SHALE Magazine March/April 2018 by SHALE Oil & Gas Business Magazine

SHALE MAGAZINE

MARCH/APRIL 2018

WELCOME TO “SAUDI TEXAS,” AKA THE PERMIAN BASIN

MANAGING NATURAL RESOURCES IN THE EAGLE FORD EMPLOYMENT DECISIONS IN THE AGE OF SOCIAL MEDIA WHAT TO WEAR TO WORK

PARSLEY ENERGY: UNCONVENTIONAL, RESOURCEFUL & IN TRANSITION

SHALE PLAYS UPDATE

SHALE RECOGNIZES: PREMIER ORGANIZATIONS SERVING TEXAS

TRUMP ADMINISTRATION’S EPA OVERHAUL GOOD FOR THE ENERGY INDUSTRY

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CONTENTS FEATURE

Premier Organizations: Serving Texas

COVER STORY

Parsley Energy is an unconventional energy company operating and excelling in the Permian Basin. From the management team, currently in an unusual transition, to the location of the company headquarters, Parsley Energy is far from conventional. However, few companies are as wellpositioned for continued success into the future, begging the question: “Is it actually better to be conventional or to forge your own unique path?”

INDUSTRY

Driving Growth with Policies that Support Our Most Vital Resources

POLICY

The Tax Plan's Impact on Oil and Gas (So Far)

COVER AND TABLE OF CONTENTS PHOTOS BY DARREN CARROLL

INDUSTRY

30 Shale Play Short Takes 32 Welcome to "Saudi Texas," aka the Permian Basin

34 Global Shale Update 36 Resource Management and Common Sense

38 Department of Interior Advance Robust Five-Year OCS Leasing Program

40 Managing Natural Resources in the Eagle Ford

POLICY 46 Power Generation Game of Thrones 48 Trump Administration's EPA Overhaul Good for the Energy Industry

BUSINESS 52 Employment Decisions in the Age of Social Media

COMMUNITY 58 Mental Health Discussion Needs to Take Place Following Florida Mass Shooting

LIFESTYLE 62 What to Wear to Work 64 Running on Empty: Connecting the Oil and Gas Industry with Women's Health

SOCIAL 67 SAPA February Luncheon 68 WEN Houston Hosts Recent Events 70 Design Your World STEM Conference for Girls

BUSINESS

What Does "Ozone Nonattainment" Mean for San Antonio and the Eagle Ford?

COMMUNITY

NIOSA: A Night of San Antonio Culture

LIFESTYLE

Beautify for Confidence

SOCIAL

SHALE's January/February Cover Party MARCH/APRIL 2018  SHALE MAGAZINE

ADVISORY BOARD VOLUME 5 ISSUE 2 • MARCH/APRIL 2018

Omar Garcia / Senior Advisor As President and CEO of the South Texas Energy & Economic Roundtable (STEER), Omar Garcia is an expert on business opportunities associated with the Eagle Ford Shale. He works with the oil and gas industry, local officials, community members, regional stakeholders, educational institutions and economic development organizations to ensure that the oil and natural 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 majors in international business and Spanish. In 2010, Gov. Rick Perry appointed Garcia to the Texas Economic Development Corporation.

shana robinson Shana Robinson is currently the Chief of Sales & Growth, Baptist Health System (BHS) for the Tenet San Antonio Market. Robinson is a graduate of The University of Texas at San Antonio, receiving her Bachelor of Liberal Arts degree. Robinson joined the Baptist Health System in January 2007. Her years of experience in sales, physician relations, business development, community service and marketing have been fundamental to her success in the development and implementation of wellness programs for the Baptist Health System. Robinson’s most recent challenge and success has been the development and initiation of the business-tobusiness programs for BHS, which encompass services such as healthcare screenings for athletes and on-site clinics, which assist participating employers in reducing healthcare costs by providing on-site health services for employees.

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 SME and the Component 1 Team Leader for the Azerbaijan Competitiveness and Trade project. Tunstall also served as an Advisor Relations Executive at ACS and was the founding Cochair for the Texas chapter of the International Association of Outsourcing Professionals. He has published a business book titled 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 2005, he completed a long-term assignment in Afghanistan, where he was Deputy Chief of Party for a central bank modernization project. In 2006, he taught Ph.D. candidates in a business and government seminar at The University of Texas at Dallas.

SHALE MAGAZINE  MARCH/APRIL 2018

KYM BOLADO

PUBLISHER / CEO CHIEF FINANCIAL OFFICER Deana Acosta CHIEF OPERATING OFFICER Lauren Guerra EDITOR David Blackmon ART DIRECTOR Elisa G Creative COPY EDITOR Audra Gorgiev VICE PRESIDENT OF SALES & MARKETING Joyce Venema ACCOUNT EXECUTIVES Michelle Mata, Matt Reed, Cheyenne Williams ONLINE CONTENT MANAGER Fernando Guerra SOCIAL MEDIA DIRECTOR Courtney Boedeker CORRESPONDENT WESTERN REGION Raymond Bolado CONTRIBUTING PHOTOGRAPHER Darren Carroll CONTRIBUTING WRITERS Jeanne Albrecht, Leslie Beyer, David Blackmon, Kelli Church, Beth Everage, Omar Garcia, Peter Hall, Annette Idalski, Bill Keffer, Sid Miramontes, Kelly Warren Moore, Jackie Stewart, Barbie Taylor, John Tintera, Thomas Tunstall, Ph.D, Danielle Turcola, Amanda Vu STAFF PHOTOGRAPHER Malcolm Perez EDITORIAL INTERN LeAnna Castro

www.shalemag.com For advertising information, please call 210.240.7188 or email kym@shalemag.com. For editorial comments and suggestions, please email lauren@shalemag.com. SHALE MAGAZINE OFFICE: 5150 Broadway St., Suite 493, San Antonio, Texas 78209 For general inquiries, call 210.240.7188. Copyright © 2018 Shale Magazine. All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.

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PUBLISHER’S NOTE

AS WE GET INTO THE FULL SWING OF 2018,

it seems as though the oil market has stabilized somewhat and there is collective hopefulness that prices will remain the same — or better yet, even increase slightly. This timely growth and stabilization has surely helped spur an increase in new rigs going online and the rehiring of a talented workforce in this sector. In our March/April 2018 edition of SHALE Oil & Gas Business Magazine we are very excited to feature Parsley Energy Inc.’s Bryan Sheffield and Matthew Gallagher on the cover. As recently announced, Parsley Energy is undergoing a very interesting leadership transition and has given SHALE Magazine an exclusive opportunity to provide our readers with insight into the company’s background, the decision of transitioning leadership and its future plans. The theme of this issue is centered around resources. There are many resources to consider in business (and oil and gas), including human resources (employees), natural resources, technological resources, informational resources and many others. In learning about Parsley Energy’s business, it becomes very apparent that the use and acknowledgment of a company’s resources can mean the difference between success and failure. Being cognizant of their resources has been a positive action for Parsley Energy, as evident by their flourishing business. We were fortunate to meet Bryan’s father, Scott Sheffield, Chairman of the Board of Pioneer Natural Resources, and share with our readers a cover story on his career and impressive company in the 2015 July/August issue. It has been quite extraordinary to compare and contast the qualities of these two men and their shared ability to maintain and grow two highly successful oil and gas companies. While I’m on the subject of talent and transitions, I am very excited to announce a change from within our own ranks. We have been fortunate to have wonderful talent working within our

organization for some time now. With that in mind, it should not come as a surprise that some of our current staff are receiving promotions at SHALE. I am pleased to announce that Lauren Guerra has been promoted to Chief Operating Officer (COO) of SHALE Magazine. After many years at SHALE Magazine, combined with a thorough display of leadership skills, creativity and publishing industry knowledge, we are ecstatic to know that her expertise in her new role will raise the bar of excellence for us all. The Editor position at SHALE — another critical role for the success of our publication — was assigned to David Blackmon, a wellknown and highly respected oil and gas expert and writer/editor for SHALE Magazine. With many years of experience within the energy industry, we look forward to the in-depth discussion topics and areas of interest David will shed light on in his new role as SHALE's Editor. As you can see, many changes have been percolating at SHALE — and, thankfully, all are good thus far. In fact, there is another fantastic change headed our way, but this time it’s the “In the Oil Patch” radio program that will see some updates. If you’re a faithful listener of “In the Oil Patch,” we thank you for your support and continued interest. We are proud to tell you that the show is growing yet again. The weekly show will now be broadcast in syndication, and will be airing in the Dallas market on KRLD-AM 1080. We look forward to adding new market areas to our list of airing locations in the near future. The added market will bring the total potential listener pool of “In the Oil Patch” to more than 2.5 million listeners! More details on the added air times will be announced in the near future. In the meantime, make sure you tune in to KTRH-AM 740 on Sundays (8–9 p.m.) in Houston, and KSIX-AM 1230 on Saturdays (8–9 a.m.) in Corpus Christi, Texas. The show is simulcast on the iHeart radio app and available as a podcast on Soundcloud, iTunes, TuneIn, Stitcher and the Google Play store. What a joy it has been to write this letter to you, a SHALE reader! I would like to close my thoughts by thanking our faithful readers and listeners for allowing us to share great stories, including vital information, future forecasts and critical updates on the energy industries and business in the United States.

KYM BOLADO

CEO/Publisher of SHALE Magazine kym@shalemag.com

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 FEATURE

Premier Organizations: Serving Texas Special to SHALE

t’s long been a mission at SHALE Oil & Gas Business Magazine to promote the good works of area nonprofit and not-for-profit organizations. We have a unique view of the community work done by many of these charitable organizations. Accordingly, it became obvious to us that we have an opportunity to share these organizations’ missions with our readers and give recognition to the hard work and dedication the volunteers selflessly provide to bring these organizations to life in the pursuit of helping others. The organizations we have awarded our Premier Organization Award to are specific to the energy industry. Each of these groups have in some way endeavored to benefit energy professionals, families and the communities in which energy employees live and work. We have unearthed the best-of-the-best in many Texas metropolitan areas, but undoubtedly there are many other organizations doing wonderful work in Texas and throughout the U.S. With time, we hope to feature many more groups and their efforts. It’s our great honor to share these organizations with SHALE readers. There is nothing greater or selfless than the heart of a volunteer. Help us to recognize these supportive and charitable organizations and their members. Corpus Christi: HALO-Flight

Mission: HALO-Flight’s mission is to provide emergency medical transport for critically ill or injured persons that require immediate attention at a medical or trauma facility within our South Texas service area. Emergency assistance is provided to all persons, regardless of their ability to pay. We chose to highlight this organization in the Corpus Christi area because of the sheer importance of its mission. Not only is the organization helping those in critical need, but they do so without the promise of payment for their service. HALO-Flight began offering emergency air transportation in 1987. Since that time, HALO-Flight has helped thousands of critically ill and injured patients to receive treatment quickly and safely. When minutes can mean the difference between good and bad outcomes, HALOFlight has certainly made a great impact in Corpus Christi and the surrounding region.

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Dallas: Society of Women Engineers (SWE)

Mission: The Society of Women Engineers (SWE) strives to engage and support women to achieve full potential in careers as engineers and leaders, expand the image of the engineering profession as a positive force in improving the quality of life, and demonstrate the value of diversity in the workforce. SWE, founded in 1950, is a notfor-profit educational and service organization. SWE is the driving force that promotes engineering as a highly desirable career choice for women. SWE empowers women with aspirations to succeed and advance, and be recognized for their life-changing contributions and achievements as engineers and leaders. SWE supports the recruitment, retention and advancement of women in engineering through career resources, professional development and one-to-one networking opportunities. One of SWE’s objectives is to inform young women, their parents, counselors and the general public of the qualifications and achievements of women engineers, and the opportunities that are open to them to become engineers themselves. SWE Outreach programs impact tens of thousands of K–12 students each

year. The Dallas section of SWE sponsors two large K–12 Outreach events per year, dubbed Design Your World – STEM Conference for Girls. This program has reached and inspired over 1,500 girls since 2012. We chose to honor this organization because of its work in the community and within the engineering industry to promote diversity, inclusion and growth. This is a very active organization doing really great work in their community. Houston: Women’s Energy Network (WEN)

Mission: The Women’s Energy Network (WEN) is an international organization of professional men and women who work across the energy value chain. Their mission is to develop programs to provide networking opportunities and to foster career and leadership development of our members who work in the energy industries. WEN Houston was the founding chapter, which eventually gave rise to the creation of other chapters around the world, developing into an international organization. This group focuses on men and women in the energy industry, providing them with professional growth opportunities and fostering the development of new skills. WEN Houston regularly hosts

luncheons for members and guests. The luncheons feature speakers who are exceptional leaders in energy or other relevant businesses. Over the years WEN has added happy hours, leadership seminars, webinars and mentoring groups to its list of member benefits. WEN is very active in the community and provides its members a variety of opportunities to give back through volunteering and charityoriented events. Permian Basin: Association of Desk and Derrick Clubs (ADDC) Midland

Mission: The Association of Desk and Derrick Clubs (ADDC) Midland aims to enhance and foster a positive image to the global community by promoting the contribution of the petroleum, energy and allied industries through education, using all available resources. ADDC is a large organization with chapters spanning the United States and into Canada.

This organization emphasizes providing insight and knowledge on energy topics to its members and the community. The organization is broad in that members can be working, studying or simply interested in the petroleum or energy industries. The organization serves as a credible source, an educator and a facilitator of the sharing of information to improve public knowledge of this crucial industry. ADDC serves nearly 1,500 individuals employed in or affiliated with the petroleum, energy and allied service industries. There are 48 ADDC clubs in 7 regions throughout the United States and Canada. The Midland chapter of ADDC is actively promoting the energy industry and education programs in their region. San Antonio: San Antonio Pipeliners Young Professionals Organization (YPO)

Mission: The primary goal of the Young Professionals Organization (YPO) is to provide a

unique, collaborative forum to network, socialize and develop camaraderie among young energy and midstream professionals in the San Antonio and surrounding areas. The YPO seeks to develop and enhance relationships among its peers through a unique blend of various activities, such as professional and personal development sessions, field trips, community service activities and happy hours. The YPO is aligned with the San Antonio Pipeliners Association (SAPA) to provide a forum for young energy professionals to make new contacts, and grow professionally and socially. There are many organizations available to assist in the growth of skills and knowledge, but there is also a need in every young professionalâ&#x20AC;&#x2122;s career to meet new people and broaden their reach through networking. The YPO is also active in supporting SAPA and hosts several events each year, including the Fall Midstream Open Golf Tournament and the Spring Midstream Classic Clay Shoot. In addition to the amazing networking opportunities the group facilitates throughout the year, the YPO is passionate about giving back to the San Antonio community through various volunteer initiatives.

