SHALE Oil & Gas Business Magazine Mar/Apr 2015 by SHALE Oil & Gas Business Magazine

// LOW GAS PRICES COME AT A HIGH COST FOR TEXAS ECONOMY //

SHALE OIL & GAS BUSINESS MAGAZINE

MARCH/APRIL 2015

LEGISLATIVE COMMITTEES

SKILLS DEVELOPMENT FUND GRANTED TO EMPLOYERS

AND HOW THEY AFFECT OIL AND GAS NEW PROJECT IN PLANS FOR BIG BROTHERS BIG SISTERS

OILFIELD SAFETY IN THE PERMIAN BASIN

SAFETY AT HEART

WOOD GROUP PSN PUTS SAFETY FIRST

ROAD SAFETY WITH STEER // A NEW CHALLENGE FOR PEMEX MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

sus·tain·a·ble

/səˈstānəbəl/ adjective 1. able to be maintained at a certain rate or level. 2. able to be upheld or defended. synonym: Horizon Clear Fluid System

Re s p o n s i b l e . S u s t a i n a b l e . V i a b l e

™

Our drilling mud has been clearly redefined. The Horizon Clear Fluid System™ is a revolutionary new hybrid water-based drilling fluid system that uses agriculturally-sourced ingredients, making it a sustainable alternative to oil-based muds. This system is built with 100% environmentally-safe ingredients, straight from nature, setting a new standard of health, safety and environmental practices in the field.

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

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

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

www.AEPTexas.com/shaleoilgas @AEPTexasEconDev

Specializing in oilfield supplies and service throughout the Eagle Ford Shale  Dual & single belts -Cam belt  Hydraulic Rams, Value Banks, Pumps, Motors  Sauer Danfoss, Chains, Chain Drive  Specialized Tooling. Tool Box, Machining  Discharge & Suction Pumps  Suction Manifold  Discharge Manifold  Murphy Gauges  Sensors  Circuit Board

Exclusive Dealer for the Eagle Ford Shale Territory PYRICOAT: is an all-natural soil treatment application designed to inhibit the oxidation process of soil with harmful metals and minerals. By coating the soil with Pyricoat, minerals will be encapsulated, which will stop any liquids from further contamination such as coal mining runoff. This application has increased acidic waters PH levels from 3.4 to 6.5 for over three years now in alpha test in coal mining areas. FECONTROL: is an all natural product used to binds, encapsulates and creates a carrier for iron sulfites and other damaging microscopic particles from crude oil. When applied to crude oil directly it reduces iron, sulfides and other corrosives by up to 93% when separated. Using this product will save downtime by reducing maintenance days by eliminating the corrosive iron sulfides from the crude before being introduced into the refineries. This application will also augment the existing downstream process of removing iron from crude oil. RELOAD: is an all natural product use for treating frac and produced water. This product creates a top layer of hydro Cardons in Frac or produced water. This application is perfect for recovering oil from the formation fracturing process in the flow back and produced water will help in the recycling of the water for reuse in the formation fracturing process. ReLoad is most effective when introduce into holding tanks or holding ponds with a circulating pump. ReLoad will also help keep out moisture when needed.

- Sand Kings - Sand Chiefs - Blenders - Hydration - FRAC Pumps - Falcons - Batch Mixers

ReLoad is used on water for the separation of water and hydro carbons PREMIUM RELOAD: is an all natural product use for treating frac and produced water. This product binds and encapsulates the heavy metals including the damaging iron sulfites and keeps them from the oxidation process. The method reduces iron sulfates by 90% and makes the separation of solids from water more efficient. This product pushes the hydrocarbons to the surface while creating a layer of encapsulated metals. This application is perfect for recovering oil from the formation fracturing process in the flow back and produced water will help in the recycling of the water for reuse in the formation fracturing process. Premium ReLoad is most effective when introduce into holding tanks or holding ponds with a high turbulence application. Premium ReLoad also binds heavy metals in acidic water and helps eliminate corrosive effects. Premium ReLoad is use on water for inert effect on heavy metals.

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

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

CONTENTS

MARCH/APRIL 2015 FEATURE

14 Low Gas Prices Come at a High Cost for Texas Economy

COVER STORY SAFETY AT HEART: 16 A look into the history and guiding

principles that have led Wood Group to its current success

INDUSTRY

24 Road Safety 26 The Future of Oil Prices Is Anyoneâ&#x20AC;&#x2122;s Guess

28 PEMEX: New Procurement Challenge 30 Oilfield Safety Is Imperative in Texas

BUSINESS

36 Coastal Compass Education and

Career Resource Center: A Resource for Employers 38 The Workforce Impact: Train Your Workforce and Power Your Business 40 Protect the Longevity of Your Business

POLICY

46 Texas Legislature Hears from Oil and Gas Industry Stakeholders

48 Texas Legislature Gets Down to Business

LIFESTYLE

54 Joshua Creek Ranch Is Much More Than a Hunting Lodge

56 Lifestyle Changes for Optimal Health and Wellness

COMMUNITY

62 US Holiday Give Back

NONPROFIT

66 Big Brothers Big Sisters of South

Texas Launches Capital Campaign

SCENE

68 January/February Cover Party 70 In the Oil Patch 72 SA to DC/West Texas Energy Consortium

COVER AND TABLE OF CONTENTS PHOTOGRAPHY BY: MALCOLM PEREZ

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

ADVISORY BOARD OMAR GARCIA - SENIOR ADVISOR

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

JEFFREY A. WEBB

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

& GAS BUSINESS MAGAZINE OIL OIL & GAS BUSINESS MAGAZINE VOLUME 2 ISSUE 2 • MARCH/APRIL 2015

KYM BOLADO CEO / PUBLISHER

CHIEF FINANCIAL OFFICER Deana Acosta

EDITOR IN CHIEF Lauren Guerra

ART DIRECTOR Elisa Giordano

ASSOCIATE EDITOR Katie Carmichael

COPY EDITORS

Katie Buniak, Maegan Sheppard

EDITORIAL INTERN Julia Le-Nguyen

JAMES M. SUMMERS

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

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 Co-chair for the Texas chapter of the International Association of Outsourcing Professionals (IAOP). 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 2006, he taught Ph.D. candidates in a business and government seminar at the University of Texas at Dallas, and in 2005, he completed a long-term assignment in Afghanistan, where he was Deputy Chief of Party for a central bank modernization project.

ADMINISTRATIVE ASSISTANT Josie Cuellar

VICE PRESIDENT OF SALES Liz Massey Kimmel

CONSUMER INSIGHT MANAGER Gloria Perez

ACCOUNT MANAGERS

Christi Guillory, Ingrid Hollinger, Diana Keisler, Gloria Perez, Salome Stevens

ASSISTANT ACCOUNT MANAGERS Debbie Carter, Laura Martinez

CONTRIBUTING WRITERS

Arturo F. Henr’quez Autrey, David Blackmon, Katie Carmichael, Dr. Janet M. Cunningham, Omar Garcia, Bill Keffer, Gloria Leal, George F. Long, Rita Olufowoshe, David Porter, Ken Trevi–o, Thomas Tunstall, Ph.D.

STAFF PHOTOGRAPHER Malcolm Perez

PHOTOGRAPHERS

Jose Alcala, Jonathan Swindle

BRADLEY H. LENZ

Director – Economic and Business Development Bradley H. Lenz is Director – Economic and Business Development for AEP Texas, a unit of American Electric Power. As director, he oversees the company’s economic and business development operations including oil and gas operations. This activity extends throughout the AEP Texas service territory. Previously he was the operations support manager - Electric Distribution System of AEP Texas. His responsibilities included resource planning, managing the electric distribution budget, and managing the back-office functions and the annual storm restoration drill to prepare for hurricanes and other major natural disasters. Prior to operations support, Lenz held several management positions with AEP Texas and the former West Texas Utilities Company. Lenz began his career in 1991 with West Texas Utilities in Abilene as an engineer in Marketing, focusing on commercial customers. Prior to that, Lenz was a cooperative student with TXU Electric. Lenz earned a bachelor of science degree in electrical engineering from Texas A&M University in College Station, Texas, and has completed the Ohio State University Leadership Development program.

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

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 OFFICES: 5600 Broadway Ave., San Antonio, Texas 78209 18756 Stone Oak Pkwy, Ste. 301, San Antonio, Texas 78258 For general inquiries call: 210.854.3361 Copyright © 2015 Shale Magazine. All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

BE RESOURCEFUL

Now Hiring Drivers apply at drive4suncoast.com

s y a l P le a h S s xa e T es g c n i i v l r e e u F nS o i t a t or p s n a Tr d l com e i f rces. il

esou urces.com r t s a o sunc ncoastreso 3604 * u ) s 5 @ 3 shale L (38 E U F 677800-

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

CONTRIBUTORS Arturo F. Henríquez Autrey was appointed as the first Chief Procurement Officer (CPO) of Petróleos Mexicanos (PEMEX) in February 2014, and also serves as Chairman of the Board of PEMEX Procurement International Inc. (PPI). He is the former Director for KPMG Mexico, overseeing the M&A, finance, and financial consulting departments for Mexico and Central America. Henríquez Autrey holds three master’s degrees, including an MBA from the Kellogg School of Management, and has an undergraduate degree in economics from Boston University. David Porter was elected statewide to serve a six-year term as Railroad Commissioner in November 2010. Commissioner Porter has been appointed to the Interstate Oil and Gas Compact Commission as the Official Representative of Texas, and in 2015, he will serve as the Second Vice President. He has also been appointed as the Official Representative on the Interstate Mining Compact Commission and currently serves as an Advisory Board Member for the Texas Journal of Oil, Gas, and Energy Law. Omar Garcia, president of the South Texas Energy & Economic Roundtable (STEER), 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 natural oil and gas industry in South Texas is advancing in a positive way that is beneficial to both the community and the industry. Garcia has more than 12 years of economic development experience, and he spent two years working for Bank of America as Vice President of Business Development for the bank’s treasury management division. He is a Certified Economic Development Finance Professional through the National Development Council, and he graduated from St. Edward’s University with a major in international business and Spanish. In 2010, Gov. Rick Perry appointed Garcia to the Texas Economic Development Corporation.

CONTRIBUTORS

Thomas 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 Co-chair for the Texas chapter of the International Association of Outsourcing Professionals (IAOP). 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 2006, he taught Ph.D. candidates in a business and government seminar at the University of Texas at Dallas, and in 2005, he completed a long-term assignment in Afghanistan, where he was Deputy Chief of Party for a central bank modernization project.

David Blackmon is a Managing Director of the FTI Strategic Communications practice and is based in Houston. Throughout his 34-year career in the oil and gas industry, Blackmon has led industry-wide efforts to develop and implement strategies to address key issues at the local, state and federal level. Blackmon has more than 15 years’ of experience working legislative and regulatory issues in Washington, DC, Texas and other states. He is a recognized subject-matter expert on a variety of oil and natural gas issues, and regularly offers testimony at legislative hearings. Blackmon is currently a contributing columnist for Forbes. com, focusing on public policy issues affecting the oil and gas industry. He also writes regular commentary for World Oil Magazine.

Ken Treviño is the President/CEO of Workforce Solutions of the Coastal Bend, based out of the regional office located in Corpus Christi, Texas. Workforce Solutions invests in regional economic success through access to jobs, training and employer services offered at ten employment centers throughout the region. Treviño oversees a $20 million budget that is appropriated throughout the 12-county Coastal Bend region. He holds a bachelor’s degree in political science from the University of Texas at San Antonio, and a non-profit certification from the Institute of Organization Management at Loyola Marymount University. He is a graduate of Leadership Corpus Christi Class 27.

Gloria Leal is an Attorney and Government Affairs Consultant in Austin, Texas. Leal has a solo practice primarily relating to energy, environmental and healthcare/insurance matters. She represents the Texas Alliance of Energy Producers, a national association of independent producers and service providers, and other clients. Leal is former General Counsel and International Counsel of the Texas Department of Insurance and represented the department in international financial services negotiations with Mexico. She was also an Assistant Attorney General in the Energy and Transportation Divisions. Leal is a graduate of the University of Texas School of Law.

Dr. Janet M. Cunningham serves as the Executive Director of Citizens for Educational Excellence (CEE), a non-profit education organization, and Education to Employment Partners, the regional P-16 council that serves 42 school districts in 11 Coastal Bend counties. Under her leadership, CEE has established the Coastal Compass Education and Career Resource Center located in Corpus Christi’s La Palmera Mall. She also serves as the director of the Northwest Center for Advanced Studies, a dual enrollment program in the Calallen ISD that provides collegelevel classes to students from four school districts. Dr. Cunningham serves on the Postsecondary Success City Action Network, Corpus Christi Mayor Nelda Martinez’s Education Workforce Task Force, Rep. Todd Hunter’s Workforce Task Force and the Flint Hills Resources Community Action Council.

Bill Keffer has practiced law for thirty years as In-House Counsel at a major oil and gas company and in private practice. He currently teaches at the Texas Tech University School of Law and continues to consult. He served in the Texas legislature from 2003 to 2007 representing the 107th District in Dallas, Texas.

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

PUBLISHER’S NOTE

AS A STATEWIDE PUBLICATION COVERING THE EAGLE FORD SHALE AND PERMIAN BASIN PLAYS, OUR GROWTH THIS PAST YEAR HAS BEEN EXPONENTIAL. This growth would not be possible without our partners in advertising, amazing content contributors who provide new information on current events and the board of advisors who dedicate their time to the success of SHALE. I look forward to seeing SHALE continue to grow throughout Texas and additional shale plays. As a new legislative session begins, we know changes are sure to follow. It is our mission at SHALE to bring readers the latest news from the Capitol. I was honored to attend the San Antonio to Washington, DC trip in February to advocate for the oil and gas industry in Texas at a federal level. I witnessed amazing discussions and presentations on what’s developing in our area, including San Antonio Chamber of Commerce Chairman of the Board, Henry Cisneros, speaking with Rep. Henry Congressman Cuellar’s staff on the changes that have occurred in the oil industry in Mexico as well as the expansion of natural gas production facilities in Texas. Since the beginning, our mission has been to educate readers on how the energy industry affects our community. While the industry has historically had highs and lows, I encourage our readers to reflect on the benefits Texas has seen in the last two years as a result of the prosperous oil and gas industry. There is no doubt in my mind that the Texas oil and gas industry will recover from this low and will once again be booming. Finally, I would like to thank all of our readers and supporters who have listened in to our new radio show, “In the Oil Patch.” We had a great start to the radio show, which debuted on Feb. 7 at 10 p.m. Looking forward, I anticipate new and exciting guests coming on air to discuss all the latest oil and gas news and developments. If you have a story and/or information that will interest our audience, we encourage you to reach out to SHALE to discuss an opportunity to be an “In the Oil Patch” guest. Listen in every Saturday at 10 p.m. on 550 AM and 107.1 FM for news from SHALE and our experts in oil and gas!

