January 2014 Issue

VOLUME 2 NO. 1FREE JANUARY 2014

• U.S. RIG COUNT • TOP 35 Drillers & Operators

Industry Data | News | Events | Auctions | Calendar | Travel | Tips | Energy | Tech

2014 - New YeAR, New YOU

12COmpRessed AiR dRilliNg

CUTS COSTS

28

18

BLUE CHRisTmAs

11

8 TipsFOR plANNiNg YOUR smAll BUsiNess

8

YOUNg COUple Relies ON ROOTs TO sTART CAsiNg

COmpANY w

ww

.PB

EM

ag.co

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2 PERMIAN BASIN ENERGY MAGAZINE | www.PBEMag.com | JANUARY 2014

3JANUARY 2014 | www.PBEMag.com | PERMIAN BASIN ENERGY MAGAZINE

www.PBEMag.com

To Advertise call

(432) 559 - 5886

or email

[email protected]


OThER EDITORIALS

12 8 Tips for Planning your Small Business

17 Calendar of Events

23 Changes could bring Oil Boom to Mexico

25 Safety Tips

26 Conferences in January - February

27 Upcoming Auctions

28 2014 - New Year, New You

32 Festivals and Events in Texas

34 PBE Cares - A Magical Christmas

36 Tech Bites - Big Idea for 2014: Big Brother Becomes a Recruiter

38 PBE News Briefs: Basin, Offshore, State, World, Nation & Shale

42 Restaurant Bites - Mr. BROOKS BBQ

44 PBE Inspires - Create the Community you Crave

46 By The Numbers: Texas Rig Count, Top Drillers, Top Operators

49 This Month in Petroleum

CONTENTS

PBE FEATURES

8 Young Couple Relies on Roots to start Casing Company

11 Blue Christmas

18 Compressed Air Drilling Cuts Costs

JANUARY 2014

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18

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LETTER FROM

ThE EDITOR

The Robertson family has been getting even more attention than usual in recent weeks after father Phil Robertson gave some personal opinions to a magazine editor that sparked a firestorm of media coverage. Despite what was said and what was meant, I find it upsetting that the personal views of some are being increasingly attacked while the personal views of others are praised.

Freedom of speech and personal belief seems to be more and more drowned out by the pressure to believe and feel a certain way or face social isolation. I realize not everyone is always going to agree with my personal thoughts and beliefs and that’s ok; but it remains my right to believe what I know to be true. One thing I feel very strongly about is the importance of family and how the breakdown of the family unit is causing more and more emotional problems for adults and children alike.

In this month’s issue of PBE magazine, you’ll hear from local counselors about how even in a boom, when money is plentiful, families are struggling to maintain healthy and happy relationships. The stress of longer work days and the pressures of more money are causing more strain on couples and children as they try to navigate life with shifted priorities. You’ll also learn about a new Casing company started by a 3rd generation oil patch kid who wants to bring the family-style business back to the fields. A local BBQ restaurant is also going strong because of their family roots, family style atmosphere and family recipes that people seem to crave these days. Finally, you’ll read about how a local community rallied around one family facing a tragic time during the holidays and went to extraordinary measures to bring them a magical Christmas.

The Robertson family has all backed their patriarch, Phil during his public attacks because at the core of who they’ve always said they were is a family who sticks together; a family who believes in God and cherishes the importance of their time together in this world. At the end of the day, I believe that no matter what political party or religious affiliation you may have, we all just want to come home to a family that loves us and will stick with us through thick and thin. No man is an island and no man should have to live this life on his own without the beauty of a loving family by his side.

Carlos MadridEditor in Chief/[email protected]

“I think our problem is a spiritual one. Where there is no Jesus, evil always reigns.”

- Phil Robertson

/PBENERGYMAG

@PBENERGY


VOLUME 2 NO. 1

EDITOR IN CHIEF/PUBLISHERCarlos Madrid [email protected]. 559. 5886

ART DIRECTOR/LAYOUT & GRAPHICS Luke PawliszynLukasz Design StudioWest Hollywood, [email protected]

Copyright © 2013 Permian Basin Energy, Inc. • Mad Ads Media All rights reserved. Reproduction in whole or in part without the written permission of PBE MAGAZINE, LLC is strictly forbidden. The greatest care has been taken to ensure the accuracy of information in this magazine at time of going to press, but we accept no responsibility for omissions or errors. PBE Magazine welcomes any comments, feedback, suggestions, and/or submissions for consideration for publication. These may be submitted to: [email protected].

PBE MAGAZINE CONTACTS

SUBMISSIONSSubmit story ideas & other news [email protected]

ADVERTISINGFor advertising info call 432. 559. 5886 or email [email protected]

PUBLISHED BY: PBE Magazine, LLC.Permian Basin Energy Magazine4500 Erie DriveMidland, TX 79703Main Phone: 432. 559. 5886

www.PBEMag.com

EDITORIAL CONTRIBUTORS

AUDRIE PALMERFREELANCE WRITER

Midland, TX

[email protected]

DANIEL STEPHENSSENIOR PASTOR

Mid-Cities Community Church

Midland, TX

[email protected]

KATHY MOORHOUSEFREELANCE WRITER

(432) 522-7806

[email protected]

MATT RISTCBS 7 NEWS

[email protected]

IRIS FOSTERWRITER



The career advice was a familiar local one: Go into the oil business. More specifically: Run casing.

“I started and I never looked back,” he said.

Gordy, age 27, is a third generation oil worker who worked his way up from being the last floor hand to up on a derrick and the boss in six years. In May, he and his wife decided to start their own casing company, something they’re keeping locally-owned and family-operated to set them apart in the competitive business.

Good As Gold Casing Services came about when Gordy was working for another casing company and after finishing a job, realized he had been shorted pay when he got his check. One of his hands told him, he should open his own business.

“But what would we call it?” he asked.

“Good as Gold,” someone suggested and from there, they ran with the idea, designing the logo and business around the name.

But starting your own business is not that easy Gordy and his wife Brooke came to find out. For months they looked for an investor until Brooke suggested her husband ask her father Steve Hooper, owner of AmeriFlush, if he would consider sponsoring the business.

Hooper and friend Lonnie Lawrance then invested more than $300,000 so Gordy could purchase equipment to get started. A set of casing tongs can cost anywhere from $25,000 to $100,000, Gordy said, depending on the size and model type. And getting the business incorporated and insured added additional expenses.

But two months ago, the couple took their first job and started their dream career and business.

Ask David Gordy what he wanted to do when he grew up and the answer may surprise you. In school, Gordy said, he thought about going into oceanography and studying sharks. But after he graduated high school, he said he was looking to make money immediately and asked his dad what the fastest way was to make a lot of it.

by Audrie Palmer

Young couplerelies on roots

to start casing

companY


“I was nervous,” Brooke Gordy said about the new business venture. “But I knew he (David) could do it so I wasn’t too worried about it.”

The 26-year-old wife works as the office manager and handles the paperwork for the business while David works in the field making sales.

The Gordys said they wanted the business to be a family-centered one and that many times, you’ll find the crew’s kids and families in the office and sometimes even their dogs.

Casing, David said, is one of the top three hardest and most dangerous jobs in the oil field. While roughnecks may work on the same rig every day for up to a year, those working casing are constantly on call and changing rig locations as well as the different variables and factors when working on site.

That’s why, he said, he needed to have a variety of equipment to get the business started or else no one would take them seriously. What they don’t have, they rent tools from a local company in the area, he added.

But most importantly, in the oil business, Gordy said it’s not what you know but who you know. There are few casing companies currently in the Permian Basin, but in the last three months, four other businesses have opened besides Good As Gold.

“There’s so much competition and you can get outbid. If you know somebody, you get them to give you a shot,” he said.

For Gordy, what’s helped him succeed is that he is a third generation oil field worker and that his grandfather and father have built a reputation around their family name.

His grandfather, D.W., has been a driller, tool pusher and shop foreman for decades in West Texas. His father, Rodney Gordy, worked as a consultant for 13 years, a superintendent for four years and is back as a consultant again.

What Gordy says he striving for in his business is being there for his clients.

“The most important thing is customer service. Safety is number two and being fast and efficient,” he said.

“Whenever a third-party company comes in, they pay by the hour and we want to do it in the most timely manner so we’re not costing them any more money than we need to.”

In the past two months, Gordy has had about 25 jobs and said he’s only missed a few with the birth of their baby in early December. He’s there at the site the whole time and watching to see if anyone needs anything.

“I want it to be like we’re taking care of them and that they’re happy to see we’re there,” he said.

On location, you might find Gordy barbecuing to make sure everyone has enough to eat or calling to find out if there’s anything he can bring – like a toothbrush – when he’s on his way.

He’s looking to build relationships and get the oil rigs back to the older way of doing things like they used to be. Like when his father and grandfather told him it once was and that they’ve kind of gotten away from that.

In November, on Thanksgiving, Gordy and his crew worked a job and one of his employee’s mothers cooked a Thanksgiving dinner which they brought with them and fed everyone out at the site.

It’s doing things like that that Gordy said he hopes will set them apart from other casing companies.

“We want them to know that they’re helping us out and we appreciate it,” he said.

For now, Gordy said he hopes that they’ll be able to take on more jobs to where they can purchase additional equipment and bring on more crews to work for them.

There’s another company in the area that Gordy said the owners were also a married couple and about he and his wife’s age when they founded the now successful business.

“I told Brooke before that they did it,” he said. “This is the biggest opportunity we can ever get and the chance to have anything we ever need if we do it right.

“There are other casing companies out there that bring in $25 million a year in profit. From here on out, we’re just growing.”


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Canvassing area counselors led to interesting viewpoints. Therapist Cheryl Harrah-Willoughby, LPC, at Samaritan Counseling Center, stated that some clients with more money who are working longer hours are in danger of having substance abuse issues. Her caseload of children decreased in December, she said, and one reason was that “during the holidays, families as a whole became more stressed, routines were changed, and schedules became busier. With the time demands of the season and added holiday festivities, the focus on therapy for children may be lost for the time being.” However, she noted a sharp increase in appointments following the new year as school resumed and families regrouped. Clinical Director Patrick Ramsey, LPC-S, agreed that the couples he’s seen recently, many of whom are involved in the energy industry, had exceptional issues to resolve.

By contrast, LPC Becky Cagle is Samaritan’s expert on post-traumatic stress disorder (PTSD), and she had several less-frequent clients request weekly appointments due to memories of loss during past holidays. “The first Thanksgiving and Christmas without a loved one or, for our military clients, the November train tragedy anniversary was hard to get past,” she said.

Jim May, Ph.D., director of the Family Wellness Center, wrote in the December 15, 2013 issue of The Midland Reporter-Telegram, “these days, financial pressures are often a significant source of depression in the face of plenty and the expected purchase of even more.” He listed overspending as a source of holiday unhappiness as well as comparing this year with past years. Linda M. Bacigalupi with the Foundation for Urban and Neighborhood Development in Denver and William R. Freudenberg with the Dept. of Sociology at Washington State University have been studying the populations of energy boomtowns with respect to mental health services usage.

