SHALE Oil & Gas Business Magazine July/August 2013

THE HILL COUNTRY’S BEST-KEPT SECRET | A NEW OUTLOOK ON REGIONALISM

SHALE J U L Y. A U G U S T 2 0 1 3

GOING THE DISTANCE THE BENEFITS OF BUSINESS TRAVEL

SHARING THE SHALE WEALTH

PRIMERA ENERGY

BOOT RANCH AN OIL EXECUTIVE’S PARADISE

OIL & GAS BUSINESS MAGAZINE

Building the Bridge

OMAR GARCIA AND STEER NEW STANDARDS

Trends in Workforce Housing

THE EAGLE FORD SHALE THE LONE STAR STATE & U.S. ENERGY INDEPENDENCE

OPPORTUNITY, FORMATION AND SURVIVAL HOW TO MAKE IT IN THE OIL INDUSTRY

shale oil & gas business magazine

1

LEADER IN OIL FIELD PETROLEUM SERVICES

CHEMOIL ENERGY IS THE

Partnering with Frac Companies to REDUCE FUEL COSTS, INCREASE EFFICIENCIES and MAXIMIZE PRODUCTION - Specializing in Mobile Fueling for Frac Companies - Innovative On Board True System Technology - Advanced Real Time Data, Invoicing and Customized Reporting - Reliability, Safety and Excellent Service

Kimberly Webb Business Development Manager Diesel Division / 210.844.1753 Chemoil Energy / 405.605.5436

ENERGY

WE KNOW

THE DRILL THE SINGLE, MOST IMPORTANT DECISION YOU WILL MAKE IS WHO YOU’LL DO BUSINESS WITH.

CALL OR VISIT OUR WEBSITE FOR MORE INFORMATION.

T

M

ORLD. HE W T ES V O

GY, THE LE VE R E N ER

Primera Energy is a bonded Texas operator with unique access to promising Eagle Ford Shale prospects.

TH A

TARGETING THE SWEET SPOTS OF THE EAGLE FORD SHALE

210.545.9600

WWW.PRIMERAENERGYLLC.COM

21022 GATHERING OAK, SAN ANTONIO, TEXAS 78260 • F: 210.545.9600 • PRIMERAENERGYLLC@GMAIL.COM shale oil & gas business magazine

3

Design, Build &Renovations

4

7902 Calle Rialto, Suite 200 San Antonio Texas 78257 www.ckccustomhomes.com 210.408.7613 info@ckccustomhomes.com shale oil & gas business magazine

contents

july/august 2013

28 boot ranch

feature

10 Your piece of the pie

industry news 12 Leader of the pack 16 Funds for a first 18 Start with energy

corporate travel 20 Going the distance

real estate

24 What’s in ‘09?

26 Setting a new standard 28 Boot Ranch

industry players 34 Greater expectations 36 Customer first and fast 38 Taking the lead 40 The bridge

42 Theft of trade secrets 44 Making its mark

nonprofit

enrichment

entertainment

46 Make the magic happen

outdoor

48 The Hill Country’s

54 Building a community of hope

56 Breaking into the business 58 What’s pouring?

60 Art on a grand scale

best-kept secret

52 Working for the wetlands shale oil & gas business magazine

5

advisory board 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.”

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.

Jeffrey Webb

Jeffrey 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.

OIL & GAS BUSINESS MAGAZINE omar garcia

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.

Tim Bartlett

Until joining VLG as the CEO, Tim Bartlett was the chief operating officer at the Brooks Development Authority (www. bc-b.com) since 2008. Since 1999, he has completed more than $1 billion in transactions in the multifamily, renewable energy, higher education and public sectors. Bartlett was the original founder of EgovNet who deployed the first online auto registration renewal on a statewide level (www.oplates.com). The company was sold in 2002.

july/august 2013

Eliot Garza

CEO / NSIDE Media Productions

kym bolado Publisher

editorial director Kelly Hamilton

executive editor Erin O’Brien

creative director Elisa Giordano

senior graphic designer Cristina Villa Hazar

graphic designers Damaris Fike, Heidi Payton

administrative assistant Joyce Venema

contributing writers Caryn Seidman Becker Jen Bonds Doug Cain Mary Mckeown-Christie Ric Dentinger Tabitha King Stacy Macdiarmid Jody Joseph Marmel Dr. Todd Merendino James Perkins Laurie Pickei Victor Ramirez John Ramsey Joyce Venema Jeffrey Webb Patton Zárate

photography Shane Kyle

editorial intern Katrina Torres

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 fiveplus billion gallons of commodities worldwide.

It is the world’s leading integrated producer and marketer of commodities.

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

For editorial comments and suggestions, please send emails to kelly@getnside.com. to reach us: 18402 U.S. Highway 281 N, Ste. 201 San Antonio, Texas 78259 Phone: 210.298.1761 Fax: 210.568.6630 Copyright © NSIDE Media Productions All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.

YO U R PARTNER I N

OIL STORAGE

TANKS Ideally located in Seguin Texas, Tank Partners wants to partner with you.

CALL NOW FOR SP EC

PRICINGIAL

on 400

$7

BBL fro

,950

m

API 12f 210 BBL, 300 BBL, 400 BBL, 500 BBL, 750 BBL, 1000 BBL • Delivery direct to your well site • Stairways, Walkways, Grade Bands • Free on site storage • Separators, Heater-treaters, Gun Barrels • Full Corrosion Systems available

501 E. Baxter Street Seguin, Texas 78155 p 830•433•4866 f 830•433•4965 www.tankpartners.com shale oil & gas business magazine

7

publisher’s note Greetings. My name is Kym Bolado, and I am the publisher of SHALE magazine, San Antonio’s premier executive oil and gas publication.

be part of our nation’s journey to energy independence.

With the recognition that many businesses struggle to get in front of the oil companies in order to showcase their products and services, I decided to start SHALE magazine. We have a family business that provides onsite service to oil companies, and this industry has been very good to my family. It is my hope that this publication will be a useful tool for others to find success.

Through this publication, it is my mission to help all businesses, large and small, establish a direct line of communication, and I feel SHALE magazine provides the perfect platform to accomplish this goal. In addition, I want to highlight and educate our readers about the Eagle Ford Shale boom and the positive impact it has on the state of Texas and beyond.

I bring many years of business experience and leadership to the magazine, and I eagerly look forward to this journey. It is with much pleasure that I am able to see this idea become a reality with the debut issue of SHALE magazine. I invite you all to enjoy and use this exciting new resource.

Sincerely,

8

shale oil & gas business magazine

PHOTO BY SARAH BROOKE LYONS

As a longtime San Antonio resident who was raised in Houston, I grew up in the midst of the oil boom when the Houston Oilers were winners, “Urban Cowboy” was a box office hit and the oil industry was fueling the growth of a city and a state.

I have a wonderful partnership with NSIDE Publications, and it is on the heels of its seventh anniversary that Eliot Garza and I have come together in an effort to produce this premier oil and gas business magazine. It is with the utmost confidence that I am able to tell our partners they have a premier niche publication that they can count on to be here for the long haul. SHALE is dedicated to being the leader in the business sector, and it is always energy friendly.

The last five years of my life have been dedicated to the nonprofit sector, as I am the immediate past president of one of the largest leading nonprofits. The experience I have gained has been invaluable in developing wonderful contacts. However, it is time to get back to my greatest passion for life in the business sector.

What an exciting time we live in now – to

Serving the Interests of San Antonio, The Eagle Ford Shale and The Permian Basin.

The leader in Oilfield Transportation and logistics

doug Cain is committed to supporting the sustainable growth of the Eagle Ford Shale and ensuring its positive impact on the local economy. lake Truck lines transports oilfield materials to the well site and Lake Oilfield Services sells and services the equipment used to contain and process those materials. All of our trucks are connected to the NexTraq Fleet Tracking System so that our customers are always one click away from the real time status of their delivery and all of the equipment we manufacture is engineered with long-term solutions in mind.

We are proud to represent San Antonio and the Eagle Ford Shale during this exciting time of progress and expansion.

• San antonio economic development Council • Texas railroad Commission – eagle Ford Task Force • Texas alliance of energy Producers – South Texas Wildcatters • San antonio desk and derrick Club

Member Texas Motor Transport Association | Member American Association of Drilling Engineers

Serving Shippers Since 1949 www.laketrucklines.com eagle Ford Shale: 20474 Spanish Grant Road San Antonio, Texas 78264 210.626.1329 Permian Basin: 2630 E. Pearl Street Odessa, Texas 79761 432.242.1329

shale oil & gas business magazine

Lake Oilfield Services | Oilfield Solutions with a Partner Perspective | www.lakeoilfieldservices.com

9

feature

your piece of the pie

By: Victor Ramirez

10

shale oil & gas business magazine

businessman with pie charts image ra2studio/shutterstock.com

Opportunity, formation and survival: finding your niche in the oil industry

T

he discovery of the Eagle Ford Shale brought opportunity and growth to South Texas. When one thinks of the oilfield, it’s likely to think of men in overalls and hardhats. But don’t be fooled by the title of the industry. Yes, there is something you too can do. Ever think of becoming selfemployed? Creative ideas such as food catering service, housekeeping service, gate security service and ice machines on camps, to name a few, have found their niche in the oilfield.

The industry welcomes businesses willing to bring the convenience of the city to their work locations. So what’s needed to get a piece of the pie, and what’s needed to survive while other competing businesses arrive?

Well, just like the aforementioned ideas, all of these entrepreneurs began with identifying a skill, service or passion they can offer. They then turned this service into a business typically by forming a corporation, a limited liability company or some other legally recognized entity. The next consideration is insurance. A company intending to service an oilfield-oriented business must have sufficient insurance. While policies and coverage can vary, this is an item that can be worked out with your customer.

Keep in mind that the type of insurance required depends on the type of service you are providing. For example, a service on a well site

number is the most challenging. Supervisors who are able to make coordinating decisions should be of interest to a marketer. If you can sell your service to one person with the authority to hire, he or she will sponsor you in obtaining your vendor number. If you get sponsored, the procurement division of that company may contact you to work out the details of your agreement. If you obtain a vendor number, congratulations: You are open for business in the oilfield. So how do you stay in the business?

There are three basic rules. The first and most important rule is safety. Rule No. 2 is safety. And rule No. 3 is read Rules 1 and 2. You must incorporate a safety plan and follow it. Create one if you don’t have one. If you can’t create one, read your customer’s plan and incorporate it into your policy. Revise your plan regularly and communicate it to your employees.

Remember: “Prevention is worth more than cure.” Lead by example. A business lifespan is extended if you can identify dangers and problems so that dangers and problems are avoided.

Oilfield companies do not want problems or lawsuits. Be a team player. Help avoid them.

Lastly, stay solvent. An oil company is the best customer you will ever encounter. You will make good money if they like you, if you follow policy, if you stay incident free and if you provide a good service. Typically, you will receive lump sum payments since oil companies usually take a

The industry welcomes businesses willing to bring the convenience of the city to their work locations. will require more insurance than a landscape service at a corporate office because of the risks involved. Licenses are additional considerations.

Keep local, state and federal licensing requirements in mind. Do not disregard these requirements because your ability to do business may be terminated as a result of this disregard or lack of awareness.

After a legitimate business is established, licenses are acquired and sufficient insurance is obtained, you need a vendor number and possibly a master service agreement (MSA). This number identifies your company with your customer and allows you to do business and get paid. Yes, this is the element that is the most difficult and the most dissuading. Never give up because it only takes one. Yes, that’s right – only one. So how is a vendor number obtained?

The marketing to obtain your MSA or vendor

few months to pay. Pay your employees first. Do not buy a fancy car or a big house until after you pay your team. Remember to keep your income exceeding both your business and personal expenses, and to not comingle the two.

Victor Ramirez is a Texas attorney practicing in Brownsville and the owner of Southern Gold Diesel Tank Rental LLC of Alice, Texas. Southern Gold provides a reliable and cost-efficient method of providing 500 to 1,000 gallons of fuel delivery, dispensing and storage for oilfield service companies. The company has a zero-incident record and has had the pleasure of working with Baker Hughes, Halliburton and Coil Tubing Service, to name a few. For more information on the services provided by Southern Gold, please call 956-4658154 or email eaglefordrentals@yahoo.com. shale oil & gas business magazine

11

industry news

leader of the pack The Eagle Ford Shale, the Lone Star State and U.S. dependency on foreign oil By: Jeffrey Webb

If Texas were a country, it would be the 13th largest oilproducing nation in the world.

F

or several decades, the United States has striven to achieve energy independence. Since President Nixon declared in 1973 that the nation’s goal should be to meet our own energy needs without depending on any foreign sources, it has been hotly debated whether that lofty goal is realistically achievable.

Over the last 40 years, the reality of energy independence became more and more distant, and in fact, many people were predicting that the United States had reached “peak oil” by the late 1960s or early 1970s. All of that has changed thanks to the recent oil and gas shale revolution.

While the energy independence debate continues today, one thing is certain: The shale revolution currently taking place in the United States is having a tremendous impact on the country’s ability to achieve that goal, and the Eagle Ford Shale is playing a critical role in this pursuit.

TechnologicaL Advancements We can’t talk about the full picture of the energy renaissance without first discussing how it came to be possible. The oil and gas boom in the United States has been brought about by the shale revolution that is due in large measure to technological advancements, which have unlocked “new” sources of oil and gas.

General news coverage would lead you to believe that everything related to shale oil and gas production is new to the field. In truth, the concept of horizontal drilling has been around for more than a century and technological advancements in the 21st century have allowed the drilling of horizontal wellbores to become much more economical and feasible. By drilling a horizontal (as opposed to vertical) wellbore, a much greater area of a hydrocarbon (oil and gas) formation can be accessed with a single wellbore.

These technological advancements, combined with the use of hydraulic fracturing – a practice that has been used since the 1940s – have enabled producers to extract the oil and gas from hydrocarbon formations that previously could not be economically accessed.

These techniques have enormously increased the number of hydrocarbon formations in the

12

shale oil & gas business magazine

United States that can be tapped for their resources. These formations have been known to exist for decades, but until relatively recently, the technology simply did not exist to economically produce the oil and gas from the formations.

