2011 PESA Annual Report

Petroleum Equipment Suppliers Association

2010 Annual Report

The Business Resourcefor Petroleum Equipment

Suppliers Since 1933

Contents

Chairman’s LetterPresident’s LetterAnnual MeetingWashington Fly-InEnergy EducatorsEmerging LeadersFSO - Foreign Service Officer TrainingCID - Credit Interchange DivisionYear In ReviewExecutive CommitteeCommittee ChairmenFinancialsBoard of DirectorsMember CompaniesPast Chairmen

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Chairman’s Letter

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With everything it does, the PESA Executive Committee has one premise—

membership value.

Despite the highs and lows of the market—particularly the lows—PESA’s leadership

strive to build upon the value of membership. Our goal is to build upon each past

year’s success, making a PESA membership more meaningful and of practical

business use.

In every measurable sense, PESA had a fantastic fiscal year 2010-2011. We

continued with our tradition of recruiting the best speakers in oil and gas to address

our members. They included Jim Hackett from Anadarko, Mark Papa from EOG

Resources, Randy Limbacher from Rosetta Resources, Mark Ellis from LINN Energy, Steve Thurston of Chevron, and

many more.

PESA has continued its drive to educate future generations about the industry. In fact, this is another area in which

we increase our efforts each year. Schlumberger’s Pat Bond and the Energy Educators Committee have greatly ex-

panded our education efforts by creating four new programs.

Among these was a half-day Oil 101 class for 200 IPAA Petroleum Academy students that discussed the basics of

drilling. Several PESA members hosted high-GPA student externs from the Milby Petroleum Academy. Upon comple-

tion of the program, PESA hosted a gala night for the students and their families which featured presentations by

Houston Mayor Annise Parker and HISD Superintendent Terry Grier.

The committee also focused on higher education. The Rice University Energy Club held a discussion on oil and gas

production. Commenting on the event’s success, Bond said, “I’ve never received so many calls and emails as a result

of a single event—the students were excited to have us.” The committee also started a long-term relationship with the

University of Texas at Austin McCombs School of Business, which was kicked off by a discussion group on campus.

If ever there were a time to become involved in government and energy policy, it’s now. Numerous issues are

currently under discussion that could significantly impact the service and supply sector. It’s time to make our voice

heard. The PESA Executive Committee revived the Washington Fly-In for late February. Led by Halliburton’s Bob

Moran and Galen Cobb, this event presents a rare opportunity to meet and educate policymakers in Washington.

Members will have face-to-face meetings with several Congressmen, Senators, Senior Congressional Staff as well as

members of the U.S. Chamber of Commerce and other influential decision makers.

— Bill Coates

Schlumberger

PESA Chairman

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President’s Letter

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We have come a long way in the past 78 years. Looking back at our history is

an excellent gauge of what has been accomplished by our PESA member

companies and the Association.

Our members have developed the industry expertise that is a benchmark world-

wide. Their technological advancements have kept pace with those that have

allowed man to move from the earth to the moon and back again. Wells are drilled

thousands of feet below the surface of the ocean and special techniques are used

to pinpoint well placement. Recent developments have allowed the industry to tap

resources that have long been unrecoverable. The industry does this every day in

difficult and harsh locations to provide the energy required worldwide.

PESA has had the opportunity to benefit from this expertise. At its inception, PESA was specifically formed to be a

link between the U.S. government and the oilfield service, supply and equipment companies which provided the

necessary infrastructure needed to keep the US energy industry operating. We have moved from that point in history

to multiple activities that illustrate the vision and dedication of our volunteer leaders.

We are pleased to present our 2010 annual report which summarizes the highlights of our association year from

involving our members in mentoring and educating area students to providing energy education to government and

industry groups.

Any success we have experienced is due to our member company participation and their willingness to share their

expertise with us and others. We are grateful for the opportunity to work with our members on a day-to-day basis

throughout the year.

— Sherry Stephens

PESA President

Annual Meeting

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Uncertainty had been the order of the day for nearly two years. PESA member companies were looking for solid

ground in 2010, deciding whether the recoveries that had been made were sustainable and if that might correlate to

increased E&P activity. That prolonged uncertainty—and how to manage a business through it—was the theme for the

2010 Annual Meeting.

Economist and founder of 21st Century Forecasting, Don Reynolds, kicked off the meeting, suggesting that both the

stock and energy markets were set for growth. “I think we’re beginning to emerge from another round of a

lateral-moving economy. In the near term, I’m a raging bull and have invested everything. The Dow Jones will get

back to 12,000 and back off a little before elections. My view on energy is simplistic. We use 25 barrels per person,

India uses 2, and China uses 0.8 barrels. As their demand goes up, so do prices. So for the long term, I’m all in.”

A three-person panel discussed domestic land exploration and production from the independent producers point of

view. Richard Stoneburner, President and COO of Petrohawk Energy, says that when working in shale gas, one

needs to be clever, bold, aggressive, and have a lot of capital. But, the plays can be prolific and, “If you do your

homework and find the right position, it’s hard to pay too much for acreage in the large shale gas plays.” Lee

Boothby, President and CEO of Newfield Exploration, says that unconventional resources are a “great gift” to the

world. “Natural gas is the real bridge fuel. We need to get out there and educate in person—not in 15-second

soundbytes—and while we’re at it, ensure that young people understand there are great careers in energy.” And

Steven Mueller, President and CEO of Southwestern Energy, says that his company is looking for a repeat of the

success they found in the Fayetteville. They believe they’ve found it in New Brunswick, Canada’s Horton Group, a 200

to 600 foot-thick sandstone and shale reservoir with oil potential.

The second day of the Annual Meeting featured another three person panel that discussed international oil and gas

from the Supermajors’ perspective. Peter Coleman, Vice President, Americas for ExxonMobil Production Company,

says that North America is becoming more and more attractive. The company will spend about $125 billion in capital

investments over the next five years, about 22 percent in Canada and 15 percent in the U.S. Victor Obadiah,

President and CEO of Total E&P New Ventures, says that North America also is attractive for Total, but the company

prefers joint ventures. Among their recent investments is a $2.25 billion stake in Chesapeake Energy, which equates

to a 25 percent stake. And Marshall Adkins, Managing Director, Oilfield Services, Raymond James & Associates, says

that oil is poised for a strong and long-term recovery, while gas will hover at around $5. “Prices will move higher

based on deteriorating non-OPEC supply and falling excess OPEC capacity. The market must eventually ration

available oil by price, and that will begin within 2 to 3 years.”

Nearly 200 members and spouses attended the meeting, which includ ed a presentation on body language by Jan

Hargrave and entertainment by comedian Henry Cho.

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Washington Fly-In

PESA’s founding directive was to establish and maintain a working relationship with the federal government. This

year, the Association returned to its roots.

Sixteen executives flew into Washington, D.C. to meet and educate policymakers and make the service and supply

sector’s voice heard. PESA members met face-to-face with many lawmakers including Sen. David Vitter (LA), Rep. Doc

Hastings (WA), Rep. Steve Scalise (LA), Rep. Tom Reed (NY), and Rep. Kevin Brady (TX) in addition to a host of

Congressional staffers and industry leaders.

Overall, members found a receptive ear for service and supply companies in each visit, as well as coming away with an

education in the workings of Washington, D.C.

“The Fly-In has influenced me tremendously,” says Josh Lowrey (Sunbelt Steel). “I have always enjoyed politics and

business, but was a little naive on the politics of business. I have made contact with a few of my Pennsylvania,

Wisconsin, Oklahoma, Arkansas, Louisiana, Illinois and Ohio colleagues who I anticipate will join PESA and use the

association’s influence for the greater good.”

PESA Government Affairs Chairman Bob Moran says, “These meetings helped highlight some of the good things we

can accomplish as PESA members when we work together. There were many good ideas raised about special

projects and town hall activities that PESA may want to pursue. I look forward to examining these ideas and putting

some into practice.”