KYM BOLADO

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

SHALE OIL & GAS BUSINESS MAGAZINE MISSION STATEMENT:

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

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

Where industry comes to speak.

AUSTIN

CORPUS CHRISTI

HOUSTON

SAN ANTONIO

Join us on Saturdays at 10 p.m. Oil & Gas Players | Business Technology | Policy

sponsored by:

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

1814 E. 53RD LANE FORT STOCKTON, TEXAS 79735

OTG Services

INFO@OTGSERVICES.COM

432-257-9447

THE INDUSTRY LEADER IN OIL FIELD SERVICES

Surface Rentals

Workforce

Equipment

• Portable Housing

• 24 Hour Roustabout

• Water Transports

• Gas Plant Maintenance

• Bulldozers

• Tank Battery Construction

• Road Graders

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

• Backhoes

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

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

• Steel Wheeled Rollers • Flat Beds • Lowboys

• Environmental Cleanup

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

• Heavy Equipment Hauling/Hot Shot

• Belly Dumps

• Road Construction

• Dump Trucks

• Surface Rentals

• Excavator

• PRV Testing

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

• Secondary Containment

• Reel Trailers

OTGSERVICESTX.COM 12

• Skid Steers

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

FEATURE

LOW GAS PRICES COME AT A HIGH COST FOR TEXAS ECONOMY BY: DAVID PORTER, SENIOR RAILROAD COMMISSIONER OF TEXAS

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

authoritarian regimes, like Russia and Venezuela. The last thing the industry needs right now is to be kicked while it’s down. Unfortunately, that is exactly what President Barack Obama and his Environmental Protection Agency (EPA) are currently in the process of doing. In the coming months, the EPA intends to propose at least nine rules designed to stunt the growth of the oil and gas industry. The rules will place unfair, unnecessary burdens and regulations on an industry that is already struggling, thus giving foreign regimes a heavy advantage and harming the American economy in the process. In a March 2012 weekly address, the president claimed, “We can’t just drill our way to lower gas prices,” to defend his focus on alternative energy. He is wrong. America did drill its way to reasonably lower gas prices. Texas’ oil and gas industry has once again become a significant player, but if the president imposes these rules, America will have to fight the

OPECÕS SUCCESS DEPENDS ENTIRELY ON A WEAKENED AMERICAN OIL AND GAS INDUSTRY, AND UNFORTUNATELY, WEÕVE ALREADY BEGUN TO SEE AN IMPACT ON OUR STATE ECONOMY permits are issued on a consistent basis. As the senior member of Texas’ energy authority, the Railroad Commission of Texas, I have done everything in my power to help create a safe and dependable environment that benefits both the industry and consumers. This delicate balance requires a steady, fair hand. Failing to maintain this balance would risk harming America’s greatest resource in its fight against terrorism and jeopardize the growth of the economy. The key to America’s security and prosperity is energy independence. A strong energy industry makes America less dependent on oil and gas producing countries that actively support terrorism and allows our allies to rely less on oppressive and

world’s heavyweight oil producers with one hand tied behind its back. Americans need to look beyond the beltway to realize the impact Texas’ energy industry has on the entire country. As the senior energy regulator in Texas, I am calling on our leaders to begin a national dialogue that finds real solutions to this looming economic crisis - brought on by OPEC and now exacerbated by President Obama. Because as Texas goes, so goes the nation. For more information: Contact Commissioner David Porter at mary.bell@rrc. state.tx.us.

PHOTO BY MICHAEL GIORDANO

OVER THE HOLIDAY BREAK,

families took to the roads to reunite with loved ones. Along the way, the excitement people felt upon seeing low gas prices - below $2 - was palpable, and in at least one way, measurable. Facebook, for the first time since its inception, featured timelines riddled with pictures of gas price signs. Did Kriss Kringle finally reward us for enduring a long, hard six-year slog? On the contrary, fairy tales have nothing to do with the price drop. These low gas prices are a direct result of OPEC, which is playing a game of high-stakes chicken with the American oil and gas industry and our national economy. Texas’ oil and gas industry has successfully increased overall production with the help of a streamlined regulatory environment. However, OPEC countries, such as Saudi Arabia, have flooded the market with crude in an effort to discourage successful American drilling - using artificially cheap fuel as their weapon. OPEC’s goal is to sacrifice profits today, in hopes of maintaining their dominant market share down the road. On Dec. 21, 2014, Saudi Arabian Oil Minister Ali al-Naimi said OPEC plans to keep overproducing oil, even if prices fall to $20 a barrel. Keep in mind that today’s prices have dropped approximately 60 percent in just six months. OPEC will force low prices to exist until

their competitors are out of business and then raise the price to whatever profit margin they desire, which will certainly be higher than a stable free market would otherwise have dictated. OPEC’s success depends entirely on a weakened American oil and gas industry, and unfortunately, we’ve already begun to see an impact on our state economy. Fuel hovering around $40 a barrel has forced many companies to make tough personnel decisions - cutting back on new hires and in some cases, even laying off workers. Saudi Arabia used this tactic in 1986 and successfully dropped oil prices to near $10 a barrel, before collapsing the U.S. oil and gas industry - giving OPEC dominant control over the global market once again. OPEC will do everything it can to weaken the industry and eliminate competitors. To be successful, the Texas oil and gas industry needs a stable, reliable regulatory environment where drilling

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

PHOTO BY MALCOLM PEREZ

SAFETY AT HEART

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

Wood Group PSN invests in the development of future workers BY: KATIE CARMICHAEL

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

Driving south on Highway 181, you don’t need a road map or street signs to realize once you’ve entered oil country, or as it is formally known, the Eagle Ford Shale. Within the Eagle Ford is Kenedy, Texas, once a tiny dot on the map that is now an epicenter of drilling activity in the shale. Upon arrival in Kenedy, you will notice dozens of big rigs as you pull up to one of several overwhelmed stop signs. You’ll pass drill site after drill site until suddenly the familiar rectangular pads are replaced with a pristine, onestory building. See the multicolored Wood Group logo on a stark white sign in front of a long driveway? It means you’ve reached your destination.

Safety is first and foremost at Wood Group, and this core value is at the heart of its health, safety and environment (HSE) facility located on FM 2102 in Kenedy. A leading energy service firm, Wood Group has three businesses – Wood Group PSN, Wood Group Kenny and Wood Group Mustang – providing a range of engineering, production support and maintenance management services to the oil and gas, and power generation industries worldwide. Last March, Wood Group PSN opened a 16,000-squarefoot training facility in Kenedy, where educational programs for Eagle Ford Shale workers focus on HSE and technical competency. The center includes a 300-person-capacity training room, an instrumentation and electrical (I&E) lab, a computer-based training (CBT) lab, and a boardroom. Through its decades working with the energy industry, Wood Group has developed extensive expertise and a comprehensive curriculum that is passed on through a mix of classroom learning, hands-on experience and CBT. A quick run-through of one lab reveals just how extensive the training is, based solely on the amount of available equipment. One student guides me through the objects, leaving me perplexed: a pressure transmitter, a simulated wellhead, a tank level switch/alarm, gas measurement equipment and so on. The instructor explains that this equipment is identical to what workers will be using out in the field. Within the lab, there are troubleshooting capabilities that simulate actual situations a worker might encounter on the job, which allows for solutions-based learning and hands-on problem solving. Beyond the walls of the facility, however, lie some of the

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

PHOTOS COURTESY OF WOOD GROUP

WOOD GROUP HSE TRAINING FACILITY IN KENEDY, TX

most important equipment. Located behind the building is a fully simulated production facility pad, with a mock tank battery and associated equipment and instrumentation, as well as an area with buried pipe for pipeline locating. As for those who are here for more than just day training, a 235-bed lodge awaits at the back of the property, stocked with all the amenities to make these temporary quarters a comfortable home away from home. The project is the brainchild of Wood Group PSN Americas’ co-presidents John Glithero and Mitch Fralick, who quickly recognized the need for such infrastructure in the once quiet South Texas region. “When we started working down here, we had to find places to meet, and, luckily, the communities were very supportive of us and let us use their different facilities that they had,” Glithero recalls. “But our workforce is so large and our needs had grown to the point where we had to have somewhere a little bit larger and more accommodating, so we decided to make that long-term investment.” Wood Group PSN was recently acknowledged for its efforts in the area, receiving an honorable mention for the 2014 Eagle Ford Excellence Award for Safety Performance from the South Texas Energy & Economic Roundtable (STEER).

of everything this company does, especially with its employees. “If one of our employees moves on to work for a client company, which happens a lot, they can become our customer,” Glithero says. “That’s why we say we treat our employees as best as we can, so they’ll treat us well in the future.” Investing in the workforce is good for business and for the industry as a whole, as Wood Group PSN is raising the bar and setting the gold standard for industry safety practices.

INVESTING IN THE WORKFORCE

Investing in the workforce is good for business and for the industry as a whole, as Wood Group PSN is raising the bar and setting the gold standard for industry safety practices

The tangible need for such a facility may have been the deciding factor, but the brickand-mortar building is more of a physical representation of many years and roughly a million dollars’ worth of investment in workforce training. “With an aging workforce and the rapidly growing need for quality and skilled people to meet the demand created by the growth of the shale industry, the writing has been on the wall for the past 10 years that we, as a service provider, were going to have to invest in the development of the future workers,” Fralick explains. Within these walls, more than 15 years of curriculum development and industry expertise is imparted to a new generation of workers alongside industry veterans. In addition to training new personnel, several courses are offered as “refreshers”, aimed at ensuring all employees have the same level of training and understanding of the stringent safety culture on which Wood Group PSN has built its reputation. Wood Group PSN operates multiple training networks around the world, geared primarily toward the offshore sector; and the concept of workforce readiness is not exclusive to these facilities. The company is constantly looking for new and innovative ways to connect with the workers of tomorrow. While safety is the number one core value of Wood Group PSN, relationships are at the heart

THE SAFETY COCOON: INSIDE THE PROTECTIVE LAYERS The Safety Cocoon is the most recent safety initiative to come out of Wood Group PSN. It’s innovative, yet intentionally simplistic in nature, comprised of four layers focusing on hazard awareness, safety training, behavioural standards and life-saving rules. The first layer in the cocoon is Aristos, the Greek word for “excellence.” Aristos is a unique training tool created by Wood Group PSN that provides an interactive experience for employees to better understand the real-world implications of everyday decision-making. All employees are expected to complete the oneday training program, which encourages everyone involved with Wood Group PSN to think about their actions both at the workplace and beyond. “You can have the best tools in the world, but if people don’t make the personal decision to use them, you’re not going to get anywhere,” Fralick says. “Aristos is all about people’s behavior and people making the right decision.” The second layer is Hazard Awareness, which promotes awareness of one’s surroundings and provides tools to help identify unsafe situations before work even begins. These tools help employees work together as a team and as individuals to keep all work zones hazard free. Life Saving Rules, the next layer of the cocoon, includes nine guidelines that everyone in the organization must follow to ensure safety. Since the rules’ introduction, the company has experienced considerably fewer recordable work incidents. Behavioural Standards, the

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

Today, Wood Group is an international leader in energy services with approximately $7 billion in sales, employing about 40,000 people and operating in 50 countries Safety Quiz Challenge, which was used as a metric for participation. If one particular region had lower participation on the quiz, management was able to identify that area and employ further resources. So far, the company has seen great results regarding participation and increased safety performance.

COMMUNITY INVESTMENT: THE WOOD GROUP WAY The development of the HSE training facility in the heart of the Eagle Ford Shale is largely indicative of the company’s strategic mentality of “think global - act local.” “A lot of companies will come into an area, like the Eagle Ford for example, and take advantage of ‘good times’ as we’ll call it,” Glithero explains. “We’ve always developed and established our business by coming into an area like we’re here for the long haul.” In total, the property - including the facility and the adjoining lodge - represents a $12 million

PHOTOS COURTESY OF WOOD GROUP

fourth layer, is often referred to as “the way we do things around here.” The idea of the Safety Cocoon originated at an annual meeting of all Wood Group PSN leadership, but it has been Fralick and Glithero’s responsibility to educate all 12,000 of their employees on each safety measure. Both men admit that can be quite a challenge. “We are so spread out geographically that one of the areas of focus is continuing to find ways to test that our messages are getting to every employee,” Glithero states. Naturally, the company employs traditional methods of communication - both internally and externally - through its communications department via newsletters, surveys, online outreach, management teams and project managers. The company also utilizes social media to reach its employees and the public. However, Fralick and Glithero will quite often just show up and conduct their own, albeit less scientific, market research. “We’ll go to a shop in North Dakota [for example] and say, ‘Hey guys, who all is familiar with our Safety Cocoon?’” Glithero says. “And if you’re standing there with 150 guys and only half of them raise their hands, we know we’ve got some work to do.” The Safety Cocoon’s company-wide rollout was an exemplary effort in delivering consistent messaging to a massive, and often transient, workforce. Starting last July, the program was introduced in phases to allow employees time to receive and absorb the information for each individual layer. First, the overall concept of the cocoon and the third layer, Life Saving Rules, were introduced to employees through a full-on campaign with mailers and distributions. The group enticed employees to complete the

investment, although the company’s community involvement doesn’t stop at the property line. Wood Group PSN employs on average 1,000 workers in this area alone. The company also has a strong presence in the Permian Basin, employing an additional 2,000 to 3,000 individuals in the western portion of the state. Beyond employment, Wood Group PSN and its people go to great lengths to give back to the community. The organization works annually with other local energy companies on fundraising efforts and donations to the United Way. As well, the company has worked with Sacred Heart Children’s Home in Laredo and South Texas Children’s Home Ministries in Pettus, providing meals, maintenance, and donations including new computers and the construction of a new basketball court - as well as organizing events for the homes, such as the children’s Christmas party and Easter egg hunt. Wood Group PSN sponsors and supports local charitable events, such as the Youth Rally, an annual day of fun, food and activities for underprivileged children in the area; Little League games, at which the company has provided between 250 and 500 meals for kids over the course of the season; and the local stock show and Lonesome Dove Fest, to which the company donates equipment and volunteers. It also offers up to four scholarships a year to high school seniors from the South Texas region. As Glithero and Fralick explain, Wood Group PSN helps the community because it is the right thing to do. Period. And for the co-presidents of Wood Group PSN Americas, there’s no better reason than that.

