Gulf Coast Oil & Gas Awards 2012 Winner's Yearbook by Marc Bridgen

2012

Gulf Coast Oil & Gas Awards Winnerâ&#x20AC;&#x2122;s Yearbook

Oil & Gas Awards 2012

ANADARKO PETROLEUM CORPORATION

Recognized as a Top Workplace in Houston for three consecutive years, Anadarko Petroleum Corporation is among the worldâ&#x20AC;&#x2122;s largest independent oil and natural gas exploration and production companies. Anadarko employs more than 5,100 men and women around the world who share a set of core values that includes integrity and trust, servant leadership, commercial focus and open communication.

Anadarko is proud to support the first annual Oil & Gas Awards.

Oil & Gas Awards 2012 www.anadarko.com | www.youtube.com/anadarkotv | NYSE : APC 2

Welcome to the commemorative yearbook for the 2012 Gulf Coast Oil & Gas Awards

he organizations in this journal were acknowledged by the Awardâ&#x20AC;&#x2122;s judging panel to have excelled at their core business in 2012, whilst also focusing on the core values of Health & Safety, Environmental Stewardship and Corporate Social Responsibility. The Oil & Gas Awards recognize the outstanding achievements made within the Upstream and Midstream sectors of the Oil & Gas industry, acknowledging the producers, pipelines, service providers and suppliers that support them. The Awards are a platform for the industry to demonstrate and celebrate the advances made in the key areas of environmental stewardship, efficiency, innovation, corporate social responsibility and health and safety. The Awards show the industryâ&#x20AC;&#x2122;s motivation to develop by recognizing and rewarding the efforts of corporations and individuals. The Oil & Gas industry is of the upmost importance to the U.S. national economy and instrumental to both national and energy security. In its areas of operation, the Oil & Gas industry also plays a key role for local communities and their economies. Through innovation, the industry has driven forward technological developments. Which have created a renaissance in the energy sector, enabling the U.S. to tap into one of the worldâ&#x20AC;&#x2122;s largest natural gas reserves. In spite of its significance, the industry still has its critics and gets more than its fair share of negative press. The

Oil & Gas Awards aim to highlight the lengths the industry goes to in protecting the environment, the effort made to maintain the health and safety of employees and citizens, and to what it contributes to local communities. I would like to congratulate all the companies that were voted finalists by the judges, and to the winners - well done! Many thanks to the thought leading companies and individuals that participated in these inaugural awards and supported this new initiative. We especially appreciate the support of our judges, sponsors and partners, without whom the Oil & Gas Awards would not be possible. These inaugural 2012 Gulf Coast Oil & Gas Awards have been a terrific success and we are very much looking forward to hosting the industry again next year. The 2013 Gulf Coast Oil & Gas Awards will be held in Houston, TX in March 2014. Please visit www. oilandgasawards.com to find out how your company can participate. I hope that you enjoy reading this commemorative yearbook. Please do not hesitate to contact me if you would like to share your thoughts and feedback. Best wishes,

Daniel P. Creasey Chairman, Oil & Gas Awards

Oil & Gas Awards 2012

For any specific sponsorship opportunities, please contact:

For any marketing and media partnerships, please contact:

For any table sales and general enquiries, please contact:

For any event logistics enquiries, please contact:

Daniel Creasey Phone: +1 210 591 8471 Email: daniel@ oilandgasawards.com

Marc Bridgen Phone: +1 210 591 8475 Email: marc@ oilandgasawards.com

Oliver Bridgen Phone: +1 210 591 8481 Email: oliver@ oilandgasawards.com

Andrew Perry Phone: +1 210 767 3320 Email: andrew@ oilandgasawards.com

Contents Guest of Honor

Judging panel

Congratulations to the 2012 Rocky Mountain Winners

Congratulations to the 2012 Gulf Coast Winners

A-Z of finalists

Winners pages

Corporate social responsibility initiative of the Year

Manufacturer of the Year

Midstream company of the Year

Consultancy of the Year

Engineering company of the Year

Trucking company of the Year

Insurance provider of the Year

Law Firm of the Year

Water management company of the Year

Health & Safety initiative of the Year

Drilling & Well services company of the Year

Recruitment Agency of the Year

Transaction of the Year

Terminal of the Year

Environmental initiative of the Year

Industry supplier of the Year

E&P company of the Year

Industry Leader

Oil & Gas Awards 2012

Editorial

11 16

Texas and North American Energy Security

Fueling the Future: Natural Gas as the Alternative Fuel of Choice

Should Oil 22 23 Companies Go Green?

33 39 54

Marathon Oil Corporation

North American M&A could heat up with political certainty, technological knowhow Whether to be, or not to be, in our future - that is the question

Guest of Honor G

Commissioner David J. Porter uest of Honor at the Gulf Coast Oil & Gas Awards was Texas Railroad Commissioner David J. Porter, who gave a stirring speech. David J. Porter was elected to serve a six-year term as Texas Railroad Commissioner in November 2010. Governor Rick Perry appointed Commissioner Porter to the Interstate Oil and Gas Compact Commission as the official representative for Texas in 2012. He also serves as the governor’s official representative on the Interstate Mining Compact Commission and as an advisory board member for the Texas Journal of Oil, Gas, and Energy Law. In 2011, Porter created the Eagle Ford Shale Task Force to establish a forum that will bring the community together and foster a dialogue regarding drilling activities in the Eagle Ford Shale. Some of the highlights from Comm. Porter’s speech: “I would like to thank all of the participants who have helped make these inaugural Gulf Coast Oil & Gas Awards such a success. The judges, nominees, sponsors and partners, I commend you all on the work you are doing.” “It is so important for us to take the time to highlight and honor those

individuals and companies that are leading the way in responsible resource development. As you all know this is a very exciting time for the energy production in America, and the advent of shale oil and gas has been a complete game changer.” “While the industry is providing significant benefits, there are certain challenges that must be addressed, as we see so widely reported in the mainstream media. That is why I think the work that you all are doing is that much more important. We must show the media, the general public and industry opponents that there are responsible operators and individuals who are ready and willing to step up to the plate and address these issues, who will find innovative solutions that satisfy all stakeholders and who are dedicated to setting good precedents for others to follow. Tonight we are not celebrating just the winners of these awards, although I do commend them on their achievements, but we have come here to celebrate the success of the oil and gas industry as a whole, and we are supporting the core values of health and safety, environmental stewardship and corporate responsibility.” To see the video of Comm. Porter’s complete keynote address please visit www.oilandgasawards.com.

Oil & Gas Awards 2012

Judging panel

Brad Holly

John D. Jensen

John O’Shea

Vice President Southern and Appalachia Operations, Anadarko Petroleum Corporation

Executive Vice President Operations Services, EP Energy

CEO, Tradition Midstream

M r. Holly was named Vice President of

Southern and Appalachia Operations in July 2012. Prior to that, he served as General Manager of the Greater Natural Buttes and General Manager of Maverick Basin. Prior to that, Mr. Holly served as Reserves and Planning Manager for the Southern and Appalachia region, and was a reservoir engineer and development supervisor on Anadarko Marco Polo and K2 developments in the deepwater GOM. Mr. Holly has more than 15 years of experience in oil and natural gas exploration and production, having begun his career with Amoco in 1994. He joined Anadarko in 1997 and has held positions of increasing responsibility in onshore and offshore engineering and management. Mr. Holly holds a Bachelor of Science in Petroleum Engineering from Texas Tech University. Currently, he serves on the Industry Advisory Board for the Texas Tech Petroleum Engineering Department and also is a member of the Society of Petroleum Engineers.

