SHALE Magazine Nov/Dec 2017 by SHALE Oil & Gas Business Magazine

SHALE NOVEMBER/DECEMBER 2017

THE TRUMP ENERGY PLAN: A SEA CHANGE IN U.S. ENERGY POLICY MADE IN AMERICA: HOW SHALE IS BRINGING BACK STEEL AND JOBS TO APPALACHIA THE IMMEASURABLE VALUE OF INTERNATIONAL ETIQUETTE AND PROTOCOL

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HARVEY CAN’T BREAK THE SPIRIT OF TEXANS TAKING CARE OF ORPHANS (ORPHAN WELLS THAT IS)

SBA ADMINISTRATOR TOURS HOUSTON’S TEJAS TUBULAR FOLLOWING HURRICANE HARVEY FIGHTING AGEISM IN THE WORKPLACE NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

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CONTENTS FEATURE

Made in America: How Shale Is Bringing Back Steel and Jobs to Appalachia

COVER STORY

PHAKIMATA/BIGSTOCK.COM

As polarizing as he is, the 45th President of the United States has made big moves where energy is related. Only time will tell how President Trump will be remembered in history books. Until then, let’s look at some important topics that affect the U.S. and our international business opportunities.

INDUSTRY 30 Hurricane Harvey Taught Us Much About Our Industry 32 Blowing the Competition Out of the Water and Making It to the Next Boom

34 The Strength of International Connections 36 Latest Developments in Argentina’s Shale Oil and Gas 38 The Irrefutable Importance of Oil and Gas

POLICY 42 The State EOC: Where Texas’ Response to Major Disasters Begins

BUSINESS 46 Behind the Register: A Look at Point-of-Sale Systems 48 Global Business Partnerships: The Immeasurable Value of International Etiquette and Protocol

18 LIFESTYLE

54 Prepping for the Holidays With Pets 56 Haunted Magnolia Hotel Is Rich in History and Fright

58 Holiday Events at the Washington on the Brazos State Historic Site

62 New Orleans’ First Blended Brand Hotel

64 Fighting Ageism in the Workplace: The Race to Keep a Youthful Appearance

SOCIAL 70 SBA Administrator Tours Houston’s Tejas Tubular Following Hurricane Harvey

70 Houston Wildcatters Award

Presented to Oasis Petroleum

INDUSTRY

Harvey Can’t Break the Spirit of Texans

POLICY

Taking Care of Orphans (Orphan Wells, That Is)

BUSINESS

4 Steps to Lower Your Commercial Business Insurance Premium

LIFESTYLE

Hope and Recovery After the Horror of Harvey

SOCIAL

Houston Energy Day 2017

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

ADVISORY BOARD VOLUME 4 ISSUE 6 • NOVEMBER/DECEMBER 2017

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

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

Thomas Tunstall, Ph.D. Thomas Tunstall, Ph.D., is the Research Director for the Institute for Economic Development at The University of Texas at San Antonio. Previously, he was a Management Consultant for SME and the Component 1 Team Leader for the Azerbaijan Competitiveness and Trade project. Tunstall also served as an Advisor Relations Executive at ACS and was the founding Cochair for the Texas chapter of the International Association of Outsourcing Professionals. He has published a business book titled Outsourcing and Management (Palgrave, 2007) and was the technical editor for Outsourcing for Dummies (Wiley, 2008). Tunstall has consulted in both the public and private sectors. In 2005, he completed a long-term assignment in Afghanistan, where he was Deputy Chief of Party for a central bank modernization project. In 2006, he taught Ph.D. candidates in a business and government seminar at The University of Texas at Dallas.

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

KYM BOLADO

CEO / PUBLISHER CHIEF FINANCIAL OFFICER Deana Acosta EDITOR IN CHIEF Lauren Guerra OIL AND GAS ASSOCIATE EDITOR David Blackmon ART DIRECTOR Elisa G Creative COPY EDITOR Katie Buniak VICE PRESIDENT OF SALES & MARKETING Joyce Venema ACCOUNT EXECUTIVES Michelle Mata, Matt Reed, Cheyenne Williams ONLINE CONTENT MANAGER Fernando Guerra SOCIAL MEDIA DIRECTOR Courtney Boedeker CORRESPONDENT WESTERN REGION Raymond Bolado CONTRIBUTING WRITERS Dr. Bob Basu, David Blackmon, Tristan Child, Omar Garcia, Bill Keffer, Laura Koch, Kelly Warren Moore, David Porter, Brittany Ramos, J.B. Ruble, Jackie Stewart, John Tintera, Thomas Tunstall, Ph.D., Danielle Turcola, Spencer Williams

STAFF PHOTOGRAPHER Malcolm Perez EDITORIAL INTERN LeAnna Castro COVER COMPOSITE: RFORREST/BIGSTOCK.COM, KATHCLICK/BIGSTOCK.COM

www.shalemag.com For advertising information, please call 210.240.7188 or email kym@shalemag.com. For editorial comments and suggestions, please email lauren@shalemag.com. SHALE MAGAZINE OFFICE: 5150 Broadway St., Suite 493, San Antonio, Texas 78209 For general inquiries, call 210.240.7188. Copyright © 2017 Shale Magazine. All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

PUBLISHER’S NOTE

ANOTHER YEAR IS COMING TO AN END. IT SEEMS THEY GO BY SO QUICKLY! As we approach the end of 2017, I recognize this has been a very eventful year. Whether you’re a Trump supporter or not, one of the most memorable events of 2017 will forever be the election of Donald J. Trump for President. He’s polarizing and, frankly, against the grain of every other president in the history of the United States. Regardless, he is the head of our executive branch and Commander in Chief of this great nation. When the SHALE team started to plan out this issue, we knew we wanted to bring attention to international matters. It would be naive to think the President is not the greatest factor when considering our position on an international stage and our move toward energy dominance.

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Not to mention that recently there have been some major developments for our domestic energy industry, including changes in regulation, exporting and more — but we’ll save that for the cover story on page 18. Had another candidate won the presidential election, I’m fairly confident the energy industry would not be moving in the positive direction it is now. If you’re a listener of SHALE’s In the Oil Patch radio show, you might be familiar with some of the work President Trump has done since entering the White House. We cover this topic frequently on the show; and it is one of my favorites to dive into, as there is so much to cover and so much to look forward to as we continue into this presidency. Whether you love him or hate him, this is not the critical topic of discussion. What we need to be discussing is how, going forward, we will continue the path toward energy dominance and make this nation safe from foreign and domestic threats. In closing, I would like to thank you for another great year for SHALE. Our team is truly happy to share business and energy news with you, our readers. We are seeing growth in many ways and expect that 2018 will bring many new opportunities for us to share our knowledge and passion with the world.

KYM BOLADO

CEO/Publisher of SHALE Magazine kym@shalemag.com

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 FEATURE

Made in America: How Shale Is Bringing Back Steel and Jobs to Appalachia By: Jackie Stewart

or decades, Ohio, Pennsylvania and West Virginia have watched an overwhelming number of manufacturing jobs — particularly steel manufacturing jobs — leave the United States, which led to the region being nicknamed the Rust Belt. During the same time period, the middle class started to shrink and union households that boasted generations of laborers increasingly started filing for unemployment. The outlook was bleak for these communities for many years — but then came the Marcellus and Utica Shale development, which has proven to be an answer to the prayers of communities up and down the Ohio River. These communities are now reporting that union halls are empty due to a surge of oil- and natural gas-related work. Shale has not only been a game-changer — it’s been a life-changer for thousands of families in some of the hardest hit regions of the country. Manufacturing is starting to come back, and we are even making and shipping domestically produced steel again along the Ohio River. It’s hard to imagine now, but the Rust Belt may soon shed its longtime persona and emerge as a new hub where domestically produced products proudly display “Made in America.” Union Halls Reported Empty in Ohio For the past few years, the building and construction trade unions have

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

been aggressively fighting against fringe environmental activists and the “keep it in the ground” agenda. From a political perspective, this trend played out on the national stage in November: For the first time in years, a majority of Ohio union households voted Republican in a presidential election. President Trump won the union vote by 9 percent over Hillary Clinton in the Buckeye State. Why? Because the building and construction trades are going back to work thanks to shale development, which Trump unabashedly supports. Today, there are 3,000 Ohio laborers working on various stages of oil and gas development. To further put that into perspective, that’s 4.2 million work hours over a 16-month period. In June, Rocco DiGennaro, President of the Western Reserve Building Trades said that “almost every [union] hall is empty” as a result of the millions of work hours taking place, largely driven by pipeline and natural gas power plant construction projects. To date, Ohio has more than $10 billion in natural gas power plants in various stages of development and the Appalachian Basin has more than $23 billion in planned investment for more than 3,200 miles of pipeline in Ohio, Pennsylvania and West Virginia. When built, these pipelines will move more than 17 billion cubic feet of Marcellus and Utica natural gas and 345,000 barrels of natural gas liquids per day. Collectively, these projects are slated to create more than 100,000 jobs for local residents,

and the vast majority of the pipelines under construction are utilizing union labor. Manufacturing Hits 13-Year High In 2012, The Wall Street Journal reported that U.S. steel companies could experience a revitalization as a direct result of local, affordable and bountiful natural gas. That forecasting is starting to become a reality in the Appalachian Basin, where the Marcellus and Utica Shale region is boasting the lowest natural gas prices in the developed world, giving energy-intensive industries — like steel manufacturing — a global cost advantage. Over the past 30 years, Ohio has seen many of its steel jobs moving overseas. Plants have closed in Steubenville, Youngstown, Lorain and Cleveland, just to name a few. Mingo Junction, a town that was built around its steel mill, was one such place where residents saw their mill shut down completely in 2009. After being closed for eight The outlook was bleak years, that Ohio steel mill is now open for business and for these communities tons of domestically for many years — but then shipping produced steel on the Ohio came the Marcellus and River — thanks to low natural gas prices made possible Utica Shale development, from shale development which has proven to be ― with a goal of ultimately an answer to the prayers producing 10,000 tons per of communities up and day. The town’s Mayor, Ed Fithen, told a local TV down the Ohio River channel, “After being down for [eight] years — I worked there for 35 — I said this place will never start up. It’s too down.” This sentiment is one shared by communities along the Ohio River that represent a large percentage of the 48,000 U.S. steel manufacturing jobs lost since 2000. These communities have shared a feeling of hopelessness that they would never start up again. However, thanks to Marcellus and Utica Shale development, that’s all starting to change. In 2017, we are in fact making and shipping domestically produced steel along the Ohio

River again. As Mingo Junction Councilman George Irwin Jr. told WTOV9, “It’s kind of like an answer to a whole bunch of prayers.” Notably, during his campaign last fall, President Trump forecasted the very thing that has become a reality during his speech at the Shale Insight conference, saying, “The development of the Marcellus and Utica Shales will fundamentally change the landscape of this region. More jobs, higher wages, a larger tax base, and dollars flowing into our country for a change, instead of out of our country. ... Under a Trump administration, we are going to bring back steel jobs and we are going to rebuild this nation.” In fact, academics and media outlets have been touting how shale development could help bring steel jobs back to the region for years. In 2015, the Harvard Business School stated that The Boston Consulting Group’s report Made in America, Again highlighted “low-cost energy as the most significant emerging advantage for U.S. manufacturing competitiveness.” And now — with shale development thriving in Ohio and throughout the U.S. — CNBC reported in October that U.S. manufacturing activity surged to a more than 13-year high in September! The Appalachian Basin could see even more incredible economic transformations with ethane crackers sprouting up along the Ohio River. Shale and affordable natural gas have given the U.S. an incredible competitive edge, which has trickle-down impacts on manufacturing, including steel, petrochemicals, transportation, and lighting and appliances, among other applications. This opportunity provides hope that Americans will once again predominantly see labels that say “Made in America” on their clothes and toys. Could the region be on the cusp of another industrial revolution? Time will tell, but, for now, we know that for the people of the Ohio Valley, this news is certainly “an answer to a whole bunch of prayers.”

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cover story

A SEA CHANGE IN U.S. ENERGY POLICY BY: DAVID BLACKMON

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

PHOTO COURTESY OF PIXABAY

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

It has been a year now since we all awoke on Nov. 9, 2016, to the reality that, against all odds and all predictions by the polls and political “experts,” Donald J. Trump had somehow defeated Hillary Clinton in the race to become the 45th President of the United States. It was a stunning outcome to a seemingly endless campaign, one that had turned into the most vicious and personal presidential contest in modern times.

