SHALE Oil & Gas Business Magazine July/August 2014 by SHALE Oil & Gas Business Magazine

US REP. HENRY CUELLAR: NORTH AMERICAN ENERGY INDEPENDENCE

SHALE OIL & GAS BUSINESS MAGAZINE

J U LY / A U G U S T 2 0 1 4

H.L. HUNT

STEER

LEGACY OF THE RICHEST WILDCATTER

Eagle Ford Excellence Awards Coming Soon

// PAGE 60

CHENIERE ENERGY & OUR ENERGY MOMENT // PAGE 16

HACIENDA CLEMENTE JACQUES

// PAGE 26

ARTPACE

WHERE CONTEMPORARY ART HAPPENS // PAGE 62

DESTINATION FOR THE SOUL // PAGE 56

ARTURO HENRÍQUEZ CHIEF PROCUREMENT OFFICER

PEMEX HAS A BRIGHT FUTURE // PAGE 18

THE PALM: THE BEST STEAK IN TOWN…88 YEARS AND COUNTING SHALE OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE

1814 E. 53RD LANE FORT STOCKTON, TEXAS 79735

OTG Services

INFO@OTGSERVICES.COM

432-336-3446

THE INDUSTRY LEADER IN OIL FIELD SERVICES

Surface Rentals

Workforce

Equipment

• Portable Housing

• 24 Hour Roustabout

• Water Transports

• Gas Plant Maintenance

• Bulldozers

• Tank Battery Construction

• Road Graders

• Tank Cleaning Crews with Confined Space Certification from an independent safety compliance service

• Backhoes

• Portable Restrooms • Portable Showers • Portable Eyewash Stations • Power Washers • Sand King Exhaust Hatch Sock • Safety Trailers • Trash Trailers

• Site Remediation • Location Construction • Poly Pipe Placement/Construction

• Skid Steers • Steel Wheeled Rollers • Flat Beds • Lowboys

• Environmental Cleanup

• Trenchers (with capability to place up to 42” lines)

• Heavy Equipment Hauling/Hot Shot

• Belly Dumps

• Road Construction

• Dump Trucks

• Surface Rentals

• Excavator

• PRV Testing

• Vibratory Roller (Sheep’s Foot, Steel Wheel) • Reel Trailers

OTGSERVICESTX.COM SHALE OIL & GAS BUSINESS MAGAZINE

The leader in oilfield transportation and logistics since 1949

SHALE OIL & GAS BUSINESS MAGAZINE

AEP Texas: Your Business Partner in Shale Oil & Gas Extensive shale oil/gas reserves are located in and around geographic areas that align with the AEP Texas electric delivery service territory. Let the AEP Texas service team assist you with timely information regarding the location, capacity and availability of AEP Texas facilities. To request electrical service or gain access to a certificated planning map, please complete the information request form located at www.AEPTexas.com/shaleoilgas Contact: Bradley Lenz 361-881-5455 bhlenz@aep.com

John Longoria 361-881-5867 jflongoria@aep.com

www.AEPTexas.com/shaleoilgas @AEPTexasEconDev

SHALE OIL & GAS BUSINESS MAGAZINE

Specializing in oilfield supplies and service throughout the Eagle Ford Shale - Sand Kings - Sand Chiefs - Blenders - Hydration - FRAC Pumps - Falcons - Batch Mixers

 Dual & single belts -Cam belt  Hydraulic Rams, Value Banks, Pumps, Motors  Sauer Danfoss, Chains, Chain Drive,  Specialized Tooling. Tool Box, Machining  Discharge & Suction Pumps  Suction Manifold  Discharge Manifold  Murphy Gauges  Sensors  Circuit Board

Clint Schweers oilfieldexperts@gmail.com 13611 U.S. Hwy 181 S. San Antonio, Texas 78223 (210) 471-1923 6

SHALE OIL & GAS BUSINESS MAGAZINE

we help you

PHOTO BY DANIEL HOLMAN

Catering

Venues

Event Management

210.434.2331 • donstrange.com • info@donstrange.com SHALE OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE

CONTENTS

JULY/AUGUST 2014

20 ARTURO HENRÍQUEZ COVER AND TABLE OF CONTENTS PHOTOGRAPHY BY: JOSE LUIS PEREZ

FEATURE

INDUSTRY

COVER STORY

Awards Presented by STEER 30 Shale Play 32 Mexico’s Energy Reform

18 Our Energy Moment Coalition

PEMEX ...

COURAGE TO CHANGE 20 Energy Reforms in Mexico have spurred great changes at PEMEX and the results have been swift and effective.

28 2014 Eagle Ford Excellence

POLICY

36 Lessons Learned in South

Texas Can Benefit Mexico 38 Q&A with Senator Judith Zaffirini 40 Mexico’s Energy Framework 42 The New Middle East

BUSINESS

NONPROFIT

Diversification in Rural Texas 50 Live for Today and Plan for Tomorrow 52 Freebirds

COMMUNITY

46 We Can All Be Leaders 48 Opportunities for Economic

LIFESTYLE

54 Boot Ranch Summer Comfort Foods 56 “Black Gold” Going Up in Smoke 58 Hacienda Clemente Jacques 60 The Palm Restaurant 62 H.L. Hunt: The Unstoppable Fortune

64 Artpace San Antonio 66 Halliburton Expands Community Support Activities in San Antonio Area

SCENE

68 San Antonio Pipeliners 70 Petroleum Connection’s Mexico Conference 72 Rod Skaufel Cover Party

SHALE OIL & GAS BUSINESS MAGAZINE

ADVISORY BOARD

OIL & GAS BUSINESS MAGAZINE JULY/AUGUST 2014

OMAR GARCIA - SENIOR ADVISOR

As president of the South Texas Energy & Economic Roundtable (STEER), Omar Garcia is an expert on business opportunities associated with the Eagle Ford Shale who works with the oil and gas industry, local officials, community members, regional stakeholders, educational institutions and economic development organizations to ensure that the natural oil and gas industry in South Texas is advancing in a positive way that is beneficial to both the community and the industry. Garcia has more than 12 years of economic development experience, and he spent two years working for Bank of America as vice president of business development for the bank’s treasury management division. He is a certified economic development finance professional through the National Development Council, and he graduated from St. Edward’s University with a major in international business and Spanish. In 2010, Gov. Rick Perry appointed Garcia to the Texas Economic Development Corporation.

KYM BOLADO CEO / PUBLISHER

EDITOR IN CHIEF Jimmy Perkins

CHIEF FINANCIAL OFFICER Deana Acosta

ART DIRECTOR Elisa Giordano

EXECUTIVE EDITOR Lauren Guerra

EXECUTIVE ACCOUNT MANAGER/ EVENT COORDINATOR Ashlee Harper-Arnn

DOUGLAS STERLING CAIN

Douglas Sterling Cain is the president of Lake Truck Lines, which has enjoyed a 300 percent growth over the past two years. Cain links the company’s recent success to a decision to move headquarters from Houston to San Antonio, believing it all happened by “grand design.” The company arrived in San Antonio with 12 trucks, and it is now operating close to 100, quickly becoming the solution for custom oilfield equipment and tank manufacturing, as well as oilfield transportation and logistics. Cain prides himself on being innovative and “staying ahead of the curve.” Out of his desire to make oilfield jobs safer and more effective, he launched subsidiary company Lake Oilfield Services, which already manufactures six different types of oilfield equipment. As Cain sums up in his own words, “honor and integrity are incredibly expensive on Monday, but the dividends show up on Friday.”

VICE PRESIDENT OF SALES

Stephanie Hawley / Austin & Houston Liz Massey Kimmel / Corpus Christi, McAllen, Laredo & Alice Joyce Venema / San Antonio

ACCOUNT EXECUTIVES

Teri Almendariz, Christi Early, Christi Guillory, Lizette Gutierrez, Shana Hamid, Gloria Perez, Dina Ybanez

CONTRIBUTING WRITERS

Douglas Cain, Scott Courtney PG, Congressman Henry Cuellar, Robert J. Downing, Omar Garcia, Shana Hamid, George F. Long, Juan Carlos Luna, Rob Patterson, Jimmy Perkins, Commissioner David Porter, Dawn Robinette, Aaron J. Staudenmaier, Thomas Tunstall Ph.D., Joyce Venema, Charlotte Warren

PHOTOGRAPHERS

Matt Garcia, Jose Luis Perez, Malcolm Perez

JEFFREY A. WEBB

Jeffrey A. Webb is a senior associate in the San Antonio office of Norton Rose Fulbright, a global legal practice providing the world’s pre-eminent corporations and financial institutions with a full business law service. Recognized for its industry focus, Norton Rose Fulbright is strong across all of the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and health care. CONTINUED ON PAGE 11

www.shalemag.com For advertising information, please call 210.240.7188 or email kym@shalemag.com. For editorial comments and suggestions, please call 830.377.8573 or email jimmy@shalemag.com. TO REACH US: 5600 Broadway Ave. San Antonio, Texas 78209 Phone: 210.240.7188 Copyright © Shale Magazine. All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.

SHALE OIL & GAS BUSINESS MAGAZINE

SHALE SHALE OIL OIL & & GAS GAS BUSINESS BUSINESS MAGAZINE MAGAZINE

PUBLISHER’S NOTE WHAT AN EXCITING TIME AT SHALE OIL & GAS BUSINESS MAGAZINE. SHALE HAS BEEN SELECTED TO LAUNCH AND CONDUCT A REGIONAL TOUR TO PRESENT THE ECONOMIC IMPACT OF THE EAGLE FORD SHALE.

Sincerely,

KYM BOLADO

CEO/Publisher of SHALE Oil & Gas Business Magazine kym@shalemag.com

SHALE OIL & GAS BUSINESS MAGAZINE MISSION STATEMENT:

SHALE Oil & Gas Business Magazine is a publication that showcases the dynamic impact of the Texas energy industry. The mission of SHALE is to promote economic growth and business opportunities and to further the general understanding of how the energy industry contributes to the economic well-being of Texas and the United States as a whole. SHALE’s distribution includes industry leaders and businesses, service workers, entrepreneurs and the public at large.

SHALE OIL & GAS BUSINESS MAGAZINE

PHOTO BY SARAH BROOKE LYONS

This study, conducted by the University of Texas at San Antonio in conjunction with STEER and ANGA, is the definitive report relied on to provide the economic statistics resulting from the energy industry’s activity in South Texas. Furthermore, the Economic Impact of the Eagle Ford Shale is relied on by state and regional elected officials to help guide them on how best to serve the citizens of this region and our state. These networking events will provide a clear look into the study and allow interaction with industry experts. The research is being released by UTSA and authored by Tom Tunstall, Ph.D. It is also a vital reference that will be used by the media to report on the economic data from the region. We are honored and delighted to assist in this very important report. Our SHALE team will be involved in the creation and design of the printed report, as well as marketing and executing the regional tour to help get the word out on the positive impact of the EFS. The tour will consist of stops in Houston, San Antonio, Corpus Christi and Laredo, Texas. We have opportunities for table exhibitors and sponsors. It is your time to get noticed in SHALE Oil & Gas Business Magazine and in the vibrant energy industry in our great state! Join in the conversation. I would also like to truly thank the man who is the subject of our cover story, Arturo Henríquez, for allowing SHALE to interview him at his PEMEX office in beautiful Mexico City. We are all extremely inspired by his interview and the corporate-wide commitment to the changes occurring at PEMEX. He is certainly a true visionary and we are grateful for his support of our publication. Finally, I’d like to encourage the community and businesses in the oil and gas sphere to utilize our advertising partners in SHALE. Our partners are some of the most respected businesses in the communities we serve. We, here at SHALE, are confident in our magazine and we encourage you to call our account managers if you would like to get more information on advertising opportunities with SHALE. We have dozens of happy clients that will attest to our commitment to their needs that go far beyond a mere print or digital advertisement. We are focused on demonstrating that oil and gas is much more than an occupation, but is also a lifestyle! And yes, in oil and gas you can have it all. We love to feature fine dining, entertainment, social events, travel and recreational pastimes that appeal to the men and women who work in energy. We are more than just another publication; we are your marketing team who gives you choices with multiple touch points to get you in front of the right decision makers. Until next time…

ADVISORY BOARD JAMES M. SUMMERS

James M. Summers joined in San Antonio office of Norton Rose Fulbright in 1976 and became a partner in 1985. He received his undergrad from Southern Methodist University and his law degree from the University of Texas Law School, and he has six professional honors. Summers’ legal practice focuses on real estate and oil and gas matters, which involve the representation of an array of clients who deal with complex and sophisticated financial transactions and situations. Summers represents many financial institutions and private equity groups in the securitization, CMBS and other related loan markets. He counsels clients and is involved in major workout and reorganization matters relating to all areas of real estate. His practice focuses on energy and oil and gas transactions with matters in the Eagle Ford Shale industry, representing everything from acquisitions and dispositions to refineries and solar power facilities.

SCOTT COURTNEY

Scott Courtney, P.G., is the president of Premier Hydro, and he has more than 30 years of background, education and experience in oil and gas, water resources, environmental management and business development. He was raised in West Texas, but he has made South Texas his home since 1984 while working around the country in major programs for the Department of Energy, the Department of Defense and the oil and gas industry. Over the last four years, he has focused on the Marcellus, Permian Basin and Eagle Ford Shale plays. He is the 2013 South Texas Wildcatter Committee chairman, and he has made a career of sustainable development and production of natural resources.

KIMBERLY WEBB

Kimberly Webb is the business development manager for Chemoil Energy, an oilfield service company specializing in frac fuel operations. Webb is in charge of managing and marketing the Texas region, and she is committed to improving the efficiencies of the oil and gas service industry. Chemoil Energy is a division of Chemoil Corporation that sells and markets fiveplus billion gallons of commodities worldwide. It is the world’s leading integrated producer and marketer of commodities.

THOMAS TUNSTALL, PH.D.

Thomas Tunstall, Ph.D., is the research director for the Institute for Economic Development at the University of Texas at San Antonio. Previously, he was a management consultant for SMEs, and the former Component 1 Team Leader for the Azerbaijan Competitiveness and Trade project. He has also served as an advisor relations executive at ACS, and was the founding co-chair for the Texas chapter of the International Association of Outsourcing Professionals (IAOP). He has published a business book entitled “Outsourcing and Management” (Palgrave 2007) and was the technical editor for “Outsourcing for Dummies” (Wiley 2008). Tunstall has consulted in both the public and private sectors. In 2006, he taught Ph.D. candidates in a business and government seminar at the University of Texas at Dallas, and in 2005, he completed a long-term assignment in Afghanistan, where he was deputy chief of party for a central bank modernization project.

Visit www.hightouch.info/shale for more info on how we can help the gas and oil industry.

SHALE OIL & GAS BUSINESS MAGAZINE

NPE NUECES POWER EQUIPMENT

HEAVY CONSTRUCTION EQUIPMENT RENTAL AND SALES ACROSS TEXAS NPE has the Eagle Ford covered for all of your construction equipment needs.

Call Toll-Free 800-848-0790 for the Location Nearest YOU Eight Locations in Eight Cities Corpus Christi 361-289-0066 Victoria 361-576-0066 Laredo 956-725-0066 San Benito 956-361-0066 Edinberg 956-702-0066 El Paso 915-541-0066 Houston 713-247-0066 San Antonio 210-310-0066

W W W. N U E C E S P O W E R . C O M

SHALE OIL & GAS BUSINESS MAGAZINE

RLI. A Solutions Company.

210.932.2989 www.rlilogistics.com RLI is an Intermodal broker that can provide a complete package of integrated shipping and freight logistics, which includes: » Rail Management Services » Transloading » Warehousing » Bulk aggregate and chemicals handling » Mexican Customs Clearance » US Customs Clearance » Truck and Container Logistic Solutions » Freight Forwarding » Distribution » Trucking Solutions » Documentation - all required forms » Project Supervision and Execution » Repackaging

RLI, A RAIL LINK INTERNATIONAL COMPANY, is a full service shipping and freight handling specialist, offering fully customized and integrated logistics solutions. RLI’s expertise in US-Mexico cross border operations and customs broker services, allows expedited clearance of commercial shipments to and from Mexico.

At RLI, we work to find specialized and specific solutions for our clients. Our team of logistic solutions experts are people you can place your confidence in, providing a single point of contact and responsibility for all your material handling and logistics needs. RLI provides door to door, turnkey logistics solutions, banding and transportation coordination logistics that meets or exceeds your needs. SHALE OIL & GAS BUSINESS MAGAZINE

Sept. 15-17 San Antonio, Texas

Henry B. Gonzalez Convention Center

Extraordinary Expanse of the EAGLE FORD:

A Play Like No Other

With 4,500+ attendees, 35+ executive-level speakers, 400+ exhibitors showcasing solutions, and almost 10 hours of exclusive networking opportunities – DUG Eagle Ford is the ONE event that brings the entire region together. You’ll gain new insights, proven best practices, and hundreds of valuable connections.

FEATURED

KEYNOTE

SPEAKER

Salvatore “Sal” Giunta Medal of Honor Recipient U.S. Army (ret’d) Each year thousands of DUG Eagle Ford attendees gather to honor our military heroes. This year, Hart Energy brings decorated war hero Salvatore “Sal” Giunta to the DUG stage. Giunta is the first living person since the Vietnam War to receive the U.S. military’s highest decoration, the Medal of Honor. Join us to hear his extradorinary tale of heroism and courage during the keynote luncheon on Tuesday, September 16. 16

SHALE OIL & GAS BUSINESS MAGAZINE

To ATTEND, SPONSOR or EXHIBIT visit:

DUGEagleFordEvent.com Presented by

Hosted by

PREMIER SPONSORS

Interested in upstream developments and/or midstream activity? With two concurrent tracks, upstream and midstream, DUG Eagle Ford offers focused content on the topics that matter most to you. As a full conference attendee, you’ll have access to both tracks – plus you will receive digital access to all speaker presentations available after the conference.

PLATINUM SPONSORS

DUG Eagle Ford puts you at the center of all the action!