Oil & Gas Awards 2012

ohn D. Jensen is Executive Vice President of Operations Services for EP Energy. John is responsible for all U.S. drilling, completions and field operations. Additionally, John is accountable for EP Energy’s Health, Safety, Environment and Regulatory programs. Previously, John was vice president, Strategy and Engineering where he was responsible coordinating E&P strategy development, the long range planning process, facilitating inventory tracking and portfolio management, and generating the annual reserves report. John has more than 20 years of industry experience. Prior to joining EP Energy, he worked in a variety of upstream and midstream engineering, planning, and business development positions for ConocoPhillips in West Texas, New Mexico, Colorado, and Calgary, Alberta Canada. He last served as vice president, Business Development and Strategic Planning for ConocoPhillips Canada where he oversaw a significant expansion of the company’s position in the Canadian oil sands and led integration efforts of Burlington Canada. John earned a Bachelor of Science degree in Civil Engineering from the Colorado School of Mines. John joined EP Energy (formally El Paso Exploration and Production Company) in April 2007.

radition Midstream is a midstream company focused on providing the oil, gas and water infrastructure necessary for producers in the emerging plays. John co-founded and ran Millennium Midstream Partners in 2002 until its sale to Eagle Rock in 2008. During Millennium’s history, it was named the fastest growing private energy company in America as well as being #63 on the Inc 500. John has done $6 billion in midstream deals over the course of his career. Prior to founding Millennium, John was Sr. Vice President – Commercial Development for Dynegy. His other experiences at Dynegy include VP – Pipelines and Straddle Plants, VP Technical Services and various business development roles. John began his 20+ year career in Midstream Services with Shell Oil and earned an MBA from The University of Texas and a B.S. in Petroleum Engineering from Louisiana Tech University. He and his wife Charlene have three children. John is very involved in education issues serving on the Boards of Strake Jesuit High School, Pope John XXIII High School and Cristo Rey Jesuit High School.

Chris Faulkner

of America, Texas Alliance of Energy Producers and Texas Independent Producers and Royalty Owners Association. He is actively involved in local and national philanthropic and non-profit organizations, including Dallas Performing Arts, Texas CANDO, American Heart Association and Big Brothers Big Sisters. Mr. Faulkner studied biomedical engineering at Southern Methodist University, business and mathematics at Baylor University and at the University of North Texas. He received an honorary doctorate degree for his achievements in business administration from Concordia College.

CEO, Breitling Oil and Gas

hris Faulkner, Founder, President and Chief Executive Officer Breitling Oil and Gas, drives the company’s longrange economic and energy outlooks, which serve as the basis for strategic planning as well as investor relations, short and long-term business strategy, mergers and acquisitions, and the development and application of new and existing technology for optimizing recovery efficiency within Breitling’s conventional and unconventional resources. His diverse and extensive background in the oil and gas industry in North America, Europe and the Middle East covers all aspects of oil and gas operations, including project management, production, facilities, drilling and business development. Mr. Faulkner serves as an advisor to the ECF Asia Shale Committee and sits on the Board of Directors for the North Texas Commission. Mr. Faulkner has been featured in numerous media outlets, including Reuters, Bloomberg, US News &amp; World Report, FOX Business News, The Agenda – TV Ontario (TVO), Dallas Morning News, San Diego Tribune, and Hart Energy. He is a frequent lecturer at industry events and is a member of many industry organizations, including the Texas Alliance of Energy Producers, the Dallas Petroleum Club, Independent Petroleum Association

Steven P. Guidry VP Business Development, Marathon Corporation

teven P. Guidry is vice president of Business Development for Marathon Oil Corporation. In this capacity, he is responsible for expanding into new worldwide markets, driving strategic opportunities for growth and increasing shareholder value. Mr. Guidry has more than 30 years of leadership experience in the domestic and international oil and gas industry, and most recently served in a leadership role as president of Marathon Libya, Ltd. He was also chairman of the international corporate partnership of Marathon, ConocoPhillips and Hess in the Waha concessions, the

largest single U.S. investment in Libya. Prior to the Libya assignment, Mr. Guidry served as regional vice president for Marathon’s North American Production Operations. He oversaw all of Marathon’s U.S. exploration and production onshore activities in Alaska, Wyoming, North Dakota, Colorado, New Mexico, Texas, Oklahoma and Louisiana. He was also responsible for production operations in the Gulf of Mexico. Mr. Guidry spent five years leading Marathon’s Central Africa Business Unit, overseeing operations in Equatorial Guinea and Gabon. He led his organization through a $1.3 billion expansion project in Equatorial Guinea, which increased liquids production fivefold. He demonstrated operational excellence by setting the stage for the development of a $1.4 billion liquefied natural gas project that went on stream in March 2007, and represented the fastest LNG project on record from initial concept to final investment decision. During his tenure in the Central Africa Business Unit, Mr. Guidry was a recognized advocate for responsible corporate engagement and led a number of important initiatives, including a multiyear program to eradicate malaria on Bioko Island, Equatorial Guinea. He remains a strong proponent of good governance, anti-corruption and government-to-government engagement in promoting positive change. Mr. Guidry graduated from the University of Southwestern Louisiana in 1980 with a bachelor’s degree in petroleum engineering and now serves as the chairman of the Industry Advisory Council. He is a member of the Society of Petroleum Engineers, and served on the board of directors for the Corporate Council on Africa, the Independent Petroleum Association of America and was a member of the Upstream Committee of the American Petroleum Institute.

Oil & Gas Awards 2012

Corporate social responsibility initiative of the Year

WINNER

CORPORATE SOCIAL RESPONSIBILITY INITIATIVE OF THE YEAR Rocky Mountain

Anadarko Petroleum Corporation Anadarko Petroleum Corporation is among the world’s largest independent oil and natural gas exploration and production companies. Anadarko employs more than 5,100 men and women around the world who share a set of core values that includes integrity and trust, servant leadership, commercial focus and open communication. In 2012, Forbes magazine listed Anadarko among the World’s 100 Most Innovative Companies, reflecting Anadarko’s commitment to its mission: To deliver a sustainable rate of return to shareholders by safely exploring for, acquiring and developing oil and natural gas resources vital to the world’s health and welfare. The company is most active in the Rockies, Texas and Pennsylvania, where it is focused on developing oil and natural gas from shale formations, tight sands and fractured reservoirs.

With premier positions in some of North America’s most prolific, longlived resource basins, Anadarko is one of the most prominent producers in the onshore United States. The company is most active in the Rockies, Texas and Pennsylvania, where it is focused on developing oil and natural gas from shale formations, tight sands and fractured reservoirs. In southwest Texas, Anadarko is among the largest producers in the Eagleford Shale. Since beginning operations in 2009, the company and its partners have made significant investments in

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com 8

Oil & Gas Awards 2012

Dimmit, LaSalle, Maverick and Webb Counties where it produces higher-margin oil and natural gas/ condensate. Anadarko is committed to producing energy resources in a manner that protects Texas’ natural resources, and is committed to the shared prosperity of the communities around us. As such, Anadarko’s Eagleford asset team has actively partnered with area schools to nurture science, technology, engineering and math (STEM) education, while also promoting health and safety through programs like the SAYES Academy and LiveSafe Rallies.

Manufacturer of the Year

Winners page

WINNER

MANUFACTURER OF THE YEAR Rocky Mountain

Enviro Voraxial Techology

The Voraxial® provides highly efficient bulk separation while requiring less space, energy and weight than conventional separators processing the same volume.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com

Enviro Voraxial Technology, Inc. (Stock Symbol: EVTN) is a Fort Lauderdale, Florida, based CleanTech company that developed and manufactures the Voraxial® Separator, a unique, patented, in-line, turbo-separator that provides a cost effective method to efficiently separate large volumes of solids and liquids with different specific gravities and without the need of a pressure drop; making it, arguably, the world’s most efficient, high volume, bulk fluid and fluid/solid separation technology. The Voraxial® provides highly efficient bulk separation while requiring less space, energy and weight than conventional separators processing the same volume. It is capable of simultaneously separating up to three components, such as oil, water and sand, at volumes ranging from five (5) gallons per minute to five thousand (5000) gallons per minute and can efficiently handle fluctuations in flow rate and oil concentrations without any adjustments or pressure drop, allowing for ease of installation and operation. It can be used as a standalone separator or incorporated with other equipment to provide a complete turnkey solution that allows customers to treat a variety of fluid streams while reducing treatment cost and increasing separation efficiency. This superior separation is achieved in real-time, and in much greater volumes, with a more compact and energy efficient machine than any product on the market today.

