PBE Magazine

FREE

VOLUME 1 NO. 11

OCTOBER 2013

.com

BEMag

www.P

Generation YPE 8

Young Professionals in Energy

Leading Ladies in the Oil and Gas Business 14

Legally Speaking

Changes

18

On The

Ho r izon • U.S. RIG COUNT • TOP 35 Drillers & Operators

Industry Data

|

News

|

Events

34 |

Auctions

|

Calendar

|

Hot Topics in the Industry from a Legal Perspective

RESTAURANT BITES

Travel

Dumplins y Amigos

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Tips

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Energy

|

Tech

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(432) 559 - 5886 or email

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OCTOBER 2013

contents

Pbe Features 8

8

Generation YPE

14 Leading Ladies in the Oil and Gas Business 18 Legally Speaking - Hot Topics in the Industry

from a Legal Perspective

Other Editorials

13 Calendar of Events

14

16 Conferences in October - November 17 Upcoming Auctions 20 Festivals and Events in Texas 23 Safety Tips 24 Tech Bites - Facebook Launches Advanced

Ai Effort to Find Meaning in Your Posts 26 PBE News Briefs:

Basin, State, World, Nation, OffShore & Shale 33 PBE Cares - Kreations by Kimberly 34 Restaurant Bites - Dumplins y Amigos 36 PBE Inspires 38 By The Numbers: Texas Rig Count, Top Drillers, Top Operators 41 This Month in Petroleum

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

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LETTER FROM

THE EDITOR “We must become the change we want to see.”

- Mahatma Gandhi

Change is something we all face at one point or another, whether voluntary or forced. As the cool air begins to blow into town, the change of the season is on all of our minds bringing about thoughts of fall festivals and winter celebrations. In this edition of PBE, we dive into a world of other changes we are also facing in our community, in our businesses and in our lives.

You’ll read about a group of young generation professionals, closing the gap on the older generation as they move back to West Texas, join the family business and slowly change the face of our industry.

This phenomenon is bringing fresh perspective and fresh ideas to our booming economy. You’ll also read about a few local women who, when faced with change in their own lives, decided to take a step of faith and step into the role of a business leader in an industry dominated by men. Legal restrictions and policies are also threatening change in our industry as decisions are being made about environmental concerns and drilling logistics.

The constant change and evolution in our business is one of the driving forces behind continued success and constant progression in West Texas. But change isn’t always easy or comfortable and it’s only when we have the courage to journey into the unknown that we can accomplish the great success so many of our local business owners have seen, after a great step of faith.

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

/PBENERGYMAG @PBENERGY

OCTOBER 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

HALEY RAGSDALE WRITER haley@pbemag.com

ART DIRECTOR/LAYOUT & GRAPHICS

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

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

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

ADVERTISING For advertising info call 432. 559. 5886 or email sales@pbemag.com PUBLISHED BY: PBE Magazine, LLC. Permian Basin Energy Magazine 4500 Erie Drive Midland, TX 79703 Main Phone: 432. 559. 5886

IRIS FOSTER WRITER

www.PBEMag.com

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.

MICKEY ECKLES SENIOR ASSOCIATE PASTOR Mid-Cities Community Church Midland, TX mickey.eckles@midcities.org

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GENERATION

by Audrie Palmer

YPE

MORE YOUNG PROFESSIONALS MOVING HOME TO MIDLAND FOR OIL Nick McClure was a young Army captain, serving a tour in Iraq, when the opportunity came for him to return to Midland and work alongside his family at the oil business that bears their name.

At the time, McClure said, the price of oil was at a record high and the economy outside of the Permian Basin seemed to be failing. After four years’ experience in the Army, he was to have a desk job if he remained in the military and the idea didn’t seem appealing.

an e-mail list with 1,000 of those members considered “active.” The average attendance at monthly gatherings and programs is 125 and a happy hour mixer held in September by Concho Resources brought in between 150 and 175. Only 30 of those were Concho employees, Schmidt said.

In high school, many friends and classmates said they would never come back to the area. The military was another area he had an interest in and after Sept.

11, 2001, it was something of a catalyst that made him enlist, McClure said.

But working in the oil industry was something he always wanted to do and was thankful that he could return home to do it.

“We’ve just hit the tip of the iceberg (with new memberships),” he said adding that he believes the chapter will see even more individuals getting involved as the group expands and holds more educational type events.

The memberships have exceeded what the founders initially expected to have and those involved are from a diverse demographic, ranging from those who are working internationally to the entrepreneurs and those employed by major corporations like Chevron and Apache.

“So long as the opportunity presents itself, I’ll continue to work here in the industry,” he said.

McClure is one of many that is moving back to West Texas to work with their families or follow in their footsteps.

Doug Schmidt, director of the Young Professionals in Energy Midland chapter, said that in the past few years the group’s memberships have grown tremendously. What started in 2007 with only 15-20 members, the chapter now has at least 1,700 on 8

The group meets once a month for a happy hour or social event and once every other month for a professional development program. With chapters in every major energy city in the world, YPE Midland represents West Texas just as the YPE chapters represent Fort Worth, Dallas, Houston, California, New York and the Middle East.

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

Many may get the perception of Midland that it’s a small town and there’s nothing to do. Schmidt said this group serves as a perk for employers to tout in recruiting, as well as a retention tool, by creating an environment where young professionals can network and meet others in the area with similar interests.

“I think it (YPE) is important to have because it’s a professional organization where we’re all about the same age and entering a time of tremendous growth both professionally and socially,” he said.

Schmidt added that YPE Midland also serves as an educational tool and that the board hosts quality events with speakers Midland wouldn’t typically have access to to add a benefit to companies and members.

Growing up, Schmidt said his father always told him two things: That he could go to college anywhere he wanted as long as it was at the corner of Guadalupe and MLK in Austin and that he could do anything he wanted except work in the oil business. His father was a geophysicist and Schmidt had grown up in the oil business.

But during his junior and high school years, the oil business was a bleak time for Midland and many had left with no intention of ever coming back. When he

graduated in 2005, Schmidt was looking for work and wanted a break before going to law school. His father suggested working as a landmen for a few years to gain background and experience. He got a job and came home.

But there weren’t as many young people in town. He said now that YPE is one way to make life a little better for everyone here.

For Spencer Robnett, many of his peers made the claim that they would never move back to Midland after graduation but he said he was one that never did. After growing up in the Tall City, attending A&M University and serving as a DC congressional intern for six months, Robnett was glad to move home in June 2010.

He works for Plains Marketing LP and said that he’s observed there is a large gap generation wise from those who are 55 and older and those that are now entering the field that are 35 and younger.

Having a group like YPE Midland, he said, is important to the area because it provides a great opportunity for those who are both native and non-native Midlanders.

With new young families moving to the area every

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

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day, the Permian Basin and West Texas are playing an important role nationally in the oil industry and providing these professional opportunities are crucial and beneficial.

The oil business is something he’s grown up in as well, with his father and grandfather both preceding him in the industry. But with the younger group of professionals moving to the area for work and needing a voice to represent the young professional crowd, Robnett decided this year to run for the District 3 City Council seat.

He said both he and his wife were fortunate to grow up in a small town with West Texas values and that one day, they hope to raise their family in the same Midland that they were raised in.

With an estimated growth of 70,000 individuals and a population expected to reach 200,000 in the coming years, Robnett said there will be big issues of growth and development the city will soon face.

For McClure, being back in his hometown and working for his family (his father Donny started the McClure Oil Business in the 1970s while he was living in Hawaii and as an investor) he said the boom cycles of the oil industry have definitely created a generational gap in the area.

While McClure’s training has come from mentors who have worked for the family business for years, there’s a new life blood and industry in the oil and gas future.