“While energy-related persons account for a substantial portion of the service demand, their use of mental health services is not disproportionately high for their relative population numbers, nor are their problems more severe than those of their non-energy counterparts,” they wrote in Scientific Paper Number 6357, Agricultural Research Center, Washington State University.

BlueCHRISTMASIn this land of oil riches, it’s hard to imagine that co-workers, neighbors, and maybe family members had a blue Christmas and didn’t enjoy the holidays this year. Was it too much of a good thing? Too many temptations? Or long hours at work coupled with unresolved feelings toward family?

The holiday blues were not an epidemic in the Permian Basin, they’ve passed now, and here’s to a healthy mindset in 2014!

by Iris Foster


Issues related to marketing are top-of-mind for small business owners going into the New Year. In fact, according to Yodle‘s recently released First Annual Small Business Sentiment Survey, 42% of small business owners said they are worried about finding new customers, making it their #1 overall concern. Additionally, 33% of small business owners surveyed said that keeping their current customers is a concern (#3 overall), while 21% of owners cited their competition as something they worry about (#6 overall).

As we can all attest, 2013 was a year in which consumers increasingly adopted new technology, search and review tools and social media channels to help drive their path to purchase. This was also a year in which a variety of new marketing tools were introduced that make it easier

for small businesses to reach and convert consumers in the places where they are increasingly searching.

Yet, despite small business owners’ concerns about effectively marketing their businesses, many are not making the necessary investments to adapt to today’s fast-paced and changing environment. While the consequences of inaction may seem small now, they will only become greater in the future, threatening the stability and growth of small business owners’ operations.

As you plan for 2014, make your New Year’s resolution to review the 8 simple tips below for building a better marketing strategy for your business — one that puts your customers first and your business second-to-none.

While the holiday season is undoubtedly a busy period for small business owners, it’s important to set aside time to plan your marketing strategy for the year ahead. How will you continue to maintain and grow your business in 2014? What plans do you have to keep your business on track and stay ahead of the competition?

FOR plANNiNg YOUR smAll BUsiNess’ 2014 mARkeTiNg sTRATegY8 T

IPS

Source: Wesley Young on www.searchengineland.com

Develop A Realistic Forward-Looking Marketing Budget

It’s time to put your money where your mouth is. Small business owners today cite customer attraction and retention as two of their most pressing concerns, but many set aside minimal budgets for marketing.

In fact, 1 in 4 small business owners report that they don’t spend any money on marketing, while just over half (56%) spend less than $500 a month. In other words, only about a quarter of business owners spend more than $500 per month on marketing.

Make this the year that you corner off a larger, more flexible budget to tackle new marketing opportunities to better adapt to today’s fast-changing marketplace. I’m not saying you should break the bank allocating funds to marketing. What I do recommend is that you make strategic investments on marketing offerings that better position your business in places where consumers are increasingly going to research products or services and make purchases.

Return-on-investment should be the key factor by which you measure your marketing efforts. However, be sure to give your business the flexibility to try out new marketing opportunities and ideas to see if they stick.

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There’s no doubt in my mind that any business keeping with a status quo of limited marketing in today’s changing environment will only hurt their bottom line — and not just in the short run. Small businesses should be making smart investments so they are well-positioned to attract consumers now and in the future.

Build A Simple & Effective Website

The website is the central component of any business’ digital strategy; it’s how your current and potential customers can most easily find and connect with you. Given its key role, it’s astonishing that more than half of small businesses owners (52%) said their business does not have a website, according

to the Yodle survey.

Make your website a priority this year. Whether you’re just building your website now or looking to improve the one you have, keep these key things in mind moving forward:Make Contact Information Visible & Consistent: Incorporate your business’ contact information (phone number, address, email address, etc.) throughout your site, not just in your About Us or Contact Me section. Ensure that your contact information is consistent with what you have included on online business listing websites.

Design An Appealing, Easy-To-Use Interface: Invest in a contemporary website with a visually appealing color scheme and straightforward navigation. It will not only make your website more attractive and seamless to navigate, but will also reflect on the professionalism of your business. Be careful about using features such as Flash which may negatively impact your site’s search ranking potential and which don’t load on some smartphones.

Use Defining & Searchable Keywords On The Front & Backend: In drafting content for your website, be sure to incorporate keywords that consumers will most likely use when searching for your products and services. Ensure that your web designer incorporates these keywords into anchor text in page URL links and adds keyword-specific titles, descriptions and tags to videos posted on your website.

Keep Current By Regularly Updating Content: In order to stay relevant to those visiting your site (including search engine crawlers) be sure to update your website content on a consistent basis. Develop an editorial calendar to update your site in conjunction with big promotions and sales, events, and other notable activities, or when you introduce new products or services. Monitor Website Analytics: Pay close attention to where your website visitors are coming from, how they’re finding you, and what they’re doing while on your website, so you can consistently update and improve their experiences through tweaks to your site’s navigation and content.

Ensure Your Website Is Mobile-Optimized

As consumers increasingly turn to smartphones and tablets to search for local business information and to shop products and services, it’s essential that your website is properly optimized for those experiences.A recent Google/Nielsen study found that 59% of consumers

visit a business’ website when conducting a mobile search. However, the vast majority of small business owners — 9 out of 10 — said their websites aren’t optimized for mobile, according to the Yodle survey. This represents a clear gap in small business’ ability to provide on-the-go consumers with a proper website experience, thus threatening their chances for securing business from those visitors.This is the year to bring your business website into the mobile era. Here’s how to get started:Conduct A Mobile Audit: Develop an audit of your current website to

determine what types of mobile consumers are visiting your website, and what they’re generally looking for when they’re there.

Build A Mobile-Specific Website: Taking into account the findings from your audit, create a mobile-specific website that represents a slimmed down version of your desktop website. This mobile site should showcase the key topics that mobile users are generally looking for when they visit your site, so it’s easier to find them. For example, if you run a restaurant, you may consider creating a site that highlights the menu, reservations and contact information – and removes other information available on the desktop site that is less important.

Ensure Mobile Users Know What They Can Do On The Website: Use call-to-action messaging to make clear what consumers can accomplish via the mobile website. For example, if consumers can schedule appointments or purchase products directly from the mobile site, make that as clear as possible through bold text, buttons and other eye-catching graphics.

Build A Complete & Accurate Listings Presence

Whether it’s Google, Bing, Yelp, YP.com, Yellowbook.com or SuperPages.com, small businesses appear on a variety of business listing websites. Ensuring that your business’ listing is complete and accurate plays an important role in determining whether consumers reviewing your listing can

move forward with contacting you and making a purchase.

It may be surprising, but a notable share of business listing information is inaccurate. In fact, a ConstantContact survey of more than 350 SMBs earlier this year found that 50% of SMBs have come across inaccurate listings for their businesses. Despite this, nearly half (49%) of those surveyed said they’ve never updated their business listings online.

Spend time in 2014 getting your business’ listings up-to-speed with correct information:Check Up On Your Listings: Certify that your business is listed — and accurately — with services like Localeze, Axiom, SinglePlatform, Yext and Universal Business Listing, since they are the primary listings providers for local websites and apps.

Make Your Listings As Complete As Possible: Take a close look at your business’ listings on each of the major local websites to ensure that your information is accurate. Then build out your business listings on each of these sites with any missing information, such as your website address, social media channel addresses, business photos, menus or offerings and the like. This will ensure that your consumers viewing your listings have as much information as they need to make a decision before contacting you.

Successfully Manage Negative Online Reviews

Online reviews are playing an increasingly central role in driving consumers’ purchasing behavior. Similar to word-of-mouth, consumers place high trust in the accuracy of online reviews. In fact, a recent Nielsen online study of 29,000

consumers across 58 countries found that about 70% of consumers trust online reviews – making them the third-most trusted form of advertising. Another recent study from Harvard Business School showed that something as simple as a one-star improvement in a Yelp business listing can deliver a noticeable increase in a restaurant’s revenue.

With the stakes so high, it’s important for small businesses to develop procedures for locating and responding to online reviews. Small business owners should spend time mapping out or improving their response plan for online reviews – especially those that place their business in a negative light.

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When developing your online review plan, consider the following:Attempt To Prevent Customers From Writing Negative Reviews In The First Place: You should try to stop the problem before it starts by creating an environment where your customers are kept satisfied and that issues are dealt with quickly and professionally. This means ensuring that customers can reach your business directly and that you have policies in place for dealing with common problems related to your offerings.

Monitor Review Sites On An Ongoing Basis: Set up a regular monitoring schedule for the leading review websites, and a process for who will review and respond to negative reviews.

Keep Positive & Respond Directly: It’s easy to get upset by a negative review, since often your business has a difference of opinion with the customer over what took place. That said, ensure that your core response messages are professional and focus on ways to remedy the problem. As a first step, always try to contact the negative reviewer directly to see if you can remedy the problem.

Determine When To Respond Publicly: Set a policy for what red lines must be crossed in order for you to respond to a negative review publicly. Perhaps your first course of action is to ask the customer to take down their negative review. If they don’t, then perhaps the next step is to respond to the review publicly by noting exactly what your business did to address the problem. The course you take depends on the nature of the review and your business’ personality, but having set guidelines in place will help you to remain consistent.

Encourage Happy Customers To Leave Positive Reviews: Setup a strategy for encouraging satisfied customers to post positive reviews on the sites most important to you. This can be as simple as sending the customer an email after the transaction that asks them to leave feedback on a specific review website.

Build An Engaging Social Media Presence

Consumers today spend a considerable amount of time on social media interacting not only with family and friends, but increasingly with brands as well. Businesses in a variety of categories — ranging from retailers to restaurants — are successfully building social media channels to generate

loyalty and engagement with their customers and potential customers. In fact, Facebook recently announced that 24 million small businesses maintain active pages on their site.

In developing or improving your social media for 2014, take the following into account:Determine Which Social Media Channels Work Best For Your Business: Facebook and Twitter provide strong platforms to reach the vast majority of consumers with business updates, sales and promotions, new products and services and the like. They also offer the ability to engage in one-on-one conversations with consumers regarding questions, concerns and complaints. Specialized social media sites also provide their own benefits. Pinterest, for example, enables businesses to share visually appealing offerings like clothing, furniture, art and landscaping with a like-minded audience. And sites like YouTube enable small businesses such as a DJ to post videos of their latest parties, or a local bakery to share how they make their favorite bread. As a starting point, spend some time mapping

out which channels you want to use for your business and why.

Develop An Editorial Calendar To Remain Engaged: If you create a page for your business on a social media network, it’s imperative that you remain engaged and not let the page sit idle. Consumers today expect businesses to update their social media channels several times a week with relevant information. In order to keep a steady flow of updates, develop an editorial calendar in advance so you can map out content and coordinate your efforts. Incorporate compelling photos, videos and other visual content and provide incentives to those following your pages to stay connected.

Respond Promptly To Consumer Questions: Consumers view your social media channels as an extension of your digital presence and expect you to respond to questions, comments and other inquiries they share there. So setting up a process for monitoring your business’ pages is key.

