SHALE Oil & Gas Magazine Jan/Feb 2015 Double Issue

OIL & GAS BUSINESS MAGAZINE

VOLUME II / ISSUE I JAN/FEB 2015

MEXICO’S PEMEX The Dawn of a New Era

THE WOOD GROUP PAYS IT FORWARD

regulating industry the

Texas Railroad Commissioner Christi Craddick

WOMEN LEGISLATORS TAKE LEAD IN ENVIRONMENT AND ENERGY COMMISSIONER PORTER WEIGHS IN ON TEXAS NATURAL GAS CELEBRATING WOMEN IN ENERGY

™

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The leader in oilfield transportation and logistics since 19

The leader in oilfield transportation and logistics since 1949

JAN/FEB 2015

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AEP Texas: Your Business Partner in Shale Oil & Gas Extensive shale oil/gas reserves are located in and around geographic areas that align with the AEP Texas electric delivery service territory. Let the AEP Texas service team assist you with timely information regarding the location, capacity and availability of AEP Texas facilities.

To request electrical service or gain access to a certificated planning map, please complete the information request form located at www.AEPTexas.com/shaleoilgas Contact: Bradley Lenz 361-881-5455 bhlenz@aep.com

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

www.AEPTexas.com/shaleoilgas @AEPTexasEconDev

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

Exclusive Dealer for the Eagle Ford Shale Territory - Sand Kings - Sand Chiefs - Blenders - Hydration - FRAC Pumps - Falcons - Batch Mixers

PYRICOAT: is an all-natural soil treatment application designed to inhibit the oxidation process of soil with harmful metals and minerals. By coating the soil with Pyricoat, minerals will be encapsulated, which will stop any liquids from further contamination such as coal mining runoff.

This application has increased acidic waters PH levels from 3.4 to 6.5 for over three years now in alpha test in coal mining areas.

FECONTROL: is an all natural product used to binds, encapsulates and creates a carrier for iron sulfites and other damaging microscopic particles from crude oil. When applied to crude oil directly it reduces iron, sulfides and other corrosives by up to 93% when separated. Using this product will save downtime by reducing maintenance days by eliminating the corrosive iron sulfides from the crude before being introduced into the refineries. This application will also augment the existing downstream process of removing iron from crude oil.

RELOAD: is an all natural product use for treating frac and produced water. This product creates a top layer of hydro Cardons in Frac or produced water. This application is perfect for recovering oil from the formation fracturing process in the flow back and produced water will help in the recycling of the water for reuse in the formation fracturing process. ReLoad is most effective when introduce into holding tanks or holding ponds with a circulating pump. ReLoad will also help keep out moisture when needed.

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

Premium ReLoad also binds heavy metals in acidic water and helps eliminate corrosive effects.

Premium ReLoad is use on water for inert effect on heavy metals.

Clint Schweers / oilfieldexperts@gmail.com 13611 U.S. Hwy 181 S., San Antonio, Texas 78223 / (210) 471-1923 JAN/FEB 2015

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CONTENTS

JANUARY/FEBRUARY 2015

FEATURE 16

Women in Energy

COVER STORY

20 REGULATING THE INDUSRTY TEXAS RAILROAD COMMISSIONER

CHRISTI CRADDICK

INDUSTRY

26 Looking Forward to More

Economic Growth in 2015

Solution to a Global Dilemma

28 The Dawn of a New Era 30 Texas Natural Oil: A Common Sense 34 Building a Future in Oil and Gas 36 Eagle Ford Excellence Awards

POLICY

38 Keystone XL Pipeline in Limbo 40 Election Outcomes Promise Little

Impact on the Shale Boom

Environment and Energy

44 Women Legistors Take Lead in

CHRISTI CRADDICK

TEXAS RAILROAD COMMISIONER

COVER AND TABLE OF CONTENTS PHOTOGRAPHY BY: MALCOLM PEREZ

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ADVISORY BOARD

OIL & GAS BUSINESS MAGAZINE VOLUME II ISSUE X • JANUARY/FEBRUARY 2015

OMAR GARCIA - SENIOR ADVISOR

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

KYM BOLADO CEO / PUBLISHER

CHIEF FINANCIAL OFFICER Deana Acosta

EDITOR IN CHIEF Lauren Guerra

ART DIRECTOR Jennifer Katz

ASSOCIATE EDITOR Rob Patterson

COPY EDITOR Jaime Netzer

ADMINISTRATIVE ASSISTANTS Josie Cuellar, Savannah Castro

VICE PRESIDENT OF SALES

DOUGLAS STERLING CAIN

Douglas Sterling Cain is the president of Lake Truck Lines, which has enjoyed a 300 percent growth over the past two years. Cain links the company’s recent success to a decision to move headquarters from Houston to San Antonio, believing it all happened by “grand design.” The company arrived in San Antonio with 12 trucks, and it is now operating close to 100, quickly becoming the solution for custom oilfield equipment and tank manufacturing, as well as oilfield transportation and logistics. Cain prides himself on being innovative and “staying ahead of the curve.” Out of his desire to make oilfield jobs safer and more effective, he launched subsidiary company Lake Oilfield Services, which already manufactures six different types of oilfield equipment. As Cain sums up in his own words, “honor and integrity are incredibly expensive on Monday, but the dividends show up on Friday.”

Liz Massey Kimmel / Corpus Christi, McAllen, Laredo & Alice Joyce Venema / San Antonio

CONSUMER INSIGHT MANAGER Gloria Perez

ACCOUNT MANAGERS

Christi Guillory, Gloria Perez, Dina Ybanez, Salome Stevens

CONTRIBUTING WRITERS

David Blackmon, Douglas Cain, Maria Calderon, Dr. Arturo F. Henriquez Autrey, David Blackmon, Doug Cain, Dr. Janet M. Cunningham, Omar Garcia, Lauren Guerra, Bill Keffer, Liz Kimmel, Gloria Leal, George F. Long, Judith Motyka, Rita Olufowoshe, Rob Patterson, Commissioner David Porter, Josie Samaguey, Kimberly Samoon, Thomas Tunstall, Ph.D., Joyce Venema, Krystal White

STAFF PHOTOGRAPHER Malcolm Perez

PHOTOGRAPHERS

Jose Alcala, Mark McClendon with UTSA, Julian Ledezma, Malcolm Perez, Lupe Robles, Jonathan Swindle with HiRes Creative

JEFFREY A. WEBB

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

www.shalemag.com For advertising information, please call 210.240.7188 or email kym@shalemag.com.

For editorial comments and suggestions, please email lauren@shalemag.com.

SHALE MAGAZINE OFFICES: 5600 Broadway Ave., San Antonio, Texas 78209 18756 Stone Oak Pkwy, Ste. 301, San Antonio, Texas 78258 For general inquiries call: 210.854.3361

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Copyright © 2015 Shale Magazine. All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.

SHALE OIL & GAS BUSINESS MAGAZINE

JAN/FEB 2015

Sharpest Tool in the Shop Meet RANGER, our new field mobile service app that is changing the face of how Wood Group delivers services.

Paper tickets and filling out timesheets by hand is so last year! Mobile devices are where it’s at, so what’s our answer to the growing technology market? Wood Group’s new field services mobile app, Ranger, will bring efficiency to the services we provide at the click of a button.

With Ranger, Wood Group plans to provide more efficient systems and processes to our field employee’s day-to-day interactions with our clients. This new tool will assist us as we continue to improve our business offerings and strive to provide the highest quality services.

Highlighted features of Ranger: • Daily paperless submission of time equipment usage and materials consumed

• Improved customer service and cost reporting

• Accurate recording of information

• Single point of entry for all data entered by field personnel

• Accurate and timely invoicing

• Facility for electronic approval of field tickets

• Elimination of paper tickets

• Ability to control our current business and future growth

• Improved data integrity and accuracy

Ranger was initiated in our lease maintenance and construction south operations, located in the Eagle Ford Shale region of South Texas, in the fall of 2014. woodgroup-psn.com

We See Shale Differently.

We look at shale plays and see data. Data from the rocks, data from the wells, data from many sources.

We deeply analyze that data to reveal information and predict production for any well, anywhere.

That means fewer underperforming wells and more accurate reserve reports.

See how we can help you see shale differently, too.

www.OAGshale.com

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PUBLISHER'S NOTE

The SHALE team is happy to bring you the first issue of SHALE Oil & Gas Business Magazine in 2015! I know this is going to be a fantastic year for the oil and gas industry in Texas. I am eager to bring you latest news on the continued growth and success of our economic development as a result of the energy industry.

As a statewide publication, SHALE strives to bring you oil and gas news from every corner of the Lone Star State. I could not be prouder of this publication and the staff that works tirelessly to bring in the news we all want to know about the industry that is driving such amazing economic benefit to our state and nation! In addition to the local information we seek out and share each issue from the Eagle Ford and Permian Basin, I am anxious to share that we will be adding Mexico to our areas of coverage regularly in SHALE Magazine. Our neighboring nation has been in a state of change and development in terms of energy and we want to congratulate them and keep the public attuned to their progress as new processes and opportunities open up for them.

I would like to close by expressing how truly happy I am to open this year with an issue that celebrates women and their ability to start, grow, change and manage businesses and companies that are directly and indirectly connected to the oil and gas industry. As a female business owner, I like to encourage other women to reach their full potential and hold nothing back when it comes to achieving success in their professional lives.

Both genders have opportunities to get involved one way or another in the greatest industry in Texas. If you don’t believe me, take a look inside to see what some amazing women such as Christi Craddick, D’Ann Harper and so many others have been able to accomplish.

KYM BOLADO

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

SHALE OIL & GAS BUSINESS MAGAZINE MISSION STATEMENT: SHALE Oil & Gas Business Magazine is a statewide publication that showcases the dynamic impact of the Texas energy industry.

The mission of SHALE is to promote economic growth and business opportunities and to further the general understanding of how the energy industry contributes to the economic well-being of Texas and the United States as a whole. SHALE’s distribution includes industry leaders and businesses, service workers, entrepreneurs and the public at large.

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ADVISORY BOARD SCOTT COURTNEY

JAMES M. SUMMERS

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

KIMBERLY WEBB

Kimberly Webb is the business development manager for Chemoil Energy, an oilfield service company specializing in frac fuel operations. Webb is in charge of managing and marketing the Texas region, and she is committed to improving the efficiencies of the oil and gas service industry. Chemoil Energy is a division of Chemoil Corporation that sells and markets five-plus billion gallons of commodities worldwide. It is the world’s leading integrated producer and marketer of commodities.

Scott Courtney, P.G., is the president of Premier Hydro, and he has more than 30 years of background, education and experience in oil and gas, water resources, environmental management and business development. He was raised in West Texas, but he has made South Texas his home since 1984 while working around the country in major programs for the Department of Energy, the Department of Defense and the oil and gas industry. Over the last four years, he has focused on the Marcellus, Permian Basin and Eagle Ford Shale plays. He is the 2013 South Texas Wildcatter Committee chairman, and he has made a career of sustainable development and production of natural resources.

THOMAS TUNSTALL, PH.D.

Thomas Tunstall, Ph.D., is the research director for the Institute for Economic Development at the University of Texas at San Antonio.

Previously, he was a management consultant for SMEs, and the former Component 1 Team Leader for the Azerbaijan Competitiveness and Trade project. He has also served as an advisor relations executive at ACS, and was the founding co-chair for the Texas chapter of the International Association of Outsourcing Professionals (IAOP). He has published a business book entitled “Outsourcing and Management” (Palgrave 2007) and was the technical editor for “Outsourcing for Dummies” (Wiley 2008).

Tunstall has consulted in both the public and private sectors. In 2006, he taught Ph.D. candidates in a business and government seminar at the University of Texas at Dallas, and in 2005, he completed a long-term assignment in Afghanistan, where he was deputy chief of party for a central bank modernization project.

SAVE

DATE

Guest Speaker,

Todd Staples

For more information or to

BECOME A MEMBER contact 325.795.4206 or membership@wtxec.org

President of Texas Oil & Gas Association

Thursday, January 29th Midland, Texas 10

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JAN/FEB 2015

The Event will be hosted

by WTxEC member

Where industry comes to speak.

Join us on February 7th at 10:00 pm Oil & Gas Players | Busin e ss Technology | Policy

sponsored by :

sponsored by

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CONTRIBUTORS

David Blackmon is a managing director of the FTI Strategic Communications practice and is based in Houston. Throughout his 34 year career in the oil and gas industry, David has led industry-wide efforts to develop and implement strategies to address key issues at the local, state and federal level.

David has more than 15 years experience working legislative and regulatory issues in Washington, DC, Texas and other states. He is a recognized subject matter expert on a variety of oil and natural gas issues, and regularly offers testimony at legislative hearings. David is currently a contributing columnist for Forbes. com, focusing on public policy issues affecting the oil and gas industry. He also writes regular commentary for World Oil Magazine.

Douglas Sterling Cain is the president of Lake Truck Lines, which has enjoyed a 300 percent growth over the past two years. Cain links the company’s recent success to a decision to move headquarters from Houston to San Antonio, believing it all happened by “grand design.” The company arrived in San Antonio with 12 trucks, and it is now operating close to 100, quickly becoming the solution for custom oilfield equipment and tank manufacturing, as well as oilfield transportation and logistics. Cain prides himself on being innovative and “staying ahead of the curve.” Out of his desire to make oilfield jobs safer and more effective, he launched subsidiary company Lake Oilfield Services, which already manufactures six different types of oilfield equipment. As Cain sums up in his own words, “honor and integrity are incredibly expensive on Monday, but the dividends show up on Friday.”

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

Gloria Leal is an attorney and government affairs consultant in Austin, Texas. Ms. Leal has a solo practice primarily relating to energy, environmental and healthcare/ insurance matters. She represents the Texas Alliance of Energy Producers, a national association of independent producers and service providers, and other clients. Ms. Leal is former General Counsel and International Counsel of the Texas Department of Insurance and represented the Department in international financial services negotiations with Mexico. She was also an Assistant Attorney General in the Energy and Transportation Divisions. A graduate of the University of Texas School of Law, she can be reached at GLealLaw@sbcglobal.net.

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Thomas Tunstall, Ph.D., is the research director for the Institute for Economic Development at the University of Texas at San Antonio.

Previously, he was a management consultant for SMEs, and the former Component 1 Team Leader for the Azerbaijan Competitiveness and Trade project. He has also served as an advisor relations executive at ACS, and was the founding co-chair for the Texas chapter of the International Association of Outsourcing Professionals (IAOP). He has published a business book entitled “Outsourcing and Management” (Palgrave 2007) and was the technical editor for “Outsourcing for Dummies” (Wiley 2008). Tunstall has consulted in both the public and private sectors. In 2006, he taught Ph.D. candidates in a business and government seminar at the University of Texas at Dallas, and in 2005, he completed a long-term assignment in Afghanistan, where he was deputy chief of party for a central bank modernization project.

David J. Porter was elected statewide to serve a six-year term as Railroad Commissioner in November 2010. Commissioner Porter has been appointed to the Interstate Oil and Gas Compact Commission as the Official Representative of Texas and in 2015, will serve as the Second Vice President. He has also been appointed as the official representative on the Interstate Mining Compact Commission and currently serves as an advisory board member for the Texas Journal of Oil, Gas and Energy Law.

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

Rob Patterson is an Austin based writer and editor whose work has appeared in numerous consumer and trade magazines, daily and weekly newspapers, and a number of web publications. He writes about news, personalities, politics, film, music, food, buildings, education, books, energy, culture, travel and much more that catches his diverse interests; he also pens and edits marketing communications copy for corporations, businesses and individuals. He can be reached at to rpwrites@gmail.com

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

EAGLE FORD SHALE | PERMIAN BASIN | HAYNESVILLE SHALE | MARCELLUS SHALE | WILLISTON BASIN | BARNETT SHALE

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

• Skid Steers • Steel Wheeled Rollers

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

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

• Secondary Containment

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OTGSERVICESTX.COM JAN/FEB 2015

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FEATURE

W O M E N

IN ENERGY

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business, visit one of our shale operational locations to lead a discussion on HSE requirements and conclude the day by visiting the YMCA officials in Shreveport to talk about their new building that BHP Billiton is sponsoring.

What are some of your career achievements you are most proud of?

Geraldine Slattery BHP Billiton General Manager, Haynesville Fayetteville Production Unit Tell us about your typical work day.

My work day is comprised of a diverse range of activities: from HSE performance to field development to organizational planning to financial performance. It is the diversity of my day that makes the role so interesting and rewarding. Visiting our field-based operations is also an important part of my role in support of both the production operations and also the drilling, completion and construction activities that bring new wells into production. I am also the management representative who is responsible for building and maintaining strong relationships with stakeholders in our local communities.

On any given day I might participate in a performance review of newly completed wells in the Haynesville area where we are trialing new completion designs, agree on actions to improve the productivity of our JAN/FEB 2015

The accomplishments I am most proud of are those that have enhanced safety performance on our operations, in both process and personal safety. We work in a high-hazard industry, and I firmly believe that when safety is integrated into our business model, from facility design through to operational practices, we can achieve an incident-free workplace. Having confidence that people will go home safely each day is very important to me.

I am also very proud of the accomplishments that have been delivered through a collaborative team effort. None of us have all the answers, and it is only by working together in an inclusive environment that really allows people to perform at their best and produce superior results. I really enjoy creating a work environment that gives people the space and encouragement to do great work, and allows them to have fun doing it.

What did it take to get to your career status today?

I am not sure there is any one thing. I enjoy diversity of experience and that has made me open and adaptable to different roles within the business and to different geographical locations globally. Whilst the bulk of my career has been in technical business roles, I have also had roles in HSE and supply leadership which have allowed me to see the business from different vantage points.

This breadth of experience has broadened my perspective on the business and given me a deeper understanding of what it takes for a business to be successful, both in a quantifiable financial sense and also relative to the more intangibles, such as organizational culture and reputation with regulators and the community.

Having many years of direct field experience has also been invaluable to me, in understanding first hand what it takes to achieve a safe and productive operation. I have learned that the many hours of highquality engineering and planning that take place in an office environment, remote from our operational locations, is only meaningful if it is produced with the practical realities of our facilities in mind.

What aspects of your position do you find enjoyable or fulfilling?

I love the diversity of the role and the depth and breadth of the organization. Being in a position that can impact our performance as a business and our contribution to the wider community provides me with great satisfaction. I get to be a part of the long-term planning for this business and also directly impact its performance today, doing so in close collaboration with a very talented group of people at BHP Billiton and also interacting directly with our industry and community stakeholders.

The onshore U.S. shale business is particularly fulfilling, as BHP Billiton and the industry as a whole are on a technological and performance learning curve with a long future ahead of us – innovation and technology are key to superior performance in this business, and being a part of that learning journey is a very exciting place to be.

What advice would you give to other women interested in getting into predominantly male industries?

This is a great industry, regardless of your gender, providing long and fulfilling career opportunities.

It is also fast-paced, competitive and technically demanding, which will give rise to challenging, but ultimately very rewarding, experiences. I have found that having mentors, both male and female, has been a great enabler throughout my career. Dialogue and discussion with experienced colleagues has often helped me find perspective and allowed me to see challenging situations through a different lens. I suspect this tactic is not gender- specific; however, the nature of the challenges can be different, contingent on your personal identity, and that’s what makes those mentor conversations so valuable.

Sarah Smith Halliburton Vice President, Health, Safety and Environment (HSE) and Service Quality

Tell us about your typical work day.

What did it take to get to your career status today?

There isn’t a typical work day for me, which is one of the things I enjoy most about my role.

My team and I are responsible for leading the organization’s Health, Safety, Environmental (HSE) and Service Quality (SQ) strategy and programs.

We work as business partners with our peers in over 80 countries and across Halliburton’s 13 global business lines to ensure safe and environmentally-responsible operations.

On any given day, I work closely with my team in areas like improvement, compliance and verification. I have the opportunity to represent Halliburton on various industry groups as well as work with our industry peers on how to raise the bar for safety and drive improvements. We all share the goal of sending each team member home safe each day.

