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VOLUME 1 NO. 9

AUGUST 2013

Stretching out:

the construction explosion 8 12

OSHA

Policing Proper Ground Equipment in the Oil & Gas Industry

THE EDUCATION 16 IMPACT RESTAURANT www.PBEMag.com

BITES

JoHnny’s BBQ

T he CT EC FE P P L E EFFECT FF EF The R IIPPLE IP THE R T

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TallTownes ENTERTAINMENT

• U.S. RIG COUNT • TOP 35 Drillers & Operators

Industry Data

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News

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Events

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Auctions

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Calendar

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Travel

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Tips

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Energy

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Tech


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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


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AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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AUGUST 2013

contents

Pbe Features 8

Stretching Out: The Construction Explosion

12 Osha Policing Proper Ground Equipment in the Oil and Gas Industry 16 The Education Impact 30 TallTownes Entertainment

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Other Editorials

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New Restaurants & Entertainment

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11 Calendar of Events 14 PBE Cares 18 Joe Satriani

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20 Conferences in August - September 21 Upcoming Auctions 22 Festivals and Events in Texas 26 Tech Bites - Trican 28 Entrepreneur’s Choice: Is your Kid worth $100 Million? 32 PBE News Briefs: Basin, Government, State, Nation, World & Shale 38 Restaurant Bites - Johnny’s BBQ 40 PBE Inspires 42 By The Numbers: Texas Rig Count, Top Drillers, Top Operators 45 This Month in Petroleum

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


LETTER FROM

THE EDITOR “This City is what it is because our citizens are what they are.” - Plato Unless you don’t live in West Texas or you live in a tunnel, you cant help but notice the non-stop construction that has been gracing our skyline over the past couple years. As soon as one big building project is complete, another begins and with much of the construction taking place on the edge of town, the twin cities are rapidly growing into one. In the last couple of issues, we’ve talked to industry insiders about why it’s happening and how long they think it will continue, so in this issue I wanted to focus on the ripple effect. Bigger offices, more restaurants, added entertainment options and of course more housing to accommodate the explosion in growth we’ve seen over the past few years. There has also been and an increase sensitivity to long standing industry regulations as more and more is being expected out of companies that were already being stretched, and safety becomes and increasing concern. All this has forced education into the spotlight as we face a surge in companies that need qualified employees who can keep up with the technology boom. Undeniably, as company owners, leaders and dedicated employees try their best to maintain control on this roller coaster of a ride, the ability to make time for the things in life that matter the most, becomes much more difficult. As a business owner, husband and father of 3 myself, I know all too well how the demands of the job can often suck the life out of your family life, if you let it. It’s times like these, when work is plentiful and deadlines are suffocating, that we must remember to make the time to preserve the most important business of all: the family business.

Carlos Madrid Editor in Chief/Publisher sales@pbemag.com /PBENERGYMAG @PBENERGY

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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EDITORIAL CONTRIBUTORS

PBE MAGAZINE CONTACTS

EDITOR IN CHIEF/PUBLISHER

Carlos Madrid

sales@pbemag.com 432. 559. 5886

HALEY RAGSDALE WRITER haley@pbemag.com

SALES 432. 528. 1082 ART DIRECTOR/LAYOUT & GRAPHICS

Luke Pawliszyn

Lukasz Design Studio West Hollywood, CA luke@lukaszdesign.com

IRIS FOSTER WRITER

SUBMISSIONS Submit story ideas & other news to: haley@pbemag.com

ADVERTISING For advertising info call 432. 559. 5886 or email sales@pbemag.com

PUBLISHED BY: PBE Magazine, LLC. Permian Basin Energy Magazine 4500 Erie Drive Midland, TX 79703 Main Phone: 432. 559. 5886

AUDRIE PALMER FREELANCE WRITER Midland, TX audrierpalmer@gmail.com

www.PBEMag.com

Copyright © 2013 Permian Basin Energy, Inc. • Mad Ads Media All rights reserved. Reproduction in whole or in part without the written permission of PBE MAGAZINE, LLC is strictly forbidden. The greatest care has been taken to ensure the accuracy of information in this magazine at time of going to press, but we accept no responsibility for omissions or errors. PBE Magazine welcomes any comments, feedback, suggestions, and/or submissions for consideration for publication. These may be submitted to: sales@pbemag.com.

DANIEL STEPHENS SENIOR PASTOR Mid-Cities Community Church Midland, TX daniel.stephens@midcities.org

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Stretching out:

the construction explosion by Iris Foster

In the midst of this boom, several oil companies have broken ground recently on major buildings or completed new headquarters, heralding their commitment to keeping employees in the Permian Basin. According to The Midland Reporter-Telegram, during April Chevron broke ground for its $100 million, two building complex on a 25-acre site purchased from SBC Corp. and located west of the Scharbauer Sports Complex. The two, four-story buildings will be connected with a walkway and are scheduled for completion in early 2015. Later in the spring, Pioneer Natural Resources began its $50 million construction project near ClayDesta. The six-story building will feature a large workout facility and cafeteria to accommodate future company growth. A three-story parking garage is also planned. Concho Resources repurposed the Hightower Building downtown with a complete makeover, added a parking garage, and relocated most of its operations from Fasken Tower II a year ago. EOG Resources just moved into its three-story, 86,250 sq. ft. building at 5509 Champions Dr. (near the stadiums) to position itself for increased staff to keep up with its expanded drilling and production. Fasken Oil & Ranch not only built a new headquarters, but established a master planned community west 8

of Green Tree Country Club on Holiday Hill Rd. and Sherwood Dr. Part of this development includes The Vineyard with single and multi-family residences, office, retail space, trails and other amenities as well as a proposed elementary school. There are plans for an entire Energy Plaza at Westridge Park (near Chevron’s new campus) which would add up to five, multi-tenant office buildings. Likewise, in Odessa, oil companies are bursting at the seams. Within the past couple of years, Saulsbury Industries (Odessa’s largest private employer) has expanded from its buildings on Andrews Highway to its current location on East I-20 at JBS Parkway. CUDD Energy Services, (# 15 on the list of top private employers) is moving into its 50-acre site across the Interstate this summer. GrayBar, an employ-owned Fortune 500 company which distributes electrical, communications, data networking, and security products is moving to Odessa with new construction at the I-20/ JBS intersection.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


Another addition to Odessa Industrial Park is American Crane & Equipment. After 12 years, this company will move into its new shop, offices, and training facility early next year. The second largest private employer in Odessa, Halliburton, recently moved into its multi- million dollar facility located at 6155 W. Murphy. Next door, Baker Hughes followed suit in mid-July into another highdollar complex. These two companies sit just across the tracks from I-20 West between FM 1936 and S. Moss Ave. Along the interstate throughout Ector and Midland counties, signs proclaiming “the future home of” are plentiful. Titan Liner and Performance Chemical Co. are two of them. Although Schlumberger already has a “consolidated” location along I-20, a new, $14.8 million, 80,000 sq. ft. three-story building is underway for the international well service company which recently acquired Smith Industries and employs 4,300 in the Permian Basin. In addition, GE Oil & Gas just finalized its acquisition of Lufkin Industries, a leading provider of artificial lift technologies, which includes its two-year-old facility on I-20. Another longtime supplier, DRM Oilfield Tubulars, will move from downtown Midland to its new space on I-20 later this summer. Sandridge Energy also vacated space downtown last month when its staff moved into a new office building on the Interstate.

Another byproduct of our oil boom--this commercial construction frenzy!

NEW RESTAURANTS & ENTERTAINMENT Dining and entertainment options have grown to meet the surge of workers into the Permian Basin. A venue which can accommodate 4,000 people sits on Hwy. 191 near the Ector/Midland County line. La Hacienda Event Center opened a year ago and hosts public concerts with a wide range of musical talent on Friday evenings and is available for private functions on Saturday nights. The 1800seat Wagner Noёl Performing Arts Center (at FM 1788 on UT-Permian Basin’s Midland campus) is into its second year of productions covering “a wide range of community and regional events from Broadway tours to performing symphonies to ballet, opera, and musical concerts.” Nearby, Parks Legado Town Center (facing Hwy. 191 between Faudree and Billy Hext Roads) contains several new eateries. For breakfast and lunch, there’s The Egg & I. Special hamburgers are sold at Whitehouse Meat Market which includes a restaurant. At the opposite end, the Cork & Pig Tavern offers outdoor and indoor tables for lunch and dinner. A new McAlister’s Deli will soon be built down the street at Billy Hext Rd. and Hwy. 191. Chain restaurants continue to arrive in both cities. In Midland, Saltgrass Steakhouse opened in June in the former Cheddar’s location. Firehouse Subs arrived on the scene in The Commons on Northpark on Loop 250 with Palio’s Pizza Café set to open there. Jersey Mike’s Subs will be at Cornerstone Shopping Center on the loop soon, and La Madeline officials are reportedly looking for a property, too. In Odessa, Cheddar’s Casual Café is now on East 42nd, and Genghis Grill and Five Guys Burger and Fries are coming.

