Permian Basin Energy- June 2013

FREE

VOLUME 1 NO. 7

JUNE 2013

Union Pacific RAILYARD ADDING New tracks 8

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TRAFFIC SAFETY IncreaseD OIL PRODUCTION

SUMMER HEAT SAFETY TIPS

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FOOD SAFETY 31 TIPS

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JUNE

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

Industry Data

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News

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Events

NATIONAL SAFETY AWARENESS MONTH |

Auctions

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Calendar

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Travel

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Tips

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Energy

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Tech

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

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To Advertise call

432. 559. 5886 or email

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JUNE 2013

contents 8

Pbe Features 8

Union Pacific Railyard - New Rail Tracks Being Built to Meet Increased Growth Demands

12 Traffic Safety 18 Increased Oil Production

Other Editorials

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PBE Cares

15 Calendar of Events 16 Conferences in June-July 17 Upcoming Auctions 20 OSHA’s Fall Prevention Campaign

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22 Festivals and Events in Texas 24 Tech Bites 26 PBE News Briefs:

Basin, Government, State, Nation, World, OffShore 30 Restaurant Bites - Fabela’s 31 Food Safety Tips 32 PBE Inspires 34 By The Numbers: Rig Count, Top Drillers, Top Operators 37 This Month in Petroleum 39 Summer Heat Safety Tips

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

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LETTER FROM

THE EDITOR “People do not care how much you know until they know how much you care.”

- John Maxwell June is safety awareness month as recognized by the National Safety Council so it only seemed natural for us to focus a large part of this month’s issue on safety. Safety is such a key factor for the industry’s in which we specialize in the Permian Basin and it seems to be the theme that runs through everything we do. We often talk about the need for safety out in the oilfield but I wanted to also give you some other, just as important perspectives on the topic of safety. In this issue, you’ll find safety tips that are specific for this time of year such as food handling safety as we all begin to cookout more and spend more time outdoors with the family.

You’ll also find some heat safety tips and heat stroke warning signs as we work and play outdoors during the extreme summer heat. In addition to the safety theme running through this month’s magazine, you’ll learn about a lucrative new offshore drilling project beginning next year just off our Texas coast.

We also sat down with Union Pacific to get their firsthand account of the new rail yard opening in Odessa and all that it will mean for the Permian Basin and the industries it will support. There are so many exciting new opportunities on the horizon for our area and the oil and gas industry as a whole and as we keep safety a top priority, we are sure to continue reaping the benefits of a thriving economy for years to come.

We are so fortunate to live in not only a booming area for business, but also an area we can be proud to live in and raise our kids. Following the devastating tornadoes that destroyed the homes and businesses of so many of our neighbors to the north in Oklahoma and Texas, many local churches, businesses and even individuals immediately organized the collection and deployment of food, water and supplies to the affected areas. As is our character in West Texas, when there is a need, we respond. As we continue to keep the people affected by these storms in our prayers, let us all be reminded of what’s really important to us in our lives and be sure to never take the people and things we cherish most, for granted.

Carlos Madrid Editor in Chief/Publisher sales@pbemag.com /PBENERGYMAG @PBENERGY JUNE 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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EDITORIAL CONTRIBUTORS PBE MAGAZINE CONTACTS EDITOR IN CHIEF/PUBLISHER

Carlos Madrid

sales@pbemag.com 432. 559. 5886 SALES EXECUTIVE

Brandy Narvaiz 432. 528. 1082

ART DIRECTOR/LAYOUT & GRAPHICS

HALEY RAGSDALE WRITER haley@pbemag.com

Luke Pawliszyn

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

SUBMISSIONS Submit story ideas & other news to: haley@pbemag.com

AUDRIE PALMER ADVERTISING For advertising info call 432. 559. 5886 or email sales@pbemag.com

FREELANCE WRITER Midland, TX audrierpalmer@gmail.com

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

Mid-Cities Community Church Midland, TX daniel.stephens@midcities.org

Cares

by Tracy Renton, Regional Director of the March of Dimes

March of Dimes; saving babies across the nation and right here at home.

March of Dimes is a trusted resource for moms and babies providing very visible local programs in our community.

At the same time, the March of Dimes provides an array of educational materials and information throughout the local community. We have educational materials on a wide range of topics such as preconception care, prenatal care, birth defects, nutrition during pregnancy, the effects of alcohol, drugs and smoking during pregnancy, newborn care, newborn screening, birth defects, etc. We provide many local physicians with these materials for their patients as well as providing them to our Hope Chest clients, to schools, and to the community through health fairs. We are also able to provide speakers on all of the above issues upon request.

To help support this vital organization locally, join us for the 14th annual Shot’s for Tot’s sporting clay’s event benefiting the March of Dimes. This event will be Friday, July 19th at Jake’s Clays and there’s still time for you or your company to sponsor a team. There will be prizes, give-a-ways and drawings including one for a Polaris 400 Ranger donated by Odessa Family Power Sports.

For more information contact the March of Dimes office at (432) 570-0172 or go to www.jakesclays.com for registration and event information.

Groundbreaking research continues, and regardless of where that research is conducted, the results benefit babies across the nation. For example, surfactant therapy was developed through March of Dimes research in 1985.

Surfactant therapy helps premature newborns’ lungs function, and is used in every neonatal intensive care unit (NICU) across the nation daily. Currently in the Permian Basin, we have two of the best NICU’s using the surfactant therapy. Many babies survive their premature birth who would have died before surfactant therapy. Surfactant therapy is only one example of many ways the March of Dimes research has lead and will continue to lead to life-saving interventions for babies.

The March of Dimes in Texas recently lobbied for legislation that is saving our state’s babies from mental retardation and death. The March of Dimes recommends that all babies be screened for 31 disorders at birth. Left undetected most of these disorders cause mental retardation and can be fatal. However, if detected at birth there is treatment for all. The number of screenings provided is determined on a state by state basis. Before 2007 newborns in Texas were being screened for only 7 disorders. March of Dimes staff and volunteers solely lobbied for expansion. Now EVERY baby born in Texas is screened for 31 disorders.

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

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New rail tracks

BEING BUILT TO MEET increased growth demands

by Audrie Palmer

With increased traffic and regional growth in the oil and gas industry, Union Pacific has begun construction on two new rail tracks that will expand the current rail yard in Odessa.

The $14 million investment, started in April, will add an unloading facility south of the Odessa rail yard with construction slated to be completed by August. The facility will provide access to the main line at the current rail yard.

“We’re continuing with our growth to support moving goods to drilling sites,” said Raquel Espinoza, corporate relations and media director for the Union Pacific Southern Region.

“We do believe that the drilling efforts are driving a lot of the growth we’re experiencing there.”

Last summer, Union Pacific completed a $10 million project and construction of six new tracks, increasing the total number of tracks in Odessa from five to 11.

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Now with the two new tracks this summer, that number will total 13.

It’s all part of a $50 million expansion of the rail services offered in the Permian Basin. With the equivalent of 90 million barrels of crude oil moved in 2012 by rail and more than 300,000 barrels a day shipped in February, Union Pacific staff are working to meet the demands in West Texas.

A $17 million parallel line connecting East Odessa

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

“It’s one of the added benefits to all this growth,” she said.

The east-west main line connects the Permian Basin to Eastern carriers in Texas as well as California on the West Coast and includes a 140-mile stretch that links Pecos to the Alon Refinery in Big Spring.

The rail company has seen an increase in the MidlandOdessa region after the oil slump in 2009 with oil and gas industry productivity picking up again in 2011.

The majority of items that move through the region serve the oil and gas industry with 531,000 carloads of industrial and chemical materials – pipes, fracking sand, hydrochloric acid and crude oil, being shipped in the first quarter of 2012.

Officials estimate that it takes 375 18-wheeler trucks to haul as much as one train can carry, Espinoza said. The addition of tracks at the rail yard is providing the area with flexibility in the methods of shipping.

