PBE Mag December 2013

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VOLUME 1 NO. 13

DECEMBER 2013

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Infrastructure:

Is it Built to Last?

10

5 MYTHS O F TECH BITES

News

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Events

TOP GIFTS FOR

18

New Midland Mayor

• U.S. RIG COUNT • TOP 35 Drillers & Operators

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14

HER, HIM & AnyONE

Best technology giftS to upgrade your home 36

Industry Data

LEADERSHIP

20 |

Auctions

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Calendar

Casts Vision for City Growth

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Travel

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Tips

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Energy

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Tech

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DECEMBER 2013

contents

Pbe Features

10

10 Infrastructure: Is it Built to Last?

20 New Midland Mayor Casts Vision

for City Growth 25 2013 Completions of Large Solar Thermal

Power Plants Mark Technology Gains

Other Editorials

14 5 Myths of Leadership

20

17 Calendar of Events 18 Top 5 Gift Ideas for Her, Him and Anyone 27

Safety Tips

28 Conferences in December - January 29 Upcoming Auctions 30 The Best Store just got Bigger!

32 Festivals and Events in Texas 34 PBE Cares - Helping Hands of Midland 36 Tech Bites - 2013’s Best Technology Gift Ideas

to Upgrade Your Homes 38 PBE News Briefs:

Basin, State, Nation, World, Offshore & Shale 42 Restaurant Bites - Big Daddy’s Grill & Bar 44 PBE Inspires 46 By The Numbers: Texas Rig Count, Top Drillers, Top Operators 49 This Month in Petroleum

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LETTER FROM

THE EDITOR “Although no one can go back and make a brand new start, anyone can start from now and make a brand new ending.”

- Carl Bard This is officially our first December issue of PBE magazine and we’ve grown to know that it’s one of the most important. Whether it’s because the slower time of year results in more leisure time to read or the increased interest in holiday related information and gift ideas, December is apparently the most popular time of year to sit down with a good magazine, book or paper, and decompress.

We considered that when choosing the editorial topics for this month’s issue and we hope you enjoy them.

You’ll read about how city leaders are taking a break themselves from the constant state of reaction, to be proactive in planning for the future growth of our communities. Similarly, you’ll learn more about how our infrastructure is holding up under the extreme pressure of rapid growth and what plans are in place to make sure our water, roads, gas and electrical systems can handle the weight of continued expansion in the future.

A local charity also takes a break from their normal routine this time of year to extend some special help and support to a very specific population in desperate need in our community. Plus you’ll learn a little more about a popular Odessa lunch spot that will likely be catering a holiday event near you in the coming weeks.

As you read through this month’s issue, I hope you’re able to do it a leisurely pace.

After having such a successful and productive year, constantly propelled forward by the busyness of our community, I think we all deserve a little time to unwind and enjoy some of life’s simple pleasures this holiday season. Whether it’s spending more time with loved ones or simply spending less time rushing around, I hope you and your family are able to slow down for a moment and take in the beauty of this season as we gear up for what’s to come in 2014.

Carlos Madrid Editor in Chief/Publisher sales@pbemag.com

/PBENERGYMAG @PBENERGY DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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PBE MAGAZINE CONTACTS

EDITORIAL CONTRIBUTORS

EDITOR IN CHIEF/PUBLISHER

Carlos Madrid sales@pbemag.com 432. 559. 5886 ART DIRECTOR/LAYOUT & GRAPHICS

Luke Pawliszyn Lukasz Design Studio West Hollywood, CA luke@lukaszdesign.com

AUDRIE PALMER FREELANCE WRITER Midland, TX audrierpalmer@gmail.com

SUBMISSIONS Submit story ideas & other news to haley@pbemag.com ADVERTISING For advertising info call 432. 559. 5886 or email sales@pbemag.com

JOE BASCO WRITER

PUBLISHED BY: PBE Magazine, LLC. Permian Basin Energy Magazine 4500 Erie Drive Midland, TX 79703 Main Phone: 432. 559. 5886

www.PBEMag.com

DANIEL STEPHENS SENIOR PASTOR Mid-Cities Community Church Midland, TX

Copyright © 2013 Permian Basin Energy, Inc. • Mad Ads Media All rights reserved.

Reproduction in whole or in part without the written permission of PBE MAGAZINE, LLC is strictly forbidden. The greatest care has been taken to ensure the accuracy of information in this magazine at time of going to press, but we accept no responsibility for omissions or errors. PBE Magazine welcomes any comments, feedback, suggestions, and/or submissions for consideration for publication. These may be submitted to: sales@pbemag.com.

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daniel.stephens@midcities.org

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Infrastructure: Is it built to last?

by Joseph Basco

How cities, utility companies adapt to rapid growth At about 5 p.m. on a typical weekday, drivers on Big Spring Street in Midland waiting to turn left onto Loop 250 may have to wait at least two red cycles before hitting the highway back home.

And when they arrive home in a newly built subdivision, they may likely use water wells instead of city water to cook dinner and wash dishes. It’s the norm for Midland and Odessa residents that have adapted to the latest oil boom that began picking up momentum in 2009.

While both Midland and Odessa experience growing pains, their respective municipal governments and utility companies have met the demand and continue to make improvements. With both short and long-term plans in place, officials predict that sound infrastructure is and will be in place.

Roads The most obvious sign of exponential growth is vehicular traffic. From any major city to the small boom towns of Midland and Odessa, traffic clogs major thoroughfares and highways despite efforts from municipalities to widen old roads and build new ones.

For the City of Midland, mapping out a major thoroughfare 10

plan gives city planners the vision on how the city will grow in next two, five and 20 years. Estimating that the north and west sides will continue to grow, city staff have targeted existing roads such as Fairgrounds Road and Mockingbird Lane in the north and new roads such as Avalon Drive in the west as candidates for expansion.

And for the City of Odessa, major thoroughfares in the north and east sides such as JBS Parkway and Faudree Road have already finished or are in the process of renovations.

Matt Squires, director of public works for the City of Odessa, said it is housing that dictates when streets are developed or renovated. Within the past five years, Odessa has added 30 new lane miles, noting that subdivisions add up to the mileage quickly.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

“We’re keeping up with development but we need to look to the future,” Squires said.

Squires cited Loop 338’s completion as one of the major roads that need to be completed as North Odessa grows.

He echoes the statements of James Beauchamp, president of the Midland Odessa Transportation Organization, who said not only Loop 338 in Odessa should be complete, but also Loop 250 in Midland.

Midland City Manager Courtney Sharp, contrasting the currently built Loop 250 that has shopping malls and restaurants lined up along its service roads, said the completion of Loop 250 in South Midland would rather be for industrial redevelopment.

“It’s critical that we get this (South Loop 250) in place,” Sharp said, as he pointed to South Loop 250’s proposed location on Midland’s thoroughfare plan map.

But a major hurdle preventing both loops from completion is funding from the Texas Department of Transportation, the statewide organization that is in the red to the tune of $5 billion. Because state funding may not be available, and with vehicle fatalities on the rise in the Midessa area, Beauchamp proposed that driver safety is of utmost importance.

“The two (road funding and road safety) go together,” Beauchamp said. “At this point, given the fatalities on the road and knowing the lack of funding, we should put focus on safety.”

Water Both cities, facing the problematic drought that has affected the state for multiple years now, have already or are in the process of securing groundwater sources in contrast to reservoirs and other surface water sources.

In Midland, the nearly $200 million T-Bar Ranch water project secured about 40 years of water for the city. Not content with one source, Midland, in partnership with the Midland County Fresh Water Supply District No. 1, are currently working on making a pipeline to the Clearwater Ranch, which will provide about 20 years of fresh water.

The city is also working with the cities of San Angelo and Abilene in a “West Texas Water Partnership” that may secure Midland water for at least 100 years.

to be finalized. Odessa City Manager Richard Morton said water from either Ft. Stockton or Ward County are the two water source candidates, but noted that the Ft. Stockton project is at a “standstill.”

“We need sources of water for tomorrow’s tomorrow,” Morton said.

And while both cities, facing one new subdivision after another, continue to work on replacing 60-year-old water pipeline or adding new ones, residents have resorted to either drilling private water wells or adapted to the drought by using artificial turf and xeriscaping

Electricity and natural gas While homeowners in the Midessa area may have adapted to the drought, electricity and natural gas usage continue to be on the rise.

Sue Mercer, spokesperson for Oncor, said the growth rate of the Permian Basin area that they serve is two times greater than the rest of the areas they serve, such as East Texas. To address the need, Oncor has been rehabilitating old facilities, as well as build new infrastructure. One such project, a transmission line that will stretch from the Monahans to Van Horn, may cost Oncor $73 million.

Atmos Energy, a provider of natural gas to homes and businesses, has also seen an uptick in demand during this boom cycle. Brandi Price, spokesperson for Atmos Energy, said the company has hired additional crews, increased budgets and dedicated more resources to the Midland and Odessa area to compensate for the high demand. Last year, Atmos Energy replaces more than 100,000 feet of various pipeline. “ We cannot stay ahead of the pace here in this area but have long term plans to fulfill the needs,” Price said. “We project even more growth and infrastructure for 2014.”

In Odessa though, the search for a water source has yet DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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5 Myths Of

L e a d e rs h i p When it comes to leadership there is no one size fits all. Every leader has his/her own personality, style, and approach to leading teams. That said, there are leadership truths and myths that seem to surface time and again when I talk to successful entrepreneurs and leadership gurus. Here are several that are consistently brought up and the ones I have personally observed and experienced.

Myth 1:

Leaders work smarter, not harder.

I have never fully understood the “work smarter, not harder” statement. There are definitely ways to be smarter about prioritizing your tasks effectively, planning your day wisely to increase your productivity, and, as a leader, to know when and what tasks to delegate. But every single successful person I know have always worked very hard on realizing his/her dreams. Great leaders empower their teams to do more, they are very protective of their time, and they are shrewd in applying their knowledge and experience in order to move forward and avoid mistakes either they themselves or others made in the past. One could call that “working smart”. But nothing great has ever been achieved without working hard.

True leaders lead by example, they are first in and last ones out, they are fully invested in the vision of their ventures and, through showing their dedication, they inspire people around them to show the same kind of commitment and display the same behaviors.

Gary Vaynerchuk is a successful serial entrepreneur and his perspective is that there is no substitute for doing the work. “We’re living through a period right now where we have a lot of very smart people looking at math, and analytics, and efficiencies,” says Vaynerchuk. “I think those are all great things to take pride in, but I also think you need to put in the work… You can call out all the best business opportunities you want, but the bottom line is that nobody ever got paid to make snow-angels.”

