October 2022 - The Pipeline

SPE Permian Basin

PIPELINE

Shivani Vyas SPE-PB Chairman 2022-2023 Technical Services Engineer Odessa Separator Inc. (OSI)

TECHNOLOGY DRIVE – BOTTOM LINE SUCCESS

When the world is going through oil and gas supply shortages, what keeps us driving as the world’s top producer? The rock sure is a blessing but con nual innova ons and applica on of technologies has been the bo om line to our success. Technologies in horizontal drilling, s mula on and comple on, ar ficial li , well site automa on, water management, machine learning, and emissions monitoring are among the advancements helping operators of all shapes and sizes to achieve high performance in a cost driven economy. These have not only transformed the region but have been the bo om line drive to the success today. As JPT rightly quoted, “What was impossible a few short years ago is a reality today”, is the most accurate statement for technologies in our industry.

We witness these applica ons on a daily basis in the stacked, ght oil benches of the Midland and Delaware basins. Technological advancement in unconven onal plays not only got the Permian back into the game a er World War II, but with con nuous innova on and applica ons have enabled it to thrive and prove to be a game changer in global energy.

Let’s start with some of the breakthroughs in Drilling Technologies:

· Rotary Steerable Systems (RSS) u lize a downhole ba ery powered system that helps direct the drill bit instead of using mud anchors for direc onal drilling. This has helped tremendously in geosteering to the forma on target and delivers longer laterals, increasing the lateral length to as long as 20,000 !

· Real me Torque and Drag Systems helps gather informa on on fric on and wellbore stability issues during drilling. Such systems usually work in conjunc on with exis ng rig systems and provides them with helpful Torque and Drag informa on to the make the necessary adjustments to avoid stuck pipe and improve wellbore quality.

· Managed Pressure Drilling (MPD) systems are implemen ng advanced data analy cs and hydraulic modeling in programable automa on controllers which have proven advancement on reliability and full real me determinis c opera on.

· At this me, the world has its first hybrid rig (hEMS) using ba ery energy storage and engine automa on to reduce the number of gensets opera ng and increase the average efficiency of each genset. The key to achieving fuel savings was to integrate the controls of the hEMS with the drilling rig’s controls system.

Technological developments in Various Oil and Gas Disciplines:

Ultra Deep Resis vity Reservoir Mapping has allowed downhole mapping of the reservoir. This could be beneficial for operators to be able to map the reservoir and fluids. This technology can help prac oners understand subsurface structures and reserves in place around the wellbore. Technological innova ons to reduce emissions above ground include electric fleets, a move towards electric compressors, and tankless facili es with vessels that allow recovery units to pull off gas vapors and a dedica on to a steadfast goal of elimina ng rou ne flaring. Infrastructure designs to network pipelines, disposal wells and recycling facili es are reducing the need to truck water, especially with an average water oil ra o of 3 4 bbls of produced water to every barrel of oil. Fiber op c and downhole cameras gauge outcomes during fracs, including perfora on erosion, with a confluence of technologies that have allowed companies to tailor each frac design to divert fluid evenly and most effec vely across a s mula on stage. Enhanced comple ons technologies and well designs with increased number of wells per pad has been a cri cal factor in lowering the breakeven price in the basin. Advanced designs, efficient fleets and experience labor have played a factor in cost savings.

Embracing the advancements in Technologies have always been the standard of the Permian. As we con nue to facilitate our members with our technical events throughout the month, we would also like to extend an invite to a end the SPE Permian Basin Energy Conference (Oct. 24th 26th, 2022 at Bush Conven on Center in Midland, TX). This Conference would have mul ple sessions on prac ces and technological developments in the basin.

Mark Henkhaus

SPE-PB Comple ons and Opera ons Study Group

October 6, 2022

11:30 AM 1:30 PM

Owner Petroleum Club of Midland

Permian Regulatory Solutions, PLLC.