TWO CONFERENCE TRACKS

UPSTREAM PROGRAM

GOLD SPONSORS

ONE EVENT…

* Hear from executives at leading E&Ps in the Eagle Ford: Marathon Oil, Pioneer Natural Resources, Halcon Resources and more transactions

* Discuss the latest on drilling efficiencies and new technologies

* Get updates on emerging activity in the Austin Chalk

SILVER SPONSORS

* Learn about blockbuster billion-dollar

MIDSTREAM PROGRAM

* Discuss major pipeline projects on the horizon *Learn about large-scale infrastructure *Hear how new facilities and expansions will raise regional processing capacity

*Get exclusive updates from senior-level

executives at Twin Eagle Resource Management, Phillips 66, Energy Transfer Partners and more

BRONZE SPONSORS

growth plans throughout South Texas

An NCI Company

SHALE OIL & GAS BUSINESS MAGAZINE

FEATUR E

OUR ENERGY MOMENT COALITION BY: JOYCE VENEMA

THE U.S. HAS LIQUEFIED NATURAL GAS (LNG) re-

sources in abundance throughout the nation. However it is always helpful to spread the great news about the many advantages of this abundant natural resource. There is a group that has been formed to inform citizens and elected officials about the importance of these resources that are at our fingertips: Our Energy Moment Coalition. Our Energy Moment is a diverse group of companies, organizations, individuals and institutions located throughout our country that want to build support for the exportation of LNG and the development of energy resources. SHALE Oil & Gas Business Magazine is proud to be a part of this coalition in educating and promoting this movement. OurEnergyMoment.org is essentially an information clearing house and combines social media, thirdparty studies, and academic papers about America’s energy revolution. Jason French, Board Member and Spokesperson for Our Energy Moment Coalition, says its mission is essential. “The general public needs education about the importance of exporting LNG. The U.S. is blessed with an abundance of natural gas. We can produce more than what we need as a nation.” There are many benefits to America exporting LNG. Not only will this create jobs but it is estimated that it would generate up to $47 billion in net benefits to the U.S. economy. In Corpus Christi, Texas, Cheniere Energy is working on a project that is to break ground

SHALE OIL & GAS BUSINESS MAGAZINE

The Corpus Christi Town Club membership Fine Dining / catering A TRADITION OF EXCELLENCE SINCE 1952

POLITICIANS ON BOTH SIDES OF THE AISLE AGREE THAT THIS IS A HUGE OPPORTUNITY FOR THE U.S. TO GROW OUR ECONOMY

The club for all seasons and occasions 800 North Shoreline, 6th Floor Corpus Christi, TX (361) 880-5777 www.cctownclub.com

in early 2015. After completion, this project will reduce the U.S. trade deficit by an estimated $7 billion per year. â&#x20AC;&#x153;In Texas and Louisiana alone, there are over $70 billion in projects,â&#x20AC;? says French. The technological advances of this century, in combination with the bountiful supply of natural gas, will create jobs and wealth for the economy. According to IHS Consulting, over a million jobs are supported by natural gas development today, and by 2035 will support more than 2.4 million jobs. According to Our Energy Moment, the U.S. and our allies in Europe and Asia have long been dependent on foreign countries like Iran, Russia and Venezuela. By cultivating our own LNG instead of relying on other nations, we would be self sufficient, keeping our energy prices low, while advancing geopolitical benefits. Politicians on both sides of the aisle agree that this is a huge opportunity for the U.S. to grow our economy. One of Our Energy Moments tasks is to be a megaphone for the domestic use and exportation of LNG through policy briefings, events, editorial meetings, op-eds and a variety of other public forums. Not only is Our Energy Moment a positive voice for the industry, it also directs public outreach and education on the benefits of the U.S. jumping into the world market. Our Energy Moment is always looking for new members that are in support of LNG export opportunities and the thousands of jobs this will create. The organization hosts several local and national events throughout the year to increase membership and support that is crucial for this mission to continue. For more information on Our Energy Moment, visit their website www.OurEnergyMoment.com

SHALE OIL & GAS BUSINESS MAGAZINE

COVER STORY

PEMEX 20

SHALE OIL & GAS BUSINESS MAGAZINE

... COURAGE TO CHANGE BY: JIMMY PERKINS / PHOTOGRAPHY: JOSE LUIS PEREZ

SHALE OIL & GAS BUSINESS MAGAZINE

oo often the words “historic” or “revolutionary” are used to describe events that don’t merit such language. In the case of the Mexican Energy Reforms championed by President Enrique Peña Nieto, these words are accurate. The reforms are indeed historic and revolutionary, and are certainly of the utmost importance to the future of Mexico. Over the past nine years PEMEX has experienced a decline in production while operational costs at the state-owned oil company have increased and revenues have declined. The reality of this fact can no longer be ignored. The future of Mexico’s economy relies on the success of these reforms. Furthermore, thanks to advances in technology, North American energy independence is within reach if the Peña Nieto administration can achieve its goals (see “The New Middle East” by U.S. Rep. Henry Cuellar page 40). As Mexico’s closest ally, the United States is duty bound to support these monumental efforts, both in spirit and in action. A healthy Mexican economy is a great benefit to the United States. Moreover, a secure energy future resulting from the efforts of the energy industry in Canada, the United States and Mexico is a matter of national security. And for Mexico, the stakes are highest. To put it in context, PEMEX is the seventh largest oil producer in the world. It is also the third largest exporter of oil to the United States. It has over 13.4 billion barrels of proved oil reserves ranking it in the top 10. It has 17 trillion cubic feet of proved natural gas reserves. The potential of its shale reserves is immense. It generates approximately 32 percent of the Mexican government’s federal budget. The history of the Expropriation Law of the oil industry is closely identified with the rise of Mexican nationalism. As a result, the reform is understandably a very difficult change for many in Mexico, but it is a logical and necessary change nonetheless. President Peña Nieto has shown the kind of courage few politicians in any country ever dare. He has clearly attached his legacy to these reforms and a successful outcome will provide him a well-earned place in history. Failure is not an option. To fully appreciate the scope of the reforms, it is informative to look back to the events leading up to the Expropriation Law and the resulting creation of Petróleos Mexicanos, or PEMEX as it is known, in 1938.

THE PORFIRIATO The long presidency of General Porfirio Díaz was in reality a dictatorship. The Porfiriato,

SHALE OIL & GAS BUSINESS MAGAZINE

as the period is known, brought modernization and many advances to the young nation, which had gained independence from Spain in 1811 only to fall to the French in 1864. French rule was short-lived and ended when Mexican forces reinstated Benito Juárez as president three years later. Díaz was an excellent military leader and fought bravely in support of Juárez. Eventually Díaz himself became president in 1876 and ruled with an iron fist for 35 years. During the latter part of the Porfiriato, the oil industry began to flourish. Díaz overindulged the British and American oil companies, so by the time the dust settled on the revolution of 1910 and the new democracy began to show stability, the foreign oil companies had grown openly impertinent to the Mexican laws and officials. They operated as a state within a state, first out of necessity during the chaos of the Revolution, but then as a matter of custom and privilege. The Constitution of 1917 was the result of the revolution and it was a radical departure from the reign of Díaz. There were severe limits on private enterprise and foreign property owners. Specifically where the oil industry was concerned, Article 27 of the Constitution of 1917 returned the ownership of the subsoil to the nation. By this point the oil companies literally held in their hands the control of the flow of oil, and therefore the purse strings, after the revolution. If they did not like what was coming from an administration, they would slow production and damage the Mexican economy until more favorable results could be achieved. During these politically uncertain times the oil companies grew bold by this power and the nascent government of Mexico had no effective answer.

EXPROPRIATION In 1936, General Lázaro Cárdenas ascended to the presidency. He quickly issued an industry-wide collective bargaining agreement required under the Mexican Labor Code of 1931. The foreign oil companies rejected it, preferring instead to deal with a disorganized labor force. Then in 1937, a conflict between the oil companies and the Oil Workers Union escalated to a point that provided Cárdenas an opening and so he intervened. A commission was formed and a 2,700 page report was issued. The commission found that the foreign oil companies had manipulated their accounting to hide large profits and overinflated expenses to avoid payments to the workers and taxes to the government. The government under Cárdenas demanded payment in full along with other concessions designed to improve the lot of the workers, but the oil companies refused to comply. The industry as a whole, and Standard Oil in particular, mistakenly gambled that Cárdenas would relent. As a result the government cancelled Standard Oil’s concession that had been granted under Díaz in 1909.

Standard Oil steadfastly refused to pay and filed appeals seeking protection from the Supreme Court of Mexico. The crisis escalated and the reserves of the Bank of Mexico dwindled. The economic noose tightened but neither Cárdenas nor the oil companies would yield. It would have been helpful to the oil companies had they studied the history of Cárdenas. This was a man, after all, who had joined the revolution as a teenager and became a commissioned officer at the age of 16. By 32 he was already a major general, and his history clearly showed he was a man of fortitude and courage, who while at times reckless, never relented on the battlefield. While the economic stakes with the oil companies were incredibly high, there was nothing in Cárdenas’ past to indicate he would back down and he didn’t. Then on March 18, 1938, the oil companies agreed to make full financial reparations to the union and the government, but they refused to meet the additional demands of higher wages and social services. That same night Cárdenas announced to the nation the expropriation of the oil resources for the good of Mexico. Subsequently, he created PEMEX to operate the national petroleum industry. Cárdenas offered remuneration to the oil companies, but they rejected the deal as insufficient compensation. It wasn’t until 1942, with the cooperation of the U.S. government, that a settlement was reached, and by 1949 the compensation was paid in full.

PEMEX 1938 By 1930, Venezuela’s emergence coupled with the worldwide depression took its toll on the industry. By the early 1930s production was a mere 20 percent of its 1921 peak. It took a full 50 years to approach the peak oil production of 193 million barrels from 1921. Beginning soon after its creation in 1938 and through 1971, PEMEX produced a steady annual average increase of 6 percent. Extensive discoveries throughout the 1970s resulted in massive increases of output and by 1979 production was at an all time high of 511 million barrels. In 1976 President José López Portillo borrowed heavily on the international market using the oil reserves as collateral and allowed PEMEX to expand its operations. By 1982, these investments resulted in an annual production of 1.1 billion barrels. Through the 1980s and into the turn of the 21st century, as PEMEX expanded, so too did its bureaucracies and inefficiencies. Today with declining production in existing fields, outdated technology, increasing operational costs and falling revenues, Mexico’s oil monopoly is in need of great change. The potential for this historic change relies on the current energy reforms and the successful execution of restructuring by the new leadership of PEMEX.

THE NEW PEMEX The global economy, global politics and the inviolable bond between the United States and Mexico will certainly impact the future of these new reforms. However, it is in the heart of the beast where change is most required to ensure a successful outcome. To this great responsibility, Peña Nieto has entrusted Emilio Lozoya Austin as CEO to lead and restructure PEMEX. With equal confidence, Lozoya Austin has in turn entrusted the restructuring of PEMEX’s massive procurement apparatus to one of Mexico’s brightest minds. On Jan. 17 this year, Arturo F. Henríquez was nominated to become Chief Procurement Officer of PEMEX and was confirmed on Feb. 7. Henríquez embraces this moment in history fully prepared and with a thorough understanding of the complexities, historical significance and economic stakes at play. For him, this is not a job, a career move or an opportunity. He sees it is a distinct honor and an obligation with little room for error and no room for failure. Like Peña Nieto and Lozoya Austin, Henríquez recognizes that the future of his country relies on the collective efforts of everyone

at PEMEX. Change, especially revolutionary change, is never easy, and for some it will not be possible. Those who fall in the latter category will not be a part of this solution or a part of Mexico’s promising future. Henríquez was born and raised in Mexico City. The second oldest of six children, his parents placed the highest value on academic achievement. Henríquez’s father received his undergraduate degree from MIT and his masters from Harvard. The lesson his father instilled in all of his children was simple - academic achievement of the highest order was the key to personal and professional success. Following the path set forth by his father, Henríquez applied and was accepted to the prestigious Phillips Exeter Academy located in New Hampshire, 70 miles north of Boston. While at Exeter and in his junior year of high school, the day before his 17th birthday, his father passed unexpectedly and he returned home with the intention of staying to help his mother, suddenly widowed and with four young children still at home. Her answer was clear and definitive. “Your father treasured academics. Do not let this steer you away.” Upon graduation from high school, Hen-

ríquez attended Boston University and earned his degree in economics with a double minor in business administration and corporate psychology. He went to work for a financial firm in Seattle starting at the bottom and began working his way up the ladder. In his heart he was, and still is, an entrepreneur. Then in 1994, NAFTA opened up a world of possibilities for foreign investment in the financial sector and he moved home to Mexico City. Initially, he worked at Associates First Capital and then Bank of America and simultaneously embraced his entrepreneurial spirit by starting his own business, exporting Suave Patria Tequila and other goods. By his own admission, he was, “very inexperi-

To put it in context, PEMEX is the seventh largest oil producer in the world

SHALE OIL & GAS BUSINESS MAGAZINE

enced and naïve, but with good luck got through it.” This recognition that he was lacking certain skills spurred him to return to the academic world for more preparation. So he applied to six M.B.A programs. Although accepted to four of the six, Henríquez made his choice based on which program was most adept to teach what he wanted to learn and which was the best fit for him individually. So in 1997 he entered the prestigious Kellogg Graduate School of Management at Northwestern University in Evanston, Ill. near Chicago and graduated in 1999.

lie elsewhere and he followed the call. He cofounded and took a position as Chief Financial Officer for a technology-based logistics company, backed by a $10 million venture capital investment, and with its eyes set on expansion into Latin America. Henríquez guided the firm financially as it expanded into Chile, Brazil, Argentina, Colombia and Mexico. Then came the dotcom crash and he was able to successfully navigate the sale of assets to make the investors whole. Henríquez decided to return to school to

Change, especially revolutionary change, is never easy, and for some it will not be possible Upon graduation, Henríquez did a summer internship at Goldman Sachs and then went to work for Lehman Brothers. This period was his introduction to Wall Street and trading and the technology revolution was in full swing. Not yet 30 years old, he had in his hands a dream career on Wall Street, yet his passions

SHALE OIL & GAS BUSINESS MAGAZINE

further his education. He enrolled in Graduate School at his alma mater, Boston University, for two master’s degrees - one in international relations and the other in communications. Each program typically takes 2 and a half years to complete. He finished both degrees in a total of 18 months. More importantly, it

was during this time that he met his wife with whom he now has two children. In addition to his extensive formal education, his vast and diverse business career, time spent teaching at the undergraduate and graduate levels, and his busy family life, Henríquez pursues his passion for fútbol (soccer). Much more than just a casual fan, he plays weekly as a forward in an organized league and is as passionate about the sport as anyone can be. Following his graduate studies at Boston University, Henríquez moved back to Mexico City and went to work in investment banking leading the financial firm KPMG’s move into Mexico with great success. By 2006, he moved to the U.S. and invested in an oil and gas company that specialized in second and third recoveries of existing wells. He was ultimately named CFO and oversaw a complete restructuring of the company. When he took over, the company was laden with high salaries, benefits, 10 times debt to asset ratio and a three times expenses to cash flow ratio. He reorganized the company, paid off the debt, completed the operational restructuring then took the company public. In 2009 he left the company and pursued entrepreneurial ventures in real estate, hospitality and automotive among others. Then on Dec. 1, 2012, Peña Nieto took office as president of Mexico and he brought a list of structural reforms designed to “detonate its (Mexico’s) true economic potential.” One of these structural reforms is the energy reform that is currently underway. The same month he took office, the president appointed his trusted adviser Lozoya Austin as CEO of PEMEX. In 2013, Lozoya Austin appointed Henríquez the CEO of PEMEX Procurement International. PPI, as it is known, is a wholly-owned affiliate of PEMEX and purchases goods and services on behalf of PEMEX on the international market. In his election night victory speech, distancing himself from the PRI party of the past, President Peña Nieto proclaimed, “I am the PRI that’s coming.” Visiting with Henríquez in his Mexico City office, it is instantly clear that the new PRI has arrived and it is filled with young dynamic leaders such as Lozoya Austin and Henríquez, both of whom are committed to the necessity of change. The most critical job is that belonging to Lozoya Austin as CEO. His task is beyond monumental. Take control of a 76-yearold monopoly that provides nearly a third of the federal budget, affects 100 percent of Mexico’s people, has operated with the power of a sovereign state, is the engine that powers both political and social policy, is like managing a country, and modernize it and make it a, “productive entity of the state.” By the way, get to work immediately, you only have six years (four and half now since the clock is ticking), and you can’t fail because the entire country is depending on your efforts. To meet this goal, Lozoya Austin embarked on the, “Transformation and Modernization of PEMEX.” A critical

area and process is procurement, and Henríquez was appointed to restructure this vital aspect of the mission. Even if the financial footing of PEMEX was on solid ground, the lack of a unified procurement system would still limit productivity and potential. In fact, it is this very lack of procurement unification that feeds the inefficiencies of the old PEMEX. Henríquez describes the old system as a, “bureaucratic spider web,” in which, “the end users are not being exposed to the best technology or goods available.” It is decentralized with over 100 purchasing centers that are not aligned. How can a company with annual revenues of $125 billion compete in the 21st century using technology and equipment that is, in some cases, 40 years old? Yet this has been the norm at PEMEX, compliments of the bureaucracy and entrenched interests. There are four subsidiaries at PEMEX, with each being responsible for their own procurement of goods, services and contracts: Exploration and Production, Refining, Basic Petrochemical and Gas, and Petrochemical. Each subsidiary has its own leadership who enjoy autonomy and each one has its own departments such as finance, human resources, IT, etc. and none of them share the same processes. There are plenty of rules and even Laws of Acquisition that govern PEMEX, yet since each subsidiary is autonomous they are free to interpret the laws differently. With 3,000 employees at PEMEX involved in procurement dispersed throughout the subsidiaries, there is essentially no uniform governance, no common strategies or processes, and hence no under-served economy of scale, and limited aggregation of demand. The end result is a bureaucracy that is not amicable to suppliers, leaves the end users at PEMEX at a severe disadvantage, hinders innovation and fosters inefficiency, not to mention wasteful spending. Henríquez has been appointed to change this and his journey began in Jan. 2013 when he took over as president and CEO of PEMEX Procurement International. It was a strategic placement by Lozoya Austin to send Henríquez to PPI, no doubt in preparation for his appointment to his current position. Henríquez spent a year traveling to other countries and meeting with industry executives and consultants to learn the best practices on how to centralize purchasing most effectively. After a year of applying theory to practice and doubling PPI’s procurement activity and savings to PEMEX, Henríquez was nominated and approved to fill the role of Chief Procurement Officer at PEMEX. This newly created position makes him the first ever to hold this title and the mission is clear. Within Lozoya Austin’s macro restructuring of PEMEX, Henríquez is charged with restructuring the procurement function and centralizing all purchasing for PEMEX, to what is now an international best practice due to the vast benefits it brings to an organization. To put that in greater perspective, the annual budget for procurement is in the

$25 to $30 billion range for goods, services, public works, leases, etc. dispersed over the four subsidiaries and the corporation. Five months into his appointment, Henríquez is well into his mission to create economies of scale, common strategies, and standardization, but it doesn’t stop there. Beyond consolidating spending he is also creating common processes and standards to make PEMEX more agile in order to compete in the future. And vital to the entire restructuring, he is working to make the system more user friendly for suppliers that do business with PEMEX and eliminate not just waste, but also unnecessary requirements that do not serve the greater good.