“I never dreamed about success. I worked for it.” – Estee Lauder “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” – Colin Powell 14

Myth 2:

Leaders have all the answers.

On the contrary. The best leaders have a clear understanding of their own limitations. They know that success is a team sport and there is no such thing as a “self-made” man. They realize that it takes a diverse team to truly innovate. They search for passionate people in diverse areas of expertise and bring them together.

Great leaders listen more than they speak. They listen with the goal to understand, not the goal to answer. They hire amazing teams and solicit regular input from team members. They admit their mistakes and empower their people to execute on the company’s vision through their own knowledge and initiative vs. a dictate from above.

Truly amazing leaders empower others to become leaders. Their higher goal is to work themselves out of the job so that if they are not around, the organization functions just as successfully as when they are.

“Leaders don’t create more followers, they create more leaders.” – Tom Peters “A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: we did it ourselves.” – Lao Tzu

Myth 3:

Great leaders are always in the spotlight.

It is true that if you are a leader of the company there is an expectation that you will also be a company’s spokesperson. But leadership comes in many forms. You don’t have to be on the organization’s executive team to

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

be a leader. True leaders (whether they are at the helm or not) are humble. They don’t much care about the spotlight. They care about the results. And that comes from focus.

Some of the greatest leaders of our time were simple men who shied away from limelight and yet have transformed industries and took their companies to new heights.

In his book Good to Great Jim Collins says that exceptional leaders channel their ego needs away from themselves and into the larger goal of building a great company.

“It’s not that [they] have no ego or self-interest,” says Collins. “Indeed, they are incredibly ambitious – but their ambition is first and foremost for the institution, not themselves.” These amazing leaders, Collins found, “are a study in duality: modest and willful, humble and fearless.” I bet you have never heard of Darwin E. Smith or Colman Mockler, but these men brought glory to the brands we currently admire, the companies that lead (and are still leading) the industry.

When Smith became CEO of Kimberly-Clark, the paper company’s stock had fallen 36% behind the general market. In 20 years of his tenure, Smith transformed the brand into the leading paper-based consumer products company in the world. Under his leadership, KimberlyClark generated cumulative stock returns 4.1 times the general market and surpassed its direct rivals. In retirement, Smith humbly reflected on his outstanding performance saying simply: “I never stopped trying to become qualified for the job.”

Mockler was the CEO of Gillette from 1975 to 1991 and during his leadership faced three take-over attacks that threatened to destroy the company. If the company capitulated, the executive team stood to receive great compensation, but Mockler fought for the future greatness of the organization he believed in and won.

He went on to lead Gillette to amazing growth and fantastic returns. Publicity-shy Mockler was humble and gracious man who declined most of the requests to be interviewed and photographed, but no one who knew this amazing leader have mistaken his modesty for weakness.

“You can accomplish anything in life, provided that you do not mind who gets the credit.” – Harry S. Truman “It’s alright to be Goliath but always act like David.” – Philip Knight

Myth 4:

Leaders are always “on”

Even though great leaders work hard, they realize that they need the space to be able to strategize, to think, to create. “’Restore connection’ is not just for devices,” cautions Arianna Huffington. “It is for people too. If we cannot disconnect, we cannot lead.” Leaders like Steve Jobs and Bill Gates were known to go away for extended periods of time to reconnect with themselves, their vision, and their ideas. Leaders need to find that place of wisdom, strength, and real connection (with themselves and others) and they need to lead from that place.

Smart leaders also build the culture of creativity through encouraging their employees to take time to reflect.

“Creating the culture of burnout is opposite to creating a culture of sustainable creativity,” says Arianna Huffington.

“This is something that needs to be taught in business schools. This mentality needs to be introduced as a leadership and performance-enhancing tool.”

Myth 5:

Great leaders are born, not made

“Leaders aren’t born, they are made. And they are made just like anything else, through hard work. And that’s the price we’ll have to pay to achieve that goal, or any goal.”

– Vince Lombardi “The most dangerous leadership myth is that leaders are born – that there is a genetic factor to leadership.

This myth asserts that people simply either have certain charismatic qualities or not. That’s nonsense; in fact, the opposite is true. Leaders are made rather than born.” – Warren G. Bennis

Anyone can excel at anything if they truly put their mind to it. Leadership is a skill, not a genetic disposition. Enough said.

Source: Forbes.com Ekaterina Walter, Contributor

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OBSERVANCES AND CELEBRATIONS

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DECEMBER 2013 Birthstone: Turquoise Flower: Narcissus

West Texas Energy Consortium - Inaugural Conference and Economic Impact Study

8am-3pm. Dorothy Garrett Coliseum, Howard College Campus. Call Katherine Stokes at 325-795-4206 for Registration and Agenda Details

National: Bingo Month, Eye Care Month, Volunteer Blood Donor Month, Book Month, Thank You Month

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PEARL HARBOR DAY HEB Feast of Sharing in Odessa

4-8pm. Barn E - Ector County Coliseum. 4201 Andrews Hwy, Odessa, Texas. 432-582-0099 Odessa Links or 432-366-3541 Ector Co. Coliseum. If you would like to volunteer call Odessa Links 432-582-0099 or HEB 432-697-1471

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NETWORKING PROVIDERS OF SERVICES IN THE PERMIAN BASIN

11:30am-1pm. Mia Piaci Italian Restaurant, corner of University and Grandview. A networking group connecting people to improve the quality of life in the Permian Basin. State agencies and individual owned businesses providing services to the Permian Basin area. First Visit Free. Bring your business cards, brochures and name tag. Purchase lunch, if you desire. Speakers during lunch.

Linda Melson - 432 638 1243 or lindajmelson@aol.com

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Wright Brothers Day

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WINTER SOLSTICE

25 28 CHRISTMAS DAY

NEW YEARS EVE Hanukkah begins

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JANUARY 2014 Birthstone: Garnet Flower: Carnation, Snowdrop

11 Amelia Earhart Day Martin Luther King Jr. DAY

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DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Top 5 Gift Her, Him 1

2

A Cocktail Dress

Fitbit Flex Wireless Activity + Sleep Monitor

These can be simplistic, stylish and elegant. Picking a style is not going to be very tough since most of the stores that sell cocktail dresses have extremely helpful sales women who are going to definitely help you. All you need to do is get the size right. You can pick one of her’s for measurement (stealthily though). The flapper dresses of the 1920’s are back and rocking! Look for the Zara Fantasy neck dress. $99.90 at zara.com

Never stop moving with Fitbit Flex.

Wear this slim, stylish device all the time and get the motivation you need to get out and be more active. It tracks steps, distance, and calories burned and shows you how you’re stacking up against your daily goals. At night, it tracks your sleep cycle, helps you learn how to sleep better, and wakes you silently in the morning. $99.95 at brookstone.com

1 My Basis Watch

It’s easy to say we’re going to start going to the gym three times a week, but taking up such a fitness routine can be a feat. More than any other fitness tracker, the Basis watch takes a step further than gathering data—extremely precise, may we add—it gives tailored advice on how to take up healthier habits through small changes.

It makes its analysis by tracking heart rate patterns, motion, calories and even skin temperature and perspiration with the most advanced sensors. $199 at MyBasis.com

1 PlayStation 4

If you’re ready to splurge, the PS4, considered this year’s best console, is a fail-proof gift for anyone who enjoys videogames. $517.00 at Walmart

2 Boxee TV

Instant TV access to things like Netflix and Vudu, plus a $15-a-month cloud DVR service that let’s you access recorded shows from anywhere. $99 at boxee.tv 18

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Ideas for and Anyone ...

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Monogrammed Cozy Sherpa Robe

Personalized The Elisabetta Handbag

Soft and fluffy as lamb’s wool, our robe is perfect for cold-weather months.

Made of brushed polyester. 250gram weight. Cut with a full shawl collar, roll-up long sleeves, two patch pockets and a self-tying belt. Hangs from a loop at the collar. Machine wash. Monogramming is available at an additional charge. Monogram will be placed on the upper left-side of the robe. More at Pottery Barn. $75.00 at potterybarn.com

2 Nike Fuel SE

Aside from the sleek black bracelet, the new Nike Fuel is everything the other was not. Complete with new features like hourly goals and a more acute sensor, it also allows you to create sessions for activities like cycling or yoga where you don’t move your wrist as much.

Available in three different colors, the new Nike Fuel just may be the hottest fitness device on the market right now. $178.99 at Amazon

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The luxurious Elisabetta is made in Italy from the finest soft and supple leather.

Formal enough for a high-power meeting, it’s also relaxed enough for everyday use.

Using exquisite Florentine craftsmanship, it features a zippered section in the middle to keep things safe, metal feet to protect the bottom and a perfectly placed foil debossed monogram. This is your go-to, carry-everywhere $398.00 at markandgraham.com

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Smartphone Photo Cube Printer

The Smartphone Photo Cube Printer lets you print borderless color photos in 4”x6” or panorama sizes, without a computer. Simply download the free app, choose your JPEG photo, connect your device, and watch photos print before your eyes in razor-sharp 300dpi x 300dpi resolution.

Compatible with all iPhone, iPad and Android devices via 30-pin docking station or USB port.

PictBridge compatible. Includes sample cartridge that prints 10 4” x 6” photos. $159.95 at sharperimage.com

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Philips All- In One Head -To -Toe Light and easy to install (it fits Grooming Kit The ENO DoubleNest Hammock

in a pouch roughly the size of a softball) and can be packed up and brought anywhere. It also comes in a variety of colors—the orange one looks great in contrast to nature’s greens. It’s great for any of his getaways, whether that means sitting down in the backyard with a beer or enjoying the great outdoors on his next adventure. It holds up to 400 pounds so there’s space for two to soak up the great outdoors together. $69.95 at Rei

3 Camp Chef Outdoor Movie Screen

Watch movies or TV outdoors on this large projection screen. The black-backed gray screen blocks out light from behind to improve contrast ratio, even in areas with too much ambient light for other screens. Unit sets up quickly and breaks down for compact carry in the included carry bags. $199 at gifts.com

Timberland

Designed nearly forty years ago and a staple in millions of closets, Gifts that make life easier are often Timberland’s classic 6” Waterproof the most appreciated. Philips’ All- Boots are back and they’re our fall In-One shaver tends any strand and winter staple this year. Paired of hair on his body, so you don’t with some great fitting jeans and always have to tell him to go trim a dark jacket, your man is set with the perfect outfit for this season. his ear hair.