PHOTO BY MALCOLM PEREZ

TWO PRESIDENTS ARE BETTER THAN ONE In August of 2013, Wood Group PSN announced that the Americas region president, Derek Blackwood, would be retiring and replaced by not one but two co-presidents, John Glithero and Mitch Fralick. “It is an unusual situation,” Glithero admits. “Everybody we meet says, ‘How does this co-presidency work?’” It may seem like an unusual move. But it begins to make sense once you consider that these two men oversee such a vast geographic area. Wood Group PSN Americas includes operations in Canada, North and South America and the Latin Americas, not to mention the number of employees they are responsible for - 12,000, give or take, at any given time. After having the opportunity to meet and talk with Glithero and Fralick together one afternoon, the strategy actually seems like an enlightened stroke of genius. It’s a challenge to put into words the palpable synergy between this dynamic duo, and I’m not sure any sufficient comparisons truly exist. On their own, they’re great, but once combined it’s obvious they were meant to be together all along.

When it comes to the co-presidents’ professional relationship, the best comparison may be the classic yin and yang. Fralick has onshore experience; Glithero has an offshore background. Fralick has a management degree, Glithero an engineering degree. Nevertheless, they share the same bottom line: Always put people first.

John Glithero:

After graduating from Texas A&M University in 1979 with a bachelor’s degree in engineering, Glithero began a career in commercial construction and development before moving into the oil and gas industry. He previously worked in a company that was eventually bought by the Michael Baker Corporation and became Baker Energy. Glithero rose to the ranks of Vice President, a post he held for over a decade. In 2002, Glithero joined Wood Group to start its operations and maintenance business in the United States, initially based offshore. In the years that followed, this branch of the company has grown remarkably.

Mitch Fralick:

Fralick graduated from Stephen F. Austin State University with a bachelor’s degree in business management and immediately entered the oil and gas industry. In 1988, during the historic industry downturn of the 1980s, Fralick and his partner, Jonathan Knapp, founded Producers Assistance Corporation (PAC), specializing in operations and maintenance services and providing day-to-day production operations of wells and facilities. Wood Group bought PAC in 2008, and Fralick was eventually named Senior Vice President of Onshore Operations. Fralick notes that PAC has increased in size nearly eight times over since being acquired by

Wood Group. The operation that included just over 300 employees when it was sold to Wood Group now boasts roughly 1,800 personnel. “[Wood Group] didn’t come in and try to change the way we did business,” Fralick continues. “They bought a successful company and provided the resources for it to be even more successful.”

WOOD GROUP’S SCOTTISH ROOTS Wood Group entered the U.S. energy services market - having built the foundation of its business in the United Kingdom - by acquiring smaller successful companies and combining them under the established strength and network of a global business. Therein lies the strength, and quite possibly the secret, behind the company’s incredible success. Wood Group’s history dates back to the early 1900s in Aberdeen, Scotland. In 1912, William Wood founded Wood & Davidson, which provided ship repair and marine engineering services to the local fishing fleet out of the port of Aberdeen. Wood had seven sons, the youngest of which, John, would eventually take over the family’s portion of the business in the early 1950s. In 1964, John Wood bought out the remaining shareholders and took full control of the company. That same year, John’s son, Sir Ian Wood, joined the business, which was appropriately renamed John Wood & Son. The organization’s operations continued to expand into general marine engineering and a few years later, Sir Ian was named managing director. In the early 1970s, however, a series of events occurred that changed the course of history for the family business based in Scotland. Oil

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

Learn more about Wood Group by visiting the organization online at www.woodgroup-psn.com.

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

The Safety Cocoon is innovative, yet intentionally simplistic in nature, comprised of four layers focusing on hazard awareness, safety training, behavioural standards and life-saving rules Life Saving Rules

5 SW L

1 2 3 4 5 6 7 8 9

All work including changes must be risk assessed Verify isolations before work starts Protect yourself against a fall when working at height Take precautions when working over or close to water Rigging and lifting processes and equipment must be planned, controlled and suitable for the job Obtain authorisation before entering a confined space Ensure all safety precautions are in place for ground works Always wear a seat belt and never use any type of mobile phone You must be fit and able to do your job safely

For more information visit www.woodgroup.net/HSE/Safety/LSR

COURTESY OF WOOD GROUP

had been discovered in the North Sea, and Sir Ian saw mounting potential in this fledgling industry. The young visionary also saw the potential for Aberdeen to become the next big oil hub, after being inspired by a trip overseas to Houston in 1972. Over the next several years, the company spent considerable time and capital redirecting its business and resources toward the offshore engineering business. In 1976, the first oil flowed up from Brent field, located in the East Shetland Basin off the Shetland Islands, which is where Wood Group would secure its first major offshore contract. The 1980s was another formative era for Wood Group, as its two main interests were split in 1982, creating separate, more specialized companies: John Wood Group, which assumed the engineering, oilfield logistics and supplies and drilling services; and J W Holdings, the largest fishing company in Scotland at the time. By the end of the decade, John Wood Group was the largest homegrown oil service company in the United Kingdom, a growth trajectory it would continue to follow as it expanded its business internationally throughout the following decades. Notable acquisitions made by Wood Group during the 1990s and early 2000s include Mustang Engineering, a Houston-based firm providing deepwater process facility engineering services; Alliance Engineering, specializing in lightweight topside facilities; and J P Kenny, specializing in pipeline and subsea capabilities. Wood Group also created several partnerships and joint ventures throughout the decade with companies such as Rolls-Royce, Sulzer and TransCanada. By 2000, Wood Group announced revenues exceeding $1 billion for the first time in its history; and two years later, the company managed a successful IPO on the London Stock Exchange. In 2011, the company acquired Production Services Network Limited (PSN) and Wood Group PSN was officially formed. Today, Wood Group is an international leader in energy services with approximately $7 billion in sales, employing about 40,000 people and operating in 50 countries. Offering high-quality brownfield services to customers in more than 40 countries, Wood Group PSN specializes in pre-operations, hookup and commissioning; operations and maintenance; engineering; construction; project management; and training and decommissioning services. Its mission is to provide customer support to clients in order to enhance performance, maintain production, reduce operating costs, provide integrity assurance and extend the life of production facilities. The expansive network of highly trained employees and experts allows Wood Group to provide a wealth of services, from the start to the finish of a project. Wood Group PSN operates in five regions around the globe: Africa, the Americas, Australia and Asia Pacific, the Middle East and ERC (Europe, Russia and Caspian). An intricate network of high-level, yet hands-on management provides consistent, high-quality service across all regions. Wood Group is built on a solid foundation of seven core values, which are at the heart of everything the company does: safety and assurance, relationships, social responsibility, people, innovation, financial responsibility and integrity.

Safety Cocoon First layer: Aristos As human beings we are constantly faced with choices. When at work, often our decisions will determine whether we get home safely. The same decision making process applies to all other aspects of our lives. We know right from wrong, we know what we should do but don’t always do it. Our “Aristos Experience” will help you understand why the decisions we make are not always the safest choice. It will help you make the right decisions and encourage you to step up when the decisions of others are putting our people at risk.

Second layer: Hazard awareness Many of our incidents result from our failure to identify and manage workplace hazards. If we fail to spot and manage a hazard before we start work then an incident is a very real possibility. We will provide you with some simple tools that will help you spot hazards and do something about them before they can cause harm. The tools will encourage you to work as a team to spot and eliminate the hazards. You also have the authority to stop any work if you see something that is unsafe.

Third layer: Life Saving Rules

COURTESY OF WOOD GROUP

We have nine Life Saving Rules. They set our minimum expectations for those activities which, based on an analysis of incidents, are most likely to result in you being seriously injured. They help raise your awareness and provide you with some simple key actions which, when followed, will protect you and your colleagues from injury. We expect everybody, at all levels of our organisation, to comply with these rules.

Fourth layer: Behavioural Standard Our behaviours, whether you are a director, manager, supervisor or worker, set the safety culture of our organisation. It’s often referred to as ‘the way we do things around here’. We want WGPSN to build a safety culture that is recognised by our people, our clients, subcontractors and the regulators as being second to none. To do this we all need to actively demonstrate those behaviours that will help build such a culture – our behavioural standard clearly states those behaviours for all levels of our organisation.

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

INDUST RY

ROAD SAFETY BY: OMAR GARCIA

THE SAFETY of those living, working and driving on the roads within the Eagle Ford Shale region is a top priority for the South Texas Energy & Economic Roundtable (STEER) and its members. The benefits that have come from the Eagle Ford Shale in terms of job growth, community development and economic impact are unprecedented. The growth of the Eagle Ford Shale play has manifested a need to increase investment in education and roads. As the amount of vehicles on the roads continues to increase, the need for all of us to implement safe driving practices becomes even more important. STEER and its members are committed to being the leading educational resource relating to the oil and natural gas industry in South Texas. The oil and gas industry throughout the Eagle Ford Shale region continuously works to find ways to decrease the amount of traffic on the road, which includes increasing pipeline infrastructure, honing logistics to decrease truck traffic and donating supplies for roadwork. Processes like infill drilling programs and drilling multiple wells on one site are drastically lowering the amount of trucks needed on the road. The ever-expanding pipeline infrastructure also helps alleviate trucks hauling oil and water. STEER and its member companies have partnered with the Texas Department of Transportation and the Texas Department of Public Safety to make our roads safer through public education. The Be Safe. Drive Smart. campaign was created to remind drivers of these simple techniques we can all use to make the roads safer: Buckle up. Don’t drive when you’re drowsy. Pay attention (no texting or talking on cell phones). Drive safe speeds. Stop at stop signs and red lights. Pass carefully. Never drink and drive.

» » » » » » »

While these techniques might seem to be common sense, each one has been identified as a leading cause of preventable accidents. STEER and its members follow these guidelines along with additional strict policies and

STEER AND ITS MEMBERS ARE COMMITTED TO BEING THE LEADING EDUCATIONAL RESOURCE RELATING TO THE OIL AND NATURAL GAS INDUSTRY IN SOUTH TEXAS 24

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

programs to encourage safe driving. We encourage the public and other industries to implement these simple practices. In addition to the standards each employer initiated, many companies utilize devices to monitor driver performance.

REMEMBER TO BE SAFE. DRIVE SMART. In 2013 there were 3,377 fatal accidents on the roads of Texas – we can all do our part to decrease the number of accidents in South Texas. The protection, preservation and health of the environment, communities and individuals are a top priority in the oil and natural gas industry in South Texas. Together, we will work to decrease the amount of accidents within the Eagle Ford Shale region. Preventable accidents can easily be deterred with very simple techniques. Remember to Be Safe. Drive Smart.

If you are interested in more information, visit www.steer.com or email info@ steer.com.

We See Shale Differently. We look at shale plays and see data. Data from the rocks, data from the wells, data from many sources. We deeply analyze that data to reveal information and predict production for any well, anywhere. That means fewer underperforming wells and more accurate reserve reports. See how we can help you see shale differently, too.

www.OAGshale.com

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

INDUS T RY

THE FUTURE OF OIL PRICES IS ANYONE’S GUESS BY: DAVID BLACKMON

IN MID-JANUARY, famous oilman T. Boone Pickens told an interviewer that he believes the price of crude oil will rebound quickly, back to the $80 to $100 range within a year. This prediction from a high-profile billionaire who is heavily invested in oil and gas sounds like manna from heaven to those rightly concerned about the negative impacts of low oil prices on activity and jobs in shale plays and other oil and gas development areas around the U.S. Don’t get too excited here: Just last August, barely a month before the global price of crude oil began its rapid descent, Mr. Pickens told another interviewer that the price of crude would never go below $100 again. Oops. But don’t blame Pickens - he’s just one of a big, big crowd. Barely a week after Pickens made his “$80 to $100” prediction, Ross Perot Jr. was quoted as saying that the oil price would remain low for years. (Not sure why Mr. Perot is making such predictions, but there it is.) The truth is that nobody has any real level of certainty what oil prices are going to do in the upcoming months, least of all anyone who spends their time talking with reporters about it. Think about it: If you actually had real, true insight into this subject, would you be blabbing to reporters about it? Of course not. You’d want to keep that knowledge to yourself and become fabulously ultra-wealthy trading in the commodity. At least, I know that’s what I’d do - Mr. Pickens and Mr. Perot, being already fabulously ultra-wealthy, can afford to talk. This is pretty much the way it always is in the oil and natural gas industry. It’s an inherently risky business, made all the more so by the unpredictability over what you will be able to sell your production for, should you be lucky enough to drill a good well and bring it to the surface. Yes, we have had a fairly stable price situation

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

for the past three to four years, but I’ve been in this business for 35 years and can assure you that such stability over multiple years is very much a rare exception to the rule. The optimists among us are hopeful - like Pickens appears to be - that the current price instability will produce a “V-shaped” recovery, one in which a rapid fall in prices is quickly followed by a bottoming out and a subsequent rapid rise back to near prior levels. That is what the industry experienced in the 2008-09 time frame, when the price of crude oil fell from a record $147 per barrel down to $36 in just a few months, but then recovered very quickly back to the $80 range. Pessimists, however, are projecting a more “U-shaped” scenario, with prices continuing to drop to below $30, and then holding steady at lower levels for quite some time before

beginning a long and slow rebound to more robust levels. This would be a similar experience to the mid- to late 1980s, a time during which the state of Texas suffered through a near economic depression. So, where does all of this leave us? Well, in the near term we are seeing a significant slowdown in the development of resource plays like the Eagle Ford Shale, Bakken Shale, Permian Basin and other major plays across the United States. Many operators have already announced dramatic cuts in their anticipated capital budgets for 2015, and the number of active drilling rigs has already fallen significantly and will continue to slide through the first half of 2015. The slowing of drilling activity has already begun to result in reductions in jobs (Schlumberger and Baker Hughes both announced significant layoffs in January), and those job losses will continue to rise. This will, in turn, result in lower economic growth in Texas, North Dakota and other significant oil-producing states, and lower than anticipated tax revenues from the industry to county and state budgets. However, the idling of a large number of drilling rigs will also result in lower overall production levels in the

TODAY´S REALITY IS THAT DEMAND FOR CRUDE OIL AROUND THE GLOBE IS CONTINUING TO RISE, ALBEIT AT A SLOWER PACE THAN A FEW YEARS AGO

U.S. and around the globe. This is where we get the room for some optimism that we may indeed be looking at the V-shaped recovery that Pickens obviously anticipates. Cynics anticipating a U-shaped recovery appear to not factor in the reality that new, unconventional plays like shale formations result in wells with much higher initial production decline rates than the conventional sand formations that were predominantly being produced during the 1980s. Thus, a 50 percent reduction in active drilling rigs is likely to produce a much more rapid decline in overall production than a similar idling of rigs produced in 1985, when most wells were being drilled in long-term, low-decline rate conventional formations.

