FREE
VOLUME 2 NO. 9
The Power of
SEPTEMBER 2014
TEXAS
RFID Users Agree Technology Makes Drilling More Effecient 12
Permian Basin’s Fire Departments:
Adapting to Challenging Times 8
Permian oil PUSH
Threatens Longer Slump for Midland Crude 18 • U.S. RIG COUNT • TOP 35 Drillers & Operators
Industry Data
|
News
|
Events
50
www.PBEMag.com |
Auctions
|
Calendar
|
RESTAURANT BITES
Travel
|
Tips
|
Energy
|
Tech
2
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
3
SEPTEMBER 2014
contents
Pbe Features 8
Permian Basin’s Fire Departments: Adapting to Challenging Times
12 RFID Users Agree – Technology Makes Drilling More Effecient 18 Permian Oil Push Threatens Longer Slump for Midland Crude
Other Editorials
8
17 Calendar of Events 22 6 Things to Figure Out when You Hit 6-Figures 26 Conferences in September - October
12
27 Upcoming Auctions 28 Advice for Mineral Owners from Permian Basin Land Girl 31 Safety Tips - September 34 Lessons For Change: A Social Experiment Proven Successful by a Hospital in Midland, Texas 38 Festivals and Events in Texas 40 PBE Cares - Boy Scouts of America - First Annual Sustainability Awards Luncheon 42 Tech Bites - Octopus Camouflage Inspires New Technology 44 PBE News Briefs: Basin, Shale, State, Government, Nation, Offshore & World 50 Restaurant Bites - The Athenian Restaurant 52 PBE Inspires - Kids Grow Up 54 By The Numbers: Texas Rig Count, Top Drillers, Top Operators 57 This Month in Petroleum
4
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
18
LETTER FROM
THE EDITOR Darkness cannot drive out darkness: only light can do that. Hate cannot drive out hate: only love can do that. - Martin Luther King Jr., A Testament of Hope: The Essential Writings and Speeches As we head into the month of September, the memory of September 11th seems to be especially vivid this year amid the rising tensions and violence in the Middle East. It sure makes you appreciate the religious and social freedoms we enjoy in the United States and at the same time gives us pause as we remember the lives of those lost that day. In this month's issue of PBE, we talked to the owners of a new Greek restaurant who know all too well how great of a country we live in as they were brought here by their parents at a young age to find new opportunities and new hope. You’ll also read about another example of what a great country of advancements and opportunity we live in as one of our writers takes an in depth look at the developing landscape of RFID technology in the oil and gas industry. Being good stewards of this great land we live in is a responsibility many local companies are taking very seriously as you'll learn more about in this month's PBE Cares. And as always, you'll hear about what’s topping the news in the industry around the world, the country, the state and the basin in our news briefs section as well as get your monthly dose of inspiration from PBE inspires. I hope that as you read this, things are peaceful in your house, your work and your family and you take a moment to realize how fortunate you are and maybe even say a prayer for those living in turmoil overseas.
Carlos Madrid Editor in Chief/Publisher sales@pbemag.com
/PBENERGYMAG @PBENERGY
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
5
EDITORIAL CONTRIBUTORS PBE MAGAZINE CONTACTS VOLUME 2 NO. 9
EDITOR IN CHIEF/PUBLISHER Carlos Madrid sales@pbemag.com 432. 559. 5886 ART DIRECTOR/LAYOUT & GRAPHICS Luke Pawliszyn Lukasz Design Studio West Hollywood, CA luke@lukaszdesign.com
Taryn SnideR FREELANCE WRITER tarynsnider@gmail.com
ADVERTISING For advertising info call 432. 559. 5886 or email sales@pbemag.com ACCOUNT EXECUTIVE Tiffany Clemons tiffany@pbemag.com 432. 978. 2393
DANIEL STEPHENS SENIOR PASTOR Mid-Cities Community Church • Midland, TX daniel.stephens@midcities.org
ACCOUNT EXECUTIVE Dominique Brown dominique@pbemag.com 432. 599. 3127 SUBMISSIONS Submit story ideas & other news to marcy@pbemag.com
Kimberly Smith CEO Development Resources, Inc.
PUBLISHED BY: PBE Magazine, LLC. Permian Basin Energy Magazine 4500 Erie Drive Midland, TX 79703 Main Phone: 432. 559. 5886
Shawn Todd American Safety Services, Inc.
www.PBEMag.com
/PBENERGYMAG
@PBENERGY
Copyright © 2014 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.
6
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
Joe Tye www.valuescoach.com
Jullien Gordon www.julliengordon.com
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
7
Permian Basin’s Fire Departments: by Taryn Snyder
Adapting to Challenging Times
As the Permian Basin booms and more and more people move here, demand for all types of workers has grown. We need construction workers to build our roads and infrastructure, teachers to teach our kids, restaurant workers to feed us, and medical workers to keep us well. Everyone who has spent any time in West Texas knows that it’s been a challenge to retain the type of workers we need to keep our city thriving. This has been especially true in the fire service industry here in Midland. The firefighter is one of the most celebrated professions in our culture - and with good reason. While everyone is running out of a building, our first responders are running in. But many of our heroes have been trading their red firefighter’s hats for a hard hat instead. The oilfield has been attracting firemen who have retired early to drive a truck, work in the field or in safety. Robert Isbell, Fire Chief at Midland Fire Department (MFD) says they have been running significantly short on employees for two and a half years but are very close to filling all their vacancies. Isbell explained the dilemma, “We are a little a little better than the 50th percentile when we compare our firefighter salaries with cities like ours. But when you look at what the oilfield is bringing in and at what the housing market has done, there is a significant, adverse impact that is hard to contend with.” Isbell said that MFD has a large interest in bringing on new firefighters to work in Midland and the struggle isn’t so much hiring but “keeping them once they start to see the full impact of the housing market.” Chief Isbell boasted that the MFD is building an organization that people want to be a part of with a top-notch airport station and a hazmat team that is capable of handling types of situations that almost no other hazmat team in the state can deal with, a result of being located in oilfield country. However, despite efforts provided by the 8
city to ease their burdens, there have been two or three situations where someone “may have taken a lower paying job outside the region because the cost of living made it a higher paying job.” While the population in Midland increases it’s only natural that the call volume will also increase. Since 2011 MFD has experienced nearly a 16 percent increase in call volume which has lead to the addition of an ambulance and plans to add a 10th station. Out of more than 13,600 calls last year, less than one percent of those calls have been fire related. Isbell described MFD’s biggest problem lately is receiving medical related calls that aren’t medical emergencies. In some cases it’s noninsured citizens using a medical vehicle as a means to not get turned away from the emergency room and in other cases it might be due to lack of transportation or simply not having a family physician and not knowing who to call. One tool that Midland Memorial Hospital offers to the public is 68-NURSE. Someone who is unsure of whom to call in a less than emergent situation can call 68-NURSE and a provider will evaluate the caller’s problem and direct them to the appropriate course of action, free of charge. With all of Midland’s firefighters being emergency service technicians (EMTs) they are dedicated to delivering the
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
rating is the best you can get and the result of such a rating is lower insurance rates for homeowners and commercial property owners. Such a rating speaks volumes about MFD’s excellence and paves the way for further achievements.
Photos curtesy of Midland Fire Department and www.newswest9.com
best medical service possible to their callers but they also recognize that improper use of their services is a burden to everyone involved and could prove to be harmful to those in serious need of those services. Chief Isbell described 68-NURSE as “one of the only systems I’ve ever seen that can give free medical advice over the phone.” On August 20th Midland Fire Department celebrated receiving an ISO 1 rating from the Insurance Service Organization. Isbell said, “We’re one of less than 20 in the state of Texas and less than 60 nationwide to have the ISO 1 rating.” According to iso.com the Fire Suppression Rating Schedule “considers three main areas of a community’s fire suppression system: emergency communications, fire department (including operational considerations), and water supply. In addition, it includes a Community Risk Reduction section that recognizes community efforts to reduce losses through fire prevention, public fire safety education, and fire investigation.” The prestigious ISO 1
City of Odessa Fire / Rescue has also experienced a significant jump in number of calls. After receiving more than 18,200 calls last year Odessa Fire / Rescue has responded by increasing personnel, the number of EMS response units and plans are in place to add a ninth station sometime early next year. Odessa Fire Chief, Roger Boyd said that hiring and retaining employees continues to be a challenge. So far in the year 2014, 19 people have left their department. Out of those 19, nine have retired and ten have left for other reasons. Boyd said, “We had several people move back home and several people turn down jobs due to housing.” But Chief Boyd is thinking positively as they are in the process of hiring 21 employees from all around the U.S., 8 of them being cadets who will be trained by the City of Odessa. Chief Boyd also has concerns for the mental health of his EMS responders with the rise in traffic accidents in the Permian Basin. He said that not only has the amount increased but “the severity has gotten much worse in the last three or four years. When they’re making a thousand more calls a year it affects their mental health.” One of the biggest impacts that the boom has had on the fire service industry is its impact on volunteer firefighters. Mat McClure, Fire Chief of Midland County Northeast Volunteer Fire Department (NEVFD) said with so many of their volunteers working in the oil industry they’re sometimes left wondering if people are going to be able to show up. McClure, who works in the oilfield himself, said it’s not uncommon for him to work a 14 hour day after “fighting fires all night long” or for someone to have to leave their day job to go work for free at the fire department resulting in loss of pay. Not only do the volunteer firefighters donate their time working at the fire department, they also donate their time going to school to become certified because the EMT training is the same for both volunteers and paid firefighters. Operating solely from donations, NEVFD has also seen an increase in call volume but their funding hasn’t matched the increase. Midland County alone has two volunteer fire departments: Northeast and Greenwood. Ector County’s volunteer fire departments are South Ector County, West Odessa, Goldsmith and Gardendale. Our fire department is growing to accommodate our increasing size and striving to be the best at service delivery. While we have the security of knowing that we have access to an organization of such excellence, we also know that we can help achieve further excellence by using the services appropriately and supporting our volunteer fire departments. Midland’s fire service industry is just another reason that Midland is such a great community to live and work in.