Never being satisfied with the status quo and always looking for ways to drive improvements and exceed expectations. Also, continuously innovating and providing value for internal and external customers as our business is customerdriven and customer-focused. Having a certain work ethic and leadership qualities and characteristics also help contribute to success – those include hard work, continued education and training, seizing learning opportunities, striving for excellence in everything you do, motivating others, looking at the big picture and providing a vision, and relentlessly focusing on going above and beyond to achieve – or even exceed – business goals and objectives.

What are some of your career achievements you are most proud of?

Learning various aspects of the business allowed me to transition from supply chain/ manufacturing into HSE and Service Quality.

My career path within the company allowed for a broadened experience beyond my trained background. Working in different job functions helped diversify my skills and provided me with knowledge that I applied in each of my previous roles, including Manager of Roller Cone Manufacturing for Drill Bits and Services, Manager of Sperry Drilling’s manufacturing and Director of Manufacturing for Drill Bits and Services.

What aspects of your position do you find enjoyable or fulfilling?

No day is the same – each day brings new challenges and opportunities. Interacting with employees across all levels of the organization, working with customers and representing Halliburton in various industry groups is enjoyable and fulfilling.

What advice would you give to another woman interested in getting into predominantly male industries?

No matter the industry or your gender, there are certain qualities and characteristics that are important when trying to enter any industry or achieve career success. I referred to some of those qualities in the third question.

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FEATURE

Taking Care of Texas. It was such an honor to discuss conservation and reclamation processes with her, and show her how our companies work in the area.

What did it take to get to your career status today?

That is a great question. I refuse to fail. Not that I don’t, but it isn’t for lack of effort. Learning from every situation and never thinking I know everything. If you keep an open mind and work hard, along with a genuine passion for what you do, it becomes less about the work. Also, a sense of humor helps, gets you through the tough days. Also, I have had the honor of having the best bosses and mentors who have fostered my growth through the years. There is no way I could have gotten to where I am today without their guidance.

Haley Curry South Texas Energy & Economic Roundtable (STEER) Director, External Affairs

Tell us about your typical work day.

The greatest part of my job is that every day is different.

Whether it is a speaking engagement with an organization, meeting with local officials and chambers in the Eagle Ford, or interviewing the local and regional media, you will most likely find me in my car somewhere south of San Antonio between Gonzales and Carrizo Springs. Other than that, I meet with our member committees to plan and execute initiatives in stakeholder relations, education, advocacy and environmental enhancement in South Texas. Rarely are two days the same, which is something that drew me to the position in the first place.

What are some of your career achievements you are most proud of?

I probably would have to say the evolution from womenfocused nonprofit work in the oil and gas industry. The industry is driven on innovation and technology. I was very fortunate to work for a company that believed in educating their employees. Within the first month, I was on rigs and hydraulic fracturing sites with the superintendent learning every part of the process, and within the next two months hosted my first media rig tour. I have never looked back since. If I had to pick one other, it would be hosting former First Lady Laura Bush on a rig tour in South Texas with

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What aspects of your position do you find enjoyable or fulfilling?

That is easy, the people I work with every day. The oil and gas industry is one of the only industries I know where a college-educated engineer and a high-skilled employee who has worked on rigs since high school are on the same planning field. The people are genuine and the work we do is important to the economy and to the energy independence. Also, the work we are doing in workforce education. In 2015, STEER will launch our education program in the Eagle Ford region for middle and high school students. This program will make students aware of the industry working around them and the careers that await them upon graduation from high school or college. Not only is that important, it the part of our work as well.

What advice would you give to another woman interested in getting into predominantly male industries?

Like Nike says, “just do it.” I know that is cheesy but it is also very true. Both women and men are needed at the table. Women provide a dynamic workforce that is necessary everywhere, especially in the oil and gas industry. Be sure of yourself and the skills you offer, and be adaptable to change. I could go on and on based on that topic. Our industry might be maledominated, but I am happy to see that it is steadily changing. A group of us started the Women’s Energy Network South Texas Chapter two years ago, and today we have almost 300 members. Every event sells out and the board has been astounded at the rapid growth in such a short time frame.

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Cover Story 20

PHOTOS BY MALCOLM PEREZ SHALE OIL & GAS BUSINESS MAGAZINE

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C

hristi Craddick: Remember the name. That’s the very distinct impression the Chairman of the Texas Railroad Commission gave in a wide-ranging twohour talk with SHALE in early November, and it’s not just because she is one of leading figures in the new oil and gas boom currently underway here in the Lone Star State, if not the central person to making the most and best of it. Having become the agency’s Chairman last August after being elected to one of its three Commissioner positions in 2012, she very much seems to be the right person in the right place at the right time.

Our goal was to discuss with Craddick the four Ps, as it were: public service, policy, politics and who she is as a person – all so the oil and gas industry that her agency oversees and regulates can get to know her better. What we came away with was the pleasure of conversing for nearly two hours with an indeed memorably impressive woman.

Poised yet open, smart and a highly-informed wellhead of knowledge about the industry, warm, quick to laugh yet utterly professional, she related to us as both Madame Commissioner as well as Christi. She can rattle off the facts and figures essential to her job in a snap, and knows her geology, technology and other elements of the oil and gas game down cold. Craddick also showed

Bringing a Vision to the Commission for Today and The Future The view from Craddick’s 12th floor office in the William B. Travis State Office Building at 17th Street and Congress Avenue is quite broad, scenic and even a bit spectacular, looking south over downtown Austin to the hills that rise beyond. Close by at its center through the large picture windows looms the State Capitol rotunda.

With the oil and gas industry helping to drive the “Texas Miracle” of economic growth, the times call for someone of vision to take the lead in the contributions of the energy industry to further and sustained state success. With the 84th Texas Legislature convening at the start of 2015, it looms large as to what the Railroad Commission must address.

Craddick expressed a clear sense of the agency’s mission and challenges when she ran and was elected in 2010. One of them was to increase the Commission’s efficiency to meet the need of an industry on the rapid rebound in Texas, and to especially decrease the time it takes to get drilling applications approved by ramping up its staffing and modernizing its computer and online systems.

The agency has made significant progress on those fronts. So what

regulating

COVER STORY

the

industry Texas Railroad Commissioner Christi Craddick BY: ROB PATTERSON

herself highly conversant in both the agency’s and industry’s history, and can easily slip into a brief aside discussing, for instance, architecture, among other topics unrelated to her professional responsibilities, with a firm knowledge of the fields.

Hence it is all but destiny that she will leave her mark on the Railroad Commission (RRC) as well as the Republic of Texas, in which today, thanks to the shale revolution of the last 10 years or so, oil and gas is one third of the state’s economy. She also makes her imprint on the Texas Republican Party, for which she served as Chair of its obviously very successful “Victory 2014” effort. Hence it’s a sure bet that party officials, both here and nationally, must see her, at age 44, as a potential shining star on the political horizon.

After all, it’s a momentous juncture in the state’s oil and gas business as well as at the Commission, to which Craddick readily agrees. “It is a very interesting time to be at the Railroad Commission. It is a very interesting time to be in and around the oil and gas industry. And you’re right, it is somewhat of a pivotal time I think.”

does Craddick now see as its short and long term goals?

“Going forward it’s still about staffing, first and foremost: Finding good people and keeping good people,” she stresses. “We’re competing with an industry where its starting salary is $120,000, and we don’t pay anywhere near close to that. But we have added some dollars as far as that, and we’ll go back to the legislature this cycle to ask for the ability to use some of the funds we’re bringing into the state as an agency to add some additional people, particularly in pipeline safety and inspections, as well as inspectors in oil and gas drilling operations, and to continue to add some people into the permitting area.

“We’re also trying to continue our IT upgrade,” she points out.

“When I started almost two years ago, that was one of the things we wanted to do: make it more efficient. But also make it more transparent over here. And make it easier to navigate this agency, get our permits more timely. So we’ll be back at the legislature asking for additional dollars to put into IT; actually we have the dollars JAN/FEB 2015

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and will be asking to use those dollars. The long-term goal is to get all of our oil and gas permits online.”

During this year’s legislative session, “for us as an agency, we hope this will be a budget cycle,” she stresses, shrugging a bit to accentuate her hopes. “That’s the main thing as an agency we are going in and talking about.” But some of the key overall issues facing the legislature this year – water, transportation and infrastructure, and possibly eminent domain – involve and have a direct impact on oil and gas activities.

“We are ready for where we can be a resource or expert witness for those issues and any others that come up this session,” Craddick notes.

“They’re all still timely issues even though the legislature took a big cut at water in particular in the last session as far as funding. Who controls the water and how we continue to use water in the state continues to be a conversation. They took a good bite at the apple on transportation with the constitutional amendment that passed about a week ago.”

Craddick is no stranger to that august body. Her father, Representative Tom Craddick, was first elected from Midland to his office a little over a year before his daughter was born in 1970, and served as Speaker of the House from 2003 to 2009 (and was the first Republican to do so since Reconstruction). Christi served as an advisor to her father from 2002 to 2011. If anyone is capable of making the Railroad Commission’s goals a priority and pulling a few key levers and strings at the legislature, it’s her.

A Statewide Seat With National and International Impact The view south from Craddick’s office also looks towards the Eagle Ford Shale, an important component in today’s Texas energy industry. And a region that the “Texas Miracle” of economic success over the last two decades had largely passed over until drilling began there some eight or so years back.

“It always amazes me when we go back and look at numbers from this agency. In 2008, we permitted 26 wells in the Eagle Ford. And we’re almost at 4,300 as of the end of October,” she notes. “A lot of those are big horizontal wells. That’s a huge amount of growth. It’s real opportunity for South Texas. And real job growth down there. And it’s not just a today growth, I think it’s a long term growth.”

And her view as Commission Chairman extends beyond the state’s southern the border. “It’s opportunities from San Antonio in everywhere all the way south. Not just in Texas. With Mexico now opening up it’s markets, it’s real potential long term continued growth.

“I want to praise Mexico and their president for what he’s already done in just the last 21 months now,” Craddick stresses. “I think Mexico saw the growth that was going on in Texas and said, we know the Burgos Basin” – which is the geological extension of Eagle Ford south of the border – “is right there, and our technology is behind in oil and gas. Let’s figure out what we can do. I think that’s an opportunity for job growth across the whole region.”

Hence the Commission has become involved in assisting our neighboring nation to the south. “They have some rules they’re trying to put in place in the next year. At the Railroad Commission we’re trying to work with PEMEX and their federal government.

We’ve met with their government to tell them what our rules are. I think they’ve got an aggressive way to put their rules into place in a year. It took us a year-and-a-half to do our casing rules. So I’m impressed that they can do it that quickly. But I think it’s three to five years until we see them actively trying to develop the Burgos Basin. We’ll see what they can do,” she says.

Her purview also extends to the Middle East and Saudi Arabia, especially with the drop in oil prices around the time we met and an OPEC meeting that followed our talk by about two weeks. “It was nice at the pump for me yesterday,” Craddick happily notes. But on the other hand, she has to be mindful of the economic and geopolitical

Craddick expressed a clear sense of the agency’s mission and challenges when she ran and was elected in 2010

PHOTO COURTESY OF CHAIRMAN CRADDICK

consequences and how they affect the Texas oil and gas industry as well as our nation and hemisphere.

“The Saudis and OPEC have controlled the price of oil for a long time now,” she explains. “But we have to look in the long-term to shipping oil overseas. People are sometimes nervous when you have that conversation because they don’t understand it.

The reality is this: We have some constraints internally in this country as far as shipping; pipelines are being built, and they’re being built quickly. Companies are seeing the economic opportunity so they’re building the pipe.”

But there’s a struggle going on with OPEC. “The gap between the international crude market and the West Texas intermediate crude has been as high as $14. Last week it was $67 at the well head in West Texas, and that’s becoming uneconomic out there,” Craddick observes. “We’ll have to see what OPEC does in the next few weeks. It may slow us, it may dip us, but not shut us down – normal cycle.

“I think if Texas continues to lead and the United States opens up our oil market internationally with our friends in Mexico and Canada, we can get off imported oil,” Craddick predicts. “And part of the reasons that the Saudis don’t like us this week is that we are importing 700,000 barrels less of their crude than we were a year ago.”

A Newer, More Modern and Responsive RRC “It’s a fun time to be here,” says Craddick of her job. “It’s a different project every day and a different challenge. And that makes it even more interesting.” She is just as concerned and involved in the day-to-day activities and recent industry and state events as the big state and global picture. “Texas to me had always been a leader in this industry to begin with. But I think it is even more important now for us to continue being a leader. We have redone several rules in the past two years, particularly Rule 13, our casing and well integrity rule, and I think we

“I think if Texas continues to lead and the United States opens up our oil market internationally with our friends in Mexico and Canada, we can get off imported oil,” Craddick predicts.

are the leader in the country as far as that particular rule, and recycling. Those two rules to me are some of the most important rules that we’ve done. We are always looking at rules anyway, and I think that best practices are important.”

Her goal of more rapid agency responsiveness shows its success in dealing with the more than 30 earthquakes that hit the Azle area in the Barnett Shale play since late 2013. The Commission hired its first seismologist at the beginning of last April, held hearings in Azle, and in late October instituted new rules governing injection wastewater wells that some attribute as a cause of the earthquakes. “I think it was pretty quick for an agency, and it will give us the tools if and when we need them to go get information on injection wells if there are issues,” she notes.

Nearby in the Barnett play is Denton, which voted in November to ban hydraulic fracturing in the city limits. At the time of Craddick’s interview, the Commission had not decided whether to join with the General Land Office and the Texas Oil & Gas Association in filing suit against the law. The three Commissioners were meeting the next day to discuss the situation (among other matters). The Texas RRC did decide to continue issuing permits to drill in the city limits.

“We’re all discussing what’s appropriate amongst the agencies,” she reports. “Obviously we have to respect the vote. They banned a completion technique; they didn’t ban permitting. We will be continuing to permit because that’s our job as an agency. We haven’t historically ever, that I’m aware of, looked at what local ordinances are before we give a permit. This is a completion technique that companies use before they complete a well; it’s not the only technique.

“As an agency we believe that we have a right and responsibility to continue to give drilling permits,” Craddick adds. “Mineral owners have primacy over surface owners in this state. That’s the way it’s historically been. It’s case law, it’s the way it’s always worked here.”

She has also been involved in supporting two different educational efforts. One is preparing new generations to work in the industry and help overcome its current workforce shortage. “Somebody came up to me after a speech I gave on the industry

outlook recently and said: Where are you going to get the people? And I said, ‘I don’t know.’ And I don’t just mean us as an agency. So that’s a long term challenge for the industry,” she points out.

“There have been people who have worked as roughnecks etcetera out on these rigs for years and years. You’ve now got to teach a new generation to do that. So that is a long term challenge that I think we’ve all got. I have met with some of the higher education groups, whether it’s at the technical colleges or the universities, and there’s a lot of conversation going on not just within my agency but obviously at the legislature as well about how, as a state, we can continue to make sure we have an educated workforce. I’m personally excited to now see how some groups are going in and educating at the junior high and high school levels, because it starts there, and get some of these people workforce ready coming out of high school,” says Craddick.

The other is joining with the industry to help better educate the public about hydraulic fracturing and other drilling techniques. “There’s a lot of misinformation out there,” she notes.

Part of the purpose for the RRC’s IT upgrades is to enable the agency to offer more in-depth information on oil and gas activities and drilling technology, and to enable citizens to access specific information when they need it. “One of the things we want to make sure of with our IT system is that the GPS systems are being upgraded. The next version is coming out in the next couple of weeks,” she reports.

“If you’re down the street from somebody, and they’re drilling a well, or they’ve got a pipeline in your backyard, you want to know what’s going on. It’s my agency’s job to make sure you know what’s going on and that the information is made available to you. I don’t think people understand that there’s a lot more going on with agencies than they see on a daily basis. If I had a well in my backyard, I’d want to know what’s going on and who the operator is and that they’re following the rules – I think that’s common sense,” she points out.

“We’ve been fracing in Texas for 60 years,” notes Craddick. “This is not a new technology in Texas. As an industry, oil and gas is the second most technologically advanced industry in the world. Fracing has come leaps and bounds because of increased technology. But there is not any place in this state – and actually the head of the EPA agreed with my statement earlier in the summer, she said nationwide – that fracing has caused any problems with water. That’s the facts. If there was an issue, let me tell you, it’s my job to make sure there’s not and that companies are doing it well.”

Poised Between Public Interests and Serving a Vital Industry Being Chairman of the Texas RRC involves a balancing act. “I think that’s always a challenge as a regulator – to make sure, one, that everybody knows that you are responsible to the entire state, and it isn’t just us as regulators,” Craddick explains.

“I talk to other state regulators, and they also see how if we say one thing everybody thinks we’re oil friendly. If we say another thing, everybody thinks we’re environmentally friendly.

“Look – the goal is to have consistent regulations, and use science when you are doing your rules and putting them into place and enforcing them,” she adds. Her enthusiasm about the industry and understanding of its technology and mechanics – even though she was a Plan II liberal arts student at the University of Texas before attending its law school – plus seeing her mission at the RRC as one of public service have their roots in her Midland upbringing.

“My dad’s in the industry and sells mud and puts together deals. So if you grew up out there, even if your dad or parent wasn’t directly involved, you were still involved because that’s what that whole community was about,” she explains. “And I think it’s an interesting industry. And as I became a lawyer I decided that the environmental piece is interesting, and oil and gas, and administrative law always interested me. But the other thing in West Texas that’s a huge thing is water. So water became a passion of mine, because if you grew up in West Texas you were thrilled when it rained, no matter if you’re in drought like we are now or not. Those issues I took away from West Texas.” She pursued them all in her work for law firms after becoming a lawyer.

There is also a service to others component that reflects her family background as well as a tradition within Craddick’s Catholic faith. “I grew up in a family that was very active in the community. So we learned that it was important to do community service. Mother was chairman of the chamber at one time and active on the hospital board, and at one point was chairman of my brother’s and my PTAs; we went to different schools,” she points out.

As well, “I was interested in politics, but I never thought I’d run for office. I went to JAN/FEB 2015

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Part of the purpose for the RRC’s IT upgrades is to enable the agency to offer more in-depth information on oil and gas activities and drilling technology, as well as enable citizens to access specific information when they need it my first Republican state convention when I was 12. But I was always interested in behind the scenes, what I call it the back of the house part – helping people in their campaigns, block walking and phone calling. It morphed into fundraising after I got out of law school at some point. But I wasn’t ever going to run for office.

That was a big step for somebody else to do.”

But then that big step came knocking at her door, or less metaphorically, rang through to her family home. “The week after the 2011 session my father got a phone call,” she recalls.

“The rumor was out that Michael Williams was going to resign early from the Railroad Commission. Was he interested in becoming a Commissioner? No, he wasn’t. Did he know anyone who was potentially interested? My Dad came in and told me that, and I said, I’m interested. And my mother was sitting down and about fell out of her chair. She was like, you what?

“But I said, look, this is a great agency. It was going through sunset. I sat through the Sunset Commission hearing the month before.

I was concerned about this agency and the people who wanted to be here. Oil and gas is an important part of this state’s economy, 33 percent now. And I had grown up in it. I understood the importance of the industry. But I also knew that the industry isn’t perfect and you still have to have good regulations in place.”

She eventually ran for the RRC seat, held then by Elizabeth Ames Jones, for a full six year term. And against former State Representative Warren Chissum, who had been one of her father’s primary aides when he was Speaker. And who is, she says, “a lovely man and a really good friend. I believe I just worked harder and raised more money.” And in her typical thoroughness, “We went to 50-plus counties and hit pretty much all corners of the state. We talked about issues and talked to people about what my vision was and what they thought that the issues were at the Railroad Commission.”

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A Practical Politician and Public Servant

important for people to know who we are as an agency so they can come over here and ask questions. But until the legislature gives us a new name, number one, and changes the name constitutionally, I think the name can stay.

