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June 2017

A Monthly Publication of the Desk and Derrick Club of Dallas

June 2017 Volume 66, Issue 6

D i a m o n d B i t s

PRESIDENT’S LETTER

Dear Desk and Derrick Club of Dallas Members,

Is it June already? Time needs to slow down a bit!

The days are getting longer, temperatures are

warming, and many of you are busily preparing for

some greatly needed leisure time as well as simply

enjoying the company of family and friends. There

is something about the lengthening days that creates

a sense of optimism and momentum for the days

ahead.

During the month of May, I attended the Region IV

Meeting, along with fellow Dallas Club members. The field trips and seminars were

very educational and I commend the Corpus Christi Club for all their hard work in

putting it together. Congratulations to Sue Weaver, from the San Antonio Club, the

2018 Region IV Director-Elect.

I want to welcome all members to not only attend our monthly membership meetings,

but to also attend our club events. Just last month we held a Deepwater Horizon semi-

nar with Trevor Brinkley of Nabors Drilling and in July, we are having “A Day at the

Races” at Lone Star Park. We want our events to help educate as well as give you a

chance to get to know your fellow members from all around the industry. Have you thought about attending the 66th ADDC Annual Convention and Education-

al Conference? This year’s Convention will be held in San Antonio, TX from Septem-

ber 19-24, 2017. Field trips and seminars fill up quickly so get your registrations in

today to ensure you get the selections you desire; it’s only a few months away.

Just a reminder, our next membership meeting will be Thursday, June 1st at 12 pm at

Lakeside Square Office Tower – 12377 Merit Drive, Dallas, TX 75251, on the first

floor. Our featured speaker will be Paul Tossetti with IHS Markit. I hope to see you

all there!

Tiffany “Excellence Through Teamwork”

Inside this Issue

President’s Letter 1

Meeting Info 2

Dates to Remember

& Birthdays 2

June Speaker Info 3

May Speaker Re-

cap 4

May Meeting Pics 5

2017 Sponsors 6

2017 Sponsorship

Form 7

May Event Pics 8

Region Awards 9

Seminar Recap 10-11

July Function 12

2017 Scholarship 13-15

Fundraisers - 2017

Monitor Sales &

Entertainment

Coupon Books

16

Fun & Games 17-18

In the News 18-19

ADDC President

Letter 20

Region IV Dir Let-

ter 21

ADO Letter 22

Board, Committees

& Members 23

June 2017


June 2017 Meeting Information MEETING LOCATION:

Lakeside Square Office Tower (EXCO offices) — 12377 Merit Drive, Dallas, TX 75251.

When: June 1, 2017 — Lunch Meeting starting at noon. Where: Lakeside Square Office Tower (EXCO offices) – 12377 Merit Drive, Dallas, TX 75251. Cost: $22.00 cash/check or $23.00 credit card

Cancellations: If you make a reservation and are unable to attend, you must cancel

through the same reservation portal by the deadline to avoid being charged for the meal.

The meal will be: On The Boarder taco bar & dessert!

Parking: Park on either side of the building in the visitor parking; you may also park in the lot on the far side of the parking garage – Meeting room will be on the first floor.

Directions: Southwest from the IH 635 and US 75 exchange, 1 block off of Coit Rd. and Churchill Way; From IH 635, exit Coit Rd. and go 2 blocks south, turn right on Churchill Way, turn left at the 4-way stop on Merit Drive, on southwest corner; From US 75, take Midpark exit if going south to service road to Coit and follow directions above, take Churchill Way exit if going north, go left on Churchill Wayto Merit Drive, on southwest corner.

June 1……………………………...MEMBERSHIP MEETING June 13……………………...GOLF FOLLOW-UP MEETING @ DESPERADOS June 18…………………………………………..FATHER’S DAY June 21……………………………….1ST DAY OF SUMMER June 22……………………………………..BOARD MEETING July 8….………………………………………..JULY FUNCTION DAY AT THE RACES July 27……………………………………...BOARD MEETING August 3………………………….MEMBERSHIP MEETING

Birthdays

June 4 Susie Kadota June 30 Tiffany Sellars

June 2017


Paul Tossetti Senior Director

IHS Energy Markit

Crude Oil Markets and Downstream

“Overview of Global Crude Oil Markets in the Short Term’

Mr. Tossetti’s areas of specialty and expertise are oil markets, global oil supply

trends, OPEC production capabilities, crude oil prices and differentials, and global

crude oil flows. Mr. Tossetti joined PFC Energy which became a part of IHS Mar-

kit in 2006.