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

worked so hard to make energy in general, and the oil and gas industry specifically, such a major part of his or her campaign’s messaging. When seeking support from the oil and gas industry and many others, though, Trump turned off many people with his rhetoric and antics on other matters. His unpredictability made millions of Americans simply uncomfortable with the idea of having this person occupying the highest office in the land. This factor remains true a full year after his election. Another problem that impacted Trump’s ability to obtain support from industry leaders is the simple fact that Americans have

advantage of hindsight, this assumption seems very naive given that Trump showed that he is completely different from ordinary politicians in pretty much every other way possible — for better or worse — as he campaigned across the country. So it was that, as Election Day dawned on Nov. 8, 2016, most everyone associated with the oil and gas industry — indeed, most Americans in general — went to the polls believing that, no matter which candidate they intended to vote for, they would wake up the following day knowing that Hillary Clinton had been elected to the presidency. For those who deal with efforts to influence

 THE TRUMP ERA HAD DAWNED, AND A SEA CHANGE IN FEDERAL ENERGY AND ENVIRONMENTAL POLICY WAS ABOUT TO BEGIN  become conditioned to not expect political candidates to keep the promises they make out on the campaign trail. There is a very good reason for this: Very few politicians really mean most of what they say during their campaigns — they rarely have any intention of following through on the great majority of things they promise once they have been safely elected to office. Most Americans saw no reason to think that Trump would be any different. With the

or comply with regulatory or legislative policy matters, this was not exactly an appealing thought. Clinton had campaigned on the promise that, if elected, her first term in office would effectively be a third term for Barack Obama, whose energy and environmental policies she promised to continue and expand upon. At more than one event during her campaign, she promised audiences that, in her administration, she would work to make sure that it would become almost

MIKELEDRAY/BIGSTOCK.COM

The oil and gas industry had not supported Trump’s candidacy during the Republican Party’s primary and nominating process, when most contributions from industry executives and company employee PACs flowed to more conventional politicians like Wisconsin Gov. Scott Walker, former Florida Gov. Jeb Bush, and Sens. Ted Cruz of Texas and Marco Rubio of Florida. The same held true in the general election, during which the vast majority of contributions from industry executives flowed to Clinton. Despite that slight, Trump made the promotion of policies that support a healthy oil and gas industry a centerpiece of his campaign strategy from beginning to end. During his speeches, the primary and general election debates, and the hundreds of rallies he conducted before crowds of thousands of supporters, candidate Trump talked about issues all too familiar to those in and around the nation’s oil patches: the Keystone XL and Dakota Access pipelines, EPA’s Waters of the United States regulatory scheme, the Clean Power Plan and the Bureau of Land Management’s (BLM) hydraulic fracturing rule. At a September 2016 rally in Pittsburgh, Trump made a speech that was very typical to what he said throughout his campaign: “I am going to lift the restrictions on American energy and allow this wealth to pour into our communities — including right here in Pennsylvania. The shale energy revolution will unleash massive wealth for American workers and families.” It was an extraordinary thing. No candidate in modern times from any political party had

impossible to conduct hydraulic fracturing operations. During a March 2016 debate with Bernie Sanders, she stated, “By the time we get through all of my conditions, I do not think there will be many places in America where fracking will continue to take place.” The Obama administration’s EPA and Department of the Interior (DOI) had spent eight years producing layer upon layer of new regulations directed at the industry, and its

agencies had worked intently to find ways to extend their reach further and further over time. This process had sped up to a fever pitch during the final two Obama years, as regulators worked overtime to produce as much new regulation as possible just in case a Republican were to win the 2016 election. Thus, those in the industry who worked in policy-related areas of the business went into Election Day with a very long laundry list

of proposed and pending new regulations on their plates. Many companies were uncertain how their people would manage to absorb the requirements of this regulatory onslaught and find ways to comply with it all. Few — even those executives who had supported Clinton’s candidacy — truly looked forward to the prospect of a continuation down this regulatory path for another four or eight years. But many had decided to contribute

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

to the Clinton campaign more as a defensive measure than anything else, in the hopes that their campaign support would at least help to ensure that they and their companies might at least have opportunities to meet with the new political appointees at the various agencies that would assuredly be looking to further regulate them in a Clinton administration. Such was the mindset, the overall prevailing mood of those in the oil and gas industry, as the polls closed on the evening of Nov. 8. In just a handful of hours, that prevailing mood would undergo a radical shift, as the late-night results coming in from traditionally “blue” states like Michigan, Pennsylvania and, most surprising of all, Wisconsin made it clear that there would be no third term for the Obama administration. The Trump era had dawned, and a sea change in federal energy and environmental policy was about to begin. HITTING THE GROUND RUNNING Throughout November and December and into January, President-elect Trump continued to frequently talk about energy issues and his intentions to follow through on the promises he had made once he took the oath of office and began managing his administration. Many in the industry remained skeptical, but that mood began to shift as Congress convened a week prior to the inauguration and immediately took up a series of joint resolutions that would repeal some of the massive regulations that were put into place during the final months of the Obama administration under the rarely used Congressional Review Act (CRA). The CRA is a relatively new law, enacted in 1996 by a Republican-dominated Congress and signed into law by President Bill Clinton, a Democrat. The purpose of the law was to allow a newly elected Congress to mitigate the impacts of exactly the sort of rush-to-regulate activity that took place during the final months of the Obama era. However, during its 20-year

life prior to 2017, the CRA had only been used to successfully reverse a regulation of a prior administration a single time, when the 2001 Congress used it to reverse an obscure, but no doubt important at the time, regulatory action of the outgoing Clinton administration. Even though the process was difficult and seemed unlikely to yield much fruit, GOP leadership in the 2017 Congress were determined to give it the old college try. Where the oil and gas industry was concerned, the House of Representatives ultimately passed resolutions that would have repealed several Obama-era regulations that the industry had opposed, including: • a regulation finalized by the Office of Natural Resources Revenue (ONRR) that would have dramatically increased royalties owed by the industry on oil and gas produced from federal lands; • a BLM regulation governing venting and flaring of natural gas on federal lands; and • an EPA regulation governing methane emissions from upstream oil and gas facilities. While none of these resolutions would ultimately pass the Senate — which notoriously moves much more slowly than the House, and where the Republican majority is much smaller — the fact that Congress was even taking up this kind of legislation related to oil and gas injected a dose of much-needed optimism into an industry that had grown all too used to receiving nothing but bad news from the nation’s capital. It deserves to be remembered that the resolution related to the EPA methane regulation failed by just two votes in the Senate. The other two resolutions were never taken up by the Senate as they were delayed so long that the administration decided to deal with them in other ways.

 ONE OF THE THEMES TRUMP FOCUSED ON DURING THE CAMPAIGN, WHICH HE CONTINUED TO COME BACK TO AFTER ASSUMING OFFICE, WAS HIS INTENTION TO PURSUE POLICIES THAT WOULD PROMOTE U.S. ENERGY DOMINANCE  22

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

 FOLLOWING HIS INAUGURATION IN JANUARY, THE NEW PRESIDENT WASTED LITTLE TIME MAKING A SPLASH IN ENERGY POLICY  Before the CRA process ran its course, Congress had passed — and President Trump had signed — 14 joint resolutions that reversed Obama-era regulatory actions, several of which had an impact on the oil and gas industry. Thus, early congressional efforts in the new Trump era produced some results and began the initial trickle in what was about to become a massive sea change in both the tone and direction of federal regulation of the oil and gas industry. The Trump administration dealt with the ONRR royalty regulation administratively; and after a court challenge, this bad regulation finally died a quiet death in September. The DOI is still engaged in a process that would dramatically rewrite the BLM venting and flaring rule, and is being challenged every step of the way by anti-development groups. Parts of the EPA methane regulation have gone into effect, but the EPA continues to find ways to mitigate the rule’s negative impacts. Thus, President Trump, even in the face of adverse outcomes in Congress and legal challenges from multiple plaintiffs, has found creative ways to keep the promises he made during his campaign. EXECUTIVE ACTION Following his inauguration in January, the new President wasted little time making a splash in energy policy, as just four days into his term in office he issued an executive order related to the embattled Dakota Access Pipeline (DAPL) project in North Dakota and the northern leg of the Keystone XL Pipeline that had been held up for years by President Obama. The President’s order on Keystone XL invited the operator, TransCanada, to reapply

for its cross-border permit and directed the U.S. Department of State to “take all actions necessary and appropriate to facilitate its expeditious review.” The order further gave the Department of State 60 days from receipt of TransCanada’s new application to issue a final decision. After suffering through six years of delays, it no doubt seemed like a breath of fresh air to TransCanada’s executives. Indeed, the company confirmed later that same day that it had already begun preparing its new permit application in advance of the President’s order. That application was submitted several days later, and the Department of State approved it in late March. While some conflict groups are continuing to challenge the pipeline, there is no doubt that the 2016 election completely changed the equation related to this

expedited manner, to the extent permitted by law and as warranted.” Within a few weeks, the Army responded affirmatively, withdrawing its requirement for the conduct of a full Environmental Impact Study and issuing the final easement necessary to move forward with completion of the final segment of the line. That all took place by mid-February, and the completion of the final segment of the pipeline — after being held up for half a year by the Obama administration in support of protest action — took less than a month. Line-fill oil began flowing through DAPL a week after a U.S. Court of Appeals rejected an appeal by the Standing Rock Sioux and Cheyenne River Sioux tribes on March 18, and the pipeline was able to move into full operation mode a couple of months later. The Standing Rock Sioux Tribe has

the fact that the order contained almost as many benefits for the oil and gas industry as it did for the coal industry. Provisions beneficial to oil and gas included: • the rescission of the Obama administration’s “social cost of carbon” construct, which focused on carbon’s costs but not its gigantic benefits to U.S. society; • the elimination of the Council on Environmental Quality’s guidance that all federal agencies consider climate change in every new regulatory or permitting action; • the instruction to all relevant agencies to ‟review all existing regulations, orders, guidance documents, policies, and any other similar agency actions (collectively,

 ONE MAIN POINT OF THE ENERGY DOMINANCE DISCUSSION IS TO CHANGE THAT IMPORT MIX SO THAT THE U.S. IS MAINLY IMPORTING FROM FRIENDLY GOVERNMENTS IN MORE STABLE PARTS OF THE WORLD, RATHER THAN FROM OFTEN HOSTILE GOVERNMENTS IN THE MIDDLE EAST AND NORTH AFRICA, BOTH OF WHICH ARE EXTREMELY UNSTABLE  controversial pipeline project. Given that DAPL was at a different point in the process than Keystone XL, the executive order related to it had to be drawn under different terms. In December 2016, President Obama ordered the U.S. Army Corps of Engineers to perform an Environmental Impact Statement related to the project, ostensibly designed to explore alternative routes that would placate the then ongoing protests conducted by the Standing Rock Sioux Tribe and a raft of outside protest groups latched on to the cause during the summer of 2016. In reality, this was basically President Obama’s means of avoiding having to make a final decision on the project, punting it to the Trump administration. The President’s order on DAPL was directed not to Energy Transfer Partners, the builder of the pipeline, but to the Army, ordering the Corps of Engineers to “take all actions necessary and appropriate” to conduct this review and approve the pipeline “in an

continued to fight DAPL in the federal courts, but its challenges have thus far been rejected. The pipeline has also been the target of attacks by eco-terrorists, several of whom have been arrested and charged by law enforcement officials. In the end, though, this pipeline will continue to operate, an outcome that likely would not have happened under a Clinton presidency. CLEAN POWER PLAN ORDER On March 27, President Trump issued an executive order instructing the EPA to begin the process of rescinding major parts of the Obama-era Clean Power Plan, which was a centerpiece of the Obama administration’s efforts to ensure the U.S. would be able to meet carbon emissions targets under the Paris Climate Accord (more on that later). Although the press portrayed this move as a way for Trump to keep his oft-stated campaign promise to save the coal industry, they missed

agency actions) that potentially burden the development or use of domestically produced energy resources, with particular attention to oil, natural gas, coal, and nuclear energy resources”; and • the instruction to the Secretary of the Interior to perform a review of regulations issued late in the Obama administration and make recommendations to “suspend, revise, or rescind the guidance, or publish for notice and comment proposed rules suspending, revising, or rescinding those rules,” an instruction that ultimately resulted in efforts by the DOI to rescind the BLM rules on venting and flaring and hydraulic fracturing. Thus, the March 27 order related to the Clean Power Plan represented a 180-degree reversal from the regulatory direction taken by the Obama administration, not just toward the coal industry, but the oil and gas industry as well. As a direct result of this order, the DOI rescinded the BLM hydraulic fracturing NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

rule; and, after various court challenges, the rule was finally taken off the books in late September. The BLM venting and flaring rule remains a source of conflict, as a federal appeals court ordered parts of it to go into effect on Oct. 4, despite objections filed by the BLM. But on Oct. 9, the BLM announced its intention to rescind the other provisions of the rule and begin the process of rewriting them. EPA Administrator Scott Pruitt acted on the President’s executive order in early October when he announced that his agency was rescinding the Clean Power Plan entirely and would begin the administrative process to replace it with new regulations. Many observers reacted to this action as if it would become the salvation of the nation’s coal industry, but, yet again, they were incorrect. The economic decisions to retire the older, less efficient fleet of coal-fired power plants in the U.S. were made by power providers years ago and are inevitable. Texas power provider Luminant clearly illustrated this market-based reality when, just three days before Pruitt made his announcement, it announced it would be closing its huge Monticello coal-fired plant in East Texas in early 2018. The Energy

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Information Administration (EIA) reports that power providers retired about 14 gigawatt hours of coal-fired capacity in 2015 alone, and the agency only expects the pace of such retirements to accelerate in the coming years. The vast majority will be replaced by combined-cycle natural gas plants, with the remaining needs being filled mainly by wind and solar.

of energy dominance, he’s referring to a plan that envisions policies encouraging four major elements:

THE TRUMP PLAN FOR AMERICAN ENERGY DOMINANCE

• relying more on imports of oil from Canada, Mexico and other Western Hemisphere nations, and less on imports from the Middle East and North Africa; and • leveraging oil, natural gas and coal to enhance U.S. bargaining positions in the country's foreign policy initiatives.

One of the themes Trump focused on during the campaign, which he continued to come back to after assuming office, was his intention to pursue policies that would promote U.S. energy dominance. Not energy independence or energy security, both themes adopted by past presidential campaigns and administrations, but energy dominance. Most Americans remained confused over what this term actually means, even after the President attempted to articulate it in a speech he made in late June during what the administration was calling “Energy Week.” In all fairness, it does take some explaining. When President Trump talks about his goal

• taking full advantage of America’s abundance of oil, natural gas and coal; • increasing exports of all three of these fossil fuels and their related products;

As if on cue, the President engaged in a bit of energy leveraging during his discussions with Indian Prime Minister Narendra Modi, folding India’s growing reliance on U.S. LNG imports into his request to lessen the rapidly growing nation’s import tariffs on U.S. goods. We have since seen the President and Secretary of State Rex Tillerson leverage energy into negotiations with China, Pakistan and Russia.