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cover story

UNCONVENTIONAL, RESOURCEFUL & IN TRANSITION BY: DAVID BLACKMON PHOTOS BY: DARREN CARROLL

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KEEPING AUSTIN WEIRD, THE OIL AND GAS WAY The United States of America’s landscape is dotted with what people past and present have referred to as “oil towns.” However, the premier oil town in the U.S. is, of course, Houston, where a good portion of the domestic oil and gas industry is headquartered, and which is within 50 miles of where a quarter of America’s oil production is refined and turned into gasoline, diesel and various other petroleum products. Other cities that are considered to be “oil towns” today or have been in times past include places near and far: Dallas, Fort Worth, Tyler, Kilgore and Midland in Texas; Oklahoma City and Tulsa in Oklahoma; Bakersfield, Santa Barbara and Los Angeles in California; Shreveport and Baton Rouge in Louisiana; Denver; Casper, Wyo. Farmington, N.M.; Helena, Mont.; Bismarck, N.D.; Pittsburgh; Cleveland; Traverse City, Mich.; and Anchorage, Ala. If you asked anyone familiar with the industry’s history and current events to name some “oil towns,” they’d likely recall a few places mentioned above and perhaps other cities that have a history with this 159-year-old American industry. But chances are, you could ask 100 such people — or 1,000 — and not one would include the city of Austin, Texas, on their list of “oil towns.” Austin, after all, is that “blue” town in the middle of a staunchly “red” state. It’s sometimes referred to as the People’s Republic of Austin, that place where residents all want to keep “weird” (“Keep Austin Weird” is the city’s semi-official motto). It’s known as a large college town whose main forms of commerce often seem to be music festivals and Texas Longhorn football, with an occasional Formula One auto race tossed into the eclectic mix. Even though the state’s Permanent University

SHALE MAGAZINE  MARCH/APRIL 2018

Fund has taken in tens of billions of dollars in oil and gas royalties for almost a century and used it to subsidize tuitions and fund infrastructure at the University of Texas, and even though the original wooden Santa Rita No. 1 well derrick (which started it all) holds a place of honor on the UT campus, no one in their right mind would ever think to refer to Austin as an “oil town.” It’s a college town, a music town, a government town, a rapidly growing center of the booming Texas high-tech industry. But an “oil town?” No. And yet, if you want to visit the headquarters of one of the most dynamic, fastest-growing and important oil and gas producing companies in the booming Permian Basin of West Texas, you have to head to downtown Austin to find it. “We relocated our headquarters to Austin several years ago,” says Bryan Sheffield, the founder and current Chief Executive Officer of Parsley Energy Inc. “Being in Austin has really helped us attract and retain talented employees and made Parsley Energy a preferred workplace in the industry.” “We love being in Austin. It’s a dynamic, vibrant city that fits the ethos of our company. We’re very connected to the community in a number of ways,” says Matthew Gallagher, the company’s current Chief Operating Officer who was recently named to succeed Sheffield as CEO in 2019. “And the academic presence is certainly helpful in terms of a strong pipeline of technical employees, but also more broadly in terms of an innovative and intellectual context for considering and advancing new ideas,” Gallagher added. From its inception in 2008, Parsley Energy was a Midland-based company, which made sense given that its entire asset base was and still is focused in the vast Permian Basin of West Texas. But recruit-

ing staff — both experienced workers and college graduates — can sometimes be difficult in Midland, especially during the industry’s down times, so Sheffield made the decision to move the company’s headquarters, and about half of the company’s workforce, to Austin, while still maintaining a large operations office in Midland. “We continue to have a strong presence in Midland and will always have strong ties to Midland as a family and as a company.” Indeed, Parsley Energy didn’t just move its corporate office to Austin, it has also become a fully invested partner in the city’s culture and community, as evidenced by

the announcement in mid-February that all 50 of the Austin Police Department’s bicycle officers would be outfitted with new safety gear, thanks to a donation from the company. So, Austin might seem like a “weird” place to find the headquarters of one of the largest producers in the Permian Basin, but that’s just in keeping with the local culture. And for Parsley Energy, being in the state’s capital makes all kinds of sense, because there is nothing at all conventional or boring about this company.

A MULTIGENERATIONAL OIL FAMILY Despite being born into what Texans like to call an “oil family,” Sheffield did not

start out with the goal of running an oil company. Sheffield’s grandfather, Joe Parsley, was the “Parsley” half of Parker & Parsley, an oil and gas operator that drilled hundreds of Permian wells from the 1960s to the ’90s. His father, Scott Sheffield, is the now-retired long-time CEO of Pioneer Natural Resources, a highly successful independent producer that is also one of the most active producers in the Permian Basin. But Sheffield didn’t want to go into oil and gas right out of college. Instead, after obtaining his business degree from Southern Methodist University in Dallas, he moved to Chicago and became a commodities futures trader. As he told the Washington Post in 2014, “I never dreamed of becoming an oilman. It’s just this magnet that pulled me back.” When we interviewed Sheffield in early February, he expanded on the oil family theme. “You know what’s funny is [that]

MARCH/APRIL 2018  SHALE MAGAZINE

I grew up around my grandfather Joe Parsley, who was an engineer, and also Hugh Sheffield, my father’s father who was also an engineer. He [Hugh Sheffield] spent much of his career overseas in Iran. I actually have a picture of him hanging on my wall from I think in the late ’60s, and he’s shaking the hand of the shah of Iran. It’s a really cool photo.” Bryan had asked his father, Scott Sheffield, to leave him that photo in his will, but Scott decided to make that gift to his son when he retired as CEO of Pioneer. Bryan chuckles at the memory. “That was the one thing I wanted if he ever passed — I didn’t know he was going to give it to me when he retired. My point is, it’s a long history, a family history in engineering, and I was the one that graduated with a finance degree.”

By 2006, Sheffield returned to Dallas to learn the oil business as an employee at Pioneer. It was an on-the-job education that built on a foundation of experiences he had gained while growing up. “I took a different path to the oil business than both of my grandfathers and my father,” Sheffield says, “but I think my observations in and around both of my grandfathers and my father, and after he built his company, have really helped. I remember as a kid, 12 years old — he’d drag me to these luncheons on Saturdays and Sundays while he’s with his executives’ board, working on the deals. Through time, in high school, or even in junior high, I was interning in the summers at Parker & Parsley. And then at SMU [as an] undergrad, I interned at

AND NOW, OVER THE COURSE OF 2018, GALLAGHER WILL GRADUALLY TAKE OVER THE REINS OF THIS COMPANY THAT HAS JUST EXPERIENCED THIS PERIOD OF RAPID GROWTH, AS SHEFFIELD TRANSITIONS INTO THE ROLE OF FULL-TIME EXECUTIVE CHAIRMAN FOR A YEAR AND THEN CHAIRMAN OF THE BOARD Pioneer. So, I guess I just didn’t really appreciate oil and gas at the time.” But he was learning about the industry, forming a basis of understanding and judgment that would play crucial roles in his future success. In 2006, the literal opportunity of a lifetime came Sheffield’s way from his grandfather, Joe Parsley, although initially, it might not have seemed like it. Several years in the commodities trading business convinced Sheffield that he had not yet found his life’s calling. At the time, he was living as a trader in Gibraltar, but as he tells it, he wasn’t exactly setting the world on fire. Sheffield says his income never exceeded $100,000 per year: “I was a scratch trader.” At that time, Sheffield’s father was advising

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him to return to SMU to obtain an MBA. But his grandfather had another idea. He offered to bring Sheffield out to Midland to become the contract operator for about 100 vertical wells that had been drilled into the Spraberry Formation decades before, and were still producing some oil. By this point, they were stripper wells, each producing an average of about five barrels of oil per day, but they would provide Sheffield a foundation in the business from which to build. Sheffield laughs at the memory. “When he said that I didn’t even know what any of that meant. Because I’m reading about [Alan] Greenspan and interest rates and how to construct hedges. So, I called my father and asked, ‘What’s he talking about — operations — I don’t know what that means? You think he’s asking me something I could build off of?’” Scott Sheffield obviously saw the potential in the opportunity, and advised his son that it might be smart to spend some time at Pioneer, immersing himself in learning the business before trying his hand as an operator. Bryan agreed, and soon made the trip across the Atlantic back to Dallas. Once ensconced at Pioneer, Bryan received a whirlwind of onthe-job training. “I started out at Pioneer focusing right away on accounting — understanding joint-interest billing and revenue — and then it was on to reservoir engineering to completions and the drilling department. I then went out into the field for about six months, spent time touring units and the drilling rigs, riding around with the foreman for the area. And then the Land department was the last part of my two-year stint,” Sheffield recalls. Sheffield gives much of the credit for his learning experience to one of the foremen he spent time with, Paul Treadwell. “Paul Treadwell was the one out of all the foremen that I rode with, the only one that would take out a wellbore schematic and walk me through it.” The wellbore is a paper schematic showing what every section of the borehole looks like. “Every well has a different program, with how deep you set the cement, how deep the well is drilled, et cetera. And every well we visited, he went into the files and he brought out the schematic. He didn’t have to do that; he was the one foreman that enjoyed teaching me about what was going on in every well.” That eagerness to share and help guide fellow coworkers impressed Sheffield, and he resolved to instill that same teaching attitude into the culture of the company he eventually built. Treadwell himself was so impressed with his “student” that he soon left Pioneer to work with Sheffield to found Parsley Energy. “That’s what I wanted,” Sheffield says, “I wanted to start the culture off right, where everyone that I would hire would teach, not close the door and worry about their own career and office politics more than sharing information with the person down the hallway.” That cultural

spirit of sharing, teaching and continuous improvement has been a key to Parsley Energy’s ability to retain high-quality people during the company’s recent period of rapid growth and the relocation of the company’s headquarters to Austin. When he left Pioneer in 2008 to begin operating those 100 stripper wells, Sheffield quickly became aware of his grandfather’s huge shoes he had to fill in the Midland/West Texas community. “One thing that was very important that I saw when I first got to Midland is that I had a reputation to uphold — my grandfather established that reputation, and his son-in-law Scott Sheffield continued it. I quickly realized that the most important thing is holding that reputation in Midland with all the mineral owners and surface owners, leasehold owners, working interest owners and investors. So that was real, the pressure, you know, and I told myself that you just need to be yourself and know that you were raised right and you know you’re good people, right?” Given where Sheffield’s company is today, that self-advice appears to have worked out pretty well.

CARPE POTESTATEM (SEIZE THE OPPORTUNITY) By 2009, companies began to apply the horizontal drilling and hydraulic fracturing technologies that have unlocked natural gas from shale formations throughout the country and increased oil production from formations such as the Eagle Ford Shale in South Texas and, later, from an increasing number of oil-containing shales in the Permian region. It suddenly became apparent to Sheffield that those hundred 2-barrel-per-day stripper wells he was operating sat on acreage that was atop an oil-based bonanza — specifically, a very sweet spot in the behemoth Wolfcamp Shale Formation. During this same time, the price of crude oil had plummeted from a high of $147 per barrel to $35, and acreage in the Permian, along with drilling costs, had become quite cheap. With his trader’s instincts kicking in, Sheffield smelled an opportunity and began to buy up acreage and drilling rights adjacent to the lands on which he was already operating. To raise capital for his early acquisition and drilling efforts, Sheffield turned to family and friends, as his grandfather had done 40 years before. One friend, Chris Kayem, whose family owned company, Tex-Isle Supply, Inc., had done business with Joe Parsley and Scott Sheffield since the 1970s, told Forbes Magazine in 2014 that “anything Bryan was going to do, we wanted to be involved with.” Obviously, the grandson had met his goal of maintaining the reputation that his forebears had established.

“BEING IN AUSTIN HAS REALLY HELPED US ATTRACT AND RETAIN TALENTED EMPLOYEES AND MADE PARSLEY ENERGY A PREFERRED WORKPLACE IN THE INDUSTRY.” Kayem initially put up $500,000 in exchange for a 10 percent stake in Sheffield’s new company, and subsequently poured in millions to help fund the company’s early drilling projects. Parsley Energy was off and running. In large part due to his family background, Sheffield had lofty goals for his company: “I always told our employees that all we ever have to do is do 10 percent of what Pioneer has done. Those were our goals every year as we were getting started. And so, that’s how I measure myself, and I thought those were big goals — very, very big goals — starting out as a company.” Indeed, they were. Today, Pioneer Natural Resources is a company whose market cap exceeds $30 billion, and along with companies such as EOG Resources, Apache Corporation, Anadarko Petroleum and Noble Energy, is one of a handful of the largest independent upstream oil and gas companies in the U.S. It takes not only self-confidence but a real sense of audacity to have an initial goal of creating even 10 percent of what the management at Pioneer has created over the last several decades. And yet, Parsley Energy has not only met Sheffield’s initial goal, it has dramatically exceeded it. As of mid-February, Parsley’s market cap was in excess of $8.3 billion, more than

25 percent of Pioneer’s. Parsley had 16 active drilling rigs in the Permian as of December; Pioneer, 23 rigs as of February. While Pioneer is the single largest leaseholder in the Permian region with a King Ranch–sized 750,000 acres held, Parsley currently boasts a very substantial leasehold of 216,000 acres. Sheffield’s company has long since left that “10 percent of Pioneer” goal in the dust.

TAKING THE COMPANY PUBLIC Sheffield’s early lease acquisition efforts grew the company’s leasehold acreage up to more than 100,000, but as oil prices began to quickly escalate in early 2010, the price of acquiring new acreage and drilling and fracking wells also rose dramatically. To keep his company growing, Sheffield needed a new influx of capital, another major goal he achieved in 2014 by taking the company public through an initial public offering (IPO). That process led the self-confident Sheffield

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to experience a rare attack of nerves at the Howard Weil Energy Conference in March of 2014. The nervousness stemmed not from the fact that he would be discussing his company’s IPO but rather with who showed up unexpectedly to watch. “The first investor conference that I went to was at Howard Weil,” Sheffield says, smiling, “and I was very nervous to present because this is one of the largest gatherings for presentation for CEOs. So, I’m sweating a little bit and I’m about to go up right after John Hess with Hess Petroleum, this 30-billion-dollar company. We’d just IPO’d; I’m 35 years old at the time. So, it’s pretty intimidating as it is, and then there’s this ‘tap tap’ on the back of my shoulder, and I look back and there’s my father,” he laughs. “It was my first time seeing him since we’d done the IPO,” recalls Sheffield. “They’re in Dallas, I’m in Austin. I don’t see them too much and all his lieutenants were right behind him, staring at me. So I say, ‘Dad, what are you doing here, shouldn’t you be in your one-on-one meeting?’ and he says, ‘No I’m here to see you present.’ Right then, they called my name to go up there and I didn’t know what to do. My face was totally white, and I didn’t know if I was going to throw up or what. I’ve done a lot of presentations before; the bigger the crowd the harder it gets. But when your father shows up to watch

you — that was hard.” “The only thing that I could do was just break the ice [and] say, ‘Everyone, I’m just letting you all know that my big competitor, my father, Scott Sheffield, is in the crowd watching me. This is amazing, I can’t believe he came to my first presentation.’ Everyone just started to laugh, and that broke the ice.” But, as Sheffield put it, “It was kind of nerve-wracking.” The IPO served its purpose, providing an infusion of capital that helped Parsley become one of the most active Permian operators in the market for acquisitions during the land rush years of 2015 through 2017. During that time, Sheffield and his team executed no fewer than four major acquisitions, with a total price tag of over $3 billion. Though the market for large transactions slowed during the second half of 2017, Parsley’s fourth-quarter 2017 investor presentation emphasized the fact that the company has continued to aggressively highgrade its positions by trading out of scattered properties with lower working interest ownerships into concentrated positions with higher working interests. These concentrated acreage positions, located in one of the Permian’s sweetest of sweet spots, played a big role in ensuring that Parsley Energy not only survived the oil price bust but was actually able to see substantial growth

from 2015 through 2017. “The IPO was welltimed against a backdrop of healthy oil prices and strong investor appetite for Permian Basin assets,” Sheffield says. “We used the capital we raised to jump-start our horizontal drilling program. Since then, we’ve grown production almost exclusively through the drill bit.” “The Permian is still the place to be,” he continues. “Everyone wants more Permian exposure, but there’s only so much to go around. We’ve been fortunate through a series of acquisitions to accumulate what we believe is a premier Permian acreage position in terms of both quantity and quality. We’ve always focused on core acreage on which you can drill highly economic wells across commodity price cycles. We made an early bet in the Southern Delaware Basin, and it paid off handsomely. We actually called our initial acreage position in the Southern Delaware the ‘Gallagher prospect’ because Matt [Gallagher] was a big advocate of the transaction, even though it was a real wildcard at the time.” Incoming CEO Matt Gallagher had just joined our conversation at that point (after concluding a meeting), and added, “That one turned out really well for us. We paid a few hundred dollars or so per acre a few years ago, and today acreage in the area transacts for many times that amount. But no one wanted anything to do with

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that area at the time. We saw something we liked and took a chance. There was a real risk [that] it would be money down the drain.” Gallagher goes on, “Our other acquisitions have been a lot different — focused on what we felt pretty confident was some of the best rock in the basin. Focusing on the best acreage has enabled us to drill very strong wells, and that has been the key to our production growth. We’ve grown production more than 15 percent per quarter since going public, which is a tremendous accomplishment.” The company’s assets today are exclusively based in the greater Permian Basin, divided between the Midland and Delaware Basins. The Permian Basin is an immense resource — DrillingInfo, Inc.’s CEO, Allen Gilmer, recently referred to it as “virtually inexhaustible, a nearpermanent resource” — but some industry observers are currently concerned that operators have spent the last two years drilling up all the prime sites in an effort to maintain cash flow during the period of low oil prices. We asked both Sheffield and Gallagher to address that concern. Gallagher spoke up first: “The Permian Basin is the premier oil field in the country. What makes it so distinctive is the presence of several distinct oil-bearing target zones, sometimes referred to colloquially as a ‘layer-cake’ of hydrocarbons. We have consistently focused on

portions of the Permian with the most ‘stackedpay’ potential, and even now are targeting new zones that are proving highly productive.” “High-grading is often overlooked. Everyone drills their best wells first,” Sheffield adds. “Unless you have a very deep inventory of highquality drilling locations, as does Parsley Energy, the wells drilled tomorrow may not be as productive as the wells drilled today.”

