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10286488
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Table of Contents 4
CASHING IN ON SAND DOLLARS
Andrew S. Dix
7
THE BIG PICTURE: POSITIVE IMPACT OF MARCELLUS
EXECUTIVE EDITOR
8
SEVERANCE TAX: THREAT TO DRILLING?
PUBLISHER
Ray Booth
10
VIDEO SECURITY GOES HIGH-TECH
12
OBAMA FLOATS PLAN FOR ATLANTIC DRILLING
14
ARCTIC FROZEN TERRITORY FOR U.S. ENERGY EXPLORATION
Rhonda Geer
16
STILL BULLISH ON NATURAL GAS
Christy Penland
17
EXPRESS ENERGY SERVICES NAMES REESE AS CHAIRMAN
18
MARCELLUS - UTICA MIDSTREAM CONFERENCE & EXHIBITION
19
WEBSITE PROVIDES LANDOWNERS WITH TOOL TO ESTIMATE ROYALTIES
CONTRIBUTING EDITOR
ADVERTISING
Ed Archibald
DIGITAL CONTENT MNGR Brad Tansey
ART DIRECTOR Pete Kiko
LAYOUT DESIGNER Elizabeth Horne
“Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio & PA. Copyright 2015.
Judie Perkowski Dix Communications
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EWCOMERSTOWN, OH — George Darr, owner/operator of Darr Farms, a 1,500-acre family-owned homestead since the mid-1950s, has learned through the years that you cannot put all of your eggs in one basket. Although the farm’s staples are typical agriculture: grain, vegetables, soybeans, wheat, straw, melons, and, according to Roy Patterson, the farm’s manager, “the best pumpkins in the Midwest.” They also sell Pioneer Seed and sand. The farm employs 15 full-time workers, including Patterson, who has worked on the farm since 1983. He said he “grew up down the road and earned spending money there during the summer,” but the primary products were produce and cattle, and did not include sand. Sand is usually associated with something in a backyard for children to play in, or used in case of an emergency to help contain flood waters, but, in the past few years we have learned that sand is used in fracking a well. But fracking sand is not the kind you find on a beach, it is a high purity quartz sand, a natural material made from sandstone. Although the demand for this desirable grain of sand has skyrocketed, ordinary beach sand has also found its niche in the oil and gas industry. About three years ago a friend told Darr that the gas and oil people were looking for a sand supplier for one of their gas and oil operations. The sand that was available adjacent to Darr’s property was not the kind of sand drillers use for hydraulic fracturing, it was ordinary “beach” sand. But, as the Darr company soon found out, the same sand that fills children’s sand boxes, or is used to shore up levees and dams against a raging river, is just what pipeline companies use during the construction of pipelines. Sand bags, that weigh in at 40 pounds each, act as a cushion for the pipe when it is placed underground. Sand bags are also used also to form “trench breakers” or trench plugs, which look like dams when stacked on the side of a hill. The steepness of the hill depends on the number of trench plugs needed to shore up the hill about every 10 to 15 feet. By 2012, the sand business grew so rapidly, Darr had a 4,800 square-foot building constructed on the farm exclusively for filling and storing sand bags. “Last year, we saw a rise in demand for bagged sand from May through September,” said Patterson. “The average size delivery is by the semi load, which contains 16 Super Sacs — 1,200 40 -pound bags per load. We pack 75 40-pound bags in each Super Sac. The weight of each bag is filled by timing. It takes so many second to fill a bag. And our bags are double stitched.” Cost of a 40-pound bag is $1.50, if “you buy one bag or a thousand,” said Patterson. “Forty pound bags are the stan-
dard, but other sizes are available upon request.” The one-shift operation involves a dump truck to collect the sand and unload it into a hopper, and three people to fill, then seal the bags by feeding each bag through a machine that seldom drops a stitch. “The sand bags are kept in a heated building until it is loaded on a semi or straight truck for delivery. We try to do same-day delivery, if possible,” said Patterson. “We have never missed a delivery. The majority of our orders are delivered, but smaller orders are sometimes picked up.” After a tour of the facility, Patterson pointed to an Amish buggy where its owner was waiting to pick up an order. Transportation vehicles include three semis and six straight trucks. The view of Darr Farms from State Street represents the epitome of a mid-western farm. Nestled in the rolling hills of Cochocton County, the farm’s buildings and silos are surrounded by acres of green and gold vegetation, reminiscent of a farm scene in a Grant Wood painting of Americana. Since George Darr’s acquisition of the farm more than 60 years ago, he has maintained its classic Midwest image while embracing the entrepreneurial spirit of the modern day farmer, by taking advantage of an opportunity that was literally beneath his feet. jperkowski@daily-jeff.com