And, with their new “Design Your $69.99 at Best Buy Own” program that allows you to customize the boot as you wish with your choice of leather, hardware and outsole colors, you get to give a completely unique and personalized gift. $225 at Timberland.com

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5

Kohler Moxie

A showerhead combined with a wireless Bluetooth speaker that can be separated from the head and taken with you. Good for morning NPR. $199 at kohler.com

Boston Acoustics SoundWare XS Digital Cinema

An entire surround sound system packed into two Bluetooth speakers and a small but powerful subwoofer. Perfect for fans of music or movies. $499 at bostonacoustics.com

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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New Midland Mayor casts vision for city growth, Odessa looks to the start of $3 Billion TCEP

by Audrie Palmer

Permian Basin region one of fastest growing, predictions to continue into 2014 As Permian Basin leaders prepare for the New Year, many are looking forward to anticipated and sustainable growth through various projects within their communities. A common thread for all those projects involves three of the same things: water, energy and transportation.

million barrels per day in November 2012 to 8.15 million barrels per day by December 2014. In the Permian Basin alone, the average drilling rig counts are expected to rise from 506 to 523 with production up from 1.18 million barrels per day to 1.37 million.

For some it’s not that hard to catch the vision of the growth of the Permian Basin. In November, Susan Combs, Texas Comptroller of Public Accounts, released an annual report citing that job growth, sales tax collections and building permits are signaling that the Texas economy is strong and continuing to outpace the national levels.

The Bureau of Economic Analysis also recently released data on real GDP growth in 2012 for the nation’s 381 metropolitan areas and found that the fastest-growing U.S. metro area in 2012 was Midland with a growth rate of 14.4 percent, followed closely by Odessa which ranked number two with 14.1 percent growth.

Unemployment across the state was at a rate of 6.4 percent in August and has been at or below the national rate for 80 consecutive months. Midland was voted the “Best Small City for Jobs” this year by Forbes Magazine and posted the state’s lowest unemployment for five straight months.

A world-class city – that’s Mayor-Elect Jerry Morales vision for the Midland economy in the coming years.

In her report, Combs also noted that oil and gas production tax collections for the first two months of fiscal 2014 were 44 percent higher than the same period in 2013.

The U.S. Energy Information Administration estimates that total U.S. oil production will increase from 6.89 20

Morales spoke on November 13 at the Midland Chamber of Commerce’s third annual State of the Economy lunch, giving his first public speech after being voted Midland’s newest mayor in the November elections.

“It’s hard to understand what’s happening in Midland unless you’re here,” Morales said.

It’s all this growth in the area that Morales said plays into his vision of the economy and making it a worldclass city and leader.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

“How do we become the envy of cities across Texas across the nation for more than just our low unemployment or our high income? What will keep us afloat when times aren’t good?” he asked.

“Maybe I’m an optimist, but I believe Midland has the potential to be a world-class city. I really believe that… We have the potential to be a leader in water planning, infrastructure and quality of life. I want people and businesses to begin moving to Midland for our recreational opportunities and our developmentfriendly climate.”

Morales four points for a world-class city status included: quality dependable water for generations to come; the ease of transportation; housing for everyone; and a vibrant quality of life.

Touching on the topic of water, Morales reminded the audience that Midland is ahead of the game and that this year, the city completed the T-Bar Water Ranch Pipeline which is ready to provide Midlanders with water for more than 40 years. The city has also purchased Clear Water Ranch, which would supply a total of 60 years. Now, he added, their next project is to begin working with San Angelo and Abilene as part of the West Texas Water Partnership to find a secure enough water source to last an additional 100 years.

our roads and the city will be working with TxDOT to expand Fairgrounds Road in the next five years and has allocated more than $8 million to help in road projects, including a budgeted $1 million to restore pavement on up to 50 miles of residential streets.

Housing will be focused as the city facilitates the timing issue of permits. This year, permits for 635 new homes were issued – a 19 percent increase over the same time period as last year, Morales said. There are more than 2,000 new lots currently being developed for singlefamily residences and new apartment complexes being completed for renters.

“Imagine Midland being a place people want to move not only to do business at but to raise their families because we have the best right here. We as a city will do everything we can to help our citizens,” he said.

“we have the potential to be a leader in water planning, infrastructure and quality of life”

By being development-friendly, Morales said he hopes with a strong, updated comprehensive plan the region will be on the path to facilitate and not prohibit the business community. Citing large oil and energy companies in the area like Fasken, Chevron, Conoco, Shell and Schlumberger that are increasing their footprint in Midland, he knows that they also believe in the community.

“We know that without water, we cannot have a city that can have a business friendly climate,” he said. “It is the new blue gold and we are using technology to reach it.”

“We are so blessed that our oil and gas industry is the leader not just in the state and nation but in the world. We have to address that and be prepared to support and continue diversifying our economy,” Morales said.

Traffic, Morales said, is a sign of our business community getting stronger. It’s not a bad thing, but it’s a great thing to have traffic issues. For the short term, the city’s focus will be getting residents to work because they know that if one is sitting in their car on the roads, their business is not making money and corporations are losing money because their employees are on the roads, he said.

He plans to work with law enforcement, TxDOT and MOTRAN to stress the importance of responsible driving in the community and eliminate the traffic fatalities.

Odessa community leaders are looking to the start of the Texas Clean Energy Project that’s set to kick off within the first quarter of 2014 and will put Odessa on the map for having the first project like this of its kind in the country. Odessa Chamber of Commerce President and CEO Mike George said that they’re hopeful that the Summit Energy plant, which will capture 90 plus percent of emissions from using coal to generate electricity demonstration, will be project for the entire world to come see.

In the long-term, he said that he understands that one of the greatest investments in the city must be

The project has been one in the works for more than seven years when Odessa first worked with the U.S.

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Government on FutureGen and was one of four finalist cities for a site. When they weren’t selected, they instead went into talks with Summit Energy, a for-profit company, and have been working with them for the past four years to make this project a reality. The coal gasification facility has received a $450 million grant from the Department of Energy, George said, and is a $3 billion project.

Other areas that Odessa is seeing growth in include their retail industry and housing market.

“We’ve had numerous new hotels – about 12 – constructed in the past three years with more on the drawing boards and in the planning stages.

We have seen major oil service companies invest hundreds of millions of dollars in facilities and equipment in this area, which tells us they believe that this area will continue to have sustained growth,” George said.

Major home builders are building single-family residences and apartment complexes at a rate of 600 homes per year, and George said with new homes available and on the market it’s addressing the workforce and labor shortage due to a lack of housing by providing more housing to the area.

Growth has also been experienced with record enrollments at the University of Texas-Permian Basin, Texas Tech University Health Sciences Center, Odessa College and within the Ector County Independent School District. Those are areas George said they hope to focus on in the coming year for Odessa residents as well.

Water is also an issue when looking forward to 2014 for Odessa residents.

“We don’t have a water shortage here in West Texas. We have a supply shortage. We have water available but we just need to work out how to get it to our communities for a reasonable price,” George said.

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“We have sufficient water to last us more than 100 to 150 years. We’re just not hooked up to it.”

While Midland has invested in the T-Bar Ranch Project, the city of Odessa is a member city of the Colorado River Municipal Water District. The district is charged with the responsibility of getting water to its member cities and have been securing contracts for water supplies, George said. One part of solution in the future may also be desalination of brine water.

“We feel like our future in water is secure,” he said.

The transportation system in Ector County too is being stretched to its limits. Due to heavy oilfield traffic, the road systems weren’t designed for the volume or weight being hauled over the roads and George added that the city is seeing deterioration in the road systems.

Community leaders will be working closely with TxDOT in the coming year on road system improvements for safety purposes.

But with the new issues also comes the new advancements that will sustain Odessa and the Permian Basin for years to come. Advancements especially in oil industry technology have changed with investments in oil wells. It’s brought major oil companies to the area such as Baker-Hughes and Halliburton that have invested hundreds of millions of dollars in new facilities and equipment because, as George says, they believe the oil activity will be here for many decades.

“It’s not as risky as it used to be. Funding for oil development is easier because there is less risk today,” George said. “We see the oil industry has continued to have sustained growth and technology has developed to tell us where the oil is and how to get it out of the ground economically.

“I think this is going to last a long time.”

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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2013 completions of large solar thermal power plants mark technology gains Source: www.EIA.gov Several large, new solar thermal power plants are expected to begin commercial operation by the end of 2013, more than doubling the solar thermal generating capacity in the United States. The projects use different solar thermal technologies and storage options. Abengoa’s Solana plant, which came on line in October 2013, is a 250-megawatt (MW) parabolic trough plant in Gila Bend, Arizona with integrated thermal storage.

BrightSource’s Ivanpah, expected to enter service by the end of 2013, is a 391-MW power tower plant in California’s Mojave Desert and does not include storage.

Solana and Ivanpah are much larger than solar thermal plants that have previously entered service in the United States.

Over the past decade, a few smaller-scale and demonstration solar thermal projects have entered service. The only other dedicated solar thermal plants larger than 10 MW in the United States are the series of Solar Energy Generating System (SEGS) plants built in California in the 1980s and early 1990s and the Nevada Solar One parabolic trough project completed in 2007.

EIA projections for total solar thermal capacity additions in 2013 and 2014 include six projects for a total of 1,257 MW, with more expected in 2015 and 2016. However, while these solar thermal capacity additions are significant for the technology, they represent only 4% of total expected capacity additions for 2013 and 2014 (see chart below). Solar thermal capacity additions also continue to be outpaced by solar photovoltaic (PV) capacity additions, even though solar PV has only meaningfully entered the utility-scale market in the past few years.

Photo credit: www.solartribune.com

Ivanpah, which is expected to come on line by the end of 2013, uses a series of three power towers: a field of movable mirrors (heliostats) focusing light on a 459-foot central tower. The light heats water in a boiler at the top of the tower, creating steam, which is used to run a conventional steam turbine like those in a typical fossil-fired power plant.

operate up to six hours on stored energy alone. The parabolic troughs are movable, tracking the sun and focusing sunlight onto a tube running down the center of each trough, which contains a heat transfer fluid. A heat exchanger creates steam that in turn runs a conventional steam turbine.