THE ART AND SCIENCE OF BUILDING AND KEEPING A QUALITY STAFF Building a company from scratch also requires simultaneously building a staff of people to run it. There is both art and science involved in knowing which disciplines to focus on first, the timing of making hires, and the ability to identify the right people who not only possess the technical skills to get the job done but are also good fits for the kind of culture you are trying to build. Sheffield talked earlier about his desire to build a staff filled with teachers. Fortunately, to achieve that goal, he was able to bring

one of his main teachers along with him. “There were just two of us at first — Paul Treadwell and me — and it was the most valuable education I ever received because we did it all,” Sheffield says. “We had to — from the office to the field. As the scope of the company expanded, we added one person at a time. It wasn’t like we had people banging on our door to join our little ragtag outfit. I recruited people I could trust; people who brought expertise but were willing to pitch in across the board. First, we needed operations. Then we needed land and leasing. Of course, we had to keep track of the money coming in and out. Then we needed to figure out how to get more money to invest. Eventually, we grew to the point that we needed all of the traditional corporate functions.” “Matt was one of the first [of a] handful of employees,” Sheffield continues, “and I’m really glad he was with us so early because he’s seen it all and we’ve experienced so many struggles and accomplishments together.” Gallagher agrees. “The Parsley culture was cultivated early on. We were all so close and we all had so much riding on the outcome. Clearly, it’s impossible to retain the exact same dynamic when you have hundreds of employees, but even today, we emphasize cultural fit when evaluating new hires. We look for capable people with a thirst for learning who demonstrate a

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sense of personal and collective responsibility.” A willingness to teach and collaborate, a thirst for learning, a sense of personal and collective responsibility — this is the kind of company culture that management must be able to build to facilitate the sort of rapid growth Parsley Energy has achieved.

AN UNCONVENTIONAL TRANSITION OF LEADERSHIP And now, over the course of 2018 Gallagher will gradually take over the reins of this company that has just experienced this period of rapid growth, as Sheffield transitions into the role of full-time Executive Chairman for a year, and then Chairman of the Board. We asked Gallagher to talk about the company’s near-term plan to rationalize its current asset base and focus on executing the abundant drilling opportunities within it. Will the company continue to look for significant acquisitions where it makes sense? “We probably have the longest inventory per share of our immediate peer group, maybe number two in the entire Permian Basin,” Gallagher begins, “so, no need for significant acquisitions at this point. We have an amazing team

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in place, and the top management has been together since pre-IPO. So, the plan right now is going to be more of the same with a little bit more of a lean toward the operational process, kind of a natural transition for our company’s model as well. “We went through the large acquisition phase and now we need to pull that value forward through the drill bit. If you do it in a more moderated way through the drill bit, we have a little bit of extra cushion on our cash flow and more stable, predictable cash flow from that point forward. So, it’s really a nice timing for the company to go into, at a point where we’re the tenth-largest producer of crude oil in the entire Permian Basin,” Gallagher says, concluding that this is the plan the company will continue to execute throughout the next few years. The company’s website mentions the fact that its asset base includes “abundant value yet to be unlocked.” We asked Gallagher to talk about how the process of unlocking that additional value works. “We completed wells in eleven distinct target intervals last year,” Gallagher begins, “and there are still several promising zones we’ve yet to test. The resource potential on our acreage is truly astonishing. We’re working hard to figure out how to extract as much as possible as efficiently and profitably as possible. This involves evaluating different well spacing configura-

tions, completion designs and target intervals. Our recent success in the largely undeveloped Wolfcamp C horizon in the Midland Basin is an example of unlocking value that was previously unrecognized.” The method of a planned, gradual transition of leadership in the CEO position is a process that appears to be increasingly common in the energy sector in recent years. So often in the corporate world, leadership changes are sudden events that cause a great deal of disruption throughout the entire organization. We asked Gallagher to share his views on the advantages of this planned transition process. “It is a real advantage, and sometimes companies don’t have that luxury and that ability,” Gallagher says. “We are just really fortunate that we do have such a healthy, productive relationship … that allows for that smooth transition to take place. The transition year gives me the chance to really walk in Bryan’s footsteps. I get to see it from his point of view and try to craft my own plan and approach from that perspective.” Gallagher talked about the differing skill sets he and Sheffield bring to the role of CEO. “Everyone who works with Bryan knows that he doesn’t get enough credit for his operational prowess — it’s really good. But I do think he’s probably the 60 percent kind of business VP– financial focused and 40 percent operationally focused. That will just probably be a little bit

of a shift to my background, which is probably about 60 percent operationally focused and 40 percent on the business/financial side. So, there will be a little bit of a shift. But overall, it’s really fortunate for a company to be able to have this nice healthy transition, and it will be a good time to just kind of take the best from both of us and to kind of mold that into the approach going forward.” Like Sheffield and Treadwell, Gallagher also came to Parsley after having spent years at Pioneer. We asked him how his experience at Pioneer helped prepare him for his new role at Parsley, and how it prepared him for managing the company through its recent period of rapid growth. “Where Pioneer is concerned, I couldn’t think of a better company or place to have started,” he begins. “At Pioneer, you know, you see around you people who have gone through tremendous growth and who have executed amazing, ambitious projects.” He pauses before continuing. “This will sound funny, but I think about times when I was with senior management at Pioneer and you’re kind of doubting your career and you’re ambitious and things are moving a hundred miles an hour. It’s seven o’clock at night and everybody is still working hard on an earnings release or some big project, but then to look around the room and see them pick up the phone to call their son and

help him work through homework assignments, you see the humanity and the focus on the individual and the people, and you know that was placed first at Pioneer.” “I got a lot of technical exposure there obviously, but I think just seeing that steadfast approach from their management team and then in the structure of family and just really helped you put things into the right perspective,” Gallagher points out. And of course, that all goes back to the kind of culture Sheffield and his management team have built at Parsley — a culture that Gallagher wants to continue to nurture and grow. One of the most striking things about this planned transition in Parsley’s CEO position is the amazing youth of the men who are executing it. Bryan Sheffield, as of this writing, is at a ripe old age of 39. Gallagher, meanwhile, is about to become the CEO of an $8 billion market cap company at the age of 35. These are not the conventional sort of ages one normally associates with this kind of corporate story. But, as we have seen, there is nothing conventional about the history of Parsley Energy, from its founding to its initial method of growth, then from its IPO to its two-year period of rapid growth, and even to the location of its corporate headquarters in the proudly weirdest city in Texas. When you boil the Parsley Energy story down

to its essence, you are left with these main themes: set aggressive goals and consistently exceed them, plan for opportunities and grab them when they are presented, instill a productive culture and bring in people who fit and will nurture it, and make sure there is a high degree of continuity in the senior management team to maintain and continue to grow it all. Few companies in the oil and gas industry have achieved the level of success experienced by Parsley Energy over the last decade. And, as we have seen, few companies are as well-positioned for continued success into the future.

About the author: David Blackmon is the Editor for Oil and Gas for SHALE Magazine. He previously spent 37 years in the oil and natural gas industry in a variety of roles – the last 22 years engaged in public policy issues at the state and national levels. Contact David Blackmon at david.blackmon@shalemag.com.

MARCH/APRIL 2018  SHALE MAGAZINE

INDUSTRY

Driving Growth with Policies that Support Our Most Vital Resources Special to SHALE

SEVERAL FACTORS DRIVE THE SUCCESS OF AMERICA’S OIL AND GAS INDUSTRY. TODAY, FOR INSTANCE, TECHNOLOGY AND INNOVATION ARE CENTRAL TO OUR GLOBAL ENERGY LEADERSHIP. But ultimately, two extraordinary resources are at the heart of our industry’s strength — our skilled workforce and America’s tremendous natural resources. The future growth and prosperity of our industry depend on how we develop these essential resources. We need both increased people-power and expanded access to energy resources to drive growth and continue bringing the benefits of reliable, affordable energy to our nation. Our industry is ready to make the investments and do the work to develop our workforce and natural resources — but we also need public policies at all levels of government that support our efforts. Building a Workforce for the Future The oil and natural gas industry currently supports about 10.3 million jobs and could add another 1.9 million jobs through 2035. Our growing workforce will represent the diversity of our nation. Over the next two decades, hundreds of thousands of men, women and minorities will find employment with energy companies. We are also primed for the future with the number of younger professionals on the rise. More than one third of the energy workforce is made up of millennials — and that level will increase to 41 percent by 2025. Filling future energy positions will be vital to our industry’s success — and a large portion of these jobs will require education and training in STEM (short for science, technology, engineering, and math) disciplines. Many energy companies are already dedicating resources to advancing STEM education through a variety of programs in our schools and communities. ExxonMobil Corporation, Chevron Corporation, BP plc, ConocoPhillips Company and other firms support STEM education by sponsoring teacher training, science camps and curriculum development, among other initiatives. Every member of our industry can help by encouraging young people to consider careers in oil and natural gas. In many communities, there are various opportunities to volunteer in classrooms to help with STEM education. We also need to encourage officials at all levels of government to align educational policies with the needs of our economy and society. When you have the opportunity, stand up and speak out in favor of STEM education. Participating in American Petroleum Institute’s workforce advocacy program, Energy Nation, can help you become a champion for educational policies

SHALE MAGAZINE  MARCH/APRIL 2018

that will help America build a strong workforce for the future. Accessing and Transporting America’s Energy Resources In the coming years, with strengthened STEM education, America’s energy industry will have a strong pipeline of skilled workers, ready to build on the success of our industry’s current leadership. But to succeed, the next generation of energy employees will need the opportunity to go to work. They will need to be able to access the wealth of our nation’s oil and natural gas resources — on land and offshore. And they will need to be able to move these resources to market, drawing on a robust energy infrastructure and pipeline network. On both counts — access and infrastructure — our industry continues to face opposition from well-organized, wellfunded anti-energy activists. Our nation will sacrifice the security and economic value of our energy resources if too many of us sit silent, while these activists derail infrastructure projects and succeed with their “Keep It in the Ground” policies. We need to stand up now for our resources — for the energy that powers and protects our nation and to provide our people with varied career opportunities. One of the best ways for SHALE readers to be advocates for STEM education, energy access, and infrastructure development is to participate in Energy Nation.

To learn more about Energy Nation and its mission, visit www.energynation.org.

MARCH/APRIL 2018  SHALE MAGAZINE

INDUSTRY

SHALE PLAY SHORT TAKES By: David Blackmon

Bakken Shale – North Dakota/Montana

Production continues to increase from the Bakken Shale play, even though the rig count has remained essentially unchanged since July 2017. This increase in production can largely be attributed to the opening of the Dakota Access Pipeline during the third quarter of 2017, which allows up to 400,000 barrels of oil per day (that had previously been transported by truck or rail) to move far more efficiently to market via pipeline. Overall, though, the strengthening of the price for crude oil since last summer has not resulted in a meaningful uptick in drilling in the Bakken. As so, many producers have focused new drilling opportunities on more economical projects in the Permian Basin and the Eagle Ford Shale. The decision by Oasis Petroleum Inc., one of the largest producers in the Bakken, to acquire a 22,000-acre position in the Permian’s Delaware Basin in December is illustrative of that preferred capital flow to the Permian.

Denver/Julesburg (DJ) Basin – Colorado

As in the Bakken, the rig count in the DJ Basin has remained static since last summer, in spite of the significant oil price increase during that time. One reason why is that the Basin’s two biggest players (Noble Energy Inc. and Anadarko Petroleum Corp.) are also major producers in the Permian Basin and the Eagle Ford Shale region. The more attractive rates of return on projects in those other areas are attracting a larger share of those companies’ capital dollars. In January, Noble Midstream Partners, LP and Greenfield Midstream, LLC announced the acquisition of gathering assets in the DJ Basin for $638.5 million via a joint venture called Black Diamond Gathering LLC. Black Diamond purchased the assets of Saddle Butte Rockies Midstream, LLC, along with some of its subsidiaries. The assets consist of roughly 160 miles of pipeline, 300,000 barrels of oil per day of delivery capacity, and approximately 210,000 barrels of crude oil storage.

The Permian Basin is in a strong boom cycle right now, as stronger oil prices — combined with the best well economics available in any shale play — make the region the most attractive play in the U.S. for capital investment. In addition to the announcement by Pioneer that it is selling all other assets in order to focus its drilling efforts exclusively in the Permian and the recent Oasis Petroleum acquisition in the Delaware Basin, Halcón Resources Corporation announced in early February an acquisition of more than 20,000 net acres in Reeves County that would add to its already sizable leasehold in the Delaware Basin. Today, the Permian is home to more than 40 percent of all active drilling rigs in the United States, and the EIA projects that total production from the Basin will surpass three million barrels of oil per day by the end of 2018.

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Eagle Ford Shale – Texas

After several months of stagnation, the DrillingInfo.com rig count for the Eagle Ford Shale rose by 10 rigs during the first two weeks of February. This is, in part, due to the stronger oil prices in early 2018, and is also likely a signal that the boom in the Permian is likely reaching a peak point. The announcement in early February by Pioneer Natural Resources that it was selling all other assets in order to focus its business entirely on the Permian Basin was big news in the Eagle Ford (given that the company owns more than 70,000 leasehold acres in the play) and has been one of the most active drillers in the Eagle Ford since the early days of this shale play’s development. It will be interesting to see which company steps up to purchase Pioneer’s Eagle Ford assets. Such a large acquisition — if it all sold together as a package — will command a multibillion-dollar price tag and require a purchaser that is well capitalized.

BFORDYCE/BIGSTOCK.COM

Permian Basin – Texas/New Mexico

Marcellus Shale – Pennsylvania/West Virginia/Ohio

In mid-January, the Federal Energy Regulatory Commission (FERC) issued an Order under section 7(c) of the Natural Gas Act approving construction of the PennEast Pipeline. The 120-mile pipeline will carry Marcellus natural gas from Dallas to Pennington, N.J., where it will interconnect with the Transcontinental Pipeline system. Along the way, PennEast will provide natural gas supply to 24 municipalities in Pennsylvania and 6 in New Jersey, alleviating supply constraints that have resulted in increased utility bills in recent years. Protesters and politicians have held up this (and other) pipeline projects for partisan political reasons. Despite rising demand for natural gas from LNG exports and the power generation sector, the U.S. Energy Information Administration (EIA) issued a new report in late January forecasting lower natural gas prices for the remainder of 2018 and through 2019, due mostly to rising production levels in the Marcellus and Utica Shale Basins.

Haynesville Shale – Louisiana/East Texas

Drilling activity in the Haynesville has staged a significant comeback over the last six months, as the rig count in the area has risen to over 40, a welcome change from the depths of the downturn when as few as a dozen rigs could be found working in the region. The opening of Cheniere Energy Inc.’s LNG export facility, and the proximity of the Haynesville to it, has played a significant role in that increased activity, even though it opened at a time of intractably low commodity prices. The U.S. is already a net exporter of natural gas, and the scheduled opening of three new LNG export facilities in 2018 and three or four more planned in 2019 hold out hope that rising demand could ultimately result in a stronger commodity price, which would accommodate higher levels of natural gas drilling activity. Until that happens, we can expect the current status quo to continue.