But oil has been in McClure’s blood from an early age, even when he was a 14-year-old kid driving a tractor and repairing lease roads. The decision to transition out of military life back to Midland was an easier choice than other industries.

And for those pursuing a career in oil in the Permian Basin, there’s definite room for growth.

“There’s so much potential for young people in this industry right now,” he said.

“We want to help make Midland as good as when we grew up and make decisions that our kids and grandkids will be proud of,” he said.

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polos

t-shirts

koozies

pens

business cards

caps

flashlights knives

misc.

Promotional Products • TV/Video Production • Graphic Design • Photography

432-559-5886 12

promoitems@mad-ads-media.com

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

OBSERVANCES AND CELEBRATIONS

OCTOBER 2013

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Birthstone: Opal, Tourmaline Flower: Calendula

DISTINGUISHED LECTURE

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National: Diabetes Month,

An evening with Archaeologist and National Geographic Fellow Fredrik Hiebert Free Admission Reservations Required in Advance.

6:00 PM – 9:00 PM. Event Contact Phone: 432-683-4403.

Petroleum Museum. For more info visit www.petroleummuseum.org

Breast Cancer Awareness Month, Pizza Month, Popcorn Month, Seafood Month

NATIONAL CHILDREN’S DAY

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MIXER WITH THE MIDLAND CHAMBER AND ODESSA CHAMBER

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George HW and Barbara Bush Commemorative Center @ the CAF Airpower Museum 9600 Wright Dr., Midland, TX, 5 – 6:30 PM, 432-683-3381 or 432-332-9111

JBS DISTINGUISHED LECTURE SERIES WITH MIKE HUCKABEE

Event Contact Name: Linda Proctor. Event Contact Phone: 432-552-2852. Event Contact Email: proctor_L@utpb.edu. 7:00 PM – 8:00 PM. Wagner Noel Performing Arts Center 1310 N. FM 1788, Midland, TX 79707. For more info visit aa.utpb.edu

12-13

COMMEMORATIVE AIR FORCE AIRSHO

Stirring re-enactments of World War II air battles, inlcuding the Battle of Pearl Harbor, and special entertainment every year. Activities, food, drink and modern aircraft performances. For more information, call 432-563-1000 or www.airpowermuseum.org

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COLUMBUS DAY

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KEEP MIDLAND BEAUTIFUL MAKE A DIFFERENCE DAY

Annual Fall Clean-up. Call 697-7400 to register or online at keepmidlandbeautiful.com

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UNITED NATIONS DAY HALLOWEEN

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ECTOR COUNTY EVENING LEGAL CLINIC

Free legal assistance to low-income, low-asset people in civil legal matters including: Bankruptcy Consumer Law Debt Harassment Employment Law Family Law Wills and Probate (No criminal cases) Appointments required. 5:30 PM – 7:30 PM. Catholic Charities, 2500 Andrews Highway, Odessa, TX 79761

NOVEMBER 2013 Birthstone: Topaz, Citrine Flower: Chrysanthemum

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TEXAS LAWYERS FOR TEXAS VETERANS LEGAL CLINIC

1

Legal Advice Clinic for Veterans and Families. Appointments recommended, but walk-ins are also welcome. 9:00 AM – 12:00 PM. Odessa American Legion - 2701 East 8th Street, Odessa, TX 79761

THANKSGIVING DAY OCTOBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Ladies

LEADING

by Haley Ragsdale

in the Oil and Gas Business You may need to alter the image of the classic Stetson wearing oil man in your mind, and add a pair of high heels.

In 2001, with two children in tow, she and her husband moved to Midland for her husband’s career. She made the switch, to stay home with her two children, Chloe and Zack. She wanted to be able to attend all of their activities in middle and high school. Despite not working, she did anything but stay at home as she kept busy volunteering extensively and made many connections in the community which ultimately led her to Veritas in 2008.

The oil and gas industry may be notoriously a man’s world, but more and more women are making their mark in the boys club. Candyce Ferreri Roybal is one of them.

She is a partner and in house counsel at Veritas 321 Energy Partners, LP. “It is nice to know that now you are not at a disadvantage if you are a female in the oil and gas industry. There is lots of room for female landmen.”

Born and raised in New Mexico, Ferreri Roybal has practiced law for twenty years. Before making the move to Midland in 2001 she was a partner in a law firm in Albuquerque, New Mexico. Dubois, Cooksey, Bischoff and Ferreri specialized in business and corporate transactions, commercial litigation, family law, probate and taxation.

“I was working fifty to sixty hour weeks and I was burned out.” She said.

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Ferreri Roybal is one of four partners at Veritas and the only woman. With her legal expertise and background in contract and property law, joining the land business was a perfect fit according to Ferreri Roybal.

“I feel blessed to be a partner and manage and train a lot of people. It is about quality control. I want to make sure if it has the Veritas name on it, it is perfect, or as close to perfect as possible,” She said.

Veritas 321 Energy Partners, LP is one of the largest land companies in the area and employs over sixty people. Of those employees, eleven are female landmen including a new female law school graduate. She said that Veritas hires three to five interns every summer and always tries to hire women.

“There are a lot of savvy women that are now landmen.

Women are more detail oriented, efficient with their time and tend to be more personal in their interactions with others. Due to the flexibility, it can be the perfect career path for women,” she said.

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

Born and raised in Midland, Moore created her own firm in 2005 after becoming a widow when her children were one and two years old.

“I wanted to create my own balance with my family and be self-employed,” She said.

Now remarried, and with four children ranging in ages from eleven to fifteen, Moore notes that finding her work life balance can be difficult.

“Sometimes I go in really early or go in late when the kids are asleep so I don’t give up family time for work. I prioritize family,” Moore said.

Moore explained that there are not many women in her line of work especially out in the field, but hopes in the growing oil industry more women do get involved.

Candyce Ferreri Roybal The land business lends itself to a forty hour work week and part time work is also available which can appeal to women with children.

“There can be part time work available in this field as well,” said Ferreri Roybal. “It allows women to keep themselves in the mix and not give up their career.”

“It does, it really does seem 24/7, family, kids, work, not a lot of me time, but that will come later when the kids get older,” She said.

While the oil industry may still be dominated by men, women like Ferreri Roybal and Debi Moore are making their mark on the industry and paving the way for more women in the booming business.

Land work interests women from all walks of life. “We have a former teacher and a nurse working at Veritas that are now landmen. It is a great opportunity for some women who have grown children and want to re-enter the work force,” Ferreri Roybal said they are hoping for continued steady growth in the oil and gas industry and with that growth will come more opportunities for women. “If you have a degree, this can be a great career in the new exciting energy economy,” she said.

Yet, another woman making her mark on the oil industry is Debi Moore. Moore is the president of Sport Environmental Services, an environmental consulting firm Sport Environmental Services employs fourteen people and is located in Midland.

“We provide environmental risk management, compliance and litigation support which is really needed out here,” Moore said.