“And there are some things that we get from the federal government that we have primacy on, underground injection wells being a good example, and we don’t want to lose those and have the federal government think we have changed substantially, whatever that means, and the EPA specifically,” Craddick points out.

“So I think we need to be very careful about changing our name or anything substantially unless we are doing it constitutionally. It’s a protection for us and frankly what we do as an agency.”

She does point out that “if you want a national energy plan, we are a good example.

As a state we have the highest amount of renewable energy in the country, highest amount of wind. So if you want a perfect example of a national energy plan, come to Texas, because we use it all. And we use it all well.”

Craddick’s official bio says that she is a pragmatic conservative. Asked to define that further, she explains, “I consider myself a Reagan conservative; a fiscal conservative. Family values are important. But you also have to know how to govern and work and communicate with people, and that is the pragmatism part of it.”

And then adds, “The DC model does not work here.” Hence, “We’ve opened up this office to people like the EDF [Environmental Defense Fund] and groups that aren’t always aligned with traditional oil and gas views and people that may have thought they weren’t welcome her, but they are in my office. You’ve got to work with everyone.”

Craddick currently lives in the Tarrytown Which means she also has to interact with neighborhood of Austin with her daughter the federal Environmental Protection Agency Catherine, who she adopted when she was (EPA) even if, like many in Texas and the oil and gas industry, she is not happy with aspects of it. “One of the biggest challenges we’ve got with this new clean air rule – besides that it’s not clear how it affects us all and we’re all still trying to figure it out – is that everything that we’ve done going forward in Texas to be the biggest in renewable with wind, none of that counts. So it’s very onerous on us,” Craddick explains.

“We need to have clean air and clean water, there’s no question.

That’s one of the things that we want to make sure of when we regulate and write our rules.”

The RRC’s relationship with the federal government is also a factor in the ongoing matter of changPHOTOS COURTESY OF CHAIRMAN CRADDICK ing the name of the agency, as it hasn’t regulated railroads since 1984 when the federal government running for office and who just turned three deregulated the industry. The Sunset Commisyears old last Thanksgiving. “Families are sion recommended a new name in its recent important. My mother has 40 first cousins, review of the RRC, and Craddick supports something like that. My Dad has a large family the notion, though with certain provisos and too,” she points out. “You get to a certain age understandings. and say, well, I haven’t stopped to get married “I think a name change is a great idea,” she yet. But I really want.... We have a bunch of explains. “This agency and people who work adopted kids in my family. Catherine is one for this agency love the Railroad Commission of 12. A big family tradition. So I thought, I’m name, by the way. But here’s our big challenge going to try adoption. It’s hard anyway, but it’s as far as a name thing: One, historically it’s a harder as a single parent. And if it works, and great name. And once you get over here you I hope it works and pray it works, then that’s realize that it’s not as big a priority, but it’s great. And along she came. She’s great. We have a great time.”

The Woman Behind the Chair

As an independent woman with an impressive resume even before she ascended to a state government power center, does Craddick consider herself a feminist? “I’m not sure what that means for my generation. I think if you are smart and have opportunities, it doesn’t matter if you are male or female. I’d love to see more women want to run and be elected to statewide and other offices.” In fact, with Comptroller Susan Combs’ term expiring in December, “I’m going to be the only non-judicial statewide female official.”

She does display an impressive facility with the technical, mechanical and scientific matters related to the industry she regulates. And not just for a woman but someone of any gender. In what may seem ironic at first blush, Craddick credits her undergraduate liberal arts education for that. “I guess I’m a generalist and I think it’s my liberal arts background.

I was a true Plan II person. I didn’t concentrate in anything and took a class in most of the colleges over there and I loved it.

“I just love knowledge and love information,” she adds, “and I think being a true liberal arts major you are always looking for new ways to look at things and answers.”

Asked towards the end of the interview if there is something about her that the public may not know and might be surprised to learn, she is at first stumped by the question. “I don’t know,” Craddick ponders. “Kinda what you see is what you get with me.”

Her Director of Public Affairs, Lauren Hammer, who is sitting in on the interview, chimes in. “She’s a lot younger and hipper than you would imagine. Often we will be in the car and she’ll say something, and I say, you know what that is?”

“This comes from a 31 year old,” Craddick points out with a chuckle.

On the other hand, she is someone who says in a youthfully-phrased aside during the interview, “I think technology is really cool, by the way.”

What may not largely be known about her is that “I’m a huge sports fan. I loved playing sports and watching sports” in her youth. (Her high school years were when the book about Permian Basin high school football, “Friday Night Lights,” was being written.) “That’s a big reason

I came to the University of Texas even though their football team was on a bit of a dip at the time. I’m probably more current on college football than most men. And basketball too,” she says.

“The other thing people don’t know is I am actually an introvert,” Craddick adds. Which is hard to believe given how engaging she is as an interview subject.

Though she is only two years into her first elected office term of six years, speculation has already started about Craddick’s political future.

“The reality is this: I have four more years here,” she explains. “I like being here. We’ll see what comes. I don’t have an answer to that. No preconceived idea. We’ll see. I may be here again. I may move to higher office. I may decide that this part of my public service is done and go do something else.

“But for four more years I want to make this agency a better place and a better part of the community, and that’s what I am here for.”

For more information: Visit www.rrc.state.tx.us to learn more about the Texas Railroad Commission and Chairman Craddick.

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INDUST RY

LOOKING FORWARD TO MORE ECONOMIC GROWTH IN 2015 BY: OMAR GARCIA

W

ith 2014 coming to an end and the development in the Eagle Ford Shale continuing to make positive economic impact, I’d like to take a moment to thank all of our community partners for their commitment to South Texas growth over the last few years.

We recognize that the sustainable growth of the Eagle Ford Shale region is dependent upon the cooperation of the entire community.

Partners including elected officials, community leaders and educational institutions throughout the Eagle Ford Shale region have worked with the South Texas Energy and Economic Roundtable (STEER) collaboratively to ensure their communities are a top priority for the oil and gas industry.

Educational institutions, from K – 12 up to college level and trade schools, are stepping up to the plate by offering workforce training and education to prepare students for a career in the oil and gas industry. We saw evidence of these new programs at this year’s Eagle Ford Excellence Awards when United ISD was honored for starting the state’s first high school oil and gas program, and Karnes City ISD received recognition for their efforts in advancing science, technology, engineering and math education.

As we close out 2014, I am encouraged by the positive trends in the economy, innovation and education in the Eagle Ford

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Beyond the oil and gas industry, small business owners have continued to help communities of Eagle Ford thrive. They have adjusted their business practices, started new companies and successfully adapted to the Eagle Ford Shale business environment.

In 2014, we saw quite a bit of innovation within the industry with a continuous effort to protect and improve the environment and communities of the Eagle Ford Shale through new technologies. Some of these advances were also recognized at the Eagle Ford Shale Excellence Awards with both NuStar and Aggreko receiving top honors.

I would also like to thank STEER members who have continued to work with the communities of the Eagle Ford Shale and who stand by their commitment to protect and preserve the health of the environment, communities and individuals. The continued support of STEER member companies is important for fulfilling our mission of connecting the oil and gas industry to the Eagle Ford region.

As we close out 2014, I am encouraged by the positive trends in the economy, innovation and education in the Eagle Ford. We look forward to a successful and collaborative next year for the sustainable growth of South Texas.

Thank you, and happy holidays. See you in 2015!

For more information: Email us at info@steer.com.

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INDU S T RY

THE DAWN OF A NEW ERA BY: ARTURO F. HENRIQUEZ AUTREY

O

n Aug. 11, 2014, President Peña Nieto signed the secondary legislation related to energy matters into law as a result of the Energy Reform Decree, which was enacted on Dec. 20, 2013. Among the key features of the Secondary Legislation that relate to Petróleos Mexicanos´ (PEMEX’s) operations are the following:

Exploration & Production (E&P) • The technical terms of E&P contractual arrange- ments will be defined by the Secretariat of Energy, through the technical assistance of the National Hydrocarbons Commission (CNH). The economic terms will be determined by the Secretariat of Finance.

• All duties and royalties that the Mexican government derives from E&P activities will be managed by the Mexican Petroleum Fund for Stabilization and Development. The Income Tax and Hydrocarbons Exploration and Extraction Tax will be paid to the Secretariat of Finance.

• The sum of all assignments and contracts for the exploration and extraction of hydrocarbons in Mexico, other than deep-water activities, must have, on average, a minimum national content of 35 percent by 2025. This average minimum content level is expected to be reached gradually over time in order to prevent any disruptions or inefficiencies in the process of transitioning to the new legal framework for the Mexican energy sector.

Industrial Transformation • Downstream and midstream activities will be administered through permits granted by the Secretariat of Energy (SENER) and/or the Regulatory Energy Commission (CRE).

Considering the foregoing, the need to rethink corporate strategies could hardly be more urgent. Under the new framework established, clear strategies to redesign and restructure corporate organization have been developed.

PEMEX Transformation is Underway The Board of Directors of PEMEX approved the creation of the Chief Procurement Office (DCPA, its acronym in Spanish), which centralizes the purchases of goods,

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services, and operating leases and public works for all of PEMEX. This will improve the purchasing power of PEMEX to generate savings and develop standardized, streamlined, timely and more transparent processes.

We have incorporated the best practices at an international level, moving toward centralization and integration of our supply chain and smart procurement, and focusing on continuous improvement, innovation and transformation under corporate leadership.

This standardized scheme aims at generating value, aligning strategic objectives to corporate goals. For the first time in history, PEMEX faces the most challenging job: competition.

PEMEX is one of the 10 largest oil producers in the world, the third largest in the Americas. As of Sept. 30, 2014, total hydrocarbons production averaged 3.5 million barrels oil equivalent per day (mmboe/d) and the average number of operating wells totaled 9,450. During 2013, PEMEX spent $25 to $30 billion in equipment, services, leases and public works procurement procedures, awarding an average of 30,000 contracts per year.

The centralization of procurement is a catalyst for action to improve performance, business intelligence

The energy reform and the new legislation represent a paradigm shift in the management and sustainable use of Mexico’s natural resources, since it creates a more robust, independent PEMEX

and decision making, by developing new contracting methods and boosting integrated partnerships of suppliers and contractors.

PEMEX is evolving into a new purchasing philosophy by strategically sourcing through category management; that is, a transformation in the procurement methodology and supply chain management, by segmenting the procurement of goods, leases, services and public works in order to achieve the most favorable conditions of quality, timeliness and price, which covers up to 80 percent of the master budget.

Strategic sourcing is the axis of the transformation, as it will be carried out by multidisciplinary teams responsible for managing the budget based on business objectives.

2014 was a turning point for PEMEX. Mexico brings to the table an enormous potential and, without any hesitation, PEMEX will reach its full efficiency with the advantages of being a more competitive and profitable company.

The energy reform and the new legislation represent a paradigm shift in the management and sustainable use of Mexico’s natural resources, since it creates a more robust, independent PEMEX. The course of the company will be defined by the talent of our people and our ability to adapt. It is not an easy task, but nothing worthwhile ever is. We take great pride on being part of PEMEX new era.

For more information: Visit PEMEX online at www.PEMEX.com.

For more information please visit our website at Texas-ranch.com or our office located at 18756 Stone Oak Parkway, San Antonio, TX 78258

(210) 483-7500 | wphillips@cbharper.com

JAN/FEB 2015

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©2015 Coldwell Banker D’Ann Harper, REALTORS® All rights reserved. Each office is independently owned and operated. An Equal Opportunity Company. Equal Housing Opportunity.

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INDUS T RY

TEXAS NATURAL GAS: A COMMON SENSE SOLUTION TO A GLOBAL DILEMMA BY: COMMISSIONER DAVID PORTER

T PHOTO BY THINKSTOCK

The amount we spent on OPEC oil in 2013 – $132 billion – is enough to buy 4.5 million NGVs or build 66,000 natural gas stations

he first year of my Texas Natural Gas Initiative culminated at the Texas Natural Gas Summit in Austin, Texas this past October. Like many circumstances surrounding my Natural Gas Initiative, the summit exceeded expectations. There was an excellent turnout with the workshops at maximum capacity; we had to put monitors in the hallway and on the balcony to accommodate the overflow. For the corresponding job fair and natural gas expo, over 4,000 guests were in attendance – four times more than anticipated.

The growth of the Texas natural gas markets during the first year of my initiative was just as remarkable. In 2014, natural gas motor fuel displaced 16 million gallons of gasoline and diesel, more than double the forecast; the number of natural gas fueling stations increased by 50 percent to 104 stations. For the first time, the state’s 7,148 natural gas vehicles outnumbered those powered by any other alternative fuel. In addition, 15 percent of drilling rig engines in the U.S. now use natural gas fuel.

These figures confirm that Texas businesses are recognizing the benefits of transitioning to natural gas. It is affordable, abundant and clean-burning. Production and distribution of the resource strengthens our economy and creates jobs. By using it in markets that rely on traditional fuels like diesel, we also reduce our dependence on foreign energy sources.

Many of you are aware that America’s reliance on OPEC oil comes at a steep price. This past September, reports surfaced that nefarious groups – operating in countries the U.S. buys oil from, such as Qatar and Kuwait – have been funding ISIS and al Qaeda. These terrorist groups are benefitting from these countries’ oil and gas wealth.

According to the Energy Information Administration, last year alone we bought 122 million barrels of crude oil and petroleum products from those two countries, and a total of 1.36 billion barrels from their friends in OPEC at a cost of $132

billion. We are funding both sides of this endless war in the Middle East, and the folks in Washington say we’re unlikely to stop anytime soon. The U.S. Department of Energy’s best guess is that we’ll still need to import between 25 to 32 percent of our oil every year from now until 2040.

According to the Pentagon the war against ISIS will cost America an additional $2.5 billion to $3.6 billion annually in the years to come. Other estimates range as high as $22 billion a year, to say nothing of lives risked. Instead of sending $132 billion to OPEC, we should invest that money here in our domestic fuel markets.

The transportation sector accounts for 72 percent of U.S. petroleum usage. At Texas’ rates, if we matched the $3 billion a year we’re spending to fight ISIS with $3 billion of investment here at home, we could buy 102,000 Natural Gas Vehicles (NGVs) or build 1,500 natural gas stations. The amount we spent on OPEC oil in 2013 – $132 billion – is enough to buy 4.5 million NGVs or build 66,000 natural gas stations. That’s enough vehicles to withdraw 10 billion gallons of gasoline and diesel a year, or to add a natural gas fueling island to more than half of the 121,000 gas stations in the U.S. At a price spread of $1.50/gallon, that would save consumers $15 billion a year in fuel costs.

The U.S. Department of Energy forecasts that U.S. natural gas production will exceed demand by 2018. We need to continue expanding domestic uses of the resource, so we can maintain reasonable prices, keep creating high-paying jobs and further strengthen our national energy security. The expansion of natural gas use in Texas indicates that our great state sees the economic, environmental and geopolitical benefits of using it as a primary fuel source. I hope we will continue to set an example for the rest of the nation.

For more information: Contact Commissioner David Porter at mary.bell@rrc.state.tx.us.

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UNITED FILTERS INTERNATIONAL

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Proximity of trucks leads to extensive damage as fire quickly spreads. The quickest and most economical way that this sequence can be stopped is by the addition of the TRI-MAX FRAC Engine Fire Control System (EFCS) that can fight, suppress and extinguish fire within the first crucial moments.

TRI-MAX FRAC EFCS gives operators the power to stop the initial fire and prevent the fire from spreading with FOAM DELUGE NOZZLES and a 100FT EXTERNAL FIRE HOSE. The foam barrier deployed by the adjacent trucks stops the fire from spreading laterally. Trucks outside of the fire barrier may also pull their fire hose attack lines and attack the fire quickly suppressing any fire that remains.

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CONTACT KINGSWAY INDUSTRIES, INC. CALL 1-888-774-6299

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33

INDUS T RY

BUILDING A FUTURE IN OIL AND GAS FIND OUT HOW WOOD GROUP’S NEW TRAINING CENTER IN SOUTH TEXAS IS HELPING BUILD CAREERS FOR ITS EMPLOYEES AND ASPIRING OIL AND GAS PROFESSIONALS IN THE EAGLE FORD SHALE REGION SPECIAL TO SHALE MAGAZINE

cal lab, a computer-based training lab, a 20-person classroom for instructor-led training and a boardroom. The center also includes a production facility pad containing a mock tank battery, processing equipment and instrumentation, and buried pipe for line finding, all significant for their hands-on training programs.

Course curriculums provided at the Kenedy Training Center focus on advancement in key onshore field operations roles including::

PHOTOS COURTESY OF KENEDY TRAINING CENTER

• Lease operator • Measurement technician • Maintenance operator • Project lead/construction foreman/field supervisors • I&A technician • Roustabout/crew pusher

E

arlier this year, Wood Group opened the doors of a new Earlier this year, Wood Group opened the doors of a new 16,000-square foot custom-designed training facility, located in Kenedy, Texas, providing the oil and gas industry with competent educational curriculums for current oilfield personnel and the next generation of oil field workers. It complements the health, safety and environmental (HSE) training and competency facility Wood Group has for U.S. offshore services located in Lafayette, La. The Kenedy Training Center is equipped with a meeting/training room with a maximum capacity of 300 people, an instrumentation and electri-

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In addition to these structured field advancement curriculums, Wood Group provides HSE courses, which include first aid/CPR, hydrogen sulfide training and PEC SafelandUSA, to keep lease operators, measurement technicians, maintenance operators and project lead/construction and foreman/field supervisors abreast of the latest safety requirements and competencies for onshore field operations.

The center added Aristos training to its growing list of safety courses this fall.

For more information: Visit www.woodgroup.com for a full schedule of classes, to register for a course or to learn more about Wood Group PSN’s training center in Kenedy, Texas.

S A F E

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F I E L D .

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P L A Y .

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SHALE OIL & GAS BUSINESS MAGAZINE

35

INDUS T RY

SOUTH TEXAS ENERGY & ECONOMIC ROUNDTABLE ANNOUNCES RECIPIENTS OF THE

SECOND ANNUAL

EAGLE FORD

EXCELLENCE

AWARDS SPECIAL TO SHALE MAGAZINE

T

he South Texas Energy and Economic Roundtable (STEER) announced that S&B Infrastructure Private, LTD; Energy Waste; NuStar Energy L.P.; Green Energy Oilfield Services; Aggreko; United Independent School District; and Karnes City ISD Foundation as the recipients of the 2014 Eagle Ford Excellence Awards. The awards honor leading companies and organizations working in or with the oil and gas industry by recognizing diligent efforts in the areas of community and social investment, environmental stewardship, and safety performance within the Eagle Ford Shale region.

“STEER and its member companies recognize that the sustainable growth of the Eagle Ford requires the cooperation of communities, companies and organizations throughout the region,” says Omar Garcia, president of STEER. “With the continuation of the Eagle Ford Excellence Awards, we look to honor the efforts of companies and organizations are making a difference throughout South Texas.”

This year’s awards program includes the debut of the Impact Award. This category recognizes educational facilities and nonprofit organizations working with the oil and gas industry in the Eagle Ford Shale.

Former San Antonio Mayor Henry Cisneros served as master of ceremonies. Cisneros, who also served as Secretary of Housing and Urban Development and is the Founder and Chairman of CityView, praised the Eagle

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PHOTOS COURTESY OF JULIAN LEDEZMA

Ford Shale’s contribution toward positive growth. “With an economic impact of more than $87 billion in 2013, the production in the Eagle Ford Shale continues to exceed expectations,” Cisneros says. “Job numbers have continued to climb with approximately 155,000 people directly or indirectly employed as a result of the oil and gas industry.

That remarkable growth creates a need to develop the resources in a responsible manner. STEER’s awards program honors those accountable companies and organizations.”