Photo Courtesy of www.HDRinc.com

Union Pacific currently serves as a link between 23 states in the western two-thirds of the U.S. through its rail systems and aids as a link in the global supply chain.

Operating revenues last year for the company were up three percent nationwide totaling $5.3 billion.

Officials say they’ve seen a significant increase in the number of carloads coming to and from West Texas over the last few years prompting the expansion. In 2013, Union Pacific expects more than a 30 percent growth in crude oil shipments. A single-tank car can carry between 550 and 725 barrels of crude oil while the average load of sand carried by a rail car is about 101 tons.

A single horizontal well takes three to five rail cars of pipe and 30 to 50 rail cars of frac sand, Espinoza said.

It would take approximately 300 trucks to haul the same amount of freight as a single Union Pacific train which means fewer trucks on the road, she added.

to West Midland was built last fall along with a new 10-track rail yard in Monahans.

One of the benefits to the company’s growth, Espinoza said, is that Union Pacific has been able to bring back employees who were on furlough through the recession as well as hire between 70 and 75 new employees over the last two years.

And with the expansion comes also a concern of rail safety for customers and drivers.

In May, Union Pacific launched the “Always Expect a Train” awareness billboard campaigns. The billboards will be posted in Midland and Odessa – two of 12 cities – that will promote railroad safety for the next six months.

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

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The signage includes phrases just as “Some shortcuts cut life short” and “Trains travel 41 feet in the blink of an eye” as well as bilingual billboards also.

“We expect a lot of growth in the area,” she said.

Audrie Palmer is a freelance writer based in Midland, Texas. She can be reached at audrierpalmer@gmail.com.

The campaign, Espinoza said, will target professional truck drivers and provide awareness with the new increased amount of trains.

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Your Bank For Business

Odessa - Midland - Big Spring - Snyder | www.prosperitybankusa.com JUNE 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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TRAFFIC SAFETY

by Haley Ragsdale

Rush hour, traffic jams on exit ramps and traffic accidents, unfortunately, are now all part of our roadways in the Permian Basin.

The boom in oil production is creating much more traffic. Gene Powell, public information office at TXDOT, said the roads are seeing about 30 percent more traffic than two years ago, and some roads with heavy drilling such as Highway1788 are seeing even more.

Drive Smart Be Safe. TXDOT has partnered with oil and gas companies, the Texas Department of Public Safety and communities across the Permian Basin to promote roadway safety. The campaign will include safety messages on TV, radio, billboards and gas pumps in the area.

“The energy sector is not the only one to blame for accidents; regular motorists need to be more aware on the roads. People can’t drive in Midland and Odessa like they did ten years ago. When we get behind the wheel we need to be 100 percent focused,” Powell said.

Preliminary TXDOT crash reports indicate, there were 4,128 fatal and serious injury crashes and 320 traffic fatalities in 2012 in the Permian Basin energy sector. That’s a fifty-eight -county region that covers an area two hundred fifty miles wide and three hundred miles long. The death count represents a 27 percent increase in roadway fatalities over the previous year.

The leading causes of these crashes, according to law enforcement, were failure to control speed and driver inattention. Almost half of fatal and serious injury crashes involved a single vehicle, and commercial trucks were involved in only 7 percent of reported crashes in which someone was killed or seriously injured. The most dangerous time of day was between 4 p.m. and 5 p.m.

Powell explained that in response to more traffic and accidents, TXDOT has released a new campaign called 12

“The energy sector is a blessing providing jobs for the region and it is not going anywhere soon. We need to learn to drive with these trucks and give them a wide berth,” Powell said.

The new Be Safe. Drive Smart. campaign urges all drivers to take the following basic safety precautions: - Buckle up - Drive a safe speed - Pass carefully - Always stop at red lights and stop signs - Avoid using cell phones while driving Powell explained TXDOT has a 70 million dollar planning budget to look at long term solutions for our roadways.

TXDOT will host public meetings this summer to begin addressing issues with I-20.

“We need to discuss the back up of traffic on exit ramps on I-20 and begin the conversation of one way service roads. One way service roads are much safer,” Powell said.

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

Stay out of the “No Zone”

Other TXDOT projects on tap include: - A five million dollar project that will go to bid in June to place a cable barrier in the median of 1-20 stretching 30 miles from West Odessa to the east loop in Midland.

Powell said construction should begin by the fall and will be a larger and more prominent fence than on 191.

- Next year, construction will begin on Loop 338 and North East 191 on Yukon. TXDOT will widen the road to four lanes and add signals.

“No Zones” are danger areas around large trucks in which crashes are more likely to occur. Because of a truck’s size, there are four large blind spots where cars disappear from the driver’s view. Passenger car drivers should avoid lingering in these areas whenever possible.

Avoid Tailgating A severe collision can result when a car hits the rear end of a truck. Large trucks and the trailers they pull do

PASS SAFELY

In addition to regular basic road safety, TXDOT gives the following tips when traveling with large trucks, commonplace on our roadways.

Pass Safely Never cut in front of a truck. After you pass, make sure the entire truck appears in your rearview mirror before returning to the lane. Trucks need additional space because they take twice as long to stop as a passenger car. If you move into that space and brake suddenly, the truck may not have enough time to stop safely.

Always leave at least four car lengths between the back of your car and the front of any large truck you pass.

not have impact-absorbing bumpers. Additionally, the truck’s metal bumpers may not align with those of your car. Leaving 20-25 car lengths between your vehicle and a truck will provide the space you’ll need to stop safely during an emergency or traffic slow down. That following distance will also allow you to see ahead of the truck and react to any change in driving conditions.

Stay Away from Front and Rear Blind Spots Following a truck too closely obscures your view of the road in front of you. The driver of the truck is also unable to see your vehicle. If you can’t see the driver in the truck’s side mirror, the driver can’t see you or your vehicle.

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

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

OBSERVANCES AND CELEBRATIONS

JUNE 2013 Birthstone: Pearl Flower: Rose

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ATLANTIC HURRICANE SEASON BEGINS Hurricane Season: June 1 to November 30 August & September are peak months.

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WORLD ENVIRONMENT DAY

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FLAG DAY

FATHER’S DAY

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JUNETEENTH Juneteenth is the oldest known holiday celebrating the end of slavery. It started on June 19th 1865 when the union soldiers, led by General Granger came to Galveston Texas and announced

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that the war was over and the slaves were free. General Granger read the Emancipation Proclamation freeing about 250,000 slaves throughout Texas.

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FIRST DAY OF SUMMER 12TH BIENNIAL MOSCOW INTERNATIONAL OIL & GAS (MIOGE) EXHIBITION

JULY 2013 Birthstone: Ruby Flower: Larkspur, Water Lily

CANADA DAY

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Canada day is a day for Canadians to Celebrate independence. It is celebrated on July 1st unless that date is a Sunday in which case it is celebrated the day after. On July 1st of 1867 the queen of England gave them independence.

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UNITED STATES INDEPENDENCE DAY The Independence Day referred to here is the U.S. Independence Day also known as the “4th of July” that commemorates the adoption of the Declaration of Independence.

It is a Legal U.S. Holiday that is celebrated with picnics and fireworks.