Fortunately for South Texas, these techniques are particularly effective in the Eagle Ford Shale, which contains a much higher carbonate shale percentage than other traditional shale plays. That high percentage of carbonate makes it more brittle and ideal for the use of hydraulic fracturing, or “fracking.”

U.S. oil and gas boom This shale revolution has led to an enormous increase in the amount oil and gas being produced in the United States. In January, domestic oil production was above seven million barrels a day for the first time in 20 years, and late last year, the International Energy Agency (IEA) predicted that the United States would surpass Saudi Arabia as the world’s largest oil producer by 2020. The IEA also predicted that North America would become a net exporter of oil in 2030, and that the United States will become virtually oil independent.

The U.S. Energy Information Administration (EIA) estimates are slightly more tempered: It predicts the nation will be dependent on oil imports until 2040. Further information from the EIA to consider: By 2020, nearly half of the crude oil America consumes will be produced at home, while 82 percent will come from this side of the Atlantic – meaning North and South American resources vs. the Middle East.

U.S. government forecasters expect that U.S. petroleum purchases from the Middle East, Africa and Europe will drop to about 2.5 million barrels a day by 2020 from more than four million barrels today, while oil imports from Persian Gulf members of the Organization of Petroleum Exporting Countries (OPEC) will drop to 860,000 barrels a day that year from 1.6 million barrels currently.

OPEC itself recently predicted that by 2035, oil shipments from the Middle East to North America “could almost be nonexistent.”

The United States has witnessed a 40 percent increase in domestic oil production since 2008 – the highest growth in oil output of any country in

the world over that time period.

Net oil imports have plummeted from more than a 60 percent share of domestic consumption in 2005 to less than 40 percent this year, which is the lowest dependence on foreign sources of oil in more than 20 years.

According to Ernst & Young, the largest oil and gas companies increased their investment in U.S. onshore exploration and development to a record $185.6 billion in 2012. In a study that analyzed the 50 largest oil and gas companies, Ernst & Young noted that the opportunity unfolding in shale formations is driving the increased investment, and of course, anyone who is familiar with the Eagle Ford Shale knows it’s not just the large players who are putting their time and dollars into developing the shale opportunity.

The critical role of Texas and the Eagle Ford Shale

OIL WELL PUMPJACK IMAGE JAMES BO INSOGNA/SHUTTERSTOCK.COM

There are numerous factors to consider when discussing U.S. energy independence, from how oil prices impact production and drilling to the nation’s dependence on the broader global economy and the impact of global energy dynamics and geopolitics. But let’s talk about Texas, and more specifically the Eagle Ford Shale, including its role in the U.S. energy renaissance and how it is impacting our country’s economy and energy future.

Texas Texas is, by far, the largest oil and gas producing state in the United States. Since hitting about 2.6 million barrels of oil per day in 1981, Texas oil production began slowly declining, bottoming to just over one million barrels per day during the early part of this century, according to the EIA. Flash-forward to today and daily production has gone vertical: Texas produced just over 2.3 million barrels a day in March – the highest monthly level since April 1986, according to EIA numbers.

Bloomberg reported that based on international crude oil output from November 2012, production has

shale oil & gas business magazine

13

Texas led the nation in oil and gas jobs in 2012, with more than 379,800 people employed by the industry.

Eagle Ford Shale While Texas has been blessed with several productive and prospective hydrocarbon formations, including the Barnett, Permian Basin, Haynesville, Cline, Avalon–Bone Spring and Pearsall, the Eagle Ford has become a shining star in Texas, and in the entire United States, for that matter.

Crude oil production in the Eagle Ford Shale continues to grow by record amounts. Based on data from the Railroad Commission of Texas, the geographic fields that make up the Eagle Ford Shale produced 77 percent more crude oil in March 2013 than they did the year prior, producing 529,874 barrels of crude a day.

14

shale oil & gas business magazine

This represents an approximately 400 percent increase, compared to the daily oil production for 2011.

Not only are there already thousands of actively producing oil and gas wells in the Eagle Ford Shale, but nearly 1,500 drilling permits for new wells were issued in January through April 2013. At the current 2013 permit rate, the 2013 drilling permits are on pace to surpass the 4,143 drilling permits issued for the Eagle Ford Shale last year.

When you also note that the natural gas production from the Eagle Ford Shale was 1,945 million cubic feet per day during the period of January through March 2013, it’s no wonder that a recent report by Wood Mackenzie Ltd. calculated that oil and gas companies will spend $28 billion in the Eagle Ford Shale this year. Based on 2013 estimated capital expenditures, that makes Eagle Ford Shale the largest oil and gas development in the world.

Commodities pricing and its impact on Eagle Ford When talking about the shale revolution, you also have to look at the impact of commodities pricing, which is another area where the Eagle Ford Shale fares well. The continued rate of development of U.S. oil and gas is dependent on the commodities market sustaining adequate oil and gas prices to continue enticing producers to explore further production.

The current low natural gas prices have led to a decline in production in gas-rich plays and a focus on oil-rich plays. When natural gas prices rebound, natural gas production is expected to pick back up.

However, the Eagle Ford Shale has a high concentration of both oil and gas throughout various portions of the formation, making it particularly well positioned to weather commodity price fluctuations. As such, the geological makeup of the Eagle Ford Shale should continue to make South Texas a driving force of the U.S. and global energy revolution.

ENGINEER WITH RED HAT IMAGE DGDIMENSION/SHUTTERSTOCK.COM

grown so rapidly that if Texas were a country, it would be the 13th largest oil-producing nation in the world.

According to the Railroad Commission of Texas, the average Texas rig count was 831 as of May 17, 2013. That means about 49 percent of all active onshore drilling rigs in the United States are located in Texas.

The shale revolution and the economic outlook As U.S. drilling and oil and gas production continue to increase, not only does it impact U.S. energy independence, but it carries significant economic impacts, as well.

This newfound path toward energy independence is expected to have tremendously positive impacts on the U.S. economy. In addition, many expect significant technological advancements in the coming years to take advantage of the abundance of cleaner burning natural gas.

For example, the number of vehicles being powered by natural gas is continuing to increase due to the cheaper costs and improved environmental impact of natural gas, compared to other fuels.

So what is the impact on Texas? According to the inaugural State of Energy report recently released by the Texas Independent Producers & Royalty Owners Association, Texas led the nation in oil and gas jobs in 2012, with more than 379,800 people employed by the industry. This represents 39 percent of all oil and gas jobs nationwide in 2012 and 60 percent more people employed in the industry in Texas, compared to the next four highest-producing states combined (Louisiana, Oklahoma, California and Pennsylvania).

In 2012, Texas’ oil and gas payroll was $48.7 billion, which was over six times more than the second-ranked state of Louisiana.

Oil and gas jobs in Texas also paid on average 150 percent more than the average private-sector job in Texas ($128,100 compared to $51,400).

Of the 10 industry sectors that make up the oil and gas industry, Texas was the leading state of employment in every single sector.

Of the 10 sectors, six had 40 percent or more of the jobs located in Texas.

According to the Economic Impact of the Eagle Ford Shale report released in March 2013, the Eagle Ford Shale had a $61.2 billion total economic impact in 2012 in the 20-county area mostly directly impacted by it. For this

same 20-county area, more than 116,000 fulltime jobs were generated by Eagle Ford activity, with a total payroll of $4.7 billion.

Conclusion Independently, each of the measurements marking the activity generated by the Eagle Ford Shale is impressive. The production volume, the size of the investments being made, the number of

employees and the related payroll spend, as well as the resulting dollars of economic impact, are hard to fathom.

And for those of us living and working in South Texas, the sheer volume of traffic, activity and talk related to Eagle Ford Shale leaves little doubt of its importance to the future of both Texas and the United States.

While no one’s crystal ball can accurately predict the future of U.S. energy independence, it is

safe to say that the Eagle Ford Shale is many steps in the right direction.

Jeffrey Webb is a senior associate in the San Antonio office of Norton Rose Fulbright, a global legal practice providing the world’s preeminent corporations and financial institutions with a full business law service. For more information, please visit www.nortonrosefulbright.com. shale oil & gas business magazine

15

industry news

Having secured $128 million in Series C funding through new investors, revolutionary carbon-negative chemistry company Skyonic plans to build the world’s first commercial-scale carbon capture and mineralization plant. By: Stacy MacDiarmid

S

“Our unique, patented process means that emission problems can become emission profits.”

The new funding includes equity investments from new investors Cenovus Energy [TSX, NYSE:CVE], Bluecap Partners, Toyo-Thai Corporation Public Company Limited [TTCL:Bangkok] and Energy Technology Ventures. These companies join previously announced investors Berg & Berg Enterprises, Northwater Capital Management, ConocoPhillips [NYSE:COP], BP Ventures

16

shale oil & gas business magazine

Finance background image isak55/shutterstock.com

Funds for a first

kyonic Corporation recently announced that it has secured $128 million at the close of its Series C round. The $128 million will be used to support the construction of the world’s first commercial-scale carbon capture and mineralization plant, which is expected to account for the profitable removal of more than 300,000 tons of carbon dioxide. The company will break ground this summer at Capitol Aggregates cement in San Antonio, where the Capitol SkyMine carbon capture plant will be retrofitted. The funds will also help support the advancement of Skyonic’s global IP portfolio of profitable carbon chemistry solutions and other R&D and operations expenses.

[NYSE:BP], PVS Chemicals and Zachry Corporation. These investments bring the total C-round investments to $48 million, including the $9 million announced in July 2012. Skyonic also secured loan financing in the amount of $80 million from Apollo Investment Corporation and Maxus Capital Group.

“The Capitol SkyMine plant will mark the first time that carbon-negative chemistry has reached the commercial stage,” said Joe Jones, founder and CEO of Skyonic. “Our unique, patented process means that emission problems can become emission profits. The carbon-negative products produced, which include sodium bicarbonate and hydrochloric acid, will displace the carbon-positive products currently sold. This is a crucial step towards a cleaner global manufacturing industry.”

The equity and debt funding, together with $28 million in funding under a grant from the U.S. Department of Energy’s National Energy Technology Laboratory, will be used to construct the Capitol SkyMine plant in San Antonio. The retrofit plant is expected to directly capture 83,000 tons of CO2 from the Capitol Aggregates’ emissions. By using this captured CO2 to make products that would otherwise generate additional CO2, the plant will offset an additional 220,000 tons annually, once fully operational in 2014. Skyonic is expected to create more than 200 jobs through the plant’s construction and ongoing operations.

Skyonic’s electrolytic SkyMine technology will selectively capture CO2, acid gases and heavy metals from the flue gas and mineralize the captured pollutants into safe, stable,

solid products. The plant is expected to turn a profit from the sale of these products within three years. Because the plant operates at energy-efficient conditions and produces valuable products using low-cost chemical inputs, SkyMine captures CO2 at a substantially lower cost than other carbon capture technologies, allowing industrial emitters to turn a profit from reduced emissions.

Skyonic will host a groundbreaking event this summer to celebrate the commencement of construction. Jones and other dignitaries will speak at the event.

For more about how Skyonic produces solid returns from clean air, visit www.skyonic.com.

About Skyonic Corporation Skyonic Corporation builds new and retrofittable plants that produce carbon-negative chemical products at the lowest cost, while mineralizing industrial CO2 emissions and scrubbing SOx, NOx and mercury. The company’s technologies are designed to economically extract and mineralize carbon dioxide from industrial flue gas into products such as baking soda, hydrochloric acid and limestone at a commercial scale. These

carbon chemistry processes have a twofold effect, not only driving profit through the sale of products, but also helping mitigate the effects of industrial pollution and close the carbon cycle. The company is building the nation’s first commercial-scale carbon capture and utilization facility at Capitol Aggregates Inc. in San Antonio.

Skyonic was founded by inventor and CEO Joe Jones in 2005, and it is located in Austin. shale oil & gas business magazine

17

industry news

start with energy A new outlook on regionalism: the South Texas Alliance for Regional Trade and Eagle Ford Shale play Special to SHALE

18

shale oil & gas business magazine

A

mericans are well versed in the narrative of the Great Recession and its immediate aftermath. Starting in 2008, the country went through its worst economic slump in modern times. Housing, car manufacturing, banking and other major economic sectors ground to a near halt. High unemployment followed, with minimal new business investment.

This story is different. The South Texas Alliance for Regional Trade (START) has a new outlook on regionalism. During a time of great uncertainty throughout the country, particularly in the historic centers of commerce in the West and East Coasts, South Texas took decisive steps forward, as it had for several years, as a vibrant center of economic growth.

At first blush, those unfamiliar with South Texas might consider the territory anchored by the cities of San Antonio, Laredo and Corpus Christi as iconic tourist destinations – a visit to the Alamo, a shopping trip into Mexico or a day at the beach. While hospitality remains among the region’s important industries, so are international trade, energy, aerospace and the military, which contribute

billions of dollars each year to America’s bottom line.

South Texas has many attributes that have been put to strategic use in recent years, providing the region with remarkable stability during the recent economic downturn. More importantly, South Texas is now positioned as a leader that is helping steer America’s economic future in the 21st century.

START is a collaborative effort that highlights business opportunities in South Texas in the manufacturing, energy, aerospace, international trade, military and other sectors and the related strategic support provided

by Port San Antonio, Port Corpus Christi and the Port of Laredo.

Thanks to new oil and gas extraction technologies, the region’s Eagle Ford Shale has become one of the country’s most important natural resource assets. Just four years ago, oil and gas production at Eagle Ford – which extends approximately 400 miles starting in Laredo and progresses northeast through 21 Texas counties – was virtually nonexistent.

Today, as a result of new drilling technology that uses pressurized sand fracturing of shale formations to release oil and natural

gas embedded in rocks thousands of feet below ground, Eagle Ford produces more than 300,000 barrels of oil and almost one billion cubic feet of natural gas a day. In 2008, the state of Texas issued 26 drilling permits for new production wells in the region. In sharp contrast, in 2012, authorities issued more than 5,000 permits, and the number of new wells continues to grow each month.