Who says there’s nothing to do and nowhere to eat in the Permian Basin? AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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polos

t-shirts

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Promotional Products • TV/Video Production • Graphic Design • Photography

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


OBSERVANCES AND CELEBRATIONS

AUGUST 2013 Birthstone: Jade, Peridot Flower: Gladiolus

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ISLAMIC EID UL-FITR

National: Family Fun Month,

The Islamic calendar is lunar, like the Jewish calendar, with of 12 months of 29 or 30 days each, for a total of 354 days, but the Islamic calendar makes no corrections to align it with the solar calendar so each year the Islamic holidays occur earlier and do not always fall in the same season.

Eye Exam Month, Golf Month, Peach Month

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NATIONAL CREAMSICLE DAY

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LEFT HANDER’S DAY ASSUMPTION DAY

A feast commemorating the Virgin Mary being taken up into heaven.

19 NATIONAL AVIATION DAY

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NATIONAL RADIO DAY

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WOMEN’S EQUALITY DAY

DOG DAY

Women’s Equality Day is observed to remember the day women gained the right to equality. U.S. 19th Amendment - Women’s Right to Vote 1920.

SEPTEMBER 2013 Birthstone: Sapphire Flower: Aster

2 LABOR DAY

Labor Day is a Legal U.S. Holiday originating from the Central Labor Union to create a day off for the working man. Became a Federal Holiday in 1894.

21 22 INTERNATIONAL DAY OF PEACE FIRST DAY OF AUTUMN AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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by Haley Ragsdale

The oil boom is creating a wealth of jobs and activity in the Permian Basin, but with the flurry of activity there has also been an increase in injuries and even deaths. The Occupational Safety and Health Administration or OSHA is keeping a close eye on potential safety problems and ramping up enforcement. One of those issues is grounding any electrical equipment on a job site. This can include generators, electric cables and drilling rigs. Shawn Todd, Safety Manger, at American Safety Services in Odessa said that it depends on the type of electrical equipment and the voltage, but the general standard for grounding is using a grounding rod buried eight feet deep. “Electricity is always looking for a pathway to ground and if you do not ground the equipment you can become part of that circuit and electricity will flow through you into the ground,” he said. 12

Todd explained that not only is OSHA more closely examining assured equipment grounding but oil and gas operators themselves. “Operators are really paying attention to what contractors are taking the time to properly ground equipment, and if they are not they will use contractors that are grounding equipment correctly,” Todd said. Diana Petterson Regional Director, Office of Public Affairs at the U.S. Department of Labor explained why OSHA is policing grounding more diligently. “The increase in oilfield activities has resulted in an increase in injuries and fatalities, thus an increase in OSHA activities in the oil field. There has also been an increase in electrical related incidents in the oil field that draws attention to related areas. OSHA and the

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


American Petroleum Institute both have requirements related to grounding protection for drilling and servicing operations in the Oil Field,” she said. OSHA will enforce these requirements by issuing citations or monetary fines to anyone not in compliance. Todd explained that awareness of proper grounding has really increased in the industry. “Electrocutions do happen. There was a worker in New Mexico about a year ago that was electrocuted. I wouldn’t say it happens a lot but when those types of injuries occur they are often very severe,” he said.

Photography by Robert Flaherty

Todd said the awareness and stricter enforcement by OSHA for proper grounding helps create a safer workplace and prevents more people from getting hurt on the job site in the future. “This is just more and more protection for our employees. It is a good regulation. I think it is becoming an issue that is creating more awareness and in turn people are doing it properly. I had a customer ask me the other day about classes on proper grounding techniques. That just shows that the awareness is really up,” Todd said. American Safety Solutions offers safety classes on assured equipment grounding. They are located in Odessa, Texas.

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Cares Chris was bullied throughout his childhood and abused at home. Becoming shy and introverted, he closed himself off to friends and was abandoned by his father. Growing up with little supervision he was shot, stabbed and hit by a car in the course of just a couple years while he was still a child. As a teenager, his mom kicked him out of the house and he lived in his truck at a Midland park for most of his junior year of high school. Chris truly felt alone. Managing to stay in school even when he was homeless, he began helping out as an office assistant. That’s when a CIS counselor entered his story. After engaging Chris by sparking up a few conversations, the counselor quickly learned of the conditions he was living in and went into action. Not only nurturing him emotionally by providing a safe place to talk and being someone who would listen, the counselor also began meeting his physical needs by bringing him bags of food to make sure he was eating and helping him find a place to live. Through their constant 14

conversations, Chris became encouraged that things would get better and for the first time, he had hope for a future. Today, Chris is free from the chains of a broken family that seemed to hold him back for so long. He graduated high school and plans to join the Navy. His ultimate dream is to join law enforcement so he can help other kids, just like they helped him. The mission of Communities in Schools is to surround students with a community of support, empowering them to stay in school and achieve in life. This happens through a personal one on one relationship with a caring adult, providing a safe place to learn and grow, a healthy start and a healthy future, a marketable skill to use upon graduation, and giving them a chance to give back to peers and the community. Of the students who get involved with CIS, 98% of them stayed in school, 82% were promoted to the next grade level and 73% improved in grades, attendance and behavior.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


Those are numbers worth celebrating and a program worth supporting. Please consider the incredible impact Communities and Schools has on at-risk kids in our community and help this program continue to change the lives and stories of kids in the Permian Basin for years to come. Log onto CISPB.org to find out more about how to get involved, and ask yourself, how much is hope for a lost child worth to you? Communities In Schools of the Permian Basin PO Box 60594 Midland, TX 79711-0594

Midland Office: (432) 689-1585 Odessa Office: (432) 552-2496 Fax: (432) 689-1587

www.cispb.org

Make a Change and Volunteer “Programs don’t change kids – relationships do,” said Communities in Schools founder Bill Milliken. Getting involved is simple and can be the most powerful catalyst to change in a child’s life. Join us! Volunteer opportunities are specific to each school. To get involved, contact the campus coordinator at the schools of your interest.

Goliad Elementary Christy Leal (43) 456-5651 Hood Junior High School Savannah Grosenbach sgrosenbac@cispb.org Permian High School Margie Martinez (432) 456-5833 Goddard Junior High School Ana Estorga (432) 689-5878 Midland Freshman High School Libby Medrano (432) 689-1228 Lee Senior High School Chernika Andrews (432) 689-1664 Midland Senior High School Dina Lopez-Killette dlkillette@cispb.org XY-ZONE Mike Mills (432) 689-1125

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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The Education by Audrie Palmer

To accommodate the growing workforce demands for skilled workers and bettertrained engineers, local colleges and universities are expanding their degree programs to help fill positions in the oil and gas industry. In the past eight years, the University of Texas-Permian Basin has created programs for industrial technology, mechanical engineering and petroleum engineering, even graduating it’s first industrial technology graduate this spring. In January, UTPB began offering an online Bachelor of Applied Arts and Science degree in the field for $5,000 as a way to draw in more students. 16

Professor Raj Desai said the objective of the program and incentive is to help move those from associate degrees into management positions and the flexibility of completing the 60-hour degree entirely online accommodates those who may already be employed on a rig or in the field. Last spring, UTPB’s industrial technology program served 80 students. Midland College also implemented new technology programs to keep up with the demands of the local oil field economy and growth. “Being a community college, part of Midland College’s mission is to provide classes and training that will supply the community with a skilled workforce for local industry. Therefore, it is important for Midland College and the community to have a readily available source of trained energy technicians to meet the demands of the Permian Basin labor market,” said Rebecca Bell, dean of community relations and special events.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


Im pact

Local schools train for the oilfield, see increase in enrollment

The curriculum in MC’s Energy Technology program is designed to provide training in the electrical and mechanical aspects of the installation, operation and maintenance of systems used in petroleum exploration and production, Bell added. Graduates of the program are able to perform mechanical and electrical installation, troubleshooting and maintenance of complex industrial automation. Energy Technology program chair Tracy Gandy said that today’s petroleum classes now focus on instrumentation with everything being automated in the oilfield and teachers are working to ready students for the workforce that way. The Energy Technology program is one of the fastest growing programs at Midland College but the demand by oil and gas companies for those who have completed the program still outweighs the supply of students MC is pumping out to the community.