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

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Conferences in JUNE - JULY 2013 SPEE Annual Meeting

PIRA Scenario Planning Conference

06/08/2013 - 06/11/2013

06/18/2013 - 06/18/2013

Coeur d’Alene, Idaho, USA

Houston, TX, USA

713 651 1639 • 713 951 9659

www.pira.com

info@spee.org • www.spee.org

Offshore Support Vessel Technology Conference

PIRA Understanding Global Oil Markets Conference

06/09/2013 - 06/12/2013

06/19/2013 - 06/20/2013

Abu Dhabi, United Arab Emirates

Houston, TX, USA

www.oilandgasiq.com/events.cfm?p=2

www.pira.com

The 2013 EIA Energy Conference 06/17/2013 - 06/18/2013

AIChE Massive Energy Storage For The Broader Use Of Renewable Energy Sources Conference

Washington DC, USA

06/23/2013 - 06/26/2013

JW Marriott

Newport Beach, CA, USA

www.eia.gov

www.aiche.org/resources/conferences?page=1

Gas and Oil Expo North America 06/11/2013 - 06/13/2013

Performance Excellence for Oil and Gas Conference

Calgary, AB, Canada

06/24/2013 - 06/25/2013

www.gasandoilexpo.com

Houston, TX, USA www.oilandgasiq.com/events.cfm?p=2

AIChE Process Development Symposium Oak Brook, IL, USA

API Exploration and Production Standards Conference on Oilfield Equipment and Materials

www.aiche.org/resources/conferences?page=1

06/24/2013 - 06/28/2013

06/11/2013 - 06/13/2013

Washington, DC, USA

Global Petrochemical Conference

202 682 8000 • 202 682 8222

06/11/2013 - 06/13/2013

registrat@api.org

Frankfurt, Germany

www.api.com

www.wraconferences.com

Oil & Gas Asset Integrity Management Conference 06/24/2013 - 06/25/2013 Reliant Center Houston, TX, USA O&G Asset Integrity Management 2013 is a unique event for Pressure Equipment and Pipeline Managers and Operators. We bring together asset design, maintenance, inspection, corrosion and safety specialists to address key priorities, benchmark and share best practices. www.wbresearch.com/assetintegrityusa

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | JUNE 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

SOUTHCENTRAL

Support Equip.

AUCTIONS

COMPANY

DATES

LOCATION

DRILLING & WELL SERVICE TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Jun 05, 2013 Jun 06, 2013

Odessa, TX

DRILLING & WELL SERVICE TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Jun 18, 2013 Jun 20, 2013

Oklahoma City, OK

OILFIELD EQUIPMENT TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

July 18, 2013 July 20, 2013

Oklahoma City, OK

OILFIELD EQUIPMENT TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Sept 11, 2013 Sept 12, 2013

Odessa, TX

INVENTORY

INTERNET AUCTIONS

COMPANY

DATES

LOCATION

PRIME PIPE & EQUIPMENT SEALED BID

Network International Inc

Jun 05, 2013 Jun 12, 2013

Internet

PIPE & EQUIPMENT AUCTION

Network International Inc

Jun 12, 2013 Jun 19, 2013

Internet

CONSTRUCTION & VEHICLE AUCTION

Network International Inc

Jun 19, 2013 Jun 26, 2013

Internet

PIPE & EQUIPMENT AUCTION

Network International Inc

Jul 10, 2013 Jul 17, 2013

Internet

PIPE & EQUIPMENT AUCTION

Network International Inc

Jul 24, 2013 Jul 31, 2013

Internet

PIPE & EQUIPMENT AUCTION

Network International Inc

Aug 07, 2013 Aug 14, 2013

Internet

PIPE & EQUIPMENT AUCTION

Network International Inc

Aug 21, 2013 Aug 28, 2013

Internet

INVENTORY

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

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Source: U.S. Energy Information Administration, Petroleum Supply Monthly

A number of western states increased oil production since 2010.

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

Onshore oil production, including crude oil and lease condensate, rose more than 2 million barrels per day (bbl/d), or 64%, in the Lower 48 states from February 2010 to February 2013, according to recent estimates in EIA’s Petroleum Supply Monthly.

The production growth that began in 2010 has continued, and while Texas and North Dakota have received a lot of attention for their production increases (Texas more than doubled its production, while North Dakota’s output nearly tripled), there are other states where increases are noteworthy. Five western states in particular—Oklahoma, New Mexico, Wyoming, Colorado, and Utah—account for 15% of the increase. Production in each of these states increased between 23% and 64% over the same three years.

Lower 48 onshore production (total U.S. Lower 48 production minus production from the federal Gulf of Mexico and federal Pacific) increased between February 2010 and February 2013, primarily because of a rise in productivity from oil-bearing, low-permeability rocks. Although production increases in North Dakota’s Williston Basin and Texas’s Eagle Ford formation and Permian Basin outpaced other regions, gains in the other Lower 48 states add up to roughly 320,000 bbl/d of production over the past three years (290,000 bbl/d in the five states featured here).

Combined crude oil production in Oklahoma and New Mexico averaged more than 530,000 bbl/d in February 2013, about the same as California’s February production.

California is the fourth largest producing state after Texas, North Dakota, and Alaska. Oklahoma and New Mexico’s gains in production, up 51% and 46%, respectively, compared with February 2010, are primarily from the Anadarko and Permian Basins. Wyoming and Colorado’s production increased 23% and 64%, respectively; their top producing regions include the Powder River, Greater Green River, and Denver basins. Utah’s production increased 45%, in part because of production from the recently discovered Covenant Field within the central Utah thrust belt, and ongoing production from the Uinta and Paradox basins.

In all of these states, increasing production was achieved by applying horizontal drilling and hydraulic fracturing to low-permeability rocks. In many fields (in basins such as the Permian, Uinta, and Powder River) enhanced oil recovery techniques such as CO2 injection are also boosting production from conventional reservoirs.

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

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Source: U.S. Energy Information Administration, Petroleum Supply Monthly

OS H A’s Fall P rev ention Campaign Occupational Safety & Health Administration

FALLS ARE THE LEADING CAUSE OF DEATH IN CONSTRUCTION. In 2010, there were 264 fall fatalities (255 falls to lower level) out of 774 total fatalities in construction. These deaths are preventable.

Falls can be prevented and lives can be saved through three simple steps: • Plan • Provide • Train OSHA has begun a nationwide outreach campaign to raise awareness among workers and employers about the hazards of falls from ladders, scaffolds and roofs.

The educational resources page on their website, osha. gov, gives workers and employers information about falls and how to prevent them. There are also training tools for employers to use and posters to display at their 20

worksites. Many of the new resources target vulnerable workers with limited English proficiency.

We invite you to join in this effort by helping to reach workers and employers in your community with the resources you find on this site. OSHA will continue to add information and tools throughout the year.

OSHA has partnered with the National Institute for Occupational Safety and Health and National Occupational Research Agenda (NORA) - Construction Sector on this nationwide outreach campaign to raise awareness among workers and employers about common

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

protection and the right equipment for the job, including the right kinds of ladders, scaffolds, and safety gear.

Different ladders and scaffolds are appropriate for different jobs. Always provide workers with the kind they need to get the job done safely. For roof work, there are many ways to prevent falls. If workers use personal fall arrest systems (PFAS), provide a harness for each worker who needs to tie off to the anchor. Make sure the PFAS fits, and regularly inspect all fall protection equipment to ensure it’s still in good condition and safe to use.

TRAIN everyone to use the equipment safely Falls can be prevented when workers understand proper set-up and safe use of equipment, so they need training on the specific equipment they will use to complete the job. Employers must train workers in hazard recognition and in the care and safe use ladders, scaffolds, fall protection systems, and other equipment they’ll be using on the job.

fall hazards in construction, and how falls from ladders, scaffolds and roofs can be prevented and lives can be saved. Here’s how:

• OSHA has provided numerous materials and resources that employers can use during toolbox talks to train workers on safe practices to avoid falls in construction.

Falls from ladders, scaffolds and roofs can be prevented and lives can be saved through three simple steps: Plan, Provide and Train.

Source: Osha.gov

PLAN ahead to get the job done safely When working from heights, such as ladders, scaffolds, and roofs, employers must plan projects to ensure that the job is done safely. Begin by deciding how the job will be done, what tasks will be involved, and what safety equipment may be needed to complete each task.