Share Your Deeds! Once your channels are established, share your information wherever you can: through posters and flyers, advertisements, your business’ website, etc. Explain to customers why it’s worth it for them to follow you.

Take Advantage Of Automated Scheduling & E-Commerce Tools

In 2013, we saw a lot of strong activity on the automated scheduling and e-commerce front. Yet despite the promise of these new offerings, many small businesses have remained on the sidelines. For example, only 39% of small business owners

rely on automated appointment booking and scheduling technology, according to the Yodle survey.

In 2014, take the opportunity to reevaluate the benefits of these new tools:Popular local websites such as Yelp, along with local vertical websites such as OpenTable, Seamless and GrubHub introduced new offerings that make it easier for consumers to seamlessly purchase products or schedule appointments at businesses from wherever they are. And these offerings are expanding beyond just restaurants to also include everything from doctor appointments to home repairs services.

Sites like Amazon, eBay and Etsy continued to improve their offerings for digital storefronts that enable consumers to easily shop and purchase from businesses via their desktop, smartphone or tablet.

While there are fees are associated with each of these e-commerce offerings, small businesses benefit from avoiding start-up and maintenance costs to build these systems on their own. The tools also increase efficiency (cutting down on labor costs) and provide great platforms for increased visibility in online search.

Use Results Reporting To Inform Your Strategy

The Yodle survey found that more than half (56%) of small business owners do not measure results from their marketing. This means that those small business owners have no baseline to determine how well their marketing is doing or

how to set priorities for what else they can or should be doing.

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8As you head into 2014, develop a simple reporting structure - perhaps a monthly report that you dedicate yourself to doing - that will enable you to clearly see how all of your marketing activities are doing and their resulting impact on your business.

It’s my hope that once you see the benefits of your business’ marketing dollars at work, you will begin to feel differently than the majority of small business owners by being excited - and not worried - about your ability to retain and attract customers in the future.



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JANUARY 2014

MARTIN LUTHER KING JR. DAY

AMELIA EARHART DAY

11

CHINESE NEW YEAR

3-11

31

20

FEBRUARY 2014

RESOLUTION RUNIncludes 5K and 10K runs and a health walk. Monahans Sandhills State Park.Phone: (432) 943-2187www.monahans.org

4

VALENTINE’S DAY14

Birthstone: AmethystFlower: Violet

Birthstone: GarnetFlower: Carnation, Snowdrop

National: Blood Donor Month,

Braille Literacy Month,

Hot Tea Month,

Oatmeal Month,

Soup Month

OBSERVANCES AND CELEBRATIONS

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9NETWORKING PROVIDERS OF SERVICES IN THE PERMIAN BASIN

Speakers during lunch. 11:30 am. 1A networking group connecting people to improve the quality of life in the Permian Basin. State agencies and individual owned businesses providing services to the Permian Basin

area. First Visit Free. Annual dues $12.00 (prorated). Bring your business cards, brochures and name tag. Purchase lunch, if you desire. Mia Piaci Italian Restaurant - Strip Center corner of University and Grandview.

17PRESIDENTS’ DAYPresidents’ Day is observed on the 3rd Monday in February to honor Washington’s Birthday, the first U.S. President and

Abraham Lincoln and other US Presidents.

ODESSA-SANDHILLS STOCK SHOW AND RODEOEctor County Coliseum, 4201 Andrews Hwy.Phone: (432)366-3951www.sandhillsstockshowandrodeo.com

12NATIONAL PHARMACIST DAY

NATIONAL PIE DAY23


ComPressed Air drilling CuTs CosTs

Air Drilling reDuces costs AnD increAses ProDuction

Omni Compressed Air works with oil and gas exploration and production companies to reduce well drilling, completion, and work over costs, while at the same time, increasing production to its maximum potential. Today most companies use over-balanced drilling (OBD) and servicing procedures that utilize heavy fluid based mediums for material removal.

This process creates high pressure in the well and can sometimes irreversibly damage the oil and gas formation. Omni’s air and generated nitrogen foam based, under-balanced drilling (“UBD drilling”) techniques accelerate well drilling and work overs, reduce costs and boost gas and oil production by creating a low pressure zone that draws petroleum products to the well.

The technology is not new. A report by the Society of Petroleum Engineers in September, 1984, states that “using UBD is a sound and economical procedure with an average of $500,000 being saved per well,”… with 19 days being cut from the average drilling time per well.”According to the report, “the major advantages of UBD are: lower cost, reduced drilling days and reduced trouble time.” Omni cites those advantages, but adds others such as: reducing formation damage, increasing the rate of penetration (ROP) and bit life, allowing the

well to be tested while drilling is underway, reducing the number of trips into the hole, minimizing differential sticking of pipe, limiting lost circulation problems, facilitating early production while drilling, and providing access to depleted or low pressure reservoirs. When using UB services for completions, the customer is left with a cleaner well bore and has recovered several thousand barrels o f frack fluid.

The use of UBD technology is not limited to the U.S. The Sichuan Basin, one of the largest gas producing areas in China, has complex geological conditions, that require low drilling speeds resulting in major problems. In recent years, UBD has been used and has increased the average penetration rate by 2.6 times and cut the average drilling cycle from 138 days to 57.4 days. At the same time the yield from UBD horizontal wells is 3 – 8 times more than vertical wells.

“We work with companies every day that are experiencing problems created by using the standard over-balanced drilling and servicing methods,” states Ray O’Dell, a partner in Omni Compressed Air. “Reducing or eliminating down-hole pressure during both drilling and servicing helps to avoid potential problems, while at the same time allowing production to resume much faster. “

by Kathy Moorhouse

In oilfield exploration and production, normally when costs are cut, production is reduced. Short cuts just do not work. It is the law of logic – correct? Omni Compressed Air, Ltd. defies logic every day. “We use our proven compressed air and nitrogen services to boost production from existing wells, while at the same time we reduce service and exploration costs,” says Dee Moorhouse, one of the owners of the Midland-based company.


“If air drilling was beneficial back in the day of shallow wells and vertical drilling, it is even more beneficial today with horizontal drilling and high volume fracking. New drilling and production methods have boosted oil and gas production. However, using over-balanced drilling techniques increases the pressure inside the well, which increases drilling time, circulation problems, and it impacts how readily the gas and oil can flow from the well,” O’Dell explains.

“We find that many of our customers call us when they have to reduce hydrostatic pressure to solve a problem,” Moorhouse adds. “In reality, if they would use our compressed air or nitrogen foam services from the beginning, they probably wouldn’t encounter the problems in the first place.”

The explosive growth of fracking in the Permian Basin has increased the demand for Omni Compressed Air’s services. “Wells that have been fracked using over-balanced production techniques naturally have sand and particles that tend to reduce oil and gas flow, and it can also cause tubing to stick and pumps to fail. We can use compressed air and nitrogen foam to clean out the well. If this was done when the well was put into production, it has the potential to dramatically reduce these problems. When we provide the service to existing wells, we can solve the problems, and we can also improve the production flow of the well at the same time,” explains Moorhouse.

“Some customers see our service as an added expense. They should see it as an investment in the future,” O’Dell

emphasizes. “If a well is clean when it begins production, you reduce the likelihood that you will lose production due to problems created by sand and debris left in the well. That is money in the bank.”

“Another benefit of using UBD during drilling and servicing a well is the time saved in getting the well back into full production. “When we clean out a well, we are not adding any materials down-hole,” explains O’Dell. “In fact, we are removing the particles and left over frack debris commonly left by over-balanced completions. This means there is nothing left to block the flow of oil and gas. You have immediate production capability. When using UB techniques to clean out a well, the production zones are allowed to produce thus bringing excess sand and debris out of the formation during

the actual clean out. When over-balanced drilling and servicing methods are used, production is restricted by the hydrostatic pressures of the drilling mud/fluid and the formation slowly recovers. However, due to the potential blockage caused by OBD, it may never reach its full potential,” O’Dell concludes.

Shell Oil Company, uses UBD drilling and servicing on more than 80% of the wells they drill, and estimates that UBD has the potential to improve well production by 800%. Thanks to the improved flow of oil and gas, fewer wells are needed to drain a reservoir and the overall environmental footprint is smaller.

Omni Compressed Air, Ltd., originally called Redman Air Drilling, was founded in 1978 by Bob O’Dell. The


company’s main focus was air drilling in the Austin Chalk. The company relocated to West Texas in 1987 doing workovers and completions because at the time air foam units were not capable of providing sufficient air volumes to properly clean wells and handle excessive fluid influxes.

Today, the company uses the very latest in compressed air and nitrogen foam technology to service wells throughout the Permian Basin area. “We have more than 50 pieces of portable equipment, and we can be onsite in a matter of hours,” says O’Dell.

Omni’s air foam unit’s newer, larger air-end design delivers up to 1500 SCFM at 2500 PSIG. Air foam is ideal for sand cleanout, bridge plug drilling, fluid recovery, fishing, and deepening projects in lost circulation zones or pressure depleted reservoirs. Air foam and N2 foam increase penetration rates while minimizing formation damage. They also feature self-contained, D.O.T. approved drop deck trailers for maximum portability and quick rig up times. All units feature a Sullair compressor capable of discharge pressures of 350-500 PSIG. With one booster, discharge pressure climbs between 2000-2550 PSIG. And, for extreme jobs requiring even more compression, Omni can stack an additional Super Booster to reach pressures of up to 5000 PSIG.

Omni Compressed Air’s customers have set many drilling records, drilling at paces up to 200 ft. per hour while utilizing Omni’s equipment and services. Omni’s air services are generally used in the following types of projects: dust drilling, drilling with membrane nitrogen, mist drilling, aerated fluid drilling, foam drilling, percussion hammer drilling, directional drilling, and payzone drilling. “If you want to speed up the drilling process and eliminate a lot of problems in the future, air drilling is the answer. It can increase drilling penetration rates by 5 to

7 times, eliminate lost circulation, differential sticking and formation damage,” states Moorhouse.

Omni is a leading provider of air foam, N2 foam and air packages for drilling in the Permian Basin area. “There are other companies who provide similar services, but we bring almost 30 years of proven experience, plus when you work with us – you are working with the owners of the company. We will be onsite to ensure everything is done correctly and that we maximize the benefits of the services we provide,” says Moorhouse.

Drillers, Pumpers and others involved in the oil and gas industry need to recognize that there are ways to reduce costs and increase production at the same time. Compressed air drilling and well servicing may be an old method, first used decades ago, but combined with the latest technology, it has the power to cut costs and at the same time boost productivity and profitability.

Omni Compressed Air is growing to meet the needs of the Permian Basin and is currently expanding operations into the Eagle Ford Shale and other markets. “Right now, we are focused on providing our customers the best service possible,” explains O’Dell. “We have learned that if you provide excellent service and use the best technology available to solve a customer’s problems, company growth takes care of itself.”




In December, Mexico’s Congress approved a measure allowing international businesses to share in the profits of oil exploration, and it could lead to the next big boom.