Top oil and gas industry corporations like Chevron and ConocoPhillips and those with the Permian Basin International Oil Show have provided scholarships to students good for $500 each semester or $2,000 to complete the associate degree path in energy technology. Chevron, Bell said, is the largest employer of MC Energy Technology students and Gandy said that when the company hired 400 new employees last year, 45 of those - or 11 percent - had completed the program at Midland College. The oil and gas boom across the United States supports 1.7 million jobs currently and a study released in October by IHS Global Insight said those numbers could reach 3 million by the 2020. Companies across the Permian Basin are looking for skilled workers - everything from truck drivers, welders, electricians and linemen - said Permian Basin Workforce Solutions CEO Willie Taylor.

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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With between 5,200 and 6,000 individuals coming in each month to the Workforce Centers across the Basin, approximately 650 to 700 of those are being placed in area jobs each month. While many want to come in and make the oil and gas money, Taylor said those looking for work have a variety of skills and are coming from places such as Georgia, Alabama, Oklahoma and Texas.

About one-third of those are being placed in jobs in the oil industry. “The bottom line is oil and gas. It’s about 29 percent of our work force (in Midland) and 26 percent in Odessa,” he said. With new technology developments in the oil industry, Taylor agrees that local schools should be in the area of training and ought to make the Permian Basin map for degrees and development. “This is an opportunity for young folks. With the tremendous amount of growth, we have younger workers coming up that we are educating and who are going into the industry,” he said.

And local classes are flexible enough for students to attend and work full-time in the industry. Over the last few years, Midland College has seen a decrease in full-time students but an increase in parttime ones due in large part to the local economy. “People are working 40+ hours per week, and, therefore, don’t have time to attend college on a full-time basis. However, we have noticed an increase in our part-time students attending evening classes and an increase in our online courses,” Bell said. And while registration for the fall semester has just begun, so far Midland College staff say the numbers are up by 300 students compared to this same time last year and they’re optimistic for a good fall enrollment. “This is certainly a good thing for Midland. It means that even though people are working, they are still interested in obtaining education in order to move ahead in careers and, therefore, improve their quality of life,” Bell said.

Joe Satriani fans know all too well what to expect when Satch

hits the stage for a live performance. Exhilarating riffs that ease their way into smooth runs create an unforgettable experience for all rock guitar fans. In Satriani’s 20 year career he has played alongside big names - Mick Jagger, Deep Purple and Steve Vai, but still it’s his solo career that has gained him respect among those in the industry. Satriani has had over a dozen Grammy nominations and sold millions of albums worldwide.

This summer Satriani released his fourteenth studio album – Unstoppable Momentum. Conceived in the basement studio of his San Francisco home in the winter of 2012, Satriani says It was just moments after playing a pattern that affected him so deeply, he knew he had something great. “Hearing those opening chords got me so excited, like I was a little kid,” says Satriani. “I felt as though I had discovered this new song and I wanted to play it 100 times a day”. Satriani continued to compose until he hit the studio with drummer Vinnie Colaiuta who has performed with Sting, Jeff Beck and Frank Zappa and Bassist, Chris Chaney of Jane’s Addiction. Satriani and special guest Steve Morse band are now taking his music across the country in the Unstoppable Momentum Tour. Deemed as a supersonic rush of sound and rhythms, fans can experience the music live at the state of the art Wagner Noël Performing Arts Center Thursday, September 5th. Tickets are on sale at www.wagnernoel.com. 18

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Conferences in AUGUST - SEP. 2013 Annual Chem/Petrochem and Refining Shutdowns and Turnarounds Conference 08/06/2013 - 08/08/2013 Dallas, TX, USA www.marcusevans-conferences-northamerican. com/marcusevans-conferences-event-details. asp?EventID=20038&SectorID=3

GPA North Texas Annual Meeting 08/07/2013 - 08/07/2013 Dallas, TX, USA www.gpaeurope.com

NAPE EXPO 08/14/2013 - 08/16/2013 Houston, TX, USA www.ipaa.org/meetings-events

IADC Well Control Conference of the Americas 08/20/2013 - 08/21/2013 Houston, TX, USA www.iadc.org/events

SPE Eastern Regional Meeting 08/20/2013 - 08/22/2013 Pittsburgh, PA, USA www.spe.org/events/calendar

Society of Plastics Engineers International Polyolefin Conference 08/24/2013 - 08/27/2013 Houston, TX, USA www.spe-stx.org/conferences.php

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Tulsa Pipeline Expo 08/26/2013 - 08/28/2013 Tulsa, OK, USA www.tulsapipelineexpo.com/home

SPE Liquid-Rich Basins Conference 09/11/2013 - 09/12/2013 Midland, TX, USA www.spe.org/events/lrbc/2013

International Oil and Gas Indonesia Expo 09/11/2013 - 09/14/2013 Jakarta, Indonesia +62 21 316 2001 +62 21 316 1981 www.oilgasindonesia.com

Moscow Refining Gas and Petrochemicals Week 09/16/2013 - 09/20/2013 Moscow, Russia www.europetro.com/en/moscow_week_2013

Rice Global E and C Annual Forum 09/16/2013 - 09/17/2013 Houston, TX USA (832) 596-6500 globalforum@rice.edu www.forum.rice.edu/upcoming-events/internationalforum-2013

Shale Show 2013 10/1/2013 – 10/2/2013 Sweetwater, TX, USA Come to the heart of the Cline Shale and the hub of Texas oil and natural gas shale regions to see the latest technologies, network with shale innovators, and hear seminars updating on magnitude, pace of drilling & production , and other issues common to Cline Shale, Eagle Ford Shale, Barnett Shale, Permian Basin initiatives, and other USA oil and natural gas shale activity. www.shale-show.com

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


Leading Auctions in the Oilfield Industry. Upcoming Auctions and Auction Equipment listings from Tradequip International’s online and site-held auction companies. Saurce: Tradequip International

Drilling Rigs

Prod. Equip.

Drilling Equip.

Tubular Goods

Oilfield Trucks

Oilfield Trailers

Parts & Tools

www.tradequip.com

Support Equip.

SOUTHCENTRAL AUCTIONS

COMPANY

DATES

LOCATION

OILFIELD EQUIPMENT TRUCKS & TRAILERS

Machinery Auctioneers of Texas

August 14, 2013

Odessa, TX

OILFIELD EQUIPMENT TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Sept 11, 2013 Sept 12, 2013

Odessa, TX

DRILL BITS

Kruse Energy & Equipment LLC

Oct 09, 2013 Oct 10, 2013

Jourdanton, TX

OILFIELD EQUIPMENT TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Oct 23, 2013 Oct 24, 2013

Oklahoma City, OK

INVENTORY

INTERNET AUCTIONS

COMPANY

DATES

LOCATION

INVENTORY

PIPE & EQUIPMENT AUCTION

Network International Inc

Aug 07, 2013 Aug 14, 2013

Internet

PIPE & EQUIPMENT SEALED BID

Network International Inc

Aug 14, 2013 Aug 21, 2013

Internet

PIPE & EQUIPMENT AUCTION

Network International Inc

Aug 21, 2013 Aug 28, 2013

Internet

PIPE & EQUIPMENT AUCTION

Network International Inc

Sep 04, 2013 Sep 11, 2013

Internet

No Lots are Currently Posted for this Auction

PIPE & EQUIPMENT AUCTION

Network International Inc

Sep 18, 2013 Sep 25, 2013

Internet

No Lots are Currently Posted for this Auction

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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AUGUST & SEPTEMBER

TOP

FESTIVALS AND EVENTS IN TEXAS

All across Texas, a variety of festivals, events and attractions are a great way to have fun and to spend time with your family. SUMMER CONCERT SERIES June to August 1705 W. Missouri Midland, TX Enjoy Sunday evening concerts on the lush Museum of the Southwest grounds. Bring a picnic and spend an hour entertained by the best local jazz, pop, country and folk music groups. No admission. (432) 683-2882 SUMMER MUMMERS June to Labor Day Catch a production chocked full of mayhem and hilarity performed at the historic Yucca Theatre in downtown Midland. Melodrama is a unique theatrical experience invented in America and no one does it quite like Summer Mummers, the oldest existing theatrical organization of its kind in the country. Join Summer Mummers as we celebrate our 65th Season with Magical Malevolence in Midland. Bring your friends, bash the villain with popcorn and enjoy side-splitting laughter during the olio. Call for tickets and times 432-570-4111 www.mctmidland.org www.summermummers.com

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CHAPPELL HILL LAVENDER AND WINE FEST August 10 Enjoy a morning or after-noon of lavender cutting, crafts, local vendors and many other activities. Throughout the day, tour additional local venues in the Chappell Hill area. 9am-3pm. Free Admission. Chappell Hill Lavender Farm 2250 Dillard Rd, Chappell Hill For details, call (979) 251-8114 www.chappellhilllavender.com