Solana stores some of the sun’s energy as heat, using a molten salt as the thermal medium. The molten salt is stored in round tanks. This storage capability sets the plant apart from photovoltaic or wind technologies, which are dependent on the immediate availability of the sun or wind. With storage, Solana can operate while clouds pass overhead, providing a predictable supply of power to the grid. It can continue to produce electricity for up to six hours after the prime hours of sunlight have passed. This flexibility is particularly important as demand for electricity often peaks in the early evening. Storage technology was critically important in the development of Solana’s 30-year power purchase agreement with Arizona Public Service (the largest utility in Arizona), which will buy all of Solana’s output.

Both parabolic trough and power tower technologies can be integrated with varying levels of thermal storage. For example, the Crescent Dunes solar thermal power tower plant near Tonopah, Nevada that is expected to come on line by the end of 2013 will include 10 hours of thermal energy storage.

All five of the major solar thermal projects—including Solana and Ivanpah—that are scheduled to come on line in 2013 and 2014 were awarded loans through the U.S. Department of Energy’s Loan Guarantee Program. Solana received a federal loan guarantee for $1.45 billion of the approximately $2 billion cost of the project, according to the parent company, Abengoa. BrightSource Energy reports a $1.6 billion federal loan guarantee on the approximately $2.2 billion Ivanpah project.

Solana, which began delivering electricity to the grid outside Phoenix, Arizona, uses parabolic, mirrored troughs to collect sunlight, as well as thermal storage, allowing the plant to DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

SAFETY TIPS Winter/Holiday Driving The Holidays are here! And unfortunately with good times comes bad weather and bad drivers. Why are there so many accidents during these times of celebration? There are many variables that come into play when the holidays and winter weather arrive. Things like improper winter maintenance, black ice, alcohol and distracted drivers are a few obvious hazards. Here are some tips on how we can help keep ourselves safe while driving during the holiday season.

Tip 1: Properly winterize your vehicle. Ensure that all of the windows of the vehicle are clear and that no visibility is lost. I cannot count the times that I have seen a person driving with their windshield frozen over and they have defrosted a small circle in the windshield for them to see out of, limiting their peripheral vision to about zero.

Tip 2: Please SLOW DOWN! With the temperature dropping, the potential for black ice tends to rise as do the number of accidents on the road. A good rule of thumb when it comes to speed is having a 3 second following distance under normal conditions. When rain, sleet, hail, or snow are present, drivers should add a second for every adverse condition encountered in order to increase reaction time.

Tip 3: Be a defensive and undistracted driver by watching out for other drivers on the roadways. Please scan your mirrors frequently and focus 10-12 seconds ahead of you so that you can recognize a hazard as soon as possible. Avoid accidents by NOT being the distracted driver who is texting, talking, eating, and adjusting the radio to listen to “I Saw Mommy Kissing Santa Clause.”

Tip 4: Be a responsible driver. This includes consumption of alcohol or being aware of other drivers who may have. The phrase “Drink Responsibly” should be taken very seriously. If you are going to drink, please have a Designated Driver. If you do not drink, please make sure that you do everything in your power to prevent a tragedy. Please keep in mind that we are all part of families, neighborhoods, churches, communities, cities, and overall we are the Permian Basin! Our area has witnessed too many needless accidents both in and outside the work place. These accidents are not simply costing us money but they are costing us the most valuable thing in this world, people’s lives.

From all of us at American Safety Services, we would like to wish everyone a safe and Merry Christmas and Happy New Year.

Jamie Pina, Trainer AMERICAN SAFETY SERVICES INC.

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Conferences in Dec. 2013 - Jan. ‘14 PIRA Natural Gas Markets Conference 12/02/2013 - 12/03/2013 New York City NY, USA www.pira.com

Digital Oilfields USA Summit 12/09/2013 - 12/11/2013 Houston TX, USA www.digitaloilfieldsusa.com

International Petroleum Technology Conference 12/02/2013 - 12/04/2013 Doha, Qatar - Persian Gulf 972. 952. 9393 spedal@spe.org www.spe.org/events

Asset Integrity Management Event 12/09/2013 - 12/11/2013 Houston TX, USA www.aimhoustonevent.com

Tuscaloosa Marine Shale Summit 12/03/2013 - 12/04/2013 Baton Route LA, USA www.infocastinc.com/events/tuscaloosadev13 Annual World Refining Technology Summit 12/04/2013 - 12/05/2013 Houston TX, USA www.cerebralbusiness.com/wts PIRA Understanding Global Oil Markets Conference 12/04/2013 - 12/05/2013 New York City NY, USA www.pira.com LNG Forum 12/04/2013 - 12/06/2013 San Antonio TX, USA www.magnetmail.net/actions/email_web_version. cfm?recipient_id=26511324&message_ id=3067640&user_id=IP4192&group_ id=1073099&jobid=15536295

MENA Shale Event 12/10/2013 - 12/11/2013 Abu Dhabi, United Arab Emirates www.europetro.com/en/menashale2013 CHEM SHOW 2013 12/10/2013 - 12/12/2013 New York City NY, USA www.chemshow.com Minimizing Risks in Upstream Oil and Gas Contract Management 12/10/2013 - 12/11/2013 Houston TX, USA www.oilgas.americanleaders.com/upstream-contractrisk-management-conference NAPE Rockies Meeting 12/11/2013 - 12/13/2013 Denver CO, USA www.ipaa.org/meetings-events/upcoming-meetings Sebsea Vessel Operations North America Conference 12/11/2013 - 12/12/2013 Houston TX, USA www.informamaritimeevents.com/event/subseavessel-operations-north-america API Exploration and Production Winter Standards Meeting 01/20/2014 - 01/24/2014 Dallas TX, USA www.api.org/events-and-training/calendar-ofevents/2014/e-p-winter

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Leading Auctions in the Oilfield Industry.

Upcoming Auctions and Auction Equipment listings from Tradequip International’s online and site-held auction companies.

Saurce: Tradequip International

Drilling Rigs

Prod.

Equip.

Drilling Equip.

Tubular Goods

Oilfield Trucks

Oilfield Trailers

Parts & Tools

www.tradequip.com

Support Equip.

SOUTHCENTRAL AUCTIONS

COMPANY

DATES

LOCATION

LARGE 1500 HP DRILLING RIG AUCTION

Hilpipre Auction Co

Dec 03, 2013

Greeley, CO

COMPLETE LIQUIDATION OF ENERGY PUMPING SPECIALTIES

Cannon Sales Inc

Dec 11, 2013

Laredo, TX

BIG TRUCKS, TRAILERS & CONSTRUCTION MACHINERY

Machinery Auctioneers of Texas

Dec 18, 2013

Odessa, TX

OILFIELD EQUIPMENT TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Jan 29, 2014 Jan 30, 2014

Odessa, TX

INVENTORY

INTERNET AUCTIONS

COMPANY

DATES

LOCATION

PIPE & EQUIPMENT SEALED BID

Network International Inc

Nov 21, 2013 Dec 05, 2013

Internet

FORT WORTH, TX

Ritchie Bros Auctioneers (America)

Dec 04, 2013 Dec 05, 2013

Internet

SEALED BID PIPE & EQUIPMENT AUCTION

Network International Inc

Dec 09, 2013 Dec 12, 2013

Internet

INVENTORY

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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The Best Store

just got

BIGGER!

Miss Cayce’s Christmas Store, Holiday Home Décor and More has a NEW home! talented designers make custom wreaths, garlands and arrangements that showcase the wide variety of floral products and ribbon.

Thanksgiving can’t be overlooked with such bountiful displays of pumpkins, pilgrims, and turkeys to bless your home.

Becky McCraney and Kathy Harrison (sisters/owners) have relocated their retail Christmas store to 1012 Andrews Hwy, just north of Westlake Ace Hardware and Albertson’s. The former Racquet Ball club complete with a swimming pool has been renovated into an industrial warehouse meets Miss Cayce’s Christmas Store. Moving from 7500 sq. ft to over 16,000 has kept these local Midland girls, their fabulous team, husbands, families and Contractor Brad Hanlan (Hanlan Homes) busy for most of 2013.

Midland and the Permian Basin of West Texas have been home to this holiday retail shop for almost 30 years. The seasonal phenomenon opens every year the weekend after Labor Day. Many customers refer to Miss Cayce’s as their “Happy Place” The store is completely decked out for Christmas of course but a huge Halloween section is front and center for the brave customer who likes whimsical more than wicked. The stores 30

The Texas draught couldn’t keep co owners Kathy and Becky from growing some of the most creative and beautiful Christmas trees in the country. “We see decorating trees as an opportunity to celebrate our artistic abilities “shares Kathy. Their canvas is the tree and their palette includes themes, textures, color, ribbon, and ornaments all mixed with a twist on tradition! Sharing their enthusiasm for holiday decorating “has become our passion” states Becky,” create, inspire, educate to decorate is the mission of our business. “This focus led the family duo to develop a “sister” business called Show Me Decorating that teaches all of their expert tips and techniques. This education is available on a DVD with guidebook, and an app for the iPhone and iPad. This part of the business is promoted and marketed by a third sister, Jennifer Sharrick of San Antonio where Miss Cayce’s and Show Me Decorating are regular guest features on Good Moring West Texas Big 2 and San Antonio Living.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Becky and Kathy were destined to become retail merchants as their entrepreneurial skills were in play at a young age”. We did every craft imaginable and sold our wares at town fairs and even door to door , “says Becky.

Their dad would cut wooden treasures in his shop for them to paint and decoupage, and he still makes many of the store’s props and display furniture.

“One of our favorite memories is making burlap flowers with pipe cleaners ( on our mother’s dining room table ) and selling them to all our neighbors, reminisces Kathy, Imagine our surprise when this year at market the latest trend is burlap in every color even burlap flowers.

Miss Cayce’s Christmas Store is named after Kathy and Becky’s maternal grandmother affectionately called Nana. Cayce was her maiden name and is a tribute to the strong Christian women in their family. Christmas was always magical and special and mostly about family and the birth of Christ - the real reason for the season!

After years of working out of their homes, the sisters got the opportunity in 1984 to purchase a seasonal Christmas business called Pettiet’s Christmas Store.

The Pettiet’s ,a couple from Lubbock would set up a temporary store location in Midland selling to the public and decorating many businesses one of which was the fairly new Green Tree Country Club. Becky was the banquet and party manager at the time and used the Pettiet’s to decorate for Christmas.