When estimating the cost of a job, employers should include safety equipment, and plan to have all the necessary equipment and tools available at the construction site. For example, in a roofing job, think about all of the different fall hazards, such as holes or skylights and leading edges, then plan and select fall protection suitable to that work, such as personal fall arrest systems (PFAS).

PROVIDE the right equipment Workers who are six feet or more above lower levels are at risk for serious injury or death if they should fall.

To protect these workers, employers must provide fall

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

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June & JULY TOP

FESTIVALS AND EVENTS IN TEXAS

ROAD TRI P

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

SUMMER CONCERT SERIES June to August 1705 W. Missouri Midland, TX Enjoy Sunday evening concerts on the lush Museum of the Southwest grounds. Bring a picnic and spend an hour entertained by the best local jazz, pop, country and folk music groups. No admission.

(432) 683-2882 SUMMER MUMMERS June to Labor Day Catch a production chocked full of mayhem and hilarity performed at the historic Yucca Theatre in downtown Midland.

Melodrama is a unique theatrical experience invented in America and no one does it quite like Summer Mummers, the oldest existing theatrical organization of its kind in the country. Join Summer Mummers as we celebrate our 65th Season with Magical Malevolence in Midland. Bring your friends, bash the villain with popcorn and enjoy side-splitting laughter during the olio.

Call for tickets and times 432-570-4111 www.mctmidland.org or www.summermummers.com WEST TEXAS FORD DEALERS MEX-TEX FAMILY FIESTA June 7-8 Midland, TX Centennial Plaza-Downtown Midland by Midland Center (105 N. Main) www.txchamber.com WILD HORSE PRAIRIE DAYS June 7-8 Haskell, TX Western musical entertainers, ranch rodeo, parade, ranch horse competition, kids’ rodeo, dance, trade show, cutting horse contest & cowboy church service at Haskell Rodeo Grounds at Civic Center.

(940) 864-2477 www.haskelltxchamber.com.

TEXAS BLUEBERRY FESTIVAL June 8 Nacogdoches, TX 22

The largest producer of blueberries in Texas presents a blueberry pancake breakfast, kid’s water park, arts & crafts, farm-fresh blueberries for sale, classic car show, live musical entertainment, blueberry farm tours & family fun downtown.

Presented by Brookshire Brothers.

(936) 560-5533 www.texasblueberryfestival.com

CLASSIC CAR SHOW June 8 Paris, TX 30+ classes, many special awards, ARTS/CRAFTS, food, SWAPMEET, kid activities, special shopping! Cruise night, giant 50’s street party, music/entertainment Friday 6pm, Love Civic Center - 2025 South Collegiate. Hosts: Red River Valley Honkers Car Club. SEEKING VENDORS: Contact S. Carrol.

(903) 739-9763 www.RRVhonkers.com • kscarrol@att.net TEXAS WATER SAFARI June 8 San Marcos, TX Known as the world’s most challenging boat race, this 260mile canoe race begins at Aquarena Center and continues to the Gulf Coast. San Marcos has been the starting point for this annual event since 1963. It’s a favorite for canoeists, kayakers & spectators.

(888) 200-5620 www.toursanmarcos.com SUMMER ANTIQUES SHOW June 8-9 Sat 9 AM - 5PM. Sun 10 AM - 4 PM Brenham, TX

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

KC Hall on 577, 1/4-mile north of Hwy 290 East. A wide variety of antiques, collectibles and treasures by dealers from Texas & across the nation! Country furniture, glassware, vintage quilts/ textiles, western and country items, Texana, Farmers Market, baked goods, kettle corn, preserved pickles, flowering plants/ herbs. Admission $5.

(979) 865-5618 or 1-888-BRENHAM www.ruraltexasantiquesshows.com JUNETEENTH CELEBRATIONS June 14-15 San Marcos, TX Enjoy the oldest known annual celebration of the ending of slavery. Festivities include an old fashioned picnic, BBQ cookoff, and fun for the entire family. Free admission.

(888) 200-5620 www.toursanmarcos.com

69th ANNUAL STOCKDALE WATER-MELON JUBILEE June 14-15 Stockdale, TX Melons are celebrated with a parade, rodeo, arts & crafts, games, “Largest Melon in Wilson County” contest, Watermelon Crawl 5K Run, volleyball tourney, royalty, dog show & concerts.

Stockdale City Park. Held since 1937. www.stockdaletx.org ECTOR COUNTY EVENING LEGAL CLINIC June 18 5:30 PM – 7:30 PM Catholic Charities 2500 Andrews Highway Odessa, Texas Free legal assistance to low-income, low-asset people in

JUNETEENTH CELEBRATION “A CELEBRATION OF FREEDOM” June 19 12 NOON -11:30 PM Woodson Community Park 1020 E Murphy Odessa, Texas COMMUNITY EVENTS: Food vendors, blues artist, parade, gospel celebration, annual picnic, basketball tournament, free admission.

(432) 853-1344 www.odessabcc.org TEXAS DREAM CRUISE June 29 Frisco, TX Hey, car enthusiasts! The Texas Dream Cruise is gearing up to become the largest one-day car show & cruise held annually in the Southwest. If it has wheels, it’s time to DUST IT OFF & SHOW IT OFF! $20 by April 30 to show or cruise your car at FC Dallas Stadium in Frisco. The Rumble Kings band & many family activities are all free to the public.

Find us at www.texasdreamcruise.com Facebook (Texas Dream Cruise) and twitter (TXDreamCruise) 75th FORT GRIFFIN FANDANGLE June 20-22 & June 27-29 Albany, TX Recapturing wild characters of the old west through a grand story, plus singing, dancing, horses and a herd of longhorns.

Presented in a renowned amphitheatre production, “Texas’ Oldest Outdoor Musical” features a local 400-member musical cast. Free activities all day. Parade Sat 5pm. BBQ 5pm nightly.

Tickets and info: (325) 762-3838 www.fortgriffinfandangle.org fandangle@bitstreet.com Photos Courtesy of The Albany News

WESTERN DAYS June 18-22 Elgin, TX Come experience exciting rodeo action. Carnival, arts/crafts, live music & dance on Friday night. Longest parade in Central Texas on Saturday morning. Only 19 miles east of Austin on Hwy. 290.

(512) 285-4515 www.elgintxchamber.com.

civil legal matters including: Bankruptcy Consumer Law Debt Harassment Employment Law Family Law Wills and Probate (No criminal cases) Appointments required.

40th ANNUAL OUTLAW PRO RODEO & SUTTON COUNTY DAYS June 28-29 Sonora, TX Parade, dance, arts & crafts fair, PRCA Rodeo, food booths, children’s rides, live entertainment and much more. Located at Sutton County Park & Arena Complex.

(325) 387-2880 or 1-888-387-2880 www.sonoratexas.org

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

23

Tech

Bites

Source: The Verbeck Group

FORENSICS at Your Fingertips Portable Device Takes Aim at Terror & Drug Wars...

“This research can have an immediate impact for military investigations and the war fighter,” Verbeck says. “The analysis of trace residue of illicit chemistry within biometric data — fingerprints, electrostatic lifts — could pinpoint potential threats, and lead to acceptable conflict resolution.

Though Guido Verbeck has had a hand in developing a number of innovative lab devices, one in particular has prompted a high degree of interest lately – perhaps because it sounds like something right out of TV Land.

“There’s definitely a CSI quality to the forensics device I’ve developed,” says Verbeck, an associate chemistry professor at the University of North Texas. “For one thing it’s my latest project, and for another people associate its use with some of what they’ve seen on television.”

Verbeck has developed an ultra-portable piece of lab equipment he calls a nanomanipulator, which soldiers in the wars on drugs and terror will use in forensic analysis. Without destroying a piece of evidence — like a fingerprint — Verbeck’s device can detect and analyze chemicals present on a nano scale.