Much of the discussions focused on three areas: the permit logjam and its implications in the Gulf; potential fracturing

legislation; and a means of PESA becoming more involved in policy matters.

Though his state is engulfed in a natural gas fracturing moratorium, Rep. Tom Reed (NY) says that “Joe Public” and

many lawmakers are behind the industry.

“I think we have a receptive crowd in New York. We need to be firmly committed to a policy bringing domestic energy

supplies onto the table. We have a lot of work to do, but we’re standing with you on the energy issue … I look at the

Marcellus shale as a great opportunity for my district.”

Sen. David Vitter (LA) says that he is “focused like a laser beam on trying to break through this permit logjam in the

Gulf. We had some good news (that one permit was issued Feb. 28) and that’s progress. The real question is how

much will it accelerate. I’ll keep pushing in every way I know how. More than ever before, we need to produce as much

energy at home as we can, yet we’re doing the opposite.”

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Energy Educators

Since its inception last year, PESA’s newest committee is charging ahead. Energy Educators, backed by an annual

budget from the Executive Committee, hosted four large education events in addition to their Teacher of the Year

Award and work with local schools.

This summer was a preview of the oil industry in 2015 for 51 students and eight companies. For three weeks, students

from Milby High School’s Academy for Petroleum Exploration and Production Technology worked as externs with

industry companies, often attending executive meetings, testing equipment, and getting a sense of how the industry

operates. To qualify for participation in the externship program, students had to maintain a grade point average of at

least 3.0.

“It’s given kids a vision of the future and it’s the type of partnership that any organization ought to be very pleased

with—I know we are here at HISD,” says HISD Superintendent of Schools Terry Grier. “It’s critical to ensure that our

students are college or career ready. What this program does is opens windows to the future and exposes kids to jobs

and careers that frankly they’ve never thought of.”

Upon completion of the program, Energy Educators hosted an awards gala for the students and their families at

Brady’s Landing in south Houston. The gala’s featured speakers included PESA Past Chairman Galen Cobb

(Halliburton), Houston Mayor Annise Parker, and Terry Grier. Each student received a certificate of completion and a

$1,000 scholarship from the companies where they worked.

The companies that hosted externs this year are El Paso Corporation, FMC Technologies, Inc., Halliburton, Marathon

Oil, National Oilwell Varco, Schlumberger, Shell Oil, and Smith International.

The committee also hosted events at the university level. At Rice University, Energy Educators Committee Chairman

Pat Bond (Schlumberger) and Collin Gerry (Raymond James & Associates) gave an overview of drilling and the

industry as well as the current market outlook. Bond stressed that the upcoming manpower shortage equates to

excellent careers for driven graduates. The event hosted about 60 students from the university’s Energy Club. At the

University of Texas at Austin McCombs School of Business, Bond again delivered a mini Oil 101 and career lecture.

Twenty-five members of the school’s Finance Club attended.

Finally, the committee gave the second annual award for teachers in the IPAA energy academies. The award—dubbed

the PESA Teacher of the Year Award—is given to an energy academy teacher who exemplifies excellence in the

classroom. The award carries a $10,000 stipend, distributed to the teacher and his or her school. Bond presented the

award to Kimberly Myers of Westside High School at the IPAA annual meeting.

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Emerging Leaders

Now in its fourth year, the Emerging Leaders Committee is still growing. This year, the group attracted more than

700 members at four events.

The committee began the year with its fifth Executive Address Series featuring Robert Workman, Group President,

Distribution Services for National Oilwell Varco. He spoke about what it takes to be successful, to lead people, and

produce results in the oil and gas business. “I come to work with one purpose every day—to make my team success-

ful. That’s it. At the end of the day, leaders are there for everyone else,” says Workman. “You become a leader by

consistently producing extraordinary results—leading is producing results through others. If you’re leading and have

made your team successful, you’re successful and your career path will be unlimited.”

Next, the Emerging Leaders held its fifth class of the highly popular “Oil 101”. The course features experts from member

and industry companies outlaying the drilling process from geology to end-of-life reservoir issues. Speakers included:

James Geary, Geologist, Hess Corporation

Brian Hadley, Downstream Project Engineer, Mustang Engineering

Steve Jacobs, Principal-Market Intelligence, Decision Strategies, Inc.

Tom Kellock, Head of Consulting, Houston, ODS-Petrodata

Jamie Patrick-Maxwell, Field Development Manager, FMC Technologies, Inc.

Eduardo Proano, Advisor, Service Manager - Production, Schlumberger

David Reid, Global Accounts Vice President, National Oilwell Varco

Mark Teel, Client Relations & Technical Communications Manager, Schlumberger

Bob Tippee, Editor, Oil & Gas Journal

At the group’s third event for the year, the committee hosted Tony Bridwell—Area Vice President & Executive Facilita-

tor, Partners in Leadership—who presented The Oz Principle Accountability Training, which is based on the best-sell-

ing book of the same name. The training emphasizes communication and personal investment, culminating in four

best practices—See It, Own It, Solve It, and Do It. The event was held in the Toyota Center, and following the train-

ing, members enjoyed a Houston Rockets game.

Finally, a second Oil 101 class completed the year. Speakers for the event included:

James Geary, Geologist, Hess Corporation

Brian Hadley, Downstream Project Engineer, Mustang Engineering

Wes Heiskell, Vice President for Global Business Management – Fishing Tools, Schlumberger

Steve Jacobs, Principal-Market Intelligence, Decision Strategies, Inc.

David Reid, Global Accounts Vice President, National Oilwell Varco

Jamie Patrick-Maxwell, Field Development Manager, FMC Technologies, Inc.

Mark Teel, Client Relations & Technical Communications Manager, Schlumberger

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Foreign Service Officer Training

PESA has remained the training highlight of the year for Foreign Service Officers since 1992. Member companies

donate their time, personnel, and facilities to give FSOs a hands-on overview of the petroleum industry from production

to supply. In return, PESA member companies gain valuable, educated contacts in the FSO community—to date, the

program has trained more than 425 officers, who now operate in more than 40 countries around the world.

The eighteenth FSO class of 25 graduates hailed from the U.S. Departments of State, Energy, and Commerce. Their

current assignments range from Accra, Oslo, Baghdad, Lagos, Mumbai and more.

Highlights of this year’s FSO training included a classroom session with Steve Jacobs (Decision Strategies, Inc.),

Marshall Adkins (Raymond James & Associates), and Tom Standley (FMC Technologies, Inc); tour of a drilling rig at

Schlumberger; university sessions at Rice University and the University of Houston; an explanation of the latest

high-tech downhole sensors at Weatherford; a tour of Oceaneering’s new high-performance cable facility; a visit to FMC

Technologies’ production floor; plus a tour of Halliburton’s Security drill bit facility.

Each year, PESA hosts a reception and dinner allowing members to meet the new class of Foreign Service Officers—

well over 120 members attended this year. The dinner’s keynote speaker was Dan Pickering, Co-President and Head

of Research for Tudor, Pickering, Holt & Co., LLC. He discussed eight major issues facing the oil and gas industry now

and in the near future including shale gas, the Gulf oil spill, and Wall Street.

“Trading is very simple right now—it’s tightly correlated with economic sentiment, so if the stock market is up, oil also is

up,” says Pickering. “We’re not peak oil people, but we think that while oil supply can grow, demand can grow faster,

and that means price has to back out demand. Price will be bullish.”

Also affecting the price long-term is the Gulf oil spill. Prior to the spill, the area had 33 rigs running. While he says the

cut in production doesn’t matter in a macro sense right now, it will.

“We think oil will be $90 long term for three main reasons,” he says. “It isn’t easy to produce physically and politically,

we’re pushing out additional supply a little bit with the oil spill, and demand is growing faster than supply. We think $90

is where demand starts to throttle back.”