EVTN owns significant intellectual property surrounding the Voraxial® and has new innovations under development. Below is a brief list of the multiple industry uses for the Voraxial®; we encourage you to also visit our website, www.evtn.com, for additional information. • Produced Water Cleanup • Frac Water • Oil Spill • Oil Exploration and Production • Oil Sands Produced Water • Offshore and Onshore Facilities • Crude Oil Cleanup • Food Processing • Mining • Municipal Wastewater • Manufacturing • Produced Water and Sand Turnkey Skid • Refineries • Salt Walter Disposal • Stormwater Separation • Uranium • Waste-to-Energy

Oil & Gas Awards 2012

Midstream company of the Year

Winners page

WINNER

MIDSTREAM COMPANY OF THE YEAR Rocky Mountain

Williams With more than 100 years of experience, Williams is one of the premier energy infrastructure companies focused on connecting North America’s significant hydrocarbon resource plays to growing markets for natural gas, natural gas liquids (NGLs) and olefins. We primarily operate interstate natural gas pipelines and offer midstream services, which include natural gas gathering, treating, and processing; deepwater production handling and oil transportation; and NGL fractionation, storage and transportation. Williams’ operations span from the deepwater Gulf of Mexico to the Canadian oil sands. The Company’s willingness to take risks in deploying new technology and investing in large capital projects is central to our culture and our success.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com

Oil & Gas Awards 2012

Williams operates under a range of core values & beliefs. Integrity must not be compromised; honest relationships and trust are essential for long-term business success. We deal fairly in all our business relations. We are fully committed to the health and safety of our workforce and on the protection of our neighbors, the environment and our assets. We exist to help our external customers achieve their business objectives. To succeed, we must understand our customers’ businesses and dependably deliver what they value most. To achieve this we understand that people are the Company’s most valuable resource. We possess immense powers of innovation, imagination, skill – and a desire to accomplish something of significance. Working as a team allows all of

us to realize our full potential. We recognize and enthusiastically accept our responsibility to the communities we serve, through acting as a good neighbor and through involvement and support for community activities. We maintain a corporate culture that values originality, invention and creativity, and that nurtures these qualities through openness and reverence for the entrepreneurial spirit. The Company’s willingness to take risks in deploying new technology and investing in large capital projects is central to our culture and our success. We continuously collaborate with our customers and within our teams to discover and apply safer, better, faster and more cost-efficient ways to provide the services our customers value.

Editorial

Texas and North American Energy Security by Chris Faulkner, President & CEO Breitling Oil & Gas

If you want to take the pulse of America’s progress toward energy independence, look to its beating heart: Texas. Texas alone now produces more oil than the U.S. imports from Saudi Arabia, and, according to the International Energy Agency (IEA), the U.S. should be producing more oil than Saudi Arabia by 2020. Texas Drives, Mirrors U.S. Quest for Energy Independence Like others across the nation, the shale plays in Texas have not only pumped out high production numbers, but have shown that there’s still a lot of life left in them as new techniques and technologies continue to unlock formerly inaccessible reserves. The Eagle Ford shale, for example, looked like it was on its last legs in 2008 and now is one of the most active plays in the U.S., behind only the Permian Basin and the Bakken in number of active wells. Like Eagle Ford, the Permian Basin shale plays are still full of surprises and extraordinary promise. Experts now believe the Wolfcamp source rock of the Permian Basin could be one of America’s biggest oil discoveries, with more pay zones than any shale oil play in the U.S. The Eagle Ford and Permian Basin scenarios have been repeated across Texas and the U.S., with

advancements in exploration and production breathing new life into fields that were faltering or left for dead. Between Eagle Ford, with its mix of natural gas and oil, Barnett’s promise of possibly the largest producible natural gas reserves in the U.S., and Wolfcamp’s potential as the largest oil reserve in the U.S., the health of the Texas energy boom both drives and mirrors the extraordinary energy boom that’s positioning the U.S. for greater energy security and even independence from foreign oil. Record Production Fast-Tracking U.S. Energy Independence Indeed, the U.S. Department of Energy says that U.S. has reached its highest production level in 20 years, and in the first nine months of 2012 America met 83 percent of its energy needs, with production growing at the fastest pace in U.S. history. A new production record may be set in 2013; the IEA foresees the U.S. becoming a net oil exporter by 2030.

Experts now believe the Wolfcamp source rock of the Permian Basin could be one of America’s biggest oil discoveries, with more pay zones than any shale oil play in the U.S. continued overleaf

Oil & Gas Awards 2012

Editorial: Texas and North American Energy Security Continued from page 11

Add America’s Western allies Canada and Mexico to the mix, and you have a Western Hemisphere energy alliance that will not only be free of dependence on oil from the Middle East, but one that would provide some stability and balance to world markets. Add America’s Western allies Canada and Mexico to the mix, and you have a Western Hemisphere energy alliance that will not only be free of dependence on oil from the Middle East, but one that would provide some stability and balance to world markets. Canada happens to be home to the world’s second largest proven oil reserves and is the world’s third largest producer of natural gas. By increasing its own production of oil and gas and importing more from Canada and Mexico, the U.S. can free itself of dependence on oil and gas from hostile nations. U.S. Trade with Western Allies Brings Other Perks, Along with Energy Independence The U.S. also enjoys more equitable trading partnerships with Canada and Mexico than it does with

Oil & Gas Awards 2012

countries in the Middle East. For example, Canada “buys back” about ninety cents of every dollar in goods and services that the U.S. buys from Canada; oil exporting countries in the Middle East buy back less than a third of that amount. The U.S. and Mexico have formed a mutually beneficial relationship, with Mexico exporting most of its oil production to the U.S., then importing 60 percent of its gasoline back from the U.S. By working to increase U.S. gas and oil production to its fullest potential, while partnering with Western allies that foster healthy trade practices and increase U.S. competitiveness in the global market, the U.S. can finally be free of the undue influence and volatility nurtured by Middle Eastern governments hostile toward the U.S. and its allies.

Chris Faulkner is the Founder, President and CEO of Breitling Oil and Gas, an independent oil and natural gas company based in Irving, Texas. Founded in 2004, Breitling Oil and Gas employs state-of-the-art petroleum and natural gas exploration and extraction technologies for the development of onshore oil and gas projects.

Oil & Gas Awards 2012

consultancy of the Year

Winners page

WINNER

CONSULTANCY OF THE YEAR Northeast

Navigant Consulting Navigant (NYSE: NCI) is a specialized, international consulting firm combining deep industry expertise and integrated solutions to assist companies and their legal counsel in enhancing stakeholder value, improving operations, and addressing conflict, performance and risk related challenges. The Company focuses on industries undergoing substantial regulatory or structural change, including the energy industry.

Our global perspective uniquely positions us to provide both domestic and international expertise in strategy and planning, market analysis, regulatory advisory, commercial negotiation and independent due diligence.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com

Oil & Gas Awards 2012

Navigantâ&#x20AC;&#x2122;s Energy Practice includes more than 350 experts focused on issues across the entire energy value chain including natural and unconventional gas, renewables, climate change, energy efficiency, demand response, emerging technologies, generation, resource procurement, transmission, markets, performance improvement, fuel sourcing, rates and regulation. Navigantâ&#x20AC;&#x2122;s natural gas and liquefied natural gas experts provide clients with insight into energy business strategies, project transactions, financing, operations, trading and marketing. Our global perspective uniquely positions us to provide

both domestic and international expertise in strategy and planning, market analysis, regulatory advisory, commercial negotiation and independent due diligence. The North American Natural Gas Supply Assessment, released in July 2008, established Navigant as the leader in the area of natural gas shale and unconventional gas in North America. In mid-2010, Cheniere Energy engaged Navigant to provide an analysis that would be used by Cheniere for its groundbreaking application to the DOE for approval to export of LNG from Cheniereâ&#x20AC;&#x2122;s Sabine Pass LNG export project in Texas.

Engineering company of the Year

Winners page

WINNER

ENGINEERING COMPANY OF THE YEAR Rocky Mountain

Strategy Engineering and Consultancy Strategy Engineering is the leader in providing project management, engineering, drafting/design, procurement, inspection, construction management, technical writing and computerized maintenance management systems for all your onshore and offshore project needs.

Strategy tailors its services to each customer to assist with budget forecasting, scheduling, planning, permitting, engineering, procurement, inspection and construction management.