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10338431
Joe Massaro Energy In Depth – Marcellus
L
ast year, for the first time ever, CONSOL Energy Inc. produced more natural gas from its Marcellus and Utica wells than the company produced from its coal seam reserves – which for years has been their main source for natural gas production. According to a release, the company produced 54 percent of it’s natural gas from the Marcellus and Utica shale formations. Meanwhile, coal seam production accounted for 34 percent. According to CONSOL spokeswomen Kate O’Donovan, “Marcellus continues to be the growth engine of the company, and the Utica is now becoming a bigger part of the mix and is exceeding our expectations.” During 2014, CONSOL Energy Inc. brought 53 Marcellus Shale wells online with an average lateral length of approximately 7,600 feet, which attributed to production rising 93 percent over 2013. The company expects to see its Marcellus Shale assets increase production from more than 100 billion equivalent cubic feet to more than 150 billion equivalent cubic feet, this year. Due to their increase in production and ability to successfully tap into shale formations thousands of feet below the surface, CONSOL Energy Inc. has been able to up its estimate for the amount of recoverable natural gas.
“As of December 31, 2014, the Marcellus Shale consisted of 4,235 billion cubic feet (Bcfe) of proved reserves, or a 26% increase from the 3,373 Bcfe when compared to yearend 2013. Marcellus Shale proved developed reserves were 1,367 Bcfe, or an increase of 89% from 725 Bcfe, over the same period,” the company said in a statement. A majority of operators across the Appalachian region have increased their proved reserves and this past year Marcellus operators produced a record breaking 4 trillion cubic feet of natural gas, a 30 percent increase over the previous year. The Marcellus Shale alone now provides 16 percent of what the entire United States consumes on an annual basis. With more natural gas and oil production here at home than ever before, imports have fallen to their lowest level in 20 years all while supplying consumers with affordable and abundant energy. It’s exciting to see where the Appalachian region will be in the next few years. Joe Massaro is a spokesman for Energy In Depth – Marcellus.
Louis D. D’Amico President & Executive Director, Pennsylvania Independent Oil & Gas Association
“T
he alternative is not really no tax, the alternative is no drilling, a ban as in the case of New York.” Those 21 words, spoken by Gov. Tom Wolf at a Feb. 11 news conference announcing his plans for a severance tax in the Commonwealth supposedly modeled on West Virginia’s, established an unfortunate position for his administration in the debate over the future of Pennsylvania’s natural gas industry. The Governor has attempted to disavow those comments in subsequent interviews, but the fact remains that he volunteered the statement in the first airing of his severance tax proposal. For natural gas producers and service companies, his message was clear: either agree to a tax or face a moratorium. Those are the alternatives. The Pennsylvania Independent Oil & Gas Association is vowing to fight any additional taxes on the industry, regardless of the Governor’s extortion threat. As an organization, we believe either option will decimate natural gas production, employment, economic impacts and tax payments to the Commonwealth. And, we will educate legislators and the public about these issues in the coming months. “West Virginia has a mix so that it can take into account volume regardless of price and price increases. The key is this is what our neighboring state has done and it’s worked. They have a healthy industry” The governor cited West Virginia as an example of a “healthy” natural gas industry, when there is little to substantiate that statement. West Virginia’s severance tax has been a drag on the industry, evidenced by recent statistics from Baker Hughes, and tax collection and labor agencies in both states. Pennsylvania’s rig count drilling unconventional wells averaged 110 in 2011, 59 in 2013 is currently in the range of 55. West Virginia’s remained in the mid-20s during the period between 2011-2013, and has fallen to 16 today.