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Credit Interchange Division

Representing 49 member companies and divisions, the Credit Interchange Division is a unique PESA benefit. It’s a

vital, everyday business service for subscribers which allows its members to access current confidential ledger

experience, which helps to determine customer credit worthiness.

This year, CID received 39,000 requests for payment experience on more than 10,000 reports, representing over

44,000 ledger entries. The group added five new members this year: Pathfinder, Thomas Oil Tools, Hamilton Group,

Integrated Production Services, and Precision Drilling Company, LP.

The service also sponsored a three-day annual meeting held this year at the Omni Bayfront Tower in Corpus Christi.

The meeting featured three speakers—Richard Grant, a consulting psychologist from the McCombs School of

Business at the University of Texas at Austin; Bill Coates, PESA Chairman and Vice President, Sales & Marketing,

Schlumberger; and Phil Snow, a partner at Snow, Fogel, Spence LLP.

Coates says that North America was the story for 2010, and likely will be for the first half of 2011 as well. The

industry saw a dramatic rebound in the U.S. onshore, while internationally business was sluggish as all catalysts for

growth were trumped by geopolitical issues. The future of industry growth will be in liquid hydrocarbons and

condensates, such as the Eagle Ford play. “While there will be a lot of effort to keep classic oil production at current

levels, 70 percent of supply growth by 2020 is not going to come from classic oil.”

Snow says that credit managers need to regain the past power position in bankruptcies. He cited a litany of trends

working against oilfield service and supply companies such as spending without getting results, a lack of courtroom at-

tendance, and ceding control of the bankruptcy process to lawyers and accountants. As a remedy, he suggested get-

ting all title information despite the cost, finding law and accounting firms who work on an incentivized basis, and

credit managers thinking creatively to offer solutions in bankruptcies.

“You are well positioned to recover the type of rights that were uniformly asserted in the past, but you have to go

about it with a different attitude,” he says. “In bankruptcy, there are winners and losers, and you’ve lost sight of that to

appease parties along the way. Go out to win.”

Finally, Grant delivered a discussion on personality preference, saying that learning one’s type is key to team building

and understanding others. Using the Myers-Briggs Test, members focused on the personality preference and learned

about their opposites. He added that preferences are simply that—preferences, not edicts. If a person scores strongly

as an extrovert, it doesn’t mean that a person has no empathy for an introvert. It means that they have a preference

for communicating and centering themselves in an extroverted manner.

“If you and your opposite are both on a team and pulling together, you’re unbeatable,” he says. “But if types aren’t

pulling together, they’ll be adversaries, especially on time and money.”

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The Year in Review

Gulf Coast-Texas District Meeting

It’s safe to say that Randy Limbacher likes his company’s

chances in the Eagle Ford. He’s bet the company on it.

Limbacher, President and CEO, Rosetta Resources, Inc.,

took over the company a little more than three years ago.

He inherited a conventional gas company with presence in

the Gulf of Mexico, Sacramento Basin, and the Rockies.

Other than the logo, that company is gone.

Today, the company focuses on unconventional plays,

nearly exclusively in the Eagle Ford. Rosetta has a market

cap of $2.5 billion, produces 50.2 Bcf over 763 wells with

proved reserves of 479 Bcf.

The company holds about 415,000 acres, but focuses

nearly all of its $360 million spending on the Eagle Ford.

The reason, says Limbacher, is that the play is a game-

changer for small companies like Rosetta. “Inventory wise

in 2007, we had about 100 Bcf in reserves, which was only

two years of production,” he says. “Today in the Eagle

Ford alone we have about 2 Tcf of identified drillbit

projects.”

In 2010, the Eagle Ford generated close to $2.9 billion in

revenue, supported approximately 12,600 full-time jobs,

and provided nearly $47.6 million in local government

revenue. Over the next ten years more than 5,000 new

wells are expected to be drilled, generating more than

$21.5 billion in total annual economic output, supporting

roughly 68,000 full-time jobs in the area.

“It’s a world class reservoir. What’s amazing is that

regulators look at our industry and say the oil companies

are just fine—I don’t mind that, but we’re talking about

nearly 70,000 jobs in just one play and the impact on the

community is outstanding.”

In Rosetta’s Gates Ranch area, the company has 240

wells slated for drilling.

“To finish those wells, we have to spend another

$2.5 billion, and our market cap is only $2.4 billion right

now, so there are some challenges to financing,” he says.

“If everything turns out to be good and we develop

everything, we would need to spend $5 to $6 billion. These

are good problems to have.”

Finally, he added that among the major needs in the play

are huge capital investments, more rigs and stimulation

equipment, better water recycling technology, and health

and safety vigilance.

“I’ve worked at three companies with significant presence

in South Texas, and my experience on the safety side is

very good compared to other areas,” he says. “Last year,

we tripled our contractor man hours and our recordable

incident rate went down from 2 to 1.25. That’s a trend we

need to figure how to prolong.”

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Supply Chain Seminar

The 2010 Supply Chain Seminar featured three speakers:

EOG Resources Chairman and CEO Mark Papa; Raymond

James & Associates analyst Collin Gerry; and EnerVest, Ltd.

Executive Vice President and COO Mark Houser.

Papa says that the oil and gas industry’s successes are not

insular achievements—they’re a success story for the nation.

Key advances, particularly horizontal drilling, saved

$50 billion in energy costs due to lower natural gas prices as

well as providing 1 million barrels of additional domestic oil,

which reduces the importation of foreign oil by $29 billion and

creates thousands of jobs.

“In one state alone, the industry has raised production from

100,000 barrels to 500,000 in a relatively short time,” says

Papa. “The effect so far is that North Dakota is a bigger oil

producing state than Louisiana.”

The Bakken, of course, is not the only oily shale play.

“We believe that in our 500,000 acres in the Eagle Ford, we

have over 900 million barrels oil equivalent after royalty—

since most companies report before royalty, that’s over a

1 billion barrel oil discovery,” he says. “Nobody has found

1 billion barrels in the U.S. in 40 years excluding Prudhoe

Bay. We believe that the Eagle Ford will turn out to be the

sixth largest oil field in the history of the U.S. These plays are

game changers.”

Gerry says he expects 2011 to be a bull market for oil and a

bear market for gas.

“In the near term, oil markets will go up or down on anything

happening around the world—we call it headline risk,” says

Gerry. “In the long term, demand looks solid and supply

looks constrained, while the exact opposite is true for gas.”

Houser describes his company’s operating philosophy as a

used car buyer—they buy large numbers of operating wells

in mature fields, remediate as necessary, and resume

operations. He says that some excellent used cars are

coming up in the shales. The company spent $1 billion in

2010 to acquire a stronghold in the Barnett.

Simple economics swayed Houser and his team to stray into

shale. Production in the Barnett has increased from 243 to

383 Mmcf between 2008 to 2011, while expenses have gone

down from $1.99 to $1.62 per Mmcf.

“These wells provide strong cash flow with 97 million Mcf per

day with 400 wells,” he says. “All of the plots are held by

production and our lease operating expenses are about $226

million, half of which is people and the other half is services.”

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Membership Meeting

A dramatic shift in natural gas supply has finally given

the U.S. energy options, says Jim Hackett, Chairman

and CEO for Anadarko Petroleum Corporation and

Chairman of the American Natural Gas Alliance.

“I believe that natural gas is the right answer for our

country. It’s abundant, it’s domestic, and it’s affordable,”

he says. “The amount of gas that we have in place in the

U.S. is stunning and the abundance issue has become

important. It’s allowed the mainstream of our industry to

speak with conviction to policy makers and industrial

users and say, ‘We have the gas.’ It’s abundant and it’s

affordable with known technology.”

He says that the industry needs to speak with one voice

in the interest of expanding natural gas markets.