Eagle Ford has been a leader among other shale plays around the country that are quickly moving America toward greater energy selfreliance. A report published in late 2012 by the International Energy Agency forecasts that the United States will overtake Saudi Arabia as the world’s leading oil producer by 2017, and that by 2030, the country will be a net oil exporter – almost exclusively the result of ongoing development of the Eagle Ford Shale and similar plays around the country.

The Eagle Ford Shale produces more than

300,000 barrels of oil a day.

Port Corpus Christi

Port Corpus Christi has been a leader in supporting the nation’s energy development since long before the advent of the Eagle Ford play.

Area refineries process more than half a million barrels a day. Furthermore, Port Corpus Christi has almost a century of experience handling crude and refined petroleum products, which today account for 80 percent of its cargo.

Crude oil, gasoline, diesel and fuel oil are its top inbound and outbound commodities, and significant new production resulting from nearby Eagle Ford wells is readily added to the nearly 70 million tons of petroleum products the port already handles annually.

Port Corpus Christi has several facility upgrades in the works to handle the increased demand to export crude and condensates from the Eagle Ford Shale. Oil docks have been retrofitted to accept larger and more frequent tanker barge calls. The port has completed a design for a new public oil dock to accommodate several new customers.

Additional barge mooring areas are being created to serve increased movements of frac sand and liquids. A new barge unloading facility, to be located on the Corpus Christi Ship Channel, will begin construction later this year. Once completed, the facility will handle more than a million tons of imported sand per year. The sand will be cleaned, processed and trucked to drill sites to be used in the hydraulic fracturing process.

Strategically located on the western Gulf of Mexico, Port Corpus Christi provides a straight, 45” deep channel and quick access to the Gulf of Mexico and the entire U.S. inland waterway

system. The port delivers outstanding access to overland transportation, with onsite and direct connections to three Class I railroads, BNSF, Kansas City Southern and Union Pacific and direct, vessel-to-rail discharge capabilities through the Corpus Christi Rail Terminal.

The Joe Fulton International Trade Corridor provides direct, non-congested access to Interstate 37 and Highway 181. Port Corpus Christi is the grantee for Foreign Trade Zone No. 122, one of the largest in the country.

Port San Antonio

Like Port Corpus Christi, Port San Antonio plays an important supporting role in the growth of regional energy projects. In particular, the port’s East Kelly Railport added four miles of track in 2012 that allow a four-fold increase in the amount of rail cargo logistics companies can process at the site – from 5,000 to 20,000 railcars a year.

Since 2009, the railport has seen a doubling in activity, mostly as a result of strong demand for drilling equipment and supplies by nearby well sites on the Eagle Ford Shale. Key commodities handled at the railport include carloads of specialized frac sand, which is brought from locations in the northern United States, transloaded onto trucks at the railport and distributed regionally to well sites.

Port San Antonio sits at the heart of Texas, at the center of the NAFTA Corridor between Mexico and Canada. The port’s airport, Kelly Field, has an 11,500-foot runway able to handle heavy lift aircrafts and onsite U.S. Customs.

The property adjacent to the airport, along with Kelly Field, is the port’s General Purpose For-

eign Trade Zone No. 80-10. Port San Antonio also boasts outstanding access to overland transportation, with access to a Class I railroad, Union Pacific and Interstate Highways 10, 35 and 37.

Port of Laredo

Laredo’s Webb County is one of Texas’ fastest-growing oil and gas production sites in the state. Among counties on the Eagle Ford Shale, it is the largest producer of natural gas, with more than 110 billion cubic feet of natural gas extracted to date.

Several international energy firms have operations in the Laredo region, including Anadarko Petroleum, Chesapeake Energy, Chevron and ConocoPhillips. Furthermore, the locally based Laredo Energy Company was established in 2008 as part of the ongoing growth of new fracturing projects.

The Port of Laredo is the No. 1 inland port on the U.S.-Mexico border. Sitting on the NAFTA Gateway, the port is serviced by two Class I railroads, Union Pacific and Kansas City Southern. Port Laredo’s airport is the first U.S. airport to provide a Mexican Customs check inside its facility, allowing cargo to fly direct to Mexico.

The airport is also the grantee for Foreign Trade Zone No. 94.

For more information on START, visit www.southtexastrade.com.

Port Laredo • Port San Antonio • Port Corpus Christi

shale oil & gas business magazine

19

Corporate Travel

Going the Distance Why business travel will never die By: Caryn Seidman Becker

I

f you’ve ever traveled for business, I’m sure watching “Up in the Air” struck a chord. At the end of the movie, when Anna Kendrick’s character succeeds in modernizing her business, it seemed that video conferencing would replace the need for business travel. When it came out in 2009, video technology was new, travel was down and it seemed a plausible prediction, but here’s why business travel persists: Face-to-face still matters.

Many times, business can be done remotely.

In some cases, however, emails can cause a fatal miscommunication or keep a relationship from going beyond the superficial. Once you make an in-person connection, you give someone context, and creating that relationship is a powerful way to build trust. By traveling to do business faceto-face, you demonstrate how important they are to you and how passionate you are about your business.

Recently, I was playing phone tag with a key decision maker at one of our airports. In order to give our members a better experience, we needed his approval on one item. Our teams just weren’t connecting effectively online, so I jumped on a plane and met him for lunch. Between finishing our burgers and my flight back home, we’d built a good relationship, cleared up a minor miscommunication and received the necessary approvals.

I encourage every member of my team to travel for meetings because I am convinced that sitting face-to-face and building trust is one of the most valuable investments you can make in your company. And I’m not alone.

According to a new study conducted by the U.S. Travel Association with research partner Oxford Economics over an 18-year period, U.S. businesses that continued to spend on business travel – even through the recession – were more profitable than those that cut back. The GBTA es-

20

shale oil & gas business magazine

According to the USTA/Oxford Economics study, every $1 invested in business travel equals $12.50 in revenue and $3.50 in profit.

shale oil & gas business magazine

21

What Are Your Employees Doing When They’re Traveling?

The benefits of traveling for business are proven: more revenue, more profits and better relationships with clients and partners. But there are often-overlooked secondary benefits to business travel: the effects it has on your employees.

In my experience, there are two major benefits for employees when they’re empowered to travel: Team bonding: This term may have a lot of definitions, but the idea is important and the effects are real. Having a personal relationship with colleagues encourages people to work together. When a team travels together, they make authentic connections, which leads to shared goals, challenges and successes.

Working together becomes natural rather than obligatory. And don’t worry: Even when they’re out to dinner, they’re still brainstorming.

Discussions about work outside of work can actually lead to more productivity, better communication and a wealth of great ideas.

Confidence: When a business trip goes well, it feels great.

Those successes build confidence and can often reignite a spark in an employee who needed a bit of inspiration. With CLEAR, for example, I’ve found that every time people get out to one of our airports or visit a new city, they come back reinvigorated and full of ideas. They have stories of how they were able to break down a wall that email couldn’t budge, or how exciting it was to share their passion with people new to CLEAR. It’s easy to get too comfortable within the bubble of the office. Great meetings and successful conferences lead to personal successes and increased confidence. That kind of ROI will be exponentially beneficial once they’re back at their desks.

22

shale oil & gas business magazine

timates that U.S. business travel spending at the end of 2012 was $254.9 billion, and not surprisingly, they project that business travel spending will raise nearly 5 percent in 2013. Bottom line: Face-to-face is still powerful and companies that view business travel as an investment in their future grow fastest.

New technology

While today’s video conferencing can’t replace an in-person meeting, technology has come a long way in making business travel easier and significantly more productive. Innovations such as CLEAR allow airports to embrace technology

that can simultaneously enhance security and help travelers stay efficient on the road.

CLEAR is a secure ID company that uses biometrics to cure one of the great bottlenecks in travel: the airport security checkpoint. Travelers can now speed through in less than five minutes every time they travel. An easier, more predictable and more efficient experience allows corporate travelers to waste less time and get down to what’s important: their business. Across the board, technology is significantly improving travel and making it even easier for business travelers to justify the expense.

Apps and technology keep business travelers productive

No seasoned business traveler leaves the office without at least one smart device, let alone two or three. Besides just Internet and email, there are some amazing apps that make it easier for any business traveler to stay organized and connected on the road.

Evernote and Pocket help those of us who are constantly “saving for later” clip and tag articles, documents and websites to read and share anytime. WorkFlowy is revolutionary for the compulsive list maker; it allows you to categorize, condense and share lists, making it a breeze to power through your “to-dos.” Storage apps like Dropbox and Google Drive make it easy to download and share files of any size, so you never have to worry about being away from the server again.

With the combination of smart phones and even smarter apps, it’s almost like having your desk in the palm of your hand.

Faster/easier security

Toy airplane on computer mouse Image Kinetic/shutterstock.com

Technology has made airport security more efficient and faster for all. Airports around the country have implemented digital wait time analysis for their checkpoints, so now travelers can use a website or app to estimate how long it will take to get through security. And some airports have even installed virtual security assistants that offer tips on getting through security faster.

For international travelers, Global Entry, which allows for a faster experience at Customs, is another technology, like

Caryn Seidman Becker is the chairman and CEO of CLEAR, the leading biometric identity service.

Today, CLEAR’s secure ID platform is curing one of the great bottlenecks in travel: the airport security checkpoint. For more information about how to enroll in CLEAR, please go to www.clearme. com.

CLEAR, that’s making travel more predictable. Less time waiting in line means more time to work while on the road.

Airports and airlines embrace tech

While understanding many people like to use their time in the air to disconnect, airlines also recognize that business travelers need to stay productive and many want to stay connected, even in-flight. More planes are being outfitted with power outlets (Virgin America boasts outlets on all 50 of its planes), and in-air Wi-Fi is no longer a surprise.

Today, more than a quarter of domestic flights have Wi-Fi and the demand for inflight connectivity has even made its way to the FCC. Federal officials and those in the broadband business are predicting that within a few years, travelers will have access to more reliable and faster Internet service in the air than in their homes. This is an absolute game changer for business travelers, and the first step to planes becoming the ultimate mobile workspace.

All it takes is one successful meeting or one relationship that’s strengthened after a face-to-face to understand just how powerful business travel can be. It’s unlikely that technology will ever replace that. Instead, innovations in travel can only make it even more worthwhile.

By eliminating wasted time, enhancing connectivity and increasing predictability, technology makes it hard for employees to justify not getting on the road to help their company grow.

My Top Travel Tech Tips: » TripIt » FlightBoard » GoGo » KnowDelay » New books and music on my iPad mini

shale oil & gas business magazine

23

What’s in ‘09?

Alamo Heights and Terrell Hills: what two of the Alamo City’s most prominent neighborhoods bring to both the San Antonio community and the oil industry By: Tabitha King

W

hile there are so many wonderful homes and areas, what is really attracting the oil industry to the Alamo Heights area?

Alamo Heights and Terrell Hills are two of the oldest and most prominent neighborhoods in our city. They have been home to some of the most impressive people like Tommy Lee Jones, Spurs players and other local celebrities.

Location, location, location! The value is in the lifestyle. While property values continue to give great returns on your money, one of the most impressive things the area offers is a great school district with very little chance of redistricting since there is only limited space to continue to build within the area. The school ranks very high and is among the highest in the city. It is a school with smaller classroom sizes where a child is not just another number and you can get a private education at a public school.

While many things are changing, once old, rundown buildings and motels on Austin High-

way are being torn down and rebuilt into new modern office buildings and retail shopping centers. There are many wonderful restaurants to choose from in the Quarry, in Lincoln Heights and on Broadway. Three H-E-B grocery stores including Central Market, nearby museums,

The value is in the lifestyle. downtown and easy access to freeways are some of the amenities of the area.

Yet, one of the best and most consistent things is the sense of community, the friendly neighbors, the low crime rate and the families committed to raising their children who focus on traditional values. But perhaps one of the biggest draws for the oil industries sector is that it’s only about a 15-minute drive to some of the oil companies located on Highway 281.

Established in 1974, King Realtors is one of the oldest and finest real estate companies in Alamo Heights. They are and always have been a staple within the Alamo Heights community. They know all of the wonderful assets and jewels that lie within this wonderful community. Tabitha and Trey King head up 20 experienced agents who provide exceptional service to clients with housing needs in the oil industry. For more information, please call 210-826-2345 or visit www.kingrealtors.com.

24

shale oil & gas business magazine

Family Outside Dream Home image Monkey Business Images/shutterstock.com

real estate

PLAN YOUR NEXT EVENT AT THE ST. ANTHONY HOTEL ... Legendary for Great Times, Great Service, Great Cuisine!

300 E. H ouston s trEEt

♦

s an a ntonio

♦

210.227.4392

Facebook.com/TheSTanThonyhoTel

♦

www .t HE s t a ntHony H otEl . com @TheSTanThony shale oil & gas business magazine

25

real estate

Setting a New Standard New trends in workforce housing lead to better health of workers. By: Mary McKeown-Christie

H

istorically, workforce housing standards have been very low and have led to poor health (both physical and mental) and high attrition rates for workers. This is bad for everyone – both workers and employers.

With the North America shale-gas boom in full swing and expectations of growth over the next 20 years, companies are scrambling to provide affordable, quality living conditions for temporary and permanent field workforce. ❱ Companies often pay exorbitant housing rates due to rapid relocation from region to region. ❱ Competition among oil service companies is high, and they must control all costs to be competitive. Lodging is a variable that fluctuates

26

shale oil & gas business magazine

constantly and can be a major hurdle for project development and timelines. ❱ Attrition rates are high due to poor living conditions, which cause delays in production. ❱ Health and safety of workers often are compromised or deteriorate rapidly due to poor living conditions.

Specifically, these housing challenges are being faced throughout the North American oil and gas plays (Bakken, Eagle Ford, Cline, Permian/Wolfcamp, Niobrara, Barnett, Haynesville, Utica, Marcellus, etc.).

In order to combat these issues, companies are turning to established real estate developers such as Koontz McCombs to create communities where workers

feel safe and comfortable.

This is a dramatic shift in the industry, and it requires experience to provide the high level of quality in every facet of development from construction materials and cooling systems to well thought-out layouts, comfortable beds with privacy and amenities one would find at home.

