COUNTY IS IN THE CLOSING STAGES WITH SUNSHARE IN ACQUIRING LAND SITES FOR SOLAR GARDENS in Weld County we have been held up by a proposed ordinance amendment. Once the criteria of this ordinance amendment has been finalized, SunShare hopes to immediately submit permit packages on several sites.” If all goes well, SunShare will build gardens by late summer. The previous process to develop and permit a solar project in Weld County was to go through a multi-month Use by Special Review permitting process, Sullivan said. This process involves public hearings and several
design and narrative iterations before a project is either approved or disapproved by the county commissioners. The first version of the proposed ordinance amendment would not allow solar on agricultural zoned parcels - a majority of Weld County is zoned ag - this would in effect stop solar development in its tracks in Weld County, Sullivan said. However, the solar industry and Weld planning staff and commissioners have been fine-tuning the language. “As it stands now it looks like smaller solar systems would be allowed on ag zoned parcels but would still need to go through the multi-month USR process,” Sullivan said. “Larger solar systems would be confined to commercial and industrial zoned parcels- which will lead to no large solar systems being developed.” SunShare and the county are several months into this discussion. “All the solar industry is really arguing for is to return to the original USR process that existed in 2015,” Sullivan said. “Even better would be to have solar treated similarly to oil and gas making it a use by
right. If solar received the same treatment as oil and gas we could build our projects in ag, commercial, or industrial zoning and we could have a less arduous permitting process,” he said. The county commissioners recently opted to go back to the drawing board on the solar ordinance, which could mean further delays. While oil and gas is experiencing a downturn, solar is “bursting at the seams.” “Oil and gas is experiencing a long down turn leading to layoffs, suspended operations, and overall lack of economic development. Solar is bursting at the seams all over the country,” Sullivan said. “Solar development would be an excellent hedge to oil and gas development and keep Colorado’s diverse energy economy thriving. Removing red tape and simplifying permitting processes in Weld and other jurisdictions is the next evolution in making this possible. “I believe the future of solar in Weld County looks promising,” Sullivan said. “We just need to set up the regulatory infrastructure for solar to thrive.” A global challenge facing the solar industry this year is a shortage in solar wafers - the materials used to make actual solar panels. “Due to rapid growth in solar installations in 2015, and forecasts for another record year for installations in 2016, IHS has flagged a potential solar wafer supply shortage throughout the entire supply chain,” IHS Technologies stated. IHS is a global information company with experts in areas shaping today’s business landscape: energy, economics, geopolitical risk, sustainability and supply chain management. “This concern comes despite recent announcements of large capacity expansions in diverse geographical locations from leading solar module suppliers,” IHS said.
SUNSHARE IS NOW SERVICING XCEL ENERGY AND COLORADO SPRINGS UTILITY CUSTOMERS IN SEVERAL COUNTIES IHS predicts global installations are forecast to increase by 33 percent this year. The increase in demand first affected module manufacturers, but it has progressively trickled upstream to cells and wafer producers. The shortage is a non-issue for SunShare, Sullivan said. “We choose equipment based on quality, availability, value, and financeability. Equipment comes from the USA and China. Steel, racking, and miscellaneous electric equipment can be sourced domestically. Modules and inverters typically come from Asia. Our finance partners and our engineers thoroughly vet all of our equipment decisions to ensure our systems will operate for 20 years and beyond,” he said. SunShare is not worried about the solar wafer shortage. “Several of us have been in the industry for a long time and we’ve seen how the solar industry quickly solves larger economic conditions and continues forward,” Sullivan said. “Our industry is too nimble and will find a way to thrive no matter what.” SunShare Community Solar provides an easier, more affordable way to enjoy clean, renewable energy, he said.