THE TRUTH IS THAT NOBODY HAS ANY REAL LEVEL OF CERTAINTY WHAT OIL PRICES ARE GOING TO DO IN THE UPCOMING MONTHS We must also consider specific differences between today and 1985: a) the overall global surplus is much smaller than it was 30 years ago, and b) the glut is mainly the result of oversupply of the market, as opposed to the falling demand experienced in the mid-1980s. Today’s reality is that demand for crude oil around the globe is continuing to rise, albeit at a slower pace than a few years ago. Combined in the coming months with a slight decrease in overall supply, that relatively small daily surplus could disappear in a matter of months, as Pickens predicts. There are real arguments for concern, but also valid reasons for some level of optimism. No one likes to see the job losses that have already happened and are likely to continue. But if the market behaves rationally, many of those jobs could return in relatively short order; and the Eagle Ford Shale might continue its steady march toward becoming the largest oil resource ever discovered in North America. Of course, oil markets rarely behave rationally, so in the end, no one really knows. Then again, that means Pickens’ guess is as good as anyone’s. About the author: David Blackmon has spent 35 years in the oil and natural gas industry, in a variety of roles. He has spent the last 20 years engaged in public policy issues at the state and national levels. Contact Blackmon at david. blackmon@shalemag.com. MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

INDUS T RY

PEMEX:

NEW PROCUREMENT CHALLENGE IN RESPONSE to fragmented and nonstandardized processes and limited spending visibility, Petróleos Mexicanos’s (PEMEX) Procurement Division has launched a new strategy to develop a solution for its corporate reality. The division needed to drive down costs, standardize processes and procedures, understand the business strategy and evaluate the supply base from a comprehensive assessment, knowledge-based standpoint. The transformation process within PEMEX stresses the need to speed up change in the Procurement Division. The Procurement Division is evolving into a competitive and sustainable value initiator rather than being relegated to a purchasing center and administrative provider. The procurement function is now a component of forecasting business planning and

managing each one of them with technical knowledge. PEMEX has established categorymanagement teams that are responsible for 50 percent of the company’s spending. We believe that having balanced long-term corporate goals provides strategic guidance and direction to each category-management team and the ability to immediately and effectively react to change, whether internal or external. Each family represents a spending bucket or envelope itself, and each family is divided into categories, overseen by Category Managers. The largest categories were also divided into subcategories, which are managed by Subcategory Leaders reporting to Category Managers. Furthermore, procurement was divided into three groups: a strategic supply chain management group,

BUSINESS-DRIVEN PRIORITIES WERE REENGINEERED TO SUPPORT BUSINESS NEEDS, WHICH WILL RESULT IN A COMPETITIVE ADVANTAGE FOR THE ENTIRE ORGANIZATION contributing to corporate results, as well as shifting the focus to consider quality and reliability through an overall view of business process. For the first time, sourcing is aligned with PEMEXs corporate goals. Business-driven priorities were re-engineered to support business needs, which will result in a competitive advantage for the entire organization. In order to align procurement with the entire business perspective, PEMEX is developing standardized and systematized process flows to assess business needs and strategies, administer contracts, develop long-term relationships with suppliers and determine spend categories,

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

focusing on sourcing and supplier relationships; a tactical procurement group, targeting the process itself; and the normative group, assuring quality, strategy and governance in the procurement model. These groups report to the Chief Procurement Officer. Through this centralized operational business model, PEMEX was able to standardize processes, procedures, policies and systems, as well as institutional coordination. A scan of internal and external environmental factors is an imperative part of the strategic planning process and can be used as a basis for developing competitive advantage. To assess the changing environment,

we have developed specific improvements to strategic risk management, defining roles and responsibilities, identifying our greatest strengths and weaknesses and recognizing the threats and opportunities that we face. Going forward, PEMEX will rate and assess its potential and current suppliers. The comprehensive evaluation of suppliers and our supplier base structure assumes utmost importance in the current picture of global procurement, trying to blend PEMEXs corporate business principles and the development and implementation of a sourcing strategy. The supplier evaluation aims at understanding our suppliers´ credentials and capabilities, both operative and technological, in supplying specific goods and services. We intend to strengthen and develop long-term relationships as well as deepen our knowledge about our supplier base. The required rate of change to keep in step with business demands continues to grow. Having achieved improvements in the past year, what is next for PEMEXs Procurement Division? We are finding ways to assure that procurement decisions materialize into real-world economics of scale and global competition. We will deepen our current efforts in strategic sourcing, category management, demand analysis, spend visibility, supply side integration and management, automation and standardization into common procedures and one unified procurement process. We feel enthusiastic and willing to assume broader responsibilities with lean staffs and even leaner budgets. The Procurement Division is preparing itself to face PEMEXs most challenging job: competition. For more information: Visit PEMEX online at www.PEMEX.com.

PHOTO BY MALCOLM PEREZ

BY: ARTURO F. HENRÍQUEZ AUTREY

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

INDUS T RY

OILFIELD SAFETY IS IMPERATIVE IN TEXAS BY: BILL KEFFER

uring the recent energy boom, it has become standard fare to read about and be amazed by - the ever-increasing numbers describing drilling rigs in use, discovered reserves, daily production, employment, industry revenue, tax revenue, royalty payments and just about any measurable aspect related to the oil and gas industry. Unfortunately, the dramatic increase in the level of activity in rediscovered and newly discovered fields has brought with it a similar increase in the number of oilfield-related injuries and deaths. Texas has enjoyed a significant share of the recent boom, but that has likewise translated into our own increase in oilfield accidents. Last year, the Houston Chronicle found that 40 percent of the 663 oilfield deaths between 2007 and 2012 occurred in Texas. The Permian Basin has not been immune to these realities. Tragedy has struck the area - bringing with it awareness of the dangers of oilfield work. This realization has spurred the industry to develop innovative procedures and products to keep our workers and communities safe. Is it inevitable that serious injuries and even fatalities must accompany oilfield work? It is indisputable, of course, that the work is difficult, labor-intensive and stressful. It involves operating massive equipment, and workers are perpetually surrounded by conditions that are under significant pressures and materials that are

COMPANIES IN THE PERMIAN BASIN ARE EXHIBITING A SUSTAINED EFFORT TO DECREASE THE AMOUNT OF INJURIES IN THE OIL FIELD hazardous. There is no getting around the fact that it is an environment that has the potential to cause injuries. So what’s an industry to do? On one level, no industry wants to have a reputation for injuries and fatalities; after all, companies still need to be able to attract competent employees. But on a much broader humanitarian level, a civilized society won’t tolerate a work environment where coming home at the end of the workday is an iffy proposition. The larger, longer-established

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

companies have been developing, refining and implementing substantive safety policies for some time now. Often, it’s the smaller, newer companies that have not had the time and experience to develop safety policies. The same lessons that we have learned in life have equal application when it comes to safety in the oil field: Take your time, be prepared, learn

TEXAS HAS ENJOYED A SIGNIFICANT SHARE OF THE RECENT BOOM, BUT THAT HAS LIKEWISE TRANSLATED INTO OUR OWN INCREASE IN OILFIELD ACCIDENTS from those with more experience, safety first, and a job worth doing is worth doing right. The simple, but often hard to follow, truth is that a culture of safety requires credible and continuous modeling by leaders in the industry, leaders in a company and leaders in the field. Companies in the Permian Basin are exhibiting a sustained effort to decrease the amount of injuries in the oil field. An example of this level of commitment in the Permian Basin is Pioneer Natural Resources, which has made safety one of its core values. Management has made it a top priority, employees sign charters to manifest their commitment, and employees and contractors understand that it’s a right and a responsibility to identify and address any unsafe condition. Pioneer promotes safety in its “Rules to Live By” and with goals like its “Drive to Zero” initiative, which aims to lower the number of preventable vehicle accidents. Safety is a state of mind that must be put into practice by those in charge as an integral step in their daily operations. The oil field can be dangerous, but so can life - so live life safely, and take that mind-set to the oil field. About the author: Bill Keffer is a contributing columnist to SHALE Magazine. He teaches at the Texas Tech University School of Law and continues to consult. He served in the Texas legislature from 2003 to 2007.

ET EVAPORATOR TECHNOLOGY

ELIMINATING WATER DISPOSAL

Instead of hauling your water off location evaporate it away at a fraction of the price The Evaporator is a floating unit designed for effective operation in small areas, especially flow back pits, drilling reserve pits and sites containing large particles or highly corrosive water. The unit is durable, simple to use and easy to maintain â&#x20AC;&#x201C; a reliable way to manage excess water.

Gary Smith

gary.smith1150@gmail.com | 918.408.8449 MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

“COTULLA’S FRESH KEPT SECRET” FRESH FOOD MADE FROM SCRATCH EVERY DAY, BY REAL CHEFS. DELIVERY AND CATERING OPTIONS AVAILABLE. OPEN DAILY TO THE PUBLIC 11AM - 9PM

637 N BAYLOR ST. COTULLA, TX 78014

830-879-5275

CHEFSFRESHKITCHEN.COM FULLY FURNISHED RESIDENTIAL SUITES WITH KITCHENETTE AND LIVING AREA. CLUBHOUSE WITH GAME ROOM AND ON SITE RESTAURANT WITH CATERING SERVICES.

637 N BAYLOR ST. COTULLA, TX 78014

830-265-6944

EAGLEFORDCABINS.COM

FULLY FURNISHED 1 AND 2 BED ROOMS WITH KITCHENETTE

FULL SERVICE HOTEL WITH RESTAURANT AND BAR, INDOOR AND OUTDOOR SWIMMING POOLS, TENNIS COURT BANQUET FACILITIES AND MEETING ROOMS.

24 HOURS BUSINESS CENTER COMPLIMENTARY BREAKFAST SERVED EVERY MORNING A LARGE SWIMMING POOL A RECREATION CENTER WITH BILLIARD TABLES, TABLE TENNIS AND A LARGE LED TV FITNESS CENTER

17360 S, IH 35 DILLEY, TX 78017

830-963-9802

910 CORN PRODUCTS RD. CORPUS CHRISTIE, TX 78409

361-452-0504

AMERICASBESTVALUEINN.COM

EAGLESINNANDSUITES.COM MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

Annual Event Fundraiser

APRIL 30, 2015 - DOORS OPEN AT 5:30 PM -

NEW BRAUNFELS CIVIC/CONVENTION CENTER 375 S. CASTELL AVE, NEW BRAUNFELS, TX 78130

Event Tickets $50.00 / Tables $500.00 Steak Dinner Raffles ~ Live Auction ~ Games Guns ~ Guns ~ Guns Contact: Hayley Galloway - PO Box 17896, San Antonio, TX 78217 englishsista@hotmail.com

PRE-EVENT RAFFLE

TABLE SPONSOR

$20.00

www.friendsofnra.org/tx

Tan Kel-Tec “KSG” 12 gauge pump action shotgun

GUN OF THE YEAR Live Auction

Only 300 tickets Drawing April 30, 2015

Kimber Pro Carry II 1911 .45ACP

Do not need to be present

$500.00 Stag Arms AR-15 Model 2 .223/5.56 w/2nd Amendment lasered on side of mag well. Drawing April 30, 2015 Table sponsors only

210-639-5418 Special Event Packages and Sponsorships Available 34

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

Proven technology new application for treating frac water

PPI Stream Service Benefits

TREATS Up to

SAVE 25% of your total water cost per well

300 BPH USING ONLY

15 KW EPH

REMOVES Up to

97% TOTAL

SUSPENDED SOLIDS

Bert Quintanilla plasmapure1@gmail.com 10201 South Padre Island, Dr., Ste. 129 Corpus Christi, TX 78418

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

BUSINE S S

COASTAL COMPASS EDUCATION AND CAREER RESOURCE CENTER: BY: DR. JANET M. CUNNINGHAM

Coastal Compass Education and Career Resource Center, located in Corpus Christi’s La Palmera Mall, provides free services to all – employers, the unemployed and those seeking to improve their quality of life. While the center’s primary purpose has been providing free information and assistance to help Coastal Bend residents increase educational and job attainment, it is also increasing its assistance to help employers find workers in high-need areas. Steve Luis, Intake Specialist for Coastal Compass, invites employers to tour the center and to provide information about job openings and the education and/or skills required to obtain those jobs. While the unemployment rate continues to decline, over 10,000 people in our region are still looking for jobs. “Instead of seeking employees from outside the region, provide us the information so we can let people know about upcoming in-demand

WHILE THE UNEMPLOYMENT RATE CONTINUES TO DECLINE, OVER 10,000 PEOPLE IN OUR REGION ARE STILL LOOKING FOR JOBS jobs and help them get on a career pathway to be your future employees” Luis says. Evening workshops are held once a week on various topics such as training programs, postsecondary options, career choices and workforce skills. Employers are also invited to present sessions related to areas of need. As a one-stop resource center, Coastal Compass offers information on all types of education and skills development programs, including adult literacy, English as a second language, GED, dual enrollment, certification, workforce credentials and college degrees. Additionally, the center offers direct assistance in completing job applications, résumé writing, exploring high-demand

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

careers and obtaining information about programs for veterans and youths. Coastal Compass is a true partnership venture. Citizens for Educational Excellence (CEE), a local nonprofit organization, established the center with support from all five local postsecondary educational institutions (Coastal Bend College, Craft Training Center of the Coastal Bend, Del Mar College, Texas A&M UniversityCorpus Christi, and Texas A&M University-

Kingsville), Corpus Christi ISD, Corpus Christi Literacy Council, Education to Employment Partners (the region’s P-16 Council) and Workforce Solutions of the Coastal Bend. Advisors from partnering institutions have relocated to the center to provide residents with information about in-demand jobs in the area, assist clients in enrolling in education and/or skills development programs and eliminate barriers to education and employment. In the 18 months that the center has been open, over 3,500 people have been served at the La Palmera Mall location. Advisors have assisted over 300 people in finding jobs, worked to enroll nearly 1,000 residents in postsecondary institutions and helped more than 200 individuals get on track to obtaining a high school diploma or GED. While most services take place at the mall location, outreach assistance has been provided to over 800 people at community centers and events throughout the region. These events revealed that many people, especially those with the greatest needs, will not travel to the mall, but are desperate for information. With this discovery and the necessity of serving Coastal Bend’s rural areas, CEE has obtained a grant of approximately $240,000 from the Charity League of Corpus Christi. The funds will be used to purchase a mobile unit, aptly named “Coastal Compass on Wheels.” Charity League members are currently raising funds for the grant, which is expected to be awarded in May. The Coastal Bend has the human capital needed for growing the workforce. Visit Coastal Compass and learn how they can help your company obtain the skilled workforce you need. To learn more about the Coastal Compass Education and Career Resource Center, call 361-906-0703, email jcunningham@ edexcellence.org or visit www.coastalcompass.org.