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
9
The Power of
TEXAS
To Advertise call (432) 559 - 5886 or email
sales@pbemag.com
www.PBEMag.com 10
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
11
RDFI Users Agree – Technology Makes Drilling More Effecient by Taryn Snyder
In any industry technology is an important factor in optimizing productivity and the oil patch is no different. It doesn’t matter if you like to keep things old school or if you’re always on the lookout for new technological advances in the field, you can’t escape the digital age we’re in. Some companies in the Permian Basin have realized the need to rely on high tech data transfer equipment used to identify and track everything from equipment to people in an effort to maximize overall performance. Radio-frequency identification (RFID) has been around for quite some time. The concept was first born during WWII by the Soviet Union and was used as a tool to spy on the United States. The technology evolved in the 1970s and later in the 1980s until RFID as was patented and came to resemble the technology we recognize today. TrigPoint Solutions has developed a user interface system called PROMPTT® which uses RFID to track and maintain assets and employees, perform safety tasks and inspect equipment. Electronic reports are sent to company offices immediately, allowing information in real time and cutting down on paper reports. 12
Bison Drilling & Field Services began using PROMPTT® in April. A company with 420 to 450 employees and 14 rigs in operation, they started a test program on three rigs and were pleased with the results so they added three more rigs to the program with plans to ultimately add all 14. Kaes Van’t Hof, CEO of Bison Drilling, says that without RFID companies rely on what the rig hands remember and described the technology as “a checklist to help our employees know what to do every day” and furthermore “takes the downtime out of the equation.”
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
Jon Newsom, Support Services Manager at Independence Contract Drilling also uses TrigPoint’s PROMPTT®. Newsom boasts 98% up time at his company and attributes half of that efficiency to PROMPTT® but expects that percentage to increase in the future. He also pointed out the convenience of the system’s reporting function. If you’re in a situation where you need information about your equipment instantly, it’s at your finger tips.
However, as a younger, more tech savvy generation enters the industry, more and more companies are finding themselves turning to RFID to solve their equipment tracking needs. The cost is determined by the company’s needs but the consensus is that the benefit far outweighs the price tag. Van’t Hof also adds that “Company Men like it because the rig runs more efficiently.”
RFID in the drilling industry is more commonly used by the big oil and gas companies especially out on offshore platforms where keeping track of employees is critical in hazardous environments and it’s not practical to hand deliver reports on a regular basis.
An Example of Radio Frequency Identification (RFID) Technology RFID system for management of nuclear materials packages in transportation and storage.
Photos curtesy of Argonne National Laboratory - www.dis.anl.gov
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
13
14
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
15
16
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
OBSERVANCES AND CELEBRATIONS
SEPTEMBER 2014
1
Birthstone: Sapphire Flower: Aster
LABOR DAY
National: Hispanic Heritage Month,
Labor Day is a Legal U.S. Holiday originating from the Central Labor Union to create a day off for the working man. Became a Federal Holiday in 1894.
Classical Music Month, International Square Dancing Month, National Piano Month,
5-13
Honey Month,
Permian Basin Fair and Expo
5-7
Self Improvement Month
SEPTEMBERFEST
Midland-Museum of the Southwest presents its 45th annual juried art festival. Enjoy art, live entertainment, festival foods & handson family fun in the KinderFest area. Festivities are located on the Museum grounds at 1705 W. Missouri Ave. For more information, call (432) 683-2882, or email info@MuseumSW.org.
Ector County Coliseum Fair Grounds 432-550-3232 www.pbfair.com
7
11 PATRIOT DAY
GRANDPARENTS DAY
21
23
Patriot Day is observed In honor of the individuals who lost their lives as a result of the terrorist attacks against the United States that occurred on September 11, 2001. Americans should display their flags at Half-Staff.
INTERNATIONAL DAY OF PEACE
FIRST DAY OF AUTUMN
International Day of Peace is a day where individuals around the world unite in a worldwide movement to create a Global Ceasefire and a day of peace and nonviolence.
24 Rosh Hashanah
27 NATIVE AMERICAN DAY
OCTOBER 2014 Birthstone: Opal, Tourmaline Flower: Calendula
8 NATIONAL CHILDREN’S DAY COLUMBUS DAY
13
Columbus Day is a observance honoring Christopher Columbus’s first voyage to the Americas in 1492. The holiday is observed in the United States by banks, the post office and most governments and schools, while most businesses remain open. SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
17
threatens longer slump for Midland crude Source: Reuters (Reporting by Catherine Ngai in New York; Editing by Jonathan Leff and Andrew Hay)
An unprecedented slump in price differentials for the thriving Permian Basin oil patch in Texas may persist far longer than initially expected, handing a windfall to nearby refiners at the expense of producers. Oil production from the region has overtaken both the Bakken shale and Eagle Ford in growth, as the rate of oil production is set to increase for the fifth consecutive month in September, outpacing the other major plays where growth has slowed or stayed relatively stable in recent months. Pipeline or rail companies are lagging behind in efforts to move that oil to Gulf refiners just 470 miles to the southeast, causing local stockpiles to swell. In late August, West Texas Intermediate crude delivered into Midland, Texas, for September traded at a discount of $21.50 a barrel versus the equivalent benchmark oil delivered Cushing, Oklahoma, just 500 miles away. It was the widest discount since Reuters began reporting the price in 1998.
day, the growing glut of crude from the Permian Basin has become increasingly apparent over the past few months. However, the latest slump has forced analysts and traders to ponder whether the problem of plenty will be more than a passing phase. With autumn refinery maintenance just around the corner, a near-term recovery is unlikely. Several new pipelines slated later this year were initially expected to ease the woes, but some now say it may take a year or more to alleviate the latest set of logistical bottlenecks to emerge from the shale bonanza.
While the differential narrowed later in the 18
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
"The futures curve seems to suggest that the differential will go back to a normal sub-$5 a barrel in the second half of 2015 and that's considerably more elongated than what we first thought," according to Simmons & Co International analyst Bill Herbert.
WINNERS AND LOSERS
INVENTORY
To benefit are refiners in the region tapping into the extremely competitive oil. This includes Alon USA Energy Inc’s refinery in Big Spring, Texas, 45 miles northeast of Midland. It ran 24,500 bpd of Midland crude in the first quarter, 60 percent of its slate, the company said.
As Permian production continues to take off, stocks in the region have also increased, according to Hillary Stevenson, manager of supply chain network at analytics group Genscape.
Delek US Holding, which has a refinery further east in Tyler, Texas, said it was enjoying a “competitive advantage” as the Midland crude discount to Cushing crude averaged $8.37 per barrel in the second quarter -- versus just 14 cents a year before. Rail operators are scrambling to get in on the arbitrage. Last week marketing firm Murex LLC announced plans to double its rail oil-loading facility in Carlsbad, New Mexico to 40,000 bpd -- just eight months after it had loaded its first cargo. "In late 2012, when Midland was almost a $20 discount to Cushing, operators trucked oil to the Gulf Coast at $20 to $25 a barrel and still seeing price uplifted relative to Midland," said Edward Sherfey, an analyst at consultancy Wood Mackenzie.
Inventories rose for six consecutive weeks through early August, according to Genscape data, even as inventories at the Cushing hub dwindled to six-year lows. Midland stocks dipped by 210,000 barrels in the week ended Aug 15. Inventories may subside further with the start-up of Magellan Midstream Partners LP's 300,000 bpd BridgeTex crude pipeline at the end of September, which will move oil from Colorado City, Texas, to the Houston area. “I think the market is expecting Magellan's BridgeTex pipeline to alleviate constraints in the area, but we’ll see how things operate and when it gets fully up and going,” said Stevenson.
The largest producers in the Permian most at risk to get squeezed as a result of their crude being worth less include Apache Corp and Occidental Petroleum Corp. Analysts note that some producers choose to peg their crude on delivery into the Gulf Coast or Cushing, as to avoid the recent price risk. The differential slump has come alongside a steady decline in benchmark prices as well, knocking some $20 off Midland-based crude prices over the past three weeks to push them to around $76 a barrel since 2012 lows of $67 a barrel. Midland hasn't traded significantly below $70 since oil prices collapsed after the 2008 financial crisis. Breakeven costs for oil at the wellhead across seven subplays in the Permian's Wolfcamp Basin range from $61 to $95 a barrel, according to a Wood Mackenzie analysis. Still, the wider discount is unlikely to affect short-term production plans. "Production isn't an on-off switch. Even if there is a sustained spread, there are other options like trucking and railing," Sherfey said. SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
19
The Power of
TEXAS
www.PBEMag.com
To Advertise call
(432) 559 - 5886 or email
sales@pbemag.com
20
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
energy+teChnology =groWth
Across the US, from Permian Basin, North Dakota, Montana, Colorado, and the Rockies, Whiting Petroleum Teams are bringing record results. To view our Whiting Petroleum Corporation operations visit our website at www.whiting.com Whiting supports the Boy Scouts of America. We are honored to receive the 2014 Boy Scouts Sustainability Award.
Whiting Petroleum CorPoration and its wholly owned subsidiary
Whiting oil & gas CorPoration 400 West Illinois Avenue Suite 1300 Midland, TX 79701 Direct (432) 6866700
Boy Scout Program Ad Re-sized.indd 1
1700 Broadway Suite 2300 denver, Colorado 802902300 303.837.1661 Fax 303.851.4923
8/29/14 SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
12:51 PM 21
THINGS
To Figure Out When You Hit
6-FiGURES by Jullien Gordon
Early on in my career, earning 6-figures was the goal. And then I reached it and I didn't know what to do next except chase more. That tireless chase only reinforced my workaholism. Money doesn't mean happiness—they aren't directly correlated. While people earning 6-figures may not have the same kind of financial problems as others, the biggest problem they have is whether they really love what they do for a living. When you reach 6-figures, if you're not careful, your lifestyle will adapt to having more money coming in and your cost of living will rise. That can trap you into a job, career, or industry you really don't like because now you need at least a certain income to pay the mortgage, car note, and other bills. When you make $100,000+ you may even get caught in the ironic overpaid trap. The overpaid trap happens when your employer pays you more than you think you're really worth. Even if that relationship is abusive, you don't feel empowered to leave because you don't feel anyone else will value you as much as they do, hence you are stuck. The justification to leave would be greater if you felt underpaid. This is especially true for lawyers, consultants, and financial professionals. To avoid this trap, here are 6 things you need to figure out when you hit 6-figures. Despite the title of this article, these questions aren't just for people who make 6-figures. They are pertinent for anyone at any stage of their career.
1
Is this really my passion or problem?
I strongly believe in finding your passion, but a passion can also be a cause or problem. And when I say cause or problem, I don't just mean in the non-profit world (e.g. poverty, educational equity, hunger). Bad customer service is a problem. Quality control is a problem. Retaining talent is a problem. Reaching customers is a problem. Financing is a problem. The pendulum has swung too far to the left with the rhetoric of follow your passion. Not everyone feels creative, 22
but everyone can create value. Ask yourself, "If I was to leave this company today, what problem do I feel equipped to solve for other individuals or organizations?" Every job in the world was created to solve some problem, and your future income will be in direct proportion to the size of the problems you solve today. Oftentimes we have difficulty articulating what our problem is. Therein lies your true value. Some people simply don't believe that they can make enough money doing what they love despite evidence of it all around. That's okay. To each is own. It's a function of their own their own limiting beliefs, not the economy.