In the key area of natural gas production, Pennsylvania’s quadrupled between 2011 and 2014, reaching 4 TCF/ year last year, while West Virginia only doubled its level of production between 2011-2013. In a similar fashion, the number of jobs in the Mountain State associated with the industry has consistently been about 10 percent of that in Pennsylvania. West Virginia’s increased production is important to our nation’s energy boom, but it is hardly a “healthy” industry when compared to the success Pennsylvania has realized. “I’m making this [proposal] because I believe it’s in the best interest of the Commonwealth of Pennsylvania as well as the industry. This is a way of making partners out of Pennsylvania citizens and the industry.” With this statement, the governor ignores the fact that natural gas producers have been operating in the Commonwealth for more than 135 years, starting with the nation’s first commercial natural gas well in Murrysville, Westmoreland County. The industry has been a “partner” with tens of thousands of property owners, hundreds of local governments and dozens of counties, producing energy, generating royalty and lease payments, providing good jobs and extracting natural gas by-products used to manufacture more than 6,000 different products across every sector of our economy. PIOGA understands there are some Pennsylvania citizens, such as Gov. Wolf, who may not feel they are “partners” with the industry, because they have little or no experience with energy production. Many of these uninformed citizens hail from counties in southcentral or southeastern Pennsylvania who believe electricity comes from a hole in the wall and natural gas from a pipe in the basement – both just magically arriving, ready to use. While these regions do not have the coal, oil or natural gas reserves that many other areas of the state count among their assets, they do benefit from those resources every time they turn on a light bulb or light their stove. A
“thank you” to their counties to the west and north might be more appropriate than another tax. A recent study by Raymond James Advisors found that 90 percent of the jobs created in Pennsylvania between 2005-2012 were tied to the state’s natural gas industry. Unemployment in counties with gas production has consistently been well below state and national averages, and those workers and businesses have paid billions in taxes to state and local governments. Some of those jobs are now being lost due to low commodity prices for natural gas, and more will likely be impacted in the future. PIOGA will not sit idle, however, and allow either a new tax to steadily erode those jobs even further or a moratorium that would send every industry worker immediately to the unemployment line. We will fight to keep people employed, to provide income to landowners, to maintain economic growth in the state and to produce Americanmade energy. Louis D. D’Amico is President & Executive Director of the Pennsylvania Independent Oil & Gas Association, representing over 900 businesses engaged in all aspects of oil and natural gas development in the Commonwealth.
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i2c
Judie Perkowski Dix Communications
N
ORTH CANTON — All business owners want the same thing, to protect their business from theft of their tangible and intangible assets. They rely on experts in the technology field to design and develop a security system that scan the company’s premises for intruders in and out of the office, in addition to monitoring equipment, employees logging their identities or company product at remote areas, and how the right person is alerted to any discrepancies in any part of the businesses’ operation. In 2005, a small group of entrepreneurs, led by a former chief information officer for the medical industry, developed an advanced video surveillance system for business and government facilities. Jeff Doak, president and CEO of i2c Technologies, said he was one of eight partners in a medical equipment service company founded in 1998. “We started with the eight of us and grew the business to 200 employees with revenues in excess of $30 million in sales. We were purchased by a competitor, and I had to sign a noncompetition agreement in the medical field. So, as I was always very interested in the video surveillance/security space, I used much of my proceeds from the sale of Genesis Technology Partners to start i2c in 2005,” said Doak. “After 9/11, security was on everyone’s mind and there was a need for better technology.” Doak said he got the idea for the name of the business — i2c — from a Bible verse referring to having “eyes to see,” which in turn relates to the cameras used for video surveillance.