PHOTOS COURTESY OF COASTAL COMPASS EDUCATION AND CAREER RESOURCE CENTER

A RESOURCE FOR EMPLOYERS

A PRIVATE OASIS IN THE TEXAS HILL COUNTRY

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

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

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

BUSINE S S

THE WORKFORCE IMPACT:

TRAIN YOUR WORKFORCE AND POWER YOUR BUSINESS Skills Development Fund Grants for Employers

he Texas Workforce Commission (TWC) Skills Development Fund is one more reason why Texas is a great place to do business. Customized training through state-funded Skills Development Fund grants ensure that your current workforce stays up-to-date to keep your business competitive and new workers trained with the skills your industry requires.

Skills Development Fund

The TWC’s $90 million Skills Development Fund (SDF) is Texas’ premier job training program, which provides training dollars for Texas businesses and their employees. The SDF program assists employers and community colleges statewide with businesses and trade unions by financing the design and implementation of customized job-training projects. Success with an SDF grant project is achieved through collaboration among businesses, community and technical colleges, local workforce development boards and economic development partners. SDF grants successfully

A subset of the SDF is the Skills for Small Business program, which pays for training small business employees at community colleges through courses in the existing college course catalog.

Skills for Small Business Program

Through the TWC Skills for Small Business program, up to $2 million from the SDF is dedicated to the backbone of Texas’ business community – small business employers. Small businesses can apply directly to TWC for training offered through community or technical colleges, or the Texas Engineering Extension Service. TWC processes the applications and works with community colleges to fund the specific courses selected by businesses for their employees. This exceptional opportunity supports businesses with fewer than 100 employees and emphasizes training for new workers; although, it can also be used to upgrade the skills of incumbent workers.

The Coastal Bend Connection

merge the needs of businesses with local training opportunities into a winning formula that increases the skills level and wages of the Texas workforce. How does it work? A business, consortium of businesses, or trade union identifies a training need and then partners with a community or technical college to fill those needs. The training curriculum can be customized to meet specific needs. Businesses work with community college partners to submit proposals, develop curricula and conduct training. The SDF grant pays for the training, the college administers the grant and businesses improve the skills of their new and incumbent workers.

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

In December 2014, TWC Chairman Andres Alcantar, along with Workforce Solutions of the Coastal Bend, presented SDF grant checks totaling $1.7 million to Del Mar College President Dr. Mark Escamilla and representatives from three partnering companies. CB&I Inc., Dynamic Industries Inc. and Valero Energy Corp. have partnered with the college to provide training to over 1,100 new and incumbent workers in high-demand occupations, which include carpentry, welding and pipe fitting. The grants will benefit workers in the Coastal Bend region. CB&I Inc. will create or upgrade 888 jobs using a $1.39 million SDF

grant. The funds will be used to reduce construction site downtime and increase construction field skills proficiency and safety training. Those trained will include pipe fitters, pipe welders, construction laborers and others. Upon completion of training, workers will earn an average hourly wage of $23.23. A petrochemical consortium comprised of Dynamic Industries Inc. and Valero Energy Corp. will create or upgrade 217 jobs using a $309,224 SDF grant. The funds will be used to provide specialized training to prepare workers for increased product demand, industry competitiveness, safety and reliability. Those trained will include electrical technicians, welders, riggers, pipe fitters and others. Upon completion of training, workers will earn an average hourly wage of $25.81. From the SDF’s inception in 1996 through 2014, grants have assisted 4,074 employers with customized training needs and created or upgraded more than 316,000 jobs throughout Texas. The Texas Legislature allocated nearly $48 million to the SDF for the 2014-15 biennium.

Employers seeking more information about SDF grants may visit the TWC website at www.texasworkforce.org/skills.

PHOTOS COURTESY OF DELMAR COLLEGE

BY: KEN TREVIÑO, PRESIDENT/CEO OF WORKFORCE SOLUTIONS OF THE COASTAL BEND

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

BUSINE S S

PROTECT THE LONGEVITY OF YOUR BUSINESS BY: GEORGE F. LONG

at a fair price. He or she can also maintain ownership and control, and a smooth transition of ownership can take place. The disabled business owner gets to enjoy the proceeds of the sale of the business at a time when he or she may likely need it the most.

PARTING THOUGHTS

A carefully crafted succession plan that allows some flexibility to accommodate changing business, family and health situations can accomplish many goals. You can protect the future of your business while also enhancing your personal financial position. As well, you can maximize the value of your business if you decide to sell, and enhance the marketability of your business. Most importantly, a solid succession plan helps you to exit your business with maximum profitability and the foundation for its continued success.

interest at that price. By entering into a buysell agreement, you can help ensure a smooth transition of ownership, with minimal disruption to the day-to-day activities of the business. Life Insurance Life insurance is often used to fund a buysell agreement. The death benefit in a life

For more information: Contact George F. Long, a financial representative with MassMutual South Texas, a MassMutual Agency, at gflong@financialguide.com or 210-384-5314; this article is provided courtesy of Massachusetts Mutual Life Insurance Company (MassMutual).

IF YOU ARE A BUSINESS OWNER, DONÕT LEAVE THE FUTURE OF YOUR COMPANY TO CHANCE

SUCCESSION STRATEGIES

insurance policy ensures that the surviving owners will have the funds to buy out a deceased owner’s share of the business. In some cases, you also have the flexibility to increase or decrease your coverage to keep pace with the value of your business.

Buy-Sell Agreement A buy-sell agreement is one of the most popular business succession planning strategies. It involves one party buying a deceased business owner’s interest in the business at a certain price, and another party, usually the deceased owner’s estate or heirs, selling the

Disability Income Insurance The same rationale for using a life insurance policy to fund a buy-sell agreement upon death applies to using a disability insurance policy to fund a buy-sell agreement upon total disability. With this option, the active business owner can acquire the disabled owner’s business interest

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

This information represents our understanding of the federal gift and estate tax laws as currently interpreted. The information provided is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. MassMutual, its employees and its representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estateplanning process should work with an estateplanning team, including their own personal legal or tax counsel.

ANDREYPOPOV/BIGSTOCK.COM

he death or disability of an owner is one of the greatest threats facing your business. Not only can it severely impact the day-to-day operations of the business, but it can also create strife in your family and raise all sorts of business succession and estate tax problems. If you are like most business owners, you presumably want the company you’ve worked hard to build to continue to thrive after you are gone. Succession planning is the process of making that desire a reality. Protecting the longevity of your business means preparing for the unexpected and helping to ensure that your business will continue in the manner in which you choose. There is no one formula or cure-all strategy to follow in developing a succession blueprint. Your plan is customized based upon your vision for the future of the company, your retirement and personal goals, your leadership team, timetable, family situation, financial position, health and age.

If you are a business owner, don’t leave the future of your company to chance. Work with a financial advisor or an attorney to help you develop and document your succession plan today.

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

UNMATCHED TEXAS HUNTING RETREAT After hunting several ranches throughout South Texas over the last 15 years, I have finally found one that has it all. Fantastic accommodations, food and overall comfort are second to none. The number of quality animals is simply unbelievable. - Bobby Phillips

LONESOMECOYOTERANCH.COM

(361) 215-9283

Focusing where it matters most...

A veteran-and minority-owned business, Excel Safety Consultants Inc. is owned by a safety professional with over 20 years’ experience who understands the needs of the oil and gas industry. We are committed to providing experienced Safety Advisors to fit our clients’ needs – from one Safety Advisor to multiple ones – at a reasonable price with 24/7 availability. Our Safety Advisors have a wide variety of knowledge and experience from the petrochemical industry performing turnarounds, construction, drilling and completions (onshore and offshore), pipeline, as well as operations onshore and offshore. Whatever our clients need, we have the experience necessary. Excel Safety Consultants also provides Case Management services. We have partnered with a board-certified occupational physician and a Texas Workers’ Compensation insurance adjuster who believe in the ability to interpret OSHA recordkeeping standards and to implement best-practice methods which not only offer the employee the best medical care but also allow for reduced OSHA recordability to our customers.

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

Excel Safety Consultants The Woodlands, Texas 956.592.6365 | excelsafetyinc.com

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

Come and Experience De Premier Difference

a holistic approach to optimal health and wellness Day Spa Health Wellness Medi Spa 281.496.3772 1002 Blackhaw St. | Houston, TX 77079 depremierspa.com DePremierSpa.Wellness.Aesthetics.MediSpa +DepremierspaRitaOlufowoshe

Gift Certificate Available

Dissatisfied of Service ServiceYou YouAre Are DissatisfiedWith With the the Level Level of Receiving InvestmentFirm? Firm? Receiving From From Your Your Investment Have StifelHas HastotoOffer? Offer? HaveYou YouConsidered Considered What What Stifel • Stifel has 125 andservice servicetotoinvestors. investors. • Stifel has 125years’ years’experience experienceoffering offering knowledge knowledge and • Wealth planning for individuals individualsand andbusinesses. businesses. • Wealth planningand andaccumulation accumulation strategies strategies for • Professional Financial combinedexperience experienceononhand hand serve you. • Professional FinancialAdvisors Advisorswith with155 155 years of combined toto serve you. Jerry Browning, CPA,AAMS AAMS®® Merrell Merrell Clark, Clark, MBA, MBA, CFP Jerry R. R. Browning, Jr.,Jr.,CPA, CFP®®

Monte MonteP.P.Custer Custer

President/Investments ViceVice President/Investments

SeniorVice Vice President/Investments President/Investments Senior

Senior President/Investments SeniorVice Vice President/Investments

®® Linda “Lin” Del Alamo,CFP CFP Linda “Lin” Del Alamo,

JonR. R. Hepner Hepner Jon

John Jr.Jr. JohnW.W.McCoy, McCoy,

President/Investments FirstFirst ViceVice President/Investments

SeniorVice Vice President/Investments President/Investments Senior

Financial Advisor, Branch Manager Financial Advisor, Branch Manager

(361) 693-3060| (866) | (866)431-0966 431-0966 (361) 693-3060 Carancahua,Suite Suite110 110| |Corpus Corpus Christi, Christi, Texas Texas 78401 711711 N.N. Carancahua, 78401 44

Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE | www.stifel.com

Nicolaus SHALE OIL & GAS BUSINESS MAGAZINE // Stifel, MAR/APR 2015

& Company, Incorporated | Member SIPC & NYSE | www.stifel.com

Sometimes the best way to mind your business is to get away from it. That’s exactly what Joshua Creek Ranch had in mind when plans came together for the brand new, Branch Haus Lodge and Conference Facility. Opening in early Spring 2015, the Branch Haus will feature 11 luxury guest rooms, massage rooms and a 2,400 square-foot, state-of-the-art conference and event facility – all with incredible views of the beautiful Texas Hill Country. Combine that with the world-class hunting, shooting, fishing and gourmet dining Joshua Creek Ranch has cultivated over the last 25 years and you’ve got the perfect setting for strategizing, planning and developing your business.

Call today and book your next meeting, conference or retreat in paradise. Located in Boerne, TX, just 45 minutes NW of San Antonio, offering guests a first-class setting to enjoy the ultimate outdoor experience.

www.joshuacreek.com a (830) 537-5090 a info@joshuacreek.com Like, Follow and Connect with us

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

PO LICY

TEXAS LEGISLATURE HEARS FROM OIL AND GAS INDUSTRY STAKEHOLDERS

T BY: THOMAS TUNSTALL, PH.D

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

Below is the full list of speakers and panelists (in approximate order of appearance): Todd Staples, President, Texas Oil & Gas Association David Porter, Commissioner, Railroad Commission of Texas Karr Ingham, Petroleum Economist, Texas Alliance of Energy Producers Thomas Tunstall, Ph.D., Research Director, Institute for Economic Development, University of Texas at San Antonio Rep. Ryan Guillen George King, Apache Corporation Chris Faulkner, Founder, President and CEO, Breitling Energy Corporation Rich Haut, Energy Production Program Director, Houston Advanced Research Center Ben Shepperd, President, Permian Basin Petroleum Association Don Tymrak, City Manager, Karnes City Victor Carrillo, Chairman, West Texas Energy Consortium Sister Elizabeth Riebschlaeger, Environmental Advocate, DeWitt County James Beauchamp, President, Midland-Odessa Transportation Alliance Leodoro Martinez, Chair, Eagle Ford Shale Consortium Rob Coleman and Mike Reissig, Office of Comptroller of Public Accounts Bryan Shaw, Chair, Texas Commission on Environmental Quality Tim Poe, Acting Director, Oil and Gas Division, Railroad Commission of Texas Carlos Rubinstein, Chair, Texas Water Development Board Rep. Gene Wu James LeBas, Economic and Fiscal Policy Analyst, Texas Oil & Gas Association Jim Malewitz, Reporter, The Texas Tribune Ed Ireland, Executive Director, Barnett Shale Energy Education Council Hugh Fitzsimons, Landowner, Dimmit County Thure Cannon, President, Texas Pipelines Association Ben Shepperd, President, Permian Basin Petroleum Association Russell Gold, Senior Energy Reporter, The Wall Street Journal

months. Perhaps the best line of the day was delivered by James LeBas from the Texas Oil & Gas Association: “There are two types of people when it comes to oil prices. There are those that don’t know what the price of oil will be. And then there’s … actually there’s only one type of people.” About the author: Thomas Tunstall, Ph.D., is the Research Director at the Institute for Economic Development at the University of Texas at San Antonio. He was the Principal Investigator for the Economic Impact of the Eagle Ford Shale studies released in May 2012, March 2013 and September 2014, as well as the West Texas Energy Consortium Shale Study. He has published peer-reviewed articles on shale oil and gas, and has written op-ed articles for The Wall Street Journal. Dr. Tunstall has spent a significant portion of his career on overseas workforce and economic development assignments in such locations as Azerbaijan, Afghanistan, Kenya and Zambia. He holds a Ph.D. in economics and public policy and an M.B.A. from the University of Texas at Dallas, as well as a B.B.A. from the University of Texas at Austin.