Our team has designed offshore platforms up to 1,200 foot water depth as well as topsides on deep water floating facilities. Our offshore capabilities include: production facilities and platforms, SEMS documentation, field planning, facility and platform modifications, offshore decommissioning programs, pipeline abandonment and removals, facility modifications for sub-sea tiebacks and FEED studies. We have also built substantial onshore engineering experience in the Eagle Ford area. We continue to support our clients and show innovative ways to standardize designs for well pad sites as well as 4,000, 10,000 and 30,000 BOPD stabilizer facilities. Some of our onshore projects include: processing facilities, sour and corrosive gas treating facilities, compressor stations, pump stations and condensate/oil stabilization facilities.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com

Over the past few years, we have continued to grow our pipeline and interconnect division. Strategy tailors its services to each customer to assist with budget forecasting,

scheduling, planning, permitting, engineering, procurement, inspection and construction management. Our pipeline and interconnect capabilities include, but are not limited to: interstate/intrastate transmission exchanges, local distribution companies, power plants, fuel gas systems and processing plants. Strategy has a Computerized Maintenance Management System (CMMS) division that was created to assist our clients in their operations and maintenance functions. Our experienced staff of maintenance, operations and technology experts can help implement a CMMS software package to fit an organizationâ&#x20AC;&#x2122;s level of detail and functionality. A quality CMMS maintains a computer database of information about an organizationâ&#x20AC;&#x2122;s assets and maintenance operations. Strategyâ&#x20AC;&#x2122;s technical writers are experienced professionals from the industry who have been given technical writing training and are able to create documents for regulatory compliance, day to day operations and maintenance procedures.

Oil & Gas Awards 2012

Editorial

Fueling the Future: Natural Gas as the Alternative Fuel of Choice Norman Herrera, Chesapeake Energy Corporation, Director of Market Development

With today’s gasoline and diesel prices, natural gas has an opportunity to complement – if not compete with – traditional transportation fuels. Significant progress has been made to encourage adoption, and the market is moving at a rapid pace. Natural gas as a transportation fuel practically sells itself – at half the cost of gasoline, lower emissions, and support for a domestic product – but many wonder if the fuel can be mainstream due to infrastructure and vehicle availability questions. Infrastructure Update Currently the U.S. has more than 1,000 natural gas filling stations and interest is growing among fueling retailers. According to the Convenience Store News 2012 Motor Fuels Study, just 1.7 percent of retailer respondents currently sell natural gas, but 21.9 percent plan to sell it in 2017. That’s a more than tenfold increase in five years. The majority of compressed natural gas (CNG) station growth is occurring in areas with natural gas exploration and production. My home state of Oklahoma has seen rapid station adoption in the last three years. Nearly 100 public stations are open or in the planning stages, and it is now possible to drive across the state on CNG. The fuel sells for as low as 99 cents per gasoline gallon equivalent thanks to retailers such as Love’s Travel Stops and Country Stores, OnCue and Hutch’s.

To accelerate the transition to natural gas, Chesapeake Energy Corporation subsidiary Peake Fuel Solutions and General Electic introduced CNG In A Box™. CNG In A Box is a plug-and-play system for retailers and fleet managers interested in easy access to CNG. The compact system connects to a utility natural gas line and incorporates all of the necessary equipment for offering CNG refueling. Liquefied Natural Gas (LNG) availability is also growing because of investments by leading truck stop operators such as Pilot Flying J and Travel Stops of America, working with market leaders such as Clean Energy Fuels. Clean Energy, with support from Chesapeake, pledged to open 150 fueling stations across more than 30 states along interstate highways. Named “America’s Natural Gas Highway,” this network of LNG

To accelerate the transition to natural gas, Chesapeake Energy Corporation subsidiary Peake Fuel Solutions and General Electic introduced CNG In A Box™

Oil & Gas Awards 2012

The Chrysler Group announced plans to produce factory manufactured heavy-duty bi-fuel trucks last year and General Motors continues to sell its bi-fuel pickup trucks and vans.

stations will serve robust trucking corridors, as well as several major metropolitan areas. Additionally, last year Shell announced a partnership with TravelCenters of America to build and operate at least 200 natural gas fueling lanes for heavy-duty trucks along the interstate system. NGV Availability and Affordability While I am certainly an advocate for natural gas as a transportation fuel, I also recognize the investment necessary to convert vehicles and complete the other side of the equation. Fortunately, the natural gas vehicle market is at a major turning point. The “big three” automakers and Honda Motor Company have endorsed CNG, with fleet vehicles driving demand and increasing consumer options. The Chrysler Group announced plans to produce factory manufactured heavy-duty bi-fuel trucks last year and General Motors continues to sell its bi-fuel pickup trucks and vans. Meanwhile, Ford Motor Company has identified several Qualified Vehicle Modifiers that use Ford CNG engines for conversions of Ford vehicles to natural gas. On the passenger vehicle side, Honda continues to sell its dedicated natural gas Civic at more than 200 dealerships in 38 states. Green Car Journal ranked it the 2012 Green Car of the Year. Costs for natural gas vehicles will continue to decrease as adoption

and economies of scale increase, and equipment is manufactured at lower costs. Chesapeake and 3M’s partnership to develop a lower cost, higher performance portfolio of CNG fuel storage tanks is an example of market progress. Since the fuel tank is the most expensive single component of a natural gas vehicle, less expensive tanks – with more fuel storage capacity – will enable greater adoption across all sectors. 3M’s newly certified tanks deliver both.

applications, and there is significant anticipation for the launch of Cummins Westport’s 12-liter engine later this year. The dual-fuel market continues to develop as well, with Peake Fuel Solutions launching Diesel Natural Gas (DNG) – an EPA-certified conversion kit that allows heavyduty trucks to run on a mixture of diesel and up to 70 percent CNG or LNG. If neither natural gas fuel is available, the trucks can switch to 100 percent diesel.

When talking economies of scale we must note the leadership of 22 governors in support of natural gas as a transportation fuel. Through an initiative led by Oklahoma Governor Mary Fallin and Colorado Governor John Hickenlooper, the states issued a request for proposal (RFP) to automakers to produce lower-cost natural gas vehicles for use by state fleets. The RFP required that the vehicles be comparably priced to gasoline models and carry the same reliability and warranty standards. So far, the RFP results have been positive and appealing at even the county and municipal fleet levels. For example, Oklahoma’s natural gas vehicle purchase price dropped 10 to 20 percent, and the state has ordered more than 200 vehicles soon to be operating on Oklahoma roads.

What the Industry Can Do

There has also been market movement on the heavy-duty side. Several engine manufacturers are marketing natural gas engines for commercial transportation

Just as the dairy farmer should drink his or her own milk, our industry must support both supply AND demand. We need to show support and strength for our product before we can expect others to consider it for their operations. One tangible step industry peers can take is to convert their fleets to run on natural gas. Not only does conversion offer economic and environmental benefits, but it can help propel infrastructure growth by guaranteeing fueling traffic. Chesapeake is currently converting its 4,000-plus fleet to natural gas. Once the conversion is complete, we expect to save more than $10 million annually on fuel costs alone. Now is the time for our industry to show leadership and create attractive business opportunities for those outside of oil and natural gas to further spur market growth and demand.

Oil & Gas Awards 2012

Discover the Gold Spur Trucking Difference.

Gold Spur Trucking is committed to being the trucking company that delivers. Not only petroleum hauling and crude oil logistics, but quality service, innovation and customer satisfaction. Backed by an industry-leading technology infrastructure and a dispatch thatâ&#x20AC;&#x2122;s available 24/7, Gold Spur is your choice for safe, on-time, courteous and cost-effective trucking.

We Deliver.

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Oil & Gas Awards 2012

Trucking company of the Year

Winners page

WINNER

TRUCKING COMPANY OF THE YEAR Rocky Mountain

Gold Spur Trucking Gold Spur Trucking’s philosophy is simple: maximize resources & minimize costs. Gold Spur Trucking is a leading North American fluid logistics and dedicated fleet services provider supporting oil and gas exploration and production activities in Texas and North Dakota. The Company focuses on logistics services for crude oil for blue chip E&P companies located within the Company’s operating footprint. The Company is headquartered in Universal City (San Antonio), Texas.

The Company’s unique approach to fluid logistics, which includes the use of a proprietary technology infrastructure to increase the efficiency and effectiveness of Gold Spur’s operations, has provided the Company with the ability to handle mission-critical services for its customers.