There have been other clear results in the intervening months as well. In early October, the EIA announced that — thanks in part to expedited permitting at the Department of Commerce — U.S. producers were exporting almost 2 million barrels of domestically produced crude oil per day, more than several OPEC nations manage to do. In September, Dominion announced that its Cove Point LNG export facility would be coming online during the fourth quarter of 2017, months earlier than had been expected. The administration’s efforts to streamline permitting and other approval processes have also helped to ensure that several more LNG export facilities will come online during 2018. We should expect to see the President rely more and more on this sort of leverage as U.S. exports of oil, LNG and coal continue to rapidly grow in the coming years. This, more than anything else, is what the President means when he talks about energy dominance. Critics point to the reality that the U.S. currently imports about half of its daily crude oil needs, but this misses the point. This is not a discussion about energy independence — the President clearly understands that the U.S. will always be a net importer of crude oil.

One main point of the energy dominance discussion is to change that import mix so that the U.S. is mainly importing from friendly governments in more stable parts of the world, rather than from often hostile governments in the Middle East and North Africa, both of which are extremely unstable. Achieving this goal will lessen the incentives for the U.S. to constantly intervene in conflicts and civil wars in those unstable regions; it will also provide the President and his Department of State with greater leverage in the complex and often seemingly intractable negotiations with the region’s governments. The President’s willingness and active plan to leverage U.S. energy abundance in his foreign policy and international negotiations stand in stark contrast to his predecessor. President Obama seemingly regarded this country’s fossil fuels as more of a nuisance than tools to be used to enhance the nation’s negotiating positions or improve national security. A RETURN TO NORMAL ORDER IN THE REGULATORY PROCESS One of the great frustrations among U.S. regulated industries during the Obama years

was the unwillingness of federal agencies to engage in “normal order” in the regulatory process. The federal regulatory process is governed by the Administrative Procedures Act (APA), which requires agencies to first post proposed regulations in the Federal Register, and then run them through a public consultation process before finalizing them. The point of this regimented process is to solicit input from the regulated industry and other interested parties, and seriously consider and factor such input into the development of the final regulations. After all, the real experts are mainly employed within the industry — it only makes sense for regulators to consult with these experts as they attempt to develop new regulations. When a new proposed regulation is large and/or highly complex in nature, this consultation process could go through several iterations and consume many months or even years before a final version is issued. The whole point of the process is to develop regulations that actually take into account the realities of the impacted businesses and avoid unintended consequences. In administrations previous to the Obama years, most agencies actively requested input

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from the regulated industry and other parties even before developing a proposed rule, in a sincere effort to get it right early on and avoid unnecessary controversy. I was heavily engaged in this realm on behalf of the oil and gas industry during the Clinton administration and can attest to the fact that the DOI and other federal departments during those years went out of their way to consult with regulated industries at length before even beginning to draft proposed rules. The same was true during the George W. Bush administration. But that changed immediately in January 2009. Suddenly, the regulatory process became strictly adversarial, at least toward regulated industries, as partisan ideologues began to take office at the various regulatory agencies. Within a few months of the Obama administration’s assumption of power, a growing flood of new proposed regulations began to appear in the Federal Register; industries were given little prior notice, or none at all. Timelines for the filing of public comments were consistently minimal, and requests for extensions of time routinely denied. Where in past administrations the regulated industries were routinely allowed to meet informally with regulators to

discuss the potential impacts of their planned regulations, the only opportunity for offering verbal input during the Obama years came in all-too-rare formal public hearings. This was an administration in a hurry to get a lot done, policies they knew would not be popular with the industries they planned to regulate. The prospect of four or maybe even eight more years of this rush to regulate with little regard for the consequences was not appealing to those who dealt with new regulations. Thus, when 2017 dawned, one of the great hopes among these folks was that, if nothing else, perhaps the Trump administration would at least mark a return to the prior, normal order. That is exactly what has happened. Of course, it helps that the Trump administration has been more focused on finding ways to do away with existing regulations than on writing new ones during its first year. But there is no question that the normal order has made a comeback. While this new reality creates great concerns within the anti-fossil fuel community, which had become very accustomed to having little objection, it is a great relief to the regulated industries, and probably to most of the regulators as well.

A SEA CHANGE IN EVERY WAY Donald Trump is a very flawed President. He is unpredictable and not especially eloquent. He often lacks a keen grasp of the policies he is promoting, probably tweets too much, sometimes has only a passing acquaintance with the truth and frequently goes out of his way to offend both adversaries and friends alike. Trump is a hard man to unreservedly admire and can be a very hard President for many to support. Trump’s oversize ego and mercurial personality has encouraged a sense of barely controlled chaos among observers of his administration, but this has not really been the case. For example, he has filled his cabinet with strong people. Where the oil and gas industry is concerned, his appointees Secretary of State Rex Tillerson, Secretary of the Interior Ryan Zinke, EPA Administrator Scott Pruitt and Secretary of Energy Rick Perry have been especially relevant. These cabinet officials have played major roles in fleshing out the President’s energy and environmental strategies. Zinke and Pruitt both hit the ground running in their respective departments and have worked on plans to dramatically reorganize and downsize them, to make

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them more suited to their scaled-back and re-prioritized missions in this administration. They are both highly organized, goaloriented individuals who are very suited to direct major change and instill the radical cultural shift for their agencies envisioned by the President. Of course, with major change comes major pushback from the old guard, and both Pruitt and Zinke have experienced this significantly. Pruitt became so frustrated with leaks of not just documents but of his spoken words that he felt the need to have a soundproof room installed in his office suite at the EPA headquarters. Pruitt and his staff have also received numerous threats on their lives, as NBC reported in October that law enforcement had formally investigated at least 70 threats this year, a 50 percent increase over 2016. Zinke told an interviewer in late September that he estimated that one-third of the staff at the Department of the Interior’s headquarters in Washington were disloyal to the administration, an estimate that could be an understatement. Even so, the pace of change at both departments has been impressive. With the President’s outsize personality and constant conflicts with a variety of individuals dominating every day’s news cycle, most of

the change in direction, policy and outcomes has gone unnoticed by the dominant news media. With a more traditional politician in the White House, announcements like the rescission of the Clean Power Plan or the BLM’s hydraulic fracturing rule would have been major news for days. With Trump dominating the headlines, these policy moves were just blips on the screen. Even President Trump’s decision to cancel U.S. participation in the Paris Climate Accord had a news cycle that lasted no more than 24 hours before it was relegated to the back pages of the nation’s newspapers. One can debate whether this dynamic has been strategic or pure happenstance, but it has not been effective. In less than a full year after assuming office, the Trump administration has reversed a major portion of the Obama energy and environmental policy legacy, and the mainstream news media that normally amplifies the messaging of anti-fossil fuel groups has barely had time to notice. The administration’s plans to redirect and reorganize the various federal regulatory agencies affecting energy have only begun to be implemented. Their objective to push as much regulatory authority as is reasonable to the states is still in

the planning stages. As these and other initiatives are set in motion in the coming months, the changes will become even more noticeable and institutionalized. Donald Trump is an unconventional President in pretty much every way. Quite unconventionally for the office, he’s worked hard to keep the promises he made on the campaign trail. That’s very rare in a President; and where energy and environmental policy is concerned, it is making a huge difference. You might even say it’s a sea change.

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

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NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

INDUSTRY

Harvey Can’t Break the Spirit of Texans By: Omar Garcia

In late August, Texans experienced mass devastation after Hurricane Harvey made its way through the Texas Gulf. Winds of 130 mph whipped through the communities of South Texas destroying businesses and homes. While Hurricane Harvey may have destroyed structures, it did not break the spirit of Texas. Days, weeks and now months after Hurricane Harvey’s damage, there are relief efforts happening throughout the region. I am proud to say that STEER members were immediately ready to assist the residents, businesses and first responders of South Texas who were impacted by the hurricane. Collectively, member companies have pledged nearly $11 million in funding for the United Way and American Red Cross to assist with recovery efforts for communities in South Texas. Many employers even agreed to match employee donations! In addition to monetary contributions, STEER members volunteered their time at various shelters, delivered much-needed supplies and nonperishable goods to those hosting evacuees and held barbecues for displaced families. To provide assistance to the first responders who were working around the clock, STEER members delivered tools, equipment, food and water. Member companies have continued to offer support through debris removal and trash pickup. Hurricane Harvey is considered one of the most damaging natural disasters in the United States, causing billions of dollars in damage. We recognize that the recovery will be a long process, but rest assured the relief efforts will continue. While it may take years to rebuild communities in South Texas, residents are not in this fight alone. STEER staff remain in constant communication with local officials on the status of communities, trying to find ways to assist those who need help the most. I am proud of all STEER members who have stepped up to provide assistance. I want to thank all of you for putting the needs of South Texas communities first. It is with your efforts and

kindness that these communities are beginning the process of rebuilding. I’d also like to thank the Ingleside Chamber of Commerce, United Corpus Christi Chamber of Commerce and Aransas Pass Chamber of Commerce. These organizations worked closely with STEER to quickly provide relief and assistance to residents and area businesses. Although Hurricane Harvey left a trail of shattered debris, it did not shatter the spirit of Texans. STEER’s member companies were quick to set disaster relief efforts in motion, but even quicker at working to bridge community hope. Our thoughts continue to be with the families affected by Hurricane Harvey. Together, we can make a difference in their lives. If you are interested in donating to those who still need help, please visit www.unitedwaysatx.org/ harveyrelief17.

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

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

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INDUSTRY

Hurricane Harvey Taught Us Much About Our Industry By: David Blackmon

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

It was a record-setting storm, the likes of which Texas had never seen before — and that all Texans hope to never see again

gasoline all the way up into the New England region. I personally had a hard time finding gasoline in and around my hometown of Mansfield, near Fort Worth, for more than a week after the storm, and some stations in North Texas were still selling only regular gas for weeks after that. Life is not much fun when you can’t find gasoline. We’ve learned this lesson time after time over the decades but always tend to forget since years go by in between the natural disasters or embargoes that cause fuel shortages. The second lesson we were reminded of is that gasoline prices have been comparatively low for several years, since the price of crude oil became depressed in 2014. The refinery closures caused by Harvey led to about a 20 percent increase in the price of regular gas in the weeks after the storm, but peaked at about a statewide average of $2.79. As expensive as that is, it is a far cry from the $4 Texans were paying for gasoline a few years ago, when oil prices peaked, and it’s far cheaper than the $1 per gallon we paid in the late 1970s (adjusted for inflation, that’s $3.75 in September 2017). Patrick DeHaan, a Senior Petroleum Analyst for GasBuddy, predicted that gas prices would continue to decline throughout the fall in an Oct. 9 interview with the Houston Chronicle. “The gasoline supply has continued to

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urricane Harvey blew into Texas as a Category 4 storm in late August, and then lingered like no previous storm had ever done before. By the time the beast finally moved on up the coast into Louisiana, it had dumped more than 50 inches of rain on parts of Houston, decimated Rockport (as Kelly Warren Moore eloquently details elsewhere in this issue) and many other parts of southeast Texas, put a million people out of their homes, knocked 22 percent of the nation’s refining capacity offline and shut in much of the Eagle Ford Shale region’s oil wells for a week or more. It was a record-setting storm, the likes of which Texas had never seen before — and that all Texans hope to never see again. But during the course of the storm, and the recovery from it, we all learned much about the oil and gas industry and its infrastructure, most of it positive. These are lessons we should hope to retain. The first and perhaps most important lesson we all learned — or maybe it’s more accurate to say “relearned” — is how important the oil and gas industry is to our daily lives. The shutting-in of 25 percent of the nation’s refining capacity due to Harvey resulted in gasoline shortages not just for those in southeast Texas who suffered through the lingering and ultimate passage of the storm, but also for the rest of Texas as well. In fact, gasoline shortages extended all the way up the east coast of the United States, as the refinery outages caused the temporary closing of the Colonial Pipeline, which carries

improve and, as temperatures begin to feel more fall-like, demand for fuel will continue to decline,” DeHaan said. “Nationally, prices still stand about 15 cents per gallon higher than their pre-Harvey level, but the gap will continue to slow as prices slowly trickle down.” Gasoline is one of the greatest bargains in American life, especially when considering the key role it plays in strengthening our economy and making all of our daily lives more convenient. We tend to complain about gasoline because it is a product most of us have to purchase — it is a necessity in our life, not a convenience. It’s only during times when we lose access to it that we realize how important it truly is. Hurricane Harvey also dumped prodigious amounts of rain in the heart of the Eagle Ford Shale region, causing flooding and other disruptions that resulted in the shutting-in of thousands of the area’s oil and natural gas wells. The energy-related news media made a very big deal out of this, publishing all sorts of speculative pieces containing fright scenarios about wells having to be shut in permanently, massive impacts on global oil supply and other silly theories that don’t even deserve mentioning here. By early October, reality had set in, and we learned that the ultimate impacts on overall production due to Harvey were actually very small: a net reduction in September production of less than 8,000 barrels of oil per day when compared with the month of August. While this represents the first monthly downturn in overall Eagle Ford production in more than a year, it is tiny when considering that producers had initially shut in wells representing more than 400,000 barrels per day. By the end of September, less than a month after flooding and winds from Harvey had forced them to shut down operations, all previously shut-in refineries had also returned to full or nearfull capacity. As the San Antonio Express-News’ Jennifer Hiller reported on Oct. 9: “The Energy Department said Thursday that one Gulf Coast refinery was in the process of restarting, and a few others are operating at a reduced rate. ‘Although refinery activity in [the] Gulf Coast remains down from pre-storm levels, activity has returned to levels typical for late September/early October,’ the report said. ‘Gulf Coast ports have largely returned to normal operations, though some restrictions remain.’” This is a phenomenal result when one considers the fury and immensity of Hurricane Harvey and the manner in which it lingered around southeast Texas for the better part of a week. We’ve always known the oil and gas industry is innovative. We’ve known it is competitive, that it pays good wages, that it creates lots of economic activity and high-paying jobs. We’ve known it pays lots of taxes that benefit our local and state governments. But Hurricane Harvey — and the temporary disruptions it created in the industry — reminds us just how important oil and gas are to our daily lives and provides us with a great lesson about the industry’s strength and resilience. With any luck, many years will pass before the next natural disaster or supply disruption forces us all to learn these lessons all over again.