PHOTO BY JOSE ALCALA

his past December, in advance of the 2015 Texas Legislature currently in session, the House Energy Caucus and Senate Eagle Ford Shale Legislative Caucus presented an Energy Forum at the State Capitol hosted by the Permian Basin Petroleum Association. The event served to highlight recent issues facing the energy industry and how the legislative agenda may be shaped as a result. Speakers and panelists included Railroad Commissioner David Porter, Chair of the Eagle Ford Shale Consortium Leodoro Martinez, President of the Permian Basin Petroleum Association Ben Shepperd, and President of the Texas Oil & Gas Association (and former Agriculture Commissioner) Todd Staples (see full list, right). The falling price of crude oil received a significant amount of attention. On the day of the event (Dec. 10), West Texas Intermediate prices were flirting with $60 per barrel. Since then, prices have fallen even further as a result of several factors that have come to a head. The precipitating event occurred at a recent OPEC meeting held last November, when the cartel decided against curbing production to stabilize prices. Ahead of that meeting, non-OPEC members, such as Russia, also indicated that they would maintain crude oil production at current levels. Combined with increases in production using unconventional techniques over the past few years from places like the Permian Basin in West Texas and the Eagle Ford in South Texas, there is a lot of oil on the world market. An apparent slowdown of growth in China is also having an impact. Taken together, the increase in supply bumping up against weakening demand portends a predictable outcome: falling prices. And so, much of the discussion at the energy briefing focused on break-even points for producers in South and West Texas. While the average break-even point for Texas shale is believed to be in the $55-$60 per barrel range according to industry analysts, some operators are profitable at just $40 per barrel. Either way, given the unexpected turn of events, it is safe to say that at this point we can only speculate as to how things will shake out over the next few

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

POLIC Y

TEXAS LEGISLATURE GETS DOWN TO BUSINESS

THE FUTURE PATH OF THE TEXAS ECONOMY AND THE OIL AND GAS INDUSTRY WILL BE GREATLY INFLUENCED BY THE TEXAS LEGISLATURE IN THE UPCOMING MONTHS

THE TEXAS LEGISLATURE convened Jan. 13 with a host of new state leaders and the most conservative group of lawmakers the state has seen in decades. Texas Republican leaders, emboldened by strong victories, are viewing their decisive elections as a mandate to follow up on election promises and promote change. January was tied up with the pomp and circumstance of inaugural and swearing-in ceremonies. By mid-February, leaders of both chambers had named committee appointments, adopted procedural rules, set permanent committee schedules and met for organizational purposes. During March and April, the Texas Legislature is in full swing with committees holding hearings on priority bills and even taking preliminary votes. In the Senate, social legislation is dominating the agenda, whereas in the House a different approach to bill consideration is taking place, guided in part by the Speaker and choice of committee chairs. The importance of committees cannot be underestimated – the assignment is followed by months of suspense and drama, and even angst. Committee leadership and membership, as well as assigned jurisdiction, are all important determinants on the priority of legislation and probability of passage, as committees get first crack at legislation and hold public hearings before a bill is blocked or goes to the floor for a vote by a full chamber. In the Senate, Lt. Gov. Dan Patrick invoked his “New Day” theme, reducing the number of standing committees. He also followed through on a campaign promise to change the Senate rule requiring a two-thirds vote (21 votes) to allow for a three-fifths vote (19), thereby ensuring

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

Republican dominance of the agenda (with 20 Republicans in the Senate). By eliminating three committees previously chaired by Democrats, Patrick also reduced the number of Democrats who will lead Senate committees in the 2015 session – another campaign promise. Sen. Troy Fraser, R-Horseshoe Bay, was named Chair of the expanded Natural Resources & Economic Development Committee, which has jurisdiction over the Public Utility Commission of Texas, the Texas Commission on Environmental Quality and the Railroad Commission of Texas. The organizations encompass oil and gas, water and now telecommunication and electricity. Other key committees for the oil and gas industry include: Business & Commerce - Kevin Eltife, Chair; Brandon Creighton, Vice Chair Finance - Jane Nelson, Chair; Juan “Chuy” Hinojosa, Vice Chair State Affairs - Joan Huffman, Chair; Rodney Ellis, Vice Chair Transportation - Robert Nichols, Chair; Don Huffines, Vice Chair In the House, Speaker Joe Straus, R-San Antonio, announced the appointment of House committees with some major shuffling of members, although committee jurisdictions remained largely intact. Straus kept his lieutenants

THEWATERMARGIN/BIGSTOCK.COM, OCULO/BIGSTOCK.COM

BY: GLORIA LEAL

atop key committees on Calendars, State Affairs and House Administration but shuffled around 10 other committee chairs, perplexing even longtime Capitol observers. State Reps. Todd Hunter (R-Corpus Christi), Bryon Cook (R-Corsicana) and Charlie Geren (R-River Oaks) kept their jobs on the above committees, respectively. Straus named new chairs for 24 of 40 committees in an effort to bring in new perspectives and leadership. The committee appointments reflect the makeup of the House, the needs and priorities of both rural and urban areas, as well as diversity of House membership. Some of the most significant moves for oil and gas include naming Rep. Drew Darby, R-San Angelo, Chair of the Energy Resources Committee and Rep. James L. “Jim” Keffer, R-Granbury, Chair of the Natural Resources Committee, which has jurisdiction over ever-important water issues. Rep. John Otto, R-Dayton, will chair the budget-drafting Appropriations Committee; and Rep. Dennis Bonnen, R-Angleton, is at the helm of the tax-writing Ways & Means Committee. Geanie W. Morrison, R-Victoria, was named Chair of the Environmental Regulation Committee, which has jurisdiction over air and other environmental factors. In a move sure to have implications, John T. Smithee, (R-Amarillo), longtime Chair of the Insurance Committee, was replaced with John Frullo, R-Lubbock. Smithee will now chair the Judiciary & Civil Jurisprudence Committee. Rep. Rafael Anchia, D-Dallas, retained the Chair of International Trade & Intergovernmental Affairs - a more significant appointment given the importance of trade with Mexico and energy reforms in that country. Rep. Joe C. Pickett, D-El Paso, will chair the Transportation Committee, with Armando “Mando” Martinez, D-Weslaco, as Vice Chair. Full membership of key committees related to energy include: Energy Resources » Drew Darby, R-San Angelo, Chair » Chris Paddie, R-Marshall, Vice Chair » Rafael Anchia, D-Dallas » Terry Canales, D-Edinburg » Tom Craddick, R-Midland » Tony Dale, R-Cedar Park » Abel Herrero, D-Corpus Christi » James L. “Jim” Keffer, R-Granbury » Phil King, R-Weatherford » Brooks Landgraf, R-Odessa » Morgan Meyer, R-Highland Park » Debbie Riddle, R-Spring » Gene Wu, D-Houston Natural Resources » James L. “Jim” Keffer, R-Granbury, Chair » Trent Ashby, R-Lufkin, Vice Chair » Dennis Bonnen, R-Angleton » DeWayne Burns, R-Cleburne » James Frank, R-Wichita Falls » Kyle Kacal, R-Bryan » Tracy O. King, D-Batesville » Lyle Larson, R-San Antonio » Eddie Lucio III, D-Brownsville » Poncho Nevárez, D-El Paso » Paul Workman, R-Austin Other Relevant Chairs: » Agriculture & Livestock - Tracy O. King, D-Batesville » Business & Industry - René O. Oliveira, D-Brownsville » County Affairs - Garnet F. Coleman, D-Houston » Land & Resource Management - Joe Deshotel, D-Port Arthur » Urban Affairs - Carol Altado, D-Houston

THE IMPORTANCE OF COMMITTEES CANNOT BE UNDERESTIMATED THE ASSIGNMENT IS FOLLOWED BY MONTHS OF SUSPENSE AND DRAMA, AND EVEN ANGST OIL AND GAS ISSUES ON THE LEGISLATURE’S AGENDA IN 2015 The deadline for filing bills and joint resolutions - other than local bills, emergency appropriations and bills declared an emergency by the governor - is March 13, 2015. To date, bills have been filed related to a myriad of issues, but legislation pertaining to the proliferation of local bans, seismicity, unitization authority, allocation of production permitting, disposal, well regulation and flaring is dominating discussion. Place-holder bills have been filed for defining the continuing role of groundwater conservation districts. Local bans in light of Denton: Gov. Greg Abbott has called for doing away with local bans on plastic bags, fracing and tree-cutting that amount to what he called a “patchwork quilt of bans and rules and regulations that is eroding the Texas model” at an Austin conference in January. Various bills have been filed in both the Senate and the House addressing the issue of local bans. The bills take varying approaches to the issue. Some are narrowly crafted and are oil and gas specific - prohibiting local political subdivisions from banning hydraulic fracing or unilaterally imposing restrictions on oil and gas development, such as setbacks, without procedural conditions related to “takings” and a determination from the Attorney General. Other bills are not energy specific, but have broad impact and would restrict ordinances having economic impact. Efforts to weaken local economic bans have failed in previous sessions. But it’s clear that such proposals seek to clarify the proper role of government in local affairs regarding protecting citizens’ health and safety. Workforce and worker safety issues: Decisions made this session will affect the workforce in one way or another. From appropriations and education to transportation and insurance, key issues of the 84th Legislature will

impact the economy and directly and indirectly affect workers in the year ahead. Of primary interest to workingclass Texans is the possibility of a raise to the state’s minimum wage. Increasing minimum wage has been a national focus recently, with several states and cities having raised the minimum wage in their jurisdiction. In addition, efforts are being made to expand the budget to pay for construction and maintenance on Texas roadways, which would increase job opportunities throughout the state, including energy-producing areas. The Legislature may also see the need to address a few issues evident in the oil patch, including worker safety, training and workers’ compensation. Commercial driver issues are being discussed and may find their way into legislation as well. Of interest to employers, as in previous sessions, legislation has been filed that would require the use of “e-verification” of the legal status of employees for those entering into contracts with certain public entities. The future path of the Texas economy and the oil and gas industry will be greatly influenced by the Texas Legislature in the upcoming months. Texas legislators face an immense challenge in continuing the economic momentum that has resulted from the energy boom; and they will consider carefully all legislation with potential economic impact as it moves through the legislative process. A more comprehensive list of those issues being considered by the legislature will be available for the next issue of SHALE Magazine. About the author: Gloria Leal is an attorney and government-affairs consultant in Austin, Texas. Leal has a solo practice primarily relating to energy, environmental and health care matters. She also represents the Texas Alliance of Energy Producers, a national association of independent producers and service providers. She can be reached at gleallaw@sbcglobal.net.

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

“ Whether you are a major corporation or a small start up, we have solutions that can deliver results”

Consultant Services • Public Relations Issues • Housing & Development

Carlos Uresti

Turning Point Strategies “Our consulting services focus on our clients‘ issues and opportunities: Turning Point Strategy’s, marketing, organization, operations, technology, transformation, mergers & acquisitions, across all different types of industries and geographies. We bring helpful and innovative strategies, and we are known for our success: we capture value across boundaries and between the silos of any organization. We have a proven successful track record with the companies that we have worked with and we would like to share that success with you. ”

• Oil and Gas Consumer Products • Oil and Gas Transportation • Oil and Gas • Utilities and Alternative Energy

Have you been looking for someone to help your company thrive and just need to meet the right people? Call us today and let us give your company the turning point strategy for success.

210.920.4222 turningpoint@shalemag.com

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

coastalbend.edu

CONFIDENCE.

WEâ&#x20AC;&#x2122;LL DO WHAT IT TAKES TO HELP YOU GET THERE. You have goals. Ours is helping you achieve them. To learn more, contact: George F. Long Financial Services Professional MassMutual South Texas 10101 Reunion Place, Suite 300 San Antonio, TX 78216 210-384-5314 gflong@financialguide.com www.financialguide.com/george-long

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

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

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

L IFESTY LE

JOSHUA CREEK RANCH IS MUCH MORE THAN A HUNTING LODGE Springtime Begins a Whole New Season at Texas Hill Country Resort Destination

rom October through March every year, Joshua Creek Ranch offers some of the best upland bird hunting for quail, pheasant and chukar in North America. During that time, hundreds of corporate guests from the oil and gas industry, as well as others, visit Joshua Creek Ranch in Boerne for wing shooting, deer hunting, fly-fishing, luxury lodging, gourmet dining and a first-class setting for entertaining clients or simply relaxing fireside with friends and colleagues. As the upland bird season winds down at the end of March, a whole new season begins at Joshua Creek Ranch with a wide range of activities and opportunities to enjoy this beautiful Texas Hill Country ranch tucked away on a secluded stretch of the Guadalupe River. In addition to year-round lodging and dining, guests can enjoy sporting clays, fly-fishing, kayaking or just soaking in the amazing sunsets and scenery as the spring foliage starts to bloom. This spring marks the grand opening of the allnew Branch Haus Lodge and Utopia Great Room at Joshua Creek Ranch. Featuring 11 new guest rooms, a

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

2,400-square-foot state-of-the-art conference and event facility with a full commercial kitchen and two massage rooms, the Branch Haus Lodge will increase Joshua Creek Ranchâ&#x20AC;&#x2122;s ability to accommodate bigger groups for corporate events, destination weddings and other special occasions. For corporate events, Joshua Creek Ranch is in a class by itself when it comes to Hill Country destinations. With the unique ability to provide an all-inclusive

PHOTOS COURTESY OF JOSHUA CREEK RANCH

SPECIAL TO SHALE

PHOTOS COURTESY OF JOSHUA CREEK RANCH

THE BRANCH HAUS LODGE WILL INCREASE JOSHUA CREEK RANCHÕS ABILITY TO ACCOMMODATE BIGGER GROUPS FOR CORPORATE EVENTS, DESTINATION WEDDINGS AND OTHER SPECIAL OCCASIONS venue with premier event facilities, lodging and dining, combined with world-class outdoor activities, Joshua Creek Ranch is perfect for corporate meetings, conferences, retreats, team-building, training seminars, company parties and client entertainment. “As an avid wing shooter of thousands of birds each year, I can honestly say Joshua Creek Ranch represents the best of the best. When you combine a great hunting experience with five-star lodging and dining, you’ve got a real winner. The new conference facilities truly make Joshua Creek Ranch a first-class destination for corporate retreats, conferences and client entertainment,” attested Cornelius Dupré II, Chairman and CEO of Dupré Energy Services. For destination weddings, Joshua Creek Ranch offers a gorgeous Hill Country setting with rustic elegance. With indoor/outdoor locations for up to 200 guests and lodging for up to 50, Joshua Creek Ranch can host any wedding occasion during the non-hunting months of April through September. From bachelor parties and rehearsal dinners to wedding ceremonies and receptions, you simply won’t find a more compelling venue for creating a trip full of lifelong memories. “When it comes to weddings, the most unique thing about Joshua Creek Ranch is that we have the ability to host full ‘weekend wedding’ packages beginning with the rehearsal dinner on Friday evening, the ceremony and reception on Saturday and ending with brunch on Sunday,” offered Kevin Welborn, Director of Marketing & Sales. “Plus, we have enough lodging on-site that the wedding parties and families don’t need to leave the ranch. And, last but not least, we can keep visitors occupied with sporting clays, fly-fishing, kayaking, tubing and other activities throughout the weekend,” Welborn added. In addition to corporate events and weddings, Joshua Creek Ranch also plays host to a variety of other celebrations during the non-hunting months. Reunions, graduations, birthdays, retirements and private parties are just a few occasions that are often celebrated by groups at the lodge. The scenic 15-station, fully automatic sporting clays course is also in high demand for fundraisers and special events. With the new Branch Haus Lodge and Utopia Great Room opening this spring for conferences and events, Joshua Creek Ranch has become so much more than a hunting lodge - it is truly a fullservice, year-round resort destination for group events - complimentary Texas hospitality and Hill Country sunsets included! The ranch is recognized as one of only five Beretta Trident lodges for excellence in upland bird hunting in the United States and the only one in Texas, as well as one of only two Orvis-endorsed wingshooting lodges in Texas. Also the recipient of the 2013 Award of Excellence from Sporting Classics Magazine for Hunting Lodge of the Year, Joshua Creek Ranch truly represents the best of the best … and it’s only getting better! To learn more about Joshua Creek Ranch or to book your next corporate or social event, visit www. joshuacreek.com or call 830-537-5090. MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