Instead of putting panels on a roof, thousands of panels are used to build large community solar gardens. Clients subscribe to a portion of the energy produced in the community solar garden. According to the National Renewable Energy Laboratory, about 80 percent of energy consumers are unable to utilize rooftop solar because they have old roofs, shaded roofs, insufficient roof space or because they do not own their homes. With community solar, everyone has the power to choose solar energy as their energy source, SunShare stated. Historically, electricity rates from fossil fuels have risen in an unpredictable and sometimes volatile manner. Choosing a community solar garden provides a long-term rate for the solar energy that allows the client to stabilize his electricity rate for years to come, SunShare said. SunShare is now servicing Xcel Energy and Colorado Springs Utility customers in severals counties. The company has grown to about 50 employees who develop and manage solar gardens across Colorado and Minnesota. “We are also looking to expand to several more states in the 2016-17 timeframe,” Sullivan said. Last year, SunShare built solar gardens in the following counties: El Paso; Adams; Arapahoe; Denver and Jefferson. “These were very successful and now we want to expand our solar garden business model to new markets,” Sullivan said. “This year we look to continue developing new gardens in the Denver Metro area, Weld County, several mountain counties and the Western Slope. We believe there is a lot of pent-up demand in Weld County and we will be able to develop and sell out multiple solar gardens.”
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TECH TALK
THE POWER ON THE ROAD BY GARY BEERS • FOR ENERGY PIPELINE
the joy of a lengthy road trip in your electric
car is likely dampened by the nagging need to make a “recharge” stop every hundred miles or so. But what if you could drive hundreds of highway miles without stopping to recharge your electric car? Soon, that nonstop trip may be possible due to technology that supports electric recharging lanes for electric cars (Figure 1). When the electric car runs low on power, the driver moves into the recharging lane and, when full power is restored, it moves back into the regular highway lane. Before leaving the highway, this process is repeated to ensure the car is fully-powered for traveling on a street network to reach a destination - or a fixed power station to recharge before reaching the destination.
E-WAY PROJECTS IN ASIA, EUROPE, AND UNITED STATES The term “e-ways” was coined by a magazine writer for roadways with dedicated re-charging lanes (Ditch the cord, let the road charge your EV. Keith Barry, WIRED, 2010). There are several pilot applications of E-way projects involving limited routes for buses or trams in various countries (South Korea, Germany, Italy, Netherlands, United States and England). Operating e-ways are in service in several locations in the United States. In 2015, a multi-million federal/state funded, four-year project resulted in the completion of a Salinas-Monterey trolley in California. In Utah, all-electric shuttle buses are in 20 ENERGY PIPELINE APRIL 2016
use at universities and hospitals with plans underway for other mass transit applications. Several European countries and companies are investing millions to advance this technology and conduct extensive off-road trails of electric recharging lanes. England is completing a feasibility study to investigate possible options and will followup with an off-road and highway trails. Their study includes assessment of reduction in environmental impacts and of financial charging mechanisms for energy received by users of the e-ways. England has committed to spending $710 million in the next five years to advance this technology. A German company (Ingenieurgesellschaft Auto und Verkehr, IAV) is the leader in conducting substantial field-based research on embedding the technology in roadways and is constructing a full-scale charging road.
CONTINUOUS INDUCTION CHARGING The technology involves inductive loops buried in the roadway that generate a magnetic field to wirelessly supply electric cars with energy. This contactless transfer of energy, which is about 90 percent efficient, is enabled by taking advantage of the Maxwell electromagnetic laws, whereby an electric current flowing through a conductor (i.e., charge plates in the road) generates a magnetic field. In the case of alternating current, this induces a voltage in a second generator (in the electric vehicle), even though the two generators are not in contact with one another. Using precisely controlled frequencies of the applied alternating current, high-efficiency energy transmission from the sending to the receiving
For over 50 years, GARY BEERS, has worked in numerous fields of environmental science as a consultant, regulator and educator. This career included senior management position with major consulting, nonprofit and public organizations. He has founded several successful firms to capture emerging resource management markets. One of his latest ventures, EnviroScienceINFO, provides content for public media.
FIGURE 1
Electric Re-charging Lane. Illustration for Energy Pipeline.
electrical circuits is ensured (Drawing Power from the Road, Darren Quick, GIZMAG, 2009). The benefits of this wireless system of energy supply include being insensitive to weather, free of mechanical wear, and reduction in the size of batteries in the electric cars (Drawing Power from the Road, Darren Quick, GIZMAG, 2009). On a smaller scale, this electromagnetic induction technology has been used for decades in automobile plants and large warehouse facilities where robotic floor conveyor vehicles are supplied with power and automatically steered using this technology. In fact, electric phones and toothbrushes are wirelessly recharged using this technology.