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INDUSTRY

Blowing the Competition Out of the Water and Making It to the Next Boom By: Spencer Williams

he onshore oil and natural gas industry is a perfect example of how technology can help an industry evolve. Challenges continue to be answered with solutions provided by America’s vast pool of bright and talented engineers. The industry’s combined efforts have resulted in countless case studies of efficiency: faster drilling times, longer laterals, improved geosteering, better completions, lower total well costs and ultimately increased well performance and profit. In short, the industry has perfected how to do more with less. And that’s key in today’s new era of about $50 oil. According to a March 2016 Energy Information Administration report, “the profitability of oil and natural gas development depends on both the prices realized by producers and the cost and productivity of newly developed wells. Prices, costs, and new well productivity have all experienced significant changes over the past decade.” The report’s opening section identifies six key categories of cost attributed to U.S. onshore oil and gas drilling and completion.

When it comes to advances in the completions fluids and flow back category, produced water recycling projects have been in the spotlight. It is undeniable that recycling water for completions is the future, but the industry can’t overlook the fact that freshwater sourcing will remain a critical component of the water cycle in the oil field. Nearly all produced water recycling projects depend on a mix of fresh and recycled water to attain necessary key performance indicators for well completions. Additionally, economical recycling projects require a large number of wells concentrated within a small geographic area, alongside an operator that is in it for the long haul. As a result, produced water recycling doesn’t necessarily work for smaller and private equity-backed operators. Since freshwater sourcing will continue as a cost center in the completions process, companies everywhere should be focused on ways to lower sourcing and transportation costs. But are they? If companies are rightfully looking to save costs everywhere they can, one would think technology development and adoption in water sourcing wouldn’t be overlooked. Yet the industry is doing what it’s always done for water sourcing: rely on word of mouth, turn to field consultants and their resources, or tap the good ol’ boy network. The reality is that technology in the water sourcing space has advanced, but it has done so in the realm of information, not engineering. Water Sage has spent the last two years aggregating waterand land-related data that has direct correlations to costs at the drill site. Our users have discovered ways to leverage this data to pre-qualify water sources from their desks based on meaningful parameters like water well yields, depths, total dissolved solids measurements, and right-of-way and trucking costs. Efficient access to better information has had a meaningful impact on users’ drilling schedules and costs. If the vanguard of horizontal drilling, coupled with hydraulic fracturing, has taught us anything, it’s that tapping technology can blow the competition out of the water. Water sourcing costs aren’t going away, and they can’t be overlooked, especially in today’s market. In the overall scheme of an operator’s plan, managing water sourcing costs could make all the difference in who survives this downturn and makes it to the next boom.

About the author: Spencer Williams is a Business Development Manager for Water Sage, a web-based information platform that helps oil and gas users identify and evaluate fresh and brackish water sources and their relationship to land. Prior to joining Water Sage, Williams practiced water and oil and gas law, advising clients on the development of water resources for oil and gas operations.

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

INDUSTRY

The Strength of International Connections By: Brittany Ramos, Marketing & Communications Director, Women’s Energy Network National Board of Directors

nergy gives very little reverence to man-made borders between states and countries. Energy of all types is often produced far distances from where it will finally be used in our homes and businesses. A quick look at energy infrastructure shows just how interconnected energy has made the world. The Women’s Energy Network (WEN) was created to give women across the country a unique space to connect with others in the energy industry and promote their career advancement. Many of our members have relocated within the United States or overseas on various projects to learn new skill sets and progress in their company. Over the last two decades, WEN has grown in both the number of active members and the number of chapters across the country providing networking and relationship-building to women across the energy supply chain with various levels of professional experience. There continues to be interest to start new local chapters, and recently there has been a call to expand our vision to include other countries. In April we announced the formation of our 14th, and first international, chapter: WEN México. This chapter will be led by the dynamic Maria Luisa Licón, who will help connect women in the industry not just in Mexico, but also to our other chapters in the U.S. As she wrote in her welcome letter, “The WEN México chapter represents a milestone in this organization’s history demonstrating that no borders exist when it comes to women uniting for a specific purpose. This chapter is open to members from different backgrounds, from the public and private sectors, and from a broad spectrum of areas of the energy industry, including oil and gas, power, renewable energies [and] mining, among others.” We are truly excited to welcome the WEN México chapter and to be adding this group of women to our organization during such a pivotal time.

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The United States and Mexico share a very close relationship when it comes to energy — as does Canada, for that matter — which is helped by the close proximity of our countries with minimal barriers, such as oceans, between us. An emerging story in the energy industry is just how much this relationship may change. According to an August report by S&P Global Platts, more than 50 percent of Mexico’s energy imports come from the U.S. The report states that natural gas imports from the U.S. total nearly 60 percent of the total Mexican natural gas supply and estimates that number could reach 70 percent by 2022.

designed to introduce competition into the country’s natural gas market, businesses will continue to look for opportunities throughout the transition period and beyond. We should expect to see increasing focus on our neighbors to the south, which will naturally lead to more discussions of managing the talent in these organizations. Where are our future energy industry professionals coming from? Are they aware of the wide variety of careers they can choose from? How are we connecting professionals in the U.S. and Mexico to share insights and experiences? These are just some of the

“The WEN México chapter represents a milestone in this organization’s history demonstrating that no borders exist when it comes to women uniting for a specific purpose.” It is important to note that this increase in imports from the U.S. has not happened automatically or without any other restructuring. The S&P Global Platts report shows that the Mexican pipeline import capacity has increased 145 percent over the last seven years to meet these import demands. Much of the imported natural gas is used to generate electricity for the country, and these changes in capacity and generation have resulted in a domino effect creating projects and jobs across the country — all related to natural gas imports from the U.S. As Mexico continues to overhaul its energy strategy, which includes a five-year plan

questions we can help address in coordination with industry professionals in Mexico to make sure we are positioning our companies and ourselves to maximize opportunities as they arise, while also focusing on long-term development of talent. It sometimes seems like the only constant in the energy industry is change. All of us at WEN stand ready to address these changes as we move together toward the future.

For more information about WEN, visit www.womensenergynetwork.org.

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

INDUSTRY

Latest Developments in Argentina’s Shale Oil and Gas By: Thomas Tunstall, Ph.D.

Texas and other parts of the U.S. have become key oil and gas producers again. Further, the U.S. is now the second lowest-cost oil producer in the world after Saudi Arabia. This unexpected change of events has occurred because of the shale revolution and the advent of unconventional extraction techniques developed by U.S.-based exploration and production companies. Yet despite the fact that there are shale deposits located all over the world, the United States remains as the only country to produce oil and gas from shale in any significant quantity. All of that is about to change, though, as Argentina begins to develop its own shales reserves. The Institute for Economic Development at The University of Texas at San Antonio was commissioned by the Instituto Argentino de Petróleo y del Gas to undertake a study modeled on previous work performed on the Eagle Ford. The research will examine developments in the Vaca Muerta Shale field in the Neuquén Province in western Argentina. Toward that end, I recently traveled to Buenos Aires and Neuquén Province to meet with government officials as well as industry representatives and analysts in order

to learn more about the progress there and prospects for the future. Neuquén Province has a long history of oil and gas development from conventional fields that spans several decades. As those fields have matured, similar to the situation in the U.S., unconventional techniques now present the best opportunity for energy development. Currently, Argentina imports significant quantities of natural gas from Bolivia (via pipeline) and Chile. Importing energy is an expensive proposition compared to the potential for domestic production in Argentina. Several companies are now developing shale blocks in the Vaca Muerta, including the majority state-owned YPF, as well as Pan American Energy, Total, Shell and ExxonMobil. While shale oil and gas development remains in the relatively early stages, the logistics and supply chain issues needed to support unconventional development steadily progress. As supply chains become more robust, the cost to complete oil and gas wells will continue to decline and may eventually

reach parity with the U.S. This change in global dynamics will certainly have a profound effect in the coming years. Starting in the 1970s, OPEC gained an outsize role in global oil production because of its relatively low cost structures (particularly in Saudi Arabia) and abundant supplies. All of that changed not much more than five years ago. Because of shale development, the U.S. is now the largest combined oil and gas producer, though Saudi Arabia and Russia still produce more crude oil. Shale oil and gas development in the U.S. has stripped away much of the market power that OPEC has held over the past few decades. With shale production beginning to ramp up in Argentina, OPEC’s influence will likely wane further. Eventually, shale oil and gas development will spread to other countries as well. Energy is the lifeblood of industrialized society. While ongoing efforts to develop alternative energy resources continue, the reality is that oil and gas production throughout the world will remain critical in the years to come. Equally important, the U.S., Argentina and other countries will no longer be subject to the prospective whims of OPEC members. These unconventional techniques developed in the U.S. will enable other countries to tap their own shale oil and gas resources and enjoy a greater degree of energy independence than could have been imagined even just a few years ago.

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

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INDUSTRY

The Irrefutable Importance of Oil and Gas By: Bill Keffer

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Can anyone really look at the mindboggling progress that our nation (and the world) has made because of abundant, affordable, reliable and naturally concentrated energy in the form of fossil fuels and characterize that progress as a “bad result?”

and indolent. It marks the unfortunate point in the evolution of American success when too many people no longer have to work hard to enjoy the comforts and amenities that are now taken for granted by the average American — amenities that are even demanded as “rights” but are unknown and only dreamed about by much of the world’s population. It is for this very reason, which is obvious to those whose common sense hasn’t been dulled by propaganda, that oil and gas are so highly valued around the world. Those who have it know that; those who don’t have it wish they did. Therefore, oil and gas have been, and will continue to be, an important geopolitical tool. U.S. geopolitical

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resident Calvin Coolidge famously and accurately once said, “the chief business of the American people is business.” In his provocative book The Moral Case for Fossil Fuels, Alex Epstein asserts that the oil and gas industry makes every other industry flourish. Since Col. Edwin Drake’s 1859 discovery well in Titusville, Pennsylvania, the United States has enjoyed a long history of developmental, operational and technological achievements in the oil and gas industry. It is not hard, then, to understand how American business has led, and continues to lead, the world: American ingenuity combined with American capitalism, running on energy and built with products provided by the oil and gas industry, resulting in American dominance and exceptionalism. Unfortunately, for those who have never needed to understand, these basic truths effectively don’t exist, leaving open the possibility, if not the likelihood, that many will never know exactly why they enjoy the advanced comforts and amenities provided by oil and gas that they do on a daily, widespread basis without question. And when you don’t know why, you also don’t know why it needs to be zealously guarded. Oil and natural gas have not only provided fuel for transportation and energy sources for electricity, but their exploitation through fractionation and refining has generated an almost endless list of products and essential ingredients in products that we use every moment of every day. It has become clichéd to observe that without oil and gas we would not be in much better shape than the cave man; but it is almost a certainty that the average American has little or no knowledge of the pervasive benefits of the oil and gas industry. Despite Coolidge’s accurate, even proud, statement about what drives America, a more recent President, George W. Bush, seemed to apologetically observe that America is “addicted to oil.” One President observed that America’s strength was business (business increasingly fueled by oil), while another President observed that oil is our weakness — an addiction — and we all know where addictions ultimately lead. It is no more accurate to describe oil and gas as an addiction than it is to describe food in that way. Addictions lead to bad results — but can anyone really look at the mind-boggling progress that our nation (and the world) has made because of abundant, affordable, reliable and naturally concentrated energy in the form of fossil fuels and characterize that progress as a “bad result?” Those who try to take such a position aren’t being intellectually honest; rather, they are hypocritically — and comfortably — condemning the source of their comfort. This position is the ironic admonition of the affluent

strategy is much different when we are not dependent on other countries, especially those who are sometimes hostile, for imported oil and gas. In Daniel Yergin’s Pulitzer Prize-winning book The Prize: The Epic Quest for Oil, Money & Power, we are reminded that, when commenting on the critical role oil played in ending World War I, Lord Curzon stated: “The Allied cause floated to victory upon a wave of oil.” Similarly, it can be said that U.S. oil played a role in defeating the Axis powers in World War II. The seemingly endless conflicts in the Middle East, and the United States’ role in them, has undoubtedly had a lot to do with our long-standing concern about future sources of imported oil. But when you have enough oil and gas to become a net exporter to other countries, geopolitical decisions suddenly can be driven by other considerations. When combined with the known reserves in both Canada and Mexico, it becomes realistic to see a day in the near future when North America could be energy independent. Mexico took a historic step in 2013 to unlock their massive reserves for modern development, when they decided to amend their constitution and allow foreign investment and partnership 75 years after the oil and gas industry was nationalized. Despite the drop in crude oil prices in the world market during the 2014–16 bust, Mexico has stayed the course by offering properties at auction for development by foreign companies and breaking up the monopoly previously held by PEMEX, the national oil company. Incredibly, companies like ExxonMobil, Chevron, BP and Shell are actually opening retail gas stations throughout the country. The U.S. is building several pipelines, transporting natural gas and refined products from Texas to Mexico. The opportunities for great progress and benefit to Mexico are almost too significant to fathom. But the capacity for man’s ability to fumble a sure touchdown is equally limitless. Mexico will be voting for a new president in 2018, and the leading candidate is campaigning to undo the reforms enacted in 2013. President Trump is threatening to undo NAFTA. Environmental activists in the U.S. are hell-bent on disrupting construction of new pipelines and refineries, as well as stopping hydraulic fracturing and generally doing everything they can to stifle the continued use of oil and natural gas for any purpose. Other world producers of oil and gas, like Russia and the various OPEC nations, are delighted and hopeful that we will somehow figure out a way to reject our current advantage and self-impose a vow of energy poverty. Of course, anti-oil apologists will simply respond that the health of the planet outweighs any of these other considerations. But is it the health of the planet or the health of humanity or the health of our nation that should guide our decisions? Should that fateful day ever come when a hostile nation has America at an inescapable disadvantage because of our imprudent policy decisions regarding energy, there will be few, if any, finding solace in their relief that beetles, salamanders and lizards are thriving and global temperatures have risen only .01 rather than .02 degrees.