Being the enterprising and talented person that she was, she soon was selling for them to local offices, banks, businesses, and clubs. Kathy moved back to Midland in 1983 and went to work in the Christmas store part time alongside her sister. As fate would have it the Pettiet’s decided to sell out, took the girls to market and introduced them to the world of Christmas from everywhere and the rest is history!

Now seasoned buyers, Miss Cayce’s receives inventory to tempt their customers from all over the world. Becky and Kathy travel to markets in Dallas, Las Vegas, Atlanta, California, Chicago, and New York in search of the best of the best for their one of a kind store. Customers/ friends come from near and far to experience the shopping!

Their fans tell them that there is no place like Miss Cayce’s Christmas anywhere, not even in the big cities.

And as Kathy and a few veteran employees will say, “There is a reason for that”! The success is due to lots of hard work all year round to reopen the new store in town every season.

The local Midland girl’s claim to fame is rooted in customer service and community involvement. Part of the shopping experience is eating a warm sugar cookie and sipping the free soft drinks. Attending one or all of the extravagant events Miss Cayce’s host every year is a must! These special events or parties feature a guest artist or product and many benefit a local charity.

The American Red Cross, area Junior Leagues, High Sky Children’s Ranch, Support the Troops and Hunt for Heroes, Buckner, Kid’s Hope and Samaritan Purse “Operation Christmas Shoe Box” along with scores of local schools, churches, and organizations have benefited from the sisters generosity. “We love to give back to the community that has so blessed us” says Kathy.

The Miss Cayce’s magic and Show Me Decorating style transform everyday into seasonal splendor. The same magic happens in the store every year. This year the duo searched the state of Texas for new furniture, unique antiques, lamps and rugs to add to their wonderland.

Walls were painted, papered, furniture is placed, props are found, and vignettes are created to host the arrival of the hottest new themes for Christmas like Silver Service, North pole Elves and friends and Letter’s to Santa (a few names for the 2013 season)! Everything you could possibly want to deck your halls for the holidays is at Miss Cayce’s, but also many great home decor items like lamps, frames, candles, and furniture are waiting to go home with you. Any visit to Miss Cayce’s Christmas Store, will find you eager to recreate all the wonderful ideas you’ve seen in your own home with everything you need to amaze your friends and family. “Our greatest joy is to create, inspire, and educate our awesome customers to decorate for themselves and enjoy the fabulous products we offer” says Becky, and Kathy agrees. Customers, family and friends can stay up to date on all the happenings though their websites www.CayceChristmasStore.com and www.ShowMeDecorating.com DIY and inspirational blogs, Instagram, Facebook pages and following the Show Me Decorating Boards on Pinterest!

SANTA’S ON HIS WAY! Sunday Dec. 1st • 2-4:30pm Thursday Dec. 5th • 6-7:30pm www.CayceChristmasStore.com www.ShowMeDecorating.com

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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DECEMBER & January

TOP

FESTIVALS AND EVENTS IN TEXAS All across Texas, a variety of festivals, events and attractions are a great way to have fun and to spend time with your family.

27th ANNUAL SIGHTS & SOUNDS OF CHRISTMAS December 4 - 7 San Marcos Get the entire family into the Christmas spirit by joining in on the fun-filled activities at Sights & Sounds. Start your Christmas shopping early at the arts & crafts marketplace, visit Santa’s village, ride the carousel, view a live nativity scene and enjoy holiday foods. Admission is free for kids 12 & under; adults $5 nightly.

(512) 393-8400 www.toursanmarcos.com Michael Martin Murphey Christmas Show December 6 8 - 10pm The Ector Theatre 500 N. Texas Odessa, Texas 79761 edtortheatre@yahoo.com Michael Martin Murphey returns to The Ector Theatre for his annual Christmas Show. Tickets are on sale now by going to our website at www.ectortheatre.com.

For more information call 432-580-0898 www.ectortheatre.com

Christmas at the Mansion December 6 - 29 Museum of the Southwest 1705 W. Missouri Midland, Texas 432-683-2882 www.museumsw.org GRANBURY “A CHRISTMAS TOUR” December 6 - 8 Granbury 30th Anniversary! Tour private historic homes & public buildings that are festively decorated for the holidays.

Enjoy shopping, carriage rides & other activities. Tickets are $20 in advance thru Nov 29 & then $25 thru Dec 8.

Call (817) 573-5299 or tickets also available on-line www.granburysquare.com

Holidays at the Haley Memorial Library December 6 - 11 1805 W. Indiana Ave. Midland, Texas The William Reaves Fine Art (Houston based gallery) teams up with the Haley Library to host this holiday celebration featuring many of the state’s best early and contemporary artists.

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Toys for Tots Drive and Pearl Harbor Ceremony December 7 9am - 3pm CAF Commemorative Center and CAF Airpower Museum Join the CAF High Sky Wing and the CAF Airpower Museum for the 7th annual Toys for Tots Fly-In and Pearl Harbor Ceremony. Throughout the day, the CAF’s B-24 Liberator bomber, “Diamond Lil” will be available for tours; see aerobatics performed by Radio Controlled airplanes; and enjoy a Chili Cook-off. Free admission with unwrapped toy donation or $5 for adults, children under 12 free. 9 a.m. Gates Open, 2 p.m. Santa Arrives by Airplane! (Commemorative Center) 432-563-1000 sbuss@cafhq.org

Wagner Noel Presents MOSC Sounds of the Season - Holiday Spectacular December 7 7:30 - 9:30pm 1310 N FM 1788 Midland, Texas Midland Odessa Symphony & Chorale Pops & Family II celebrate the Holiday with the MOSC, voices of the Permian Basin, Lone Star Brass, Permain Basin String Quartet, West Texas Winds and featuring Broadway Favorite, Tamra Hayden 432-552-4430 www.wagnernoel.com Ugly Christmas Sweater 5K Fun Run and 1 Mile Reindeer Dash December 7 9:30am - 12:30pm Museum of the Southwest 1705 W. Missouri Midland, Texas $15 Museum Members/$20 Children/$25 Adults Santa Claus is coming to town! Join Santa and his elves

on a 5K Family Fun Run/Wal or Rudolph on a 1 Mile Reindeer Dash through historic Midland. Put on your ugliest Christmas sweater and ring in the holiday in style. Contact 432-683-2882 Ext 303 Audrie Palmer or apalmer@museumsw.org www.museumsw.org BIG SPRING CHRISTMAS CELEBRATIONS December 7 - 15 Big Spring Dec 7 - Breakfast with Santa, Lighted Christmas Parade and Christmas on Main Street. Dec 7 & 8 - The Living Christmas Tree. Dec 13-15 - Drive Thru Nativity. Call Big Spring CVB for more information: (432) 263-8235 “Space Escape” Family Science Night December 12 6:30 - 8pm The Petroleum Museum Free Admission Stacie Hanna 432-683-4403 shanna@petroleummuseum.org www.petroleummuseum.org COMANCHE TRAIL FESTIVAL OF LIGHTS December 15 - 31 Big Spring A mile of various themes and silhouettes are highlighted with a stunning display of Large Poinsettias on the Dam of Comanche Trail Lake, off Highway 87.

(432) 263-8235 or (866) 430-7100 Wagner Noel- Sewell Lincoln Presents West Side Story December 16 - 31 1310 N FM 1788 Midland, Texas 432-552-4430 or www.broadwayinthebasin.com WSS soars as the greatest love story of all time www.wagnernoel.com Tall Townes & Concho Resources presents The Bruce Robison & Kelly Willis Christmas Show & Warren Hood Band December 19 7 - 9pm Yucca Theatre 208 N. Colorado Midland, Texas 432-682-4111 www.talltownes.com

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Cares Helping Hands of Midland “People know that when they give to us, it goes directly to help people, not a salary. Every penny goes to help the poor.”

That’s what Mary Hardin says she loves so much about Helping Hands of Midland. The program Director for 9 years, Hardin is one of 50 volunteers that help run the local non-profit. When the organization was founded in the late nineties, one of main premises that it was built on was that it would be a completely volunteer-run organization. That fundamental idea holds true today as members of churches and civic organizations from across the area show up to help facilitate the massive Christmas food and gift distribution that’s about to take place this month. Hardin remembers that when they first started, case workers were given a budget of up to $20 to help someone with a need.

Now, the organization allows their case workers to meet the total need, whether it’s $20 or $2,000.

That help includes rent, utilities, medical, legal, home repairs or any legitimate need a person may have.

Mary says the program became a lot more streamlined when they adopted a system called cross-check. This system is used by most of the local non-profits and it allows organizations like Helping Hands to look up a person requesting help and see which other organizations they may be reaching out to for help and how much has already been given.

Mary says this helps monitor those who may be abusing the system so they can reserve their resources for those most in need. Midlanders looking for help can call and leave a message on the help line, and if their case is accepted, the caseworker either goes to the person’s home, or the person in need meets with the caseworker at Helping Hands.

About 6 years ago, Helping Hands decided to team up with MISD’s Project Head

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Start for a special Christmas and Thanksgiving outreach program targeting the poorest of the poor in the community. Project Head Start works with families living below the poverty level so it was the perfect partner for Helping Hands to team up with on a special holiday distribution. Now helping about 250 families in Midland, Helping Hands provides Thanksgiving and Christmas meals as well as gifts for all the children in the house every Holiday Season. In addition to helping the Head Start families around the holiday’s, they also do special distributions for local seniors and those who are disabled and don’t have family around to take care of them.

Donations could also be mailed or dropped off at their Midland location at 1301 Brinson Lane behind Rogers Ford off of Wall Street. If you’d like to give specifically to the Christmas program, all donations need to be received before the December 15th distribution.

If you’re interested in donating to help this vital organization continue support those most in need in our area, call Mary Hardin at (432) 528-6265 for more information.

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Tech

Bites

Source: www.esquire.com

2013’s Best

technology gift ideas to upgrade your home Apple TV

Bluetooth can be unreliable and a rat’s nest of wires is exactly what we’re trying to avoid, so if you’re looking to share and stream your media, opt for the Apple TV. Chances are high that you’re one of the hundreds of millions that owns an iOS device, MacBook or Mac. And now that Mavericks is free for all, it’s never been easier to mirror what’s on your computer to your TV. Price: $99

Nest Protect/Thermostat

You’d never think that a smoke alarm or thermostat could be desirable, but then again, we’ve never seen anything as practical or cool as the Nest Protect or Thermostat. While the latter will save you money by regulating the temperature of your home more efficiently, the former won’t freak out when you burn the toast. With a wave of your hand the Protect goes silent, will notify of you any major emergencies to your phone and it’ll light up at night to guide you to the restroom.