“Chemical signature data from extracted residue can offer another avenue to group and characterize persons,” he says. “The majority of illicit drugs and other illicit chemistries, because they’re made in less than reproducible conditions, offer chemical signatures, or impurities in development, pointing to variations in manufacturing that could be acquired using this method, thus linking group and distribution chains together from the chemical fingerprint of the sample.”

Investigators currently have access to similar technology, but Verbeck says his device is unique in that it offers more precise analysis and portability. Soldiers will be able to perform analyses in field laboratories, as opposed to permanent labs, and move along investigations at a quicker pace. With that flexibility, locating and detaining suspects on the run becomes easier.

What that means is that a soldier can use one of Verbeck’s devices, which are about the size of a DVD player, to find out much more from a fingerprint than who left it. He says certain chemical indicators present on a print or other sample could positively link someone to activities such as bomb making or narcotics production.

24

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

The U.S. Department of Defense, the National Science Foundation, and Zyvex Instruments of Richardson have all supported Verbeck’s research through contracts or grants. Verbeck says his device will ship out with U.S. troops beginning summer 2013.

Visit Guido Verbeck’s website to learn more about his research: www.chemistry.unt.edu/~verbeck/ gverbeck@unt.edu

FISHING & RENTALS

FISHING & RENTAL TOOLS REVERSE UNITS FOAM/AIR UNITS

1511 Garden City Hwy • PO Box 150

MIDLAND TEXAS

432.684.3898 JUNE 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

25

PBE NEWS BRIEFS Watching the basin

UPDATE: TRAIN CROSSING ACCIDENT IN MIDLAND At the end of May, The National Transportation Safety Board released hundreds of pages of documents detailing their findings from the November 15th train accident involving a Show of Support parade float. The accident killed four float passengers, injured 5 others and turned the eyes of the nation on the Permian Basin for a straight week.

The documents released are factual in nature and do not provide any analysis. They include graphic interview transcripts, photographs, and other documents from the investigation. All of the materials are now available on the NTSB’s website: http://go.usa.gov/bc9e Additional material will be added to the docket as it becomes available.

Analysis of the accident, along with conclusions and a determination of probable cause, will come at a later date when the final report on the investigation is completed.

Watching the GOVERNMENT

EXTENDED TAX CREDITS COULD RAISE PROJECTED RENEWABLE ELECTRICITY CAPACITY AND GENERATION The Internal Revenue Service (IRS) recently released guidance clarifying the eligibility for the newly extended renewable electricity production tax credit (PTC). Congress passed the extension on January 1, 2013 as part of the American Taxpayer Relief Act of 2012 (ATRA). EIA expects this extension could result in significant wind capacity additions over the next three years, leading to higher generation from wind.

Compared with the Annual Energy Outlook 2013 Reference case, which does not include reference to ATRA, the extension of the PTC increases renewable generation through the projection period, but the effect varies greatly over time. In the near term, ATRA leads to a large increase in wind generation, up by 34% in 2016 compared to the reference case. Total projected renewable generation is 9% higher in 2016.

ATRA extended several tax credits to the energy sector (among other things), including the tax credits for utility-scale renewables, residential energy efficiency improvements, and biofuels. EIA’s analysis of ATRA found that the most significant impact on energy markets came from the extension of the PTC for wind projects.

A crucial new feature of ATRA is the relaxation of the requirement in previous versions of the PTC that a qualifying wind project be in service by a specified date (most recently, the end of 2012). Instead, ATRA requires that qualifying wind projects be under construction by the end of 2013. Source: www.eia.gov 26

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

Watching the STATE

SIX SIGNS THE TEXAS ECONOMY IS STRONG AND GETTING STRONGER 1. Texas jobs came back; the national economy’s – not yet. By the end of 2011, Texas had replaced every job lost in the recent recession, while the U.S. as a whole has only replaced 44 percent of pre-recession jobs.

accounted for 19 percent of the nation’s population growth in the past year.

2. Texas homes are selling. Sales of existing singlefamily homes have increased 12 percent since last year.

5. We’re a very confident lot. Our consumers, that is.

Consumer confidence in the Texas region is 90.2 and has increased 20 percent in the past year. Nationwide, consumer confidence is just 62.0.

3. State revenues are getting oilier and gassier. Yeah, that’s right, we said oilier and gassier. In the first ten months of this fiscal year, tax collections from oil and natural gas production have increased nearly 50 percent.

6. That sound you hear is cash registers ringing. Okay, maybe they don’t actually ring anymore in this day and age, but you’ll get our point when we tell you that June 2012 state sales tax receipts were 15.2 percent higher than June 2011.

4. “New Texans” is a growth industry. With more and more people coming here drawn by economic opportunities and our wonderful quality of life, the Lone Star State

Source: www.thetexaseconomy.com

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

27

Watching the Nation

ELECTRIC POWER USAGE UPDATE Data in the May 2013 Electric Power Monthly (EPM) are for March 2013, during which net generation in the United States rose 5.3 percent from the March 2012 level. Consumption of coal for power generation rose 22.7 percent compared to March 2012. The average retail price of electricity for March 2013 was 9.69 cents per kilowatthour, up 1.4 percent from what it had been in March 2012.

Watching the WORLD

NIGERIA OIL THEFT TROUBLE It seems that the level of crude oil theft from western oil companies’ pipelines in Nigeria is decreasing thanks to Nigerian government intervention.

At the beginning of the year, Shell urgently asked Nigeria to increase security forces to stop growing oil theft and threatened to stop its operations in the country if measures were not taken. Crude oil theft already caused the company revenue losses of $10 billion per year (Vanguard).

Vanguard reports that the Country Chair, Shell Companies in Nigeria, Mr. Mutiu Sunmonu said ‘we are seeing progress, but like I tell you, this is a very big operation, so I am not expecting solution over night, but what I am expecting is that government security agencies will really keep at what they are doing now. If they keep at it for a while, I am sure we will begin to see a significant reduction.’

According to the US Energy Information Administration, Nigeria is the 12th biggest oil producing country in the 28

world and the largest oil producer in Africa. Nigeria is a profitable oil area for many western oil companies such as Eni, Total, Chevron and as mentioned Shell. However, this is a trouble region for oil players due to criminal parallel organizations, oil theft and consequently frequent closures to repair oil facilities.

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

Watching Offshore

GULF OF MEXICO GETS GO AHEAD FROM EXXON MOBIL US Exxon Mobil Corporation and Norwegian Statoil have agreed to proceed with Julia oil field development in the Gulf of Mexico as it is estimated to contain 6 billion barrels of oil and gas. The companies will manage to produce 34,000 barrels of oil per day from 2016 when start-up production is planned to start.

“Julia is one of the first large oil discoveries in the ultra-deepwater frontier of the Gulf of Mexico,” said Neil W. Duffin, president of ExxonMobil Development Company. “This resource is located more than 30,000 feet below the ocean’s surface. Enhanced technologies will be deployed to ensure the safe and environmentally responsible development of this important energy resource.”

Statoil US Offshore’s Senior Vice President confirms “Julia has a substantial long-term production potential which is expected to be fully realized through the application of technology to unlock its full potential.”

Capital cost for the project is estimated to be more than $4 billion and the field was discovered in 2007.

“The development of Julia will provide a new source of domestic energy and well-paying jobs over the next several years,” said Duffin, adding “Access to resources such as Julia will contribute to U.S. energy security for many years to come.”

Source: www.bbc.co.uk

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

29

RESTAURANT Fabela’s

BITES

The story behind this family restaurant that has served the Basin for almost 15 years

Los Fabela’s Restaurant Lupe Fabela, who only went to school through the 2nd grade, started his career at the age of 19 as a janitor and cook at The Warfield Truck Stop Restaurant located off of Highway 20 in between Midland and Odessa.