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. NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

POLICY

Taking Care of Orphans (Orphan Wells, That Is) By: David Porter

hen do you plug a well? In theory, you should do so when the cost of operating the well is higher than the income it produces. However, that point is very difficult to ascertain. Remaining reserves, cost of production and sales price of production are all unknowns that directly affect the equation. In practice, when do you plug a well? When the Railroad Commission of Texas says so. The Commission’s Rule 14 says: ‟Plugging operations on each dry or inactive well shall be commenced within a period of one year after drilling or operations cease ... unless the Commission or its delegate approves a plugging extension under Rule 15 (§3.15).” The operator is responsible for plugging the wells it operates. There are a number of exceptions to the general plugging requirements of Rule 14 laid out in Rule 15. If followed correctly, an operator will gain well plugging requirement extensions. If the requirements of Rule 15 are not followed, one of two things will happen. Either the Railroad Commission will issue an order that a certain well should be plugged or, more likely, the operator’s organization report (P-5) will not be renewed. Wells not properly plugged by their operator become part of the orphan well program. Orphan wells are defined by the Commission as noncompliant wells that have been inactive for more than a year with an operator’s P-5 that has been delinquent for more than a year. Once a well becomes an orphan well — one of four scenarios can happen. The responsible operator brings the well back into compliance or plugs the well. Another operator with a valid P-5 takes over operations. Surface owners get the well plugged and get partial reimbursement from the Commission, which rarely happens. Finally, orphan wells can be plugged by the Railroad Commission. The Commission plugs wells according to a well plugging priority determination system. There are five well priorities (from highest to lowest): priority 1, 2H, 2, 3, and 4. Priority 1 is a well that is leaking oil, gas or saltwater. Priority 2H takes into account if usable quality water is not protected or the points assigned to the well are above a certain amount. Priority 2, 3 and 4 are based

on a numerical ranking. Points are assigned to wells based on such factors as wellbore integrity, mechanical problems, proximity to water, area population or environmentally sensitive areas. One of the most important functions of the Railroad Commission of Texas is to plug these orphan wells. Plugging wells

prices over those years. The vast amount of money used to plug orphan wells comes from the Oil and Gas Regulation and Cleanup Fund. Very roughly speaking, in most periods this accounts for more than two-thirds of the money spent. The Commission also tries to recoup plugging costs from the responsible operator. By the time

One of the most important functions of the Railroad Commission of Texas is to plug these orphan wells has been tied to oil prices since the 2011 Legislature moved the oil and gas division toward selffunding the amount of money the Commission can spend. In fiscal year 2013, the Commission spent $20.9 million; in 2014 it spent $15 million; in 2015, $10.7 million; and in 2016, $8.5 million — pretty much following the trajectory of oil

it gets to this point, the operator typically has very little if any funds to pay. The Commission will salvage equipment on wells that are plugged. However, many times the equipment has already been stripped from the lease. Lastly, money is collected from the bonds, letters of credit and deposits required from operators.

About the author: David Porter has served as a Railroad Commissioner (2011–17) and Chairman (2015–16), as well as Vice Chairman of the Interstate Oil and Gas Compact Commission (2016). Prior to service on the Commission, Porter spent 30 years as a CPA working with oil and gas producers, service companies and royalty owners in Midland, Texas. Since leaving the Commission, Porter works as a consultant for oil and gas companies. He also serves as Chairman of the 98th Meridian Foundation, a nonprofit concerned with water, energy and land issues.

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NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

POLICY

The State EOC: Where Texas’ Response to Major Disasters Begins By: John Tintera

When the Governor declares a disaster, state responders swing into action under the oversight of the Texas Division of Emergency Management. At that moment, state agencies are essentially working for and reporting to our Governor and his subordinates. Organized in Emergency Support Functions, the agencies assign trained personnel to the bunker, staff who know what resources the agencies can provide for the response. Some agencies handle environmental assessment, while others focus on transportation or utilities. All agencies contribute their assets and knowledge of the impacted area and industries to protect the public and help with the recovery process. If a disaster grows in size and complexity, federal agencies like the U.S. Coast Guard and EPA will join the response structure and take the lead as needed. Information flows into the state EOC from local first responders, and services and assistance flow back from the state and federal government. In 2005, I participated in the disaster

response for Hurricane Rita. It made landfall at Sabine Pass, only weeks after Katrina had devastated New Orleans. Assigned to fly in a Black Hawk helicopter the day after the landfall, we were the first state responders to see the damage at ground zero from the air. We counted and evaluated structural damages (Does the building have a roof? Is it flooded?), sunken shipping, oil spills and containment, and reported the information back by satellite phone to our Austin EOC. Our report was then used to plan the next step of the disaster response. While hurricanes and the associated flooding are the bane of coastal living, Texas prepares for more than just storms. The state practices multiple

drills that cover a host of scenarios, from nuclear facility incidents to power shortages. All follow a similar theme of escalating crisis. As events warrant, local responders contact the state for assistance or support, and the state responds. If needed, the state asks Washington, D.C., for assistance, and federal agencies respond. To integrate this response into a cohesive whole, all entities — federal, state and local — follow the same principle of organization, the Incident Command System (ICS). The ICS is the primer for responses, and it stresses the Big Five of any response: finance, logistics, operations, planning. Together these fundamental building blocks spell C-FLOP, an acronym whose importance cannot be underestimated.

It is this combination of command, information, resources and field inspections that makes our disaster response flexible and effective. We practice FLOPS to ensure no response is a flop. It is not easy work. We all know who is counting on us. And we all know the potential gravity of the situation. So as you watch the news and see trucks bringing supplies into disaster-torn communities, remember the planning and the people that make it all happen. They are highly dedicated men and women, and all Texans should be grateful for their service.

When the Governor declares a disaster, state responders swing into action under the oversight of the Texas Division of Emergency Management

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

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ehind heavy, blast-proof metal doors, buried dozens of feet underground and surrounded by reinforced concrete, you’ll find Texas’ command center for disaster response. Called “the bunker,” it is technically known as the State Emergency Operations Center (EOC) and is located in uptown Austin at the Texas Department of Public Safety’s main headquarters. Although the facility is underground, it is essentially a self-contained office building. Amenities include a kitchen, showers, bunks, offices, meeting rooms and state-of-theart communications equipment. Once you get through the narrow corridors, there’s a surprising amount of space, with desks and computers for representatives from almost every Texas state agency that plays a part in the state’s response to disasters like Hurricane Harvey.

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BUSINESS

4 Steps to Lower Your Commercial Business Insurance Premium By: J.B. Ruble

Here are four steps to lower your risks and ultimately make your business an ideal candidate for a lower insurance premium.

Make sure your workplace is safe. It can’t be stressed enough: A well-thought-out safety plan is key to increasing your chances of a low insurance premium. Your current plan should clearly state your company’s safety rules, procedures and standards of conduct. Be sure your plan is always up-to-date with the latest OSHA mandates, and don’t forget to include any company-specific procedures that align daily

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practices with safety guidelines. Annually, check to make sure that your personnel are following safety protocols, that equipment is maintained and that your safety training is utilized. As practices are assessed, make a list of follow-up activities to be implemented so that necessary corrections are made and procedures are current.

Revamp your employee handbook. An up-to-date employee handbook that thoroughly documents your company’s rules and procedures is crucial to any business. It shows you are organized and meticulous, especially when it comes to mitigating claims. Review your handbook with each team member when they start the job — and with

The safer or less risky you appear, the more appealing your business is in their eyes — and the more likely they are to give you a lower rate

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ven in today’s world of extreme weather, security breaches and other reasons that seemingly cause insurance rates to skyrocket, it’s easier than many think to reduce your commercial insurance premium. How, you ask? Make your business marketable to insurance carriers. Brokers aren’t controlling the price of your premium. Think of them as the middleman, simply relaying your information to the insurance carrier, who then analyzes it and, in turn, provides the estimate. That’s why it’s important to have a high level of communication with your insurance broker: He or she is the one responsible for relaying key data about your business’ risk profile to insurance carriers. Insurance carriers look for low-risk companies that are not likely to have a high number of claims. Therefore, the safer or less risky you appear, the more appealing your business is in their eyes — and the more likely they are to give you a lower rate. Think of it like car insurance. Teenage males are known to incur higher rates because they often have spottier driving records, drive more often than females do and are less likely to wear their seat belt. Once they prove they are safe and reliable, their rates often decrease significantly.

your whole team regularly and as you make changes. Be sure everyone has access to a copy for reference. Additionally, review your employee handbook at least once a year with your lawyer and insurance agent to make sure it includes current information and any new industry requirements.

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Implement a robust safety training program. A well-written safety plan is only the first step to mitigating workplace mishaps. Offering training programs for your employees is a solid way to reduce accidents due to human error. Such programs can range from harassment to disaster preparedness. Remember, the riskier (to insure) you appear, the higher your premium is likely to be. Implementing safety procedures and training programs shows carriers you are committed to reducing risks, which means you are less likely to incur claims. Offer different types of training methods to ensure materials are accessible to different learning styles, including options like videos, in-person workshops, infographics and short quizzes. Be sure to also include the training program as part of employee onboarding.

Be prepared. It’s impossible to know when disaster will strike, but it is certainly possible to be prepared. Whether it’s a natural phenomenon, such as a flood or tornado, or a manmade disaster, such as a chemical spill or security breach, an unexpected crisis can disrupt normal operating procedures. No one knows that better than insurance carriers. Show them you’re equipped to deal with any situation by creating a disaster preparedness plan. The plan should highlight worst-case scenarios and provide instruction on how you will deal with them. It should answer questions such as: What if employees need to work off-site? What if you need to operate with a limited crew? Is there a way to communicate if the phones and/or internet is down? Who is the company spokesperson in a time of crisis? Who will notify employees? What if key data or client information is damaged? Make sure your employees are aware of your company’s disaster preparedness plan and test them regularly. This detailed plan ensures minimal disruption to your business and shows insurance carriers that you are ready to operate as normally as possible if a disaster strikes. You can never be too cautious when it comes to workplace safety. Actively preparing for and preventing risks gives your company an edge. Not only will you save money dealing with avoidable incidents and claims, insurance carriers will see you as a safer entity as well. And that gives you a better chance at scoring a low premium, while increasing your company’s bottom line.

About the author: Based in Nashville, J.B. Ruble is a business insurance consultant with middle-market business insurance firm Fisher Brown Bottrell Insurance, which is a wholly owned subsidiary of Trustmark National Bank, a publicly traded financial services company with more than 200 locations and more than 3,000 associates in Mississippi, Florida, Tennessee, Alabama and Texas. For more information, contact Ruble at jbruble@fbbins.com or visit www.fbbins.com.

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5600 Broadway Avenue • San Antonio, TX 78209 KingRealtors.com tabitha@kingrealtors.com NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

BUSINESS

Behind the Register: A Look at Point-of-Sale Systems KEEPING UP WITH INDUSTRY TRENDS IN AN EVOLVING LANDSCAPE USING A POS SYSTEM

orking in the restaurant industry, I’m constantly evaluating all aspects that go into creating a satisfactory dining experience. Whether you’re in the mood for a quick delivery on Friday night, a dine-in brunch on Saturday afternoon, or takeout on Sunday, there are several factors that can make each dining experience or touch point with a restaurant enjoyable and seamless. Oftentimes, the variables that control a diner’s experience go unnoticed but are vital and dependent upon a functioning point-of-sale (POS) system. Today, ordering food is as simple as pushing a button, and delivery is at an all-time high with apps such as Favor, UberEats and DoorDash. It’s imperative for restaurants to take this into consideration when selecting a point-of-sale

system. A bad experience or a wrong order can jeopardize a restaurant’s relationship with a customer. Integrating apps such as ToGoTechnologies, Open Dining Network and MAVN with a POS system can completely change the playing field for online ordering. By incorporating these apps into one POS system, restaurants can eliminate the need for multiple iPads behind the counter, each receiving orders from a different app, and can have one system receiving online orders. With a more seamless setup, less employees are needed to oversee online orders, thus reducing order errors and making a restaurant more efficient. Due to the current spike in online ordering, delivery and takeout, restaurants are adapting their interior space by expanding their pickup area to accommodate the increased foot traffic from food runners and customers.

Speed of service is always a top priority when visiting a restaurant for the first time. A new concept that is being implemented in the industry to improve wait times is Long Range Systems’ Table Tracker. Customers are given pagers when they place their order at the counter, allowing them to sit wherever they want and simply place their pager on the table. Servers are then able to track the customer to their table for streamlined food delivery. The pager eliminates the traditional process of having the customer leave their table to pick up their food from the counter. This concept caters directly to the customer’s needs. Other improvements in the industry include shared payment integrations such as TabbedOut and MyCheck, which make it easier for groups to split the check. One of several factors that goes unnoticed by the average diner is that POS software helps restaurants manage their inventory and resources, such as employee work schedules, to ensure they are prepared and properly staffed. An entire staff can access this schedule, and restaurant managers can regulate how and when employees can or can’t clock in. Restaurant employees play a major part in creating a memorable dining experience, so having an efficient and accurate scheduling system in place ensures that everyone is in the know and giving customers the best experience possible. My role in the restaurant industry is unique and constantly evolving, and that’s one of the best parts of my job. As technology advances, there are always new ways I can support and improve my clients’ businesses through their POS systems. I enjoy the challenge of staying on top of industry trends, and I am always looking for ways to make my clients’ lives easier. With increased efficiencies comes increased profits, and I hope to help my clients enjoy that success.