Although i2c has been in existence barely 10 years, the company has been providing advanced video surveillance solutions for more than 200 customers nationwide, including the City of Akron, Timken Co., all of the State of Ohio office towers in Columbus, Akron, Cleveland and Toledo, POET Energy and Eclipse Resources, an independent oil and gas company. “We have been working with Eclipse for the past two years, providing surveillance and access control solutions for the company’s remote sites as well as their corporate office,” he said. Eclipse Security Manager Brendan Joliet added an endorsement of the company: “i2c Technologies has been a superb partner in increasing our corporate security posture. Their top of the line equipment combined with experts who understand our needs in the field and our office environment, make i2c an invaluable partner as we improve our security systems.” Doak said that working in the field on pad sites is always more challenging with sites so spread out. “Our gas and oil solutions are all about getting control over these sites using i2c’s cameras and access control solutions. “Access control keypads allow employees to swipe in using their badge. Contractors are given badges or assigned key codes for entry, and access is controlled at the corporate office. Access control tracks everyone coming and going from a remote site. Billing for labor and materials can be compared to access control records to ensure accurate charges, which can save the company money and can quickly pay for the system.” Video surveillance is provided by two types of cameras: A pan, tilt, zoom (PTZ) high definition camera provides clarity and control; and a thermal imaging camera views the area by
seeing the difference in heat. The thermal camera “sees” in total darkness and is not affected by bright lights that would normally interfere with image quality. The camera can also detect movement anywhere in the field of view of the image, from up to 200 yards away. The thermal camera alerts intrusions and the PTZ camera will zoom in on the area. Pictures can immediately be sent to the company or monitoring personnel. Thermal cameras can also “see” leaks. Temperature differences can help identify problems remotely. They can also be used to monitor temperatures of various items on site. Alerts can be sent if temperature thresholds are exceeded. Cellular data or two-way satellite is used to connect remote sites which can be viewed from the corporate office or from the field. Solar energy can power the system if AC power is not available. This allows for a fully “off grid” solution that powers the system and gate controller 24/7. “We use a variety of products from several vendors to create our solutions ... We integrate all of these products together along with our software to manufacture our solutions,” he said. “We can install a full system in about two days.”
By using i2c’s technology, gas and oil companies can get control of their remote sites. Significant cost savings can be realized by allowing management to “see” what is happening at all of their sites. This can catch problems before the create cost over runs. i2c offers video and access control solutions from drilling through production. Every aspect of site security and operational monitoring is covered. On a personal note, Doak said he has been married to his wife, Carrie, for 25 years. They have two children, a son, 15, and a daughter, 13 and reside in Senecaville. “Carrie has been a great partner supporting me through two startup businesses, and is also the ‘Voice of i2c.’ We use her for all voice recording for video presentations and radio commercials. She is a professional voice talent as well as being integral in i2c marketing and sales.” For more information about i2c, call 888,422.7749, email jdoak@i23ctech.com or visit www.i2ctech.com. The office is at 7300 Whipple Ave., NW, Unit 6, North Canton. JPerkowski@dixcom.com
OBAMA FLOATS PLAN
FOR ATLANTIC DRILLING Dina Cappiello Associated Press
W
ASHINGTON (AP) — The Obama administration floated a plan on Jan. 27 that for the first time would open up a broad swath of the Atlantic Coast to drilling, even as it moved to restrict drilling indefinitely in environmentally-sensitive areas off Alaska. The proposal envisions auctioning areas located more than 50 miles off Virginia, North and South Carolina, and Georgia to oil companies no earlier than 2021, long after President Barack Obama leaves office. For decades, oil companies have been barred from drilling in the Atlantic Ocean, where a moratorium was in place up until 2008. The plan also calls for leasing 10 areas in the Gulf of Mexico, long the epicenter of U.S. offshore oil production, and three off the Alaska coast. “This is a balanced proposal that would make available nearly 80 percent of the undiscovered technically recoverable resources, while protecting areas that are simply too special to develop,” Interior Secretary Sally Jewell said in a conference call with reporters. “The areas off the table are very small in comparison to areas on the table.” The plan, which covers potential lease sales in the 20172022 time frame, drew immediate reaction from Capitol Hill, where Sen. Lisa Murkowski, R-Alaska, called it a war on her home state, and where Northeastern Democrats objected to the proposal for the Atlantic Ocean. The proposal
