Volume 64, Issue 2 - Association of Desk and Derrick

Transcription

Association of Desk and Derrick Clubs
(Vol:64 • Issue:2) September 2015
Greater Knowledge – Greater Service
5153 E. 51st Street, Suite 107
Tulsa, OK 74135
Page 2
The Desk and Derrick Journal
The Association of Desk and Derrick Clubs
Iinside this Iiss
ue
ssUe
Letter From the Editors
2
President’s Letter
3
Iran Agreement
4
Pipeline Leak
5
UK Determined to Realize
Fracking Dream
6
Schlumberger Acquires Cameron
9
Welcome New Clubs
9
Energy from Landfills
10
Eagle Ford Production
11
Why Should Kids
Have All the Fun?
12
First Gas Pump and Service Station 14
Owls Could Make
Wind Turbines Quieter
17
WTI vs Brent
18
Educational Trust
Scholarship Recipient
19
Convention Pictorial
20
Natural Gas Exports to Mexico
22
Cheap Shale Gas
25
Drake Well Museum and Park
26
“Boom Town” Burkburnett 28
WV D&D Award Scholarships
30
Did You Know?
31
Around the Association
32
Life Gets Better with Age
37
2015 AIMEE Winners
38
How Crude Oil is
Converted into Gasoline
39
The Desk and Derrick Journal (DDJ) is the
official publication of the Association of Desk and
Derrick Clubs, an international energy education
organization. Byline and credited articles represent
the views of the authors. Publication in the DDJ
neither implies approval of the opinions nor accuracy
of the facts stated. The DDJ is published by the
Association of Desk and Derrick Clubs to provide
news of ADDC and the energy and allied industries
to its members. Bulk mailing rate postage paid at
Tulsa, OK.
CONTACT INFORMATION:
Deb McCuller ([email protected])
Donna Hartig ([email protected])
The Association of Desk and Derrick Clubs (ADDC) is an international
educational organization made up of individuals employed in or
affiliated with the petroleum, energy, and allied industries.
Mission Statement
To enhance and foster a positive image to the global community by
promoting the contribution of the petroleum, energy and allied industries
through education by using all resources available.
Purpose
The purpose of the Association shall be to promote the education and
professional development of individuals employed in or affiliated with
the petroleum, energy, and allied industries and to educate the general
public about these industries.
Cover Photo
Pumpjack with above ground pipeline system going to a refinery.
Photographer: Unknown
Letter from the Editor
www.addc.org
Hopefully, you found the first 2015 edition of the DDJ both educational
and informative. That was again our goal in this second edition. The
climate in our industry is constantly changing. To continue to be a viable
organization, we must keep pace with those changes.
In this issue we’ve included a collection of photos from the 2015
Convention held in September. For those that went, it’s a trip down
memory lane; and for those that weren’t able to attend, it gives you a look
into all the fun and educational opportunities that were offered. Thanks
again to Region V for hosting such an incredible Convention. We look
forward to including articles from the Convention in our next issue.
Great Knowledge – Greater Service is truly needed now more than ever.
Deb & Donna
Co-Editors:
Deb McCuller ([email protected])
Donna Hartig ([email protected])
Page 3
Volume 64, Issue 2
ADDC President’s Letter
Lori Landry
Dear Members,
The members of Region V promised us a fantastic time in Lubbock, and they certainly did not disappoint. The 2015 ADDC
Convention and Educational Conference in Lubbock, TX was a huge success loaded with education, networking and fun! A
tremendous thank you to the members of Region V who collaborated in the planning and execution of this event.
Congratulations to the officers who were elected to the ADDC Board for 2016. They include Connie Harrison, President;
Maggi Franks, President-Elect; Christina Forth-Matthews, Vice-President; Penny Jacobs, Secretary and Terry Ligon,
Treasurer. They will be joined by the seven newly elected Regional Directors, and I am honored to be serving with them as
Immediate Past President.
This year has been a very fruitful year for the Association. We have collaborated with Stevens and Stevens, a Marketing
Firm, and have produced two outstanding brochures - one for prospective members and one for employers. In addition, our
website has been totally revamped making it easier to navigate and member-driven. Stevens and Stevens have offered great
insight into who we are and where we need to be. It is up to you, the members, to make it happen!
I would like to take this opportunity to thank Deb McCuller and Donna Hartig for serving as Co-Editors of the DDJ this year.
The Board voted to produce two (2) education-filled publications and the co-editors certainly did not disappoint. Their hard
work and dedication in producing a quality publication for you, the members, is evident.
Now is the time to start looking towards 2016. Are you ready to “Step Up”? Are you ready to “Raise Your Voice”? Are you
ready to “Make a Difference”? The future of this Association depends on each of you. Let’s band together and “Step Up
This Association”!!
Thank you for allowing me the opportunity to serve as your 2015 ADDC President. This year has flown by so quickly.
Serving as your President, I have grown personally and professionally and have truly come to believe that “volunteering” is
the best thing for the soul. Thank you for the wonderful memories.
Lori Landry

Page 4
Iran Agreement is Two-Headed Monster
The United States oil market took a drastic fall in
November of 2014 due to a very specific reason.
The Organization of Petroleum Exporting Countries
(OPEC) decided at their Fall meeting that they would
not be reducing the amount of crude oil exported on the
world market; but indeed, they would be increasing the
output by their participating countries.
Production and prices simultaneously fell across the
previously productive shale oil plays around the United
States. The price of crude oil dropped from $115 down
to around $47. While it has crept back up into the mid$50 range, most producers are finding this price to still
be unprofitable. OPEC had one goal in mind and that
was to reduce the U.S. oil production market share at
the global level - and they succeeded.
Now that we have a brief reminder of how the industry
arrived at this downturn, we can fast-forward to this
week’s announcement from the White House of an
agreement being reached with Iran. The agreement on
the surface is to reduce Iran’s ability to produce nuclear
arms and to lift export sanctions on their ability to
export crude oil. How does this impact American oil
and gas producers?
This agreement is a two-headed monster for the United
States’ oil market. Not only does this agreement allow
Iran to dump more crude oil into an already flooded
market, but also it reminds American producers that
they still are not allowed to export their own crude oil
supplies.
For starters, the United States has a crude oil export ban
in place that was established in the 1970’s. The market
has changed, the demand has changed, the need for
greater national security has changed and yet we still
have a ban in place that does not allow our vast supply
of crude oil to be exported on the world market. But,
we are now lifting export sanctions on Iran’s ability to
export crude oil?
In addition to our own export problem, the pink elephant
must be addressed regarding Iran dumping oil into the
world market. How much will they contribute you
might ask? For starters, Iran will add 500,000 barrels of
oil a day to the world crude oil market. Media reports
are now saying that this number will likely double in
the next year to over 1 million barrels a day. In addition
to these figures, Iran reported to OPEC that they have
around 30 million barrels of oil sitting in tanks ready to
send to market.
Saudi Arabia had hinted that if Iran was able to begin
exporting again, the Saudis would reduce its daily output.
Thus far, the Saudis have not been too concerned with
reducing output. So, only time will tell if they indeed
drawback on production.
This agreement by the Obama White House ultimately
does one thing for the U.S. oil market: it further
perpetuates an already economy-devastating situation
for the oil and gas industry. This agreement also shows
our weakness from a national security standpoint by
allowing a known political enemy, Iran, the ability to
further dilute the American economy.
By Don Briggs, President,
Louisiana Oil and Gas Association July 15, 2015
Volume 64, Issue 2
Page 5
Pipeline That Leaked Oil Onto California Coast
Didn’t Have Auto Shut-Off Valve
and trying to locate the leak Saturday. Federal regulators
ordered the company to remove the damaged section
and send it to a lab for tests on the metal, along with a
series of other steps before it could resume pumping oil
through the pipe to inland refineries.
Plains said the pipeline had one valve to shut it down
if oil flowed in the opposite direction and three valves
controlled by operators in its Midland, Texas control
room.
Brian Melley, Associated Press, May 23, 2015
LOS ANGELES (AP) – The pipeline that leaked
thousands of gallons of oil on the California coast was
the only pipe of its kind in the country not required to
have an automatic shut-off valve because of a court fight
nearly three decades ago, a county official said.
The original owner of the pipeline skirted the Santa
Barbara County requirement by successfully arguing in
court in the late 1980s that it should be subject to federal
oversight because the pipeline is part of an interstate
network, said Kevin Drude, deputy director of the
county’s Energy and Minerals Division. Auto shut-off
valves are not required by federal regulators.
Plains defended its people approach to manually shut
down the system, saying it’s the standard across the
country for liquid pipelines.
“It’s much safer for operators who understand the
operations of the pipeline to shut it down following
a planned sequence of steps than for a computer to
automatically close a valve on oil that is traveling in a
confined space at high pressure,” Patrick Hodgins, the
company’s senior director of safety, said Saturday. “This
is all standard operating procedures within our industry.”
“It’s the only major pipeline that doesn’t have auto shutoff,” Drude said. “For us, it’s routine.”
Federal regulators are investigating the cause of
Tuesday’s leak that spilled up to 105,000 gallons of
crude oil from an underground pipe into a culvert and as
much as 21,000 gallons into the ocean at Refugio State
Beach. The spill killed untold numbers of fish, at least
five pelicans and a sea lion. It also mired other wildlife,
including an elephant seal, in the muck.
Plains All American Pipeline was still draining the pipe
While it’s not known if an auto shut-off valve would
have detected the leak and reduced the size of the spill,
environmentalists have criticized the lack of such a
device, saying it could have averted or minimized the
disaster.
“Everyone is pretty mystified why the pipeline didn’t
automatically shut down when the leak occurred,” said
Linda Krip, chief counsel of the Environmental Defense
Center.
Santa Barbara County regulations exceed state and
federal standards, requiring additional environmental
analysis or imposing conditions to further protect
health and the environment, Drude said. One additional
requirement is a valve that can detect changes consistent
with a leak and automatically shut down.
Page 6
UK
Determined To Realize
Its Fracking Dreams
By Andrew Topf ,
Contribution: Oilprice.com
August 23, 2015
The development of shale oil and gas reserves in the
United States has been credited with pulling the U.S. out
of recession, reducing the country’s reliance on foreign
oil, and recently, overtaking Russia as the world’s biggest
oil and gas producer.
Across the pond in the United Kingdom, oil and gas
production has always been centered in the North Sea;
but declining fields, high extraction costs, and shrinking
margins due to slumping crude oil prices have the British
government looking at shale to fulfill the island nation’s
appetite for fossil fuel-based power.
This week the government made clear its intention to
follow the American lead in using hydraulic fracturing
technology to exploit shale oil and gas reserves, by
opening up 27 new onshore oil and gas blocks for
exploration. A second group of 132 blocks will be offered
after an environmental assessment. The Oil & Gas
Authority says it has received almost 100 applications
from 47 companies, including British Oil and Gas
Company and France’s GDF Suez, both of which have
been granted licenses.
“As part of our long-term plan to build a more resilient
economy, create jobs and deliver secure energy supplies,
we continue to back our onshore oil and gas industry and
the safe development of shale gas in the UK,” Energy
Minister Lord Bourne said in a statement.
The Conservative government has actually taken its
support for the industry a step further by promising to
fast-track the permit process for oil and gas exploration,
stating last Thursday it will require local councils to
decide on shale permits within 16 weeks of an application.
“To ensure we get this industry up and running we can’t
have a planning system that sees applications dragged
out for months, or even years on end,” said Energy and
Climate Change Secretary Amber Rudd.