“The reason why renewables fail is that they’re neither

scalable or affordable. Natural gas has both going for it.

Independent studies show that with the shale resource

and technology that we have now, we can fulfill a

growing market over the next seven years at $5 to $8

per dekatherm, which equates to $30 to $48 per barrel

oil equivalent. We can produce a lot of natural gas and

serve new markets at an affordable price.”

Another great story for the industry is that natural gas

makes a real impact on the economy and jobs.

“We added 400,000 jobs to the U.S. economy between

2004 to 2008. We create 2.8 million total jobs and

contribute $385 billion to the economy and that’s just the

natural gas part. We’re seeing that many politicians who

thought they were coal state politicians are discovering

that they’re natural gas politicians.”

He says that transportation is much less of an immediate

issue for natural gas demand, but it’s at the heart of

psychology for America.

“I believe with all my heart that we should be driving nat-

ural gas heavy duty fleet vehicles. Every fleet with

centralized fueling in our country should be on natural

gas.”

The best place to begin conversion is fleet vehicles, he

says.

“If you look at heavy duty vehicles, they average 25,254

miles driven per year with a fuel economy of 6.2 miles

per gallon and consume 4,075 gallons of fuel. Consider

that at the high side of where natural gas might trade in

the next 7 years—$48 oil equivalent—is less than $2.50

a gallon. We’re pretty sure that diesel will be over $4 in

the near future so there’s a lot of savings with that kind

of fuel intensity.”

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Explorers Award

Reinvention can be a slow and tedious undertaking. For

most companies, charting a new overall strategy and

instituting change takes years, if not a decade.

But not at EOG Resources. Since Chairman and CEO Mark

Papa took the helm ten years ago, the company has been

successfully reinvented twice. EOG has shifted from a

conventional natural gas, to an unconventional shale gas

leader, to a first-mover in unconventional oil.

“Mark and his team have been able to not only reinvent the

company twice in the past decade, but consistently make it

more successful, productive, efficient, and technologically

driven,” says Charlie Jones (Forum Energy Technologies),

Chairman of the PESA Explorers of Houston Committee.

Together with Robert Workman (National Oilwell Varco) and

Galen Cobb (Halliburton), Jones selected EOG for PESA’s

2010 Explorer’s Award. The award is given annually to the

E&P company that has demonstrated excellence in

technological innovation and leadership in the industry.

Jones says that last year EOG was the epitome of agility,

inventiveness, and industry leadership. The company holds a

position of over 500,000 acres in the North Dakota Bakken,

and oil production in the region exceeded pipeline capacity.

“They designed and opened a rail transportation system to

transfer 60,000 gross barrels from a crude oil loading facility in

Stanley, North Dakota to an unloading facility in Stroud,

Oklahoma and then a 17-mile pipeline running from that point

to a terminal in Cushing, Oklahoma. That’s getting the job

done.”

Papa was on hand to accept the award for EOG, along with

Senior Vice Presidents Loren Leiker and Gary Thomas, as

well as Purchasing Director Doug Runkel.

“It would be easy to say that EOG was a first-mover and we

thought through all this and came up with these eureka

moments,” says Papa. “But the reality is that without the

advances in the service industry, EOG would have never

gotten there and neither would the rest of the industry. It

wasn’t EOG that invented that stuff. We just took what you

built and adapted it.”

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Legal Seminar

PESA’s 2010 Legal Seminar featured five speakers:

Pablo Ferrante, a partner with Mayer Brown LLP; Brad

Eastman, Associate General Counsel, Cameron; Jeffrey

Carr, Senior Vice President, General Counsel, and

Secretary, FMC Technologies, Inc.; William Jacobson,

Vice President, Co-General Counsel, and Chief

Compliance Officer, Weatherford International, Ltd.; and

David Beck, Co-Founder, Beck Redden & Secrest LLP.

Boland says that the much anticipated mergers of the

past several years never really panned out. Instead,

mergers in the service and supply sector have been

relatively few.

He says the drivers for the mergers that occurred—and

likely will occur in the future—all have common themes.

“Customers want more single source responsibility—they

want, for example, the entire completion operation under

one company,” he says. “A huge part of the

Schlumberger / Smith deal was getting Smith Bits.

Schlumberger wants to be able to offer the entire bottom

hole assembly.”

As Boland worked on the three largest recent mergers in

the service and supply sector, he discussed the lessons

learned from each.

Schlumberger / Smith—The merger had 20 potential

product or service overlaps, some of which were

significant. The initial view from the analyst report was

that it looked a lot like Halliburton and Dresser when they

combined. We assumed that there would need to be a

divestiture due to shared products in the LWD / MWD

space, but we received clearance in the same week from

the U.S. and European Commission. The deal went

through because we could show that Smith was not

particularly strong offshore in LWD / MWD. They were

strong in onshore gas fields, but the concern was

offshore.

Baker Hughes / BJ Services—The merger had only 15

overlaps, but many were significant. In the first three

months, most of them were resolved, but one remained

in sand control because we couldn’t find a fifth competitor.

We had data that the two were not direct competitors

and rarely if ever competed head to head in sand control.

But the companies pursued a divestiture to close as

quickly as possible, likely because Baker had negotiated

a good deal in buying BJ at a 17 percent stock premium.

Cameron / NATCO—Early on, it looked to the DOJ that

the companies had product overlap in more areas than it

didn’t—it’s all separation equipment. We urged the DOJ

to look at the demand side and spent months educating

the DOJ, saying that “no, that equipment doesn’t do the

same thing as that.” We got them down to a single piece

of equipment, a refinery de-salter. Instead of divesting,

the company sold an intellectual property license to an

aftermarket company. It took six months, but we closed

on time.

24

Manufacturers Committee Meeting

The 2010 Manufacturers Committee Meeting featured a

three-speaker panel that focused on exploring the latest

processes, thinking, and techniques employed by

successful businesses.

Chris Reinsvold, CEO of Decision Strategies, Inc.,

discussed risk management in oil and gas companies.

He suggested a quantitative model in analyzing risk

including five steps: identify the customer’s objective;

identify and quantify the uncertainties that may affect the

customer’s objective; identify the decisions that may

affect the customer’s objective; build an influence

diagram that describes how the uncertainties and

decisions affect the objective; and model results and

perform sensitivity analysis.

Michael Grojean, Professor in the Practice of

Management at Rice University, discussed effective

leadership in crises. He focused on a metaphor of

effective leadership based on Norman Maclean’s “Young

Men and Fire.” The book describes a systemic failure

among several layers of leaders that culminated in the

deaths of 13 smokejumpers in the Mann Gulch fire of

1949.

Finally, Steve Palagyi, Director and Partner at PRTM

Management Consultants, discussed building effective

customer-focused cultures. He stressed the importance

of co-creation, or working directly with suppliers for

optimal manufacturing. The process is based on the

premise of all stakeholders sharing experiences and

building platforms for ongoing engagement, dialogue,

and interaction.

25

Explorers Golf Tournament

Weather was once more on PESA’s side, yielding yet

another picture perfect day on Redstone Golf Club’s links.

More than just a great day of golf, the Explorers of

Houston Golf Tournament is a chief contributor for much

of PESA’s community involvement. Proceeds from the

event support the Explorers of Houston Award, the

Offshore Energy Center, the National Energy Education

Development Program, and IPAA’s Petroleum Academies.

For the twelfth annual tournament, thirty-three teams hit

the links at Redstone’s tournament course. The event was

chaired and organized by Committee Chairman Charlie

Jones, President and CEO of Forum Energy

Technologies, and sponsored by Gulf Publishing’s World

Oil, Schlumberger, GE Oil & Gas, Oil States International,

and Energy Alloys. Each player received a gift card for an

on-site Nike pro shop.

The tournament champions were Jerry Lastovica (Flexitallic),

Brian Vincent (Lake Charles Rubber), Keith Miller

(Flexitallic), and Craig Trosclair (Lake Charles Rubber).