comes as the U.S. is in the midst of an oil boom and when oil prices, and pump prices, are at near-historic lows. “Opening up the Atlantic coast to drill for fossil fuel is unnecessary, poses a serious threat to coastal communities throughout the region, and is the wrong approach to energy development in this country,” said New Jersey Sens. Cory Booker and Robert Menendez, and Rep. Frank Pallone, in a statement. Interior Department officials cautioned that they were in the early stages of a multi-year process, with Jewell saying they were only “considering’ a lease sale in the Atlantic and that areas could be “narrowed or taken out entirely in the future.” For Alaska, President Barack Obama issued a memorandum Tuesday placing 9.8 million acres of the state’s offshore resources off limits indefinitely. The memorandum withdraws from leasing parts of the Beaufort and Chukchi seas, as well as a shallow 30-mile shelf in northwestern Alaska called Hanna Shoal, citing their importance to Alaska natives and the sensitive environmental resources. “There are some places that are too special to drill, and these areas certainly fit that bill,” Jewell said. Obama in early 2010 announced his intention to allow drilling 50 miles off the Virginia coast, only to scrap it after the BP oil spill in the Gulf of Mexico. But the administra-
tion has allowed oil and gas companies to explore for oil and gas in the Atlantic in the meantime, which is the initial step prior to drilling. Environmental groups were quick to criticize the proposal, saying offshore drilling had not gotten safer in the years after the BP disaster. Congress, despite recommendations, has not passed any new laws to deal with the lapses identified in the wake of the spill, which was the largest offshore incident in U.S. history. “This 5-year plan could destroy our coastal economies for decades to come, costing future generations the fishing livelihoods that have been part of their local fabric for generations,” said Oceana’s vice president Jacqueline Savitz. But the oil industry applauded the move, saying much of the U.S.’s offshore potential remains untapped. Production from offshore areas accounts for 16 percent of the oil produced in the U.S. now. The Independent Petroleum Association of America said in a statement that while the proposal is a step in the right direction, it “urges the administration to keep all offshore areas available to exploration.” According to documents obtained by The Associated Press through the Freedom of Information Act, at least four firms have filed applications with federal fisheries • Lowboys managers to•conduct Winchwide-scale seismic imaging surveys in the Atlantic Trucks to explore for oil and gas deposits.
The applications for “incidental harassment” of marine animals including endangered right whales are currently being reviewed by NOAA Fisheries. The projects involve towing seismic air guns behind vessels for hundreds of miles, over months and years. The guns emit strong bursts of air and sound, which allow crews to create two-and-three-dimensional images of the seafloor. Associated Press reporter Jason Dearen contributed reporting from Miami.
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OPINION:
Pat Sink International Union of Operating Engineers Local 18
T
he September 2014 announcement that significant pools of oil and natural gas were found in the Arctic by the Russian company Rosneft should give pause to anyone concerned about what this portends for the United States, whose inactivity in this part of the world is as disturbing as the find is exhilarating. Drilling under the Kara Sea, Rosneft and its handful of partners, including Irving, Texas-based ExxonMobile, America’s largest energy company, found what could amount to nearly a billion barrels of crude oil and 330 billion cubic meters of gas. If the amounts turn out to be accurate, the discovery could provide an economic boon to Russia, Rosneft and ExxonMobil. But what about the United States? Has our country been as persistent as the Russians in exploring what might truly be the last frontier on earth? The answer is no and every day that passes puts the U.S. one more day behind catching up to the Russian investment. Here at home, we are witnessing a great