About the author: Tristan Child is the Chief Operating Officer at Focus Point of Sale. Child focuses on new business opportunities, streamlining current business operations and staying informed on current industry trends and technologies. He attended Texas Tech University and the University of Houston, and is certified as a Qualified Integrator and Reseller by the PCI Security Standards Council. For more information, call 713-412-1886 or visit www.focuspointofsale.com.

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By: Tristan Child

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

BUSINESS

Global Business Partnerships: THE IMMEASURABLE VALUE OF INTERNATIONAL ETIQUETTE AND PROTOCOL By: Danielle Turcola

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

female leaders are received, and working with translators and interpreters. If you need an interpreter for meetings and negotiations in a foreign country, I recommend you hire one in the U.S. who speaks that country’s official language fluently as well as additional dialects. They should be familiar with cultural nuances as well. Add them to your team and make them a member of your travel entourage. Hiring an interpreter at the foreign destination is risky. Be mindful that any interpreter or translator secured and provided by your potential international business partner will have an allegiance to them, not you. The advance planning and investment in an interpreter will give you a reliable resource and team player. How personal should you become with your global contact initially? South American cultures want a personal connection established before entering into a business partnership, while certain European cultures

are focused strictly on a business relationship. A misstep can be misunderstood, potentially offensive and cause a loss of business. Move slowly and take your cue from your host before making personal inquiries. I teach clients common greetings and phrases in the language of the host country so they can use them upon arrival and during meetings. International contacts appreciate the effort you make to use these civilities. Unless you are fluent in the language, do not attempt to deliver an entire speech or report in the host’s language. Provide your interpreter or translator with all documents, materials and speeches they will interpret or translate well in advance. Never try to convey humor through a joke or funny story. Humor is specific to every culture. Do not interject American slang or use hand gestures like the V for victory or thumbs up. Make no reference to current or past political leaders, wars, corruption, etc. Discussing failures creates embarrassment and

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hen entering the global market, some American companies lose an immeasurable edge by overlooking cultural nuances that can halt negotiations or deteriorate international business relationships. Of all the aspects companies take into account when building or merging with an international company, they may overlook an area of critical importance — international etiquette and protocol. Living abroad, studying seven languages, and traveling to more than 25 countries has given me firsthand knowledge and insight into cultural mores and nuances that some American companies rarely consider. Whether hosting international clients or traveling overseas to establish partnerships, understanding cultural distinctions is crucial. Although many international partners are educated in the West, their business culture is influenced by their traditions, customs and belief systems. Lack of understanding for their culture may result in disappointment and insult. Most often, a new client will contact me as they are contemplating a global venture. They want to be poised for success. Some new clients come on board after financial losses to international partners who took advantage of their inexperience. Being aware of cultural differences makes you savvy, builds trust and shows value in the relationship. To prepare clients for profitable overseas business, I provide coaching on more than 35 subjects to increase the success rate of their global interactions. To position your firm for this level of success, executives, leaders and support staff involved in the global venture must commit to learning more than the financial side of the business deal. Training topics include business and communication styles, prejudices and biases, superstitions, ceremonial colors, business dress codes, how

leads to unnecessary tension. All of this information is essential for outbound global business dealings. However, there are additional guidelines I provide to domestic clients who host international business partners and potential investors. Treat your international visitors as guests at all times. Every point of contact is scrutinized and is a reflection of professionalism and efficiency in your organization. This includes the driver and car service you select to transport your guests. Never expect your international guests to drive to or navigate their way to your offices or a hotel. Always provide private transportation with a driver that you have personally used. Prior to their arrival, send them the name, phone number and a photo of the contact person who will greet them at baggage claim along with the name of the transport service. This alleviates any concerns or fears they may have. Consideration and convenience are priceless long-term investments. Accommodations should be secured in internationally recognized properties with the following amenities: • 24-hour room service (access to food after a long flight) • A fruit basket, snacks, dried fruit, nuts, bottled water, coffees and teas in their hotel room During meetings, hospitality should include: • Supplying individually wrapped snacks, mints and chocolates • Offering global brand waters like Evian and Perrier • Using glasses for water and cups and saucers for coffee and tea (Do not use Styrofoam cups or drink directly from water bottles in formal meetings.)

When planning meals, keep in mind that some cultures have a much later dinner hour than Americans. Spaniards, for example, have a siesta in the afternoon and a meal that carries them to 10 p.m., when they have their evening meal. Access to food later in the evening is a welcome option. Be mindful of religious or dietary restrictions when suggesting restaurants. Kosher Jews, Indians and Muslims are just a few of several groups who should be given food options that are in line with their beliefs. Certain cultures prefer fish or vegetarian options, and some do not consume alcohol. However, do not assume someone wants to go to a restaurant featuring their native foods. This could be disastrous if the food preparation is substandard. I once worked with a manufacturing company, training all employees for their 50th anniversary followed by their annual global sales conference with 276 worldwide distributors. The Vice President of International Sales and I discussed conference menus, gift selection, entertainment, transportation and accommodations. He said they always served beef at the conference banquets. I mentioned that many of their global distributors were coming from cultures where beef is sacred or not part of their diet. He said no one had ever complained. I explained that they would not complain to the person who provided their livelihood and recommended that he offer them an option to preselect their food preferences. To his surprise, only 35 percent wanted beef; the rest requested chicken, fish or vegetarian meals. There is no substitute for detailed pre-planning that accommodates personal preferences. Quality of products and services does not always sustain business relationships. Personal interaction plays a large part in establishing long-term success. Your attention to and accommodation of cultural needs will create a lasting impression when hosting global partners. Gracious hospitality and regard for one’s culture build lifelong memories and strengthen international business alliances here and abroad.

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

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

LIFESTYLE

Hope and Recovery After the Horror of Harvey By: Kelly Warren Moore

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

ROSCHETZKYPHOTOGRAPHYBIGSTOCK/BIGSTOCK.COM

e had been watching Harvey develop all week. While I was with colleagues at a customer’s office in New Jersey on Aug. 22, my husband sent me a text with the forecast map of a tropical storm that looked like it might cause some trouble. Concerning, but it was only a tropical storm, not a hurricane, and, “Most of the time these things fizzle out and go into largely unpopulated parts of Mexico,” I told myself. As the hours passed, it was clear that was not going to happen. Harvey was looking to be an increasingly angry and belligerent guy who for some reason had decided he was going to take out his frustration on my beloved Rockport, Texas a small town I’ve been visiting since I was a young girl growing up in Corpus Christi. My husband and I had been working on getting a place there for the last several years. We’d planned to build, but those plans fell through as the development we’d selected took a direction we didn’t like. When we scrapped those plans, we began to look at homes in more established areas of town. Over the last two years, we have probably looked at every single home in our price range for sale in Rockport, trying to decide if we should take on a major renovation project or spend more than we were comfortable spending and buy something spectacular that had once been someone else’s dream. Finally, after years of starts and stops, we found the perfect combination in the perfect location for us, and the sale was finalized on June 23. Yes, just 63 days before Harvey came to visit. It felt surreal, watching footage of Rockport on national or even international news. The city took a direct hit of a Category 4 hurricane, and it looked like a third-world country — a place in shambles, with lots of ripped up trailers, trashed out boats and older, modest homes that had been destroyed. A stranger watching it might have wondered, why would anyone ever choose a vacation home in a place like that? One of the reasons we love Rockport so much is that it isn’t your typical flashy, touristy beach town. Port Aransas (which also sustained horrific damage), Galveston and South Padre Island fill that bill for those who prefer a little more commercial action and nightlife when they go to the beach. Rockport is a quirky melting pot of fishermen, farmers, ranchers, artists, nature lovers, shrimpers, bird-watchers and families who just want to run their small businesses and get their kids to school. The rest of us go there to decompress from our busy lives in Austin, Houston, San Antonio or Dallas, or have decided to retire there after years of corporate life. We all meld together and the result is one of the warmest, most laid-back, generous group of people of all stripes of which I’ve ever had the pleasure to be a part. As the mayor of Rockport, Charles J. Wax, said on national news the day after the storm hit, “We have

residents here who can make their home anywhere in the world, and they choose to live in Rockport.” It’s an acquired taste, and not for everyone, but it is perfect for us. We sat in my husband’s office upstairs in Austin and made it our own personal command center Friday night. We watched the storm approach and strengthen with every hourly update. We were livestreaming the local station from Corpus Christi, with Joe Gazin at the KIII anchor desk — who has been on the air there since I was a kid. His voice was a calming influence as memories of many other storms and evacuations from my youth flowed back to mind. Most of our friends from the area had evacuated, but a few remained to ride out the storm. One couple stayed because they have dedicated their lives to helping rescue and shelter animals and knew they would be needed desperately. Others remained in hopes of protecting their

business, or because they wanted to be available immediately for others in the aftermath. We were terrified for all of them and in contact with some of them as long as cell service allowed, which ended at about 10 p.m. as the eye approached. And then we waited. And waited. And waited to hear from them. Thoughts of what had happened to our home, amazingly, seemed far away as we agonized about these people who had become such a wonderful part of our life. Finally, later on Saturday, we started to get sporadic reports. Everyone we knew was alive and uninjured. Miraculously, the loss of life in Rockport thus far is but two residents and one AEP Texas worker who was killed as he worked among thousands of others from all over the country to restore power in the area. Any loss of life is terrible, and my thoughts and prayers go out to those families. But it could have been so many more, especially when you see the devastation firsthand.

There is so much aftermath of, well, just so much NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

those who thought we were crazy for taking this step. As if in defiance of our own worries and fears and regrets. As if to say, “I’m still here, and if I can make it, so can you. You are meant to be a part of this community, my friends.” Because, in the few weeks since we’d bought it, this house had become just that. Our friend. We think of it as a welcoming, sacred space where we will share our dreams and our future with those closest to us. Sure, our roof is destroyed and will have to be replaced. We have some water damage and virtually all of the renovations we’d done since we purchased the house two short months before will need to be redone. But we are far more fortunate than so many others. And even as we were trying to catch our breath and start to figure out how to move forward, our thoughts turned to so many friends and loved ones who were enduring unimaginable horrors as Houston looked to be drowning before our eyes. Even before we could get down to Rockport safely a few days later to assess the reality of the situation for ourselves, we knew that public attention would soon go from the Coastal Bend to Houston, to the Golden Triangle, and then to Florida. (And then, as it would turn out, to Puerto Rico.) There is so much aftermath of, well, just so much. We have had some time to assess the situation. We’ve spent all of our spare time in Rockport, and repairs are beginning for those who can repair, rebuilding for those

who can rebuild. Hopefully, by the time this goes to press, the Rockport schools will have reopened and students can get back to their new normal. We might even be fortunate enough to have our Thanksgiving meal in our Rockport home (and it will have an even more profound meaning than usual this year). So many others will be struggling mightily for months and years to come. We are committed to helping wherever and whenever we can. The vast majority of this human experience has been the sheer awe of and gratitude for our fellow human beings. The selflessness and tireless work of so many, putting others’ needs ahead of their own, is humbling. The efforts of town officials, who never could have imagined what they were signing up for when they ran for office in this small, relaxed coastal community, is admirable. I can’t put into words the pride and gratitude that swelled in my soul in those early days of commuting between Austin and Rockport, as I watched the armies of trucks, heavy equipment, and emergency response vehicles sharing the road with us filled with volunteers going in to serve their fellow citizens. The dignity of work — particularly hard, dirty, dangerous work — has never been more visible to me. I will never see an electrical or telephone lineman without feeling enormous gratitude and appreciation. Nor a sanitation worker, or the people who service port-apotties, cable repairmen, FedEx drivers, construction workers, or business owners who

ROSCHETZKYPHOTOGRAPHYBIGSTOCK/BIGSTOCK.COM

Once we knew that our friends were safe, our thoughts then turned to this major investment we’d committed to just two months before. Pictures and videos started making the rounds on social media. We saw nothing but matchsticks and rubble and debris where our hangouts, gas stations or shops used to be. We had fully accepted that our place, right on Aransas Bay, was likely gone, never to be the sanctuary and gathering place for our friends and family we’d dreamed of for so long. We scoured everything we could find, including friends’ photos and videos posted online, in hopes that we would catch a glimpse of our place so that at least we would know something and could then begin to act. Through a friend of a friend of a friend, a high school friend texted a random video from Facebook to me. There was a car driving down our street. The realty office where we signed the buyers agreement with our real estate agent was destroyed. Other houses on the way to our home were leveled, were missing the entire front or had their second floors just ripped away. Our neighbors’ homes, personal lives and belongings were nakedly exposed, as you could see their furnishings, children’s toys, kitchen cabinets and everything else just flapping in the wind and rain. As the driver in the video approached our home, Dave and I held on to each other, fearing the worst. Suddenly, there was our modest but beautiful, newly painted dream! Standing tall and proud as if in defiance of all

carefree summer vacations together, beds that welcomed family and friends from afar to enjoy all the Texas Gulf Coast has to offer, patio furniture where futures were planned and dreams were dreamed while looking out at the majesty of Aransas Bay — all piled up in front of homes that will never be the same. It’s incredibly daunting. But, at the same time, with every day comes a little more order. The piles grow a little smaller and will eventually be gone. The hum of construction

foreign country. Listening to the radio in my rental car, as news focused on Florida in the aftermath of Irma, it seemed like no one in the world but me cared anything about Rockport, Texas, anymore. I heard a radio interview of a woman in Naples, Florida, the day after the storm. The reporter asked her how she fared in the storm that had hit just 24 hours before. She said, “Our house is fine, but we have no power. We have no internet. We’re living like savages.” I

