Texas Oil & Gas Magazine Issue 1

Page 1

February 2013



February 2013 5 Staff

Cover Story

6 Eric Armstrong, A Dynamic Weld Shop Foreman 22 Building Excellence in Eagle Ford Shale 26 Standing For, Believing in, and Giving Back 28 Hammons Education Leadership Programs, Inc 32 Pro Safety Chemical, Making a Difference in the Completion Process 34 Careers in the Oil Filed: Mud Engineering

30 Kalmar RT Center is in a Class of its Own

36 A Journeyman’s Journey 39 Who’s in the Driver’s Seat? 41 Southwest Torque Tools & TorcUP 42 DUG Eagle Ford Shale Conference – The Roundtable Discussion

Featured Stories 8

Eagle Ford Shale Impacts Local Small Business

12 MANCAVE 16 Eagle Ford Shale...The Biggest Oilfield Boom in 40 Years

46 Halliburton Uses Clean-Burning U.S. Natural Gas

44 Chesapeake Water Use in Barnett

52 KalMar Rough Terrain Container Handlers

50 Statoil - New Rig Concept to Improve Recovery

53 Breaking Through the “Glass Ceiling” Publisher

Derald Payne Beauchamp Harvey Publisher Jennifer Harvey-Larivey Lead Journalist Daniel Garza Graphic Design

58 Classifieds

Advertising

Lisa Rodriguez-Medrano 361.249.0073 Nerisa Zavala 361.455.8543 Tabitha Hogg 361.443.8303 Texas Oil & Gas Magazine is published monthly. Subscription Rates: 1 year (12 issues), US $99; 2 years (24 issues), US $159. Single copies are US $15 (prepayment required). Advertising rates furnished upon request. POSTMASTER: Send address changes to Texas Oil & Gas Magazine, P.O. Box 8258, Corpus Christi, TX 78468. Telephone: 361.389.0496 Copyright © Texas Oil & Gas Magazine 2013. Texas Oil & Gas Magazine reserves all rights to editorial matter in this magazine. No article maybe reproduced or transmitted in whole or in parts by any means without permission of the publisher. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $25,000 for violations. While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions, or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, affiliates, or colleagues. Visit us at www.txoilmag.com

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Texas Oil & Gas Magazine - Staff

Lisa Rodriguez-Medrano, Nerisa Zavala, Jennifer Harvey-Larivey, Tabitha Hogg (L to R) It has been a great journey to finally get to see our hard work come to fruition. I would like to thank each of my staff members for their dedication and for the extremely long hours they have put into each project. Lisa Rodriguez-Medrano has been my anchor as the Director of Sales & Marketing to make sure that our team takes care of every detail for our partners in the Oilfield. I would like to thank Nerisa Zavala, our events coordinator/sales consultant for her hard work and hours to make our upcoming “Black Gold” Launch Party at Katz21 a huge success. Our newest member, Tabitha Hogg brings a great deal of experience in marketing and sales and is considered one of our best assets. I am most proud of my daughter & lead journalist, Jennifer, for her love & spirit for the oil & gas industry. I can remember the days that she would beg me to take her to the machine shop as I worked on a “hot job”. You will hear her say when she walks into a shop…”this smells like home” when to a regular person it smells like burnt oil. It’s nice to see her return to the industry as her first major in college was industrial engineering. As a bright young woman, she has spent time researching & getting acquainted with our partners to really give you a thorough report on the developments and advances there are in the field. You will enjoy the articles that she has written with such creativity! We are excited to announce the Texas Oil & Gas Magazine’s Eagle Ford Shale Conference & Expo, May 1st - 2nd, 2013. This is a great opportunity to hear the Major Oil & Gas Companies share the latest news about the developments in the shale along with legislative & infrastructure changes in those communities. It will be the #1 place to network and interact with the oil & gas companies at this premiere conference & expo. For more information about sponsorships and exhibiting, contact us at txogsales@gmail.com. Texas Oil & Gas Magazine is the premiere publication that is a platform for every person and company to share the latest news in the Texas Oil Plays and internationally, technological advances, social responsibility, and career opportunities. We look forward to being a part of your family and company for many years to come. Enjoy this first issue & I hope to see you at Katz21 at our launch party! Sincerely, Derald Payne Beauchamp Harvey, Publisher/CEO

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“...being a leader is not everyone’s calling, but for Mr. Armstrong, it is...”

Eric Armstrong, A Dynamic Weld Shop Foreman

Written by Nerisa Zavala

Sitting at a local restaurant with just enough time to do a short interview, Eric Armstrong walks in with his Dynamic Oilfield Services shirt and jeans that are smudged with a little oil and sweat from the morning’s work. He sits down and orders a tea and some appetizers as he is waiting for his crew to arrive for lunch. This just shows the camaraderie this foreman has with his team. Eric Armstrong is a Weld Forman for Dynamic Oilfield Services which has such services as building flare stacks and pressure washers, equipment services such as rig up and rig downs, and of course your basic oil service needs. Mr. Armstrong has been with Dynamic Oilfield Services since it was established in August of 2011. But Mr. Armstrong is no stranger to the oilfield industry he has worked in it for the last 10 years and pretty much grew up in it. Since Dynamic Oilfield Services is a service company, Mr. Armstrong feels that one can be able to learn the industry as well as its processes. As the foreman of the rig, Mr. Armstrong likes to think of it as a cartoon that he gets to bring to life because it all starts with a drawing. So until you put that last piece of the puzzle it’s hard for others to see. He will go over the material list, the schematics of the rig, and explain to the welders how he wants it to be. As the leader of his shop, he is always available to his employees and is easy to hear their concerns when it comes to a job they are working on. Mr. Armstrong believes that your employees need to be comfortable coming to you with their questions and you should always be approachable as a foreman. He describes that every rig has their own way of doing things and from that you can learn certain tricks that can help you survive the industry. It’s a process of on-the-job learning. Don’t let the oilfield scare you, if you are interested in joining the industry, you will always have someone there that will show you the ropes. Whenever Mr. Armstrong goes out to a rig, he never has a daily routine because

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Eric Armstrong the oilfield is so unpredictable that you never know what will happen. It all depends on the situation that you’re in and you just need to take things as they come. Being flexible is key to being successful as an oilfield worker. No matter how many situations happen on the rigs you will never know it all because the oil industry is always changing. There is always new equipment coming out or new techniques to the process of it all. The innovative technology that is available to the industry has really changed the way things are handled and processed. Family time is always difficult to balance. When it comes to home life he is so used being out on the rigs it’s almost like a second home. As any oilfield family knows this is the challenge of family life. The time spent with family is a precious moment because of the time being spent away can be extensive. Different jobs require different time allocations and depending on the site and length of the job determine the amount of time away from home. Sites are throughout the Eagle Ford Shale Area and others such as Bryan, College Station, Midland, Odessa and Austin just to name a few. Shifts on the job can range from 12 hours up to 24 hours and being on-call also is taken into account. Mr. Armstrong stated that a standard on call shift was 12am-12pm and he gets up to 40 calls in one night. He said one of the challenges of being a foreman is that you can’t really plan a vacation because there is always that hot shot job that needs to be attended to. But that doesn’t stop his passion for the industry. He certainly loves what he does because he’s good at it…being a leader is not everyone’s call but for Mr. Armstrong it is…

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Eagle Ford Shale Impacts Local Small Business Written by Jennifer Larivey