L IFESTY LE

LIFESTYLE CHANGES FOR OPTIMAL HEALTH AND WELLNESS

W BACK PAIN AND HEADACHES ARE THE MOST COMMON CHRONIC PAIN THAT EMOTIONALLY AND PHYSICALLY INCAPACITATE PEOPLE

herever you are in your health and wellness journey, you are not alone. It’s not too late to make lifestyle changes that can heal generational diseases, stress, substance abuse, obesity and chronic pain that prevent you from doing what you love. In my 25 years in the health and wellness industry, I have seen many back pain and migraine sufferers who have embraced natural therapies and remedies such as massage therapy, detoxification, aromatherapy, herbs, chiropractic, acupuncture, healthy eating, exercise and using the right supplements to heal or manage chronic aches and pain. Back pain and headaches are the most common chronic pain that emotionally and physically incapacitate people. We all have one pain or another, which is a good thing; it means the body is working. Chronic pain, however, such as lower-back pain, can be agonizing, leaving people feeling helpless and depressed. It can also have a profoundly negative impact on a person’s quality of life, preventing individuals from doing what they love. Modifying your diet and adding regular massages to your routine can provide relief in a natural, holistic approach. Back pain may be caused by muscular problems, misaligned disk issues or bone-thinning diseases. But the major contributor to back pain is living an unhealthy lifestyle. Damaging habits like poor posture cause pain overload, which can result in chronic back pain, nerve compression and loss of range of motion. Poor posture can also cause spinal misalignment conditions such as lordosis (exaggerated

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

lumbar curvature, causing a hollow in the spine), kyphosis (thoracic curvature, producing a hump) and scoliosis (lateral curvature of the spine). Headaches are a slightly different chronic beast and can be classified as either tension, cluster or migraine headaches. Many people suffer from tension headaches, which start at the back of the neck simply as a dull pain. Tension headaches may result from muscle contractions due to poor posture, poor diet, spinal misalignment, stress, anxiety, lifestyle or environmental factors. Cluster headaches are caused by vascular issues concentrated around the eyes. This class of headaches may produce tears and facial flushing. Triggers for migraines include stressful work and home lives, food allergies or a hormone imbalance. Migraine headaches can be devastating and can affect a person’s ability to function on a daily basis. You are what you eat and, consequently, you are what you absorb. What you eat, drink and absorb from the environment can hinder your body’s cleansing and healing abilities. Therefore, eating foods such as fresh fruits, vegetables, lean meats and foods rich in fiber will aid in digestion and help you maintain a healthy lifestyle. Also, a detoxification can be done in order to expel the toxins you have absorbed. For a proper body detoxification, a professional therapy such as the EB Pro detoxification system or infrared sauna is highly recommended. These are effective ways to detoxify and remove heavy metals from the body. The benefits of cleansing the body of toxins include reducing inflammation, relieving chronic pain, overcoming disease, expediting injury recovery, boosting immune function, reducing fluid retention, relieving headaches, boosting energy levels, improving sleep and increasing blood circulation. In addition to a good diet and detoxification, massage therapy can be used to relieve stress and pain, loosen tense muscles and reduce stress hormone production. As well, regular massages can help reduce emotional and physical stress, aid in sleep quality and relax the mind to relieve pain. A true lifestyle change requires total commitment for optimal health. You can start today with simple lifestyle choices, like eating healthier, exercising frequently, living a joyful life and avoiding unhealthy habits. Get your life back through healthy living and enjoy renewed energy and vitality, pain-free living and an extended life expectancy. For more information: Contact Rita Olufowoshe at info@depremierspa.com or 281-496-3772. Visit De Premier Spa online at www.depremierspa.com. Disclaimer: This article is for your information only. It is neither a diagnosis nor prescription.

WAVEBREAK MEDIA LTD/BIGSTOCK.COM

BY: RITA OLUFOWOSHE

A room with a view.

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

361-887-1600 • omnihotels.com/corpuschristi

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

TAP INTO YOUR POTENTIAL

SHALE IS BOOMING AND THE COMPETITION IS GROWING. Don’t let your business get left in the dust—we’ll steer your marketing to a new level of success. Services may include but are not limited to:

VISIT SHALEMAG.COM/MARKETING OR CALL 210.240.7188 FOR ADDITIONAL INFORMATION. SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

Holiday Inn

San Antonio North Hill Country

Great Hotels Guest Love!

Just the place for you!

The Holiday Inn N Hill Country offers 111 spacious guest rooms with a

contemporary appeal. 2,800 sq. ft. of flexible meeting space, onsite restaurant & bar, indoor pool and whirlpool. Offering Complimentary Hotel Shuttle to and from the San Antonio International Airport and within a 5 mile radius.

holidayinn.com/hillcountrytx 19280 Redland Road | San Antonio, TX. 78259 P: 210 298 8820 F: 210 298 8830 ask for the SHALE rate

J&M

800.456.8265 Areas of Operation Terminal Locations

TANK LINES, INC. Let’s Talk Service

Providing Quality Transportation Services For More Than 60 Years q

Bulk Sand Hauling

24/7 Dispatch

Portable Silo/Tank Storage

Bulk Cement Hauling

Daily Reports

Sand Coordination

Truck to Rail

Vendor-Controlled Inventory

Flat Bed Hauling

Rail to Truck

And Much More!

Satellite Tracking

Cleburne, TX

(817) 645-3233

Hondo, TX

(210) 542-0668

Marble Falls, TX

(830) 693-2480

Odessa, TX

(432) 312-3473

San Antonio, TX

(210) 542-0668

Brighton, CO

(651) 353-2653

Birmingham, AL

(205) 798-9988

Calera, AL

(205) 358-1375

Sylacauga, AL

(256) 245-3933

Americus, GA

(229) 924-3663

Barnesville, GA

(770) 358-4474

Holly Springs, GA

(770) 345-2881

Temple, GA

(770) 489-5574

Oklahoma City, OK

(800) 456-8265

RANDY A. PLOTNER Director of Business Development

2018 Plantation Drive | Richmond, TX 77406 cell 651.353.2653 | rplotner@jmtank.com

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

Opening Doors in San Antonio Since 1974 KING REALTORS is dedicated to helping San Antonio and the oil industry with their real estate needs. If you are looking to buy or sell a property, call us and say you saw it in SHALE Magazine!

TABITHA KING 210.414.4255

5600 Broadway Avenue San Antonio, TX 78209 KingRealtors.com tabitha@kingrealtors.com 60

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

WTxEC Annual Conference 2015

Power In Partnership MAY 6-7 TH 2015

San Angelo, Texas The West Texas Energy Consortium is excited to present our 2nd Annual Conference at the McNease Convention Center on May 6 & 7, 2015 Visit wtxec.org for the full agenda

Day One (May 6, 2015) Workshop & Training Sessions • Emergency Responders Training Wild Well Control 6 hours CEU offered • Texas Regional STEM Education with Dr. Reagan Flowers • Economic Development “Share The Knowledge” Railway expansion, city ordinance, hydraulic fracking, and more

Members Only Event - TBA Networking Reception Day Two (May 7, 2015) Industry Trends, Employer Updates, Legislative Affairs, Economic Forecast, and MORE!

INTERESTED IN SPONSORSHIP? WTxEC has something for everybody. To learn more about supporting our work in West Texas and the benefits to your company or organization, contact Katherine Stokes, Executive Director katherine@wtxec.org and 325-669-2769.

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

C OM M UNIT Y

U.S. HOLIDAY GIVE BACK U.S. employees came together over the holiday season to provide support for members of our Wood Group PSN community. SPECIAL TO SHALE

For more information: Visit Wood Group PSN online at www.woodgroup-psn.com.

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

THE GIVING SPIRIT WAS ESPECIALLY STRONG IN OUR PEOPLE AS THEY RALLIED TOGETHER TO HELP EACH OTHER THROUGH TOUGH TIMES AND BECAME INVOLVED IN A VARIETY OF SOCIAL RESPONSIBILITY EFFORTS

PHOTO COURTESY OF WOOD GROUP PSN

ver the holiday season, Wood Group PSN’s U.S. region found many ways to give back. The giving spirit was especially strong in our people as they rallied together to help each other through tough times and became involved in a variety of social responsibility efforts. Throughout the season, our team provided meals, toys, clothes and other support for the communities near our facilities and globally through our Vine Trust initiative in Tanzania. During our Thanksgiving potluck, our Houston headquarters collected cash donations and wish list items for the Adopt a Hero organization, which works with the Warrior and Family Support Center in San Antonio at Brooke Army Medical Center to bring the joy of Christmas to our wounded vets and their families. This is the second year we have collected items and funds, and in total, we have provided more than $3,000 for our veterans. We also raised more than $4,000 for Wood Group PSN’s five-year global charitable effort, Vine Trust, during our annual holiday raffle. Our U.S. vendors donated more than 40 high-value prizes and several of our business locations throughout the U.S. participated, making it one of our most successful raffles to date. These efforts reinforce the amazing team we have and our strong culture, centered on our core values.

Bigger. Better. Booming. With a channel depth of 45 feet, authorized and permitted for 52', direct vessel-to-rail discharge, BNSF, KCS and UP on site, dockside truck access, union and non-union stevedore availability, FTZ #122 and the shortest ship mooring time in the Texas Gulf, we get straight to business. Call on your Texas partner.

businessdevelopmentdpt@pocca.com

www.portofcorpuschristi.com

Texas’ LARGEST PROVIDER of RV’s for 28 Years! $122.92 a month

ronhooverboerne.com 29277 IH-10 West (exit 546) Boerne, TX 78006 830.981.9543

Financing for all types of credit! / WE make financing easy on you

2014 Canyon Cat 24FBC / Travel Trailer St #10136 * 4.74 APR, WAC, 144 months, 20% down

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

SHALE LODGING OFFERS THE COMFORTS OF HOME STAY WITH US

FEEL THE DIFFERENCE

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

210-885-9774

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

http://shale-lodging.com

O U R Carrizo Springs 122 Loop 517 830.325.2350

L O C A T I O N S

Kenedy 4312 US Hwy 181 361.436.6389

Cotulla 638 North Baylor 830.325.2360

Three Rivers 5842 Hwy 281 361.786.1919

C ALL TO LL F R E E 8 7 7 . 6 7 8 . 6 0 8 6 info@eaglesdensuites.com â&#x20AC;˘ www.eaglesdensuites.com

Coming soon to Big Spring 64

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

S A F E

I N

T H E

F I E L D . S A F E RANCHHAND.COM 800.366.9712

Site Development

•

excavation

•

UtilitieS

•

A T

P L A Y .

ON BE THE SAFESIDE

paving

713-838-7300 • www.slackandco.com houston • Eagle ford • Permian basin

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

/ / N O NPR O F I T

BIG BROTHERS BIG SISTERS OF SOUTH TEXAS LAUNCHES CAPITAL CAMPAIGN Plans for a South Texas mentoring resource center that will dramatically impact childrenÕs futures

BIG BROTHERS BIG SISTERS OF SOUTH TEXASÕ MISSION IS TO PROVIDE CHILDREN FACING ADVERSITY WITH ONE-TOONE MENTORING RELATIONSHIPS THAT CHANGE THEIR LIVES FOR THE BETTER, FOREVER

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

ig Brothers Big Sisters of South Texas (BBBS) envisions a future in which every child who wants a Big Brother or Big Sister gets one. To make that a reality, BBBS is asking our community to support building a Mentoring Resource Center that will provide the necessary space to respond to the increased need.

ONE-TO-ONE MENTORING IS CRITICAL TO THE SUCCESSFUL DEVELOPMENT OF OUR YOUTHS

Youths today are growing up without positive one-to-one support and guidance from adults, yet we all know that this is exactly what they need in order to successfully navigate the challenges of childhood. Every prosperous adult can identify the role models and mentors who helped them develop the critical assets they needed in order to grow up successfully. Without this critical support, youths can fall prey to destructive cycles of poverty, failure, abuse, neglect, teen pregnancy, gang violence, substance abuse, truancy and juvenile delinquency. Research has proven that through facilitation of long-term one-to-one mentoring relationships, the Big Brothers Big Sisters programs stop these cycles.

BIG BROTHERS BIG SISTERS SERVES OVER 3,000 SOUTH TEXAS YOUTHS, BUT THE NEED IS EVEN GREATER

Big Brothers Big Sisters of South Texas’ mission is to provide children facing adversity with strong, enduring and professionally supported one-to-one mentoring relationships that change their lives for the better, forever. Its vision is for all children to achieve success in life. BBBS is headquartered in San Antonio but has eight branch offices across its 38-county service area.

RENDERING COURTESY OF BIG BROTHERS BIG SISTERS SOUTH TEXAS

SPECIAL TO SHALE

RENDERINGS COURTESY OF BIG BROTHERS BIG SISTERS SOUTH TEXAS

The organization supported over 3,000 children in one-toone mentoring relationships last year with the same number of volunteers. However, there are still over 1,000 children waiting to be matched to a mentor. Agency leaders are determined for the program to grow and to serve every child who needs or wants a Big Brother or Big Sister. There shouldn’t have to be a waiting list when a child needs help. Youths are referred by parents, teachers, counselors, therapists, law enforcement and child protective services. A child can be placed on the waiting list at age 5 and services can continue until he or she turns 21. There is no fee for these services. A majority of the kids in the program live in single-parent homes. They are referred to the program because they are at-risk, and BBBS aims to keep them out of trouble and in school. “It’s tough to help these kids when they sit on a waiting list for an average of 12-18 months,” says Vice President of External Communications Christina Martinez. “So much can happen to them while they are waiting for a Big Brother or Big Sister. We want to match them much faster. There is no shortage of mentors.”

