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// THE CE GROUP’S JANET HOLLIDAY: AT THE TOP OF HER GAME //

SHALE OIL & GAS BUSINESS MAGAZINE

MARCH.APRIL 2014

GIVING BACK

WTI, BRENT AND THE TEXAS PETRO INDEX

ConocoPhillips SHAPING TOMORROW

DIGITAL ENGINEERS

TEXAS OLIVES IN THE EAGLE FORD SHALE

LEADING THE WAY

HALLIBURTON’S

PAUL SHEPPARD THE FUTURE OF PEMEX AND MEXICO1

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CONTENTS

MARCH/APRIL 2014

18

FEATURE

14 The road to Damascus 16 At the top of her game

COVER STORY PAUL SHEPPARD

18 The Southeast Area vice president leads the way with a focus on best-inclass customer service at Halliburton, a cornerstone of global industry.

INDUSTRY

24 Not just local, but global 26 Driving the industry 28 The digital oilfield 30 Changes and challenges 34 Managing the load

POLICY

36 The end of a monopoly 40 A year of growth

BUSINESS

42 Win-win 48 Avoiding disaster 50 Specialty agriculture 52 Leaders open doors

LIFESTYLE

58 Connect to your team no technology required

60 A sense of ‘place’ 62 Among the best

NONPROFIT

66 Committed to community 68 In with the new

SCENE

PAUL SHEPPARD

72 An evening of dignitaries 76 A fiesta for the senses 78 Mexico’s energy reform

IN EVERY ISSUE 10 Advisory board 12 Publisher’s note

COVER AND TABLE OF CONTENTS PHOTOS BY: MICHAEL GIORDANO

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ADVISORY BOARD

OIL & GAS BUSINESS MAGAZINE

OMAR GARCIA - SENIOR ADVISOR

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

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.”

MARK PAYNE

Mark Payne is a partner at Burleson LLP, the largest law firm in the nation primarily focused on serving the oil and gas industry. As Payne is a former petroleum geologist and landman, his practice is dedicated to warranty issues, operating agreements, unitization and environmental, including water and air matters. He is on the board of the South Texas Wildcatters, and he is involved in the community with his participation in the San Antonio Chamber of Commerce, Energy and Water Sustainability Section.

JEFFREY A. WEBB

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

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CONTINUED ON PAGE 11 SHALE OIL & GAS BUSINESS MAGAZINE

MARCH/APRIL 2014

KYM BOLADO CEO / PUBLISHER

CO-PUBLISHER Jimmy Perkins

VICE PRESIDENT OF OPERATIONS Joyce Venema

CHIEF FINANCIAL OFFICER Deana Acosta

ART DIRECTOR Elisa Giordano

EXECUTIVE EDITOR Rachel Hughes

VPs OF SALES

Stephanie Hawley / Austin & Houston Liz Massey-Kimmel / Corpus Christi, McAllen, Laredo & Alice

ACCOUNT EXECUTIVES Teri Almendariz, Natalie Avey, Julie Conaway, Shanae Haertig Escamilla, Iliana Hinojosa, Gigi Hughes, Gloria Lerma-Bailey, Amanda Villarreal, Dina Ybanez

CONTRIBUTING WRITERS

Douglas S. Cain, Scott Courtney, Jim Crompton, Andy Cullen, Dr. Janet Cunningham, Michael Daniels, Melinda Eddleman, Eric Frieze, Omar Garcia, Dr. Dutch Holland, Juan Luna, Jimmy Perkins, Randy Pruett, Dawn Robinette, Dr. Thomas Tunstall, Joyce Venema

PHOTOGRAPHERS

Jonathan Alonzo, Dr. Janet Cunningham, Matt Garcia Photography, Michael Giordano, Ralph Goonan, Joe Herczeg, Ron Randolf, Dr. Thomas Tunstall

www.shalemagazinetexas.com For advertising information, please call 210.240.7188 or email kym@shalemagazinetexas.com. For editorial comments and suggestions, please call 830.377.8573 or email jimmy@shalemagazinetexas.com. TO REACH US: 5600 Broadway Ave. San Antonio, Texas 78209 Phone: 210.240.7188 Copyright © Shale Magazine. All rights reserved. Reproduction without the expressed written permission of the publisher is prohibited.


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PUBLISHER’S NOTE

into why that’s important, how it is happening and who the individuals are who do this work every day. The subject of our cover story, Paul Sheppard, Southeast Area vice president for Halliburton, is just one example. We are so thrilled to have Sheppard featured in this issue of SHALE, and I know you will enjoy reading the article, along with all of the others included. When I founded this magazine, I didn’t know what to expect. I knew it was needed, and I knew it was a good idea, but I had no way of knowing how people would react. I am so pleased at the overwhelming response to this publication, and it inspires all of us at SHALE to work diligently to improve with each issue. SHALE magazine has quickly become the most respected and professional business magazine in its class, and this is truly inspiring to me and to our team. We are very unique in that we have an active advisory board comprised of some of the most distinguished and well-respected individuals in the industry. Our newest board member is Thomas Tunstall, Ph.D., who serves as the research director for the Institute for Economic Development at the University of Texas at San Antonio. He is also the lead researcher of the annual Eagle Ford Shale Economic Impact Report. This report explains not just to the industry, but to the community, the significant positive impact that we all receive from the Eagle Ford Shale. We are extremely proud to welcome him on board and look forward to his contribution as we continue to raise awareness about energy topics to further help businesses, elected officials and the community have a better understanding of the industry. I would like to thank everyone who attended our cover party and made it such a huge success, and I would like to extend a special thanks to Commissioner Porter for his attendance. Be sure to check the Scene section in this issue for pictures from this exclusive event. If you are not attending our events, you are truly missing out on great opportunities to network with industry insiders and decision-makers. On a final note, I am extremely excited about several new plans on the horizon, but one that is extremely important to me is our LinkedIn group, “Oil and Gas Community Speaks” (www.linkedin.com/groups/Community-Speaks-Oil-GasBe-7459341). Please join us on LinkedIn and be part of the conversation. It is not an overstatement to say that the oil and gas industry is the most important industry we have. Energy is the product of your efforts, and without that product, no other industries could thrive. This is a message we all need to repeat. It’s time to take control of the message and bang the drum loudly. One final thank you to our advertisers, to our sponsors and to our readers for your continued support and patronage. We will always work hard to earn your business and your respect.

KYM BOLADO

CEO/Publisher of SHALE of South Texas Oil & Gas Business Magazine kym@shalemagazinetexas.com

SHALE OIL & GAS BUSINESS MAGAZINE MISSION STATEMENT:

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

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PHOTO BY SARAH BROOKE LYONS

AS AMERICA CONTINUES TO PRODUCE GREATER AMOUNTS OF OIL AND GAS FOR OUR NATION’S ENERGY NEEDS, WE AT SHALE MAGAZINE ARE EXCITED TO PROVIDE OUR READERS WITH AN INSIGHT


ADVISORY BOARD 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.

SCOTT COURTNEY

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

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. 

THOMAS TUNSTALL, PH.D.

Thomas Tunstall, Ph.D. is the research director for the Institute for Economic Development at The University of Texas at San Antonio. Previously he was a management consultant for SMEs, and the former Component 1 Team Leader for the Azerbaijan Competitiveness and Trade project. He has also served as an advisor relations executive at ACS, and was the founding co-chair for the Texas Chapter of the International Association of Outsourcing Professionals (IAOP). He has published a business book entitled “Outsourcing and Management” (Palgrave 2007) and was the Technical Editor for “Outsourcing for Dummies” (Wiley 2008). Dr. Tunstall has consulted in both the public and private sectors. In 2006, he taught Ph.D. candidates in a business and government seminar at the University of Texas at Dallas, and in 2005, he completed a long-term assignment in Afghanistan, where he was deputy chief of party for a Central Bank Modernization project.

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FEATUR E

THE ROAD TO DAMASCUS Meet DOUGLAS CAIN, the forward-looking CEO of Lake Truck Lines. BY: JIMMY PERKINS

W

hen Douglas Cain speaks of his father, it is with a reverence and respect that leaves no room for doubt as to who shaped and formed him as a child, as a man and as a businessman. It was Joe P. Cain who founded Lake Truck Lines Inc. in 1949 in Houston and who subsequently gave Doug his first job. June 1, 1966, was the day 13-year-old Doug was handed his coveralls and a broom and entrusted to the tutelage of the shop employees at Lake. Reverend Owens, Frank Davis, Isaiah Butler and Mr. Bass

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assigned Doug all the worst jobs to be done and all the education he would need to understand his father’s business at the shop level. As he progressed in age and experience, he learned the operation – in the shop, the office and the field, from crow’s nest to keel and stem to stern. Joe Cain sold his company in 1977, but he kept the name – and that’s all Doug Cain needed to carry on the family business. Walking on to the South Texas headquarters of Lake Truck Lines today, you can see those early lessons, and many more, in full maturation. Lake Truck


Lines is an oilfield transportation company. That fact implies all the dust, dirt, mud and grease one’s imagination can conjure. Imagine a fleet of trucks in and out of the oilfields of South Texas, and you can make certain assumptions about the condition of the equipment, the shop and the yard. In this case, however, those assumptions would be dreadfully wrong. Lake Truck Lines is located on 10 well-kept acres just south of San Antonio, and you’d be hard pressed to find a more organized and efficient yard and shop in this industry. The

changed his outlook on his own role. Instead of thinking of himself as the owner of the company, he realigned his understanding that he was the steward of the company’s assets. As he describes it, “That was my Damascus Road experience.” It was a true conversion. The recognition of this single fact prompted him to realize that he had a responsibility to be a better leader by empowering those around him. What followed was a long-term commitment to help all of his employees reach their maximum potential through a training program

ÒIF IT IS IMPORTANT, YOU WILL DO IT. IF IT IS NOT IMPORTANT, YOU WILL NOT DO IT. MAKE EVERYTHING IMPORTANT.Ó equipment is expertly maintained, and the diamond-shaped Lake logo stands tall on the trucks and tanks. This attention to the smallest of details makes for a strong foundation, and it is why Lake has been handling work for some of the biggest service companies such as Halliburton and Schlumberger for the past two decades. Another reason for Lake’s bedrock foundation is best described by Cain when he says, “We stay focused on the goal, not the ‘shiny penny’ syndrome. We haul cement and barite, and we provide the highest level of customer service possible.” This statement is specific to what Lake hauls, but not the extent of its business or its leader’s vision. Cain is a forward-looking CEO. Recognizing the need for better equipment, he founded Lake Manufacturing, a subsidiary in Torreón, Mexico, and today, all of Lake’s field bins, silos and trailers are manufactured at this plant. Not only does the location in Torreón offer a solution to improved equipment, it also positions Lake Truck Lines for the anticipated business in Mexico as a result of the energy reform laws recently passed. Furthermore, Cain has expanded his Texas operation into the Permian Basin and continues to grow in that area, as well as the Eagle Ford Shale, at a rapid pace. However, the biggest change in the company occurred three years ago and it was nothing short of a tectonic shift in philosophy. Cain

called Lake University (see “Leaders Open Doors” on page 50). Lake Truck Lines is committed to continuing education for its employees, both internally and externally. Currently, the company is covering the cost for two of its employees to attend UTSA. According to Cain, “We are a 64-year-old company, and we are just learning how to learn. I am proudest when I look at my employees and see them working so hard to be better. And I’m right there with them.” When you spend time with Cain, you can’t help but walk away feeling that anything is possible. He has a positive attitude that inspires your imagination, but he also makes you understand that ideas are only as good as the actions that follow. To this particular point, he has a simple recipe for success: “If it is important, you will do it. If it is not important, you will not do it. Make everything important.” That’s a lesson he no doubt learned as a teenager operating a broom and as a CEO charting the way forward for his company.

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For more information, visit www.laketrucklines. com or email jimmy@ shalemagazinetexas.com.

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FEATUR E

AT THE TOP OF HER GAME As a wife, a mom and the president and CEO of the CE Group, JANET HOLLIDAY serves as solid proof that you can have it all. BY: JOYCE VENEMA

JANET HOLLIDAY is one of the most fascinating entrepreneurs you will ever meet. She has a wealth of knowledge, a knack for business and a huge passion for her work. As president and CEO of the CE Group, she is at the top of her game and she continues to provide her team with tremendous leadership. Holliday grew up in the Texas oil town of Beaumont, just north of Houston, with oil refineries surrounding her. Her father, himself an entrepreneur, taught her the meaning of “a good hard day’s work.” Holliday used this guiding principle throughout her education, earning an undergraduate degree in psychology with a sequence in social work and her master’s in social work from the University of Texas at Austin. Another important value instilled in her by her father was to always give back to your community – the “give what you get” philosophy. This helped lead her to the nonprofit sector early in her career, assisting Eunice Kennedy Shriver in bringing the Special Olympics to Texas. Part of her job requirement was to seek corporate donations for various events. “In the nonprofit sector,” Holliday says, “you had to be very resourceful.” This led her to a major beverage company for assistance. On that day, Holliday’s life and career path changed directions forever; sitting across from her at this meeting was her future husband, who was in charge of public relations. She quickly became fond of her future husband’s work, giving her the “light bulb moment”

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she needed to make a career change. In 1990, Holliday and founding partner, Lainey Berkus, started the CE Group. According to Holliday, the CE Group is a “marriage of logistics, operations and creativity” that is built on relationships and resources. They have six core areas of expertise: 1. Event and production management 2. National sports marketing 3. Destination management 4. Goods collective 5. Venue management 6. Public relations and marketing If you’ve visited the San Antonio area, you have seen the elite work of the CE Group at such events as Síclovía, Luminaria, the San Antonio Cocktail Conference, the Rock ‘n’ Roll Marathon and the grand opening of the Briscoe Museum, just to name a few. While Holliday is a huge reason for the company’s success, she also says it’s because she has “the best team” anybody could ask for. She makes sure that in her company, the employees and their families come first. For instance, she ensures that parents who work for the CE Group don’t miss the important things in their family’s lives like their child’s school play or graduation, which sets them aside from other corporations. They also have a large internship program, with more than 103 interns since 2008, teaching college students “the CE way of doing things,” as Holliday says.