Working his way up to kitchen manager, Lupe stayed with Warfield for over 20 years. When tough times fell on the Basin, he was instructed to begin laying off several of the employees who had worked for him for years. It was an action that seemed inconceivable for him and a decision that sparked a fire and a new vision in this husband and father of three. Around the same time, Warfield Too was opened just down the street on Country Road 127. The added location was meant to accommodate the large population of Texas Instrument and oil field employees frequenting that area during the boom in the 80’s; however, lagging profits and a retiring owner led to the restaurants’ closure a few years later.

That’s when Lupe’s dream began to take shape.

Emma recalls how Lupe would tell her that he would own that little restaurant on CR 127 someday. She thought he was crazy, certain it was a pipe dream they could never make a reality. Despite the odds, Lupe’s dream to begin his own restaurant grew and he soon built up the confidence to make the new owners of the closed down Warfield Too property, an offer. In August of 1998, using his house as collateral for the loan, Lupe was in business. Selling a variety of Mexican and American dishes popular to oil and gas industry employees, the 30

couple remembers that in the first 2 months of business, their daily sales were consistently under $200.

The building owners told Lupe he probably wouldn’t make money at that location and they’d be surprised if he made it 6 months, but he was determined. The first few months were no doubt a struggle, as Emma recalls having to run 5 burrito routes to make ends meet. But what began as an action of desperation would later develop into what is now the family’s very successful catering business.

8 years after putting it all on the line for a dream, Lupe and Emma Fabela not only made that little restaurant profitable, but they made enough profit to pay off the building, completely.

Fast forward to today and the name Fabela’s has become a household name in the Permian Basin. Beyond the small restaurant they started on CR 127, they have since expanded into a satellite restaurant at the airport and most recently taking over the popular lunch time stop

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

on Highway 80, formally known as Prescott’s. Fabella’s has also grown to offer a full array of catering services to companies across the Permian Basin, reaching into Ozona, Pecos, Monahans, Denver City and even Dallas.

When asked what their secret was, without missing a beat, Lupe and Emma said, “perseverance”. They never gave up and kept the faith even when the odds and the bills were stacked against them. Emma adds that they’ve always treated their customers as friends, striving to create more of a family environment than a business, and people in this area appreciate that. Having a lot of long term employees including several members of their own family has also made a difference for this family business, as everyone really does care and feels like they’re part of the family. The delicious and hearty homemade dishes haven’t hurt either.

The new location on Highway 80 features a large meeting room that can seat up to 200 people and is regularly used for safety meetings and other business related gatherings. There is also an outside area with a stage that is currently under construction, set to open this summer. The spacious new area, in which Lupe is doing most of the construction work himself, will be able to hold about 500 people, when complete.

Emma and Lupe both reinforced that they are so blessed and feel God has guided them through every step of this journey, bringing them to where they are today: a family that is truly living the American dream.

FOOD

SAFETY

TIPS

Year after year food borne illness, or “food poisoning” spikes in the summer months. This is largely due to the fact that people are spending more time outside, barbequing or picnicking with family, hiking or camping. All of these outdoor activities typically lead to eating outdoors and the likelihood of food being left outside for long periods of time. Because the higher temperatures cause bacteria to thrive more easily in foods, it’s always important to cook and store your food properly to avoid food borne illnesses, such as salmonella.

Most people infected with Salmonella develop diarrhea, fever, and abdominal cramps 12 to 72 hours after infection. The illness usually lasts 4 to 7 days, and most recover without treatment. However, if symptoms are too severe, it is recommended you see a physician. The elderly, infants, and those with impaired immune systems are more likely to have a severe illness.

For more information on booking a meeting or catering, please call (432) 563-3505

Here are some basic principles to keep in mind to avoid salmonella and other foodborne illnesses while spending time outdoors this year:

Just when Lupe said he was ready to sell his restaurant on CR 127 and look into a modest retirement, a customer pulled him aside one day and said, “God’s in this place”. After an inspiring conversation, the stranger told Lupe to not be surprised if he got another restaurant. Within 3 days, the opportunity to take over Prescott’s Cafe came about and the rest is history.

• Keep cold foods cold and hot foods hot.

• Bacteria grows slower under 40 degrees F or above 140 degrees F, so anywhere in-between is considered a bacterial “Danger Zone”` • No food should be kept in the “Danger Zone” temperature range for any more than 2 hours.

• Food should not sit in direct sunlight for more than an hour.

• When using a cooler, blocks of ice last longer than cubes • Use milk cartons or plastic bottles with frozen water inside for blocks.

• Always keep uncooked meats separated.

• Keeps foods in separate coolers than drinks to avoid opening and closing coolers.

• Always wash hands when handling food.

• Cook or freeze fresh poultry, fish, ground meats, and variety meats within 2 days. Other beef, veal, lamb, or pork, should be cooked within 3 to 5 days.

FABELA’S CATERING Lupe & Emma Fabela - Owners 12302 West Highway 80 East Midland TX 79701 Phone: (432) 563-2882

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

31

by Daniel Stephens

Inspires

The following is a prophetic word spoken by Pastor Jim Laffoon during a recent Wednesday night church service at MidCities Church, in between Midland and Odessa.

Rediscover Sabbath Vacation?

So I just got back from a week of vacation. The truth of the matter is, I’m not sure vacation is the correct word for it when you have young kids. The word vacation implies some sort of vacating. But when you leave a four-bedroom home with 6 people to stay for a week in a hotel room, the only thing that truly vacates is your sanity. I could go on about naps, false fire alarms, and inconvenient diaper mishaps during Shamu’s big moment, but I digress.

The big problem with a vacation is coming back. The emails, phone calls, appointments, and to do list. Yikes.

Is it even worth it?

Worth It:

Yes it is. While the first few days on vacation we look like a nervous crack addict, checking our phone every ten seconds, trying to find a Wi-Fi password so we can download something, eventually we settle down. We get into the rhythm of family. Sure the hotel room is cramped and crazy, but the closeness and re-connection with your family reminds you of why you love them.

That moment you are watching her swim with your kids reminds you of why you said yes at the altar to Sugar (that’s what I call her, because she is so dang sweet!). That moment when 32

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. you are laying on the grass with you son, looking up at the stars and he asks you “Dad, why was there nothing before God created something”?

When did he become philosophical?

He’s seven! Yes, it’s completely worth it. The problem is, there’s only one or two vacations per year.

Sabbath:

A few years ago I read a book by Mark Buchannan called “The Rest of God”.

In it, Buchannan begins to discuss what the Bible calls Sabbath. He describes Sabbath as a gift from God, a day of rest, a command we don’t take very seriously and also the key to experiencing God’s rest. The Sabbath made the first ever “top 10 list”, breaking in at number four, “ ‘Observe the Sabbath day, to keep it holy, as the Lord your God commanded you.”

The Bible gives two primary reasons for this commandment.

The first is that God created the world in six days and he rested on the seventh day, calling this day holy

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

(meaning set apart). This implies that God modeled for us a rhythm of work and rest that should be emulated.

The other reason given for Sabbath is a reminder to the Hebrew people that they were once slaves in Egypt, but God delivered them from slavery and set them free. As a slave, there is no rest, but as a free person, God sets aside a day (Holy) to rest and be reminded that they are no longer in chains. This caused me to wonder, if I was setting aside a day to rest? Was my day off just an opportunity to extend work into the home environment? Had I become enslaved to my job?

Rediscover Sabbath:

Do you ever have those moments when you realize; maybe God knows what He’s talking about? From the very beginning, He knew we would take something he established, work, and we would worship it. We would invest all of our time, energy, and

emotion into building, creating, and maintaining a company that would provide financial stability and personal identity. And yet, He asks us to let go for one day.

Release it.

Don’t touch it.

Trust Him with it.

Work hard, but then Rest.

Don’t be enslaved.

Remember that you are free.

Remember who freed you.