IS CONCEPT TOO EXPENSIVE FOR HIGHWAYS? Technological advances in electric vehicles and in highway construction are necessary before electric re-charging lanes are a reality. Electric cars are now being upgraded. In the next few years, Toyota will offer cars that are capable of wireless charging and “within a decade, wireless charging could be the leading way of charging EVs.” (Navigant Research). Wireless charging stations, based on this technology, are available for owners of electric cars and buses, where the
FIGURE 2
“Green Dream” - Use of Renewable Energy to Power Recharging Lanes. Illustration for Energy Pipeline.
vehicle is parked over a charging plate, rather than being plugged into a power supply. However, the development and field testing of electric recharging lanes in highways is just starting and initial implementation will take decades. Certainly, an investment of billions of dollars will be necessary to install new electric re-charging lanes or to modify existing lanes. However, the subsequent operations/maintenance and environmental costs would be significantly reduced if these unique lanes received their power from renewable energy sources (Figure 2), rather than from generators using fossil fuels.
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APRIL 2016 ENERGY PIPELINE 21
BY DAN LARSON • FOR ENERGY PIPELINE
22 ENERGY PIPELINE APRIL 2016
ONE YEAR ON AND THE GREAT DEFLATION NOW TOUCHES NEARLY ALL OF THE UPSTREAM OIL AND NATURAL GAS INDUSTRY As activity slowed and companies made cuts, tens of thousands of lost jobs took with them promises of rewarding careers and aspirations of personal success. The rigors of a vastly changed energy landscape forced companies to raise lowering costs to the highest priority and workers at all stages of their careers to rethink choices and goals. For an industry that produces optimism by the barrel, both companies and workers find themselves hunkered down and doing what has to be done to get by until things turn around. The latest estimates show some 122,300 U.S. energy sector jobs lost since prices fell by more than two-thirds in the past year. Not surprisingly, the average salary paid oil and gas workers also has taken a hit. Year-end reports by the federal government show average industry wages at $26.72 an hour, down 1.5 percent from a year earlier.
BAD NEWS BEARERS The oil price crash has driven the loss of 275,000 jobs worldwide, according to one industry analyst. Since late 2014, companies have cut spending by more than $100 billion, a tsunami felt broadly across the oil field services and supply sector, according to Graves & Co., an energy transaction firm based in Houston. Nearly four of five jobs lost so far have been in oil field services, the firm said. With a further drop in crude oil prices in January, sentiment among the financial punditry favors 2017 as the earliest a meaningful recovery could get underway. In the meantime, the current price downturn is seen as going deeper than the 1986 price collapse. There are, however, big differences this time around, say industry executives and market analysts. Companies are using the slowdown to add depth to their knowledge base with modern data analytics that help pinpoint where the resource is and how to recover more of it. The days of kicked rocks, crossed fingers and dry holes are gone. There also is another important difference in the current stage of the commodity price cycle. Many oil companies and oilfield servicers recognize it would be a disaster to repeat the moratorium on hiring young engineers and scientists that occurred following the mid1980s price collapse. The sharpest companies remain interested in finding and developing talented, determined students and recent graduates. “Twenty-five years ago, the majors stopped hiring at the university level for eight years,” commented Steve Morse of Russell Reynolds Associates, an executive search firm. “They saw the long-term damage it did to their workforce. Two decades later they woke to the realization that their best executives were
all approaching retirement age, with too few mid-career execs being groomed to replace them.” At the other end of the demographic spectrum, Morse advised that with oil and gas activity focused on shale plays, older workers can still find job openings in mature, conventional fields. A recent influx of private equity capital in conventional plays has created opportunities for experienced engineering and managerial talent, he said. Locally, the slowdown in the oil and gas sector has not slowed activity in other industries, according to Doug Thorner, managing director at Sound Advice Consulting Services in Denver. “The reality is that the oil and gas industry is going slowly right now and will not pick up again for awhile,” Thorner said. “On the other hand, the rest of economy along the Front Range is doing better than OK.” With two decades experience in recruitment and placement, Thorner says he has seen how the cycle of economic activity turns from one industry to another. “Four years ago, the phone was ringing off the hook with people looking to move from other industries into oil and gas. Now, companies in aerospace, technology and construction are looking for talented engineers, for finance and accounting professionals, and sales people from oil and gas.” Here again, age and experience can work against many professionals looking for their next opportunity. “Companies looking to fill positions will look at younger candidates first,” commented Thorner. “The person with 20 years in one industry is often perceived as too expensive and set in their ways.” Thorner also worries that the industry will again experience a knowledge gap when activity ramps up with higher prices. “The small to mid-size independents are the ones that do most of the hiring when the industry is expanding,” he said. “But it’s the majors and big service companies that do the most valuable training and their programs are under pressure like everything else.”
