Oil & Gas Monthly June Issue 2012

EaglE Ford ShalE Play

Inside On Page 9

2 ) Magazine

table of contents:

OIL & GAS MONTHLY, locally owned and operated, was designed to give the oil and gas companies an affordable marketing vehicle to promote their business or services.

Delivered monthly to each oil and gas company via the USPS for a fraction of the cost of a postage stamp, OIL & GAS MONTHLY uses vibrant colors and award winning design.

The unique, differentiated format is big, hard to ignore and demands attention when it arrives in the mailbox. With our years of experience in helping businesses grow their sales and brand recognition, we always look forward to partnering with you to help achieve your marketing objectives.

Call Us Today &Be Seen Next Month

NEED TO ADVERTISESPECIFICALLY FOR

THE OIL FIELD?advertisers:

5 abilene iphone repair 325.370.3067

3 american crane 432.367.3820

11 american eagle logistics 432.563.5392

13 big tex trailer 432.563.0300

27 bond coat inc 432.563.1472

27 brooks smith 432.528.2980

25 chas middleton and son 806.763.5331

23 cisco ford 432.550.9181

4 comfort inn 432.756.1100

32 crude zone 432.279.0651

21 eagle propane & fuels 432.530.1100

31 h & h beverage 325.695.7080

8 hercules barak llc 432.978.3199

7 home creek energy 888.457.2722

11 hughes oilfield transportation 432.580.4975

27 kirkland bros. inc. 432.563.1700

15 light tower parts plus 432.684.9900

11 mesquite oil tools inc. 432.563.1071

8 rig tech 432.362.2789

20 shack energy services 000-000-0000

7 sierra valve & equipment 432.620.0419

8 slip service company 432.332.9892

17 tigé boats 325.784.7676

28 vip sports 325.676.1199

4 warren cat 432.664.7968

21 west texas plastics 432.563.4005

31 wolfe pak www.wolfepak.com

325.829.8098or

432.889.8155Find us onFacebook

www.oilgasmonthly.com

June 2012 Edition ( 3Advertising Information Call: 325-829-8098

4 ) Magazine


6 ) Magazine


8 ) Magazine


10 ) Magazine

C A L E N D A R O F E V E N T S

June 5-7, 2012 SPE Americas Unconventional

Resources ConferencePittsburg, PA

David L. Lawrence Convention Center

June 9, 2012 East Texas Oilman’s Clay Shoot

Gladewater, TXPrairie Creek Ranch

www.prairiecreekranch.net

June 12-14, 2012 Global Petroleum Show

Calgary, CanadaStampede Parkwww.aogr.com

June 15, 2012 AADE - Permian Basin Chapter- Clay Shoot

Midland, TXWindwalker Farms Sporting Clay

www.windwalkerss.com

June 15-16, 2012 API - Williston Chapter - Golf Tournament

Williston, NDEagle Ridge Golf Clubwww.willistonapi.com

June 17, 2012 Fathers Day

June 20-21, 2012 SPE Deepwater Drilling and

Completions ConferenceGalveston, TX

Moody Gardens Hotel

June 20-21, 2012 Atlanta Canada Petroleum Show

Newfoundland, CanadaMile One Center

www.alanticcanadapetroleumshow.com

June 20-22, 2012 Mid Continent Oilman’s Golf Tournament

/ Desk & Derrick Putting ContestOklahoma City, OK

Twin Hills Country Clubwww.okcoilmens.com

June 28-30, 2012 Oilman’s Saltwater Championship

Lake Charles, LACalcasieu Point

July 4, 2012 Independence Day

July 19-21, 2012 TOCIFT - Texas Oilman’s Charity Invitational Fishing Tournament

Matagorda, TXMatagorda Harbor

www.tocift.org

July 24-26, 2012 DeepGulf 2012Galveston, TX

Glaveston Island Convention Center

July 27, 2012 Oilman’s Clay Shoot

Midland, TXWindwalker Farms Sporting Claywww.windwalkerss.com/calendar

If you have an event that you would like listed in the next issue of Oil & Gas Monthly, please email it to [email protected]

JUNE 2012


12 ) Magazine


14 ) Magazine


16 ) Magazine

process of creating a strong oil market. Sources believe that Taylor County’s oil market will continue to grow even stronger once increased drilling begins. An increase in oil drilling in Abilene could provide a big boost to the city’s local economy and possibly the economies of other neighboring cities as well. As the scale of drilling in Abilene continues to increase, many more drilling companies are also likely to begin looking to drill inside of Taylor County. Sources say that Union Drilling Company has already began seeing good results from their drilling projects in Taylor County and has set a good standard as one of the main leaders helping make increased drilling possible in Abilene. Sources also believe that other drilling companies from cities such as Midland, Odessa and Houston, Texas have also been showing interest in drilling in Taylor County as well. Talks have already begun between city officials and oil executives. Once all of the drilling requirements are met, increased drilling is likely to begin taking place in Abilene soon.

there is

Oil inAbilene

written by: David Singleton

bilene, Texas may be preparing to increase the scale of oil drilling inside the city’s limits, and according to sources, the increase in drilling may begin taking place in the not too distant future. According to these sources, oil was discovered underneath land in the city of Abilene, approximately a year ago, back in 2011. Before increases in drilling would begin in the city of Abilene, there are still several requirements that would need to be met. Below, several of the requirements have been listed.