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

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Conferences in OCT. - NOV. 2013 SAP Solutions for the Energy Industry Event 10/06/2013 - 10/09/2013 Dallas, TX, USA www.sap-oil-and-gas.com

SPE Artificial Lift in Deepwater Form 10/20/2013 - 10/25/2013 Rancho Mirage, CA, USA www.spe.org/events/calendar

AFPM Q and A and Technology Forum 10/07/2013 - 10/09/2013 Dallas, TX, USA www.afpm.org/conferences

API Storage Tank Conference and Expo 10/21/2013 - 10/24/2013 San Francisco, CA, USA www.api.org/events-and-training/calendar-of-events/2013/ storage-tank

Clean Frackin Communication and Technology Conference 10/08/2013 - 10/09/2013 Beaver Creek, CO, USA http://www.petroleumconnection.com/cleanfracking/ PIRA New York Annual Conference 10/10/2013 - 10/11/2013 New York, NY, USA www.pira.com API Fall Committee on Petroleum Measurement Standard Meeting 10/14/2013 - 10/18/2013 San Francisco, CA, USA www.api.org/events-and-training/calendar-ofevents/2013/2013-fall-copm 2013 Executive Oil Conference 10/15/2013 Midland, TX, USA Midland County Horseshoe Arena, 2514 Arena Trail Speakers: Chuck Yates-Partner & Managing Director Kayne Anderson Capital Chad Michael-Managing Director, E&PTudor, Pickering, Holt & Co. Stephen Moore-Economist-The Wall Street Journal Note: Jefferson G. Parker-V ice Chairman & Manager-IberiaBank Corp 432-682-1300 www.midlandhorseshoe.com AFPM Environment Conference 10/20/2013 - 10/22/2013 New Orleans, LA, USA www.afpm.org/Conferences

Carbon Management Technology Conference 10/21/2013 - 10/23/2013 Alexandria, VA, USA www.fscarbonmanagement.org/content/cmtc-2013 Deep Offshore Technology International 10/22/2013 - 10/24/2013 Houston, TX, USA http://www.deepoffshoretechnology.com/index.html 4th World Petroleum Council Youth Forum 10/22/2013 - 10/25/2013 Calgary, Alberta Canada, Canada www.wpcyouthforum.com LAGCOE 10/22/2013 - 10/24/2013 Lafayette, LA, USA www.LAGCOE.com Emerging Oil and Gas Plays-Americas Event 10/23/2013 - 10/24/2013 Denver, CO, USA www.infocastinc.com/oil-gas-plays13 Oil & Gas Pipeline Conference & Exhibition 10/28/2013 - 10/30/2013 Houston, TX, USA http://www.oilandgaspipelineevent.com/index.html AIChE Annual Meeting 11/03/2013 - 11/08/2013 San Francisco, CA, USA www.aiche.org/resources/conferences?page=1 Annual World Shale Oil and Gas Conference and Exhibition 11/04/2013 - 11/07/2013 Houston, TX, USA www.worldshalegas.com Deepwater Operations Conference & Exhibition 11/05/2013 - 11/07/2013 Galveston, TX, USA http://www.deepwateroperations.com/index.html

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

Support Equip.

www.tradequip.com

SOUTHCENTRAL

AUCTIONS

COMPANY

DATES

LOCATION

OILFIELD EQUIPMENT TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Oct 09, 2013 Oct 10, 2013

Jourdanton, TX

BIG TRUCKS, WINCH TRUCKS, TRAILERS & CONSTRUCTION MACHINERY AUCTION

Machinery Auctioneers of Texas

Oct 16, 2013

Odessa, TX

OILFIELD EQUIPMENT TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Oct 23, 2013 Oct 24, 2013

Oklahoma City, OK

DRILLING & WELL SERVICE

Kruse Energy & Equipment LLC

Oct 30, 2013

Alice, TX

OILFIELD EQUIPMENT TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Nov 06, 2013 Nov 07, 2013

Odessa, TX

INVENTORY

INTERNET AUCTIONS

COMPANY

DATES

LOCATION

INVENTORY

PIPE & EQUIPMENT AUCTION

Network International Inc

Oct 02, 2013 Oct 09, 2013

Internet

DRILLING RIGS, PIPE & EQUIPMENT SEALED BID

Network International Inc

Oct 09, 2013 Oct 16, 2013

Internet

NATURAL GAS COMPRESSON, PROCESSING & METERING EQUIPMENT

Ritchie Bros Auctioneers

Oct 10, 2013

Internet

PIPE & EQUIPMENT AUCTION

Network International Inc

Oct 16, 2013 Oct 23, 2013

Internet

No Lots are Currently Posted for this Auction

PIPE & EQUIPMENT AUCTION

Network International Inc

Oct 30, 2013 Nov 06, 2013

Internet

No Lots are Currently Posted for this Auction

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

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LEGALLY

Speaking...

Hot topics in the industry from a legal perspective with Angela Staples.

Along with the oil boom are legal issues involving the environment, regulatory agencies, surface owners, operators, and even concerned citizens.

It’s an embarrassment of riches that is keeping oil companies, attorneys, and politicians at the forefront of the news.

Here’s a recap of several hot button issues from the perspective of Angela Staples, an attorney with Tall City Exploration.

Several months ago, the U.S. Fish and Wildlife Commission decided against listing the sagebrush lizard on the endangered species list. This decision was due to Texas’ agreement to use voluntary conservation measures. However, the commission was sued by the Center for Biological Diversity and the Defenders of Wildlife for its decision. Currently, the Permian Basin Petroleum Association (PBPA) and Pioneer Natural Resources (along with other oil companies) have stepped up to help fund the defense on this issue. Listing of the lesser prairie chicken is still being considered, according to Ms. Staples.

by Iris Foster

issue. Regarding injection wells, a UT study indicated that process may contribute to the small earthquakes in outlying areas.

As drilling permits were let within sight of local neighborhoods, disgruntled land owners (with surface rights only) have voiced their objections. There is currently a lawsuit in Greenwood concerning surface damage on about a quarter section. Ms. Staples believes it stems from bitterness that surface owners do not receive benefits from the wells. As long as operators follow the Texas Natural Resource Code regarding surface use, they are generally within their permitted rights.

Another ongoing debate concerned water contamination from hydraulic fracturing. She cites a recent University of Texas study that found the popular process did not contaminate ground water. Other studies have reported elevated levels of contamination around gas wells, but no source could be identified. The Environmental Protection Agency (EPA) continues to reaearch this 18

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

New regulations hit the pipeline frequently, she says. An interesting one involving the Texas Railroad Commission may wind up in the courts. It deals with allocation pooling across 1.5 miles. Previously, with agreement from 65% of mineral owners, a Production Sharing Agreement was drawn up to distribute pooled royalties. In 2010, the Railroad Commission began issuing Allocation Well Permits which granted “reasonable allocation without any signatures.� Recently, EOG applied for such a permit, owners denied the company had pooling authority, yet the commission issued the allocation permit. Since the Railroad Commission does not have authority to interpret leases, this one may produce a lawsuit.

have private equity backing. Large independents use economies of scale by signing 100-well contracts with oilfield service providers, so they are not as severely impacted.

Whichever side of the well one represents, there will continue to be issues and lawsuits concerning them.

Rulings will ultimately affect how the industry moves forward in this sustaining boom.

High oil prices, low unemployment, favorable rankings as best places to work and live aside, there are still issues in the Permian Basin oil patch, especially for small independent oil companies like Tall City Exploration.

It was formed in 2012 by longtime Midlander Mike Oestmann and Joe Magoto. The high prices for oilfield services and even availability of services can bring production to a screeching halt. Fortunately, many

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

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OCTOBER & NOVEMBER

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.

STATE FAIR OF TEXAS September 27 - October 20 Fair Park, Dallas, TX www.Bigtex.com ORIGINAL ROUND TOP ANTIQUES FAIR October 2 - 5 One of the “10 Best Antique Fairs in the Country” by Better Homes & Gardens Magazine. Over 350 upscale antique vendors across four location sites. Championship barbeque and acres of free parking. $10 admission fee covers all days.

For additional details: or (888) 273-6426 www.roundtoptexasantiques.com MIDLAND WINE AND MUSIC FESTIVAL October 4 - 5 A Wine Lovers Experience! Texas Wines, Texas Music, Texas Cuisine, Redd Volkkaert.

Sponsored by Midland Convention & Visitors Bureau, Midland Center, Centennial Plaza, 105 N. Main, Midland, TX Contact 686-3553 Purchase tickets online at www.midlandwineandmusic.com LET’S SHOOT ‘EM UP!!