HOLLIDAY BELIEVES YOU SHOULD PLAY YOUR HAND EVERY DAY AND ENJOY IT. The CE Group opened their Austin branch 10 years ago, and they continue to work throughout Texas, as well the United States. They show no signs of slowing down, and neither does their fearless leader. Holliday has started teaching people to do what she has done by speaking at various events, and she is even in the middle of her first book. She believes you should “play your hand every day and enjoy it.” Holliday has worked very hard to be a great mom, wife and

businesswoman, and she remains committed to her community. She believes wholeheartedly that everyone can have it all, just like she does. When asked about her plans for the future and retirement, Holliday gives a big Texas smile and says, “When I get to produce the Academy Awards, then I’ll retire.”

For more information on the CE Group, visit www.cegroupinc.net.


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COVER STORY

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Halliburtonテ不 Southeast Area Vice President PAUL SHEPPARD: leading the way at one of Americaテ不 greatest success stories BY: JIMMY PERKINS

ツサ

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PHOTO COURTESY OF HALLIBURTON

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I

n 1919, from the humblest of beginnings, Erle P. Halliburton built an empire out of grit and ingenuity that now stands as one of the most recognizable and successful companies in the world. With a borrowed wagon, a team of mules, and a pump, he built a wooden mixing box and started an oil well cementing business. Early on he and his wife Vida Tabor Halliburton moved to Burkburnett, TX where he struggled to convince that region’s drillers that his oil well cementing technique was a valuable addition to their process. With little or no money to operate their new business, they worked relentlessly to gain a foothold. Legend has it that at one point they even pawned Vida’s wedding ring to meet payroll. The first big break came when Halliburton was hired by the Skelly Oil Company to control a wild well in south-central Oklahoma. The year was 1920, Erle and Vida crossed the Red River, and the Halliburton Oil Well Cementing Company quickly became the industry leader just as it remains to this day. Fast‐forward 95 years to 2014 and Halliburton remains a cornerstone of global industry. This has been accomplished thanks to generations of talented and committed employees. Paul Sheppard, Vice President of Southeast Area, is one such executive. Originally from San Antonio, Paul Sheppard has spent almost 34 years in the oil and gas industry. He earned his Bachelor of Science degree from Texas Tech University graduating in 1980 just in time to jump into the then current boom. Opportunities abounded and Sheppard began his career working in Marshall, TX. Shortly after, he moved to Shreveport, LA and spent nine years in technical sales surviving the bust of the mid-1980s. Navigating one’s career in the oil and gas industry during a bust requires a determination that would no doubt make Halliburton’s founder proud. Sheppard’s approach to survival during such times is at once poignant and practical and a philosophy he still adheres to today. “During good times and bad, you remain integral to your organization through hard work, generating results and above all, taking care of the customer,” he says. “You must always do what is right, trust your gut instinct and do what you say you are going to do. Thank the people that work in the field each day and make it happen. Without their efforts in satisfying the customer each and every day, there is no Halliburton. There are times when consolidation is inevitable, but key personnel that accomplish the above have to be kept in place.” His career continued, and as is often required in the oil and gas business, it demanded mobility. After Shreveport, the Sheppards made stops in Houston and Dallas. In 1993 they made a move to Midland, where he, and his wife of 29 years Belinda, raised their two children, Maegan and Tyler. In 2007, an opportunity presented itself and the Sheppards ultimately made the move back to Houston. Sheppard joined Halliburton in 2012 as Southeast Area Vice President where he leads a team of 4,000-plus employees who collectively handle work in Texas, Louisiana, Arkansas and Mississippi. The key ingredient to the team’s success is consistently trying to provide best-in-class customer service. According to Sheppard the formula is clear and easy to understand. “First and foremost it’s about working safely while protecting the environment. We have made tremendous

XXX/BIGSTOCK.COM

ÒHALLIBURTON IS A COMPANY THAT TAKES CARE OF ITS PEOPLE AND ITS CUSTOMERS.Ó

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then train that individual. “Halliburton is a company that takes care of its people and its customers. This is a great industry to be a part of no matter what your role. It is important work for our country and for our future. I’m proud to play my role, and I know all of the people I work with share the same pride.” Horizontal drilling has been a game changer for our nation’s energy needs. The work being done across the country continues to drive our economy and create great jobs. In no other place is that more evident than in Texas. The overall industry statistics are staggering. One example in Halliburton’s case is the new facility in San Antonio that began operating in 2013 and quickly employed over 700 workers. In less than a year, that facility now employs in excess of 1,300 people. This statistic alone shows the incredible impact of the activity

in the Eagle Ford Shale play of South Texas and Halliburton’s commitment to serving its customers’ needs. Beyond serving its customers’ needs, Halliburton also works to serve the communities where it operates. Halliburton has been active in South Texas for more than 80 years and has actively supported charitable organizations with employee and company contributions, as well as from the Halliburton Foundation. The company received the inaugural STEER (South Texas Energy & Economic Roundtable) Eagle Ford Excellence Award for Community and Social Investment last year recognizing its efforts. Many industries require a tremendous amount of personal sacrifice from its employees, but the oil and gas industry is likely one of the most demanding. It is a 24-hour-a-day business and is demanding

PHOTO COURTESY OF HALLIBURTON

strides as an industry with our health, safety, and environment culture, and Halliburton leads the way.” Sheppard continues, “Our goal is to make better wells for our customers, reducing their cost per barrel of oil equivalent. We want to help our customers drill their wells as efficiently as possible in the sweet spot of their pay followed by the optimum completion to provide the highest recovery rate of oil and gas at a premium rate of return for the life cycle of the well.” These are not just words to him. He clearly takes great pride in the progress and accomplishments he and his team at Halliburton have achieved. Of course all of this is backed up and supported by a company that encourages its leadership to spend time in the field. As to the team itself, the equation there is straightforward as well. According to Sheppard, you hire the right attitude


PHOTOS COURTESY OF HALLIBURTON

not only for the employee, but also for their family. When I asked Paul Sheppard about the primary key to his success he did not hesitate in his response. “The key to my personal success is having a partner in my wife Belinda who has stood by me every step of the way.” Leading a team of over 4,000 employees in a four‐state region is a major responsibility. Yet maintaining a balanced lifestyle is an important aspect for success. In Sheppard’s spare time he enjoys hunting, college football, and golf. In fact golf is a passion he and Belinda share, but neither of them is the best golfer in the family. That title goes to son Tyler who is pursuing a career as a professional golfer. Maegan is following in her dad’s footsteps pursuing a career in the oil and gas industry as a technical writer for an oil service company. From a borrowed wagon and a team of mules in 1919, to today employing in excess of 75,000 people representing 140 different nationalities and operating in approximately 80 countries, to say Halliburton is an American success story is a staggering understatement. And it’s a fitting tribute that an executive at Halliburton credits his spouse for her vital contributions to his career given the role that Vida Tabor Halliburton, and her wedding band, played in the early days of this great American institution. For more information, visit www.halliburton.com. Note: This article has been reviewed by Halliburton and edited according to the company’s policy and style.

ÒOUR GOAL IS TO MAKE BETTER WELLS FOR OUR CUSTOMERS, REDUCING THEIR COST PER BARREL OF OIL EQUIVALENT.Ó SHALE OIL & GAS BUSINESS MAGAZINE

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INDUST RY

NOT JUST LOCAL, BUT GLOBAL

DEL MAR COLLEGE and its corporate services offer contract training for the workforce that meets current and future industry demands. BY: MELINDA EDDLEMAN / PHOTOGRAPHY: RALPH GOONAN

Texas Workforce Commission’s Hope Andrade, commissioner representing employers (left); TPCO America Corporation Director of Administration J.J. Johnston and CEO and Chief Site Director Renzhao Bai; Del Mar College Board of Regents members Susan Hutchinson, Jim Boggs, Todd Walter, Sandra Messbarger and Elva Estrada; and Del Mar College President Dr. Mark Escamilla pose with the $117,223 Texas Workforce Commission Skills Development Fund check supporting DMC training for the corporation’s workforce.

A HIGHER EDUCATION

delegation’s trip to China led by Del Mar College (DMC) President Dr. Mark Escamilla last January started the process to determine customized training needed for Tianjin Pipe (Group) Corporation (TPCO) America’s seamless steel pipe manufacturing plant that’s under construction near Gregory, Texas. Representatives toured the TPCO facility to get a firsthand look at their operations. They researched the most efficient means to recruit and train personnel while taking advantage of the Costal Bend’s existing colleges and training centers. Working with TPCO America

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Corporation is an example of how DMC interfaces with new and emerging industries coming to the Coastal Bend to ensure workforce development addresses current and future industry needs. As more industries set up shop in the South Texas Coastal Bend, training area residents for the jobs those companies create is a priority for the college. “The college is looking for ways to expand uses of new technology for today’s and tomorrow’s workforce,” said Lenora Keas, DMC executive director of strategic planning and workforce initiatives. “We’re here to ensure our economy has the people, resources and technology that positions not only

Del Mar, but also the Coastal Bend as global competitors. “Del Mar College is addressing our area’s workforce in two ways. First, the college is working with existing companies by providing customized training for skills currently needed by Coastal Bend industries such as Sherwin Alumina Company. Second, we’re anticipating future needs by developing training and exploring technology related to jobs coming to our area as new companies locate here, including those from the other side of the globe.” Keas oversees continuing education at DMC, which includes corporate services, an area that provides customized training for large and small businesses connected to industry. In corporate services, they provide customized curriculum development for specific skills training, private classes, onsite instruction, facilitation services, grant procurement and training management. Last year, TPCO America Corporation approached the college to train their first 12 employees as part of establishing their initial presence. In November, DMC and TPCO officials announced a $117,223 Texas Workforce Skills Development Fund (a job-training grant) to train another 124 employees throughout the year. The funds cover customized training of 74 new workers in pipe manufacturing. Funds will enable other employees to acquire the specific skills needed for plant operations, including pipe loaders, operators, technicians and managers. Overall, training includes metallurgy, machining, workplace safety, logistics and quality. “Collaboration with the Texas Workforce Commission and Del


DEL MAR COLLEGE HAS LONG BEEN THE VENUE OF CHOICE FOR WORKFORCE PREPARATION.

Del Mar College President Dr. Mark Escamilla (right) tries out the welding technology program’s high-tech simulator as student Michael Perea assists during the grant announcement made by the Texas Workforce Commission, TPCO America Corporation and Del Mar College. Welders are among the key employees the corporation needs.

Mar provides a great example of how new workforce programs directly influence the attraction and expansion of major economic development projects,” said J.J. Johnston, director of administration at TPCO America Corporation, about the grant. TPCO America Corporation’s facility will annually produce 500,000 metric tons of seamless steel pipe, primarily for the energy industry. Officials anticipate their Coastal Bend operational workforce will reach 600 to 800 fulltime employees. The corporation intends to invest approximately $1 billion in their Gregory location, making this the single largest investment in the United States by a Chinese-backed manufacturing operation. “TPCO America Corporation is changing the Coastal Bend’s economy and building a solid future for our area through investment in workforce training with Del Mar College and other partners,” Escamilla said. “The Texas Workforce Commission’s support for this training not only positioned Del Mar as a regional resource, but also as a global training source for other international companies locating in South Texas.” Keas added, “We’re also engaged in research and the development of program curricula for high school- and college-level students

Del Mar College Nondestructive Testing students demonstrate techniques used to check for weaknesses or cracks in metal.

that address the growth in jobs and industry in South Texas.” The college has long been the venue of choice for workforce preparation, training about 6,000 students in occupational and short-term training programs every year. And DMC business, occupational and technical graduates earn a median income of $57,221 the first year after they graduate – $6,000 more than the state average – as confirmed by Texas officials. “Del Mar College is known for our flexibility to meet the needs of our industry partners and provide our students with the means to earn livable wages,” Escamilla said. “We’re ready to

provide customized training targeting crucial skills industries need.” Melinda Eddleman is the associate director of media relations at Del Mar College. She oversees news services and assists with marketing efforts in the college relations office. For information about how Del Mar College’s corporate services can assist your business, contact Mary Afuso at 361-698-2407 or mafuso@ delmar.edu. SHALE OIL & GAS BUSINESS MAGAZINE

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DRIVING THE INDUSTRY

SHALE PLAY

Considering the prices of oil and natural gas and the overall health of the industry in Texas BY: SCOTT COURTNEY THIS EDITION OF SHALE PLAY will focus on the price of oil and gas, what drives those numbers, how they drive the industry and what to expect in 2014. In addition, we will discuss the Texas Petro Index (TPI) and how it measures the health of the oil and gas industry in Texas. As of the writing of this article (Feb. 20, 2014), West Texas Intermediate (WTI) crude was trading at $102.72/bbl, and natural gas was trading at $6.17Mcf. Prices like these will continue to drive the industry forward. Will they remain strong? Could they be better? Worse? In order to understand these numbers, we must understand the marketplace, the temporal nature of prices and how these numbers affect producers and consumers. Let’s start with crude prices and the marketplace. There are two basic crude oil commodities that act as barometers for the industry: WTI and Brent. WTI is crude generated in the United States, while Brent is produced in the North Sea. WTI and Brent spot prices are historical benchmarks that have been used to gauge worldwide production and consumption (supply and demand). Spot prices of these two benchmarks generally reflect the direction prices are heading, whether up, down or stable, and are used by many industry executives, analysts and financial institutions to make decisions. Midstream infrastructures such as storage, pipelines, terminals and downstream refineries and chemical plants have a significant impact on crude oil pricing. Prior to the opening of the Keystone XL pipeline from Cushing, Okla., storage limitations created a bottleneck limiting supply to markets and, thus, demand for WTI. Most Gulf Coast refineries were built to handle heavy, sour crude from Mexico and Venezuela. Light, sweet crude from the Bakken in North Dakota and Eagle Ford are not easily processed in the majority of the Gulf Coast refineries, again limiting market access and keeping prices for WTI lower than Brent crude, which traditionally trades at a premium to WTI. Brent crude traded between $5/bbl to $12/ bbl higher than WTI in 2013 as a result of the aforementioned market limitations. With oil trading near $100/bbl, that amounts to a 5 to 12 percent discount price for WTI crude. In the United States, there is a ban on oil exports with few exceptions. Lifting the ban could go a long