1. All City, County, State, and Federal requirements must be met.2. The cost of drilling in the city of Abilene must be at or below what it would cost the oil drilling companies to drill in other cities where they currently drill.

Since the oil industry is driven by profit margin, the oil drilling companies are usually forced to follow the market when to comes to committing to long-term drilling projects. In places where there is more oil underneath the land there is also usually a bigger demand for drilling as well. Both of these factors contribute to the

A


18 ) MagazineRAILROAD COMMISSION OF TEXASNEWS RELEASE - MAY 23, 2012

daVId PorTEr Commissioner

Contact: Jennifer Perkins 512-463-8870

Commissioner David Porter Launches Initiative to Modernize Commission Flaring Rules

Flaring as Option of Last Resort

ustin - Railroad Commissioner David Porter, the state’s senior energy regulator, along with the Eagle Ford Task Force he chairs, has been studying and evaluating common-sense solutions to reduce flaring and venting associated with oil and gas production.

“Technical and engineering innovations have positioned Texas as the nation’s top natural gas-producing state and largest natural gas employer, with nearly 1.3 million direct and indirect jobs. In fiscal year 2011, oil and gas contributed about 10 percent of all revenue in the state’s general fund,” said Porter. “This is great news, but we must address flaring that is associated with the rapid industry expansion. I have traveled the state extensively and seen first-hand that activity is outstripping capacity and awaiting pipeline infrastructure.”

Commissioner Porter’s initiative includes the following:

• Ensuring operators fully comply with current Commission flaring and venting rules;• Amending Commission flaring and venting rules to comport with the increased production of the shale plays across the state, just as we are similarly amending water recycling rules;• Reviewing flaring technologies to encourage the use of efficient, environmentally protective and energy saving flares;• Working in partnership with all other state regulatory entities to streamline air emission rules, monitoring and reporting;• Working in partnership with Texas electrical energy regulators to identify opportunities for using excess gas as a strategic source of power generation, especially with the threat of weather-induced power curtailment; and• Studying a pilot program to use gas as a source of power for on-lease operations in lieu of flaring the gas.

Representative Jim Keffer, Chairman of the House Energy Resources committee, indicated his appreciation for the initiative. “I look forward to working with Commissioner Porter and examining these issues during the next legislative session,” said Keffer.

Trey Scott, an Eagle Ford Task Force member representing land owner and royalty owner interests,

applauded Commissioner Porter’s initiative. “I commend Commissioner Porter for his leadership to modernize the current flaring rules to ensure that oil and gas activities do not negatively impact the environment or public safety,” said Scott.

“We must proactively address flaring with fair, predictable, common-sense regulations based on science and fact. If we don’t, we can expect the anti-fossil fuel folks including the EPA to once again attempt to curtail oil and gas production in our state by using politically motivated rulemakings to implement their political agenda – not what is best for the people of Texas,” opined Porter.

“The Permian Basin Petroleum Association endorses Commissioner Porter’s initiative, and we pledge our full cooperation to identify reasonable solutions as the necessary infrastructure is being built,” added Doug Robison, chairman of the Permian Basin Petroleum Association.

Thure Cannon, Executive Director of the Texas Pipeline Association, said, “The pipeline industry is building pipelines at a record pace. Ordering steel and constructing pipelines unfortunately takes longer than drilling the well. Our industry will continue to work hard to catch up with the bevy of new production. We fully support and appreciate Commissioner Porter’s initiative on this issue and look forward to working with all parties involved.”

“I look forward to working with the oil and gas industry, fellow state agencies and legislators, and the public to ensure that responsible development and public safety remain our chief goal while recognizing that energy is the economic driver of our state,” concluded Porter.

David J. Porter was elected to the Texas Railroad Commission on November 2, 2010. A Certified Public Accountant and successful small business owner, Commissioner Porter has worked with oil and gas producers for nearly three decades providing strategic financial advice and tax counsel. He has a long record of pro-business, free market, conservative credentials.