“We’re experiencing much happier workers within our communities who tell us they don’t want to leave,” says Koontz McCombs representative Loren Gulley. “We’ve worked very hard to create top-tier private communities with the ‘home away from home’ feel – so much so that locals think our properties are single-family subdivisions versus workforce communities, as our developments were designed like this with each individual cottage having its own private driveway and ample space between each home.

“This is the greatest compliment we could have as a developer, but we’d like to be sure companies who need our services are aware of us. We are enjoying leading the paradigm shift in the workforce housing industry and take great pride in providing the highest-quality living standard in the market. It gives us great satisfaction that our clients and their people are happy, healthy and safe.”

With two locations in the Eagle Ford Shale oil and gas formation, Koontz McCombs has developed Sendero Ranch properties in centrally located Dilley and Pearsall available for daily, weekly, monthly and yearly rental. As a gated community, Sendero Ranch offers luxury accommodations and amenities like no other workforce community in Texas, including: ❱ Gated community ❱ Community pavilion with recreation room including large flat-screen TV, pool table and ping pong table ❱ Laundry facility ❱ Complimentary ice machine ❱ Barbecue pits ❱ Onsite management and maintenance ❱ Queen-size beds ❱ Fully equipped kitchens ❱ Flat-screen TVs, cable and high-speed Internet ❱ Ceiling fans ❱ Private driveways ❱ Covered porches ❱ Weekly maid service ❱ All utilities included in rent The Dilley location also offers commercial and industrial lots ranging in size from 1.3 acres to 50-plus acres available for sale, lease or build to suit. With frontage on Highway 85, this would make a great location for restaurants, retail, office or industrial yards.

For more information about these properties, please visit www.senderoranch.net or contact Loren Gulley directly at 210-841-9262.

The best workforce housing communities in the Eagle Ford Shale. Period!

Sendero Ranch™. Centrally located in Dilley and Pearsall, TX. Contact (210) 841-9262 for bookings.

shale oil & gas business magazine

27

real estate

28

shale oil & gas business magazine

Boot Ranch

The Texas Hill Country’s finest private golf community by: james perkins

J

ust 90 miles outside of Austin and 60 miles from San Antonio you will find ultra-exclusive Boot Ranch. A luxury private golf community of the finest kind nestled in the Texas Hill Country. Featuring an 18-hole Champion golf course and a magnificent award winning Clubhouse, complete with spa, dining, pro golf shop and five-star guest rooms.

Boot Ranch is a one-of-kind community. The most prestigious of addresses, it’s been designed with every generation in mind and caters to families as much as it does to leisure pursuits.

Explore scenic nature trails, meander your way down winding biking paths, hone your marksmanship skills at the Trap and Skeet Pavilion, paddle out to Longhorn Lake to reel in some native bass, or rejuvenate yourself at our luxurious spa, Restore.

It’s no wonder that PGA legend and Ryder Cup hero Hal Sutton chose this place to design a course incorporating everything he loved about the game but with one thing in mind – to provide evshale oil & gas business magazine

29

ery player with a peak golf experience. Hal took full advantage of the natural contours of the property and created a course that rises and falls along the natural ridges and valleys and takes full advantage of natural water features. In front of the signature 10th green, cascades a 40-foot waterfall that provides not only a dramatic visual, but also a challenging test with multiple risk/reward options. Drawing on his experience on Tour, he created a Texas-sized 34-acre,

Boot Ranch has been designed with every generation in mind.

360-degree practice-park that includes a par-3, nine-hole course.

The location makes for great home sites, too. Imagine relaxing in your own luxury retreat set amidst 2,000 acres of rolling hills atop the best part of the Texas Hill Country. Boot Ranch offers you choices as individual as you. Consider Estate Homesites with unparalleled, stunning 25-mile views. Sprawling homesites with rolling hills allow homes to be placed at elevations up to several hundred

30

shale oil & gas business magazine

shale oil & gas business magazine

31

32

shale oil & gas business magazine

feet above the valley. In addition to estate home sites, Overlook Cabins and Sunday Houses offer attractive options.

Overlook Cabins capture the rustic charm of homes handcrafted by the Hill Country’s original settlers and lots are nestled in a special place overlooking the 10th hole. Each half-acre 1,800-3,000 square feet cabin features turnkey plans for intimately scaled one- to six bedroom cabins, lofty guest cottages, barnstyle garages and spacious outdoor courtyards.

Boot Ranch shared interests Sunday Houses offer an escape from the daily distractions and harried pace of city life. A spacious courtyard and stone walkways connect the five structures.

Together they offer a wonderful balance of privacy and community. A large Gathering House is surrounded by four stand-alone cottages, each of which are luxurious suites.

When not enjoying Boot Ranch’s plentiful amenities, the historic town of Fredericksburg is close by. One of Texas’ most popular destinations, it offers great restaurants, shopping, wine tastings, art galleries, festivals, and museums. San Antonio and Austin two of Texas’ most visited cities are also within an hour drive from the property.

For more information about real estate and membership opportunities, please contact Sean Gioffre or Andrew Ball at 830-9976200 or email info@bootranch.com.

Note: This article was previously published in Jetset magazine and was edited according to the magazine’s style and policy. shale oil & gas business magazine

33

industry players

Greater Expectations TANK Partners: your partner in oil storage tanks By: Jody Joseph Marmel

A

merican oil and gas companies require a reliable, high-quality supply of storage tanks. TANK Partners is the solution for exceptional, safer and more affordable API storage tanks. Making stateof-the-art tanks for more than four years now, TANK Partners has a top-notch team of 35 employees who have made their distinctive mark within the industry. TANK Partners welders are all ASME Section 9 certified, and the company places great emphasis on its high standards of quality MIG (metal inert gas) welding and fabrication processes.

“As our name suggests, we like to partner with our customers to solve their oilfield storage requirements economically and with

a quality tank,” says Paul Pusztay, partner and co-president. “Our tanks are fabricated to provide a ‘long operational life span’ and a problem-free service life.”

Within the industry, TANK Partners is a rare breed. Its team provides an outstanding level of service and an industry-best three-year warranty on the product. TANK Partners team members pride themselves on the integrity component, and there is an air of quality across the company from the front office to the shop floor. “We are setting a higher standard for the industry,” Pusztay says, “and it is long overdue.”

North America is experiencing an energy renaissance, and oil independence is within sight, which is remarkable given where we

“We try very hard to understand our customers’ needs and challenges so their jobs become a little easier.”

34

shale oil & gas business magazine

were just a few years ago. With newfound notoriety, however, comes far greater scrutiny from governing bodies and surveillance entities such as the Texas Railroad Commission, EPA, TCEQ and OSHA. “Once upon a time, any old tank would do,” Pusztay says. “But not anymore.” Just ask the small operator who had a tank leak into a local pond that killed a few minnows. Not only was he shut down – he is being prosecuted. The tank was less than 10 years old and had rusted out due to poor workmanship and the lack of an effective corrosion protection system.

Oil and gas operators simply cannot risk tank failure in this day and age with poor-quality storage tanks. It’s expensive and dangerous, which is why TANK Partners has a different view from many other manufacturers on how the humble oil storage tank should be built.

Located on 40 acres in Seguin, TANK Partners is at the doorstep of the Eagle Ford Shale. This is an enormous advantage in terms of logistics and freight efficiencies. Typically, TANK Partners delivers directly to the well site, which further enhances safety and cost savings in transportation. The company offers a multitude of additional services: skids, stairs and walkways, grading bands and even site setup of the tank battery.

Interestingly, TANK Partners always keeps excess capacity in its production line so the team has the ability to service the most urgent need at short notice. “It is our experience that operators don’t like to wait for equipment,” Pusztay says, “and so we play our part in that regard.” Having the ability to make any API 12F tank in any configuration is a service worth noting. These include 210-, 300-, 400-, 500-, 750-, 1,000- and 1,500-barrel storage tanks of almost any dimension.

TANK Partners is a certified, inspected and approved QA/QC manufacturing facility, and the company understands “quality matters.”

Managed by four skilled hands-on executive officers with a great deal of industry experience helps ensure that the quality and safety protocols are met and the interface with customers is industry best.

“We are easy to do business with,” Pusztay says. “We try very hard to understand our customers’ needs and challenges so their jobs become a little easier. If we take care of the tank part, that is just one less thing they have to worry about in the field.”

TANK Partners offers free computer-aided designs (CADs) and goes as far as assisting in battery design if required. As Pusztay concludes, “We will raise your expectations of how oilfield storage tanks should be fabricated and delivered.”

For more information, visit www.tankpartners. com or call 830-433-4866.

Travel in comfort and style with Jet Linx and enjoy the newest aircraft in the San Antonio area. We offer you guaranteed availability, guaranteed hourly rates, and a guaranteed standard of safety for Light Jet, Midsize Jet and Heavy Jet aircraft – anytime, anywhere. All from a local private terminal at San

AtlAntA DAllAs Denver HOUstOn InDIAnApOlIs OmAHA sAn AntOnIO scOttsDAle st. lOUIs

Antonio International Airport and by local Client Service Specialists dedicated to servicing your needs.

Call today for your no-obligation trial Jet Card flight.

JET CARD • AIRCRAFT MANAGEMENT • ACQUISITIONS & SALES

shale oil & gas business magazine

210.892.0800 • JetLinxSanAntonio.com • Info@JetLinxSanAntonio.com

35

customer first and fast

For Clint Schweers and Auto Parts Experts, working with the oil industry is more than just business. Special to SHALE

36

shale oil & gas business magazine

part of car engine image fuyu liu/shutterstock.com

industry players

I

t’s a busy morning at Auto Parts Experts, where owner and CEO Clint Schweers is accustomed to the fast pace. The difference on this particular morning is that it is a Sunday. “We’ve gone from two to three very busy days to being really busy every day, including Sunday,” said Schweers, a 30-year veteran of the industry.

The boom in the Eagle Ford Shale is the driving force behind the increased activity at this family business, just as it is with so many others in South Texas. In fact, being

business multiply tenfold. Schweers believes his success is largely due to the customer service skills his company provides and his understanding that time is money in the oil industry.

“They look for dependable and reliable companies because these folks don’t have time to waste,” he said. “We have hired additional staff just to handle the incoming calls from the oil industry.”

Schweers says it’s more than business to him. The relationships he has developed have grown into great friendships. “These oilfield

“These oilfield workers genuinely care about their work, and it makes me want to work harder for them, too.” open on Sundays is a direct result of the “customer first and fast” response that Schweers maintains at the heart of his philosophy.

“This new demand is pushing every resource we have to new limits,” according to Schweers. “Sometimes I find myself trying to understand how we grew so fast within these past six months. While I am incredibly grateful for the business, I do sometimes miss the quiet Sunday that I once enjoyed with my wife.

But we are a family business, and she understands.”

The growth started innocently enough when an oil company came in and ordered some parts one day.

The next week, another company came in, then another and then another until Auto Park Experts saw

workers, men and women, are some of the hardest working and most dedicated people I’ve ever seen.

They genuinely care about the work they are doing, and it makes me want to work harder for them, too.

Auto Parts Experts is an extended part of their team, and we take great pride in that fact.”

Schweers lives in San Antonio and has been married to his wife, Joy Marie, for eight years. Together, they have two adult children, Raymond and Lauren. When he has time off, he likes to spend it hunting and fishing. Unfortunately for Schweers, that time is rare these days, so it appears the deer and fish are safe – yet another segment of our population benefiting from the Eagle Ford Shale boom. shale oil & gas business magazine

37

industry players

Taking the Lead As one of four lead mechanics at the Weatherford yard in Alice, Texas, Juan Hernandez leads by example and continues his father’s legacy. By: James Perkins

38

shale oil & gas business magazine

J

uan Hernandez is a young, energetic and conscientious individual. His journey to Weatherford has been a natural progression. Born in Houston, he spent part of his youth in Linares, Nuevo León, Mexico, before his parents settled in Edinburg, Texas. While Hernandez considers Edinburg home, his career finds him in Alice, Texas, working for Weatherford as a lead mechanic.

Weatherford is one of the largest global providers of products and services that span the drilling, evaluation, completion, production and intervention cycles of oil and natural gas wells. With more than 58,000 employees worldwide, Weatherford provides the industry with extended products and services, efficient operations, powerful research and development capabilities and geographic diversity.

Hernandez started as a diesel mechanic at Weatherford in 2010, rapidly proved his worth and became a lead mechanic within a year.

His progress is a testament to his skill, but also to that of his teacher. “My dad worked in the industry in Brownsville as a diesel mechanic,” Hernandez says. “He also worked on the cars of our friends and family. By the time I was in junior high, he had taught me how to overhaul an engine.”

While Hernandez has been with Weatherford for the past three years, the 25-year-old got his start in the industry at the age of 18 with Mo-Vac in Edinburg. While there, he found a new mentor in his coworker, Refugio “Cuco” Ibarra. “Refugio was very important in my growth as a mechanic,” Hernandez says.

“Between he and my dad, they helped to make me who I am today.”

Hernandez is one of four lead mechanics at the Weatherford yard in Alice.

Together, they oversee a team of 30 mechanics, keeping the fleet of vehicles and equipment in top condition on a daily basis.

Like all jobs in the Eagle Ford Shale play, the day starts early. Hernandez and his team begin at 7 a.m. to review and plan their work and participate in their daily safety meeting. Eleven days on. Three days off.

When asked to describe his biggest challenge, Hernandez responds without hesitation: “making sure I get the proper rest so my mind is sharp for work. This is the key to getting through the day safely, and it allows me to lead by example.”

To learn more about Weatherford, please visit www. weatherford.com.

t he

bar

a t

boh

a n a n

’ s.

A New Bar With An Old Tradition.

An elegantly appointed Old World bar where cordial

Like the great old bars of the past, we dispense classic

bartenders practice their venerable art behind a

cocktails, exotic beverages and good cheer in a

46-foot bar of reverently polished cherrywood. The

civilized setting. Join us for drinks and hors d’oeuvres,

cheerful clinking of glasses punctuates the rich notes

then come upstairs to Bohanan’s Prime Steaks and

of the baby grand piano.

Seafood for the best steak you’ve ever had.

(210) 472-22 0 2

# 221 East Houston Street San Antonio, Texas

www . boh a n a ns . com shale oil & gas business magazine

C e l e b r at e w i t h u s — t h e b a r i s o p e n !