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way toward removing the WTI discount and improving margins for shale players that are struggling to keep production growing. There is a limit to the current drive for efficiency, and at some point, capital may begin to look at other markets. Brent crude does not suffer from these infrastructure and artificial limitations, and thus, trades at a premium, delivering higher margins for a similar commodity. What does all this mean for WTI prices in 2014? The U.S. Energy Information Administration (EIA) predicts downward pressure on world oil prices due to a shift from a shortage of 730,000 barrels per day (bpd) in the first quarter of 2014 to a surplus of 320,000 bpd by the fourth quarter of 2014. Shale oil production in the United States reduced imports by 35 percent in 2013. This has driven up the supply of Brent to international markets that do not have a corresponding increase in demand. Industry analysts predict the average WTI price in 2014 at $91.50/bbl, and Brent crude at $104.29/bbl (World Oil Forecast Breakfast, Jan. 31, 2014). Natural gas is a whole other story. U.S. natural gas saw a 35 percent increase in 2013. The average Henry Hub spot price was $4.24/ Mcf. The “polar vortex” and several successive winter storms in January and February 2014 pushed demand for natural gas with prices reaching more than $6/Mcf. These were temporary surges, and overall demand is expected to stabilize over the course of 2014. The World Oil forecast for U.S. natural gas in 2014 is $3.95/ Mcf. Natural gas prices can be as volatile as the gas itself. Weather is a significant factor, and it can wreak havoc with the marketplace. Cold winters and hot summers can drive demand and push prices above conventional wisdom marks. This price is well below natural gas prices in Europe ($9 to $10/Mcf) and Asia ($13 to $18/Mcf). The glut of natural gas in the United States coming from the shale plays is driving down prices at home. Currently, the United States imports more natural gas than it exports. The Obama Administration is sitting on several export permits that would help free up the marketplace and allow U.S. operators the opportunity to realize the true value of their product. What does all this mean for U.S. and Texas

oil and gas producers? With crude oil trading above $90/bbl, operating margins are still good in the Bakken, Permian Basin and Eagle Ford. Natural gas trading below $4/Mcf tightens things up a good bit. Only operators and plays with the lowest find and production costs like the Marcellus Shale can expect strong activity. Activity in the gas window of the Eagle Ford is generally limited to just a few producers who operate lean and mean like Lewis Energy and Pioneer Natural Resources. Commodity prices are only one measure of the health of the industry. In order to get a more accurate picture, the Texas Alliance of Energy Producers (TAEP) and economist Karl Ingham have developed the TPI. The TPI is based on a comprehensive group of upstream indicators, including oil production, price, employment, rig count, drilling permits and other economic measures. According to TAEP President Alex Mills, the TPI for 2013 set an all-time record high. The record continues to grow and has set new marks in the past four consecutive months. Based on the TPI, the health of the industry is very strong and it will continue to grow at a modest to record pace. Understanding commodity prices and industry health is vital for producers and consumers. Knowing the issues that control supply and effect demand allows everyone the opportunity to make good business decisions. Realizing public policy and regulatory restrictions can have a dramatic affect on price should motivate the public to get involved and make your voices heard. That is all for Shale Play! We hope we you find this information useful and informative. Please let us know your thoughts and comments. Shale Play will continue to look into issues that drive the play and keep our economy growing. For more information, contact Scott Courtney, P.G., at scott@shalemagazinetexas.com.


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Reliant is a registered servicemark of Reliant Energy Retail Holdings, LLC, a wholly owned subsidiary of NRG Energy, Inc. The plus signs and plus clusters are servicemarks of NRG Energy, Inc. © 2014 NRG Energy, Inc. All rights reserved. SHALE OIL & GAS BUSINESS MAGAZINE

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THE DIGITAL OILFIELD Fieldbook ERP: revolutionizing the way businesses function in the oil and gas industry SPECIAL TO SHALE

SYSTEMS LIKE FIELDBOOK ERP ALLOW FOR FULL CONTROL OF OPERATIONS. businesses,” Flinn said. “With more and more technology available to improve oilfield operations, the appropriate technology must be available to support the growth. Fieldbook ERP is a Web-driven management software that allows oilfield companies to more efficiently manage sales, operations and accounting. By using Fieldbook ERP, businesses can eliminate costly errors and evolve to reach maximum functionality.” Technology in the oilfield is constantly evolving. Conservative work order practices are no longer an option if a business is to succeed in the competitive oilfield industry. Fieldbook ERP

has provided a way to revolutionize the way businesses function in the oilfield. What began as a small group of engineers from Weatherford, Okla., has grown into a product with cutting-edge technology to ensure businesses’ goals are achieved. Systems like Fieldbook ERP allow for full control of operations. From an operations and productivity standpoint, this is a game-changer.

For additional information about this dynamic software, please visit www.fieldbookerp.com.

Fieldbook ERP is enterprise resource planning software for the oilfield. This cutting-edge solution was developed in Oklahoma to help companies efficiently manage operations, sales, accounting and business analytics from a single user-friendly platform. With a customer service emphasis, Fieldbook provides a cost-effective solution to streamline oilfield operations and make more efficient and productive use of people and resources in day-to-day business. 28

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MONICAODO X/BIGSTOCK.COM

A RECENT REPORT from the International Energy Agency predicted the United States could overtake Saudi Arabia as the world’s biggest oil producer by 2020. As the oil and gas industry continues to expand, the need to harness technology to allow businesses to grow becomes increasingly necessary. “The issue lies in the fact that many men and women who have careers in the oil and gas industry are comfortable with more conservative business operations practices,” said Sean Flinn, Fieldbook ERP president. “The rate at which this industry is changing is exciting, yet it requires on-boarding more technological business practices.” A major barrier to overcome in the oilfield is efficient communication. With so many integral steps in a work process (many of which happen at multiple locations), communication can become inconsistent and lost. Processes must be streamlined, unified and properly tracked to enhance productivity and accuracy. E&P Magazine writes that the “digital oilfield is about unifying disparate oilfield processes into a digestible data stream. But like many other heavy industries, almost all of which are now under the influence of the digitization trend, the oil and gas sector’s fundamental conservatism its preference for proven and familiar strategies over disruptive innovations - has hindered the pace at which these technologies are adopted.” “The digitization of the oilfield has opened an array of doors for companies to better their


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INDUS T RY

CHANGES AND CHALLENGES An introduction to the emerging world of the DIGITAL ENGINEER

EVERYTHINGPOSSIBLE/BIGSTOCK.COM

BY: JIM CROMPTON AND DR. DUTCH HOLLAND

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T

he production of hydrocarbons from shale and other unconventional reservoirs brings new challenges to the oil and gas industry. The changing demographics of the industry will also bring new challenges. This article focuses on that important organizational capability issue. While the “big crew change” in the industry is leading to the departure of many experienced staff, new engineers and earth scientists are entering the workforce with high digital literacy in addition to their qualifications in traditional industry disciplines. More “intellectual property” for petro-technical professionals now comes in the form of software, and aspects of the digital oilfield are becoming a reality. This article takes a look at these emerging trends and discusses the opportunities and consequences of developing future workforce competencies for T-shaped or multi-discipline expertise with a deep literacy in digital and information technologies. Much of the talk about the “big crew change” focuses on companies from North America and Western Europe. But this challenge is a global one, not just for the energy industry, but for many others. Let’s use Jim’s career as an example of the kind of impact these changes may bring. Jim started

become digital almost 40 years ago. Seismic data recording – and to a lesser extent, the discipline of petrophysics – took full advantage of the advances in computer science (especially digital signal processing theory) and sensors (called geophones). Everyone is excited about “big data” these days; however, geophysicists have always had to deal with big data. The industry began to record seismic data with more geophones and more channels, so they needed bigger computers. The industry went from 2-D to 3-D recording, so the data volumes grew and they needed bigger computers. Data processing became more sophisticated, so they needed bigger computers. Management and partners wanted the answer faster, so they needed bigger computers. Specialization took over, and some geophysicists started writing their own programs. Others specialized in data processing or interpretation. But all of this happened with almost no interaction with the corporate IT department. This was the birth of technical computing, and the earth science group has never really let go of their relationship with and close dependency on technical computing. If you came from a refining or plant environment, the process control or field automation folks were just as important to the chemical and process engineering community. This was digital technology, but it wasn’t the kind of IT that you asked the corporate IT department to do. Let’s fast-forward to today and the trends of larger volumes of data to be processed, more complex ways of processing the data for more specific results and larger models for more detailed simulations. A recent article talked about the new wide aperture recording techniques that can utilize up to 80,000 channels. A rough version of the final seismic results can now be available almost before the boat docks. Now we even entertain the idea of bringing in real-time data (or to be accurate, near real-time data) and analysis that goes beyond reports and trends to advanced analytics and the capability to compare the measured “field truth” with the model-forecasted predicted value. We can get data from the drill bit while the well is being drilled with techniques like measurement while drilling (MWD), logging while drilling (LWD) and even seismic while drilling (SWD), which provides “look ahead of the bit” potential. This gives you the “manage by exception” opportunity and the ability to share all of this insight anywhere you want through your collaboration platform. We have reached the convergence of emerg-

GEOPHYSICISTS WERE THE FIRST ÒDIGITAL ENGINEERS.Ó with Chevron in 1976 as an entry-level geophysicist in Denver, Colo., where he was trained as an “analog” engineer. In his office, which he shared with another young geophysicist, he had a large drafting table and his own set of colored pencils. The interpretation method was very manual. He interpreted paper seismic sections with colored pencils and transferred the horizon times to a paper base map. Then the fun “interpreting” happened, which consisted of making a contour map, hopefully honoring the available seismic and well control data. To make sure his interpretation was consistent at seismic line intersections, he actually folded one paper plot and matched it to the other line at the right intersection point. The overall data control was sparse, and a lot of imagination was required. But geophysicists became the first “digital engineers.” It was both seismic and well logging that enabled the geophysical community to

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Site Development

excavation

UtilitieS

paving ing IT and emerging engineering analytics. It is now hard to look at a technical team and see who has the computer science degree and who has the petroleum engineering or chemical engineering degree. Some have both. A digital native is a young person who was born after the general introduction of digital technology, and through interacting with digital technology from an early age, has a greater understanding of its concepts. Other sources identify a digital native as a person who understands the value of digital technology and uses this to seek out opportunities for implementing it with a view to make an impact. When we started our careers, we didn’t have much IT at home and we were pretty amazed with the tools the technology department gave us to use. But nowadays, digital natives have spent their entire lives surrounded by commercial IT services. What can these digital natives do at home that they can’t do when they go to work? While we patiently waited for the IT department to give us the next applications and train us how to use them, this generation impatiently demands the latest tools from IT, which they already have at home, and questions why it is taking so long. We have now entered the world of the T-shaped knowledge worker. These individuals are both deep in their professional domain (say petroleum engineering) and have a broad understanding of digital technologies. Much of that experience with digital literacy comes from the use of their smart phone; their interaction with peers on social media (Facebook, LinkedIn, Yammer); and their ability to use the Internet to find information (Google search, YouTube), to use retail services (Amazon, eBay) and to stay in touch with their friends, many of whom they have never met outside of this virtual experience (Twitter). It is a different world out there now. But how is this impacting the oil and gas business? Here are a few observations: » The trend of field automation, real-time systems and earth and reservoir modeling suggests that the digital oilfield is becoming a reality. » New engineers and earth scientists are entering the workforce with high digital literacy (from lifelong experiences with consumer IT and with some training in programming). » Most of the “innovation” comes from end users or consultants, and most of the execution and support details are left to central IT. » But significant gaps continue to surface (lack of reuse, fragile integration, poor data foundation, lack of end-to-end system design). When we started our “digital” careers, we were not supported by the IT function, but by a specialist technology community. For someone starting their career in the industry today, IT is more important than ever, but they may be getting more help from their circle of friends than from any formal IT organization. The reality today is that the digital oilfield is upon us and the future belongs to the digital engineer.

THE DIGITAL OILFIELD IS BECOMING A REALITY.

713-838-7300 • www.slackandco.com houston • Eagle ford • Permian basin

OIL & GAS BUSINESS MAGAZINE

// MARATHON OIL’S JEFF SCHWARZ: WILDCATTER OF THE YEAR //

SHALE J A N U A R Y. F E B R U A R Y 2 0 1 4

SETTING THE STANDARD

FIRST ANNUAL STEER EAGLE FORD EXCELLENCE AWARDS

OIL & GAS BUSINESS MAGAZINE

PEMEX:

BIG CHANGES IN

MEXICO

SEAFOOD, SUSHI AND SURFING

BRAD LOMAX

LEADER OF THE PACK

TEXAS RAILROAD COMMISSIONER

DAVID PORTER ON THE MOVE MAYOR NELDA MARTINEZ AND THE CITY OF CORPUS CHRISTI

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FOR ADVERTISING INFORMATION PLEASE CONTACT

KYM BOLADO

210.240.7188 kym@shalemagazinetexas.com

SHALE OIL & GAS BUSINESS MAGAZINE

For a more complete picture of the digital oilfield, look for a copy of “The Future Belongs to the Digital Engineer,” written by Jim Crompton, M.S. GEOPH, MBA, and Dutch Holland, Ph.D., on Amazon.com. You may also contact the authors at dutch@hollandmanagementcoaching. com and jimc044@aol.com.


Serving the State of Texas and Beyond

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Call us for your next project!