October 5 Young Republicans Clay Shoot benefitting Centers for Children and Families. At Jake’s Clays, 13301 FM 1379, Midland, TX. 9am rotation and 1pm rotation.

To register or for more info call (432) 559-5567

with vintner & music events, wine and food samplings and the Great Guitar Auction.

For tickets & info call (830) 629-5077 or toll-free from San Antonio (830) 606-1601 www.gruenemusicandwinefest.org MICHAEL W. SMITH October 12 8 PM – 9 PM. Wagner Noel Performing Arts Center. 1310 N. FM 1788 Midland, TX Phone: 800-514-3849 For more info visit www.wagnernoel.com AUTUMN STROLL FESTIVAL October 12 Canton, TX - 119 N. Buffalo St. State Championship BBQ Cook-off, Vendors, Entertainment, Outdoor movie at night Festival is 13 years old 903-567-1849 SUEZ SHRINE CIRCUS October 14 7 - 9 PM Midland County Horseshoe Arena, 2514 Arena Trail. Midland, TX. $16 Adults/$14 Seniors - Military/Children Free w/ coupon - $12 without.

432-682-1300 www.midlandhorseshoe.com

27th ANNUAL GRUENE MUSIC & WINE FEST October 10 - 13 Gruene Historic District / New Braunfels This Americana event benefiting local charities features the best in live Texas music and the best in Texas food & wines at Gruene Hall and The Grapevine. All four days are filled 20

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

OKTOBERFEST! October 18 The real German celebration! Enjoy German cuisine and draft beer with the tunes of Brave Combo. Event Contact Name: Jessica Smith. 6 PM - 11 PM. Ellen Noël Art Museum 4909 E. University Odessa, TX. Phone: 432-550-9696 Email: jessica@noelartmuseum.org RUNNING WATER DRAW A & C FESTIVAL October 18 - 20 Plainview, TX - 2000 So. Columbia Baked items , jewelry, fall and Christmas wreaths, paintings Festival is 39 years old.

806-729-1150 KNIGHTS OF COLUMBUS BESTFEST October 19 Fredericksburg, TX - 100 W. Main A celebration of Fredericksburg - beer, sausage and hunting.

Includes all-you-can eat sausage meal, kid’s activities and great prize drawings.

830-456-6279

KOOKY KARNIVAL October 26 5 PM - 6 PM. Ector County Coliseum. 4201 Andrews Hwy Odessa, TX CRRC MARKETDAY October 26 Canyon Lake. Discover over 100 vendors. 9 AM - 4 PM. Just below the dam. 125 Mabel Jones Dr. Arts and Crafts, Attic Treasures, Books, food, Jewelry, Candles, Gifts, Holiday Decorations. Free parking. Free admission.

Kristi Broadway (830) 964-3003 www.crrcofcanyonlake.org

21st ANNUAL TEXAS CLAY FEST October 26 - 27 Gruene Historic District/ New Braunfels Respected potters and sculptors from around Texas display, sell their wares and demonstrate a variety of techniques.

Hands-on activities available for children. (830) 629-7975 www.texasclayfestival.com

FALL FOLIAGE FESTIVAL October 19 - 20 Walk a showcase of fall color on trails along the picturesque Canadian River Historic Wagon Bridge and at Lake Martin & Black Kettle National Grasslands. Also enjoy home tours, the Citadelle Art Foundation, Canadian River Art Center, wagon rides, exhibits, arts and crafts & more! www.canadiantx.org JERRY SEINFELD October 25 7 PM - 8 PM. Wagner Noel Performing Arts Center. 1310 N. FM 1788 Midland, TX Phone: 800-514-3849 For more info visit www.wagnernoel.com KERR COUNTY FAIR October 25 - 27 Exhibits, petting zoo, cook-off, bull riding, dance, carnival and midway, children’s activities, stage entertainment, vendors, food and beverages, something for everyone! Hwy 27 East in Kerrville.

(830) 257-6833 www.kerrcountyfair.com 23rd FOOD & WINE FESTIVAL October 26 Fredericksburg. This tribute to Texas wine vintages and foods is hosted at downtown’s Marktplatz with music, culinary demonstrations, Sunday brunch, games, and food product vendors. Noon - 7 PM. (830) 997-8515 www.fbgfoodandwinefest.com

WINGS OVER HOUSTON AIRSHOW October 26 - 27 The 29th annual Wings Over Houston Airshow takes flight Saturday, at Ellington Airport with thrilling aerial performances, aerobatics, demonstrations and displays. A great event for the entire family! www.wingsoverhouston.com HALLOWEEN TRICKS AND TREATS October 31 Free Admission. 6 PM - 8 PM. The Petroleum Museum.

Email: shanna@petroleummuseum.org Phone: 432-683-4403.

For more info visit www.petroleummuseum.org WURSTFEST November 1 - 10 New Braunfels, TX - 120 Landa Street During the 10-day German festival, you’ll find a variety of entertainment, food and fun on the Wurstfest Grounds in Landa Park.

830-625-9167

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

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

SAFETY TIPS Short Service Employee Mentoring Program Our industry is suffering from a lack of qualified experienced workers. In the last couple of years, the Oil and Gas Industry in our area has boomed allowing our economy to grow exponentially and the need for workers to sky rocket.

Because of this fact, companies have been forced to hire young workers with no experience in the Oil and Gas Industry. People are coming to the Permian Basin from all over the country to get in on the action. These new employees with less than six months on the job are considered Short Service Employees, SSE for short, and they are also the employees that have the highest rate of injury. This high rate of injury is attributed to the fact that they do not have the knowledge of the hazards that they are coming into contact with and how to protect themselves.

To combat this problem, several companies have implemented a Short Service Employee mentoring program. This program takes an un-experienced employee that is new to a job and puts them to work with more experienced workers for the first six months of their employment so that they can be mentored on how to perform their job safely. An SSE program gets everyone involved, the Supervisors, Mentors, and the SSE’s become more safety conscience and it promotes Safe Work Practices. Companies that have implemented an SSE program have seen drastic reductions in injuries among Short Service Employees.

In conclusion if your company does not have an SSE program and is involved in hiring people with no experience it would definitely be in your best interest to implement an SSE Program.

Shawn Todd AMERICAN SAFETY SERVICES INC.

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

23

Bites

by Tom Simonite

FACEBOOK LAUNCHES ADVANCED AI EFFORT TO FIND MEANING IN YOUR

Source: www.technologyreview.com

Tech

POSTS

Facebook is set to get an even better understanding of the 700 million people who share details of their personal lives using the social network each day.

A new research group within the company is working on an emerging and powerful approach to artificial intelligence known as deep learning, which uses simulated networks of brain cells to process data.

Applying this method to data shared on Facebook could allow for novel features, and perhaps boost the company’s ad targeting.

Deep learning has shown potential to enable software to do things such as work out the emotions or events described in text even if they aren’t explicitly referenced, recognize objects in photos, and make sophisticated predictions about people’s likely future behavior.

The eight-strong group, known internally as the AI team, only recently started work, and details of its experiments are still secret. But Facebook’s chief technology officer, Mike Schroepfer, will say that one obvious place to use deep learning is to improve the news feed, the personalized list of recent updates he calls Facebook’s “killer app.” The company already uses conventional machine learning techniques to prune the 1,500 updates that average Facebook users could possibly see down to 30 to 60 that are judged to be most likely to be important to them. Schroepfer says Facebook needs to get better at picking the best updates due to the growing volume of data its users generate and changes in how people use the social network.

“The data set is increasing in size, people are getting more friends, and with the advent of mobile, people are online more frequently,” Schroepfer told MIT Technology Review.