18th ANNUAL NAVASOTA BLUES FESTIVAL August 9-10 Honoring Navasota’s famous blues musician & songster - the late Mance Lipscomb. Enjoy a dozen nationally-known blues stage performers. Friday night music 5:30pm-midnight. All day Saturday Blues Fest 10am-midnight. Grimes County Expo Center. (936) 825-6600 www.navasotabluesfest.org

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


Women’s Fair & Expo 2013/Silver Spur Trade Shows August 11 The Midland County Horseshoe Arena 2514 Arena Trail Midland, TX 79701 Summer Sunday Lawn Concert- Museum of the Southwest-The Shades ( Rock ‘n Roll ) August 11 1705 W. Missouri Midland, TX Movies in the park August 17 Sherwood Park, Odessa TX “OZ: Great and Powerful”

Wagner Noel presents Loretta Lynn August 22 1310 N. FM 1788 Midland, TX Shack in the Back presents Creed Fisher August 28 11610 W. Hwy 80 E Midland, Texas SEPTEMBERFEST September 6-8 “Return to Storyland” at Museum of the Southwest as it presents its 44th annual juried art festival. Enjoy live entertainment, artworks, festival foods & hands-on family fun in the KinderFest area. Festivities are located on the Museum grounds at 1705 W. Missouri Ave. For more information, call (432) 683-2882 or email info@MuseumSW.org BLACK GOLD BASH - 5K MUD RUN September 29 Mountain Bike Park - Presented by BUFFALO BATTLE COME FOR THE PARTY, STAY FOR THE RACE! Accept the challenge of crawling, running, jumping, climbing, wallowing in mud in a challenging competitive mood and then enjoying some good suds after Buffalo Battle at the Mountain Bike Park in Odessa, TX. Hwy 191 & Billy Hext Rd. Register TODAY at Active.com Registration Closing Date - Sunday, September 29 @ 10:01 am

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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AUCTIONS • PRIVATE SALES • APPRAISALS

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


AUCTIONS • PRIVATE SALES • APPRAISALS

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Bites

Trican Well Service Ltd. acquired i-TEC Well Solutions In its recently released quarterly report, the Alberta Canada Oil and Gas Industry provided this summary about how their region is leveraging technological advances to stay in the game. To download their full report, go to ww.albertacanada.com/ business/statistics/oil-and-gas-quarterly.aspx.

Calgary-based Trican Well Service Ltd. has closed the acquisition of i-TEC Well Solutions, a privately owned company based in Norway that has developed a field-proven portfolio of completion systems and intervention tools. Trican said that the technology will not only help its operations in Alberta, but it has taken a significant step into the global horizontal multistage completion market with the acquisition of i-TEC, a technology-focused developer of innovative next generation tools that has built its business by providing solution-based services. The acquisition of i-TEC gives Trican a comprehensive portfolio of field proven advanced completion and intervention technologies that can be used in cemented as well as openhole installations, it said. I-TEC’s patented i-FRAC valve system allows for valve clusters to be placed in prolific portions of the reservoir so that customers can optimize production regardless of whether the completion is cemented or open hole. The i-FRAC technology maximizes the number of fracture initiation sites with up to 400 valves in a single completion activated by only 20 balls. Trican believes that this technology is game changing and should convert plug-and-perf users to sliding sleeves and allow its customers to perform more cemented sliding sleeve completions with confidence. In addition to i-FRAC, Trican said the company has a number of patented intervention technologies that allow efficient servicing of horizontal multistage completions to ensure high production rates long after the initial completion. The combination of high-density fracturing technology and the suite of intervention tools for extended-reach wells will allow Trican to provide a full package of products and services and enhance its current offering of coiled tubing intervention tools as well as coiled tubing drilling services. 26

Source: www.albertacanada.com

Tech

A new contest is encouraging innovators to discover new uses for carbon, with a $10-million grand prize going to the best idea. The Climate Change and Emissions Management Corporation (CCEMC) announced its $35-million “Grand Challenge: Innovative Carbon Uses” in Edmonton in February. The contest is looking for ideas at all stages of research and development that are rooted in solid science and will help reduce emissions while finding useful applications for carbon. “We are seeking bright, credible ideas from around the world that will repurpose carbon and use it as a starting material, helping Alberta to create a market for carbon use,” said CCEMC chair Eric Newell. Submissions for the first round of the Grand Challenge will be accepted until late July, with results announced in March 2014. Up to 20 winners will be chosen to each receive $500,000. Subsequent rounds will hand out $3 million each to five projects and a grand prize of $10 million to a single project. The competition will accept submissions from around the globe, with the caveat that all technologies must be applicable to Alberta. Applications for the competition are currently being accepted at www.ccemcgrandchallenge.com Zedi Inc. says that it has completed a purchase agreement with Crescent Point Energy Corp. to equip the producer’s new drill program near Viking, Alta., with the Zedi SilverJack artificial lift system. “Crescent Point is always eager to find innovative methods to improve production and deploy field technology,” Neil Smith, vice-president of engineering and business development with Crescent Point, said. “We’ve adopted Zedi SilverJack because our installation time is now hours instead of days, and our operations team finds the control panel easy to use both at the well and remotely. This flexibility improves our overall performance and saves costs.” Crescent Point also agreed to purchase Zedi Oil Well Test for nearly 250 active wellsites, which represents a significant investment in Zedi’s oil offerings, said the company. The producer will begin testing its wells using Zedi’s Oil Well Test in the first quarter of 2013.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


3113 W Industrial Ave • Midland, TX 79701

432

688-3993

Company Parties • Safety Meetings • Birthdays Weddings • Quinciñeras • Christmas Parties • Client Mixers AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Entrepreneur’s Choice:

Is Your Kid Worth $100 Million? Would you sell one of your kids for $100 million? Be honest. Imagine your little Ben didn’t burp or fart or throw up when your boss came over. Or think flushing the toilet was “mom’s job.” But sat quietly with other Benjamins in piles of crisp, neatly organized rows, ready to be enjoyed. No talking back. No wanting to play at 6 am after drunken date night. No asking for homework help after your long day at work. Food expenses, tuition and summer camp payments, babysitting fees. Gone. Gone. And gone. It takes nine months and change to create a kid. It takes a lifetime, if you’re lucky, to earn even a small fraction of $100 million. And most die trying, holding a bag full of regrets and a souped-up LinkedIn profile. Surely few, if any, would say they’d accept this offer. An unscientific poll of several of my friends uncovered no takers. One of my friends, James Altucher, commented: “I would sell a leg or an arm or have a lobotomy. I would do anything to keep them free. I would be a slave on a ship. I would be thrown in prison. I would pray all day. 28

I’d do anything, rather than have my kids taken away. I would be beaten to a pulp. I would take drugs. I would take cyanide. Nothing would take them from my side. My kids were given to me. It’s been my honor since birth.” I first pondered this eery question after reading Rabbi Ephraim Shore poignantly recount what it was like to be diagnosed with multiple myeloma, a cancer of the blood so horrid that his doctors encouraged him not to Google it. Since no one would make this trade, he wrote, we must all value our kids much more than $100 million. Yet very few of us act that way. Though silly in many ways, the question opens a window into our priorities. Our personal priorities. And our professional ones as well, as not spending enough time with our kids is often cited as the #1 parenting regret. We work all day while our kids are at school. We work at night while our kids play at home - next to us or in the next room - but without us. We travel to “must-attend” meetings while our kids perform in recitals without us. We take the dinner

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


meeting while our kids eat without us at home.

equal and opposing forces - the time I invest creating shareholder value and the time I invest building family values. Both are important. But at what cost does pursuing one bankrupt the other?

We look at our phones when our kids want us to look at them. We watch a meaningless game on TV instead of just playing a game with our kids, which would mean the world to them.

I spend more time at work than I do with the kids. And they spend more time at school than they do with me. And that’s not changing anytime soon. The only way to come out ahead is to stop fighting the quantity game and start focusing on quality. And that’s what the question forces you to think about.

We get frustrated with our kids when we should be enjoying them. We yell at them when they should be the ones yelling at us for being so selfish.

Living like your kids are worth more than $100 million forces you to invest your time with them wisely. Just like you look for quality investments for your money, you need to find quality ways to spend time at home.

All the while, we secretly look forward to a day when our kids are in college, out of the house and off our payroll. Do most of us really act as if each of our kids are worth $100 million to us? A collective $300 million if you have 3 kids like me? If $100 million were wired into your account today, you would sit down and spend a tremendous amount of time caring for it and thinking about what to do. You would ask questions like, what do I need to do to protect it? What should I do to make sure it grows well into the future? How can it help me live a happier, more enjoyable life? So why is it that we don’t ask the same questions about, or spend the same amount of time thinking about, our kids, who we all seem to value more than riches?