Paul is a past Senior Consultant (2001-2005) in Saudi Aramco's Corporate Plan-

ning Department where he was a key member of a small group responsible for ad-

vising Aramco's Executive Management on the monthly formula pricing of Arabi-

an crude grades to its refining customers around the world. Prior to this experi-

ence, Paul had over 25 years of experience with Atlantic Richfield (ARCO) in a

variety of roles including Director, International Natural Gas Marketing, and Di-

rector of International Energy Analysis. In both roles, Paul's focus was not only the

broad area of energy supply, demand and price, but also taking the analysis a step

further to identify and assess potential energy investments.

June 2017


Matt Musselman Senior Vice President

Caelus Energy Alaska, LLC

Mr. Matt Musselman was our May speaker. He has served as Vice President of Business Develop-

ment at Caelus and Caelus Energy Partners, L.P. since its founding in 2010. Caelus Energy was

formed in 2011 by Matt’s father, President and CEO Jim Musselman and is privately held. Collective-

ly, the team boasts an extensive resume of world-class exploration ventures and award-winning devel-

opments – both publicly and privately financed. The team’s past successes include the turnaround and

sale of Triton Energy, the formation and IPO of Kosmos Energy, and the development of the

Oooguruk field on the North Slope of Alaska.

Their Alaska operation was the topic of his talk. Matt explained that the State of Alaska has introduced a number of incentives to

draw oil and gas companies as 90% of jobs and revenue that fund the state come from oil and gas. Alaska is very “oily” so it is hard

to drill a dry hole as you are bound to hit something. In the southern part of the state near Anchorage, the production is primarily

gas and has been in development for over 20 years with the state subsidizing continued development. The other big area of develop-

ment is along the North Slope at the top of the state against the Beaufort Sea and the Arctic Ocean with the most activity being be-

tween the Colville and Canning Rivers up to Prudhoe Bay and backed up against federal lands. As far as mineral ownership, there

are some native interests but the state primarily holds 100% of the royalty interest.

ANS Crude Marketing built a pipeline in the 1970’s which has transported over 14 billion barrels of crude. The crude goes to Val-

dez in the south by Anchorage. The area is very beautiful but the shore very rocky so it is easy to see how the tanker Exxon Valdez

could have wrecked there. Matt stated that over the years the crude produced has become heavier and waxier so the large storage

complex at Valdez may require some reworking in order to process the crude in the near future.

Caelus has two main production projects in Alaska – the Ooguruk field and the Nuna field. The Ooguruk site was bought from Pio-

neer and is a 6 acre gravel island and drill site. When they first purchased it from Pioneer, it was producing 5,000 BOPD. Caelus

was able to develop it further and get production up to 27,000 BOPD at its peak. He credited Pioneer’s trial and errors with giving

Caelus a lot of knowledge to make this happen. Matt explained how the island is laid out with wellheads within arm’s reach of one

another. The 6 acre pad will hold 48 slot wells. The island is five miles from shore in 5-7 feet of water. The formations are sand-

stones but very tight. They drill horizontally with 8000’ laterals, frac and then waterflood. He described it as quasi-conventional

and unconventional. One drilling rig can drill 5 wells in a year. They have to do their frac jobs together during a small window in

winter as the 6 acre island is too small to accommodate the frac crews and equipment. They have to build out an extension of the

island made of ice along with ice roads to get the equipment over. They have a 75 day limit on an ice pad so everything has to be

perfectly timed or they have to wait until the following season. Matt talked about the frac process and how they have developed it to

get further out into the rock. They pay Conoco a processing fee and tie into their pipeline to get the crude to Prudhoe Bay.