“It’s not that I look at my news feed once at the end of the day; I constantly pull out my phone while I’m waiting for my friend, or I’m at the coffee shop. We have five minutes to really delight you.”

24

Shroepfer says deep learning could also be used to help people organize their photos, or choose which is the best one to share on Facebook.

Facebook’s foray into deep learning sees it following its competitors Google and Microsoft, which have used the approach to impressive effect in the past year. Google has hired and acquired leading talent in the field and last year created software that taught itself to recognize cats and other objects by reviewing stills from YouTube videos. The underlying deep learning technology was later used to slash the error rate of Google’s voice recognition services.

Researchers at Microsoft have used deep learning to build a system that translates speech from English to Mandarin Chinese in real time. Chinese Web giant Baidu also recently established a Silicon Valley research lab to work on deep learning.

“Research into understanding images, text, and language has been going on for decades, but the typical improvement a new technique might offer was a fraction of a percent,” he says. “In tasks like vision or speech, we’re seeing 30 percentplus improvements with deep learning.” The newer technique also allows much faster progress in training a new piece of software, says Turner.

Facebook hired deep learning expert Marc’Aurelio Ranzato away from Google for its new group. Other members include Yaniv Taigman, the co-founder of facial recognition startup Face.com, computer vision expert Lubomir Bourdev, and veteran Facebook engineer Keith Adams.

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

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

25

PBE NEWS BRIEFS Watching the basin

PERMIAN BASIN ON TOP OF OIL PRODUCTION For calendar year 2012 (the most recent total production year available), the Texas Permian Basin’s crude oil production accounts for 57 percent of Texas’ statewide total crude oil production or approximately 430 million barrels.

For all Texas liquid production including crude oil and condensate (condensate is the liquid hydrocarbons produced with natural gas including butane, propane, etc.), the Permian Basin represents 51 percent of the total statewide Texas liquid production or approximately 509 million barrels of crude oil plus condensate), per current Commission production reports. The Permian Basin accounts for 14 percent of the total annual U.S. oil production or approximately 2 billion barrels according to data obtained from the U.S. Energy Information Administration. Statewide, Texas’ annual crude oil production represents about 25 percent of the total U.S. oil production. Oil production in the Permian Basin has grown from 253 million barrels in 2005 to 312 million barrels in 2012. The rig count has grown from 129 to 415 in the same time frame. Source: rrc

26

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

Watching the STATE

RAILROAD COMMISSIONER DAVID PORTER ISSUES LETTER TO U.S. FISH AND WILDLIFE SERVICE REGARDING THE LESSER PRAIRIE CHICKEN AUSTIN - Texas Railroad Commissioner David Porter issued the following letter to Daniel Ashe, Director of the U.S. Fish and Wildlife Service, in late September regarding the Lesser Prairie Chicken: “I am writing to express my strong opposition to listing the Lesser Prairie Chicken as threatened or endangered under the Endangered Species Act. As the primary regulator of the oil and gas industry in Texas – an industry that would be significantly affected by this decision – I feel it is imperative that the detrimental impacts of such a listing are fully understood and appreciated.

As a Texas Railroad Commissioner, I have a responsibility to protect against the waste of our state’s precious natural resources. I believe that listing this species as threatened or endangered would directly jeopardize this charge by severely limiting exploration and production activity in the Permian Basin, one of the country’s most prolific hydrocarbon-bearing regions. The Texas Permian Basin alone produces nearly one million barrels of oil per day, accounting for more than half of our state’s total oil production. It also supports thousands of jobs and provides millions of dollars in state revenue.

just imperative to the success of the oil and gas industry in Texas, but also to the economic success of numerous other states and our nation as a whole.

The surge in oil and gas drilling has considerably bolstered the national economy, attracting more than $120 billion in U.S.-based investments and contributing $283 billion to the gross domestic product in 2012.

Additionally, studies project that the U.S. trade deficit will fall by more than $164 billion in 2020 – the equivalent of one-third of the current trade deficit.

To continue on this path of prosperity, we must enact policies that protect the environment while allowing the natural resource production that is vital to our country.

I strongly urge you to not list the Lesser Prairie Chicken under the Endangered Species Act and to consider the alternatives presented by the affected states. I firmly believe this matter should be left for the states to address through a collaborative conservation plan.”

Source: Texas Railroad Commission

Texas has been working diligently with several other state wildlife agencies, along with the most active oil and gas producers and various stakeholder groups, to develop a conservation plan as an alternative to listing the Lesser Prairie Chicken under the Endangered Species Act. This comprehensive effort proves that this issue is not OCTOBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

27

Watching the WORLD

China to invest $13.07 bILLIOn in exploring oil & gas The headquarters of the state-owned China National Offshore Oil Corp. (CNOOC) [AP] China has announced an investment of 80 billion yuan ($13.07 billion) in 2013 in exploring oil and gas resources.

China’s Ministry of Land and Resources says such investment has risen steadily in China over the past years as the country moves to reduce dependence on imports and ensure security of energy supply.

natural gas were discovered.

China’s dependence rates on imports of oil and natural gas came in at 58 percent and nearly 30 percent respectively in 2012, according to a report by the Economics and Technology Research Institute of China National Petroleum Corporation.

According to a Wood Mackenzie Report, China will overtake the United States as the world’s biggest crude oil importer by 2017.

Official figures state investment rose from 19.0 billion yuan in 2002 to 67.3 billion yuan in 2011 in exploring oil and gas fields.

China is on track to spend $500 billion on crude oil imports by 2020, far outstripping the peak cost ever incurred by the United States on crude imports of $335 billion, Wood Mackenzie said in a report.

In the 2008-2011 period, some 5.01 billion tonnes of petroleum reserves and 2.6 trillion cubic meters of

Source: www.thebricspost.com

FISHING & RENTALS

FISHING & RENTAL TOOLS REVERSE UNITS FOAM/AIR UNITS

1511 Garden City Hwy • PO Box 150

MIDLAND TEXAS

432.684.3898

28

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

Watching the Nation

COST OF NATURAL GAS USED IN MANUFACTURING SECTOR HAS FALLEN Natural gas has been an important exception to the trend of rising prices for energy sources used by manufacturers. Production of natural gas in the United States increased rapidly beginning in 2007 as a result of resources found in shale formations. That increase in supply has in turn lowered the price of natural gas to manufacturers as well as other consumers.

The 36% decrease in the average natural gas price paid by manufacturers between 2006 and 2010, from $7.59 to $4.83 per million Btu, was large enough that the total cost of energy from all sources fell by 11% between 2006 and 2010, from $9.19 to $8.22 per million Btu (in 2005 dollars), according to data from the 2010 Manufacturing

Energy Consumption Survey (MECS). Since that survey was conducted, natural gas prices have fallen further.

Unlike commercial, residential, and other types of consumers, many manufacturers have the ability to meet a large portion of their energy needs through the use of non-purchased energy sources, including the on-site combustion of waste or by-products. As much as 28% of the total energy consumed in manufacturing in 2010 came from non-purchased sources. Similarly, many manufacturers can freely substitute one purchased energy source for another in a relatively short time. For example, in 2006, manufacturers could have substituted other fuels for 17% of their natural gas.

There is anecdotal evidence that manufacturers are starting to react to lower natural gas prices by planning to open new facilities in the United States. There are other influential factors, including rising employment costs overseas, but those industries for which natural gas is an important input are anticipating an advantage of locating their operations here.

Source: www.eia.gov

Watching Offshore

ENOCHDHU IN THE NORTH SEA Production is expected to start late next year at the Enochdhu oil field in the Central North Sea after UK officials cleared its development.

development of Enochdhu in the North Sea is consistent with ConocoPhillips’ overall strategy for delivering on the company’s 3% to 5% production growth targets.