Executive Committee

26

Bill Coates

Chairman

Schlumberger

John T. Gremp

Vice Chairman

FMC Technologies, Inc.

Chris Cragg

First Vice President

Oil States International, Inc.

Robert Workman

Immediate Past Chairman

National Oilwell Varco

Galen Cobb

Past Chairman

Halliburton

James B. Renfroe, Jr.

Treasurer

Wood Group Well Support

Paul Butero

Secretary

Baker Hughes, Inc.

Joseph C. Winkler

Gulf Coast District Chairman—Texas

Complete Production Services, Inc.

Gary Halverson

Gulf Coast District Chairman—Louisiana

Cameron

Paul Coppinger

Mid-Continent District Chairman

Circor Energy Products, Inc.

Charles Currie

Membership Chairman

Schlumberger

Charlie Jones

Explorers of Houston Chairman

Forum Energy Technologies

Robert L. Potter

Emerging Leaders Liaison


Pat Bond

Energy Educators Chairman

Schlumberger

Committee Chairmen

27

Corporate Counsel Advisory

Brad Eastman

Cameron

Credit Interchange Division

Ross Guthrie

Key Energy Services, Inc.

E-Business

Charles Currie

Schlumberger

Emerging Leaders

Edward Hemphill

GE Drilling Systems

Energy Educators

Pat Bond

Schlumberger

Executive

Bill Coates

Schlumberger

Explorers of Houston

Charlie Jones


Finance



Government Relations

Bob Moran

Halliburton

Health, Safety & Environment

A. J. Leuterman

M-I SWACO

Human Resources

Susan Webb


Lien Law

Jere Crean

Schlumberger

Manufacturers

Robert E. “Bob” Funk

Harbison-Fischer, Inc.

Membership

Charles Currie

Schlumberger

Quality

Gary Devlin

Drilling & Production Systems

Cameron

Service

Jeremy Thigpen

Downhole Tools & Pumping Solutions


Supply

Burk L. Ellison

Distribution Services


Financials

28

For many in the oil and gas business, 2010 was the year of mixed blessings.

Onshore drilling thrived, while offshore work ground to a standstill. Domestic activity

was positive on the whole, while many international markets struggled with

economic recovery.

PESA, on the other hand, had another very good year in terms of membership and

event participation. Leading the charge was Charles Currie (Schlumberger) and the

Membership Committee, which yielded 29 new member companies to PESA, near

an all-time high. Member dues, however, were down $17,854 for the year, totaling

$808,863. These are the aftereffects of the 2008 recession as well as some high-

profile mergers in the sector.

More than 2,200 members registered for the association’s seventeen public events. The largest draws this year were

the Mid-Continent District Meeting, the Gulf Coast-Texas District Meeting, the Membership Meeting, and two Oil 101

courses. Meeting revenue and expenses both increased for the year by 13 percent and 11 percent respectively.

Revenue increased to $549,022 from $484,913, and expenses increased to $323,462 from $292,340. The Credit

Interchange Division added five member companies for 2010 while usage fees remained the same.

In short, PESA is maintaining a strong member and revenue base as it provides an excellent value for member

companies. Another indication of the association’s strength is reflected in the financial results.

Operating revenues and expenses were relatively flat for the year—both increased by less than 5 percent—while

unrestricted net assets increased more than 12 percent. The increase in liabilities for the year is due to deferred 2011

membership dues and fees which were paid in 2010. PESA also realized a 22 percent increase in cash and

investment values due an increase in deferred income and realized and unrealized gains on the investment portfolio.

PESA is an association that has been supporting the industry for 77 years, changing with its membership and

constantly striving to add value for its members. From a financial standpoint, PESA is poised to be a force for the

industry for decades to come. The reason for that success is, of course, our member participation. Thank you all for

your ongoing support, and I look forward to seeing you at future PESA events.

— James B. Renfroe, Jr.


PESA Treasurer

Financial Overview

29

2010 2009 2008

Operating Revenue $1,945,045 $1,876,654 $1,843,071

Investment Activity $210,606 $376,268 ($377,885)

Total $2,155,651 $2,252,922 $1, 465,186

Expenses $1,815,721 $1,772,544 $1,781,313

Net Income $339,930 $480,378 ($316,127)

Assets $3,815,153 $3,097,773 $2,634,988

Liabilities $698,998 $321,548 $339,141

Unrestricted Net Assets $3,116,155 $2,776,225 $2,295,847

Cash and Investments $3,672,423 $2,995,386 $2,483,560

Employees 6 6 6

Member Companies 184 179 171

Board of Directors

30

At-Large

Robert R. Workman

Group President



David H. Barr

The Woodlands, Texas

Galen Cobb

Vice President - Industry Relations

Halliburton

Jack B. Moore

President & Chief Executive Officer

Cameron

Robert L. Potter

Executive Vice President


Craig Ketchum

McJunkin Red Man Corporation

George I. Boyadjieff

Villa Park, California

Sheldon R. Erikson

Chairman of the Board

Cameron

Loren K. Carroll

Smith International, Inc.

Rhys J. Best

Chairman of the Board &

Chief Executive Officer

Seren Management LLC

Peter D. Kinnear



Zeke Zeringue

Waggaman, Louisiana

Doug Rock

Houston, Texas

James L. Bryan

Houston, Texas

Max L. Lukens

Houston, Texas

Russell E. Ginn

Non Executive Chairman

Sunbelt Steel

Joseph H. Netherland


Jack Murphy

Dallas, Texas

Gilbert H. Tausch

Sugar Land, Texas

James D. Woods

Chairman Emeritus

Baker Hughes Incorporated

Robert H. Smith

Dallas, Texas

William E. Bradford

Dallas, Texas

Philip Burguieres

Vice Chairman

Houston Texans

Thomas H. Cruikshank

Dallas, Texas

J. W. Neely

San Juan Capistrano, California

W. C. Walker

Houston, Texas

J. E. Chenault

Houston, Texas

George A. Helland, P.E.

Senior Associate

Cambridge Energy Research Associates

J. C. Bergin

Houston, Texas

J. P. Harbin

Dallas, Texas

E. H. Clark, Jr.

San Clemente, California

Gulf Coast

Scott Bender

President

Wood Group Pressure Control

Pat Bond

Vice President - Business Development,

Drilling Tools & Remedial

Schlumberger

Paul Butero

President - US Land Region


John Carne

Executive Vice President, President -

Drilling & Production Systems

Drilling Systems

Cameron

Bill Coates

Vice President - Sales & Marketing

Schlumberger

T. Jay Collins


Oceaneering International, Inc.

Christopher E. Cragg

Senior Vice President - Operations


Mark E. Crews

Vice President & General Manager

Oilfield Division

Lufkin Industries, Inc.

Charles S. Currie

Vice President - Marketing & Sales

Systems

Schlumberger

Chad C. Deaton

Chairman of the Board,

President & CEO


Stephen M. Dillard

Vice President & GM - Oil & Gas

Business Unit

AmerCable Incorporated

Scott DuBois

President & Chief Operating Officer

Premier Pipe

31

Bryan Dudman

President

Smith Drilling & Evaluation


Brad Eastman

Associate General Counsel - Operations

Cameron

Jorge Goudet

President

Auge Industrial Fasteners

John T. Gremp



Gary Halverson

President

Surface Systems

Cameron

Pat Herbert

Group Chief Executive Officer

JDR Cable Systems

Will Honeybourne

Managing Director

First Reserve Corporation

Charles E. Jones

President

Drilling & Subsea


John Kennedy


Wilson

A Schlumberger Company

Michael Kowalski


Sunbelt Steel Texas

Christine McGee

Director - Marketing Services & Public

Relations

Weatherford International Ltd.

Neil J. Mendes

Senior Vice President -

Sales & Marketing

Greene, Tweed & Co.