rebound in domestic oil and natural gas production across the country and an accompanying resurgence in manufacturing that is creating jobs, investing in communities and making us less dependent on unfriendly nations for energy resources. In Ohio alone, announced investment by companies exploring the Utica shale formation increased by $9 billion from October 2013 to October 2014, bringing the total investment since 2010 to more than $22 billion. This growth has had tremendous impact on the 15,000 members of the organization I am proud to help lead, the International Union of Operating Engineers Local 18. Our members are building platforms and pads, producing pipe, laying roadways and bridges, and working on countless
other projects to create a safe, productive domestic energy infrastructure. We are doing this in Ohio and across the nation, and if there were a serious commitment to Arctic energy production, it would mean jobs for us far into the future. A healthy and sensible Arctic policy will benefit Ohio’s economy in several ways. Ohio is the second largest U.S. producer of raw steel, and the domestic energy industry relies upon state-based manufacturers for items like steel pipes and drilling platform equipment. The state’s largest manufacturing industry — 130,000 jobs and 2,400 companies — is built around polymers that are made from oil derivatives and used as components in a multitude of products including medical equipment, food packaging, toys, modified road asphalt and fuel cells. Eight Ohio universities attract students to their world-class polymer research programs with the University of Akron’s Institute of Polymer Science and Polymer Engineering the nation’s largest. A commitment to Arctic exploration means much for Ohio consumers as well. Stronger oil autonomy means stability in availability and more jobs. A report from the Northern Economics Study determined oil production from Alaska’s Outer Continental Shelf could create 55,000 new jobs nationwide per year for 50 years. But until the federal government sheds its cloak of obstinacy, Russia will remain king of the Arctic oil throne and hopes for a closer connection linking Ohio’s know-how to Alaska’s Arctic resources will remain buried beneath the ocean floor.
Dan Garcia Attorney
F
irst, let me start this by telling you the sky is not falling. Oil and gas prices are down, there is no denying the pain this is causing, however, these low prices could potentially create opportunities further down the energy supply chain. You just have to know where to look. Thanks to the recent OPEC temper tantrum, there is a fear that domestic shale development will be a casualty of economic war. Many in the oil and gas industry remember the good old days but they also remember how painful things became in the 1980s. There is no question that this precipitous drop in oil and gas prices has created a series of challenges to our domestic oil and gas industry. Crude inventories were expected to be in the 880,000 barrel range but were down 3.1 million barrels. Ordinarily, we would rejoice, however, gasoline inventories were expected to be up 3.4 million barrels but were actually up 8.1 million barrels while distillates were expected at 1.9 million barrels yet registered up 11.2 million barrels. Needless to say, we have a glut in the supply chain and prices are reflecting this. As a result, the rig count for domestic oil and gas production is down more than 350 rigs in 9 weeks. These low oil and gas prices are temporary dip in the market. By my count, every OPEC country is running massive deficits, which are unsustainable. By contrast, here in the U.S. our GDP is projected to receive a nice little bump thanks in large part to the abundance of cheaper energy. Furthermore, shale plays like the Marcellus and Utica have created an economic ripple effect that will touch every person in the northeast for the next several generations. Despite this bleak picture, I remain bullish on natural gas and shale gas production. Let’s read the tea leaves: Natural gas, thankfully, trades on regional rather than global markets. Domestic natural gas prices are low for reasons other than an OPEC tantrum. In the Marcellus and Utica region we have an abundance of natural gas supply in storage and our pipelines are operating at capacity. There simply is not enough infrastructure to handle the volume of gas being produced and the demand for this gas has not increased. Until the recent FERC-approved pipelines become operational (2015-2017), this supply glut will persist. Not too far on the horizon, there are a number of domestic demand drivers developing which will help decrease our natural gas supply. Areas where I am more optimistic are in the midstream (pipelines, processing facilities, natural gas storage), distribution lines (our Local Distribution Companies), and demand-driven industries like manufacturing, chemicals, and power generation/distribution. Users of natural gas as a