ConocoPhillips UK and co-venturer Chevron North Sea said the project had been approved by the UK Department of Energy and Climate Change (DECC).

“It also supports our long-term commitment to sustain a thriving and profitable UK business.”

Enochdhu is expected to produce at an initial peak rate of more than 10,000 barrels of oil equivalent per day.

It is the fourth field to be developed in the Greater Britannia Area.

The others are Britannia, Brodgar and Callanish.

ConocoPhillips UK president David Chenier said: “’The

Energy Secretary Edward Davey said: “We are working very hard with industry to create the right environment for oil and gas and this is expected to be a record year for North Sea investment.

“The Enochdhu development is another vote of confidence for the future of the North Sea, providing jobs and energy security.” Source: www.bbc.co.uk

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

29

Watching THE SHALE

USA IS PRODUCING MORE OIL NOW THEN IRAN U.S. oil production jumped last week to the highest level since May 1989, cutting consumption of foreign fuel and putting the U.S. closer to energy independence.

Drilling techniques including hydraulic fracturing, or fracking, pushed crude output up by 124,000 barrels, or 1.6 percent, to 7.745 million barrels a day in the seven days ended Sept. 6, the Energy Information Administration said today.

Rising crude supplies from fields including North Dakota’s Bakken shale and the Eagle Ford in Texas have helped the U.S. become the world’s largest exporter of refined fuels including gasoline and diesel. Texas pumped 2.575 million barrels a day in June, according to the EIA, enough to rank it ahead of seven members of the Organization of Petroleum Exporting Countries.

“It’s amazing,” said Andy Lipow, president of Lipow Oil Associates LLC, a Houston-based consulting firm, who predicted last month that the U.S. would be pumping

7.75 million barrels a day by the end of the year. “The state of Texas is now producing more oil than the country of Iran.”

Iran produced 2.56 million barrels a day in June, according to a Bloomberg survey of oil companies, producers and analysts. Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Venezuela pumped more than Texas that month. Source: www.bloomberg.com

Your Bank For Business

Odessa - Midland - Big Spring - Snyder | www.prosperitybankusa.com 30

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

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

Cares

Comfort food, heart-felt fellowship and personalized prayer. That has proved to be a recipe for success for recent empty-nester, KIMBERLY MEYERS. customers a meal that’s not only convenient and delicious, but also good for the soul.

Kimberly, who had taken a 20 year break from a nursing career to raise her children, was facing a new season in her life and looking for a way to share her love of cooking, love for others and love for God with people in her community.

She found her calling in a cooking ministry called Kreations

by Kimberly. Starting in March of this year, Kimberly began turning her family favorites and shared recipes into readymade dinners and dishes for friends on the go. Almost every week, a special dish is featured and customers can place their order via email. Kimberly then prepares the dishes and freezes them individually for easy storage and use as a hassle-free and ready to cook, home-made meal.

Kreations by Kimberly, LLC, has weekly offerings where the “featured home cooked item” (casserole, dessert, soup, dips OR side dishes) is sent in an email to everyone who subscribes. Customers respond via email with their order, and pick up is typically on Tuesday’s or Thursday’s from 4-6 pm inside the Leased, Licensed Kitchen at St. Nicholas Episcopal Church, 4000 W. Loop 250 N.

But the real magic happens at pick up, inside a leased kitchen space in the St. Nicholas Episcopal Church on Loop 250 in Midland. In those 2 hours, Kimberly’s real business plan begins to unfold. Whether it’s prayer needed for an illness, congratulations on a new baby, condolences for a recent loss or just an open and caring ear to hear about a personal struggle or need, Kimberly gives each person who walks through the door special attention and a special friendship. “It is beautiful to witness, on a weekly basis, how our lives intersect, and how we help and heal those we love”, says Kimberly. But her ministry goes beyond good food and good fellowship. Customers are also showered with personal, handcrafted notes of love and encouragement sent home with dishes. Whether it’s a specific note and bible verse of encouragement for someone’s personal situation, or a general reminder to love others and live a life of purpose, Kimberly’s heart overflows out of each hand-made note and home-made meal. It’s these special touches that give her

If you would like to be added to the weekly email offering, please communicate to: Kimberly at kreationsbykimberly@suddenlink.net OCTOBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

33

RESTAURANT

BITES

“I never thought it would be this big”. Famous last words, as they say, from then 16 year old Viviana Juarez when her mom and dad decided to take over an Odessa restaurant. Now at 26, Viviana is staying busy taking care of the huge oil patch crowd that frequents this popular lunch spot across from the coliseum in Odessa.

Fulfilling a dream, Hortencia Juarez and sister Blanca Orozco took over Dumplin’s restaurant 11 years ago with a little bit of savings and Juarez’s husband Mario, who loved to cook. At the time, the restaurant was known for country favorites like chicken fried steak and mashed potatoes. Hortencia, who was a long time waitress at a local mexican restaurant, had a passion to serve the comfort food she grew up on, but knew that transition would take time.

It started with some samples the family would cook up and hand out to their customers to taste. The more they liked it, the more they made and the old fashion cuisine

34

by Marcy Madrid

soon morphed into what is now Dumplins y Amigos, featuring a blend of popular mexican and american dishes under one roof.

Sitting in the restaurant at the end of a Friday afternoon lunch rush, it’s easy to see the clientele is as eclectic as the menu. Hortencia says business is booming and her and her sisters dream of owning their own restaurant has really come true. The best part about all of it, she notes, is that they have done it all as a family.

The staff is made up of all 3 of Hortencia’s children, her husband, Blanca’s daughter, and a few others who might as well be family since they’ve been with them since the beginning. For some families, working together doesn’t always work, but for this family, it does. Viviana says they get mad at each other, but they always work it out and stick together.

The family atmosphere is noticeable, inviting and obviously appealing to the dozens of loyal customers who have been frequent diners since the family took over 11 years ago.

Hortencia says the most unique feature about

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

their restaurant is that the area where they cook is open to the dining area so everyone can see what they’re doing. She said it was a little uncomfortable at first, but now it’s her favorite part since it encourages fun conversations between the cooks and customers. “Things are smooth”, says Hortencia, “life is really good”.

The previous owner told Hortencia and Blanca to add ‘Y Amigos’ to the name so people would know they served mexican food. The most popular Mexican dish at Dumplins y Amigos is the triple meat fajita plate and the most popular american dish is the chicken fried steak.

DUMPLINS Y AMIGOS 401 West 42nd Street • Odessa, TX Phone: (432) 366-9454 dumplinsyamigos@hotmail.com OCTOBER 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

35

Inspires Don’t Drink the Kool-Aid

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.

Mickey Eckles is the Lead Pastor of Adult

by Mickey Eckles Have you been to a youth sporting event lately? You know, a local soccer, little league, or basketball game?

You may have noticed parents acting like the World Cup, World Series, or an NBA championship was on the line. The stakes are high and kids are being yelled at, criticized, and driven to tears because they missed a goal, struck out, or accidently doubledribbled. Those parents and coaches are crazy!

Unfortunately, I realized a couple of years ago that I was one of “those” parents. What disappoints me most is it took about five years to see that I had been drinking the Kool-Aid for a while. This Kool-Aid is laced with pressure to perform, pressure to win, and pressure to make sure the financial investment we are making now pays off later in the form of athletic scholarships.