39

the bridge STEER leads the movement to maintain a cohesive and collaborative effort between South Texas and the oil and gas industry. Special to SHALE

40

shale oil & gas business magazine

T

he discovery of the Eagle Ford Shale in 2008 became the impetus of tremendous change in South Texas – change that has touched the lives of thousands, perhaps millions of Texans, from our small towns to America’s seventh largest city, San Antonio.

The Eagle Ford Shale phenomena is history in the making, and part of that history is the 2012 establishment of the region’s first oil and gas industry association: the South Texas Energy and Economic Roundtable (STEER).

STEER was founded by 11 of the largest oil and gas operators in the Eagle Ford Shale region who saw a critical need to maintain a cohesive and collaborative effort surrounding the exploration of the shale.

With a focus on South Texas, STEER will serve as the bridge connecting the industry and legislature, academia and

the communities throughout South Texas to ensure positive collaboration and communication surrounding the activities associated with the Eagle Ford Shale.

The operators – Anadarko, Chesapeake Energy, ConocoPhillips, EOG Resources, Lewis Energy Group, Marathon Oil, Murphy Oil Corporation, Pioneer Natural Resources Company, Shell Oil Company, Statoil and Talisman Energy – developed STEER to be the guiding liaison between the South Texas communities and the industry to fulfill its destiny to become the premier oil and natural gas resource for the Eagle Ford Shale region.

At the helm of the organization is Omar Garcia, an experienced industry leader with an impressive career in economic development who will serve as the facilitator and coordinator for communication, education and public advocacy surrounding the production of energy resources in South Texas.

“This is an unprecedented time for the

gas image Pakhnyushcha/shutterstock.com

industry players

photo courtesy of steer

South Texas region,” Garcia says. “At STEER, we know that positive growth and development depend on collaboration, active dialogue and continued education among the various stakeholders both involved in and impacted by the oil and gas industry. STEER will serve as the conduit between the industry, government, academia and local communities to ensure that communication and progress takes place in a productive manner.”

“The Eagle Ford Shale is bringing such great opportunity and economic development to Bexar County and the whole of South Texas, so I applaud the efforts of the oil and natural gas industry to create STEER,” says Bexar County Judge Nelson Wolff. “As shale exploration continues, I know STEER will play a vital role in making sure communities have open lines of communication with their legislators and the oil and gas companies.”

Since its inception, STEER has been working with local community leaders and state elected officials to collaborate in promoting long-term investment and sustainability in South Texas. With a focus on education and economic growth, STEER will collaborate with stakeholders in South Texas to help find solutions that will ensure continued prosperity and economic development for the region.

The timely release of the University of Texas at San Antonio’s Institute for Economic Development March 2013 report on the economic impact of the Eagle Ford Shale states that the shale now ranks as the largest single oil and natural gas development in the world based on capital expenditures by companies in the industry.

Garcia and Dr. Thomas Tunstall, director of the UTSA Center for Community & Business Research in the University of Texas at San Antonio Institute for Economic Development, have been traveling throughout the South Texas energy triangle between Laredo, Corpus Christi and San Antonio to educate communities on what this impact means for economic development and the future of the communities that sit in and around the shale.

“The Eagle Ford Shale has proven to be one of the most important economic engines in the state,” says Tunstall, the study’s principal investigator. “In 2012 alone, the play generated over $61 billion in revenue and supported 116,000 fulltime jobs in the area.”

The 11 founding members of STEER invested more than $12 million in 2012 for a variety of infrastructure needs in

South Texas. Wood Mackenzie Ltd. has calculated that the oil and natural gas operators active in the Eagle Ford Shale will spend $28 billion in 2013, up 68 percent from the $19 billion spent in 2012.

“STEER is going to be a tremendously helpful resource and advocate for South Texas as it relates to the Eagle Ford Shale,” says Karnes County Judge Barbara Najvar Shaw. “It is great to see STEER already present in the community. We look forward to their continued work in bridging communities with the oil and natural gas industry so that we can prosper together.”

For more information, visit www.steer.com.

“This is an unprecedented time for the South Texas region.” shale oil & gas business magazine

41

Theft of Trade Secrets How to protect your ideas from competitors and employees in the oil and gas industry By: John Ramsey and Jen Bonds

42

shale oil & gas business magazine

bank vault image Boris Rabtsevich/shutterstock.com

industry players

O

ne of the best-kept secrets in the oil and gas industry revolves around the search for hydrocarbons such as oil and gas. Visit the North American Prospect Expo (NAPE) Convention in Houston, each August, and you will see why.

Every year, individuals and companies expend significant time, money and other resources to research the location of hydrocarbons for prospective wells. Once they have located a “prospect,” these same people and companies frequently share their ideas with others to entertain cutting a deal to drill for oil or gas. The information concerning these prospects may be considered a confidential trade secret under Texas law, which needs to be protected at all costs.

What is a trade secret?

Red computer folders with padlock. 3d image on a white alexyndr/shutterstock.com

Under Texas law, a trade secret is any formula, pattern, device or compilation of information which is used in business and which gives one company an advantage over competitors who do not have it. The thousands of hours and millions of dollars spent on data compilation and exhaustive research to determine the locations of prospective oil and gas wells fall under this definition.

In Texas, there are six factors to consider in determining whether something is a trade secret:

❶ ❷

Is the information known outside the business?

Is the information known by employees and others involved in the business?

❸

Were measures taken to guard the secrecy of the information?

❹ ❺

The value of the information to you and your competitors

The effort or money expended in developing the information

❻

The ease or difficulty for others to acquire or duplicate the information

Although these factors are important, it is not necessary that all of them be satisfied in order to show that a trade secret exists.

With regard to trade secrets that are developed by employees while on the job, the employer generally retains a non-exclusive

property right if the trade secret was developed during the hours of employment or with the employer’s materials, supplies or property.

How to protect trade secrets Determine what material should be kept confidential – what are the trade secrets?

In evaluating what information may warrant protection as a trade secret, companies and employers should take into account what harm may come to them if the same information became readily available to their competitors.

Once that information is selected, steps must be taken to protect it.

Policies and procedures for keeping trade secrets confidential The more steps you take to keep the information confidential, the better. Examples of ways to safeguard trade secrets may include: Labeling documents or other materials

»

“confidential” Requiring visitors to wear name badges Implementing security checkpoints throughout sensitive work areas Limiting the number of employees who are privy to confidential information Using software monitoring to track movement of confidential information Separating computer passwords for sensitive information Requiring employees to sign confidentiality and non-disclosure agreements

» » » » » »

Nondisclosure/confidentiality agreements Employers should require employees to sign a nondisclosure/confidentiality agreement (NDA) if the employees will be exposed to trade secrets or other confidential information.

The same holds true for someone pitching an idea to a competitor. These agreements are routine within the industry and should always be required.

In order to enforce an NDA, one only needs to show ❶ that there was an agreement, ❷ that the particular information at issue was confidential and not generally known to the public and ❸ that reasonable steps were taken to maintain the confidential nature of the information.

The more steps you take to keep the information confidential,the better.

Theft of a trade secret If your trade secret or confidential information has been stolen, disclosed or misappropriated, you may want to consider hiring an attorney to recoup or protect your trade secret. There are remedies available, including restraining orders and injunctions to prevent further disclosure, as well as monetary damages if you have been harmed or if your employee or competitor has profited from your idea.

In short, if you have put the time and money into developing confidential information, you should protect it at all costs and avoid allowing someone else to illegally profit from your hard work.

To learn more about Ramsey Hill LLP, please visit www. rhlawgroup.com.

shale oil & gas business magazine

43

industry players

making its Mark

Independent well operator Primera Energy makes it possible for investors who are not affiliated with large public oil companies to become part of the Eagle Ford Shale’s continued success. By: Patton L. Zárate

T

he State of Texas has long been known for its rich energy resources, with the story of Texas oil making its way into popular culture throughout the United States. From television’s “Dallas” to the once-beloved Houston Oilers, Texas has shown itself to be a place where Big Oil is part and parcel of everyday life, as well as an unlikely source of glamour and untold potential. Texas’ position as one of the major contributors to the U.S. economy has been in large part because of its unrivaled focus on oil

44

shale oil & gas business magazine

production. Enter the Eagle Ford Shale play and San Antonio’s Primera Energy.

The Eagle Ford Shale is a geological formation located in South Texas spanning 24 counties. There are various depths associated with the producing formation, ranging from 4,000- to 14,000-foot vertical depth. According to the most recent Texas Railroad Commission statistics, the Eagle Ford Shale produces 536,117 barrels of oil and 2,141 million cubic feet of natural gas per day.

The formation’s productivity rate is increasing at such a pace that it has led the San An-

tonio Express-News to suggest that the Eagle Ford Shale should be dubbed “Saudi Texas.”

At the time of press, there were 263 rigs working in the Eagle Ford Shale, a figure that represents 14 percent of the working rigs in the United States. It is also likely that the production from the Eagle Ford Shale will continue for decades to come, according to researchers at the University of Texas at Austin.

Against this backdrop of growth and potential American energy independence, San Antonio’s Primera Energy has emerged as an independent well operator in the Eagle Ford Shale. Started in 2005, Primera Energy is making its mark on a stage usually dominated by larger public companies such as Petrohawk, EOG Resources and Chesapeake. By attracting accredited, savvy investors and efficiently developing tracts where they have a 100 percent working interest, Primera Energy is able to compete with the larger companies.

This structure allows Primera Energy to drill economically viable wells while moving quickly enough to take advantage of ready opportunities. To further facilitate success, Primera Energy relies on the expertise of engineers and geologists who have decades of experience in the field and have been involved in the Eagle Ford Shale since its discovery.

Primera Energy has drilled two wells in the Eagle Ford Shale, and has plans to drill two more wells in the next several months. Their most recent well, the Screaming Eagle 2H in McMullen County, completed drilling in late April 2013 to a vertical depth of more than 12,600 feet and a total measured depth of more than 16,600 feet. This was followed by a 16-stage fracture stimulation process that finished in mid-May 2013. The well was unique in that it used sliding-sleeve technology at the toe of the borehole.

The Screaming Eagle 2H well, drilled in the heart of Petrohawk’s Hawkville Field, is performing at rates that could make it on par with – or more productive than – other wells that surround it or are in the general vicinity. In early testing, the Screaming Eagle 2H produced at rates of up to approximately 1,150 barrels of oil equivalent per day.

The Rick Day No. 1 well, in comparison, had initial production rates of 967 barrels of oil equivalent per day. The Woodward 1H well, also drilled by Petrohawk, reported initial production rates of 1,505 barrels of oil equivalent per day.

It is very likely that the initial success of the Screaming Eagle 2H was due to the fracture stimulation procedure done on the well. The procedure was undertaken in 16 stages that ran the entire length of the approximately 4,400-foot lateral section of the wellbore.

The fracture stimulation crew used 350,000 pounds of proppant per stage, and the proppant itself used an environmentally friendly substance known as guar gum as its gel

Primera Energy is able to drill economically viable wells while moving quickly enough to take advantage of ready opportunities.

OIL & GAS BUSINESS MAGAZINE component. On the surface, the crew used turbine-driven pumps, which are more energy-efficient than traditional pumps. These measures, while protecting the environment, also contribute to the longevity of the well and make the well less susceptible to the need for recompletion efforts.

The Eagle Ford Shale is a boon to the Texas economy that is creating jobs for Texans, energy for the United States and prosperity for those who have not enjoyed it before. Companies like Primera Energy are making it possible for investors who are not affiliated with large public oil companies to become part of the Eagle Ford Shale’s success. With the promise the Eagle Ford Shale holds, South Texas has a bright future, indeed.

FOR ADVERTISING INFORMATION PLEASE CONTACT

KYM BOLADO 210.240.7188 kym@getnside.com

K ON REGION

OUTLOO SECRET | A NEW

OIL & GAS

J U L Y. A U

13 GUST 20

MAGAZINE

RCIA OMAR GA AND STEER RDS NEW STANDAHousing

force Trends in Work

SHARING THETH SHALE WEAL

THE EAGLE FORD SHALEE THE LON STAR STATE & U.S. ENERGY CE INDEPENDEN

PRIMERA ENERGY

T RANCH BOO AN OIL EXECUTIVE’S PARADISE

OPPORTUNITY,

BUSINESS

Bridge Building the

GOING THE E DISTANCFITS THE BENE OF BUSINESS TRAVEL

For more information about Primera Energy, visit www.primeraenergypartners.net.

ALISM

S HA L E Y’S BEST-KEPT THE HILL COUNTR

FORMATION

L HOW TO MAKE

AND SURVIVA

IT IN THE OIL

INDUSTRY

shale oil & gas business magazine

45

enrichment

How to be the heart and soul of your company without losing your heart and soul By: Doug Cain

I

was thinking the other week about the time, effort and labor of love that is my stewardship of my 64-year-old company, Lake Truck Lines. Then I started thinking about what it has cost me …

When you start a little company (I started with one junk truck when I restarted the company in 1983), you live, eat, breathe and love on your baby … to the point that you exclude many of the people and organizations you also have in your life. That was me. That was my story.

Church meetings are skipped, birthdays are missed and vacations are postponed (indefinitely, I might add). Your relationships are shortchanged; each interaction is weakened because you are “not really there.” Most importantly, your relationship with yourself is compromised.

At that point, you start “losing your heart and soul.”

But many of the items listed can be rectified – maybe not perfectly, but progress can be made. Some things, however (like time), are irreplaceable. So the real question becomes one of balance. How can Douglas Cain be the heart and soul of Lake Truck Lines without losing

46

shale oil & gas business magazine

his heart and soul in the process?

First off, as with all things, you must make a commitment. Commit to finding the right balance. Just as you must commit to that little baby who is your son or daughter, you must commit the appropriate amount of time to your other child. You can never do something for one child that would bring harm to another. I call this my Fourth Child Analogy.

I have a dear friend who spends so much money and time on his three children that he has little operating capital and time for his small company – his fourth child. Now, this seems backwards to my problem, which is why it was so obvious to me. All relationships and assets must be kept in balance. If they aren’t, someone will get shortchanged, and in the end, it is always you.