361.576.0003

www.laugercompaniesinc.com

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CNC MACHINING

MANAGING THE LOAD

BRADLEYS´ INC.: serving midstream and downstream operators and producers in South Texas for 84 years BY: ERIC FRIEZE / PHOTOGRAPHY: RON RANDOLF

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LOCATED JUST 60 MILES from the Eagle Ford Shale in Gregory, Texas, a world-class leader is providing shale oil producers with load testing, engineering and CNC manufacturing services to keep their electric motors, pumps and generators running at optimum performance. Bradleys’ Inc., South Texas’ largest electric motor repair, rewinding and load testing facility, has served midstream and downstream operators and producers for 84 years. The company’s 110,000-square-foot facility includes 30,000 square feet of climate-controlled motor and equipment storage and offers field services, emergency response and new motor sales, as well. Bradleys’ specializes in large motor repair and load testing. The nationwide frenzy caused by shale oil production fields created lead times for newly manufactured motors from 16 weeks to 18 months. Many companies cannot wait 16 weeks for a critical motor. To meet the demand for redesigned, remanufactured and repurposed historical motors, Bradleys’ ramped up its load testing, engineering and CNC manufacturing capabilities to meet the needs of the oil and gas industry. The state-of-the-art Hi-Power Load Testing System at Bradleys’ allows the company to test performance of both horizontal and vertical motors, with vertical motors tested in the upright or vertical configuration. The repair, remanufacturing and repurposing of historical motors and drilling rigs can be challenging because the drawings and replacement parts are often not available. The Bradleys’ engineering staff designs the replacement or modernized parts using design engineering/analysis software and CAM software. If the part is available, the engineers can reverse-engineer the part using their large work envelope CMM, which is capable of accuracy down to 2.7 micrometers. The large component manufacturing capabilities at Bradleys’ have led the company to manufacture specialty shafting and gearbox housing for diesel-driven oil rigs and a plethora of small production run repair components for existing rigs in need of repair or modernization. The large dynamic balancing capabilities up to 25,000 pounds have proven beneficial to the reliability of sand line drum assemblies and many other applications. Bradleys’ recently added two vertical (top drive) motor load test stands to test motors in the upright configuration to their existing load testing facility. Direct load testing capabilities for horizontal and top drive motors currently range from 25 HP to 7,500 HP, depending on the configuration and application. The firm’s nonloaded testing capabilities reach 35,000 HP. This large and unique testing capability, coupled with experienced, knowledgeable and degreed engineering staff, has led several shale OEM manufacturers to seek Bradleys’ expertise and assistance with new product development, modification of existing product lines and the verification of fielded products. And the dedication to exceeding customer expectations for quality work at Bradleys’ has built the company into an electro-mechanical testing facility with few rivals. Bradleys’ recently provided the testing and validation of a new variable frequency drive technology and motor design modification of an OEM’s existing top drive drilling structure design. This testing allowed the OEM to validate that the internal design changes to their existing motor worked. “The data analyzed during the load test provided the solid proven efficiency curves for the OEM’s equipment while under load,” said Jim Williams, president. “These efficiency curves are increasingly important with the rising costs of energy.” By understanding the operating power characteristics of their equipment during use, the OEM can design improved efficiencies of drive and motor systems. It is also used to provide baseline


VIBRATION ANALYSIS ON SMALL MOTOR

BRADLEYS´ LOAD TESTING MISSION CONTROL ROOM

BRADLEYSÔ INC. SPECIALIZES IN LARGE MOTOR REPAIR AND LOAD TESTING. operating parameters to the end users that will reduce their operating power consumption, increase their equipment reliability and reduce their overall equipment operating costs. Additionally, the recent shift toward reliability-based preventive maintenance practices has led many companies to test their new or repurposed critical application electric motor systems to validate their performance before they go into service or are placed in climate-controlled storage. As Bradleys’ is a company historically focused on electric motor repair rewinds and modifications alongside new motor sales and field installations, the current shale impact demands that Bradleys’ build upon its solid base of experience to offer customers engineering services, product development, manufacturing, testing, reliability, motor and drive installation and field services that can only come from decades of experience and sound business practices.

LARGE MOTOR LOAD TESTING

QUALITY CONTROL IN CNC MACHINING

For more information on Bradleys’ Inc., visit www.bradleysmotors.com.

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PO LICY

THE END OF A MONOPOLY

As we bid farewell to 75 YEARS OF GOVERNMENT CONTROL IN MEXICO, we welcome the opening of a truly historic opportunity. BY: JUAN LUNA

U.S. COMPANIES POISED TO MOVE INTO MEXICAN ENERGY INDUSTRY ¡ Mexico’s share of the gulf could hold 29 billion barrels of oil.

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¡ In a given year, Pemex spends $30 to $50 billion on equipment and services for capital and operating expenses. ¡ Pemex has dramatically increased its international procurement activities in the past two years, and with the energy reform, it will continue growing. ¡ Pemex relies on international suppliers for roughly half of its purchases, and approximately 70 percent of these suppliers are based in the United States.

LIGHTMOON/BIGSTOCK.COM

M

exico ended 75 years of government control of its vast oil reserves after congress approved on Dec. 18 – the nation’s most significant economic reform since the North American Free Trade Agreement.


rels in proven reserves and up to 115 billion barrels in prospective reserves, about half of which are in deep water or shale oil and gas. ¡ Pemex estimates it needs more than $60 billion a year in investment to explore reserves. It currently gets about $24 billion. ¡ There is potential to attract additional investments in shale and ultra-deep waters so that those resources can be exploited. ¡ Mexico is the world’s ninthlargest oil producer, according to the U.S. Energy Information Administration, and it possesses the biggest unexplored crude area after the Arctic Circle. ¡ Mexico’s oil production has fallen 25 percent to 2.5 million barrels per day from a high of 3.3 million in 2004. Should Mexican output reach four million barrels daily by 2025, Mexico could surpass Canada to become the world’s fifth-largest producer, given current production levels. ¡ Natural gas production would almost double to as much as 10.4 billion cubic feet by 2025 from its current output of 5.7 billion cubic feet.

¡ From a value standpoint, the part where there’s the most upside potential is exploration and production (E&P). That’s where the vast untapped reserves are. There will be tens of billions of dollars in investment in the next five years.

tional prohibition on granting concessions to private parties for the wheeling and distribution of electricity, as well as for planning and operational control of the National Electricity System (SEN). Therefore, such activities remain exclusive areas for the Mexican state.

3. With regard to “upstream” activities, the state (as the hydrocarbons owner) may perform such activities through allocations with productive state companies, agreements with productive state companies or agreements with private companies.

4. A wholesale power market will be created, in which public and private power generation companies will trade their production.

4. Investment by private parties in E&P activities is allowed. 5. The contractual regime for upstream activities will include, among others, license agreements; production-sharing contracts; profit-sharing agreements; and services agreements.

ELECTRICITY (SUBJECT TO IMPLEMENTING LEGISLATION):

HIGHLIGHTS OF THE NEW LEGAL FRAMEWORK

1. Any activity related to the generation and wheeling of electricity is no longer a state monopoly. Private companies may participate in the generation and wheeling of electricity to be sold to the state under a framework of energy agreements.

OIL AND GAS (SUBJECT TO IMPLEMENTING LEGISLATION):

2. The state will continue to plan and control the national electricity system and the public service of transmission and distribution of electricity.

(Amendment to art. 25, 27 and 28 of the constitution)

¡ There is great opportunity for foreign investment in all aspects of the value chain.

2. All activities related to oil and gas will cease to be state monopolies. The Mexican state will be entitled to execute agreements with private companies regarding upstream, midstream and downstream activities for oil and gas industries.

1. All hydrocarbons will continue to be owned by the Mexican state.

3. The reform opens the generation of electricity for public service to private parties and establishes the express constitu-

IN ADDITION, THE BILL INCLUDES 21 TRANSITIONAL PROVISIONS. THE MOST SIGNIFICANT INCLUDE: 1. Pemex and CFE shall become productive state companies. In the meantime, they will continue operating under their current structures. 2. Framework on contributions and other payments to be delivered by private companies and/ or productive state companies to the state, as a result of activities rendered pursuant to the bill, shall also be implemented. 3. For accounting and financial purposes, private companies and productive state companies that have entered into agreements or allocations (as the case may be) to perform “upstream” activities may register the amounts of granted hydrocarbons and reserves under any applicable framework, with the understanding that the corresponding agreements and allocations shall provide that hydrocarbons are property of the state. As in other countries, this concept will allow the private sector to book hydrocarbon reserves at a stage where the hydrocar-

THE 2013 ENERGY REFORM WILL PROVIDE GREATER LEGAL CERTAINTY AND TRANSPARENCY.

¡ According to Pemex, the company has nearly 14 billion barSHALE OIL & GAS BUSINESS MAGAZINE

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bons may have not been extracted. Appropriate criteria on the calculation and booking of reserves should also be expected.

¡ The Ministry of Finance (SHCP) shall be responsible for establishing the fiscal aspects of the bidding processes and contracts.

WHAT WILL HAPPEN NEXT?

¡ The Mexican Petroleum Fund for Stabilization and Development (FMP) shall be created as a public trust fund with the Central Bank of Mexico as trustee for purposes of managing oil revenues.

Before the end of April 2014, Mexican congress shall: ¡ Adjust the legal framework in order to establish greater anticorruption control mechanisms.

Fueling Texas Shale Plays

Oilfield Transportation Services

¡ Establish new faculties for the Ministry of Energy, the Ministry of Finance, the Energy Regulatory Commission and the National Hydrocarbons Commission. ¡ Make all necessary adjustments to the current legal framework in order to implement the provisions set forth in the bill. These amendments include, among others, provision to the following forms of contracts: services (cash consideration), income (consideration as a percentage of the profits), production (consideration as a percentage of production), licensing (onerous transfer of hydrocarbons at wellhead) and any combination of the aforementioned schemes. ¡ Provide the necessary adjustments to the legal framework in order for those agreements entered into by the state with the private sector or with productive state companies, to include provisions of transparency, external audits and public disclosure of consideration, contributions and other payments under such agreements. ¡ Define the legal provisions to regulate the contracting regime for private parties to participate in the construction, maintenance and operation of electrical grids. ¡ Adjust the legal framework before the end of 2014 in order to establish the guidelines for the protection of the environment in all energy-related activities.

KEY AUTHORITIES

Now Hiring Drivers! Apply Online

www.suncoastresources.com shale@suncoastresources.com 800-677-FUEL (3835) * 3604

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¡ The Ministry of Energy (SENER) shall be responsible for awarding oil and gas leases; selecting contractual areas; providing technical design of the upstream contracts; issuing technical guidelines for the bidding processes; and granting permits for the refining and treatment of oil and the processing of natural gas. ¡ The Natural Hydrocarbons Commission (CNH) shall be responsible for implementing E&P regulation; providing technical advice to SENER; compiling geological and operational information; authorizing seismic survey and prospecting; conducting bidding processes and managing awards to private parties for E&P activities; and supervising production plans to maximize productivity.

¡ The National Natural Gas Control Center (CENAGAS) will be established as a decentralized government entity in order to operate the national pipeline system for the transportation and storage of natural gas. ¡ The Energy Regulatory Commission (CRE) shall have the authority to regulate the granting of permits related to the storage, transportation and distribution of oil, gas, refined products and petrochemicals by pipelines. CRE shall also regulate the access of third parties to the transportation pipelines and storage facilities of hydrocarbons and their by-products, as well as their firsthand sales. ¡ The National Agency for Industrial Safety and Environmental Protection is a new agency independent of the Ministry of Environment and Natural Resources (SEMARNAT), which will regulate and supervise industrial and operational safety and environmental protection (HSE).

CONCLUSIONS

¡ The 2013 energy reform will provide greater legal certainty and transparency. ¡ It will help adopt better technologies, increase training and promote best industry practices. ¡ It will modernize public companies by opening certain activities to competition.

¡ The reform paves the way for Mexico’s oil and electricity monopolies, Pemex and CFE, respectively, to become “productive enterprises” for private oil companies to explore and produce oil and gas under licenses and production or profit-sharing agreements, and for private power companies to generate and sell electricity. ¡ The energy reform, including the new laws and amendments to the legal framework (including the enactment of the corresponding regulations), is expected to be fully implemented by 2015.

For more information, please contact Lawgistic at info@lawgistic.com or visit www.lawgistic.com.


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PO LICY

A YEAR OF GROWTH As a short list of their goals for 2014 shows, the South Texas Energy & Economic Roundtable has hit the ground running this year. BY: OMAR GARCIA

THE SOUTH TEXAS ENERGY & ECONOMIC ROUNDTABLE (STEER), which was

established to facilitate communication, education and public advocacy surrounding the production of energy resources in South Texas, has already hit the ground running in 2014 with many important initiatives in South Texas. STEER remains committed to communicate the economic development benefits of the oil and gas industry, to build community and to advocate for positive outcomes in the Eagle Ford Shale. The 2014 goals include the following:

1/

Strengthen advocacy: In 2013, STEER made great strides in conveying the facts of shale gas production to local and regional media. STEER shared the positive economic growth trends in the Eagle Ford Shale region, advocated for social responsibility and collaborated with South Texas leaders to identify and share solutions to support and enhance the vitality of the region. In 2014, STEER will continue to increase engagement and grow relationships in communities within the Eagle Ford Shale region, while continuing to educate the public about the oil and gas industry through speaking engagements and community outreach.

2/

Build community: The members of STEER are made up of stakeholders, business entities, non-operators and corporations that engage in activities within the Eagle Ford Shale

region. The members of STEER gain from a mutually beneficial relationship with communities in which they have their operations. In 2013, 23 entities joined STEER to maximize opportunities associated with the South Texas energy industry and to share information to become more effective and efficient. If interested in becoming a member, please email STEER at membership@steer.com.

3/

Provide education opportunities in the community: In 2013, STEER successfully enhanced awareness of the STEER brand. In 2014, STEER will be devoted to solidifying its mission of education. The areas of education STEER will focus on include the oil and gas industry, issues facing the industry and communities and workforce development. All speaking engagements will reflect the efforts and the importance of these three categories. In conjunction with our efforts to educate, STEER will offer Oil and Gas 101 presentations to area schools providing industry information, workforce development and safety tips. If you are interested in having STEER speak at your next event, please email us at info@steer.com.