FLEXIBLE AND MOBILE In addition to sniffing out openings in hidden corners of the industry, older oil and gas pros are advised to look for ways to align their skills with the needs of other industries. “The best advice for anyone looking beyond their industry is to be flexible and mobile,” said Thorner. “There might be a civil engineering job they are qualified for in another part of the country. Oil and gas people are used to relocating, much more than those in other industries.” Similar advice is offered to younger workers but with more emphasis on being flexible. At the student level, aspirations of a career in petroleum engineering might give way to other disciplines in response to the lack of openings. Recognizing how skills transfer is the key, say college advisers. For younger workers, over the coming decade the oil and gas industry will see dramatic changes and unprecedented opportunities. Addressing early-career engineers, the leader of the industry’s professional engineering organization said that in light of current conditions, “most of you will keep your jobs; however, your jobs will most surely change.” “As the most senior professionals reach retirement age in the next five to 10 years, you will have opportunities for increased levels of responsibility that no previous generation of engineers and earth science professionals has ever enjoyed,” said Nathan Meehan, president of the Society of Petroleum Engineers. The demand for workers trained in science, technology, engineering and math (STEM), even those without a higher education degree, is predicted to grow. International oil major BP predicts that by 2018, more than 8 million STEM-related jobs will be available in the US with an average salary exceeding $90,000 annually. And while proficiency in one of the STEM disciplines is often seen as requiring a bachelor’s degree or higher, many jobs that require STEM skills do not. According to research by the Brookings Institute, an economic policy think tank in Washington D.C., half of all STEM jobs in the US are held by workers who do not hold a STEM bachelors degree. Those jobs also pay a
AS THE MOST SENIOR PROFESSIONALS REACH RETIREMENT AGE IN THE NEXT FIVE TO 10 YEARS, YOU WILL HAVE OPPORTUNITIES FOR INCREASED LEVELS OF RESPONSIBILITY THAT NO PREVIOUS GENERATION OF ENGINEERS AND EARTH SCIENCE PROFESSIONALS HAS EVER ENJOYED.” NATHAN MEEHAN, president, Society of Petroleum Engineers
higher average salary than jobs in other fields that similarly do not require a college degree. Education, whether it is through high school, vocational or college, is only part of the story of how the oil & gas industry and others are being changed by the makeup of its workforce. Industry slowdown or not, every flip of a calendar page brings older workers closer to retirement. The Pew Research Center estimates that 10,000 Baby Boomers reach retirement age every day. As they leave the workplace, they are replaced by workers younger than ever.