M. A. (Pete) Miller, Jr.

President, Chairman & CEO


T. Duane Morgan

President

Engineered Products Group

Gardner Denver, Inc.

Daniel Newman

President

Norris Production Solutions

Douglas A. Polk

Vice President - Industry Affairs

Vallourec & Mannesmann USA Corporation

Dennis Proctor


Hunting PLC

Saeid Rahimian

Group President

Robbins & Myers, Inc. - Fluid

Management Group

Michael Read


Teledyne Oil & Gas


Chief Executive Officer & Group Director


J. Wayne Richards


Global Oilfield Services

Bruce Ross

Managing Partner

Dorado Energy Partners

Frank Smith

Vice President - Production Equipment

Valerus

Mike Stansberry


Global Energy Services, Inc.

Gary W. Stratulate


Axon Energy Products

Dave Warren


Energy Alloys

Jerry Winchester


Boots & Coots

A Halliburton Service

Joseph C. Winkler

Chairman & Chief Executive Officer


Jim Wright

Senior Vice President,

President - Valves & Measurement

Valves & Measurement

Cameron

Mid-Continent

Bradford S. Baker


Chickasaw Distributors, Inc.

Paul M. Coppinger

Group President


Robert E. "Bob" Funk

Senior Vice President & Managing

Director



Bob Greenwood

General Manager

Bestolife Corporation

Barry L. Pennypacker



Jack Rogers

President

Ferguson-Beauregard


C. Richard Sivalls

President

Sivalls, Inc.

Bob Weber

Area Sales Team Leader


PESA Member Companies

32

A&B Valve and Piping Systems, LLC

Kevin Bernard


Houston, Texas

AmerCable Incorporated

Stephen M. Dillard


Business Unit

Houston, Texas

AmerCable Incorporated - Oil &

Gas Division

Stephen M. Dillard


Business Unit

Houston, Texas

Aries Freight Systems L.P.

Jeff L. McIntyre


Houston, Texas

Auge Industrial Fasteners

Jorge Goudet

President

Houston, Texas

Austin White Lime Company

Oscar Robinson

General Partner

Austin, Texas

Axon Energy Products

Colleen Henneke

President

Houston, Texas

Aztec Tubular Products

Rip Martin

General Manager

Crowley, Texas


Paul Butero

President - US Land Region

Houston, Texas

Baker Hughes Completions and

Production

Neil Harrop

President

Houston, Texas

Baker Hughes Drilling and

Evaluation

Scott Schmidt

President

Houston, Texas

Baker Hughes Pressure Pumping

Lindsay Link

President – Pressure Pumping

Technology

Houston, Texas

Basic Energy Services

Mike Dye

Director of Financial Services

Midland, Texas

Bestolife Corporation

Bob Greenwood

General Manager

Dallas, Texas

Beta International Inc.

Bryan Leavitt


Houston, Texas

Boyden Global Executive Search

James N.J. (Jim) Hertlein

Managing Director

Houston, Texas

C&C Industries, Inc.

JoElla Bott


Houston, Texas

Force Energy Products

C&C Industries, Inc.

Jerry Brown

General Manager

Houston, Texas

Cameron

Jack B. Moore


Houston, Texas

Cameron

John Carne

Executive Vice President & Chief

Operating Officer

Houston, Texas

Cameron

Jim Wright

President - Valves & Measurement

Valves & Measurement

Houston, Texas

Cameron

Joe Mongrain

President - Process & Compression

Systems

Process & Compression Systems

Houston, Texas

Cameron

Owen Serjeant

President - Subsea Systems

Subsea Systems

Houston, Texas

Cameron

Gary Halverson

President - Surface Systems

Surface Systems

Houston, Texas

Cameron

Glen Chiasson

President - Drilling Systems

Drilling Systems

Houston, Texas

Capgemini

Randall A. Cozzens

Vice President

Irving, Texas

Carlson Capital LLC

James K. Wicklund

Principal

Dallas, Texas

Casedhole Solutions, Inc.

Don Gawick


Houston, Texas

Caterpillar Inc.

Wayne T. Zemke

Market Intelligence Manager - Marine

and Petroleum Power Division

Peoria, Illinois

Caterpillar Global Petroleum

Wayne T. Zemke

Market Intelligence Manager - Marine

and Petroleum Power Division

Houston, Texas

Chickasaw Distributors, Inc.

Bradford S. Baker


Houston, Texas


Paul M. Coppinger

Group President

Oklahoma City, Oklahoma

Cochrane Technologies, Inc.

Douglas A. Cochrane, Jr.


Lafayette, Louisiana

33


Joseph C. Winkler

Chairman & Chief Executive Officer

Houston, Texas

Integrated Production Services, Inc.


John Graham

Vice President Controller IPS US &

Mexico

Houston, Texas

Consolidated Pressure

Control, LLLP

Otto Windholz, Jr.


Houston, Texas

Control Risks

Eddie Everett

Senior Vice President - Global

Services

Houston, Texas

Decision Strategies

Chris Reinsvold


Houston, Texas

Decision Strategies

Steve Jacobs

Principal, Market Intelligence Group

Houston, Texas

Deutsche Bank

Sten Gustafson

Managing Director

Houston, Texas

Dorado Oil Services, LLC

David Douglas

President

Houston, Texas

Dupré Energy Services LLC

Cornelius Dupré


Houston, Texas

Endeavor Management

Michael T. Shook

Managing Director - Oil and Gas

Houston, Texas

Energy Alloys

Dave Warren


Houston, Texas

Enventure GT

Nyla Shepherd

Accountant

Houston, Texas


Peter D. Kinnear


Houston, Texas


John T. Gremp


Houston, Texas


Robert L. Potter


Houston, Texas

First Reserve Corporation

Will Honeybourne

Managing Director

Houston, Texas

Flexitallic Group, Inc.

Jerry L. Lastovica


Kingwood, Texas

Forged Products, Inc.

Kevin Crowley


Houston, Texas


C. Christopher Gaut


Houston, Texas


Drilling & Subsea

Charles E. Jones

President

Houston, Texas


Production & Infrastructure

Wendell Brooks

President

Houston, Texas


Production & Infrastructure – Valve

Solutions

Steve Twellman

President

Stafford, Texas


Valve Solutions - PBV USA

Maury Mills

Vice President - Sales & International

Sales

Stafford, Texas

GE Oil & Gas - Drilling &

Production

J. Wayne Wallace

Vice President - North America

Houston, Texas

GE Oil & Gas - Drilling Platform

Chuck Chauviere

Drilling Platform Leader

Houston, Texas


Barry L. Pennypacker


Quincy, Illinois


T. Duane Morgan

President

Engineered Products Group

Houston, Texas

Global Energy Services, Inc.

Mike Stansberry

President and Chief Executive Officer

Houston, Texas

Global Oilfield Services

J. Wayne Richards


Sugar Land, Texas

Global Tubing, LLC

C. Robert Bunch

Chairman of the Board & CEO

Dayton, Texas

Greene’s Energy Group, LLC

Robert P. Vilyus


Houston, Texas

Devin International, Inc.

Greene’s Energy Group, LLC

Robert P. Vilyus


Houston, Texas

Greene, Tweed & Co.

Neil J. Mendes

Senior Vice President - Sales &

Marketing

Houston, Texas

34

Gulf Publishing Company

John Royall


Houston, Texas

World Oil

Gulf Publishing Company

Ron Higgins

Publisher

Houston, Texas

GulfStar Group

Alan J. Blackburn

Managing Director

Houston, Texas

Halliburton

David J. Lesar


President & CEO

Houston, Texas

Hamilton Acquisitions, Inc.

Bruce Billeaud

Controller


Atlantis E&P Services, Inc.


Bruce Billeaud

Controller


Hamilton Engineering, Inc.


Bruce Billeaud

Controller


Petroleum Engineers, Inc.