Rudd’s views reflect the frustration that pro-fracking
voices in the government, including Prime Minister
David Cameron and Chancellor George Osborne, must
feel over fledgling UK shale.
“Continued on page 7”
”
Volume 64, Issue 2
Page 7
“Continued from page 6”
Efforts by Cuadrilla Resources, one of the first companies
to attempt fracking in the UK, were all for naught when it
admitted that it caused small earthquakes near Blackpool.
Later the company’s request to frack in Lancashire was
denied by local planners. Since 2011, no new fracks have
taken place in Britain.
The reason, of course, is local opposition. Many councils
are reluctant to allow companies to do any exploratory
work, fearing a backlash from residents. Cuadrilla was
rejected for a permit based on the potential for noise
and typical NIMBY concerns such as how the site might
blight the landscape. The company had planned to drill
four wells to explore for shale gas. The fact that other
European countries, namely France and Germany, have
banned fracking, adds to the anti-fracking sentiment
among Britons.
However that hasn’t stopped the national government
from pushing a pro-fracking agenda. Undoubtedly its
enthusiasm is driven by the eye-watering shale oil and
gas reserves estimated to be contained in British rocks.
According to the British Geological Survey, there may be
over 1.3 quadrillion (a quadrillion is a thousand million
million) cubic feet of natural gas contained within the
country’s shale basins, mostly in the North, and 4.4
billion barrels of oil.
Finding that shale oil and gas, producing it and getting it
to market will go a long way towards meeting domestic
energy demand, especially for natural gas, which in
terms of primary production, is falling rapidly in the UK.
“North Sea oil and gas output has fallen by 38 percent
over the last three years. By 2020, we will be reliant on
imports to meet 70 percent of the country’s gas needs. So
when it comes to security of supply, there is a pressing
need for solutions,” Sam Laidlaw, the CEO of Centrica,
the British utility company, told an international energy
conference in Houston in 2014.
Those numbers are a big reason why the British
government continues to pursue fracking despite the
reticence of local governments and outright hostility
from certain anti-fracking quarters.
While three quarters of imported gas arrives via pipelines
from continental Europe, the rest has to be liquefied and
shipped in LNG tankers. In 2013 Centrica signed a deal
to import LNG from Qatar, which currently supplies 15
percent of UK gas.
Like the United States, Britain wants to reduce its
dependence on foreign oil and gas, and increase its
energy security, especially in light of ongoing turmoil
in the Middle East and recently in Russia. The dispute
between Russia and Ukraine that in January boiled over
into Gazprom cutting off gas supply to six European
countries, is a reminder of how vulnerable the UK is
to Russian gas exports. In May, Centrica, the owner
of British Gas, extended a gas supply contract with
Gazprom’s subsidiary in the UK to deliver 4.16 bcm per
year to the UK until at least 2021 – an increase of 70
percent.
As for how the government is going to square the circle
of trying to increase energy security, while assuaging the
public’s distaste for fracking, the jury is still out. The
chief of a British task force on the environmental and
health effects of shale fracking said in July that it’s too
soon to say whether fracking would be a “good thing”
for Britain.
“We have not yet concluded that fracking is a good idea
for the UK. We still have to look at climate change,
and the economics. It would be premature to make
conclusions yet on whether it is a good or bad thing. If
someone demonstrated that developing this industry in
the UK would mean a substantial raising of greenhouse
gas emissions, that would be a showstopper,” Lord Chris
Smith, a former Labour MP, told The Guardian.
A report from the taskforce found that fracking
could be safe if properly regulated and monitored.
Recommendations include “green completions” on frack
wells which mean collecting over 90 percent of the
methane and public disclosure of chemicals used.
Page 8
4I
1
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When we look at a place to live, work and play, we ask “What is there to do?” Crawford County has 7
beautiful lakes, 2 Wildlife Management Units, State Park, Amusement Parks, Wildlife Refuge, Recreation
Park, Brew Pubs, Wineries, Outdoor Markets. Hiking, Biking and Water Way Trails are abundant. Golf on
challenging, or totally fun golf courses.
coursesQuality
feature
rolling hills with tree and water lined holes.
"WhatOur
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of Life?"
You can actually play 18 holes of golf
with aCounty,
cart forPennsylvania
$28. Love to
camp? Choose from a KOA to over 4,000
Crawford
Does!
campsites. Don’t want to camp? Rent a lake front cottage and bring your boat!
When we look at a place to live, work and play, we ask "What is there to do?" Crawford County has 7 beautiful lakes, 2 Wildlife
Crawford
County
is home
to the Drake
Museum
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Edwin
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Titusville’s Annual Oil Festival
is held in August.
Crawford County is home to the Drake Well Museum in Titusville. Edwin L. Drake drilled the first successful commercial oil well
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Boat
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and with
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country western acts to perform at our Fair, have included; Toby Keith, Allan Jackson, Lady Antebellum and Charlie Daniels,
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Crawford County Convention & Visitors Bureau
Visit Crawford.org
Come Visit Us Soon and Stay A While!
Crawford County Convention & Visitors Bureau
Page 9
Volume 64, Issue 2
SCHLUMBERGER ACQUIRES CAMERON
(Schlumberger, Houston) Schlumberger and Cameron
jointly announced a definitive merger agreement in
which the companies will combine in a stock and cash
transaction. The agreement was unanimously approved
by the boards of directors of both companies. The
transaction combines two complementary technology
portfolios into a “poreto-pipeline” products and
services offering to the
global oil and gas industry.
On a pro forma basis,
the combined company
had 2014 revenues of
$59 billion. Cameron
is a leading provider of
flow equipment products,
systems and services to
worldwide oil and gas
industries. The company
employs over 24,000
full-time personnel and
operates in more than
300 locations around the
world.
ADDC’s
Newest
Clubs
Oil Heritage Desk and Derrick Club (Region I)
Home of the Drake Well in Titusville, PA
Chartered May 15, 2015 with 24 members.
The Lone Star Desk and Derrick Club (Region IV)
Located in Dallas, Texas
Chartered July 16, 2015 with 47 members
near, Chairman
Page 10
nErgy from Landfill
andfiLL
Energy
G
gas and
and M
mEethane
th
hanE
Source: Conservation Service Group http://www.csgrp.com
Landfill gas, released as solid waste decomposes, can
be used to generate electricity in a very cost-effective
manner. This gas is a mixture of methane, carbon
dioxide, and other organic compounds.
How is landfill gas captured and turned into energy?
Landfill gas, produced when anaerobic bacteria break
down organic waste, is extracted using a series of wells
or a vacuum system. Gas is then collected in a central
location for processing. The gas may be used to generate
electricity onsite, or it may be upgraded to pipelinequality gas. Combined with natural gas, it can fuel
conventional combustion turbines or used to fuel small
combustion or combined cycle turbines.
Some landfills are too small or otherwise unsuitable
for large-scale production. A microturbine, a type
of combustion turbine, may be used at these sites.
Microturbines generate energy by burning fuel (landfill
gas) to spin a turbine which activates a generator. Landfill
gas may also be used to fuel cell technologies, which use
chemical reactions to efficiently create electricity.
Isn’t methane gas a cause of global warming?
Yes. This is a major benefit of processing and using
landfill gas to produced energy. The methane produced
by landfills is a potent greenhouse gas and thus a major
contributor to environmental problems. However,
when methane gas is burned, it converts to less harmful
substances such as CO2 and water. Therefore, although
landfill gas is neither entirely renewable nor completely
clean as a fuel source, it has many benefits in comparison
to fossil fuel sources of electricity generation.
Page 11
Volume 64, Issue 2
Eagle Ford Production
Remains Resilient,
Wood Mac says
WorldOil.com 08/26/2015
HOUSTON—Despite the slowdown, production growth
in the Eagle Ford remains resilient as sweet spots
emerge across all active sub-plays, according to Wood
Mackenzie’s North America Key play analysis.
Wood Mackenzie divided the Eagle Ford into 9 distinct
sub-plays, and results show that its core areas are still
some of the most attractive oil and gas investment
opportunities across the globe.
“Market participants are currently focused on rig count
and waiting for production to roll over, but that’s not
really happening yet. Companies are still increasing
production over 2014 averages, and active rigs are
producing more,” says Jeremy Sherby, Research Analyst
Lower 48 Upstream Oil and Gas, Wood Mackenzie.
Production growth will slow in the near term, but the
full effect of lower oil prices is moderated by improved
recoveries as operators retrench to the core areas.
“We still believe that the Eagle Ford will hit 2 MMbpd
of oil and condensate production in 2020, but the path to
get there will be different,” notes Sherby.
Wood Mackenzie increased type well Estimated Ultimate
Recovery’s (EURs) in six of the nine sub-plays as a
result of continued improvements in well performance.
The analysis highlights that three core sub-plays (Karnes
Trough, Edwards Condensate and Black Oil) account for
about 75% of the play’s remaining NPV10 and will be
the source of much of the near term growth—to average
10% in 2015.
“The Eagle Ford has an enviable position as it continues
to outperform other shales and remains the focus of
Lower 48 tight oil development spend in 2015’,”
concludes Sherby.
The following are the key findings from Wood
Mackenzie’s analysis:
•
Year-on-year our total NPV is up $27 billion due
to well performance improvements as well as additional
derisking of acreage. Specifically in the Karnes Trough,
Wood Mackenzie has increased its type well EUR by
almost 15% of this ultra-core sub-play, which has the
lowest breakevens in the Lower 48 at $42/bbl.
•
While capex cuts have impacted all plays, the
Eagle Ford will attract the most spend of any Lower 48
tight oil play in 2015 at around $20 billion. Over 50%
of undrilled liquids volumes for the companies Wood
Mackenzie model breakeven below $60/bbl.
•
M&A activity is expected to remain subdued
through the end of 2015 as companies focus on core areas
and maintain as much financial flexibility as possible
•
Wood Mackenzie expects wells brought online in
2015 to fall to around 2,700—down from around 4,000
in 2014.
Page 12
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Why Should Kids Have All The Fun?
“Bit of Fun”
Energy Activity Book
io
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Secon
n
By Sheryl Cole, Phyllis Powell and Kay Warziniack
g
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For
years, Red River Club members have distributed
“Bit of Fun” Energy Activity Books (EAB) to area
elementary schools along with a program designed
to make learning about energy fun by using word
searches, secret messages, scrambled letters and lots of
coloring. For some, this was their first exposure to the
story of fossil fuels, hydrocarbons, petrochemicals, and
petroleum or what we call oil and natural gas. For others,
this gave them an opportunity to tell their classmates
about relatives employed in the industry or about their
family receiving royalty checks from oil and natural gas
production. All this is a good thing, but why should the
kids have all the fun?
That was what Phyllis Powell, Sheryl Cole and Kay
Warziniack thought when they came up with the idea of
presenting the EAB to the Red River Club members as
a regular meeting program. The fun part was that all the
members got to participate in the program by regressing
to their 4th grade personas for the evening, asking
questions and working the puzzles just as they would
expect 4th grade students would do.
Phyllis explained that petrochemical byproducts, such as
plastics and nylon, are a part of our daily lives. Students
were asked to name something they used in the morning
to get ready for school that was made of plastic. A
toothbrush was the most common article named; and,
of course, tooth paste is also a petrochemical byproduct.
Students also named clothing items they were wearing
that were made from nylon. Use your imagination for
this one. While students performed the connect the dots
in the “Early Uses of Petroleum” picture, Petro Sheryl
noted several other early uses of petroleum, such as,
using oil to preserve mummies, treat frostbite and lining
canoes with oil sands to keep out the water. A leaky
canoe could have meant big trouble.