Why don’t we spend more time working on how we can be better parents and not just better employees and managers? And, just as importantly, how we can enjoy our kids more and be happier at both work and home? For me, at least, the hardest part of being a working parent is not the long road trips or long hours or frustrated clients. It’s the internal struggle I fight between two

As it turns out, Rabbi Shore was misdiagnosed. And like many of us who have faced our own death, he spent his time in the cancer ward taking stock of his life. “My death sentence was withdrawn and my life was renewed,” he writes. And his main takeaway? “I’ll be spending more time with my kids and truly enjoying them.” Ultimately, the best present you can give your kids is your presence. Your full and undivided presence. And, just like earning $100 million, that’s not always easy. What decisions would you make differently if you truly valued your children more than $100 million?

Source: Michael Lazerow Entrepreneur (Buddy Media, GOLF.com, U-Wire/Student Advantage, Lazerow Ventures) Follow Michael Lazerow on www.linkedin.com/in/lazerow

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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TallTownes Members: Nate Brignon - Attorney Matt Catalano - Attorney Darren Skyles - Attorney

Ta llT owne s E n t e r ta i n m e n t by Marcy Madrid

Michael Blonkvist Financial Advisor Chris Ginsbach Financial Advisor Andy Chandler - Architect Spencer Blake - Engineer Jason South - Landman

Three attorneys, two financial advisors, an architect, engineer and a landman walk into bar. It may sound like the start of a joke, but in this story, it’s the start of something new. TallTownes Entertainment, the Basin’s newest entertainment group, is the brain child of a group of young Midland professionals who wanted to bring some more life to Midland’s night-life. The group of locals would plan regular road trips to Austin so they could enjoy the sounds of the fresh talent known to frequent local pubs on 6th street.

with the Austin City Limits scene. It’s a unique concert experience, Darren describes, that many of the young professionals moving into town are looking for, and his group is working to meet that need. In addition to bringing in a range of artists, TallTownes is also looking at how they can use their shows to give back to the community. At a recent concert featuring Austin favorite Uncle Lucius, partial proceeds In an effort to recreate this same, indie concert from album sales went to the West Texas Food experience in their own backyard, they began Bank. Similar arrangements are in the works for bringing the same bands to Midland, hosting future shows. The group is also working with ‘house’ concerts and splitting the cost with popular entertainment spots such as Basin all their friends. That’s when it hit them: why Burger House and the Yucca Theatre to help not offer this same experience to the whole them book good quality talent. Past events community? have featured top acts like Ray Wylie Hubbard, up and coming solo artist from Austin, Graham And so TallTownes Entertainment was born. Wilkinson, and rising stars, Sons of Fathers, Darren Skyles, one of the group’s founders, who’s popularity is sure to explode after their says they are trying to fill a void that once planned performance at Austin City Limits this existed in Midland. Although we have a lot of October. Darren says as his group continues to great artists that come to town to perform, no bring in quality acts, he hopes the mention of one was really bringing in the broad variety of a TallTownes show will automatically bring an up-and-coming artists that are synonymous expectation of a great experience. 30

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


TallTownes cant do this without sponsors. VIP tables and naming rights opportunities are available at most events. Log onto www.talltownes.com for more information or to buy tickets. You can also email them at info@talltownes.com. www.facebook.com/ talltownesentertainment

Upcoming shows

August 15 – Wood & Wire (Austin, Texas) @ Basin Burger House (free event) September 18 – Tom Russell (El Paso, Texas) @ Wagner Noel Rea Recital Hall November 8 – Hayes Carll w/ Uncle Lucius (Austin, Texas) @ The Yucca Theatre December 19 – Bruce Robison & Kelly Willis Christmas Show w/ Warren Hood Band (Austin, Texas) @ The Yucca Theatre TallTownes is looking at how it can use its shows to give back to the community. We are working with the Midland Community Theater in planning the 65th Anniversary of the Yucca Theatre with an outdoor block party featuring Austin’s Band of Heathens, and a concert with Junior Brown benefiting Junior Achievement. TallTownes is also making plans with Uncle Lucius to help bring some much needed attention and support to the West Texas Food Bank in connection with the concert with Hayes Carll on November 8th. AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

31


PBE NEWS BRIEFS Watching the basin

new energy report for the Permian Basin A new energy research report focused on the Permian Basin from GlobalData is now available from Fast Market Research.

drilling activities in the area, detailing the rig activity in the basin’s Texas and New Mexico regions, and provides production forecast for the Permian Basin up until 2020.

The new report “Permian Basin in the US, 2013 - Oil and Gas Basin Analysis and Forecasts to 2020” provides insight into the shale gas exploration and development potential of the Permian basin. The report also provides details of the key exploration areas and major companies exploring various shales and plays in the Permian Basin.

For more information or to download this report, please visit the website at http://www.fastmr.com or call them at 1. 800. 844. 8156

The report highlights the parameters for exploration and production, and discusses major activities of the top five companies in the Permian Basin. It also discusses

Watching the GOVERNMENT

energy outlook 2013 EIA’s recently released International Energy Outlook 2013 (IEO2013) projects that world energy consumption will grow by 56% between 2010 and 2040, from 524 quadrillion British thermal units (Btu) to 820 quadrillion Btu. Most of this growth will come from non-OECD (non-Organization for Economic Cooperation and Development) countries, where demand is driven by strong economic growth.

related carbon dioxide emissions are projected to rise to 45 billion metric tons in 2040, a 46% increase from 2010. Economic growth in developing nations, fueled by a continued reliance on fossil fuels, accounts for most of the emissions increases. Source: www.eia.gov

Renewable energy and nuclear power are the world’s fastest-growing energy sources, each increasing 2.5% per year. However, fossil fuels continue to supply nearly 80% of world energy use through 2040. Natural gas is the fastest-growing fossil fuel, as global supplies of tight gas, shale gas, and coalbed methane increase. The industrial sector continues to account for the largest share of delivered energy consumption and is projected to consume more than half of global delivered energy in 2040. Based on current policies and regulations governing fossil fuel use, global energy32

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


Watching the STATE

TRADING WITH TEXAS IN BILLIONS All the ‘t’ we’ve always heard about in China may stand not for ‘tea’ after all, but Texas. Last year, China became the world’s top trading nation despite not having the world’s largest economy (it’s still America’s). The combined value of all Chinese imported and exported goods totaled $3.87 trillion in 2012, surpassing the U.S. at $3.82 trillion, according to February news reports based on both government’s figures. International Business Times reported in March that China’s overall foreign direct investment (FDI) in the U.S. quintupled and then some from 2008 to 2012, up 17 percent last year. Not surprisingly, Texas is smack dab in the middle of it all. Among the states, Texas trails only California in the value of imported Chinese merchandise, although by a factor of more than three ($41 billion to $128 billion in 2012, according to the U.S. Census Bureau). But Texas imports more than two-thirds more goods from China than does Number 3 Illinois, at $27.8 billion. China is second only to Mexico as a source of Texas imports. China’s 2012 import total was less than half that of Mexico, Texas’ longtime top trading partner, at almost $100 billion, but more than double that of Number 3 Saudi Arabia at $20 billion. Source: www.thetexaseconomy.org

Watching the Nation

COAL USAGE UPDATE While coal market fundamentals changed in first-half 2013 compared with the same period of 2012, spot prices remained largely unchanged. Demand for coal was higher and supply was lower in first-half 2013, but because electric companies chose to burn off large inventories instead of buying more coal and because international coal prices were weaker, the spot market remained largely unchanged. Coal demand increased. The continued rise in natural gas prices drove more use of coal for electricity generation. This, combined with higher electricity demand, resulted in total coal consumption for electricity generation in all sectors of 31 million tons, or 13%, more in the first four months of 2013 than in the same period of 2012. Although data for the second quarter of 2013 are not yet available, the increase in domestic consumption for the first half of 2013 is likely to more than offset the weaker coal exports anticipated in the second quarter of 2013, resulting in higher year-on-year total coal demand. Source: www.eia.gov AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

33


Watching the WORLD

Pirates Release Oil Tanker Hijacked off West Africa LONDON, July 22 (Reuters) - Pirates have released an oil products tanker and its 24 Indian crew after it was hijacked off the Gabon coast last week, the vessel’s operator said on Monday, in the most southerly attack yet off the coast of West Africa.

Unlike waters off the coast of East Africa, where ships can move past at high speed with armed guards on board, many vessels have to anchor off West African coastal nations, with little protection, making them a soft target for criminals.