A NEW MILLENNIAL Like the back of a camel, a chart of US population shows the two largest demographic groups are Millennials on one side and Baby Boomers on the other with Generation X stuck in the middle. There are 83 million Americans born between 1980 and 2001, the Millennials, and 76 million born between 1946 and 1964, the Baby Boomers. Generation X, those born between 1965 and 1979, number 65 million and are expected to surpass Boomers in numbers by 2028. At the end of 2015, the US Census Bureau said the total population of the U.S. was 323 million. Until the Millennials came along, Baby Boomers were considered the most studied generation in American history. Now,
marketers and academics argue over whether Millennials are similar to the mid-century Greatest Generation or unique and defy characterization. Most often, members of this generation are considered to be tech savvy and entrepreneurial, and considerably more diverse and optimistic than either preceding generation. As workers, they are also described as overindulged with an abrupt style of communication and a sense of confidence bordering on entitlement that can confound older managers. Younger workers are also described as seeking meaning in their work that surpasses higher pay or a career path. Studies report that most Millennial workers consider productivity and not time spent as the best measure of success. From the other perspective, Boomers in the workplace are seen as expensive, resistant to learning new skills and to change in general, and seemingly always two versions behind on technology. While it is understood that either generation has different styles of communication, the importance of continuous and open communication is seen as a key in getting the two to form productive work relationships. “Two-way teaching and learning is expected,” notes Nathaniel Koloc, co-founder of ReWork, a recruiting firm with offices in Denver and Boulder. “When uncertainty is high and team members are unsure of the right course, Boomers provide context based on their experience while Millennials bring conceptual models, software and web tools. Together, they can make great teams.”
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LAW LAND OF THE
Greeley City Council approves controversial 22-well site BY SHARON DUNN • SDUNN@ENERGYPIPELINE.COM
26 ENERGY PIPELINE APRIL 2016
After six hours of testimony that ended after midnight on March 8, the Greeley City Council overturned its planning commission, allowing a 22-well oil and gas facility in west Greeley - a move that aligned with the city’s own development code rather than public sentiment. Hundreds of people turned out for the hearing, an appeal by Denver-based Extraction Oil and Gas, of the Greeley Planning Commission’s January decision to deny its project, 6-0. The meeting filled the hearing room at the Greeley-Evans School District 6 administration building in Greeley, as well as its lobby, where almost 300 chairs were brought in to accommodate the crowds, filled with neighbors against the project and hundreds of oil and gas workers wearing stickers that read, “Oil and gas feeds my family and yours!” But hours of often emotional testimony couldn’t negate one fact: this was a property rights issue, and state law prevents local governing bodies from denying mineral owners access to those rights. The council voted 5-2 to overturn the project, with Sandi Elder and Rochelle Galindo dissenting. By 12:30 a.m., the council members had made up their minds. They all stated their positions and had no discussion. “I don’t happen to believe this facility is suitable for the area,” said Councilman Randy Sleight, who said he is a supporter and works in the industry. “It is too intense, too large, there’s too much going on. That’s the emotional side. “On a practical and legal side, the applicant has, in fact, followed everything they’ve been asked to do.”
Extraction officials plan to build a 22-well faOPPOSITE PAGE Crowds fill the Greeleycility, which will include storage tanks and assoEvans’ District 6 ciated equipment west of 71st Avenue and north Administration Building of 18th Street on an empty lot surrounded on on March 8 during the the north, east and south sides by neighborTriple Creek hearing in hoods. The plan is to put the facility on a 14downtown Greeley. Photo by Joshua Polson/jpolson@ acre piece of a 69-acre property, which also is greeleytribune.com. surrounded on all sides by about nine existing well sites. TOP When it came to the planning commisGhislaine Torres Bruner, sion’s decision, Councilman John Gates statan attorney at Steptoe and Johnson in Denver, ed simply, “They got this one wrong.” He said and Blane Thingelstad he, too, didn’t like the intensity, or size, of the of Extraction Oil and project, and it was one issue that had kept Gas, address members of him up at night. the Greeley City Council Added Robb Casseday: “I think we are bound March 8 in Greeley. Photo by Eliott Foust/efoust@ to uphold the law we put into effect.” greeleytribune.com. Extraction President Matt Owens said he was pleased with the vote, and he promised to build MIDDLE a first-class facility while working to mitigate resKeith Taylor with K&K idents’ concerns. Welding, came to the Greeley City Council “I think it goes to show you the strides Exmeeting March 8 in support traction has made to make this a flagship site of the oil and gas industry. for Weld County,” Owens said. Photo by Sharon Dunn/ There still are some issues that he’ll have sdunn@energypipeline.com. to deal with, however. First, the company will BOTTOM only be able to drill