2
Is this what I see myself doing for the rest of my career?
Perhaps you have an itch to try something else now. This may be the industry or profession where you started your career and have grown in, but it doesn't have to be your destination. Your career is at least a 40 year journey, unless you plan to retire early, and will take up a majority of your waking hours. Many of your skills are likely transferable to completely different industries and professions, but you have to be open. Herb Kelleher, Founder of Southwest Airlines, began his career as a lawyer. He felt it was an "injustice" that average American couldn't fly, so he set out to create the low-cost airline. Just because he changed industry didn't mean that he had to completely reinvent himself. His mission to address "injustice" was the same—he was just attacking it from a different angle.
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
3
Am I married to this company? Am I happy out what's next. What will your new challenge, project, job, industry, company, or goals be professionally? Is the here?
The 40-40 club is closed. The idea of working for one company for 40 years, 40 hours per week is dead. Nobody is forcing you to stay and it's likely that you won't stay. So rather than leave on bad terms, leave on your own terms. Don't think of it as quitting—think of it as transitioning. The danger of staying somewhere you don't like too long is that you may get great at something you hate and only end up attracting more of what you don't like doing. Many people are afraid to leave their current industry or profession because: They think they will have to start at the bottom They think they will make less money They don't want to lose the network they've built They are comfortable where they are and good at what they do The prize doesn't go to who landed their dream job right away. Dreams change. People change. Economies change. Technologies change. Opportunities change. Landing your original dream job doesn't mean it will be your dream job forever. The prize goes to the individual who is open to change, keeps seeking, and is always looking for new fun ways to express themselves through work.
4
If you're not married to your employer or industry, you're essentially dating. I encourage young professionals to date employers until age 30 and then commit after having a variety of professional experiences that help them understand what they love, hate, and are great at doing.
6
Do I want to start my own thing?
90% of employees say that they want to be entrepreneurs at some point in their career. We all have "good ideas," but the reality is that only 10% of employees will ever pursue entrepren eurship full-time. If you want to be an entrepreneur at some point you have to strategically plan for that transition, by: 1. Starting to be very intentional about your finances, decreasing your cost of living, and saving
Am I inspired by the lives of those above me? Will more money really make me 2. Beginning your business as a side hustle to see if it's even viable happier?
When I talk to many millennials, they aren't inspired by the lives of their CEO and other C-suite executives. Though the top executives may make 10 times more than them, the motivation of simply making more money isn't enough. The sacrifice of life style and quality time with family and friends isn't worth it to most millennials. Unlike other generations, millennials don't want their jobs to define who they are.
While the higher rungs of the corporate ladder command more money, the company also commands more time. At that point, the company is your life. So you have to make a choice if that's what you want. At the end of the day, it's not the money that we want. Nobody wants to swim in coins like Scrooge McDuck. We want the life we think the money will buy us, but so many people have financial freedom without feeling like they have any time freedom to really enjoy it. That's why my focus is on living "more happy hours."
5
next goal 7-figures? Is it more international projects? Is it leading more people? Is it taking on more responsibility or less? Is it having a more flexible work arrangement? Is it working on a product rather than being in a service-based industry? Is it building something from the ground up or making something that's already good into great? Is it working for a great boss or on a great team? Is it moving back home to be near family?
5. What's next?
Earning 6-figures isn't the end game. Once you get to your goal of 6-figures, you have to figure
If you choose this road, your current job becomes a bridge job. A bridge job means that you are using that job to position yourself for what's next by developing skills and relationships and establishing a savings goal or a quit date. After earning my MBA, I strategically took a bridge job and my commitment was to quit at the 18 month mark or once I saved up 6 months of expenses—whichever came first. I reached my savings goal at the 17-month mark and left my job on January 9, 2009 and am still doing what I love today despite the economy tanking in March 2009. It's possible if you prepare no matter what the external circumstances are.
Wishing you more happy hours, Jullien Gordon www.julliengordon.com I'm a recovering workaholic helping people experience more happy hours while doing their Life's Work.
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
23
SPECIALTY PRODUCTS FOR THE OIL & GAS INDUSTRY
RUST GUARD
™
ANTI-CORROSION TREATMENT
■ ■ ■ ■
RETARDS EXISTING CORROSION NON-TOXIC BIODEGRADABLE SPRAY-ON APPLIES EASILY NON-DOT REGULATED
Formulated exclusively for oil and gas rig equipment, drills, pipes, etc, RUST GUARD forms an invisible barrier that protects metal from corrosion due to carbon dioxide, oxygen and moisture. RUST GUARD blocks the naturally occurring flow of ions, causing the corrosion to stop! Use on chains, tanks, pipes, etc. Meets MIL Spec #C-16173-C
™
SOLVENT ALTERNATIVE DEGREASER DG-82 is an environmental friendly, yet extremely powerful alternative degreaser. This cleaner degreaser is widely used in the oil and gas fields for jobs that require strong solvent based products. Spray on, let product set, then wash off with water. Melts away grease and grime. Contains lemon and lime based solvent.
■ FAST ACTING ■ NON-FLAMMABLE ■ NON HAZARDOUS
I N C O R P O R AT E D
Toll Free: 800-331-2243 • www.romixchem.com 24
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
25
Conferences in SEPT - OCT 2014 ACS Symposium on Hydrotreating/Hydrocracking Technologies 09/07/2014 - 09/11/2014 San Francisco CA, USA www.linkedin.com/groups/International-Symposium-onHydrotreating-Hydrocracking-4895622 SPE Deepwater Drilling and Completions Conference 09/10/2014 - 09/11/2014 Galveston TX, USA www.spe.org/events/calendar LATAM Oil & Gas Summit 09/10/2014 - 09/11/2014 Houston TX, USA www.latamoilandgassummit.com GPA Rocky Mountain Annual Meeting 09/14/2014 - 09/14/2014 Denver CO, USA www.gpaglobal.org API Offshore Structural Reliability Conference 09/16/2014 - 09/18/2014 Houston TX, USA www.api.org/events-and-training/calendar-ofevents/2014/osrc SAP Solutions for the Energy Industry Oil & Gas Conference 09/16/2014 - 09/19/2014 Houston TX, USA www.sap-oil-and-gas.com/ogna IADC Advanced Rig Technology Conference and Exhibition 09/16/2014 - 09/17/2014 Galveston TX, USA www.iadc.org/event/2014-iadc-advanced-rig-technologyconference
North America Downstream Week 09/22/2014 - 09/24/2014 Houston TX, USA www.wraconferences.com/event/north-americadownstream-week Rice Annual Global Engineering and Construction Forum 09/22/2014 - 09/23/2014 Houston TX, USA www.forum.rice.edu Rice Global E&C Annual Forum 09/23/2014 - 09/23/2014 Houston TX, USA www.forum.rice.edu/upcoming-events/annual-forum SPE Liquids Rich Basins Conference 09/24/2014 - 09/25/2014 Fort Worth TX, USA www.spe.org/events/calendar SPE Liquids Rich Basins Conference 10/01/2014 - 10/02/2014 Midland TX, USA www.spe.org/events/lrbc/2014 MEXICO UPSTREAM: Contracts & Deepwater Summit 10/06/2014 - 10/09/2014 Mexico City, Mexico www.cwcmexicooilgas.com SPE Artificial Lift Conference and Exhibition 10/06/2014 - 10/08/2014 Houston TX, USA www.spe.org/events/calendar AFPM Question and Answer and Technology Forum 10/06/2014 - 10/08/2014 Denver CO, USA www.afpm.org/conferences API Fall Committee on Petroleum Measurement Standards Meeting 10/06/2014 - 10/10/2014 Westminster CO, USA www.api.org/events-and-training/calendar-ofevents/2014/fall-copm AIChE Southwest Process Technology Conference 10/09/2014 - 10/10/2014 Galveston TX, USA www.aiche.org/conferences/southwest-processtechnology-conference/2014
26
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
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
Complete Liquidation of Offshore / Onshore Oilfield Fabrication Facility
Myron Bowling Auctioneers
September 8-12, 2014
Amelia (Morgan City), LA
Oilfield Equipment, Big Trucks and Construction Machinery
Machinery Auctioneers of Texas
September 10, 2014
Alice, TX
OILFIELD EQUIPMENT TRUCKS & TRAILERS
Kruse Energy & Equipment LLC
September 10, 2014
Pittsburgh, PA
Drill Bits
Kruse Energy & Equipment LLC
September 17, 2014
Duncan, OK
Fishing & Rental Tools
Kruse Energy & Equipment LLC
September 24-25, 2014
Abilene, TX
INVENTORY
INTERNET AUCTIONS
COMPANY
DATES
LOCATION
Trucks, Trailers & Vehicles Auction - No Reserve
Network International Inc
September 9, 2014
Internet
Pipe & Equipment Auction
Network International Inc
September 10, 2014
Internet
Pipe & Equipment Sealed Bid
Network International Inc
September 17, 2014
Internet
No Min - No Reserve Equipment Auction
Network International Inc
September 30, 2014
Internet
INVENTORY
No Lots are Currently Posted for this Auction
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
27
ADVICE for Mineral Owners from a Permian Basin Land Girl This month I want to remind mineral owners to take time to listen to the striking and lovely voice…. of the landmanager who has called your home. First, they have worked hard to find you! When they call you and ask you, “Would you like to sell your mineral?”
and death certificates, certified copies of probates (wills) or other affidavits. You can also provide the contact information for other family members. ALWAYS file your probate in the county where the land is located. (You can mention this to your attorney if they are not familiar with oil and gas.)
Your first instinct may be to yell, “NO, we don’t want to sell our minerals! We will never sell our minerals”
All of the attorneys we have on our radio show Ask the Permianlandgirl will advise you well.
However, the landman may be following with a sentence… “if you don’t want to sell, then we would also like to lease your minerals….” So take time to listen to her offer. Leasing your minerals means you would keep the minerals, and lease them to an oil and gas company for several years to explore and develop. This concept is similar to having a tenant farmer on your surface. By signing an oil and gas lease, the mineral owner is allowing the tenant farmer to harvest and develop a crop during a certain time period paying you a portion of the commission for the crops they harvest. Imagine a perpetual crop and you would get a royalty from each year it produced, such magic beans do exist, they are hydrocarbons!
We only know your family history as it is recorded in the county clerk’s records. We may not know which family members have died, or who has remarried within a family. Life changes like marriage, adoption, births, death, divorce, or bankruptcy are all legal matters that will require legal proof. Often our role is to search for parties through multiple generations, after grandparents and parents have died. Any family history or legal documentation helps correct resourceful databases like ancestry.com or zabasearch.