The sound of rigs and pump jacks is familiar in the Basin but not quite so familiar in Mexico. The country’s state-run and sole oil company, Pemex, has seen a decline in production over the last decade. Experts say a recent decision yesterday by Mexico’s congress could change that.

“There will be a commercial framework for oil companies to invest capital and generate a return through profit sharing contracts or potential service contracts,” said Elevation Resources President and CEO Steven H. Pruett, also Chairman-Elect of the Permian Basin Petroleum Association.

For the first time in nearly a century—private, international companies can invest in Mexico’s massive shale deposits and gulf resources. A JPMorgan Chase study cited in Bloomberg News estimates it could bring $15 billion dollars a year into Mexico.

“The potential in Mexico is even greater than that of the Permian Basin in terms of remaining oil to be recovered,” Pruett said. But tapping into Mexico’s resources is a risk.

“Companies will consider if there is instability in the government, which appears to be stable today, but an election could change that,” Pruett said.

Pruett says the basin boom is here to stay, and many basin companies will not have the resources to move operations overseas.

“I don’t think the opening of Mexico to private companies will affect the Permian Basin activity at all,” Pruett said. “I don’t see companies like Pioneer diverting capital away from the Permian Basin to develop that. They’ll be able to raise other sources of capital to pursue that.”

Expert says international companies like Shell will have an edge over U.S. based companies in breaking into the new, Mexico market. He says Mexican businesspeople are traditionally more hesitant to strike deals with U.S. companies.

By Matt RistCBS 7 [email protected]

ChAnges Could BringO i l B O O m T O m e x i C O


CONFERENCES IN JAN. - FEB. 2014API Exploration and Production Winter Standards Meeting01/20/2014 - 01/24/2014 Dallas TX, USAwww.api.org/events-and-training/calendar-of-events/2014/e-p-winter

IPAA Private Capital Conference01/21/2014 - 01/21/2014 Houston TX, USA http://www.ipaa.org/meetings-events/event-details/?mid=297

World LNG Fuels Conference and Exhibition01/21/2014 - 01/23/2014 Houston TX, USA http://www.worldlngfuels.com/

Mexican Oil and Gas Opportunities Post Reform01/21/2014 - 01/23/2014 Mexico City, Mexico http://www.infocastinc.com/events/mex-oil-gas14

API-AGA Joint Committee on Pipeline Welding Practices01/22/2014 - 01/23/2014 Dallas TX, USA http://www.api.org/events-and-training/calendar-of-events/2014/aga

Pipe Tech Americas Summit01/23/2014 - 01/24/2014 The Woodlands TX, USA http://www.pipetechamericas.com/program/

Flare Management and Gas Utilization Conference01/28/2014 - 01/29/2014 Houston TX, USA http://www.flareandgasmanagement.com/

European Unconventional Gas Summit01/28/2014 - 01/30/2014

Vienna, Austria http://www.theenergyexchange.co.uk/event/european-unconventional-gas-summit-2014

Water Management for Shale Plays Mid-Continent01/29/2014 - 01/31/2014 San Antonio TX, USAhttp://www.infocastinc.com/events/shale-tx14

HSE Excellence for Unconventional Oil and Gas Forum01/29/2014 - 01/30/2014 Houston TX, USA http://hse.americanleaders.com/hse-unconventional-oil-gas-forum

Topsides, Platforms & Hulls Conference & Exhibition02/04/2014 - 02/06/2014 Galveston TX, USA http://www.topsidesevent.com/index.html

IADC Health, Safety, Environment and Training Conference and Exhibition02/04/2014 - 02/05/2014 Houston TX, USA http://www.iadc.org/event/2014-iadc-health-safety-environment-training-conference-exhibition/

SPE Hydraulic Fracturing Technology Conference02/04/2014 - 02/06/2014 The Woodlands TX, USA http://www.spe.org/events/hftc/2014/

NAPE Expo02/04/2014 - 02/07/2014 Houston TX, USA http://www.ipaa.org/meetings-events/upcoming-meetings/

Arctic Technology Conference02/10/2014 - 02/12/2014 Houston TX, USA http://www.arctictechnologyconference.org/

International Pipeline Pigging and Integrity Management Conference and Exhibition02/10/2014 - 02/13/2014 Houston TX, USA http://www.clarion.org/ppim/ppim14/index.php

ARC Industry Forum02/10/2014 - 02/13/2014 Orlando FL, USA http://www.arcweb.com/events/arc-industry-forum-orlando/


SOUTHCENTRAL

AUCTIONS COMPANY DATES LOCATION INVENTORY

OILFIELD EQUIPMENT - TRUCKS & TRAILERS

Kruse Energy & Equipment LLC

Jan 29, 2014 - Jan 30, 2014

Odessa, TX

HUGE OILFIELD EQUIPMENT AUCTION

Machinery Auctioneers of

TexasMarch 3, 2014 Odessa, TX



Mar 4, 2014 - Mar 5, 2014

Oklahoma City, OK No Lots Are Currently Posted for this Auction



April 1, 2014 Odessa, TX

AUCTIONS COMPANY DATES LOCATION INVENTORY

TRUCKS, OILFIELD WINCH TRUCKS, VANS ONLINE

AUCTIONRosen Systems Jan 15, 2014 Internet

PIPE & EQUIPMENT SEALED BID

Network International Inc

Jan 22, 2014 - Jan 29, 2014 Internet


Network International Inc Jan 22, 2014 Internet


Network International Inc

Jan 29, 2014 - Feb 5, 2014 Internet No Lots Are Currently Posted

for this Auction

INTERNET

Leading Auctions in the Oilfield Industry. Upcoming Auctions and Auction Equipment listings from Tradequip

International’s online and site-held auction companies.

DrillingRigs

Prod.Equip.

DrillingEquip.

TubularGoods

OilfieldTrucks

OilfieldTrailers

Parts& Tools

SupportEquip.

Saurce: Tradequip International www.tradequip.com



SAFETY TIPSCommunication Barriers in the Oil Patch

Communication; it’s present in everything we do. Unfortunately, when messages are sent in such a manner that causes the message received to be unclear, a hazard can be the result. Language barriers, omissions, misinterpretation are three main types of communication barriers. All three communication barriers could be present when a message is delivered without the messenger even being aware of it. Understanding these barriers and how to avoid them and learning how to communicate clearly will help avoid communication gaps specifically in the work place.

One communication barrier is language. Recently, the Permian Basin has seen an influx of people, many of which are new to the United States. With the different nationalities comes a variety of different languages ranging from Arabic to Swahili. But with all of the new languages, Spanish seems to still be at the center of it all. In an effort to adapt to and overcome this communication barrier, many employers are hiring bilingual personnel and initiating safety training courses specifically geared towards the Spanish speaking community. These precautionary measures have been taken to reduce this communication barrier but the fact still remains that two people speaking two separate languages may not be able communicate properly which could result in a hazard for persons involved. Understanding the language barrier and putting in to practice methods such as an interpreter, is an option that could prevent the misunderstanding of an important message.

Omissions of pertinent information, specific instructions, and the like can be a huge communication barrier. Many times the messenger might assume the receiver has a history in the industry or understands slang terms frequently used and therefore may leave out pertinent pieces of information in their message. These types of omissions may lead to an employee or worker missing a detail that is important in performing a task safely. For example; a manager might say to an employee “I need this task done ASAP, no matter what.” By omitting specific details on how to safely accomplish the task, the employee may interpret the message as “get it done regardless of costs and procedures necessary or even short cuts taken in the process.” To avoid omissions or gaps in communications, directions should be clear, concise, and detailed. Directions should also be repeated back to the messenger to confirm that the original message and all of the details are understood as intended. This process ensures that all parties involved understand the expectations of the message.

Finally, misinterpretation of a message occurs when a message is delivered but not received clearly by the recipient. For example, if a safety technician misinterprets a level of gas that may be present at a specific jobsite and communicates the level incorrectly, he or she could potentially place themselves or others at risk. To avoid such situations, good communication skills must be practiced as with any other skill ensuring that all deliverers and receivers of a message clearly understand its meaning.

Language barriers, omissions, and misinterpretations are all barriers to effective communication especially within the oilfield industry where slang terms and different languages are used and messages are generally unclear. Understanding each of the hazards and how to avoid them will eliminate message confusion, misinterpretation and ultimately create a safer and more effective work environment.

ASI Safety Department


New You

Tips to starting & continuing a healthier lifestyle resolution:

• Do not keep processed foods in the house: all things based in a white flower of any kind

• Meal prep: it takes just as much or just as little time to make something unhealthy as it does healthy meals

by Dominique J Brown and Dawn M. Ward

NEw YEaR,

It’s the beginning of a new year, and everybody has new resolutions on their mind. Most resolutions are typically related to becoming more healthy and active, but oftentimes people do not know how or where to start, or how to sustain their goals for the New Year.

HOW DO YOU KEEP THE CONSTISTENCY? You brush your teeth every day, right? It’s a habit. We have to retrain our mind, body, and spirits to make our health and fitness goals into habits so it feels unnatural to leave them incomplete each and every day.

Here is what you can do to start this new path: commit to a gym; doesn’t matter what kind of gym, any gym will do. If you hate the gym, find a high intensity activity you enjoy. If you need ideas, go online and Google what is in your area. If you don’t have much, get creative. There are LOADS of home workouts nowadays. Word of Mouth is a wonderful tool to use when you do not know where to start either. Ask your friends and family what they do, and try it out few times with them to see if you would be interested in continuing.


• Stick with a protein, vegetable, and carbohydrate: i.e. chicken, broccoli and sweet potato

• PORTIONS: don’t over do it, split the plate in 3 and make sure your carbohydrate section isn’t equal to the protein and vegetable selection, it needs to be smaller

• Do something active for at least 30 minutes every day

• EAT BREAKFAST: its not a lie when people say it’s the most important meal of the day- eating a larger and healthy breakfast helps train your bodies metabolism

• Have someone hold you to what you say you are going to do

• Write down your goals: refer back to them when you feel unmotivated: if your goals seem too big, break them into smaller ones

• Find people/something that motivates you: partner up- some days will be harder than others, be encouraged by someone with the same goals

• Quit saying I will and say I am: decide in your own mind I will start & make it to my finish line

• Never give up on Yourself

• Try to get your workout over early, before work workouts can give you energy for the day, as opposed to a full workday then dreading a workout

• Make it a schedule: it will be just like going to work. Have 5 basic workout days and allow two days off to rest yourself & not burn out

Other New Year’s resolutions tips

• Turn your wishes and goals into reality by making them into something you can grasp

• Be proud of results - hard work pays off

• Bring the work ethics you have at work into all areas of your life, including health and fitness. You’ll see results you didn’t even realize could happen

• JUST START - it’s the hardest part

• The BEST feeling is when it’s over

• Exercise is the number one antidepressant

• Being healthy and physically active is 90% mindset, 10% action

It is a LIFE-LONG battle to keep up with good health - train your mind and body differently so it becomes a habit, not a chore. Every day I struggle to eat well, make it to the gym, and keep up with the rest of my life- but I LOVE IT – my energy and my body changes for the worse when I get off track.