My moment of revelation came as a little league coach. I knew the right answer – it’s all about the kids. Or is it? Somewhere along the way I lost focus and cared more about beating 36

Ministries at Mid-Cities Community Church, founder of 3:23 Ministries, and a recovering sports parent determined to get it right.

the other coaches than I did about helping kids have fun learning a sport. Little leaguers should be looking forward to Rosa’s with the team afterward, not wondering if that mistake withered away chances of playing Division 1 ball (six years from now). After some serious prayer and reflection, I stepped away from

more convinced I am that we are buying into a dangerous cultural trend. A friend recently pointed me to the first study of its kind on elite youth sports teams. Here are some highlights from 565 travel-caliber kids from 11 states and 9 different sports as reported by ESPN recently:1

I PLAY COMPETITIVE/ELITE SPORTS…

BOYS

GIRLS

for the excitement and challenge of the competition

90%

96%

to have fun

79%

87%

to increase my chances of earning a college scholarship

77%

78%

to be part of a team and hang out with my friends

63%

71%

coaching to find my heart again.

The longer I engage in competitive youth sports and talk with high school and college coaches, the

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

STATEMENTS KIDS WERE ASKED TO AGREE OR DISAGREE WITH: My mom or dad puts pressure on me to be successful in a game. 73% agree

My mom or dad gets upset when I do not play as well as they would like me to in a game. 79% agree

This study reveals some positives about kids’ love for their sports and even the coaches that push them to the brink. My family loves this crazy world.

Let’s admit it, we can be cruel and harsh when they mess up. This reminds me of an important truth:

We enjoy the road trips, late night runs to Rosa’s, the relationships, and the memories created on courts and fields.

In an article by Tim Elmore called “What Parents Should Say As Their Kids Perform”, college athletes share what they need most from their parents.

In fact, we like it so much that we started a non-profit youth sports ministry called 3:23 Ministries to help more kids experience better competition and great team experiences. So what’s my concern?

These tips could help you get back to being your kid’s biggest fan.

Parents, we need to take a step back and get a bigger vision! Read that last statistic again slowly – 79% of our kids feel like we get upset when they don’t play like we like them to. Why put this kind of performance pressure on our kids at these ages?

“Parents, don’t come down too hard on your children or you’ll crush their spirits.” (Col. 3:21, MSG). Our tone can create resentment or speak life and encouragement.

P.S.– This article greatly impacted me. Take a moment and “Google” it now!

1 Matz, Eddie. “Travel Team Confidential.” ESPN The Magazine. July 8, 2013, Kids In Sports issue.

Mickey Eckles can be reached by mickey.eckles@midcities.org

Our job is to be our kids’ biggest fans. I know you are your kid’s biggest fan (it’s the right answer), but we often look and sound more like their biggest critics.

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

37

U.S. RIG COUNT - TEXAS

States &

September 30, 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

140

134

138

135

150

121

118

119

11

Texas RRC District 2

81

88

88

87

83

82

79

80

8

Texas RRC District 3

41

48

46

44

48

45

46

46

5

Texas RRC District 4

43

35

32

33

34

27

24

27

1

Texas RRC District 5

18

14

15

14

17

12

10

13

0

Texas RRC District 6

30

30

28

29

30

29

28

27

1

Texas RRC District 7B

15

14

15

13

26

22

21

23

4

Texas RRC District 7C

76

79

79

80

75

77

76

71

6

Texas RRC District 8

302

263

266

257

280

264

256

259

9

Texas RRC District 8A

38

39

37

39

40

41

40

40

1

Texas RRC District 9

25

18

19

20

41

35

39

36

6

Texas RRC District 10

68

68

67

65

70

76

74

76

2

Texas Total

877

830

827

816

894

831

811

817

54

U.S. Totals

1,864

1,766

2,034

1,934

1,910

1,933

96

Districts

1,761 1,744

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 38

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | OCTOBER 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 October 2, 2013 Company

Footage Drilled

% of Total

Average Footage

Well Starts

% of Total

Directional Wells

1

Helmerich & Payne, Inc.

34,789,172

16.70%

10,253

3,393

12.80%

2,982

2

Patterson-UTI Drilling Company, LLC

20,777,293

10.00%

10,047

2,068

7.80%

1,750

3

Nabors Industries, Ltd.

18,297,997

8.80%

8,125

2,252

8.50%

2,010

4

Precision Drilling Trust

9,181,844

4.40%

9,293

988

3.70%

880

5

Ensign Energy Services, Inc.

8,743,859

4.20%

6,145

1,423

5.40%

787

6

Nomac Drilling, LLC

7,824,161

3.80%

9,348

837

3.20%

834

7

Trinidad Drilling, Ltd.

6,017,484

2.90%

10,707

562

2.10%

465

8

Pioneer Energy Services Corp.

5,646,327

2.70%

9,522

593

2.20%

423

9

Unit Drilling Company

5,320,772

2.60%

8,301

641

2.40%

625

10

Cactus Drilling Company, LLC

4,726,872

2.30%

10,504

450

1.70%

416

11

Capstar Drilling, LP

4,376,623

2.10%

6,503

673

2.50%

126

12

Savanna Energy Services Corp.

4,171,905

2.00%

10,175

410

1.50%

142

13

Xtreme Drilling and Coil Services Corp.

3,091,531

1.50%

10,037

308

1.20%

298

14

Desoto Drilling, Inc.

2,911,133

1.40%

4,378

665

2.50%

662

15

Complete Production Services, Inc.

2,346,856

1.10%

9,944

236

0.90%

81

16

Sendero Drilling Company, LLC

2,212,514

1.10%

11,584

191

0.70%

0

17

CanElson Drilling, Inc.

2,058,048

1.00%

10,039

205

0.80%

33

18

Cyclone Drilling, Inc.

1,832,043

0.90%

5,341

343

1.30%

329

19

Robinson Drilling of Texas, Ltd.

1,758,815

0.80%

11,132

158

0.60%

1

20

Orion Drilling Company, LLC

1,757,896

0.80%

11,415

154

0.60%

146

21

Lariat Services, Inc.

1,754,458

0.80%

6,498

270

1.00%

130

22

Union Drilling, Inc.

1,679,376

0.80%

10,496

160

0.60%

58

23

Latshaw Drilling & Exploration Company

1,672,691

0.80%

7,535

222

0.80%

218

24

Scandrill, Inc.

1,669,281

0.80%

12,096

138

0.50%

112

25

SST Energy Corporation

1,383,277

0.70%

9,346

148

0.60%

123

26

Sidewinder Drilling, Inc.

1,276,043

0.60%

5,908

216

0.80%

216

27

Big Dog Drilling Company

1,269,417

0.60%

11,754

108

0.40%

10

28

Basic Energy Services, Inc.

1,261,207

0.60%

6,744

187

0.70%

47

29

Lewis Petro Properties, Inc.

1,247,500

0.60%

11,881

105

0.40%

105

30

Silver Oak Drilling, LLC

1,100,834

0.50%

8,094

136

0.50%

58

31

Bison Drilling and Field Services, LLC

1,091,476

0.50%

11,025

99

0.40%

8

32

ProPetro Services Incorporated

998,850

0.50%

11,481

87

0.30%

0

33

Murfin Drilling Company, Inc.

977,920

0.50%

4,702

208

0.80%

0

34

Cade Drilling, LLC

949,351

0.50%

9,787

97

0.40%

91

35

Aztec Well Servicing Co.

948,502

0.50%

6,452

147

0.60%

71

Total Top 100 for year 2013

208,475,609

100.0%

---

26,503

100.0%

---

RANK

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

39

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 October 2, 2013

RANK

Company

Footage Drilled

% of Total

Average Footage

Well Starts

% of Total

Directional Wells

1

Anadarko Petroleum Corporation

11,309,147

5.4%

10,097

1,120

4.2%

1,078

2

Chesapeake Energy Corporation

8,633,243

4.1%

10,278

840

3.2%

840

3

EOG Resources, Inc.