4/

Create active committees: As part of the STEER 2014 goals, active committees will be crucial in carrying out the objectives of advocacy, building community and education. STEER is proud to introduce the Communications Committee, which is comprised of media relations

professionals from STEER member companies with a focus on developing educational fact sheets, sharing positive stories with our audience and engaging in social media. The Stakeholders Relations Committee is led by stakeholder relations and public affairs representatives who are engaged in grassroots efforts in the Eagle Ford region. The Health, Safety and Environment (HSE) Committee will help identify priority issues in the Eagle Ford Shale region, as well as help member companies and those working in the Eagle Ford Shale region carry out new programs to address the health, safety and environmental concerns. And Water Technical experts will manage the Eagle Ford Water Consortium to focus on conservation and efficient use of water resources in the Eagle Ford Shale region. As a leading organization committed to connecting the industry and legislature, academia and the communities throughout South Texas, STEER is wholly invested in achieving these goals in 2014. We look forward to working in partnership with many of you this year.

For more information about STEER, please visit www.steer.com or follow us on Facebook (www.facebook.com/steerroundtable) or Twitter (@STEERoundable).

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NATURAL GAS VEHICLE NGV INITIATIVE

TEXAS RAILROAD COMMISSIONER

DAVID PORTER WILL BE HOSTING A SERIES OF WORKSHOPS THIS SPRING

The goal of these workshops is to link fleets that are moving to natural gas with fuel suppliers that, either have, or are building, refueling infrastructure.

The Workshops are open to all Texans and we encourage public participation. FEB 26

MIDLAND AT THE PETROLEUM CLUB

MAR 12

LONGVIEW AT THE CONVENTION COMPLEX

APR 17 LAREDO AT THE UNI-TRADE STADIUM

JOIN US as we explore options to

encourage more use of natural gas for drilling equipment and other oil and gas production and exploration activities.

For more information visit http://www.rrc.state.tx.us/index.php SHALE OIL & GAS BUSINESS MAGAZINE 41


BUSINE S S

WIN-WIN

Local high schools partner with the industry to ensure SKILLED AND EDUCATED WORKERS, making students more employable and providing businesses with the workforce they need. BY: DR. JANET CUNNINGHAM / PHOTOGRAPHY: DR. JANET CUNNINGHAM

THE EAGLE FORD SHALE HAS BROUGHT TREMENDOUS OPPORTUNITIES TO THE COASTAL BEND REGION, AND ALONG WITH THESE OPPORTUNITIES COMES THE RESPONSIBILITY TO PROVIDE EDUCATED AND SKILLED WORKERS. In a previous article, we discussed how higher education institutions are responding to the need for workers; however, counting on only this population is not enough. To ensure workforce demands are met now and in the future, public schools are increasingly being called upon to work in partnership with the industry to magnify the labor force. The Texas legislature acknowledged the need for an educated workforce through the passage of House Bill 5, which revamps high school graduation plans and testing requirements, and as a result, provides students with more opportunities to explore careers and earn degrees and certifications. Graduation requirements provide greater flexibility in courses that students can take to help them successfully enter the workforce or postsecondary education. To focus on specific careers, the legislation encourages students to earn “endorsements” in one of five areas:

 Science, technology, engineering and math (STEM)  Business and industry  Public service  Arts and humanities  Multidisciplinary studies The bill also provides opportunities for schools to partner with businesses to meet local economic needs through the development of programs of study, including career and technology training programs, apprenticeships and internships for an industry-recognized credential. House Bill 5 not only provides students with expanded ways to explore areas of interest, it also reduces the required number of state-mandated assessments from 15 to five exams, which will be administered as end-of-course exams in Algebra I, Biology, English I, English II and U.S. History. Additionally, schools must reduce the amount of time spent practicing for exams, avoid pulling students from classes for tutoring and limit the number of benchmark assessments. One final subtle, but important change the legislature made was to modify the wording of “higher

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education” to “postsecondary education.” The message is clear that all students need to graduate from high school and pursue some type of postsecondary credential, but no longer is the message that all students are university bound. While most House Bill 5 mandates must be implemented in the 2014-15 school year, several Coastal Bend school districts are way ahead in the game. They’ve already partnered with businesses and postsecondary institutions to meet local economic development needs. One such district is Gregory-Portland ISD (GPISD). Cheniere Energy in San Patricio County approached Dr. Paul Clore, GPISD superintendent, about an introduction to process technology course. The LNG-related company wanted specific instructional material covered, so the two co-developed content to ensure that a strong, broad-based course would meet the needs of area industries. Coincidentally, a similar course was being developed by Victoria ISD, and the two districts worked together to submit the innovative course to the Texas Education Agency. By increasing mathematics content, the course meets the requirements of a fourth-year math course and supports new curriculum requirements for an endorsement. Currently, the State Board of Education is reviewing the course in anticipation of including it in the list of courses that can be taught throughout Texas. Del Mar College (DMC) is working closely with the district to ensure that students will be able to earn dual credit for the course, and it is working to identify and supply equipment needs. DMC is also helping GPISD offer a welding course for certification or dual credit. DMC instructors will travel to the campus to deliver instruction, and depending on availability, GPISD may open the program to students from surrounding districts. Welding program students would be required to meet industry expectations, including mandatory drug testing. Additionally, blending soft skills into the curriculum provides students with an awareness of what companies expect from their workers. Clore and other San Patricio County superintendents continue to work together to provide students with a variety of opportunities to become career ready. Clore emphasized that students need to come out of high school with certificates and then cross over to higher education. With certificates, students can earn good wages and then increase their salaries as they continue their education. “We want them to stay here because the jobs are here and we’re


preparing them to meet the region’s Student Sammy Jasso workforce needs.” from Odem HS, student Community Mason Eisenbach partnerships are from Banquete HS and also important to instructor Don Stevens Calallen ISD (CISD), which was recently named District of the Year by the Texas Association of Partners in Education. CISD has opened its doors to students in surrounding districts providing them with opportunities to earn college credit through a unique dual enrollment program. The Northwest Center for Advanced Studies (NCAS) serves not only students from Calallen High School, but also the surrounding districts of Banquete, Odem and Robstown. Currently in its fourth year, the program has allowed students to earn more than 6,000 credit hours and has saved parents more than $1 million in college costs. Through a partnership with Texas A&M University-Kingsville and DMC, students take courses with college

professors who come to the campus each day to teach students. NCAS provides an ideal opportunity for students to earn college credit in a variety of areas and then return to their home campus to pursue elective classes. One unique course, and perhaps the first of its kind in Texas, provides high school students with a commercial driver’s license (CDL). Taught by DMC instructors and funded by Workforce Solutions of the Coastal Bend, high school seniors who are 18 years of age have been able to complete the course in one

semester, using equipment, including a driving simulator, which is brought to the campus. Students receive 50 hours of classroom instruction, 50 hours in the driving simulator and 60 hours behind the wheel. Once the course is complete, students take their CDL driving test. With the high demand for CDL drivers, it’s no wonder that all students who have completed the course have had no trouble finding a job. The Craft Training Center of the Coastal Bend (CTCCB) continues to lead the way in preparing students from 16 area school

ÒWE WANT STUDENTS TO STAY HERE BECAUSE THE JOBS ARE HERE, AND WEÕRE PREPARING THEM TO MEET THE REGIONÕS WORKFORCE NEEDS.Ó SHALE OIL & GAS BUSINESS MAGAZINE

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Student Mason Eisenbach at the simulator

districts for the many jobs available in the oil and gas industry. During the school day, nearly 275 students take classes in construction management, instrumentation, electrical, pipefitting and welding. Students can start taking classes as early as 14 years of age, and once courses are completed, they can earn National Center for Construction Education and Research (NCCER) certifications. “Industry is interested in our students because they are trained for a variety of positions and are mechanically inclined to do all types of industrial work,” said Gail Dowell, CTCCB workforce coordinator. “Employers are interested in hiring our students because they know our curriculum and

it is what they are seeking.” In addition to having the necessary work skills, instructors teach soft skills such as being respectful, being on time to work and dressing appropriately. One success story of CTCCB is Tiffany Rivera. After starting welding classes at 15 years of age, she immersed herself in the program, even taking summer classes to advance in the program. It paid off, as she earned a full scholarship to DMC to earn an associate’s degree in welding. “Because of CTCCB, I have been able to find a good job at Baseline Data and Inspection Service,” Rivera said, “and have been able to teach the skill to others since becoming a welding instructor at DMC.”

The many ways these and other educational entities are responding to the need for skilled workers are exciting – for both the students who are becoming more employable and for businesses that are partnering with districts to ensure that workers meet their needs. Because of the Eagle Ford Shale, not only is the landscape changing, but the way we do things in school is also changing. Preparing students for the jobs of today and tomorrow has become a priority – and isn’t that the way it should be? For more information, contact Dr. Janet Cunningham at jcunningham@edexcellence.org.

ÒEMPLOYERS ARE INTERESTED IN HIRING OUR STUDENTS BECAUSE THEY KNOW OUR CURRICULUM AND IT IS WHAT THEY ARE SEEKING.Ó 44

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EAGLE FORD CONSORTIUM 3RD ANNUAL CONFERENCE START: APRIL 21, 2014 END: APRIL 23, 2014 Cost: $225.00 Organizer: Eagle Ford Consortium Foundation Venue: Henry B. Gonzalez Convention Center Address: 200 E. Market St, San Antonio, TX, 78205 Email: info@eaglefordconsortium.org For payment or billing information: 830.876.1210 For sponsorship & exhibitor information: 210.912.5868 or cindy@cindytaylorgroup.com For additional conference information, please visit the website: www.eaglefordconsortium.org

» BREAKOUT SESSIONS » EXHIBITORS » POWER NETWORKING » INDUSTRY EDUCATION, WORKFORCE, ECONOMIC DEVELOPMENT LEADERSHIP

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ARTWORK COURTESY OF SHALE


AGENDA MONDAY, APRIL 21, 2014 - NOON Registration Opens and Exhibitor Set-up in Bridge Hall Chairman’s FIESTA Reception - 6:00pm Lonesome Dove Room

TUESDAY, APRIL 22, 2014 - 7:00AM-5:15PM Exhibits, Networking, Panels & Keynote Speakers Breakfast Keynote Address Red McCombs, Owner Red McCombs Enterprises Texas State Senators Legislative Panel Keynote Address Carlos Rubinstein, Chairman Texas Water Development Board Keynote Address Greg Leveille, Unconventional Reservoirs Technical Manager; ConocoPhillips The Lifespan of a Shale Play Luncheon Keynote Address Mayor Julian Castro, San Antonio, TX

Breakout Sessions Education & Workforce - Healthcare Safety & Insurance Community - Shale Regions Infrastructure - Housing

WEDNESDAY, APRIL 23, 2014 - 7:30AM-3:00PM Industry Trends Panel South Texas Transportation Triangle Panel Luncheon Keynote Address Rod Skaufel, President, North American Shale Production; BHP Billiton Petroleum Driving the 21st Century Texas Economy: Sustainable Oil & Gas Communities Keynote Address Bryan W. Shaw, Chairman Texas Commission on Environmental Quality Closing Celebration Reception & Scavenger Hunt Winners Announced www.eaglefordconsortium.org

CONFERENCE SPEAKERS

Julian Castro, Mayor City of San Antonio, Texas

Rod Skaufel, President North America Shale Production BHP Billiton Petroleum

Red McCombs, Owner McCombs Enterprises

Greg Leveille, Technical Manager Unconventional Reservoirs ConocoPhillips SHALE OIL & GAS BUSINESS MAGAZINE

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BUSINE S S

AVOIDING DISASTER FIVE KEYS to successfully navigating the hiring process

1. AVOID THE DANGER ZONES

Certain subjects are forbidden in an interview setting. Everyone knows religion and politics do not mix with business. However, these

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aren’t the only topics to avoid. Never ask about a candidate’s age, race, religion, gender, national origin, familial status, disability status, veteran status, medical history or other personal information. Questions must be limited to topics that directly impact the candidate’s ability to do the job.

2. STICK TO THE FACTS

While you may believe the job is too physically demanding for a female or an older candidate, unsuitable for a parent with small children or more fitting for a single person due to travel requirements, this is not within your rights to determine or even suggest. Remember: While each manager may interview differently, this is not an area where you can apply your own style or personality. “Laying the cards on the table” or “telling it how it is” might be a good way to cut through the clutter in other areas of life, but this is one situation where respecting the red tape and erring on the side of caution is always best, lest you find yourself faced with allegations of discriminatory hiring practices.

KZENON/BIGSTOCK.COM

S

ecuring the right team is crucial to growing your business. However, the process is fraught with risk and can result in financial disaster if handled improperly. Discrimination suits can cost an employer hundreds of thousands in legal fees, settlements and judgments. Results of bad practices can surface months or years after the hiring process is completed. The risks include hiring practice lawsuits, audits resulting in fines and penalties for incomplete or incorrect documentation. How can you avoid costly pitfalls? The greatest tool you can possess in protecting yourself and your business is knowledge. Every hiring manager in your company must be educated in proper interviewing and hiring practices. The following are five keys to successfully navigating the hiring process:

BY: ANDY CULLEN


3. DO YOUR HOMEWORK

Instinct can be something we all rely on in daily decision-making. However, foregoing company procedure in favor of your gut instinct is an unwise hiring practice. Take the time to do your homework. Execute appropriate background checks. Comply fully with I-9 and E-Verify requirements to ensure the candidate is eligible for employment in the United States. Obtain all necessary documentation, credentials and certification information to ensure the candidate is qualified. Check all references and verify employment history. Delaying or failing to complete some of these “formalities” can cost you greatly.

4. HONOR THE PAPER TRAIL

In the hiring process, a paper trail is both necessary and dangerous. For example, should you find yourself facing a negligent hiring suit or discrimination claim, it is imperative that you have documentation supporting your hiring decision. To disprove discrimination, you must be able to establish that the most qualified candidate was hired. To defend your position in a negligent hiring case, you must

THE GREATEST TOOL YOU CAN POSSESS IN PROTECTING YOURSELF AND YOUR BUSINESS IS KNOWLEDGE. prove you took all necessary precautions and “reasonable care” throughout the hiring process. While thorough notes can prove helpful in these situations, they can also cause great harm if they are the wrong kind of notes. Interview notes could be admissible as evidence. It is important that you do not document opinions, observations or concerns that could be seen as discriminatory on a résumé or in your notes.