The city took a direct hit of a Category 4 hurricane, and it looked like a third-world country — a place in shambles, with lots of ripped up trailers, trashed out boats and older, modest homes that had been destroyed

lost everything but are determined to focus on getting their businesses up and running so they can serve others first. Having said that, there are a lot of issues no one reports on or talks about after a disaster like this, except with people who are experiencing it together. Almost every plant and tree lost all their leaves, if they survived at all. The palm fronds of most of Rockport’s stately palm trees were shorn off. There is green growth returning, a hopeful sign of renewal. Every flower from every plant is gone. Of course, they’ll come back. Everything just looks mutated. We swept so many dead baby birds from our yard, roof and deck that I had to just sit down and cry, thinking about how scared and helpless they must have been, just like all of us. We’ve all seen photos of the heaps and mountains of debris and garbage that pile up as a result of storm damage like this, but it’s hard to describe what that view does to your soul every time you look outside or drive up and down your street. It’s disheartening and sad, a constant reminder of memories made and sentimental objects gone. Dining room tables where families celebrated

work will most certainly be part of the soundtrack here for months and months to come, and that is a hopeful sound right now instead of the nuisance I might have considered it to be a few months ago. The first few days and weeks, everyone tried to keep up a happy face, hugging each other as they came back to the destruction all around them. Gallows humor is a beautiful thing when going through shared grief, too. That can’t be held up indefinitely, though. Even the strongest of men and women have signs of fatigue around their eyes and a slight slump in their shoulders when there is no electricity or working sewage system. Using a public portable toilet at a football tailgate or a concert is one thing. Having to use one for nearly two weeks with 10,000 of your neighbors in the same situation is a pretty humbling experience. Running water and electricity make a big difference in a community’s outlook. Air conditioning goes a long way to cool tempers, not just bodies. And while cable television and internet access are considered “necessities,” most everyone in Rockport understands that’s not exactly true. Each service lost has been cheered mightily and appreciated exponentially when it has been restored. And still, everywhere else in the world, life goes on as normal. I had to fly back to New Jersey for some important customer meetings in the midst of the cleanup efforts. Landing at Newark, an airport I’m in at least a couple of times a month, I felt like I had arrived in a

nearly drove off the road. I was almost three weeks in and we’d only had our power go on a few days before. We haven’t had television or Wi-Fi since the storm, although by press time we should. At no point in that time did I feel like a savage, uncomfortable and unpleasant as it was. Immediately after a storm like Harvey, nature is a juxtaposition. Mass destruction is everywhere, but the air and sky are so clear, and the sunrises and sunsets seem like they have gone through some kind of amazing technicolor enhancement. I choose to believe that this is God’s way of reminding us that what drew us all to this special place is still there and will be there to encourage us all as we work to rebuild not just our own homes, but the community at large. As Rockport is rebuilt, it will need everyone who loves it to help it thrive again and still maintain its fiercely independent, vibrant, quirky nature. My husband and I are taking our good fortune as a sign that we were meant to play a role of some kind in its rebirth; and in doing so, it will bond us even more tightly and inextricably to this wonderful spot in what I believe is the very best part of the world. When time has passed and recovery is underway, I hope you’ll consider visiting this special place so that you can understand why we love it so. Until then, if you have the means or inclination, Rockport, Fulton, Aransas Pass, Port Aransas and every little community in between still need your money and your prayers, if you have either to spare.

About the author: Kelly Warren Moore has sold clinical research and development software solutions to the pharmaceutical and biotech industry for the past several years. She previously spent 20 years in business development for the pharmaceutical research and development field, focusing on multi-study, global clinical programs. She has a Bachelor of Arts degree in economics from The University of Texas at Austin. Any opinions expressed in this article are strictly her own and are not meant to represent those of any employer, client or organization with whom she is affiliated. NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

LIFESTYLE

Prepping for the Holidays With Pets WHAT YOU NEED TO KNOW TO ENJOY THE SEASON WITH YOUR FURRY FRIEND

he holidays are here, which means there will be plenty of love, laughter, family gatherings and, of course, food. The festivities include just about everyone — parents, grandparents, aunts, uncles, cousins and the pets who we often consider closer than our family. As a leading pet facility in Houston, Meadowlake Pet Resort & Training Center receives a lot of questions from clients around this time of year about what is and isn’t acceptable when it comes to table scraps, decorations, travel and general safety. One of the biggest misconceptions — and hazards — when it comes to pets are table scraps. Around this time of year, family dinners often include decadent foods such as marshmallow-coated yams and bacon-wrapped anything and everything. Typical ingredients such as garlic, onions, leeks and scallions are all part of the allium family and are poisonous to dogs and cats. Grapes, raisins and chocolate are of the same vein and can even lead to kidney failure if pets consume enough. Avoiding fatty and butter-coated meats and vegetables is also key to keeping your pets from getting sick. Green beans are a side dish staple and a healthy and easy snack for pets as long as they are served plain. Regular white meat is also OK, but avoid fattier dark meat, bones, skin or leftover twine — all are choking hazards. Surprisingly, cranberry sauce is safe for pets to eat; just make sure it’s low in sugars and does not contain the artificial sweetener xylitol or high-fructose corn syrup. Deck the halls, but skip the tinsel! Tinsel is a choking hazard and

can cause intestinal blockages if consumed by pets. Any decorations, particularly those with hooks, are also a danger if swallowed, as they can wreak havoc on your dog’s insides. Keep in mind that holiday candles are a fire hazard if they are within reach of your pets. Place candles up high and on sturdy surfaces that won’t get bumped, and never leave a candle lit when you’re not home. Dogs and cats are naturally curious; and once a mysterious tree pops up, they will likely try to explore it. Pet owners should be mindful of any live pines, spruces or firs they decide to bring into their home for the holidays. A tree stand’s water reservoir is often easily accessible to dogs and cats and can be very harmful. The tree can release toxic sap into the water basin that will smell aromatic to pets. Many fresh trees are also preserved with pesticides and fertilizer water additives — including aspirin, which can be especially fatal for cats, who are unable to effectively break down the drug because of the absence of a necessary protein in their livers. While veterinarians occasionally prescribe aspirin for dogs to treat various conditions, too much can be deadly for them as well. To avoid any mishaps, block access to the tree stand by thoroughly covering it with aluminum foil and a well-wrapped

tree skirt. It is also important to ensure the tree is anchored securely to avoid a disastrous fall or spills. Check your tree stand often to make sure that the eyebolts are still locked into place. Pets are often considered an essential part of the family, and owners insist on traveling with them. Air travel is not only stressful, but it also can be quite dangerous for pets if not handled properly. Conditions in the cargo hold of commercial jets are unpredictable, with temperature fluctuations, extremely loud noises and significant drops in air pressure — all in a dark space. The best bet to avoid an air travel mishap is to leave your pet with a caretaker you trust. At Meadowlake, we offer several options for boarding to ensure pets rest easy while their owners are away. In addition to providing a clean, comfortable lodging space, facilities will offer activities for pets to enjoy during their stay such as group and private play sessions, training and spa treatments. Pets who receive plenty of interaction and activity while lodging with us are often returned to their owners happier and healthier. All of us at Meadowlake Pet Resort & Training Center wish you and your family — including your furry family members! — a happy, healthy and safe holiday season.

About the author: Laura Koch is the Executive Manager of Meadowlake Pet Resort & Training Center. Koch began her animal care career working at a pet store at 14 years old. Her vast experience spans shelters and zoos and includes the Houston Zoo, where she helped care for their collection of more than 4,500 animals. For more information on Meadowlake, call 713-413-1633 or visit www. meadowlakepetresort.com.

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

PHOTOS COURTESY OF MEADOWLAKE PET RESORT & TRAINING CENTER

By: Laura Koch

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LIFESTYLE

Haunted Magnolia Hotel Is Rich in History and Fright THE GHOSTLY HOTEL IS ATTRACTING TOURISTS FROM ACROSS THE NATION TO SEGUIN, TEXAS Special to SHALE

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

grandest hotel in Texas. The hotel gained ownership of the actual Alamo bell in 1860. It hung in front of the hotel for nearly 50 years until it was discovered by the Daughters of the Republic of Texas and returned to the Alamo. After it was sold in 1930, the new owners altered the building into apartments. By 1990, the once gorgeous

PHOTO COURTESY OF MAGNOLIA HOTEL

eguin, Texas, may be situated off the beaten path, but the lure of ghosts is drawing droves of tourists to this small, quaint town and the Magnolia Hotel. Once included on the Texas’ Most Endangered Places list, the town’s oldest hotel and stagecoach stop was destined for demolition. Now the town’s most dreadful eyesore has become its biggest tourist destination. Rescued by Jim and Erin Ghedi, the dying building has been transformed back to its original 1880s glory. On day one of the Ghedis’ restoration efforts, unusual occurrences began to develop throughout the building. It soon became apparent that the hotel was extremely haunted. With the Magnolia’s vast history, it came as no surprise to the Ghedis. Now the couple has vowed to coexist with more than a dozen ghosts residing within the hotel’s walls. The building began as a two-room log cabin built in 1840 by Seguin’s co-founder, Texas Ranger and DeWitt colonist James Campbell. An Indian raid shelter was dug out underneath the cabin by slaves around the same time. This shelter was used by the Texas Rangers as Seguin’s first jail cell. After Campbell was killed by Comanches, the cabin was converted into Seguin’s first stagecoach station and the original three-room hotel was built out back. In 1847, the famous Texas Ranger Capt. John “Jack” Coffee Hays married his sweetheart, Susan Calvert, inside the original Magnolia Hotel. Around 1850, the two-story wood-framed structure was added in between the stagecoach station and hotel in the back, transforming it into what would be known as the

hotel had fallen into disrepair. For more than 20 years it was known as a drug house. The Ghedis discovered the hotel on YouTube and rescued it from further damage. While researching the hotel’s past, the couple has uncovered numerous deaths that occurred in the building. It was also home to an ax

PHOTO COURTESY OF MAGNOLIA HOTEL

murderer who killed a young girl in her sleep. During guided tours of the Magnolia, visitors have taken photographs of what appear to be ghosts. The hotel has drawn attention from numerous cable paranormal shows such as Ghost Adventures, Ghost Brothers and When Ghosts Attack. If you love haunted houses, the Magnolia Hotel is worth the trip off of Interstate 10. Though rooms are not yet available to stay overnight, the hotel is available for day and night tours.

PHOTO COURTESY OF ROBYN MILORA

PHOTO COURTESY OF ELISA GIORDANO

PHOTO COURTESY OF MAGNOLIA HOTEL

During guided tours of the Magnolia, visitors have taken photographs of what appear to be ghosts

For more information on the Magnolia Hotel, call 512-571-2706 or visit www.hauntedmagnoliahotel.com.

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

LIFESTYLE

Holiday Events at the Washington on the Brazos State Historic Site TWILIGHT FIRELIGHT AND CANDLELIGHT CHRISTMAS EVENTS ARE HIGHLIGHTS OF THE SEASON Special to SHALE

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

and Christmas on the Brazos. Both include frontier festivities, period music, visits with interpreters and candlelit venues.

 fanthorp inn

Run by the Texas Parks & Wildlife Department, the Washington on the Brazos Historic Site is open daily and has many on-site amenities, including an incredible schedule of events and programs

Holiday Highlights Twilight Firelight On Nov. 25, board a replica stagecoach in downtown Anderson and travel back to 1850 at Twilight Firelight at the Fanthorp Inn State Historic Site. Enjoy candlelit tours of the historic Fanthorp Inn while visiting with interpreters dressed in period clothing. Tap your feet to the sweet sound of old-time music or join in the barn dance. A muledrawn coach and wagon leave from downtown Anderson near the courthouse beginning at 4:30 p.m. with the last ticket being sold at 7 p.m. Rides run continuously during the event. Last ride departs Fanthorp for downtown Anderson at 8 p.m. Dress appropriately for the season as parts of the event are held outdoors, and the wagons and stagecoaches are open-air. The barn and first floor of Fanthorp Inn are accessible. Tickets will be available beginning at 4:30 p.m. on the day of the event in the Grimes County Courthouse parking area, where stagecoach and wagon rides to Fanthorp Inn will begin. Contact Jon Failor at 936-878-2214 for more information. Christmas on the Brazos The historic Christmas traditions of Texas will transport visitors into the past at the Christmas on the Brazos celebration at the Washington on the

FANTHORP INN PHOTOS COURTESY OF TPWD

ant to unplug from the modern-day holiday madness? Experience Texian festivities from the mid-1800s at the Washington on the Brazos State Historic Site. On March 2, 1836, 59 delegates bravely met to make a formal declaration of independence from Mexico halfway between Austin and Houston. For almost 10 years, the Republic of Texas proudly existed as a separate nation, meaning Washington on the Brazos is, indeed, “Where Texas Became Texas.” Run by the Texas Parks & Wildlife Department, the Washington on the Brazos Historic Site is open daily and has many on-site amenities, including an incredible schedule of events and programs. On the grounds of this 293-acre state park is Independence Hall, where the representatives met to sign the declaration of independence in 1836; the Star of the Republic Museum, administered by Blinn College and featuring collections honoring the history, cultures, diversity and values of early Texans; and the Barrington Living History Farm, where interpreters dress, work and farm as the earliest residents of the original farmstead did. The Fanthorp Inn State Historic Site is a wonderfully preserved 19th-century stagecoach inn located nearby in Anderson, Texas. In addition to its rich interactive experiences and many living history events, Washington on the Brazos hosts two holiday events that are especially magical: Twilight Firelight

 fanthorp inn

On Nov. 25, board a replica stagecoach in downtown Anderson and travel back to 1850 at Twilight Firelight at the Fanthorp Inn State Historic Site NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

of the Republic Museum will host make-andtake period crafts (regular admission fees; no charge for the crafts); and it will be open for extended hours from 10 a.m. to 6:30 p.m. Regular farm admission fees apply. Candlelight Christmas at the Barrington Living History Farm runs from 5:30 p.m. to 9 p.m. (with the last tickets sold at 8 p.m.). Guests are welcomed back into the 1850s to experience the sights, sounds and smells of a historic Christmas against the backdrop of a star-filled night sky. Meet St. Nick; fall in with some noisy, rowdy revelers; watch the Jones family light the Christmas tree; attend an evening service with a traveling minister; and discover how enslaved people celebrated Christmas. Small groups will be guided around the site to view historic vignettes focused on the holiday season. Tours leave every 15 minutes starting at 5:30 p.m.; last tickets will be sold at 8 p.m. Advance reservations are strongly recommended and will be accepted beginning Nov. 15 at 936-878-2214. Regular admission fees apply. Contact Barb King at 936-878-2214, ext. 246 or barb.king@tpwd.texas.gov. Washington on the Brazos and Fanthorp

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CHRISTMAS PHOTOS COURTESY OF SCOTT HILL, BRENHAM PORTRAIT GALLERY

Brazos on Dec. 9. The day culminates in the parkâ&#x20AC;&#x2122;s popular Candlelight Christmas event at Barrington Living History Farm, featuring vignettes of Texian frontier festivities with music, musket firing, dancing and a candlelit tour of the farm. No-cost and low-cost holiday activities occur throughout the day and are staggered throughout the park for all ages, including An Afternoon With Dickens at Independence Hall at 1 p.m. and 3 p.m. Staff dressed in period clothing will regale visitors with tales of Olde Time Christmas, as told by the great author Charles Dickens. The Star

Inn are open most of the Thanksgiving and Christmas holiday weekends. Washington on the Brazos (including the Star of the Republic Museum, Independence Hall and Barrington Living History Farm) will be closed on Nov. 23 for Thanksgiving Day; all will reopen on Friday morning for the weekend. Washington on the Brazos will also be closed Dec. 25 for Christmas Day. The Star of the Republic Museum will close Dec. 24 and will reopen Jan. 2, 2018. Fanthorp Inn is open year-round only on Saturdays and Sundays from 9 a.m. to 3:30 p.m.