This image demonstrates the

cleaning power of a Gamajet. Used in a

trailer to clean drilling mud, the drilling mud, the

Gamajet scours the trailer clean in only

30 minutes.

frac tanks | mud tanks | barrels | ISO tanks | USTs & ASTscontinued from previous page...

Dominique J. Brown is the Founder of Gameready USA and Manager of Gold’s Gym in Midland. Dominique grew up playing football, basketball, and running track, but his one true love was football. His biggest inspiration was his older brother, Jamel Brown, and their father. He was a high school stud, and was headed off to college ball, but God had different plans for him. He took a sales job with Gold’s Gym four years ago, and it has helped mold him into the man he has become today. He now manages both gyms in Midland, TX and has expansion on his mind for his kid’s camp, Gameready USA.

Dawn M. Ward is a home town girl who grew up in Midland and went to MHS. Her one true love was soccer and she was a student athlete and graduate from Texas Tech University. Her passion is in health and fitness and after graduating she came back to Midland to pursue different interests. She is currently studying for a NASM personal training certification and holds individual/small group soccer specific lessons for kids.



JANUARY & FEBRUARY

FESTIVALS AND EVENTS IN TEXAS

TOP

INNER VISION: THE SCULPTURE OF MICHAEL NARANJOOngoing through February 13Ellen Noël Art Museum4909 E. University, Odessa, TX 79762Michael A. Naranjo is a sculptor who permanently lost his sight in both eyes during the Vietnam War. For more than 30 years Naranjo has fashioned figures of clay, which are then cast in bronze. Guided by a sense of touch and keen intuition alone, he has produced works of splendid artistry.

THE COLOR OF OIL: PAINTINGS BY MARGARETE BAGSHAWOngoing through March 2Ellen Noël Art Museum4909 E. University, Odessa, TX 79762Artist Margarete Bagshaw has been long known for her use of color, composition and texture. Painting in complex compositions that feature a dynamic color palette, her work is instantly recognizable.

ODESSA-SANDHILLS STOCK SHOW AND RODEO January 3 - 11Ector County Coliseum, 4201 Andrews Hwy.Phone: (432) 366-3951www.sandhillsstockshowandrodeo.com

SILVER SPUR GUN AND BLADE SHOW January 4 - 5January 4 from 9 a.m. to 5 p.m. & Sunday January 5 from 10 a.m. to 5 p.m. Lubbock Memorial Civic Center - 1501 Mac Davis Lane. The trade show will feature exhibitors from the United States selling gunes, knives, swords,

holsters, ammunition, accessories and more. Many new and used items will be available to purchase, sell or trade at the event. $5 for adults and 12 and under are free.For more information, call (806) 253-1322www.silverspurtradeshows.com

VINCE KING AS ELVISJanuary 48 pmThe Ector Theatre500 N. Texas, Odessa, Texas 79761Vince King returns as Elvis, celebrating Elvis’ birthday month. Come enjoy this moment in time as Vince King with the band Fever entertains you with 50’s, 60’s, and 70’s Elvis. Tickets are $28.00 and may be purchased online.For more information call (432) 580-0898www.ectortheatre.com

All across Texas, a variety of festivals, events and attractions are a great way to have fun and to spend time with your family.


JANUARY STORY TIMEJanuary 810 amEllen Noël Art Museum4909 E University, Odessa, TX 79762Preschoolers and their adult enjoy a story and an art activity in the ArtHaus. This event takes place at 10:00 am and 2:00 pm on the same day. Free. Children Must be accompanied by an adult.

30TH ANNUAL PORT ISABEL “LONGEST CAUSEWAY RUN & FITNESS WALK”January 11Port IsabelIn its 30th year, enjoy 10K certified run, #TX05009WG and 3-mile fitness walk. Over 4,800 participants. Call the Chamber of Commerce for info and applications. (800) 527-6102

ROBOTS: 3-D DESIGN WORKSHOPJanuary 111:30 pmEllen Noël Art Museum4909 E University, Odessa, TX 79762For ages 13 and up. This 3-week series of workshops will focus on 3-D design, creating an art robot out of found objects, as well as designing a plastic robot which you will print in our new 3-D printing lab. Students will need basic computer skills along with access to a computer and time to do research outside of class. $150.00. Advance registration required. Class size is limited.

THE GEORGE BROTHERSJanuary 118 pmThe Ector Theatre500 N. Texas, Odessa, Texas 79761The George Brothers from Eureka Springs Arkansas will bring you a Branson-style show with music and comedy. This is one event you will want to see! Tickets are 28.00 and may be purchased online.For more information call (432) 580-0898www.ectortheatre.com

JANUARY ADVENTURES IN ARTJanuary 12 2:30 pmEllen Noël Art Museum4909 E University, Odessa, TX 79762Monthly art classes for children ages 6-12. Registration required. Fee applied.

UPTOWN SWIRLJanuary 18BrenhamTreat yourself, your spouse & your friends to a fun afternoon and evening of sipping wine & swirling through historic Downtown from 3pm-7pm. For a small fee, attendees receive 20 tickets for tasty wine samplings and a collectible wine glass. For details or to order tickets, call (979) 337-7384www.BrenhamUptownSwirl.com

WAGNER NOEL PRESENTS TONY BENNETTJanuary 221310 N. FM 1788Midland, Texas8:00-10:00 PM www.wagnernoel.com

WAGNER NOEL PRESENTS THE OAKRIDGE BOYSJanuary 247:30 PM-10:00 PM 1310 N. FM 1788Midland, TexasMulti Grammy, CMA, ACM & Dove Award Winners With over 4 decades of hits... This is more than a show... this is an EVENT!www.agnernoel.com

AROUND THE WORLD - WEST TEXAS WINDS CHAMBER CONCERTJanuary 263 pmWagner Noël Performing Arts Center1310 N FM 1788, Midland, TX 79707


Each month, this section features a local nonprofit that does great things to support our neighbors or an oil and gas business that makes a point to give back to our community. This month, I wanted to start off the New Year with something a little different: an amazing outpouring of support and love that didn’t come from an organized charity or philanthropic business. Rather, it grew organically, from the hearts and spirits of a community of people who love deeply and serve relentlessly.

Cori was new wife in a beautiful new home and mother to 3 when she was diagnosed with an aggressive form of breast cancer in June of 2013. Treatment began immediately and everything went as planned as the first phase of the process was completed in early November. Shortly after relief seemed to be in sight, Cori and her family got the news that turned their lives inside out. The cancer spread into her spinal fluid and ultimately, her brain. The prognosis was suddenly grim. It didn’t take long for this news to travel through the teams of supporters that had been rooting for Cori since her original diagnosis. Fellow parents from Midland Christian, where her two

older children go to school, coworkers, friends and others from the community of people she did life with every day began looking for ways to help their friend in need. That’s when something beautiful began to happen.

As 2 of those Midland Christian moms, Marcie Carter and Bonnie Eckels, began fielding the calls from concerned friends looking to help, they started to get organized. In an effort to figure out what Cori’s family really needed, they partnered with Cori’s coworker, Alisha Acosta, who asked her husband, and the answer was simple: they wanted a magical

CaresA Magical Christmas


Christmas to remember together as a family. With a task in hand, Bonnie and Marcie spread the word and the outpouring began. The idea was to turn their home into a Christmas wonderland; a place of joy and wonder that would bring a smile to mom, dad and the kids alike every time they came home. With a date set and a plan in place, the heart of this community began to shine. Kids started cleaning out piggy banks, professionals donated their time and expertise and neighbors and friends started dropping off Christmas decorations. On November 30th, Cori’s front yard was filled with dozens of modern day elves arranging hundreds of lights, snowflakes, blowup Santas and 6 foot nutcrackers with such enthusiasm and care. The love in the air was so tangible as you drove down their road that afternoon, you couldn’t help but tear up at the sight. This is no doubt one of the busiest times of year for many of us. But what a beautiful sight it was to see dozens of those really busy moms, dads, professionals, and even kids taking time out of their non-stop schedules that Saturday afternoon and doing something that really mattered. Something that completely veered off of that days task list, yet was more fulfilling than accomplishing a hundred other not-so extraordinary things they could have done.

This is not just what the holiday season is all about, but in Midland Texas, it truly is one of a hundred examples of how the Permian Basin truly Cares for their own, all year round.


Imagine this. Last week, sometime in the future, I’m driving by an auto dealer, and on my car display I see a message that says my car needs a 15 thousand mile service. In normal times this is no big deal, but it seemed a bit of a coincidence given the dealer was across the street. The next message on the display freaked me out, though. It said the same dealer had an opening, and I could get the service completed in 75 minutes if I drive in right now. The GPS even said which turn to take. Shaken up, I pulled into the Starbucks down the street. The momentary respite was just that with the arrival of an IM offering me a $50 discount off their standard service if I acted today. I looked nervously around, sure someone was watching me. No longer surprised, I got a phone call saying someone was on the way to pick up my car and it would be back in 90 minutes. Two Grande caps later and I was on my way in a clean and fully-serviced car.

This is pretty safe prediction, since I saw much of it on a recent Salesforce.com demo. It’s called interactive CRM, in combination with location services and some basic AI (artificial intelligence).

Salesforce.com, and it’s less expensive cousin, Infusionsoft, have had interactive CRM (customer relationship marketing) systems for years. Basic CRM involves sending a sequence of emails and messages to a customer database. The interactive piece adds a decision tree to the basic CRM system based on how the customer responds. These marketing campaigns can involve a variety of different sequenced messages which appear to be sent by someone who has actually read the customer’s response. Now add GPS or location services into the mix. Since cars and cellphones know where you are, location-based advertising can be pushed to you just as easily. Collectively, this is interactive CRM on steroids. It doesn’t take much of a stretch to apply these same concepts to hiring, you just need to add more sophisticated AI and an expert system. Here’s how this will unfold.

Using Better AI to Predict When People Are Thinking About Other JobsObviously, once you apply for job everyone knows you’re looking, but here’s how this would work for those who have not applied for a job, but are just thinking about it. People are pretty predictable whenever they start thinking about another job, doing many of things on the list below. Once 3-4 of these actions click to on, the person is more likely to respond favorably to a “custom” message about another job that appears on your LinkedIn newsfeed, in an email or IM.

TECh BiTEs

Source: Lou Adler, CEO, best-selling author, created Performance-based Hiring. Recent book: The Essential Guide for Hiring & Getting Hired

BIG IDEA FOR 2014: BIg BROThER BECOMES A

RECRUITER Interactive CRM already knows who you are, where you are, and what you want.

On steroids, it will also select your next job. Should you be wary, or more involved?


What People Do When Thinking About Changing Jobs

• Expand their professional network. • Update their LinkedIn profile. • Check out salary studies. • Buy career books or go to Wiley.com and brush up on

the latest technology. • Join online professional groups. • Attend their live professional association meetings

more frequently. • Read career-focused articles like this one. • Google for jobs, just to see what’s available, e.g.,

“warehouse manager jobs in Dallas.” • Do company research and follow more companies. • Research staffing firms to find recruiters.