DP Machine and Fabrication, located on 8276 Leopard Street Corpus Christi, Texas is where you want to take your heavy industrial/oilfield work to. David C. Heasley, Jr., owner is proud to stand behind their business philosophy which is we build the best equipment possible and deliver it at a fair price. He is proud to put his name on every piece of work that leaves DP Machine and Fabrication. David has been in the oilfield industry for over 21 years. He is from the South Texas area and has learned to work hard and be proud of his roots. At 16 years old, he worked for Kenny B’s in Robstown as a dishwasher for 2 weeks and realized he wanted to do something else. After graduating from Robstown High School, he began working for a small machine shop, Quality Machine. After 2 years, he gained some knowledge and thought he was a welder. He decided to obtain a position as a welder for Paul’s Fabrication and Machine Works in Corpus Christi, and failed the welding test. Despite that, Mr. Paul Richardson, the owner, hired him anyways. Paul taught David to be a welder and to do it right. He told him, “Make it pretty. No bad or sloppy welds.” He then began working in the local refineries and was making a very good living. He stayed in the refinery environment for 10 years and worked his way up to becoming the operations supervisor. But he wasn’t satisfied with what he was doing and he knew it was time for a change. David had a great vision and with small beginnings, DP Machine & Fabrication began in his grandfather’s barn. With the help of his father, David C. Heasley, Sr, he was able to start his shop and survive some hard beginnings. He designed the chemical mix plant and built two of them at the barn/ shop. Due to the success of those two, he received orders for two more. When he ran out of space, he moved his shop from his grandfather’s barn to his current location. barn to his current location.

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“David had a great vision

and from humble beginnings, DP Machine & Fabrication began in his grandfather’s barn.”

The company is proud to stand behind its work and they are a heavy industrial, custom fabrication and machine shop specializing in building chemical mix plants and open top tanks used in the oilfield for mixing gels for coil tubing and completion and many other oilfield applications. David is the first to say that, “We’re not the cheapest but we are the Best.” The Eagle Ford Shale play has boosted DP Machine & Fabrication’s business. They can build any equipment that the industry needs. David is optimistic about the future of his business and the growth from the EFS play. David is a true entrepreneur and has a spirit of living life to the fullest. He is a great steward of the community and has recently raised funds for Toys for Tots and other organizations. He also helps an organization called Hammon’s Education Leadership Program “HELP” by mentoring atrisk students and showing them how if you work hard you can be successful. David has a passion for his work and it truly shows when you meet him. He welcomes every challenge and knows that every customer will leave his shop satisfied with the highest quality of work. David says, “The harder I work, the luckier I get.

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Colin Kieshnick, Odem Ranch

How many times do we see those awesome hunting pictures of our friends on Facebook and think “Wow, I want to shoot a buck like that!” Well at the South Texas Ranch, with 200,000 acres and low fence, free-range hunting, it’s a hunter’s playground. One of our clients takes his customers out to hunt on the ranch because it’s an amazing adventure. His collection of stories of their adventures include a day when they were on their last morning of hunting and one of his customers spotted a mature deer , which took 3 shots before he actually killed him. It ended up being a 150 inch deer. The largest deer they shot this past season was a 181 inch deer. One of the key elements of this great ranch is the deer genetics are pure. The environment is natural and the deer are usually not seen more than once with the vast amount of land they are on. The land is a special land with fossil finds like dinosaur eggs, arrow heads, lots of flagstone rock, and the surroundings are left very naturalistic which makes the land enjoyable for hunting. There have been many mountain lions and bears spotted in the area as well. There is no other hunting environment like this South Texas Ranch and that’s why it’s the best kept secret in Texas!

John Walker Burch, Three Rivers First Kill

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Oscar Lopez & Randy Garcia South Texas Ranch

Tabitha Hogg, Land Cut


Sponsored By

John Richard & Mario Leal Padre Island

Submit your photos to txogsales@gmail.com, subject line: MANCAVE.

Ebb Alllemand, South Texas Ranch

Lilyana & Chris Guzman Pearson Hills Ranch

Chris Graves

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Your Jokes!

A couple in their nineties are both having problems remembering things. During a check-up, the doctor tells them that they’re physically okay, but they might want to start writing things down to help them remember. Later that night, while watching TV the old man gets up from his chair, “Want anything while I’m in the kitchen?” he asks. “Will you get me a bowl of ice cream?” “Sure.” “Don’t you think you should write it down so you can remember it?” she asks. “No, I can remember it.” “Well, I’d like some strawberries on top, too. Maybe you should write it down, so as not to forget it?” He says, “I can remember that. You want a bowl of ice cream with strawberries.” “I’d also like whipped cream. I’m certain you’ll forget that, write it down?” she asks. Irritated, he says, “I don’t need to write it down, I can remember it! Ice cream with strawberries and whipped cream—I got it, for goodness sake!” Then he toddles into the kitchen. After about 20 minutes, the old man returns from the kitchen and hands his wife a plate of bacon and eggs. She stares at the plate for a moment… “Where’s my toast?” Email your jokes for next month’s issue at txogsales@gmail.com Subject line: Jokes

Lilyana Guzman Pearson Hills Ranch

Shane Polansky & Trey Clement 40 Miles past Packery Channel

About Our Sponsor

Pro Safety Chemicals provides chemical solutions to the oil and gas industry. They specialize in completions, coiled tubing, drilling, chemical mixing plants, filter pods, and chemical trailers. They’re located at 2544 Hwy 97 West, Floresville, TX 78114. Contact them at 830.393.2010 Serving the Eagle Ford and Permian Basin

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The Eagle-Ford Shale...The Biggest Oilfield Boom in the Past

40Years

Written by Nolan Hart www.eaglefordshaleblog.com

If you live in Texas, then you have surely heard the term “Eagle Ford Shale” being used. It is the Biggest Oilfield find in the past 40 years and it is not the next big thing but it is the “RIGHT NOW” Big thing. The Eagle Ford shale is not located in one place, although it is named for the small community of Eagle Ford, located near Dallas. There the shale outcrops, or appears on the surface as clay soil. Far to the south, running in an arc that roughly follows the outline of the Gulf Coast, starting from East Texas and going all all the way to near Eagle Pass, the rock formation is found deep below the surface. Shale is a sedimentary rock that is rich in organic material called kerogen. As this organic material decays complex hydrocarbons, such as oil and gas are formed. The Eagle Ford shale is the source rock for other oil and gas bearing zones in South Texas, such as the Austin Chalk formation, which lies above it. It was formed during the late Cretaceous geologic period, approximately 85 to 95 million years ago. It lies at a depth of between 2500 feet at the edge of the hill country to over 15,000 feet deep in southern LaSalle, McMullen, Live Oak, Bee, DeWitt and LaVaca counties. The area of oil and gas activity is over forty miles wide and four hundred miles long, spanning an area from near Mexico to East Texas. It is at the deeper or more mature end of the formation where pressures are higher and gas volumes greater. The shallower zones in the central and upper part of the play contain more liquids such as condensate and crude oil. The Eagle Ford formation is over 330 feet thick in some areas. The Eagle Ford shale was not recognized as an economically viable oil and gas reservoir until recently.