5. BE ABOVE REPROACH

Your documentation should be able to prove that you adhered to the letter of the law at all times. The documentation is, therefore, only as good as your processes. Ensure that your processes are always legally defensible. If you do not have a qualified HR professional on staff, seek guidance from an outsourced HR provider or legal counsel. Be mindful that you must also be above reproach in verbal, printed and electronic communications with candidates. For example, never make promises – verbal or written – that could be perceived as guaranteeing employment. Instead, factual statements about the company’s history or statistical information can be used to illustrate the company’s stability. Though managers are empowered to hire, they are not expected to be experts in this field. Always seek professional guidance in all employment matters. Andy Cullen is a certified personnel consultant who received an MBA with honors from Rutgers University. For additional guidance and solutions, contact Cullen at 830-331-0940 or andycullen20@ gmail.com.

l l a m S m s ’ u r r o o F n r Gove Business

4 1 0 2 , 5 2 h c Mar M-1PM 8A LOCATION: LaVernia High School Auditorium 221 FM 775

HOSTS: LaVernia Municipal Development District has partnered with the Governor's Office of Economic Development & Tourism *Employees, veterans and entrepreneurs will have the opportunity to hear presentations on doing business with the oil and gas industry, as well as gaining access to capital.

SPEAKERS: Hope Adrade

Commissioner Representing Employers for the TWC

Dr. Thomas Tunstall

Director of Research for Economic Development, Institute for Economic Development, UTSA

Terri Williams UTSA Procurement & Technical Assistance Program Sarah Page Social Media Consultant

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BUSINE S S

SPECIALTY AGRICULTURE The TEXAS OLIVE RANCH in Asherton responds to the growing demand for highquality olive oil in South Texas. BY: DR. THOMAS TUNSTALL PHOTOGRAPHY: DR. THOMAS TUNSTALL

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n the course of our work at the University of Texas’ Institute for Economic Development, our programs have encouraged community leaders to foster diversification, which includes specialty agriculture. On the west side of the Eagle Ford, south east of Carrizo Springs and not far from the Mexican border is a little town called Asherton. On the outskirts, you can find an example of higher-margin agricultural diversification in the form of olive groves and olive oil processing under the auspices of the Texas Olive Ranch. Texas leads the country in production of farm and ranch products such as cotton, cattle, hay, sheep and goats. Much of the agricultural activity in Texas has typically focused on commodity crops such as cotton, corn, grain sorghum and wheat. The history of these commodities is long and storied, as every fourth- and seventh-grade student in Texas knows. However, there are opportunities in agriculture in the state that extend beyond these traditional commodity crops. For example, growing populations in Texas and the attendant increases in commercial and residential development have created a market for higher-margin nursery products such as bedding plants, foliage plants, sod and woody landscape plants. Nursery crops are attractive to grow in Texas because they are sensitive to long-distance transportation costs. The types of specialty crops that can be grown in the United States vary by region, but in Texas, the categories include peaches, pecans, spinach, grapes (for winemaking), mushrooms and, of course, olives. Many may not be aware that the United States imports nearly 300,000 tons of olive oil annually and produces only about 12,000 tons, so the opportunity for growth would seem clear. Production of olive oil in Texas has risen from nothing in 2002 to approximately 54 tons in 2012. The number of olive trees in Central and South Texas is rising rapidly, from approximately 250,000 in 2012 to an estimated 1,500,000 trees covering 3,000 acres in 2013. There are four olive oil pressing plants in Texas, with others planned in the future. Olives and olive oil are a higher-margin agricultural growth industry, and olive oil consumption in the United States has been increasing because of the growing


PRODUCTION OF OLIVE OIL IN TEXAS HAS RISEN FROM NOTHING IN 2002 TO APPROXIMATELY 54 TONS IN 2012. popularity of Mediterranean diets. The Texas Olive Ranch in Asherton boasts about 40,000 trees that were planted eight years ago. The ranch grows arbequina and arbosana Spanish olives, as well as Greek koroneiki olives. The climate in much of South Texas is suitable for growing olive trees, among others. Olive trees grown in Texas begin bearing fruit in three to five years. Olives do not require large amounts of water, but they do typically benefit from slow-drip irrigation. In fact, the trees can be damaged by receiving too much water – a nice problem to have these days in Texas. Olives can be harvested by hand or by machine. The Texas Olive Ranch uses a harvester (which is actually a modified grape harvester) that runs along the groves and removes the olives from the trees without damaging them. Once the olives have been collected, the leaves, dirt and twigs are removed. The Texas Olive Ranch also processes olives from other groves in the area. The other growers include Anderson Ranch in Dilley, Farrell Olive Orchard in Artesia Wells and Val Verde Vineyards in Del Rio. Olive trees are very hardy, as they are drought, disease and fire resistant. They can live for more than 1,000 years. To keep the trees manageable, growers will typically top-off the taller branches so that they remain at a constant height. Olive oil production is a timeand heat-sensitive process. In order to get the best flavor and the highest quality, the olives are pressed into oil as soon as possible. The Texas Olive Ranch runs its equipment at night in order to minimize the impact of the Texas sun. The entire olive, including the seed, is processed through mod-

ern grinders, which is a comparatively fast and gentle technique. More traditional methods employ millstones to crush the olives into paste and tend to produce higher temperatures. Another feature of traditional methods for producing cold-pressed olive oil includes the use of hemp mats. The olive paste is layered between several mats to create what looks like a stack of giant pancakes. A hydraulic press is then used to squeeze the oil from the pulp. This contrasts with more modern methods to separate the oil from the pulp by using a centrifuge, after which it is filtered. The discarded pulp can be used for fertilizer, for animal feed or even as a specialty ingredient for restaurants or food processers. The oil is then stored in containers, where the remaining sediment is allowed to settle at the bottom. Once this occurs, the oil is transported to San Marcos, where it is bottled and then ready for market. When the end-of-season processing is complete, the machines are thoroughly cleaned until the next harvest. Even though they are produced domestically, Texas Olive Ranch products carry a relatively high price point, which is function of the high quality of the oil. However, the International Olive Oil Council does not enforce standards as rigidly as labeling often implies. A report released in August 2013 from the U.S. International Trade Commission indicated that current standards for extra-virgin olive oil are largely unenforced, which results in a wide range of oil qualities marketed as such. As a result, U.S. consumers may not be aware of the differences and will tend to gravitate toward less costly olive oil products, which

OLIVE TREES GROWN IN TEXAS BEGIN BEARING FRUIT IN THREE TO FIVE YEARS. are often mislabeled and adulterated. In fact, much of the olive oil that is labeled as an Italian product actually originates in Spain and is then exported to Italy to be blended with oil from other parts of the world prior to export to the United States. In order to get traction in the marketplace, the Texas Olive Ranch uses several methods for marketing their olive oil. One method is via farmers’ markets, where the oil is sold directly to the public. The company also relies on distribution arrangements with companies like Whole Foods and H-E-B. The product is marketed under the Texas Cowgirl brand, and it is available in several varieties, including Rattlesnake, which

is flavored with cracked pepper and chipotle chili – the first of its kind. True to Texas form, there is a mesquite-smoke-infused olive oil variety, as well. The Texas Olive Ranch is now planning to expand operations to the Victoria area, where the weather looks even more accommodative to growing olive trees. CEO Jim Henry is planning to spend $5 million on the project, which will cover 380 acres with 300,000 trees. For more information, contact Dr. Thomas Tunstall at thomas. tunstall@utsa.edu, or visit www.iedtexas.org or www. texasoliveranch.com. SHALE OIL & GAS BUSINESS MAGAZINE

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LEADERS OPEN DOORS

How creating opportunities and stepping outside your comfort zone can make you a more effective leader BY: DOUGLAS S. CAIN

ýTHE TASK OF THE LEADER IS TO GET HIS PEOPLE FROM WHERE THEY ARE TO WHERE THEY HAVE NOT BEEN.ý

I

n three decades of serving as president of Lake Truck Lines, I only started taking on the mantle of leadership in the last year. Most of the reason was that I lacked an understanding of whom I should be leading. But that paradigm was permanently shifted when I realized I was not so much an all-powerful owner of a company, but instead, a steward of its assets. From there came the realization that the greatest asset the company had was its employee partners, followed by the realization that my primary role was to lead this company and its employees. This epiphany resulted in the tasking of the human resources department with building a training program based on our five core values: 1. Honesty 2. Passion and dedication 3. Salesmanship 4. Results orientation 5. Communication The program was custom built around the core values, the skill sets of the employees and the Lake culture. Five well-known businessmanagement books were chosen by the designer of Lake University (not a real college), Jennifer Webb, who massaged the curriculum

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so that it would match the employees and be fun at the same time. I realized that without participating in the entire 15-month program, I would not be setting the model that I needed for our employees. We all felt that in order for the employees to get what they needed, we needed to know what they wanted. And what we found out is that they all wanted opportunity, security and appreciation. Lake tasks its employees with getting outside their comfort zone each day. I want them to come up with ideas: great ideas, dumb ideas, cheap ideas and expensive ideas (boy, do we get a lot of those). And that is where my job comes in and where the title of this piece comes from. As your company, department or family leader, are you opening doors to the people around you? Are you creating an environment where there are endless opportunities opening up inside regardless of what is happening outside? Some only look for the opportunities; I challenge you to look at the opportunities that are inside every challenge. Leadership should be simple, not complex. The opening of Lake U has given me so many opportunities to give opportunities that I’m having trouble deciding where to start. But I knew this: I wanted to fundamentally change the

people who call Lake their home. “Open-door leaders uplift us,” Bill Treasurer, author of the book, “Leaders Open Doors,” said. “They elevate our standards, ethics and performance by creating opportunities for us to transform ourselves.” To think that you can have an impact on an individual so deeply that you touch their standards and ethics is simultaneously exciting and daunting. A whole lot of change has to happen to be an effective leader. As Dr. Kissinger said, “The task of the leader is to get his people from where they are to where they have not been.” You have to get people out of where they are comfortable (and perhaps complacent) and into where they are uncomfortable. The executive committee of Lake has tasked itself with finding the “white space” in our industry. White space is that unchartered territory in a market that is untapped and where competition doesn’t really exist. Lake U has taken it upon itself to find the white space in each and every employee – that uncharted part of their human spirit where they have never been. So as you transform yourself, your company or your employees, think way outside your comfort zone. When you look at where you are in your life, be a leader who opens doors. And while you are being that person, lead your employees to a place they have never been. The subject of leadership to your employees is so important that I will dedicate my next two articles to it. Until next time …

Douglas Sterling Cain is the president and CEO of Lake Truck Lines and Lake Oilfield Services. For more information, visit www.laketrucklines. com.

SERGEY NIVENS/BIGSTOCK.COM

- HENRY KISSINGER


THE STUDIOS at

CARRIZO SPRINGS

Our new rates are as fOllOws: 2 Bedroom Suites

1 Bedroom Suites

$49.95/night/man, Double Occupancy

$69.95/night/man

$79.95/night/man, Double Occupancy With Full 24-Hour Dining Privileges

$99.95/night/man With Full 24-Hour Dining Privileges

No long term contracts – just the nicest, cleanest, most secure housing facility in the Eagle Ford Shale area at a great rate. Almost 500 beds and four separate dining halls to serve you. For more information or to set up reservations, please contact: Tom Caufmann, Director of Operations 855-842-7799

Stop by and see us at the Texas Eagle Ford Shale Expo 2014 – Trail of the Shale April 28-30 • American Bank Center • Corpus Christi facebook.com/StrattonOilfieldSystems

SHALE OIL & GAS BUSINESS MAGAZINE

Follow us on Twitter @OilfieldHousing

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The eagle Ford Shale’S FineST WorkForce houSing communiTieS 1 & 2 Bedroom Private residences for Lease – Gated Community

– Fully Furnished with Appliances and Flat-screen Television

– On-site Management and Maintenance Personnel

– Private Driveways and Covered Front Porches

– Amenities Center with Recreation Room, Covered Pavilion, Outdoor Grilling Area, Picnic Tables, Laundry Facility, and Ice Machine

– Weekly Housekeeping and Linen Service

Nightly

– Cable and High Speed Internet

Weekly

Monthly

Locations in PearsaLL & diLLey For Information in Pearsall, please contact: Rhonda Gonzales, Property Manager 3558 Business 35 E. Pearsall, TX 78061 830.505.7013 senderoranch@hamiltonvalley.com 54

SHALE OIL & GAS BUSINESS MAGAZINE

www.senderoranch.net A Development of

For Information in Dilley, please contact: Kelly Martinez, Property Manager 1925 West Highway 85 Dilley, TX 78017 830.220.1670 senderoranchdilley@hamiltonvalley.com


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D RE

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D CE

215 Geddington Bentley Manor REDUCED from $1,190,000 to $1,050,000

1619 Winding View Summerglen $699,000 Villas Santiago Town Homes Medical Center Prices from the low $250’S www.villassantiago.com

Luz Ortiz 210-232-7859 www.luzbeyer.com luzortizrealtor@gmail.com Keller Williams Luxury 10 Dominion Drive San Antonio, TX 78257

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E

xperience a customized itinerary and the “Best Quail Hunting in Texas” just 40 minutes northwest of San Antonio in the beautiful Texas Hill Country along the pristine Guadalupe River. Walk up hunts behind world-class pointing and flushing dogs with professional guides assure you of an exceptional day in the field. Also enjoy fast action European-style driven pheasant shoots or Continental shoots - Fly fishing for trout and gunning on three different automatic clay target shooting scenarios.