With this information, all that’s needed is to use an expert system to push jobs to you that best match your areas of expertise and interests.

Using an Expert System to Prepare an Inducement Consider any great recruiter an expert system. These people have the ability to look at a profile or resume and in 30 seconds figure out if it’s worth considering the person. They focus on the progression of titles; years in the work force vs. position; achievement terms like patents, awards, and honors; academic credentials; the quality of the firms and jobs held; and unusual special interests, among other factors. This type of expert review could easily be automated, and I suspect that LinkedIn is already working on it.

But people who aren’t looking aren’t interested in lateral transfers. So even if a message is pushed to the person by geography, title, compensation and industry interest, the actual message is important. This is where the Career Zone concept described in an earlier post comparing job satisfaction vs. current job can be useful. Knowing how long a person has been in a job, if the person’s been promoted recently or not, and the financial condition of the current company, messages could easily be crafted to meet the person’s interests and intrinsic motivators.

So when you get a message on your cell phone, that says “Would you be interested in a short chat about a new role we’ve created for financial leaders?” you’ll likely respond favorably. Then the interactive CRM system would click in, and before you know it, you’ve been screened, qualified, and driving to your first onsite interview. Of course, don’t pay attention to the message on your car display about the need for a 15K mile service with the $50 discount. Go to the interview instead. Big Brother is watching.


PBe NEWS BRIEFS WATChINg ThE BASIN

Although a recent report released by the U.S. Bureau of Economic Analysis showed personal income growth slowed in 2012 in most of the nation’s 381 metropolitan statistical areas (MSAs), Midland, Texas, was the fastest growing MSA, in terms of personal income, for the third year in a row. Odessa, Texas, which grew 11.5 percent, was second fastest, as it was in 2011. For both MSAs, the mining industry, which includes oil and gas extraction, contributed more than any other industry to personal income growth. North Dakota’s three MSAs were also among the fastest growing MSAs in the country in 2012: Grand Forks grew 10.5 percent and ranked third, Bismarck ranked fourth (10.1 percent), and Fargo ranked sixth (8.3 percent). Personal income in the nonmetropolitan portion of North Dakota—where the booming mining industry is located—grew at an even faster 26.3 percent pace.

Midland ended Fairfield County’s 26-year reign as the area with the highest per capita income, according to the same data released by the Bureau of Economic Analysis.The two counties that make up the Midland metro area had a per capita income of $83,049 compared to the second-place $81,068 for the Bridgeport metro area that includes Norwalk, Stamford, Greenwich and Danbury.

San Francisco, San Jose and Washington, D.C. , rounded out the top five metropolitan areas.

Source: www.bea.gov

TExAS: MIDLAND AND ODESSA - FASTEST gROWINg PERSONAL

INCOME CITIES IN USA

Deepwater oil and gas exploration would be allowed to proceed in parts of the western Gulf of Mexico as part of a budget compromise announced in December.

Language in the legislation would implement a 2012 U.S.- Mexico Agreement concerning hydrocarbon reservoirs in parts of the gulf that cross the international maritime boundary.

U.S. domestic crude production rose to a 25-year high as the combination of horizontal drilling and hydraulic fracturing, or fracking, unlocked supplies trapped in shale formations from Texas to North Dakota. Output from federal waters in the Gulf of Mexico will account for 17 percent of total U.S. production this year, down from 20 percent in 2012, government data showed.

“It’s a step in the right direction and it will add to oil supply,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. “It’s another reason that oil will be relatively cheap. The Gulf of Mexico is not as critical as it used to be, so the price impact will be limited.”

West Texas Intermediate, the U.S. crude benchmark, dropped $1.07, or 1.1 percent, to $97.44 a barrel on the New York Mercantile Exchange, down 12 percent from this year’s settlement high of $110.53 on Sept. 6. Prices have moved between $90 and $100 since Oct. 22 and are up 6.1 percent this year. WTI was at its biggest discount to Brent, the European benchmark, in eight months on Nov. 27, having predominantly been at a premium until 2009. Source: Bloomberg.com

WATChINg OFFShORE

DEEPWATER OIL DRILLINg IN gULF INCLUDED IN BUDgET DEAL


WATChINg ThE STATE

CUShINg-TO-TExAS PIPELINE TO START

2ND qUARTER 2014

The Seaway Twin pipeline, which will take oil from Cushing, Oklahoma, to the Texas coast, will likely start up in the second quarter of this year, according to one of its owners.

Traders are watching the timing of the 450,000 barrel-per-day pipeline, one of several major projects that are reshaping the domestic crude oil market. The pipeline will more than double the capacity of the existing Seaway line and drain supplies at Cushing.

Some analysts, including those at Morgan Stanley, Goldman Sachs and Simmons International have referred to a first-quarter start in recently-published research. But senior executives at its two co-owners, Enterprise Products Partners and Enbridge Inc., have only said that it will start up by the middle of this year.

An Enterprise spokesman this week said that the second quarter was the most likely time for commissioning the line, pointing to a comment by senior vice president Bill Ordemann, who said in late October that it would “probably” be in service in the second quarter of 2014.

The timing is important as oil traders bet that crude prices will sharply fall once the pipeline starts running and the Gulf Coast market gets saturated with oil. U.S. crude oil futures spreads have lately been volatile as a result.

PIPELINE BOOM

The Seaway Twin line will run parallel to the existing, reversed Seaway pipeline from Cushing, the delivery point for the U.S. oil futures contract, to Jones Creek, Texas.

It is one of a handful of pipelines that oil firms are building to move crude from Cushing to the Gulf Coast after oil from U.S. shale boom and Canadian oil-sand fields was left bottled up in the Midwest over the past few years.

TransCanada also plans to commission the southern leg of Keystone XL, now known as the Gulf Coast pipeline, by mid-January. Last week, near-term U.S. oil prices jumped higher when the firm began filling the 700,000 bpd line from Cushing to Port Arthur, Texas.

Together, the Seaway Twin and the Gulf Coast line could add up to 1.2 million bpd of crude takeaway capacity at Cushing, and run the risk of depleting inventories at the hub faster than they can be replaced.

Enterprise and partner Enbridge also plan to complete additional projects early next year, which will remove bottlenecks in the Gulf Coast region.

A 65-mile, 36-inch diameter lateral from Jones Creek to Enterprise’s ECHO terminal in Houston will be completed in January, allowing the reversed, older Seaway line to run closer to its 400,000 bpd capacity.

Market sources say the reversed Seaway line is now running at 80 percent of that capacity.

Another 30-inch diameter pipeline will connect the ECHO terminal to refineries in Beaumont and Port Arthur Texas by mid-year.

Source: The Texas Economy


WATChINg ThE WORLD

The U.S. Energy Information Administration (EIA) does not anticipate an immediate impact on global liquid fuels supply following the November 24 agreement between Iran and the five permanent members of the United Nations Security Council (the United States, United Kingdom, France, Russia, and China) plus Germany (P5+1) on Iran’s nuclear program. The agreement does not directly allow for additional Iranian oil sales, although it does suspend sanctions on associated insurance and transportation services to those countries already granted import waivers.

The imposition of sanctions on associated insurance and transportation services by the European Union (E.U.) had a significant effect on Iran’s exports when implemented in July 2012, but Iran has been able to create arrangements that allow it to export limited quantities of oil to several countries. EIA does not anticipate those countries significantly increasing their

oil imports from Iran, so without an easing of sanctions covering Iran’s ability to sell additional oil, the country is unlikely to significantly increase its production or exports in the short term.

Iran’s total liquids production and exports declined significantly as a result of sanctions imposed on its energy sector, and the recent agreement is not expected to significantly impact the existing sanctions regime for at least the next six months, according to official U.S. Department of State statements. EIA estimates Iranian crude oil production was 2.8 million barrels per day (bbl/d) in November 2013, down from an annual average of 3.7 million bbl/d in 2011 and 3 million bbl/d in 2012. Crude oil exports averaged just 1.1 million bbl/d over the first nine months of 2013, down from 2.5 million bbl/d in 2011 and 1.5 million bbl/d in 2012, according to the International Energy Agency.

Existing United States and E.U. sanctions target Iran’s petroleum exports and imports, prohibit large-scale investment in the country’s oil and gas sector, and cut off Iran’s access to European and U.S. sources of financial transactions. Additional sanctions target the Central Bank of Iran, while the E.U. imposed an embargo on Iranian oil and in July 2012 banned European Protection and Indemnity (P&I) Clubs from providing Iranian oil carriers with insurance and reinsurance.

Source: U.S. Energy Information Administration, International Energy Agency

IRAN’S OIL ExPORTS NOT ExPECTED TO INCREASE

SIgNIFICANTLY DESPITE RECENT NEgOTIATIONS


WATChINg ThE ShALE

TO FLEE OhIO OIL BOOM, AMISh CASh OUT

BY SELLINg ROYALTIESFarmers in the close-knit Amish community are among landowners capitalizing on a new financial trend in the United States energy boom.

Gulfport Energy Corp., Chesapeake Energy Corp., Anadarko Petroleum Corp. and others have spent billions developing oil and gas reserves on land in Ohio’s Utica shale formation - often by agreeing to give landowners years of royalties, or a cut of future production, in exchange for the right to drill on their land.

Some Amish, traditionalist Christians numbering about 280,000 across the United States, are sitting on prime

drilling land in eastern Ohio, but many say the rapid development is encroaching on their pastoral way of life.Already this year, several oil trucks have been involved in fatal collisions with Amish horse-drawn buggies in the region’s narrow and winding roads.

At least 36 Amish families plan to sell their royalty rights and make an exodus from the Buckeye State to parts of Pennsylvania or New York state with little or no energy development.

Source: Reuters - by Ernest Scheyder

Expectations for a record corn harvest in 2013 have helped lower corn prices since this summer, improving ethanol production margins and spurring an increase in the supply of ethanol.

During the 2012 corn-growing season, the United States experienced the most severe and far-reaching drought since the 1950s. By late August 2012, approximately 85% of the corn grown in the United States was located in a drought area, according to U.S. Department of Agriculture’s (USDA) World Agricultural Outlook Board. A projected 2012 record crop of 14.8 billion bushels of corn dwindled to a final production level of 10.8 billion bushels by the end of last year’s harvest period.

Abundant snow and rainfall in late winter and early spring revived prime corn-growing land. For 2013, the USDA is predicting a record-high corn crop of 14.0 billion bushels, a 30% increase over 2012. Much of the United States is still experiencing drought in 2013, but large portions of the Midwest avoided prolonged drought during the critical growing months.

The ethanol margin, the difference between the market price of ethanol and its cost of production adjusted by the value of co-products, is a measure of the profitability of producing ethanol. Between October 2012 and January

2013, the ethanol margin for producers was close to zero. The recent reduction in corn prices had a major impact on the profitability of ethanol production, because purchased corn is by far the largest cost incurred by ethanol producers. On average, one bushel of corn can be used to produce 2.8 gallons of ethanol.