Petro Kay explained that 300 to 400 million years ago
most of the earth was covered by oceans. As the plants
and sea animals died, they sank to the ocean floor. Over
time, the weight of the water and heat from the earth
turned them into sandstone, limestone and other types
of sedimentary rock. These same elements turned
the organic matter into petroleum (oil) or natural gas.
Drilling rigs are used to drill deep into the earth’s natural
formations to reach oil and gas. In the industry, this kind
of drilling is called “Turning to the Right.”
The “students” were then divided into teams (Drillers
and Pumpjacks) for a secret message and word search
competition. After the two games, teams were tied in a
ten to ten score. The final team completion, “What Does
Oil Do for You, would tell the tale of who would win
bragging rights for the “Bit of Fun” championship. Teams
were given one minute to find the most petrochemical
products in their purses or pockets. The Drillers ended
up with sixty-one products, winning the competition by
only four points; and you wondered why women like
those big purses!
Petro Sheryl walked students through a diagram of
how crude oil is sent to a refinery to be processed or
Page 13
Volume 64, Issue 2
changed into petrochemical byproducts to be used for
manufacturing, transportation (jet fuel and gasoline)
and in our homes. “Three-fourths of our crude oil and
one-third of the refined oil products are transported
by pipeline and semi-trucks. Petro Sheryl showed the
students a replica of a natural gas pipeline warning sign
that students might see in their neighborhoods or along
streets. These kinds of signs let people know there is a
pipeline carrying natural gas underground and that they
should use caution when digging and call for help should
they notice a rotten egg smell in the air.
Everyone was surprised to learn
that in the mid-1800s, the famous
journalist, Nellie Bly, was given
credit for inventing the fifty-five
gallon steel drum which replaced
wooden barrels which were heavier
and had a tendency to leak. Later,
because of the weight of the larger
drum, the forty-two gallon oil barrel
became the standard in the petroleum industry.
“What Products Do You Get From a Barrel of Oil?”
Each barrel of oil yields a variety of products essential to
our daily lives, such as:
Gasoline
19.5 gallons
Home heating and diesel fuel
9.2 gallons
Jet fuel
4.1 gallons
Residual fuel oil (fuels used in industry,
marine transportation and
electric power generation) 2.3 gallons
Liquefied refinery and still gasses
2.8 gallons
Coke
1.3 gallons
Asphalt and road oil
1.0 gallons
Petrochemical feedstocks
1.0 gallons
Lubricants and Kerosene
.6 gallons
Other .2 gallons
What is coke one student asked? Is that what Coke-Cola
is made of? Petro Kay explained that marketable coke
is a product at the bottom of the barrel of oil. Petroleum
coke is used in a fashion similar to coal, as an energy
source. Petro Kay and Petro Sheryl shared with the
students several ways that they and their families can
conserve energy, since oil and natural gas are nonrenewable resources meaning they cannot be created or
replaced in a short time.
The final activity for the class
was to make a “Petroleum
Parfait”.
By layering
parfait ingredients into
tall ice cream glasses, the
students created their own
edible slice of the earth’s
crust with a hydrocarbon
deposit at the bottom. The
ice cream glasses were filled
with fudge (Hydrocarbon/
Oil); ice cream (Limestone);
Crushed Oreos (Dolomite);
nuts
(Sand);
whipped
cream (Shale) and sprinkles
(Gravel). Colored diagrams
were furnished to each
student so they would be
sure to get the layers of the earth in order. You wouldn’t
want to turn the earth upside down, would you?
All the “Petroleum Kids” (students) were given a “Bit
of Fun” booklet and pencil pouch, containing crayons
and a pencil, to take home so they could complete the
remaining activities on their own.
Page 14
First Gas Pump and Service Station
A U.S. patent
resulted from the
popularity of a
pump designed
for “such liquids
as kerosene-oil,
burning-fluid,
and the light
combustible
products of
petroleum” and sold
two years earlier.
The gasoline service station with the first gas pump can
trace its roots to a pump that dispensed kerosene at an
Indiana grocery store in the late 1880s.
S. F. (Sylvanus Freelove) Bowser sold his newly invented
kerosene pump to the owner of a grocery store in Fort
Wayne, Indiana, on September 5, 1885. Less than two
decades later, the first purposely built drive-in gasoline
service station opened in Pittsburgh, Pennsylvania.
Bowser’s invention, which could reliably measure and
dispense kerosene – a product much in demand for half a
century – soon evolved into the metered gasoline pump.
Originally designed to safely dispense kerosene as well
as “burning fluid, and the light combustible products
of petroleum,” early S.F. Bowser pumps held up to 42
gallons.
S.F. Bowser added a
hose attachment for
dispensing gasoline
directly into automobile
tanks in 1905. His
popular Model 102
“Chief Sentry” with its
secure “clamshell” cover
followed.
Bowser kerosene pumps
used marble valves, a
wooden plunger and an
upright faucet. With the
pump’s popular success
at Jake Gumper’s grocery
store, Bowser formed the
S. F. Bowser & Company
and patented his invention
in late October 1887.
Within a decade – as the
automobile’s popularity
grew
–
Bowser’s
company became hugely
successful.
The S. F. Bowser “Self-Measuring
Gasoline Storage Pump” soon became
known as “filling stations.” An upper
clamshell closed for security when left
unattended.
Gas pumps with dials were followed by calibrated glass
cylinders. Meter pumps using a small glass dome with
a turbine inside replaced the measuring cylinder as
pumps continued to evolve.
Volume 64, Issue 2
Page 15
Manufactured in 1911, an S.F. Bowser Model 102
“Chief Sentry” pumped gas on North Capitol Street in
Washington D.C., in 1920. The Penn Oil Company’s
pump’s topmost globe, today prized by collectors, survived
only as a bulb. Photo from the Library of Congress.
Penn Oil Company filling stations were the exclusive
American distributor of Lightning Motor Fuel, a British
product made up of “50 percent gasoline and 50 percent
other chemicals, the nature of which is secret.” The
secret ingredient was likely alcohol.
First Gas Pump brings First Service Station
By 1905, the S. F. Bowser “Self-Measuring Gasoline
Storage Pump” was known to motorists as a “filling
station.” The original Bowser pump consisted of a
square metal tank with a wooden cabinet equipped with
a suction pump operated by hand-stroke lever action.
Beginning in 1905, Bowser added a hose attachment
for dispensing gasoline directly into the automobile fuel
tank. The popular Model 102 “Chief Sentry” with its
secure “clamshell” cover followed. With the addition of
competing businesses such as Wayne Pump Company
and Tokheim Oil Tank & Pump Company, the city of Fort
Wayne, Indiana, became the gas-pump manufacturing
capital of the world.
provided shelter from bad weather for motorists. “On
its first day, the station sold 30 gallons of gasoline at
27 cents per gallon. On its first Saturday, Gulf’s new
First Drive-In Service Station
Although Standard Oil will claim a Seattle, Washington,
station of 1907, and others argue about one in St. Louis
two years earlier, most agree that when “Good Gulf
Gasoline” went on sale, Gulf Refining Company opened
America’s first true drive-in service station. The motoring
milestone took place at the corner of Baum Boulevard and
St. Clair Street in downtown Pittsburgh, Pennsylvania,
on December 1, 1913. Unlike earlier simple curbside
gasoline filling stations, an architect purposefully
designed the pagoda-style brick facility offered free air,
water, crankcase service, and tire and tube installation.
“This distinction has been claimed for other stations in
Los Angeles, Dallas, St. Louis and elsewhere,” notes a
Gulf corporate historian. “The evidence indicates that
these were simply sidewalk pumps and that the honor of
the first drive-in is that of Gulf and Pittsburgh.” The Gulf
station included a manager and four attendants standing
by. The original service station’s brightly lighted marquee
Gulf Refining Company’s decision to open the first
service station (above) along Baum Boulevard in
Pittsburgh, Pennsylvania, was no accident. By 1913 the
boulevard had become known as “automobile row’”
because of the high number of dealerships.
service station pumped 350 gallons of gasoline,” notes
the Pennsylvania Historical and Museum Commission.
“Prior to the construction of the first Gulf station in
Pittsburgh and the countless filling stations that followed
throughout the United States, automobile drivers pulled
into almost any old general or hardware store, or even
blacksmith shops in order to fill up their tanks,” the
historical commission explains. The decision to open the
first station along Baum Boulevard in Pittsburgh was no
accident. By 1913 when the station was opened, Baum
Boulevard had become known as “automobile row”
because of the high number of dealerships that were
located along the thoroughfare. “Gulf executives must
have figured that there was no better way to get the public
Page 16
Spitlers Auto Supply Company, 205 Commerce Street,
Fredericksburg, Virginia, closed in 1931. It was an
example of curbside pumps used before Gulf Refining
Company established covered, drive-through stations.
hooked on using filling stations than if they could pull
right in and gas up their new car after having just driven
it off the lot,” notes a commission historian. In addition to
gas, the Gulf station also offered free air and water – and
sold the first commercial road maps in the United States.
“The first generally distributed oil company road maps
are usually credited to Gulf,” says Harold Cramer in his
Early Gulf Road Maps of Pennsylvania. “The early years
of oil company maps, circa 1915 to 1925, are dominated
by Gulf as few other oil companies issued maps, and until
about 1925 Gulf was the only oil company to issue maps
annually,” Cramer notes. The Gulf Refining Company
was formed in 1901 by members of the Mellon family,
along with other investors, as an expansion of the J. W.
Guffey Petroleum Company formed earlier the same
year – to exploit the Spindletop oil discovery in Texas.
While the Gulf station in Pittsburgh may have been the
Until about 1925, Gulf Refining Company was the only
oil company to issue maps. Gulf was formed in 1901 by
members of the Mellon family of Pittsburgh. Map image
courtesy Harold Cramer.
This 1916 Bowser
gasoline pump operated
by a hand crank. A
“clock face” dial let
the consumer know
how much gas had
been pumped. Photo
from the Smithsonian
Collection.
first “modern” service station, kerosene and gasoline
“filling stations” helped pave the way. “At the turn of
the century, gasoline was sold in open containers at
pharmacies, blacksmith shops, hardware stores and other
retailers looking to make a few extra dollars of profit,”
notes Kurt Ernst in a 2013 article. “In 1905, a Shell
subsidiary opened a filling station in St. Louis, Missouri;
but it required attendants to fill a five gallon can behind
the store, then haul this to the customer’s vehicle for
dispensing. “A similar filling station was constructed by
Socal gasoline in Seattle, Washington, opening in 1907,”
Ernst explains in his “The Modern Gas Station celebrates
its 100th Birthday”. “Today, 152,995 gas stations dot the
landscape, including 123,289 convenience stores,” Ernst
reports. On average, each location sells about 4,000
gallons of fuel per day, “quite a jump from the 30 gallons
sold at the Gulf station in Pittsburgh on December 1,
1913.”
Collectors value
service station
memorabilia,
including this pump
and globe exhibited
at the Northwoods
Petroleum Museum
outside Three
Lakes, Wisconsin,
established in 2006 by
Ed Jacobsen, retired
owner of six Shell and
Amoco stations.
Page 17
Volume 64, Issue 2
Here’s How
Owlls Could
Owls
Help Make
Turbines
Wind Turbines
Quieter
Source: Bloomberg Business - August 11, 2015
Scientists seeking to make a quieter wind turbine are
mimicking owl wings after uncovering the secret of the
bird’s ability to silently descend on its prey.