It’s in rediscovering Sabbath that you can rediscover what matters. You can rediscover weekly what you typically rediscover on day four of your vacation; connecting to your family, to God, and yourself is something you need. It’s a vacation every week, and it’s worth it.

What will you do on your Sabbath this week?

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

33

May 24, 2013

U.S. RIG COUNT - TEXAS

States &

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 2012

Last Week

This Week

Waiting to Spud

Texas RRC District 1

139

136

136

137

149

135

126

138

17

Texas RRC District 2

100

87

87

86

90

82

83

79

8

Texas RRC District 3

41

46

46

48

45

48

44

52

6

Texas RRC District 4

47

35

34

34

40

30

32

30

3

Texas RRC District 5

27

13

13

12

27

12

11

11

1

Texas RRC District 6

33

26

25

27

33

24

26

25

2

Texas RRC District 7B

12

13

13

16

26

18

17

19

3

Texas RRC District 7C

82

83

82

79

85

77

74

71

4

Texas RRC District 8

310

276

274

282

297

260

267

268

6

Texas RRC District 8A

36

36

38

35

39

34

32

33

3

Texas RRC District 9

26

22

21

21

43

31

30

31

7

Texas RRC District 10

77

60

62

57

83

65

61

63

1

Texas Total

930

833

831

834

957

816

807

820

61

U.S. Totals

1,982

1,769

2,176

1,926

1,918

1,933

102

Districts

1,769 1,762

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 34

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

through June 1, 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.

Company

Footage Drilled

% of Total

Average Footage

Well Starts

% of Total

Directional Wells

1

Helmerich & Payne, Inc.

19,890,398

16.10%

10,051

1,979

12.40%

1,737

2

Patterson-UTI Drilling Company, LLC

12,474,612

10.10%

9,753

1,279

8.00%

1,078

3

Nabors Industries, Ltd.

10,117,565

8.20%

7,412

1,365

8.50%

1,189

4

Precision Drilling Trust

5,522,513

4.50%

9,113

606

3.80%

533

5

Ensign Energy Services, Inc.

4,953,797

4.00%

5,767

859

5.40%

454

6

Nomac Drilling, LLC

4,661,232

3.80%

9,304

501

3.10%

500

7

Trinidad Drilling, Ltd.

3,472,940

2.80%

11,096

313

2.00%

268

8

Pioneer Energy Services Corp.

3,288,510

2.70%

9,450

348

2.20%

239

9

Unit Drilling Company

3,009,207

2.40%

7,756

388

2.40%

377

10

Savanna Energy Services Corp.

2,933,717

2.40%

10,947

268

1.70%

98

11

Cactus Drilling Company, LLC

2,861,188

2.30%

10,636

269

1.70%

248

12

Capstar Drilling, LP

2,711,779

2.20%

6,831

397

2.50%

57

13

Desoto Drilling, Inc.

1,747,437

1.40%

4,304

406

2.50%

404

14

Xtreme Drilling and Coil Services Corp.

1,689,372

1.40%

9,937

170

1.10%

168

15

Complete Production Services, Inc.

1,472,658

1.20%

10,227

144

0.90%

49

16

Sendero Drilling Company, LLC

1,309,230

1.10%

11,586

113

0.70%

0

17

CanElson Drilling, Inc.

1,166,605

0.90%

9,886

118

0.70%

11

18

Orion Drilling Company, LLC

1,108,081

0.90%

11,193

99

0.60%

96

19

Lariat Services, Inc.

1,081,682

0.90%

6,439

168

1.00%

90

20

Robinson Drilling of Texas, Ltd.

1,074,485

0.90%

11,077

97

0.60%

0

21

Union Drilling, Inc.

1,051,001

0.80%

10,406

101

0.60%

39

22

Latshaw Drilling & Exploration Company

1,006,351

0.80%

7,240

139

0.90%

136

23

Scandrill, Inc.

947,405

0.80%

12,146

78

0.50%

64

24

Big Dog Drilling Company

847,117

0.70%

11,766

72

0.40%

4

25

Sidewinder Drilling, Inc.

843,844

0.70%

5,663

149

0.90%

149

26

Cyclone Drilling, Inc.

841,175

0.70%

4,206

200

1.20%

188

27

Lewis Petro Properties, Inc.

807,000

0.70%

12,415

65

0.40%

65

28

Basic Energy Services, Inc.

768,774

0.60%

6,685

115

0.70%

25

29

SST Energy Corporation

754,752

0.60%

9,554

79

0.50%

67

30

Bison Drilling and Field Services, LLC

713,206

0.60%

11,503

62

0.40%

5

31

Silver Oak Drilling, LLC

683,523

0.60%

7,767

88

0.50%

33

32

Aztec Well Servicing Co.

598,042

0.50%

6,362

94

0.60%

45

33

Mattlock Drilling, LP

584,000

0.50%

12,696

46

0.30%

0

34

J.B. Hunt Gas & Oil Drilling, LLC

581,850

0.50%

10,978

53

0.30%

0

35

Murfin Drilling Company, Inc.

575,710

0.50%

4,643

124

0.80%

0

Total Top 100 for year 2013

123,737,234

100.0%

---

16,024

100.0%

---

RANK

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

35

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

through June 1, 2013

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.

RANK

Company

Footage Drilled

% of Total

Average Footage

Well Starts

% of Total

Directional Wells

1

Anadarko Petroleum Corporation

6,777,863

5.50%

10,254

661

4.10%

650

2

Chesapeake Energy Corporation

5,400,843

4.40%

10,229

528

3.30%

528

3

EOG Resources, Inc.

4,489,180

3.60%

10,489

428

2.70%

403

4

Devon Energy Corporation

4,237,434

3.40%

9,212

460

2.90%

419

5

Apache Corporation

4,020,057

3.20%

8,973

448

2.80%

194

6

BHP Billiton

3,817,590

3.10%

13,029

293

1.80%

285

7

Occidental Petroleum Corporation

3,743,108

3.00%

6,136

610

3.80%

300

8

Pioneer Natural Resources Company

3,629,782

2.90%

13,151

276

1.70%

149

9

Encana Corporation

2,570,614

2.10%

10,711

240

1.50%

229

10

Marathon Oil Corporation

2,415,110

2.00%

13,801

175

1.10%

175

11

Concho Resources, Inc.

2,408,162

1.90%

10,161

237

1.50%

87

12

Exxon Mobil Corporation

2,274,216

1.80%

6,748

337

2.10%

219

13

Shell Exploration & Production Co., Inc

2,272,280

1.80%

14,026

162

1.00%

161

14

Southwestern Energy Company

2,176,168

1.80%

4,630

470

2.90%

468

15

Chevron Corporation

2,126,922

1.70%

4,323

492

3.10%

184

16

ConocoPhillips Company

1,963,484

1.60%

7,792

252

1.60%

184

17

QEP Resources, Inc.

1,686,035

1.40%

9,526

177

1.10%

174

18

Whiting Petroleum Corporation

1,537,349

1.20%

9,043

170

1.10%

130

19

SandRidge Energy, Inc.

1,437,292

1.20%

5,284

272

1.70%

216

20

Noble Energy, Inc.

1,403,668

1.10%

10,098

139

0.90%

139

21

Energen Resources Corporation

1,392,350

1.10%

8,925

156

1.00%

19

22

Newfield Exploration Company, LLC

1,258,418

1.00%

6,520

193

1.20%

178

23

CrownQuest Operating, LLC

1,255,900

1.00%

12,076

104

0.60%

0

24

EP Energy E&P Company, LP

1,122,485

0.90%

10,022

112

0.70%

100

25

Murphy Oil Corporation

1,080,699

0.90%

9,736

111

0.70%

109

26

Oasis Petroleum North America, LLC

934,657

0.80%

9,943

94

0.60%

94

27

SM Energy Company

928,557

0.80%

8,005

116

0.70%

110

28

Linn Energy, LLC

894,430

0.70%

8,769

102

0.60%

32

29

Parsley Energy Operations, LLC

870,000

0.70%

12,985

67

0.40%

0

30

Plains Exploration & Production Company

854,847

0.70%

6,379

134

0.80%

60

31

Lewis Energy Group, LP

816,000

0.70%

12,364

66

0.40%

66

32

Cimarex Energy Co.