SCOOP/STACK Play – Oklahoma

The big threat to the ongoing boom in the SCOOP/STACK area is this session of the Oklahoma state legislature, where a third increase in three years of the state’s oil and gas Gross Production Tax (GPT) rates is under consideration. As this issue of SHALE Magazine went to press, members of the House and Senate were considering several competing alternatives to close the state’s persistent budget gap, at least two of which would increase the GPT rates. This ongoing uncertainty on tax rates diminishes the ability of oil and gas producers to properly plan their business and allocate capital. A third rate increase in three years would likely result in a reallocation of some portion of industry capital currently planned for Oklahoma’s SCOOP/STACK shale plays to drilling projects in other states.

About the author: David Blackmon is the Editor of SHALE Oil & Gas Business Magazine. He previously spent 37 years in the oil and natural gas industry in a variety of roles — the last 22 years engaging in public policy issues at the state and national levels. Contact David Blackmon at david.blackmon@shalemag.com. MARCH/APRIL 2018  SHALE MAGAZINE

INDUSTRY

Welcome to “Saudi Texas,” aka the Permian Basin

or many decades, the Organization of the Petroleum Exporting Countries (OPEC) harbored the ability to control the price of crude oil on the open market, due mainly to the influence of a single member country — Saudi Arabia. Since the 1950s, Saudi Arabia has been blessed with a wealth of excess oil production capacity, which allowed it to turn millions of barrels of oil production per day on or off in a matter of days — in turn, causing the price of crude on the open market to rise or fall almost on a whim. The U.S. shale industry was reminded of this precarious arrangement in 2014 when Saudi Arabia’s oil ministers decided to attempt to recapture market share by essentially flooding the market with additional crude. Neither U.S. producers nor any other oil-producing country had any effective response to that strategy, and the industry is only now beginning to recover in earnest from the price collapse that resulted from the oil glut. But now the Saudis are no longer alone in having an excess of production capacity. That was the message delivered at a recent conference by Nansen G. Saleri, former head of Reservoir Management at Saudi Aramco. According to Saleri (who is now the Chairman, CEO and co-founder of Quantum Reservoir Impact), oil producers in the Permian Basin currently have between 500,000 and 1 million barrels a day of idle oil production capacity combined. By compari-

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son, Saudi Arabia’s current spare capacity is about 1.5 million barrels a day, according to data compiled by Bloomberg. Of course, the mere existence of excess capacity does not mean Saleri’s analysis is an apples-to -apples comparison. Where Saudi Arabia’s oil ministers are able to determine their nation’s overall production and export levels through central planning, hundreds of companies independent from one another determine the Permian’s production output based on their own internal decisions and on market forces. As well, the Permian basin currently finds itself in a bit of a constrained situation due to a shortage of pipeline takeaway capacity. Thus, one of the reasons for the Permian’s current excess capacity is that there are hundreds of drilled wells that have not yet been placed into production. But still, the industry in the Permian region is currently very healthy relative to the previous three years, and comparisons to Saudi Arabia are not without merit. That aforementioned market recovery began in mid-2017 as the price for West Texas Intermediate, which had fallen as low as $42.53 per barrel on June 21, embarked on a steady rise throughout the final two quarters of 2017. That rise continued into early 2018, eventually reaching $66 per barrel in late January, a level not seen in almost four years. One of the most interesting aspects of the recovery is that it has been largely centered in the Permian, a vast swath of West Texas

DOODLEBUGS/BIGSTOCK.COM

By: David Blackmon

and Southeast New Mexico that is roughly the size of the state of South Carolina. An examination of the data behind the DrillingInfo.com daily rig count from July 1, 2017, through January 31, 2018, shows that, while the rig counts in other basins such as the Eagle Ford Shale and the Williston Basin fell slightly or remained static, the count in the Permian rose from 359 to 421 rigs, an increase of about 18 percent. Combined, the rig count in the state of Texas

assets the company plans to divest are just your basic oilfield garbage: they include roughly 70,000 acres of prime acreage in the Eagle Ford Shale region, where Pioneer was an early and very successful player. Indeed, for about five years, that Eagle Ford acreage was the company’s feature resource play. Pioneer is a company that possesses a strong record of success in whatever area it has produced; thus, its decision to focus exclusively on the Permian is strong testimony to both the magnitude of the resource available in that region and the prime economics offered by prolific oil and natural gas formations stacked one atop another throughout a vast region larger than that of South Carolina. The timing of Pioneer’s announcement is interesting, released on the same day that Halcon Resources Corp. announced a $381 million acquisition of over 22,000 acres in the Delaware Basin part of the Permian, and just a few weeks after Oasis Petroleum Inc. announced its own 20,000-plus acre entry into the region. Just a week prior to Pioneer’s announcement, oil giant ExxonMobil Corporation announced its plans to triple production from the Permian over the next five years. This dramatic surge in focus on the Permian is the centerpiece of ExxonMobil’s planned $35 billion increase in capital spending in the U.S. over that time frame. The pace of deal-making and capital investment related to the Permian region had slowed noticeably during the second half of 2017; management teams have focused more capital dollars on programs designed to maximize investor returns. But business activity appears to be heating up once again early in this new year, as the large independents and majors that drill the great majority of U.S. shale wells begin executing projects based on their 2018 capital budgets. The United States has been truly blessed as a country with a great abundance of oil and gas resource plays. From the Bakken play in North Dakota to the Marcellus in Pennsylvania to the DJ Basin in Colorado to the Haynesville Shale in Louisiana (and so many more), these vast resources underlie much of the lower 48 states and Alaska. And, as these recent major announcements by some of the country’s largest producers show, “Saudi Texas” is clearly the place to be in 2018.

WHAT’S YOUR NEXT MOVE?

Combined, the rig count in the state of Texas amounted to almost 60 percent of all active rigs in the United States as January came to a close, with the Permian alone playing host to 40 percent of the national count amounted to almost 60 percent of all active rigs in the United States as January came to a close, with the Permian alone playing host to 40 percent of the national count. This disparity in performance by basin becomes even more pronounced when forecasting future production growth. The U.S. Energy Information Administration is predicting that overall oil production in the United States will grow by about 600,000 barrels per day during 2018, with about 400,000 of those barrels per day coming from growth in the Permian alone. Even though the January 31 rig count of 421 is still well below the Permian’s recent high of 492 (in July 2014), drilling times have been cut so substantially and recoveries of oil from each individual wellbore have risen so dramatically that overall production from the region continues to accelerate. The announcement by Pioneer Natural Resources Company on February 7 that it has decided to divest all other assets in order to focus exclusively on the Permian Basin confirms what many have already known: the Permian truly is America’s “Super Basin,” or as I like to call it, “Saudi Texas.” When I interviewed DrillingInfo. com’s Chairman and former CEO, Allen Gilmer, last summer, he expressed his belief that the oil and gas reserves contained within the producing formations beneath the Permian’s desert landscape are “virtually inexhaustible,” and that we should “look at the Permian Basin as a permanent resource.” Where Pioneer is concerned, it isn’t as if the

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INDUSTRY

Global Shale Update By: Thomas Tunstall, Ph.D.

300 trillion cubic feet. Crude oil estimates are reported to be 16 billion barrels. Russia remains the world’s largest producer of crude oil, having surpassed Saudi Arabia. Russia pumped over 11 million barrels per day in 2016 — with virtually no shale production. That may soon change. Russia’s Bazhenov Shale Formation in the West Siberian Basin is believed to be the largest in the world. The Russian Federal Subsoil Resources Management Agency, Rosnedra, estimates that the Bazhenov may contain more than 180 billion barrels of recoverable oil (although the U.S. Department of Energy [DOE] estimates are lower, at 75 billion barrels). Natural gas reserves are thought be approximately 285 trillion cubic feet. Russia hopes to begin producing from shale as early as 2020 because much of the country’s existing infrastructure lies

From a global energy perspective, the next decade is sure to look a lot different than the current status quo within close proximity to the Bazhenov field. As unconventional techniques and technologies continue apace in the U.S. and expand globally, it will be interesting to see what happens when the Organization of the Petroleum Exporting Countries (OPEC) loses its dominance of global energy markets — if, in fact, it hasn’t already. From a global energy perspective, the next decade is sure to look a lot different than the current status quo.

About the author: Thomas Tunstall, Ph.D., is the Senior Research Director at the University of Texas at San Antonio’s Institute for Economic Development, and was a principal investigator for numerous economic and community development studies. He has published peer-reviewed articles on shale oil and gas, and has written op-ed articles on the topic for the Wall Street Journal. Dr. Tunstall holds a doctorate degree in political economy, a master’s in business administration from the University of Texas at Dallas, and a Bachelor of Business Administration from the University of Texas at Austin.

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nconventional oil and gas production, until recently, has been largely confined to the United States and Canada. Countries such as China and Poland have made abortive attempts to produce shale oil and gas, with little success to date. Germany and France have banned hydraulic fracturing altogether. The shale revolution began around 20 years ago with attempts to extract natural gas in the Barnett formation, located in North Texas near Fort Worth and Denton. That field is estimated to contain 40 trillion cubic feet of natural gas. However, despite the large quantities of natural gas produced in the Barnett, it is the Marcellus Shale field in the Northeastern U.S. that represents the largest reserves in this country, with an estimated 88–141 trillion cubic feet of recoverable gas. The Haynesville formation in East Texas and Northern Louisiana may contain the second- largest supply of recoverable natural gas in the lower 48 states, estimated to be 75 trillion cubic feet. These three shale fields — the Marcellus, Haynesville and Barnett — are the earliest examples of the use of unconventional production technology for shale energy in the world. And these examples primarily relate to natural gas production. In fact, prior to activity in the Bakken (located in North Dakota and Eastern Montana), all shale production was focused on natural gas. When natural gas prices fell significantly in the U.S. due to increased production, energy companies began shifting their focus to the prospects of extracting oil from shale. The Bakken was the first shale field to successfully demonstrate that unconventional production techniques could be applied to crude oil as well as natural gas. After that, activity quickly spread to other shale fields, such as the Eagle Ford and many others. To date, the Eagle Ford has produced over 2 billion barrels of oil and condensate, with an estimated total recoverable quantity of 10–12 billion barrels. Total recoverable natural gas reserves are estimated at nearly 20 trillion cubic feet. Conservative estimates for crude oil reserves in the Bakken are 7.4 billion barrels and 6.7 trillion cubic feet of natural gas. Exploration and production activity in the Permian Basin is still in the relatively early stages of exploitation. Crude oil production now amounts to over 2 million barrels per day, and is expected to increase for the foreseeable future as additional shale production continues to come online. Total recoverable oil in the Permian is estimated to be in excess of 20 billion barrels. Natural gas reserves are estimated to be 16 trillion cubic feet, although both are likely to be revised upward in the coming years. While activity outside the U.S. has been limited, that is beginning to change. Argentina, for example, is starting to tap its own reserves in order to decrease its reliance on natural gas imports. Estimates for technically recoverable natural gas in the Vaca Muerta formation are around

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INDUSTRY

Resource Management and Common Sense

he focus of this issue of SHALE Oil & Gas Business Magazine is on managing resources. For a magazine that covers the oil and gas industry, it is only fitting that our focus would be on managing our natural resources — as in oil and gas. For our friends who are opposed to oil and gas as being an important resource, we might even shift the emphasis to managing our natural resources — that is, not “keeping it in the ground” or otherwise self-imposing some kind of prohibition against using oil and gas, as if they were the carbon cousin to cyanide. But managing our natural resources to what end? Environmental extremists would prefer that we leave no trace of man’s presence in the world; we should return to living without power plants, electric grids, refineries, manufacturing facilities, modern forms of transportation — a lifestyle that was described by Thomas Hobbes in the 17th century as “solitary, poor, nasty, brutish, and short.” Alex Epstein, author of The Moral Case for Fossil Fuels, has a different thought. He would say that the principal purpose for managing our natural resources responsibly is to promote the flourishing

SHALE MAGAZINE  MARCH/APRIL 2018

of mankind. I think I’ll go with Alex. But by whom would our natural resources — our oil and gas — be managed? Through some very undeserved providential blessing, we find ourselves living in the United States of America. Not only is the U.S. abundant with seemingly endless reserves of oil and natural gas (and coal), America can also boast about a system of ownership that exists (for all practical purposes) nowhere else in the world. Only in the U.S. (and the few exceptions of a very small part of Canada and the Caribbean islands of Trinidad and Tobago) can minerals such as oil and gas be owned privately; elsewhere worldwide, the national government or sovereign state owns the minerals. It is no coincidence, then, that the U.S. has always led the way in the oil and gas industry’s evolution. The incentive provided through private ownership has a way of leading to innovation, progress and success. We need only contrast the bureaucratic quagmire of trying to develop our oil and gas on lands and waters owned by our own federal government with how dominant and successful the same operations have been on privately owned lands to understand the “millstone around the neck of progress” that government resource ownership can be. So, are we irresponsibly depleting our oil and gas reserves to our detriment? Since the first commercial production of oil in 1859 at Titusville, Pa., there have been many petroleum prophets that predicted the imminent depletion of our global supply of oil. And yet, in 2018, after more than 150 years of relentless and prolific production of oil and natural gas across our nation, we actually have identified more remaining reserves than we’ve ever had before.

Not only is the U.S. abundant with seemingly endless reserves of oil and natural gas (and coal), America can also boast about a system of ownership that exists (for all practical purposes) nowhere else in the world

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By: Bill Keffer

In 2016, the U.S. Geological Survey (USGS) released a study regarding the Wolfcamp Shale Formation in the Permian Basin, estimating that there are still 20 billion barrels of oil and 16 trillion cubic feet of associated natural gas yet to be produced. That’s just one formation in one basin. The USGS published another report in 2017 regarding the Haynesville Shale Formation in East Texas, estimating that there is another 61 trillion cubic feet of natural gas, waiting to be produced. Finally, if your eyes haven’t glazed over yet, another 2016 study estimated that total recoverable gas reserves in the U.S. now stand at 2.8 quadrillion cubic feet. (How often do you get to write “quadrillion” about anything?) In other words, we won’t be running out of oil or natural gas in the U.S. for at least another 100 years. Are we paying too high a price to continue using oil and gas as our principal energy source and manufacturing building block? In other words, are we failing to weigh the benefits of oil and gas against the risks of earthquakes, pollution and climate change? It would be refreshing if the question was ever this fairly posed. When any of these risks are raised, do those who challenge the use of oil and gas ever as much as tip their hat to the countless benefits these resources provide? It has become standard operating procedure to rant and rave exclusively about the alleged risks, as if to wonder what benefit could possibly justify our continued use of these agents of death. That stance is intellectual dishonesty, pure and simple. But, to be candid, it is purposeful intellectual dishonesty, executed by those who subscribe to that well-worn, unpleasant battle cry of mankind that the end justifies the means. In other words, exaggerate the bad and ignore the good, because the goal itself is worthy. And with regard to those alleged risks: earthquakes can be effectively managed by properly regulating the pressure and volume rates of disposed produced water, and pollution minimization is an American success story in the oilfield — it can always be better, but it is already the gold standard for the rest of the world. But what about climate change? Are we willing to risk the catastrophic end of the planet, just so we can continue driving our pick-up trucks? Despite the constant preachifying from our elites in government, Silicon Valley and Hollywood, it is still quite a leap to posit that our continued use of oil and natural gas will unquestionably lead to catastrophic climate change. Opponents proclaim that it is a risk they are not willing to take. In January, elites aboard hundreds of private jets attending the World Economic Forum in Davos, Switzerland, decried the excessive carbon output on our planet — apparently by others, not them. They want to keep our oil and gas in the ground, and they don’t much care what kind of economic disruptions it will cause.