Caelus’ Nuna field site is a little more accommodating as it is a 22 acre pad on land. So far there are two wells on this site. They

expect to develop it into 48-50 wells eventually. Matt explained about how it took about 220 loads to get the drilling rig there over 2

months in the summer. The rest was moved over roads. Matt told us it takes a huge amount of capital -approximately $80-90 mil-

lion just to get the equipment there and back. An operator can spend $4-5 billion before they even drill.

Caelus has a third project that they will be developing in the near future. In 2016, they made a huge, new field discovery at Smith

Bay in the National Petroleum Reserve of Alaska (NPRA). Oil and gas exploration in Alaska is quite different from the “lower 48”

as Matt described it. Matt came armed with lots of pictures of their facilities. Everyone was very intrigued and had lots of ques-

tions. We look forward to hearing more about Caelus Energy in the future.

Submitted by Sharon Figueroa

June 2017


Pictured:

Top Left: Matt & Tiffany

Top Right: Waiting to get some deli-

cious grub!

Middle Left: Machelle

Middle Center : Julie presenting

Gary with the Kelly award

Middle Right: Beverly & Julie

Bottom Middle: Dorothy, Mar ie, &

Barbara

June 2017


Thank you to our sponsors for the 2017 year!!

PDS Energy 5316 W. US Hwy 290 Service Road

Austin, TX 78735 800-318-7850

www.pdsenergy.com

Weatherford International 2000 St. James Place Houston, TX 77056

713-836-4000 www.weatherford.com

June 2017


June 2017


Pics from:

Region IV Meeting

Julie’s Going Away Dinner

Deepwater Horizon Seminar

June 2017


Certificate of Appreciation of Membership

Cheryl Morris - 5 years Barbara Chapman - 30 years

Molly Delgado - 5 years Dorothy Lyle - 35 years

Theresa Booker - 15 years Denise Adams - 35 years

Esther Evans - 20 years Brenda Pirozzolo - 40 years

Star Hasse - 20 years Pamela Aquino - 40 years

A.I.M.E.E Awards

Best Desk & Derrick Article: 1st Place - Carolyn Sczepanski “The Presidential Pilgramage” Jan. 2016

Best Industry Photograph: 2nd Place - Gary Bratcher “Crosby County Drilling Rig”

Best Bulletin (Large): 2nd Place - Sharon Figueroa Diamond Bits May 2016

Best Industry Seminar: 1st Place - Sharon Figueroa “Land 101” Oct. 2016

Best Industry Field Trip: 1st - Sharon Figueroa “NLA Drilling Rig Trip” Apr. 2016

June 2017


DEEPWATER HORIZON

BP’s Deepwater Horizon oil spill was

one of the worst man-made, environ-

mental disasters in the history of U.S.

offshore drilling. April 20, 2017 was

the seventh anniversary of that fateful

event.

On Saturday, May 20 we got together

for a viewing of the Deepwater Hori-

zon movie that was made about the

events that took place. We were joined by Mr. Trevor Brinkley with Nabors Drilling to ex-

plain the events that happened as well as answer any questions. Mr. Brinkley had sent over the

Final Report on the Investigation of the Macondo Well Blowout published March 1, 2011 by

the Deepwater Horizon Study Group which was formed by members of the Center for Cata-

strophic Risk Management at the University of California Berkley in 2010 in response to the

incident. The report went over in detail the timeline of the events that took place and what

went wrong and more importantly what could have been done to prevent it. The report was

well written and easily understandable as it included definitions and drawings to explain all of

the technical information.

Before we started the movie, Mr. Brinkley went over what we were going to see and gave a

brief explanation of some of the major things that went wrong and some of the safety proce-

dures that have been put in place to ensure that this doesn’t happen again. One of the things

he pointed out was the lack of an alarm system or a working one when things started going

wrong. He talked about all of the things that were going on simultaneously that shouldn’t

have. For example, because they were unloading of the mud system while they were testing

for pressure, they weren’t able to detect the rise in pressure as quickly as they should have.