LEASING, allows a company to utilize their company resources to develop your acreage. As I mentioned in previous articles, exploration and drilling can cost between one to ten million dollars to develop. The mineral owner or lessor can be paid a bonus per net mineral acre. (Net is the amount you own/the total overall acreage.) Your lease bonus can be paid in a bank draft or a corporate check. We always recommend exchange the oil and gas lease for the lease bonus check. Oil and Gas Companies in the Permian have an excellent reputation of paying the mineral owner (or lessors). Often landmanagers will help you bring your title up to date. You can help them by sketching a family tree, providing birth
Landmanagers are committed to finding the best lease bonus and terms between the mineral owner and the company’s drilling budget. They work with diverse income and social groups and enjoy getting to know you. This month, I have met a retired Elizabeth Arden sales representative and obtained valuable makeup tips, a North Georgia farmer, a Rhode Island heiress. It is always fascinating and interesting work. Take time to listen to a landman this month when they call you on the phone. Truly yours, Kimberly Smith, CEO Development Resources, Inc. can also help retrieve and inventory your mineral estate. @permianlandgirl on twitter or landmaam.com
Our radio guests this month on Ask the Permianlandgirl on KWEL.com, AM 1070 and FM 107.1 - every Saturday at 1:00 p.m. Call 432-620-8700 to ask questions! ◆ September 6 Jami Owen, Guest Host- Partners in Education, MISD #mineralgenerosity. Energy companies enhancing the Permian Basin with generous corporate donations through volunteer teams and financial gifts. ◆ September 13 Attorney General Greg Abbott – He will discuss upcoming events with Cecilia Abbott in the Permian Basin. Abbott’s views on Energy. The continued momentum of the governor’s race and how you can get involved in his campaign! Guest Host – James
Beauchamp ◆ September 20 Richard Foster, Foster and Harvey, PC. – How mineral owners can take an active role to add to their title assisting legal teams and landmanagers. Tips for mineral owners! ◆ September 27 Carlos Madrid, Editor, The Permian Basin Energy Magazine. Activity in the Permian. Highlights from the successful PBE Magazine.
Let your minerals be a joy in your life…. Contact us to help us inventory your minerals. Permianlandgirl.org 28
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
29
30
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
SAFETY TIPS
Emergency Preparedness Emergencies happen every day in the Permian Basin. Knowing who to call and what to do when an emergency does happen can be the difference between someone living or dying. Also having a few emergency items close by can make a big difference in the outcome of an emergency. One of the first things that you should do in any emergency is to call for help. Getting professional help coming is the best thing that you can do for a victim. The sooner that professional medical help is provided the better the chances are for a victim. Dialing 911 may not always work so you need to have the correct emergency numbers for the areas that you will be in so you can get the proper help coming quickly. It is also important to know where you are and how to get there so that you can provide that information to the emergency responders. Make sure that you have good directions to your location and in some emergencies longitude and latitude may be required. If the emergency happens in a rural area you can have somebody go meet the emergency responders at a nearby intersection so that they can guide the responders to the location of the emergency. If you will be traveling alone always make sure that someone knows where you are going and when you should arrive.
There are a few items that you should always keep close by to help you respond to an emergency. The first thing that a first responder will always tell you is to protect yourself first. So make sure that if you are going to treat someone that you wear the proper protection such as medical gloves. Another tool of emergency response is a small first aid kit. The first aid kit should contain a small assortment of bandages and compresses for wound treatment and they usually have some creams and wipes such as burn cream and antiseptic wipes. Lastly, know what to do. Take the time to get yourself trained to deal with an emergency. Take a Medic First Aid and CPR class. The knowledge gained in a 4 hour course such as this will give you the basic medical knowledge that you will need to handle most emergencies until professional medical help can respond. You never know when an emergency is going to take place. You may be the one called on to save a life today so be prepared and know what to do and you may be able to help save a life. Shawn Todd Safety Manager, American Safety Services, Inc.
Permian Basin Police Department Sheriff Department Fire Department Ambulance Hospital Andrews 432.523.5675 432.523.5545 432.523.3833 911 432.523.2200 Big Lake 911 325.884.2929 325.884.3650 911 325.884.2561 Big Spring 432.264.2550 432.264.2231 432.264.2305 911 432.263.1211 Crane 432.558.7366 432.558.3571 432.558.2361 911 432.558.3555 Ft Stockton 432.336.4600 432.336.3521 432.336.4643 911 432.366.2058 Garden City 911 432.354.2404 911 911 N/A Kermit 432.586.2577 432.586.3461 432.586.2577 911 432.586.5864 Midland 432.685.7110 432.688.4600 432.685.7340 911 432.685.1111 Monahans 432.943.3254 432.943.6703 432.943.2211 911 432.943.2511 Odessa 432.333.3641 432.335.3050 432.257.0502 911 432.640.4000 Pecos 432.445.4911 432.445.4901 432.445.3519 911 432.447.3551 Pyote 911 911 911 911 N/A Rankin 432.283.2060 432.652.8222 432.693.2422 911 432.693.2443 Stanton 432.756.3303 432.756.3336 432.756.3333 911 432.607.3200 Wickett 911 911 911 911 N/A Wink 432.527.3413 432.586.3461 432.527.3333 911 N/A
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
31
32
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
33
Lessons for change: a social experiment proven successful by a hospital in Midland, Texas by Joe Tye
"If you want to change the culture of your organization, you've got to get the reformers together. They need a free space. They need time to coordinate outside the gaze of the resisters. Counterintuitively, you've got to let your organization have an identity conflict... Think of it as organizational molting." - Chip Heath and Dan Heath: Switch: How to Change when Change is Hard One of the tools that we use when working with client organizations to foster a more positive organizational culture is The Self Empowerment Pledge, which features seven powerful promises - one for each day of the week. These are promises that an individual makes to his or herself four times a day, which takes about one minute per day. We have seen people make amazing life changes when they internalize these seven promises - Responsibility, Accountability, Determination, Contribution, Resilience, Perspective, and Faith. We always suggest that people gather in small groups for a few minutes each day and - as a group - recite that day's promise. This serves as a collective reminder to be more aware of each person's own attitudes and behaviors, and also creates a support group sort of environment where people are helping each other stick to the promises. We have, as you might imagine, seen the entire range of possible outcomes. We've seen organizations where people gather together and make a good faith effort to 34
live these promises and to support the efforts of their coworkers to do so as well. In those places we hear some pretty amazing stories as people begin to internalize those promises - losing weight, joining AA, going back to school, and the like. And we hear impressive stories of how teamwork and communication are enhanced, customer and patient satisfaction go up (in some cases dramatically), and even that productivity is improved in measureable ways. On the other hand we've seen organizations where the effort is virtually stillborn. On the first day people gather, you have a few pickle-suckers standing there with arms crossed, scowl fixed on their faces, rolling their eyes, and sending a loud-and-clear message that they think this is a waste of time and that the person who called the meeting is a moron. Unless there is a manager there with the courage to have a courageous conversation with the emotional vampires, these people almost inevitably suck the lifeblood out of the process. The real losers are the people who might have benefitted but who feel bullied to go along with the sourpuss gang.
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
Our experience exactly follows the pattern described by the Heath brothers. We see the greatest success where a strong manager gives his or her Spark Plug people a protected place and time to plan reinforcing activities and then carefully watches to make sure that the emotional vampires are prevented from dumping, killing the joy before it has a chance to take root.
showing, among other things, people are far more aware of the effect of their attitudes and behaviors on others and that their own workplace is much more positive than it was six months ago. A preliminary assessment of the impact on productivity shows that there has been an improvement of approximately $7 million - and as one senior executive put it, "we're not done yet!"
I will write more about this in a future Spark Plug but I'm spending this week at Midland Memorial Hospital in Midland, Texas, where people really have taken these things to heart. There are pickle jars in almost every department and nursing unit; people are wearing wristbands for each day's promise from The Self Empowerment Pledge and gathering in groups to recite that promise; and doing more to hold coworkers accountable for their attitudes and behaviors.
So if you are working on culture change in your organization, the two most important things you must do are 1) identify your potential Spark Plug people, the informal leaders who will take personal ownership for and be passionate about the change, give them the charge to lead the change, and then give them protected time and space to go to work; and 2) protect them from the people who want nothing more than to see that work fail.
In just six months the changes have been absolutely astonishing. Patient satisfaction scores are substantially higher than they were last spring. More than 500 people completed a follow-up Culture Assessment Survey
To read more from Joe Tye and view the daily, selfempowerment pledge slideshow, you can go to his website, www.valuescoach.com and sign up for his weekly newsletter, Spark Plug.
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
35
36
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
polos
t-shirts
koozies
pens
business cards
caps
flashlights knives
misc.