The rest of us care. Shutting down our economy and, frankly, our way of life, is an awful lot to ask, all as a result of a computer model that articulates what may happen in the future and why. The endless list

of contributions that oil and natural gas make to our lives is tangible and real. These benefits surround us, support us and permeate our day. The products they generate warm us, cool us, feed us, make our water potable, clothe us, transport us, heal us, edify us. It might be difficult to think of some aspect of our modern life that isn’t somehow touched, affected or improved on by oil and gas. But the opponents point to the risks of continued use, as embodied in their all-knowing computer models. Climate change doesn’t necessarily equate to catastrophic climate change. Climate change doesn’t necessarily mean change caused only by oil and gas, or even primarily by oil and gas. Responsibly managing our resources begins with common sense.

It might be difficult to think of some aspect of our modern life that isn’t somehow touched, affected or improved on by oil and gas

About the author: Bill Keffer is a contributing columnist to SHALE Oil & Gas Business Magazine. He teaches at the Texas Tech University School of Law and continues to consult. He also served in the Texas Legislature from 2003 to 2007.

MARCH/APRIL 2018  SHALE MAGAZINE

INDUSTRY

Department of Interior Advance Robust Five-Year OCS Leasing Program By: Leslie Beyer, President, PESA

n early January, the Department of the Interior released the National Outer Continental Shelf (OCS) Oil and Gas Leasing Program (National OCS Program) for 20192024. The draft National OCS Program proposes to make more than 90 percent of the OCS acreage available for consideration for future exploration and development. The National OCS Program identifies 47 potential lease sales, including acreage off the coast of Alaska and regions in the Pacific, Gulf of Mexico and Atlantic — the greatest number of lease sales proposed in a five-year lease schedule to date. Access to and responsible development of the U.S. offshore energy resources are vital to a robust, forward-looking energy policy that will help secure the nation’s energy supply and economic prosperity. “Responsibly developing our energy resources on the Outer Continental Shelf in a safe and wellregulated way is important to our economy and energy security, and it provides billions of dollars to fund the conservation of our coastlines, public lands and parks,” said U.S. Interior Secretary Ryan Zinke. At present, U.S. offshore oil production is about 1.9 million barrels a day, which accounts for about 20 percent of domestic crude production. This production is almost exclusively from the Gulf of Mexico because most of the OCS has been off-limits to energy exploration and development. However, given that global energy demand is expected

SHALE MAGAZINE  MARCH/APRIL 2018

to increase 30 percent by 2035 and the decade-long process to bring an offshore field online, it is prudent and timely that all U.S. OCS acreage be evaluated for potential exploration and development. The U.S. OCS is estimated to contain some of the greatest quantities of undiscovered oil and natural gas resources. The department’s Bureau of Ocean Energy Management estimates undiscovered, technically recoverable OCS resources to be 90 billion barrels of oil and 327 trillion cubic feet of gas. Developing these resources will be vital to advancing the U.S. energy renaissance, growing the economy and reducing government deficits. Comprehensive studies by Quest Offshore Resources, Inc. indicate that oil and natural gas OCS leasing efforts in the Atlantic, Pacific and Eastern Gulf of Mexico could increase U.S. energy production by 3.5 million barrels of oil equivalent per day by 2035. In addition, the leasing program could create more than 800,000 American jobs and generate $200 billion in government revenue. The oil and natural gas industry recognizes the need to conduct operations in a safe and environmentally responsible manner. To that end, the energy industry has continued to make advancements in systems and assets integrity, technical standards and regulatory regimes to enhance the safety of offshore operations. Petroleum Equipment & Services Association’s PESA’s member companies

have been at the forefront of these efforts, developing the technologies and innovations to drive safety and environmental enhancements across industry operations. The release of the draft National OCS Program is an early step in a multiyear process to develop a final OCS leasing program. It typically takes two to three years to develop a five-year program, during which successive drafts of the program are published for review and comment. The process involves several rounds of public participation from stakeholders and multiple layers of environmental review. While all 47 leasing areas are initially examined, some acreages may eventually be withdrawn due to economic or environmental consider-

Given that global energy demand is expected to increase 30 percent by 2035 and the decade-long process to bring an offshore field online, it is prudent and timely that all U.S. OCS acreage be evaluated for potential exploration and development ations. Once the National OCS Program is finalized, any exploration activity would then go through its own regulatory and public review process. The bottom line is that the development process for the National OCS Program is comprehensive, deliberative and inclusive. As the national trade association for the oilfield service, supply and manufacturing sector, PESA works in partnership with other trade associations to educate policymakers and advance a smart, practical approach to the development of America’s oil and gas resources. PESA member companies continue to produce technologies and innovations to safely provide the energy needed for our modern lives.

For more information on PESA, visit www.pesa.org.

MARCH/APRIL 2018  SHALE MAGAZINE

INDUSTRY

Managing Natural Resources in the Eagle Ford By: Omar Garcia

As a part of the community in South Texas, the oil and gas industry strives to be a good neighbor. The management of our natural resources is a top priority. We believe we should all do our part to be good stewards of the environment, contribute positively to the

In addition to providing secure energy resources for our country, the oil and gas industry’s commitment to decreasing spills, reducing emissions, minimizing waste and promoting water management and conservation efforts are paramount

communities in which we live and work, and protect and preserve our natural resources. As the president of the South Texas Energy and Economic Roundtable (STEER), I represent 15 of the largest operators in the Eagle Ford Shale region, and the protection of the environment is a top priority for each STEER member. The oil and gas industry in South Texas continues to implement new technologies and programs to develop the much-needed energy resources for the world in a safe and responsible manner. In addition to providing secure energy resources for our country, the oil and gas industry’s commitment to decreasing spills, reducing emissions, minimizing waste and promoting water management and conservation efforts are paramount. Clean air requires innovation and factual scientific research and information. With improvements in efficiencies and leading-edge technology, the oil and gas industry is operating with fewer rigs, less trucks and multiple wells on one site. Our operators, along with their contractors, continue to design, test and implement innovative technologies and procedures to improve operations and reduce emissions. Operators are using more natural gas to power operations and more solar power for production sites. Additionally, the installation of vapor recovery units and increased pipeline infrastructure are helping to alleviate the need for flaring. Many of our companies participate in environmental conservation projects, such as native seed planting, by part-

nering with various organizations in South Texas. Some STEER members even participate in clean-up initiatives such as trash collecting programs in South Texas. Clean water is a natural resource that our members work in earnest to preserve and protect. Our water sources are vital and limited, and the oil and gas industry is continuously working to find methods to use less fresh water and increase the use of recycled water in the production process. The oil and gas industry actually utilized less than two percent of water in the state of Texas. STEER has presented numerous Eagle Ford Excellence Awards to companies who are diligently doing their part to recycle and reduce water usage. STEER members will continue to work to preserve our natural resources, and we believe in honoring those companies who do that as well. Our annual Eagle Ford Excellence Awards honor companies working with the oil and gas industry who make preserving the environment and protecting our water supply a top priority. These companies are looked upon as leaders in South Texas and throughout the industry. I am proud of the work we do to supply the energy resources to the world, while operating as good neighbors. As proud community members, the oil and gas industry will keep doing its part to manage our natural resources in a responsible manner. Our work at being good corporate citizens is never done.

About the author: Omar Garcia is President and CEO of the South Texas Energy and Economic Roundtable (STEER). STEER connects the oil and gas industry to South Texas communities, facilitating and coordinating communication, education and public advocacy surrounding the production of energy resources in South Texas.

SHALE MAGAZINE  MARCH/APRIL 2018

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MARCH/APRIL 2018  SHALE MAGAZINE

POLICY

The Tax Plan’s Impact on Oil and Gas (So Far) By: Sid Miramontes

mericans are finally getting a glimpse of the economic impact from passage of the Tax Cuts and Jobs Act of 2017. Majority Whip John Cornyn (R-Texas) made a substantial last-minute “manager’s amendment” to the Senate plan, reducing the publicly traded partnerships’ tax cut from 35 percent to 21 percent, which will have a significant impact on the oil and gas industry. This dramatic reduction is intended to benefit industry workers and investors, while making the oil and gas industry more competitive in global markets. President Trump has historically shared fossil fuel-friendly views, and the recent tax reforms expand the ability of businesses to write off equipment expenses. This continuation of offering tax incentives preserves and fosters investment in the oil and gas sector. Here what we’ve gleaned so far from the tax reform bill:

• Corporate and individual tax rates were reduced across the board. This is a flat rate across all income levels. Also, the corporate alternative minimum tax (AMT) was repealed, which will encourage more investment in our country and allow companies to increase workers’ wages and retirement contributions with the savings. We have already seen many companies doing just that, such as Visa Inc., Nationwide Mutual Insurance Company and AutoNation, Inc., by announcing plans to raise the payments they make to match employee contributions in 401(k) accounts. Other companies have said they plan to make a one-time contribution to employees’ retirement plans. • The $7,500 credit for electric vehicles remains, and the bill did not

modify the credit for electricity produced from certain renewable resources or the energy investment tax credit. The tax plan continues to mandate the use of last-in-first-out (LIFO) accounting rules. This method allows crude stockpiles to be valued at current market prices rather than at original purchase costs. Also preserved in the bill are intangible drilling costs deductions and the taxable income reduction that reflects the depreciation of reserves.

A new Qualified Business Income (QBI) deduction was added for individuals who receive income from pass-through entities (such as S-Corps, Partnerships, LLCs, LLPs, Sole Proprietorships and Rentals), which will provide these smaller businesses and their owners with a tax benefit. While the details of the legislation are by no means secure, the intended net effect will hopefully translate into financial benefits for hardworking Americans, more jobs and a strong, independent economy.

About the author: Feeling the inefficiency of traditional financial planning firms, Sid Miramontes started Miramontes Capital (www.miramontescapital.com) to provide pinpointed expertise to a single life stage: retirement. “People spend forty years working to save enough to retire. The strategy that got you to retirement is fundamentally different than the strategy required to get you through it. That shift is what most people miss.” Miramontes Capital provides concierge advisory services and financial expertise to individuals making the transition into retirement. Clients receive personalized investment strategy, taking into account each client’s unique values and objectives. Sid has been featured in Forbes Magazine, recognized as a California Financial Leader by Forbes, and named three times to Barron’s Top Financial Advisors.

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• The tax code was simplified by getting rid of most deductions. Due to decades of legislature intended to reward individual and corporate investment, the tax code has become a complicated web of loopholes and exemptions, navigated by complex financial maneuvering.

MARCH/APRIL 2018  SHALE MAGAZINE

POLICY

Power Generation Game of Thrones By: Jackie Stewart

Currently, there is over $21 billion allocated for gas-fired power plant projects in various stages of development throughout Ohio, West Virginia and Pennsylvania. These projects combined will generate more than 23 gigawatts of reliable, efficient and clean electricity for over 16 million homes when completed, and will be equivalent to 105 million solar panels and 11,500 wind turbines, based on Department of Energy (DOE) figures. These combined cycle plants typically require at least 100 million British thermal units (Btu) of natural gas per day. That would collectively equate to 2.7 billion cubic feet per day (Bcf/d) of natural gas if all of these projects planned for the region go into operation. The Marcellus and Utica shales are producing 26.7 Bcf/d, according to new DOE data, meaning that concerns surrounding fuel source reliability for these plants should be a nonstarter, considering the ample supply of natural gas. The number of pipelines already in the works will deliver more than 17 Bcf/d of Marcellus and Utica natural gas to new power plants and other end-users. This is all happening at no cost to the taxpayer or electricity customers. In fact, it’s because of these private-sector capital investments

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that we can keep the lights on, and do so without skyrocketing electricity costs. The cherry on top of it all is the fact that the Appalachian Basin led the nation with 57 million metric tons of carbon emissions reductions from 2005 to 2015, 88 percent of which were from the power sector. Put another way, the Appalachian Basin has accounted for 21.5 percent of total U.S. carbon emissions reductions for electricity generation since 2005. But not everyone is excited about this win for the economy and the environment. Unable to compete, owners of aging and uneconomic power plants have made sweeping requests for bailouts at the federal and state levels, including additional subsidies and the ability to pass surcharges to electric customers. An analysis by Energy Innovation estimated that federal bailouts would only benefit a handful of

companies who lobbied the federal government last year and would raise consumer energy costs by an estimated $2.4 billion to $10.6 billion annually. In fact, 80 percent of the subsidies would go to only five companies, including Ohio-based FirstEnergy

Corp., which is slated to retire its uneconomic and aging coal and nuclear assets in Ohio, West Virginia and Pennsylvania. This bailout practice has been going on for years in Ohio, as companies such as FirstEnergy have simply passed the costs of their

Indeed, clean-burning natural gas certainly does represent tomorrow — a win for the consumers, the economy and the environment

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or the first time in over five decades, natural gas has surpassed coal as the United States’ leading fuel source for electricity generation. Much like the shale gas revolution that prompted it, this historical change has not happened overnight. This momentous turning point has also led to a massive fight over the future of power generation and the question of which resource will be the next king of American power. Perhaps the most significant evidence of this power struggle is occurring in the coalheavy battleground states of Ohio, Pennsylvania, and West Virginia’s Appalachian Basin, where the prolific Marcellus and Utica shale gas production has resulted in lower natural gas prices worldwide. As politicians scheme to tilt the scales toward refurbishing aging and uneconomical power plants, this power generation “game of thrones” is reaching a fever pitch. With important midterm elections around the corner, it’ll be interesting to see how this fight plays out.

faltering business models to their customers. In addition to these surcharges, the owners of Ohio’s failing power plants are asking state lawmakers for the ability to impose more surcharges on captive customers, resulting in pending legislation to bail out nuclear and coal power plants. A similar scenario occurred in Pennsylvania, where a proposal to save uneconomic nuclear plants would have cost consumers an estimated $3.9 billion extra in the form of higher energy bills. In West Virginia, the debate differs somewhat in that very few natural gas power plants have been built or proposed, largely because the permitting process in West Virginia is onerous, and companies such as FirstEnergy continue to hinder competition from new and more efficient power sources. So, where does the power generation game of thrones stand now? Luckily, the Federal Energy Regulatory Commission (FERC) announced last month that they would not move forward with these federal bailouts and subsidies. Ohio lawmakers are currently deliberating state-level bailouts in Columbus, but Republican Gov. John Kasich has been staunchly opposed to them, openly acknowledging that the private sector is driving natural gas power generation in the Buckeye State. As he cut the ribbon on the new Oregon Clean Energy Center last summer, Kasich said, “It’s bringing investment, competition and, most important, lower prices for consumers.” Members of the Pennsylvania General Assembly said last month that there is “no appetite” for bailouts, noting that the job losses expected from the retirement of aging and uneconomic plants would be offset by shale-driven opportunities such as Shell Oil Company’s multibillion-dollar petrochemical cracker plant. State Rep. Rob Matzie (D-16) correctly stated, “If we lose those jobs, any new jobs gained out of the [Shell] cracker plant will get subtracted. Those are family sustaining wages, and a lot of people working there have made a great living for the better part of forty years. As policymakers, we have to keep that in mind.” And in West Virginia, Secretary of Commerce Woody Thrasher had sharp words for the West Virginia House and Senate, making it clear that the state has not been friendly to natural gas power plants, as Ohio and Pennsylvania have enjoyed 90 percent of the regional investment from combined new cycle gas plants. This has resulted in billions of dollars flooding into neighboring states, and utility rates for West Virginians have surged higher. After touring a new Ohio natural gas power plant, Gov. Kasich perhaps said it best: “There’s always a tendency to slip back into yesterday. This represents tomorrow.” Indeed, clean-burning natural gas certainly does represent tomorrow — a win for the consumers, the economy and the environment.

About the author: Jackie Stewart is a Senior Director in the Strategic Communications segment at FTI Consulting, Inc., and is part of the segment’s Public Affairs practice and Energy and Natural Resources industry practice. Based in Ohio, she is also State Director for Energy in Depth. Stewart has more than a decade of experience in government and community relations, public policy and event management.