THE BIG DOOR The PEMEX being created in his division will be as he states, “The big door to enter into business with PEMEX. We will be a conduit and enable our suppliers and providers to have easier access to our end users so that the end users have at their behest, the best reflection of all technologies to satisfy their operation needs.” He continues, “There will be no favoritism. We will be independent and transparent in our dealings, and we will create a robust program to measure and evaluate our partners. It will be a two way street.” Henríquez also emphasizes the nature of how he envisions the relationships with suppliers and providers. “There are three types of suppliers and providers. Key, preferred and transactional, with the goal of creating a mutually-beneficial relationship focused on value added. We want to develop these relationships so that transactional providers become preferred and preferred become key. Our commitment is to efficiency.” The key message from Henríquez is centralizing “strategy, procedures, commonality of function, standards of rules and human resources in order to develop our people into specialized and professional buyers” in his division. He also speaks to what specifically is changing. “A key component is category management for corporate and the subsidiaries. How and where do we spend? We will categorize these things and then strategically procure for maximum efficiency and savings. Our efforts will be in alignment, will be strengthened, and the savings to PEMEX will be vast.” This innovative strategy is the key that will lead PEMEX to a centralized and integrated supply chain under Henríquez’s leadership in procurement. The results will be a company with a standardized process that will encourage suppliers and providers to do business in Mexico with PEMEX. The strategic Pantonesourcing 186 C will literally result in billions of dollars of savings. While this is indeed an incredibly complex transition, this is not an unprecedented ac348 C have complishment. Other major Pantone oil companies successfully implemented such changes in

their recent pasts including ExxonMobil, Statoil and Royal Dutch Shell. PEMEX is poised to lead Mexico into a secure economic future and simultaneously help to achieve energy independence in North America. At this point it is only a matter of time, and a matter of duty, for the Mexican Congress to approve the secondary legislation put forth by Peña Nieto. Certainly the administration has to continue the push for the secondary legislation, effectively implement and enforce that legislation, and prove by its actions a strong commitment to eliminate corruption at PEMEX. For its part PEMEX must find its bearings in this new environment, define its new role and prepare itself for the coming competition. American companies should take notice of the reforms and the reality of what has already been accomplished at PEMEX in these first 18 months. Furthermore, as Henríquez astutely points out, “NAFTA has shown the way. The legal system, industrial sector, civil rights and more are all intact. Doing business in Mexico is proven to be successful for every other sector of our economy. The energy industry will finally be open after 76 years.” This historical reform and opening will be bigger than NAFTA. For the old guard at PEMEX, it is necessary to adapt. As Henríquez told a mutual friend in Mexico City, “You did not choose this history, but you are here. What will you do now?” And to the most important constituency, the citizens of Mexico, they should not fear this future, but they should fear inaction. If anything, this should be a moment of national pride similar to that of 1938. The words of Cárdenas from his speech on March 18, 1938 ring true today. “It is necessary that all groups of the population be imbued with a full optimism and that each citizen, whether in agricultural, industrial, commercial, transportation, or other pursuits, develop a greater activity from this moment on, in order to create new resources which will reveal that the spirit of our people is capable of saving the nation’s economy by the efforts of its own citizens.” To that end, the leadership of this great nation has put into place the right people for this history to be written. Henríquez is just one of the many intelligent, passionate and distinguished leaders who, together, with the guidance of their CEO, Lozoya Austin, will ably guide the new PEMEX and Mexico into the future. For more information, visit www.PEMEX.com, www.PEMEXprocurement.com

SHALE OIL & GAS BUSINESS MAGAZINE

Pantone 430 C

SHALE OIL & GAS BUSINESS MAGAZINE

INDUST RY

2014 EAGLE FORD EXCELLENCE AWARDS PRESENTED BY STEER Now Open for Entries

BY: OMAR GARCIA

IN ITS SECOND YEAR, THE 2014 EAGLE FORD EXCELLENCE AWARDS, presented by the South Texas Energy & Economic Roundtable (STEER), is seeking entries for this year’s awards event. This annual event provides oil and gas companies, their contractors and organizations an opportunity to be acknowledged for their efforts in preserving the environment, contributing to the communities in which they work and promoting safety in and around the workplace. STEER and its founding members – Anadarko, BHP, Chesapeake Energy, ConocoPhillips, Devon Energy, EOG Resources, EP Energy, Lewis Energy Group, Marathon Oil, Murphy Oil Corporation, Pioneer Natural Resources Company, Shell Oil Company, Statoil and Talisman Energy – are committed to working with South Texas leaders to identify and share solutions to support and enhance the vitality of the communities in the region. STEER stands by its commitment to protect and preserve the health of the environment, communities and individuals in South Texas. The Eagle Ford Excellence Award recipients will be recognized as a leading organization throughout the oil and gas industry as well as the entire Eagle Ford Shale region. These organizations set the standard in being good corpo-

rate citizens, and STEER is honored to provide a forum to recognize companies who make it their priority. Organizations and companies are invited to submit their entries in one or more of the four award categories. This year’s categories include Environmental Stewardship, Safety Performance, Community Social Investment and STEER Impact Award. Each category will have two award recipients based on the number of employees (those with less than 250 employees and those with more than 250 employees). Companies, contractors and organizations working with the oil and gas industry in the Eagle Ford Shale region are encouraged to enter. The award entries must be submitted before the entry deadline of Friday, September 12, 2014. Full category descriptions, award

STEER STANDS BY ITS COMMITMENT TO PROTECT AND PRESERVE THE HEALTH OF THE ENVIRONMENT, COMMUNITIES AND INDIVIDUALS IN SOUTH TEXAS 28

SHALE OIL & GAS BUSINESS MAGAZINE

criteria and award entry applications can be found at www.steer.com. The judges will cast their votes, and the winners will be announced at the 2014 Eagle Ford Excellence Awards luncheon to be held in San Antonio, Texas, on November 6. Last year’s Eagle Ford Excellence Award ceremony was held on November 21, 2013 in San Antonio. The inaugural event was attended by more than 200 people and honored those who make it their mission to protect the people and environment within the Eagle Ford Shale region. Recipients of the inaugural 2013 Eagle Ford Excellence Awards: Community and Social Investment category: For companies or organizations with less than 250 employees: Energy Waste For companies or organizations with more than 250 employees: Halliburton Safety Performance category: For companies or organizations with less than 250 employees: Primera Energy For companies or organizations with more than 250 employees: Dynamic Industries Environmental Stewardship category: For companies or organizations with less than 250 employees: Caesar Kleberg Wildlife Research Institute at Texas A&M University - Kingsville For companies or organizations with more than 250 employees: HOLT CAT For more information about STEER, visit www.steer.com

SHALE OIL & GAS BUSINESS MAGAZINE

INDUST RY

SHALE PLAY BY: SCOTT COURTNEY, PG

WELCOME BACK TO SHALE PLAY! It’s hot and getting hotter in South and West Texas and we’re not talking about the weather. Hot summers always have and always will be the norm in Texas. What is becoming the new normal is how hot both the Eagle Ford and Permian Basin plays are becoming. So hot they are becoming rivals for bragging rights in the great state of Texas. Texas has always maintained bragging rights for biggest, strongest, fastest, prettiest, etc. The current debate raging on is, ‘which play has bragging rights for the best oilfield in Texas?’ Eagle Ford vs. Permian Basin? Shale Play is going to break it down for you, a tale of the tape if you will. We’re probably not going to settle any arguments, as is often the case with bragging rights, but we hope to put things in perspective and provide both plays the opportunity to make their case as the best play in Texas! Let’s play! West Texas is known for big oil fields and great high school football. South Texas is known for big ranches and great white-tailed deer hunting. West Texas is dry and windy. South Texas is humid and brushy. It stands to reason the oil fields, underlying each region, are just as different while offering the same promise of riches. Plays can be judged in many ways. Geographic area, number of formations, pay zone

areas have there own intrinsic beauty, which is another way of saying they can be pretty rough places to live at times. Yes, much of the beauty in South and West Texas is found below the surface in two of the sweetest oil and gas plays in the world! In Texas it always starts with size! The Permian Basin includes 59 counties and covers a large part of West Texas and Southeastern New Mexico. The Permian Basin is over 250 miles wide and 300 miles long. There are actually several basins located within the Permian Basin with the Delaware Basin and the Midland Basin separated by a north-south trending central platform. The Eagle Ford is 400 miles long and 50 to 100 miles wide (in the United States) but extends far into the Burgos Basin of Mexico (unproven but great potential). Over 25 counties currently have Eagle Ford oil and gas production. In shear size magnitude, the Permian Basin gets the edge. There are multiple groups of formations and zones within formations producing oil and gas in the Permian Basin including the Bone Springs (Zones 1, 2 and 3), Wolfcamp (Zones A, B and C), Cline, Sprayberry, and variations of the each such as the Wolfberry and Wolfbone. The production from the Eagle Ford play is derived

of crude oil and liquids per day while the Permian Basin is predicted to produce over 1.5 million barrels per day, by the time this article is printed. Bear in mind, the Permian Basin has been a conventional producer for the majority of its production history. Production had dropped to less than 1 million barrels per day in 2007. The increase in production, due to unconventional drilling and completion techniques, has only increased production by approximately 750,000 barrels per day from all those pay zones! With Eagle Ford production coming almost 100 percent from unconventional drilling and completion techniques, while producing almost two times the amount of oil per day from one little pay zone, has South Texans shouting, “score board!” Throw in the Eagle Ford Natural Gas production of 7 bcf (billion cubic feet) per day to the Permian Basin 5.5 bcf, and it’s like saying our cheerleaders are prettier too! The Permian Basin will go down in history as one of the most prolific producing areas on the planet. Eagle Ford can boast it is one of the most prolific single formations on the planet. When all is said and done who wins? We Texans are the true winners! We are blessed to have these two huge economic generators fueling our economy and providing energy security to

THE CURRENT DEBATE RAGING ON IS, ÔWHICH PLAY HAS BRAGGING RIGHTS FOR THE BEST OIL FIELD IN TEXAS?Õ thickness, rig count and total production are some of the primary parameters used to compare and contrast plays. Economic output, jobs, capital investment and reserve estimates are all good metrics as well, but are more subjective and require a more nuanced approach to the argument. We’ll stick to the basics for our compare and contrast exercise. The Permian Basin play is as old as the hills while the Eagle Ford play is as young as blue bonnets in the spring. The Permian Basin has been producing oil and gas since 1921, and has been given up for dead on multiple occasions. The Eagle Ford has only been producing significant quantities of oil and gas since 2010, but has befuddled drillers for decades prior to that. What an interesting contrast, old vs. new, given up for dead vs. never will pan out, but they are now the top two plays in the nation competing for resources, capital investment, production records, and yes, bragging rights! The Permian Basin is located in West Texas. The Eagle Ford is located in South Texas. Both

SHALE OIL & GAS BUSINESS MAGAZINE

entirely from the Eagle Ford formation. With multiple pay zones, the Permian Basin again gets the edge. When evaluating the thickness of the pay zone things get really interesting. With it’s multiple pay zones, the Permian Basin can boast up to 3,500 feet of pay zone! At best the Eagle Ford can only promise 250 feet of pay zone. Permian Basin hands down! Rig count is another excellent indicator of a play’s strength. Baker Hughes has tracked the rig count for many decades and has become the industry standard. According to Baker Hughes the rig count in June for the Permian Basin is 550 while the Eagle Ford Weighs in at 268 rigs running. No arguments here, Permian Basin activity is enormous. All the bragging rights above are well and good but you can’t take any of that to the bank! Some say production is all that matters and production is what both plays are all about. The U.S. Energy Information Agency predicts the Eagle Ford will produce over 1.4 million barrels

the United States of America! The combined effect of the Permian Basin and Eagle Ford with respect to creating jobs, economic growth, and personal wealth is staggering. With the rest of the economy still lagging, rest assured the recovery is fueled right here in Texas and it is the oil and gas industry carrying the rest of the nation on it’s back! That’s it for Shale Play today! We hope you enjoy this article and that you find it informative as well as entertaining. Keep us informed, so we can keep you informed, and together we will work toward the success of the Shale Plays! #ShalePlay

For more information, email scott@shalemag. com. Keep playing!

We’re a different kind of energy company. At Reliant, we don’t just care about how energy is made. We also care about how it’s used and how we can manage it better. As an NRG company, we’re part of an organization at the forefront of changing how people think about and use energy. Whether we’re serving 2.2 million retail electricity customers or leading the nation in smart energy, it’s easy to see we’re a different kind of energy company. Comprehensive energy solutions for South Texas: Site Power Generation Solutions

Turbine and Compressor Maintenance

Cogeneration Facilities

Competitive Electricity Rates and Products

Want to learn more? Develop something new? Let’s talk. reliant.com | 1.800.713.3191

Reliant is a registered servicemark of Reliant Energy Retail Holdings, LLC, a wholly owned subsidiary of NRG Energy, Inc. The plus signs and plus clusters are servicemarks of NRG Energy, Inc. © 2014 NRG Energy, Inc. All rights reserved. SHALE OIL & GAS BUSINESS MAGAZINE

INDUS T RY

MEXICO’S ENERGY REFORM Opportunities for the Energy Industry

BY: ROBERT J. DOWNING

WHY THE CHANGE? In less than six months, Mexico’s energy industry will be changed forever. To understand the resulting business opportunities, business needs to know why this happened. Mexico’s energy sector is often regarded as one of the most closed systems in the world. Declining oil production since 2004, doubling natural gas imports from the U.S. since 2009, outdated electric infrastructure and formidable manufacturing competition from Asia spurred Mexican officials to reconsider Mexico’s 75-year-old restrictions on foreign investment and participation. Prior energy reforms, including in 2008, didn’t go far enough to incentivize

an ambitious timetable, on April 30, 2014, President Peña Nieto presented a package of secondary laws that would implement the dramatic changes envisioned in the constitutional amendments. Passage of those secondary laws is expected in June or July of this year. Once passed, government agencies must publish regulations, setting forth the procedures consistent with the new and revised laws. Publication of the regulations is anticipated by year end. WHY WAIT? Because the laws and regulations have not been finalized, some observers have taken a wait-and-see approach. Other companies have elected not to wait. Instead, they are moving

ESTIMATES VARY BUT AS PART OF THE ENERGY REFORM, A MASSIVE BUILD OUT OF PIPELINES IS ALREADY UNDERWAY foreign direct investment. Mexico looked to the U.S.’s shale gas revolution to meet its growing demand for natural gas. President Enrique Peña Nieto acknowledges that to compete, “la apertura” (the opening) is essential. WHAT’S CHANGED? On December 20, 2013, Mexico published constitutional amendments designed to significantly open up Mexico’s energy industry to foreigners. The amendments became effective the next day. The amendments changed the paradigm not only for the oil and gas sector but also the power (electricity) sector. Adhering to

SHALE OIL & GAS BUSINESS MAGAZINE

forward now, studying the initiatives, developing alliances and determining where the opportunities lie. While the range of possibilities is broad, there are three categories that present themselves as good prospects for the energy industry. SUPPLY CHAIN As Mexico transforms its energy industry, one of the first opportunities will be across the supply chain of equipment, parts, goods and services. Under the existing regime, suppliers have generally looked to one customer—PEMEX, for oil and gas and another customer, CFE, for electricity. With the E&P sector opening up, PEMEX faces

competition. There will be new competitors, new customers. And the sector itself faces tremendous growth, creating numerous opportunities for suppliers. Under “Round Zero,” PEMEX requested that it be allowed to keep most of its shallow water plays but in large part conceded that the government can make available to competitors unconventional resources and deep water assets. PEMEX lacks the technology and experience to exploit it’s shale gas and oil. That creates opportunities for strategic alliances, joint ventures, and “partnering” in general. There has been little development of shale assets along the border and along the Gulf Coast, the primary areas where these resources are located. How extensive are these resources? Estimates are that Mexico has around 555 tcf of shale gas, the sixth largest resources in the world. If you want insights into what supply chain needs will be to develop Mexico’s unconventional resources, think of what was essential to develop the Bakken, the Eagle Ford and the Marcellus. And it won’t be just oil and gas services and equipment. Housing needs, water supplies, technological expertise, know-how and environmental services will be at the forefront. And as noted below, PEMEX isn’t going away. With additional foreign investment, PEMEX plans to compete, forming alliances and gaining technology along the way. It is already revamping its procurement department in anticipation of increased competition. The new legal and regulatory framework impacts the remaining activities of the oil and gas

BE RESOURCEFUL MEXICO LOOKED TO THE U.S.ÕS SHALE GAS REVOLUTION TO MEET ITS GROWING DEMAND FOR NATURAL GAS value chain too. These are no longer reserved exclusively to the Mexican State. Participation of private companies is allowed. Such activities include treating and refining oil, processing natural gas, exporting and importing hydrocarbons, LP gas, refined products and petrochemicals, as well as transporting and storage unrelated to LP gas, and the distribution and sale to the public of LP gas. With all the focus on the oil and gas sector, the dramatic changes in the electricity sector are often overlooked. They shouldn’t be, in part, because they are important in their own right and, in part, because they directly impact the natural gas sector. A conscious shift to combined-cycle, gas-fired generation plants present a significant opportunity. Electricity prices are subsidized and expensive for industry. Part of the reform is to bring in new competition and drive down the prices in the electricity sector to make Mexico’s manufacturing industry more competitive. Until now, CFE has dominated electricity generation. Aside from self-supply and cogeneration plants, plus some independent power producers, CFE controls all sectors of the market. That changes with the energy reform. Generation and commercialization (“marketing” of power) is opened up to foreign competition. Direct competition is permitted. As with oil and gas, suppliers will have new customers and an expanding industry. And as with PEMEX, CFE plans to compete under the new regime. And as with PEMEX, that also creates opportunities for those companies that can join with CFE. Mexico plans to move away from heavy fuel oil as a feedstock. And it’s not looking to coal or nuclear. That opens up opportunities in the renewables sector as well, as Mexico has mandated that a significant portion of its generation come from wind, solar, hydro and biofuel sources by 2025. INFRASTRUCTURE Supply chain opportunities are linked directly to infrastructure needs. Estimates vary but as part of the energy reform, a massive build out of pipelines is already underway. Some predict that at least $34 billion in pipeline infrastructure is needed over the next six years just to avoid cross-border and internal bottlenecks, as Mexico becomes increasingly reliant on natural gas. Many of these infrastructure projects will be open to competitive bidding. The pipeline expansion is dwarfed by the infrastructure requirements to exploit Mexico’s deep water and unconventional resources. In the case of shale oil and gas, Mexico is essentially starting from scratch. It will need direct foreign investment to move forward. The same holds

true in the electricity sector. Even though the government, through CFE, retains “control” of the transmission and distribution systems, the new laws allow for flexibility and creativity in how to finance, install, maintain and operate the much needed expansion and renovation of the transmission lines and distribution lines serving the country. The regulations will detail how this foreign participation can occur. Nearly 50 percent of Mexico’s transmission lines are over 20 years old. Less than 10 percent have been built in the last eight years. Approximately 55 GW’s of generation capacity are needed over the next few years. That’s more or less equivalent to the total generating capacity of the largest U.S. electric utility. FINANCING, PRIVATE EQUITY With all these opportunities to supply and build out the energy industry, it makes sense to ask, who’s going to pay for all this? Given the sheer size of the planned investment, the third category of opportunity is clearly for the financial sector— commercial and investment banks, private equity concerns and perhaps, individual investors. Project financing for some of the larger infrastructure projects is essential. Of course, some of the E&P projects will be self-funded (by the majors, among others) through the traditional combination of project financing, debt and equity. But in the case of unconventionals, participants may turn to the private equity markets to fund their forays into Mexico. Several Asian funds have expressed an interest in exploring (and supporting) Mexico’s energy expansion. U.S. private equity firms are also looking for opportunities. Shale gas participants are looking for strategic investors, that is, Mexican and other companies that bring not only funding but industry and local knowledge to the table. Without financing and funding, Mexico will not be able to realize its grand plan to open up the energy industry. Fortunately, it appears that the finance sector is keenly aware of the opportunities that abound. That should bode well for others that want to gain entry to this historic change in Mexico’s energy industry.