Promotional Products • TV/Video Production • Graphic Design • Photography
432-559-5886 promoitems@mad-ads-media.com
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
37
SEPTEMBER & OCTOBER
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. The Legacy of Lady Bird Johnson Wilderness and Wildflowers Exhibition June 21 thru September 12 Repeats Every Monday, Tuesday, Wednesday, Thursday, Friday until Sep 12, 2014 Midland County Library - Downtown Branch. 301 W. Missouri-9AM6PM. This exhibition was created to honor the former first lady and wife of the 36th President, Lyndon Baines Johnson, during the centennial year celebrating her birth in 1912. Featuring photographs, video and excerpts from her speeches and writings, this exhibition shows us a strong, highly intelligent, and committed woman who cloaked her enterprising spirit in civility and a warm, gracious manner. SEPTEMBERFEST September 5-7 Midland-Museum of the Southwest presents its 45th annual juried art festival. Enjoy art, live entertainment, festival foods & handson family fun in the KinderFest area. Festivities are located on the Museum grounds at 1705 W. Missouri Ave. For more information, call (432) 683-2882 or email info@MuseumSW.org
Permian Basin Fair and Expo September 5-13 Ector County Coliseum Fair Grounds 432-550-3232 www.pbfair.com 34th ANNUAL MEDINA LAKE CAJUN FESTIVAL September 7 Lakehills-“Home of the Great Gumbo Cook-off.” Saturday, 11am to 10pm. Louisiana Cajun bands, Great Gumbo Cook-off, authentic homemade Cajun foods, arts & crafts, games and more. Lakehills Civic Center in Bandera County, 25 miles from San Antonio. (830) 751-3130 www.cajunfestival-medinalake.com THE SKY’S THE LIMIT BALLOON SPECTACULAR September 12-14 Gainesville-Featuring traditional ballooning events, mass ascensions, balloon competitions and glows at the Gainesville Municipal Airport. Also enjoy concerts, food/merchandise vendors, kid’s area, and more throughout the day. Discover something for the whole family! Benefiting the North Texas Medical Center in Gainesville. Tickets: TBA. www.theskysthelimit.org 30th ANNUAL KOLACHE FESTIVAL September 13 Caldwell-Down-town on the Courthouse Square, enjoy kolaches, food & craft vendors, Czech bands, quilt show, Antique Tractor Show & car show. FREE. (979) 567-0000 festival@burlesoncountytx.com www.BurlesonCountyTX.com ARTS, ANTIQUES & AUTOS EXTRAVAGANZA September 13 Denton-Saturday on Denton’s historic downtown square, 110 W. Hickory St. FREE admission. Classic/hot rod/custom car show, juried art and craft show, antique “Attic Treasure”, lectures & appraisals, motorcycle show, live music, Kid Zone and festival foods make this fun for the entire family. 9am to 3pm. (940) 349-8529 (888) 381-1818 www.dentonmainstreet.org
38
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
146th ANNUAL WASHINGTON COUNTY FAIR September 13-20 Brenham-The “Oldest County Fair in Texas” features Shows, Rodeos, Music and Fun! Nashville entertainment, carnival, crafts, food, livestock and poultry auctions, commercial exhibits and attractions. For more details, call (979) 836-4112, or visit the website www.washingtoncofair.com 30th TEXAS STATE FOREST FESTIVAL September 17-21 Lufkin-Enjoy 43rd Hushpuppy Championships, giant carnival, children’s events, cheerleading and pom-pon/dance competitions, exhibits, talent contest, family entertainment & much more! Henderson Expo Center. (936) 634-6644 www.texasforestfestival.com COME AND TASTE IT September 18, Oct 16, Nov 20, Dec 18 Gruene Historic District / New Braunfels-Meet Texas’ best winemakers & craft brewers at The Grapevine in Gruene Historic District on the third Thursday each month. Complimentary tastings of craft beer & three select wines, plus samples of food offered for sale. Event features live music and prize giveaways. (830) 606-0093 www.GrapevineinGruene.com PROFESSIONAL ARMED FORCES RODEO ASSOCIATION - PAFRA. 2014 World Finals Rodeo September 19-21 Midland Horseshoe Arena. 2514 Arena Trail. Midland, Texas. Opening Night Performance! Thank our Professional Armed Forces by showing your Support! Keep the World Finals in Midland! They have sacrificed for us, now they just want to Rodeo! PAFRA is a worldwide military rodeo association comprised of active duty, guard, reserve and honorably discharged veterans and their dependents. The association exists to bring together people who share the two loves of our military and rodeo. Silent Auction Donation-proceeds go directly to PAFRA and are redistributed to other Military Organizations. A great way to donate. Sponsorship information: Tammy Dooley, 254-897-9533 or 254-897-7143 tammy@dooleyman.com ANTIQUE ALLEY TEXAS AND 37 MILES OF SALES September 19-21 Grandview, Maypearl & Cleburne-Grandview to Cleburne (“Little Round Top”) to Maypearl and locally surrounding towns welcome shoppers with treasures galore. Maps available (during the show) in Grandview. Vendor Inquiries welcome! Also enjoy our April show! (817) 240-4948 www.AntiqueAlleyTexas.com Cups for a Cause 5K and Kids Fun Run September 20 Join the Women’s Center of Odessa Regional Medical Center and Pink the Basin for a 5K/1K Fun Run to raise breast cancer awareness and help individuals with breast cancer in our community. *All proceeds benefit Pink the Basin. 9am. Crossroads Fellowship. 6901 Texas 191 Frontage. Odessa, TX 79762 30th ANNUAL WILD WEST FEST September 20 Springtown-On the Square, 9am-4pm. Parade at 10am. Over 200 booths selling arts, crafts & something for everyone! Enjoy live entertainment, Legends of Texas gunfighters, food/drinks, Mock Jail, 15th Annual BBQ Cook-Off, and numerous rides/activities in the children’s area. Booths: $75+ elec. (optional). Food vendors: 10x10= $125+ electric. Set-up starts 6am
(817) 220-7828 www.wildwestfestival.org OLD GRUENE MARKET DAYS Sept 20-21, Oct 18-19, Nov 15-16, Dec 3-4 New Braunfels-Shop the exceptional handmade quality of sculptors, potters, jewelers, unique craftsman and specialty Texas-made foods, while enjoying live entertainment & 25 specialty stores & restaurants. Historic Old Gruene. (830) 832-1721 www.GrueneTexas.com JUNIOR TEXAS WATER SAFARI September 20 San Marcos-This is a 16-mile race for young canoeists & kayakers held annually on the third Saturday of September on San Marcos River. The adventure begins at City Park and ends in Staples. Registration: 8am at City Park. Free for spectators. (888) 200-5620 www.toursanmarcos.com HALLETTSVILLE KOLACHE FEST September 26-27 Hallettsville-Enjoy a downtown parade, kolache presentation & eating contest, “42” domino tournament, classic cars, bike show, arts & crafts, Czech & German foods, live entertainment, biergarten, children’s activities & more! Held at KC Hall. (361) 798-2662 www.hallettsville.com BOIS D’ARC BASH September 26-27 Commerce-“The Bois d’ Arc Capital of Texas” - 29th Annual Bash Downtown. Saturday arts & crafts, food, music, games, 5K run, parade, Texas wine tasting & youth pageant. (903) 886-3950 Email: info@commerce-chamber.com www.commerce-chamber.com COMANCHE COUNTY POW-WOW September 27-28 Comanche-33rd annual heritage festival, live entertainment, great food, artisan and commercial vendors, antique tractor show, art & photography show, state sanctioned BBQ cook-off, largest car show in Central Texas. Approx. 10,000 attendance in beautiful shady City Park. (325) 356-3233 www.ComancheChamber.org
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
39
Cares
Boy Scouts of America First Annual Sustainability Awards Luncheon
The First Annual Sustainability Awards Luncheon was held on Wednesday, August 13th at MCM Grande in Odessa. The purpose of the event is fourfold: 1) Recognize industry leaders for their significant accomplishments in terms of environmental stewardship and economic impact in our community and world, 2) increase understanding of Scouting’s contribution to environmental education and service for the betterment of our communities, 3) highlight the need to recognize current Scouts who are future leaders in the area of sustainability, and 4) raise funds to support the Buffalo Trail Council’s educational and character building programs throughout West Texas. Multiple sponsors such as Pioneer Natural Resources, Apache, Fasken Oil and Ranch, Light Tower Rentals, Unitex, and others took part in recognizing Charles Acker as youth honoree and Whiting Petroleum as the corporate honoree. Acker is an Eagle Scout with two Silver Palms from Monahans, Texas. He’s also the first youth recipient of the Sustainability Award which is accompanied by a $1,000 university scholarship. 40
Every year since 2009, he has participated in cleanup efforts at the Commemorative Air Force (CAF) Show in Midland, which has more than 20,000 visitors. He’s also picked up trash in the “Keep Odessa Beautiful” campaign twice annually for the last five years and taken part in multiple conservation projects at several Scout camps and the National Jamboree. As a part of the requirements for his first William T. Hornaday Award, he lead his troop in the removal of an invasive species of plant that was preventing access to an important part of Buffalo Trail Scout Ranch. For his second Hornaday Award project, he is planning to work with the CAF in a recycling program that will establish separate receptacles for burnable trash and recyclables such as plastic bottles and aluminum cans which will not only reduce landfill usage, it will also help sustain valuable natural resources. In addition to the Sustainability Merit Badge, Charles has earned more than 120 other merit badges. There are many valuable lessons he has gained through the merits of Scouting but, as a result of his experience and travels, he says,
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
safe manner. For these reasons, the Buffalo Trail Council, Boy Scouts of America chose to honor the company for its good stewardship.
2014 SUSTAINABILITY CENTER CONCEPT
“Scouting has taught me not to be afraid to learn and to make new friends.” As the corporate honoree, Whiting Petroleum was honored for its North Ward Estes CO2 Flood Project. The company has poured more than $850 million and countless man hours into the project since 2007. The project has taken a depleted asset at the end of its producing life and applied the tertiary oil recovery technique of CO2 flooding to grow oil production. It’s projected that these operations will continue for at least the next 30 to 50 years providing cleaner air, cost-effective energy, increasing jobs and tax revenue for our country, and operating in an environmentally
Aside from spreading the good news about Whiting Petroleum’s project, the event emphasized Scouting’s commitment to environmental education programs. To enhance those programs, a new Sustainability Center is being planned for Buffalo Trail Scout Ranch (BTSR). In spite of having a wealth of opportunities to observe and work in a rich outdoor environment, BTSR does not yet have a permanent facility to provide the most cutting edge sustainability-minded program and activities to its thousands of youth participants. The establishment of such a facility has become a top priority for Buffalo Trail Council. Early estimates for the Sustainability Center are in the range of $500,000 or more. Such a center would provide enhanced, interactive learning experiences as well as access to exciting new technologies for generations of Scouts to come. $16,000 was raised during the event for use in programs that reflect the ideals of character building, environmental stewardship, and sustainability. The next Sustainability Awards event is scheduled to take place the week before school starts in August, 2015. For more information about how you can become involved in the awards event or help fund the Sustainability Center, contact Aaron Bedell at (432) 570-7601 or aaron.bedell@scouting.org To find out more, become a volunteer or to donate, visit www.scouting.org
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
41
Tech
Bites
Source: FoxNews.com
Octopus camouflage inspires new technology When an octopus needs to stalk its prey or avoid a predator, it can instantaneously blend into its surrounding environment at will, hiding seamlessly among nearby rocks or coral. Now, researchers have found a way to copy the cephalopod’s ability to hide in plain sight with a device that paves the way for advanced camouflage technology that could find its way to everything from the defense industry to the average person's home. In a paper published Aug. 18 by the Proceedings of the National Academy of Science, Cunjiang Yu, assistant professor of mechanical engineering at the University of Houston, describes a new device that reads and spontaneously mimics the black and white color patterns of its surroundings. Along with his research team, Yu developed an optoelectronic camouflage system – it detects and controls surrounding light – that works in the same way as the skin of an octopus, or its cousin camouflaging mollusks like squid and cuttlefish. 42
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
“Nature has a lot of amazing capabilities that we could learn so much from,” Yu told FoxNews.com. “We realized there was so much we could learn by trying to copy what happens to a cephalopod on a cellular level. We wanted to integrate those natural principles and incorporate them into our artificial design.” Working for over half a year on the Navy-funded project, Yu and his team created what he called “a flexible system that looks like a skin,” equipped with light sensors, heaters that control color switching, and semiconductor actuators that respond to temperature and light, much in the same way as an octopus’s skin. Like the pigment-containing chromatophore cells that cause an octopus’s immediate color shifts, this device responds immediately to its environment, unprompted by any human control. Still in its prototype phase, the device only shifts from black to white, but Yu said the end goal would be to develop technology that could respond to other colors. Yu said this technology could have many practical applications. It could be used by the military for more advanced camouflage in a war zone, or even find its way to people’s homes – he mentioned that it could be incorporated into children’s toys or the sides of drivers’ cars. Moving forward, Yu and his team hope to fine-tune the device’s initial design to replicate a cephalopod’s “more complex systems of mimicry and replication.” So far, the responses to Yu’s design have been enthusiastic. “People have shown excitement from various areas, from all over the scientific arena. There are so many ways this could be used. From military to biomedical research,” Yu said. “It will be interesting to see how it makes its way to the market moving forward.”