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POLICY

Trump Administration’s EPA Overhaul Good for the Energy Industry By: John Tintera

ne year into President Trump’s administration, how is he doing on energy policy? So far, so good, if you observe what’s been happening at the Environmental Protection Agency (EPA). Under the new leadership of Administrator Scott Pruitt, the EPA has enacted a wide swath of changes that are helping to rebrand it as a common-sense and approachable organization. Pruitt has tackled a hornet’s nest: Obamaera regulations sought to stifle the oil and gas industry and all but shut out our voice when it came to responsible energy production. Under previous Administrator Regina McCarthy, the EPA developed regulations without fact-based data, and stripped power from the states in an effort to magnify the federal scope of authority. Arguably the most significant change Pruitt has made so far is the halt and rollback of a set of invasive rules, including the Clean Power Plan (CPP). The CPP methane rule sought to reduce emissions from power plants. This ignored the tremendous strides already made by the industry to reduce greenhouse gas emissions. Initiated under the previous Administration, the “information collection request” portion of the rule mandated the collection of overly burdensome and exhaustive data from oil and gas facilities. Coupled with the rule’s implementation, this would saddle the industry with nearly half a billion dollars in costs. Within his first few days, Pruitt canceled the request for operators to provide methane emissions data and announced the repeal of the plan in its entirety, because it exceeds the EPA’s authority. On top of the CPP rollback, the EPA has begun the process of rescinding the Waters of the United States (WOTUS) rule, which regulates the use of navigable bodies of water. Pruitt’s goal is to return that jurisdiction to the state level to ensure the responsible and equitable use of this important resource. Together, the methane rule and WOTUS regulations would have crippled an industry that feeds families, pays for roads and teachers’ salaries, and heats homes across our country. In addition to rolling back several policies and regulations, Pruitt also put forth the goal of changing the structure of the EPA itself. He has

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reduced the size of the agency as part of his vow to restore jurisdiction to the states. So far, approximately 800 employees have voluntarily left their positions through retirements and buyouts. These positions have not been backfilled, shrinking the size of government and saving taxpayer dollars. Leaders in Texas and across the U.S. are supporting Pruitt’s mission. For example, in a letter drafted and signed by Texas Attorney General Ken Paxton and 16 other state attorneys general asked Pruitt to scale back the unlawful scope of authority under the EPA and return those powers to the states. He began doing just that the next day, reinforcing several existing rules and regulations set forth by the EPA. Also, Texas state Sen. Craig Estes and state Rep. Drew Darby, Chairmen of the Senate and House Energy Resources Committees, respectively, filed a resolution that encouraged cooperation between federal and state entities. Senate Concurrent Resolution (SCR) 26 passed both chambers with significant support, and recognized the importance in Texas to seize the opportunity now for state and federal leadership to rise above partisan politics and work together to create sound policy for all Americans. By placing authority back in the hands of state-level agencies where the true expertise exists, our industry can ensure that localized entities are handling the regulation of oil and gas issues — not the bureaucrats in Washington, D.C. In a move just as important as reducing the size of the EPA, Pruitt has placed key leaders in deputy positions to carry out the agency’s goals. One key placement was his appointment of Anne Idsal to become regional administrator for Region 6, based in Dallas. Idsal’s time as top official at the Texas General Land Office under Land Commissioner George P. Bush, as well as her legal expertise, makes her an excellent fit for the needs of the new EPA and the industry alike. Since taking office at the end of 2017, she has already met with various stakeholder groups to ensure that policies work for all involved parties at the local, state and federal levels. With Administrators Pruitt and Idsal fighting for the jurisdictional authority of states, the unlawful overreach of authority by this agency appears to be diminishing.

By placing authority back in the hands of state-level agencies where the true expertise exists, our industry can ensure that localized entities are handling the regulation of oil and gas issues — not the bureaucrats in Washington, D.C.

With members in 34 states, the Texas Alliance of Energy Producers advocates for independent producers at the state and federal levels. We have worked in lock-step to achieve Pruitt’s new objectives at the EPA. We support his mission to return the agency to an organization that provides logical and reasonable regulations, while working harmoniously with the state-level agencies that oversee the day-to-day oil and gas activity. Our efforts in Washington, D.C., have helped put an end to the CPP and WOTUS, and we will continue to assist in the overhaul of an agency that is remodeling its image and structure in a positive way. We look forward to continuing to work with Pruitt, Region 6 Administrator Idsal, and the rest of the agency to ensure that these goals are successfully achieved in a manner that benefits our industry and our nation.

About the author: John Tintera is President of the Texas Alliance of Energy Producers, which is the largest state oil and gas association in the country for independent producers. He is a regulatory expert and licensed geologist (Texas #325) with a thorough knowledge of virtually all facets of upstream oil and gas exploration, production and transportation, including conventional and unconventional reservoirs. As a former Executive Director and 22-year veteran of the Railroad Commission of Texas (considered the premier oilfield regulator in the nation), Tintera oversaw the entire regulatory process, from drilling permits to compliance inspections, oil spill response, pollution remediation and pipeline transportation.

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BUSINESS

What Does “Ozone Nonattainment” Mean for San Antonio and the Eagle Ford? By: Beth Everage, HBW Resources, LLC

he San Antonio region can breathe a little easier, for now. In a December 2017 letter, the U.S. Environmental Protection Agency (EPA) determined it needed more current air quality data before reaching its final ground-level ozone designation for the area. But what would such a designation mean? How would it impact the region? What does this mean for oil and gas operations in South Texas? To begin addressing these questions, we must first understand how air pollution standards are established and implemented nationwide. The Clean Air Act (CAA) requires the EPA to establish air new quality standards or revise

Severe or Extreme. Nonattainment areas with a “lower” classification have ozone levels that are closer to the standard than areas with a “higher” classification. In 2015, the EPA revised the existing 2008 NAAQS for ground-level ozone, from 75 parts per billion (ppb) down to 70 ppb. In December 2017, the EPA classified the San Antonio region (the counties of Atascosa, Bandera, Bexar, Comal, Guadalupe, Kendall, Medina and Wilson) as “Unclassifiable/Attainment,” pending the consideration of more current air quality monitoring data to be submitted to the EPA by Feb. 28, 2018. In its letter, the EPA stated its intention to classify both the Dallas/Fort Worth

As the region waits for the EPA’s final designation, local agencies have already begun to proactively address ground-level ozone existing standards every five years to protect public health. The EPA currently has National Ambient Air Quality Standards (NAAQS) in place for six pollutants, including ground-level ozone. Every time the EPA establishes a new NAAQS or revises the NAAQS, it must designate areas for meeting (“attainment”) or exceeding (“nonattainment”) the standard. Each area that is designated as nonattainment is then classified as Marginal, Moderate, Serious,

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and Houston-Galveston-Brazoria areas as nonattainment for the new NAAQS. Both of these regions are also currently classified as “Moderate” nonattainment for the 2008 standard. Though the long-term trend has demonstrated an overall decrease in ground-level ozone readings across the San Antonio area, recent monitoring data for the region show that at 74 ppb, ambient ground-level ozone levels are still slightly higher than the new NAAQS. This could mean

the region is facing its first ozone nonattainment designation when the EPA releases its final decision in the spring of 2018. If the eight-county San Antonio area were to be designated as a nonattainment region, it would trigger a series of reporting and regulatory requirements. Shortly after a nonattainment designation, the CAA requires the Texas Commission on Environmental Quality (TCEQ) to submit a plan, called a State Implementation Plan (SIP), for the region that outlines a strategy to attain the ozone NAAQS. The SIP should include a list of control strategies that target various emission sectors, including on-road mobile area sources (e.g., dry cleaners, gas stations), and point sources (e.g., chemical manufacturing, electric utility power generation). Depending on a region’s classification, control strategies can include enhanced air quality monitoring, vehicle inspection and maintenance requirements, reformulated gasoline, permitting requirements for new or modified industries and industrial pollution controls. In addition, regions may also implement local emission reduction strategies, including idling requirements, telecommute programs, enhanced bikeway programs, incentives for cleaner vehicles, computerized traffic signal systems, peak-period heavy-duty truck bans on roadways and commuter parking space pricing. The CAA also requires that nonattainment regions conduct emissions analyses for all longrange metropolitan transportation plans, shortrange transportation improvement plans and highway or transit projects that receive federal funds in order to ensure they comply with the region’s air quality goal set forth in the SIP. The Federal Highway Administration (FHWY) and the Federal Transit Administration (FTA) are the entities responsible for determining a region’s transportation conformity. If these federal agen-

cies are unable to make a conformity determination, there is a “conformity lapse”; therefore, federal transportation funds are restricted for the region. A nonattainment designation would also have implications for oil and gas operations in the San Antonio area, as the Atascosa and Wilson counties both lie within the Eagle Ford Shale play. Designating these counties as nonattainment requires the TCEQ to submit a SIP addressing the implementation of Reasonably Available Control Technology (RACT) to reduce emissions from existing oil and natural gas equipment and processes. The EPA defines RACT as “the lowest emission limitation that a particular source is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility.” To assist state agencies in determining what constitutes RACT for their emission reduction plans, the EPA released its Control Technique Guidelines (CTGs) for the oil and natural gas industry in 2016. According to the EPA, “CTGs are not regulations and do not impose legal requirements directly on pollution sources; rather, they provide recommendations for state and local air agencies to consider as they determine what emissions limits to apply to covered sources by their jurisdictions in order to meet RACT requirements.” The CTGs for the oil and gas industry address opportunities for emissions reductions throughout oil and natural gas operations, from initial production through product distribution. This encompasses potential requirements for a range of equipment and processes, such as storage vessels, pneumatic controllers, pneumatic pumps and compressors (centrifugal and reciprocating). The EPA also recommends leak detection and repair in addition to monitoring programs to detect fugitive emissions. Beyond generating these reporting and regulatory requirements, a nonattainment designation would also result in economic repercussions. As noted, the inability to demonstrate roadway projects’ conformity to the SIP would result in a loss of federal highway funds and could drastically impact the region’s mobility. There would also be a substantial impact to economic development, as companies are less likely to build in the region due to increased permitting requirements and the associated costs. A February 2017 study conducted for the Alamo Area Council of Governments estimated the economic impact, ranging from approximately $27.5 billion (if the region is classified as “Marginal” nonattainment) to $36.2 billion (under a “Moderate” classification). The study tabulated these impact figures based on a number of factors, including lost opportunities for company expansion or relocation to the region, permitting costs, costs associated with project delays, lost gross regional product

A nonattainment designation would also have implications for oil and gas operations in the San Antonio area, as the Atascosa and Wilson counties both lie within the Eagle Ford Shale play

If the eight-county San Antonio area were to be designated as a nonattainment region, it would trigger a series of reporting and regulatory requirements (GRP) due to construction delays and reduced GRP associated with inspection fee requirements. The study further analyzes the cost of permitting for a variety of industries, including manufacturing, utilities, and oil and gas. Across the entire metropolitan area, the estimated cost of permitting ranges from $24.2 million to $67.2 million. Oil and gas fields have traditionally been located in less populated areas. However, nonattainment boundaries continue to grow as the EPA lowers nationwide air quality standards, while drillers expand operations toward urbanized regions. This could mean that more oil and gas operators will be faced with the challenge of maintaining operations in the face of increased emission requirements. Others believe these impacts are manageable. In 2016, Ed Ireland, Executive Director of the Barnett Shale Energy Education Council, pointed out that oil and gas operations in the Barnett region have coexisted with ozone nonattainment controls in the Dallas/ Fort Worth area for a considerable time, even with operations in the region undergoing a drilling boom from 2004 to 2012. It is very important to note that a nonattainment status is not a permanent label. Regions can, and often do, demonstrate attainment for the NAAQS. However, the process to attainment is a lengthy one. Once a region has achieved the air quality standard for three full years and is formally designated with an “attainment” status, it must then submit a 10year maintenance plan that includes a demonstration of how the area will remain in compliance for the following 10 years and a contingency plan to ensure that any NAAQS violations are quickly corrected. As the region waits for the EPA’s final designation, local agencies have already begun to proactively address ground-level ozone. In August 2016, the City of San Antonio’s “SA Tomorrow Sustainability Plan” has taken steps toward identifying and implementing air quality strategies and incentives.

About the author: Beth Everage is Policy Director at HBW Resources where she consults with clients from the energy and transportation sectors on regulatory affairs, stakeholder relations and communications. Her previous experience includes energy and environmental policy advocacy on behalf of regional businesses, environmental impact studies and air quality analyses for Houston-Galveston-Brazoria SIP development and conformity demonstrations.

MARCH/APRIL 2018  SHALE MAGAZINE

BUSINESS

Employment Decisions in the Age of Social Media By: Annette Idalski, Peter Hall and Kelli Church

ashioning a social media policy in today’s climate can be both challenging and exhausting. With national policy being announced by the President via Twitter, social media touches our lives daily. The law, as usual, lags behind technology, putting employers in a precarious position when it comes to the intersection of social media and employment decisions. Federal, state and local laws prohibit discrimination based on race, sex, religion and disability — all attributes that could be discovered from social media during the hiring process. In the past, many employers were able to defeat hiring discrimination allegations by claiming ignorance of the protected characteristic. From a name on a resume, for example, the employer could say it had no idea the person was Asian or Jewish or disabled. But disclaiming knowledge is nearly impossible if the hiring manager performs a social media search. For example, a Facebook search could reveal an applicant’s race, sex, religion and/or disability. A picture of someone’s car posted on their Instagram account could re-

veal a license plate with the familiar wheelchair icon, or a bumper sticker for the Wounded Warrior Project, both of which might indicate a disability that is not otherwise obvious. Making matters more complicated, antidiscrimination laws also target “associational” discrimination, or discrimination against a person not because of that person’s own protected characteristic, but because the person is close to someone who is protected. For example, an employer might worry that someone who posts about the challenges of having a special needs child would be less reliable in the workplace because of these (completely understandable) demands on that person’s time. Being put on notice regarding information an employer would rather not know is even more likely when a manager “friends” or “follows” an employee on social media. This may provide the employer with information about religious beliefs or political affiliations that the employer might not want to know. Additionally, “friending” between management and subordinates can undermine professional relationships. Managers should err on the side of caution and avoid

Annette Idalski is a shareholder and Chair of the Employment and Labor Group at Chamberlain Hrdlicka (Atlanta). She defends employers nationwide against multi-plaintiff and single plaintiff lawsuits involving independent contractor status; wage and hour compliance; alleged discrimination involving sex, race, age and disabilities; sexual harassment; restrictive covenants; whistleblower actions and traditional labor matters. She may be reached at (404) 658-5386 or by email at annette. idalski@chamberlainlaw.com.

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friending, following or engaging with employees on social media. Conversely, burying your head in the sand and ignoring social media entirely is likewise fraught with risk. An employer might be liable for negligent hiring or retention if one of its employees “cyberbullies” another or engages in harassment online. In recent years, the National Labor Relations Board (NLRB) has been at the forefront of addressing social media issues in the workplace. For the NLRB, the issue is employees’ right to discuss workplace issues among themselves in the very public forum of social media. In the NLRB’s view, it takes very little for employees to be engaged in protected, concerted activity online. Even “liking” a Facebook post can be enough to invoke federal employment laws. In Three D, LLC v. NLRB, an employee blamed his company on Facebook for not properly withholding taxes from his paycheck. The company then fired employees who simply “liked” that post. The NLRB found that this was protected, concerted activity because the comments were a part of a discussion among current employees about a workplace issue — even

Peter Hall is a shareholder in the Employment and Labor Group at Chamberlain Hrdlicka (Atlanta). He counsels both large and small employers on a variety of labor and employment issues, including avoidance of discrimination claims, employee termination and union avoidance. Peter Hall may be reached at (404) 659-1410 or by email at peter.hall@chamberlainlaw.com.

though anybody in the world could also see the activity. Companies must also be wary because several states prohibit employment decisions that are based on off-duty conduct that might be reflected on social media. Employees have been fired for posting pictures of themselves online while inebriated or scantily clad. Firing someone for off-duty conduct is risky, unless there is a clear connection between the off-duty conduct and the workplace. So, what is an employer to do? There are a few rules of thumb. First, do not fire someone for offduty conduct found on social media unless it has a meaningful impact on the workplace. If you can’t explain how the person’s social media post impacts his or her job, you probably shouldn’t make the decision to terminate that employee. Second, do not allow managers to just “Google around” on employees. Any use of social media research should be done by a designated person who knows what information to share and what not to share. Last, with constantly evolving laws and technology, a social media policy drafted by legal counsel and tailored to your specific company is a must.