Fueling Texas Shale Plays

Oilfield Transportation Services

Now Hiring Drivers! Apply Online

FMI: Robert J. Downing is a shareholder at Greenberg Traurig, an international law firm with offices in Houston, Mexico City, Miami, and 33 other locations. www.gtlaw.com. He has 30 years experience in international business transactions, with particular emphasis on mergers and acquisitions, finance, corporate/tax structuring, privatizations and project development in Latin America and the Middle East. He can be reached at downingr@gtlaw.com

www.suncoastresources.com shale@suncoastresources.com 800-677-FUEL (3835) * 3604 SHALE OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE

FIRE CAN DEVISTATE A FRACKING OPERATION

TRANSFORM YOUR EQUIPMENT INTO AN INDEPENDANT FIRE TRUCK with the installation of a TRI-MAX FRAC EFCS system. 30 gallons of pre-mix solution expands to approximately 500 gallons of finished foam, giving you superior fire fighting capabilities.

TRI-MAX FRAC EFCS at rear of the truck. Operator is at a safe distance from fire and heat. The External Fire Hose is located here.

The CAF system foam deluge nozzles create a cool zone and extinguishes fire.

The TRI-MAX FRAC EFCS quickly isolates the fire, creating a barrier from other trucks and preventing further loss.

Proximity of trucks leads to extensive damage as fire quickly spreads. The quickest and most economical way that this sequence can be stopped is by the addition of the TRI-MAX FRAC Engine Fire Control System (EFCS) that can fight, suppress and extinguish fire within the first crucial moments. TRI-MAX FRAC EFCS gives operators the power to stop the initial fire and prevent the fire from spreading with FOAM DELUGE NOZZLES and a 100FT EXTERNAL FIRE HOSE. The foam barrier deployed by the adjacent trucks stops the fire from spreading laterally. Trucks outside of the fire barrier may also pull their fire hose attack lines and attack the fire quickly suppressing any fire that remains. The TRI-MAX FRAC EFCS, and its ability to quickly extinguish a fire, may be the only thing standing between your FRAC site and total destruction caused by fire. External fire hose deployed.

TriMax Foam Agents are totally green, non-corrosive and donâ&#x20AC;&#x2122;t require any clean up.

CONTACT KINGSWAY INDUSTRIES, INC. CALL 1-888-774-6299

SHALE OIL & GAS BUSINESS MAGAZINE

PO LICY

LESSONS LEARNED IN SOUTH TEXAS CAN BENEFIT MEXICO BY: COMMISSIONER DAVID PORTER

SHALE OIL & GAS BUSINESS MAGAZINE

In 2013, I published a report of our findings to present to the Texas Legislature. The Eagle Ford Shale Task Force Report was one of the first comprehensive works written about an oil and gas shale play, and it devoted chapters to eight specific issues that were most relevant as production began to rapidly increase in the region. One challenge that stood out in particular was infrastructure. And if Texas, which is home to almost 375,000 miles of pipeline, has faced and continues to face this challenge, Mexico most certainly will. Mexico’s pipelines and roads are not as developed as those in our state. But their presence is crucial for the production process because it enables the shipment of equipment and materials to and from a well site and ensures proper processing and shipment of oil and gas from well sites. Also, there will likely be a workforce shortage. Suitably skilled experts, such as engineers and geologists, are in high demand, not

just in Mexico and Texas, but in every other area experiencing shale development. Finally, and most importantly, fair and stable regulations are essential for energy development. Whether this happens easily and quickly, or more slowly and strenuously, the proper framework must be in place in Mexico if stakeholders on either side of the border hope to benefit from the Mexican portion of the Eagle Ford. Railroad Commission staff plans to host several regulators from Mexico later this summer to share their knowledge and expertise about regulating unconventional resource plays, and we look forward to continuing cooperation with our neighbors in Mexico as they make way for the competition and innovation needed in the energy sector to advance the economic vitality of their nation. FMI: Visit http://www.rrc.state.tx.us for more information.

PHOTO BY MICHAEL GIORDANO

lmost half of all drilling rigs in the world are in the United States, and thanks to the Eagle Ford Shale and its West Texas neighbor, the Permian Basin, about half of the rigs in our nation are here in Texas. This means that nearly a quarter of the rigs in the world are located right here, in Texas. This statistic has been particularly striking to Mexico’s energy officials, who I’ve met with this year. We’ve known for some time that the Eagle Ford Shale formation in South Texas does not end at the Rio Grande River– but production does– and this is primarily because the proper legal and regulatory framework has not been in place to allow competition and innovation in Mexico’s oil and gas sector. Although, this is subject to change now that the country has passed a constitutional amendment that opens the oil and gas sector to private participation for the first time in nearly 75 years. I traveled to Mexico City in February to discuss energy policy with the country’s energy officials and engage in productive discussions about the opportunities and challenges associated with unconventional resource plays. I was able to share my experience and the experience of the Railroad Commission in regulating a rapidly developing oil and gas industry. Over the past six years, the production of oil, gas and petroleum liquids in the Eagle Ford Shale has accelerated at a record pace. Correspondingly, the volume of drilling permits issued by the Commission surged to previously unseen levels in a relatively short period of time. The play’s potential was modest at first. Only 26 permits were issued in 2008, and only 94 were issued in 2009. By 2012, we processed more than 4,000 drilling permits with no signs of slowing down. Last year the Commission issued over 4,400 permits, and over 2,000 permits have been processed so far this year. Obviously, the increase in Eagle Ford Shale drilling and production has been the source of remarkable economic benefits. The University of Texas at San Antonio found that, in 2012 alone, the play had more than a $60 billion impact on the local South Texas economy and supported more than 116,000 jobs in the area. However, it’s important to note that rapid shale development can bring its own unique sets of challenges and requirements. Texas experienced a number of challenges during the development of the Barnett Shale in the last decade. This awareness prompted me to create my Eagle Ford Shale Task Force after I took office in 2011. I believed that many of the issues that arose during the development of the Barnett Shale could have been alleviated if local communities and other involved parties had a forum for open and constructive dialogue.

WE KNOW

THE DRILL TARGETING THE SWEET SPOTS OF THE EAGLE FORD SHALE Primera Energy is a bonded Texas operator with unique access to promising Eagle Ford Shale prospects.

210.545.9600

WWW.PRIMERAENERGYLLC.COM

21022 GATHERING OAK, SAN ANTONIO, TEXAS 78260 • F: 210.545.9600 • PRIMERAENERGYLLC@GMAIL.COM SHALE OIL & GAS BUSINESS MAGAZINE

PO LICY

WITH SENATOR JUDITH ZAFFIRINI BY: SHANA HAMID

HOW WOULD YOU DESCRIBE HOW THE BOOM OF THE EAGLE FORD HAS INFLUENCED THE LIVELIHOOD OF TEXANS THROUGHOUT THE REGION AND IN OUR MAJOR CITIES? HOW DOES IT IMPACT ECONOMIC, EDUCATION, AND HEALTHCARE OPPORTUNITIES?

The Eagle Ford Shale is synonymous with optimism in our Senate district, which includes the majority of production, the majority of rigs and the highest-producing counties. A potentially transformative event, the boom challenges our communities to plan for an economically sustainable future. Their doing so would enable our young adults to come home after graduation, instead of having to move elsewhere to find good-paying jobs. This truly is remarkable. These new opportunities are available because oil and gas exploration in the shale is having a tremendous impact on the regional economy, including by creating thousands of jobs. What’s more, the multiplier effect

DEVELOPMENT OF THE SHALE ALSO HAS BROUGHT NEW CHALLENGES AND NEW AREAS FOR COLLABORATION AND PARTNERSHIP from this activity impacts local economies by enhancing sales in housing, supplies, food and entertainment. For every petroleum-related job created in Texas, 14 additional jobs are created. Tax revenue generated because of shale development has improved the state’s financial situation significantly. This windfall benefits all Texans because it has allowed legislators to restore funding to critical education, health and human services. What’s more, improved property valuations are benefitting our counties, cities and school districts, and increased business activity is bringing additional sales tax revenue to our communities. Development of the shale also has brought new challenges and new areas for collaboration and partnership.

SHALE OIL & GAS BUSINESS MAGAZINE

In the health care arena, for example, the Eagle Ford Consortium is partnering with Methodist Healthcare Ministries to address the increasing health care needs in the region. While hospital districts are benefitting from increased tax revenue, health care providers are coping with increased demand and a rising number of emergency room visits. Accordingly, we need to continue to enhance the number of primary care providers, expand access to health care and improve EMS response times. Industry leaders know the importance of partnering in this effort because a healthy workforce is key to productivity. Exciting partnerships are developing in the education arena, too. In my district, for example, United Independent School District has partnered with industry leaders and Laredo Community College to create a first-of-itskind oil and gas curriculum for high school students. Our regional higher education institutions also are playing a major role in providing training for workers, conducting important research and promoting public awareness of shale-related issues. The Eagle Ford Center for Research, Education and Outreach (EFCREO) at Texas A&M University-Kingsville, for example, collaborated with local officials and industry to raise awareness of pipeline safety, which is a growing concern as hundreds of miles of new pipeline are built. Texas A&M International University in Laredo has hosted several Eagle Ford Shale stakeholder summits, and the Institute for Economic Development at The University of Texas-San Antonio has generated important data about the shale’s economic impact. Our community colleges, meanwhile, are developing oil and gas-related programs and curricula that are helping shale employers meet their workforce needs. Development of the Eagle Ford Shale has the potential to benefit everyone in our region, but with increased prosperity comes increased cost of living. Accordingly, we must work collaboratively to protect persons on fixed incomes who are impacted by increases in the cost of food and housing.

WHAT TYPES OF INDIRECT JOBS AND INDUSTRIES HAVE EMERGED IN YOUR DISTRICT THAT ARE A BYPRODUCT OF THE EFS BOOM? The Eagle Ford Shale has been a boom not only for the oil and gas industry, but also for employers and job seekers in countless other arenas related indirectly to development in the shale. These include jobs in engineering and construction, architecture and engineering, hospitality and food services, maintenance and repair, transportation, law, business and finance and social services, just to name a few. Because oil and gas exploration is a dynamic industry, new businesses will meet changing needs, and countless people will be impacted significantly by our newfound natural gas reserves. Especially exciting is the potential for growth in industries that offer environmental as well as economic benefits, including natural gas-powered vehicle fleets and businesses that help recycle and conserve our limited water resources.

HOW HAS THE SHALE’S DEVELOPMENT INFLUENCED THE STATE’S ROLE IN JOB CREATION AND AS A LEADING ENERGY PROVIDER?

Texas is the nation’s leading crude oil producer, and increased production in the Eagle Ford Shale is helping the U.S. displace Saudi Arabia as the world’s top oil producer. What’s more, Texas also is the nation’s leading natural gas producing state, responsible for 30 percent of the country’s natural gas output. Because the Eagle Ford Shale boom could extend at least another 10-15 years, these new domestic reserves will help stabilize natural gas markets, reduce dependence on foreign oil and ensure Texas plays a major role in meeting our nation’s energy needs.

THIS WINDFALL BENEFITS ALL TEXANS BECAUSE IT HAS ALLOWED LEGISLATORS TO RESTORE FUNDING TO CRITICAL EDUCATION, HEALTH AND HUMAN SERVICES When it comes to job creation, Texas consistently has outperformed the national economy, creating 49 percent of all new jobs nationwide between July 2009 and June 2011. Many of these jobs are directly related to the oil and gas industry, and others are indirectly related, including those in construction and transportation. For example, my district includes part of the Port of Corpus Christi, where more than $3.8 billion in projects are under construction and another $12 billion are in the permitting phase.

WHAT WILL BE THE EFFECT OF THE EAGLE FORD SHALE’S INFLUENCE ON FUTURE LEGISLATION?

Because of the Eagle Ford Shale’s significant positive impact on our state’s budget, it is likely that there will continue to be strong interest in legislative issues relevant to the shale, including STEM education and improved infrastructure investment. As the state senator for Senate District 21 and a member of the Senate Finance Committee, I prioritize ensuring that revenue generated by the oil and gas boom is reinvested in our Eagle Ford communities and in the infrastructure that is so critical to our continued economic prosperity. In 2013, we secured $450 million for shale-impacted county and state roadways, but this funding is nowhere near enough to meet the tremendous need. What’s more, during the 83rd Texas Legislative Session, I authored a legislative package regarding a wide variety of issues related to the Eagle Ford Shale, including securing funding for transportation projects; ensuring that counties can maximize hotel-motel tax funding; creating a South Texas Natural Gas Triangle and promoting the use of cleaner, more environmentally-friendly vehicles fueled by Texas natural gas; funding rural hospitals and clinics that have been overwhelmed by new patients; and protecting landowners’ private property rights. These issues continue to be timely, and they will continue to be priorities during the legislative session that convenes on Jan. 13. An organizer of the Eagle Ford Shale Legislative Caucus, Senator Judith Zaffirini represents Texas’ 21st Senatorial District that stretches from the Rio Grande to the Colorado River and to the Port of Corpus Christi and the Valley. The first Hispanic woman elected to the Texas Senate, she is the second highest-ranking senator and the highest-ranking woman and Hispanic senator. She is currently serving her eighth term. More information is available via www.zaffirini. senate.state.tx.us. SHALE OIL & GAS BUSINESS MAGAZINE

PO LICY

MEXICO’S ENERGY FRAMEWORK

The energy reform is a welcome change of paradigm, not only for the energy sector but also for the Mexican economy. It is one of the most important and relevant pieces of legislation to be passed in the last 75 years. BY: JUAN CARLOS LUNA WHAT HAS HAPPENED? DECEMBER 2013 Congress approved a Constitutional Reform to Articles 25, 27 and 28, eliminating a restrictive legal framework that limited private investment and participation in the country’s energy industry, setting the stage for further legislation. APRIL 2014 The executive branch introduced to the Mexican Congress nine bills (implementing legislation), proposing the creation of eight new laws and amending 13 others. These bills are currently being discussed in Congress, and it is expected that they will be approved by the end of June. The reforms allow domestic and foreign private investors to participate in activities like refining, transportation, storage and distribution of oil, natural gas, fuels and other oil products. Most importantly, the private sector will be allowed to participate in exploration and production of oil and gas – on behalf of the Mexican state – through different contractual frameworks, such as licenses, service contracts, profit-sharing, and production-sharing

- Encourage transparency - Focus on the long term sustainability One of the most relevant aspects of this new framework is the creation and reorganization of strategic public sector entities that will form the bureaucratic structure in which such new realities will need to operate. As shown below, a new regulatory framework will divide oversight of the oil and gas sector among a host of entities:

THE REFORMS ALLOW DOMESTIC AND FOREIGN PRIVATE INVESTORS TO PARTICIPATE IN ACTIVITIES LIKE REFINING, TRANSPORTATION, STORAGE AND DISTRIBUTION OF OIL, NATURAL GAS, FUELS AND OTHER OIL PRODUCTS agreements. Awards will be made through open and transparent bidding processes. The reforms also permit private sector participation in the electricity sector. The Constitutional reform and the proposed implementing legislation seek in general terms to: - Create competitive investment opportunities - Fortify and provide autonomy to PEMEX and CFE (Federal Electricity Commission), and to the regulators CNH and CRE - Build conditions to develop a strong local industry - Define competitive fiscal terms

SHALE OIL & GAS BUSINESS MAGAZINE

MINISTRY OF ENERGY (SECRETARÍA DE ENERGÍASENER) This agency remains in charge of the sector and will continue to set overall energy policy for the country. It has the new responsibility of determining the areas that can be subject to exploration and production and will assign PEMEX contracts in the ‘Round Zero’ stage, which allows the company a one-time pick of what it will keep of its existing inventory (such determinations will be made in September). It will develop energy policy, select the geographic areas for upstream contracts, establish the technical and financial prerequisites for bidding,

and define the type of contract awarded (services, licenses, production-sharing, profit-sharing, or a combination of the aforementioned). NATIONAL HYDROCARBON COMMISSION (COMISIÓN NACIONAL DE HIDROCARBUROS - CNH) The CNH is strengthened and given an enhanced role under the reform. It will be the key player in Mexico’s oil and gas industry. CNH will oversee regulation of upstream activities and will oversee the bidding process and awards to both private companies and Pemex. It will carry out public tenders according to the terms established by SENER and the Ministry of Finance (SHCP). It will authorize recognition and surface exploration works, and will maintain and carry out seismic and geological studies. ENERGY REGULATORY COMMISSION (COMISIÓN REGULADORA DE ENERGIA – CRE) This commission is also strengthened and made autonomous under the reform, will focus on mid- and downstream activities. MINISTRY OF FINANCE AND PUBLIC CREDIT (SECRETARÍA DE HACIENDA Y CRÉDITO PÚBLICO-SHCP) This ministry will establish the fiscal terms applicable to each contract type, such as the relevant royalty rates, tax levels and other aspects, and will design the parameters of a new oil sovereign wealth fund - the Mexican Petroleum Fund for Stabilization and Development (Fondo Mexicano del Petróleo para la Estabilización y el Desarrollo), which will then be overseen by Mexico’s Central Bank. NATIONAL AGENCY FOR INDUSTRIAL SAFETY AND ENVIRONMENTAL PROTECTION This agency will be created as a decentralized body of the Ministry of Environment and Natural Resources, and will regulate and supervise operational safety and environmental protection. NATIONAL CENTER FOR NATURAL GAS CONTROL (CENEGAS) CENEGAS will be created to operate the national transport pipelines and storage system (natural gas). NATIONAL CENTER FOR ENERGY CONTROL (CENACE) CENACE will be created to operate the national electric network. MEXICAN PETROLEUM FUND FOR STABILIZATION AND DEVELOPMENT This fund will manage and distribute the national oil income proceeding from assignments and contracts, such as duties and royalties, with the exception of taxes. The main challenge for these entities will be their realignment to a completely new reality; their competitive structural design; their efficient assimilation of new roles and responsibilities, and a complete commitment for transparency in their own operational guidelines. It is precisely here, where we will have a chance to see first-hand, the quality of the legal framework created, and the capacity of the government to implement the desired mechanisms to ensure that the enormous potential for investments find not only the required legal certainty but also the best practices of the industry.

Juan Carlos Luna is the Executive Director of Lawgistic, an international law firm with offices in Houston and Mexico City. For more information visit www.lawgistic.com or contact Juan Luna at luna@lawgistic.com.