A surge in piracy in the Gulf of Guinea region including waters off Nigeria, Africa’s No. 1 oil producer and a significant source of cocoa and metals for world markets, is jacking up costs for shipping firms.

Another difference between the two areas is that international navies are not engaged in counter-piracy missions off the Horn of Africa, not West Africa.

Pirates seized the Maltese-flagged Cotton tanker on July 15 near Gabon’s Port Gentil in the first reported attack in that area in the past five years. Cotton’s Turkish operator, Geden Lines, said on Monday the pirates had left the vessel in the early hours of the morning and its captain had resumed command. “The master has confirmed that all 24 Indian crew members are safe and in good condition,” Geden Lines said. “The vessel is now on her way to a secure port.”

34

In a separate incident in the Port Gentil area, the International Maritime Bureau (IMB) watchdog said around 20 armed robbers in a speed boat approached and boarded a vessel in mid-July and stole items belonging to the crew before escaping. The IMB said there were no crew injuries or damage to the vessel in the attack. “All vessels operating in the Gulf of Guinea should remain aware of and prepared for the risk of armed robbery, hijack and kidnap for ransom for the foreseeable future,” security firm AKE said in a report.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


Watching THE SHALE

FATHER OF SHALE FRACTURING LEAVES HUGE LEGACY HOUSTON (Reuters) - George Phydias Mitchell, a petroleum engineer who transformed the natural gas industry by using hydraulic fracturing to pull the fuel out of shale formations, died of natural causes at the age of 94, late July. A native of Galveston, Texas, who rose from modest means to become a billionaire philanthropist, he was the chairman and chief executive officer of Mitchell Energy & Development Corp, which was sold to Devon Energy Corp for $3.5 billion in 2002. His death was announced on the website of his foundation. Born in 1919, he rose to become a successful wildcatter a person who drills exploratory wells in areas not known to hold oil - after being raised by a father he described as a hardscrabble gambler and small-time entrepreneur. His parents were Greek immigrants. Mitchell drilled for natural gas in a rock formation known as the Barnett Shale in north Texas where the first successful application of hydraulic fracturing, also referred to as fracking, resulted in the viable production of natural gas.

In 1974 he created the Woodlands, a 25,000-acre forested community filled with parks and a 1.4 mile long manmade canal, located about 30 miles north of Houston. The Woodlands now has a population of more than 100,000 and is home to corporations including Anadarko Petroleum Corp. The world’s largest publicly traded oil company, Exxon Mobil Corp, is building a 385-acre campus in the area to accommodate 10,000 employees.

Fracking, in which sand, water and other fluids are blasted into rock formations at high pressure to unlock trapped oil and gas, has vastly changed the U.S. energy supply outlook. The rapid growth in crude production from shale has led to some to predict North America could be energy independent by the end of this decade. The practice has drawn criticism from environmentalists who fear the chemicals used to crack the rock can harm the environment.

Photos courtesy of www.dallasnews.com

Mitchell worked on the technology for 17 years and suffered numerous setbacks before it became commercially viable when he was nearly 80. “George Mitchell was a true visionary and a pioneer,” said Larry Nichols, the executive chairman of Devon Energy and a friend of Mitchell’s. “He leaves a legacy that is spreading worldwide - one that for decades to come will be known as the shale revolution.” Mike Yeager, the former CEO of BHP Billiton Petroleum said all of the oil and gas from shale now being produced in the United States “comes from the work of George Mitchell.” AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


FISHING & RENTALS

FISHING & RENTAL TOOLS REVERSE UNITS FOAM/AIR UNITS

1511 Garden City Hwy • PO Box 150

MIDLAND TEXAS

432.684.3898 AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

37


RESTAURANT

BITES

by Marcy Madrid

Indestructible. If only given one word to describe this immortal BBQ joint that would be it. Rickey Bowers started working at Johnny’s BBQ in 1976 and he recalls 4 big fires at the restaurant in his history there. They were mostly caused by the pit being inside the restaurant, which was finally moved out after the last fire about 10 years ago. After each fire, Rickey was sure it was the end for this Midland legacy, but each time they came back. Rickey thinks the restaurants repeated regeneration was partly due to the determination of its founder and then owner, Johnny Hackney. But he also notes a unending love of good ol’ fashion BBQ by the Midland regulars that brought this BBQ joint back to life and back to business, every time. Rickey recalls one of the first things he noticed about Johnny’s when he started working there was the incredible customer loyalty. The same people would come in almost every day, sometimes twice a day. Rickey says many would be there for coffee in the morning and back for cocktails in the evening. He references the front of the restaurant as he tells me about the many weeknights and Sundays that Johnny and his ‘buddies’ would sit near the window and chat about life. The more Rickey talked, the more I began to realize, everyone seemed to be Johnny’s buddy. In fact, one of those old buddies walked by while we talked and joked with Rickey about how he used to have a key to the place, hidden in the flower pot out front. “It was a family atmosphere”, Rickey said as he grinned, recalling at one point there were more people coming in through the back door than through the front. “Everyone knew everyone”, he said, “and everyone loved Johnny. I never saw him mad... except for that one time.” Rickey explained to me that one time he saw Johnny get mad. The details don’t matter much, but I will tell you it had to do with the incredible love he had for both his restaurant and his employees and his refusal to let anyone mess with either. Johnny was always willing to help people, Rickey remembered. Whether it was feeding someone who was hungry and couldn’t afford a hot meal, giving a job to someone out of work, or just giving people money who had fell on hard times, Johnny was always paying forward the blessings he had been given. Johnny Hackney passed away a few years back and Rickey said the funeral service was packed with those loyal customers he’d grown to know so well. Before Johnny passed away, he sold the Midland landmark to long-time local restaurant leaders Roy and Tami Gillean, Owners of the Legendary Barn Door Steakhouse in Odessa. The Gillians brought in co-owner Daniel Paredes about a year ago. Recognizing the legacy Johnny left behind with his restaurant, the new owners have worked hard to maintain the 38

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


restaurant’s nostalgia. They’ve kept the long time staples on the menu, while incorporating a few added offerings to give the famous menu, new life. Known for their catering, Rickey says you probably can’t name a town in West Texas where he hasn’t taken BBQ. Plus the catering menu was just enhanced to include more variety. Since Johnny’s opened in 1952, it has held a special place in Midland’s history. The walls are donned with pictures of celebrities and past presidents who have frequented the restaurant over the years, coming for that famous BBQ. Rickey says their secret is simple; simplicity. They use the classic recipes people know and love; the ones that take you back to a time when BBQ and life were just, simpler. Having a dedicated employee and cook like Rickey around for over 30 years, doesn’t hurt either. By the way, the biggest tip Rickey said he ever got was for $1,000, from one of Johnny’s ‘buddies’.

For more information and catering, please call (432) 683-4581

JOHNNY’S BBQ 316 N. Big Spring St. Midland, TX 79701 Phone: (432) 683-4581 AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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Inspires The following is a prophetic word spoken by Pastor Jim Laffoon during a recent Wednesday night church service at MidCities Church, in between Midland and Odessa.

Customized Plates, Cheese Biscuits & Staying on Daniel Stephens is the Senior Pastor of Mid-Cities Track Community Church, since 2006.  He is the honored by Daniel Stephens

A bird’s eye view of the roads in the Permian Basin would conjure up the image of a cross between a European car show and a utility convention. White work trucks mixed with small sedans sporting customized license plates that say “POOKIE” or “JAKEGRL”. It’s not just the tricked out monster trucks or the inability to find a good old-fashioned yard guy or the crazy housing crisis that indicates good financial times. It’s also the wait in restaurants. I am sorry Red Lobster, I love you, but I can’t wait an hour and a half for your cheese biscuits. All this got me to wondering, how people are spending their money. I know, you may not think a pastor should really be writing about money. But truthfully, the Bible and Jesus in particular, spent a lot of time talking about money and the affects of wealth on people. I see our financial boom and I am grateful for the prosperity, but I am also a little worried. The reason I am worried is because financial decisions affect every area of our 40

husband to Kayla Stephens, a proud father of twin sons Jonah & Jude, daughter Kampbell, and a precious foster daughter. life. Married couples argue about money more then any other issue. A decision to buy that new truck when a guy is working 20-30 hours of overtime doesn’t look as good when the overtime is taken away. Then the financial commitments he made begin to create stress and anxiety. Because of the stress and anxiety, the guy looks for more overtime, now he sees his wife and kids even less than he did before. This creates problems at home. I think this is the reason God has so much to say about money. He knows that our decisions with money affect not only our own lives but also the lives of others around us. Here are a few principles from the Bible that will keep us on track.