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Now, because of a technology called horizontal drilling, which allows for a hole to be drilled across shales like the Eagle Ford for up to a mile or more, and because of advances in hydraulic fracturing, which uses high pressure liquid to bust apart the rock strata, oil and gas can now be extracted easily. The huge potential that the Eagle Ford brings to our economy is huge. EOG Resources has estimated over 900,000,000 or 900 MMboe (nine hundred million barrels equivalent), net after royalty, in the 550,000 acres they hold in the oil and condensate windows. (Update, March 12, 2012: EOG revised estimates of potential reserves upward to 1.6 billion barrels of oil (net after royalty, NAR) in the acreage they hold.) As this is only a small part of the huge play, the Eagle Ford shale may indeed hold billions of barrels of recoverable oil and trillions of cubic feet of natural gas. At the Developing Unconventional Gas convention in San Antonio, Pioneer Natural Resources offered a presentation suggesting that the amount of oil and natural gas liquids in the Eagle Ford shale could be as much as 25 billion barrels and the amount of natural gas at 150 trillion cubic feet. That amount would equal more than known reserves in Alaska and in Federal offshore areas combined. Most of the major players in the Eagle Ford shale are focusing on the oil window and wet gas window of the play. This is mostly due to the depressed price of natural gas and the high price of oil. Since the 1970′s geologists have known that the Eagle Ford shale contained high volumes of oil and gas throughout a wide geographic area stretching from East Texas to Mexico. It was not thought of as any kind of resource that could be productive since a well that was drilled in the Eagle Ford shale would quickly deplete down to nothing. There was not

enough porosity or natural permeability to allow for much oil or natural gas from the couple hundred feet of exposed formation to seep out. A few years ago companies like Halliburton, Weatherford, Baker Hughes and Schlumberger began to perfect horizontal drilling assemblies, along with accurate down-hole direction sensors called MWD or “measure while drilling” instruments, to guide these drilling assemblies. Starting in the 1990′s in the Barnett shale near Ft. Worth these two technologies were applied and it was proven that shale could be a productive source of oil and natural gas. Mud motors, which consist of a rotor and stator unit and a bit that are turned by the force of drilling fluid, are placed at the end of the drill string. The whole drill string, as hard as the steel drill pipe is, can actually turn ninety degrees to vertical and drill a horizontal oil or gas well. Without any rotary motion from above, the drill pipe can remain stationary as the mud motor all the way down at the bottom of the well turns by the force of the drilling fluid and thereby turns the drill bit, eating away at the Eagle Ford shale until several thousand feet of horizontal lateral is drilled. This long lateral (horizontal section of the well) is later hydraulically fractured using very high pressure fluids, by a company such as Halliburton or Schlumberger. Thousands of gallons of water are used in this process and in this notoriously dry part of the country that will be one of the challenges to development. Far above the Eagle Ford shale lays the freshwater Carrizo – Wilcox aquifer, which is currently being used for frac water, possibly depleting this valuable resource. (Recent studies conducted by Texas A&M University have concluded that enough water exists in the Carrizo Wilcox aquifer to develop the Eagle Ford Shale, and support agriculture and other water uses.) The breakeven point for making a profit from Eagle Ford shale gas is about $3.88 per Million BTU’s, compared to $5.19 in the Barnett shale.

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Part of the reason is that there are less impediments to drilling in sparsely populated South Texas. Also, the Eagle Ford shale is proving to hold far greater quantities of valuable liquids than the Barnett, Marcellus or Haynesville shales. Break even point for Eagle Ford shale oil is around $50 a barrel, compared to $75 for deep water Gulf of Mexico oil. Due to lower natural gas prices companies are now focusing more on the upper and central oil and liquids laden section of the Eagle Ford. Since the price of oil is high due to international demand, this part of the Eagle Ford shale play is where much of the new drilling activity will likely take place in the coming years. Petrohawk Energy (A BHP Billiton company) has identified over 2,700 potential well locations on the more than 330,000 acres they have leased. . Pioneer Natural Resources has over 310,000 acres under lease and a host of other companies from EOG Resources to ConocoPhillips have similar amounts of acreage leased. EOG Resources, a major player in the Barnett shale, has leased up over a half million acres, mostly in the oil window. They have plans to drill between 2,000 and 3,000 wells. The significance of the Eagle Ford shale has not gone unnoticed by international companies. China’s state owned oil company, CNOOC, has partnered with Chesapeake Energy in the play. Australian companies are even getting in on the action with Antares Energy, BHP Billition, (acquired Petrohawk Energy), Texon Petroleum, all Aussie firms, active in the play. The number of wells eventually drilled in the new oil and gas discovery could be in the tens of thousands. In the Barnett shale play, near Dallas and Ft. Worth, the economy has seen massive growth, which the Fort Worth Chamber of Commerce once compared to having ten Boeing Aircraft plants plunked

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down on the prairie overnight. Jobs were created in record numbers and as royalty payments of billions of dollars poured into the hands of landowners, this money began to circulate through the economy. The two shale plays have a lot of similarities, however the economy and population density of South Texas differ greatly from that of North Texas. How the flow of money that will occur over the next decade will affect the area remains to be seen. In much of the region owners of large ranches will be the the recipients of the oil and gas royalties. Undoubtedly they will spend some of the money on ranch improvements such as fences, ponds, barns, etc, as we are already seeing in many South Texas counties, and this will create a few local jobs, but much of the revenue from Eagle Ford shale wells will end up being spent elsewhere. This will benefit the Texas economy as a whole. Oil and gas service companies in existing hubs like Alice and Freer will hire more workers and a few companies will open satellite offices in smaller towns such as Tilden, and Cotulla, near the production. For county governments, tax coffers will swell and this will lead to new schools and road construction. The effects on the economy of South Texas and the rest of the state will nonetheless be dramatic. (Update: Only a year after a record budget deficit, Texas may see a budget surplus in 2013, thanks to tax revenue from the Eagle Ford Shale.) Texas Railroad Commissioner David Porter stated that “The Eagle Ford shale has the potential to be the single most significant economic development in our state’s history.” Pioneer Natural Resources Company’s CEO Scott Sheffield was quoted as saying “when you have a 25 billion barrel play in south Texas, just the amount from severance taxes on oil and condensate and NGLs – the amount of ad valorem taxes that goes into hospitals and schools – that’s a tremendous boom to the economy of south Texas,”

If you live in this area of Texas you are already witnessing a boom such as you may have never imagined in your wildest dreams. Many small towns are starting to grow again, lots of farmers and ranchers who own land with mineral rights are becoming rich overnight, and there are good, high paying jobs being created. (Since 2008, an estimated 24,600 jobs were created in Texas by the Eagle Ford shale play.) This is not some kind of pipe dream, it is real and it is happening right now. All the evidence from well logs, seismic surveys and new well production figures point to one of the largest oil and gas finds in the past half century. The economic effects are already being seen. All you have to do to notice is look at all the cars of landmen parked at the courthouses and the flow of oilfield traffic up and down the roads. Anywhere from $200 to $8000 an acre for Eagle Ford shale leases is flowing into the hands of landowners and they are starting to spend it. Booms like these have their upside and their downside, such as much more traffic (and accidents) on the roads. What makes this oil and gas boom dramatically different from others that the region has seen is the widespread nature of the Eagle Ford shale. While not every well drilled will be productive, with shale plays like this one, the odds are much better. Unlike the relatively small fields and pockets of oil and gas that exploration companies have chased over the years, this field is all over, underneath a very wide swath of country, all the way from Southeast Texas to Mexico. The full implications of this massive oil and gas field have not yet been reported by the mainstream media in Texas but it will be major news very soon. How productive will the play be? Petrohawk Vice President Richard Stoneburner had this to say in a July, 2009 meeting about the Eagle Ford in their McMullen and LaSalle county leasehold area: “The gas-in-place numbers are “so exceptional,” because the shale is