Kelli Church is an associate in the Employment and Labor Group at Chamberlain Hrdlicka (Atlanta). She counsels clients on benefits litigation, personnel policies and procedures, employment discrimination, termination of employees, worker’s compensation, wages and overtime, and other relevant issues. She may be reached at (404) 588-3438 or by email at kelli.church@chamberlainlaw.com.

MARCH/APRIL 2018  SHALE MAGAZINE

COMMUNITY

NIOSA: A Night of San Antonio Culture

an Antonio, Texas, has a plethora of attractions that keeps the city unique: the Alamo, the San Antonio Spurs (and Coach Gregg Popovich) and the Riverwalk, to name a few. Top on the list of unique events is the city-wide, 10-day Fiesta San Antonio, from April 19 to 29, 2018 — and top on the list of Fiesta events is “A Night In Old San Antonio®” also known as NIOSA®. Celebrating its 70th anniversary this year, NIOSA will be held Tuesday through Friday, April 24–27, as what most San Antonio natives consider the centerpiece of Fiesta. If you aren’t familiar with NIOSA,

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it is a four-night festival in the heart of downtown San Antonio that celebrates the city’s diverse cultural legacy through the magic of more than 200 food, drink and atmosphere booths, 14 continuous live musical acts, children’s games, decorations, costumed volunteers and souvenirs. NIOSA brings the city’s heritage alive for more than 85,000 revelers annually in 15 cultural areas: Mission Trail (the early years of the San Antonio Missions), Arneson Theatre (an amphitheater built into the natural curve of the city’s riverbank), Chinatown, Clown Alley, French Quarter, Froggy Bottom (cultural contributions of African

Americans), Frontier Town, Haymarket (markets near San Fernando Cathedral that date back to the city’s Spanish Colonial period), International Walkway (different ethnic groups that shaped San Antonio’s unique heritage), Irish Flats, Main Street USA, Mexican Market, Sauerkraut Bend, South of the Border (Northern Mexico influences) and Villa España (showcasing Spanish and Canary Islanders’ heritage). This description of just one of those cultural themes — Frontier Town (which debuted in 1966) — will give you an idea of what you can expect at NIOSA: it’s a duplication of an early Texas settlement (including an official U.S. Postal substation, which offers an official NIOSA cancellation stamp) re-created in one of the largest areas of NIOSA. A windmill marks the center, where there’s plenty of room for bootscootin’ and grazing. Culinary offerings such as Horseshoe Sausage (an exclusive NIOSA recipe — 750 pounds consumed annually), Texas Bird Legs, Cowboy Klopse (a deep-fried meatball in jalapeño batter), Sopapillas, Steer-on-aStick, Shypoke Eggs, City Slickers (seasoned cucumbers) and Ranch Steaks keep visitors’ appetites satisfied. There are plenty of Wrangler Margaritas, cold beer and nonalcoholic Mangonadas in this area. Mario Flores & The Soda Creek Band will be performing at that location each night. 

PHOTOS COURTESY OF A NIGHT IN OLD SAN ANTONIO

By: Jeanne Albrecht

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What makes NIOSA unique from other festivals around the world? • Food items are created, perfected and prepared by NIOSA volunteers on-site, and truly reflect the areas where they can be found. • All booths are run by Conservation Society volunteers; many are from second- or thirdgeneration families. Volunteers come from all over the country to work at NIOSA. • On average, NIOSA revelers annually consume over 17,000 pounds of beef; 11,000 pounds of chicken; 5,000 pounds of sausage; 3,000 turkey legs; 25,000 buns, rolls and bolillos; 30,000 tortillas; 2,000 pounds of masa; 6,000 tamales; 15,000 pounds of fruits and vegetables; and 1,000 poundsof guacamole. • All musical acts play all night, every night during NIOSA.

• José Antonio Navarro House (now the José Antonio Navarro State Historical Park),1953 • Twenty-two historical buildings in HemisFair (now the centerpiece of a Hemisfair Park redevelopment), 1965 • Old Ursuline Academy (now the Southwest School of Art), 1965 • landmark designation for 500 acres of Fort Sam Houston, 1976 • bill that created San Antonio Missions National Historical Park (now a UNESCO site), 1979 • Fairmount Hotel (its relocation set a Guinness world record), 1985 • Aztec Theatre, 1988 • $250,000 to restore the Majestic Theatre, 1989 • $300,000 toward the San Pedro Playhouse, 1994 • $100,000 toward the relocation and reassembly of the Sullivan Carriage House (now the San

Antonio Botanical Garden entrance), 1995 • $50,000 toward the reuse of the Hays Street Bridge as a hiking/biking trail, 2001 • $300,000 to restore the Bexar County Courthouse, 2002 • Historic Farms and Ranches committee (formed to survey endangered historic farms and ranches in Bexar County and to update the 1973 Bexar County survey), 2006 to present • local landmark designation for 10 historical farms and ranches, 2008 Many of us can’t fathom San Antonio without its historic landmarks that remind us of our heritage, just as many of us can’t fathom San Antonio without “A Night In Old San Antonio.” Discounted advance tickets are available for $12 at www.niosa.org and other locations around San Antonio, starting March 1; visit the website for specific locations. Discounted e-tickets can also be purchased on the NIOSA website. Support the Conservation Society in its never-ending commitment to preserve San Antonio’s past by joining the Society, volunteering at NIOSA — or even just attending its “celebration of preservation” and enjoying the incredible food, drink and music! By the way, you can have a mini-NIOSA for your friends and/or clients. For the past 57 years, Conservation Society volunteers have also staged NIOSITAs (private, mini-NIOSAs) in the La Villita Historic Arts Village for conventions, meetings or any groups of 300 or more who love a fiesta, to raise additional funds for the Society.

PHOTOS COURTESY OF SAN ANTONIO CONSERVATION SOCIETY

All this partying at NIOSA does have a purpose: it is the top fundraiser in the nation for historic preservation, truly living up to its motto as a “Celebration for Preservation.” NIOSA is solely sponsored by and benefits the San Antonio Conservation Society. Founded in 1924, the society is one of the oldest and most active community preservation groups in the United States. Out of the roughly $1.5 million netted annually at NIOSA, these proceeds support restoration and preservation of historic properties, parks and waterways throughout the city and neighboring counties, and fund education and advocacy initiatives such as the Heritage Education tours, seminars, grants, scholarships, the

resource library and its two house museums. After all, where would San Antonio be without the Conservation Society protecting its historic buildings and parks? Here are just some of the treasures that would not be part of San Antonio if Conservation Society leaders had not used NIOSA proceeds to battle for their existence: • Bombach building (now the Little Rhein Steakhouse), 1949

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About the author: Jeanne Albrecht, Conservation Society Capital Club member and NIOSA volunteer for over 20 years. For more information: Visit www.niosa.org, contact by phone at (210) 226-5188 or by email at niosa@niosa.org, or follow NIOSA on Facebook at www.facebook/niosa.niosa. NIOSA’s website includes an interactive map, lists of all foods, beverages and entertainment, and more.

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MARCH/APRIL 2018  SHALE MAGAZINE

COMMUNITY

Mental Health Discussion Needs to Take Place Following Florida Mass Shooting By: Kelly Warren Moore

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As is always the case in hindsight, many signs that might have prevented this tragedy seem to have been missed If the patient is admitted involuntarily, they can discharge themselves after only 72 hours of observation. If the clinic or facility is overcrowded (as most are) and short-staffed (as most are), in some

cases it could be nearly impossible to receive the necessary care to address a severe mental health crisis. A good outcome truly depends on a perfect timing of symptom emergence, caregiver initiative and

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e watched in horror this month as a modern-day Valentine’s Day massacre occurred at a Florida high school in Parkland, Fla. As is always the case in hindsight, many signs that might have prevented this tragedy seem to have been missed. And as always, the news programs display messages and share thoughts on why this tragedy occurred. As usual, there is a constant stream of assigning blame and pointing fingers. But if history repeats itself, any honest conversation about the reality of the mental health crisis in this country will continue to fall on deaf ears. Unless one has experienced the horror of a serious mental illness firsthand, it is difficult to comprehend what happens when loved ones try to get help for a family member or friend in crisis. This becomes even more difficult for individuals who are between 18 to 25, which is often “prime time” for the first actual manifestation of a mental disorder in young adults who may have been looked upon as “awkward” or “socially challenged,” or were labeled with “behavioral issues” or “disciplinary problems” as a child. Even with good private insurance, it is very difficult to find appropriate mental health care for patients in crisis. Waiting lists are long for psychiatrists that accept insurance, and those who are private-pay charge upward of $350 per hour — and even then the specialist often won’t effectively treat patients who are acutely ill. Often, the mentally unhealthy patient is often completely detached from reality and unaware of the fact that they are in need of treatment. If the patient is over the age of 18, there is little to no medical information that can be shared with the parent or guardian, unless the patient expressly agrees that it can be shared. Oftentimes, young people this age are away from home, at college or living on their own for the first time, so parents may not be aware of any changes in behavior or mindset of their children until a full-blown emergency occurs. If the patient somehow finds a way to an emergency room during a crisis, it’s still no guarantee of getting the proper help. Often the patient has used drugs during or leading up to the crisis, which can effectively pour gasoline on an already smoldering fire of mental illness. The patient may become violent or resist the efforts of those trying to help. Because these patients are dangerous and disruptive to those around them, they often go from emergency room to jail cell without any treatment at all, as a precaution to protect other patients and caregivers. It is very difficult for family or friends to intervene by admitting a loved one to a specialty mental health treatment facility involuntarily. The facility cannot detain the patient if they do not give consent to being evaluated and treated, unless the family member or friend can prove that the patient is a danger to either themself or others.

the right clinician who not only has the interest but the authority to properly diagnose, stabilize and treat the patient. Once a patient is finally evaluated, treated and stabilized enough to be released, they often find adjusting to everyday life difficult. In a best-case scenario, they are able to return to their normal routine. However, the lifelong necessity of taking medication, and the frequent mental health checkups and ongoing counseling can be a source of stress for the patience, especially if they lack a sufficient support system. For example, even with access to health care, according to local officials the shooter in the Parkland tragedy had previously been treated for mental illness by a local facility for nearly a year. He, unfortunately, had stopped attending his appointments a few months before taking 17 lives. As a society, it’s time to face up to the elephant in the room. What has changed in the past couple of generations? Is easy access to violent video games the cause? Has the virtual reality numbed the emotional response to the idea of mass gun violence? Or, is giving more medication earlier in life, while brains are still developing, the cause? Are the 24-hour news cycles that show graphic violence and rage nonstop adding to the problem? Is the addiction to screens — be they televisions, computers, game consoles and mobile phones — partly to blame? The need for increased study into the correlation among all these variables and the seemingly growing prevalence of young adults who are disenfranchised, angry or mentally unstable is critical. Personally, my sense is that there is some sort of correlation — the only question is whether we will be able to affect change in mental health care and limit exposure to these elements that have become such pillars (unstable as they may be) of convenience in our daily lives.

About the author: Kelly Warren Moore has sold clinical research and development software solutions to the pharmaceutical and biotech industries for the past several years. She previously spent 20 years in business development for the pharmaceutical research and development field, focusing on multistudy, global clinical programs. She has a Bachelor of Arts degree in economics from the University of Texas at Austin.

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Any opinions expressed in this article are strictly her own and are not meant to represent those of any employer, client or organization with whom she is affiliated.

MARCH/APRIL 2018  SHALE MAGAZINE

LIFESTYLE

Beautify for Confidence By: Amanda Vu important to accentuate the eyes with a precise liquid eyeliner — one of my go-to cosmetic products — along with your chosen lipstick shade to complete your professional look. Weekend makeup depends on personal lifestyle and how you wish to tailor your look appropriately for the occasion. The makeup you wear to the grocery store versus the makeup you wear for a girl’s night out demands completely different techniques. With my background in the beauty and cosmetics industry, I love to have fun and experiment with my weekend makeup! If I’m going for a “night out on the town,” the “musts” are a bold lip, a cut crease, and full-on highlighting and contouring. For “date night,” I try to steer away from anything too theatrical, instead opting for my makeup to have an elegantly enhancing effect (boyfriends just don’t appreciate a shimmery highlight like your girlfriends do). Because we are in such a busy and mobile world, I love utilizing multipurpose products. I find myself regularly rushing from work to dinner these days. While the looks I wear for each might not be the same, I really enjoy the ease of using products that can take me from one to the other. One of my favorite products, which can add immediate dimension to my look, is called Nars Copacabana. I use it to add a pop of shimmer to my eyelids or cheeks, and I even mix it with my evening lip color for a subtle glow. The most important part of cosmetics is that you feel confident. Use the tools at your disposal to embellish your favorite traits. With this in mind, you can’t go wrong!

About the author: Amanda Vu draws from a lifelong passion for the beauty industry that dates back to her mother’s makeup to co-own and operate The Lash Lounge at Memorial Green. As a licensed cosmetic technician from the Texas Department of Licensing and Registration, Vu adds value and insight from every vantage point to create the ultimate experience for each client. Vu started her career at MAC Cosmetics, and her extraordinary creativity spurred her desire to attend and graduate from Parsons School of Design in New York. Vu is an active member of the Greater Houston Women’s Chamber of Commerce and the Greater Houston Restaurant Association.

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love the creativity and empowerment that makeup gives women. As I get dressed for the day, I look at my cosmetics in the morning as an arsenal filled with “weapons of mass beautification.” I can be anyone I want to be in 15 minutes. When I think about business makeup, and how one should look to be viewed as a professional, three words come to mind: clean; complimentary; warm. Being professional encomapsses everything from a person’s demeanor and reliability to poise and appearance. When it comes to running a business or working in a corporate environment, makeup should reiterate professionalism. The way you present yourself in the workplace directly translates into performance and success. Wearing loud, bright and even seemingly theatrical makeup can be distracting to those working around you and draw attention away from your work objectives and contributions. Clean, light-handed makeup ensures that others are focused on your work, rather than appearance, in the office. With fluorescent lighting in most office spaces, choosing what makeup to wear can be tricky, especially when you’re trying to balance looking your best and maintaining professionalism. Warmer-toned eyeshadows will reduce the harshness of office lighting. Pair that with a lip color that, as a good rule of thumb, is within three shades of your natural lip color for a professional appearance and to complement your makeup. To be professional yet leave an impression, I encourage drawing focus to the eyes, as they are the window to the soul. Classic lash extensions are the perfect “frame” for this window. It is also both simple and

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LIFESTYLE

What to Wear to Work By: Danielle Turcola ent lunches or networking events. Your consistent, polished presence will pay dividends in the long run — I know this is true from the years of transforming men and women into powerhouse leaders. Both private and corporate clients attribute the trajectory of their careers and incomes, in part, as a result of their transformations. There’s a new respect. A personal power.

ressing for work is a dilemma for millions of working professionals each day. Most people open their closets, sigh, and say, “I have nothing to wear.” Continue reading and discover some pointers on what to wear to work. There are so many nuances to managing one’s perception toward others, and the first component is the visual message that clothing sends. Clothes have a language, and it can leave a lasting impression. For 28 years, I’ve been a secret weapon for hundreds of executives, emerging leaders and professionals who need to instantly project a credible

SHALE MAGAZINE  MARCH/APRIL 2018

and trustworthy presence to influence business outcomes. These brilliant men and women are expected to keep things running at work, initiate change, lead others, negotiate mega-deals and penetrate global markets.