Researchers examining owl feathers found downy
microscopic coverings and a porous elastic fringe on
the trailing edge that scatters sound without affecting
aerodynamics, the University of Cambridge said Monday.
They mimicked the structure with 3D-printed plastic that
can be applied to wind turbines, plane propellers or even
computer fans to muffle their noise.
“Many owls, primarily large owls like barn owls or
great gray owls, can hunt by stealth, swooping down
and capturing their prey undetected,” said Cambridge’s
Nigel Peake, who led the study. “While we’ve known
this for centuries, what hasn’t been known is how or why
owls are able to fly in silence.”
Wind tunnel tests on a turbine using the material produced
10 decibels less noise than without, the university said
in a statement. That may help wind-power generators to
increase their electricity output as it would allow them
to run turbines at faster speeds without worrying about
increasing noise levels.
The researchers are in talks with Siemens AG to test
the coating on one of its turbines, the university said.
Siemens wasn’t immediately able to comment when
contacted by e-mail.
Wind farm developers are facing pressure to reduce
noise from construction and operation. In the North
Sea, developers including EON SE and RWE AG are
trying to cut noise from driving turbines into the seabed
after conservation groups complained that it damaged
the sonar-like hearing of porpoises.
Peake and scientists at Virginia Tech, Lehigh University
and Florida Atlantic University carried out the research,
which was funded by the U.S. Office of Naval Research
and the U.S. National Science Foundation, according to
the statement.
“No other bird has this sort of intricate wing structure,”
Peake said.
Page 18
CommodityHQ Daniela Pylypczak-Wasylyszyn
June 24, 2015
Crude oil is arguably the most important commodity
in the world today. The product and its derivatives
have made their way into virtually every application of
modern life from transportation to plastics.
This vital commodity also dominates politics in many
parts of the world, ensuring that some top-producing
nations have outsized influence on the world stage. In
light of this, many might assume that most investors
know everything about the product and how it trades
around the globe. However, that is not the case, as there
are several misconceptions about the various types of oil
and how this commodity is priced.
BRENT VS. WTI CRUDE OIL
One of the most important issues is the type of oil and
the differing benchmarks for crude oil prices around the
world. Many might not realize that oil pulled out of the
ground in Texas isn’t the same as the product from the
North Atlantic. There are varying degrees of oil based on
a variety of metrics, such as the oil’s API gravity. The
American Petroleum Institute (API) gravity is a statistic
that is used to compare a petroleum liquid’s density to
water. This scale generally falls between 10 and 70, with
‘light’ crude oil typically having an API on the higher
side of the scale, while heavy oil has a reading that falls
on the lower end of the range.
Beyond API gravity, investors also need to take into
consideration how sweet or sour a petroleum is. This
is based on the sulfur content of the underlying fuel,
with 0.5% being a key benchmark. When oil has a total
sulfur level greater than half a percent, it is considered
‘sour’, while a content less than 0.5% indicates that an
oil is ‘sweet’. Sour oil is more prevalent than its sweet
counterpart and comes from oil sands in Canada, the
Gulf of Mexico, some South American nations, as well
as most of the Middle East. Sweet crude, on the other
WTI VS. BRENT
CRUDE OIL:
WHAT IS THE
DIFFERENCE?
hand, is typically produced in the central U.S., the North
Sea region of Europe, and much of Africa and the Asia
Pacific region. While both types are useful, end users
generally prefer sweet crude as it requires less processing
in order to remove impurities than its sour counterpart.
Light and sweet forms of crude oil are heavily prized
while heavy sour types of fuel often trade at a discount
to their more in-demand cousins.
With these two key factors, investors can begin to
price these different types of oil on the world market.
Currently, there are two major benchmarks for world
oil prices, West Texas Intermediate (WTI for short) and
Brent crude oil. Both are light, sweet crude oils although
WTI is generally sweeter and lighter than its European
counterpart. As a result of this, WTI often trades at a
premium, usually by just a few dollars a barrel. However,
thanks to a Libyan crisis, which has decreased the supply
of light, sweet crude in the European region, and a supply
glut at the main storage facility of WTI in Oklahoma, the
premium/discount situation has flipped and now Brent is
more expensive than WTI.
PRICE DIFFERENCES
Thanks to two ETFs (Exchange Traded Fund) on the
market today, USO (United States Oil Fund) and BNO
(United States Brent Oil Fund), investors can easily see
how the two forms of oil have changes in price over
time. East Texas Intermediate is the commodity behind
future contracts held by USO and Brent is the commodity
underlying future contracts held by BNO. Consider the
chart below, which plots the two ETFs against each other
from March 2010 to September 2011.
See graph on following page.
Prices tend to be highly correlated with each other over
a long-term period. However, at the start of 2011, around
Volume 64, Issue 2
Page 19
the same time that the ‘Arab Spring’ began to take place,
the prices of the two ETFs diverged, with BNO climbing
far higher than its WTI-tracking counterpart. Once
investors realized that more production wouldn’t be lost
in the region, and that the Libyan situation was likely to
remain an issue for quite some time, the prices of the two
ETFs began to mirror each other throughout the rest of
the third quarter of 2011, although BNO kept its hefty
premium. Clearly, choosing the correct oil
fund can have a huge impact on overall
return, just as we have seen in this extreme,
but very relevant, case.
OTHER FACTORS TO CONSIDER
Geopolitical events can also significantly
impact oil and create supply issues. Demand
metrics alone clearly do not determine the
price of oil around the world, and investors
must be aware of this when considering
buying into the crude oil market. A correct
bet on a commodity alone might not be
enough; investors must be sure to also
select the correct type of commodity, as
this can lead to vastly different returns far
beyond what some investors might initially
expect.
Desk and Derrick Educational Trust Trustees were
honored to have Conrad Polkosnik recipient of the
Helen C. Pryor Educational Trust Scholarship attend the
Saturday night banquet at the recent ADDC Convention
in Lubbock, TX. Conrad is a Texas Tech University
student majoring in Petroleum Engineering. Following
the banquet, Conrad stated “It was a great experience
that provided even more motivation for me to become
someone as successful as the 200+ that were in the room.
It’s always been my dream to earn an education and
become somebody great. I really appreciate that Desk
and Derrick is here with me and supporting me to earn a
degree as an engineer.”
Since its inception in 1982, the Educational Trust has
been investing in the future of the petroleum, energy and
allied industries by awarding 352 scholarships totaling
$419,200.
Your donations do (and will continue to) make a
difference in the life of a student. Please know whatever
your reason for donating, the funds are used to further the
ADDC motto: Greater Knowledge—Greater Service.
Page 20
Convention 2015
Volume 64, Issue 2
Page 21
Page 22
NATURAL GAS EXPORTS TO MEXICO ON THE FAST TR
TRACK
RACK
Source: by Bob Black http://drillinginfo.com - August 11, 2015
U.S. Natural Gas Pipeline Exports to Mexico
Just as Space X rockets may be taking off from the
beaches at Boca Chica near Brownsville, natural gas
exports to Mexico look to also sky rocket in the coming
years. Due to changes in Mexican law in 2013 opening
the electricity market to private investment, billions of
dollars in contracts have been let to build power plants,
electrical distribution facilities and natural gas pipelines.
In turn, U.S. pipeline companies and gas producers have
moved to capture the lion’s share of that market. Given
the fact that Texas and Gulf Coast producers have been
rapidly losing their old Northeast and Midwest markets
to Marcellus producers, this has proven to be a timely and
vital new market. The Energy Information Agency (EIA)
estimates that natural gas exports to Mexico were 3% of
production in April 2015 and are expected to grow to 5%
by 2030. While not nearly as important as the domestic
power sector to U.S. producers, nonetheless it represents
a good piece of business.
So just where are these projects crossing the border and
linking up to Mexican pipelines? Let’s take a look at
recent developments. Last year Kinder Morgan’s (KM)
Sierrita gas pipeline went online carrying 1.9 Bcf/day
into Mexico. The 36-inch 60-mile line runs from El Paso
Natural Gas’s (owned by KM) existing south mainlines
near Tucson to Sasabe, AZ before interconnecting to
Mexican pipelines at the border. Estimates for gross
exports to Mexico are estimated to rise to 4.6 Bcf/d by
2024, and the Sierrita will contribute a fair share of that
export capacity.
“This presentation from Kinder Morgan contains more
detailed breakdowns of system capacities.”
Volume 64, Issue 2
Page 23
In addition to the newly constructed Sieritta pipeline,
KM also has Texas intrastate facilities. Included in the
operations of the KM Tejas system is the Morgan Border
Pipeline system. Border Pipeline owns and operates
an approximately 97-mile, 24-inch diameter pipeline
that extends from a point of interconnection with the
pipeline facilities of Pemex Gas Y Petroquimica Basica
at the International Border between the United States
and Mexico in Hidalgo County, Texas, to a point of
interconnection with other intrastate pipeline facilities
of KM Tejas located at King Ranch, Kleburg County,
Texas. The pipeline has a capacity of approximately 300
million cubic feet of natural gas per day and is capable
of importing this volume of Mexican gas into the United
States or exporting this volume of gas to Mexico.
DRILLING INFO PIPELINE LAYER MAP
The Mier-Monterrey Pipeline, also owned by KM,
consists of a 95-mile natural gas pipeline that stretches
from the International Border between the United States
and Mexico in Starr County, Texas, to Monterrey, Mexico
and can transport up to 375 million cubic feet per day.
The pipeline connects to a 1,000-megawatt power plant
complex and to the PEMEX natural gas transportation
system.
Next up are newly announced pipelines, such as
Howard Midstream Energy Partners’ (HEP) June 23,
2015 announcement of the Nueva Era Pipeline, an
approximately 200-mile, 30-inch pipeline connecting its
existing Webb County Hub to Escobedo, Nuevo Leon,
Mexico, and the Mexican National Pipeline System
in Monterrey. Expected to be in-service in July 2017,
the Nueva Era pipeline, which will be developed in
conjunction with HEP’s Mexican partner, will provide
seamless transport for up to 600 mcf/day from South
Texas producers directly to end-users in Mexico.
San Antonio based HEP said it expects Nueva Era
transportation service rates from U.S. – Mexico border to
Escobedo to be between US $0.13 and US $0.20 per mcf,
subject to the shipper’s required term, level of service,
and volume commitment, and pursuant to all Mexican
legal requirements. HEP CEO Mike Howard made an
insightful commit during the press release stating that
“…When you look at the State of Texas, we have about
300,000 miles of pipe in Texas, and in all of Mexico they
have about 9,000 miles of pipe. I think the prize is that
there are going to be large infrastructure requirements in
Mexico.”
Page 24
The biggest proposed natural gas pipeline project in
South Texas is the South Texas-Tuxpan Pipeline, a 42inch diameter line that would run 497.1 miles under the
Gulf of Mexico from South Texas to Tuxpan, in the state
of Veracruz. The pipeline, valued at $3.1 billion, would
have 2.6 Bcf/day of capacity and have interconnections
with the Nueces-Brownsville and the Tuxpan-Tula
pipelines. This pipeline is among the $9.8 billion in
gas transport and power plant projects recently issued
requests for proposals from the Federal Electricity
Commission (CFE), Mexico’s State-owned electricity
utility. The contract has an expected award date of
December 2015 with a start date of June 2018.
In March of 2014, Energy
Transfer
subsidiary
Houston
Pipe
Line
Company received FERC
approval to build and
operate a pipeline to
export or import of gas at
the international boundary
between Hidalgo County
in Texas and the city of
Reynosa in Tamaulipas
State in Mexico. Houston
Pipeline will use existing
infrastructure and rightof-way to construct a new
24-inch pipeline from
near Edinburg, TX to a
new international border
crossing near McAllen, TX. While the new 23 mile
extension will have a design capacity of approximately
140 mcf/day, the 15 year contract with CFE calls for
transportation services of 930,000 MMBtu/day.