The awards ceremony provides both oil and gas companies and their contractors an opportunity to be acknowledged for their efforts in preserving the environment, contributing to the communities in which they work, and promoting safety in and around the workplace. Winners of the Eagle Ford Excellence Awards exemplify innovation, take initiative and benefit the greater South Texas region.

“In just one year, the award ceremony has grown and we nearly doubled the amount of entries we received in its inaugural year,” says Garcia. “We are encouraged by the attention that this program has brought to the region and to these very deserving companies and organizations.”

Judges for the 2014 Eagle Ford Excellence Awards include representatives from CPS Energy, San Antonio Water System (SAWS) and the University of Texas at San Antonio (UTSA).

Winners of the Eagle Ford Excellence Awards exemplify innovation, take initiative and benefit the greater South Texas region

Presented by

Recipients of the 2014

Eagle Ford Excellence Awards are:

Community and Social Investment

Environmental Stewardship

For companies or organizations with less than 250 employees:

For companies or organizations with less than 250 employees:

Energy Waste

Green Energy Oilfield Services

For companies or organizations with more than 250 employees:

For companies or organizations with more than 250 employees:

NuStar Energy L.P. Safety Performance

Aggreko Impact Award

Karnes City ISD Foundation United S&B Infrastructure Private, LTD Independent School District For companies or organizations with less than 250 employees:

For companies or organizations with more than 250 employees:

NuStar Energy L.P.

For more information: Email info@steer.com to learn more about to the Eagle Ford Excellence Awards.

POLIC Y

KEYSTONE XL PIPELINE IN LIMBO BY: BILL KEFFER

T

PHOTO BY THINKSTOCK

38

he wait for a transnational pipeline project has been on hold for six years with no end in sight. Final approval for TransCanada’s Keystone XL pipeline project remains in the twilight zone of a White House torn between traditionally supportive constituencies with polar opposite agendas. Labor unions overwhelmingly support the project because of the jobs it will provide, but the environmental left opposes it because it represents continued dependence on fossil fuels. By default, the lack of approval for the project has put a tenuous “win” in the dissenting constituents’ column.

Despite the fact that environmentalists, climate-change extremists and fossil-fuel opponents have declared the Keystone XL pipeline as their symbolic Bastille, those with a differing opinion are hard-pressed to understand how in the world this pipeline has become the representation of evil incarnate. Only a few years ago, TransCanada applied for, and received, a permit for their base Keystone pipeline to cross the U.S./Canada border to do exactly the same thing that the Keystone XL pipeline would be doing.

The current Keystone pipeline is delivering 591,000 barrels of oil from Canada to the U.S. The Keystone XL pipeline would deliver up to an additional 830,000 barrels.

The Canadian oil delivered to the Gulf Coast refineries would displace similarly heavy oil currently coming from other countries. TransCanada has already invested over $2.5 billion in this project, which will ultimately cost $8 billion (a significant increase over its original $5.4 billion estimate). Its construction will support 42,000 direct and indirect jobs and contribute $3.4 billion to U.S. gross domestic product. The U.S. State Department has now conducted five comprehensive studies on the project, all of which have concluded that the pipeline will not significantly affect the environment.

TransCanada has agreed to comply with 59 additional conditions on the Keystone XL pipeline imposed on it by the U.S. government – conditions that no other U.S. pipeline has to satisfy. Domestic sections of the pipeline – for example, the section between Cushing, Oklahoma and the Texas Gulf Coast – have actually already been built. The continued delay has also led to a marked increase in transportation of Canadian crude by rail – a transportation option that both increases greenhouse gas emissions and spill hazards.

As a Texas oil and gas industry advocate, you might say “so what?” So what if TransCanada can’t transport Canadian oil to our Texas refineries? Maybe, with falling crude prices and in-

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creasing supplies in our backyard, we’re better off with Canadian oil staying in Canada.

There are some very crucial reasons why receiving Canadian oil is beneficial to the U.S. First, the lighter crude we produce in Texas is not what most of our Texas refineries are designed to handle; they handle the heavier crude that comes from countries that typically aren’t on our Christmas card list, like Venezuela, Nigeria and similar bosom buddies in the Middle East. Second, Canadian crude is going to be transported, refined and marketed somewhere – stopping the Keystone XL will not be the equivalent of shutting down the Canadian oil sands. Third, if fossil fuel opponents get the idea that their efforts have stopped the Keystone XL pipeline, their efforts will not end there. Every pipeline and other petroleum-related infrastructure project attempted from here on out will receive the same, if not greater, degree of opposition. That means there will be more civil unrest, more local bans on hydraulic fracturing, more litigation and many other strategies will be employed to disrupt the oil and gas industry.

No, it doesn’t make any sense to demonize the Keystone XL pipeline as some kind of environmental threat that is different in kind from pipelines that have come before it. In fact, its delay has unequivocally created at least a temporary condition that is actually worse than what opponents allege the pipeline would cause. The true end game for pipeline opponents is bringing about a disruption in the oil and gas market sufficient to make it too uneconomical to continue, forcing an accelerated transition to renewable fuels, like wind and solar.

It is my opinion that the only thing that strategy would accelerate is our economic collapse.

Violently and prematurely forcing an end to an industry that provides 70 percent of our The U.S. State energy needs before we have Department has anything even close to being now conducted five able to replace it is like jumping off a building before confirming comprehensive there’s a net waiting below. studies on the project, A passionate, but economiall of which have cally inconsiderate, minority concluded that the wishes to change the direction of this country. Those of us pipeline will not who know better but are not significantly affect taking action are conceding to the environment the demise of our successful oil and gas industry with informed consent.

About the author: Bill Keffer is a contributing columnist to SHALE Magazine. He teaches at Texas Tech University School of Law and continues to consult. He served in the Texas legislature from 2003-2007.

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SHALE OIL & GAS BUSINESS MAGAZINE

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POLIC Y

ELECTION OUTCOMES PROMISE LITTLE IMPACT ON THE SHALE BOOM BY: DAVID BLACKMON

The industry, through the Texas Oil & Gas Association (TXOGA), immediately filed a suit in state district court challenging the constitutionality of Denton’s ordinance, and is confident it will prevail

PHOTO BY THINKSTOCK

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he recently concluded national and state elections are likely to have little immediate impact on the ongoing shale oil and gas boom, but could have longterm implications if industry is unable to address some of the outcomes in an effective way.

county. However, there are small amounts of oil being produced via steam injection in San Benito County currently, with significant expansions of that activity being planned for that county.

The industry is planning to challenge these county ordinances in court, and believes there is a high probability of success. Given that all of these banned processes are broadly used by the industry throughout California, the success of these legal challenges is critical to the future ability to develop the state’s oil and gas resources. But, just as in Texas, this kind of ballot initiative activity is likely to become a long-term fight in California.

Local Ballot Initiatives

The U.S. Senate Turns Republican

The biggest news out of Nov. 4 was the success of activists funded by several national anti-development groups to convince the voters in the college town of Denton, Texas to approve a city ordinance that bans the use of hydraulic fracturing (fracing) in the city limits. Although it didn’t seem likely that the industry would prevail in stopping this effort, given the large proportion of college students in the city’s vote makeup, the almost 20 point margin in favor of passage surprised most observers. The industry, through the Texas Oil & Gas Association (TXOGA), immediately filed a suit in state district court challenging the constitutionality of Denton’s ordinance, and is confident it will prevail. But the damage to the industry’s public image is already done.

This outcome, coming as it does in the state of Texas, in the heart of the Barnett Shale region of the state, sends a clear signal that the industry has a lot of hard work to do regarding public outreach in the coming months and years. Their success in the biggest oil and gas producing state in the country will only embolden the anti-development groups, and indeed, they have already begun organizing activities in other Texas college towns like College Station (home to Texas A&M University) and Alpine (home to Sul Ross University). They are in this for the long term, and industry will have to be as well.

Activist groups also mounted ballot initiative efforts to ban not just hydraulic fracturing, but also acidizing and steam injection in three California counties: Santa Barbara, Mendocino and San Benito. The initiative failed in Santa Barbara County, but passed in both Mendocino and San Benito.

The initiative in Mendocino County was largely symbolic, since none of the banned stimulation activities have in the past or currently taken place in that

Following Mary Landrieu’s loss to Bill Cassidy for the seat in Louisiana in the December runoff election the Republican majority consists of 54 seats. Thus, they do not possess a veto-proof majority. However, it is possible that there are a few areas in energy policy where there will be enough votes to pass bills and send them to President Obama’s desk for consideration when the new congress convenes in January.

JAN/FEB 2015

Energy Legislation: Incoming Senate Majority Leader Mitch McConnell (R-KY), incoming Senate Energy Chairman Lisa Murkowski (R-AK) and other senators, including some returning Democrats, have already voiced support for some energy legislation, such as a bill that would force the approval of the long-proposed Keystone XL Pipeline, and repeal of the current ban against most crude oil exports. However, absent some unforeseen meeting of the minds between Republican congressional leadership and the President, it is very likely Obama will veto any such legislation that makes its way out of both houses of congress.

So any prospects for meaningful, significant energy-related legislation actually becoming law resulting from this change in majority would have to be rated low.

Comprehensive Tax Reform: The same applies to long-anticipated comprehensive tax reform efforts. While we will undoubtedly see the GOP majorities in both houses continue to progress this effort and roll out proposals from time to time over the next two years, it is extremely unlikely they and the Obama Administration will be able to agree to the compromises necessary to actually pass new law.

Regulatory Oversight: Here is an area in which the new GOP senate majority could have a real effect. Throughout the Obama Administration’s first six years, the U.S. Senate has essentially refused to exercise any oversight at all over the actions of the EPA and other federal regulatory agencies. While the House has made efforts to do this over the past four years since Republicans gained the majority there, there is a limitation to how many oversight hearings any given congressional committee can hold.

The other consequence of the Senate’s refusal to exercise oversight or to engage in serious budget negotiations has been that, to this point, the Republicans have had no ability to deny funding for the implementation of major new regulations. Now, with majorities in both houses of congress, the GOP will have more leverage in this area.

Assuming Republican leaders are willing to exercise this newfound leverage, we can expect there to be a slowing of new, major regulatory actions at EPA and other federal agencies over the final two years of the Obama presidency.

Texas: Another Republican Wave In Texas, Nov. 4 became just another replay of what the state has produced every four years since 1998: Republicans easily won every statewide elective office, and expanded their already strong majorities in both houses of the legislature.

This likely spells positive news for the oil and gas industry, which has largely thrived under the GOP leadership of the last 20 years. The existence of a very large state budget surplus and huge balance in the state’s Rainy Day Fund – both thanks mainly to the economic impacts of the state’s ongoing shale boom – mitigate any need for state government to attempt to increase taxes and fees on the industry in 2015 and beyond.

But that doesn’t mean that we should expect the 2015 session of the Texas Legislature to be an uneventful one lacking in serious issues the industry will need to address. A good number of Republicans in the House campaigned on their intention to repeal the state’s business margins tax, which currently generates about $5 billion per year in state revenues. Should a repeal happen, those revenues would need to be made up somehow.

We can also expect to see a raft of proposals to address ongoing issues related to water, roads, traffic, air quality, seismicity and any number of other topics during the upcoming session.

All in all, 2015 promises to be a positive year for the shale oil and gas industry, but a very busy one as well. Which, in the constantly-evolving world of oil and natural gas, is nothing out of the ordinary at all.

For more information: Contact David Blackmon at David.Blackmon@shalemag.com.

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POLIC Y

WOMEN LEGISLATORS TAKE LEAD IN ENVIRONMENT AND ENERGY BY: GLORIA LEAL

T

he Texas domestic oil and gas boom has created unprecedented economic growth throughout the state and women are intrinsically involved in this movement. Women are involved as experts in many aspects of the energy, natural resources and environmental industry and challenging the perception of male dominance.

At the forefront of making policy to ensure that Texas takes advantage of the opportunities presented by the state’s wealth of natural resources while addressing the challenges of such growth are three powerful women in the Texas Legislature. In the Texas Senate, Senator Judith Zaffirini of Laredo is a force to be reckoned with. In the House, State Representatives Myra Crownover of Denton and Patricia Harless of Spring have embraced power and gotten a seat at the table.

Senator Judith Zaffirini is Leading the Pack in the Senate Few lawmakers have served longer in the legislative club than Senator Judith Zaffirini who represents District 21 which extends from Laredo to Austin. District 21 consists of all or part of eighteen counties, including the highest-producing counties, the majority of rigs, and the majority of production in the Eagle Ford Shale play.

The first Hispanic woman elected to the Texas Senate, Senator Zaffirini is the second highest-ranking senator and the highestranking woman and Hispanic senator. In 2012 she was re-elected in an eighth landslide victory with 68 percent of the vote. The Laredo Democrat is known for her toughness and has shown rare initiative in dealing with issues affecting her district particularly as it relates to the impact of oil and gas on local infrastructure , including roads, water and workforce.

During the 83rd Legislative Session, Sen. Zaffirini organized the Eagle Ford Shale Legislative Caucus and in that role held meetings and conferences to discuss the issues forthcoming with development and the

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aftermath of the play. During the interim, after the Texas Department of Transportation announced intentions to convert some portions of county roads to gravel in energy producing areas, she organized a town hall in South Texas and organized support against the proposal. In December 2014, the Senate Eagle Ford Legislative Caucus joined the House Energy Caucus and held an Oil and Gas Policy Briefing with state regulators and local officials, industry leaders and technical experts at the state capitol to assess needs and evolving issues in the oil and gas industry in anticipation of the session in January 2015.

In recognition for her leadership and contributions to the oil and gas industry, Sen. Zaffirini was presented an award from the Joint Association Education Organization at the Future of the South Texas Region Annual Conference held in Corpus Christi in October 2014. The principal oil and gas trade associations of the state joined to form the Joint Association to act as a resource and provide information about oil and gas operations to the public, local leaders and elected officials.

Senator Zaffirini also serves on numerous state committees and other organizations. Of note, she serves on the Natural Resources Committee and Select Committee on Transportation Funding – committees with oversight over issues of energy related import.

She is Chair of the Government Organization Committee and CoChair of the Joint Committee on Oversight of Higher Education Governance, Excellence & Transparency. She is also a member of the Administration, Finance and Higher Education Committees and the Select Committee on Redistricting. As a member of the Health and Human Services Committee which is up for Sunset review this next session, Zaffirini will have to consider recommendations for consolidation of functions and funding for the agency.

Senator Zaffirini has received more than 760 awards and honors for her legislative, public service, and professional work, including more than 220 in communication. Her recent awards include being named to the “All Decades Teams” for the 2000s and the 1990s by Capitol Inside and a “Hero of Hope” by the Laredo Morning Times. 2011 marked the fourth time that Texas Monthly named Senator Zaffirini one of Texas’ “10 Best Legislators.” It also included her in 2005, 2001 and 1997; and gave her the “Bull of the Brazos” award in 2009 and an “Honorable Mention” in 2003.

Thoughtful and Demure, Rep. Crownover is Powerhouse in the Permian Basin State Representative Myra Crownover is currently serving her sixth full term in office representing House District 64 which is encompassed within Denton County. First elected in 2000, she won re-election in November 2014 to a seventh term with 63.36 percent of the vote. Rep. Crownover serves on some of the most powerful committees in the House of Representatives. She was

appointed Vice-Chair of the House Energy Resources Committee and to the Appropriations and the Calendars Committees by Speaker of the House Joe Straus.

On the House Energy Committee, Crownover seeks to balance the state’s need for energy independence while protecting the environment at the same time. Strong in beliefs, she is thoughtful in how she approaches an issue. She has authored legislation that requires oil and gas operators to clean up equipment on the surface of the land and landmark legislation that requires gas-drilling operators to disclose the chemicals used to produce gas in shale plays.

The Denton area has a historical relationship with the oil and gas industry. The first wells in Texas were drilled in Denton County in 1914 by Eastland Oil Company and one hundred years later drilling in the Permian Basin is undeterred and unsurpassed. However, recent seismic activity in North Texas has raised concerns about production in the area. The seismic events caused much debate and assumptions with regard to their relationship with oil and gas production and disposal and led State Rep. Jim Keffer (R-Eastland) who heads the Energy Resources Committee, to appoint Crownover to chair the Subcommittee on Seismic Activity to study whether there were links between the seismic activity and natural gas production.

Crownover’s Subcommittee conducted hearings and took testimony from industry and experts in geology, oil and gas production, members of the public, and also worked with the Railroad Commission to determine appropriate regulatory response. The Railroad Commission adopted well rule amendments that are designed to address disposal well operations in areas of historical or future seismic activity. According to Crownover, “The rules approved by Railroad Commission and the hiring of Dr. Craig Pearson, a seismologist, are significant steps to addressing the concerns of the people of Texas regarding earthquake activity in Texas.”

Chair Crownover was a staunch supporter of Proposition 6 to invest $2 billion of the Rainy Day Fund for critically needed water infrastructure projects. She has been recognized numerous times for her pro-conservative, pro-business stance on issues affecting both the Denton area as well as the State of Texas. She has been twice-selected as a “Champion for Free Enterprise” by the Texas Association of Business, their highest honor for an elected official. In 2009, she was presented with the 2009 Taxpayer Champion Award by Texans for Fiscal Responsibility and named “Guardian of the Rainy Day Fund” by the Republican Caucus.

Houston Area Rep. Harless Leads Charge for Balanced Protection of the Environment Patricia Harless of Spring was first elected to the Texas House of Representatives in 2006 and is currently serving her fourth term representing District 126, which encompasses Northwest Harris County.

In the Texas House, Representative Harless serves as the Chair of

the Environmental Regulation Committee and is also a member of the Committee on State Affairs.

The House Environmental Regulation Committee has jurisdiction over matters pertaining to land, air and water pollution including the environmental regulation of industrial development and waste disposal. The Committee also has jurisdiction over environmental matters regulated by the Texas Commission on Environmental Quality (TCEQ), the Department of State Health Services and the Texas Low-Level Radioactive Waste Disposal Compact.

The jurisdiction of the Committee has propelled Representative Harless into the spotlight on some of the most contentious disputes pertaining to overreach by the Environmental Protection Agency (EPA) and the state’s compliance with federal greenhouse gas and carbon emission standards. In this role, Harless has acquired a reputation for guiding the Committee with a firm but flexible hand, courteous and professional – and she can ask tough questions. A tall blond, she has been known to quip about being the blond in the room but don’t be misled by her humor – like Crownover, she is definitely a player.

Earlier this year, the EPA issued its Clean Power Plan, a proposed rule which would slash carbon dioxide emissions from the nation’s existing power plants 30 percent from 2005 levels and requires states to file compliance plans by 2016. Harless’ Committee convened at a hearing in September to determine the impact on the state’s power utilities, natural gas producers, coal mines and solar and wind farm developers and the state’s response. Although opinions varied widely in the testimony, it appeared the EPA’s plan assigned to Texas a regulatory burden far greater than any other state by imposing a low-carbon mandate on Texas almost twice as heavy as the next two states — Florida and Louisiana combined. Due to the complexity of the federal rule, Texas experts and officials from the TCEQ and the Public Utility Commission had difficulty determining the requirements of the rule, the best methods for meeting reduction targets and whether legal action was the best course of action for the state.

Texas ultimately joined nine other states in suing the EPA to enjoin the proposal.

Rep. Harless is a conservative, pro-business advocate for issues affecting both District 126 as well as the State of Texas. She has been honored as a “Champion for Free Enterprise” by the Texas Association of Business. She was a Governor appointee to the Texas Motor Vehicle Board, on which she served from 1998 to 2005.

When the Legislature convenes in January, the three legislators profiled above will play leading roles in the legislative process and in setting energy and environmental policy for the decade ahead. The Texas Legislature, which meets biannually, will convene Tuesday, Jan. 13. I encourage everyone to get involved by conducting bill searches and tracking committee hearings and specific legislative activities online at www.capitol.state.tx.us or reach out to me.