SPACE LIMITATIONS ARE A MAJOR OBSTACLE TO THE PROGRAM’S CONTINUED GROWTH

Aside from funding challenges, one of the primary obstacles to eliminating the waiting list is the lack of space to accommodate the additional professional staff necessary to facilitate and support mentoring matches. The current headquarters facility is located in downtown San Antonio. Built in 1960, the building houses over 40 employees but is only 5,569 square feet. Services provided out of the building include training sessions for parents and volunteers, screening interviews

for volunteer mentors and activities for matches to engage in. In order for the program to grow, it needs more space for all of these activities and for a growing workforce of mentoring professionals. As a result of tremendously increased demands for its services from 2000 to 2009 - which necessitated adding more professionally trained staff responsible for recruiting, screening, training, matching and supporting volunteers, parents and children - the agency’s offices have gone from full to bursting. Staff now occupy all the space in which many program activities used to occur. Not only are a “Kid’s Corner” and computer lab now gone, but there is no space for conducting private volunteer screening interviews, hosting matches, volunteers, parents or families for any kind of activity in the facility. Most critical of all, the agency lacks space for enrolling and processing the thousands of volunteers who are core to the mission of the organization and its continued growth. Volunteer orientations and training sessions, most particularly, are now either held in the lobby - which severely limits the number of attendees and causes other problems - or are pushed externally, which is also inefficient. BBBS’s leadership came to the conclusion that the facility is not adequate to meet programming needs, which causes widespread and ongoing inefficiencies, and inhibits the continued growth of the organization’s services.

CAPITAL CAMPAIGN TO BUILD THE SOUTH TEXAS MENTORING RESOURCE CENTER

In 2014, after two years of research and planning by the board of directors to determine how to meet the overwhelming need and demand for services, BBBS launched a capital campaign to raise $8 million to build the South Texas Mentoring Resource Center. The board, along with architectural firm Lake Flato (which has donated its services), has developed a plan for a resource center that would act as the hub for all of the youth development mentoring programming across South Texas. Big Brothers Big Sisters has long been recognized as a leader in effective youth development programming, and with expanded facilities it would be able to strengthen and expand its reach for the benefit of thousands more children. The agency

also strives to bring together all organizations that provide one-to-one mentoring in an effort to effectively collaborate and coordinate services to avoid duplication of services, share best practices and provide training to staff and mentors from across its South Texas service area to work more effectively with kids. The center is planned to be a 15,000- to 18,000-square-foot facility designed to meet the current and future programing needs of Big Brothers Big Sisters of South Texas and assist other mentoring organizations with their programming. BBBS raised $1.7 million in a quiet phase of its campaign in 2014 and hopes to more than double that amount in 2015. Components of the new facility would include 8,000 square feet of flexible open office area for 85 administrative staff workstations with the potential to grow to 150-plus workstations in the future; eight interview rooms for volunteer interviews (which would provide space adequate to meet the agency’s goal to dramatically increase services); training rooms and group conference rooms; an activity courtyard with space for mixers, receptions and outdoor match activities; and the “Mentoring Hall of Fame” entryway. Designed as a multipurpose space to maximize its value and use, the entrance will feature images and multimedia displays of honorees and their inspirational and life-changing mentoring stories. The creation of the BBBS Mentoring Hall of Fame also gives the agency a unique development opportunity to honor those individuals and companies who have made a profound impact through the agency. All program alumni - including Bigs, Littles, staff and board members - will have the opportunity to share their stories for inclusion in the hall of fame.

BIG BROTHERS BIG SISTERS NEEDS YOUR HELP TO MAKE IT A REALITY!

The financial support of South Texas residents and companies is critical to the success of this important campaign. To get additional information about how you can help make the Big Brothers Big Sisters South Texas Mentoring Resource Center a reality, please contact BBBS President and CEO Denise Barkhurst at dbarkhurst@ bigmentor.org or 210-382-8671. Learn more about the agency’s services by visiting them online at www. bigmentor.org.

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

 SC ENE 

ON FEB. 5, SHALE Magazine hosted the January/February cover party honoring Texas Railroad Commissioner Christi Craddick and San Antonio real estate brokerage owner, D’Ann Harper of Coldwell Banker D’Ann Harper, REALTORS. In addition, SHALE thanked and recognized each of the ladies who contributed to the special feature in issue that celebrating women in business and in energy. Hosted at The Palm restaurant in Houston, Texas, guests mixed and mingled over cocktails and tasty appetizers.

PHOTOS BY: MALCOLM PEREZ

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

 SC ENE  SHALE MAGAZINE IS BUZZING with excitement over “In the Oil Patch,” the brand new radio talk show hosted by Roy Holley and

CROSSING OVER TO A NEW MEDIUM HAS BEEN AN EXCITING AND FULFILLING UNDERTAKING 70

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

PHOTOS COURTESY OF SHALE MAGAZINE

Kym Bolado in which guests are given the opportunity to share news and information pertaining to the oil and gas industry. Crossing over to a new medium has been an exciting and fulfilling undertaking thus far, and we look forward to continue exploring new ways to provide the community with energy information and news!

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

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

Authorized FMC Flow Line Sales Representative www.vpsales1.com

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

 SC ENE  SHALE WAS HONORED to be invited by the San Antonio Chamber of Commerce and the

SHALE WAS HAPPY to attend the West Texas Energy Consortium, hosted by Pioneer Natural Resources, which took place on Jan. 29 in Midland, Texas. This membersonly event is a collaborative effort to foster and sustain economic growth, meet the needs of the energy industry, support community development and preserve a high quality of life for all citizens.

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

TOP PHOTO COURTESY OF THE WEST TEXAS CONSORTIUM, BOTTOM PHOTOS COURTESY OF SHALE MAGAZINE

PHOTOS COURTESY OF SHALE MAGAZINE

San Antonio Hispanic Chamber of Commerce to participate in the annual SA to DC trip. Kym Bolado, CEO/Publisher of SHALE Magazine, was selected to be part of the energy and environment committee, which advocates for the diversification of energy resources within the U.S. and promotes the concept of domestic energy independence through consideration of a comprehensive energy policy and associated tax policies.

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

Laser Cut Perf Guns

Laser Cut

Rig Handrails

Skids & Enclosures

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

830-282-0858 OceanFab.com

In-House Delivery to Eagle Ford - Permian - GOM

Locations:

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

WWW.EAGLEFORD.ORG

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

News where you get to participate. MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

SHALE COVER PARTY LE OIL & GAS BUSINESS MAGAZINE

E AT A H

T FOR IGH COS

A H S //

S PRIC LOW GA

H/A MARC

ES COM

TEXAS E

CONOM

Y //

AZINE

ESS MAG

S BUSIN

OIL & GA

015 PRIL 2

ITTEES IVE COMM T A L IS G E L THEY

AND HOWOIL AND GAS AFFECT

SKILLS MENT DEVELOP FUND TO GRANTEYDERS O L P EM

OILFIELTDY SAFE IN THE N PERMIAIN BAS

NEW CT PROJE NS IN PLA FOR BIGERS BROTH BIG SISTERS

ROAD S

AFETY W

C // A NEW H STEER

HALLEN

GE FOR

featuring

WOOD GROUP PSN

T HEART SAFETY A

P SPTSN U O R G D O WO TS SAFETY FIR

CELEBRATING MARCH/APRIL ISSUE

PEMEX

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

OIL & GAS BUSINESS MAGAZINE

WWW .SH ALEMAG. COM

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

SERVICES:

• Radiator Flushes • Hydraulic Oil Filtration • Oil Sampling • BOP Repair • Valve Repair • Manifold Repair • Choke Repair • Annular Repair • ChickSan Repair • Wing Assembly Repair • HPU Repair • Accumulator Inspection and Repair • Supply Breather Filters for HPU’s • Supply Filters for Hydraulic HPU’s, Pipe Wranglers • Supply Sample Valves for Engines • Valve Rental

Most accurate company of the Eagle Ford Shale and Permian Basin area

• Greasing Program (choke manifold, BOP Valves) • FloBack Manifold • General Supply and Rentals

Call Donny Baer (210) 501-7154 / donaldbaerjr@yahoo.com

K5 SERVICES, LLC www.K5servicestx.com

• 24hr On-Call Service Hands

CORPORATE OFFICE: P.O. Box 1358 711 San Antonio Hwy. Mason, Texas 76856 Office: 325-347-5262 Fax: 325-347-5305 k5services@hotmail.com SOUTH TEXAS DIVISION: 127510 Hwy. 97 East Cotulla, Texas 78014 830-431-3747 PERMIAN BASIN: 404 North Rogers Blvd. Pyote, Texas 79777 830-370-6045

• Construction & Maintenance • Midstream, Upstream Production, Transmission & Distribution Lines • Commercial Pesticide/Herbicide Applicator License (Chemical Weed Killing) • Line Locating & Potholing • ROW (Right of Way) Construction & Maintenance • Roustabout Crews • Sandblasting & Paint • Dirt Work • Civil & Concrete Work • Facility Construction & Maintenance • Pipeline Construction & Consulting • Pipeline Integrity Construction & Maintenance MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

Keeping Ahead of the Changing Times! Get your Questions Answered!

Join Us May 27-29 in San Antonio! THREE REASONS YOU SHOULD ATTEND: Turning Challenges into Opportunities...Find out how this is being done Connecting small & medium businesses to the Mexican Energy Reform...Learn how that can Happen Get Real Time Information Directly from the Oil & Gas Industry

Early Bird $250 | $275 after March 18, 2015 Exhibit Spaces: Non-ProďŹ t $300 | Business $625

To register go to: www.eaglefordconsortium.org For more information contact: Cindy Taylor - cindy@ctg-tx.com International Speakers w Real Time Information w Door Prizes 76

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

PRE-REGISTER TO DEFEND YOUR BUSINESS AGAINST FALLING OIL PRICES: Pre-register at ArkLaTexOilfieldExpo.com

ATTEND THE EXPO FOR FREE 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.

connect. share ideas. discuss.

OIL & GAS BUSINESS MAGAZINE

http://www.linkedin.com/company/shale-oil-&-gas-business-magazine MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

WANT SHALE OIL & GAS BUSINESS MAGAZINE DELIVERED TO YOU EACH MONTH? Visit SHALEMAG.COM to order your subscription today! // MARATHON OIL’S JEFF SCHWARZ: WILDCATTER OF THE YEAR //

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

US REP. HENRY CUELLAR: NORTH AMERICAN ENERGY INDEPENDENCE

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

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

SETTING THE STANDARD

FIRST ANNUAL STEER EAGLE FORD EXCELLENCE AWARDS

OIL & GAS BUSINESS MAGAZINE

PEMEX:

BIG CHANGES IN

MEXICO

OIL & GAS BUSINESS MAGAZINE

LEADER OF THE PACK

TEXAS RAILROAD COMMISSIONER

BRAD LOMAX

Eagle Ford Excellence Awards Coming Soon

// PAGE 60

CHENIERE ENERGY & OUR ENERGY MOMENT HACIENDA CLEMENTE JACQUES

// PAGE 26

ARTPACE

IN THE EAGLE FORD SHALE

// PAGE 62

// PAGE 56

CHIEF PROCUREMENT OFFICER

DAVID PORTER

PEMEX HAS A BRIGHT FUTURE // PAGE 18

THE PALM: THE BEST STEAK IN TOWN…88 YEARS AND COUNTING ON THE MOVE MAYOR NELDA MARTINEZ AND THE CITY OF CORPUS CHRISTI 1 SHALE OIL & GAS BUSINESS MAGAZINE

SHAPING TOMORROW

DIGITAL ENGINEERS

SHALE OIL & GAS BUSINESS MAGAZINE

SEN. CARLOS

URESTI:

COMMISSIONER

DAVID PORTER

Opportunities Abound in South Texas

A BRIGHT FUTURE WITH NATURAL GAS // PAGE 26

// PAGE 34

REGINA MELLINGER

WILDCATTER

OF PRIMARY SERVICES Staffing Solutions with Energy

LEADING THE WAY

GLENN McCARTHY AN AMERICAN ORIGINAL

// PAGE 14

HALLIBURTON’S

// PAGE 62

PAUL SHEPPARD

ARTURO HENRÍQUEZ

OIL & GAS BUSINESS MAGAZINE

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

GIVING BACK

ConocoPhillips

TEXAS OLIVES

WHERE CONTEMPORARY ART HAPPENS

DESTINATION FOR THE SOUL

OIL & GAS BUSINESS MAGAZINE

MARCH.APRIL 2014

WTI, BRENT AND THE TEXAS PETRO INDEX

STEER

LEGACY OF THE RICHEST WILDCATTER

// PAGE 16

SEAFOOD, SUSHI AND SURFING

OIL & GAS BUSINESS MAGAZINE

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

H.L. HUNT

THE FUTURE OF PEMEX AND MEXICO1

A WORLD-CLASS LEADER

BHP BILLITON’S

ROD SKAUFEL // PAGE 18

// SHALE CELEBRATES ONE-YEAR ANNIVERSARY //

SHALE OIL & GAS BUSINESS MAGAZINE

shalemag.com LIST YOUR HOME OR BUY A HOME THROUGH ME AND RECEIVE A

5 DAY/4 NIGHT CRUISE VACATION FOR TWO! To Mexico, the Bahamas, or the Western Caribbean

1.866.643.1010

ClearSpan.com/ADSHALE

up to a $1,798 value!

Made in the USA.

361.739.4701 portaransasbeachhomes.com

Silver Sands Realty & Vacation Rentals Professional Service

Cynthia D. Frank

CEO, Realtor - GRI, ABR, SFR

SHALE OIL & GAS BUSINESS MAGAZINE 78txbeachhomes@hotmail.com

// MAR/APR 2015

Clearspan creates unparalleled

workspace for oil and gas professionals

Easy to disassemble and relocate. Low in cost per square foot. Store and access equipment and supplies. Clearance to operate machinery. Abundant natural light reduces energy costs.

7-YEAR FINANCING

ZERO DOWN, NO INTEREST & PAYMENTS - FOR UP TO ONE FULL YEAR -

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015

MAR/APR 2015 // SHALE OIL & GAS BUSINESS MAGAZINE

SHALE OIL & GAS BUSINESS MAGAZINE // MAR/APR 2015