Price: $129/$249

Withings Smart Body Analyzer

The holidays are coming and with football season in full swing, there’s no excuse to let yourself go with this cloudconnected scale that not only monitors your weight, BMI, heart rate, but even the air quality. There’s nothing quite like publicly shaming yourself on Facebook (or Twitter) by sharing your daily check-ins with the world.

Price: $150

Dropcam Pro

This is more than just a Wi-Fi connected camera. Sure, it lets you keep tabs on what’s going on or not going on at home, but think of the Dropcam Pro as the first piece in a burgeoning home monitoring system. With a dormant Bluetooth chip that will soon allow it to communicate with Bluetooth sensors that monitor things like the moisture in the air, you’ll know everything that’s going on at a fraction of the cost of traditional systems.

Price: $199 36

Sonos

Let’s be real: Docks and Bluetooth speakers are a waste of money. The sound isn’t the greatest and the look leaves some room to be desired. Show some class and taste with any one of Sonos’ wireless speakers. Control them all or independently using your smartphone or tablet over your wireless network and access thousands of radio channels and streaming services like Pandora Radio or Spotify. The Play: 1 is a good place to start.

Price: $199

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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PBE NEWS BRIEFS Watching the basin

by Joe Basco

Christi Craddick on state of the oil industry, horizontal drilling, Texas Railroad Commission At the Nov. 15 Permian Basin Coalition meeting, county and city officials from across the region gathered at the Texas Tech University Health Sciences Center in Odessa to hear keynote speaker Christi Craddick speak.

The Texas railroad commissioner discussed a myriad of issues, ranging from the Permian Basin’s impact to the railroad commission itself.

Craddick began her half hour speech on comparing U.S. oil production to the world, stating that by 2015, the U.S. will surpass everyone else worldwide, according to the Energy Information Administration. Craddick predicts that oil production will reach 8.8 million barrels per day by 2014.

While the railroad commissioner noted that drilling permits are actually down year-to-year, the number of completion permits increased. 21,000 were issued this year-to-date compared to 23,000 for all of 2012, so the railroad commission predicts that completion permits will be higher this year compared to last. She added that the number of permits is not as important as the volume of oil.

“It begins and ends out here in Texas,” Craddick said, “and really in the Permian Basin.”

Regarding the Eagle Ford Shale, Craddick said three counties in the Eagle Ford are producing the most oil nationwide. But to differentiate the Permian Basin, she said 47 percent of oil rigs are in operation in the Permian Basin.

“And what is interesting to me, about three weeks ago, for the first time ever in this part of the state, the number of horizontal wells equal the number of vertical wells,” Craddick said. “So that’s the change that’s coming to this part of the world.”

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Watching the STATE

U.S. Patent and Trademark Office site in Dallas now in operation Earlier this year, the U.S. Patent and Trademark Office (USPTO) selected Dallas-Fort Worth and three other American cities as sites for satellite offices to help process the backlog of more than 620,000 patent applications that delay the adoption of new inventions, the creation of business opportunities and job development. When asked by a Texas Economy reporter why he thought Dallas-Fort Worth was selected as a satellite office, Jeremy Vickers, director of Innovation for the Dallas Regional Chamber said he believes the strong economic nature of Dallas, Fort Worth and Texas as a whole had a lot to do with it. Vickers stated that our strong corporate culture and the presence of many corporate headquarters and facilities also played a factor.

Not the mention that we also have a strong Intellectual Property (IP) community in the region, with tons of very high quality IP attorneys and great law schools. Vickers added that our universities stepped forward to write letters of support along with the Center for American and International Law. Regarding economic impact of the responsibility, Vickers said it’s difficult to calculate; however, if you look at other reports, such as the City of Detroit’s, the numbers are huge. It has a multi-million

dollar effect on a regional economy and is a major job creator. It is a new economic development tool for us to encourage those inventors and corporate innovators to stay in Dallas and Fort Worth. Vickers adds that this is a feather in the cap for all Texans.

The fact that Texas was chosen has huge economic and political implications for our state. The Dallas-Fort Worth regional satellite office is located in the Terminal Annex Federal Building in Dallas. The Terminal Annex Federal Building is located along the southern edge of Dealey Plaza and is close to public transportation. The goal is to have 100 examiners and 20 administrative patent judges, as well as several support staff, on site in Dallas by the end of the first year of operation.

Source: The Texas Economy

Watching the Nation

crude oil production in the Bakken region of North Dakota and Montana The latest monthly update of estimated crude oil production in the Bakken region of North Dakota and Montana shows total wellhead output topping 1 million barrels of oil per day (bbl/d) next month. The update appears in the most recent issue of the U.S. Energy Information Administration’s Drilling Productivity Report (DPR).

The Bakken region now accounts for a little over 10% of total U.S. oil production and is expected to be the fourth region (along with the Gulf of Mexico, Eagle Ford, and Permian basins) producing more than 1 million bbl/d in the nation in December.

Infrastructure improvements in the central part of the nation carried more of this oil to refineries in recent months, helping to narrow the price difference between the Bakken region and West Texas Intermediate, which is priced at Cushing, Oklahoma.

The growth of crude oil production in the Bakken region is part of a longer-term trend in drilling efficiency gains (see graph below) and has led North Dakota to rank second in crude oil production in the United States, behind only Texas. These production gains have led to increases in gross domestic product in the state as well as increased demand for electricity. Source: eia.gov

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

39

Watching the WORLD

Japan ranked as the second largest net importer of fossil fuels Japan ranked as the second largest net importer of fossil fuels in the world in 2012, trailing only China. This follows the Fukushima nuclear disaster in 2011, after which Japan suspended operations at all of its nuclear power plants. The loss of nuclear capacity resulted in a shift in Japan’s energy mix toward oil and natural gas.

Japan is now the third largest oil consumer and importer in the world behind the United States and China.

Furthermore, it ranks as the world’s largest importer of liquefied natural gas (LNG) and second largest importer of coal behind China. Japan has limited domestic energy resources, and the country meets less than 15% of its own total primary energy use from domestic sources.

Typically used as a baseload source for power generation, coal remains an important fuel, and coal-fired generators accounted for nearly 27% of Japan’s electric capacity in 2010, according to the FEPC and the International Energy Agency (IEA). Domestic coal production ended in 2002, and Japan began importing all of its coal, primarily from Australia. Japan imported 204 million short tons of coal in 2012, a slight increase from 194 million short tons in 2011. Japan had been the largest global coal importer for three decades until 2011, when, according to World Coal Association estimates, China surpassed Japan by a narrow margin. By 2012, this gap widened as Chinese coal imports grew. Source: eia.gov

Oil remains the largest source of primary energy consumption in Japan, although its share of total energy consumption has declined from 80% in the 1970s to 43% in 2011. Japan was the third largest net importer of crude oil and petroleum products in the world after the United States and China in 2012, having imported 4.6 million barrels per day (bbl/d). After Fukushima, Japan increased imports of crude oil for direct burn in power plants.

Japan is primarily dependent on the Middle East for its crude oil imports, as 83% of Japanese crude oil imports originated from the Middle East in 2012, up from 70% in the mid-1980s. Saudi Arabia is the largest supplier of oil to Japan, making up 33% of the import portfolio, or over 1.2 million bbl/d of crude oil. The United Arab Emirates, Qatar, Kuwait, and Iran are other notable sources of oil to Japan.

Because of its limited natural gas resources, Japan relies on imports to meet nearly all of its natural gas needs.

In 2012, Japan consumed 4.4 trillion cubic feet (Tcf) of natural gas, up 50% from the 2000 level. More than 95% of Japan’s gas demand is met by liquefied natural gas (LNG) imports. Japan, the world’s largest LNG importer in 2012, accounted for 37% of global LNG demand in 2012, up from 33% in 2011. As a result of the March 2011 earthquake and tsunami, Japan’s overall LNG imports rose 24% between 2010 and 2012, from 3.5 trillion cubic feet per year (Tcf/y) to 4.3 Tcf/y.

40

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Watching Offshore

Brazil’s crude oil production In August, Brazil’s oil production from the deepwater presalt fields was just over 300,000 barrels per day (bbl/d), according to Brazil’s federal oil, natural gas, and biofuels agency, and accounted for 15% of Brazil’s total crude oil production (2 million bbl/d). The Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) said that more than 90% of Brazil’s total oil production is offshore in very deep water, and recent exploration efforts in Brazil have yielded discoveries of vast presalt oil fields. Production from the presalt fields increased nearly 40,000 bbl/d between January and August. EIA expects that production from presalt resources will grow significantly over the coming years as development proceeds.

In 2007, a consortium of oil companies (Brazil’s Petrobras, BG Group, and Portugal’s Petrogal) discovered oil in the Santos Basin off the coast of Brazil. This discovery was in exceptionally deep water, under thick layers of rock and salt in the Lula (formerly Tupi) Field. Further exploration revealed substantial reserves in a presalt layer 18,000 feet below the ocean surface. Following Lula, Brazilian officials announced additional presalt finds in the Santos Basin and in the nearby Campos and

Espirito Santo basins. The first production came from the Campos Basin in 2008.

Brazil concluded its first presalt licensing round in October 2013. Of the eleven companies registered in the auction, five companies formed a partnership to submit the only bid: Petrobras, Royal Dutch Shell, Total, and Chinese national oil companies China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC).

This consortium won the rights to develop the Libra field, estimated to contain recoverable reserves of 8 -12 billion barrels. Estimates vary for total presalt resources. Some analysts place the total extent of presalt recoverable oil and natural gas reserves at more than 50 billion barrels of oil equivalent. For context, according to the Oil & Gas Journal, on January 1, 2013, Brazil held proved oil reserves of more than 13 billion barrels. As companies continue to conduct exploration in the presalt layer, EIA expects that reserve estimates will continue to grow, eventually doubling current levels and ultimately leading to increased production.

Source: eia.gov

Watching THE SHALE

A long-term outlook on the impact of shale Shale will not significantly boost oil production or bring down prices in the long term, according to the International Energy Agency (IEA). The surprising findings are contained in the latest version of the agency’s annual World Energy Outlook (WEO). Worldwide production of light tight oil (LTO) from shale and other formations requiring fracking is expected to grow from 2.0 million barrels per day in 2012 to just 5.8 million bpd by 2030, before declining slightly to 5.6 million bpd in 2035. The agency predicts shale will account for no more than 6 percent of annual oil and liquids production over the next 20 years.