Historically, the Company has primarily focused on water logistics, but with the acquisition of new key customers in additional E&P basins, the Company has turned its growth focus toward crude oil logistics. The Company’s unique approach to fluid logistics, which includes the use of a proprietary technology infrastructure to increase the efficiency and effectiveness of Gold Spur’s operations, has provided the

Company with the ability to handle mission-critical services for its customers. Gold Spur prides itself on exceptional customer service and a continued commitment to meeting its customers’ needs. Gold Spur employs 250 with a fleet of 110 companyowned trucks & 150 tankers. Vision, resourcefulness, commitment, integrity and many hard-working, loyal employees have all been integral in building a truly successful business. Gold Spur Trucking continues to grow and meet head on whatever logistical or customer challenge is placed in front of them.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com

Oil & Gas Awards 2012

Insurance provider of the Year

Winners page

WINNER

INSURANCE PROVIDER OF THE YEAR Rocky Mountain

Aon Corporation Global risk is increasing and becoming ever more complex, particularly within the energy sector. From upstream to downstream operations, the industry faces increased risk from a long list of sources including more remote exploration, deeper wells and water, greater civil liability, regulatory and political risks. These risks are amplified as companies face higher capital expenditures to complete new projects while dealing with the volatility in the commodity and financial markets. Aon Risk Solutions Energy has the expertise to develop insurance and risk management programs to help you understand, quantify, and mitigate your risk.

Recent losses in the sector have highlighted the need for effective insurance and risk management programs. The last thing that an organization needs in the middle of a crisis is to find out that the insurance they were relying upon is anything other than completely effective. Aon Risk Solutions Energy has the expertise to develop insurance and risk management programs to help you understand, quantify, and mitigate your risk.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com 20

Oil & Gas Awards 2012

Our exclusive focus on the energy industry enables us to have dedicated professionals that look after clients in a variety of energy sectors including Upstream, Major integrated and national oil and gas companies, Midstream, Contractors, Downstream and Mining.

Obtaining the broadest coverage at the most competitive rates in a niche market requires the skills of a firm that is active in the energy market every day. The vast amount of business we place in the energy market enables us to establish broader policy terms and conditions and competitive pricing for our clients. Energy claims are complex and our clients benefit from the knowledge and experience of our dedicated claims team. In the event of a claim we work on your behalf with the insurance markets and the legal sector to facilitate a prompt and satisfactory resolution.

Law firm of the Year

Winners page

WINNER

LAW FIRM OF THE YEAR Rocky Mountain

Baker Botts Our experience is rooted in the energy, technology, life sciences sectors and though we have many other clients in various industries, regardless of the size, sector or jurisdiction of a client, our commitment is to help them achieve their business objectives.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com

Baker Botts is a globally respected law firm with offices around the world. Since 1840, we have provided the highest ethical and professional standards combined with our reach and depth of understanding of the law to deliver more innovative solutions for our clients. We have a deep understanding of a broad range of issues, including many of the most complex matters facing our clients. We understand the industries we work in and the issues and concerns that define those industries. As a result, we provide innovative and effective solutions that are comprehensive to protect our clients’ business interests and flexible to respond to any challenge. Because we take the time to know you and your industry, we can develop effective strategies and deliver high-value, high-quality services that respond to the demands of an ever-changing business world. Baker Botts lawyers represent producers, processors, transporters, distributors and marketers of all forms of energy — oil, natural gas, natural gas liquids, coal, traditional and renewable power and alternative fuels — as well as a number of service companies that

support these areas. As a “go-to” energy firm, clients expect Baker Botts to anticipate what it will take to minimize risk, protect assets and enhance reputations when dealing with the rapid growth and heightened scrutiny of the energy industry. For over 170 years, Baker Botts has delivered results-oriented services to establish us as one of the world’s leading law firms. Our leadership in the profession is complemented by our tradition of leadership in government, the judiciary and our communities. Our experience is rooted in the energy, technology, life sciences sectors and though we have many other clients in various industries, regardless of the size, sector or jurisdiction of a client, our commitment is to help them achieve their business objectives. Deeper Understanding. Better Solutions. BakerBotts.com.

Oil & Gas Awards 2012

Editorial

Should Oil Companies Go Green? By Greg Lorson, CEO, TEEMCO

“So we have a choice to make. We can remain one of the world’s leading importers of foreign oil, or we can make the investments that would allow us to become the world’s leading exporter of renewable energy. We can let climate change continue to go unchecked, or we can help stop it. We can let the jobs of tomorrow be created abroad, or we can create those jobs right here in America and lay the foundation for lasting prosperity.” - President Obama, 2010

The administration’s (and ergo the EPA’s) attitude towards the oil industry seems to be thinly veiled contempt. The president’s pledge to make our country hydrocarbonfree is driven by environmental concerns. Hydrocarbons are a hazardous substance however the technology doesn’t exist to accomplish the president’s goal. In the meantime the oil industry must contend with increasingly difficult environmental regulations. We may never be hydrocarbon free, but with effort, we may become pollution free… which is really the point after all. American oil companies have led the world’s energy industry. With the right mindset, these same oil companies can lead the world to a pollution-free energy industry. Some of this nation’s greatest scientists, business minds, and innovators are found

at oil companies. Today’s political and regulatory threats viewed with a positive mindset, present a challenge for the industry to; instead of facing destruction-byregulation, find opportunity and future growth. The “green” movement is a wave that’s been building for thirty years in this country. With the election of the Obama administration, it’s become a tsunami. Is this good or bad? Either way it’s a challenge. U.S. Energy Consumption and Pollution We’ve all heard that the United States represents 4% of the world’s population and consumes 25% of the world’s energy. The popular press portrays the United States as a polluting giant with a small percentage of the world’s population hogging the biggest share of the world’s energy. They

continued overleaf The “green” movement is a wave that’s been building for thirty years in this country. With the election of the Obama administration, it’s become a tsunami. Is this good or bad? Either way it’s a challenge. 22

Oil & Gas Awards 2012

A huge

thank you

to our sponsors

Oil & Gas Awards 2012

Editorial: Should Oil Companies Go Green? Continued from page 22

The United States was ranked 23rd greenest out of 141 countries studied. Again the U.S. far outranked all its industrial peers except Germany (ranked 21st).

would have us believe at the heart of this are oil companies and their “obscene” profits. Do you sometimes begin to feel guilty? Before you renew your Prozac prescription, consider the following: According to the U.S. Central Intelligence Agency, the United States is the third largest population (behind China and India) occupying the fourth largest country (by land mass) in the World. World Bank records show the United States easily has the largest economy with a gross domestic product over $14 trillion, dwarfing our nearest rival Japan’s $5 trillion. We export much of what we produce to benefit the rest of the world. Some environmental pundits and some of our leaders believe 4% of the world’s population consuming 25% of the world’s energy is a point of shame. This writer believes it should be a point of pride. It takes a lot of energy to provide power to the world’s third largest population occupying a giant land mass; a population that’s working hard to produce goods for the entire world. Many countries actually consume far more energy than the U.S. on a per-capita basis. The United States isn’t even ranked in the top ten. The World Resources Institute says Canada, Iceland, and Norway use

Oil & Gas Awards 2012

more energy per-capita than the U.S. It’s not just cold countries with high heating bills either. Trinidad, The Virgin Islands, Kuwait, and Qatar all consume more energy per capita than the U.S. and this is just a partial listing. None of these countries produce even a fraction of the goods that the United States produces for the benefit of the other 96% of the world’s population. Do we pollute? Yes. Are we the worst? Nowhere near. Yale University developed what’s called the Environmental Performance Index (EPI). The EPI uses a proximity-to-target methodology, which quantitatively tracks national performance on a core set of environmental policy goals. It identifies specific targets and measures the distance between the target and current national achievement. The EPI provides both an empirical foundation for policy analysis and a context for evaluating performance. The EPI attempts to balance the “humans first” thinking versus the “nature first” thinking so as to rank countries by their respective environmental health and ecosystem vitality. During the Bush administration, of 149 ranked countries in 2008, the United States was ranked 39th best. Far ahead of its industrial peers with the exception of Germany which was only slightly ahead. Under Obama

in 2010, the U.S. fell to 61st but still outperformed its peers, again with the exception of Germany. The United Nations in conjunction with Yale University, the Center for International Earth Science Information Network at Columbia University, and the World Economic Forum developed a scoring system called the Human Development Indicators (HDI) which ranked the world’s greenest nations in 2008. The United States was ranked 23rd greenest out of 141 countries studied. Again the U.S. far outranked all its industrial peers except Germany (ranked 21st). The Energy Information Administration of the US Department of Energy has yet another scoring device. This score compares air pollution to the size of the economy. It measures a nation’s carbon footprint in terms relative to its gross domestic product. Known as World Carbon Intensity, the United State’s carbon intensity for its economy was higher (ranked worse) than Japan’s and Germany’s. However the U.S. was still in the best 30% worldwide. Pollution is a world problem. Given our economic productivity and favorable carbon footprint; the United States is more part of the solution than most of the other 96% of the world.