Hunt free-roaming whitetail deer and Rio Grande turkey in season and world-class, free-range axis deer year-round. Gourmet dining and lodging with spectacular views top off the ultimate outdoor experience. “This is the best day of quail hunting I’ve ever had in my life.” Chuck Wechsler, Publisher, Sporting Classics Magazine

Joshua Creek Ranch is celebrating 24 years of outstanding client satisfaction and earning the designation as a Beretta Two Trident Lodge for Excellence in Upland Bird Hunting.

www.joshuacreek.com

a 830-537-5090 a

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info@joshuacreek.com

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CONNECT TO YOUR TEAM – NO TECHNOLOGY REQUIRED Company picnics provide the perfect recipe for TEAM BUILDING. BY: DAWN ROBINETTE / PHOTOGRAPHY: MATT GARCIA PHOTOGRAPHY

DON STRANGE OF TEXAS HAS SPECIALIZED IN BRINGING PERFECT PICNICS TO LIFE FOR 60 YEARS. 58

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W

hether you do business in front of a computer screen or out in an oilfield, today’s wired world means you’re more connected than ever. But that high-tech connection is chipping away at our personal connections, giving us more screen time than face time. Want to really connect your team and grow the way you work together? Cut the cord! Head outside for an old-school company picnic with Don Strange of Texas Inc., and reconnect with food and fun, no wires required. A business known for creating unforgettable celebrations and flawless events, Don Strange of Texas can answer any event need and handle everything for you. From the perfect company picnic or corporate barbecue to private executive dinners and teambuilding seminars with your employees and customers – whatever you dream, the team at Don Strange of Texas can create it, customizing each event to fit your wishes and stopping only at the impossible to make your event sparkle. While the famous tastes of Don Strange of Texas know no bounds, adding the secret ingredient of the great outdoors ratchets up the flavor and the fun of any event. No matter the menu, Mother Nature makes it taste better and gives you something extra to savor. Don Strange of Texas has specialized in bringing perfect picnics to life for 60 years, making these terrific company events work-free for clients. “Picnics bring employees, customers, suppliers, friends and family together to enjoy fabulous food and nostalgic games, giving people an opportunity to connect, no screen time necessary,” explains Di-Anna Arias, vice president of sales and culinary vision for Don Strange of Texas. “We spend so much time with technology, we forget how to unplug and relax, but a laidback picnic is just the thing to bring everyone together. Picnic games can be a great way to spend time together. From tug-of-war to horseshoes or washers, there are a lot of traditional games that stir memories, like frog races, sack races and watermelon-eating contests. We create activities to keep everyone entertained and enjoying themselves so you can enjoy the fun, as well.” Looking for the picture-perfect venue for your company picnic? Businesses across the country – and around the world – go to Don Strange of Texas to host their events at one of the company’s amazing venues, including the

Don Strange Ranch in Welfare and The Settlement – Circa 1850 in Bulverde. Nestled in the beautiful Texas Hill Country, the 125-acre historic Don Strange Ranch is a real working longhorn ranch just 45 minutes from downtown San Antonio. At this Texas historic landmark, your guests can enjoy a day filled with good old-fashioned food and

served, and each is available to play a role in hosting the perfect event. As a matter of fact, regardless of the weather, Don Strange of Texas has your picnic covered – indoor options are available at both properties so you can host the perfect picnic year-round, rain or shine. Let Don Strange of Texas do the work while you take the credit for a fabulous

Rose’s Potato Salad INGREDIENTS: 2 pounds potatoes, peeled and cut into bite-size dice 1/2 cup finely chopped bell pepper 1/2 cup finely chopped celery 2 tablespoons minced, drained pimiento 2 tablespoons sweet pickle relish 1 ½ cups real mayonnaise (or more as needed) 2 teaspoons ballpark-style mustard Kosher salt and freshly ground black pepper to taste INSTRUCTIONS: Place diced potatoes in a heavy-bottomed 6-quart pot. Add cold water to cover. Bring the potatoes to a boil over medium heat. Lower heat to a simmer and cook for about 20 minutes, or until potatoes are tender. Drain into a colander and set aside to cool. In a large bowl, combine the bell pepper, celery, pimiento, pickle relish, mayonnaise and mustard. Stir to blend well. When the potatoes are cool, stir them into the dressing. Season with salt and pepper. Cover and refrigerate until ready to serve. This recipe serves 10 to 12.

fun in a picturesque setting of majestic oaks and babbling streams. Take charge and make the ranch yours for a day, then just show up for a work-free celebration with your company, customers, suppliers and friends. Or settle in at The Settlement – Circa 1850, just a stone’s throw north of San Antonio in Bulverde. A unique venue of 78 acres that dates back to 1850, The Settlement is located just five miles outside of San Antonio’s Loop 1604, but it feels a world away. The historic structures on the site have been pre-

event. Everyone’s booking now for late spring and summer events – don’t miss out on your opportunity to watch your employee morale soar over s’mores. To discuss hosting your event at Don Strange Ranch or The Settlement – Circa 1850, or having Don Strange of Texas bring the party to you, contact Di-Anna Arias at di-anna@donstrange. com or 210-434-2331. And for more information about Don Strange of Texas, visit www.donstrange.com. SHALE OIL & GAS BUSINESS MAGAZINE

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A SENSE OF ‘PLACE’

THE MONTE VISTA HISTORIC DISTRICT: home to some of the most beautifully designed homes ever built in the Alamo City BY: MICHAEL DANIELS

THE MONTE VISTA HISTORIC DISTRICT

is one of San Antonio’s most recognizable neighborhoods. It is situated about a mile north of downtown where the elevation rises about 100 feet or more. The significance of this is apparent beginning about May and lasting through September when those south winds, also known as the gulf breeze, help keep one cool. Have you ever noticed that the names

Development continued for about the next 40 years with many of the most prominent architects of the era designing Monte Vista homes. Atlee B. Ayres, Adams and Adams, Russell Brown, Harvey P. Smith, Ralph H. Cameron, Alfred Giles and other notable architects drew plans for Monte Vista homes. Good architecture requires a clientele that can afford to pay for wonderful design and for the crafts-

THE OCCUPANTS OF THE HOMES IN MONTE VISTA ARE AS DIVERSE AS THE ARCHITECTURE. of almost all of San Antonio’s older neighborhoods refer to elevation, as in Monte Vista, Alta Vista, Beacon Hill, Alamo Heights and many others? The district encompasses about 100 square blocks where some 3,000 citizens live in some of the most beautiful architecturally designed homes ever built in San Antonio. The area was developed beginning in 1889 when Jay Adams purchased an 18-acre tract of land south of Summit Avenue from the Kampmann estate at a reputed price of $350 per acre. Adams purchased this property, along with an additional 55 acres contiguous to this site, the following spring. This land became known as Laurel Heights, and it is part of the area now known as the Monte Vista Historic District.

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men who actually build from these plans. Luckily, when Monte Vista was being developed from 1890 through about 1930, San Antonio experienced a new bounty of prosperity fueled by a plethora of business, which included oil, lumber, cattle ranching and mercantile. The Monte Vista neighborhood was recognized as a historic district in 1975. In 1996, Monte Vista was placed on the National Register of Historic Places. Monte Vista is bounded by San Pedro, Hildebrand, Stadium Drive and McCullough from Huisache south to Ashby. Within the district are several private schools including San Antonio Academy, St. Anthony Elementary and High School, Monte Vista Montessori and Keystone School. Trinity University is situated on the western boundary of

the district, and San Antonio College is located just south of the Monte Vista boundary. My wife, Linda, and I have lived in Monte Vista for more than 30 years and have owned five different houses in the district. As a realtor and resident, I have noticed something quite unique about many Monte Vista homeowners: When they sell their house, they buy another home in the district. I know this has happened scores of times. There is a sense of “place” in this neighborhood, in part the result of a strong historic preservation association. People enjoy the many neighborhood activities sponsored by the association, which include “Third Thursdays,” where the members are invited to a designated neighbor’s home or business for a social, with everyone bringing a covered dish and a bottle of wine to share. The Monte Vista Historical Association (MVHA) has a Fourth of July event at the Landa Library public grounds each year, with music, food, a pie contest and a parade. Children can romp in the beautiful playground that is open to the public year-round. A ticketed home tour once every two years helps fund neighborhood activities. Many San Antonio residents have been made aware of the district by attending this event, and residents have become lifelong friends after meeting at neighborhood events. When someone refers to Monte Vista, they normally think of the mansions on West Kings Highway, but this historic neighborhood has smaller bungalows, as well as Prairie School, Italianate, Queen Anne, Mediterranean and many other home styles unique to Monte Vista. The occupants of these homes are as diverse as the architecture, and if one loves architecture, one has to love Monte Vista. To learn more about the Monte Vista Historic District, visit www.montevista-sa.org. This article was contributed by “The Old House Lover” Michael Daniels: matching vintage homes with contemporary lifestyles. For more information, email Daniels at mdaniels444@ hotmail.com or visit King Realtors online at www.kingrealtors.com.


A room with a view.

Plan your getaway to Corpus Christi, and experience a funfilled stay at the Omni Corpus Christi Hotel. Whatever your reason to escape, you’ll enjoy luxurious accommodations, amazing amenities and fine dining, all within steps from your room. Let us elevate your stay to extraordinary.

361-887-1600 • omnihotels.com/corpuschristi

©2014 Omni Hotels & Resorts

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AMONG THE BEST

T

he Golf Range Association of America has again honored Boot Ranch as one of the nation’s top 50 private ranges and the only award winner in Texas. Boot Ranch, Estancia Club, Hazeltine National, the Bridges at Rancho Santa Fe and Valhalla Golf Club are quickly becoming regulars within the top 50. The award was announced

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in the January issue of Golf Range Magazine. In addition to the 34-acre practice park, which includes a short game range and an executive Par 3 course, there’s the championship 18-hole golf course designed by PGA legend Hal Sutton. The 18-hole golf course rises and falls along the natural ridges and valleys and makes full use of natural water features,

PHOTO COURTESY OF BOOT RANCH

Quickly becoming one of the most lauded golf ranges in the country, BOOT RANCH once again enjoys a place among the Golf Range Association of America«s TOP 50 private ranges in the nation. BY: RANDY PRUETT


ýBOOT RANCH IS AT THE FOREFRONT IN MEETING THE GREATER DEMAND FOR PRACTICE FACILITIES ACROSS THE NATION.ý

one being the twin 40-foot waterfalls in front of the 10th green. The course measures 7,250 yards from the longest tee for a Par 71. “As the primary location for young players’ entry into golf and for players wanting to improve their overall game, a greater value is being put on practice facilities across the na-

tion. Boot Ranch is at the forefront in meeting this demand,” says Boot Ranch PGA Director of Golf Emil Hale. “A lot of qualities go into making a golf course great. In the case of Boot Ranch, players generally praise the uniqueness of holes, conditioning, challenge, length and history.” A limited number of non-resident memberships are available for those who want to enjoy golf; access to the property’s Club House Village, spa and fitness facilities; and the new Ranch Club featuring four separate pools, an outdoor pavilion for events and parties and soon-to-be-completed sports and tennis courts. Boot Ranch is a premier luxury residential community nestled on more than 2,000 picturesque rolling acres in the Texas Hill Country. The master-planned retreat offers a variety of living options, and the clubhouse features expansive vistas, a spa and casual fine dining. With its Sutton-designed championship course, Boot Ranch has enjoyed placement among the top 10 golf communities in America by Golf Digest, as well as among the top 10 in Texas five times by the Dallas Morning News. For more information on Boot Ranch, visit www.bootranch.com or call 830-997-6200.

HORSES on the BEACH : CORPUS

Horseback Rides & Ranch Cookouts

“Discover our seashore in a whole new way”

361-949-4944 www.horsesonthebeachcorpus.com SHALE OIL & GAS BUSINESS MAGAZINE

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We invite you to discover all that Boot Ranch has to offer. Please visit us online or call 830.997.6200. Reference SHALE-92013 with inquiries.

BOOTRANCH.COM

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/ / N ONPR O F I T

COMMITTED TO COMMUNITY

ConocoPhillips demonstrates its COMMITMENT TO THE PEOPLE of the Eagle Ford area by providing charitable grants to organizations that positively impact the community.

ConocoPhillips recently presented $233,000 in charitable grants to organizations in the Eagle Ford area during a companysponsored luncheon. “ConocoPhillips is proud to support these outstanding organizations in the communities where we live and work,” said Randy Black, Eagle Ford operations manager. “The grant recipients all positively impact local communities by improving education and health care or promoting conservation.” Among this year’s 36 grant recipients are

six volunteer fire departments, nine educational institutions and various other civic organizations. Each year, ConocoPhillips invests in local communities through charitable giving, employee volunteerism and sponsorships. The company’s global giving is focused primarily on education, health and safety and natural resources. In addition, ConocoPhillips giving provides support for the arts, community infrastructure, social services and disaster relief. “The Eagle Ford is an important develop-

ment and growth area for ConocoPhillips,” Black added. “Our support for these communities is just one way we hope to demonstrate our commitment to the people of the Eagle Ford area.” ConocoPhillips has a field office in Kenedy, Texas, which offices approximately 200 employees and contractors. For more information, visit www. conocophillips.com.

About ConocoPhillips ConocoPhillips is the world’s largest independent E&P company based on production and proved reserves. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 27 countries, $54 billion in annual revenue, $118 billion of total assets and approximately 18,400 employees as of Dec. 31, 2013.

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American Cancer Association Realty for Life – Kenedy $1,500

Karnes County Historical Society $3,000

Atascosa Health Center $20,000

Karnes County Sherriff's Department $11,000

Bee County Fire Protection Association $1,000 Beeville ISD ACE Program $2,000

LIST OF R ECI PI E NTS

Beeville Police Department $11,000 Caesar Kleberg Wildlife Research Institute $11,000 Chisholm Trail Heritage Museum $3,000 CHRISTUS Spohn Health System Development Foundation $1,000

Live Oak County Area Go Texan Inc. $5,000 Kenedy Public Library $5,000 Nordheim Volunteer Fire Department $11,000 Pawnee Volunteer Fire Department $11,000 South Texas Children’s Home $11,000 St. Mary’s Academy Charter School $1,000

Coastal Bend College Foundation $5,000

Texas Parks and Wildlife Department Choke Canyon State Park $10,000

Cuero Little League $1,500

The Auxiliary of Swinney Switch $1,500

Cuero Volunteer Fire Department $11,000

Thomas Jefferson Elementary School $1,000

DeWitt Medical Foundation $3,000

Three Rivers ISD $3,000

Dobie-West Performing Arts Theatre $2,500

University of Texas at San Antonio $2,000

George West Education Foundation $3,000

Westhoff Volunteer Fire Department $11,000

George West Volunteer Fire Department $11,000

Whitsett Volunteer Fire Department $5,000

Joe Barnhart Bee County Library $2,000

Yoakum Community Hospital $2,000

Karnes City ISD Education Foundation $11,000

Yoakum ISD 4-H FFA $4,000

Karnes City Volunteer Fire Department $30,000

Yorktown Volunteer Fire Department $5,000

VACANT LAND located at the corner of 1604 S and Applewhite Rd. All or part of the 157.25 acres with great commercial or residential potential. Just south of Toyota plant and close proximity to Eagle Ford shale. $2,199,400.00 Call Artie Quirk for details

Artie Quirk

210.861.9486

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/ / N ONPR O F I T

IN WITH THE NEW The WOMEN’S ENERGY NETWORK of South Texas congratulates its new board and chairs.