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some 250 feet thick over a 50-by-25-mile swath and is 100% net pay.” It should be noted that Stoneburner is talking only about their focus area, not the entire Eagle Ford shale play. How long will the boom last? Past oil and gas booms, such as the Austin Chalk play, which promised to make the region the next Saudi Arabia, were an eventual letdown as initially high production rates fell to only a few barrels per day. One oil company CEO recently stated that he estimates Eagle Ford shale wells to produce in the eight to ten year range. It is true that unlike those drilled in sandstone oil reservoirs, shale oil plays like this one tend to make most of the production in the first few years. EOG investor reports show Eagle Ford shale wells with production curves over 20 years, with much of the production coming in the first four years. What this play has going for it is that is spans such a wide area and companies are able to drill essentially “risk free”oil wells in a time when bankers are reluctant to lend any oil company money for exploratory drilling. With the vast amount of infill drilling that will occur as the play is exploited we may see several decades worth of production. Some companies are already experimenting with well spacing as low as 50 acres, which could double the amount of wells to be drilled in the play. Add to that the potential for future secondary recovery efforts and more laterals at different depths in the thickest part of the shale and the potential is enormous. Chances are, most of those who are reading this article will be dead and gone when the last Eagle Ford shale well is drilled. This is the most exciting thing to ever happen to the economy of South Texas and the state in general. The next few years will be a wild and crazy ride as the Eagle Ford shale is developed.

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Source: US Energy Information Administration

Building Excellence in Eagle Ford Shale Written by Jennifer Larivey

In August 2012, oil services company Wood Group PSN welcomed 400 new people to its team in the USA. Through the acquisition of Duval Lease Service and Freer Iron Works (Duval), Wood Group PSN increased its footprint in the Eagle Ford shale region of Texas. Wood Group Duval, as the company is now known, provides maintenance, installation and fabrication services in the Eagle Ford shale region and production facilities support services to onshore assets in the region located in South Texas. The acquisition of Duval by Wood Group PSN creates opportunities for the company to establish a robust platform for growth in this region and increases the company’s exposure to the U.S. onshore unconventional oil & gas markets - all underpinned by the core values which place emphasis on safety, employees, customers and the local communities where they operate. The existing management team will continue to lead the business with Rene Casas as president of Wood Group Duval. One particular success story for Wood Group Duval is that of the Eagle Ford Shale Project. The company was selected by a major energy exploration and production company in the Eagle Ford area to deliver construction services, including lease crews, welders, backhoes, etc. and field foremen, to provide great leadership, to ensure that the startup of the operator’s new central facility was completed safely and in a short timeframe.

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There were a number of challenges to this project, namely the six-week timeframe in which to up-man for the project and the extreme weather conditions being faced by the Wood Group Duval teams working outside in summertime temperatures registering above 100 degrees Fahrenheit. Wood Group Duval’s Approach Wood Group Duval immediately focused on bringing the right personnel with the right skills on to the project to deliver the workscope necessary in the time schedule required. The company began by transferring available personnel from its Freer and Zapata locations in South Texas and then embarked on a new hire program, in which they recruited and trained new employees specifically to work on the project. The health and safety of Wood Group Duval’s employees - who were working in extreme heat - was of primary importance. To ensure the wellbeing of its employees the company introduced compulsory breaks, cooling trailers and provided an unlimited supply of drinking water. They also delivered a training and awareness program highlighting the dangers of the heat and the potential consequences of working in such temperatures. All new hires were required to complete a two-week orientation that helped them acclimatize to the heat and operating environment.

WG Duval’s Achievements: The project was completed without a single injury to personnel (completely lost time incident-free). The work was completed on time in the sixweek timeframe. Wood Group Duval was awarded additional work as a result of the successful completion of this project. Wood Group Duval provides construction services to oil and gas operating companies in South Texas and the Eagle Ford shale region. The company employs 400 people across four locations: Freer, Kenedy, Zapata, and Carrizo Springs, Texas. For more information about the projects and services offered by Wood Group Duval please contact: Arnold Alaniz, Area Manager, at 830.583.9606 or arnold.alaniz@woodgroup. com. Visit us at www.woodgroup-psn.com.

A comprehensive company safety program was also introduced to outline expectations with regards to safety and to help build a positive and safe culture among the workforce onsite. Weekly safety meetings were held where policies, processes, safety topics and real-life examples of positive safety behaviors were discussed and safety supervisors worked daily on the project to oversee safety processes and procedures.

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Standing For, Believing in, and Giving Back!

Written by Jennifer Larivey

Wood Group Duval has shown its presence in the Eagle Ford Shale and South Texas communities with a willingness to continuously give back. The company’s core values are at the heart of its business: Safety & Assurance, Relationships, Social Responsibility, People, Innovation, Financial Responsibility, and Integrity. These core values define Wood Group Duval and what the company believes in and stands for. Wood Group Duval has worked closely with major energy exploration and production companies in the Eagle Ford area on annual fundraising efforts and donations to the United Way. United Way is a worldwide leadership and support organization with a network of nearly 1,800 community-based United Ways in 45 countries and territories whose vision is a world where all individuals and families achieve their human potential through education, income stability and healthy lives. In addition, the company has worked to provide meals, maintenance and service, and donations to Sacred Heart Children’s Home in Laredo, Texas and South Texas Children’s Home in Pettus, Texas, in collaboration with one of its major clients. Some particular projects have included the organization of a children’s Christmas party, Easter Egg Hunt, the donation of computers and the construction of a new basketball court. Wood Group Duval has also been strong supporters of the Youth Rally, an annual fun day full of food, moonwalks, games and activities for underprivileged children in the area, as well as the Little League - providing meals for between 250-500 children over the season. The Stock Show is another event that the company enjoys participating in, donating time and financial support. It doesn’t stop there either. Every year, Wood Group Duval donates equipment and offers manpower

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A culture centered on family and care for one another is engrained from a leadership level...

services to set up generators to make the local Lonesome Dove Fest possible, and employees also actively participate in the Lonesome Dove Fest Auction. Also focused on creating opportunities for young people in the local community, Wood Group Duval offers up to four scholarships each year to assist high school seniors from the South Texas area with their educational ambitions. A culture centered on family and care for one another is engrained from a leadership level, supporting employees and the communities where they operate to prosper. Wood Group Duval believes in being socially responsible and making a positive difference to the communities where it operates. For more information about the projects and services offered by Wood Group Duval please contact:Arnold Alaniz, Area Manager, at 830.583.9606 or email him at arnold.alaniz@woodgroup.com. www.woodgroup-psn.com

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Hammons Education Leadership Programs, Inc.

How Can You Find the Job of Your Dreams...if You Don’t Know it Exists Ten students do pushups in a hot open gym, led by police instructors. They are then individually hustled through a firing range. Their senses are attacked by strobe lights, screams, and gunfire: their own personal warzone, where they have split seconds to interpret scenarios and decide whether or not to fire their gun. A dozen students explore Valero, on one of the three visits that comprise their top-to-bottom tour of the refinery. They don blue coats to enter the laboratory, where they are shown different products that are made from crude oil. They see the shipdocks, the blending area, engineering: tracing the path oil takes from its arrival to its departure. These are all HELP students, exploring the world of work hands-on by visiting these and dozens of other local businesses. HELP – Hammons Education Leadership Programs – is a young 501(c)3 nonprofit company dedicated to the career-mentoring of community youth. Since its inception, HELP has served over 400 individual students, including court-referred juveniles, people with disabilities, Workforce youth and students self-referred or counselor-referred. HELP’s motto is “How can you find the job of your dreams if you don’t even know it exists?” To this end, HELP consists of four major elements: (1) On Site Career Mentoring (OSCM), which takes students to local businesses to show them exciting careers; (2) Career Clubs, for which they place touch screen computers loaded with videos and pictures of jobsite trips in area schools and invite speakers to discuss their jobs with the students; (3) Second Chance Mentoring, in which juveniles on probation are shown career options, with the goal of reducing recidivism; and (4) clients referred by DARS for various services, including job placement and an individualized version of OSCM. HELP provides transportation, insurance, food, and evaluation of both the program and the efforts of each participant.