and operate at the facility Kent Wolf leans against a seven months out of the year; the remaining pillar as he watches the five will be in the nesting season for the redpresentation for the Triple tailed hawk. Extraction officials estimated that Creek hearing on March delay could still allow them to drill their wells 8 at the Greeley-Evans’ District 6 Administration within two years. Building in downtown He also still must get the individual wells at Greeley. Photo by the site permitted through the Colorado Oil Joshua Polson/jpolson@ and Gas Conservation Commission, and comgreeleytribune.com. pany officials will still have to work with Greeley on dealing with planned road and bridge construction along 71st Avenue, which is scheduled from 2017-19. “We can only operate seven months out of the year, so maybe in a perfect world, we could coordinate with the city,” Owens said. “In the five months that we aren’t doing anything, they could work on the roads, but we’ll have to follow their rules.” Extraction has promised to drill with electric drilling rigs and compressors, use special devices to lock in emissions during transfers of oil form tank to truck, use low-noise diesel engines, construction 12.5-foot-tall tanks instead of 20-foot tanks, store no waste on site, have frequent trips to monitor the site and have multiple legal access points. Those will be conditions they must follow per the council’s approval. While many agreed they’d never seen a hearing with such intense interest before the council, the Triple Creek site is hardly the biggest site in urban areas in Greeley, though it is the first such site that has been denied by the Greeley Planning Commission - unanimously. The commission voted in January to deny the company’s plans after several hours of resident testimony against it. The planning commission members cited their concerns with methane emissions, traffic and the intensity of the project being too great for the area. “This location is inappropriate for the application being presented,” said
LEFT: Michael Rucker watches closely during the Triple Creek hearing. Photo by Joshua Polson/jpolson@greeleytribune.com. MIDDLE: Don Richards stands among the crowds that came to the Triple Creek hearing. Photo by Joshua Polson/jpolson@greeleytribune.com. RIGHT: Greeley Mayor Tom Norton holds up a packet of more than 1,000 pages of letters for and against the Triple Creek project. In a 5-2 vote, the council overturned the Greeley Planning Commission’s decision to deny the project. Photo by Eliott Foust/efoust@greeleytribune.com.
planning commission member Eddie Mirick in denying the project at the planning commission. “It would be very detrimental to the community in and around the area, who have lived there a long time, enjoy their homes and environment, and contribute greatly to the city and have for years in many ways.” Extraction officials told the city council the site was their only option left to extract the minerals, owned by 1,800 mineral rights owners eager to exercise their property rights. Several sites had been considered, but none matched up to the Triple Creek site, which was suggested by the Colorado Oil and Gas Conservation Commission as a compromise to other sites. The mineral resource the company is trying to get to is directly beneath the center of the city. The company had planned to drill those resources from 2.5 miles away, which would be the longest horizontal drilling yet attempted in Colorado. “The COGCC, based on public feedback and comment, thought Triple Creek would be a better site and have less of an impact on the public,” said Ghislaine Torres Bruner, an attorney with Steptoe and Johnson in Denver, representing Extraction. “It allows Extraction to further minimize the amount of surface land to be disturbed. Triple Creek has existing oil and gas operations and is less densely populated.” Last year, Extraction officials, in a better pricing environment, had promised to install tankless facilities, essentially using a pipeline to move crude and gas directly from well heads to processing. But with the recent downturn, such a prospect is too expensive, they’ve said. Residents took that as reneging on a promise or a bait-and-switch technique. More than 50 people signed up to sway the council to their points of view, some going beyond their allowed time limits, prompting Mayor Tom Norton in instance to shout, “Stop!” after several attempts to get the speaker to wrap up her comments. The mineral rights were a big concern for many before the city council, especially given a Colorado Supreme Court case the city lost in 1992, essentially prohibiting a ban of drilling, which would halt residents’ rights to their mineral rights. “You’ve set up the rules,” said Scott Renfroe, a former state Senator from Greeley. “When you look at how this project exceeds every regulation you have, and it meets every regulation the state has, how can you oppose it?” Residents, all whose homes would be at least 1,000 feet away from the wells - double the state’s requirements - came out in force to oppose the 28 ENERGY PIPELINE APRIL 2016