About the author: Gloria Leal is an attorney and government affairs consultant in Austin, Texas. Ms. Leal has a solo practice primarily relating to energy, environmental and healthcare matters. She also represents the Texas Alliance of Energy Producers, a national association of independent producers and service providers. She can be reached at GLealLaw@sbcglobal.net.

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AZINE

OIL & GAS BUSINESS MAG UE I VOLUME II / ISS JAN/FEB 2015

PEMEX MEXICofO’S a New Era

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VOLUME II / ISSU E I JAN/FEB 2015

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anker D’Ann

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BUSINESS

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T IN G W O MEN

Harper, REA

LTORS

FPO IN B U S IN ESS

Thursday | February 5th, 2015 S H A L E M A G . COM

OIL & GAS BUSINESS MAGAZINE

OIL & GAS BUSINESS MAGAZINE

VOLUME II / ISSUE I JAN/FEB 2015

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CONTENTS

JANUARY/FEBRUARY 2015

FEATURE 6

Women in Business

COVER STORY

12 THE ONE-STOP REAL ESTATE SHOP

COLDWELL BANKER D’ANN HARPER, REALTORS

BUSINESS

18 Women in the Oil Field 20 The Permian Basin Booms Bigger Than Ever 22 UTSA Institute for Ecomonic

Development Celebrates 35 years

Benefits for Key Employees

24 Four Cost Effective Ways to Enhance 26 iDiscovery Safari: Growing Our Own Workforce 28 Quid Pro Quo With Courtney Boedeker

LIFESTYLE

30 Health and Wellness Is In Your Hands 32 Boot Ranch: So Much For a Girl To Do 36 Joshua Creek Ranch Means Business 48 Perry Richardson: Wildcatter With a Giving Nature

NONPROFIT

42 Training Women For the OIl and Gas Industry

SCENE

46 Lake Truck Lines’ Anniversary Party 50 Doug Kaspar Cover Party 52 The Future of the Region

South Texas Board of Directors Conference

Laredo Community College Impact Economic Development Forum

D’ANN HARPER

COLDWELL BANKER D’ANN HARPER, REALTORS COVER AND TABLE OF CONTENTS PHOTOGRAPHY BY: LUPE ROBLES

JAN/FEB 2015

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FEATURE

W O M E N

IN BUSINESS of customers whom we proudly supply with high quality fuels, lubricants, fuel and crude transportation services. My greatest achievement has been to hire top talent over the past 29 years and to make the necessary capital investments required to take Sun Coast to its current leadership position. I am happy to report that Sun Coast was recently ranked as one of the “Best and Brightest Companies to Work For” based on surveys conducted with our employees by a nominating firm.

What did it take to get to your career status today?

Kathy Lehne Sun Coast Resources, Inc. Chief Executive Officer/President Tell us about your typical work day.

I’m not sure there is any “typical” work day in my world. Since Sun Coast operates around the clock, every day of the year, I am kept abreast of what’s happening in each of our divisions day and night.

There are so many exciting aspects of managing a multi-billion dollar company in the oil sector. Since Sun Coast supplies a diverse array of petroleum products, transportation services and related programs to keep American enterprises up and running, there’s something new and different coming along all of the time. I thoroughly love the challenge and the fast pace.

What are some of your career achievements you are most proud of?

I am grateful because Sun Coast has grown to become the largest woman-owned business in Texas with a great reputation among the thousands

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It took a burning desire to develop my company into the best it could possibly be. I also sought advice and counsel from professionals in the industry who knew what to pay particular attention to as Sun Coast began to grow. It was also important to forge alliances with bankers, suppliers and key customers — important ingredients in any venture.

What aspects of your position do you find enjoyable or fulfilling?

I enjoy the action. Sun Coast serves thousands of customers on a daily basis with the products and services they need to keep their operations running smoothly. There is always a new challenge around the corner and you are forced to make many decisions on the fly. The energy business is constantly evolving. Those who anticipate and embrace change, and have contingency plans in place to deal with it effectively, will enjoy the experience.

What advice would you give to another woman interested in getting into predominantly male industries?

I never thought of it as a male or female thing. I have always viewed it as an awesome opportunity to do something I love. Success came after many years of determination and hard work. I would encourage everyone to follow their dreams. No one should settle for something they aren’t passionate about. Life’s work doesn’t have to be mundane or ordinary. Most people do have an entrepreneurial spirit. Let it come out. The possibilities for success are unlimited.

proud to say that my father was the first Hispanic to pass the RPLS exam (others had been grandfathered in), and I am still on target to be the first Hispanic woman to do so.

Noela Oliveira Garza Bullseye Land Surveying Company President/Owner Tell us about your typical work day: The land surveying business is an ever-evolving enterprise, with new jobs coming in all the time. Our slogan is: on target and on time. If a client needs us — no matter what our current schedule is — we make every effort to meet their needs.

So I may arrive at the office dressed in heels, but I keep a change of clothing and a pair of work boots handy and ready to go if I’m needed in the field, as do our other office personnel.

Like other company heads, I do the typical administrative and executive duties, but the most important part of my duties has to do with employee and client relationships.

Maintaining and expanding those relationships are an integral part of my daily routine.

What are some of your career achievements you are most proud of?

When I was 44 I found out that my husband had a serious and potentially terminal illness. He was the main bread winner; even though I had a job, I was heavily dependent on his salary. I knew that I had to make some things happen if I was going to be able to be the sole-supporter of our children, one almost in college and one just 12 years old at the time. My father was a professional land surveyor, and I had always enjoyed going in the field with him as a young woman, and also watching him do his drafting (at that time done all by hand).

The day after I found out about my husband’s illness, I also discovered that they were starting a Geographic Information Science degree at our local university, Texas A&M UniversityCorpus Christi. I registered to attend TAMUCC in the GIS program. Four years later, I was one of only four people to graduate in the new program.

I’m also proud of my company’s community involvement. I like to encourage my employees to work hard to give back to the community, and I try to set the example by doing so myself.

I belong to various professional organizations besides the GIS Academic Advisory Board, including the Women’s Energy Network, the Eagle Ford Consortium, and the Texas Society of Professional Land Surveyors. I’m also on the Board of the Fannie Bluntzer Nason Spirit Center, which is on target to create a huge complex that will be used for everything from youth educational retreats to corporate retreats. We do not participate to gain clients, although it may well do that; we do this to be in the loop of what’s going on in the world around us.

What did it take to get to your career status today?

I can easily say that it took a lot of guts and tireless effort to get to where I am today. While I received my Bachelors in Geographic Information Science at 48 years of age, and my Masters in Geospatial Surveying Engineering at 58 years of age, I’ve still got “miles to go before I sleep.”

When I first bought Bullseye Land Surveying Company, I knew that I didn’t want to head the company without knowing what I was doing. Having such professional employees, there is absolutely no need for me to be a micro-manager. However, I feel that it’s important for me to have a clear knowledge of all phases of the company from administration to operations. I believe that it’s vital for me to really know the business so that I can support my employees in the best way possible, and so I can understand my clients’ needs as well. I have passed my fundamentals exam and am therefore considered to be a Survey Intern, but I plan to also sit for my Registered Professional Land Surveying (RPLS) exam. I have an RPLS on staff, so I’m not doing this because I have to. Besides supporting my staff, I have a personal goal in mind: I’m

What aspects of your position do you find enjoyable or fulfilling?

It gives me pleasure to hear my employees laughing together in their offices obviously enjoying their jobs.

Some bosses might find that annoying, but I have heard so many compliments from our clients that it gives me great pride that we have an office that is relaxed, and yet we get the job done on time and cost effectively. We have a culture of professionalism both with our clients and amongst each other.

I know it sounds cliché, but I have the attitude that I won’t ask any of my employees to do anything that I would not do myself. If the toilets need cleaning, then I clean them. If I need to go out in the field, I go. I make sure my employees feel well taken care of, and I, in turn, feel taken care of by them. I think we all find strength in that kind of teamwork.

What advice would you give to another woman interested in getting into predominantly male industries?

If you think you’ll like it, then just go for it! Don’t let the thought that it’s a predominantly male industry keep you back. Get that sledge hammer and break that “glass ceiling” and rise above! In all honesty, we hold ourselves back. I truly don’t think that most males care anymore about gender. Even if it crosses their minds at the beginning, once the project gets started, all we all want is to get the job done right and efficiently.

I love being feminine, and I’d fail miserably at being manly, but I still hope that women in any job do not expect for men to cater to their femininity when it comes to the workplace. I might accept a gentlemanly gesture graciously, but then I assure them that I can, for instance, carry my own equipment, etc. Whether you be male or female, remember that if you can’t do it, move over for someone who can.

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FEATURE

Paula Waggoner-Aguilar The Energy CFO, LLC Owner & President Tell us about your typical work day.

I am a chief financial officer to energy entrepreneurs. I help harddriving owners and executives start up, fix and grow energy and technology companies. Some days I leave the house in a suit and other days in jeans and boots. My basic equipment includes my backpack, mobile, laptop, GPS, and hands-free devices. My schedule varies – I may be meeting private equity bankers, lawyers or CPAs in San Antonio or Houston. Other times, I am headed to client offices in Corpus Christi, north of Austin or the Eagle Ford. My clients are typically middle market businesses, family-owned enterprises or private equity start-ups.

These companies really do not need a full-time CFO, so I may spend anywhere from two days a week to a couple of times a month working for them. I work with people across their organization. When I head out to field offices, field operations and inventory staff plan ahead so we can minimize their downtime and complete what we are working on.

Towards the end of the day, I often return calls and catch-up with owners by phone. We all run 24/7 operations in our industry, so you have to be flexible.

What are some of your career achievements you are most proud of?

Working my way up the ranks. Having domestic and international upstream, midstream, downstream and oilfield service experience under my belt. Likewise, having held several senior leadership roles in finance, accounting, commercial risk management, production and financial planning, and investor relations for private and publicly traded U.S.,

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European and Australian global 500 corporations and joint ventures operating in the U.S. and Latin America.

I am also proud of myself for my leap to entrepreneurship. I founded The Energy CFO, LLC about a year after moving to San Antonio. I did not know anyone and I started my company from scratch with no sales pipeline. I spent the first six months banging on doors, meeting people and developing relationships. Fast forward 18 months – I was awarded 2014 BEST CFO for private medium companies by the San Antonio Business Journal. That felt real good!

Lastly, I am proud of having helped co-found the Women’s Energy Network of South Texas.

I have served as the President since the start in April 2013 (both WEN and The Energy CFO were established the same month). We are empowering women in energy through networking, career and leadership development.

In 18 months our membership has surged from zero to 300 members across South Texas. The organization is now the 4th largest of seven chapters nationwide and our lean start-up model is being adopted by the WEN organization for new chapters.

What did it take to get to your career status today?

I took some risks, I got lucky, and I worked hard. It just so happens that I started my career in the 1990s working my way up the accounting ranks in Latin America beginning in oil field services and highly engineered equipment. I spoke Spanish and later learned some Portuguese.

Little did I know that the leap to Latin America would quickly position me as one of the few U.S. trained CPAs on the ground. For the risks I took, I was rewarded with opportunities to do things and given broad responsibilities sometimes people 20 years my senior had not been given. Over time, those opportunities helped put me ahead of the competition, open doors across the industry, and put me on the front line at a very early age with top company leaders. I kept working my way up the value chain, jumped into finance then developmental roles in commercial, planning and then investor relations.

Around 2010, I took a pause and spent some time really thinking about what I wanted to do. I rediscovered my entrepreneurial roots as a CFO for private companies and then in 2013 took the great plunge into entrepreneurship.

What aspects of your position do you find enjoyable or fulfilling?

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What advice would you give to another woman interested in getting into predominantly male industries?

Take it from a woman who once got 100 rejections trying to find a job in Latin America (most had to do with people’s perceptions of what an “appropriate job” was for a young woman). These were no energy companies that rejected me! To the contrary – only an energy services company (Halliburton, formerly Dresser Industries) was willing to take the risk and hire me to work places most men would not work in. In fact, the irony in all this is a male dominated industry has been the one that has allowed me to pursue my career aspirations.

I think the best career choice is energy for women in STEM. In the energy industry you can be whatever you want to be. Moreover, you can decide where you want to steer your career. Now, you can’t have everything, but you can decide what you want and what you don’t. Ladies, having a choice is empowering!

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The One-Stop

real estate shop Coldwell Banker D’Ann Harper, REALTORS BY: LAUREN GUERRA

M

any Texans in and around the San Antonio area have probably heard of D’Ann Harper. She’s the real estate brokerage owner we all know of with a name as unique as her business. It’s been a long road for Coldwell Banker D’Ann Harper, REALTORS that has been paved with hard work and diligence which ultimately has made her a household name.

Coldwell Banker D’Ann Harper, REALTORS owns eight offices in the San Antonio metropolitan area, including surrounding areas such as Bandera, Boerne, Fredericksburg, Kerrville and New Braunfels. With no plans of slowing down, growth has been and will continue to soar for this real estate brokerage firm.

Harper, the fearless leader of this flourishing business, spoke with SHALE Magazine about how her company was started, the key to success and the future for this local business.

The Beginning Originally from the small town of Whitsett, Texas, Harper grew up on a ranch with her parents and older sister. Near Three Rivers, Texas, Whitsett is not well known, probably due to its small size. After graduating from Three Rivers High School, Harper attended business school in San Antonio and soon married the love of her life, Herbert E. Harper, Jr. The Harpers took up residence in San Antonio, and it was there that she

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partnered with her father-in-law to help run the family’s real estate business. During this time, Harper would clean up and prepare the rentals and collect the rent on the properties her father-in-law acquired. After years getting this experience, Harper decided to get a real estate license and in 1978 she started her real estate career at Bob Jones Realty. It wasn’t long before Harper mastered her sales technique and set her sights on owning her own company. Harper chose to further her education to become a real estate broker.

Taking Ownership Once Harper had her broker license, she had the ability to open her own company, which is exactly what she did. And so, D’Ann Harper, REALTORS was opened in 1986. Starting small and growing steadily, this new business did quite well for its immature age.

With success comes new challenges for any small business owner, including Harper. For Harper in particular, learning to manage people toward a common goal all the while keeping the business going strong was a new feat. But these challenges pale in comparison to what happened next for Harper.

Coldwell Banker was operating in the San Antonio area with company-owned offices for years. Then, in 1989, Harper was approached by the national company and offered an opportunity to purchase the two Coldwell Banker offices in the area.

Until this point, Harper was running a successful small business with a bright future ahead. This new offer was a life-changing opportunity,

Cover Story PHOTOS BY LUPE ROBLES

one that would certainly bring new success and new challenges. After considering the offer, with the support of her husband and family, she took it.

“Coldwell Banker had two company owned offices in San Antonio,” Harper explains. “My conversation with them over time evolved into my purchase of those two offices. So I took my one office with 18 agents, which was an independent company, and merged the two Coldwell Banker offices. I now had three offices and over 100 agents overnight.”

estate tools in the market so they may become very successful business entrepreneurs in their own right,” Harper says.

This is key: taking care of her people. Harper is diligent about helping her staff be successful at their jobs. This is the purpose of having various departments and a large support staff. The various departments such as IT, Marketing and Relocation assist the sales associates to free up their time so they can meet with more buyers and sellers. Harper says sales associates don’t make money by sitting behind a desk.

Though there is some debate to whether or not there is a glass ceiling for women in maledominated industries, there certainly is not one to be seen when it comes to Coldwell Banker D’Ann Harper, REALTORS

PHOTOS COURTESY D’ANN HARPER

The Woman Behind the Business

A theme for this issue is celebrating women in business. Though there is some debate to whether or not there is a glass ceiling for women in male-dominated industries, there certainly is not one to be seen when it comes to Coldwell Banker D’Ann Harper, REALTORS. Harper has two daughters, Leesa and Keye, with her late husband, and five grandchildren. She speaks fondly of her children and grandchildren and their achievements, as any mother and grandmother would.

As the owner and leader of this vast real estate company, Harper has the weight of managing over 350 sales associates and 80 employees and the reputation of her business.

In fact, Coldwell Banker D’Ann Harper, REALTORS has been acknowledged each year by Coldwell Banker for attaining the Chairman’s Circle designation since 1990. This prestigious award is only given to Coldwell Banker companies that maintain a certain production level, and every year or two the bar is raised. This award is only presented to the top two percent of Coldwell Banker companies in the nation, making it a truly remarkable feat to have received this designation for 24 straight years.

“It is my job as a Broker/Owner to create the right environment for my sales associates to work in and to provide them with the best real

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They need to be out meeting buyers and sellers. She says it is the job of the support staff to make life easier for the sales associates.

Taking care of her people is very important to Harper. A good office culture with opportunities for employees to get to know one another is a goal for Harper. The company regularly holds events for employees and sales associates in order to promote a fun and cohesive work environment. For instance, recently some of the employees and sales associates were gathered in two busloads and were taken down to the casino in Eagle Pass for a fun day away. Harper reflects on how these events help bring everyone together: “We do various things all year long like that, because we are a family. But when you have a family as large as ours, it’s hard to get to know one another.”

People Make a Difference With over 350 sales associates and an equally robust support staff, Coldwell Banker D’Ann Harper, REALTORS is hardly recognizable from those early days. It didn’t always come easy though, Harper explains. She credits her staff and managers for continuing the success of the business and providing a conducive environment for her sales associates to fuel this real estate machine.

“I have excellent managers, many of which

have been with me for a number of years,” Harper explains. “My philosophy for our leadership team is to always hire people who know more than you do. I surround myself with people who are very knowledgeable about our industry. It is because of these people we have been so successful over the years.”

A real estate office is only as good as its sales associates, which is why Harper takes an active role in the training and development of her staff. She encourages her sales associates to further their education and stay up to date on changes in the market and industry.

Included in the support staff would be those key sales managers Harper credits as key components to the business’ success.

The sales managers are available to the sales associates to mentor them through situations and provide a helping hand when needed.

The sales managers do not, however, list or sell homes. This would essentially make the managers compete with their associates.

Therefore, none of the managers in Harper’s company actively work in the field. This is a key difference between Coldwell Banker D’Ann Harper, REALTORS and other brokerage firms in the San Antonio area.

Sales associates and sales managers are working to bring in revenue for the business, but someone has to be at the back end working to make their jobs possible. This is where the support staff comes in. The support staff is crucial to the success of the business as a whole for Harper.

With so much emphasis on the importance of great sales associates, Harper attempts to be as involved as possible and to get to know each one of them. With such a large company, it can be hard to really know each person individually, but Harper tries her best to always make it a point to get to know each new hire as they go through the company’s training program. She takes the group of new hires out to lunch and uses this opportunity to make sure they know how important they are to the success of the business.

Innovation to Grow You may recognize her from her many offices in and around the metropolitan San Antonio area. You may have seen the Coldwell Banker D’Ann Harper, REALTORS San Antonio and Hill Country Showcase of Homes that airs every Sunday on KSAT or their monthly magazine.

Perhaps you have worked with one of the 350 sales associates associated with Coldwell Banker D’Ann Harper, REALTORS. However you know the name, the point is that this firm goes to great lengths to market themselves to grow their customer base.

As one of the largest real estate firms in the area with teams dedicated to marketing and technology, Coldwell Banker D’Ann Harper, REALTORS dominates the industry in brand awareness.

“We have an extensive marketing and technology division, certainly the largest of any real

estate brokerage in the area,” Harper explains. “We have five people in our technology department and 10 people in our marketing department.”

New developments are always underway at the Coldwell Banker D’Ann Harper, REALTORS firm. The goal of the newest technological development is to make the process easier and more efficient for the sales associates.

“The industry has changed dramatically over the years. When I started in real estate we had a four page contract; now it is more like 20 pages. We also didn’t have computers,” Harper says. “Have computers made everything easier? Not necessarily. But in some ways they have helped our business.”

How are computers helping Harper’s business? The newest addition to the business is a paperless transaction that will cut down the use of paper and storage facilities. All of the CB Harper family including staff and sales associates are moving away from paper and going electronic.

Everything will now be stored online on a secure DotLoop storage site.