Compliance and the Independent Operator: The Railroad Commission is Rewri ng the Unwri en Rules of the Game

Abstract:

The Railroad Commission is revising rules and policies that affect the independent operator in ways some do not understand. Recent formal rule adop on has changed how wells are to be permi ed, gas flared, and produc on reported. Commission policies are constantly evolving, affec ng such diverse areas as injec on and disposal well permi ng, spill cleanup, H2S compliance, prora on, and more. Now, cri cal gas supply and winteriza on are two addi onal rules the operator must understand. These rule changes affect how an operator approaches opera ons, compliance, and permi ng.

This overview of the recent rule changes, especially as they pertain to flaring repor ng, compliance, and winteriza on, will provide the engineer with informa on needed to ensure they may con nue to operate and remain in compliance.

Bio:

Mark has served the industry since 2014 by chairing the Regulatory Prac ces Commi ee for the Permian Basin Petroleum Associa on (PBPA). He was also a select par cipant in the recent revisions of New Mexico’s horizontal drilling rules, and a select par cipant in the recent revision of Texas’ Statewide Rule 40 pertaining to acreage assignment in horizontal development. Over the last several years, Mark par cipates on the Permian Basin Water in Energy Conference board, the Midland College SPE PBPA annual Environmental and Regulatory Seminar organizing board and is a member of the Bruno Hanson/Midland College Environmental Excellence Award advisory commi ee. He is also an ac ve member of the Texas Oil and Gas Associa on (TXOGA) Regulatory Prac ces Commi ee and Texas Independent Producers and Royalty Owner’s Associa on (TIPRO) Regulatory Issues Commi ee.

Over Mark’s career, he worked for the Railroad Commission of Texas for over 28 years in three district offices, including 19 years as the District Director of the Commission’s Midland district office, responsible for overseeing the oil and gas industry in the vast Permian Basin. He then joined EXCO Resources, Inc. as Regulatory Manager, building and managing an efficient regulatory team responsible for all ac vi es in Texas and Louisiana. A er EXCO, he joined Apache as Regulatory Manager, establishing and managing a well respected and ac ve regulatory team responsible for permi ng and compliance in all drilling and produc on ac vi es in Texas and New Mexico.

Mark is a Registered Professional Engineer in the State of Texas and holds a B.Sc in Petroleum Engineering from Texas A&M University.

To register visit the SPE-PB Comple ons and Opera ons Study Group website: h ps://www.cosg.spepb.org

Registra

PPDC Courses

Midland College PPDC 221 N. Main Street Ÿ Midland, TX 79701 (432) 683 2832 h ps://mcce.midland.edu > Oil & Gas Training

DOT Compliance Manager Training

Instructor: San ago Talamantez

October 4 6, 2022, Tuesday Thursday, 8:00 am to 5:00 pm Cost: $1,500; Out of State: $1,525

Petroleum Land Basics: Becoming LandWise

Instructor: Ralph R Lea

October 4 6, 2022, Tuesday Thursday, 8:00 am to 5:00 pm Cost: $895; Out of State: $920

Environmental, Social, and Corporate Governance (ESG) Fundamentals & Applica on

Instructors: Pat Lipovski & Bob Peterson

October 10 11, 2022, Monday Tuesday, 8:30am to 4:30 pm Cost: $3000; Out of State: $3025

The Engaging & Influen al Leader 2-day Leadership Training Program

Instructors: Pat Lipovski & Bob Peterson

October 12 13, 2022, Wednesday Thursday, 8:30am to 4:30 pm Cost: $3000; Out of State: $3025

Petroleum Geology for Non-Geologists

Instructor: Paul Pausé

October 10 13, 2022, Monday Thursday, 8:00 am to 4:30 pm Cost: $1,835; Out of State: $1,860

Introduc on to Oilfield Opera ons

Includes Fieldtrip to The Petroleum Museum

Instructor: Albert Garza

November 1 2, 2022, Tuesday Wednesday, 8:00 am to 5:00 pm Cost: $625; Out of State: $650

Managing Sucker Rod Li Well Failures

Instructor: Albert Garza

November 3, 2022, Thursday, 8:30 am to 4:30 pm Cost: $475; Out of State: $500

Petroleum Engineering for Non Engineers

Instructor: Dr. Jennifer Miskimins

November 9 10, 2022, Wednesday Thursday, 8:30 am to 4:30 pm Cost: $695; Out of State: $720