It’s all His:

Psalms declares “The earth is the LORD’s, and everything in it, the world, and all who live in it”1 I know that’s not easy to hear but the truth is, all our stuff is His. He owns it

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013

all. We are just managers of what He has entrusted to us. In all reality, this is a really freeing concept. If all our “stuff” is His, then we want to make good decisions with what He’s entrusted to us. We want to seek Him and prioritize our finances in a way that would honor Him.

Eliminate Debt:

Proverbs declares, “The rich rule over the poor, and the borrower is servant to the lender.” 2 Unsecured debt is not your friend. God’s been saying that for centuries now. The Bible is full of stories like Joseph who stored up food in the seven good years to provide for his nation during seven years of famine. Be wise, put your family in a good position and get stuff paid off. Many feel stuck in a certain job or situation because they are weighed down with credit cards, a bad furniture decision, student loans, or that property in the Hill Country the paper was advertising. Debt is not a sin it just keeps you from pursuing your dreams.


Give Generously:

Psalms declares, “The wicked borrow and do not repay, but the righteous give generously…” 3 God calls us to be generous because it’s in His character and nature to be generous. He is generous with us. Consider the immense blessing of His provision in our community. When we give generously it pleases God because we begin to wisely prioritize what matters to Him, People. This is especially important since we are managers of His money. I don’t think God minds that we have a nice car or that you may have waited in line for those customized plates. I think our Heavenly Father wants His kids to enjoy what He’s given us just as we want our kids to enjoy the gifts we give them. However, God is less interested in what we have than what has us. Be wise, be generous, and recognize it’s all His. Follow Danieal on Twitter: @DanielBstephens 1. The Holy Bible: New International Version. 1984 (Ps 24:1). Grand Rapids, MI: Zondervan. 2. The Holy Bible: New International Version. 1984 (Pr 22:7). Grand Rapids, MI: Zondervan. 3. The Holy Bible: New International Version. 1984 (Ps 37:21). Grand Rapids, MI: Zondervan.

$12.

00

PER PERSON

316 N Big Spring St Midland, TX 79701

(432) 683-4581

---------

--------FREE

cobbler with the purchase of an entree

exp. 12/31/13

B B Q & D I N E R

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

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U.S. RIG COUNT - TEXAS States &

August 1, 2013

BAKER HUGHES RIG COUNT

RIGDATA RIG COUNT

Four Week Average 2012

Four Week Average 2013

Last Week

This Week

Four Week Average 2012

Four Week Average 2012

Last Week

This Week

Waiting to Spud

Texas RRC District 1

144

143

143

144

156

134

137

125

15

Texas RRC District 2

85

82

83

83

80

80

77

81

5

Texas RRC District 3

44

48

50

48

49

48

50

45

4

Texas RRC District 4

41

34

33

38

32

31

34

29

3

Texas RRC District 5

15

13

13

14

17

14

16

13

0

Texas RRC District 6

32

27

27

28

34

27

26

27

2

Texas RRC District 7B

11

14

16

16

24

19

15

22

3

Texas RRC District 7C

87

79

74

78

86

79

72

80

7

Texas RRC District 8

315

271

275

267

311

252

251

251

11

Texas RRC District 8A

33

34

33

33

37

38

30

44

1

Texas RRC District 9

28

20

20

20

43

32

28

32

3

Texas RRC District 10

74

68

69

70

80

75

72

79

2

Texas Total

911

833

836

839

949

829

808

828

56

U.S. Totals

1,950

1,774

2,142

1,938

1,922

1,926

103

Districts

1,770 1,776

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PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


Top 35 Drillers Rankings Each month we track the activity of all the drillers and compile the results into a report that identifies the top 35 out of 100 drillers based on their footage drilled. Updated monthly, these reports also detail the number of well starts and the number of directional wells drilled by each of the top 35 out of 100. through July 20, 2013 Company

Footage Drilled

% of Total

Average Footage

Well Starts

% of Total

Directional Wells

1

Helmerich & Payne, Inc.

25,036,559

16.30%

10,186

2,458

12.50%

2,151

2

Patterson-UTI Drilling Company, LLC

15,548,353

10.10%

10,018

1,552

7.90%

1,314

3

Nabors Industries, Ltd.

13,296,549

8.70%

7,943

1,674

8.50%

1,478

4

Precision Drilling Trust

6,826,562

4.50%

9,351

730

3.70%

648

5

Ensign Energy Services, Inc.

6,250,081

4.10%

5,935

1,053

5.40%

567

6

Nomac Drilling, LLC

5,743,955

3.70%

9,355

614

3.10%

612

7

Trinidad Drilling, Ltd.

4,294,569

2.80%

11,040

389

2.00%

329

8

Pioneer Energy Services Corp.

4,177,156

2.70%

9,387

445

2.30%

314

9

Unit Drilling Company

3,786,728

2.50%

7,939

477

2.40%

466

10

Cactus Drilling Company, LLC

3,568,315

2.30%

10,557

338

1.70%

312

11

Savanna Energy Services Corp.

3,336,829

2.20%

10,526

317

1.60%

113

12

Capstar Drilling, LP

3,335,415

2.20%

6,738

495

2.50%

77

13

Desoto Drilling, Inc.

2,193,013

1.40%

4,334

506

2.60%

504

14

Xtreme Drilling and Coil Services Corp.

2,174,265

1.40%

9,663

225

1.10%

220

15

Complete Production Services, Inc.

1,726,884

1.10%

9,982

173

0.90%

57

16

Sendero Drilling Company, LLC

1,601,375

1.00%

11,604

138

0.70%

0

17

CanElson Drilling, Inc.

1,417,090

0.90%

9,841

144

0.70%

18

18

Union Drilling, Inc.

1,345,476

0.90%

10,512

128

0.70%

51

19

Orion Drilling Company, LLC

1,336,922

0.90%

11,330

118

0.60%

114

20

Lariat Services, Inc.

1,324,093

0.90%

6,491

204

1.00%

100

21

Robinson Drilling of Texas, Ltd.

1,301,085

0.80%

11,120

117

0.60%

0

22

Cyclone Drilling, Inc.

1,298,335

0.80%

5,214

249

1.30%

237

23

Latshaw Drilling & Exploration Company

1,243,852

0.80%

7,360

169

0.90%

165

24

Scandrill, Inc.

1,154,130

0.80%

12,149

95

0.50%

78

25

SST Energy Corporation

1,016,123

0.70%

9,496

107

0.50%

89

26

Big Dog Drilling Company

995,917

0.60%

11,717

85

0.40%

6

27

Lewis Petro Properties, Inc.

994,500

0.60%

12,278

81

0.40%

81

28

Basic Energy Services, Inc.

963,894

0.60%

6,694

144

0.70%

32

29

Sidewinder Drilling, Inc.

951,282

0.60%

5,563

171

0.90%

171

30

Bison Drilling and Field Services, LLC

865,546

0.60%

11,389

76

0.40%

6

31

Silver Oak Drilling, LLC

817,693

0.50%

7,642

107

0.50%

42

32

Aztec Well Servicing Co.

738,309

0.50%

6,420

115

0.60%

56

33

Murfin Drilling Company, Inc.

709,910

0.50%

4,640

153

0.80%

0

34

ProPetro Services Incorporated

701,250

0.50%

11,688

60

0.30%

0

35

Mattlock Drilling, LP

699,500

0.50%

12,718

55

0.30%

0

Total Top 100 for year 2013

153,367,032

100.0%

---

19,621

100.0%

---

RANK

AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

43


Top 35 Operators Rankings Updated every month, we track and rank the top

35 out of 100 operators based on their footage drilled.

Keep track of the most active operators with details on their number of well starts.

through July 20, 2013

RANK

Company

Footage Drilled

% of Total

Average Footage

Well Starts

% of Total

Directional Wells

1

Anadarko Petroleum Corporation

8,244,314

5.40%

10,229

806

4.10%

793

2

Chesapeake Energy Corporation

6,580,097

4.30%

10,281

640

3.30%

640

3

EOG Resources, Inc.

5,441,126

3.50%

10,524

517

2.60%

488

4

Devon Energy Corporation

5,110,394

3.30%

9,225

554

2.80%

507

5

Apache Corporation

5,002,359

3.30%

8,885

563

2.90%

253

6

BHP Billiton

4,615,089

3.00%

13,074

353

1.80%

345

7

Pioneer Natural Resources Company

4,586,085

3.00%

13,293

345

1.80%

193

8

Occidental Petroleum Corporation

4,532,496

3.00%

6,076

746

3.80%

361

9

Marathon Oil Corporation

3,094,008

2.00%

14,000

221

1.10%

221

10

Encana Corporation

3,068,475

2.00%

10,618

289

1.50%

276

11

Exxon Mobil Corporation

2,878,135

1.90%

6,935

415

2.10%

268

12

Concho Resources, Inc.