And the shale revolution will remain almost entirely confined to North America. The agency expects U.S. LTO production to plateau around 4.3 million bpd between 2025 and 2030, before declining slightly as the most productive sweet spots in shale plays are used up. As for other countries, the agency says they will struggle to replicate the North American experience because of regulatory barriers and the lack of a competitive

upstream oil sector. By 2035, the agency projects, LTO production will reach just 450,000 bpd in Russia, 220,000 bpd in Argentina and 210,000 bpd in China.

These forecasts are extremely conservative. The agency predicts that the oil industry will struggle to add the same amount of output in the rest of the world over two decades as from a single shale play in the United States.

In the decade to 2025, the IEA thinks that shale, coupled with Canada’s oil sands and deepwater production from Brazil and elsewhere, will reduce reliance on OPEC. The IEA dismisses shale’s significance for both peak oil and the world’s long-term reliance on OPEC. Nor does the agency think natural gas will emerge as a serious rival to refined oil products as a transport fuel by 2035.

As a result, the agency’s forecasts for long-term oil prices and consumption have changed little from previous years. In fact, the agency’s long-term price projections have remained remarkably constant since 2008, despite the financial crisis and the shale revolution.

Source: Reuters, by John Kemp

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

41

RESTAURANT

by Marcy Madrid

BITES

It’s a hometown favorite and a staple in the diet of most West Texan’s. Fried Catfish is a popular dish in this part of the country and if you happen to be in Odessa, anyone you ask will tell you the best place to get it, is Big Daddy’s. Founded in 1990 with the first store in Bryan College Station, Cliff Moffett decided to expand his Catfish and homestyle food chain into 3 more stores, including Odessa, Texas. The rest is history.

Big Daddy’s is now one of the most popular homestyle food restaurants in the area and one of busiest local catering companies.

Beginning as a waitress, Sharlena Armstong soon was promoted to the Odessa store manager and in 1998 became the new owner of the Odessa location. Carrie Casty, the current store manager says the good food, good service and comfortable atmosphere is what keeps people coming back for more.

Casty says the family environment makes it a great place to work too.

42

She says they get a lot of regulars but they also have quite a few people who stop in from out of town because they’ve heard about them.

All the recipes are homemade from the original owner and they’ve kept those same recipes throughout the years.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Casty says if Catfish isn’t your thing, they also serve a mean rack of ribs. If you want to try it out for yourself, stop by the Odessa location at 1121 East 42nd street or place your catering order by calling (432) 363-8010. bigdaddys@grandecom.net www.bigdaddyscatfish.com

Big Daddy’s Grill & Bar 1121 E. 42nd St. Odessa, TX 79762 Phone: (432) 363-8010 www.bigdaddyscatfish.com

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

43

ADORE

by Daniel Stephens

Daniel Stephens is the Senior Pastor of Mid-Cities Community Church, since 2006. He is the honored husband to Kayla Stephens, a proud father of twin sons Jonah & Jude, daughter Kampbell, and a precious foster daughter.

“And going into the house they saw the child with Mary his mother, and they fell down and worshiped him. Then, opening their treasures, they offered him gifts, gold and - Matthew 2:11 frankincense and myrrh.”1 My favorite Christmas Carol is “O Come all Ye Faithful”. There is nothing like a Christmas Eve worship service when you are with your family, and brothers and sisters in the faith, and one by one the candles are lit as everyone sings the chorus, “O come let us adore Him, O come let us adore Him, O Come let us adore Him, Christ the King!” Recently, I began to wonder what it meant to “adore” Him. I discovered that adoration is worship that is reserved for deity, it is to regard with loving admiration and devotion. There are numerous stories in the Bible of individuals who adored Jesus. The story of the wise men in Matthew 2 reveal several truths about men who where once far from Jesus but whom eventually were drawn near to Jesus and began to worship Him. 44

Here are a few of these truths.

1. His star draws us to Him - The star over Bethlehem is referred in the story as “His Star”. The star was God’s star. He placed it there to move the wise men from where they were (far from Jesus) to near Him. People describe this in different ways but God uses both the natural and the supernatural to divinely position us to meet Jesus. What did your Eastern Star look like that made you seek after Jesus?

2. Our coming to Jesus troubles the reigning kings in our lives - Herod was troubled and didn’t want to compete for the throne. If your life is about your success, your money, your kids, or what people think about you

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

then get ready for opposition. At what point did you decide that Jesus was the only king you were going to bow to?

3. We come to worship - The Wise men became famous for one thing, the gifts they brought to Jesus: gold, frankincense, & myrrh. Giving of their treasure was definitely an act of worship but they gave more... they gave themselves.

They fell down and worshipped Him. Worship in the original language here is defined as to bow down, or prostrate ones self; to incline the face to the ground. These wealthy, intelligent men who had the means to travel far humbled themselves, got down on their face and worshipped the King. He was not simply a baby,

but the Son of God, the promised Messiah. They adored Him and gave Him what only He deserved…all of themselves.

Today maybe there is a star in the East for you. Maybe this moment, right here, is your star. Pointing you to the Son. Though it will trouble your existing kingdom and the kings that rule over your life, decide to come and worship the King this Christmas. Give Him your life, your treasures, gifts, abilities, your pride, your worship. Adore Him and Him alone.

1The

Holy Bible: English Standard Version. 2001 (Mt 2:11). Wheaton: Standard Bible Society.

Follow Daniel on Twitter: @DanielBstephens

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

45

U.S. RIG COUNT - TEXAS

States &

through November 28, 2013

BAKER HUGHES RIG COUNT

RIGDATA RIG COUNT

Four Week Average 2012

Four Week Average 2013

Last Week

This Week

Four Week Average 2012

Four Week Average 2013

Last Week

This Week

Waiting to Spud

Texas RRC District 1

134

131

130

130

143

125

128

125

6

Texas RRC District 2

77

83

82

85

82

81

81

80

3

Texas RRC District 3

41

48

48

46

42

52

52

52

3

Texas RRC District 4

40

34

34

35

34

27

28

27

2

Texas RRC District 5

19

13

14

14

18

12

12

11

0

Texas RRC District 6

30

27

27

26

31

28

28

28

2

Texas RRC District 7B

17

14

14

11

27

21

19

21

2

Texas RRC District 7C

73

69

70

74

70

76

78

81

3

Texas RRC District 8

289

278

278

277

265

268

267

265

10

Texas RRC District 8A

44

40

42

41

40

43

40

40

2

Texas RRC District 9

22

22

21

21

31

35

37

34

4

Texas RRC District 10

67

67

62

68

70

73

74

67

2

Texas Total

851

826

822

828

853

841

844

831

39

U.S. Totals

1,814

1,761

1,968

1,967

1,970

1,959

94

Districts

1,762 1,761

COPYRIGHT Š 2013 RIGDATA P.O. Box 820547 Fort Worth Texas 76182-0547 1-800-627-9785 | www.rigdata.com This report is protected under United States and international copyright laws and is intended for the exclusive use of the subscriber. Any unauthorized reproduction, retransmission, distribution, publication, broadcast or circulation of this report to anyone, directly or indirectly, without the express prior written consent of RIGDATA is prohibited. To order additional report copies at a reduced rate or for a corporate site license, please contact: 1-800-627-9785 46

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Top 35 Drillers Rankings Each month we track the activity of all the drillers and compile the results into a report that identifies the top 35 out of 100 drillers based on their footage drilled. Updated monthly, these reports also detail the number of well starts and the number of directional wells drilled by each of the top 35 out of 100. through November 22, 2013 Company

Footage Drilled

% of Total

Average Footage

Well Starts

% of Total

Directional Wells

1

Helmerich & Payne, Inc.

44,955,424

16.80%

10,370

4,335

12.90%

3,807

2

Patterson-UTI Drilling Company, LLC

26,624,794

10.00%

10,260

2,595

7.70%

2,207

3

Nabors Industries, Ltd.

23,923,068

8.90%

8,215

2,912

8.70%

2,610

4

Precision Drilling Trust

12,082,575

4.50%

9,499

1,272

3.80%

1,132

5

Ensign Energy Services, Inc.

11,675,393

4.40%

6,653

1,755

5.20%

975

6

Nomac Drilling, LLC

9,986,228

3.70%

9,484

1,053

3.10%

1,050

7

Trinidad Drilling, Ltd.

7,676,205

2.90%

10,647

721

2.10%

594

8

Pioneer Energy Services Corp.

7,390,307

2.80%

9,686

763

2.30%

556

9

Unit Drilling Company

7,196,870

2.70%

8,852

813

2.40%

790

10

Cactus Drilling Company, LLC

6,057,955

2.30%

10,481

578

1.70%

536

11

Capstar Drilling, LP

5,508,928

2.10%

6,451

854

2.50%

164

12

Savanna Energy Services Corp.

4,859,366

1.80%

9,917

490

1.50%

168

13

Xtreme Drilling and Coil Services Corp.

3,817,084

1.40%

9,915

385

1.10%

372

14

Desoto Drilling, Inc.

3,698,207

1.40%

4,477

826

2.50%

822

15

Sidewinder Drilling, Inc.

3,654,906

1.40%

8,050

454

1.30%

337

16

Complete Production Services, Inc.

2,876,985

1.10%

9,990

288

0.90%

100

17

Sendero Drilling Company, LLC

2,785,416

1.00%

11,558

241

0.70%

0

18

Cyclone Drilling, Inc.

2,747,335

1.00%

6,316

435

1.30%

416

19

CanElson Drilling, Inc.

2,689,716

1.00%

10,188

264

0.80%

43

20

Orion Drilling Company, LLC

2,286,200

0.90%

11,431

200

0.60%

189

21

Lariat Services, Inc.

2,267,084

0.80%

6,496

349

1.00%

168

22

Robinson Drilling of Texas, Ltd.

2,231,575

0.80%

11,102

201

0.60%

1

23

Scandrill, Inc.

2,108,545

0.80%

12,188

173

0.50%

143

24

Latshaw Drilling & Exploration Company

2,105,647

0.80%

7,657

275

0.80%

271

25

SST Energy Corporation

1,807,602

0.70%

9,270

195

0.60%

160

26

Big Dog Drilling Company

1,555,717

0.60%

11,786

132

0.40%

11

27

Basic Energy Services, Inc.

1,502,378

0.60%

6,707

224

0.70%

56

28

Lewis Petro Properties, Inc.