President: Paula Waggoner-Aguilar President-Elect: Janet C. Irwine Treasurer: Lisa Trefger Secretary: Nora Bryant Director of Community Initiatives: Jana Kennelly Director of Marketing: Haley Curry Director of Member Retention & Development: Siobhan Karger Mullen Director of New Membership: Lori Darchicourt Directors of Program Development: Stephanie Chandler and Lisa Trefger Advisory Board Member: Lynnae Willette Executive Event Planning Chairs: Janet Irwine and Lisa Trefger Special Regional Committee Chairs: Krystal White and Glynis Strause Partnership Chair: Ruby Cano Sponsorship Chair: Stephanie Gonzales Charity Luncheon Chair: Brittany Weil YWE/STEM Initiatives Chair: Monica Madrid Rose Website Chair: Kristina Gutierrez Branding Chair: Monica Madrid Rose Public Relations Chair: Marsha Hendler Membership Communications Chair: Kym Bolado Membership Retention & Corporate Membership Chair: Whitney Watson New Members Chair: Erin Bailey Moses Mentoring Chairs: Paula Gold-Williams and Shannon Badger

JOIN WEN OF SOUTH TEXAS FOR THEIR NEXT EVENT!

The South Texas Women’s Energy Network will host a networking happy hour celebrating pioneering women in energy during Women’s History Month! Meet and network with other women in the energy industry.

WHEN: March 20, 2014 LOCATION: Paloma Blanca (5800 Broadway, Ste. 300, 78209) TIME: 5:30 to 7 p.m. SPONSORED BY: Burleson LLP

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PAUL FLEET/BIGSTOCK.COM

The WEN South Texas chapter brings women together to energize, empower and support one another, while striving to make a difference within South Texas. For more information on WEN of South Texas, visit www.womensenergynetwork.org.


Texas A&M University-Kingsville

Eagle Ford Center for Research, Education and Outreach This workshop will provide an opportunity for elected officials, local governments, emergency responders, school personnel, and land owners to increase your knowledge of pipeline safety and public awareness programs. Operators are invited to display your Eagle Ford Shale operation maps.

Public Awareness of Pipeline Safety Workshop April 2, 2014 City of Cotulla Convention Center 290 North Interstate Highway 35 9:00 am – 1:30 pm

Pipeline Safety session will focus on: • Pipeline Construction, Design and Inspections • Federal Pipeline Safety Regulations • Gathering Lines-Managing Risk Public Awareness session will focus on: • Community Planning and First Responder Preparedness • Emergency Response Solutions • National Pipeline Mapping System (NPMS) Demonstration • Current Pipeline Development and Proposed Expansion

To register: email name, title, affiliation, phone and email to EFCREO@tamuk.edu Poster session, exhibit booth space and sponsorship opportunities are available. For more information contact the EFCREO at EFCREO@tamuk.edu

$12 per employee. Protect their financial freedom. HALO-Flight is a 501(c)3 Not for Profit Air Ambulance Service

Business Agreements now available: HALOFlight would like to extend coverage to your employees for an annual rate of $12 per employee household. What’s the bottom line? An average emergency helicopter transport exceeds $15,000. As a Guardian Member, if you or a member of your household require our service, your insurance (if any) would be billed and HALO-Flight would accept that as payment in full. It’s that simple! Contact Stephanie Knox, Marketing Director stephaniek@haloflight.org 361.265.0509

Halletsville

Bay City

Cuero Karnes City

Jourdanton

Edna 45 mins.

Tilden

Cotulla

Beeville

30 mins.

George West Sinton Alice San Diego

Rockport 15 mins.

Corpus Christi

Kingsville

Laredo Hebbronville Falfurrias

Sarita

Service Area

26 County coverage

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Ind $25 w li de


Opening Doors in San Antonio Since 1974

Gorgeous Move-In Ready Condo - Approx. 2,677 square feet - 3 bedrooms/3 baths - Granite upgrades - 2 car garage - Great central location

Enchanting Old World rock home with terrific curb appeal in Olmos Park! - Outstanding arch openings, deep crown moldings, antique doors, and high ceilings - 5 bedrooms/4 baths - Approx. 3,750 square feet

King Realtors

is dedicated to helping San Antonio and the oil industry with their real estate needs. If you are looking to buy or sell a property, call us and say you saw it in SHALE MAGAZINE!

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

TABITHA KING 210.414.4255 70

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Join the Conversation

Oil and Gas Community Speaks - Be Heard

Need to get your message out and engage the community? Let us help! We can put you in front of tens of thousands in the oil and gas community almost immediately, and for the right price, too: free.

Channel sponsor of the month: SHALE Oil & Gas Business Magazine

http://www.linkedin.com/groups/Community-Speaks-Oil-Gas-Be-7459341

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

SHALE’s mission is to promote economic growth and business opportunity that connect regional businesses with oil and gas companies. It supports market growth through promoting industry education and policy, and it’s content includes particular insight into the Eagle Ford Shale development and the businesses involved. Shale’s distribution includes industry leaders and businesses, services workers and entrepreneurs

connect. share ideas. discuss.

OIL & GAS BUSINESS MAGAZINE

http://www.linkedin.com/company/shale-oil-&-gas-business-magazine SHALE OIL & GAS BUSINESS MAGAZINE

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AN EVENING OF DIGNITARIES

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SHALE magazine honors TEXAS RAILROAD COMMISSIONER DAVID PORTER at its January/February cover party in beautiful downtown San Antonio. PHOTOGRAPHY: JOE HERCZEG

THE DOWNTOWN SAN ANTONIO LIGHTS provided the perfect backdrop for the January/February SHALE magazine cover party honoring Texas Railroad Commissioner David Porter at the Palm Restaurant. In addition to Porter, the evening’s guest of honor, other dignitaries included State Sen. Carlos Uresti and STEER President and CEO Omar Garcia. SHALE magazine Publisher and Founder Kym Bolado presided over the evening. Several companies were represented at the event, including Marathon Oil, Don Strange of Texas, Premier Hydro, Morgan’s Wonderland, Direct Current, Jackson Walker LLP, MassMutual, Lake Truck Lines, Duable and Barrett Jaguar, among others. The event was sponsored by the Palm, Boot Ranch, Texas Energy Advantage and STEER.

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1/ KYM BOLADO, MARY BELL, DAVID PORTER AND MARTHA BELL-LINER 2/ SEN. CARLOS URESTI, SCOTT COURTNEY, KYM BOLADO AND ROBERT FLORES 3/ OMAR GARCIA AND KYM BOLADO 4/ DAVID PORTER, KYM BOLADO AND SEN. CARLOS URESTI 5/ HALEY CURRY, OMAR GARCIA AND CHRIS ASHCRAFT 6/ DON DAVIS/KELLER WILLIAMS, BRIAN STRANGE AND DI-ANA ARIAS/DON STRANGE 7/ TERI ALMENDARIZ, KYM BOLADO, KIM WEBB, JOYCE VENEMA AND DEANNA ACOSTA

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8/ DINA YBANEZ, DEANA ACOSTA, KYM BOLADO, JON EDWARDS AND STEPHANIE HAWLEY 9/ ANDREW BALL/BOOT RANCH, KYM BOLADO AND JIMMY PERKINS 10/ KYM BOLADO, DAVID PORTER AND JIMMY PERKINS 11/ CLINT SCHWEERS/ OILFIELD EXPERTS, SCOTT COURTNEY/PREMIER HYDRO, KYM BOLADO AND DAN HEARN 12/ LAUREN GORDON AND SCOTT COURTNEY 13/ MARY BELL, MATT GOMEZ/ BOEING AND MARTHA BELL-LINER 14/ JOSIE CUELLAR, DON DAVIS AND TABITHA KING 15/ JIMMY PERKINS, BRIELLE INSLER, MOHAMMAD RASOOL AND CARLOS GONZALEZ CONTINUED ON PAGE 72

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23 16/ TERI ALMENDARIZ, STEPHANIE HAWLEY, KIM WEBB, KYM BOLADO AND BRIANA LYSSY/MARATHON OIL 17/ SEN. CARLOS URESTI, KYM BOLADO, ROBERT FLORES AND CARLOS URESTI JR. 18/ ANDREW BALL, ANDY CULLEM, ED HOPKINS AND KIM BALL 19/ KYM BOLADO AND BRIANA LYSSY 20/ MARTHA BELL-LINER, AND DAVID PORTER 21/ DOAK DUNKIN AND ANDY CULLEN 22/ JON EDWARDS AND ROBERT SANCHEZPALM 23/ KYM BOLADO AND JON EDWARDS

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31 24/ JIMMY PERKINS, STEPHANIE HAWLEY AND STEVE RAMON/JACKSON WALKER 25/ ANDY CULLEM, DEANA ACOSTA, KIM WEBB, STEPHANIE HAWLEY, JOYCE VENEMA AND DOAK DUNKIN 26/ GEORGE LONG, TABITHA KING, DAN HEARN AND BRIELLE INSLER 27/ JIMMY PERKINS, MATT GOMEZ/BOEING, AND ED HOPKINS 28/ JIMMY PERKINS, MEGAN GARCIA AND JEFFREY HAROLD 29/ MARY BELL AND PAULA WAGGONER 30/ TERI ALMENDARIZ, ANDY CULLEN, NANCY CRIST AND STEVEN CARR 31/ LOY GARCIA AND CHRIS ASHCRAFT

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 SC ENE 

AT THE FRUTERêA, THE DRINKS ARE AS UNIQUE AND DELICIOUS AS THE FOOD. symphony that commands your full attention. But the real payoff is when you get to eat the food. Whether it is the Puerco en Mole Blanco (pork belly in a white-chocolate mole sauce), Ceviche Rojo (white fish, chile chipotle, roasted red peppers and pico de gallo), Chile en Nogada (poblano peppers with picadillo, sundried fruits and creamy walnut sauce) or anything else on the menu, you can count on three things:

A FIESTA FOR THE SENSES

The Fruter’a: a festive San Antonio favorite from the creative genius of CHEF JOHNNY HERNANDEZ BY: JIMMY PERKINS / PHOTOGRAPHY: JONATHAN ALONZO

INSPIRED BY MEXICO’S beautiful and colorful fruit stands, the Frutería is nothing short of a fiesta for the senses to enjoy. The atmosphere is at once contemporary and rustic with vibrant colors, concrete floors, traditional art, 2-inch-thick wooden block tables and wrought-iron shelves (housing the 50 different kinds of tequila, añejo and mezcal offered). The Spanish language music is also vibrant, creating a festive ambiance that is a natural fit to the interior design. The open-air kitchen dominates one end of the restaurant and provides a savory

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1. The freshness of the ingredients 2. The creativity of the dish 3. The amazing reaction you will have that results from the previous two when you take your first bite The name literally means “green grocer,” and the look pays homage to the Mexican “Tree of Life” drawings on amate (bark) paper hanging on the walls. The space also echoes a Mexican botanero, which is a casual space where people gather after work to get botana-style Mexican tapas and cocktails. The drink menu includes a well thought-out list of the aforementioned tequilas from various regions and a variety of traditional fruit-infused cocktails. The juices are freshly squeezed, and the drinks are as unique and delicious as the food. The Frutería is located at 1401 South Flores in San Antonio on the first floor of the Steel House Lofts building. It is another great restaurant from the creative genius of Chef Johnny Hernandez.

For more information on the Frutería, visit www. thefruteria.com.


OIL AND GAS SUPPLIES Hydrometers // Thermometers Woodbacks // Lufkin Tape Many more products available 17460 IH 35N 160 #394 Schertz, TX 78154 (210) 823-3181 REBECCA HOWLAND Texas Energy Advantage Resources rhv@txenergyadv.com

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 SC ENE 

MEXICO’S ENERGY REFORM PETROLEUM CONNECTION hosts the Unconventional Opportunities Mexican Symposium.

P

etroleum Connection’s Unconventional Opportunities Mexican Symposium was held on Tuesday, Jan. 7, high above the city of Houston at the Petroleum Club. Topics ranged from economic overviews, logistics and infrastructure to a review of the legal aspects pertaining to the historic energy reform laws championed by President Enrique Peña Nieto. Featured speakers included Congressman Javier Trevino, secretary of the House Energy Committee, Mexican Federal Congress; Arturo Henriquez, president and CEO of PEMEX Procurement International; and Jorge E. Lopez-de-Cardenas, director of Technology Mexico and Central America Schlumberger.

TOP - Panelists prepare. From left to right: Jorge E. Lopez-de-Cardenas, director, Technology Mexico and Central America Schlumberger; George Baker, publisher and Mexico Energy Intelligence director, Energia.com; Carlos Garcia, international business development manager, Lewis Energy; and Dr. Kenneth Medlock, senior director, Center for Energy Studies, Rice University MIDDLE - From left to right: Mario Zambrano, CEO, Zutixe LLC; Congressman Javier Trevino, secretary, House Energy Committee, Mexican Federal Congress; and Pete Cook, president, Petroleum Connection BOTTOM - From left to right: Juan Luna, director, Lawgistic; Pete Cook, president, Petroleum Connection; and Jeffrey Presberg, managing partner, Petroleum Connection

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SHALE COVER PARTY CELEBRATING MAR/APR ISSUE

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SHALE Oil & Gas Business Magazine Mar/Apr 2014