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
43
PBE NEWS BRIEFS Watching the basin
Pipeline reversal may be first step in stemming U.S. inland crude slump The reversal of flow in a little-known pipeline in late August may be a first step toward ending bottlenecks in Midland, that have kept crude prices here sharply discounted to those at Cushing, Oklahoma.
"We're expecting differentials to move back closer to the $6 to $7 range (a barrel) from now until the BridgeTex pipeline starts up, and then you'll probably see more of a jump," Sen said.
News of the switch for the 60,000 barrel-per-day (bpd) pipeline has already sharply narrowed the discount for WTI delivered at Midland to that at Cushing, the delivery point for the benchmark U.S. crude futures contract.
Magellan Midstream Partners LP's 300,000 bpd BridgeTex pipeline is set to start delivering oil from Colorado City, Texas, to the Houston area in September.
While it is just a small step in helping to move the ample volumes from the Permian Basin, the nation's fastestgrowing oil patch, other pipelines should be added in the next few months, potentially easing the pressure on Midland prices further. "The reversal is definitely a start, but it doesn't resolve all the Permian Basin takeaway problems," said Amrita Sen, chief oil analyst at Energy Aspects. The Permian Basin has quickly become the nation's fastest growing oil patch with oil production on course to jump 38,000 bpd to 1.72 million bpd in September, according to the Energy Information Administration's drilling productivity report.
But market participants cautioned that the moves came at a volatile time for crude differentials. A trading source said that differentials will likely remain unchanged at levels around $12 a barrel until 2015. Sending oil from Midland to Cushing costs about $1 to $1.50 a barrel provided there is pipeline capacity available, and recently, some traders have been able to take advantage of the $15 to $20 a barrel premium. But if the spread is any narrower than $6 to $7 a barrel, it may be worth pushing oil towards the Gulf Coast instead, which would cost some $2.50 to $4 a barrel, but could fetch a higher premium. Source: Reuters
But infrastructure bottlenecks have held up its crude around Midland, pressuring prices there. In August, the day Centurion Pipeline LP, a subsidiary of Occidental Petroleum Corp, informed authorities of the pipeline change, WTI crude at Midland WTC-WTM for September traded at a discount of $21.50 a barrel versus oil delivered at Cushing, just 500 miles away. It was the widest discount since Reuters began reporting the price in 1998. By the end of the day, the discount had narrowed by around $5-6 a barrel. A day later, Midland gained even more and traded around $12 a barrel below WTI. 44
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
Watching THE SHALE
Banking on U.S. shale gas boom, Asia petrochemical firms switch to LPG Asia petrochemicals firms are building tanks and retooling plants to store and process liquefied petroleum gas imported from the United States, counting on a flood of supply from the shale boom to replace costlier naphtha as a raw material. Samsung Total Petrochemical [SMCHE.UL], LG Chem and Royal Vopak are among a number of companies in Asia expanding import terminals or retrofitting plants over the next one to two years as they buy more LPG. The gas is used by petrochemicals firms to make a broad range of consumer and industrial plastics. Asian petrochemicals firms have traditionally used naphtha as a raw material. They are now switching to LPG because rising U.S. supplies have pushed prices below those of both naphtha and LPG from their main supplier, the Middle East. A looming rise in tanker supply from next year will also help cut U.S.-Asia freight costs.
versus naphtha's $972, a spread of $56. In the same month of last year gas was $17 cheaper than naphtha, data from Ginga Petroleum showed. Both naphtha and LPG are produced by refining crude. A barrel of crude typically has a 3 percent LPG yield while for naphtha it is more than 10 percent. LPG is also obtained in the process of extracting natural gas. The design of petrochemical plants in Asia, though, constrains how much LPG can replace naphtha. Typically, up to 15 percent of naphtha can be replaced. Even within that limit, plants in Asia have room to raise LPG use, which may mean more imports of the gas. The shale boom is expected to spur U.S. LPG production. By 2019, the nation's surplus of the gas will double to 550,000 barrels per day (bpd) from 270,000 bpd in 2014, said U.S.-based consultancy firm ESAI. Source: Reuters
A cutback in naphtha use will hit key regional suppliers of the fuel such as India's Oil & Natural Gas Corp (ONGC) and Kuwait Petroleum, who are already being forced to cut the premiums they charge on naphtha sales. The LPG buying will, however, help the United States trim an expected surplus of the gas and give the shipping industry more business at a time when global trade is still recovering from the aftermath of the financial crisis. Petrochemicals firms in South Korea, Japan, Taiwan and Thailand have bumped up their use of LPG since June as the gas has cost at least $50 a tonne less than naphtha, said traders who track the Asian fuel market closely. "The Far East has been using 350,000 to 400,000 tonnes of LPG a month since June," said a trader who tracks naphtha and LPG, compared with at most 250,000 to 300,000 tonnes a month in the past. Rising supplies of LPG - a compressed mix of propane and butane, also used for heating and transport - have widened the price gap between LPG and naphtha. In June, the average price of the gas was $916 a tonne SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
45
Watching the STATE
SpaceX rocket terminated in Texas test flight A Space Exploration Technologies’ Falcon 9 rocket suffered an anomaly shortly after launch on a test flight in Texas late August, triggering its automatic termination system, the company said in a statement. “Earlier today, in McGregor, Texas, SpaceX conducted a test flight of a three engine version of the F9R test vehicle (successor to Grasshopper)," the privately owned company said.
remained in its designated flight area throughout the test and subsequent termination. “With research and development projects, detecting vehicle anomalies during the testing is the purpose of the program," said the statement from spokesman John Taylor. The test was especially complex, "pushing the limits of the vehicle further than any previous test," it added.
"During the flight, an anomaly was detected in the vehicle and the flight termination system automatically terminated the mission."
SpaceX will review flight record details and analyse its data ahead of its next test, Taylor said.
There were no injuries, SpaceX said, and the vehicle
Source: Reuters
46
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
Watching the GOVERNMENT
Liberia adds new Ebola centers as tries to contain virus outbreak Liberia is building five new Ebola treatment centers each with capacity for 100 beds as it struggles to contain the spread of world’s biggest outbreak of the deadly disease, government and health officials said late August. The hemorrhagic fever has killed more than 1,500 people and infected over 3,000 in Guinea, Sierra Leone, Liberia, Nigeria and Senegal since March and there is currently no widely available vaccine or cure but early treatment can save lives. World Health Organisation (WHO) spokesman Francis Kasolo said Liberia was the worst hit country in West Africa, with nearly 700 deaths among about 1,500 cases, and increasing the number of beds in coming weeks would ease the pressure in the country's congested hospitals.
center, told the Thomson Reuters Foundation. The Liberia government has been criticized for a relatively slow response to the outbreak and a lack of access of basic equipment needed by medical staff and authorities are facing an uphill battle to contain the virus. Earlier in the outbreak, the overcrowded Elwa Hospital in Liberia's capital, Monrovia, turned away some Ebola cases, a scenario exacerbated by the withdrawal of some international staff following the infection of two U.S. health workers. Jorge Castilla-Echenique, health sector coordinator for the European Commission’s humanitarian arm ECHO, said more beds were critical in Liberia but there was also problems finding staff to run the treatment centers.
Ebola, which is passed between humans by contact with infected tissues and fluids, has put severe strain on West African health systems, which were already weak due to poverty, corruption and years of civil war.
"Nobody knows if it will work, but if you don’t build the centers, then it is much more difficult to attract staff," said Castilla-Echenique.
"The idea is to create five different treatment centers that can accommodate up to 100 beds each. The centers will be based in regions that show the most need but Monrovia will have its fair share," Kasolo, coordinator of the WHO Sub-regional Ebola outbreak coordination
He said Ebola had become a question of international security and the WHO was discussing contingency plans in case the new treatment centers failed to control the spread of the disease, including military intervention by foreign forces.
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
47
Watching the Nation
Hawaii and U.S. Territories aim to increase fuel diversity with LNG imports Unlike the rest of the United States, energy consumption in island states and territories is almost entirely petroleum-based. These islands may soon be able to diversify their energy sources to include natural gas, because relatively low natural gas prices and new shipping technology may allow these islands to import liquefied natural gas (LNG). America's islands—the state of Hawaii and the territories of Guam, the Northern Mariana Islands, and American Samoa in the Pacific and Puerto Rico and the U.S. Virgin Islands in the Caribbean—face unique energy challenges because of their physical isolation and lack of fossil fuel resources. They have long depended on imported petroleum products, which are easier to transport than other fossil fuels, to meet most of their energy needs, including electricity generation. As a result, given relatively high crude oil prices in recent years, residential
electricity prices on the islands have been three to five times the average residential prices of electricity on the mainland (Lower 48 states). High electricity prices on U.S. islands have also encouraged distributed generation from technologies such as rooftop solar panels and solar thermal collectors, as well as energy efficiency improvements that reduce consumption. Both Hawaii and Puerto Rico have diversified their electric generation mix with the addition of coal plants, and Puerto Rico has one independent power plant operating on natural gas, imported as LNG at a terminal adjacent to the plant. Utilities in Hawaii and industry in Puerto Rico are now testing the economics of small-scale LNG imports. Hawaii's first shipment using a standardized cryogenic container was completed in April, taking approximately 7,100 gallons (about 0.67 million cubic feet) of LNG from a liquefaction plant in Boron, California, through the port of Los Angeles to Honolulu, where it was regasified and injected into the Hawaii Gas distribution system. This LNG was the first nonsynthetic gas ever put into the system. Hawaii Gas typically makes a synthetic gas from a naphtha feedstock produced in one of Hawaii's two crude oil refineries. Also this spring, power utility Hawaiian Electric took bids on having LNG delivered in similar standardized containers to eight generating plants on Hawaii's five main islands, requesting 800,000 metric tons (about 39 billion cubic feet) annually. The utility is evaluating whether LNG prices are sufficiently favorable to justify switching away from diesel and residual fuel oils currently used at some of its generating capacity. In Puerto Rico this fall, two privately owned bottling plants in the island's industrial north will begin receiving containerized LNG shipments. The LNG will be procured through third-party suppliers from southeastern U.S. peak-shaving plants, shipped from Jacksonville, Florida. Source: www.EIA.gov
48
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
Watching Offshore
Mexican oil company Pemex launches post-reform corporate makeover Mexico's national oil company, Pemex, said on Wednesday it had begun a corporate restructuring following the approval earlier this month of a historic energy overhaul that ended Pemex's decades-long monopoly. The company will keep intact its highly profitable exploration and production unit while it consolidates poorer-performing divisions focused on natural gas, refining and petrochemicals into a single unit that will be known as Industrial Transformation, Pemex said in a statement. The company will also establish three subsidiaries below the two units. One subsidiary will offer drilling services to new private and foreign entrants into the market, another will offer logistical and transportation services and a third will focus on electric power generation.