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On-Site Career Mentoring is the hallmark program of HELP. OSCM provides jobsite presentations by skilled practitioners in a variety of fields to assist the youth in exploring potential career options. Some of the career exposures HELP has developed include welding, electrician, pipefitter, scaffold-builder, plumber, nursing, and firefighting, among dozens more. The CCPD hosts “Cadet For a Day,” a program specially designed for HELP students that allows them to see the inner workings of the cadet training center, with exercises like physical training and nutrition, SWAT demonstration, and marksmanship instruction in the shooting range complete with good guys, bad guys, “hostages” and glue bullets. In short, HELP consists of a number of interlocking programs, all of which are based around one central theme – employment options are a great way to keep students involved in school. The goal of meaningful and rewarding employment can be part of the solution for these youth.

HELP would love to talk to you about having students come to your business to discover what you do hands-on. Please contact Dr. Ridge Hammons at (361)815-6122 if you are interested in helping prepare the next generation for the world of work.

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Kalmar RT Center is in a Class of its Own Written by Jennifer Larivey Kalmar RT Center, LLC is a subsidiary of Cargotec and is ISO Certified. Their headquarters include a five building campus on 13.6 acres located in Cibolo, Texas. Kalmar RT Center has approximately 150 employees. Kalmar RT Center has a vision to be the market leader in specialized material handling solutions. They have the most complete line of specialized container handling equipment and are the world’s only manufacturer of rough terrain reach stackers. Their products include the RT240- Rough Terrain Reach Stacker and RT022-Rough Terrain Telehandler. In 1999, Kalmar RT Center created the RT240 Rough Terrain Reach Stacker. By 2000, Kalmar RT Center won the US Army’s contract to produce the RT240. By 2001, the RT240 production deliveries began that July and by 2002 the 100th RT240 machine was delivered in August. In 2008 the decision to move their production from Sweden to the United States happened and by August 2009, RT240 production began at the current site in Cibolo, Texas. In 2011, Kalmar RT won the contract to produce the RT022 Telehandler for the US Military. Cargotec honored Kalmar RT Center as the 2011 “Business Unit of the Year”. Just recently on October 15, 2012, at the Hart Energy DUG Eagle Ford Shale Conference, Kalmar RT Center announced a press release that the initially exclusive RT240 Rough Terrain Reach Stacker and RT022 Telehandler would now be available to the commercial sector. These once produced exclusively for the United States Armed Forces would now be available for purchase. The Kalmar RT240 Rough Terrain Stacker is capable of handling 20 foot and 40 foot ISO containers across virtually any landscape. It is the only reach stacker capable of working in unimproved ground conditions and harsh environments. It has application versatility by the availability of fork and sling lift attachments. The lift capacity is up to 56,000 pounds. The RT240 is capable of driving up and down 27% slopes at lift capacity. It is easy to maneuver in close quarters due to electronic steering

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“They have the most complete line of specialized container handling equipment and are the world’s only manufacturer of rough terrain reach stackers.” system along with 2- and 4- wheel drive and 2- and 4- wheel steering. Crab steering allows the driver to maneuver diagonally. In less than half an hour, the operator can prepare the machine for loading onto a trailer, railway car, ship, or truck with no outside concrete. On smooth ground it can achieve transport speeds of up to 15 mph loaded and 23 mph empty. The RT240 has been tested by the military for 11 years in the harshest environments. It is ergonomically designed with a climate controlled cab. Kalmar RT240 is easily maintained by Kalmar employees. The Kalmar RT022 Light Capability Rough Terrain Forklift maneuvers easily into and out of ISO containers. It has a hydraulic fork positioning and side-shifting carriage with a 5,000 pound lift capacity that means you can load and unload containers, railcars, and ground support supplies with ease. It has a 36” fording capability, 45% grade ability, and a travel speed of 20 mph. It is ergonomically designed and has a climate controlled cab. These were both initially designed and produced for the United States military and are now available for purchase to companies internationally, visit KalmarRT.com.

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Pro Safety Chemical is Making a Difference in the Completion Process Written by Jennifer Larivey

Pro Safety Chemical is a new company that started March 2012, and they hit the ground running and have had such an unexpected amount of growth and success. Oscar Lopez and Randy Garcia are the partners of this new vibrant company that is providing the oilfield with state of the art chemicals for their completion needs. Randy has over twenty plus years in the oilfield and brings his experience of working on completions most of his career. Oscar came from the air conditioning & heating industry but brings over 20 years of business experience with him in this new venture. Oscar said that when he and Randy started this company it was simply a part time/extra income company to support their love for hunting. They didn’t think that they were going to grow so rapidly, in a short amount of time. They went from hauling chemicals on a flatbed trailer to now having eight trucks, eight trailers, five mixing plants, and two fuel trucks. The growth was exponential and it took them by surprise. ProSafety Chemical is so successful because of their ability to provide specialty chemicals mostly on the completion side that literally can cut time off the job and save companies an extremely large amount of money. Lubriglide is a pipe on pipe downhole lubricant that helps with coil tubing applications and they have significant success reaching the bottom of the hole. Another specialty chemical is their Pro-Gel HT which is recently being utilized in the Permian Basin area and is used in the clean out process. ProPenadrill is the newest specialty chemical that is making a significant difference in the completion process. On one of their first jobs on the Eagle Ford Shale, they encountered a problem with a 6000 ft well that had a very hard lime-based cement in there. It was going to be a 2 month job

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because they couldn’t drill any faster than 30 ft in 2 hours. This went on for two days and so Oscar said he went to their chemist and he created a new chemical (ProPenadrill) in the next 24 hours. As soon as the chemical got into the well it went from 30 ft every 2 hours to 30 ft every 15 minutes and literally turned the cement into dust. ProPenadrill is eco-safe and took this job from being a 2 month job to 2 ½ week job. The results of ProPenadrill were amazing and now it’s getting around the industry that this chemical is saving time and money. They have some of the biggest mixing plants on the locations of the largest players in oil industry. They have just purchased two fuel trucks in expanding their abilities and service. ProSafety Chemical’s goals are to provide the best chemicals and the best service to their customers. But something unique to their success is that they take care of their employees by making sure they are making a very good living and they have an attitude of gratitude. Much of their success is the fact that they believe they have great employees and they are grateful for their work and loyalty to the company. Oscar says that lots of prayers and giving back are at the core of their values. Oscar and Randy are very involved in the start up of a new chapter for the Oilfield Christian Fellowship in San Antonio. The organization is nationwide and started with a gentleman, Mr. John Bird, who just began meeting with a friend for bible study and his friend invited another friend and has continued to grow into many chapters. These two hardworking men are excited that they are able to give back to their communities and help organizations like OCF. ProSafety Chemical is an impressive company that resounds in exuberance and goodwill. They will continue to be successful with these core values and with the experience their team is able to bring to the oil & gas industry.