feedstock will all seek to purchase and store gas at much lower rates, thus increasing the demand for pipelines and storage facilities. As existing transmission lines begin reaching their maximum capacity for natural gas, exploration and production efforts may slow down to allow infrastructure development to catch up with production. For many in Southwestern Pennsylvania, this slowdown in production causes many in the region to worry that Marcellus and Utica may be a flash in the pan. Instead, this slowdown in production is temporary as more gathering and transmission lines are design, permitted, and built. Keep in mind, however, exploration and production companies with legacy land (leases with low per-acre bonus payment) have a much lower breakeven point and will likely continue development unaffected. Finally, and often overlooked, is the massive natural gas distribution network in Southwestern Pennsylvania with its own needs and opportunities. In Pennsylvania there are thousands of miles of older bare steel and cast iron pipelines delivering high pressure natural gas to homes and businesses. All of these assets need to be replaced by newer, corrosionprotected, pipelines. Gas utility companies across the Commonwealth are taking advantage of the Distribution System Improvement Charge (DSIC), a Pennsylvania Public Utility Commission-approved charge that allows certain utilities to use a surcharge on customers’ bills to accelerate the replacement of existing aging facilities that will otherwise occur if the utility must wait until the completion of a rate case to begin receiving a return on its investment. This authorization is critical in high density residential areas where high pressure gas lines are prevalent. Because of DSIC and the abundance of aging infrastructure, there are a number of opportunities to provide a number of services to the gas distribution industry. While this industry is highly regulated (smaller margins for vendors), there are significant opportunities to create a long term relationship with the handful of utility companies in Western Pennsylvania. There is no doubt that many of us in the industry are taking a beating but I have reasons to believe this downturn is temporary. While the upstream sector of the market has a greater tendency to ebb and flow, the midstream and downstream sectors offer a bit more stability for long-term strategic planning. This is just another bump in the road to energy independence. Dan Garcia is an Oil and Gas Attorney at Leech Tishman Fuscaldo and Lampl in Pittsburgh, PA. He received his undergraduate of Texas A&M University and his law degree from the University of Pittsburgh. Please feel free to email Dan at dgarcia@leechtishman.com if you have any questions.
H
OUSTON, TX -- Express Energy Services, a leading oilfield services company, announced the appointment of oil and gas industry veteran Mark Reese, a former National Oilwell Varco (NOV) executive, as Chairman of the Board of Directors of ES Platform Holdings, Inc., the parent company of Express. “I am proud to welcome such an experienced industry professional as Mark Reese as the Chairman," said Darron Anderson, chief executive officer, Express Energy Services. “His leadership and wealth of oil and gas industry knowledge will be beneficial to Express as we strengthen and grow our operations.” Reese spent more than 30 years at NOV before retiring from the company as President - Rig Technology. He held a variety of executive positions in oil and gas operations and maintenance while at NOV, including President of Mission Products Group and President of Expendable Products.
“I’m impressed with Express’ culture of excellence, track record of operational success and strong commitment to training and safety, and I’m excited to offer an additional perspective on most effectively leveraging these strengths,” said Reese. “I look forward to working with the Board of Directors and management team to enhance and extend the Company’s value proposition.” About Express Energy Services Express Energy Services, founded in 2000, is a premier provider of products and services to the petroleum and energy industries. Offering oilfield services in every major hydrocarbon basin in the United States, Express assists its customers with six service lines, including well construction and well testing services, with a workforce of approximately 1,200 employees in more than 25 locations. In addition, Express offers offshore well intervention services in the Gulf of Mexico. For more information about Express, please visit www.eeslp. com. Connect with Express on Facebook, Twitter, Linkedin, Oilpro and Youtube.