Company executives have said the new structure will boost Pemex's flexibility and efficiency. The statement added that the company's new board of directors, which will include more independent members and eliminate union-held seats, will be set by October. Beginning early next year, Pemex will ink its first-ever joint ventures with oil companies covering 10 blocks offering a geological mix of oil and gas fields both onshore and offshore. Pemex estimates that the partnerships are expected to generate investment of about $32.3 billion. Source: Reuters
Watching the WORLD
New England relying more on natural gas along with hydroelectric imports from Canada Electric operators in New England have been both generating more electricity from natural gas and importing more hydroelectric generation from Quebec over the past decade. These two sources of electricity are displacing the use of coal and oil as generation fuels in New England. Recent and planned closures of large power plants may cause the independent system operator for New England (ISO-NE) to continue to rely on an increasing amount of hydropower from Quebec. The 745-megawatt (MW) coal- and oil-fueled Salem Harbor Power Station ceased operation on June 1. Pending shutdowns include the 605-MW Vermont Yankee nuclear facility, expected to be shut down at the end of 2014, and the 1,520-MW Brayton Point coal- and natural gas/oilfired power plant, expected to be shut down in 2017. To make up for the loss of these generators, ISO-NE has proposed constructing several transmission lines, including the 1,200MW Northern Pass, to increase transmission of electricity from Canada. Hydro-Quebec has more than 36,000 MW of installed hydroelectric capacity and has been exporting electricity to New England and New York since the 1980s.
New England states have several reasons to further limit their use of electricity generated from fossil fuels. Constraints on some of the pipelines delivering natural gas into New England have contributed to higher natural gas prices and made electricity relatively more expensive. Several New England states also have energy efficiency resource standards or goals, which act like renewable portfolio standards, but are for implementing energy efficiency. Energy efficiency is among the reasons for relatively little change in total system demand over the past decade in New England, despite 3% growth in total population from 2004 to 2012. Finally, New England states are part of the Regional Greenhouse Gas Initiative (RGGI), a market-based regulatory program that places a cap on carbon dioxide emissions from the power sector. The cap is reduced over time, encouraging states to generate more of their electricity using low- or zerocarbon sources. Source: U.S. Energy Information Administration, from ISO New England
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
49
RESTAURANT
BITES
by Marcy Madrid
The Athenian Restaurant Thera and Paul Baldounis were just settling into retirement on a beach off of the coast of Greece when they got a call that changed their lives. Their daughter Tina was expecting their first grandchild. The fact that Tina lived a world away in Texas didn't stop them from packing up their house on the beach and moving to Midland. What they didn't know is that their move to Midland in 2010 was just the first step in a long-term plan Tina had to bring the family's Greek heritage to the Permian Basin and bring her mom out of retirement. You see, Thera, also known as Yaya by her granddaughter, had successfully opened and operated 7 different restaurants in Alaska since the 80's, the most popular of which was a Greek themed restaurant named The Athenian. Thera was born and raised in Athens and as it turns out, her old family recipes were quite popular among the Alaskans. So popular, in fact, that Thera recalls people standing outside in the cold for up to four hours on those cold Alaska nights just to get a chance to dine on her homemade Greek dishes. It was that same unique experience and unforgettable cuisine that Thera's daughter Tina dreamed to bring back to life in Midland, Texas. In 2012, Tina told her mom about her dream and that's when the planning began. It took almost 2 years for the family to buy all the equipment they needed and on August 11th of this year, The Athenian Restaurant opened its doors in Midland. You wont have to wait 4 hours to get into this version of the famous Athenian but you will face the typical hour-long delay synonymous with any Midland restaurant these days. The difference at this restaurant is that you almost don't mind the wait once you realize every menu item is a made from scratch, authentic Greek recipe carefully prepared with a pinch of this and a dab of that by Yaya herself. That's no exaggeration either. Since Thera's recipes are all 50
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
her family's originals, she gets to the restaurant at 4am every day to prepare the very hard to duplicate dishes. She has been slowly trying to teach others her secret, but if you've ever spent time in grandmas kitchen, you know there is no book of exact measurements that get to those famous family favorites, rather a refined art of knowing exactly how much of each ingredient to add by the look, feel and taste of it. And if you get the chance to experience one of Thera's dishes, you'll understand why people in Alaska were willing to wait four hours in the cold to get a table at The Athenian. And when you do make it to this Midland version, be sure to tip the most adorable, 3 year old helper who may end up clearing the dirty glasses off your table. Her name is Thalia, and if it wasn't for her, Yaya may still be retired on the beach in Greece.
Athenian Restaurant 4610 N Garfield Suite B-11 Midland, Texas (432) 247-5280 Mon - Thu: 11:00 am - 10:00 pm Fri - Sat: 11:00 am - 11:00 pm midland.athenian@gmail.com www.facebook.com/Midland.Athenian SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
51
Kids Grow Up by Daniel Stephens
Daniel Stephens is the Senior Pastor of Mid-Cities Community Church, since 2006. He is the honored husband to Kayla Stephens, a proud father of twin sons Jonah & Jude, daughter Kampbell and youngest daughter Karis Anna.
Kids grow up. For some reason, this year, that revelation has made its inevitable approach to the Stephens household. I guess the realization began this summer when Kayla and I loaded up our car with luggage, movies, and an inordinate amount of goldfish (the crackers not the fish) on a 24-hour road trip to North Carolina. Oh, did I mention the children? We also packed the children aka the partakers of the goldfish. We were headed to see my oldest niece graduate from high school. The little girl I had bought riding toys for from a second hand store, because I was in college and didn’t have a lot of expendable cash. The toddler girl whose red hair and freckled cheeks could command her uncles’ undivided attention. The girl who, after five or so years after leaving Texas began to talk with a North Carolina southern twang. As I watched her walk across the stage to receive her diploma, I thought “wow, that was quick”. Kids grow up.
princess onto a college campus filled with hairy-legged boys, an unfamiliar roommate, and adventures yet to be experienced. As I spoke with him over the phone, he was audibly emotional. It made me think about my kids and how time seems to role downhill like Olaf running from the ice queen’s castle. I only have nine first days of school left before my twin boys walk into their dorm room. Nine more summers. Nine more spring breaks. Nine! Now, I’m not trying to be melodramatic, I know life doesn’t end when your kids head off to college. But I sure want to be intentional about those years.
This time of year the reminder that kids grow up is everywhere. Children beginning a new grade, early morning football practices, and parents getting dorm supplies for their freshman adult-child who just yesterday was riding her flash rider three-sixty in the driveway. Two days ago my brother dropped off his red headed 52
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
It makes me not want to miss their game because of an out of town work trip. It makes me want to make sure this camping adventure coming up doesn’t get scrapped. It makes me want to make sure they know that the most important thing to me and their mom is not whether they get all A’s or hit a homerun but that they have the heart and mind of Christ. That they know God and submit to his leadership in their personal decisions. That they see people not as obstacles or objects but as God sees them. Like most parents, I want my kids to go further than me, but in a different way. I don’t necessarily want them to have more money or business success. To quote P. Diddy “mo money, mo problems”. I don’t necessarily want them to have greater technology, as if it’s possible to be even more distracted than our generation is currently. I want them to be more grace-filled, to grow in wisdom, to fulfill their God given purpose, and to love well. It’s easy to believe a lie that says, “You’ve got time”. You have loads of time to influence your kid’s values and
character. So inevitably we approach parenting like we approach much of life, we deal with the onslaught of daily urgent things that wear us out, somehow ceding the important things. We’re too tired to stay up and talk with a young kid who will one day soon be too busy, too cool, or too far away for those pivotal conversations. We are too busy watching the game to make sure we pray and read the Bible together with them, forming their sensitivity to God’s voice. We can get so focused on their performance we miss the trajectory of their heart. We’ve got time…until we don’t. What if we decided this year, we aren’t going to let the tyranny of the URGENT usurp the IMPORTANT? What if we decided not to believe the lie that we have time? I intend to make the most of this school year. After all, kids do grow up. Follow Daniel on Twitter: @DanielBstephens
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
53
U.S. RIG COUNT - TEXAS States &
through September 5, 2014
BAKER HUGHES RIG COUNT
RIGDATA RIG COUNT
Four Week Average 2013
Four Week Average 2014
Last Week
This Week
Four Week Average 2013
Four Week Average 2014
Last Week
This Week
Waiting to Spud
Texas RRC District 1
137
108
108
109
130
121
120
124
17
Texas RRC District 2
83
82
79
81
82
91
91
91
5
Texas RRC District 3
47
67
62
67
46
74
74
71
8
Texas RRC District 4
36
40
41
38
28
28
27
20
1
Texas RRC District 5
14
10
9
10
15
11
11
10
2
Texas RRC District 6
29
35
35
36
32
34
35
35
4
Texas RRC District 7B
18
13
14
14
23
20
23
18
4
Texas RRC District 7C
79
100
100
100
76
101
104
98
5
Texas RRC District 8
268
321
317
321
264
323
326
323
16
Texas RRC District 8A
40
42
42
40
38
44
43
41
2
Texas RRC District 9
18
16
16
16
30
24
25
23
3
Texas RRC District 10
71
65
63
66
77
68
71
70
2
Texas Total
840
899
886
898
841
939
950
924
69
U.S. Totals
1,784
1,909
1,951
2,185
2,200
2,177
142
Districts
1,896 1,914
COPYRIGHT Š 2014 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 54
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
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 August 31, 2014 Company
Footage Drilled
% of Total
Average Footage
Well Starts
% of Total
Directional Wells
1
Helmerich & Payne, Inc.
34,967,900
17.4%
10,392
3,365
13.4%
2,984
2
Patterson-UTI Drilling Company, LLC
20,901,803
10.4%
10,525
1,986
7.9%
1,796
3
Nabors Industries, Ltd.
17,449,377
8.7%
7,463
2,338
9.3%
2,135
4
Nomac Drilling, LLC
8,625,210
4.3%
9,857
875
3.5%
875
5
Precision Drilling Trust
8,176,574
4.1%
8,671
943
3.7%
898
6
Ensign Energy Services, Inc.
7,994,647
4.0%
6,330
1,263
5.0%
728
7
Unit Drilling Company
6,551,997
3.3%
10,190
643
2.6%
607
8
Pioneer Energy Services Corp.