Between January and November 2013, corn prices fell from about $7.50 per bushel to below $4.50 per bushel. A $3 reduction in the price of a bushel of corn translates into a roughly $1.08 reduction in the cost of ethanol production. While ethanol prices have also declined, ethanol producer margins have risen above $0.50 per gallon in recent months.

Improved margins have incentivized greater levels of ethanol production, with output recovering to pre-drought levels. At the same time, lower prices have made ethanol more economically attractive for refinery blending, and output of ethanol-blended gasoline has risen. Net use of ethanol by refiners and blenders reached an all-time high of 884,000 barrels per day in August 2013.

Source: U.S. Energy Information Administration, based on data from Bloomberg

WATChINg ThE NATION

ABUNDANT 2013 CORN hARVEST BOOSTS EThANOL PRODUCTION


RESTAURANTBiTes

by Marcy Madrid

MR. BROOKS BBQhome of the Fat Burger

If you plan on grabbing a bite to eat at Mr. Brooks BBQ in Midland, you’ll have to get there early if you want to try the famous chocolate pie. That’s an inside tip from Mr. Brooks himself since he says that pie is always the first to go. That’s what hooked Dale Myers and his dad over 25 years ago and he’s been eating at the popular lunch spot ever since. Dale said it started as a search to find someone who could make a homemade chocolate pie like his grandma, who was getting too old to make them as much. Although it was the pie that drew him in, Dale says he’s been coming back ever since because the food is just “amazing”.

Julius Brooks was working at furniture store in the late 70’s when he drove by the Texas street location and noticed a for sale sign. With a little bit of savings and a desire to start his own business, Mr. Brooks took his dream to the bank and was soon the proud owner of Mr. Brooks BBQ in August of 1979. After 6 months of leasing the building, Julius was doing well enough to buy it and has been serving locals and even a few dignitaries out of the Texas street building ever since. Not long after opening, Mr. Brooks BBQ became known for his wife’s homemade pies and one of his most popular menu items to this day, the infamous Fat Burger.

A catastrophic fire in 2009 threatened to shut Mr. Brooks’ lifelong work down, but he wasn’t going down without a fight. Determined to not let the perpetrators who set his restaurant on fire win, Mr. Brooks poured his life savings and all his retirement into getting the business back on its feet and back to serving those famous burgers and pies.

Today, during an average lunch time rush, Mr. Brooks shuffles about 80 people through his modest, downtown restaurant.

Julius’s middle son, Marcus is one of the several family members you’ll likely have waiting on you when you come to visit Brooks BBQ, since it’s a family owned and operated restaurant. Marcus was just a teenager when he says he remembers his dad opening the restaurant in the late 70’s. “Daddy, daddy” he remembers saying, “where’s all the people at?” “They’ll come son, they’ll come”, Julius assured him. And come they did and still do after over 35 years. Julius younger son, Rowland, has also been working at the restaurant since he was in elementary, helping after school.


Mr. Brooks BBQ501 East Texas Ave.

Midland, TX 79701

Call (432) 685-5079 for catering

After being through several booms and busts, Mr. Brooks says the downturn in our local economy never really impacted his business since his food has always been affordable and people still have to eat. The biggest impact has been the recent restaurant boom on the loop which has drawn away most of his dinner crowd in the evenings. His family owned restaurant is still going strong though and as Mr. Brooks looks forward to his 74th birthday in December, he’s also looking forward to passing the torch onto the younger members in the family to carry on the Fat Burger and chocolate pie legacy.

Julius Brooks was a Midland City Councilman from 1992-2000 and spent 4 years as County Commissioner. Coincidentally, one of the main projects he helped facilitate as a councilman was brining that popular Loop 250 to town that has now pulled away his dinner crowd. Mr. Brooks was also instrumental in the concept development and construction of Washington Pool.


I began thinking about this because of the way the Bible describes community among Jesus’ first followers. They were devoted to gathering together for worship and the Apostles teachings. They ate together and prayed for one another. When there was a need, some in the group would sell their possessions to meet the need of their friend. This seems like a dynamic community. Is that kind of community possible today in 2014?

It seems that in our culture of rear entry garages and ears plugged with phones and ipods, a community consisting of personal and meaningful interaction is a distant aspiration. It’s a lot easier to quickly comment on multiple posts on Facebook than to have ONE conversation with ONE neighbor that absorbs an hour of your evening. It’s easier for us to spend our money on our self if we never have a conversation with a friend to discover that they are in need. If we are all honest, isn’t

Daniel Stephens is the Senior Pastor of Mid-Cities Community Church, since 2006. He is the honored husband to Kayla Stephens, a proud father of twin sons Jonah & Jude, daughter Kampbell, and a precious adopted daughter.

by Daniel Stephens

Confession: I’ve only talked to one of my neighbors four times in the four years since we moved into our house.

At least I think it’s four, possibly five, maybe three. I am sure she’s a nice lady. She probably takes mission

trips to third world countries to personally dig water wells while spreading the gospel and feeding the orphans.

She probably has tons of wisdom and grace and a story that would blow my mind…but I wouldn’t know. It’s

not her fault; we have not mounted any hospitality campaigns since we settled into our home. Of course there

is occasional talk of a barbeque or an outdoor picnic on the block but as summer wanes, and schedules refuse

to let up, the idea fades like a new years gym membership. Great intentions, miserable follow through.

Create the Community

you Crave...


there a part of us that gets tired of the weekly wave in the front lawn but rarely a real conversation? Isn’t there a piece of us that gets worn out by the same superficial conversation we have on a Sunday morning at church?

I know there is something more than polite waves in the street and occasional conversations over a Christmas card, because I’ve experienced it. I’ve lived in a neighborhood where bread was broken, needs were met, prayers were spoken over one another. I’ve been a part of churches where it wasn’t an acquaintance fest. Where real people opened up their hearts and lives to friendship, accountability, and service. Where people had fun, and laughed, and cried, and prayed together.

I’ve noticed a common thread in these environments. People who were willing to take the first step. People who were willing to be vulnerable. People who wanted it enough to take risks. They didn’t wait for someone else to create the community they desired; it mattered enough to them to be the catalyst themselves.

As we begin this New Year, let’s consider creating the community we crave. Putting down Facebook and inviting the neighbors over for a last minute impromptu bowl of soup (I know, it goes against our grain to invite over a guest and have a normal meal…but isn’t that the point? Real community eats together with what they have on hand.)

What about getting plugged into your local church, not because its’ a credit with the “Big Guy” but because there is a community that can exist that you are not experiencing, or maybe haven’t experienced in a long time. Whatever you do, my encouragement to you is this; BE THE ONE. The one who takes the risk, knocks on the door, starts a small group at church, opens up and asks for prayer, and doesn’t stop until you experience the kind of community you were made to crave.

Follow Daniel on Twitter: @DanielBstephens


States & Districts

Four Week Average 2012


Last Week

This Week



Last Week

This Week

Waiting to Spud

Texas RRC District 1 141 131 134 134 144 133 136 140 8






Texas RRC District 7B 22 13 13 13 30 18 19 18 4

Texas RRC District 7C 73 76 79 78 71 83 84 84 5


Texas RRC District 8A 42 40 39 38 37 40 38 38 0



Texas Total 854 836 839 846 842 843 846 840 45

U.S. Totals 1,811 1,774 1,775 1,782 1,940 1,985 1,989 1,991 76

BAKER hUghES RIg COUNT RIgDATA RIg COUNT

through December 20, 2013

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This report is protected under United States and international copyright laws and is intended for the exclusive use of the subscriber. Any unauthorized reproduction, retransmission, distribution, publication, broadcast or circulation of this report to anyone, directly or indirectly, without the express prior written

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U.S. RIG COUNT - TEXAS


RANK Company Footage Drilled % of Total Average Footage Well Starts % of

TotalDirectional

Wells

1 Helmerich & Payne, Inc. 49,536,453 16.9% 10,446 4,742 12.9% 4,166

2 Patterson-UTI Drilling Company, LLC 29,416,520 10.0% 10,336 2,846 7.8% 2,431

3 Nabors Industries, Ltd. 26,330,929 9.0% 8,226 3,201 8.7% 2,885

4 Precision Drilling Trust 13,534,506 4.6% 9,572 1,414 3.9% 1,261

5 Ensign Energy Services, Inc. 12,647,695 4.3% 6,667 1,897 5.2% 1,060

6 Nomac Drilling, LLC 10,999,126 3.7% 9,515 1,156 3.1% 1,153

7 Trinidad Drilling, Ltd. 8,305,325 2.8% 10,703 776 2.1% 644

8 Pioneer Energy Services Corp. 8,141,841 2.8% 9,716 838 2.3% 617

9 Unit Drilling Company 7,990,238 2.7% 9,039 884 2.4% 858

10 Cactus Drilling Company, LLC 6,577,139 2.2% 10,473 628 1.7% 583

11 Capstar Drilling, LP 5,931,502 2.0% 6,440 921 2.5% 17812 Savanna Energy Services Corp. 5,105,385 1.7% 9,818 520 1.4% 17713 Xtreme Drilling and Coil Services Corp. 4,225,669 1.4% 10,109 418 1.1% 404

14 Sidewinder Drilling, Inc. 4,062,890 1.4% 8,292 490 1.3% 367

15 Desoto Drilling, Inc. 3,987,671 1.4% 4,470 892 2.4% 888

16 Cyclone Drilling, Inc. 3,598,428 1.2% 7,497 480 1.3% 460

17 Complete Production Services, Inc. 3,154,015 1.1% 9,950 317 0.9% 111

18 Sendero Drilling Company, LLC 3,039,701 1.0% 11,558 263 0.7% 0

19 CanElson Drilling, Inc. 3,003,752 1.0% 10,287 292 0.8% 48

20 Orion Drilling Company, LLC 2,521,746 0.9% 11,462 220 0.6% 208

21 Lariat Services, Inc. 2,418,820 0.8% 6,485 373 1.0% 178

22 Robinson Drilling of Texas, Ltd. 2,417,075 0.8% 11,088 218 0.6% 1

23 Latshaw Drilling & Exploration Company 2,323,024 0.8% 7,718 301 0.8% 296

24 Scandrill, Inc. 2,301,451 0.8% 12,113 190 0.5% 158

25 SST Energy Corporation 1,993,322 0.7% 9,271 215 0.6% 178

26 Big Dog Drilling Company 1,685,817 0.6% 11,789 143 0.4% 11

27 Basic Energy Services, Inc. 1,628,468 0.6% 6,702 243 0.7% 59

28 Lewis Petro Properties, Inc. 1,569,200 0.5% 11,371 138 0.4% 136

29 Silver Oak Drilling, LLC 1,484,306 0.5% 8,156 182 0.5% 89

30 Bison Drilling and Field Services, LLC 1,449,816 0.5% 10,583 137 0.4% 10

31 ProPetro Services Incorporated 1,421,850 0.5% 11,560 123 0.3% 0

32 Frontier Drilling, LLC 1,360,867 0.5% 8,724 156 0.4% 142

33 Cade Drilling, LLC 1,340,286 0.5% 10,310 130 0.4% 124

34 Murfin Drilling Company, Inc. 1,333,965 0.5% 4,764 280 0.8% 0

35 Aztec Well Servicing Co. 1,280,607 0.4% 6,340 202 0.6% 94

Total Top 100 for year 2013 293,764,112 100.0% --- 36,702 100.0% ---

Each month we track the activity of all the drillers and compile the results into a report that identifies the top 35 out of 100 drillers based on their footage drilled. Updated monthly, these reports also detail the number of well starts and the number of directional wells drilled by each of the top 35 out of 100.