project, citing concerns about health, home values and traffic issues associated with such an industrial process in this setting that could be the next backdrop of the Sheep Draw trail extension west of 71st Avenue. Resident Anne Curry Sanchez told the council she couldn’t understand why the planning commission’s decision couldn’t stick. “They did that for a reason,” Curry Sanchez said. “ ... That area is zoned low-density residential. What about low-density residential does anyone not understand?” “Their right to drill should not impinge on our right to enjoy our property,” resident Margie Lewis told the council, also citing a recent study that showed that drilling operations reduced property values by 1 percent per well. The problem, however, is that mineral rights are a property right guaranteed by the state Constitution. Mineral owners are allowed to access their minerals and other uses cannot bar that access. Some, however, pointed out that while inconvenient, actual drilling and construction of sites was temporary, followed by years of production on wells that are essentially a non-issue. Greeley is the site of more than 450 oil and gas wells, in and out of urban areas. Much of the wells at one time were rural, but housing and other developments have encroached, requiring a mix of uses. A large concern was the traffic impact on the area. The city has planned to replace the Sheep Draw bridge next year, and rebuild 71st Avenue to 20th Street in 2018-19. Both councilwomen Galindo and Elder, who voted against overturning the planning commission, stated that the commission was there for a reason, and its members did their homework. “I find it really hard to support this particular development, mostly because it does have a huge impact on traffic flow in that area.” Gallindo said. “Also the raptor breeding season will definitely prolong the project for several months.” Extraction will have to pay new development fees on the wells, which equates to $1,999 per well ($43,978 at full build-out), which goes to help offset expenses of additional development on the transportation and public safety systems in town. Some residents have stated they will appeal the ruling to the courts and seek recalls of Greeley’s elected officials, but nothing had been filed as of this printing.
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APRIL 2016 ENERGY PIPELINE 29
MAKING HOLE A look back at the origins of oil and gas BY BRUCE WELLS • AMERICAN OIL & GAS HISTORICAL SOCIETY
Japanese sub attacks oilfield just three months after Pearl Harbor, an Imperial
Japanese submarine shelled a California refinery and oilfield near Los Angeles. The shelling caused little damage - but it led to the largest mass sighting of UFOs in American history. At sunset on Feb. 23, 1942, Commander Kozo Nishino of the Imperial Japanese Navy and his I-17 submarine lurked 1,000 yards off the California coast. It was less than three months since the attack on Pearl Harbor. Los Angeles residents were tense. Soon after dark, the I-17 surfaced and its deck gun began firing armor-piercing shells at the Bankline Oil Company refinery in Ellwood, a small oilfield community 12 miles north of Santa Barbara. It was the first attack of the war on the continental United States. The Ellwood oilfield, about 5 miles long and up to a mile wide, had been discovered in 1928. Commander Nishino targeted petroleum storage tanks, piers and other facilities he had toured before the start of World War II. Several shells struck while others passed over Wheeler’s Inn, whose owner reported the attack. “We heard a whistling noise and a thump as a projectile hit near the house,” recalled one witness. “I thought something was going wrong with the refiners.” The shelling continued for 20 minutes before I-17 escaped into the darkness. It was the first Axis attack on the continental United States of the war. Commander Nishino’s I-17 left for Alaskan waters after firing about two dozen rounds. “Shell California! Enemy U-boat sends many shots into oilfields near Santa Barbara, entire area is blacked out,” declared the next day’s front page of the Chicago Tribune. Although there were no injuries and minimal damage (a wrecked derrick and pump house), the barrage led to a public panic that soon intensified. Witnesses claimed seeing offshore enemy “signal lights” as newspapers proclaimed the attack as the “Bombardment of Ellwood.” The Japanese shelling not only fueled West Coast invasion fears, but it led to what remains the largest mass UFO sightings in U.S. history. 30 ENERGY PIPELINE APRIL 2016
ALIENS ATTACK As the “Bombardment of Ellwood” ended, the self-inflicted bombardment of the “Battle of Los Angeles” began. On Feb. 25, thousands of war-jittery California residents were awakened at 3 a.m. by sirens and antiaircraft fire. “Scores of searchlights built a wigwam of light beaming over Los Angeles,” noted the Los Angeles Times as the Army’s 37th Anti-Aircraft Brigade fired 1,340 rounds at “unidentified airplanes.” Expecting the worst after the oil refinery attack, L.A. residents watched a nighttime sky illuminated with searchlights. Soon there were sightings of “unidentified flying objects.” Anti-aircraft fire fell within the city, damaging homes and cars and fraying nerves. Many imagined enemy aircraft while others feared extraterrestrial attackers. Fast moving “red or silver objects” were seen accompanied by “a large object that hung motionless.” Historians later offered explanations of the “Battle of Los Angeles” - noting it was the largest mass sighting of “UFO events” in American history. Rumors of a government cover-up began. Long after the war, Parade magazine speculated that I-17 Commander Nishino targeted the Bankline Oil Company refinery because of a prewar affront. According to a 1982 Parade article, while serving on an oil tanker docked near the refinery and being given a courtesy tour of the facilities, the Japanese officer slipped and fell. He apparently tumbled into a cactus prompting laughter from his hosts. Parade concluded Japanese commander got his revenge by shelling the same refinery.”