About the Author

Environmental Regulations The solution is sound environmental policies and best management practices adopted by oil companies. U.S. Vice Admiral James Stockdale, Navy Pilot and POW during Vietnam went on to serve (among many achievements) as president of the Naval War College. He said: “You must never confuse faith that you will prevail in the end – which you can never afford to lose – with the discipline to confront the most brutal facts of your current reality, whatever they might be.” The reality is, some oil companies have polluted triggering multiple actsof-congress and regulators to control the industry as a whole. The likelihood of these regulations ever abating is extremely low. The Future Growing up in the oil industry (my father was an engineer for Phillips for over thirty-years, my grandfather and great grandfather were independent producers), I appreciate the notion of legacy. I hope to leave a legacy for my children in the form of a greenenergy oil company. We all have that opportunity. Rather than fighting regulation, we can embrace change.

Some oil companies have started to do so. Many leading companies have won awards from the EPA for their achievements in protecting the environment. Marathon, Chesapeake, Occidental, and ConocoPhillips are just a few of the dozens of companies recognized by the EPA.

Currently CEO of TEEMCO, the largest (by market share) professional environmentalengineering firm for the oil & gas industry. Lorson is a fourthgeneration oilman with thirty years in oil & gas, real estate and investment banking. Previously the CEO of a national company; he’s also been a member of corporate & charitable boards. Appointed by governors from six states to advise on environment, taxes, energy, and economic development; Lorson has served on various state & federal commissions. Professional environmental certifications include: •

C.E.S. Certified Environmental Specialist

•

C.E.S.C.O. Certified Environmental & Safety Compliance Officer

•

R.E.M. Registered Environmental Manager

Our industry is being challenged to accept its role in protecting the environment. It’s a challenge we can meet.

•

C.E.A. Certified Environmental Auditor

•

Emergency Response Manager FEMA Certified

As American oil companies have led the worlds’ energy industry, we are perhaps the best suited to find a lasting solution to world’s energy and pollution dilemma. The American oil industry has the human, financial, and technological resources to lead our nation and the world in eliminating pollution.

•

National Registry of Environmental Professionals

•

Licensed Water Treatment Operator

The energy industry is the oil company’s rightful legacy. It’s in the oil industry’s enlightened self-interest to claim the green movement. As Admiral Stockdale said, we should “confront the most brutal facts” of our current reality. The future is ours to claim; using oil as our foundation to build legacy green-energy companies for ourselves and future generations.

Mr. Lorson was appointed as a delegate to the United Nation’s Conference on International Oil Development and is a published business author. His undergraduate study was in finance at the University of Oklahoma, graduate studies in business & anthropology at Harvard, and holds a postgraduate certificate in Business Administration from Edinburgh Graduate Business School. He is a member of numerous professional associations and serves on committees for the Pennsylvania Independent Oil & Gas Association, the API, and the ASTM.

Oil & Gas Awards 2012

Water management company of the Year

Winners page

WINNER

WATER MANAGEMENT COMPANY OF THE YEAR Rocky Mountain

AbTech Industries AbTech Industries, Inc., a developer and manufacturer of patented innovative water management solutions and technologies addressing issues of water pollution and contamination, has generated a great deal of interest since debuting in the oil and gas sector last year. AbTech has already won 2012 Technology Innovator at the Third Annual World Shale Oil & Gas Awards, as well as worked with some of the biggest companies in the industry. AbTech Industries believes in improving water recycling efficiency, to enable growth in the shale oil and gas industry, and bring potential cost savings to production site operations.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com

AbTech’s Produced Water PreTreatment Systems combine bestof-breed available technologies, innovative systems engineering, and AbTech’s proprietary Smart Sponge® de-oiling technology to remove oil and other contaminants from frac and produced water at well sites or at water treatment plants at natural gas production sites. The pretreatment system employs a three-stage process for oil recovery, de-oiling, and VOC air stripping, offering operators and oilfield service companies natural gas producers a complete solution that works with and protects any downstream produced water treatment systems being employed in the field. Proven to remove up to 99.9% of hydrocarbons from produced and frac water, AbTech’s Smart Sponge® media also has a high BTU value once saturated, and

has the potential to be used as an energy source to provide power and heat for field operations fuel fracking operations. AbTech Industries is committed to providing the oil and gas industry with cost-effective solutions to meet their sustainability goals, compliance requirements, and operational needs. AbTech leverages over 15 years of experience and over 15,000 installed sites in advanced water treatment technologies and specifically hydrocarbons removal. AbTech Industries believes in improving water recycling efficiency, to enable growth in the shale oil and gas industry, and bring potential cost savings to production site operations. AbTech’s oil & gas segment office is located in Houston, Texas.

Oil & Gas Awards 2012

MAN MANUFACTURING Congratulations & 14345 HWY. 385 to the 2012 Rocky Mountain Winners 719-767-502 SALES

WINNER

TRANSACTION OF THE YEAR Rocky Mountain

14345 HWY. 385 CHEYENNE WELLS, CO

719-767-5020 719-343-5800 consultancy Corporate Social Resonsibility

Industry 719-767-5020 719-343-5800 Supplier

Insurance Provider

Protecting Assets. Making a Difference.

Law Firm

Drilling & Well Services

Manufacturer E&P

MANUFACTURING & SALES

14345 HWY. 385 CHEYENNE WELLS, CO

719-767-5020 719-343-5800

14345 HWY. 385 CHEYENNE WELLS, CO

Midstream

719-767-5020 719-343-5800

Recruitment Agency

Environmental Initiative

TERMINAL Future Industry Leader

Megan Starr Transaction

Health & Safety Initiative

Industry Leader

Trucking

Mark Peterson, Westcon

Water Management

The Rocky Mountain Oil & Gas Awards were held on March 12, 2013 at The Grand Hyatt, Denver. Should your organization have operations in this region you should consider telling our judges about your achievements. Please visit www.oilandgasawards.com for full details on all the winners, videos and photos from the Awards. 28

Oil & Gas Awards 2012

14345 HWY. 385 CHEYENNE WELLS, CO

719-767-5020 719-343-5800

Engineering

Congratulations

WINNER

to the 2012 Northeast Winners TRANSACTION OF THE YEAR Rocky Mountain

Industry Leader

ConsTRUCTION

consultancy

Industry Supplier

Corporate Social Resonsibility

Insurance Provider

Drilling & Well Services

Law Firm

E&P

Manufacturer

Engineering

Midstream

Environmental Initiative

Recruitment Agency

Future Industry Leader

Tom Lopus

Chad Gorman

Transaction

Trucking Health & Safety Initiative Water Management

The Northeast Oil & Gas Awards were held on March 14, 2013 at The Westin Convention Center, Pittsburgh. Should your organization have operations in this region you should consider telling our judges about your achievements. Please visit www.oilandgasawards.com for full details on all the winners, videos and photos from the Awards. Oil & Gas Awards 2012

Health & Safety initiative of the Year

Winners page

WINNER

HEALTH & SAFETY INITIATIVE OF THE YEAR Rocky Mountain

Industrial Scientific Corporation Industrial Scientific Corporation is the world’s leading provider of Gas Detection as a Service. With more than 965 people working in 22 countries, Industrial Scientific is dedicated to eliminating death on the job in this century. Achieving this goal requires dedication to delivering highest quality and best customer service in all transactions.