SHALE OIL & GAS BUSINESS MAGAZINE

PO LICY

THE NEW MIDDLE EAST BY: CONGRESSMAN HENRY CUELLAR

PARTNERING TOGETHER, THE UNITED STATES, MEXICO, AND CANADA HAVE THE POTENTIAL TO BE THE ÒNEW MIDDLE EASTÓ 42

SHALE OIL & GAS BUSINESS MAGAZINE

LAST DECEMBER, the Mexican Congress passed energy reform legislation that opened up Mexico’s state-controlled sector to private investors for the first time since the 1930s. With these recent developments in Mexico and the expanding production in Texas and other states, I am confident that we are on the verge of a new age of North American energy independence. Texas production alone is predicted to surpass 2.7 million barrels of crude oil per day in 2014, spread across 837 operating oil and gas rigs. That output places Texas ahead of OPEC member countries like Nigeria, Venezuela and Algeria. Oil and gas production in Texas is reviving industries and communities across South Texas. According to The University of Texas at San Antonio’s Institute for Economic Development, the 14-county Eagle Ford Shale region supported 86,000 full-time jobs and estimated $46.6 billion in total economic output in 2012, alone. While the Eagle Ford Shale formation has had impact on South Texas, it does not end at the Rio Grande. Currently, Mexico is at the point of developing legislation to regulate its newly-opened energy sector, including the bidding process and contracts with private investors. Once this secondary legislation is in place, companies will have a chance to review the opportunities available to them. The three North American countries are inherently tied together in trade, Canada and Mexico being the first and third highest sources of oil imports for the U.S., respectively. This makes it very important for these countries to build stronger partnerships and economic integration. As it stands now, Mexico is ranked as the seventh largest producer of oil in the world, holding

approximately 13.4 billion barrels of oil reserves. Estimated studies showed that Mexico may have the fourth largest collection of shale oil production in the world, totaling 13 billion barrels. PEMEX has estimated that the country needs more than $60 billion per year in investment to properly tap into the country’s vast potential of energy production. It is very important that U.S. companies seize this opportunity to invest in the production of the vast energy reserves in Mexico. In the U.S. budget agreement passed last December, I was able to include an important provision – the Transboundary Hydrocarbons Agreement. This agreement provides the necessary framework for a joint U.S.-Mexico development of oil and natural gas reservoirs across the Gulf of Mexico maritime boundary. With these two pieces of legislation, North America is in a position to take significant steps towards the energy independence we have been fighting for. Partnering together, the United States, Mexico, and Canada have the potential to be the “New Middle East.” This agreement will provide the production and sustainability necessary to keep our economy growing, increase our national security, and create new jobs. US Congressman Henry Cuellar represents the 28th District in Texas. He is currently serving his fifth term and serves on the powerful House Committee on Appropriations in charge of overseeing the federal budget. He also serves on House Appropriations Subcommittee on Homeland Security and House Appropriations Subcommittee on State, Foreign Operations, and Related Programs. He can be reached at cuellar.house. gov.

SHALE OIL & GAS BUSINESS MAGAZINE

ECONOMIC IMPACT OF THE EAGLE FORD SHALE TOUR

TOUR DATES:

Conducted by the University of Texas at San Antonio in Conjunction with STEER and ANGA.

SAN ANTONIO, TX September 23, 2014

The networking events will consist of stops in Houston, San Antonio, Corpus Christi and Laredo, Texas.

LAREDO, TX September 25, 2014

SAVE DATE THE

PRE-SALE TICKETS AVAILABLE NOW $25.00

CORPUS CHRISTI, TX September 26, 2014 HOUSTON, TX September 30, 2014

Tickets at the door $45.00

For more information go to www.shalemag.com. Click on the Economic Impact of the Eagle Ford Shale tab. 44

SHALE OIL & GAS BUSINESS MAGAZINE

OIL & GAS BUSINESS MAGAZINE

YO U R PARTNER I N

OIL STORAGE

TANKS Ideally located in Seguin Texas, Tank Partners wants to partner with you.

CALL NOW FOR SP EC

PRICINGIAL

on 400

BBL fro

,950

API 12f 210 BBL, 300 BBL, 400 BBL, 500 BBL, 750 BBL, 1000 BBL • Delivery direct to your well site • Stairways, Walkways, Grade Bands • Free on site storage • Separators, Heater-treaters, Gun Barrels • Full Corrosion Systems available

501 E. Baxter Street, Seguin, Texas 78155 p 830•433•4866 f 830•433•4965 www.tankpartners.com SHALE OIL & GAS BUSINESS MAGAZINE

BUSINE S S

WE CAN ALL BE LEADERS BY: DOUGLAS CAIN

SHALE OIL & GAS BUSINESS MAGAZINE

that people gravitate to when the world goes to hell in a hand basket. Finally, we all have the ability to be living examples of leadership to all the stakeholders in our lives. We can treat all with respect, appreciation and kindness and in doing so raise the culture of our organization to what we refer to as ‘Best In Class’. And folks, you do not

ÒNO INSTITUTION CAN POSSIBLY SURVIVE IF IT NEEDS GENIUSES OR SUPERMEN TO MANAGE IT. IT MUST BE ORGANIZED IN SUCH A WAY AS TO BE ABLE TO GET ALONG UNDER A LEADERSHIP COMPOSED OF AVERAGE HUMAN BEINGS.Ó

Ñ PETER DRUCKER

need a title to do any of the above four things. It is a choice, friends, which you can do on an hourly basis or not do at all. I have also had the opportunity to think about the concepts of success and failure. Again, this easy to read book gave me points of view that I had never considered regarding these subjects. ‘Success is created through the performance of few small daily disciplines that stack up over time to produce achievements far beyond anything you could have planned for.’ This made my number one ‘Dougism’ really pop in my mind: Integrity is very expensive

those four fine men to learn about hard work, attention to detail, critical thinking, honesty and making your life’s work the most fun thing you do. To those four men who raised me from 13 to 21, I owe you a debt of gratitude I can never repay, thank you. You don’t need to have the title President after your name to be a leader… you can be a leader without a title. Until next time… For more information: Visit www.laketrucklines.com or contact Douglas Cain at ckelly@ laketrucklines.com.

RANGIZZZ/BIGSTOCK.COM

his is the final installment about leadership and I felt it important to give some insight on how I honestly believe that anyone/everyone can be a leader, no matter if they are pushing a broom or signing the checks. Leadership is an honor afforded to every individual in the company or in the home. I have read a number of books regarding leadership over the last six months. Some were dry and formulaic, others were interesting, but I could never find the hook but one book was actually a ‘fable’ as it were and I enjoyed it immensely. “The Leader Who Had No Title” really took over a couple of months ago as one of my favorite pieces of ‘leadership reference materials’, as I like to call it, and was written by leadership consultant, Robin Sharma. One of the reasons we can all be leaders is that we all have natural powers endowed upon us… we must choose to use them. We all have the daily opportunity to express the absolute best within ourselves. Half measures almost never result in positive outcomes. We all have the power to inspire, influence and elevate everyone we meet and show that great example of leadership, daily. Why would you go through even an hour of a single day not inspiring people? We all have the power within us to drive positive change in the face of an otherwise negative world. I always want to be looked upon as the person

on Monday and doesn’t even start paying off until Friday. It’s that last part that really hit me recently. All my integrity of 30 years, the being broke for a quarter of a century, the 24 hours a day, seven days a week, and no vacations is finally paying off. As pointed out by our CFO Jess Stephens, “It has just started being Friday.” It was the daily application of integrity that separated me from the rest and kept me in business when my competitors were dropping like flies in the multiple recessions during that 30-year span. And the flip side of that coin, failure? ‘Failure, on the other hand, is just as easy to slip into. Failure is nothing more than the inevitable outcome of a few small acts of daily neglect performed consistently over time so that they take you past the point of no return.’ Did you like those last five words? Stop and think of those people that wasted a 30-year working career and now so late in life, there is nothing to do about it. But now think about the first part. I hated sales calls…but I did them every day. Oh Lord, how I hated to pick up that phone. Do the things you do not like to do first, and do them with the same gusto that you have when you do the things you love to do. That is what leaders do. Now, in case you are wondering if I ever had my own ‘Leaders Without a Title,’ I can assure you I did. They were Isiah Butler, Franklin Davis, the Rev. Owens and Mr. Bass. As a 13-year-old boy my father gave me my first Lake Truck Lines uniform and sent me with

BEST WESTERN SAN ISIDRO INN

• Early morning complimentary full breakfast buffet • Ultra-luxurious 300 count sheets and pillow top mattresses • Complimentary Wi - Fi • Prestigious M. K. Guertin Award winner - 3 years in a row • Best Western Customer Care Champions Award - 4 years in a row • Video and security monitored property

1410 Hospitality Drive Laredo, Texas, 78045

LOS AGAVES CONFERENCE AND MEETING ROOM

• 70” Smartboard Touch Tablet HD Display • BOSE In-ceiling sub woofer with Amplifier • YAMAHA Multi Channel 3D Ready Receiver with HDMI Input • Epson Pro 3 LCD Projector • Caterer ready kitchen with full services • Cinema 130” motorized ceiling screen

Phone: 956.723.1600 Fax: 956.723.1610 www.bestwesterntexas.com

Business Lawyers for the Energy Sector • Protecting our clients’ trade secrets, and confidential and proprietary information • Structuring joint venture, licensing, and partnership agreements • Negotiating and enforcing non-compete, non-solicitation and non-disclosure agreements • Providing business risk assessment and defense of employment claims • Protecting trademarks, trade secrets, and copyrights

Over 20 Years of Trial and Arbitration Experience Representing the Energy Sector

San Antonio Office 8700 Crownhill Blvd., Suite 302 San Antonio, TX 78209 (210) 824-2220

Houston Office 3501 Allen Parkway Houston, TX 77019 (713) 526-2222

We offer a unique blend of expertise and experience, and provide alternate billing strategies for our Energy clients. *Charles M.R. Vethan is Board Certified in Consumer & Commercial Law by the Texas Board of Legal Specialization

www.VethanLaw.com SHALE OIL & GAS BUSINESS MAGAZINE

BUSINE S S

OPPORTUNITIES FOR ECONOMIC DIVERSIFICATION IN RURAL TEXAS BY: THOMAS TUNSTALL, PH.D.

IN THIS PERIOD of rapid growth in the production of shale energy, the need for diversification as part of an overall economic development strategy for South and West Texas is more important than ever. Texans know better than anyone that oil and gas booms will eventually slow down or experience an outright bust. So in order to buffer against those kinds of impacts, a sound plan to diversify the economies will be essential to long-term sustainability of the regions. Prospects for economic diversification range from hunting, recreation, tourism (which includes cultural, nature, heritage/historical, recreational), alternative energy production such as geothermal or wind, water desalination and others. One of the subsets of tourism - nature tourism - holds particular promise for the Eagle Ford area, not least of which because it promotes environmental stewardship. The Images for Conservation Fund (ICF) maintains an active interest in the sustainability of the Eagle Ford Shale using nature photography to foster art, education, wildlife conservation, economic development and natural history. In the process of helping to develop a diversified industry, the organization will also encourage private landowners to restore, preserve, conserve and enhance wildlife habitat at the same time. Perhaps not surprisingly, private land ownership dwarfs that of public ownership. In the Western Hemisphere, 80 percent of land is in private hands. In the United States, 70 percent of land is privately-owned, but in Texas that number is actually 95 percent. As a result, strategies for sustainability that address private landowner concerns can have substantial impact. In fact, wildlife and habitats will have to be profitable enough to compete with other land uses - otherwise habitat loss is likely to continue. There are several advantages to both landowners and the environment for such programs. Leases can be sold year-round (as opposed to hunting leases, which are seasonal). Wildlife diversity is increased because photographers value all types of wildlife, not just game animals. There is less liability and risk than with hunting. There are also opportunities for value-added activities such as lodging, food service, education, teaching workshops, and professional guides. Nature photography leases can be marketed globally or locally. The economic model for this type of industry is relatively straightforward. Photographers typically pay $200 per day for the right to photograph in a given area. If 10 photographic areas are utilized for 60 percent of the year (200 days), this generates gross revenue from operations of $400,000 in income with minimal impact on the land. For a 300-acre ranch with a market value of $3,000/acre, wildlife photography represents a 44 percent annual return on investment from photography operations.

SHALE OIL & GAS BUSINESS MAGAZINE

Estimates are that 30 million people photograph wildlife in the U.S. annually, with nearly 12 million of them spending more than seven days per year doing so according to U.S. Fish and Wildlife surveys taken every six years. As a point of comparison, 26 million people play golf, with an annual spend of $64 billion. A nature photography tournament is planned for October 2014 that will team 20 ranches in the Eagle Ford area with 20 exploration and production companies with 20 professional photographers in a one-month tournament of nature photography. The Pro-Tour of Nature Photography as it has been dubbed will be the third ICF event of its kind. The winning team will be awarded the prestigious William Henry Jackson award, the photographer who is best known as the first person to photograph the wonders of Yellowstone, which aided efforts to create the world’s first national park. ICF will produce a coffee table book featuring each team and the best images submitted. Six divisions will include: · Birds · Mammals · Reptile and Amphibians · Invertebrates · Landscapes · Plants and Flowers - Nature and Exploration

CONFIDENCE.

WE’LL DO WHAT IT TAKES TO HELP YOU GET THERE.

You have goals. Ours is helping you achieve them. To learn more, contact: George F. Long Financial Services Professional MassMutual South Texas 10101 Reunion Place, Suite 300 San Antonio, TX 78216 210-384-5314 gflong@financialguide.com www.financialguide.com/george-long

LIFE INSURANCE + RETIREMENT/401(K) PLAN SERVICES DISABILITY INCOME INSURANCE LONG TERM CARE INSURANCE + ANNUITIES

MassMutual Financial Group refers to Massachusetts Mutual Life Insurance Co. (MassMutual) and its affiliated companies and sales representatives. Local sales agencies are not subsidiaries of MassMutual or its affiliated companies. Insurance products issued by MassMutual (Springfield, MA 01111) and its subsidiaries, C.M. Life Insurance Co. and MML Bay State Life Insurance Co. (Enfield, CT 06082). CRN201411-166963

Site Development

•

excavation

•

UtilitieS

•

paving

Two television documentaries are planned, as well as an educational DVD, which will be distributed to public/private schools, colleges and universities south of San Antonio: Eagle Pass to Victoria. ICF also plans to develop a traveling museum. Photographing exotic wildlife and local flora is one example of nature tourism that can be developed in rural Texas. Such strategies are more incremental than transformational to be sure, but over an extended period of time can have a significant, positive impact to the environment. Ensuring that local economies in South and West Texas avoid becoming overly dependent on shale energy in this era of unconventional oil and gas production will be essential to the sustainability of the region over the long run. Thomas Tunstall, PhD, is Research Director at the Institute for Economic Development at the University of Texas San Antonio. He can be reached at thomas.tunstall@utsa.edu 713-838-7300 • www.slackandco.com SHALE OIL & ford GAS BUSINESS MAGAZINE houston • Eagle • Permian basin

BUSINE S S

LIVE FOR TODAY AND PLAN FOR TOMORROW BY: GEORGE F. LONG

WHAT IS YOUR GREATEST ASSET? You might say it’s your home or your business, perhaps a valued heirloom, or even your education. But it’s not. Your greatest, most valuable asset is your ability to earn an income. Think about it. Your income generates your cash

SHALE OIL & GAS BUSINESS MAGAZINE

flow, which determines what your lifestyle is and will be. So as long as you’re earning a good income you can plan for the future. But what if you are sick or injured and can’t work, or even die unexpectedly? Are you prepared for what would happen if your income was lost? Remember, your value as a provider not only includes your mortgage and car payments,

JAKUB JIRSAK/BIGSTOCK.COM

ARE YOU PREPARED FOR WHAT WOULD HAPPEN IF YOUR INCOME WAS LOST?

utilities, education and living expenses, it also includes benefits through work and the value of the personal contributions you provide to your family. Your earning potential over your career could be quite significant. If your annual earned income is $100,000 and you have 20 years until retirement, you would earn $2,000,000 (without accounting for pay increases, inflation, taxes or the value of any other contributions) to live on and save for retirement. But all that potential future income would be lost if you weren’t able to work. What if you own a business? In that case, you not only provide for your family, you are responsible for your employees’ livelihoods and the community your business serves. Could your business continue to operate successfully if you weren’t there to run it?

MANAGING THE RISK OF “WHAT IF” Insurance protection is an essential piece of your future financial security and can help you manage the risk of “what if” – what if you can’t work due to illness or injury, or what if your partner of many years exits the business, or what if an untimely death were to occur. Disability income insurance replaces a portion of your income if you are sick or injured and unable to work. If you are fortunate, you may already have some insurance protection in place through your employer’s group long term disability (GLTD) benefits. But is your current GLTD coverage adequate for your needs? For example, are the GLTD benefits taxable? Does it cover bonuses? Are there monthly benefit caps? The limitations of GLTD coverage all contribute to the ‘DI Gap’– the difference between your current net income and the net GLTD benefits you would receive if you were to become too sick or hurt to work for an extended period of time. Individual disability income insurance (DI) is a personal protection solution available to you that, when used to supplement your employerprovided GLTD, can help replace a larger portion of your income – including bonuses or commissions. While no disability income insurance policy, or any combination of policies, will cover 100 percent of your income, adding DI coverage to supplement existing GLTD coverage can help

you minimize the DI Gap. Additionally, disability income insurance policies can help to cover the operating costs of a business, provide the funds for small business partnership buyouts, replace a portion of lost earnings, and help protect your ability to save for retirement. Life insurance offers basic and essential financial protection and it can help to relieve many uncertainties about the future financial well-being of those who depend on you. Many Americans agree that life insurance is the best way to protect against the financial hardships resulting from the premature death of a primary wage earner. You probably know that life insurance is one of the most effective ways to help protect the financial security of your family or business against the economic loss that policies can result when you die. However, you may not be aware that some life insurance may help you achieve other financial goals, such as providing cash for emergencies, preparing for retirement or ensuring that you leave a financial legacy for the next generation. In addition to pure death benefit protection, some life insurance policies contain a cash value component – sometimes what is referred to as a “living benefit” – that can be accessed through loans or withdrawals. These funds can be used for a variety of purposes, including funding education costs or supplementing retirement income.

www.morsatransportation.com info@morsatransportation.com

210.336.2039

Our mission is to transport your freight with the utmost care and speed. Our commitment to our clients is to offer the best service at the most competitive rates. No fuss, no stress, leave it all to us. We will promptly respond to your request and make sure we keep you updated on the status of your cargo during the entire process. With ten years behind us, we specialize in dedicated services and Hot Shot services!

FIND A TRUSTED ADVISOR Now you understand that your greatest asset is your ability to earn an income, and the critical importance of insurance to protect your greatest asset. The good news is that you don’t have to develop financial protection strategies using disability income and life insurance on your own. You can benefit from working with a financial services professional who has knowledge, experience, insight and an active interest in your financial success. A skilled financial services professional can not only advise you on the type and amount of insurance protection that is right for you, he or she can coordinate your financial strategies with your attorney, your accountant, and any other professional advisors with whom you work to help you achieve what is most important to you. Your financial services professional can help you be prepared for whatever tomorrow may bring.

George F. Long is a financial representative with MassMutual South Texas, a MassMutual Agency; courtesy of Massachusetts Mutual Life Insurance Company (MassMutual). He can be reached at gflong@financialguide.com, (210) 384-5314, or www.financialguide.com/george-long SHALE OIL & GAS BUSINESS MAGAZINE

BUSINE S S

FREEBIRDS

You DonÕt Mess with Texas.