Bruce Billeaud

Controller


Hart Energy Publishing

Richard A. Eichler


Houston, Texas

Holland 1916

Jim Stradinger

Executive Vice President - Sales &

Marketing, Partner

North Kansas City, Missouri

Houston Plating & Coatings, LLC

William H. Howard, Jr.

Chairman of the Board & CEO

South Houston, Texas

Hunting PLC

Dennis Proctor



Hunting Energy Services

Hunting PLC

Dennis Proctor



National Coupling (Hunting Subsea)

Hunting PLC

Gary G. Weathers


Stafford, Texas

JDR Cable Systems

Pat Herbert

Group Chief Executive Officer

Houston, Texas

JW Williams

Steven Russom

President

Waller, Texas

John Crane Production Solutions

Jackie L. Thomas

Vice President - Global Sales

Sugar Land, Texas

Kem-Tron Technologies, Inc.

Michael Rai Anderson, PE

President

Stafford, Texas

Key Energy Services, Inc.

Dick Alario


President & CEO

Houston, Texas

Lone Star Fasteners, LP

Stephen Cabral


Spring, Texas

Lone Star Sealing Technologies

Lone Star Fasteners, LP

Richard Cowen

Department Manager

Spring, Texas


John F. (Jay) Glick


Lufkin, Texas


Mark E. Crews


Oilfield Division

Lufkin, Texas

Mamé USA, LLC

Jason Moore

President

Houston, Texas

Forgiatura Mamé

Andrea Mamé

President & CEO

Cividate Camuno - BS, Italy

mcaConnect

David Huether

Vice President - Energy Solutions

Humble, Texas

Minco Inc.

J.B. Cheatham

Production/Sales Manager

Conroe, Texas

Morgan Keegan & Company, Inc.

Michael Chevalier-White

Managing Director

Houston, Texas

Nabors Well Services Co.

Robby Nelson

Director - Business Development &

Marketing

Houston, Texas

Nabors Drilling USA, LP

Lauri McDonald

Director of Credit - Houston

Houston, Texas

Ryan Energy Technologies

USA, Inc.

Louis Baddock

Accounting Manager

Houston, Texas

Superior Well Services, Inc.

George McNinch

US Credit Manager

Indiana, Pennsylvania


M. A. (Pete) Miller, Jr.

President, Chairman & CEO

Houston, Texas

35


Robert R. Workman

Group President


Houston, Texas


Jeremy Thigpen

Group President

Downhole Tools & Pumping Solutions

Houston, Texas


Joe McAnally

President - Coiled Tubing & Wireline

Group

Hydra Rig

Fort Worth, Texas


David Daniel

President

Quality Tubing

Houston, Texas


Haynes Smith

Group President

Services

Houston, Texas

Nedschroef Corporation

Jack Kulasa

President

Spring, Texas

Newpark Resources, Inc.

William D. Moss

Vice President - Strategy &

Development


Newpark Drilling Fluids, LLC

Joe Gocke

Vice President - Finance & Planning

Houston, Texas

Newpark Environmental Services,

LLC

Jeff Juergens

President


Newpark Mats & Integrated

Services, LLC

Jeff Juergens

President



Daniel Newman

President


C-Tech


Mark Widney

President & Managing Director

Edmonton, Alberta, Canada

Ferguson-Beauregard


Jack Rogers

President

Tyler, Texas



Robert E. “Bob” Funk

Sr. Vice President and Managing Director

Crowley, Texas

Norris/AOT


Daryl Harrington

President & Managing Director

Tulsa, Oklahoma

Norriseal


Jack Lee

Sr. Vice President and Managing Director

Houston, Texas

OFS Portal LLC

William (Bill) Le Sage


Houston, Texas

Oceaneering International, Inc.

T. Jay Collins


Houston, Texas


Christopher E. Cragg

Senior Vice President - Operations

Houston, Texas

Oil States Industries, Inc.


Charles Moses

President

Arlington, Texas

Sooner Pipe, LLC


John Shoaff

President

Houston, Texas

Omni Pipe Solutions

Gary B. Wade, Sr.


Houston, Texas

Oracle

Matt Pitner

Area Vice President - Energy

Houston, Texas

PRTM Management Consultants

Marc Waco

Director

Addison, Texas

PPHB

Raymond L. Brown, Jr.

Partner

Houston, Texas

PennWell / Oil & Gas Journal

Roy L. Markum

Vice President - Custom Publishing

Houston, Texas

Pioneer Drilling Company

Stacy Locke


San Antonio, Texas

Pioneer Production Services, Inc.

Joe Eustace

President

San Antonio, Texas

Pipeco Services

David Schott

President

Houston, Texas

Plains Marketing, L.P. - Trucking

Division

Mike McBride

Financial Services Director

Houston, Texas

Precision Drilling Company L.P.

Gene Stahl

President

Houston, Texas

36

Premier Pipe

Scott DuBois


Houston, Texas

RBC Capital Markets

Shauvik Kundagrami

Co-Head of U.S. Energy Investment

Banking

Houston, Texas

RPC, Inc.

Allyson Lyons

Credit Manager

Houma, Louisiana

Cudd Pressure Services

RPC, Inc.

Clint Walker


Atlanta, Georgia

Patterson Services, Inc.

RPC, Inc.

Jim Daniel


Houston, Texas

RYCO Energy Solutions, Inc.

Wolfgang H. Thoene

President

Houston, Texas

Raymond James & Associates, Inc.

Scott McNeill

Managing Director – Investment Banking

Dallas, Texas

Robbins & Myers, Inc. - Fluid

Management Group

Saeid Rahimian

Group President

Willis, Texas

R&M Energy Systems

A Robbins & Myers Company

Saeid Rahimian

Group President

Willis, Texas

T-3 Energy Services, Inc.

A Robbins & Myers Company

Saeid Rahimian

Group President

Willis, Texas

SCF Partners

Andrew L. Waite

Managing Director

Houston, Texas

Schlumberger

Bill Coates


Paris, France

GeoServices


Steve Kaufmann

President

Roissy, France

M-I SWACO


Steve Orr

President

Houston, Texas

Smith Bits


Guy Arrington

President, Bits & Advanced Technologies

Houston, Texas

Smith Services


Bryan Dudman

President, Drilling Tools and Remedial

Houston, Texas

WesternGeco

Carl Trowell

President

Gatwick, United Kingdom

Wilson


John Kennedy

President

Houston, Texas

Scientific Drilling International, Inc.

Gene Durocher


Houston, Texas

Scientific Drilling Controls

George Moir

Vice President

Dyce, Aberdeen, Scotland

Scientific Drilling International,

Inc.- Canada

Jeffry Wilson

General Manager

Calgary, Canada

Select Energy Services, LLC

Debbie Burgess

MSA/Insurance Administrator

Gainesville, Texas

Shores-Sentry LLC

Mark Burris

President

Wichita, Kansas

Simmons & Company International

Matt G. Pilon

Managing Director - Corporate Finance

Houston, Texas

Sivalls, Inc.

C. Richard Sivalls

President

Odessa, Texas

Spencer Stuart

Brad Farnsworth

Partner

Houston, Texas

Stallion Oilfield Services Ltd.

Craig M. Johnson

Chief Executive Officer & President

Houston, Texas

Salty’s Disposal Wells


Craig M. Johnson


Houston, Texas

Stallion Offshore Quarters


Craig M. Johnson


Houston, Texas

Stallion Oilfield Construction


Craig M. Johnson


Houston, Texas

Stallion Production Services


Craig M. Johnson


Houston, Texas

Stallion Rockies Ltd.


Craig M. Johnson


Houston, Texas

Stallion Solids Control


Craig M. Johnson


Houston, Texas

37

Sumitomo Corporation of America

Takashi Naniwa

Product Manager

Houston, Texas

Sunbelt Steel Texas

Michael Kowalski


Houston, Texas

TETRA Technologies, Inc.