811,374

0.70%

10,818

75

0.50%

68

33

BP America Production Company

808,746

0.70%

9,985

81

0.50%

79

34

Continental Resources, Inc.

797,745

0.60%

2,839

281

1.80%

280

35

WPX Energy, Inc.

796,389

0.60%

6,925

115

0.70%

114

Total Top 100 for year 2013

123,737,234

100.0%

---

16,024

100.0%

---

36

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

May 23, 2013 Source: www.eia.gov

Midwest gasoline prices: some relief in sight...

Gasoline prices throughout the Midwest, also known as Petroleum Administration for Defense District (PADD) 2, have been trending sharply higher since mid-April. Both planned and unplanned refinery maintenance have limited gasoline production, and inventories, which were robust going into turnaround season, have been significantly depleted. While resupply from the U.S. Gulf Coast (PADD 3) is available via pipeline, transit time to the upper Midwest can be as long as three weeks.

According to EIA’s weekly survey of retail gasoline and diesel fuel prices, the average regular retail gasoline price for PADD 2 rose from 9 cents below the national average price on April 15 to 19 cents above the national average price on May 20. The price increase in Minnesota was particularly pronounced. The average retail regular gasoline price in Minnesota increased a total of 81 cents between April 15 and May 20, including an increase of 44 cents between May 13 and May 20. At $4.29 per gallon on May 20, the average retail regular price in Minnesota was the highest in the continental United States, 62 cents above the national average. At the same time, price increases have spread westward to North Dakota and other parts of the upper Midwest.

Higher gasoline prices in the Midwest largely reflect supply constraints stemming from decreased refinery runs and lower-than-normal gasoline inventories. Refinery utilization in the Midwest has fallen steadily since the start of 2013, and is now about 83 percent of capacity, below the U.S. average of 87 percent. As of May 17, Midwestern gross refinery inputs were averaging 279,000 barrels

per day (bbl/d) lower than at the start of the year (Figure 1). The reduction in runs reflects a combination of routine seasonal turnaround and maintenance activity, unplanned outages, and longer-term upgrading initiatives.

For example, according to trade press, planned maintenance efforts at the ExxonMobil Joliet, Illinois (239,000 bbl/d) and Marathon Catlettsburg, Kentucky (233,000 bbl/d) refineries reduced runs in the Midwest.

Unplanned outages, including those at Holly Frontier’s El Dorado, Kansas refinery (138,000 bbl/d) and Flint Hills’ St. Paul, Minnesota refinery (277,000 bbl/d), further stressed the system. Longer-term projects already underway magnified the impact of the planned and unplanned outages. BP’s Whiting, Indiana refinery (337,000 bbl/d), for example, has had 260,000 bbl/d offline since November as coking capacity is installed to increase its ability to run heavy crude. Northern Tier’s St. Paul, Minnesota refinery (74,000 bbl/d) was reported to have been shut down in April to undergo a planned expansion.

Gasoline inventories tend to increase in January through March, in anticipation of reduced refinery production during turnaround season (Figure 2). As refinery runs decrease, inventories are used to meet demand. PADD 2 gasoline inventories began April near the top of the fiveyear range but are now at the bottom of the range, having fallen 6 million barrels since April 12. The combination of lower production from PADD 2 refineries and reduced inventories put upward pressure on prices.

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

37

The national average diesel fuel price increased two cents for the second consecutive week, to $3.89 per gallon, seven cents lower than last year at this time. The Gulf and West Coast prices both increased four cents, to $3.78 per gallon and $4.01 per gallon, respectively.

The Midwest and Rocky Mountain prices are both up three cents, to $3.93 per gallon and $3.85 per gallon, respectively. Rounding out the regions, the East Coast price is $3.87 per gallon, up a penny from last week.

Propane inventories gain In Minnesota and North Dakota, which have experienced the largest price increases, markets are primarily supplied by the three refineries in those states: Flint Hills St. Paul, Minnesota, Northern Tier St. Paul, Minnesota and Tesoro West Coast Mandan, North Dakota (60,000 bbl/d).

Additional supplies arrive via pipeline from refineries in other parts of the Midwest and the Gulf Coast, and to a lesser extent from refineries located in Montana.

However, given the distance these additional barrels must travel, resupply can take weeks.

Total U.S. inventories of propane increased 2.2 million barrels last week to end at 44.0 million barrels, but are 10.0 million barrels (18.6 percent) lower than the same period a year ago. The Midwest and Gulf Coast regions led the gain by rising 1.0 million barrels each, while Rocky Mountain/West Coast and East Coast inventories each increased by just 0.1 million barrels. Propylene non-fuel-use inventories represented 7.9 percent of total propane inventories.

Trade press reports over the past several days indicate that supply constraints may be easing. Northern Tier is said to have recently resumed normal operations and the ExxonMobil Joliet refinery near Chicago is expected to restart soon. In addition, it has been reported that supplies shipped on the Explorer Pipeline from the Gulf Coast have begun to reach the market. Lastly, BP’s Whiting refinery could begin operating its upgraded crude distillation unit by the end of May or early June.

Gasoline and diesel fuel prices increase again The U.S. average retail price of regular gasoline increased seven cents for the second consecutive week, to $3.67 per gallon as of May 20, 2013, down four cents from last year at this time. The largest increase came in the Midwest, where the price increased 19 cents to $3.87 per gallon.

The Rocky Mountain price rose 11 cents to $3.67 per gallon. The Gulf Coast price is now $3.39 per gallon, an increase of three cents. On the West Coast, the price is up a penny to $3.95 per gallon. Rounding out the regions, the East Coast price increased one cent to $3.49 per gallon.

38

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

SAFETY TIPS As we face a brutally hot summer with consistent triple digit heat, it’s especially important for those who work outdoors to be aware of the early signs of heat stroke or dehydration, and how to avoid it.

The CDC reports that heat stroke is the most serious heatrelated illness.

• If possible, seek an air-conditioned environment. If you don’t have air conditioning, consider visiting an air-conditioned shopping mall or public library to cool off.

• Wear lightweight clothing.

• If possible, remain indoors during the hottest parts of the day.

• Do not engage in strenuous activities.

It occurs when the body is exposed to an excessive amount of heat and becomes unable to release the heat through sweating.

When heat stroke happens, the body’s temperature rises rapidly, the body loses its ability to sweat, and it is unable to cool down.

The CDC advises that warning signs can vary among individuals, but common signs of heat stroke may include:

Body temperature can rise to 106°F or higher within 10 to 15 minutes, and at 106°F brain death begins.

Heat exhaustion and heat stroke can be avoided if you protect yourself from heat-related stress by follow these prevention tips from the CDC: • Drink cool, non-alcoholic, non-caffeinated beverages.

• Drink water regularly throughout the day, even if you don’t feel thirsty.

• Be aware that some medications can make you more vulnerable to heat exhaustion.

• Rest, often.

• Take a cool shower, bath, or sponge bath.

• • • • •

• An extremely high body temperature (above 103°F) Red, hot, and dry skin (no sweating) Rapid, strong pulse Throbbing headache Dizziness Nausea Keep in mind that if you see any signs of severe heat stress, you may be dealing with a lifethreatening emergency. Have someone call for immediate medical assistance while you begin cooling the affected person.

If you’re ever in doubt, call 1(866) 68 NURSE (686-8773) and a trained medical professional can help answer your questions.

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

39

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