2,839,620

1.90%

10,070

282

1.40%

107

13

Southwestern Energy Company

2,630,796

1.70%

4,615

570

2.90%

568

14

Chevron Corporation

2,600,131

1.70%

4,452

584

3.00%

217

15

ConocoPhillips Company

2,497,432

1.60%

8,270

302

1.50%

226

16

Royal Dutch Shell, plc

2,475,491

1.60%

13,830

179

0.90%

178

17

QEP Resources, Inc.

2,202,321

1.40%

10,340

213

1.10%

206

18

Whiting Petroleum Corporation

1,961,459

1.30%

9,166

214

1.10%

166

19

Noble Energy, Inc.

1,790,700

1.20%

9,839

182

0.90%

180

20

SandRidge Energy, Inc.

1,730,449

1.10%

5,260

329

1.70%

250

21

Energen Resources Corporation

1,684,200

1.10%

8,818

191

1.00%

24

22

Newfield Exploration Company, LLC

1,594,777

1.00%

6,874

232

1.20%

217

23

CrownQuest Operating, LLC

1,520,900

1.00%

12,071

126

0.60%

0

24

Continental Resources, Inc.

1,391,919

0.90%

4,180

333

1.70%

332

25

EP Energy E&P Company, LP

1,334,535

0.90%

10,034

133

0.70%

120

26

Murphy Oil Corporation

1,312,540

0.90%

9,869

133

0.70%

131

27

Oasis Petroleum North America, LLC

1,209,934

0.80%

9,999

121

0.60%

121

28

Linn Energy, LLC

1,158,496

0.80%

8,645

134

0.70%

44

29

SM Energy Company

1,104,855

0.70%

8,065

137

0.70%

131

30

Parsley Energy Operations, LLC

1,091,000

0.70%

12,988

84

0.40%

0

31

WPX Energy, Inc.

1,038,122

0.70%

7,159

145

0.70%

143

32

Cimarex Energy Co.

1,033,652

0.70%

10,767

96

0.50%

88

33

Plains Exploration & Production Company

1,005,824

0.70%

6,531

154

0.80%

71

34

Lewis Energy Group, LP

1,003,500

0.70%

12,238

82

0.40%

82

35

BP, plc

1,002,351

0.70%

10,125

99

0.50%

97

Total Top 100 for year 2013

153,367,032

100.0%

---

19,621

100.0%

---

44

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


Source: www.eia.gov

CRUDE OIL INVENTORIES DECLINE AT RECORD RATE During the recent Tour de France bicycle race, fans saw that the steep descents were as challenging and interesting as the steep climbs. In oil markets, analysts have recently observed a steep decline in U.S. commercial crude oil inventories with close attention and interest. Crude oil inventories, which had been above their fiveyear range all but one week since March 2012, fell by a record 27 million barrels over the past three weeks and are back within the five-year range (Figure 1). Despite the record draw over the past three weeks, average 2013 inventories through July 12 remain 6 percent above the same period last year and 11 percent above the five-year average. Robust total U.S. inventories have been largely the result of high inventories in the Midwest (PADD 2) which, despite recent declines, remains 22 percent above the 5-year average for the week ending July 12. Inventories declined for three reasons: (1) an increase in U.S. refinery runs; (2) a decrease in crude oil imports; and (3) an increase in backwardation (a reduction in price for future months) on the West Texas Intermediate (WTI) futures price curve that has encouraged reducing inventories rather than buying crude at current market prices.

attributable to PADD 2, where utilization went from 87.9 percent to 94.6 percent over the same time, an increase of 6.7 percentage points. PADD 3 (Gulf Coast) utilization also rose over this period; at 95.4 percent for the week ending July 12, it was 2.3 percentage points above its June 21 level. Crude runs on the Gulf Coast have been buoyed by strong distillate margins. The 533,000 bbl/d increase in U.S. refinery net crude oil inputs pushed refinery runs to their highest level since 2005. On the supply side, lower crude oil imports have increased the draw on stocks to meet demand from increased refinery runs. Crude oil imports into the United States for the weeks ending June 28 through July 12 averaged 649,000 bbl/d less than the three-week period ending June 21. Imports into the Gulf Coast and East Coast averaged 671,000 bbl/d and 219,000 bbl/d less, respectively, compared to the previous three-week period. Declines were led by lower imports from Saudi Arabia and Venezuela, which each dropped by about 25 percent

The significant inventory draw was caused primarily by an increase in already high refinery demand for crude oil, including additional demand resulting from the restart of a 250,000 barrels per day (bbl/d) crude distillation unit at BP’s Whiting, Indiana, refinery. Total U.S. refinery utilization increased 2.6 percentage points between June 21 and July 12, reaching 92.8 percent. Much of this increase is AUGUST 2013 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

45


over the three-week period ending July 12 compared to the prior three-week period, accounting for a 630,000bbl/d decline. While year-to-date through July 12 U.S. imports of Canadian crude oil were 5 percent above 2012 levels, flooding in Alberta along with processing facility outages, have limited imports from Canada since June. As of July 12, Canadian imports are down 10 percent (278,000 bbl/d) from their 2013 high in mid-April. Lower Canadian supplies have a significant impact on PADD 2 inventory levels, since most Canadian crude comes to the United States via pipeline into the Midwest. Higher crude runs in the Midwest and easing crude oil transportation constraints that are allowing more domestic crude oil to reach U.S. Gulf Coast refineries have pushed the WTI futures curve into backwardation over the next several months. This backwardation, with prices for close-in delivery above those for delivery in future months, creates an incentive to sell crude from inventory. On June 20, when the contract for August delivery became the prompt futures contract, prices for the next two months fell, resulting in the first consistent period of WTI backwardation since November 2011. In addition, on July 10, the prompt contract (August) premium over the second month reached $0.90 per barrel, the highest level since 2008. Spreads between the front month and longer-dated contracts are even wider. As of July 10, the December 2013 contract was trading at $4.23 per barrel below August. On the Gulf Coast, inventories have fallen 16.3 million barrels since June 21, and in the Midwest inventories are down 6.8 million barrels. At Cushing, Oklahoma, the delivery point for the Nymex WTI futures contract, stocks fell 2.7 million barrels the week of July 5 and another 882,000 barrels the following week. Trade press reports indicated that crude production that was being delivered to Cushing storage is now being delivered directly to the Gulf Coast, thus reducing supply at Cushing. In addition, a syncrude crude processing facility in Canada was reported to have been out of service, reducing regional supplies of light sweet crude oil. Although average 2013 Cushing inventories remain 25 percent above 2012 levels, stock levels have declined for much of 2013 and are now slightly below their 2012 level. Along with pipeline infrastructure changes that have allowed crude to bypass Cushing, rail is facilitating the movement of crude oil directly from the Bakken 46

formation in North Dakota to refineries on both the East and West coasts. In addition to pushing the WTI market into backwardation, these developments are helping to raise Midcontinent spot prices, narrowing the spreads between North Sea Brent and WTI and between Bakken and Light Louisiana Sweet (LLS) crude oils. However, the resumption of syncrude imports and an anticipated refinery switch by BP Whiting to heavier Canadian crude later this year could take upward pressure off prompt WTI prices, flattening the forward curve.

Gasoline prices up for a second week; diesel fuel up for a third The U.S. average retail price of regular gasoline increased five cents to $3.68 per gallon as of July 22, 2013, up 19 cents from last year at this time. The largest increase came on the East Coast, where the price is up seven cents to $3.66 per gallon. The Gulf Coast price is $3.51 per gallon, six cents higher than last week. The West Coast price is $3.95 per gallon, three cents higher. The Midwest price is $3.66 per gallon, two cents higher. Rounding out the regions, the Rocky Mountain price increased a penny to $3.62 per gallon. The national average diesel fuel price increased four cents to $3.90 per gallon, 12 cents higher than last year at this time. The East Coast, Gulf Coast, Rocky Mountain, and West Coast prices all increased four cents, to $3.92, $3.84, $3.87, and $4.04 per gallon, respectively. Rounding out the regions, the Midwest price is up two cents to $3.88 per gallon.

Propane inventories gain Total U.S. inventories of propane increased 1.5 million barrels from last week to end at 59.4 million barrels, but are 6.6 million barrels (10.0 percent) lower than the same period a year ago. The Midwest region led the gain with 0.9 million barrels, while Gulf Coast stocks increased by 0.5 million barrels. Rocky Mountain/West Coast stocks increased by 0.4 million barrels, and East Coast stocks decreased by 0.4 million barrels. Propylene non-fuel-use inventories represented 5.4 percent of total propane inventories.

PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | AUGUST 2013


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