In January of 2015, Mexico’s CFE selected a consortium
of companies that includes Dallas-based Energy Transfer
Partners (ETP) to construct two pipelines in West Texas.
The Trans Pecos pipeline would run 143 miles from the
Waha natural gas hub near the town of Pecos in Reeves
County down to the border town of Presidio, where it
would connect with a short 1,000 foot cross-border
pipeline connecting to another line in the Mexican
town of Ojinaga. At 42 inches in diameter, it would
be capable of moving 1.4 billion cubic feet of natural
gas a day. Local opposition has heated up as residents
learned of the construction and while Energy Transfer
has an approved T-4 permit from the Texas Railroad
Commission compromise may prove difficult.
The Comanche Trail pipeline will be a 192 mile 42-inch
pipeline delivering 1.1 Bcf/day, from the Waha hub to
the international border at San Elizario, TX, just south
of El Paso. The consortium for this project is comprised
of Energy Transfer Partners, MasTec, and Carso Energy
(owned by Carlos Slim, Mexico’s richest man).
The Roadrunner Gas Transmission pipeline extends
from ONEOK Partners’ Wes Tex pipeline system at
Coyanosa, TX west to a new international bordercrossing near San Elizario, TX. The first phase of the
project for 170 MMcf/d of available capacity is expected
to be completed by the first quarter of 2016. The second
phase, which will increase the pipeline’s available
capacity to 570 MMcf/d, is expected to be completed
by the first quarter of 2017. The third and final phase of
the project is expected to be completed in 2019 and will
increase available capacity to 640 MMcf/d.
That’s three (3) existing pipelines and six (6) proposed
pipelines with combined capacity of 6.5 Bcf/d and
representing capital budgets in excess of $7 billion.
That’s a lot of pipe and money in anybody’s book.
Page 25
Volume 64, Issue 2
Cheap shale gas to create thousands
of new plastics jobs, group forecasts
Source: Steve Goldstein www.marketwatch.com - May 13, 2015
WASHINGTON (MarketWatch) — The U.S. shalegas revolution was, to some, supposed to spur a
manufacturing renaissance as companies took advantage
of cheap, abundant natural gas.
It hasn’t happened so far, but maybe it’s just a matter of
time.
A new report from the American Chemistry Council
released Wednesday forecasts the plastics industry
will directly generate 127,500 new jobs over a decade.
That’s because chemical companies are bringing new
production online to take advantage of cheaper energy.
The report says when the ratio of Brent crude oil prices
to natural gas prices is over seven, it implies improved
competitiveness for U.S.-based producers over foreign
competitors. European and Asian producers use an oilbased feedstock to make plastic resins, while the U.S.
uses ethane. During the first quarter, the ratio of oil-tonatural gas prices was above 15.
Also helping U.S. companies become more competitive
are rising overseas wages, higher transportation costs
and supply chain concerns.
The report forecasts the peak investment will occur in
2018. “These are not turnkey projects,” said Martha
Moore, senior director of policy analysis and economics
at the trade group, whose members include firms such
as 3M, BASF, Dow and DuPont. The group’s forecast is
based on announced projects since 2010.
The report also forecasts 173,000 indirect jobs, from
suppliers, and 161,000 jobs due to the pay of the new
factory employees filtering into local communities.
Though sizeable numbers, it is a small portion of the
some 16 million new jobs the Labor Department projects
will be created nationwide over a decade.
Steve Russell, vice president of plastics, said the group
didn’t factor in the recent rise in the U.S. dollar; but he
said he didn’t expect that to make a significant difference.
“Our largest trading markets for shale-derived resins
are in Asia and Latin America. There’s less trade with
Europe,” he said. “It’s not something we would expect to
have a significant impact on investment, jobs and trade.”
About half of the incremental plastic resin production
is expected to be exported with the remaining half
available to the domestic plastic products industry, the
group forecasts.
Manufacturing employment more broadly has seen a
steep slide. As the millennium started, there were 17.28
million manufacturing positions, compared to 12.32
million in April, according to Labor Department data.
Page 26
Drake Well
Museum and Park
Nearly every aspect of our modern lifestyle is impacted
by petroleum. It is used to power our vehicles, to create
medicines that keep us healthy and to make the plastics
and other personal products that enhance our daily lives.
And, it all began in northwest Pennsylvania.
On August 27, 1859, the Drake Well, located along Oil
Creek just outside Titusville, Pennsylvania, struck oil at
69½ feet, launching an industry that has forever shaped
our modern world. Oil fever gripped the region following
Edwin L. Drake’s success. Speculators and wildcatters
rushed up and down the Oil Creek Valley, leasing land
and drilling wells. Teamsters and later railroads made
fortunes transporting crude oil to market. Boomtowns
sprang up almost overnight and faded just as quickly
after “black gold” dwindled. Stable communities thrived
as factories made derricks, tools, engines and barrels
for the infant industry. For decades, Pennsylvania was
the center of the world’s petroleum industry, generating
new technologies, business practices and wealth. Yet,
the pursuit for evermore prosperity led oil men to begin
exploring further afield. They struck oil and natural
gas around the world, transforming the industry born in
Pennsylvania into a global enterprise.
Over 150 years later, Drake Well Museum and Park
educates the public about the oil and natural gas
WorldOil.com 08/26/2015
Holmden Street, Pithole City, 1865.
industries in Pennsylvania, demonstrating the relevance
of petroleum in their lives. Visitors to the museum’s 240acre site enjoy numerous exhibits, including a boardfor-board replica of Drake’s original engine house built
around the National Historic Landmark well, operating
steam and gas engines, a fully functioning central power
oil lease and a standard drilling rig. Recently, the museum
unveiled “There’s a Drop of Oil and Gas in Your Life
Every Day!,” a new 10,000 square foot, state-of-the-art
exhibit that offers a multi-sensory learning experience
to visitors of all ages. Beginning in the Charles Suhr
Orientation Theater, guests are able to see, hear, smell
and feel oil from its discovery to the present day and
beyond. Featuring over 500 artifacts as well as video
footage, audio clips and interactive displays, the new
exhibit explores the technological, scientific and social
history of the petroleum industry. Not only do visitors
learn about the birth of the industry, they discover the
Titusville druggist Peter Wilson (left) and Edwin L. Drake (right) visit the Drake Well, 1866.
15
7”
Volume 64, Issue 2
Page 27
story of its growth beyond the nineteenth century and
how petroleum has come to impact their daily lives.
Additionally, Drake Well Museum and Park boasts the
largest artifact and archival collection focused on the
birth of the modern petroleum industry, special events
and programs throughout the year, recreational trails and
more.
2014 Drake Day Circus
Performer Andrew D’Ascenzo twirls fire during the
2014 Drake Day Circus. This annual event is modeled
on circuses that traveled to Titusville, Pithole and
other locations throughout Pennsylvania’s oil region
during the 1860s.
Drake Well New Interior Exhibit
A portion of Drake Well Museum’s new 10,000 square
foot petroleum exhibit, “There’s a Drop of Oil and Gas
in Your Life Every Day!,” 2013.
While Drake Well is the historical heart of Pennsylvania’s
Oil Region National Heritage Area, the museum also
administers two additional petroleum heritage sites:
Historic Pithole City and McClintock Well #1. At
its height Pithole City, Pennsylvania’s legendary oil
boomtown, boasted 15,000 residents, 57 hotels, a daily
newspaper and the third busiest post office in the state.
Today, all that remains are cellar holes in a hillside
meadow. Visitors enjoy walking Pithole’s former streets
as well as viewing exhibits, including a scale model of
the city, in the Visitor Center. Drilled in 1861 on the
Hamilton McClintock Farm, a location frequently
mentioned in early documents as a source for oil gathered
Living the Lease Life Tour
Drake Well Museum volunteer Clark Hall demonstrates
barrel making during a Living the Lease Life School
Tour, circa 2007.
by Native Americans for medicinal use, McClintock
Well #1 is the world’s oldest continuously producing
oil well. Today, the well is maintained by Drake Well
Museum volunteers and is a featured trailhead on the
Erie to Pittsburgh trail system.
Drake Well Museum and Park
The visitor center and replica engine house at Drake
Well Museum and Park, 2015.
Drake Well Museum and Park, Historic Pithole City
and McClintock Well #1 are administered by the
Pennsylvania Historical and Museum Commission in
partnership with Friends of Drake Well, Inc. and are
part of the Pennsylvania Trails of History® (www.
PATrailsofHistory.com). Drake Well Museum and Park
is open year round. Summer and Fall hours are Tuesday
through Saturday from 9:00 a.m. to 5:00 p.m. and Sunday
from noon to 5:00 p.m. The Pithole Historic Site is open
Saturdays and Sundays from 10:00 a.m. to 4:00 p.m. in
June, July and August. McClintock Well #1 is open to
the public year round.
For more information about Drake Well Museum and
Park, Historic Pithole City and McClintock Well #1,
please visit www.drakewell.org, call (814) 827-2797, or
find us on Facebook at Drake Well Museum.
Page 28
“Boom Town” Burkburnett
A major oil discovery on a small farm in North Texas in 1918 launched a drilling boom that made Burkburnett famous and led to a popular Hollywood movie based on a Cosmopolitan magazine article entitled “A
Lady Comes to Burkburnett.”.
“Burkburnett was a sleepy farm town that transformed into a ‘Boom Town’ as a result of the North Texas oil
boom”, notes the Burkburnett Historical Society. A 1940 MGM movie about it was a box office hit.
A wildcat well came in on S. L. Fowler’s farm near a
small North Texas community on July 29, 1918. The
subsequent drilling boom along the Red River will
make Burkburnett famous – two decades before “Boom
Town,” the 1940 motion picture it inspired.
At the time of the Fowler No. 1 well’s discovery, future
movie star Clark Gable was a teenage roustabout in an
Oklahoma oilfield. The well was completed at the northeastern edge of Burkburnett, a town founded in 1907 and
named by President Theodore Roosevelt who, two years
earlier, hunted wolf along the Red River with rancher
Burk Burnett.
Although Wichita County had been producing oil since
1912 (thanks to a shallow water well west of town),
Fowler’s decision to drill a well on his farm – an attempt
called “Fowler’s Folly” by some – will bring an oil boom
to Wichita County. Fifty-six drilling rigs were at work
just three weeks after his oil strike at 1,734 feet deep. Six
months later, Burkburnett’s population had grown from
1,000 to 8,000; and, at one time, a line of derricks twomiles long greeted visitors.
The Burkburnett oilfield joined earlier discoveries in
nearby Electra (1911) and Ranger (1917) that would
make North Texas a worldwide leader in petroleum
production. By the end of 1918, Burkburnett oil wells
were producing 7,500 barrels per day. By June 1919,
A collection of 1930s oilfield photography by Farm
Security Administration photographers can be found
at Library of Congress Prints and Photographs
Division.
Page 29
Volume 64, Issue 2
By June 1919, there were more than 850 producing wells in “the world’s wonder oilfield.”
there were more than 850 producing wells in “the world’s
wonder oilfield.”
Nineteen local refineries were soon processing the
crude oil. The town’s unpaved streets was soon lined
with newly formed stock offices, brokerage houses, and
autos stuck in the mud. Twenty trains ran daily between
Burkburnett and nearby Wichita Falls. Yet another highly
productive Wichita County oilfield was then discovered,
bringing more prosperity for North Texas. Eventually,
the oil boom died out. Affected by the Great Depression,
Burkburnett’s population started declining during the
1930s.