Discovered in 1928 by Barnsdall-Rio Grande Company, Ellwood oilfield extended beyond the shore of Ellwood Beach. Photo courtesy Goleta Valley Historical Society.
BRUCE WELLS, is the founder of American Oil and Gas Historical Society, a 501c3 nonprofit organization dedicated to preserving the history of oil and gas. He is a former energy reporter and editor who lives in Washington, D.C.
DATA CENTER
The oil and gas industry is a large part of Colorado’s economy. Below, find statistics on energy pricing, drilling production, well permits, spills and rigs.
2016 DRILLING PERMITS COUNTY
RIG COUNT BY STATE State Colorado Louisiana Oklahoma North Dakota Texas California Alaska Ohio Pennsylvania Wyoming
Mar 11 17 49 67 32 215 7 12 11 19 9
Feb. Avg. 20 46 80 38 244 7 13 13 17 11
Jan. Avg. 22 59 83 49 308 7 9 14 25 16
NO. (% OF STATE TOTAL)
Weld................................................................................................224 (62%) Garfield...............................53 (15%)
Dec. Avg. 25 59 86 58 324 9 12 15 28 20
La Plata..........27 (7.5%) Adams...19 (5.3%) Jackson...16 (4.4%) State................126 Source: Colorado Oil and Gas Conservation Commission as of Mar. 1
PRODUCTION COUNTY *YTD
Source: Baker Hughes Rig Count.
2016 GAS PRODUCTION
COUNTY *YTD PRODUCTION (% OF STATE) Weld......................................556,997,996 (33.15%) Garfield...................................551,107,803 (32.8%) La Plata ..................................317,654,661 (18.9%) Las Animas ................................ 77,481,276 (4.6%) Rio Blanco ................................56,336,843 (3.35%) Mesa ........................................... 32,071,261 (1.9%) State...................................................1,680,161,103
2016 OIL
US RIG COUNT
The U.S. rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999. Area Mar. 11 Feb. Avg. Jan. Avg. Dec. Avg. U.S. 489 532 681 714 Canada 114 211 125 160 Source: Baker Hughes Rig Count, Mar. 11.
PRODUCTION (% OF STATE)
Weld 110,084,656 (89.3%) Rio Blanco 4,401,603 (3.57%) Garfield 1,733,304 (1.4%) Arapahoe 1,645,022 (1.33%) Lincoln 1,194,372 (0.96%) Cheyenne 1,175,208 (0.9%) State 123,220,062 Source: Colorado Oil and Gas Conservation Commission as of Mar. 10.
Source: Colorado Oil and Gas Conservation Commission as of Mar. 10.
COLORADO ACTIVE WELL COUNT
Weld ..........................................................................22,707 Garfield .....................................................................11,062 Yuma ...........................................................................3,881 LaPlata........................................................................3,322
Las Animas .................................................................2,962 Rio Blanco ...................................................................2,902 State .........................................................................53,697 APRIL 2016 ENERGY PIPELINE 31
Source: Colorado Oil and Gas Conservation Commission as of Mar. 1.
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