20 ) Magazine


22 ) Magazine

Jacob has been creating art ever since he was a child and continues to approach the world with eyes wide open. Born and raised in West Texas, Jacob began photographing what he saw at age 8 and has continued to hone his craft, photographing weddings and fine art portraiture all over the United States and the world. Oilfield Imaging was born out of a curiosity with the oil business as well as a desire to showcase a different perspective of the industry. Jacob is not your traditional photographer, always striving to bring a unique perspective and dramatic flair to his images no matter the subject. Please visit www.oilfieldimaging.com to receive a portfolio of images for purchase on a variety of mediums including traditional lab printed framed and matted prints, gallery wraps, float wraps, and the unique metal printing. Oilfield imaging is also available for custom on location photography. Let us know how we can serve you.

cover artist

Jacob Moore,[email protected]

feature:


RAILROAD COMMISSION OF TEXASMAY 9th, 2012

Barry T. SMIThErMaN Chairman

Contact: Casey haney 512-463-7144

Top Texas Oil & Gas Regulator Applauds Industry and Regulator Efforts to Stop Dunes Lizard Listing

Railroad Commission Chairman Barry Smitherman cautions Obama Administration to base decision to list on science and fact – not politics.

ustin –– As the lead Texas regulator of the oil and gas industry, Railroad Commission Chairman Barry Smitherman praised the efforts of industry and fellow regulators to keep the Dunes Sagebrush Lizard off of the Endangered Species List.

“The habitat for this lizard happens to be over the richest oilfield in the country, and listing this lizard as endangered would be a disaster for our economy and our energy future. President Obama says he’s for an “all of the above” energy strategy. If that’s really true, he should demand that his political appointees make decisions based on fact and science – not politics. Calling this lizard ‘endangered’ would lead to higher gas prices and more reliance on oil from hostile dictators like Hugo Chavez in Venezuela,” Smitherman said.

“The facts do not support this listing. Private companies and Texas universities have supplied the Department of Interior with countless studies, reams of data and hours of expert testimony that all point to one conclusion: the Dunes Sagebrush Lizard should not be listed as threatened or endangered,” he continued.

“I will continue to work closely with the industry and the public to ensure this lizard is not listed as threatened or endangered. Even though our goal is to stop the listing in the first place, I am gearing up for a court challenge should the Obama Administration decide to list this lizard. I’m already challenging a half-dozen politically motivated Obama regulations in various courts. This will be one more I will fight to the finish,” concluded Smitherman.

The Permian Basin is responsible for more oil production than any other area in the United States, and the Dunes Sagebrush Lizard habitat is in the Permian Basin region. Listing the lizard as threatened or endangered will slow down or even halt production there, resulting in higher gas prices and higher commodity prices for Americans.

Chairman Barry Smitherman was appointed to the Railroad Commission of Texas in July 2011, and was elected Chairman in February 2012. Chairman Smitherman currently serves as Texas’ representative on both the Interstate Oil and Gas Compact Commission and the Southern States Energy Board, and as Vice Chair of the National Association of Regulatory Utility Commissioners’ Gas Committee. He is on the Visiting Committee of the Bureau of Economic Geology with the Jackson School of Geosciences at The University of Texas at Austin, The University of Texas School of Law Center for Global Energy, International Arbitration, and Environmental Law, and the Eanes Education Foundation Advisory Board.

A


26 ) MagazineRAILROAD COMMISSION OF TEXASNEWS RELEASE - APRIL 26, 2012

Barry T. SMIThErMaN Chairman

daVId PorTErCommissioner

BUddy garCIaCommissioner

Contact: ramona Nye 512-463-4817

RRC PRODUCTION STATISTICS AND ALLOWABLES FOR MAY 2012

ustin –– The Texas average rig count as of April 20 was 924, representing about 48 percent of all active land rigs in the United States. In the last 12 months, total Texas reported production was 417 million barrels of oil and 7.2 trillion cubic feet of natural gas.

The Commission’s estimated final production for February 2012 is 37,326,151 barrels of crude oil and 478,457,488 Mcf (thousand cubic feet) of gas well gas.

The Commission derives final production numbers by multiplying the preliminary February 2012 production totals of 32,976,545 barrels of crude oil and 423,413,706 Mcf of gas well gas by a production adjustment factor of 1.1319 for crude oil and 1.1300 for gas well gas. (These production totals do not include casinghead gas or condensate.)

Texas natural gas storage reported to the Commission for March 2012 was 383,705,623 Mcf compared to 313,583,188 Mcf in March 2011. The April 2012 gas storage estimate is 379,204,711 Mcf.

The Texas Railroad Commission’s Oil and Gas Division set initial May 2012 natural gas production allowables for prorated fields in the state to meet market demand of 9,907,788 Mcf (thousand cubic feet). In setting the initial May 2012 allowables, the Commission used historical production figures from previous months, producers’ demand forecasts for the coming month, and adjusted the figures based on well capability. These initial allowables will be adjusted after actual production for May 2012 is reported.


28 ) Magazine


30 ) Magazine


Become our fan on Facebook

PMB 167 • 2438 Industrial Blvd.Abilene TX, 79605

PRSRT STD U.S. POSTAGE

PAIDSAN ANTONIO, TXPERMIT #244

Documents

Oil & Gas Monthly June Issue 2012