By 1939, the town had a population of less than 3,500.
At the same time, the movie “Boom Town” was adapted
from a Cosmopolitan magazine article entitled “A Lady
Comes to Burkburnett”. The 1940 MGM production
stared Spencer Tracy, Clark Gable, Hedy Lamarr and
Claudette Colbert and was nominated for two Academy
Awards.
At the time of the 1918 Burkburnett discovery well,
Clark Gable was a 17-year-old roustabout working
with his father William Gable, a service contractor, in
an oilfield outside Bigheart, Oklahoma. In 1922, Gable
collected an inheritance from his grandfather and left the
Oklahoma oil patch for good. Clark Gable’s father is
reported to have said, “I told the stubborn mule if he left
me this time, he need never come back.”
“World’s Littlest Skyscraper.”
A footnote of the North Texas oil boom is the “World’s
Littlest Skyscraper” in Wichita Falls. Just 40 feet tall
with 118 square feet per floor, it has survived since 1919.
The building is a
monument of the
boom town era – and a
Philadelphia con man
who convinced oilmen
who were desperate for
office space to approve
fraudulent blueprints.
J. D. McMahon
disappeared after
collecting $200,000 and
completing his promised
“skyscraper.” The fine
print his investors
overlooked noted a scale
in inches – not feet.
“Apparently too busy
to keep an eye on
construction, investors
ultimately found
themselves owners of a
building that looked more like an elevator shaft than
high-rise office space,” notes Carlton Stowers, author of
“Legend of the World’s Littlest Skyscraper.”
“The completed building’s outside dimensions were
a closet-sized 11 feet by 19 feet. Stairwells that led to
the upstairs floors occupied 25 percent of the interior,”
Stower says. “Dallas and Houston may have sparkling
skyscrapers so tall that they require oxygen in the
penthouses, but has Ripley’s Believe It or Not ever
paid them attention?”
The brick building has become a Wichita Falls
landmark. Today, it an attraction for oil-patch
knowledgeable tourists. The city also is headquarters
for the Texas Alliance of Energy Producers.
Source: American Oil and Gas
Historical Society - aoghs.org
Page 30
WV Desk and
Derrick Club
Awards Seven
Scholarships
“Article from the Charleston Daily Mail”
by Lexi Browning, May 17, 2015.
A Charleston nonprofit is sponsoring a scholarship
essay contest for high schoolers interested in the energy
industry. Since 2008, the West Virginia Desk and Derrick
Club has contributed financially to the region it serves
by funding the education of the future generations of
energy management. It offers scholarships, worth $1,000
each, that have been awarded to West Virginia residents
who are pursuing studies in the energy industry. Kathy
Tawney, club president, said the scholarships provide
financial assistance for West Virginia students who elect
to study at in-state colleges. The first preference goes
to students majoring in energy industry studies. “We do
offer scholarships to students outside of energy industry
and affiliates, but they receive second preference,”
Tawney said. After opening the essay competition
to each high school and college in the state, five high
school students and two college students are selected.
Tawney said students were ranked on a points system
based on their submitted applications. “We ask for a 300word essay about the future of the energy industry and
the challenges there may be,” Tawney said. “We change
it up every year.” Autumn Humphries, vice president of
the club and chairwoman of the scholarship program,
said a committee, comprised of 10 members this year,
then reads and ranks each essay to determine who will
receive the highest score. Winners are selected by the
committee and then informed that they are recipients by
mail and an additional phone call from a member of the
club. Recipients will also be invited to attend the Energy
Industry Appreciation Luncheon in October to meet
members of the Desk and Derrick Club. Jordan Miller,
an English and journalism double major at WVU, was
one of the six recipients of last year’s 2014 scholarship.
“The financial assistance from the Desk and Derrick, in
addition to other scholarships, allowed me the luxury of
not having to work once school started, so I was able
to take more classes and earn more credits,” Miller
said. Miller said having more time to focus on her
studies allowed her to pursue an additional major and
still graduate on time.“The additional major will make
me more marketable as I apply to graduate school and
eventually enter the job market; and in the meantime,
offers me countless opportunities at WVU in both the
Eberly College of Arts and Sciences and the Reed
College of Media.” This year, seven scholarships were
allocated to five high school seniors and two college
students. Four of the seven recipients are pursuing
studies in petroleum engineering, including Adam
Wilson of Hannan High School, Alexandra Richards of
Woodrow Wilson High School, Justin Elliot of Brooke
High School, and Michael Underwood of WVU. Jaycie
Saseen, of Elkins High School, is pursuing a degree in
chemical engineering, and Hannah Hal, of Lewis County
High School, is choosing a path in elementary education.
Michele Morgan, a Marshall undergraduate, is studying
civil engineering. “The scholarships are paid directly to
the college they’ll be attending in the fall,” Tawney said.
Tawney said involving the Pierpont Community and
Technical College in Fairmont in the scholarship program
would be a goal for the future. “We’ve donated to build
funds for a scholarship there, but we’ve never have
students from there apply,” Tawney said. “That’s certainly
something we’re going to look at going forward.”
”For more information on the Desk and Derrick Club
Scholarship Program, visit www.wvdeskandderrick.org.
Page 31
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Page 32
Around
The Association
t
In May, the Desk and Derrick Club of Abilene in
conjunction with the Abilene Geological Society had
a great Golf Tournament. Together we were fortunate
to make over $11,000.00 for scholarships and the
distribution of “Bit of Fun Energy Activity Workbooks”.
We always look forward to working with our AGS
friends.
Operating without a full Board roster and facing a 27%
decrease in membership and coupled with the additional
strain of the current industry environment has been
difficult at times for The Alberta Foothills Desk and
Derrick Club, but I’m happy to report that we have also
committed to “Turning Challenges into Opportunities”
(our 2015 President’s theme) and are making real efforts
to keep members motivated and engaged. We are openly
addressing the economic challenges we’re all facing and
brainstorming ideas on how we, as an organization, can
support and encourage our membership. In May, in
direct response to many of our members experiencing
layoffs, forced early retirements or wage cuts, we hosted
the program “Tapping into Resilience in Tough Times”,
in which Nadine Ryan-Bannerman of Ryan Bannerman
Associates, offered members and guests an array of tools
for re-igniting spirit, re-establishing value and redefining
goals. Our Board is committed to finding opportunities
for cost savings for our members and reduced monthly
dues by 50% for members attending the June dinner
meeting. This reduction represented a small fiscal
investment from our club, but we believe represented a
significantly greater emotional investment in the morale
of membership. We encouraged members to participate
in a Club Satisfaction Survey, followed by a Strategic
Planning Session to discuss the results. It was clearly
evident by the participation and enthusiasm this meeting
was one of the most successful we’ve had in a very long
time. The meeting was positive and uplifting and many
members stayed more than an hour after the meeting was
adjourned, actively discussing and planning! We focused
on a few key concerns and successfully identified
solutions that are realistic, cost effective and add value
AND which will be implemented immediately! 2015
won’t ever be considered our easiest year and may not
end up being our most successful, but it should definitely
be one of our proudest… because we’re choosing to find
the opportunity hidden in the challenge.
The Desk and Derrick Club of Baton Rouge has
ongoing projects throughout the year that assist our
community. One of them involves the Baton Rouge
Food Bank. Maxine Lawson collects money for the
Baton Rouge Food Bank at the meetings each month and
presents a check to them. In addition, some of our club
members serve as volunteers at the Food Bank.
In 2015, the Buckeye Desk and Derrick Club
enjoyed learning about Business Development, Major
Transactions, Shale, MPLX, Joint Ventures, Law,
Business Analysis, Specialty Petroleum Products and
Government Affairs. These were educational topics
presented by speakers via Marathon Petroleum. On
August 7, 2015 members of the Buckeye Club traveled
to Cincinnati for an overview and tour of Marathon
Petroleum Company’s biorefining operations. Prior to
Marathon’s purchase in 2014, the facility was owned
by Proctor & Gamble, Twin Rivers Technologies and
Felda Iffco (in succession) and had been used for the
testing/development/refining of food products including
olestra, fish oil and palm oil in addition to producing
biodiesel. Today the refinery produces only biodiesel
and its byproduct, glycerin. The tour included the unit
perimeter, storage tank area, truck loading bay and
rail yard. Other events our members enjoyed were two
“Member Meet and Greets”, where we discussed our
Volume 64, Issue 2
Page 33
various experiences and positions with ADDC and
Marathon. It was interesting to get to know one another.
Some members had joined just this year and were eager
to learn of the opportunities. Other members had been
with Desk and Derrick for several years and served on
our Board and/or experienced the Region Meetings and
ADDC Conventions. One member expressed that her
first convention felt like a high school reunion when she
first arrived and like a family reunion by the end. In
May, about 20% of our members attended the Region I
Meeting at Ogle Bay Resort in Wheeling, West Virginia.
In September, about 20% of our members attended the
ADDC convention in Lubbock, Texas.
The Desk and Derrick Club of Farmington has
been very busy this year. We changed our membership
meetings to lunch meetings to increase attendance, and
our attendance did increase significantly. However,
several members commented we don’t have time to visit
with each other. So we have started having monthly
social events---sometimes it is just drinks/coffee. In
May, we went to the San Juan College and participated
in their Outdoor Challenge Course. There were several
good team building activities where we had to learn
to communicate with each other and work together to
get through the challenges. In July, we had a rafting
trip down the Lower Animas River that runs through
Durango, Colorado as our monthly membership meeting.
One of our club members, who is a geologist, did a
presentation before the rafting trip explaining about the
different formations we would see during the rafting trip
and another one after the rafting trip explaining how old
some of the formations were and answered any questions
we had. In August, we had a bowling social. Although
all the members who attended hadn’t bowled in years,
we all had a good laugh; and everyone had a really good
time. On August 14th we had our 18th Annual Oilfield
Trash Bogey Bash Golf Tournament. As always it was
a huge success and one of the more popular tournaments
in our local industry.
In April, the Graham Desk and Derrick Club
had a booth at the Texas Alliance of Energy Producers
Expo in Wichita Falls. In conjunction with the Expo,
we sold tickets for a donated fire pit with funds going
toward bringing the Mobile Offshore Learning Units
to our local fifth grade classes. Our SpeakEasy Players
present our orientation program imparting great deal of
D&D information in an original skit that is always fun
filled. We always encourage visitors, but we have a big
push to have as many prospective members as possible
to attend the orientation program. The last several years
the Graham Club has assisted with cooking, serving and
cleaning at Our Daily Bread, a church-based lunch meal
service provided during the summer for those who would
otherwise not have a hot lunch. Donations by employers
and members assisted the Humane Society of Graham
in the continuance of this organization in our city. Our
Golf Committee works almost all year preparing for our
scholarship fundraiser. 2015 will be the 27th Annual
D&D Classic Golf Tournament. Income from the
tournament funds our Scholarship Fund and budgeted
expenses for the year. We average giving one four-year
scholarship and at least one one-year scholarship each
year. It is a privilege each October to host an Industry
Appreciation Banquet honoring our employers and
giving praise and respect to those deserving recognition
for their endeavors during the year. Our members and
employers look forward to the banquet where attendance
averages about 120. Field trips are a way to not only learn
about an industry subject but to enjoy fellowship with
the members who attend the trip. In April, we toured
the North Central Texas College Petroleum Technology
Department lab located at the Graham campus.