Industrial Scientific has operations based in Pittsburgh (USA), Arras (France), Dortmund (Germany) and Shanghai (China).

iNet®, Industrial Scientific’s Gas Detection as a Service solution, keeps workers safer by providing visibility into gas detector alarms, exposure and usage. This softwarebased service solves common challenges faced in gas detection programs related to maintaining reliable equipment, and ensuring proper usage of instruments in the field. There are more than 90,000 gas detectors in more than 25 countries across a wide range of industries, including oil & gas, operating on iNet today. Industrial Scientific has operations based in Pittsburgh (USA), Arras (France), Dortmund (Germany) and

Shanghai (China). The company provides technical services to customers from local service centers around the world, and has additional offices in Australia, Belgium, Brazil, Canada, Chinese Taipei, Czech Republic, India, Indonesia, Italy, Netherlands, Panama, Poland, Qatar, Russia, Singapore, Thailand, United Arab Emirates and the United Kingdom. Industrial Scientific is the parent company to Oldham (www. oldhamgas.com) and Predictive Solutions Corporation (www. predictivesolutions.com). For more information, visit www.indsci.com.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com

Oil & Gas Awards 2012

Fast-Paced Industry Sweeping changes and a reset energy future make the news and analysis found in each issue of AOGR, as well as the exclusive online information found at www.aogr.com, all the more important! As independent operators accomplish what once was deemed impossible, AOGR is with them every step of the way. It is the one and only source that integrates the business, financial and technical information that busy executives and operations managers need to hone their skills and make the right decisions. For your 2013 Media File, please call 1-800-847-8301 today!

www.aogr.com

Integrated Communications Oil & Gas Awards 2012

Oil & Gas Awards 2012

Editorial

Marathon Oil Corporation At a time when much of America is still struggling to put people back to work, generate revenue for local, state and federal treasuries and attract large, capital investments, the Eagle Ford Shale has transformed south Texas into a model of economic growth for the rest of the country. Amid all the activity and excitement, we find ourselves at a critical moment in time. Without question, we’re fortunate to be in the midst of an energy supply revolution, due largely to the application of advanced technology and continued innovation in the oil and gas industry. But we also face significant social, environmental and geopolitical challenges that have accompanied this growth. If we’re going to deliver on the promise of the Eagle Ford, we must recognize, embrace and commit ourselves to developing solutions for dealing with these many challenges. Doing so in a vacuum will only spell failure. All stakeholders – local communities, operators, regulators and elected officials, to name a few – must continue to work in a spirit of cooperation if we’re going to further advance this opportunity and realize the full potential, and the full benefits, of these vast resources. We’ve made significant progress, but there’s still much work to be done.

At Marathon Oil, we’re proud to be a part of the Eagle Ford Shale equation. This asset is a priority for us, and our investment reflects that. For 2013, we’ve allocated $1.9 billion, or more than one-third of our overall budget, to the Eagle Ford. The economics and well performance we’re achieving in the Eagle Ford, along with our ability to drive efficiencies, make this play a focal point of our growth strategy. As an industry, our progress is tied directly to our ability to assure local communities we can deliver energy and economic security simultaneously, and that we’ll be able to do so in a safe and environmentally responsible manner while balancing impacts on infrastructure. We certainly don’t have all the answers, but we’re working diligently to tackle pressing issues such as traffic and road safety, workforce training and water use. What’s more, we’re addressing these challenges in collaboration with stakeholders who represent all walks of life in the many communities that make up the region.

For 2013, we’ve allocated $1.9 billion, or more than one-third of our overall budget, to the Eagle Ford. continued overleaf

Oil & Gas Awards 2012

Editorial: Marathon Oil Corporation Continued from page 33

Clearly, south Texas is experiencing a positive transformation that can manifest itself in many ways -- more and better paying jobs, improved infrastructure that includes better roads, better schools and other public services.

An excellent example is the ongoing work by Texas Railroad Commissioner David Porter and his Eagle Ford Task Force, a forum established by Commissioner Porter to open lines of communication among a diverse set of stakeholders that includes operators, local government leaders and the environmental community. Another notable development is the launch of the South Texas Energy and Economic Roundtable – better known as STEER – an industry association formed to serve as a one-stop educational resource and liaison with local officials, residents, the media and other stakeholders. Marathon Oil and other operators are helping to promote safe driving

Oil & Gas Awards 2012

through a number of initiatives, and we’re partnering with colleges, school districts, workforce development groups and recruiters to help both individuals and local businesses adapt to the current job market. We’re also very conscious about concerns over water use in oil and gas operations, and how that might impact supplies. Marathon Oil is committed to minimizing our use of fresh water and we estimate that less than 3 percent of the water used in our current Eagle Ford operations is categorized as drinking water. We’ve also significantly reduced the amount of water we’re using in our hydraulic fracturing operations by employing a polymer gel mix –

commonly used in ice cream and other foodstuffs -- to produce a thicker, more viscous fluid. Clearly, south Texas is experiencing a positive transformation that can manifest itself in many ways -- more and better paying jobs, improved infrastructure that includes better roads, better schools and other public services. But even beyond these benefits, what’s being created is a spirit of progress that will allow people to build a future for themselves and their families -- a future in which people have the ability to pursue broad opportunities right here at home in Texas.

Drilling & Well services company of the Year

Winners page

WINNER

DRILLING & WELL SERVICES COMPANY OF THE YEAR Rocky Mountain

C&J Energy Services

C&J Energy Services was founded in 1997 and the company soon established itself as a premium provider of hydraulic fracturing, coiled tubing and pressure pumping services.

Sponsored by: Lake Truck Lines In 1949, Joe P. Cain, Sr. established Lake Truck Lines in Houston, Texas. In 1982, Douglas Cain decided to take over where his father had left off. The company has experienced unparalleled growth over the past ten years and is now headquartered in San Antonio with terminals throughout the Eagle Ford, Permian Basin and Gulf Coast Regions.

C&J Energy Services, Inc. is a rapidly growing, independent provider of premium hydraulic fracturing, coiled tubing, wireline and other complementary completion services with a focus on complex, technically-demanding well completions and production enhancement. We also provide pressure pumping and other related well stimulation and workover services in connection with our core offerings. Additionally, with the acquisition of Total Equipment and Service in April 2011, we commenced our equipment manufacturing business. In addition to manufacturing equipment used in the energy services industry, through Total we provide equipment repair services and sell oilfield parts and supplies to third-party customers in the energy services industry and to meet our own internal needs. C&J Energy Services was founded in 1997 and the company soon established itself as a premium provider of hydraulic fracturing, coiled tubing and pressure pumping services. We significantly expanded our service offering with the acquisition of Casedhole Solutions in June 2012. Casedhole Solutions provides a broad range of services that cover the full life of the well, from drilling and completion to production, and

to plug and abandonment. These services include perforating, pipe recovery, wireline logging, pressure pumping and wellsite make-up and pressure testing. Our expert crews utilize the most advanced equipment and are extensively trained to provide best-in-class performance with the utmost efficiency and safety. Our approach is distinctly designed to deliver the best possible results, at the lowest cost, in the least amount of time. We operate in what we believe to be some of the most geologically challenging basins across the United States. Although our operations were historically focused in Texas, Louisiana and Oklahoma, Casedhole provided us with an expanded geographic presence in many of the most active areas for oil and gas exploration and production activity in the United States. Oil & Gas Awards 2012

Recruitment Agency of the Year

Winners page

WINNER

RECRUITMENT AGENCY OF THE YEAR Rocky Mountain

NES Global Talent Established in 1978, NES Global Talent is an award-winning manpower specialist that has placed 73 different nationalities into 69 countries across the oil and gas, power and infrastructure sectors worldwide.

Our consultants are discipline specific, meaning that they truly know the sector they work in and are ideally placed to find and represent the best in global talent in highly specialised areas such as fracking and subsea.

Further information on these winning organizations, interviews and photos can be viewed at www.oilandgasawards.com

Oil & Gas Awards 2012

Our global network of offices have been opened strategically within oil and gas hubs to mirror the geographical footprint of our key clients, meaning we can deliver the challenging staffing projects that others cannot fulfil in the locations where we are needed most. NES Global Talent has opened 20 new offices outside the UK since 2004. That strategic decision to grow the business by often entering new and unfamiliar territories illustrates a real commitment to our global clients and candidates and has enabled us to continue our sustainable growth. In North America, we have operations in a number of oil and gas hotspots including Houston and Calgary. Our consultants are discipline specific, meaning that they truly know the sector they work in and are ideally placed to find and represent the best in global talent in highly specialised areas such as fracking and subsea.