This process being implemented is also a helpful development for the sales associates because they can access and complete files from anywhere in the world with an internet connection.

When it comes to marketing, “you have to be diversified,” Harper says. “When the market is real hot, like right now, you don’t really need to do a lot of marketing. But the industry is cyclical, it goes up and it goes down. This is why our marketing team is always working on getting our name out there, so when the market switches, we don’t have to play catch up. We don’t experience the lulls that some of the other firms may feel due to a lack of marketing.”

Diversity in Business With several components, Coldwell Banker D’Ann Harper, REALTORS is a full service firm. From corporate relocation services to property management, Harper has positioned her company to be a truly one-stop shop for clients.

Corporate relocation services is a large component of Harper’s business. Say, for instance, an executive for a large corporation is being

As one of the largest real estate firms in the area with teams dedicated to marketing and technology, Coldwell Banker D’Ann Harper, REALTORS dominates the industry in brand awareness

PHOTOS BY LUPE ROBLES

With several components, Coldwell Banker D’Ann Harper, REALTORS is a full service firm.

From corporate relocation services to property management, Harper has positioned her company to be a one-stop shop for clients

moved in or out of the area. The corporation can enlist Coldwell Banker D’Ann Harper, REALTORS to make all the arrangements for a new home for this executive, or sell his existing property, allowing large corporations to move their employees as needed with no added stress.

“We also work with Cartus Broker Network on relocation services.

Their largest client is USAA and we assist those members as they buy and sell in the South Texas area,” says Harper. “With USAA alone, we handle roughly 1,300 sales per year.”

In addition, the firm manages about 1,200 single family homes for absentee owners. In cases where owners purchase an investment property but are unable or willing to manage the property, Coldwell Banker D’Ann Harper, REALTORS is able to provide services for the owner to keep the property well maintained and managed in terms of occupancy and rent collection. This service allows property owners to keep their investment as stress-free as possible while knowing their property is being monitored and their investment kept safe.

Mortgage lending services are also available through Coldwell Banker D’Ann Harper, REALTORS. Homebuyers find the process seamless as they transition from one stage of the sale to another without need to find external lending and approval. With an all-in-one-stop shop, Coldwell Banker D’Ann Harper makes the process of homebuying a less confusing time.

Harper also owns Coldwell Banker Commercial, Alamo City, a standalone business which is separate from the residential offices. This business was opened in 1990 and is active in the sales and leasing of land, office, industrial, retail and multifamily properties.

Growing the Business Over the years, Coldwell Banker D’Ann Harper, REALTORS has acquired many businesses as it continues to grow. Some of these acquisitions go smoothly, others don’t. This has been a major lesson for Harper, one she now lives by.

“A real estate company is no different than any other business, as you grow you need to replenish your sales staff. People retire or leave for various reasons, so you can acquire a company and if they adopt your business philosophy it can be a much easier way to grow your sales staff.”

Harper has purchased many companies over the years, including the Guy Chipman Co., a RE/MAX office, a Century 21 office, and several independent companies, but one acquisition will always stick out in her mind.

“I bought a company that I really wanted. I thought it was going to be great once we brought them into the fold. I was willing to do just about anything to make the deal work. But then it fell apart. It just wasn’t a good fit.”

It must be the right culture fit, according to Harper. If the companies have different values or philosophies, the transition is not as smooth as you’d like it to be. So, with all things, you live and you learn. Now, Harper says, she is much more aware of the importance of a good culture fit before she will take on a new company. In fact, there have been times when owners have approached Harper to propose an acquisition or partnership, which Harper ultimately had to decline due to the cultural inconsistency that can make a great deal go awry.

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The Local Market Harper is abreast to changes in the local market, as they affect her business so greatly. One aspect of the market for real estate that is really affecting the local market is the growth of the Eagle Ford Shale development.

“I support the Eagle Ford and continue to support all the work that is taking place in South Texas,” Harper says. “We have gotten a lot of business from the oil companies as well as the ancillary companies too.”

While she admits the Eagle Ford brings with it new challenges, such as the road issues, the economic development to our area is crucial to our local economy.

The shale boom has brought new customers to the brokerage firm, as it has for many businesses in the area, according to Harper.

Harper also has a group of sales associates who specialize in farm and ranch properties. This small group of sales associates have had extensive experience in agricultural management, actually own rural property, or have lived on a farm or ranch at one time in their life. The listings for this type of division range from small properties of 50 acres to very large properties such as 8,000 acres. All these properties that are being bought and sold as a result of the shale boom have led to further business for this brokerage. The owners of these properties, for instance, may now find themselves needing to relocate or just want to purchase a property outside the Eagle Ford.

In addition, the employees of the oil and gas companies are coming in and staying for years and are able to purchase homes. Harper’s company is able to assist these employees in buying or leasing.

“The benefits far outweigh any problems caused by the shale boom,” Harper remarks. “See, I am still a landowner in the Eagle Ford and I know the benefits to the landowner. So I am a proponent of the growth in that area. There may be some issues that haven’t been worked out yet, such as traffic and road problems, but the benefits to the schools and small towns in the area as a result of the tax money and donations by these companies is tremendous for San Antonio and the surrounding areas.”

The shale boom has most definitely brought with it the spirit of giving to the small towns that have been revitalized by the giving of the oil and gas players. Something such as a new scoreboard for the local high school goes to show the amount of dedication these companies show to the residents of the Eagle Ford.

Giving Back to the Community Giving back to the community is a key component in many businesses. For Harper, though, giving back to the community is more than just goodwill for her business.

Helping children is a personal goal for Harper. She takes great enjoyment in helping kids in South Texas through charitable donations and events.

“I am most proud of the charity work we are involved in,” Harper says. “We just recently helped sponsor a golf tournament for Any Baby Can in October 2014. Through

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the efforts of other sponsors and participants, we were able to raise over $51,000 for that organization after all expenses were paid. The Any Baby Can organization is a wonderful resource for families in South Texas as they provide education, therapy and family support services, so we are happy to be involved in helping them with providing those services.”

Harper’s company is also involved in the Roy Maas’ Youth Alternatives, which takes in children who need help for various reasons. The organization also has a charter school in Boerne, Texas named MeadowLand, which has cabins for the kids to live in while they get an education. Some children stay for a short period of time, while others stay for many years. Many have gone on to lead productive lives, including some that have attended college and have a bright future ahead of them.

Coldwell Banker D’Ann Harper, REALTORS also holds an annual bear hunt in which the company collects stuffed animals, both new and “pre-loved,” starting around Halloween. The animals are collected until Christmas and then delivered to various locations such as the local women’s shelter, Roy Maas’ Youth Alternative, Any Baby Can and a number of other locations for children so they can receive a stuffed animal for Christmas.

“I support the Eagle Ford and continue to support all the work that is taking place in South Texas,” Harper says. “We have gotten a lot of business from the oil companies as well as the ancillary companies, too.”

The bear hunt was actually started in 2002 when Harper purchased the Guy Chipman Co., as this was an existing charitable event they participated in. Harper liked the idea and implemented the collection throughout her offices. Since its beginning with the D’Ann Harper offices, the bear hunt has grown tremendously. The goal in 2014 is 10,000 stuffed animals. “We’ll make our goal, I’m sure of it,” Harper says.

One thing Harper is happy to report: The charitable spirit resonates with all of her employees and sales associates. The company recently held a chili cook off in the parking lot of their Stone Oak office in which each office had a team that competed for the award of best chili. There were various categories and awards, but the goal was ultimately to raise money for the bear hunt. In this internal charity event, the Harper offices were able to raise another $4,000 in two short hours to purchase more bears for the children.

The Future As the Eagle Ford continues to prosper, Harper envisions great things for businesses in the area, including her own. She will continue her support of the shale boom and foresees that the industry stays around here for many more years to come, to the benefit of San Antonio and the surrounding areas.

The company doesn’t currently have plans to open any new offices, but a brand new office is currently being constructed as a replacement to the current one in Boerne. It is estimated that the building will be completed in April 2015. There are no acquisitions or partnerships in the works, but Harper says she is always looking forward to new challenges and opportunities for growth for her company.

Finally, with the assistance of her excellent employees and managers, Harper has time to do the things she truly enjoys. Charity work, for example, has become a focus for Harper as she continues her support of the community. Finding new ways to get involved in charity work, especially those that benefit the children in South Texas, will always be a personal goal for Harper. She also enjoys making time to enjoy her family, taking care of her cattle, traveling, fishing and hunting – and does so as often as possible.

For more information: Visit Coldwell Banker D’Ann Harper, REALTORS online at www.cbharper.com to get more information on services in your area.

The future is BHP Billiton.

The future is yours.

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Our global business comprises a diverse body of about 100,000 employees and contractors, who are the foundation of our success. We have an overriding commitment to the health and safety of our people and to respecting the environment and the communities in which we work.

www.bhpbilliton.com JAN/FEB 2015

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BUSINE S S

WOMEN IN THE OIL FIELD BY: DOUG CAIN

“Have convictions. Be friendly.

Stick to your beliefs as they stick to theirs. Work as hard as they do.”

– Eleanor Roosevelt

“W

omen in the oil field” might sound like a girl’s country band or how most school organizations run in Texas. Many think there is no shortage of qualified people who are ready to make that next step. But I am here to tell you that nothing could be further from the truth. Like First Lady Roosevelt said, “Work as hard as they do.”

I believe if she were alive today she would be saying that about today’s female workforce in the energy industry.

Having women in the oilfield could be that “X-factor” (along with fracing) that changes the oil field as we know it today. Coming from the generation that saw the last oil boom, I can assure you that the workplace was significantly different than it is now. What is impressive is not just seeing how there are more and more women in blue-collar jobs now than 40 years ago, but professional women have also broken through the glass ceiling and become CEOs in the industry (such as Lynn L. Elsenhans, Chairman, CEO and President of Sunoco; Katherine Richard, CEO of Warwick Energy Group; and Ashton Verringia, CEO of Athena Oilfield Services, Inc., for example). In addition, in all spectrums of the energy industry, more and more women are being hired as mid-level managers. And even more impressive is how the industry is preparing for the future by putting time and money into training women to be a more significant part of leadership of our industry.

Pink Petro and its CEO, Katie Mehnert, recently partnered with industry leader Halliburton to create a resource for women in the energy industry. This new networking opportunity will allow mid-level employees a chance to connect and brainstorm on new ideas that the originally male-led industry would never have considered.

You can never go wrong starting in your own home. I asked some of the fe-

18

male managers at my own company a few questions that would help me as the CEO in determining where we go next in making sure that we are ahead of the curve when it comes to gender equality of opportunity. My guess is that we started that when we added Cindy Booker, Head of Human Resources, to the executive committee this year.

Of the many questions I asked, one was, “What does it takes for a woman to stand out in a male-dominated field?” Lisa said, “She has to be self-assured, confident in her abilities.” Shirley felt, “She has to be direct without appearing hostile.” Donna felt that, “A woman has to be able to do the same job as a man, only better and be willing to give the credit to the team.”

That reminds me of the quote by Bob Thaves on Fred Astaire: “Sure he was great, but don’t forget Ginger Rogers did everything he did backwards… and in high heels!”

I think about Donna’s statement and Ginger’s as well.

Are your best employees giving credit to the team? Are they working so hard that they might as well be dancing backwards in heels? Is Lake going beyond just putting a female on the executive committee or is Lake going to lead our industry in educating and promoting the large and very capable female contingent in its mid-level?

As I type these words I am thinking about Pink Petro and Halliburton’s efforts in Houston. What can Lake do in San Antonio and what can we all do to produce and promote that strong core section that all companies have in our female workforce? Most of my readers know I don’t anything small, so I start by suggesting that we first get over any preconceived notions of who can do what. Once we start with a clean slate we can accomplish anything we want.

Until next time....

For more information: Visit www.laketrucklines.com or contact Douglas Cain at ckelly@laketrucklines.com.

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JAN/FEB 2015

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BUSINE S S

THE PERMIAN BASIN BOOMS BIGGER THAN EVER BY: ROB PATTERSON

S

ome 10 years ago, oil and gas drilling in the Permian Basin was all but moribund, thought to have peaked in the 1970s at two million barrels per day (bbl/d) and falling ever since. My, how things have changed.

Thanks to such advances as horizontal drilling and hydraulic fracturing, today the energy business in the basin is booming once again in what is now the nation’s most prolific oil producing area, according to the federal Energy Information Agency. As SHALE expands our reach and coverage into the famed West Texas shale play, we take a look at its rich history, the Permian’s prosperous present and its very promising future.

Big Basin Thought Barren Drives Huge Yields Then & Now The Permian Basin is some 250 miles wide and 300 miles long, running across much of West Texas and into the Panhandle and New Mexico. It gets its name from the Permian Sea that once covered the region, and includes six formations where deposits trapped oil and natural gas as the sea receded: The Spraberry, Wolfcamp, Bone Spring, Glorietta, Veso and Delaware.

Much of the area was occupied by Native American Comanche tribes until it was pacified by the U.S. Army in the 1870s. Its grasslands first drew farmers and ranchers to settle in the Basin. Due to the paucity of surface water they drilled wells that also gave the initial indications of oil and gas deposits below the surface. But many experts during the early days of the Texas oil boom didn’t consider the Permian as an area of much potential, dubbing it a “petroleum graveyard.”

The first well drilled in the basin in Mitchell County in 1920 did not augur well, yielding a paltry 10 bbl/d.

But three years later a gusher at the legendary Santa Rita No. 1 well started a boom that drew wildcatters into the Permian and continued for decades. Spudded in August 1921, the well – named for the Patron Saint of the Impossible – slowly drilled downward at less than five feet per day for 21 months with no luck.

At one point co-owner Frank Pickrell tossed rose petals from atop its derrick as a gesture to invoke good fortune.

Finally, on May 25, 1923, the well began to yield indications of oil and gas below. Three days later it came in, and the Permian Basin began its first run as

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a major American energy play.

Santa Rita No. 1 was located on land owned by the University of Texas (UT) that had been granted to the school in 1883 by the Texas Legislature. Over the three years that followed the strike, the well earned UT some $3 million in royalties, helping to drive its growth into the top-tier educational and research institution it is today. In 1958 the Santa Rita No. 1’s original walking beam and equipment was moved to the UT campus in Austin, where it now stands near the campus library as a tribute to the contributions it made to the Permanent University Fund.

From Boom to Bust to Biggest Boom Ever As oil grew into big business in West Texas over the years that followed, Midland and Odessa became the industry center of the Permian Basin. During most of the play’s early years, its industry was dominated by major oil companies. But as they left the area starting in the 1970s for what they saw as greater opportunities elsewhere, independents took up the slack. From the late ‘70s until 1988, former President George W. Bush started and helmed independent oil exploration companies out of Midland.

That era saw the fortunes of the oil and has industry in the basin fluctuate. They declined from the 1960s into the ‘70s, revived when oil prices rose from 1977

JAN/FEB 2015 PHOTO BY THINKSTOCK

BE RESOURCEFUL into the ‘80s, and then dropped again with the 1982 Texas oil bust and continued to lag until the dawn of the new millennium, prompting some to predict what is obviously now a premature demise.

The July 1983 cover of Texas Monthly read: “So long, it was fun while it lasted.” The story within detailed what the magazine thought was the death of the oil business as a major Lone Star State industry. But today it’s a whole new ballgame as the Inde-

Even though dropping oil prices at press time have created some concerns, the industry remains optimistic about Permian growth and profitability pendent Petroleum Association of America headlines the West Texas fields as “The Imperishable Permian Basin.”

And independents continue to dominate in the basin. In September 2013, the Houston Business Journal listed the Top 10 Permian oil producers. Coming in at No. 1 was Houston-based Occidental Permian Ltd. Midland headquartered companies that made the list were COG Operating at No. 6 and Endeavor Resources at No. 10. Rounding out the roster was Pioneer Natural Resources of Irving (No. 2), Apache Corporation of Houston (No. 3), Houston’s Kinder Morgan (No. 4), XTO Energy of Fort Worth (No. 5), Houston-based Chevron USA (No. 7) and Oxy USA (No. 8), and Energen Resources out of Birmingham, Ala. (No. 9).

Permian has exceeded Eagle Ford as well as the Brakken Shale in North Dakota and Montana and the Marcellus formation in the Northeast U.S. to lead the nation in production, pumping 18 percent of American crude in 2013. The Texas Railroad Commission lists the Permian oil yield as 322 million barrels in 2012.

Last May, the Fort Worth Star-Telegram reported 546 operating wells in the basin. And estimated that $18 billion would be spent on drilling in 2014.

The signs of this activity – as well as strains on roadways and housing for new labor – are seen throughout West Texas. And the outlook remains robustly bullish. Forecasts estimate production capacity to reach between 2.5 to 3.5 million bbl/day by 2025 and that the Permian Basin possibly holds some 75 billion barrels of recoverable crude, thanks to thicker formations than those found in any other shale play in the nation.

Even though dropping oil prices at press time have created some concerns, the industry remains optimistic about Permian growth and profitability. As Steve Pruett, Chief Executive Officer of Elevation Resources, told the Midland Reporter-Telegram in October, “The Permian Basin won’t shut down, but some fringe acreage might not be drilled.” And the long-term promise remains blazingly bright.

So as West Texas rises yet again in the energy industry to be the most productive and profitable it has been in not just years but decades yet, SHALE will be there from here on out to report on, document, support and celebrate the Permian Basin oil and gas business. As Horace Greeley once advised, we’re going west, and couldn’t be more excited about what’s to come in the future.

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BUSINE S S

UTSA INSTITUTE FOR ECONOMIC DEVELOPMENT CELEBRATES 35 YEARS BY: THOMAS TUNSTALL, PH.D.

E

arlier this month, the UTSA Institute for Economic Development (IED) celebrated 35 years of work in South, Central and West Texas. The institute houses 11 programs that provide important economic development assistance throughout Texas and internationally and create significant economic impact. The numbers are an impressive: $2 billion of direct impacts, combining loans totaling over $350 million plus $1.65 billion increased sales/contracts/exports. That is a 25 percent increase from last year’s record of $1.6 billion.

The 35th anniversary was celebrated with a week-long set of events that kicked off with an introduction by UTSA President Ricardo Romo, followed by a host of dignitaries that included U.S. Congressman Joaquin Castro, Bexar County Judge Nelson Wolff, Pedro Garza with the U.S. Department of Commerce, Omar Garcia with the South Texas Energy and Economic Roundtable and many others. UTSA Vice President for Community Outreach Dr. Jude Valdez was honored with the IED Founder Award and President Romo received the IED Champion Award.

The IED programs cover a broad spectrum of economic development activities.

For example, the Eagle Ford Shale Community Development program works with community leaders that have seen impact from unconventional oil and gas production. The program’s goals are to help implement strategically sequenced development that takes into account the unique challenges facing cities and counties in the region.

The Rural Business Program has been engaging with community leaders in Texas for several years, but the issues they face have changed. Five years ago, many South and West Texas communities were seeing population declines and an exodus of young people. These days, city and county leaders are addressing a completely different set of issues as a result of rapid development from the Eagle Ford Shale activity. The good news is that many families are starting to The core of the move back.

The core of the UTSA Institute for Economic University of Development is the Small Business Development Center (SBDC) program, which covers 79 Texas San Antonio counties across South, Central and West Texas.

(UTSA) Institute Along with university partners in other regions, the SBDCs counsel small and medium-sized for Economic businesses in areas such as business, marketDevelopment is ing and strategic plans, budgets and other business fundamentals. The SBDC network has the Small Business been able to capitalize on the Eagle Ford Shale activity with a long list of successful business Development Center start-ups and expansions in its service area.

(SBDC) program, Since 1992, the SBDC network has extended well beyond Texas and now includes several which covers 79 international efforts In conjunction with its incounties across country partners. The SBDC network includes Mexico, Latin America, the Caribbean and South, Central and much of South America. The program even has an operation in Tunisia. This past year, the West Texas

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✯

www.E s ca l e r a R a n ch18 3 3 .co m

Own a piece of Texas History

PHOTOS COURTESY OF MARK MCCLENDON WITH UTSA

International Trade Center at UTSA was selected first out of 1,100 centers nationwide to receive the SBDC of the Year Award.