Some of the sixty members of The Lafayette Club
toured Trinity Lifeboat during our February fieldtrip,
made a television appearance with Joey Durel, the
Lafayette City/Parish President, to proclaim March as
Desk and Derrick Month, and participated in Painting
with a Twist. Our primary fundraiser, The Lafayette Oil
Directory, is going digital with the prototype to be ready
this fall and going live by January, 2016. Some of our
special projects and volunteer events this year included
collecting funds for Terry Ligon’s “Fire Shower”, and
volunteering at LOGA, LAGCOE, Lafayette ADDE F 5
event (Fin, Feather, Fur, Food Festival) and the Acadiana
Measurement Show.
The Laurel Desk and Derrick Club has been
learning the steps to drilling an oil well with great
speakers to walk us though the process. We had the
chance to take a field trip to observe conductor pipe
being drilled and set and to also observe a water well
being drilled to supply the new well location with water.
Halliburton welcomed us to their training rigs where we
got a chance view how they train their employees from
many different product lines from all over the world.
During this downturn in the industry, we have been able
to grow and have welcomed three new members. With
Page 34
the cancellation of many industry events in our area, we
are still able to assist where needed and take this time
to grow as a club in our community. We were able to
award ten scholarships this year to area students. For our
community service this year, we have reached out to a
home with thirteen mentally challenged ladies. We spent
a fun spring day planting flowers and potting plants with
these ladies and are looking forward to celebrating the
holiday season with them.
It’s September 2015 and the Lone Star Desk and
Derrick Club of Dallas is still running our race with
vigor. Instead of gearing down, we’re gearing up to
finish the year strong. Our first industry appreciation
event held in May had an incredible attendance of 82.
The event was held at the Dallas Petroleum Club and
was sponsored by Covey Park Energy, our gold sponsor.
Our July Bunko party had a festive turn out of members
and guests as we sipped margaritas and rolled the dice for
a chance at winning numerous door prizes. In August,
we took a tour of the SMU Geothermal Lab where we
saw thermal conductivity equipment, microscopes,
InSar imagery and the isotope lab. We also visited the
Shuler Museum of Paleontology and held discussions
about seismometers and local earthquakes. The tour
ended with a question and answer session with the
Geothermal Department Professors. At our September
10th meeting our nominating committee announced
their list of candidates for the 2016 Executive Board. In
October, it’s our Desk and Derrick orientation meeting
where we’ll educate new members and guests about
the history of Desk and Derrick. Lone Star has 19
new members so far this year with a total membership
of 56 to date.
As the “Second Lone Star Shoot Out”
clay shoot is coming just around the corner on October
2nd at the Dallas Gun Club, we’re working hard on
fundraising. Our Scholarship Committee has mailed out
annual scholarship letters. The deadline for submitting
applications is October 31st. With December a stone’s
throw away, we set the date for our December 2015
Installation. In addition, I’m excited to say that Lone
Star will have its very first President’s scrapbook to be
presented this year! December is also a time when we
give back to our community as we contribute financially
and with donations of food, toiletries and clothes to assist
families in need in our area during the holidays. As we
head into the end of the year, we are busy making plans
to start 2016 with a bang. With lots of new members and
a new Board, come new energy and new ideas. We’ll
have a roundup of great educational and networking
opportunities in the new year. If you find yourself in
Dallas, get yourself to a Lone Star meeting and join the
excitement. You’ll be glad you did!
The Penn York Oil and Gas Affiliates (PYGOA)
awarded two scholarships in 2015. Our community
outreach includes two food drives. This December
PYOGA will be gathering donations for the local
SPCA/ Humane Society. Fund raisers include two
dishes to pass, Pound Auction, Mother’s and Father’s
Day Basket, and a drawing for a Samsung Tablet. In
August, PYOGA members volunteered to make “Oil
Days” a huge success at the Penn Brad Oil Museum
in Bradford, PA. We hosted the Meet-U Trailer at the
Mt. Jewett Swedish Festival where Pam Eschrich, a
previous recipient of a PYOGA scholarship, greeted
over 300 visitors while tending the PYOGA booth and
handing out EAB’s and the new ADDC pamphlets.
Three members attended Energy Day at the local fair
for the first time, and we’ve been asked to return next
year. We have a field trip scheduled for October 10th
to Denver Gardner in Altoona, a manufacturer of high
pressure pumps. PYOGA has been fortune to have had
a variety of great speakers this year. A “Company Man”
from Chevron, again PYOGA’s very own Pam Eschrich,
provided a power point presentation on her rigs. A land
man shared his expertise, a forester spoke on how the oil
man and forester work in conjunction building roads and
wells sites, a teacher for the Bradford Area High School
Oil Field Program and the University of Pittsburgh of
Bradford Petroleum Tech/Energy Sciences spoke on
his programs, the captain of the ship which capped the
Deepwater Horizon oil spill in the Gulf of Mexico, and
an attorney/operator who studied world oil and gas. All
of these are tough acts to follow, but PYOGA still has
some promising programs for the remainder of the year.
This September, our Essay Committee has coordinating
a 5th and 6th grade field trip for a local school to spend
an afternoon at the Brad Penn Oil Museum. Students
will be asked to write an essay on their field trip, and
PYOGA will reward the classes with their choice either
a donut or pizza party for their participation.
Ignite Growth and Build Strong is the 2015 theme for the
Midland Desk and Derrick Club. This year instead
of a head table at the monthly meetings, board members
sit at tables with the members. This has resulted in
club members getting to know each other better and
building stronger ties. To encourage attendance and
participation, President Ingrid Burton is awarding
Volume 64, Issue 2
Page 35
charms as member participation awards. The number
of charms earned range from 6 to 23. At the December
meeting, each female member will be presented with a
charm bracelet and each male member will be presented
with a charm key chain. This year our club bulletin,
the Top Pay, includes lots of photographs and personal
announcements are being encouraged. Programs have
included an interactive demonstration on “The Dangerous
Flow of Electricity” in the home as well as in the oilfield
(January), “Safe Digging and Damage Prevention”, for
the home as well as in the oilfield (February), a virtual
baseball game “New Member Orientation” presentation
for ALL members (March), “Introduction to Wellbore
Diagrams” (April), “Recap of ADDC Region V Meeting
in Artesia, N. M.” (May), “Dangers of H2S”, where we
earned our H2S certification card (June), our annual
team building “BBQ & Swim Party” (July) and “IT in
the Petroleum Industry”, where we learned what to do to
protect our personal computers (August). The Midland
Club assists the Permian Basin Petroleum Association
with their monthly luncheons, golf tournament, Top
Hand Award Banquet, and annual meeting. We also
assist with the Midland Energy Expo (April) and the
API Golf Tournament (April). In addition, we hold our
own golf tournament every year, the Black Gold Golf
Tournament, headed by Jamye Ball (May). We currently
have 32 members, 7 of which are new this year . . . so
far. Three of the new members have volunteered to be a
chairman of a committee!
The Ohio Valley Club has 14 members with our
first male member joining this year. We have had
interesting speakers for our monthly meetings with
the topic of women working in a man’s oil field. Our
main fund raiser was held in July which was our Annual
Industry Appreciation Dinner Cruise with 227 people in
attendance. Mid-September our club serves lunch at the
Southeastern Oil and Gas Association (SOOGA) Trade
Show. In October, we have a field trip planned to visit
the Ergon Oil Purchasing Refinery. We are looking into
taking a trolley tour to view the Christmas lights one
evening mid-December in downtown Marietta as part of
our annual Christmas party.
The New Orleans Club visited the National World
War II Museum in early May. We also celebrated our
66th Anniversary in June. The club participated in fund
raising to help support and emphasis the size and design
of Oil and Gas exhibits in three museums in the New
Orleans regional area with the funding to be distributed
as follows: Bayou CCM of Houma (5%), St. Tammany
(20%), and LCM(Louisiana Children’s Museum) of
New Orleans (60%).
North Harris/Montgomery Counties Desk and
Derrick Club (NHMC) conducted a Gulf of Mexico
series on deepwater drilling during the first half 2015.
The topics included Regulatory Compliance – NPDES
Region 6, Deepwater Drilling and Completion Fluids,
and Aquatic Toxicity Analysis for Drilling Mud. NHMC
celebrated D&D Awareness Month by having Cindy
Miller, Region IV Director, give a brief history of ADDC
along with collecting donations for the Food Pantry.
In June, Waleed Abughazaleh Sr., Risk Manager with
Shell Corporation, explained the modeling application
companies use today to help mitigate risk and bring
financial profitability. A networking event took place in
July at Bar Louie’s in the Willowbrook Area which was
attended by 16 members and brought in a new member.
In August, everyone was ready to get back to business
with Rebecca Free, with Oilfield Portal, reminding us
how important networking can be in our professional
and personal lives.
The Ohio Valley Desk and Derrick Club distributed
money from their Education Awards Account to help
with college expenses two high school seniors pursuing
an education in petroleum/energy.
Highlights from the Roswell Desk and Derrick Club
include our very successful June Annual Black Gold
Golf Tournament for our education fund. We sponsored
two teachers from our area to attend the Annual National
Energy Education Development Project “NEED”
conference. The project promotes energy awareness
through education, network of students, educators,
business, government and community leaders. This
year the conference was held in Long Beach, CA, July
19th–23rd. The Annual Industry Appreciation Banquet,
elegantly decorated in black & gold, was held August 18,
2015. The speaker was Karin Foster, Executive Director
of IPANM. Ms. Foster is an attorney and registered
lobbyist who has successfully lobbied to pass and defeat
legislation impacting the NM oil and gas industry.
The Three Rivers Desk and Derrick Club is
keeping Region I Director Petty Jacobs’ theme “Keep
Calm and Educate On” by awarding three $1000
scholarships to students pursuing an energy-related
degree at an accredited Western Pennsylvania school.
Page 36
In addition, we are educating ourselves with programs
which include: Leasing the Dead (searching for severed
mineral owners), Coal Mining Methods and Natural
Gas Drilling, Geology 101, PPE and Field Safety Tips,
Title Opinions, Act 13 and Key Lease Terms, Marcellus
Shale Completions Overview, and Natural Gas Powered
Rigs. In June, our field trip led by Michael Mackin,
Community Development Manager at Range Resources,
included stops at a Marcellus Shale horizontal drilling
rig, a completion site and a natural gas production pad.
The Tri-State Desk and Derrick Club serves the tristate area of Illinois, Indiana and Kentucky. Speakers
this year have expanded our members’ knowledge of the
oil and gas industry with topics which have included:
Oil and Gas Hedging, What to Expect in a Deposition,
Leasing an Oil Well, Valuating Oil and Gas Properties,
Digital Forensics, and Utilizing Drones in the Oil Field.
The members of the Tri-State Club are looking forward
to 2016 when, for the first time, we will serve as the host
club for the Region II Meeting in Evansville, Indiana.
Along with the other three Region II clubs, Tri-State
members have begun plans for hosting the 2018 ADDC
Convention and Educational Conference which will also
be held in Evansville.
The West Penn Energy Association of Desk and
Derrick Club took a field trip to the Tonama AMD
Wetlands. The ten acre site was created to clean acid
mine drainage from the lower Freeport coal mines. The
drainage comes from three connected abandoned coal
mines covering 4500 acres. The mine pool contains
approximately 2 billion gallons of mine water. The
system consists of a one acre settling pond followed by 2
multi-chambered aerobic wetlands. In this particular case
the water is alkaline so it is being treated with aeration.
The system was built to remove 126 pounds of iron per
day. The site is also used for environmental education.