BY: CHARLOTTE WARREN

PHOTO BY BILL PRUYN

nd for Freebirds World Burrito, you don’t mess with Mother Nature either. For more than 25 years, Freebirds has been plucking the harvest from our rich soils and serving the cream of the crop in its famous burritos, nachos, salads, tacos and quesadillas – all without added hormones and manufactured ingredients, whenever possible. As most of us are taught at a young age, Freebirds stands by the mantra “you get out what you put in.” And with veggie-packed, flavorful and diverse offerings, Freebirds continues to dish out fresh options with the same tried-and-true Texas recipes; all while our community takes a turn toward better eating habits. Born in California, but raised in Texas, Freebirds

SHALE OIL & GAS BUSINESS MAGAZINE

made its name as a hardworking entity in the lone star state many moons ago. Created in 1987, it started from humble beginnings, but quickly expanded as its creators discovered they weren’t alone in their quest for a restaurant that satisfied their hunger – without the confinements of your typical fast-casual burger-and-fries joint. They wanted something more appetizing, wallet-friendly and, most importantly, a lot of options. Freebirds has ever since stood for freedom of choice, both in expression and at mealtime. With dozens of toppings, a handful of proteins, five kinds of tortillas, and various portion sizes to choose from (starting with the conservative Hybird to the beastly Super Monster), Freebirds’ pickings are far from

slim. Today, the restaurant has around 100 locations across the US, with more than 60 based in Texas, and its headquarters firmly planted in Austin. What sets this discovered brand apart from its competitors is its avid use of fresh ingredients, which make their way into handcrafted, scratch-made menu items. There are no freezers at any Freebirds restaurants because produce is delivered daily. Freebirds team members – more fondly known as the “Tribe” – wake up bright and early to chop, simmer and roast each ingredient every morning. “For us, fresh is the only way to go,” says Freebirds SVP of Operations, Bobby Shaw. “There’s no need for us to buy anything frozen. We’d rather wake up that much earlier to prepare our salsas, sauces and so on from scratch – it just tastes better. And it’s better for you.”

WHAT SETS THIS DISCOVERED BRAND APART FROM ITS COMPETITORS IS ITS AVID USE OF FRESH INGREDIENTS, WHICH MAKE THEIR WAY INTO HANDCRAFTED, SCRATCHMADE MENU ITEMS Freebirds also shops locally whenever possible and always opts for more eco-friendly and humane food sources. Its steak comes from grass-fed cows and its chicken from free-range farms. Plus, all of Freebirds’ whole, fresh vegetables are free of Genetically Modified Organisms (GMOs). And as delicious as its burritos are, Freebirds’ sense of community is perhaps even more addictive. Every Freebirds location dedicates countless hours to charitable interests, donating meals to communities across the state of Texas and beyond. This year, Freebirds donated thousands of dollars to USO Fort Hood following the tragedy in April. “We’re a family, and families help their friends and neighbors,” says Shaw. “It’s really as simple as that.” Back in the kitchen, Freebirds’ free-spirited, high-energy approach also translates fluidly into its catering service, bringing made-to-order tacos or entire burrito bars to any party of 10 to 10,000 people. “Folks get bored with the usual,” says Freebirds Catering Sales Manager, Josie Nieves. “They’re always excited to cater with us because we serve the best stuff instead of the same boring deli sandwiches.” Freebirds’ mission to “feed the belly and the soul” doesn’t look like it will meet many barriers any time soon. In fact, Freebirds was recently ranked, once again, as one of the top five fast-casual brands in the nation. With continued growth on the horizon, it’s clear that Freebirds’ dedication to providing quality experiences proudly stems from its Texan upbringing. You can hang your hat on it.

ONLY TEXANS TEXANS

KNOW HOW TO FEED

Reaping the earth’s bounty is what we do best. That’s why you should plan your next offsite onsite by catering with Freebirds. From custom-rolled burritos to an entire burrito bar, your folks will attend this meeting and even look forward to the next. Place your order now.

Freebirds World Burrito San Antonio & South Texas Catering Sales Manager Josie Nieves P: 210-560-5002 F: 866-421-0876 jnieves@freebirds.com

For more information, visit www.freebirds.com. SHALE OIL & GAS BUSINESS MAGAZINE

L IFESTY LE

BOOT RANCH SUMMER COMFORT FOODS BY: AARON J. STAUDENMAIER

tures rise, the last thing anyone wants is a hot dish, especially if they have to prepare it. Enter summer comfort food! “Comfort food is a staple for anyone wanting a hearty meal and a little taste of home,”

TEXAS WATERMELON LEMONADE

Yields: 3 Quarts Ingredients: 32 ounces watermelon chunks, seeded 2 ounces sugar 8 ounces lemon juice 2 quarts water Directions: 1. In a blender, pulse watermelon and sugar to make a puree while taking care not to blend the seeds. 2. Strain into a large pitcher and add lemon juice. 3. Add water to your desired level of tartness. 4. Pour over ice and garnish with a sprig of mint and a thin lemon wedge. Special Note: This tasty summer drink is excellent with a splash of vodka!

HILL COUNTRY LEMON POUND CAKE

Ingredients: 4 eggs, at room temperature 1-1/2 cups sugar 1 pinch salt Zest of 3 large lemons 1-3/4 cups cake flour 1/2 teaspoon baking powder 1/2 cup heavy cream, at room temperature 5-1/2 tablespoons butter, melted and cooled to room temperature Directions: 1. Position a rack in the center of the oven and preheat the oven to 350˚F. Butter a 9- by 5-inch loaf pan or an 8-inch cake pan and dust with flour, shaking out the excess. 2. Using a large bowl, whisk together the eggs, sugar and salt for just a minute, until foamy and smoothly blended. Whisk in the grated zest. 3. Sift the dry ingredients in three additions over the foamy egg mixture, whisking lightly in between each addition just to incorporate. Whisk the heavy cream into the mixture. Switch to a rubber spatula and gently and quickly fold in the melted butter. 4. Pour mixture into the prepared pan and bake for 50 to 60 minutes, or until the center of the cake crowns and cracks and toothpick inserted in the center comes out clean. Remove to a cooling rack and let rest for 10 minutes before unmolding.

SHALE OIL & GAS BUSINESS MAGAZINE

says Boot Ranch Executive Chef, Aaron J. Staudenmaier. “Try one of these refreshing favorites today – watermelon lemonade or lemon pound cake.”

ABOUT BOOT RANCH

Boot Ranch is the Texas Hill Country’s finest private golf and family community nestled on more than 2,000 picturesque rolling acres. The master-planned retreat offers a variety of living options and the clubhouse features expansive vistas, a spa and casual fine dining. Featuring a Hal Sutton-designed championship course, Boot Ranch has been rated one of the Top 10 Golf Communities in America by Golf Digest and ranked among the Top 10 in Texas seven times by The Dallas Morning News. Visit www.bootranch.com or call (830) 997-6200 to learn more.

ABOUT AARON J. STAUDENMAIER

Boot Ranch Executive Chef, Aaron J. Staudenmaier, began working the graveyard shift at a truck stop at age 14 and eventually made it to The Mansion in Dallas working under Chef Dean Fearing. For the 13 years prior to Boot Ranch, he worked under Chef Kent Rathbun at Abacus, Jasper’s and at the farm-to-table concept, Rathbun’s Blue Plate Kitchen. He brought pieces of all these experiences when he joined Boot Ranch in late 2012. For More Info: Inquiries, interviews, photos and site visits are available upon request. Please contact Randy E. Pruett with Pierpont Communications for Boot Ranch at the office (214) 217-7300 or by mobile at (214) 505-1685 or by email at rpruett@ piercom.com.

ALEXLUKIN/BIGSTOCK.COM

“COMFORT FOOD” usually summons images of steamy dishes like pot roast, chicken and dumplings, beef stew, tomato soup, mashed potatoes — all with a hot buttery biscuit, if possible. But when the Texas tempera-

Serving the State of Texas and Beyond

Our Mission:

SERVICES: - General Contracting - Construction Management - Design-Build - Design Consultants - Pre-Engineered Metal Building Erection - Structural Steel Erection

“To grow through our commitment to provide a superior product at a competitive price ensuring satisfied repeat customers”

- The employees of Lauger Co.

• Holt • Patterson-UTI Energy, Inc • Energy Transfer • Basic Energy Services • Hilcorp Energy Company • Orion Drilling Company LLC • Repcon • Francis Drilling Fluids, LTD. • Valerus • Champion Technologies • Exterran • Anderson Machinery Company • Stallion • Siscorp • Diamond Fiberglass • South Texas Electric Cooperative • Marathon Oil Co. • Murphy Exploration

361.576.0003

www.laugercompaniesinc.com

SHALE OIL & GAS BUSINESS MAGAZINE

L IFESTY LE

“BLACK GOLD” GOING UP IN SMOKE Don Strange of Texas Fires Up Brisket You Have to Taste to Believe BY: DAWN ROBINETTE / PHOTOGRAPHY: MATT GARCIA

MR. STRANGE’S BARBECUE SAUCE Makes 5 Cups

1 cup ketchup 2 ¾ cups tomato sauce 2 tbsp medium-hot chili powder ¾ tsp cayenne pepper 2 tbsp plus 1 ½ tsp black powder 1 ¾ cups water 2 tbsp granulated garlic ½ tsp kosher salt 2 tbsp plus 1 ½ tsp Worcestershire sauce 1 cup firmly packed light brown sugar 2 tbsp plus 1 ½ tsp honey 1 tbsp liquid smoke ½ pound (1 stick) plus 5 tbsp unsalted butter Combine all ingredients in a heavy-bottomed 3-quart saucepan over medium heat. Stir the sauce until the butter has melted, then reduce heat and cool completely. Transfer to a storage container with a tight-fitting lid and refrigerate.

SHALE OIL & GAS BUSINESS MAGAZINE

here are few things that Texans take more seriously than barbeque, so if your company includes “of Texas” in it’s name, you better deliver. Don Strange of Texas, Inc., got its start thanks to great tasting barbeque 60 years ago. After thousands of flaming coals, Texas mesquite and oak, and well-seasoned smokers, the company has perfected its passion for barbeque and turned it into a science. Don Strange of Texas knows how to tame a flame to produce amazing flavor, but what truly sets it apart is its version of black gold, the company’s melt-in-your-mouth brisket. The initial spark can be traced to the flames of the barbeque cooked behind the Strange family grocery store in 1952. As the last stop on San Antonio’s Bandera Road on the way out to Medina Lake, customers would stop and stock up on groceries for the weekend. The store was also a butcher shop, so it was a natural extension to take the excellent quality meats and barbeque or smoke them for customers. And there, a legend was born. On any given day, the smoker at Don Strange of Texas will be cooking 60 to 70 briskets at a time, and not just any brisket, but HeartBrand Beef Akaushi brisket. The Akaushi breed is a prized commodity in Japan and HeartBrand is the only source of

Akaushi beef in the United States. Akaushi beef grades two levels higher than prime and contains extremely high amounts of intramuscular fat or marbling with a fatty acid composition that is significantly lower in saturated fat and cholesterol and higher in monounsaturated fat, making the beef rich in flavor, buttery and incredibly tender. Pairing their talented team of smokers with such high quality beef creates pure barbeque perfection. “Like true Texans, we take our brisket very seriously. Our team gets it right every time, relying on what we’ve learned about brisket since 1952, working with the seasoning we’ve perfected and our seasoned smokers that never fail to produce tender, melt-in-your-mouth results,” explains Brian Strange, President and CEO of Don Strange of Texas. “Nothing says authentic Texas like the mouth-watering smell of amazing brisket being smoked to perfection.” Despite the renowned caterer’s wide array of menu options and creative flavors, brisket is by far its most requested item. Don Strange of Texas’ brisket is so popular that the smokers generate up to 1,600 pounds of brisket a week, depending on the company’s schedule of events. And the company known for its creativity doesn’t just slice and serve it, instead offering the fabulous meat on brisket sliders or brisket tacos and even served atop fire-pit roasted baked potatoes. With the thousands of hours they have spent fanning flames for flavor, the grilling experts at Don Strange could conduct a class to share their knowledge and actually will upon request. So if you want to learn from the pros, gaining inside knowledge on how to cook, carve and serve the best brisket you’ve ever tasted, get in touch with Don Strange today. Or if you’re hosting your own special event but don’t have hours to spend smoking the brisket you’d like to serve, you can arrange to have Don Strange cook brisket for you and even deliver it right to your door. If you’re not ready to stand the heat at your next event, let the grilling experts at Don Strange of Texas do the work while you take the credit for a fabulous party. To discuss hosting your event at any one of Don Strange of Texas’ terrific venues, like the Don Strange Ranch, Buckhorn Saloon and Museum or The Settlement – Circa 1850, or having Don Strange of Texas bring their brisket and barbeque expertise to you, email Di-Anna Arias at di-anna@donstrange.com or call her at (210) 434-2331.

SHALE OIL & GAS BUSINESS MAGAZINE

L IFESTY LE

HACIENDA CLEMENTE JACQUES BY: JIMMY PERKINS

orty four miles south of Mexico City sits the ancient village Tepoztlán, home to 15,000 inhabitants. The area is known for many things including its ideal climate, art, ice cream and spiritual mysticism. From the ancient Aztec temple Tepozteco perched high above the city, to the nearby village of Amatlán known as the birthplace of the feathered serpent deity Quetzalcoatl, the area is a favorite destination for savvy adventurers. Sitting between these two points is a special place that can best be described as heaven on earth. Hacienda Clemente Jacques was founded in 1960, and has been owned by a group and managed by an American artist since 1987. Additionally, the same caretakers have lived on the premises in a private home for 20 years. Felipe, Leydiana, Francisco and Josefina handle all of the cooking, cleaning and arranging needed to make your stay worry free. The property is securely high-fenced and gated on 10 expertly manicured garden-like acres. Rain is in abundance in the summer months, but most of the year is dry. The original owner built a water cistern and aqueduct system in 1961 and today this lush property is maintained 100 percent by capturing and filtering rainwater. Additionally, 80 percent of the electricity is solar powered. Whether you are indoors or out, the common themes on the property are nature, community, art and tranquility. There are two large private houses available to rent, either individually or together, if available. The main house, Hacienda Clemente Jacques, offers six private bedrooms and five and a half baths in three stories, decorated with traditional elegance. In addition, there is a large swimming pool, a chapel and expertly manicured grounds with fruit trees, fountains and ponds. The smaller house is the 4,000 SF Villa Clementito, which offers three bedrooms and three and a half baths plus a large living area and a family room. Additionally, a small swimming pool with a pressure pump for current swimming is accentuated by dramatic views of the surrounding mountains. FMI: www.tepoztlan-vacation-rentals.com or email tepoztlanvacationrentals@gmail.com

SHALE OIL & GAS BUSINESS MAGAZINE

PATIOS OPEN TO THE WORLD

PORTICOS LEAD TO PATIOS

THE MAIN SITTING AND DINING ROOM IN CLEMENTITO

PHOTOS COURTESY OF SHALE

Tepoztl‡n Mexico

FAST FACTS: Mexico City Earliest inhabitants date to 100 A.D. Population – Metro area 21.2 million Elevation – 7,382’ Temperature – Annual average varies between 43˚ and 81˚

TEPOZTLÁN Earliest inhabitants date to 1500 B.C. Population – 15,000 Elevation – 5,522’ Temperature – Annual average varies between 69˚ and 82˚

THERE ARE MANY GREAT RESTAURANTS IN TOWN, BUT THE COOKING AT THE HACIENDA IS ALSO EXCELLENT

HOW TO GET THERE:

Nonstop flights from Houston, Dallas, and San Antonio will have you in Mexico City in two and a half to three hours. A driver with a suburban can be arranged in advance from the airport to Tepoztlán for $150 each way with gratuity. The distance is 44 miles, but with traffic in Mexico City it is a 2 hour drive and sometimes more. Taxis from the Hacienda into town are $5 each way with gratuity. THE MARKET IS FULL OF FRESH FRUITS, VEGETABLES AND MEAT, AS WELL AS MUSIC AND CRAFTS

THE TOWN IS FILLED WITH COLORFUL SHOPS FILLED WITH THE WORK OF LOCAL ARTISTS SUCH AS THE OWNERS OF XOPANTLA. THEIR WORK IS INSPIRED FROM THEIR INDIGENOUS ROOTS AND THEIR HAPPINESS IS CONTAGIOUS.

PHOTOS COURTESY OF SHALE

THE ROAD LEADING TO THE GATE IS LINED BY A CANOPY OF TREES, NATIVE PLANTS AND GRASS

THE MAIN HOUSE HAS TWO INDOOR SITTING AND DINING AREAS AND SIX BEDROOMS

THE COURTYARD HAS AN ABUNDANCE OF SITTING AND DINING AREAS, AND OPENS TO BREATHTAKING VIEWS OF THE SURROUNDING MOUNTAINS

ART IS IN ABUNDANCE INDOORS AND OUT, AND IS AS NATURALLY PLACED AS IF IT GREW AS PART OF THE LANDSCAPE

THE PROPERTY HAS MANY PATHS THAT INVITE YOU TO DISCOVER WHERE THEY LEAD

SHALE OIL & GAS BUSINESS MAGAZINE

L IFESTY LE

THE PALM RESTAURANT History, Tradition, Excellence BY: JIMMY PERKINS

TOP: FOUNDER PIO BOZZI BOTTOM: FOUNDER JOHN GANZI

SHALE OIL & GAS BUSINESS MAGAZINE

IN 1925, NEW YORK CITY was the biggest and most exciting city in the world. Like many European immigrants, Pio Bozzi and John Ganzi arrived by ship from their native Italy to make their way in America. Bozzi found work at a supper club and Ganzi worked as a cook in a hotel restaurant. Ganzi frequented the supper club where Bozzi worked, and the two men met. Here they discovered they were from the same region in Parma Northern Italy, formed a friendship and made a plan. In 1926, Bozzi and Ganzi took over a small restaurant located at 837 Second Ave. and intended to name it Parma; however the clerk in the business office misunderstood and instead wrote Palm on the license. The Palm was a family restaurant that offered pasta and wine as its main fare. Both men were liked and respected in the neighborhood. Bozzi was known to be generous, kind, and fair, and Ganzi as charming and gregarious. Together they were the perfect team and built the foundation of a family empire in these early days. Newspapermen and syndicated cartoonists began frequenting the Palm Restaurant from their nearby offices. They began requesting items not carried on the menu and the two owners obliged. Word began to spread fast about the little place on Second Avenue, with sawdust on the floor, where a great steak or classic Parma Italian recipes could be had for not a lot of money. The nation was in the grip of the Great Depression and wallets were as empty as the walls of the Palm. The founders had no money to decorate, but famed cartoonists such as Jolly Bill Steinke offered to decorate the walls with a cartoon caricature for a plate of spaghetti or a steak, and thus began a tradition that continues today. New York was booming in the post war years of the 1950s, and by now the second generation of the Bozzi and Ganzi families were involved in the business. Walter Ganzi and Bruno Bozzi started as bartenders and learned the business from their fathers. Walter and Bruno continued the Palm tradition of unwavering commitment to its founders’ principles. Additionally, two things occurred around this time that catapulted the Palm’s popularity. First was the growth of the Madison Avenue advertising industry along with its three-martini lunch. Then even more significantly, the opening of the United Nations headquarters in 1952 at the corner

of First Avenue just a block away. The Palm became famous the world over for its great food, drinks and warm hospitality. The 1960s brought many changes and ushered in the third generation of the founding families. Adapting to the times, The Palm eliminated the coat and tie dress code and introduced large Nova Scotia lobsters to the menu. By 1970, the notion of expansion took hold. Wally Ganzi and Bruce Bozzi, the grandsons of the founders, had the vision, dedication and the talent to embark on a remarkable expansion. It is well established that George H.W. Bush was a regular at the Palm on Second Avenue while he was an Ambassador to the United Nations. In 1975, Bush became the head of the Central Intelligence Agency and moved to Washington, D.C. Legend has it that Wally and Bruce chose Washington, D.C. as the first expansion location was thanks to George H.W. Bush’s encouragement. Most recently, the Former President celebrated his 90th birthday at the Palm in his hometown of Houston, Texas earlier this year. Thus began a well-orchestrated worldwide expansion of one of New York’s finest restaurants. The Washington, D.C. location opened in 1972, followed by a second New York City location in 1973, Los Angeles in 1975 and Houston in 1978. Chicago and Miami followed in ’81 and ’84 respectively, and then Dallas in 1986. The San Antonio location was opened in 2000 following several other cities including San Juan, Puerto Rico and Mexico City in 1998. Eighty-eight years later, the Palm Restaurant remains a family-owned independent company with 29 locations worldwide. There really are no secrets to the Palm’s continuing success; rather just the bedrock principles established by the two founders. The philosophy is that every customer is important. Every customer is a VIP. Additionally, loyalty and dedication, love of the business, and the legendary Palm hospitality are all vital elements. If you have ever been to a Palm anywhere in the world, you understand this immediately. If you have never been, then go, and you will discover a place where a warm welcome and customer service is the cornerstone of your experience that complements one of the finest meals you will ever enjoy. For more information, visit www.thepalm. com.