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Careers in the Oil Field: Mud Engineering

Who has heard the term mud engineer and has had a memory of playing in the mud as a child or think of making mud pies? Well that’s not exactly what a mud engineer does. The correct term for mud engineer is a drilling fluids engineer. One may have a college degree or technical institute certificate or may have no tertiary education at all but has gained his/her knowledge from the experience of working on the rigs. Experience can come from all sorts of other positions like a derrick hand or being a pump man working in an off shore environment. There are special training courses like “mud school” and may also work under a senior mud engineer to gain knowledge and experience. Part of a mud engineer’s job is to work out a “mud program” according to the expected geology. He/ she would need to determine which products would be best to use. Also fluid specifications at different depths are all predetermined. As the well is drilled and gets deeper more mud is required and it is the responsibility of the mud engineer to add new mud. The new mud to be added will be designed so as to stabilize the well. Many times it may be necessary to change the mud entirely to be successful in drilling through the particular subsurface layer. The mud engineers work with other service providers like a mud logger (mud logging technician) about the progress through the geological zones, and they make regular physical and chemical examinations on the drilling mud. The Marsh funnel viscosity and the density of the mud are frequently checked. The properties of the mud change during drilling because of the small particles of the rock that accumulates and need to be corrected by the mud engineer. He/she will add specific additives to correct the changes. It is important to keep an eye on the equipment which is used to pump the mud and to remove the particles, and be prepared if any problems arise.

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The mud engineer is provided with the computer aides and manuals by the mud supply company. The normal job shifts of a mud engineer are long and usually are over 12 hours a day. Foreign and offshore jobs tend to be four weeks working and four weeks off. The salary for entry level mud engineers is steadily increasing especially in states like Texas, Oklahoma, and North Dakota. Mud engineer salaries can vary across the industry but averages total close to $75,000 per year. Mud engineer’s earnings include day rates and base salaries and typically receive benefits like health insurance, work trucks, and bonuses for overtime. If you are a consultant, you normally would make more than a mud engineer. Consultants can make over $100,000 per year and a per diem allowance is also given. Mud engineers may have to sacrifice time away from home but the salary and benefits are great.

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Walter Jay Wikoff & Ed Ortiz, Sr.

A Journeyman’s Journey Written by Jennifer Larivey

Life is always referenced as a journey…we are looking at a journeyman’s journey when we talk of the life of Ed Ortiz, Sr, owner and lead machinist at Roy’s Machine & Fabrication. Ed Ortiz, Sr. earned his journeyman degree as a machinist while serving in the U.S. Army and has worked with gate valves, wellheads, flow products, oilfield maintenance, processing, engineering design, and refining capabilities. His experience and self education is what has significantly set him apart as a journeyman machinist. His reputation far exceeds those of his colleagues and his willingness to give back to the community and those less fortunate. He has helped organizations like Hammons Education Leadership Program (HELP) and showed young adults the difference that can be made by learning a trade like his own. This has propelled him to make a difference in young people’s lives and start an apprenticeship in his own shop. The objective of the apprenticeship standards is the training of machinist skilled in all phases of the industry. This will be accomplished by well-developed on-the-job training combined with related instruction. There is an apprenticeship agreement that is written between the sponsor and apprentice setting forth the responsibilities and obligations of all parties to the apprenticeship agreement with respect to the apprentice’s employment and training under these standards. The qualifications for apprenticeship are fairly simple. One must not be less than 18 years of age, have a high school diploma or GED equivalency, and they must be physically capable of performing the essential functions of the apprenticeship program, with or without a reasonable accommodation, and without posing a direct threat to the health and safety of the individual or others. The ratio of apprentices to journeyworkers will be one (1) apprentice to one (1) journeyworker per jobsite. This is consistent with proper supervision, training, safety, and continuity of employment throughout the apprenticeship. All applicants selected for apprenticeship will serve a probationary period of not less than three months (500 hours) of on-the-job learning. After the probationary period is considered

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satisfactory the apprentice will receive full credit for the probationary period and continue in the program. The apprentices will work the same general hours as journeyworkers. If an apprentice comes in with work experience than the sponsor may grant credit towards the term of apprenticeship and will be advanced to the wage rate designated for the period to which such credit accrues. Upon satisfactory completion of the requirements of the apprenticeship program as established in these standards, the sponsor will so certify in writing to the registration agency and request that a Certificate of Completion of Apprenticeship be awarded to the completing apprentice. This new program that Roy’s Machine & Fabrication is offering brings a light to so many journeys. Many times young adults have made wrong choices and need a chance at becoming a productive citizen in their community and don’t know where to turn. Ed Ortiz, Sr. knows that his apprenticeship program is a beacon of light for those that have lost their way. He’s a journeyman with a mission to change lives and believe in this program. His passion for people and love for the industry is what has really made Ed Oritz, Sr. a man of integrity and has earned the respect from his colleagues. Mr. Ortiz says, “Schools do not teach all of the things you need to know these days. It takes years of experience, skill and craftsmanship to do what we do.” Quality, dependability, trust, and doing it right the first time is what Mr. Ortiz believes in. Roy’s Machine and Fabrication is located at 212 6th Street in Corpus Christi, TX 78405. They are open 24 hours a day, seven days a week. They have state of the art equipment that assures the finest parts and services available: 24’ x 10’ Mazak Lathe, 36’ Monarch, DRO on milling machine, Gagemaker ball mic instrument for measuring all API ring grooves. Roy’s Machine and Fabrication specializes in oilfield, maritime, hydraulics, refinery, fabrications, and all types of pump repair. Mr. Ortiz says, “You can ask our references, they speak for themselves, and our customers come back time and time again.”

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Who’s in the Driver’s Seat? Written by Jennifer Larivey

Dr. Ken Morgan is a geologist who teaches and researches our future energy needs. Presenting at the Eagle Ford Shale Consortium meeting in San Antonio, TX, he said that we have a tsunami in our backyard with the Barnett Shale. In 2011, he thought that TCU’s Rose Bowl Game was the reason for the university’s rapid growth from 5,000 applications to 20,000 applications. Then he realized that TCU’s Rose Bowl was not in the driver’s seat but that ENERGY was in the driver’s seat. The United States needs 100 Q BTUs: 85% Fossil fuels, 8% Nuclear, and 7% renewable. The World needs 500 Quads!! 20% of the energy produced by U.S., 17% of the energy produced by China (which has doubled recently), and 16% produced by Europe. By 2030, we will needs 600 BTUs and U.S. oil imports will be $1 Billion/day!! For 50 years, oil and OPEC has been in the driver’s seat. Energy is expensive for those that don’t have it…a simple supply and demand equation!! Do we have a solution to this energy challenge…In 2002, the shale play that led the way that would become “the source” was the Barnett Shale. They had hit the “Mother Lode”…oil was now coming out of the shales! Twenty percent of all oil comes from shale! By using water to frac into the shale they were able to go through the shale horizontally 40 stories down and still stay in the formation to draw out the oil. Water fracturing started in 1947 and began our process of 1.4 million wells in the United States. So as they began to discover the shale discoveries in the United States (over 30 shale plays) and begin fracturing the shales, natural gas was released. We have over 100 + years of cleaner burning, natural gas. Quickly the big boys like, Total, Chesapeake, Exxon-Mobil, Shell, Chevron, CNOOC (China), ENI (Italy), Quicksilver, Reliance Energy (India), Marubeni (Japan), began to get involved in the shale plays. So now the question still remains…Who is in the Driver’s Seat? Are the “Big Boys” in the driver’s seat? The Future is that natural gas prices are low and shale oil is on the rise. Natural gas is around $20 to $25 a barrel (for comparison only) vs. a barrel of oil equaling $90. The Midland/Odessa Permian Basin area is taking Eagle Ford Shale and putting it on steroids. It is expanding that much. They began to drill old wells in the