Other institute programs include the Procurement Technical Assistance Center, the JP Morgan Chase Veteran’s Program, the Southwest Trade Adjustment Assistance Center and the Minority Business Center. The institute also manages a nationwide program supporting all SBDCs by acting as a clearinghouse for market data and other research to assist small businesses across the country.

The institute conducts research that includes topics such as the Eagle Ford Shale, of course, but also West Texas Energy, the impact of the San Antonio Missions on the local economy and the University of Texas System impact on the state as a whole. Other research has included reports for the San Antonio Economic Development Foundation addressing workforce analysis and targeted industry recruitment.

Of course, even after 35 years, important work remains to be done. The fact remains that UTSA’s Institute for Economic Development – under the leadership of UTSA Associate Vice President Robert McKinley – has created one of the premier organizations of its kind in the country if not the world. The institute boasts a long and distinguished track record, and remains an important asset for all of South, West and Central Texas that is witnessing unprecedented challenges and change.

About the Author: Thomas Tunstall, Ph.D. is the Research Director at the Institute for Economic Development at the University of Texas at San Antonio. He was the principal investigator for the Economic Impact of the Eagle Ford Shale studies released in May 2012, March 2013 and September 2014, as well as the West Texas Energy Consortium Shale Study. He has published peerreviewed articles on shale oil and gas, and has written op-ed articles for the Wall Street Journal.

Dr. Tunstall has spent a significant portion of his career on overseas workforce and economic development assignments in such locations as Azerbaijan, Afghanistan, Kenya and Zambia. He holds a Ph.D. in Economics and Public Policy, and an M.B.A. from the University of Texas at Dallas, as well as a B.B.A. from the University of Texas at Austin.

V i ctor i a,

JAN/FEB 2015

Tex a s

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BUSINE S S

COST EFFECTIVE WAYS TO ENHANCE BENEFITS FOR KEY EMPLOYEES BY: GEORGE F. LONG

Many business owners share a similar concern: They want to provide incentives to retain key employees, but don’t want to negatively impact the bottom line or decrease the benefits of the general employee population to do so. Contrary to many business owners’ fears, these are not mutually exclusive goals. With some creativity you can implement programs that attract and retain top talent at surprisingly little cost.

1. Enhance the Life Insurance Protection

PHOTO BY THINKSTOCK

Most group life insurance programs leave key employees underinsured. You can correct this flaw with Executive Group Life Insurance (EGL). EGL is a guaranteed-issue employer-sponsored program that typically provides higher benefit levels than available through the Group Term Life insurance plans offered by many employers. EGL is typically portable, which means that the employee can continue coverage even after they leave your employment.

This type of coverage could include accumulation features by building policy account value in a tax-deferred manner and offering withdrawals tax-free up to the policy cost basis.

Key person life insurance should also be considered if your business is at risk should a highly

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valued employee meet an untimely death.

Many businesses use key person life insurance to fund the recruitment efforts to replace key employees, provide salary continuation agreements to the family of the deceased, and fund executive compensation programs.

2. Closing the Income Replacement Gap Like group life insurance, most group disability benefits provide basic benefits at the lowest possible cost. Unfortunately, they often leave high earners with a gap in income replacement because they do not include incentive compensation, bonuses or stock options in the benefits calculations. In addition, most group disability plans have monthly salary caps that could be lower than key employees’ earnings.

Supplemental disability plans were designed to close the income replacement gap. These programs can be issued on a guaranteed standard issue basis with simplified underwriting. They also typically have more liberal monthly benefit caps than group disability plans, and use all sources of income (e.g., bonuses) in the income calculation.

Disability income insurance can be offered on a voluntary basis or as a company-paid benefit.

As a voluntary benefit, it provides non-cancellable, portable coverage at a reduced premium which employees likely could not otherwise get in an individual policy.

3. Goal Setting and Financial Planning Employers can select and endorse a fee based financial planning firms to work closely with key talent to help them define and attain their personal financial goals. Some companies pay or subsidize planning fees while others offer the service as an optional, voluntary perk. Even if the key employee has to pay for the planning service, there is value in having the employer select a reputable financial planning firm for employees and give them the time (and place) to meet with an advisor.

Most group life insurance programs leave key employees underinsured 4. Going Beyond the 401(k) Contribution restrictions in qualified plans limit many key employees’ abilities to achieve their long-term goals.

A deferred compensation program is often used to help high earners save more for retirement.

Non-qualified deferred compensation plans can mirror familiar features of basic 401(k) plans, minus the contribution cap. These plans allow the deferral of base pay, bonus, commissions and special incentives. Payout schedules also present another benefit to implementing a non-qualified deferred compensation program.

While each of these four strategies differ, they share a common element: They are selective. The employer decides who participates and who does not.

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If you feel that your business is vulnerable should a key employee or group of employees leave, talk to your insurance professional to determine if any of the above programs might give your benefits package the boost it needs to retain your talent.

OIL & GAS BUSINESS MAGAZINE

For more information: Provided by George F. Long, a financial representative with MassMutual South Texas, a MassMutual Agency; courtesy of Massachusetts Mutual Life Insurance Company (MassMutual) (210) 384-5314, gflong@financialguide.com JAN/FEB 2015

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BUSINE S S

iDISCOVERY SAFARI: GROWING OUR OWN WORKFORCE BY: DR. JANET CUNNINGHAM

T

PHOTOS COURTESY OF JONATHAN SWINDLE WITH HIRES CREATIVE

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he Texas Workforce Commission reports that the Coastal Bend region added 8,630 jobs in 2012.

Based on current job growth and known projects, conservative estimates are an additional 26,000 more jobs in the next five years. As the demands for educated and skilled employees increase, our best hope is preparing local students and growing our own workforce. The good news is that Texas has one of the fastest growing populations in the nation of children under the age of five, and our state also has one of the highest high school graduation rates in the nation. The Coastal Bend can expect over 30,000 high school graduates in the next five years. However, while nearly 63 percent of jobs will require some type of postsecondary education, Texas ranks 43rd in postsecondary participation and 32nd in postsecondary completion, according to the Texas Higher Education Coordinating Board.

As a result of the last legislative session, students are becoming more aware of the need for postsecondary education and are developing career pathways through the selection of one of five endorsements: STEM (Science, Technology, Engineering and Math), Business and Industry, Public Service, Arts and Humanities or Multidisciplinary Studies.

Getting information to students about the many career pathways in the Coastal Bend is on the minds of those in business and industry as well as education leaders. At a recent Ready for College and Career Conference, industry leaders expressed concern about getting career information in the hands of students and the need to encourage more students to pursue programs of study, including career and technology training programs that will lead them to local jobs.

One strategy for sharing information is the iDiscovery Safari career and education fair. Held annually at Richard M. Borchard Fairgrounds in Robstown, the event is scheduled for Saturday, Feb. 28 from 10:00 a.m. to 2:00 p.m. Connecting young people with Coastal Bend careers and the

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education needed for those careers is the strategy behind iDiscovery Safari.

A major focus is getting students on a pathway to postsecondary education, and ultimately increasing the region’s economic prosperity.

Education to Employment Partners, the regional P-16 Council, hosts the event in partnership with Citizens for Educational Excellence, a local nonprofit organization. As a free community event, iDiscovery Safari has grown each year, and this year over 2,000 people are expected to attend.

Locally planned by leaders of school districts, postsecondary education institutions, community organizations and the workforce, the event is different from other traditional career or education fairs. With the safari theme, the event is marketed to children, but organizers know children will bring their parents, and the information is just as important to adults as it is to students. Perhaps the biggest difference is that the event is not all talk but action. Exhibitors provide hands-on activities, demonstrations and displays to engage participants in career areas and then share with them the education and/or skills necessary for that job. “iDiscovery Safari provides an introduction to the many career pathways offered here in our area.

It’s really a fun opportunity for students and their families explore careers that interest them, and perhaps learn about fields that they have never heard about before,” says Steven Luis, Intake Specialist for Coastal Compass Education & Career Resource Center. iDiscovery Safari helps children begin to dream about careers and talk with experts who can excite them about possibilities. For students, exploring career options at an early age helps them connect their learning with future plans. The event is not just for young children, but also for high school students to learn about the many different fields of study for endorsements and adults who want to learn about the in-demand jobs in the Coastal Bend. The strongest message is that jobs are available here and preparation for those careers needs to begin early.

Making sure we have enough workers for the jobs of tomorrow depends on engaging the children of today Planning for iDiscovery Safari 2015 is well-underway, with more career booths, great entertainment and lots of door prizes in the works to encourage families to attend. Over 100 interactive exhibits and demonstrations are planned, including science experiments, welding demonstrations, career simulators, entertainment by local bands and the Nuecestown Gunfighters, and a photo booth for children to take career pictures. Keeping with the safari theme, participants will roam through the jungle of interactive and high-demand career areas including: • Land of Temples (Architecture/Construction) • Tomorrow Land (STEM – Science, Technology, Engineering, and Math) • Land of Service (Public Service) • Self-Safari (Health/Wellness) • The Land of Creativity (Audio/Visual Arts & Communication) • Adventure Dome (Education and Training) Local businesses, especially in the oil and gas industry, are encouraged to host a booth at the iDiscovery Safari. There is no charge for career booths and the fair provides a great opportunity for businesses to spread the word about their employment needs, promote corporate

or organizational causes, expand opportunities for employee volunteer programs, and network with other businesses, nonprofits and postsecondary institutions.

Making sure we have enough workers for the jobs of tomorrow depends on engaging the children of today. It’s a jungle out there – a jungle of opportunities for the youth of the Coastal Bend.

For more information: Email jcunningham@edexcellence.org or call 361-242-5980. For general information about iDiscovery Safari, visit www.iDiscoverySafari.com.

K5 SERVICES, LLC

CORPORATE OFFICE: P.O. Box 1358 711 San Antonio Hwy. Mason, Texas 76856 Office: 325-347-5262 Fax: 325-347-5305 k5services@hotmail.com

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BUSINE S S

QUID PRO QUO

WITH COURTNEY BOEDEKER MARKETING DIRECTOR, HORIZON MUD COMPANY BY: LIZ KIMMEL

Q: What is your typical day like?

A: I have had my hands on many different projects:

from setting up for trade shows, to working with our operations team to putting together drilling fluid proposals requested by prospective customers. The most important aspect of my job is to make sure our sales team has the tools they need in order to effectively communicate.

Q: How do you show community support?

A: Cheering on the Midland College Basketball

team! And recently, I mentored a coworker’s daughter who is struggling a bit in school with reading. We spent a couple of evenings in the library.

Q: What drives you?

A: My dream car is the Cadillac CTS-V Coupe… but

Courtney Boedeker graduated from the University of Texas

at Austin with a Bachelor of Science in Public Relations and a Business Foundations Certificate from the McCombs School of Business in 2012. She is currently the Marketing Director for Horizon Mud Company, a full-service drilling fluids company headquartered in Midland, Texas.

Boedeker was born and raised in the San Antonio area and has been intrigued by the oil and gas industry for several years. She worked for Lewis Energy Group while attending UT Austin and completed summer internship at Devon Energy. For Courtney, oil and gas is a family affair; her dad and brother are also employed by Horizon Mud Company and her mom has been with Lewis Energy Group for over 10 years.

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seriously, it’s the people around me. I am surrounded by a hard-working group with two ethical and giving business owners and a supportive family.

Q: Where do you see yourself in ten years?

A: I’m just getting started! I’m turning 25 in January

and I still have a lot to do. It’s fun to think of experiencing new cities and what my future husband might look like. I have an entrepreneurial flair and hope to start business ventures of my own.

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L IFESTY LE

HEALTH AND WELLNESS IS IN YOUR HANDS BY: RITA OLUFOWOSHE

D PHOTO BY THINKSTOCK

e Premier Spa, a place for healing, comfort and relaxation, brings a holistic approach of optimum health to SHALE Magazine.

We have a passion for care, support, coaching and education for those who desire optimum health and self-help. We provide a therapeutic, serene center for premier skin care and wellness to serve you.

Whether you are dealing with stress, aches, exhaustion, low energy, burn out or skin conditions, we can help. De Premier Spa wants to serve you with a premier level of expertise, and personalize service specific to your needs with cutting edge techniques to help you achieve optimal health.

A commitment to health and wellness wake-up calls combined with proactive action will revive your health

Your Body is talking to you . . . Listen Up! Are you dealing with emotional and physical issues including stress, anxiety or depression?

Do you wake up every day with a feeling of tingling, cramps, spasms, numbness, pins and needles, pain, lack of sensation, swollen lymph nodes, indigestion, etc.?

Are you dealing with aches and chronic pain that prevent you from working or doing what you love?

Does your pain continue despite medication, invasive, and noninvasive treatments?

If you or someone you know can answer yes to any of the above, De Premier Spa is your solution to enhanced health and wellness.

We all have one pain or another, which is good and actually shows that the body is functioning properly. But chronic pain can be devastating, paralyzing, frustrating and depressing. We work day and night to save for our “golden years,” but how many of us really have joyful, healthy later days of life? If we don’t take care of our physical bodies now, what good is all of our hard-earned savings and longterm planning? I urge you to take some time from your busy schedule and reflect upon some ways you can make your health a priority. Think of yourself or other people in your life and how some of their health conditions can serve as a wake-up call for you to start listening to your body – even more closely than you listen to your car’s engine!

By the time a disease or illness is diagnosed, your body must have been communicating signs and symptoms to you for months or years. Everyone should pay attention to the body when the feelings of tingling, cramps, spasms, numbness, pins and needles, pain, lack of sensation, swollen lymph nodes, indigestion, low energy or other minor symptoms become an everyday issue.

When your car’s service lights turn on, do you ignore those warning lights or do you visit the auto repair shop promptly? If the kitchen sink is clogged in your home, you immediately call a plumber, right?

As business owners when sales are not measuring up, we know it’s time to consult a business coach.

We should take the same proactive action when our body communicates symptoms...before the body starts to fall apart. Don’t ignore your body’s warning signs.

A commitment to health and wellness wake-up calls combined with proactive action will revive your health. The reward is a fulfilling, life-long health benefit. Set aside time to listen to what your body is telling you; prevention of ailments and maintenance of good health is crucial. Make your health and wellness your top priority. If you don’t, who will?

We exist to make a difference, and improve people and their quality of life in our community.

De Premier Spa’s signature 7Rs Program for Optimum Health provides restoration, renewal, revitalization, rejuvenation, refreshment and relaxation, and rekindles inner health and beauty for new hope of living a rewarding and successful, healthy life.

For more information: Visit De Premier Spa online at www.depremierspa.com or call 281-496-3772.

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JAN/FEB 2015

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L IFESTY LE

BOOT RANCH: SO MUCH FOR A GIRL TO DO BY: KIMBERLY SAMOON

PHOTOS COURTESY OF BOOT RANCH

I

’ve visited Fredericksburg three times in the last year, and after my recent visit, it is now solidly one of my favorite places of all times. There is so much to do and love about that part of the world, and I imagine being there at least part of every year. You can spend every minute living life large, and just as easily, quietly, pensively in nature. Much of this last visit I spent attending a media event at Boot Ranch, the Texas Hill Country’s finest private golf and family community on 2,000 breathtaking acres just five miles from Main Street in Fredericksburg.

All my Scottish relatives are golfers. My great Aunt Nessie lived on a course north of Inverness and was the first lady to hit a hole in one at Saint Andrews. But sadly, it’s not my game... at least not yet. That said, even touring the course designed by PGA legend Hal-Sutton in a golf cart with some girls from Austin Food & Wine Alliance and The Society Diaries was a total blast. The terrain, the nature, the wildlife, the hills and the water – with some of the most impressive Estate Homes in existence at the far fringes and above the sightlines of the course – are so magnificent, you can’t imagine wanting to be anywhere else, ever.

If there is a course in paradise, the championship 18hole golf course, which rises and falls along the natural ridges and valleys and makes full use of natural water features, has all the makings. Members and guests enjoy all the course has to offer including a 34-acre practice park, short game range, executive Par 3 course, revolving tee times, the traveling beverage cart, and for the gals, ladiesonly tournaments.

Après golf or at any time, the 55,000-square-foot Clubhouse Village includes an award-winning golf shop which

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has some of the best merchandise around for the whole family; shopping there is a must. There are expansive views from the Clubhouse, which is also home to beautifully proportioned men’s and women’s locker rooms with luxurious lounge areas and steam rooms, the ReStore Spa (facials, massage and wellness merchandise), a wellstocked wine cellar, bar, and casual and fine dining with Executive Chef Aaron J. Staudenmaier (formerly general manager of Abacus and Kent Rathbun’s #2 in Dallas).

Outdoor activities are numerous, on-property and off. At the 45,000-square-foot Ranch Club, I swam in the lap pool, used the Jacuzzi, attended a morning poolside yoga class taught by a local teacher and artist, played tennis with one of the members, and watched a weekly ladies’ pickleball game. I even enjoyed a cocktail while timesharing with my

If there is a course in paradise, the championship 18-hole golf course, which rises and falls along the natural ridges and valleys and makes full use of natural water features, has all the makings laptop and the Dallas Cowboys game at the pavilion while a family swam and had poolside snacks. I wanted my 12-year-old son there with me to play foosball, ping pong, and shoot some hoops; hopefully he will be able to in the near future. My husband used a mountain bike one morn-

ing to tour Boot Ranch’s roads, get a lay of the land, and experience a rigorous and enjoyable workout on the hills under the majestic Hill Country sky. Unfortunately, we didn’t have time to try the trap and skeet range, to bird watch (Audubon-certified sanctuary) or to fish (or, as they call it, “catch”) at Boot Ranch’s Longhorn Lake, where the most recent catch was a whopping 10-pound bass! We took a hike at Enchanted Rock, only 10 miles away and in Boot Ranch’s topographical backyard. Hiking that pink granite is so accessible. An invigorating morning hike and round trip commute took me and Boot Ranch’s Director of Member Services Leigh Lacy an hour-and-ahalf in total, even with a moment of meditation (aka rest) at the top to enjoy the spectacular views.

Like all of Boot Ranch’s staff, Lacy’s dedication to the community is effusive: “From the moment our members drive into the front entrance, we are here to do as much or as little for them as they wish. If they would like us to assist in planning each minute of their stay, we are happy to do that. If they just want to get here, kick their boots off and put their heels up, we are here to help with that as well. We are here to create the experience they are looking for, each visit, each stay… every day.”

If all this doesn’t have you planning a trip, there is still a whole lot more for a girl to do, and I did pack it in! In

Quite a few Texans and several others have already landed themselves, their boots and their roots at Boot Ranch

PHOTO COURTESY OF KIMBERLY SAMOON

town, the venues include antique and design shops, boutiques, galleries, pecan and peach storefronts, farm-to-table sandwich halls, German cuisine – both traditional and nouveau (Otto’s) – wine tasting and award-winning vineyards, beer gardens, a supper club and treasure trove (Vaudeville), wildflower farms, great music scenes (Lincoln Street, Hilltop Café), world-class museums (Nimitz) and more. Even the local airport (aka FBO) has a throw-back diner with take-off and landing views and will have you wanting to pilot your own plane (Amelia Earhart costume and all)!

Quite a few Texans and several others have already landed themselves, their boots and their roots at Boot Ranch. Sales this year have topped $15 million for estate home lots, overlook cabins and fractional Sunday house shares, all inclusive of a family-friendly vertical membership, providing access to the entire family, 2 generations up and down, all under one membership.

Private, elegant and festive with a balance of cultivation, nature and so many outlets for every mood, Boot Ranch members and owners regularly host slab parties, family reunions and weddings on property as well as major fundraising gatherings and tournaments (Texas Women for the Arts, Nimitz Foundation, FCA, Valero). A better location that’s reminiscent of Tuscany, Napa Valley or, as Hal Sutton envisioned, the Aspen of Texas would be hard to find. In addition, both Fredericksburg and Boot Ranch are about an hour’s drive from two of the best towns around – Austin and San Antonio.