SHALE OIL & GAS BUSINESS MAGAZINE

L IFESTY LE

H.L. HUNT: THE UNSTOPPABLE FORTUNE BY: ROB PATTERSON

rowning the King of the Texas Wildcatters would be a tough call indeed, given the larger than life personalities who pioneered the Lone Star oil business and the legends they left in their wake. But determining the wealthiest of them all is no contest: H.L. Hunt handily takes that title. In 1948, Hunt was declared the richest man in America by Fortune magazine. Even J. Paul Getty, thought throughout much of the last half of the 20th Century to be the wealthiest individual in the world, noted that, “In terms of extraordinary, independent wealth, there is only one man: H.L. Hunt.” When Hunt passed away at age 85 in 1974, estimates of his net worth tagged it as the largest personal fortune on the planet. For decades Hunt resided in a Dallas house just north of White Rock Lake that was modeled after George Washington’s home, Mount Vernon, yet still rather modest for a billionaire and not in the Big D’s Park City’s enclave for the wealthy. He wore inexpensive offthe-rack suits and neither flaunted nor boasted of his wealth. “If you know how rich you are, you aren’t very rich,” he once observed. Said to be an inspiration for the character J.R. Ewing of the TV show “Dallas,” Harold Lafayette Hunt Jr. was born in 1889 near Ramsey, IL, the youngest son of a successful farmer and entrepreneur. He left home at 16 to travel the American west, doing time as a farmhand, mule-team driver, lumberjack, cowboy, dishwasher and laborer. A math whiz, he spent his spare time in those early years developing the gambling and card counting skills that would later serve him well in financing his first oilfield speculations. Eventually settling on a cotton plantation in Arkansas that he bought with a $6,000 inheritance from his father, Hunt prospered during World War I when the demand for his crop was high. With peacetime came a drop in prices as well as a flood that wiped out his business. But as legend has it, he was able to parlay his last $100 into $100,000 gambling in New Orleans. Those funds financed his initial speculations in oil leases and drilling in Arkansas, Oklahoma and Louisiana. By 1925 he had some 100 wells and was worth over half a million dollars. But, by the end of the decade, Hunt had depleted his finds and was all but broke yet again. His big break came soon after in East Texas, which was thought to be largely barren of “black gold” by major oil company geologists. In late 1930, Hunt managed to secure the rights in Rusk County to 4,000 acres around the Daisy Bradford No. 3 well – which had shown signs of oil and natural gas – from C.M. “Dad” Joiner, who was in a bind after over-syndicating it 300 percent. He is said to have kept Joiner holed up in a room at the Baker Hotel in Dallas until he agreed to sell his holdings to Hunt

for $30,000 cash (that Hunt borrowed from a friend) and the promise of some $1.3 million if the well came in. Not long after, the Daisy Bradford and nearby wells hit gushers and the East Texas oil patch was revealed to be the largest known field in the world at the time, eventually yielding some six million barrels and still continuing to produce crude. It was his “greatest business coup,” Hunt later said. He wisely built his own pipeline to supply the big oil companies and a few years later bought a refinery. The Hunt Oil Company and other ventures he started went on to prospect and exploit oil fields worldwide, and Hunt Oil continues to operate out of Dallas today with operations in North America, South America, Europe, Australia and the Middle East. In the late 1940s, concerned about what he saw as the spread of communism, Hunt became a conservative political activist, starting radio shows and publications and writing a national newspaper column to spread his views and supporting the electoral ambitions of General Douglas MacArthur and Senator Joseph McCarthy. He later wrote a utopian novel, “Alpaca,” and in the last years of his life became involved in making aloe vera cosmetics. While conservative in his politics, Hunt was a profligate in his marital affairs as well as rather fertile as a father. He married Lyda Bunker Hunt in 1916 and sired seven children with her. In 1925 he is said to have bigamously married another woman, Frania Tye, with whom he had four offspring. He also fathered another four children with a secretary in Hunt Oil’s Shreveport office, Ruth Ray, and eventually married her after Lyda Hunt died in 1955. His second son, Nelson Bunker Hunt, developed the Libyan oil fields before they were nationalized by Muammar al-Gaddafi, also becoming one of the world’s wealthiest men. In the late 1970s, he attempted to corner the global silver market, for which he was later convicted, and was also a prominent owner and breeder of Thoroughbred racehorses. Fourth son, William, became a leading oil man through his activities with various family enterprises, and despite declaring bankruptcy from his involvement in Nelson’s silver scheme is said to be worth some $3 billion today. Lamar, H.L.’s fifth son, owned the Kansas City Chiefs, co-founded the American Football League, and created and named the Super Bowl. Youngest son, Ray Lee Hunt, is chairman of Hunt Oil. With a legacy in the oil business and family fortune and enterprises that continue to cast a long shadow, H.L. Hunt proved that wildcatting could lead to near incalculable riches and pioneered the worldwide energy industry that continues to thrive now in the booming Texas shale patch.

“IN TERMS OF EXTRAORDINARY, INDEPENDENT WEALTH, THEREÕS ONLY ONE MAN: H.L. HUNT.”

SHALE OIL & GAS BUSINESS MAGAZINE

Like. follow. connect.

Community In Schools of the Coastal Bend greatly appreciates the support and partnership of Shale Oil & Gas Business Magazine

OIL & GAS BUSINESS MAGAZINE SHALE OIL & GAS BUSINESS MAGAZINE

ARTPACE SAN ANTONIO Art in Progress

rtpace San Antonio was founded in 1995 and is an internationally recognized institution providing a residency and exhibition program to artists. Artpaceâ&#x20AC;&#x2122;s International Artist-in-Residence program represents the cornerstone of its art programming. Annually, the IAIR program invites three renowned guest curators to each select three artists for a four-

SHALE OIL & GAS BUSINESS MAGAZINE

PHOTO COURTESY OF ARTPACE SAN ANTONIO

/ / N ONPR O F I T

ARTPACE IS ALIVE AND DAILY DEDICATED TO THE CREATION OF ART month trimester, which includes two months of production and two months of exhibition. Within each trimester, Artpace hosts one international, one United States-based, and one Texas artist. While onsite, residents engage with diverse San Antonio audiences, and their work is shared with the community in multiple ways: through the eight-week exhibition that completes the residency and Artpace Education, a multifaceted education program for K-12 and university students as well as adult educational programs that contextualize the projects. Bilingual gallery guides and tours underscore the exhibitions in both English and Spanish. In addition, Artpace’s physical and online archives provide permanent access to onsite documentation, and residency projects live on in texts authored by the guest curators, as well as the critical and scholarly discourse inspired by each project. Amada Cruz has the distinct privilege of being the executive director of Artpace and she leads the staff of 19 full-time employees. In reality, “employee” is too mechanical of a word to describe the people who work in this place. They are full-time supporters and professionals committed to the Artpace mission and who also enjoy the privilege of working in this creative environment. The 18,000 square foot downtown building, formerly a Hudson Automobile dealership in the 1920s, was renovated by San Antonio’s esteemed Lake/Flato Architects and is itself a work of art. As the executive director at Artpace San Antonio, Amada Cruz is responsible for overseeing the International Artist-in-Residence Program, selecting guest curators, coordinating all exhibitions, and implementing fundraising strategies. Prior to Artpace, she served for seven years as the program director of United States Artists (USA) in Los Angeles. From 2004-2006, she was the executive Director of Artadia, the Tund for Art and Dialogue in New York City. From 1998-2003, she was director of the Center for Curatorial Studies Museum at Bard College. While at Bard, she also taught introductory classes on curatorial practices. Cruz has also worked in a curatorial capacity at such cultural institutions as the Museum of Contemporary Art, Chicago (1995-1998); Smithsonian Institution’s Hirshhorn Museum and Sculpture Garden in Washington, D.C. (1993-1994); and the Solomon R. Guggenheim Museum in New York City (1984-1986). In 1994, she was honored with the Norton Foundation Curator’s Grant. To date 195 artists from 59 different countries have participated in the program, including 100 Texas artists. Artpace is alive and daily dedicated to the creation of art. Whether you live here or are just visiting, it is one of San Antonio’s treasures and not to be missed.

FMI: To learn more visit artpace.org. Artpace is located at 445 North Main Avenue in San Antonio, Texas. Admission and parking is free and open to the public and tours can be scheduled by appointment in both English and Spanish. Artpace is also available for private events by calling 210-212-4900. SHALE OIL & GAS BUSINESS MAGAZINE

C OM M UNITY

HALLIBURTON EXPANDS COMMUNITY SUPPORT ACTIVITIES IN SAN ANTONIO AREA

alliburton, the winner of the 2013 Eagle Ford Excellence Award for Community and Social Investment (awarded by the South Texas Energy and Economic Roundtable), is expanding its community-support activities in 2014. More than 10 organizations in South Texas have benefited from active employee participation and contributions from both employees and some of the company’s suppliers/ vendors. With Halliburton’s new San Antonio Operations Center, located in southern Bexar County, fully functional in late 2013 and now staffed with more than 1,500 employees providing oilfield services to its customers in the Eagle Ford Shale, Halliburton is also focusing on investing in the community. This has been central to the company’s corporate culture since it was founded in 1919. Beginning with a toy drive at Christmas, with a chili cook-off that raised $28,000, through the most recent gumbo cook-off and golf tournament (supported by both employees and the company vendors), which raised $43,000 for the March of Dimes, organizations and their clients are benefiting throughout the San Antonio area. Others include Alamo Kiwanis, the San Antonio Independent School District 5K Run, Special Olympics, Alamo Area Council of Boy Scouts of America, San Antonio Coalition, Tapatio Oilmen’s Golf Tournament and Bexar County Drug Abuse Program. Also, in late June, employees organized a food drive for the San Antonio Food Bank and collected enough food to feed 3,493 families. Twenty employees also volunteered to sort food at the food bank facility one afternoon, sorting 10,067 pounds. “At Halliburton, giving back to the communities in which we work is a ‘core value’ of our company,” said Neil Schmidt, Senior District Manager for Halliburton’s South Texas operations. “To our way of thinking, it is important for us to give in every way we can to a community. And we do it from our individual employees, to our teams, to our managers – all the way to the top. We believe if we are part of a community, we need to be there to help. We are thrilled to be able to donate or make charitable contributions. Our employees want to participate in community activities. It is one of the highest points of what we do in our business.”

SHALE OIL & GAS BUSINESS MAGAZINE

TOP: THE HALLIBURTON HUMAN RESOURCE DEVELOPMENT TEAM - TOP GUNBO - WON BEST COSTUME AT THE GUMBO COOKOFF. BOTTOM: THE HALLIBURTON MAINTENANCE TEAM WON BEST TENT FOR ITS COMING IN CAJUN THEME.

Discover the difference a Real Estate company with over 25 years of experience and a solid record of Innovation, Trust & Partnership can do for you... At Coldwell Banker D’Ann Harper, REALTORS® we strive for excellence. With over 300 Sales Associates throughout San Antonio, New Braunfels, Boerne, Bandera, Kerrville, Fredericksburg and the Surrounding areas; plus Property Management & Leasing Services, Relocation Services and a Farm & Ranch division... We have you covered!

Call today or visit us at

EIGHT LOCATIONS TO SERVE YOU! North Central/Stone Oak 210-483-7070 | North East 210-483-6200 | North West 210-483-6400 | CB Stagecoach 830-460-7200 | Boerne 830-816-7200 New Braunfels 830-608-5400 | Fredericksburg 830-997-5550 | Kerrville 830-896-5500 SHALE OIL Equal & GAS BUSINESS MAGAZINE ©2014 Coldwell Banker D’Ann Harper, REALTORS® All rights reserved. Each office is independently owned and operated. An Equal Opportunity Company. Housing Opportunity.

 S C ENE 

SAN ANTONIO PIPELINER’S CLAY SHOOT THE SAN ANTONIO PIPELINERS ASSOCIATION held their

Annual Midstream Classic Sporting Clays Tournament & Scholarship Fundraiser on June 20, 2014 at the National Shooting Complex in San Antonio, Texas. Teams from all over Texas came together for a day of friendly competition, which benefited The San Antonio Pipeliners Scholarship Fund for Science, Technology, Engineering and Math (STEM) students. For more information on The San Antonio Pipeliners Association, visit their website at www.sapipeliners.org

SHALE OIL & GAS BUSINESS MAGAZINE

A PRIVATE OASIS IN THE TEXAS HILL COUNTRY

Our expanded Ranch Club complex is the perfect paradise for rest, relaxing and recreation. Just steps from Clubhouse Village, it now offers many additional resort-style amenities including four separate swimming pools, Jacuzzi, Ranch Club Grill featuring a wood burning pizza oven, a luxurious open-air pavilion for lounging and seating for up to 300, lighted hard-surface tennis and sport courts, and much more.

To learn more please contact Sean Gioffre at 830-997-7693 / sgioffre@bootranch.com or Andrew Ball at 830-997-6200 / aball@bootranch.com. bootranch.com

SHALE OIL & GAS BUSINESS MAGAZINE

 S C ENE 

PETROLEUM CONNECTION’S MEXICO CONFERENCE ON MAY 27 Petroleum Connection hosted the Mexican Oil and Gas Opportunities Update at the Petroleum Club in Houston. Attendees gathered to listen to presentations on the progress of the secondary legislation currently being written by the Mexican Congress. Distinguished speakers included U.S. Congressman Henry Cuellar, Congressman Javier Treviño of Mexico, and retired U.S. Ambassador to Mexico Antonio Garza amongst others.

LEFT TO RIGHT: GED MCMANUS, ALEX MILLS

LEFT TO RIGHT: ERNESTO VELARDE DENACHE, MARCELO PçRAMO

SHALE OIL & GAS BUSINESS MAGAZINE

LEFT TO RIGHT: JUAN CARLOS LUNA, JORGE LOPEZ DE CARDENAS

A room with a view.

Plan your getaway to Corpus Christi, and experience a funfilled stay at the Omni Corpus Christi Hotel. Whatever your reason to escape, you’ll enjoy luxurious accommodations, amazing amenities and fine dining, all within steps from your room. Let us elevate your stay to extraordinary.

361-887-1600 • omnihotels.com/corpuschristi

SHALE OIL & GAS BUSINESS MAGAZINE

 S C ENE 

ROD SKAUFEL COVER PARTY PHOTOGRAPHY: MALCOLM PEREZ

SHALE MAGAZINE hosted a cover party on June 18 honoring BHP Billiton’s Rod Skaufel at Morton’s Steakhouse downtown in Houston. About 200 industry executives, elected officials and SHALE advertising partners turned out to celebrate and network. The night was a great success and SHALE would like to thank Rod and everyone at BHP Billiton for their support. 2

4 1 ROD SKAUFEL 2 KYM BOLADO 3 OMAR GARCIA 4 JIMMY PERKINS, ROD SKAUFEL, KYM BOLADO 5 ROD AND PAMELA SKAUFEL 6 THE BHP TEAM

SHALE OIL & GAS BUSINESS MAGAZINE

8 11

12 14

7 FRED HAGEMEYER BHP AND JIMMY PERKINS 8 KYM BOLADO, ROD SKAUFEL AND PAMELA SKAUFEL 9 HALLIE VANDERHIDER AND SETH WILLIAMS FROM CATALYST 10 JIMMY PERKINS, KYM BOLADO, AND PAUL SHEPPARD 11 GLORIA PEREZ, OMAR GARCIA, AND LIZ KIMMELMASSEY 12 OMAR GARICA AND BRIANNA LYSSY 13 DINA YBANEZ, TERI ALMENDARIZ, MELISSA LACKIE, STEPHANIE HAWLEY 14 THE VETHAN LAW GROUP 15 TERI ALMENDARIZ AND JOYCE VENEMA 16 TERI ALMENDARIZ, STEPHANIE HAWLEY, CHRISTIAN OGBA AND CARLOS GONZALEZ 17 ASHTON JACKSON AND DOAK DUNKIN 18 CECIL JOHNSON AND KYM BOLADO 19 JOYCE VENEMA AND STEVE ASKEW, PRIMARY SERVICES 20 ROB ROGERS AND SCOTT BRIDGES

CONTINUED ON PAGE 72 73

SHALE OIL & GAS BUSINESS MAGAZINE

23 26

25 29

28 31

SHALE OIL & GAS BUSINESS MAGAZINE

21 JIMMY PERKINS, PAUL SHEPPARD, KYM BOLADO, ROD SKAUFEL, COMMISSION DAVID PORTER 22 KAREN AND DAVID AYERS AND LYNNAE WILLETTE 23 TERI MACDONALD, LIZ MASSEY-KIMMEL, AND HOLLY LEWIS DUVALL OVATIONS 24 OAG ANALYTICS 25 JIMMY PERKINS, HEATHER MELLINGER AND REGINA MELLINGER FROM PRIMARY, AND GED MCMANUS 26 JANE GEMBLER AND CELINA SOLIS 27 CHET ERWIN, STEPHANIE HAWLEY, JIMMY PERKINS 28 JIMMY PERKINS, ROBERT DOWNING, ROBERT DOWNING, JR., JUAN CARLOS LUNA, SCOTT COURTNEY 29 ANNETTE AND MARK FROM MORTONÕS AND KYM BOLADO 30 TAREK SAAB, JOYCE VENEMA AND JOE CONDIT 31 KYM BOLADO AND OMAR GARCIA

34 35

36 39

38 42

41 44

32 SHALE GUEST 33 PETER ESTEVEZ, SHANA HAMID, LISA ROPER, JUAN CARLOS LUNA 34 SHANA HAMID AND ASHLEE HARPER 35 LIZ MASSEY-KIMMEL, HOLLY DUVALL (WINNER OF BALL) DAVID PORTER AND GLORIA PEREZ 36 TERI MACDONALD AND HOLLY DUVALL 37 BHP TEAM 38 HOLLY DUVALL AND ROD SKAUFEL 39 ROD SKAUFEL AND JIMMY PERKINS 40 LYNNAE WILLETTE AND OMAR GARCIA 41 DAVID & KAREN AYERS FROM BHP, DAVID PORTER, LYNNAE WILLETTE FROM BHP 42 PAUL SHEPPERD AND ROBERT SIFFERT FROM HALLIBURTON AND DAVID & KAREN AYERS FROM BHP 43 RAQUEL GORDILLO, OCCIDENTAL AND JIMMY PERKINS 44 MALCOLM PEREZ, KYM BOLADO, AND JIMMY PERKINS