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wolf camp area and drilled horizontally and there was $1000 per foot. This began a new prototype to re-tap into old wells. Then he began to speak of the expanding Natural Gas markets. Natural Gas burns cleaner than coal and it has also been used by NASA as the hydrogen source for the space shuttles. Natural gas vehicles (NGVs) are the real “green vehicles” and we are now looking to the future with natural gas by fleet conversion in vehicles. There are several groups like the Metroplex NGV Consortium and the South Texas NGV Consortium for are pushing for legislative changes. They went to Austin with 17 NGVs to show the benefits of NGVs. While there they witnessed several city vehicles that were NGVs and literally went outside of the capital to witness the change in the way we use natural gas and its future. There are 20 NG stations in Dallas and they are increasing in the Texas Transportation Triangle, includes San Antonio, Houston, & Dallas. In 2012-2013 Chrysler/Ford/GM are experiencing & testing alternative energy vehicles. We will start to see more fleet conversions in the future. GE & Chesapeake have worked together to bring natural gas into our homes. A GE Refueling unit costs around $500. Sixty million homes already have natural gas. We are witnessing the change of legislature and government support and right now there are twenty governors who support NGVs. Right now government is starting to implement the buying of new fleets that are NGVs. Gen Dempsey met with him and they are looking at

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the cost savings it will bring to the United States military in order to save on budgets but also to stop base closures. So the growth of NGVs is world wide. There are approximately 14.8 million NGVs in the world. One-fifth of all transit buses are CNG. Thirty-five airports in the United States are utilizing natural gas and within the next ten years we will see fifty million NGVs worldwide! How exciting is that! Green technologies using “rare” earth elements are not so beneficial to the United States. Why? Well 97% of those rare earth elements are owned by China that is why GE had to build their “Green” plant in China. The EPA also found out that these “rare” earth elements had radioactive elements stuck to it. This is not very beneficial for our future and our children’s future. Cheniere Energy has a LNG plant in Louisiana and we are going to start witnessing the growth of these plants in the United States. Cheniere Energy has a new LNG plant in the Port of Corpus Christi. So, for domestic gas…Who’s In the DRIVER’s Seat?? WE ARE!!! The benefits of natural gas are so many. We are starting to see grass root NGV developments, fleet conversions (large & small), Infrastructure and vehicles, our Future with job and business growth. This is an exciting time to witness the positive movement of what natural gas can do to our environment, economy, and our future. Dr. Ken Morgan shared that we are now in the Driver’s seat…let’s do our best to see this industry drive us into our future.


Southwest Torque Tools & TorcUP Southwest Torque Tools, Inc. is proud to represent TorcUP, the most reliable Hydraulic Torque tools and Pumps in the Oil Patch. SWTT, founded by Steve Robbins who has 27 years of Torque Tool experience based out of the DFW area, has added Colt Davis as the Eagle Ford Shale Manager & Jimmy Davis as the Permian Basin Manager to guarantee you receive the level of local Service you demand. And now with TorcUP’s introduction of the SlimLine Low Profile Ratchet link, your TorcUP TX-4 torque tool can now easily access and fully torque the 1 ½” bolts (2 3/8” A.F.) that are so difficult to fit a hydraulic tool. With stock on the shelf at TorcUP of the most common oil patch sizes, the SlimLine solves a problem and eliminates the need for an unsafe Spanner Wrench or a ground down Hammer wrench. Over 65% of our TorcUP sales now come from customers who are tired of their Brand H tool and Pump (and the multiple copies of that style tool) being broken and leaking again. They have switched to TorcUP for a reliable tool that simply keeps working. When other companies “claim to fame” is a Service Truck, it might be time to buy a TorcUP TX Series Hydraulic tool that just keeps working and making you money in lieu of a complicated tool that that spends more time waiting for the service truck than torqueing bolts. Your company deserves more than what you have been paying for. TorcUP has product on the shelf. Call us today for more information or a demonstration and we will make your tool pain go away.

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DUG Eagle Ford Shale Conference - The Roundtable Discussion Written by Jennifer Larivey

At Hart Energy’s DUG Eagle Ford Shale Conference in October 2012, Bill Melton, Completions BD Manager for South Texas, Halliburton, James King, Director of Applications Engineering, Sales & Operational Support, Baker Hughes, Joey Hall, Vice President of Pioneer and Dave Cramer, Engineering Fellow, Completions, Conoco Phillips, all discussed “What Makes the Best Wells?” James King with Baker Hughes made the statement that “Each play has its own Key…Eagle Ford Shale has its own key.” Bill Melton with Halliburton stated that “they had to learn from the Barnett Shale and wipe the slate clean and needed to understand the rock better and also knowing what works best for that particular well.” Joey Hall with Pioneer agreed with Bill and said that “everyday it gets more and more complicated. Understanding the rock is Key.” Dave Cramer chimed in and said that, “It is a imperative to have a mechanical strategy and understanding of the rock.” All four experts agreed that Eagle Ford Shale is a different play on its own. Understanding the rock formation and expressed that technology will change the way oil is exported and that over time the barriers will come down. A big challenge is the infrastructure and political/government environment. It was also discussed that you cannot be afraid to overstimulate a well. They agreed that the Eagle Ford Shale is a long journey and along the way they would all have to make tweaks and not give up on so-called “bad ideas”, just continue to do things differently and adjust and readjust. What drives our Industry? Bill with Halliburton felt that creativity to overcome limitations is key along with utilizing technology and integrative optimized systems. James King with Baker Hughes said, “It is a 3 cord rope: 1. People, 2. Process, 3. Technology…the evolving to a specialized rig. Dave with ConocoPhillips said, “we develop generic processes to evolve into a well run system, we’ve been using the same basic frac pump for 35 years that has to change.” Joey with Pioneer continued, “utilizing walking rigs and making modifications

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accordingly”. Being flexible in this play seems to be the general comments from these industry leaders. Any areas in the Eagle Ford Shale play that are underperforming are giving them an opportunity to seek areas of improvement. Of course keeping cost down and one must evolve execution strategies to be successful in this play. The RailRoad Commission has certain regulations that change and transform how to complete the wells. This is one of the challenges each of these industry leaders faces. Bill with Halliburton said, “Another challenge is that there is never enough data. We are experimenting with each well and experimenting in the different areas of the shale. “ Dave with ConocoPhillips said, “we want to figure it all now but we’ve come to the realization that we are experimenting now.” Joey with Pioneer also stated another challenge is understanding the spacing, “right now we are using 500 ft spacing and things could change.” They all agreed that despite the challenges they face, technology is evolving the way completions is done and this can be risky. These industry leaders know that each of their wells are different and they must not give up…success comes from experimenting, implementing great strategy, and overcoming the challenges they face.43)