I’m sold on Boot Ranch and everything Hill Country lifestyle, and my guess is that this is still only the tip of the ‘Fredericks’burg! Loudly and clearly, I’m hearing a voice in my head and another two at home: “When can we head back to Boot Ranch?”

I’m betting real soon.

For more information: Visit www.bootranch.com

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A PRIVATE OASIS IN THE TEXAS HILL COUNTRY

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

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

JAN/FEB 2015

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LIFESTY LE

JOSHUA CREEK RANCH MEANS BUSINESS Joshua Creek Ranch SPECIAL TO SHALE MAGAZINE

N

“

ot only have we helped enable executives from some of the biggest companies in the world build great relationships with their valued customers and employees, but we’ve seen countless new and existing business relationships cultivated among guests while relaxing together in and around our facilities or in the fields hunting upland birds,” says Ann Kercheville, Vice Chairman and President of Joshua Creek Ranch.

Over the past 25 years Joshua Creek Ranch has been well known for delivering an incredible hunting and shooting experience combined with gourmet dining and exceptional lodging for guests. Each year, Joshua Creek Ranch, located 45 minutes northwest of San Antonio, plays host to hundreds of guests from scores of companies including the energy, oil and gas, industrial, construction, and service sectors—the industries that keep our economy moving. Senior executives come to the Texas Hill Country for business conferences, company retreats and other corporate functions and have incorporated Joshua Creek Ranch for a first-class client entertainment experience. Many of them return often to build their relationships and conduct business at the lodge, around the fire pits and in the hunting fields of Joshua Creek Ranch.

Because of the importance of building key relationships outside of today’s fastpaced office and hotel conference facility environments, top business leaders are increasingly using destination spots to combine business meetings and entertainment in a way that nurtures high-value relationships that produce results not possible in the

PHOTOS COURTESY OF JOSHUA CREEK RANCH

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“Sometimes the best way to mind your business is to get away from it.”

– Ann Kercheville, Vice Chairman & President, Joshua Creek Ranch

“business as usual” environments. Those who use the Ranch for their business relationships understand how much valuable business can really take place on a visit to this 1,300-acre sportsman’s paradise.

Art Wilson, a 15-year client of Joshua Creek Ranch, explains, “In my roles in sales and corporate leadership positions at IBM followed by 20-plus years in strategy facilitation around the world with over 200 corporations, my observation is that today, more than ever, relationships are a critical factor to driving value in business. In conjunction with many strategy sessions that I have run at my conference facility and other locations in the San Antonio area, many of my clients added a half day or evening at Joshua Creek Ranch to provide a more relaxed conversational environment to their business function. Joe and Ann Kercheville’s decision to make the major investment to add a state-ofthe-art executive conference facility to their world-class hunting retreat will now enable my clients to have a more integrated business meeting and relationship experience.”

“The most common comment I get from participants after sessions held away from a normal office environment is that participants are able to take actions that will lead to improved results,” Wilson adds. “When

people come together to build an actionable strategy focused on an extraordinary goal and then leave with the enthusiasm to activate and keep momentum, then the session was a very successful investment.

When you are able to get participants out of the normal business meeting setting into one that helps them get to know each other personally, the likelihood of success goes up significantly.”

Dave Ernsberger, a retired senior IBM executive and entrepreneur, says it best, “Just having a great product is not enough today. Whether it is IBM or a start-up, the fact is that brand value is built out of strong personal relationships. And having an environment that offers the best of a conference center and world-class recreation, lodging, meals and service shows your guests that they are very important to you and to the organization you represent.”

Wilson closed by saying, “At the end of the day, relationships are still what drives business. With the addition of the incredible new executive conference center facilities to open in early 2015, Joshua Creek Ranch will quickly become one of the top destinations for combining business meetings and relationship building. I look forward to using Joshua Creek Ranch regularly to host many of my clients’ leadership team functions.”

Recognized as one of only five Beretta Trident Lodges for Excellence in upland bird hunting in the United States and the only one in Texas, one of only two Orvis Endorsed Wingshooting Lodges in Texas, and recipient of the 2013 Award of Excellence from Sporting Classics Magazine for Hunting Lodge of the Year, Joshua Creek Ranch truly represents the best of the best—and it’s about to get even better!

For more information: Visit Joshua Creek Ranch online at www.joshuacreek.com or call 830- 537-5090.

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Sometimes the best way to mind your business is to get away from it.

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

Call today and book your next meeting, conference or retreat in paradise.

Located in Boerne, TX, just 45 minutes NW of San Antonio, offering guests a first-class setting to enjoy the ultimate outdoor experience.

www.joshuacreek.com a (830) 537-5090 a info@joshuacreek.com 38

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LIFESTY LE

PERRY RICHARDSON BASS: WILDCATTER WITH A GIVING NATURE BY: ROB PATTERSON

I

“

PHOTO BY THINKSTOCK

Rather than calculate their worth, the Basses focused on giving their money to deserving and worthwhile causes and endeavors

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never wanted to be the richest man in the graveyard,” declared oilman Perry Richardson Bass in 1991. And in terms of the legacy he and his family created, its proverbial wealth is as near immeasurable as their fiscal fortune.

A wildcatter as well as philanthropist, keen investor, conservationist, supporter of and confidante to presidents and Texas governors, competitive sailor and much more, his last and middle names are attached to cultural and charitable institutions throughout the Lone Star State and beyond. Born in Wichita Falls, Texas in 1914, Bass was taken under the wing of his uncle, wildcatting pioneer Sid Richardson, after his father died when Perry was 19. At the time a geology student at Yale University, Bass and Richardson hit big pay under the dirt of West Texas in 1935 with their strike in the rich Keystone field. That same year he also won an international championship competition racing snipe sailboats.

The Richardson and Bass partnership, based in Fort Worth, was a major force in the state energy industry in the two-decades-plus that followed. When Richardson passed away in 1959, he left his nephew $12 million. Bass declined the bequest other than about a half million dollars in cattle. His uncle also gave the four sons of Perry Bass – Sid, Ed, Bob and Lee – $2.8 million.

The following year the family consolidated its holdings as Bass Brothers Enterprises, and in later years exponentially increased their fortune, valued at $50 million in 1959, with canny investments. As the price of crude oil multiplied in the 1970s, the Bass family reaped rewards not just from that windfall but later investment yields in Marathon Oil (a reported $160 million profit) and Texaco ($450 million). They diversified by investing $360 million in the Walt Disney Co. in 1984. It was worth $12 billion some 16 years later when Disney stock soared to its highest value.

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Forbes magazine estimated Perry Bass’s wealth at $1 billion not long before he passed away in 2006, and last year it valued the family fortune at $9.1 billion. “I don’t count it,” he once said of his net worth, and he and his wife Nancy Lee Bass eschewed the media spotlight. He may have lived in a mansion, but Bass would also be seen shopping at local stores and Wal-Mart, once commenting, “I don’t buy things I can well afford, because I think they’re overpriced for what you get out of them.”

Rather than calculate their worth, the Basses focused on giving their money to deserving and worthwhile causes and endeavors. To celebrate their 50th wedding anniversary in 1991, they donated $1 million each to 50 different charities.

They were a prime force in revitalizing downtown Fort Worth, including the redevelopment of Sundance Square and the city’s Cultural Center with the Nancy Lee and Perry R. Bass Performance Hall as its stunning centerpiece plus two office towers as commercial ventures. (The University of Texas at Austin also has a Bass Concert Hall.) Fort Worth’s Kimball Art Museum and the Modern Art Museum of Fort Worth were also beneficiaries of Bass largesse. Perry’s Yale alma mater along with schools, hospitals and even Little League teams are among the numerous recipients of Bass family generosity.

Perry Bass is said to have been proudest of his work as Chairman of the Texas Parks and Wildlife Commission. He was a contributor to the presidential campaigns of both Democrat Lyndon B. Johnson and Republican George H. Bush and a key trusted advisor to Texas Governor Bill Clements.

During World War II Bass served in the military as a designer of PT Boats. In the early 1970s he served as navigator on Ted Turner’s American Eagle racing sailboat, which won the Sydney to Hobart yacht race in 1972.

All of the above is just some of what could be described as a truly rich life. On his passing, Perry Bass’s family noted how his 91 years were filled with “remarkable accomplishment and joy.” His Forth Worth neighbor and superstar classical pianist Van Cliburn noted at the time, “He was a legend. He was a giant.” Few if any other wildcatters showed that a great man’s life is not simply measured by how much money they earn, but more importantly what they do with it.

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N ONPR O F I T

TRAINING WOMEN FOR THE OIL AND GAS INDUSTRY BY: JUDITH MOTYKA AND JOSIE SAMAGUEY

F

rom cleaning houses in Midland, Texas to driving a belly dump truck for a company serving the oil fields, Erica Terrazas has come a long way. Separated from her children’s father, Terrazas found herself in a difficult financial situation and had to do something to take care of her children and better their lives. When the mother of five learned about Chevron’s Take2 Job Skills Training Program in partnership with the Midland non-profit organization Casa de Amigos, she knew it was the opportunity of a lifetime.

“I was very grateful for my family’s help, especially my Dad’s. But it couldn’t go on forever,” Terrazas says. “I didn’t have time or money for college. Then a friend of mine told me about the Take2 program. It sounded like something I could do so I made an appointment.”

Terrazas met with Josie Samaguey, Program Coordinator for Take2. “Take2 fits perfectly with the mission of Casa de Amigos: helping people like Terrazas help themselves to achieve the highest level of self-sufficiency in the community,” Samaguey says. Clients in Take2 are offered the opportunity to participate in other programs at Casa de Amigos including English as a Second Language (ESL), high school GED, emergency social services, tutoring for their children, and health and wellness clinics.

Take2 is open to all candidates who meet the criteria, but there is an emphasis on helping women. Clients accepted into Take2 are asked to cover part of the cost of training based on financial ability and to dedicate the time necessary to successfully graduate. Starting in 2011, Chevron has invested $690,000 to financially assist clients in Take2 training. Another $125,000 donated supports other Casa de Amigos programs.

But money is not the only factor that makes this program so successful; caring people, like Samaguey, make the difference.

“Josie got me through some hard times until I felt confident enough to take the class for my commercial driving license at Odessa College,” Terrazas says.

“I really wanted to get it because of my kids. I wanted to be able go to the store and buy them the things they needed with my own money.”

Samaguey understands how important independence is for clients. “I always tell them – give it your best and you will not have any regrets. When I look at my clients, I see them for what they can be. They sometimes need someone to believe in them before they can believe in themselves,” Samaguey says. “I assure them that with commitment and dedication, their hard work will pay off.”

Take2 applicants are guided through the process of obtaining training for highly competitive jobs. Several career paths are available. Students can choose certificate programs for Medication Aide, Pharmacy Technician, Phlebotomy Technician training, CNA, LVN, Massage Therapy, professional truck driving and other possibilities. Assistance with applying for college admission and the Free Application for Federal Student Aid (FAFSA) is also available.

“This program provides invaluable skills and training to a disadvantaged part of our community. And with those skills they are able to re-shape their lives, their families and their futures in powerful and positive ways.”

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

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shalemag.com Since 2011, the program has directly impacted 734 clients and indirectly impacted 1,689 people. Direct impact is on clients who have received counseling, financial assistance and/ or other job-related services. Indirect impact includes the families of the client graduates who benefit from increased financial security.

The total yearly income of all the Take2 clients since the program began has reached almost $5 million – an increase in earning power of $3,600,000 for clients who had been marginally employed. Through November of 2014, the gross income of current Take2 clients total about $900,000.

Of the 164 clients who have graduated from the Take2 Job Skills Training Program, 100 are now professional truck drivers like Terrazas. Individual average monthly incomes of Take2 clients this year have reached a range of $3,822 to $5,333.

As a professional truck driver, Terrazas works in a job traditionally held by men. While it can be very challenging for a woman to break into the truck driving field, Terrazas found her way and today has the independence she wants. “I work hard during the week, hauling back and forth to the oil fields,” Terrazas says. “But I have my weekends free so I can spend time with my family and now I earn the income to take care of them.”

Take2 gave Terrazas the opportunity to build a strong, bright future, one that gives her confidence and pride. “I want to save money and buy a house,” she says as she talks about her plans. “Eventually I want to have my own truck so I can start a business.”

Samaguey is very proud of the effort and growth of each client in the Take2 program. “I have seen first-hand how the family and the community benefit when an individual achieves financial independence and job security,” Samaguey says. “This program provides invaluable skills and training to a disadvantaged part of our community. And with those skills they are able to reshape their lives, their families and their futures in powerful and positive ways.”

“It started and continues with our partnership with Chevron for the Take2 program. Today, Casa de Amigos is stronger than ever in fulfilling its mission to help people help themselves.

Terrazas is a vibrant example of the difference our Take2 partnership is making.”

For more information: Contact Josie Samaguey, Take2 Program Coordinator of Casa de Amigos by emailing jsamaguey@casadeamigosmidland.org or by calling 432-682-9701. Visit their website at www.Casadeamigosmidland.org.

JAN/FEB 2015

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 SC ENE 

Employees, stakeholders, elected officials and friends gathered on Nov. 8 to celebrate 65 years of business and the grand opening of a brand new, state-of-the-art headquarter facility with Lake Truck Lines and Lake Oilfield Services. Guests enjoyed great weather in the open tent as the

master of ceremonies, Henry Cisneros, and other speakers including Congressman Lamar Smith and owner Doug Cain detailed the history of the companies and the impact they have had on the San Antonio and surrounding communities. Guests were served a delicious meal including brisket made by Lake Truck Line’s very own Smokers Cooking Team and a feast prepared by Don Strange Catering and enjoyed live music at the celebration.

PHOTOS BY JULIAN LEDEZMA

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 SC ENE 

High atop the Shell building in downtown Houston, SHALE held its November/December cover party honoring Doug Kaspar of The Kaspar Companies on Nov. 4.

Guests dined on the fine food and drink offered by the prestigious Houston Club, which provided an elegant atmosphere for the night’s events. Guests came in from all over Texas to celebrate the final SHALE issue in 2014 and had a wonderful time networking.

PHOTOS BY MALCOLM PEREZ

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 SC ENE  Cover Party Continued PHOTOS BY MALCOLM PEREZ

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 SC ENE 

The Future of the Region South Texas Board of Directors convened for its 12th biannual conference called “Connect, Sustain and Prosper,” at the Omni Bayfront Hotel in Corpus Christi on Oct. 27 and 28.

The program brought together public officials, state legislators, business, civic, and community leaders, and private citizens from throughout South Texas and the border region to examine and discuss a number of key issues currently impacting the 47-county region. The program for this year’s conference centered around six major issues: workforce education and training, energy, economic development, border issues, infrastructure—including water, safety and transportation—and health.

PHOTOS BY JOSE ALCALA

Laredo Community College Impact Economic Development Forum.

Community leaders and organizations from the surrounding Laredo, Texas area attended the Laredo Community College (LCC) IMPACT Economic Development Forum, bringing awareness to the international trade, workforce and commerce, and business development industries. IMPACT was formed under the auspice of the Laredo Community College Economic Development Center with a mutual mission of enhancing the economic growth and global competitiveness of Laredo and the South Texas region. “It is very important to emphasize the promotion of high quality education, training, and services, including workforce and business development in the Webb, Jim Hogg and Zapata Counties,” said Rodney Rodriguez, LCC Economic Development Director. “We can fully utilize our resources by partnering and collaborating with our county neighbors to stand united to promote economic development in our communities.”

PHOTOS COURTESY OF THE LAREDO COMMUNITY COLLEGE ECONOMIC DEVELOPMENT CENTER

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Marathon Oil Corporation is an independent international exploration and production company. Based in Houston, Texas, the company has activity in North America, Europe and Africa. Marathon

sponsors of the

economic

Oil’s goal is to be recognized as the premier independent E&P company, and to accomplish this, the company is focused on seven strategic imperatives. These imperatives include maintaining an uncompromising focus on core values to protect its license to operate and drive business performance. The company will invest in its people and relentlessly pursue operational and capital efficiency.

Marathon Oil will accelerate resource development, integrate rigorous portfolio management with robust capital allocation, and capture material and quality resources. Finally, the company will build competitive shareholder value through disciplined long-term focus. With major acquisitions in the Eagle Ford over the last several years, Marathon Oil has established a top-tier position in this liquids-rich resource

play. As of year-end 2013, the company held approximately 211,000 net acres in the Eagle Ford.

Marathon Oil Corporation creates value by responsibly producing oil and natural gas vital to meeting the world’s growing energy needs, and in doing so, acts responsibly toward shareholders and business partners and improves the communities in which it operates. The company has a history of operational success rooted in “living our values” – a philosophy encompassing longstanding commitments to health and safety, environmental stewardship, honesty and integrity, corporate citizenship and a high-performance team culture. We recognize that our actions and operations affect a broad range of stakeholders – including investors, communities, employees, customers, suppliers, business partners and host governments. We believe these core values position us to be an industry partner, employer and neighbor of choice.

For more information: Visit Marathon Oil online at www.marathonoil.com.

impact of the eagle Ford shale

tour

Eagle Ford Shale oil has transformed the Port of Victoria from a sleepy inland waterway port to a bustling center of economic growth and rapid expansion. The Port of Victoria has

become a central Eagle Ford Shale Oil hub on the mid coast of Texas close to the center of Eagle Ford. New liquid cargo docks, and general purpose cargo docks are moving millions of barrels of oil via barge to refineries, with thousands of tons of frac sand coming into the port on barge and rail. Nearly three million barrels a month of oil move across port docks into barges. Victoria Fleet, LLC, in a partnership with the port, has a new fleeting area to accommodate up to fifty barges designed to meet the growing demand of Eagle Ford. Public/private partnerships are available and the port has more than 1,500 acres of prime property for business growth. Port properties have waterfront, rail or highway frontage available. A new container on barge project is being developed and economic development officials are working to expand industrial clients at the port. Oil, frac sand, petrochemicals and agricultural products come through the Port of Victoria along the Victoria barge canal to the intracoastal waterway. Four lane divided highways and rail also bring products in and out of the port. The Port of Victoria has a Foreign Trade Zone, and Freeport Tax Exemption with new infrastructure for business expansion.

PHOTOS COURTESY OF PORT OF VICTORIA

For more information: Contact Executive Director Skip Kaup at 361-570-8855, or email pkaup@portofvictoria.com.

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Opening Doors in San Antonio Since 1974

Winner of 2006 Historic Preservation Award This totally renovated home from top to bottom offers spacious rooms with high ceilings, wood floors, beautiful moldings and a grand wood staircase. Master suite opens to study or exercise room. Fourth bedroom or game room with full bath covers entire third floor with great views.

Nicely landscaped & lighted yard with a new Gary Pool (salt water)

King Realtors

is dedicated to helping San Antonio and the oil industry with their real estate needs.

If you are looking to buy or sell a property, call us and say you saw it in SHALE MAGAZINE!

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

TABITHA KING 210.414.4255 54

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JAN/FEB 2015

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SHALE Oil & Gas business magazine is an industry publication that showcases the significance of the South Texas petroleum and energy markets.

SHALE’s mission is to promote economic growth and business opportunity that connect regional businesses with oil and gas companies.

It supports market growth through promoting industry education and policy, and it’s content includes particular insight into the Eagle Ford Shale development and the businesses involved. Shale’s distribution includes industry leaders and businesses, services workers and entrepreneurs

connect. share ideas. discuss.

OIL & GAS BUSINESS MAGAZINE

http://www.linkedin.com/company/shale-oil-&-gas-business-magazine JAN/FEB 2015

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Service Trucks Ready To Go!

Call Mike King for Pricing and Immediate Delivery!

Visit www.hightouch.info/shale for more info on how we can help the gas and oil industry.

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