The continued success of NES Global Talent can be largely attributed to a company-wide focus on our value proposition – guaranteed staffing solutions, engineered from the global talent pool, by discipline specific consultants – which demonstrates the company’s commitment to delivering an exceptional service. The relationships we have are fundamental to our business and we work hard to put clients and candidates at the heart of everything we do. We provide a whole spectrum of support services to clients ranging from payroll through to a complete recruitment process outsourcing service. As well as an array of great global job opportunities, we offer a range of additional support to our contractors including global healthcare insurance, visas, security and travel and mobilisation support, all designed to make finding and starting a new job an easy experience.

Are you getting the service and value that you deserve from your current oilfield transportation partner? At Lake Truck Lines, we understand that our business is to take care of your business. All of our trucks are connected to the NexTraq Fleet Tracking System â&#x20AC;&#x201C; so you are always one click away from knowing the real time location of every shipment. If you need bulk, pallet or liquid delivered on-time and on-target â&#x20AC;&#x201C;

Lake Truck Lines is the Solution.

Oil & Gas Awards 2012

North American M&A could heat up with political certainty, technological know-how

Energy M&A should heat up this year as concerns over potential regulatory and tax changes for the exploration and production industry begin to calm, according to industry sources interviewed by mergermarket. Companies that had previously jockeyed for raw acreage are working through drilling inventories and ramping their production, which could create a new set of opportunities. Most buyers, no longer hunting the next big unexplored play, can focus on production and reserve metrics as well as export possibilities. As a result of the end of the “land grab” phase, asset sales, portfolio shuffling, and joint ventures will dominate M&A in upstream exploration and production. Companies from China, Japan, Malaysia, Korea and other Asian countries will continue to ink deals in North America to gain technology and lock up gas supplies, said John Harris, a partner with SNR Denton’s energy practice. In addition to foreign companies, majors and some larger independents are sitting on piles of cash and “have the ability to wait for the right deal,” said Harris. Still, one industry banker noted that stable commodity prices and seller willingness are required

to get deals done, cash hoards notwithstanding. The focus on oil shales will continue as long as gas prices stay low, industry sources agreed. New entrants will have to acquire their way into the Bakken, Utica and California’s Monterey shale, as much of the acreage has been leased. Other up-and-coming shale oil plays that could have a pivotal year in 2013 include the Tuscaloosa Marine Shale, Woodbine and Mississippi Lime, according to mergermarket reports. Horizontal drilling techniques are also being applied to tried and true conventional plays such as the Permian. The corporate M&A market has been tentative. According to previous reports by mergermarket, some oil and gas companies ran formal sale processes in 2012, others had private discussions, and numerous others were viewed by outsiders as tempting targets. Commodity prices have remained relatively stable for a while, and if companies foresee continued stability, there could be a spate of corporate M&A deals

continued overleaf Companies from China, Japan, Malaysia, Korea and other Asian countries will continue to ink deals in North America to gain technology and lock up gas supplies, said John Harris, a partner with SNR Denton’s energy practice. Oil & Gas Awards 2012

Editorial: North American M&A could heat up with political certainty, technological know-how Continued from page 39

With Texas and Louisiana, the Gulf Coast has always been a hotbed of M&A activity. There were 153 deals in the region in 2012, according to mergermarket data, up from 113 the previous year. in the latter half of 2013, said one industry banker. The targets will be smaller to mid-sized independents sitting on good resources, said the banker. Nevertheless, it is hard to predict when buyer and seller price expectations may meet, he cautioned. Energy Services Dormant A mismatch in price expectations has also plagued the energy services subsector. Rig counts have been declining as companies shift away from drilling uneconomic gas acreage, and buyers are wary of paying high multiples. At the same time, most service companies are not stressed, so they see no need to sell at low multiples. Public company buyers are “out there and looking for deals,” said an industry executive, but depressed stock multiples hold down potential

deal valuations. Well-funded private companies may have the edge in acquisition situations, as they have the advantage of being able to pursue growth opportunities that are not immediately accretive, said the executive. Midstream and Downstream The need for infrastructure will continue to drive midstream growth, said Mark Warner, managing director of Natural Resources Investments for the University of Texas Investment Management Company (UTIMCO), which he said aims to “put more money to work” in the midstream arena. M&A should continue to be strong as the sector’s perennial buyers, master limited partnerships (MLPs), are even more attractive to investors hungry for yield, and regulatory risk appears to be

reduced, said an industry banker. Public offerings by MLPs are expected to remain strong in 2013 with nearly a dozen S-1s on file with the SEC. Hot areas for midstream M&A will be gathering and processing systems in mature shale plays, such as the Eagle Ford, Marcellus and the Bakken, while greenfield investment will dominate in new plays such as Utica, Avalon/Bone Springs, Mississippi Lime, Niobrara, and Tuscaloosa Marine Shale. Crude-by-rail projects also have emerged as a strong niche that should lead to deal activity. US refining is “particularly interesting” to Apollo Management, said Sam Oh, partner, as the abundance of light, sweet crude from US shale plays has dramatically improved refining margins, he said.

Energy Sector M&A

160,000

180

160

140,000

Value (US$m)

120 100,000 100 80,000 80 60,000 60 40,000

20,000

2004

Source: mergermarket Announced, excluding lapsed and withdrawn deals

Oil & Gas Awards 2012

2005

2006

2007

2008

2009

2010

2011

Gulf Coast value

Rockies value

Northeast value

Northeast volume

Rockies volume

Gulf Coast volume

2012

Number of Deals

140

120,000

All Eyes on LNG Plans for liquefied natural gas (LNG) export facilities are sprouting across the country, spurred by higher Asian gas prices and the abundance of North American gas. While LNG can expect “massive growth globally,” according to Philip Weems, co-head of King & Spalding’s global energy practice, regulatory issues may delay US projects. Ownership among existing projects could consolidate as some weaker projects change hands, noted John Paisie, CEO of JEA Consulting Group, as minority owners include upstream oil and gas companies, midstream operators, utility companies and international players. It’s not clear yet for whom LNG will be a core business, said Paisie. Northeast Region The Northeast showed strong deal flow throughout 2012 with USD 11.6bn in M&A deals, according to mergermarket data. Though value was down from USD 26.5bn in 2010 and USD 17.4bn in 2011, there were

37 deals last year, showing strong promise for deal volume in the upcoming year.

was relatively evenly split between oil and gas, making this an even bet on each commodity.

The largest deal in the Northeast in 2012 was Energy Transfer Partners’ USD 5.4bn acquisition of Sunoco, which could be a signal of a coming wave of MLP consolidation. MLPs are flush with capital and have seen strong impetus to do deals.

Gulf Coast Region

Rockies Region In the Rockies, dealmaking remained strong with the same number of M&A deals in 2011 and 2012 – 41 deals each year – but more than twice the deal value in 2012. The industry saw USD 16.1bn in deals last year versus USD 7.6bn the previous year, likely driven by the Bakken. More Bakken M&A lies ahead, according to mergermarket reports. Apache’s USD 3.1bn buy of Cordillera Energy Partners, a company operating in the Granite Wash, Tonkawa, Cleveland and Marmaton areas of western Oklahoma and Texas. The Denverbased company’s production mix

With Texas and Louisiana, the Gulf Coast has always been a hotbed of M&A activity. There were 153 deals in the region in 2012, according to mergermarket data, up from 113 the previous year. Though volume was slightly down, with USD 108bn over USD 122bn the previous year, the industry made up in quantity what it lacked in deal value. The largest deal in the Gulf Coast region was the breakup of ConocoPhillips into an upstreamfocused company and a mid- and downstream-focused company, a USD 20.79bn deal announced last April. Splits are all the rage among smaller and mid-sized integrated companies, with quite a few more potentially coming up in the near or medium term, according to mergermarket reports.

Oil & Gas Awards 2012

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Oil & Gas Awards 2012

Transaction of the Year

Winners page

WINNER

TRANSACTION OF THE YEAR Rocky Mountain

EP Energy

Since its launch in May of 2012, the company has focused on building new systems and processes while continuing to perform across its operations.