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Halliburton Uses Clean-Burning U.S. Natural Gas to Power a Complete Hydraulic Fracturing Fleet New Dual-Fuel Technology Offers Environmental and Cost Benefits HOUSTON--(BUSINESS WIRE)--Jan. 11, 2013-- Halliburton (NYSE: HAL), Apache Corporation and Caterpillar have developed innovative dual-fuel technology capable of safely and efficiently powering the pumping equipment used for fracturing treatments with a mixture of natural gas and diesel. With 12 pumps (24,000 horsepower), this is one of the largest-scale dual-fuel projects ever conducted in the oil and gas industry. G. Steven Farris, Chairman and CEO of Apache and the Chairman of America›s Natural Gas Alliance (ANGA), encouraged Apache and the industry to increase the use of natural gas as a fuel for engines. In response, Halliburton developed a technical solution for converting the pumping equipment used at a typical large-scale fracturing spread to a dual-fuel system including natural gas one that would be more efficient and cleaner-burning than using diesel alone. Halliburton and its supplier, Caterpillar, teamed up to convert the company’s new Q-10 pumps to dual fuel with a technology that would safely and efficiently accommodate high-quality liquefied or compressed natural gas. Collaborating closely with Halliburton and Apache to cover a wide range of performance, environmental and efficiency criteria,Caterpillar adapted its proprietary Dynamic Gas Blending (DGB) engine technology to power Halliburton›s massive pumps. “We anticipate that in the not-so-distant future, these DGB engines can be easily retrofitted to efficiently burn available on-site conditioned field gas, thereby saving operators additional fuel transport costs,” said Marc Edwards, Senior Vice President of Halliburton’s Completion and Production Division.

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Halliburton also worked with Linde North America to establish a safe and efficient gas distribution system as well as the supply of the liquefied natural gas needed for this project. “Apache is proud to be setting an example for the industry by using a clean-burning, abundant and inexpensive U.S. energy source in its operations,” said Mike Bahorich, Apache’s Executive Vice President and Chief Technology Officer. “Taking advantage of natural gas can lead to cost savings for the industry and for energy consumers, new jobs and a cleaner environment - it’s time for us to use this resource to its full potential. We commend Halliburton for its ability to take on our dual-fuel challenge and quickly make it possible.” Apache has broadened the environmental scope of this project by showcasing at selected work sites - including the Granite Wash site outside Oklahoma City where the new dual-fuel technology has debuted - Halliburton’s Frac of the Future technology. Started in 2010, Halliburton’s Frac of the Future initiative is designed to address the need to shrink wellsite footprints, improve environmental performance, cut supply chain costs and enhance the reliability of the equipment on site. ABOUT HALLIBURTON Founded in 1919, Halliburton is one of the world’s largest providers of products and services to the energy industry. With more than 70,000 employees in approximately 80 countries, the company serves the upstream oil and gas industry throughout the life cycle of the reservoir - from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field. Visit the company’s website at www.halliburton.com.

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Kalmar Rough Terrain Container Handlers Written by Jennifer Larivey

Kalmar RT Center’s 118,000 pound machines make an incredible journey for one of world’s largest natural gas projects. Barrow Island, a remote Class A nature preserve about 30 miles off the northwest coast of Australia is the new home of four Kalmar RT240 Rough Terrain Container Handlers. The island is so isolated; it is home to at least 24 unique species of plants and animals. The 118,000 pound machines had to go through extreme preparations for transport to this remote island. Each RT240 went through a quarantine process, being meticulously cleaned and plastic-wrapped to meet the strict environmental guidelines required by the island. “The island is a nature preserve, so nothing can go on the island without first being cleared of any foreign plant materials, insects, or wildlife, “ according to Vice President of Business and Product Development Randy Wigenroth. “We had to take some extraordinary measures to make sure the equipment is free of anything that might be considered invasive.” The quarantine process began again once the machines arrived in Perth. Toll Group, purchased the Kalmar RT240s to improve logistical operations of the construction of a liquid natural gas plant on Barrow Island, part of the Gorgon Project, a joint venture led by Chevron Australia to develop the great Gorgon gas fields. “Toll Group and Chevron will be able to do the work of four to five different pieces of equipment with just one Kalmar RT240,” President and Chief Executive Officer Bryan Stephens said. “These machines can do more in places their current equipment can’t go. We will be able to increase their efficiency, keep them on schedule and save them money.” This first commercial sale of the RT240 to Chevron and Toll Group is an amazing success for Kalmar RT Center knowing that its use will be utilized on one the world’s largest natural gas projects-the Gorgon Project. Kalmar RT Center is the only manufacturer of rough terrain reach stackers in the world. Based in Cibolo, Texas, Kalmar RT produces the RT240 Rough Reach Stacker and the RT022 Rough Terrain Telelhandler. Initially produced for the United States military, the RT240 and RT022 are now available for purchase to companies internationally. For more information, visit KalmarRT.com

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Breaking Through the “Glass Ceiling” Women and the oil and gas industry. An oxymoron? According to The Global Oil & Gas Salary Survey 2012 conducted by Hays Recruiting, women are vastly outnumbered by men, comprising only 7.8% of the industry in the U.S., and, of those, very few ever make it to the top, decision-making positions. There are some highly-visible women on the oil and gas world stage, most notably in Brazil, where Dima Rousseff is the country’s first female president. Petrobras, the state-controlled oil company, is led by Maria das Graças Foster, whose background is in chemical engineering, and the National Petroleum Agency, which regulates the country’s oil sector, is headed by Magda Chambriard. Interestingly, it is in developing countries where women hold some of the highest-ranking positions in the industry. In 2010, when former Shell employee Diezani Allison-Madueke became the first woman to be appointed Nigeria’s Minister of Petroleum Resources, she also became OPEC’s first female oil minister. Albina Assis served as Angola’s Minister of Petroleum from 1992 – 1999, making her one of only three women to have held that position. Karen Agustiawan is the CEO of Pertmina, Indonesia’s state-owned oil company. Even the conservative Arabian Gulf country of Qatar has had a female oil minister. British Petroleum (BP) has proved to be a female-friendly company with a number of women rising in its ranks, although many have since left to pursue other ventures. Vivienne Cox’s 28-year career with the company culminated in her position as head of BP’s Alternative Energy business. After 27 years with the company, Lainda Adamany, a group VP, who believes “the door is wide open” for women, achieved her goal of retiring at the age of 55. Cynthia (C.J) Warner, group VP for refining with 27 years in the energy sector, currently is CEO of Sapphire Energy. Here in the U.S., an elite group of women has made it to the top of the male-dominated industry. Patricia Wo-

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ertz spent 29 years at Chevron, eventually becoming Executive VP of Global Downstream before going on to become President and CEO of Archer Daniels Midland in 2007. After a 29-year career with Shell and rising to the position of Executive Director, Linda Cook resigned in 2008 after failing to be named CEO and currently serves on the Board of Directors for Marathon Oil. Another former Shell executive, Lynn Elsenhaus, went on to become CEO of Sunoco before stepping down in 2012 and joining the Board of Directors at Baker-Hughes. The current oil boom, particularly the shale plays in Texas and other states, is an economic godsend, providing unprecedented employment opportunities. According to a study conducted by UTSA, the Eagle Ford Shale alone supported over 47,000 full-time jobs in 2011. That can only bode well for women hoping to enter the business, as well as those currently working toward breaking through the “gas ceiling.” Watch this space in future issues for interviews with the most successful women in the oil and gas industry. Rebecca Ponton has been a journalist for 20 years and is also a petroleum landman. She can be reached at rvanderaresources@yahoo.com.

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Texas Oil & Gas Magazine Page 59



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