A millennial coaching client told me he thought business clothing was overrated, but now refers to his multifunctional wardrobe as a strategic business tool. During interviews, he has received praise for his professional appearance that was consistent with the company’s brand. Throughout the interview process, they could picture him in the position, representing the company. He received immediate offers. During one interview, he was the only candidate out of four waiting in the lobby who was not wearing a black suit, white shirt and black tie. He had his own personal, professional and polished style that was comfortable and believable for his age, his personality and the position’s role. Two other millennial clients had career-advancing outcomes as a result of moving to more polished wardrobes and away from the super-relaxed trendy styles they wore on weekends. Clothing trends don’t always flatter or benefit us in a business setting.

Dress “Business-Ready”: The Immeasurable Edge

Match Your Wardrobe to Your Message for Maximum Impact

Dressing “business-ready” means dressing each day to take advantage of unexpected opportunities. You want to be the person decision makers include in strategic meetings, sales calls, cli-

You will want to select wardrobe pieces that match the tone of the message you want to deliver. Whether presenting to the company’s Board or members of

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Clothing: A Strategic Business Tool

your team, your clothing choice can subliminally communicate authority, approachability or creativity. You want to match the “subliminal message” so there is visual and verbal congruency — not a disconnect — for your audience. • Authority: when you need clout. Solid dark fabrics, flat finishes, worn with a high-contrast neutral shirt or blouse sets a serious or somber tone. • Approachability: when you want consensus. Solid neutrals worn with solid-colored shirts and blouses set a fun and friendly mood. • Creativity: when you want creative inspiration and lively interaction. Wearing pattern, color or texture gives the perception that you are creative, and encourages others to think creatively. Business Dress Categories All levels of business dress have a purpose in the workplace. Each communicates a certain level of influence, status, detail-mindedness, formality or lack thereof. Each style of attire sets the wearer up for a different level of authority and acceptance. All industries and professions have written dress guidelines for their specific business cultures. Yet, companies are often challenged by a range of clothing often worn by employees that is outside their guidelines. In today’s casual workplaces, what is worn in the office is often too casual for clientfacing meetings, contract negotiations, business conferences and global assignments. There is power in business clothing. Dressing “business-ready” pays dividends by positioning you for unexpected career opportunities. What you wear to work is a strategic business tool and should project your professionalism and authority every day.

THE FOLLOWING DESCRIPTIONS OF WARDROBE PIECES ARE CURRENT GUIDELINES IN AN EVER-CHANGING CORPORATE LANDSCAPE  PROFESSIONAL BUSINESS

 CASUAL

Men: Suits, dress shirts, ties, braces, tie shoes (leather soles), wool or cashmere topcoat, raincoat

Men: Cotton-blend khakis/chinos, jeans, shortsleeved shirts, collared golf shirts, fine quality T-shirts, Brogues, sports shoes

Women: Skirted suits, silk blouses, shells worn under jackets, dresses with sleeves or sheaths worn with jackets, high-quality pantsuits, pumps, wool dress coat, raincoat

Women: Khakis/chinos, jeans, knit tops with sleeves, shirts, sweaters, flats, sports shoes  PERSONAL LEISURE

 CORPORATE CASUAL Men: Blazers, dress shirts, tailored tropical wool trousers, ties, tie shoes or loafers, raincoat

These choices can be career derailers in corporate business environments.

Women: Pantsuits, jackets, skirts, blouses, knit shells, tailored cotton shirts, fine-gauge sweaters, cardigans, mid-high heels, wedges, flats, raincoat

Men and Women: Destroyed or distressed garments, clothing with offensive slogans or graphics, sagging pants, shorts, stains, rips and snags, pet hair, flip-flops, worn and scuffed shoes

 BUSINESS CASUAL

Women: Leggings, athleisure wear, bralettes, mesh, netting, lace, camis, exposed skin, stilettos, slippers

Men: Sport coat, solid or patterned shirts in fashion colors, sweaters, tailored dress trousers or highquality blended-content trousers, Oxfords, loafers Women: Pants, jackets, skirts, colorful and patterned cotton blouses, knit shells, tops with threequarter length sleeves, cardigans, sweaters, Oxfords, wedges, flats

Certain industries (e.g., oil, gas, nuclear) have specialized attire categories to meet federal, state or local regulatory guidelines where special protective uniforms, textiles and footwear are required.

10 WARDROBE  A jacket is a garment of authority and elevates a casual outfit instantly.

BUILDING TIPS

 More skin = Less credibility.  Always keep a blazer/jacket, fresh shirt/blouse and a pair of business shoes at work for an unscheduled meeting with senior leaders.  Try everything on in the store before purchasing items or as soon as online purchases are delivered to you.  Sit, bend, reach and stretch in front of a mirror when trying on garments to see how you will

function in them, and what others will see when you wear them.  Divide the cost of an item by how often you will wear it to justify the purchase price.

 When you dress down, people talk down to you.  Emerging leaders should dress like a leader.  Develop and project a consistent professional presence early in your career.  A polished presence increases your personal impact and professional influence on others.

About the author: Danielle Turcola has been turning leaders and emerging leaders into powerhouses for 28 years. She is president of the consulting firm Professionalism International Inc., and founder and CEO of What to Wear to Work Inc. As an expert in executive presence and influence, Turcola is a trusted advisor to corporations, executives and private clients who want to increase their professional influence. Her transformed clients command the room with a presence that is credible, memorable and influential. For global business interactions, she gives executives an immeasurable edge by introducing them to the cultural nuances of their international business partners. For more information about Turcola, call 216-926-3699 or visit www.askdanielle.com.

MARCH/APRIL 2018  SHALE MAGAZINE

LIFESTYLE

Running on Empty: Connecting the Oil and Gas Industry with Women’s Health By: Menopause Taylor (Barbie Taylor, M.D.)

SHALE MAGAZINE  MARCH/APRIL 2018

these women are suddenly stuck, unprepared to get themselves out of the situation and left to their own devices to deal with their misery. Their estrogen tanks are empty, forever. And the long-term consequences are much more devastating for running out of estrogen than they are for running out of gas. Running out of

How much do you know about menopause? How much do you talk about it? estrogen can lead to death from heart attack, or contribute to osteoporosis or Alzheimer’s disease. And yet, no one will even talk about it. Turns out, there’s a stigma attached to a permanently empty estrogen tank. Women have been running out of estrogen for centuries. Centuries! And yet, in this day and age, women are still unprepared for it. With all the great medical advances in our world, how have we neglected to address an inconvenience this widespread and profound? Why must each woman learn about it through the tragedy of silent suffering? It’s absurd! Just as oil is our wealth, estrogen is a woman’s health. Without it, she has to either replace the estrogen or find alternative fuels to fill her tank. An empty estrogen tank doesn’t affect just the individual woman. Think of the consequences for society at large. The 65-and-older population is the fastest growing sector of society. Menopausal women are so numerous that it is likely there isn’t a single person who doesn’t have at least one menopausal woman in his or her life. So, this ignorance of the topic affects every individual on earth. It affects the quality of marriages, bonding with children, productivity at work, and interest in friendships.

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icture a woman driving down the road without a care in the world. She’s secure in the fact that the oil and gas industry will keep her running on a full tank of gas. She’s always been able to rely on this and is imbued with the assumption that it’ll never let her down. But suddenly, her gas gauge starts acting up. It becomes erratic, swaying from full to empty within an hour. Next, it drops to nearly empty and triggers the warning light for a fill-up, even though she knows the gas tank can’t be nearly empty. And then, bam! Her car stalls. No matter what she does, the darn car won’t move. She tries calling AAA, but it’s no longer in service. Next, she calls her car rescue service: not a working number. She dials her husband but gets voicemail ... and his mailbox is full. Her kids have already moved out of the house and out of town, so they can’t help her. Her best friend says she can’t talk right now. All the while, cars zip past her. A few drivers look her way with an expression that says, “What’s your problem?” But no one stops to help her. They’re busy with their own lives and have no time to be bothered with hers. Most of the drivers don’t even see her, as if she’s invisible. She’s alone, stranded, and flustered ... more uncomfortable than she’s ever been before. And then she gets a news flash on her cellphone informing her that this state of affairs will continue for the rest of her life. She’ll be running on empty forever. The message says this is “normal.” Normal? She’s shocked. If it’s “normal,” why didn’t anyone prepare her for it? How can anything so untimely and uncomfortable be “normal”? As you read that vignette, were you thinking that would never happen? Well, here’s the shocker. What I’ve just described isn’t a gas tank with no gas. It’s a woman with no estrogen. It’s called “menopause.” This scenario happens to 6,000 women a day in the United States alone! But it’s not only occurring in the U.S.; it’s a worldwide phenomenon. All

How much do you know about menopause? How much do you talk about it? How much have you done to prepare yourself, your spouse, your kids and your colleagues for it? How much does your workplace make accommodations for women who are running on empty estrogen tanks? With so much riding on estrogen, don’t you think it’s time to fuel society’s need to mobilize people on the matter? The very first step is education. And because running out of estrogen is like running out of gas, why not begin the movement with the oil and gas industry? It fuels everything else — why not menopause education? Education on menopause would be tantamount to arming every woman with a complete tool kit for dealing with an empty tank. What could be better for business, and our world, than that? Do you think this reluctance to know our options for keeping our “estrogen tank” full would be the same for men if they suddenly ran out of testosterone? Of course not! So why have we neglected women? I’m determined to change this. I’m an oil well for menopause, and I’ve started a movement. I intend to continue moving forward no matter what, and I invite you to contribute fuel for this movement.

About the author: Menopause Taylor (Barbie Taylor, M.D.), obstetrician-gynecologist and women’s health and menopause expert, teaches women the facts and options so that each woman can tailor her menopause her way and make the rest of her life the best of her life. Dr. Taylor holds a Doctor of Medicine degree from Baylor College of Medicine, a law degree from the University of Houston Law Center, and a Master of Business Administration from the University of Houston – Clear Lake. For more information, please visit www.menopausetaylor.me.

MARCH/APRIL 2018  SHALE MAGAZINE

SOCIAL

SHALE’s January/February Cover Party

PHOTOS COURTESY OF SHALE

SHALE Oil & Gas Business Magazine hosted the January/February cover party honoring Sean Strawbridge, CEO of the Port of Corpus Christi, on January 24 at the Congressman Solomon P. Ortiz International Center in Corpus Christi, Texas. Guests enjoyed hearing from distinguished speakers, and savoring the tasty appetizers, cocktail beverages and fantastic networking!

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SOCIAL

SAPA February Luncheon

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The San Antonio Pipeliners Association (SAPA) hosted its monthly luncheon at NuStar Energy’s headquarters in February. Chris Smith, Managing Editor at Oil & Gas Journal, presented the “2018 Worldwide Pipeline Outlook” to the attendees, which included SAPA members and guests, NuStar employees and students, including SAPA’s annual scholarship recipients. SAPA’s luncheons are always a great opportunity to network with fellow industry professionals. For more information on the next meeting, visit sapipeliners.org.

MARCH/APRIL 2018  SHALE MAGAZINE

SOCIAL

WEN Houston Hosts Recent Events

PHOTOS COURTESY OF SHALE

The Womenâ&#x20AC;&#x2122;s Energy Network (WEN) Houston has been very busy recently hosting events to further their mission and goals. The Chocolate Tasting event and the Winter Networking event were both opportunities for members to network and develop relationships with other WEN members. The Winter Networking event also acts as the annual membership drive where the different WEN programs and the value of WEN are explained. The Volunteer Appreciation event recognizes everyone who volunteered for WEN over the year, and has some specific awards to acknowledge women who went above and beyond for WEN during the year. WEN recently hosted a Young Women Energized (YWE) event. YWE is a high school outreach program that provides girls with support and resources in preparation for college and encourages them to go into STEM-related careers. In addition, WEN gives out scholarships each year to high school seniors going into STEM-related majors.

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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.

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SOCIAL

Design Your World STEM Conference for Girls

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The Dallas Society of Women Engineers’ 12th Design Your World STEM Conference for girls was held on November 11, 2017, at Legacy Prep Academy in Plano, Texas. By the numbers, 120 girls (6th through 8th grades), 25 parents and educators, and 128 volunteers made this an educational and fun day learning about science, technology, engineering and math (STEM). Student activities included Bitsbox Programming, Balloon Cars, Night and Day Astronomy, Weather Stations, Water Bottle Rockets and Bridge Building. Parents and Educators enjoyed learning from a panel of engineering students and recent graduates, took in a college counselor’s talk on engineering career choices and pathways, and poured over resources on how to find activities and events to keep their students and children engaged in STEM topics. The day concluded with an Engineering Fashion Show, where engineers taught students about the specialized clothing they wear to protect themselves or the products they work on. This event was especially rewarding because the majority of volunteers are women engineers, so the students can “see it to be it” and picture themselves in an engineering career. The next Design Your World STEM Conference will be at Seagoville High School P-Tech Academy in Dallas on April 14, 2018. Visit the event website at www.designyourworld.org for more details and to see other past event recaps.

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Delivering insight into the development of the Eagle Ford Shale and Permian Basin plays and the businesses affected

SHALE SHALE SHALE SHALE SHALE SHALE OIL & GAS BUSINESS MAGAZINE

JAN/FEB 2016

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MISDIRECTED ENERGY ON CLIMATE CHANGE

SHATTERING THE OIL AND GLASS CEILING

WOMEN IN ENERGY & BUSINESS

EMBRACE & EXCEL IN A MOBILE ERA PIPELINE PROJECTS GET NEW LIFE UNDER TRUMP

AN ENTREPRENEUR IN THE BUSINESS OF GIVING STATE OF ENERGY SAN ANTONIO FEATURES GREAT SPEAKERS

CULTURE OF INNOVATION:

SOUTH AFRICAN RESTAURANT IN HOUSTON WITH PROGRESSIVE CUISINE

ATV ADVENTURE TAKES FLIGHT NATIONAL SAFE DIGGING MONTH

CITIZENS FOR LNG & ENERGY DAY A GREAT SUCCESS!

DOUG SUTTLES WITH ENCANA

THE BLM METHANE RULE WAS FLAWED FROM THE START

WAYNE CHRISTIAN A GOOD MAN FOR A CHALLENGING TIME

THE INFLUENTIAL LEADER:

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2016 FUTURE OF THE REGION SOUTH TEXAS BALANCE AND DIFFUSION OF POWER: THE 10TH AMENDMENT

STEER HOSTS PRESS CONFERENCE ON EAGLE FORD IMPACT STUDY RECLAIMED LAND CREATES AN OUTDOOR ASSET FOR EVERYONE

WOMEN IN BUSINESS

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SAPA AND WEN TEAM UP

DONALD TRUMP IS KEEPING CAMPAIGN PROMISES TO THE ENERGY INDUSTRY

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NAVIGATING NEW TERRITORY: BLUEBONNET DISTRIBUTING

CONOCOPHILLIPS’ CHARITABLE GRANTS SPAN THE EAGLE FORD SUPPORTING ENTREPRENEURSHIP IN THE ENERGY SECTOR

JOHN WALKER SCOUTING FOR SUCCESS

MAY/JUNE 2016

SPURRING ENERGY EDUCATION DAY WITH STEER AND SPURS CONOCOPHILLIPS AND HALLIBURTON COMMUNITY PROGRAMS ENERGY INDEPENDENCE FROM OPEC NATIONS TEXAS RRC WELCOMES A NEW EXECUTIVE DIRECTOR

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INTERNATIONAL BUSINESS ISSUE

A NEW ERA

SHARON SPURLIN

SPREAD THE WORD: AMERICAN ENERGY IS INNOVATIVE

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2016

YOUNG WOMEN ENERGIZED TARGETING HIGH SCHOOL STUDENTS

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TRUMP MEANS BUSINESS

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SHALE MAGAZINE  MARCH/APRIL 2018