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The entrance to the park grounds, Visitor Center and parking are always free; fees apply for the Barrington Living History Farm and the Star of the Republic Museum, and guided tours of Independence Hall. The expansive park grounds provide a beautiful setting for picnicking and bird-watching, and include four geocaching sites. A Conference/ Education Center, outdoor amphitheater and two pavilions are available to rent for meetings and events.

Washington on the Brazos State Historic Site is located at 23400 Park Road 12, in Washington, Texas off of State Highway 105. For more information, call 936-878-2214, visit www.wheretexasbecametexas.org or find the Washington on the Brazos State Historic Site on Facebook.

NOVEMBER/DECEMBER 2017 ď &#x201C; SHALE MAGAZINE

LIFESTYLE

New Orleans’ First Blended Brand Hotel SPRINGHILL & TOWNEPLACE SUITES NEW ORLEANS DOWNTOWN/CANAL STREET WITH ROOFTOP BAR Special to SHALE

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

separated by floor, not by building, with one shared lobby and complimentary breakfast area. Additionally, this property will be the only Marriottaffiliated hotel in New Orleans that will feature a rooftop bar with stunning views from the Mercedes-Benz Superdome to the Mississippi River. This one-of-a-kind hotel is scheduled to open its doors by December 1 and will start selling rooms online after Feb. 20, 2018. Additionally, a grand opening celebration is tentatively scheduled for early January 2018.

PHOTOS COURTESY OF MARRIOTT HOTELS

urther enhancing the continued redevelopment of Canal Street stretching from downtown New Orleans to Mid-City, NewcrestImage announced its plans to renovate the former ODECO Building, named for its original tenant, the Ocean Drilling & Exploration Company. The ODECO Building will be transformed into the first blended brand SpringHill and TownePlace Suites with a rooftop bar and patio, Vue. The official name of the new hotel is SpringHill & TownePlace Suites New Orleans Downtown/Canal Street. The hotel has a rich history with ties to oil and gas industry icons the Laborde family. Alden J. “Doc” Laborde helped establish the modern-day energy industry by creating one of the first submersible rigs and setting up two offshore companies that used the innovative technology. His business, ODECO, was originally housed in the soon-tobe hotel located at 1600 Canal Street. At the time of the ODECO Building’s construction in the 1960s, there was a significant demand for office space to accommodate the city’s expanding oil and gas industry. Until 1993, ODECO leased the upper floors of the building, which was designed in the 1960s by New Orleans architect Paul Mouton, as office space. As a result, this blended brand hotel will feature a variety of unique room designs and layouts. Two separate brands (SpringHill Suites and TownePlace Suites) will be housed in this high-rise building. Unlike any other location, they will be

For more information, visit the hotel websites, www.marriott.com/hotels/travel/msysi-springhill-suites-new-orleans-downtown-canalstreet and www.marriott.com/hotels/travel/msytd-towneplace-suites-new-orleans-downtown-canal-street, or Vue’s website, vuenola.com.

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

LIFESTYLE

Fighting Ageism in the Workplace THE RACE TO KEEP A YOUTHFUL APPEARANCE

ith the competitive nature of today’s fast-paced society, men are increasingly feeling the pressure to look younger to combat ageism. The American Society of Plastic Surgeons reports that there has been an almost 20 percent increase in men going under the plastic surgeon’s knife, laser or needle since 2010, and the number of men receiving Botox specifically has increased by 27 percent. Men are turning to plastic surgery to help boost their self-esteem and better compete with their younger counterparts. For the past few years, consultations with male patients have been really interesting to observe and learn the motivation behind their cosmetic enhancements. Trends in plastic surgery continue to evolve, and lately I have noticed an uptick in men requesting injectables that spans most age groups. The workplace has been a consistent factor across the board as to why they seek our services. Male patients say that a quick injection boosts their confidence and helps them stay competitive in the workplace. The American Society of Plastic Surgeons’ national statistics are really reflective of the Texas and Houston markets; and I have seen some correlation between the increasing number of male clients seeking minimally invasive procedures and competitiveness.

Most men are not well-versed in specific products and may not know to ask for Botox, Juvéderm or Kybella by name when they call, but they know they want to improve certain features and rely on our expertise to get them to their end goal. I find that celebrity influence can definitely play a significant role, especially with women, but most men simply want to appear as the best version of themselves, which usually means they want to look like they did 10 years ago. We always encourage patients to bring “wish pics” to ensure that everyone is on the same page and their expectations are managed throughout the entire process.

Trends in plastic surgery continue to evolve, and lately I have noticed an uptick in men requesting injectables that spans most age groups 64

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

This trend has really transcended age and profession. Traditionally, around age 40 is when we see men start to become more concerned with aging and seek viable options for ways to make a change. Now we are seeing men of all ages coming to us with different concerns, whether it’s based on a specific feature, preventive care or simply treating current signs of aging. We tend to see men of all professions looking to make improvements — small or large. Whether he’s a lawyer, oil and gas executive or a medical sales representative, looking younger seems to have some sort of prestige attached to it. Other treatments on the rise for men that require more time are liposuction, eyelid surgery, neck lifts, chest sculpting for gynecomastia and post-weight loss body contouring. Many of the noninvasive procedures we offer can be done in less than an hour with minimal recovery time, two of the dominant concerns among male clients. The most common noninvasive procedures male patients request are Botox, Juvéderm, Kybella, and CoolSculpting. Botox has become the most widely used cosmetic injectable in the world and is a popular wrinkle treatment that can smooth out crow’s-feet, frown lines and forehead wrinkles for a more youthful, well-rested appearance. Fillers such as Juvéderm can fill in lost facial volume and minimize deep creases in the face for a smoother, younger result. Kybella,

279PHOTO/BIGSTOCK.COM, STYLE-PHOTOGRAPHS/BIGSTOCK.COM

By: Dr. Bob Basu

a nonsurgical treatment, can break down fat to eliminate the double chin and sculpt the jawline. Also noninvasive, CoolSculpting delivers controlled cooling to target fat cells in the area being treated. This process causes the fat cells to crystallize and then die, helping reduce stubborn fat.

Other treatments on the rise for men that require more time are liposuction, eyelid surgery, neck lifts, chest sculpting for gynecomastia and post-weight loss body contouring

Having a location close to downtown Houston in the Texas Medical Center makes it convenient for busy professionals to stop by during their lunch break for a quick injection; and they can be back in the office without breaking a sweat. Men typically demonstrate less concern with an aesthetic routine; they soon come to find out that if they want to maintain the results, they must follow the recommended treatment plan. The best part of my job is when I notice a drastic boost in patients’ confidence at their follow-up appointments or even while talking to them on the phone. This confidence usually translates into the workplace and their social life. It is extremely gratifying to witness how noninvasive procedures can still dramatically change lives.

About the author: Dr. Bob Basu is an American Board of Plastic Surgery certified plastic surgeon and has performed more than 11,000 cosmetic surgery procedures. He is ranked in the top 2 percent of cosmetic plastic surgeons in the nation by RealSelf. For more information or to schedule a consultation, please call 713-799-2278 or visit www.basuplasticsurgery.com.

NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

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SOCIAL

Houston Energy Day 2017

PHOTOS COURTESY OF SHALE

SHALE participated in the 2017 Houston Energy Day festival on Oct. 21 at Sam Houston Park. The event hosted students and families from all over Houston and the surrounding areas, promoting the importance of STEM education programs. Children of all ages learned new things, participated in arts and crafts activities, watched demonstrations and more. The 2017 event was the highest attended in the history of Houston Energy Day, with more than 30,000 attendees!

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NOVEMBER/DECEMBER 2017  SHALE MAGAZINE

SOCIAL

Houston Wildcatters Award Presented to Oasis Petroleum SHALE joined the Texas Alliance of Energy Producers to present Oasis Petroleum Chairman and CEO Tommy Nusz and President and COO Taylor Reid with the Houston Wildcatters Award on Oct. 5 at the Petroleum Club of Houston. Attendees enjoyed a networking reception followed by dinner and the award presentation.

SHALE MAGAZINE  NOVEMBER/DECEMBER 2017

PHOTOS COURTESY OF SHALE

On Oct. 11, SHALE attended a tour of Tejas Tubular Products Inc. (of Houston) hosted by Texas Railroad Commissioner Ryan Sitton. The event included a special visit from Linda McMahon, Administrator of the U.S. Small Business Administration (SBA). Attendees were shown the damage to the facility sustained during Hurricane Harvey. The event was intended to showcase how the SBA assists small-business owners like Maximo Tejeda, founder of Tejas Tubular. The owner says he’s very appreciative of the SBA’s assistance programs, as his business lost revenue when operations were down and his facility still needs many repairs. In the aftermath of the storm, and in conjunction with the energy industry downturn, Tejeda says the only thing he can do is “keep fighting.”

PHOTOS COURTESY OF SHALE

SBA Administrator Tours Houston’s Tejas Tubular Following Hurricane Harvey

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

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JAN/FEB 2016

MAR/APR 2017

OIL & GAS BUSINESS MAGAZINE

MISDIRECTED ENERGY ON CLIMATE CHANGE

SHATTERING THE OIL AND GLASS CEILING

WOMEN IN ENERGY & BUSINESS

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

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

CULTURE OF INNOVATION:

SOUTH AFRICAN RESTAURANT IN HOUSTON WITH PROGRESSIVE CUISINE

ATV ADVENTURE TAKES FLIGHT NATIONAL SAFE DIGGING MONTH

CITIZENS FOR LNG & ENERGY DAY A GREAT SUCCESS!

DOUG SUTTLES WITH ENCANA

THE BLM METHANE RULE WAS FLAWED FROM THE START

WAYNE CHRISTIAN A GOOD MAN FOR A CHALLENGING TIME

THE INFLUENTIAL LEADER:

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MAY/JUNE 2017

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

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

WOMEN IN BUSINESS

EXPERIENCE THE OLD WEST IN SAN ANTONIO

ANNUAL WOMEN’S EDITION

SHANA ROBINSON HEALTHY SOLUTIONS FOR TEXANS

CONFIDENT, COMPETENT AND CREDIBLE

OSHA

MAKE 2017 HEALTHY

ENFORCER OR YOUR FREE SAFETY COACH?

SAPA AND WEN TEAM UP

DONALD TRUMP IS KEEPING CAMPAIGN PROMISES TO THE ENERGY INDUSTRY

OIL & GAS BUSINESS MAGAZINE

NAVIGATING NEW TERRITORY: BLUEBONNET DISTRIBUTING

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

JOHN WALKER SCOUTING FOR SUCCESS

MAY/JUNE 2016

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

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INTERNATIONAL BUSINESS ISSUE

A NEW ERA

SHARON SPURLIN

SPREAD THE WORD: AMERICAN ENERGY IS INNOVATIVE

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2016

YOUNG WOMEN ENERGIZED TARGETING HIGH SCHOOL STUDENTS

JULY/AUGUST 2017

TRUMP MEANS BUSINESS

INTERNATIONAL TRAVELER’S CHECKLIST

WITH ENERVEST

THE HUMANIST: ALEX EPSTEIN | DISPUTE RESOLUTION IN LATIN AMERICA

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OTHER SERVICES OFFERED BY SHALE MAGAZINE Branding / Web Production / Search Engine Optimization / Ad Design / Social Media Video Production / Public Relations / Email Marketing / Campaign Strategy / Direct Mail SHALE Magazine is a statewide industry publication that showcases the significance of the South Texas petroleum and energy market. SHALE’s mission is to promote economic growth and business opportunities that connect regional businesses with oil and gas companies. The publication supports market growth through promoting industry education NOVEMBER/DECEMBER 2017 affected.  SHALE MAGAZINE and policy, and its content includes particular insight into the development of the Eagle Ford Shale and Permian Basin plays and the businesses

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SHALE MAGAZINE  NOVEMBER/DECEMBER 2017