Economic Evalua on & Investment Decision Methods

Instructor: John M. Stermole & Andrew Pederson

October 17 20, 2022, Mon. Wed. 8:00 am to 5:00 pm, Thur. 8:00 am to 12:00 pm Cost: $3000; Out of State: $3025

Carbonate Petrophysics

Instructor: George Asquith

December 5, 2022, 8:00 am to 5:00 pm

Cost: $500; Out of State: $525

2023:

Waterflooding: Performance Predic ons and Surveillance

Instructor: Dr. Mike Wiggins

April 24 28, 2023, Monday Thursday, 8:00 am to 4:00 pm, Friday, 8:00

Cost: $3975; Out of State: $4000

12:00 pm

SPE PB Board

2023 SPE Permian Basin Board Members

Posi on Member Company

Member's Email

Chairman Shivani Vyas Odessa Separator Inc. (OSI) shivanivy928@gmail.com

Vice-Chairman Taylor Montoya ConocoPhillips taylor.montoya@conocophillips.com

Treasurer Paul Brown Chevron paulbrown@chevron.com

Secretary Ayodeji Daramola Halliburton ayodeji.daramola@halliburton.com Awards and Nomina ons Nuny Rincones ConocoPhillips nuny.rincones@conocophillips.com

Community Rela ons Andrea Switzer andrea.e.switzer@gmail.com

PR & Adver sing Ryan Yarger EOG Resources ryan_yarger@eogresources.com

Pipeline Newsle er Ryan Smith Chevron ryan.a.smith@chevron.com

Young Professionals

Chair (YP)

Golf Tournament Coordinators

Ma hew Watson ConocoPhillips ma hew.a.watson@conocophillips.com

Jeane e Reyes Endeavor Energy Resources jreyes@eeronline.com

James Haest Silver p Comple on Services james.haest@silver pcomple ons.com Ma hew Perry Permian Diagnos c Solu ons mperry@permiandiagnos csolu ons.com

Mark Lancaster TOOLSRUS mark@turningblackgoldgreen.com Internet Coordinator Sara Booth SCI sara.f.foster@gmail.com

Membership Yoshi Pradhan Coterra Energy ypradhan.pge@utexas.edu Programs

Scholarship

Eli Montaya Diamondback Energy emontoya33@gmail.com

Gustavo Gonzalez Odessa Separator Inc. (OSI) ggonzalez@odsep.com

Libby Einhorn libbyeinhorn@aol.com

Joe Brandenburg Graco Oilfield Services joe.brandenburg@gracosvcs.com Study Group Liaison Flo Akintunji SM Energy folochi@gmail.com Comple ons &

Opera ons Study Group

Data Analy cs Study Group

Cathy Harris Lodestone Oil & Gas Consul ng, LLC lodestoneogc@outlook.com

Ronnie Arispe ConocoPhillips

ronnie.arispe@conocophillips.com Anthony Bordonaro ConocoPhillips anthony.bordonaro@chevron.com

Reservoir Study Group Yoshi Pradhan Coterra Energy ypradhan.pge@utexas.edu

Texas Tech Liaison Ryan Bhagwandass

The George R. Brown Partnership L.P. rbhagwandass@tgrbp.com

UT Permian Basin Liaison Bre Keitges Covenant bre keitges1@gmail.com Communica ons Coordinators Dalton Kille Extract dkille@extractproduc on.com Victoria Kuzmich victoriakuzmich@yahoo.com

At Large

Billy Harris Lodestone Oil & Gas Consul ng, LLC lodestoneogc@outlook.com

Ma Lippman Laredo Petroleum mlippman@laredopetro.com

Jay Young Consultant jay@jroal.com

Past Chair Ri hy Son SM Energy ri hyson@gmail.com

CO2 Conference Bill Webb Bill Webb, Inc billwebbinc@suddenlink.net

Clayshoot Commi ee

Jace Farmer Fasken Oil & Ranch jacefarm90@gmail.com

Alana Priebe ConocoPhillips alana.r.priebe@conocophillips.com

Jus n Moos Silver p Comple on Services jus n.moos@silver pcomple ons.com