5,458,489
2.7%
10,319
529
2.1%
399
9
Trinidad Energy Services Income Trust
5,065,056
2.5%
9,759
519
2.1%
412
10
Cactus Drilling Company, LLC
4,331,210
2.2%
10,337
419
1.7%
412
11
Capstar Drilling, LP
4,107,550
2.0%
6,252
657
2.6%
180
12
Sidewinder Drilling, Inc.
3,052,543
1.5%
9,005
339
1.3%
317
13
Savanna Energy Services Corp.
2,976,578
1.5%
8,993
331
1.3%
112
14
Xtreme Drilling and Coil Services Corp.
2,893,650
1.4%
10,334
280
1.1%
268
15
Complete Production Services, Inc.
1,997,311
1.0%
10,037
199
0.8%
100
16
Latshaw Drilling & Exploration Company
1,945,794
1.0%
8,534
228
0.9%
228
17
Lariat Services, Inc.
1,734,906
0.9%
6,698
259
1.0%
93
18
Sendero Drilling Company, LLC
1,677,961
0.8%
11,186
150
0.6%
0
19
Robinson Drilling of Texas, Ltd.
1,653,714
0.8%
11,099
149
0.6%
4
20
Frontier Drilling, LLC
1,573,312
0.8%
8,068
195
0.8%
167
21
CanElson Drilling, Inc.
1,536,210
0.8%
8,880
173
0.7%
78
22
Cyclone Drilling, Inc.
1,522,834
0.8%
4,376
348
1.4%
334
23
Orion Drilling Company, LLC
1,520,908
0.8%
11,266
135
0.5%
126
24
Scandrill, Inc.
1,507,300
0.7%
11,963
126
0.5%
112
25
Pinnergy, Ltd.
1,434,632
0.7%
9,196
156
0.6%
156
26
Bison Drilling and Field Services, LLC
1,321,408
0.7%
11,798
112
0.4%
40
27
Precision Drilling (US) Corporation
1,258,390
0.6%
8,989
140
0.6%
80
28
Cade Drilling, LLC
1,218,246
0.6%
11,493
106
0.4%
106
29
Basic Energy Services, Inc.
1,216,752
0.6%
7,419
164
0.7%
48
30
SST Energy Corporation
1,198,659
0.6%
9,989
120
0.5%
117
31
Lewis Petro Properties, Inc.
1,140,800
0.6%
10,186
112
0.4%
111
32
SWN Drilling Company
1,112,405
0.6%
4,345
256
1.0%
255
33
ProPetro Services Incorporated
1,110,900
0.6%
11,572
96
0.4%
0
34
Desoto Drilling, Inc.
1,016,394
0.5%
4,641
219
0.9%
219
35
Big Dog Drilling Company
988,400
0.5%
11,908
83
0.3%
6
Total Top 100 for year 2014
201,400,241
100.0%
---
25,180
100.0%
---
RANK
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
55
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 August 31, 2014
RANK
Company
Footage Drilled
% of Total
Average Footage
Well Starts
% of Total
Directional Wells
1
Anadarko Petroleum Corporation
10,271,502
5.1%
10,439
984
3.9%
975
2
Chesapeake Energy Corporation
8,425,440
4.2%
10,237
823
3.3%
823
3
EOG Resources, Inc.
6,760,265
3.4%
10,530
642
2.5%
618
4
Pioneer Natural Resources Company
6,636,922
3.3%
12,937
513
2.0%
362
5
Occidental Petroleum Corporation
6,549,321
3.3%
6,226
1,052
4.2%
534
6
Apache Corporation
5,764,224
2.9%
8,814
654
2.6%
455
7
Marathon Oil Corporation
4,627,655
2.3%
14,738
314
1.2%
314
8
Devon Energy Corporation
3,983,759
2.0%
9,222
432
1.7%
396
9
BHP Billiton Limited
3,901,668
1.9%
13,787
283
1.1%
282
10
Chevron Corporation
3,555,928
1.8%
5,094
698
2.8%
312
11
ConocoPhillips Company
3,504,283
1.7%
8,363
419
1.7%
342
12
QEP Resources, Inc.
3,384,769
1.7%
11,960
283
1.1%
257
13
Encana Corporation
3,060,756
1.5%
12,392
247
1.0%
238
14
Noble Energy, Inc.
2,879,917
1.4%
9,897
291
1.2%
291
15
Exxon Mobil Corporation
2,747,383
1.4%
5,088
540
2.1%
245
16
Oasis Petroleum North America, LLC
2,700,725
1.3%
10,191
265
1.1%
265
17
Concho Resources, Inc.
2,673,560
1.3%
11,233
238
0.9%
184
18
Whiting Petroleum Corporation
2,511,018
1.2%
9,847
255
1.0%
228
19
Linn Energy, LLC
2,153,272
1.1%
5,564
387
1.5%
188
20
Southwestern Energy Company
2,113,658
1.0%
4,440
476
1.9%
473
21
SandRidge Energy, Inc.
2,094,811
1.0%
5,317
394
1.6%
284
22
Laredo Petroleum, Inc.
2,071,800
1.0%
11,199
185
0.7%
71
23
EP Energy E&P Company, LP
1,983,775
1.0%
9,724
204
0.8%
181
24
CrownQuest Operating, LLC
1,745,100
0.9%
11,953
146
0.6%
0
25
Murphy Oil Corporation
1,717,616
0.9%
10,473
164
0.7%
164
26
WPX Energy, Inc.
1,694,790
0.8%
6,595
257
1.0%
255
27
Ultra Petroleum Corp.
1,615,777
0.8%
11,881
136
0.5%
136
28
Antero Resources Corporation
1,608,025
0.8%
11,167
144
0.6%
144
29
Newfield Exploration Company
1,569,649
0.8%
6,108
257
1.0%
246
30
Penn Virginia Corporation
1,477,500
0.7%
14,485
102
0.4%
102
31
Continental Resources, Inc.
1,399,280
0.7%
3,356
417
1.7%
417
32
Cimarex Energy Co.
1,394,800
0.7%
10,409
134
0.5%
130
33
Energen Resources Corporation
1,273,462
0.6%
9,796
130
0.5%
83
34
Parsley Energy Operations, LLC
1,245,500
0.6%
11,750
106
0.4%
10
35
Windsor Energy, Inc.
1,235,852
0.6%
10,937
113
0.4%
90
Total Top 100 for year 2014
201,400,241
100.0%
---
25,180
100.0%
---
56
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
Source: www.eia.gov
Increased production and infrastructure constraints open crude oil price spread between Midland and Cushing Increasing production of crude oil in the Permian Basin has outpaced pipeline infrastructure to move the crude to refineries, causing prices for crude in the Permian (at Midland, Texas) to fall below similar crudes priced at Cushing, Oklahoma (Figure 1). While the discount of Midland prices to Cushing prices has been increasing for almost a year, recent refinery outages in the region have caused it to widen substantially. Several infrastructure projects that will allow more crude to flow from the Permian to the U.S. Gulf Coast are expected to come online soon, which should narrow the discounts of crude oil at Midland. This week, the WTI-Midland to WTI-Cushing discount reached $17.50 per barrel, surpassing the previous record discounts of late 2012, when production exceeded pipeline takeaway capacity. Those record discounts began easing when Magellan Midstream Partners in 2013 reversed and repurposed its Longhorn pipeline to move crude from the Permian to Houston.
Strong production is again causing weak prices in the Permian. In its latest projections in the Drilling Productivity Report (DPR), EIA estimates that in August Permian production will be almost 1.7 million barrels per day (bbl/d), 0.3 million bbl/d more than a year ago. This time around, however, refinery outages are also contributing to widening differentials. Trade press has reported that Phillips 66 has shut down for repairs its 140,000-bbl/d refinery in Borger, Texas, which uses crudes produced in the Permian. In addition, outages at refineries in Houston and Port Arthur, Texas, are reducing demand for Permian crude oil. The current situation in the Permian is beginning to affect the two Midland-priced grades of crude, WTI and West Texas Sour (WTS), differently. Most of the recent production increases in the Permian have been light sweet WTI grade crude. The increase in Permian light sweet production combined with increasing supplies of light sweet crudes
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
57
than the previous week, and eight cents lower than the same time last year. Prices decreased in all regions of the nation except for the Rocky Mountains, where the average price increased by less than a cent to $3.66 per gallon. The largest price decline came in the Midwest, where prices were down six cents to $3.40 per gallon. The East Coast and West Coast prices each fell three cents, to $3.43 and $3.85 per gallon, respectively. The Gulf Coast average price decreased a penny to $3.26 per gallon.
from other Gulf Coast producing regions, such as the Eagle Ford, have put downward pressure on the price of Midland WTI. While production of sour crude has also grown, it has not increased as much as light sweet production. The significant capacity of many Gulf Coast refineries to process sour crude oil has supported the WTS Midland price. Midland WTS is currently trading at a $9-per-barrel premium to Midland WTI. In addition to the 225,000-bbl/d Longhorn Pipeline, the first expansions on the Sunoco Logistics Partners Permian Express pipelines and other portions of Sunoco's pipeline system also came on-line in 2013. However, the increase in crude oil production has now overwhelmed these expansions, and additional pipeline expansions are under construction. Magellan's 300,000-bbl/d BridgeTex Pipeline, which will move crude from West Texas to refining centers in Houston, Texas City, and Galveston, is expected to begin operating soon. And, beginning in early 2015, the Cactus Pipeline, with an expected capacity of 200,000 bbl/d, will move Permian crude south to connect with an expanded Eagle Ford Pipeline that will deliver crude to Corpus Christi, Texas.
Average U.S. diesel fuel prices decreased one cent this week to $3.84 per gallon, seven cents lower than this time last year. Diesel fuel prices fell in all areas of the country, with the East Coast, Midwest, Gulf Coast, and Rocky Mountain prices all down by one cent, to $3.88, $3.78, $3.74, and $3.87 per gallon, respectively. The West Coast price fell less than a penny to remain at $4.02 per gallon for the fourth straight week.
Propane inventories continue to rise U.S. propane stocks increased by 2.5 million barrels last week to 72.8 million barrels as of August 15, 2014, 10.9 million barrels (17.7%) higher than a year ago. Gulf Coast inventories increased by 1.2 million barrels and Midwest inventories increased by 1.1 million barrels. East Coast inventories increased by 0.2 million barrels while Rocky Mountain/ West Coast inventories remained unchanged. Propylene non-fuel-use inventories represented 5.5% of total propane inventories.
Gasoline and diesel fuel prices decrease The U.S. average retail price for regular gasoline fell to $3.47 per gallon as of August 18, 2014, three cents lower 58
PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | SEPTEMBER 2014
SEPTEMBER 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE
59