I am in the oilfield business. When you are in the oilfield business, it basically means you really do work 24 hours a day, seven days a week. For 27 years, I took as many phone calls at 2 a.m. as I did at 2 p.m., Dec. 25 was the same as March 25 and Sunday was the same as Wednesday. What happened was that I never shut down my brain, liter-

Mature man taking a break image Rido/shutterstock.com

Make the magic happen

ally. My life was a series of catnaps.

So you need to shut everything down and just be still. Shut down the stimulus. Be still and just breathe – even if it is just for a few minutes at a time, a couple of times a day. Turn off the phone (don’t put it on vibrate), turn off the lights, kick off the shoes and enjoy a few minutes of nothing. Trust me, it is harder than it sounds.

When you are running everything, you are stuck in that side of your

Man on top of mountain image djgis/shutterstock.com

Keeping it simple and being consistent are the keys to seeing the results you want … and the results your company needs. brain. Start working out the other side of your brain. Just like I would not workout only my right arm or leg, I force myself to do things that make the other side of my brain work. If you don’t read, then read (you need to read four to six books a year). If you read spy novels, read a presidential autobiography instead. Paint, do woodwork, plant a garden – do something that activates the other side of your brain.

You not only should do something that is outside the norm, but you occasionally need to do those things that are uncomfortable. Getting out of your comfort zone is another benefit of shaking things up. Those of you in sales know all about getting out of your comfort zone. That’s where all the good stuff happens. When you are asked to do something creative, like writing this column (when there is not a creative bone in this old body), that is when the real nuggets come out – when the real lessons are learned.

Peter Braeuler of Renaissance Forums is completely remaking Lake Truck Lines, and he works with our executive staff and asks the same question eight to 10 times. We find that when we are outside of our comfort zone and getting frustrated, the really good answers come out.

The first couple of answers are easy, but that last one or two answers?

Those are the ones that change lives.

Finally, talk to someone. When that mouse is running on that wheel inside your head, it can be a challenge to open up, but please do. My bride, Lisa, listens to me and guides me. My executive assistant, Caryn Kelly, plans my life and calms me down. Braeuler always asks the right questions when I am frustrated and helps me clear my head.

Find that person or those people to open up to and be totally unguarded and honest. That is when you will find out what your real concerns are and when the real answers will begin to come out.

I’m still working these suggestions out in my life; sometimes they work and sometimes it takes time to see the results. But keeping it simple and being consistent are the keys to seeing the results you want … and the results your company needs.

You can be the heart and soul of your company without losing your heart and soul. Just set your boundaries, be still, workout the other side of your brain, talk to someone and watch the magic happen. Until next time …

For more information, contact Doug Cain at douglascain@laketrucklines. com or 210-626-1329.

A Portrait of Hope

Douglas Sterling Cain’s journey to the top

W

ith honor and integrity as his foothold, Douglas Sterling Cain has climbed a mountain. The payoff for devotion, sacrifice and round-the-clock work has yielded 300 percent growth in his company, Lake Truck Lines, over the past two years.

Lake Truck Lines’ humble beginnings are rooted in Houston, formed in 1949 by Cain’s father. Eventually, with his father’s retirement and the decision to purchase the company in 1983, Cain began his climb.

He links the company’s recent growth and success to a decision to move the 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.” His employees are encouraged to be perceptive as to what kind of equipment will make oilfield jobs safer and more effective.

Out of this desire, subsidiary company Lake Oilfield Services was born. This new baby already manufactures six different types of equipment used in the oilfield. Projections are to expand the line to nine types by the end of 2013.

Cain’s intention is to be part of the solution – to help the economic surge that has occurred in rural towns due to the oil boom, to gain momentum and to have “staying power.” As Cain sums up in his own words, “honor and integrity are incredibly expensive on Monday, but the dividends show up on Friday.”

Cain, indeed, has an eagle eye view from the mountain he has climbed. Each decision has enabled him to ascend the steep slope, relying on honor and integrity to get him to the top.

As an authority on transportation oilfield logistics and issues pertaining to the fracking process, Doug S. Cain is a published author, speaker and radio/TV personality. To book him for an interview or speaking engagement, contact Alice Guerra at alice@gtoadv.com or 210-379-4283, or Mark Trevino at mark@gtoadv.com or 210-8708730. shale oil & gas business magazine

47

outdoor

The Hill Country’s Best-Kept Secret Wingshooting and deer hunting destination Joshua Creek Ranch confirms and continues its reputation for excellence. By: Ric Dentinger

B

ack in the late 1980s, the years many old Texans refer to as “the Texas Depression,” Joe and Ann Kercheville weren’t the only ranch owners wondering what they could do to make their Hill Country ranch operation financially viable. Along with the failure of banks and savings and loan companies, purebred Texas longhorn cattle prices literally bit the dust.

The high quality of the Kerchevilles’ “JK” branded herd was well-

48

shale oil & gas business magazine

known among longhorn breeders, but that wouldn’t pay the feed bills or convince the IRS that the financial loss from maintaining the registered herd was an eligible tax deduction. No, the IRS was threatening to declare the cattle operation at Joshua Creek Ranch a “hobby loss.”

It’s funny how things fall into place when you least expect it. Just as the viability of the longhorn cattle operation was threatened, the Kerchevilles had returned from their second consecutive year of driven pheasant shooting in Scotland. The experience was phenomenal – one

American Texas flag image Matt Gibson/shutterstock.com

Joshua Creek Ranch is the only Berretta Trident Lodge in Texas. they hoped to make a tradition.

Joe started comparing their Texas Hill Country ranch terrain to that of the shooting sites in Scotland. He decided driven pheasant shooting could be a good use for the rocky bluffs that perched over the two miles of Joshua Creek flowing through the ranch to its confluence with the Guadalupe River (the north boundary of Joshua Creek Ranch).

The timing also coincided with Ann’s desire to return to the business world after five years of managing their longhorn operations from a home office while mothering their sons, Joseph and Joshua. Her background as a financial officer for a New York stock exchange company made for a good combination with Joe’s professional investment expertise and vast hunting experience. Together, they began

crafting a first-class wingshooting destination that opened in 1990, a time when hunting preserves were not highly regarded among Texas hunters.

Of course, professionally guided quail hunting behind well-trained pointing and flushing/retrieving dogs was part of the plan from the beginning. It’s a must for Texans hunting upland birds, and Joshua Creek Ranch’s reputation for excellence has been confirmed.

In 2010, Joshua Creek Ranch was selected as one of the four charter lodges to earn a Beretta One Trident Lodge designation for excellence in upland bird hunting. Beretta, the 500-year-old gun maker, initiated the program to give its customers confidence in destinations that shared Beretta’s commitment to excellence and the sporting life. The designashale oil & gas business magazine

49

50

shale oil & gas business magazine

tion can only be earned, not purchased.

By 2011, Joshua Creek Ranch earned a second trident and became a Beretta Two Trident Lodge. It’s still the only Beretta Trident Lodge in Texas.

“Ann’s the day-to-day manager and the force that makes Joshua Creek Ranch the highly desirable destination it’s become,” said Joe, giving his wife a quick hug. “But our whole team knows that Joe’s the quality control barometer for our operation,” Ann added. “If the habitat, birds, guides, dogs, food service and lodging are good enough for Joe, then they are very, very good,” she laughed.

Other sporting activities at Joshua Creek Ranch include a fully automated sporting clays course, year-round trophy axis deer hunting, whitetail deer and turkey hunting in season, private Columbaire pigeon shoots, fly fishing for trout and blue gills in spring-fed Joshua Creek and kayaking and tubing at the Guadalupe River.

The latest addition to the sporting opportunities at Joshua Creek Ranch is dove hunting packages that combine highvolume dove shooting in the nearby south zone destinations of Castroville and Hondo with the award-winning dining and lodging at the ranch. Add-ons to the packages include morning quail hunts and driven pheasant shoots.

The Kerchevilles have a passion for

Joshua Creek Ranch not unlike many Texas landholders who’ve put their hearts and souls into their farm or ranch. They’ve sweat figurative blood many times over in the near 30 years they’ve owned the ranch, facing devastating floods at one extreme and years of drought at the other. But in those times, the glass has always appeared half-full to them, presenting an opportunity to turn the changes dictated by Mother Nature into improvements for future generations of heirs and hunters.

The Kercheville family’s continuous ownership and pristine wildlife habitat is the plan that’s been put into motion for the future of Joshua Creek Ranch. The ranch will remain a wildlife habitat forever thanks to the conservation easements placed on the property by the Kerchevilles.

With the population explosion of San Antonio, the nearby Boerne area could not escape notice as a highly desirable location for living, retiring or owning a second home. The terms of the conservation easement (overseen by the Cibolo Conservancy in Boerne) ensure that Joshua Creek Ranch will never be developed, but will always remain the pristine wildlife environment it is today.

For more information on Joshua Creek Ranch, visit www.joshuacreekranch.com. shale oil & gas business magazine

51

outdoor

working for the wetlands Guided by science and dedicated to program efficiency, Ducks Unlimited works to restore and enhance critical wetland habitats.

L

ike the flow of oil and gas from production areas to refining areas, waterfowl utilize migratory pathways and corridors between breeding areas in the northern United States and Canadian prairies, the wintering areas in the Mississippi Alluvial Valley and the coastal regions of the East and West Coasts and the Gulf of Mexico.

These migration routes provide places for waterfowl to fuel up and rest; thus, it is imperative that habitat conservation and management occur throughout the flyway.

Texas is located in the Central Flyway, which extends from the central Canadian provinces down through the Dakotas, Nebraska, Kansas, Oklahoma and Texas. Depending on habitat and weather conditions along that flyway, the Texas Coast is a terminus wintering area for

52

shale oil & gas business magazine

millions of migrating waterfowl, shorebirds and wading birds.

Because waterfowl migrate to and from various areas, it is important to remember that they need a “round trip” ticket. Habitat management programs need to take into account the needs of waterfowl at various regions of the flyway. Research has shown that waterfowl that leave the wintering grounds in good condition generally have better reproductive success and better survival than birds that leave in poorer condition. Thus, management and conservation of the wetlands along the Texas Coast and throughout the entire flyway is critical to sustaining waterfowl populations.

Similar to the many shale plays that are scattered across the United States, Ducks Unlimited (DU) addresses the needs of waterfowl in “prioritized” regions that occur

across the United States. Given its importance to waterfowl in the Central Flyway, the Texas Gulf Coast is a priority region for DU’s habitat conservation programs.

DU has a very aggressive and proactive habitat conservation effort on the Texas Gulf Coast, and it works with private landowners, state and federal agencies and other conservation partners to restore and enhance critical wetland habitats.

DU had a great habitat year in Texas in 2013.

More than 2,200 acres of waterfowl habitat were protected along the Texas coast through the Texas Prairie Wetlands Project (TPWP), bringing the program total to more than 63,000 acres in 20 years. Recent analysis indicates that TPWP habitat projects provide up to 20 percent of the available waterfowl habitat in coastal Texas in some years. TPWP continues

top photo by Todd Merendino

By: Dr. Todd Merendino

to be a model for successful conservation partnership across the nation.

More than 1,000 acres of finished projects were completed on public lands in 2013, including projects at Brazos Bend State Park, Sargent Marsh and J.D. Murphree Wildlife Management Area (WMA).

More than 90 percent of the public projects DU has worked on in Texas are open to hunting, including (but not limited to) Anahuac National Wildlife Refuge (NWR), J.D. Murphree WMA, Richland Creek WMA, Keechi Creek WMA, McFaddin NWR, North Toledo Bend WMA, Justin Hurst (Peach

top and middle photos by keith wesley, bottom photo by Todd Merendino

The Texas Gulf Coast is a priority region for Ducks Unlimited’s habitat conservation programs.

Point) WMA, Mad Island WMA, Gus Engeling WMA, Guadalupe Delta WMA, Alazan Bayou WMA, White Oak Creek WMA, Big Lake Bottom WMA and Gene Howe WMA. As DU begins its FY14, another full slate of projects is planned, including 2,300 acres for TPWP and several public land projects totaling more than 2,500 acres. However, that effort isn’t possible without the tremendous investments of time and money from the many volunteers, supporters, landowners, foundations, corporations and agencies that make these great conservation accomplishments possible.

DU is the world’s largest nonprofit organization dedicated to conserving North America’s continually disappearing waterfowl habitats. Established in 1937, DU has conserved more than 13 million acres thanks to contributions from more than a million supporters across the continent. Guided by science and dedicated to program efficiency, DU works toward the vision of wetlands sufficient to fill the skies with waterfowl today, tomorrow and forever.

For more information on our work, how to support DU and how to find a DU event in your area, contact Manager of Conservation (Texas) Todd Merendino, Ph.D., at 832-5950663 or tmerendino@ducks.org, or visit www.ducks.org.

shale oil & gas business magazine

53

Building a Community of Hope

The National Alliance on Mental Illness leads the movement to make “mental health” and “recovery” synonymous. By: Joyce Venema

T

he National Alliance on Mental Illness (NAMI) is the nation’s largest grassroots mental health organization dedicated to building better lives for the millions of Americans affected by mental illness. NAMI advocates for access to services, treatment, supports and research, and it is steadfast in its commitment to raising awareness and building a community of hope for all of those in need.

Thousands of members and supporters are the face and voice of the NAMI movement – families, individuals, friends and businesses that come together to celebrate mental illness recovery, to honor those who have lost their lives to mental illness and to combat stigma, promote awareness

54

shale oil & gas business magazine

and advocate for others.

The NAMI San Antonio affiliate (NAMI-SA) is a nonprofit 501(c)(3) corporation of nearly 1,000 volunteers who work diligently to promote equitable services and treatment for individuals and families living with mental illness.

Any donations will primarily help NAMI-SA support its free community education programs that are offered year-round for family members, individuals who have been diagnosed with a mental illness and anyone whose life has been touched by mental illness. Donations help us promote our NAMI Connection support group, our peer-topeer education program and In Our Own Voice (IOOV), all of which focus on helping individuals with a mental illness diagnosis live a life in recovery. These programs establish and maintain consumers in wellness and recovery.