1,485,300

0.60%

11,425

130

0.40%

128

29

Silver Oak Drilling, LLC

1,357,790

0.50%

8,179

166

0.50%

79

30

Bison Drilling and Field Services, LLC

1,318,816

0.50%

10,467

126

0.40%

8

31

ProPetro Services Incorporated

1,280,250

0.50%

11,534

111

0.30%

0

32

Cade Drilling, LLC

1,225,252

0.50%

10,210

120

0.40%

114

33

Murfin Drilling Company, Inc.

1,219,615

0.50%

4,746

257

0.80%

0

34

Aztec Well Servicing Co.

1,200,385

0.40%

6,419

187

0.60%

88

35

Frontier Drilling, LLC

1,170,938

0.40%

8,188

143

0.40%

123

Total Top 100 for year 2013

267,563,732

100.0%

---

33,632

100.0%

---

RANK

DECEMBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

47

Top 35 Operators Rankings Updated every month, we track and rank the top

35 out of 100 operators based on their footage drilled.

Keep track of the most active operators with details on their number of well starts.

through November 22, 2013

RANK

Company

Footage Drilled

% of Total

Average Footage

Well Starts

% of Total

Directional Wells

1

Anadarko Petroleum Corporation

14,548,063

5.40%

10,089

1,442

4.30%

1,382

2

Chesapeake Energy Corporation

10,492,967

3.90%

10,318

1,017

3.00%

1,017

3

EOG Resources, Inc.

9,132,877

3.40%

10,595

862

2.60%

812

4

Apache Corporation

8,618,672

3.20%

8,759

984

2.90%

457

5

Devon Energy Corporation

8,199,103

3.10%

9,120

899

2.70%

830

6

Pioneer Natural Resources Company

7,977,300

3.00%

13,035

612

1.80%

346

7

Occidental Petroleum Corporation

7,807,909

2.90%

6,057

1,289

3.80%

606

8

BHP Billiton Limited

7,209,243

2.70%

13,277

543

1.60%

534

9

Marathon Oil Corporation

5,434,378

2.00%

14,688

370

1.10%

370

10

Encana Corporation

5,306,813

2.00%

10,699

496

1.50%

477

11

Exxon Mobil Corporation

5,105,386

1.90%

6,975

732

2.20%

458

12

Chevron Corporation

4,717,520

1.80%

4,589

1,028

3.10%

382

13

ConocoPhillips Company

4,703,576

1.80%

8,993

523

1.60%

411

14

Southwestern Energy Company

4,446,270

1.70%

4,725

941

2.80%

937

15

Concho Resources, Inc.

4,184,022

1.60%

10,460

400

1.20%

173

16

QEP Resources, Inc.

3,779,483

1.40%

10,768

351

1.00%

332

17

Continental Resources, Inc.

3,522,943

1.30%

6,464

545

1.60%

544

18

Whiting Petroleum Corporation

3,416,047

1.30%

9,569

357

1.10%

286

19

Noble Energy, Inc.

3,364,797

1.30%

9,478

355

1.10%

350

20

Royal Dutch Shell, plc

3,026,663

1.10%

12,825

236

0.70%

234

21

SandRidge Energy, Inc.

2,897,422

1.10%

5,268

550

1.60%

398

22

Newfield Exploration Company

2,670,418

1.00%

6,991

382

1.10%

361

23

Oasis Petroleum North America, LLC

2,394,190

0.90%

10,060

238

0.70%

237

24

CrownQuest Operating, LLC

2,374,900

0.90%

12,055

197

0.60%

0

25

Murphy Oil Corporation

2,345,385

0.90%

10,197

230

0.70%

228

26

EP Energy E&P Company, LP

2,268,645

0.80%

10,359

219

0.70%

194

27

Energen Resources Corporation

2,202,400

0.80%

9,101

242

0.70%

41

28

Linn Energy, LLC

2,131,267

0.80%

8,664

246

0.70%

89

29

WPX Energy, Inc.

1,939,539

0.70%

7,431

261

0.80%

259

30

Hess Corporation

1,930,559

0.70%

5,378

359

1.10%

359

31

Parsley Energy Operations, LLC

1,891,800

0.70%

12,782

148

0.40%

0

32

SM Energy Company

1,881,007

0.70%

9,176

205

0.60%

198

33

Cimarex Energy Co.

1,654,575

0.60%

10,675

155

0.50%

142

34

BP, plc

1,646,933

0.60%

10,104

163

0.50%

157

35

Statoil, ASA

1,558,569

0.60%

8,203

190

0.60%

190

Total Top 100 for year 2013

267,563,732

100.0%

---

33,632

100.0%

---

48

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

Source: www.eia.gov

Despite high disruption levels, rising production and lower demand restrain oil prices Unanticipated global petroleum supply disruptions hit a new high of more than 3 million barrels per day (bbl/d) at the start of November as the nascent recovery in Libyan production unraveled and unplanned outages reduced Iraqi supply (Figure 1). However, price increases during these supply disruptions were restrained due to a confluence of mitigating factors that included higher production in North America and Saudi Arabia, seasonally

lower demand in October due to refinery maintenance, outages, and slower global economic growth. In its November Short-Term Energy Outlook, released yesterday, EIA said it expects continued growth in production, and a reduction in the level of supply disruptions, to put downward pressure on prices through the end of 2013 and into 2014. EIA expects that North Sea Brent prices will average $106 per barrel during December and $103 for all of 2014. As always, we recognize that there is significant uncertainty surrounding oil price forecasts, as reflected in the value of traded options at a wide range of strike prices.

Disruptions in Libya, where production capacity is 1.6 million bbl/d, have accounted for almost half of unplanned global outages. Libyan production is down more than 80% (1.3 million bbl/d) from its 2013 high of 1.5 million bbl/d in April and down 0.3 million bbl/d from already heavily disrupted production volumes in October. Crude oil production in Libya has been volatile as a series of political crises have caused major swings in output and exports. Production had recovered by several hundred thousand barrels per day in midSeptember as local protests subsided; however, in late October, the 340,000-bbl/d El Sharara field and the 160,000-bbl/d Mellitah export terminal were shut down by demonstrations. These disruptions reduced total Libyan production to around 250,000 bbl/d and exports to less than 100,000 bbl/d.

In Iraq, planned maintenance and ongoing unplanned security-related outages have taken 740,000 bbl/d of crude oil production offline since September. The security situation in Iraq continues to affect production.

The latest in a series of persistent attacks on the KirkukCeyhan pipeline between Iraq and Turkey occurred on

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November 2, contributing to 340,000 bbl/d of total unplanned Iraqi production outages. Planned outages, which are not included in the estimated 3 million bbl/d of global unplanned disruptions, include upgrades to southern petroleum export terminals that have reduced Iraqi crude oil output by almost 400,000 bbl/d. This production is likely to remain offline for the remainder of 2013, and possibly into 2014.

While unplanned disruptions are at their highest level since at least January 2011, new production outside the Middle East is helping supply global demand (Figure 2).

EIA expects non-OPEC production to grow 1.6 million bbl/d in 2013, with 1.5 million bbl/d coming from North America, predominantly the United States. Higher U.S. production has helped reduce crude oil imports into the United States, especially imports of Nigerian light sweet crude, similar to displaced Libyan crude.

The light sweet crude imports displaced from the U.S. market are now available to meet demand elsewhere.

In addition to higher non-OPEC production, Saudi Arabia has maintained production around 10 million bbl/d, despite the end of its summer peak domestic demand season, helping to backfill outages in other OPEC countries. However, this increase has also reduced global spare production capacity, which averaged only 1.7 million bbl/d in the third quarter, 1.4 million bbl/d below the three-year average and the lowest level since 2008.

Supply, of course, is only one side of the oil market equation. When production levels were high this past summer, similar supply disruptions caused prices to increase in July and August, when refinery crude runs were seasonally higher. According to the International Energy Agency (IEA), global refiner crude throughput averaged 76 million bbl/d in October, down 2 million bbl/d compared to July. Refinery crude runs, especially in Europe, declined because of seasonal refinery maintenance outages.

As a result of increased North American production and continued high Saudi Arabian production coupled with slacking global oil demand, Brent spot prices fell from a September average of $112 per barrel to $109 per barrel as of November 14, despite record disruptions. In the near term, the IEA expects December world refinery throughputs to rise by 2.4 million bbl/d compared to October, which could lead to short-term price increases should disruptions worsen or Saudi production fall more than markets anticipate. Nevertheless, EIA expects 50

continued rising global liquids production — increasing 1.5 million bbl/d in 2014 — coupled with fewer disruptions and relatively modest economic growth. EIA expects Brent crude oil prices will continue to move lower, averaging $101 per barrel by the end next year.

Gasoline and diesel fuel prices drop again The U.S. average retail price of regular gasoline decreased seven cents to $3.19 per gallon as of November 11, 2013, 26 cents lower than last year at this time and the lowest price since February 21, 2011. Prices fell in all regions of the nation for the third consecutive week, with the largest decrease coming in the Midwest, where the price declined 11 cents to $3.07 per gallon. The Rocky Mountain price was $3.23 per gallon, eight cents lower than last week. Dropping six cents, the West Coast price was $3.51 per gallon. The Gulf and East Coast prices were a nickel lower, at $2.98 per gallon and $3.24 per gallon, respectively.

The national average diesel fuel price fell three cents to $3.83 per gallon, 15 cents lower than last year at this time. The West Coast price was below the $4 per gallon mark for the first time since July 15, 2013, at $3.98 per gallon and four cents lower than last week. The Midwest price declined three cents to $3.80 per gallon, and the East Coast, Gulf Coast, and Rocky Mountain prices all decreased two cents, to $3.86 per gallon, $3.75 per gallon, and $3.84 per gallon, respectively.

Propane prices continue to increase while heating oil prices decrease Residential heating oil prices decreased by nearly a cent per gallon last week during the period ending November 11, 2013 to reach a price just shy of $3.82 per gallon. This is 19 cents per gallon lower than the price at the same time last year. Wholesale heating oil prices decreased by 1 cent per gallon, arriving at $2.99 per gallon.

The average residential propane price increased almost 4 cents per gallon last week to reach a price just under $2.49 per gallon, nearly 25 cents per gallon higher than the same period last year. Wholesale propane prices increased by almost 2 cents per gallon to reach a price of $1.38 per gallon as of November 11, 2013.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | DECEMBER 2013

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