7,390,874

3.5%

10,573

699

2.6%

657

4

Apache Corporation

6,893,749

3.3%

8,827

781

2.9%

362

5

Devon Energy Corporation

6,629,097

3.2%

9,093

729

2.8%

674

6

Occidental Petroleum Corporation

6,288,063

3.0%

6,087

1,033

3.9%

494

7

Pioneer Natural Resources Company

6,257,139

3.0%

12,955

483

1.8%

267

8

BHP Billiton

5,766,476

2.8%

13,196

437

1.6%

429

9

Marathon Oil Corporation

4,319,603

2.1%

14,399

300

1.1%

300

10

Encana Corporation

4,155,127

2.0%

10,573

393

1.5%

375

11

Exxon Mobil Corporation

3,940,769

1.9%

6,902

571

2.2%

361

12

Concho Resources, Inc.

3,611,286

1.7%

10,289

351

1.3%

141

13

Chevron Corporation

3,597,273

1.7%

4,594

783

3.0%

299

14

Southwestern Energy Company

3,517,844

1.7%

4,653

756

2.9%

753

15

ConocoPhillips Company

3,378,305

1.6%

8,220

411

1.6%

318

16

QEP Resources, Inc.

2,867,490

1.4%

10,168

282

1.1%

270

17

Royal Dutch Shell, plc

2,815,262

1.4%

13,155

214

0.8%

211

18

Whiting Petroleum Corporation

2,746,879

1.3%

9,472

290

1.1%

235

19

Noble Energy, Inc.

2,558,115

1.2%

9,653

265

1.0%

261

20

SandRidge Energy, Inc.

2,315,044

1.1%

5,261

440

1.7%

321

21

Continental Resources, Inc.

2,075,214

1.0%

4,674

444

1.7%

443

22

Newfield Exploration Company

2,031,571

1.0%

6,596

308

1.2%

290

23

Energen Resources Corporation

1,986,600

1.0%

8,909

223

0.8%

34

24

CrownQuest Operating, LLC

1,918,900

0.9%

12,069

159

0.6%

0

25

Murphy Oil Corporation

1,808,086

0.9%

9,989

181

0.7%

179

26

EP Energy E&P Company, LP

1,796,945

0.9%

10,210

176

0.7%

157

27

Oasis Petroleum North America, LLC

1,790,524

0.9%

10,003

179

0.7%

178

28

Linn Energy, LLC

1,665,158

0.8%

8,673

192

0.7%

67

29

SM Energy Company

1,526,057

0.7%

9,249

165

0.6%

159

30

Parsley Energy Operations, LLC

1,466,200

0.7%

12,861

114

0.4%

0

31

WPX Energy, Inc.

1,446,692

0.7%

7,381

196

0.7%

194

32

BP, plc

1,392,442

0.7%

10,314

135

0.5%

130

33

Cimarex Energy Co.

1,310,786

0.6%

10,657

123

0.5%

112

34

Plains Exploration & Production Company

1,300,600

0.6%

6,670

195

0.7%

92

35

Hess Corporation

1,282,491

0.6%

4,580

280

1.1%

280

Total Top 100 for year 2013

208,475,609

100.0%

---

26,503

100.0%

---

40

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

Source: www.eia.gov

UNDERSTANDING THE “CHANGE OF THE STOCK CHANGE” While avid college football fans eagerly await the Tuesday morning update of team rankings, crude oil and petroleum product market watchers often focus on the Wednesday morning release of the U.S. Energy Information Administration’s (EIA) Weekly Petroleum Status Report (WPSR). Although the WPSR provides comprehensive details about U.S. crude oil and key petroleum products covering all sectors of the primary supply chain, many analysts often focus exclusively on the crude oil inventory change data point, using falling or rising crude stocks as an indicator of the relative tightness or looseness of crude oil markets.

As a result, the release of weekly crude oil stocks data sometimes has a noticeable impact on crude oil price formation, so it is important to understand how to assess the weekly change in stocks, also known as the “change in the stock change,” within the context of the weekly supply-demand balance.

EIA collects weekly data on gross imports of crude and petroleum products, crude and product inventories and refinery crude runs. EIA estimates weekly U.S. crude production and crude oil and petroleum product exports.

The weekly U.S. crude balance shows how crude oil consumption, represented by refinery runs, is supplied by domestic crude production and net crude imports. If these crude supply sources exceed refinery consumption for a week, any extra barrels go into storage, causing crude inventories to rise. If crude production and net

imports are less than what refineries require for a given week, inventories are drawn down to meet their input requirements and maintain market balance (Figure 1).

As a simplified example, assume the United States produces 7 million barrels per day (bbl/d) of crude oil while net crude oil imports are 8 million bbl/d, making available supplies from these sources total 15 million bbl/d. At the same time, if refinery demand for crude oil during the week is 16 million bbl/d, the 1 million bbl/d (7 million barrels for the week) supply shortfall would need to be met by drawing down inventories (Figure 2).

Another way of stating this is that given the volume of imports and domestic production that week, crude oil inventories needed to be drawn down by 1 million barrels per day (7 million total for the week) in order to balance refinery demand that week with available crude oil supplies.

To fully appreciate the non-intuitive but key impact of how the “change of the change” in stock levels affects weekly crude oil balances, one needs to consider how much stocks changed in the prior week in order to properly analyze the current week’s change in stocks that is required to balance the crude market. When done this way, the impact of the change of the stock change becomes clear.

Using the example from above, which requires stocks to fall by 1 million bbl/d, assume that the following week (Week 2) refinery crude runs remain at 16 million bbl/d, domestic crude oil production remains at 7 million

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

41

The East Coast price was $3.96 per gallon, two cents lower than last week. The Midwest, Gulf and West Coast prices all decreased three cents, to $3.93 per gallon, $3.86 per gallon, and $4.11 per gallon, respectively. bbl/d, while net crude imports rise by 700,000 bbl/d and now total 8.7 million bbl/d (Figure 3). Crude supply (production plus net imports) is now 15.7 million bbl/d, which is still 300,000 bbl/d less than refinery runs.

Thus, even though net imports increased by 700,000 bbl/d in week 2, crude stocks will still need to fall by 300,000 bbl/d, or roughly 2 million barrels for the week, in order to balance the market.

The change of the change in stocks reflects the weekly increase in import volumes by showing a much smaller decline in crude inventories than the prior week, but the supply-demand balance still requires a draw in stocks to satisfy weekly refinery input demand in this example.

Propane stocks post another build Total U.S. inventories increased by 1.0 million barrels last week to end at 65.5 million barrels, about 8.8 million barrels (11.9%) lower than the same week last year. Midwest stocks rose by 1.1 million barrels, while East Coast stocks grew 0.2 million barrels.

Rocky Mountain/West Coast stocks were up by 0.1 million barrels. Gulf Coast inventories dropped by 0.4 million barrels. Propylene non-fuel-use inventories represented 4.8% of total propane inventories.

Casual observers are often puzzled by a weekly stock draw during a week when crude imports have risen, which is why understanding the change in the stock change is crucial to properly analyzing weekly petroleum supply and consumption data.

Gasoline and diesel fuel prices both decrease again The U.S. average retail price of regular gasoline decreased five cents to $3.50 per gallon as of September 23, 2013, 33 cents lower than last year at this time, and the lowest price since July 8.

Prices were down in all regions of the nation, with both the East and Gulf Coast prices dropping seven cents, to $3.46 per gallon and $3.23 per gallon, respectively.

The Midwest price was $3.46 per gallon, the Rocky Mountain price $3.59 per gallon, and the West Coast price $3.87 per gallon, all three cents lower than last week.

The national average diesel fuel price decreased three cents to $3.95 per gallon, 14 cents lower than last year at this time. The Rocky Mountain price increased less than a penny to remain at $3.94 per gallon, while prices in all other regions decreased.

42

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

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

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