In addition to education programs, NAMI-SA’s largescale outreach efforts have had a major impact on the San Antonio community. Our collaborations with local hospitals, schools, legislative officials and law enforcement entities, as well as our general meetings that host leading experts in the field, health fairs and support for faith-based initiatives, have made “mental health” and “recovery” synonymous.

Awareness has been raised and the possibility of recovery from mental illness has been explored; individuals and family members who once felt hopeless now have hope.

However, these programs and services can only take place with support from the community. Due to recent budget cuts, we have seen a decrease in mental health services and access to treatment.

photos courtesy of nami sa

nonprofit

photos courtesy of nami sa

The 7th Annual NAMI Walk

So what is mental illness, and why do we need hope? “Mental illness” is a term used for a variety of disorders that cause severe disturbances in thinking, feeling and relating to others. These disorders are common (more than 57.7 million Americans have a mental illness) and can affect people of any age, race, socioeconomic status, gender and background. Severe mental illnesses (ADHD, PTSD, schizophrenia, bipolar disorder, depression) affect more than 22.9 million Americans in any given year, including 1,338,244 Texans and 89,178 Bexar County residents. With mental health services in jeopardy, the hope provided by NAMI-SA services will continue to be an invaluable asset to our community.

Thank you for your support!

Mental illness affects one in four people in the United States.

The National Alliance on Mental Illness, San Antonio affiliate (NAMI-SA) will host its Seventh Annual NAMI Walk on Saturday, Oct. 5, 2013, at Morgan’s Wonderland. This is a nationwide fundraising and mental health awareness program that is being held in 83 communities around the country. It’s the largest anti-stigma effort in San Antonio and the United States. NAMI-SA’s goal is to raise $100,000.

All funds collected by our walkers, in addition to the donations of our many sponsors, will be used to fund NAMI’s programs in San Antonio and the surrounding area. These programs include support, education, research and advocacy for the one in four people in the United States affected by mental illnesses such as ADHD, PTSD, eating disorders, bipolar disorder, schizophrenia, major depression, obsessive-compulsive disorder, severe anxiety and many others. Many of those we help locally are indigent or have very limited means.

Please consider participating in our efforts to improve the lives of people with mental illness in San Antonio by your sponsorship of $250 to $15,000, by creating a walk team and/ or by joining us on Oct. 5 for our walk. Mental health is so important to our community, as mental illness affects one in four people in the United States. Let your voice be heard and join the movement to help those in need!

Sponsors and partners over the past six years include Gordon Hartman, NSIDE magazine, Chief William McManus, the Center for Health Care Services, Valero, Sunrise Premiums, the San Antonio Express-News, Methodist Healthcare Ministries, the Methodist Healthcare Department of Psychiatry, University Health System, the Clarity Child Guidance Center, Dr. Harry Croft, the Episcopal Diocese of West Texas, Frost Bank, the Law Offices of K.T. Whitehead, Nix Behavioral Health, Pizza Hut, St. George Episcopal Church, the UT Health Science Center Department of Psychiatry and Big Star Branding.

NAMI has saved many lives and families.

Please help us continue our mission with your sponsorship. Donate today! Please contact NAMI-SA at 210-734-3349 or visit our website at www.namiwalks.org/sanantonio for more information.

NAMI-SA is an IRS-recognized 501(c)(3) organization; our tax ID number is 74-2361886. To learn more, look for us on Facebook or Twitter (@NAMI4SA). shale oil & gas business magazine

55

entertainment

Breaking Into the Business

T

exas music has come a long way in the past 30 years, producing several amazing singers and bands such as George Strait, Selena, Kevin Fowler, Mark Chesnutt and the Eli Young Band. There are hundreds of Texas bands and singers trying to make it just like those who have gone before them. Night after night, these troubadours play for crowds in small honky-tonks, local fairs and festivals, hoping that night will be their big break. But there’s one advantage today’s musicians have that their heroes did not: the Internet.

In today’s society, musicians have become very tech savvy, learning to create their own buzz online by creating websites and YouTube videos. If people need a band for their wedding, quinceañera, birthday bash or annual company Christmas party, all they have to do is a little surfing on their computer. Within five minutes, they can tell if the band or act will fit their needs, how much their cost will be and, most importantly, if they like the band’s sound. Even Ellen DeGeneres seeks out guests for her hit daytime show

from videos submitted to her and through the findings of her staff while surfing the Web. Getting your music heard and your name out there is easier than you think. If you have a computer, there are several ways to get started for free. Social media is a great place to start! You can create a page on Facebook and ask the friends you already have to like your page. Before you know it, you will have hundreds of followers waiting for your latest check-in.

How about Twitter? When you play at your favorite hangout, follow

On YouTube, you can create your own channel and post videos from your latest gig.

56

shale oil & gas business magazine

railway road to horizon image riaua/shutterstock.com

Thanks to the Internet, getting your music heard and hitting it big in the music industry has never been easier. By: Joyce Venema

Shale Lodging offers the comforts of home

STAY WITH US

FEEL THE DIFFERENCE

Locations: Pleasanton & Three Rivers TX For more information & reservations :

210-885-9774

Shale Lodge Three Rivers: 2569 US HWY 72 W Three Rivers, TX 78071 Shale Lodge Pleasanton: 2007 2nd Street Pleasanton, TX78064 Shale Lodge Hobbs New Mexico Completion end of 2013 Coming Soon: Odessa Texas - Coming Soon

http://shale-lodging.com

the venue on Twitter and mention them in a tweet. Other folks who follow them will see there’s something happening at their favorite hideout and they will come check you out! And let’s not forget about the re-launch of MySpace with its redesign for musicians led by Justin Timberlake and his business partners.

On YouTube, you can create your own channel and post videos from your latest gig. Some artists simply put themselves singing a cappella or doing an acoustic version of their favorite tune. Remember, two huge discoveries came from YouTube within the past couple of years and millions of teenage girls can tell you about them: Justin Bieber and Austin Mahone. These things are simple and easy to do, but they can change the course of your future stardom with one click.

If you have a little extra cash to spend, check out creating your own website. There are several companies that have reasonable prices ranging from $1.99 to hundreds of dollars. Always do your research when choosing the right company for you. Some sites have userfriendly Web designs that hold your hand every step of the way, while others take you for a ride on the other side of space. Know what you are capable of and the extent of your computer knowledge.

Also, check in your local area for a company that can help you create something just for you, where all you have to do is look pretty for the photos they’ll post. Just remember to always do your homework when giving any company your money. Read reviews, talk to friends or local business owners who have websites and learn from their experiences so their bad experiences don’t become yours.

So what are you waiting for? Grab your laptop or tablet and start making things happen for yourself right now! With hard work, dedication and talent, a prosperous career in the music business is right around the corner for you.

DELSA LOGISTICS LLC PHONE

cell: 210.422.8313 cell: 210.882.0412 fax: 210.775.6491

EQUIPMENT

OWNER Javier de los Santos Muzquiz

• Flatbeds (plataformas) • Dry Vans (cajas) • Livestock (jaula para ganado)

2303 Brighton Oaks San Antonio, TX 78231

WWW.DELSALOGISTICS.COM shale oil & gas business magazine

57

entertainment realized I had a sensitive palate and I could distinguish the different coffee beans,” he remarks. And so began Jacob’s journey to becoming a wine expert.

The perfect pair

what’s pouring?

An award-winning wine list and the services of resident wine expert Fabien Jacob comprise the perfect pairing for an unparalleled fine dining experience at Bohanan’s Prime Steaks and Seafood. By: Laurie Pickei / Photography: Shane Kyle

Taste Like an Expert

When it comes to tasting wine, it is important to appreciate and savor the experience with all of the senses. Fabien Jacob has a few steps that allow you to do just that: ➊ Look at the wine. It should be enjoyable to the eyes, as well. ➋ Smell the wine. There should be a pleasant aroma. ➌ Always take two sips. The first sip allows your taste buds to adjust, and the second sip will be smoother.

Jacob adds that there is no need to smell the cork. Just make sure there is no seepage, and let the wine breathe.

58

shale oil & gas business magazine

S

ince 2002, Bohanan’s Prime Steaks and Seafood has offered guests an unparalleled fine dining experience. With Japanese akaushi steaks and mesquite-grilled, prime-aged center cuts of Midwestern corn-fed beef, as well as an array of freshly prepared seafood and flaming tableside desserts, Bohanan’s also features an award-winning wine list.

And sommelier Fabien Jacob makes it his top priority to share his vast knowledge of wine with guests while finding the perfect pairing for your meal.

Jacob attributes his winding up at Bohanan’s Prime Steaks and Seafood to luck and being at the right place at the right time.

A fascination that began at the quite underripe age of 16, Jacob’s first encounter with wine had him hooked almost instantly.

“It was an accident,” Jacob explains.

“A friend of my father owned a restaurant and needed servers. One day, he asked me to stay after work and try some wines.

He opened a very nice bottle of wine, and I thought it was amazing right away.”

A native of France, Jacob first started training his taste buds by working as a coffier, which later transitioned into wine. “I

While the common assumption is that white wine goes with fish and red with steak, Jacob explains that pairing wine with food is far more complicated than it may seem. When he considers a pairing, Jacob takes numerous aspects into account. He looks at the fat, protein and acid in a dish and works from there, as it is important that the wine does not overpower the flavors in the dish.

Take a Sauvignon Blanc, for example.

Try a sip of the wine first, and then taste it again after biting a lemon. The acid in the wine and the acid of the lemon juice work to cancel each other out to soften the wine and not overshadow the food. These are the kinds of fascinating effects Jacob looks for when pairing a wine.

“Follow your taste buds and what you like – we are all different with different wires,” he says. “It’s not about guessing.

You pick up on tastes that you are most familiar with first.”

Wine lists can often be intimidating … but that’s where Bohanan’s has other wine lists beat. The unique wine list at Bohanan’s is conveniently categorized and includes the characteristics of each wine, from its name and year to where it comes from. Wine is made in all parts of the world, from Greece and China to California and Japan. History and characteristics of the region where the grapes were grown speak volumes about the wine itself.

“The goal here was to make a wine list that is easy to navigate for those that are not only familiar with wines and know what they want, but also for those who do not fully understand wines.”

But for those who just cannot make a decision, Jacob swoops in to help. There are thousands of options, so he usually starts by asking guests what they like, whether they enjoy reds or whites and whether they like their wine more fruity or dry.

The world of wine is complex and intriguing, much like the drinks themselves, and if it were not for living wine dictionaries like Jacob, the vast majority of us average wine drinkers would be lost.

Bohanan’s Prime Steaks and Seafood has a sommelier genius in their midst. So the next time you stop in for dinner, ask for Jacob. You will come away more educated and just a little more enamored by wine.

For more information, visit www.bohanans.com.

join

THE

CONVERSATION

GET

NSIDE MAGAZINE FIND OUT MORE AT

www.getnside.com/sanantonio

shale oil & gas business magazine

59

entertainment

art on a grand scale Grand Hyatt San Antonio uses art to combine sophistication with local flavor.

Special to SHALE

60

“Untitled Flamenco Dancer� painting by Lloyd Walsh shale oil & gas business magazine

I

magine an artist having access to a 1.5 million square foot canvas upon which to design and create a grand scale masterpiece. That canvas is the brand-new Grand Hyatt San Antonio, and the lead artist is Looney & Associates from Dallas, a design team that expertly combined the architectural elements of modernism and sophistication and seasoned them with the vibrancy that is San Antonio’s Latin heritage.

Bold mojito greens, chili reds and pops of hot pink create a pulse and set the backdrop for the sculptures and paintings commissioned by local, regional and national artists specifically for this magnificent venue. The art flows effortlessly throughout the lobby, bar and restaurant and works with the design and architecture to create a visual masterpiece the likes of which the city has never seen.

The grand creations Artist: Lloyd Walsh Entering the lobby of the Grand Hyatt San Antonio, you are greeted by a 76”h by 87”w oversized dramatic painting of a flamenco dancer twirling her skirt. The oil on canvas, created by San Antonio artist Lloyd Walsh, is the result of nearly two months of combined research and painting execution in order to capture the dancer in all her glory. The piece was chosen by the Looney team as the signature piece because of its realistic presence and the strong culture of the flamenco dancer in Latin American society.

Artist: shannon felsot Behind the front desk are eye-popping paintings consisting of overlapping dots created by Atlanta-based artist Shannon Felsot.

“The lobby is the heart of the hotel – the very center of its being,” Felsot says.

“Hundreds of people a day experience this space and one another, coming and going, crossing paths, overlapping footsteps, energy in movement and at rest. These pieces explore the relationships of circles, synonymous with the relationships with people.”

Artist: anita valencia Over the escalator, thousands of birds seem to fly with effortless grace. Upon closer inspection, however, they are revealed to be “perinolas” (Spanish for “whirligigs”),

and they are the creation of San Antonio artist Anita Valencia.

Valencia, who uses only recycled materials in her designs as a statement about consumerism and waste, constructed the 2,500 perinolas from 4,000 recycled aluminum cans. Each can had to be washed, dried, cut open, flattened, sanded to remove the label, gessoed, painted with acrylics, cut into strips and then folded to form the perinolas.

Each one was then hung from monofilament lines, which were cut into 15-foot lengths and then knotted approximately 10 to 12 inches apart. The length between the knots varied so that no perinola was strung at the same length. An iridescent bead was glued to each knot to keep the perinolas from slipping, and the finished product was hung in three rows, each with 37 perinolas.

“All of my art is done using recycled materials because I want the public to see how much we consume and discard and the need for conservation,” Valencia says.

The installation is a wonderful complement to the hotel’s “green” efforts.

Artist: laura nugent Laura Nugent’s bird-themed compositions add a powerful color element to the Grand Hyatt’s boardrooms. Her acrylic-oncanvas works embrace the tradition of pattern and decorative painting in a contemporary format.

This custom collection for Grand Hyatt began with a request for eight works featuring the hot-magenta pinks used in a previous painting and her signature solidly colored avian images.

Using a “paint and scrape” method, Nugent is able to create a world of illusionary depth under a uniquely smooth canvas surface. “Birds have long been a symbol for me of transience, freedom, nature and optimism,” the Kansas-based artist says. “My bold color palette is meant to reflect the joy that working as a painter gives to me.”