SHALE OIL & GAS BUSINESS MAGAZINE

EAGLE FORD INVITATIONAL

CLAY SHOOT Sponsored by: JFM HOMES, INC

SATURDAY, AUGUST 16, 2014 8:00 A.M. CHECK-IN

JOSHUA CREEK RANCH BOERNE, TEXAS

Contact: Joe Manak 210.288.9411 or jfmanak@gmail.com

OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE

- SHOOTING - LUNCH - AWARDS - RAFFLE Benefitting Fisher House

enowned for upland bird hunting and driven pheasant shooting, Joshua Creek Ranch hosts equally spectacular seasonal migratory dove hunts in South Central Texas’ finest dove hunting corridor. From mid September through mid October, experience an all-inclusive customized itinerary for migratory dove hunting, quail hunts behind pointing and flushing dogs, and European-style driven pheasant shoots. And new this season, decoyed mallard duck hunting. Joshua Creek Ranch, just 40 minutes NW of San Antonio, is the only place to “have it all” in the field plus gourmet dining and superior lodging with spectacular views. Well-traveled sportsmen agree – At Joshua Creek Ranch you’ll experience the most challenging and exciting wingshooting in Texas. “With an experienced and capable staff combined with a kennel full of excellent pointing, flushing, and retrieving dogs, Joshua Creek provides the safest, most productive wing shooting experience in Texas. That, coupled with outstanding accommodations and gourmet meals, is why I make multiple trips each year to Joshua Creek Ranch.” Robert L. Potter, Retired President, FMC Technologies, Inc. Houston, TX”

Joshua Creek Ranch is celebrating its 25th season of outstanding client satisfaction and earning Orvis Endorsement and designation as a Beretta Trident Lodge.

www.joshuacreek.com

a 830-537-5090 a

info@joshuacreek.com

Like, Subscribe, and Follow Us on

SHALE OIL & GAS BUSINESS MAGAZINE

Opening Doors in San Antonio Since 1974

Winner of 2006 Historic Preservation Award This totally renovated home from top to bottom offers spacious rooms with high ceilings, wood floors, beautiful moldings and a grand wood staircase. Master suite opens to study or exercise room. Fourth bedroom or game room with full bath covers entire third floor with great views. Nicely landscaped & lighted yard with a new Gary Pool (salt water)

King Realtors

is dedicated to helping San Antonio and the oil industry with their real estate needs. If you are looking to buy or sell a property, call us and say you saw it in SHALE MAGAZINE!

5600 Broadway Avenue San Antonio, TX 78209 KingRealtors.com tabitha@kingrealtors.com

TABITHA KING 210.414.4255 78

SHALE OIL & GAS BUSINESS MAGAZINE

THE STUDIOS at

CARRIZO SPRINGS

Our new rates are as fOllOws: 2 Bedroom Suites

1 Bedroom Suites

$49.95/night/man, Double Occupancy

$69.95/night/man

$79.95/night/man, Double Occupancy With Full 24-Hour Dining Privileges

$99.95/night/man With Full 24-Hour Dining Privileges

No long term contracts â&#x20AC;&#x201C; just the nicest, cleanest, most secure housing facility in the Eagle Ford Shale area at a great rate. Almost 500 beds and four separate dining halls to serve you.

855-842-7799 (CORPORATE) 830-876-3642 (THE STUDIOS - LOCAL) www.studiosatcarrizosprings.com

facebook.com/StrattonOilfieldSystems

SHALE OIL & GAS BUSINESS MAGAZINE Follow us on Twitter @OilfieldHousing

Supply Leader in the Oil & Gas Industry • Fracking and Pressure Pumping Parts and Supplies • Centrifugal Pumps - New and Remanufactured • Drilling and Workover Rig Parts and Supplies • Well Head Equipment & Valves (1 13/16 - 5 1/8 10k) • Coil Tubing Parts and Supplies • Flow Back and Well Testing Supplies • Production Parts and Supplies • Cementing Pump Parts/Supplies/Equipment VP SALES 2733 Hwy 44 West Alice, Texas 78332 361-664-2999 1-800-664-2264 sales@vpsales1.com

VP SALES 3911 Brazos Street Odessa, Texas 79764 432-381-1000 1-800-664-2264 ken@vpsales1.com

Authorized FMC Flow Line Sales Representative www.vpsales1.com

VISIT US ONLINE AT:

www.shalemag.com

for the latest news, updates and more!

SHALE OIL & GAS BUSINESS MAGAZINE

How can Port-A-Cool evaporative coolers improve your facility? Maintain OSHA requirements and avoid heat stress Sustainability: - Retain employees - Attract new employees - Reduce operating costs - Increase cash flow - Decrease lost work time

Safety: - Better working environment - Increase productivity - Reduce accidents - Improve morale - Reduce heat stress

Evaporative coolers built to Class 1 Division 1 specifications Effective cooling in any environment Port-A-Cool is the world leader in portable evaporative cooling Visit us online at www.port-a-cool.com or call 936-598-5651

SHALE OIL & GAS BUSINESS MAGAZINE

NH ME TEXAS

LUXURY LIVING

DESIGNS

E M NH M E NH TEX

LUX

LIVI URY

DES

IGN

AS H

IDE

E OM

REA

T L ES

AT E

LUXURY

ome ew H ME arR, DNREAMwHO e Y New D YOU THE ne NCH

E IN TH K BEST NESS KISSIC BUSI ES MC

{

JAMD SWBC E AN RTGAGRA MOCANTE LA

FIN

JOH

RA SON

INSPIRED BY

R E A L E S TAT E

Luxury

TEXAS

LIVING

DESIGN

HOME

ALL-STAR MATCHM AK

JENNIFER SHEMWELL

HOME IDEAS

IDEAS

REAL E S TA T E

HE G THO CELIDAY BRIN ANDE T RA CO ROM N10 IGH 1 TING 10 DATEING TIP1S M THE DIN PROFFRO ESS

IONALS



te Haus 2014 e S Hom TION

IC PREDFROM ADE TR RIOR INTE CARTEL 

hang

C ONS MPIL TE CHA STA OO SCHREALMEoments g OF

Time

for a

efinin

on D

JAN

UAR

Y//

FEB

RUA

01 RY 2

2ND YEAR ANNIVE RSARY

NOVEM

SHALE OIL & GAS BUSINESS MAGAZINE

BER//DE

CEMBER

2013

{

COUN Y ELEGANTR CE N AND LESLIEDO POWERS OPERATIO APPRECIAT N ION: H-E-B OUR WOSALUTES UNDE WARRIORD S

A Great Fi

CALIFORN t CLOSETSIA

FOR ADVERTISING INFORMATION PLEASE CONTACT: ADAKU@NHOMETX.COM 210.386.6531

ET EVAPORATOR TECHNOLOGY The Evaporator is a floating unit designed for effective operation in small areas, especially flow back pits, drilling reserve pits and sites containing large particles or highly corrosive water. The unit is durable, simple to use and easy to maintain â&#x20AC;&#x201C; a reliable way to manage excess water.

ELIMINATING WATER DISPOSAL Instead of hauling your water off location evaporate it away at a fraction of the price

Gary Smith // gary.smith1150@gmail.com // 918.408.8449

HYDRO CONSTRUCTION Hydromulching and Land Reclamation Services Specializing in Oil and Gas Construction Projects

PRODUCTS AND SERVICES:

Hydromulching // Matting // Curlex // Erosion Control Blankets // Silt Fencing and Stakes // Seed, Grass, and Fertilizer

903.312.3815 // ryan@wemakegrassgrow.com

SHALE OIL & GAS BUSINESS MAGAZINE

!”

C H I L LY I C E

Don’t run short this summer. Call Chilly Ice

“PU

ICE?

NEED

CHILLY

PICK UP OR DELIVERY / 830.769.2020 / OILFIELDICE.COM Your certified and insured producer & supplier of ice and beverages in the Eagle Ford

SOUTHERN STEEL

CERTIFIED WELDERS / INSURED

FABRICATION SERVICES     

Plasma and laser cutting Product welding and assembly Industrial painting Engineering Custom design

WE SPECIALIZE IN:        

Custom gates Custom BBQ pits Fire rings Truck outfitting Heavy truck fabrications Mud tanks Open top tanks Pipe racks

1 0 0 7 W. S T A T E H W Y 9 7 SHALE OIL & GAS BUSINESS MAGAZINE

JOURDANTON, TX 78026

830.769.3700

IADC ACCREDITED INTRODUCTORY WELL CONTROL eLEARNING IN SPANISH & ENGLISH

PetroEd.com | +1 713.461.5200

Toggle the audio between Spanish and English during the learning session. Select the Spanish language option to alternate the script.

Welcome to the Team!

The oil industry is experiencing unprecedented growth and requires thousands of workers at various levels. PetroEd provides a fast-track approach to lucrative oilfield jobs.

Aprenda en Español

A growing number of oilfield workers speak Spanish as their primary language. PetroEd addresses this emerging dynamic by offering its best selling Introduction to Well Control eLearning course in a dual language format.

eLearning Your Way

Courses are now available on most popular mobile devices.

PetroEd® eLearning courses give students access to an interactive, rich-media learning program, and are accredited by the International Association of Drilling Contractors (IADC). Students who successfully complete the PetroEd Introduction to Well Control course will qualify for Introductory Level WellCAP® certification.

$12 per employee. Protect their financial freedom. HALO-Flight is a 501(c)3 Not for Profit Air Ambulance Service

Business Agreements now available: HALOFlight would like to extend coverage to your employees for an annual rate of $12 per employee household. What’s the bottom line? An average emergency helicopter transport exceeds $15,000. As a Guardian Member, if you or a member of your household require our service, your insurance (if any) would be billed and HALO-Flight would accept that as payment in full. It’s that simple! Contact Stephanie Knox, Marketing Director stephaniek@haloflight.org 361.265.0509

Halletsville

Bay City

Cuero Karnes City

Jourdanton

Edna 45 mins.

Tilden

Cotulla

Beeville

30 mins.

George West Sinton Alice San Diego

Rockport 15 mins.

Corpus Christi

Kingsville

Laredo Hebbronville Falfurrias

Sarita

Service Area

26 County coverage

SHALE OIL & GAS BUSINESS MAGAZINE

Ind $25 w li de

"Let us be your biggest fan"

Port-A-Cool速 evaporative cooling fans are environmentally friendly and are the healthiest way to cool!

GEM Cooling Texas is committed to excellent customer service and product delivery. Our customer base includes the Eagle Ford Shale, as well as the Texas and Oklahoma oilfields, and all points beyond. Our Port-A-Cool速 showroom and full service facility is centrally located in Northeast San Antonio where you can experience the Port-A-Cool速 Islander and all of the cooling fans used for personal and industrial locations.

Authorized Port-A-Cool速 Distributor

P: 210.827.1994 / F: 832.553.3029 / E: gcgem@live.com / www.gemcoolingtx.com

SHALE LODGING OFFERS THE COMFORTS OF HOME STAY WITH US

FEEL THE DIFFERENCE

Locations: Pleasanton TX, Three Rivers TX & Hobbs NM For more information & reservations :

210-885-9774

Shale Lodge Pleasanton 2007 2nd Street, Pleasanton, TX 78064, Tel: 830-569-2800 Shale Lodge Three Rivers 2569 US HWY 72 W, Three Rivers, TX 78071, Tel: 361-786-1100 NOW OPEN Shale Lodge Hobbs 100 W. Taos, Hobbs NM 88240, Tel: 575-964-8525

http://shale-lodging.com 86

SHALE OIL & GAS BUSINESS MAGAZINE

Coming Soon: Odessa

OIL AND GAS SUPPLIES Hydrometers // Thermometers Woodbacks // Lufkin Tape Many more products available 17460 IH 35N 160 #394 Schertz, TX 78154 (210) 823-3181

FAST DELIVERY

REBECCA HOWLAND Texas Energy Advantage Resources rhv@txenergyadv.com

SHALE OIL & GAS BUSINESS MAGAZINE

OIL & GAS BUSINESS MAGAZINE

FOR ADVERTISING INFORMATION PLEASE CONTACT

KYM BOLADO

210.240.7188 kym@shalemag.com

// THE CE GROUP’S JANET HOLLIDAY: AT THE TOP OF HER GAME //

// MARATHON OIL’S JEFF SCHWARZ: WILDCATTER OF THE YEAR //

GOV. RICK PERRY WELCOMES SHALE MAGAZINE | HALLIBURTON BREAKS GROUND IN SAN ANTONIO

SHALE SHALE SHALE SHALE SHALE BAKER HUGHES: PUTTING VETERANS TO WORK // AFRICA ODYSSEY: SAFARI ADVENTURE

OIL & GAS BUSINESS MAGAZINE

M A Y. J U N E 2 0 1 4

SEN. CARLOS

URESTI:

COMMISSIONER

DAVID PORTER

Opportunities Abound in South Texas

A BRIGHT FUTURE WITH NATURAL GAS // PAGE 24

// PAGE 32

REGINA MELLINGER

OF PRIMARY SERVICES Staffing Solutions with Energy

WILDCATTER

GLENN McCARTHY

// PAGE 12

AN AMERICAN ORIGINAL

OIL & GAS BUSINESS MAGAZINE

MARCH.APRIL 2014

ConocoPhillips SHAPING TOMORROW

DIGITAL ENGINEERS

SETTING THE STANDARD

OIL & GAS BUSINESS MAGAZINE

NOVEMBER.DECEMBER 2013

FIRST ANNUAL STEER EAGLE FORD EXCELLENCE AWARDS

PEMEX:

BIG CHANGES IN

MEXICO

CHEMISTRY AND COMMITMENT

From Small Town to Boom Town

PLEASANTON CHIEF OF POLICE RONALD SANCHEZ WEIGHS IN

CATCHING UP WITH KEVIN FOWLER

THE CREWMEN AT WEATHERFORD

OIL & GAS BUSINESS MAGAZINE

SEPTEMBER.OCTOBER 2013

MAN ON FIRE

TEXAS OLIVES IN THE EAGLE FORD SHALE

SEAFOOD, SUSHI AND SURFING

LEADING THE WAY

// PAGE 60

A WORLD-CLASS LEADER

BHP BILLITON’S

ROD SKAUFEL

HALLIBURTON’S

PAUL SHEPPARD

// PAGE 16

// SHALE CELEBRATES ONE-YEAR ANNIVERSARY //

SHALE Oil & Gas business magazine is an industry publication that showcases the significance of the South Texas petroleum and energy markets.

SHALE’s mission is to promote economic growth and business opportunity that connect regional businesses with oil and gas companies. It supports market growth through promoting industry education and policy, and it’s content includes particular insight into the Eagle Ford Shale development and the businesses involved. Shale’s distribution includes industry leaders and businesses, services workers and entrepreneurs

J A N U A R Y. F E B R U A R Y 2 0 1 4

GIVING BACK

WTI, BRENT AND THE TEXAS PETRO INDEX

FACTS VS. FICTION FRACKING AND WATER USE | SIMPLY AMAZING SENDERO RANCH

SHALE OIL & GAS BUSINESS MAGAZINE

THE FUTURE OF PEMEX AND MEXICO

BRAD LOMAX

LEADER OF THE PACK

TEXAS RAILROAD COMMISSIONER

DAVID PORTER ON THE MOVE MAYOR NELDA MARTINEZ AND THE CITY OF CORPUS CHRISTI

Living the American Dream

ROD LEWIS

EXCLUSIVE COVERAGE: WOMEN’S ENERGY NETWORK AT UTSA

HEAVEN IN THE HILL COUNTRY FREDERICKSBURG’S ULTRA-EXCLUSIVE BOOT RANCH

TEAM PLAYER

MUD ENGINEER MIKE MCANDREW

BE PREPARED

HOW TO HANDLE WORKPLACE CATASTROPHE EIA’S ANNUAL INTERNATIONAL ENERGY OUTLOOK

LIVING THE HIGH LIFE SINGER/SONGWRITER CHARLIE ROBISON

connect. share ideas. discuss.

OIL & GAS BUSINESS MAGAZINE

http://www.linkedin.com/company/shale-oil-&-gas-business-magazine

Onshore - Offshore - Subsea Tube Lasers - Code Welding DNV & ABS Certified

Laser Cut Perf Guns

Laser Cut

Rig Handrails

Skids & Enclosures

Fab, Machine, Paint, & Deliver - Turnkey Overcapacity? Let Us Help

830-282-0858 OceanFab.com

In-House Delivery to Eagle Ford - Permian - GOM

Locations:

San Antonio • Houston • Longview • Galveston • Forth Worth • Port Isabel • Port Fourchon • Mobile • Pensacola

WWW.EAGLEFORD.ORG

EAGLE FORD NEWS is dedicated to sharing news, information, events, jobs, resources, opinions and conversations related to the Eagle Ford Shale. We have the largest Facebook page dedicated to Eagle Ford, where we encourage two way communication from our fans and members. www.facebook.com/EagleFord You can also join our conversations on LinkedIn and Twitter

News where you get to participate. SHALE OIL & GAS BUSINESS MAGAZINE

SHALE COVER PARTY OIL & GAS BUSINESS MAGAZINE

CELEBRATING JULY/AUG ISSUE

featuring

ARTURO HENRÍQUEZ

chief procurement officer of

PEMEX

OIL & GAS BUSINESS MAGAZINE

IF YOU WOULD LIKE TO ATTEND, PLEASE CONTACT ASHLEE@SHALEMAG.COM TO RECEIVE AN INVITATION 90

WWW. S H A L E M A G . COM

SHALE OIL & GAS BUSINESS MAGAZINE

South WeSt PierS PUMP UNIT FOUNDATION INSTALLATION SPECIALIST

Deep Foundations Resist Soil Shifting

Cooling Tower Installed on Helical Piers

• Engineered Foundations for Oil Pumping Units Approved by Pump Unit Manufactures

Exclusive Authorized Dealer & Installer of

• Rapid Installation/Removable/ Reusable

South West Piers, LLC 325 County Rd. 418 Stockdale, TX 78160

Dale Bush (210) 863-2278

Cass Ringelstein (210) 885-0902 cass@alamohydrotesting.com

David Bloemer (210) 723-7285 david@ alamohydrotesting.com SHALE OIL & GAS BUSINESS MAGAZINE

THE PERFECT MIX OF BUSINESS & PLEASURE The Palm has proudly been serving Prime Steaks in Texas for over 30 years. Our philosophy is simple. Treat guests like family, serve great food and always exceed expectations. Join us for lunch, dinner or your next private event. Dallas 701 Ross Ave. 214.698.0470

San Antonio 233 East Houston St. 210.226.7256

thepalm.com

SHALE OIL & GAS BUSINESS MAGAZINE

Houston 6100 Westheimer Rd. 713.977.2544