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(877) 787-4753 rrostad@triplertrailer.com
KEYSTONE CRANE AND HOIST CO. 396 Morganza Road Canonsburg, Pa 15317 Since 1976
www.keystonecrane.com 724-746-5080 keystonecrane@yahoo.com Fax 724-746-5082
Judie Perkowski Dix Communications
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ITTSBURGH — Opening day of the Marcellus-Utica Midstream Conference and Exhibition at the David L. Lawrence Convention Center in Pittsburgh gave oil and gas-related businesses an opportunity to set up their booths and equipment showcasing products, technology and information in anticipation of record-breaking attendance to one of the most highly regarded events of the year. Theme for the sixth annual conference Jan. 27-29 — Extending the Reach: Meeting Global Demand — was introduced by Paul Hart, editor-in-chief of Midstream Business for Hart Energy, sponsors of the event, who welcomed oil and gas producers, service providers, the media and interested parties. Approximately 200 exhibitors drew the attention of more than 2,100 industry professionals who took advantage of information shared from government and business leaders in energy marketing, research, exploration and development and pipeline construction. Coffee and snacks were offered throughout the day, a networking lunch and end-of-the-day reception gave visitors from around the country a chance to exchange information and ideas. The next Hart Energy sponsored event in Pittsburgh at the David Lawrence Convention Center will be June 23-25 — the DUG East (Developing Unconventionals) Conference — which highlights exploration, drilling, completions and production of Marcellus and Utica Shale Plays. Photos: Judie Perkowski
VETO Associated Press
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n Fb. 24, President Obama vetoed the bill Congress passed this month forcing approval of the proposed Keystone XL Pipeline. But the project isn’t dead yet, and the U.S. State Department’s long approval process for the Keystone XL continues. The bill, an effort by Congress to override the State Department’s protracted environmental review of the pipeline, would have authorized TransCanada to build the $8 billion Keystone XL along 875 miles of U.S. soil from the Canadian border in Montana to Steele City, Neb., where the oil would have been piped to refineries in Texas. Climate change is front-and-center in the debate over whether the pipeline should be built because of the high energy intensity of extracting the Canadian tar sands and the carbon dioxide emissions that result from mining, processing and burning them. The U.S. Environmental Protection Agency estimates that that the energy required to process tar sands oil is so great that oil piped through the Keystone XL will emit 1.3 billion more tons of greenhouse gas emissions over the pipeline’s 50-year lifespan than if it were carrying conventional crude oil. There’s a big difference between conventional crude oil and the type of oil called bitumen that the Keystone XL would carry. Bitumen is a heavy form of crude oil that is so thick that it can’t flow through pipelines until it’s diluted with liquid chemicals to create a substance called diluted bitumen, or “dilbit,” which would be refined into motor fuel in Texas.
Despite the possible climate impacts of the pipeline, it is not certain that the Obama administration will deny TransCanada’s permit application to build the Keystone XL Pipeline. Obama’s veto is seen more as a political move than a scientific one, rejecting Congress’ desire to usurp the State Department’s authority to authorize an international oil pipeline. After postponing a final decision on the Keystone XL indefinitely, the State Department has hinted that its decision could be forthcoming sometime this year but its review of TransCanada’s permit application is ongoing. “Once we have analyzed all of the information needed for completion of the review, and prepared the final documents, then a determination will be made,” a State Dept. statement issued to Climate Central Tuesday said, adding that the department is following no specific timeline. If the State Department approves TransCanada’s permit, construction may be able to move ahead. If the permit is denied, the Keystone XL Pipeline cannot be built into the U.S. and effectively dies, though the tar sands oil may have other routes to refineries anyway. Even if the federal government approves the pipeline, the Keystone XL faces legal hurdles in Nebraska and South Dakota. TransCanada is fighting with property owners over its use of eminent domain for the pipeline’s route through Nebraska, and in South Dakota, the company is awaiting the state’s Public Utilities Commission’s approval before being allowed to move ahead with construction there.
American Made Hardwoods
MARCH 2015 • A FREE MONTHLY PUBLICATION Polaris Ranger 570 with optional accessories
WE OFFER MUCH MORE THAN GREAT PRICES! Yes, Barnes Bros. has some of the best deals on the world’s top powersports brands, but what keeps our customers coming back is our relentless commitment to provide the best dealership experience. What our customers say they love most about our dealership is the support we provide after the sale.
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You will find hundreds of Side-bySides (UTVs), ATVs and Motorcycles from the most sought after, reliable manufacturers in the world.
We also feature a well stocked Parts & Accessories Department, with products, brands, and knowledge to help you get the most out of your machine.
We take pride in our clean, well run Service Department. Our Service Technicians are factory trained, able to solve the toughest repairs.
Most importantly, you will find employees in every department who truly love the industry and are happy to serve you!
BARNES BROS. MOTORCYCLES & OFF-ROAD
Conveniently Located 1 Mile from I-79 and Less Than 3 Miles from Southpointe
724-746-7100 • 589 West Pike St. • Canonsburg, PA 15317
www.BarnesBrosMotorcycles.com