The challenge of making eight unique pieces that also exist in sets was one that, over time, tested the bounds of her medium and method. The success of the paintings is the result of Nugent finding an intuitive balance of ornamental elements, figures and hue saturation.

Artist: anonymous The elegant Bar Rojo is home to a shockingly colorful painting of vividly bright parrots set against the hot pink lips of a woman’s face. Created by an artist who wishes to remain anonymous, the piece perfectly captures the color, fun and seductive spirit that is San Antonio’s newest hot spot.

“The design concept is international modernism with a Latin flair. We knew the hotel would have international visitors, so we wanted a sophisticated look, but with a true San Antonio feel. From the dramatic lighting to the ‘papel picado’ inspired carpet, the fresh design palette in the 1,000-guestroom convention center hotel reflects a contemporary Europe-meetsMexico flavor.”

»

– Kathleen Stahlman, Looney & Associates

shale oil & gas business magazine

61

lobby pendants by preciosa

“I’m drawn to the vessel form as a symbol of humanity coexisting with nature.”

– Michael Bauermeister, artist 62

shale oil & gas business magazine

About Hyatt hotel corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family in 45 countries strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The company’s subsidiaries manage, franchise, own and develop hotels and resorts under the Hyatt, Park Hyatt, Andaz, Grand Hyatt, Hyatt Regency, Hyatt Place and Hyatt Summerfield Suites brand names and have locations under development on five continents. Hyatt Vacation Ownership Inc., a Hyatt Hotels Corporation subsidiary, develops and operates vacation ownership properties under the Hyatt Vacation Club brand. As of June 30, 2009, the company’s worldwide portfolio consisted of 413 properties. For more information, please visit www.hyatt.com.

Artist: michael bauermeister “I’m drawn to the vessel form as a symbol of humanity coexisting with nature,” says artist Michael Bauermeister of his wood vessels that grace the Achiote River Café. Designed to “capture the spirit of the natural world that is disappearing from our built environment,” the vessels vary in shape and size and add texture and dimension to the dining atmosphere.

Artist: linda leviton Nature is the inspiration for this artist, whose work is displayed in the hotel lobby, and she incorporates it into her palette as an endless source of pattern, texture and form.

“I love to work with copper; it is wonderfully malleable,” Leviton says. “I fold form copper sheets into serpentine or leaf shapes as in the three vessels for the Grand Hyatt. These shapes form a modular or basic form, which I combine into large, more involved shapes – sometimes representational, sometimes abstract. But the connection with nature is always an undertone.

“The woven forms are created using a frame of heavy gauge wire wrapped with the colorful wires used in electrical motors.”

Artist: martin dawe Martin Dawe is the owner and sculptor for CherryLion Studios, the largest custom design studio in Georgia, specializing in fine art sculpture commissions for public, corporate and private collections.

His contribution to the Grand Hyatt, “Falling Leaves,” can be found prominently displayed in the lobby.

The 15”h by 16”w installation features approximately 150 resin leaves in shades of amber and bronze with silver accents. The leaves are set against a backdrop of a custom-made gold leaf-flaked wall covering for a stunning presentation.

To get the layout of the leaves just right, Tanya Cavalli and Kim Hobbs of Soho Myriad worked until

2:30 a.m. laying out the leaves on a piece of craft paper cut to the size of the wall until they got the configuration just the way they wanted. Then they numbered the back of each leaf, traced the leaves onto the craft paper and numbered them there, too.

The installation team then hung the template on the wall and proceeded to install the leaves.

Artist: denise snyder Sculptor Denise Snyder is another artist drawn to and inspired by the palette that is Mother Nature.

“I build sculpture and am drawn to capture the forms and lines that I see in nature,” the West Coast artist says. “I particularly like to use natural materials in my work, as they lend themselves immediately and are almost like bones. I also like to push the concepts and recreate the branches and forms in fabricated materials like cast glass and metal. Such materials add luminosity and a sense of seriousness to the whimsy of nature.”

Snyder’s stark, yet striking “Willow Wall” is featured in a pre-function area of the Grand Hyatt, and she describes the piece as being about form and space occupation.

“The wood branches have their own intrinsic organic beauty and each needs room to show themselves,” she says. “They also define the shape of the open spaces that surround each one and give that space substance. The flow of this sculpture, with its natural tones of bark and organic motion, is both unpredictable and controlled. I want this work, with its color depth and texture, to make one feel the spirit of the world out there – the world beyond walls, trees and us.”

Artist: michael valiquette San Antonio mixed media artist Michael Valliquette’s intricately crafted works in cut paper add to the folk art aesthetic of the Grand Hyatt. This talented artist works with sheets of multicolored card stock, which are hand-cut into shapes and then glued in shale oil & gas business magazine

63

art, artist and location

Not one painting, sculpture or installation was placed in the Grand Hyatt San Antonio without serious consideration to context, space, size and color.  “Perinolas,” Anita Valencia, Lobby/Bar  “Floating Vessels,” Linda Leviton, Lobby  “Untitled Flamenco Dancer,” Lloyd Walsh, Entry/Lobby  Pink Circles, Shannon Felsot, Registration Desk  “Falling Leaves,” Martin Dawe, Lobby  Untitled, Anonymous, Bar  “Carved Wood Vessels,” Michael Bauermeister, Restaurant  “Migration,” Kathleen Trenchard, Pre-function  “Dreaming in 3/4 Time” and “A Step into Syncopation,” Helen Durant, Pre-function

successive layers from background to foreground.

The flatness of the paper is countered by a dense layering of successively smaller and more ornate pieces. Bending, folding and rolling elements, coupled with the graphic qualities of the cutouts’ edges, create dramatic contrasts, and an intuitive use of color supports the work’s handmade quality.

Valliquette’s imagery emerges through his encounters with a wide range of enchanting and aesthetically driven traditions; at times, they also reference the territory of symbolism, psychedelia and folk paper crafting.

Artist: helen durant The colorful collage animals featured in the pre-function areas of the Grand Hyatt are by artist Helen Durant. “Animals have always touched my heart,” Durant says. “Their genuine natures and capacity to simply be themselves – nothing more or less – inspire me.”

Her creations titled “Dreaming in 3/4 Time” and “A Step into Syncopation” feature a bull and a horse, respectively, created using a paper collage technique.

“I often choose collage as a medium for its spontaneous and serendipitous quality,” she explains. “The paper often tells me what to do. As I begin the process, I simply have an idea of a gesture that bespeaks the animal’s personality and then I let all the preconceived notions go. It is through letting them go that the most exciting results appear.

“Of course, as I tear the paper, myriad options appear, become available and allow me to make choices. I am able to create my own portrayal of the creature,

which sometimes evolves into a mythological representation of the animal.”

Artist: kathleen trenchard San Antonio artist Kathleen Trenchard says her work in paper evolved from a love of drawing and an awe of the traditional Mexican and Chinese art of paper cutting. Her pieces featured in the pre-function areas of the Grand Hyatt reflect the colorful Latin heritage theme of the hotel.

“The works in this exhibit were cut mainly with knives augmented with hammer and chisel and scissors,” she says.

“I collect a variety of unique paper, plastic, cloth and wood materials suitable for cutting, while seeking new applications for this unique, yet universal art form.”

She adds that cut paper has been used across the ages by many people for many purposes from solace for mourners to tokens of love.

“I enjoy the juxtaposition of folk decorations with my own interpretations, contrasting the decorative with the contemplative,” she says. “Subtle gradations of light and shadow are almost impossible to achieve in cut paper, which epitomizes perfectly the duality of positive and negative space, both graphically and literally. This challenges the artist to rely on graphic design and composition for the success of the work.”

Artist: holly heller ramsey New Jersey artist Hollie Heller Ramsey uses mixed media to create collages that incorporate her love of paper, coloring and layering. The diptych that appears in

 Paper Circle Diptych, Hollie Heller Ramsey, Pre-function  Flowers and Raindrops, Michael Valliquette, Prefunction  “Willow Wall” Installation, Denise Snyder, Pre-function  Blue and Green Tree Paintings, Waddy Armstrong, Lobby/Prefunction  Untitled, Holle Black, Prefunction  Bird Series, Laura Nugent, Boardrooms 64

shale oil & gas business magazine

About Grand Hyatt San Antonio

Grand Hyatt San Antonio is a premier destination in the heart of downtown. The 1,003-room, 37-story luxury hotel, with 115,000 square feet of indoor/outdoor meeting space, is adjacent to the Henry B. Gonzalez Convention Center and the famed San Antonio Riverwalk. The hotel also includes a fully equipped 24-hour StayFit@Hyatt gym with a heated outdoor lap pool, Perks Coffee and more. At the Grand Hyatt San Antonio, guests will find a unique blend of location, amenities and service to make their stay unforgettable. For more information on Grand Hyatt San Antonio, Achiote River Café or Bar Rojo, please call 210-224-1234 or visit http:// grandsanantonio.hyatt.com, www.achioterivercafe.com or www.barrojosa.com.

the pre-function areas of the Grand Hyatt is made from layered paper circles that have been cut from a large variety of types of decorative and hand-dyed lightweight papers.

In most areas, Ramsey uses at least seven layers of colored circles, which creates incredible depth and gives the viewer many different layered color combinations to take in. The linear forms created by the circles resemble underwater plant life, while the repetition of the circles creates movement throughout the pieces.

Artist: holle black Born and raised in New Hampshire, Holle Black attended the American College of London, England, and received a BFA from the Atlanta College of Art. The piece she created for the Grand Hyatt is an example of a current technique she developed from her interest in ancient frescoes. She uses layers of colored plasters and paints to achieve a modern form of this ancient art.

Black currently resides in Decatur, Ga., where she lives and works as an artist while raising her three sons and two greyhounds.

Artist: waddy armstrong Moving from New York City to Texas a few years ago caused a shift in interest and direction for artist Waddy Armstrong. “I left the complication and isolation of New York to seek the slow beauty and openness of Texas,” he explains.

The paintings he has featured in the Grand Hyatt capture this change of heart. “This work is the product of a conscious change of location, which developed from my observations,” he says. “I began to note the vegetation and research various plant life and its uses.”

Armstrong adds that his work explores the connection between science, modern art and the natural world. “Inspired by the strange lines and quirky shapes that occur in nature, I take characteristics of various plants and combine them into hybridized semi-abstract compositions. The paintings are beautiful, but while some of the plants appear healthy, others have slight abnormalities that allude to genetic manipulation and illness. This hint of morbidity within the context of beauty creates a conflict that challenges the viewer.”

The grand design Beautiful art cannot be properly appreciated unless it is properly displayed and installed. The trend of using art as an important element in designing a space that has been employed by boutique hotels for years is now making its way to the larger chains.

Kori Wydman led the Looney & Associates design team, devoting two-and-a-half years to this project to make sure the combination of elements supported the overall theme.

“We gave special consideration to all of the art in order to combine the familiar folk art aspect of the Hispanic community with a new modern feel,” Wydman says. “A perfect example of this is reflected in the pattern of the corridor’s carpet – an interpretation of the ubiquitous ‘papel picado,’ the paper cutout banners commonly displayed at times of celebration in the Mexican community.”

Furthermore, each guestroom boasts an impressive abstract of the San Antonio skyline commissioned by Brian Borello. Niches were created in the architecture of the building in order to feature specific works of art, and the artists themselves were incorporated as an integral part of the design team.

Looney worked extensively with the art consulting services team of Soho Myriad in Atlanta to make sure each piece of art selected added to the integrity of the project. Tracey Caswell of Soho Myriad worked as the liaison between the artists and the actual installation process.

For the finishing touches, the Looney team applied their expertise to the millwork, marble, finishes, fabrics and more to ensure the “look” was part of the art.

The grand result The end result of the efforts of Looney and Soho Myriad are one-ofa-kind. Clean, modern lines flow from space to space without disconnects.

Every element of design blends together, with the art and architecture going hand-in-hand to create a contemporary “see and be seen” environment that pays colorful tribute to its home on the Riverwalk.

To learn more about Grand Hyatt San Antonio, please visit http://grandsanantonio.hyatt.com.

closeup of lobby pendant

Grand Lighting Elements

You cannot mention the art in the new Grand Hyatt San Antonio without calling special attention to the lighting elements.

Works of art in and of themselves, the amber glass chandeliers are the focal points of the hotel lobby. Designed by Looney & Associates, the chandeliers serve not only as sources of light, but as an accompaniment to the other artistic elements featured throughout the lobby.

Another unique lighting element is the “Candle Wall” featured in the private dining room. In keeping with the Latin influence, the wall is constructed from teak planks designed to resemble the aged wood from a Spanish mission.

Finally, the most breathtaking lighting fixture is “El Corazone.” Spanish for “heart,” this dramatic red glass chandelier is the centerpiece of Bar Rojo. Five feet in diameter, it features 42 lights that bathe the modern bar in beautiful ambience. shale oil & gas business magazine

65

GET

NPRINTED! NSIDE PUBLICATIONS IS NOW OFFERING FULL-SERVICE PRINTING SOLUTIONS FOR ALL YOUR BUSINESS NEEDS

CALL US TODAY AT 210.298.1761 FOR A FREE QUOTE

WE SPECIALIZE IN

■ LOGOS

■ DIRECT MAIL

■ MAGAZINES

■ BUSINESS CARDS

■ DVD PACKAGING

■ POSTERS

■ BOOKLETS

■ DOOR HANGERS

■ POSTCARDS

■ BROCHURES

■ ENVELOPES

■ CALENDARS

■ FLYERS

■ PRESENTATION FOLDERS

■ CATALOGS

■ LETTERHEADS

■ TABLE TENTS

NPRINTsolutions 18 4 0 2 U.S. HI GHWAY 281 N , S TE. 2 01 66

shale oil & gas business magazine

I

SA N A NTO NI O , T X 78259

I 210.29 8 .1761

shale oil & gas business magazine

67

The SUCCESS of your event is our main CONCERN BLACK TIE AFFAIRS CATERING, INC. Full-Service Catering Richard Ojeda, Owner • 210.854.9074 Debbie Gonzaba, Sales Director • 210.379.2137

210.226.9881 www.btacatering.com • sales@btacatering.com 68

shale oil & gas business magazine