TOP 35 DRILLERS RANKINGS



RANK Company Footage Drilled % of Total Average Footage Well Starts % of

TotalDirectional

Wells

1 Anadarko Petroleum Corporation 15,949,792 5.4% 10,101 1,579 4.3% 1,519

2 Chesapeake Energy Corporation 11,341,275 3.9% 10,338 1,097 3.0% 1,097

3 EOG Resources, Inc. 9,955,930 3.4% 10,580 941 2.6% 889

4 Apache Corporation 9,332,445 3.2% 8,738 1,068 2.9% 501

5 Devon Energy Corporation 8,974,521 3.1% 9,205 975 2.7% 900

6 Pioneer Natural Resources Company 8,680,209 3.0% 13,014 667 1.8% 379

7 Occidental Petroleum Corporation 8,405,270 2.9% 6,060 1,387 3.8% 650

8 BHP Billiton Limited 7,756,640 2.6% 13,305 583 1.6% 574

9 Marathon Oil Corporation 5,961,871 2.0% 14,942 399 1.1% 399

10 Exxon Mobil Corporation 5,713,640 1.9% 7,260 787 2.1% 507

11 Encana Corporation 5,653,272 1.9% 10,727 527 1.4% 50712 Chevron Corporation 5,237,301 1.8% 4,631 1,131 3.1% 42313 ConocoPhillips Company 5,212,936 1.8% 9,114 572 1.6% 449

14 Southwestern Energy Company 4,743,502 1.6% 4,720 1,005 2.7% 1,001

15 Concho Resources, Inc. 4,516,427 1.5% 10,552 428 1.2% 193

16 Continental Resources, Inc. 4,312,213 1.5% 7,272 593 1.6% 592

17 QEP Resources, Inc. 4,274,589 1.5% 11,103 385 1.0% 366

18 Whiting Petroleum Corporation 3,802,200 1.3% 9,602 396 1.1% 319

19 Noble Energy, Inc. 3,661,044 1.2% 9,485 386 1.1% 380

20 Royal Dutch Shell, plc 3,139,572 1.1% 12,762 246 0.7% 243

21 SandRidge Energy, Inc. 3,097,893 1.1% 5,269 588 1.6% 426

22 Newfield Exploration Company 2,922,181 1.0% 7,058 414 1.1% 392

23 Oasis Petroleum North America, LLC 2,650,636 0.9% 10,078 263 0.7% 262

24 CrownQuest Operating, LLC 2,566,900 0.9% 12,051 213 0.6% 0

25 EP Energy E&P Company, LP 2,522,645 0.9% 10,424 242 0.7% 214

26 Murphy Oil Corporation 2,510,766 0.9% 10,206 246 0.7% 244

27 Linn Energy, LLC 2,356,612 0.8% 8,859 266 0.7% 103

28 Energen Resources Corporation 2,336,400 0.8% 9,198 254 0.7% 47

29 Hess Corporation 2,298,557 0.8% 6,001 383 1.0% 383

30 SM Energy Company 2,171,652 0.7% 9,652 225 0.6% 218

31 WPX Energy, Inc. 2,136,050 0.7% 7,443 287 0.8% 283

32 Parsley Energy Operations, LLC 2,023,450 0.7% 12,726 159 0.4% 1

33 BP, plc 1,831,355 0.6% 10,405 176 0.5% 170

34 Cimarex Energy Co. 1,807,192 0.6% 10,631 170 0.5% 157

35 Statoil, ASA 1,760,798 0.6% 8,717 202 0.6% 202

Total Top 100 for year 2013 293,764,112 100.0% --- 36,702 100.0% ---

Updated every month, we track and rank the top 35 out of 100 operators based on their footage drilled. Keep track of the most active operators with details on their number of well starts.

TOP 35 OPERATORS RANKINGS



While West Texas Intermediate (WTI) crude oil has traded at a persistent discount to Dated Brent crude since late 2010, the near-parity between Light Louisiana Sweet (LLS) crude and Dated Brent has only recently changed. In July, as U.S. refiners processed near-record amounts of crude oil, the discount of WTI relative to Brent narrowed to an average of $3.26 for the month, the lowest since December 2010. As the Brent-WTI spread began to widen again in September, the LLS price, which historically had closely tracked Brent, moved lower with WTI.

From January through August, LLS prices averaged $1.45 per barrel more than Brent, but since the start of September, LLS prices averaged $7.14 less than Brent. The opening of a large LLS discount to Brent and the increasing convergence of LLS and WTI prices result from pipeline expansions and reversals that have reduced bottlenecks in the U.S. mid-continent, continuing growth in domestic light oil production, and a seasonal decline in crude oil runs at U.S. Gulf Coast refineries during October.

Prior to this autumn, discounted crude oil prices had generally been limited to the U.S. mid-continent, where

crude oil production growth had outpaced the capacity of pipeline infrastructure to bring that production to refining centers on the U.S. Gulf Coast (Figure 1). Crude oil inventories at Cushing, Oklahoma, averaged approximately 50 million barrels throughout the first half of this year, but then fell by an unprecedented 17 million barrels over 14 weeks starting in July as pipeline capacity expansions and pipeline reversals alleviated transportation bottlenecks from the mid-continent to the Gulf Coast.

The small average premium of LLS relative to Brent that persisted through August of this year reflected a price structure that enabled importers of light sweet crude oil to cover the cost of waterborne shipment to the LLS pricing point in eastern Louisiana on the U.S. Gulf Coast. However, recent infrastructure changes, coupled with continued growth in U.S. light crude production, have changed the market equation. The reversal of Shell Oil’s Houma to Houston (Ho-Ho) pipeline, which traditionally shipped offshore crude oil production (including LLS) from Houma, Louisiana to the Houston area, is one notable example.

With growing light sweet production from Texas’ Eagle Ford and Permian fields finding its way to Houston and eliminating the need for westward flows on Ho-Ho, Shell decided to reverse the pipeline. In mid-August, Shell ceased westward flows on Ho-Ho to begin final work on the reversal. When westward flows on Ho-Ho stopped, supply of LLS in eastern Louisiana, its pricing point, outpaced demand from local refineries, and prices abruptly flipped from a premium to Brent to a discount. Shell has announced eastward flows on Ho-Ho will commence in early 2014.

The Ho-Ho reversal, additional infrastructure changes, growing domestic production, and a seasonal decline in

LIghT LOUISIANA SWEET (LLS) CRUDE OIL NOW SELLS AT A hISTORICALLY LARgE DISCOUNT TO BRENT

Source: www.eia.gov


crude oil runs at U.S. Gulf Coast refineries put downward pressure on crude oil prices on the U.S. Gulf Coast, which requires increasingly fewer crude oil imports to balance the market. The discount of the spot price for LLS, a key Gulf Coast light sweet crude oil grade, to Brent widened from an average of $3 per barrel in September to almost $11 per barrel in November.

Likewise, the discount of the spot price for Mars, a medium Gulf Coast crude oil grade, to Dubai, an international crude marker of similar quality, increased from an average of $4 per barrel in September to $13 per barrel in November. The price difference between WTI and LLS, which has averaged $3.12 since August 1, is consistent with the pipeline cost to bring barrels from Cushing to the Gulf Coast.

U.S. crude oil production continues to grow, recently topping 8 million barrels per day for the first time since November 1988. In the December Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) expects U.S. crude oil production will average 7.5 million barrels per day (bbl/d) in 2013 and increase to 8.5 million bbl/d in 2014. The growth in U.S. crude oil production will put continued downward pressure on U.S. crude oil prices such as WTI and LLS.

Looking forward, EIA expects the Brent crude oil price to weaken as non-OPEC supply growth exceeds growth in world consumption. The Brent crude oil price is projected to average $108 per barrel in December 2013 and $104 per barrel in 2014. EIA expects that WTI crude oil prices will average $96 per barrel during the fourth quarter of 2013 and $95 per barrel during 2014. The discount of WTI crude oil to Brent crude oil, which averaged $18 per barrel in 2012 and then fell to $3 per barrel in July 2013, averaged $14 per barrel during November. EIA expects the WTI discount to average $12 per barrel during the fourth quarter of 2013 and $9 per barrel during 2014. The price for LLS crude is expected to continue to move in step with the WTI price plus the pipeline tariff.

gASOLINE AND DIESEL FUEL PRICES BOTh DOWN LESS ThAN A PENNY

The U.S. average retail price of regular gasoline decreased less than one cent to remain at $3.27 per gallon as of December 9, 2013, eight cents lower than

last year at this time. Prices increased one cent in the Midwest to $3.13 per gallon and less than one cent on the West Coast to remain at $3.48 per gallon. The largest decrease came in the Rocky Mountain region, where the price fell four cents to $3.08 per gallon. On the Gulf Coast the price was $3.10 per gallon, two cents lower than last week, and on the East Coast the price dropped a penny to $3.38 per gallon.

The national average diesel fuel price decreased less than one cent to remain at $3.88 per gallon, 11 cents lower than last year at this time. Prices increased less than one cent on the East Coast to remain at $3.91 per gallon, while decreasing one cent in all other regions of the nation. Prices were $3.87 per gallon, $3.77 per gallon, $3.85 per gallon, and $3.99 per gallon, in the Midwest, Gulf Coast, Rocky Mountains, and West Coast, respectively.

PROPANE INVENTORIES FALL

U.S. propane stocks fell by 1.7 million barrels to end at 52.6 million barrels last week, 18.6 million barrels (26.1%) lower than a year ago. Midwest regional inventories dropped by 1.5 million barrels, and East Coast inventories decreased by 0.2 million barrels. Rocky Mountain/West Coast inventories decreased by 0.1 million barrels, while Gulf Coast inventories increased by 0.1 million barrels. Propylene non-fuel-use inventories represented 5.8% of total propane inventories.

RESIDENTIAL hEATINg FUEL PRICES INCREASE

Residential heating oil prices increased almost 4 cents per gallon last week during the period ending December 9, 2013 to nearly $3.96 per gallon. This is almost 3 cents per gallon lower than last year’s price at this time. Wholesale heating oil prices decreased nearly 2 cents per gallon last week to $3.14 per gallon.

The average residential propane price increased by almost 6 cents per gallon last week to $2.62 per gallon, 37 cents per gallon higher than the same period last year. Wholesale propane prices increased nearly 12 cents per gallon to $1.52 per gallon as of December 9, 2013.


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January 2014 Issue