Geoffrey M. Hertel



TIW Corporation

Steve Pearce

President

Houston, Texas

Teledyne Oil & Gas

Michael Read


Daytona Beach, Florida

Tenaris

Jon Barton

Director - Technical Sales, USA

Houston, Texas

Texas Steel Conversion, Inc.

Brian M. Binau

President

Houston, Texas

Tidewater Inc.

Dean E. Taylor


President & CEO

New Orleans, Louisiana

U. S. Steel Tubular Products

George H. Thompson

Vice President - Commercial

Pittsburgh, Pennsylvania

U. S. Steel Canada Tubular

Products - Calgary

George H. Thompson



U. S. Steel Tubular Products -

Houston

George H. Thompson



UBS Investment Bank

Leeds Eustis

Vice President - Investments /

Advisory & Brokerage Services

Houston, Texas

Utex Industries, Inc.

Stacey Buckingham

Administrative Assistant

Houston, Texas

Valerus

Frank Smith

Vice President - Production

Equipment

Houston, Texas

Vallourec & Mannesmann USA

Corporation

Douglas A. Polk

Vice President - Industry Affairs

Houston, Texas

V&M Star


Corporation

Ronny Clark

Sr. Vice President - Sales

Houston, Texas

V&M Tube Alloy


Corporation

Grady Harrison

President

Houston, Texas

VAM Drilling


Corporation

Kevin Parks

Vice President Sales - Americas

Houston, Texas

VAM USA


Corporation

Ron Curtice

Vice President - Sales

Houston, Texas

Vortex Ventures, Inc.

Dalton Thomas


Houston, Texas

Weatherford International Ltd.

Bernard J. Duroc-Danner


President & CEO

Houston, Texas

Weir SPM

Gavin Nicol

President

Fort Worth, Texas

Wells Fargo Energy Group

Bret C. West


Houston, Texas

Wheatland Tube Co. - Energy

Products Group

Geoffrey O’Donnell

National Sales Director

Houston, Texas

Wood Group Pressure Control

Scott Bender

President

Houston, Texas

Wood Group ESP, Inc.

Brian Sevin

Vice President - North American

Operations

Houston, Texas

Wood Group Logging Services, Inc.

John Paul Jones

President

Houston, Texas

Past PESA Chairmen

38

1933-1934

W. L. Childs

Reed Roller Bit Company

1934-1935

J. A. Crawford

Republic Supply Co. of California

1935-1936

J. A. Geismar

National Supply Company

1936-1937

W. J. Morris

Continental Supply Company

1937-1938

John M. Crawford

Parkersburg Rig & Reel Company

1938-1939

J. L. Shakely

Jones & Laughlin Supply Company

1939-1940

E. S. Dulin

Byron Jackson Company

1940-1941

E. W. Gildart

Norvell Wilder Supply Company

1941-1942

Earl W. Miller

American Iron & Machine Works

1942-1943

F. F. Murray

Oilwell Division - US Steel Corporation

1943-1945

Fred J. Sprang

Sprang & Company

1945-1947

Hugh Glen

Emsco Derrick & Equipment Company

1947-1948

Ardon B. Judd

Republic Supply Company

1948-1949

A. W. McKinney

National Supply Company

1949-1950

Guy A. Thompson

Bethlehem Supply Division

1950-1951

Ted Sutter

Baker Oil Tools, Inc.

1951-1952

F. M. Mayer

Continental Supply Company

1952-1953

Mason B. Jones

S. M. Jones Company

1953-1954

D. D. Bovaird

Bovaird Supply Company

1954-1955

Rodney Durkee

Lane-Wells

1955-1956

M. E. Montrose

Hughes Tool Company

1956-1957

Rainey Elliott

Jones & Laughlin Supply Company

1957-1958

Grover Kilgore

Halliburton Company

1958-1959

W. J. Powell

Continental Emsco Company

1959-1960

W. O. Wilson

Wilson Supply Company

1960-1961

E. A. Johnson

Schlumberger Well Services

1961-1962

W. H. Larkin

Larkin Packer Company

1962-1963

W. J. McWilliams


1963-1964

H. H. Peters

Technical Oil Tool Company

1964-1965

A. W. Rose

Byron Jackson Pump Division

1965-1966

M. F. Hazel

Oilwell Division, US Steel Corporation

1966-1967

A. C. Polk

Dowell Division, Dow Chemical Co.

1967-1968

W. J. Bovaird

Bovaird Supply Company

1968-1969

P. L. Myers

Hughes Tool Company

1969-1970

John B. Meritt

Byron Jackson Pump Division

1970-1971

R. C. Rieder


1971-1972

B. R. McNulty

Dia-Log Company

1972-1973

R. E. Etnyre

Machinery & Equipment Division - Armco

1973-1974

E. H. Clark, Jr.

Baker Oil Tools, Inc.

1974-1975

J. P. Harbin

Halliburton Company

1975-1976

J. C. Bergin


1976-1977

George A. Helland, Jr.

Weatherford International, Inc.

1977-1978

E. J. Hagstette

Camco, Inc.

1978-1979

J. E. Chenault

Oilwell Division - US Steel Corporation

1979-1980

James R. Lesch

Hughes Tool Company

39

1980-1981

Ralph W. Noble

Milchem, Inc.

1981-1982

W.C. Walker

Mid-Continent Supply Company

1982-1983

J. W. Neely


1983-1984

Lee A. Drake


1984-1985

T. H. Cruikshank

Halliburton Company

1985-1986

E. C. Broun, Jr.


1986-1987

Philip Burguieres

Cameron Iron Works, Inc.

1987-1988

W. E. Bradford

Dresser-Rand Company

1988-1989

Robert H. Smith

National-Oilwell

1989-1990

James D. Woods


1990-1991

Gary D. Nicholson

LTV Energy Products Company

1991-1992

Gilbert H. Tausch

Camco International, Inc.

1992-1993

Dale P. Jones

Halliburton Company

1993-1994

Jack Murphy

Dresser Industries, Inc.

1994-1995

Joseph H. Netherland

FMC Corporation

1995-1996

Russell E. Ginn

The Flexitallic Group, Inc.

1996-1997

Max L. Lukens


1997-1998

James L. Bryan

Dresser Industries, Inc.

1998-1999

Doug Rock

Smith International

1999-2000

Zeke Zeringue

Input/Output, Inc.

1999-2000

Peter D. Kinnear


2000-2001

Rhys J. Best

Lone Star Technologies, Inc.

2001-2002

Loren K. Carroll

M-I L.L.C.

2002-2003

Sheldon R. Erikson

Cameron

2003-2004

George I. Boyadjieff

Varco International, Inc.

2004-2005

L. Craig Ketchum

Red Man Pipe & Supply Company

2005-2006

Robert L. Potter


2006-2007

Jack B. Moore

Cameron

2007-2008

Galen Cobb

Halliburton

2008-2009

David Barr


2009-2010

Robert Workman


Anti-Trust Statement

The objectives and activities of the Association shall at all

times comply with the applicable laws of the United States

of America, its states and local jurisdictions. This

compliance shall include strict adherence to the

requirements of all antitrust laws including the Sherman

Act, the Clayton Act, and the Federal Trade Commission

Act as currently enacted. All members and their

representatives are responsible for adhering to these

requirements and avoiding even the appearance of

impropriety in the way their activities are conducted.

In order to effectuate the foregoing policy, PESA

established guidelines for the conduct of its members

during conferences, meetings, and conventions which shall

be strictly adhered to by each member and their

representatives. If questions arise as to whether a

proposed course of conduct complies with the law and this

policy, guidance shall be sought from the Chairman,

President, or Corporate Counsel Committee of PESA.

Approved by the PESA Board of Directors

April 22, 1988

Documents

2011 PESA Annual Report