There are exhibits of solar, wind and water energy on
site. There are also tree and plant identifications.
West Virginia Desk and Derrick Club has had a great
year of learning, fun and celebrating! We are celebrated
our 10 year anniversary by going back to where it all
started and reminiscing about our early days. The West
Virginia club served as hosts to our regional meeting. I
may be biased, but I think a fantastic time was had by all
in attendance. Oglebay Resort in Wheeling was a great
place for the meeting. We just had a field trip during
the last week of August to a well site in Morgantown,
WV hosted by Northeast Natural Energy--- what a
great learning experience for us. Looking ahead, we are
planning our industry luncheon to be held in October.
We are lowering the price this year in hopes to sell more
seats. Sharon Flanery with Steptoe and Johnson will be
our keynote speaker that day. We had a setback this year
in our scholarship fund raising. We had to cancel our
golf tournament due to lack of participation as a direct
result of the downturn in the industry. We continue to
look for ways to increase those funds. We are awarding
seven $1,000 scholarships this year. We also started our
Magic Suitcase program in West Virginia this year. We
have had so much fun and anticipate even more schools
will be visited this school term. We just presented a
second magic suitcase to our northern members so they
can visit schools in that part of the state as well.
In April, the Wichita Falls Desk and Club helped
the Wichita Falls Geology Club with their AAPGSW Section Convention. We worked for four days
with registration and meetings. At the Texas Alliance
Meeting April 21-22 we helped with the golf tournament,
a B-B-Q , their meetings and an Expo show. The club
has a Desk and Derrick Booth at the Expo which always
draws approximately 15,000 spectators. This exposure
allows companies in the industry to learn about Desk and
Derrick and our purpose. In May, we held our Annual
Spring Classic Desk and Derrick Golf Tournament. In
October, we will offer our services to the Society of
Petroleum Engineers Golf Tournament helping with
registration, selling mulligans, hole watching and door
prizes. All of these events are big fund raisers for the
club. Portions of the money raised during these events
go towards our scholarship fund which awards three
scholarships each year to students at Midwestern State
University who are currently pursuing a degree in the
oil and gas industry. The club has been visiting some
of the schools in our area to introduce Petro Mack/Petro
Molly. This has been very successful and the kids seem
to enjoy it. President Sheila McGaughey would like to
praise each member of the club for their hard work and
dedication. The success of any organization depends on
each person doing their part, and she has seen this first
hand in the Wichita Falls Club.
Page 37
Volume 64, Issue 2
LIFE GETS
BETTER
WITH AGE
I’ve learned that I like my teacher because she cries when
we sing “Silent Night.” Age 5
I’ve learned that our dog doesn’t want to eat my broccoli
either. Age 7
the older she got, the
more she understood
that life was not always
about maitaining control,
sometimes it was about
letting go and just
learning to enjoy the ride
I’ve learned that motel mattresses are better on the side
away from the phone. Age 50
I’ve learned that when I wave to people in the country,
they stop what they are doing and wave back. Age 9
I’ve learned that you can tell a lot about a man by the way
he handles these three things: a rainy day, lost luggage,
and tangled Christmas tree lights. Age 51
I’ve learned that just when I get my room the way I like
it, Mom makes me clean it up again. Age 12
I’ve learned that keeping a vegetable garden is worth a
medicine cabinet full of pills. Age 52
I’ve learned that if you want to cheer yourself up, you
should try cheering someone else up. Age 14
I’ve learned that regardless of your relationship with your
parent, you miss them terribly after they die. Age 53
I’ve learned that although it’s hard to admit it, I’m
secretly glad my parents are strict with me. Age 15
I’ve learned that making a living is not the same thing as
making a life. Age 58
I’ve learned that silent company is often more healing
than words of advice. Age 24
I’ve learned that if you want to do something positive for
your children, work to improve your marriage. Age 61
I’ve learned that brushing my child’s hair is one of life’s
great pleasures. Age 26
I’ve learned that life sometimes gives you a second
chance. Age 62
I’ve learned that wherever I go, the world’s worst drivers
have followed me there. Age 29
I’ve learned that if someone says something unkind about
me, I must live so that no one will believe it. Age 30
I’ve learned that there are people who love you dearly
but just don’t know how to show it. Age 42
I’ve learned that you can make some one’s day by simply
sending them a little note. Age 44
I’ve learned that the greater a person’s sense of guilt, the
greater his or her need to cast blame on others. Age 46
I’ve learned that children and grandparents are natural
allies. Age 47
I’ve learned that no matter what happens, or how bad
it seems today, life does go on, and it will be better
tomorrow. Age 48
I’ve learned that singing “Amazing Grace” can lift my
spirits for hours. Age 49
I’ve learned that you shouldn’t go through life with a
catcher’s mitt on both hands. You need to be able to
throw something back. Age 64
I’ve learned that if you pursue happiness, it will elude
you. But if you focus on your family, the needs of others,
your work, meeting new people, and doing the very best
you can, happiness will find you. Age 65
I’ve learned that whenever I decide something with
kindness, I usually make the right decision. Age 66
I’ve learned that everyone can use a prayer. Age 72
I’ve learned that even when I have pains, I don’t have to
be one. Age 82
I’ve learned that every day you should reach out and touch
someone. People love that human touch-holding hands, a
warm hug, or just a friendly pat on the back. Age 90
I’ve learned that I still have a lot to learn. Age 92
Page 38
2015 AIMEE WINNERS
Association of Desk and Derrick Clubs
A.I.M.E.E.
Award of Excellence
BEST SMALL BULLETIN
Region VI – Butler County
Petro Patter
Editor: Wendy Simon
BEST LARGE BULLETIN
Region IV – Dallas, Club
Diamond Bits
Editor: Barbara Chapman
BEST INDUSTRY ARTICLE
Region V – Roswell Club
UAF – What in the World?
Author: Jackie Hewett
BEST PRESIDENT’S LETTER
TIE – Region VII – Edmonton Club
President’s Letter
Author: Pamela Berg
TIE – Region IV – Fort Worth Club
Rising News from the Phoenix Nest
Author: Darlene Hollingsworth
BEST DESK AND DERRICK ARTICLE
Region VI – Edmonton Club
Reflections and the Impact of Desk and Derrick on
My Life
Author: Donna Hayduk
BEST INDUSTRY PROGRAM
TIE – Region IV – Victoria Club
Allegiance Crane & Equipment
Speaker: Jason Atkinson
D & D Coordinator/Author: Becky Perez
TIE – Region VII – Alberta
Foothills Club
Rig Manager – Intelligent
Management of your
Drilling Data
Speakers: Kevin Haikkinen
and Patrick Thorburn
D & D Coordinator/
Author: Linda Topolinksy
BEST DESK AND DERRICK
PROGRAM
Region I – Tuscarawas Valley Club
How Desk and Derrick Has Benefited Me and
the Ohio Oil Patch History.
Speakers: Sarah Tipka, Donna Siburt, Angie Howard
and Mary Monastra
D & D Coordinator/Author: Sara Tipka
BEST INDUSTRY SEMINAR
Region VI – Red Earth Club
O-Tex Cement Seminar
Speakers: O-Tex Cement staff
D & D Coordinator/Author: Daniel Perrin
BEST INDUSTRY FIELD TRIP
Region V – Roswell Club
Trinity Site and The Brackish Groundwater
National Desalination Research Facility (BGNDRF)
Speakers: Randy Shaw, PE and Facility Manager
D & D Coordinator/Author: Tracee Porter
BEST INDUSTRY PHOTOGRAPH
Region IV – NHMC Club
Rudolph the Red Nose Pumpjack
Photographer: Lauri Stanfield
Volume 64, Issue 2
Page 39
HOW CRUDE OIL IS CONVERTED INTO GASOLINE
http://www.wisegeek.org
Graphic Source: http://www.sjvgeology.org/oil/refinery.html
Crude oil is converted to gasoline through a relatively
simple refining process. The transformation begins with
the extraction of oil from the ground, after which it is
usually loaded into large container ships that deliver it
to refineries all over the world. As any viewer of news
footage has seen, crude oil emerges as a thick black
substance which does not resemble the clear and freeflowing gas used in motor vehicles. This is because crude
oil is actually a mixture of hydrocarbons.
As the prehistoric plants and animals that make up crude
oil broke down, they formed hydrocarbons consisting of
variously sized chains and structures. Each hydrocarbon
has a unique application which the refinery process aims
to maximize. The use for each depends on the number of
carbon atoms in its structure. Gasoline, for example, has
eight carbons while light gases like propane have only
three. Hydrocarbons have a lot of energy when they can
be disentangled. The refining process accomplishes this.
The most important part of the refining process is known
as fractional distillation. Because the hydrocarbons all
have different boiling points, they can be separated
by heating. The crude oil is heated in a boiler to
temperatures up to 1112°F (600°C), which converts all
the hydrocarbons into a vapor. As they cool below their
boiling points, they precipitate out as liquids.
The vapor is routed through a distillation column. At the
bottom, the hydrocarbons with the highest boiling points
are caught first on a screen that pulls out the residual, or
coke, which is often flashed or burned for energy. The
vapor moves up the column; and as it cools, screens along
the way catch the various hydrocarbons such
as diesel, kerosene, gasoline, naphtha, and
the light gases.
All of these outputs must be treated for
impurities before they can be shipped. A
sulfuric acid column removes particles,
unsaturated
hydrocarbons,
oxygen
compounds, and nitrogen compounds. Then,
the liquid is passed through an absorption
column that removes water, and it is treated to
remove sulfur. After this process, the various
crude products can be shipped to their end
destinations through a large network.
Gasoline comprises almost half the output
of a barrel of crude oil, although the chains
that make up this hydrocarbon do not make up half a
barrel. This difference is resolved through chemical
refining, which allows refineries to build up or break
down hydrocarbon chains to get different products.
Chemical refining outputs are changed depending upon
the demand, which is frequently heaviest for gasoline.
When hydrocarbons are broken down into small
components, it is called cracking. Cracking can be
accomplished by introducing heat to the hydrocarbons
or by using a chemical catalyst like hydrogen gas. When
hydrocarbons are combined to form longer chains, it is
known as unification. Unification most commonly uses
platinum as a catalyst to combine small carbon chains,
producing hydrogen gas as a byproduct. The hydrogen gas
can be used for cracking or sold. Hydrocarbons are also
chemically altered in a process called alkylation, which
combines compounds of a low molecular weight with a
catalyst and introduces the mixture to the hydrocarbons
being altered.
The process whereby crude oil is turned into gasoline
is carried on at high volume all over the world.
Most refineries are extremely efficient, using every
hydrocarbon chain separated during the distillation
process and tweaking the output as needed to adjust for
market demands. The supply of crude oil is known to be
limited, however, raising questions about the longevity
of the future of refining. In addition, most of the world
is heavily dependent upon oil from one highly unstable
source: the Middle East.
Page 20
PRSRT STD
U.S. POSTAGE
PAID
TULSA, OK
PERMIT #2146
Association of
Desk and Derrick Clubs
5153 E. 51st Street, Suite 107
T u l s aof
, OK 74135
Association
Desk and Derrick Clubs
5321 S. Sheridan Rd., Ste. 24
Tulsa, OK 74145
918.622.1749 (p)
918.622.1675 (f)
Greater Knowledge
Greater Service
We Are On The Web
WWW.ADDC.ORG
www.addc.org
NAPE
FEB 10-12, 2016
SUMMIT
GEORGE R. BROWN
HOUSTON, TX
CONVENTION CENTER

Volume 64, Issue 2 - Association of Desk and Derrick

Transcription

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