What sparked the fire that ignited everything were the engines continuing to run while the

blowout was occurring. The engines now have an emergency automatic shut down when gas

is detected. There was no one willing to make the command decision to cut the drill pipe to

save the rig until it was too late.

June 2017


Employees are now trained better to make those necessary decisions in order to save lives.

There were many other examples that Mr. Brinkley gave before, during and after the movie to

help us understand what we were seeing. We stopped the movie several times for questions to

discuss events that were taking place and to point out the events that Hollywood added for dra-

matic effect that did not really happen. The biggest example of a Hollywood ad lib was the

seafloor coming up when the blow out was occurring. Mr. Brinkley pointed out that all of the

pressure was confined to inside the pipe and there was no way for the seafloor to be affected.

After the movie, we had a good discussion of everything that we had seen and a little more on

the safety precautions now in place because of this event. If we had watched the movie by

ourselves, we would have enjoyed a good movie. With Mr. Brinkley providing the final re-

port, his explanations and the lively discussion that followed, we learned and understood so

much better the events that took place. It brings a new admiration for those who work off-

shore to aid in the struggle for our energy independence.

Submitted by Sharon Figueroa

June 2017


A DAY AT THE RACES

WHAT: July Event – A Day at the Races

WHEN: Saturday, July 8, 2017, Races Begin

at 6:35 pm

WHERE: Lone Star Park in Grand Prairie

COST: $55/person plus tax (includes admission to Silks Dining Area, buffet, taxes and

gratuity)

PARKING: Valet is $15/car, preferred parking $5/car, general lot parking is free

DETAILS: We have reserved seating for our group, but we still have a few seats available at

the bottom level.

SEATING: For those of you who have been before, you will remember that the seating is

tiered with at least 3 levels, the top level being on the same level as the buffet. If

you will have someone in your group who can’t handle steps, you might want to

sit at the top level. If you want to be closest to the races, you might want to sit on

the bottom level.

CHILDREN: There is no minimum age to enter although children under 18 must be accompa

nied by a parent. Children 3 and under are admitted free of charge. The mini

mum age to place a wager is 21.

Please RSVP , to Sharon Figueroa. She needs a head count by party and where (top level or a

lower level) you want to sit.

June 2017


June 2017


Oil & Gas Terms

Down: 1. when well pressure exceeds the ability of the wellhead values to control it (2 words)

2. method of breaking down a formation by pumping fluid at very high pressures 3. sand or man-made, sand-sized particles pumped into a formation during hydraulic fracturing treatment

5. one billion cubic feet of natural gas 7. one thousand barrels of oil equivalent

8. burning of natural gas for safety reasons 9. underground or surface tubing or piping that is installed across states, counties, and continents to deliver fuel

11. compound containing only the elements hydrogen and carbon 12. underground formation where oil and gas has accumulated

14. includes the movement, measurement and processing of natural gas from the well to city-gates sales 15. land leased for oil and gas exploration aquifer,an underground layer of

19. pipe cemented in the well to seal off formation fluids or keep borehole from caving in Across:

4. drill crew members who handle the loading and unloading of equipment and assist in general operation around the rig 6. assignment of part or all of an oil, natural gas or mineral interest to a third party (2 words) 10. very fine-grained sedimentary rock that is form by the consolidation of clay, mud or silt

13. assembly of fittings and values on the top of the casing which control the production rate of oil (2 words) 16. rock in which oil and gas are found in exploitable quantities (2 words)

17. estimated measure of the total amount of oil contained in a reservoir, known as recoverable resources (3 words) 18. dill crew members who work on the derrick floor, threading together the sections of drill pipe when running or pulling a drill string

20. hole drilled by a drilling rig to explore for or develop oil and/or natural gas

June 2017


Major global oil trader has a warning for OPEC Bloomberg Sharon Cho, Serene Cheong and Dan Murtaugh

5/10/2017

OPEC and its allies are seeking to pump less for longer in a quest for higher prices. The world’s biggest independent oil

trader says their efforts could be in vain.

Demand isn’t expanding as much as expected, and U.S. shale output is growing faster than forecast, according to Vitol

Group. That’s increasing the burden on the world’s biggest producers, who need to stick to their pledges to cut supply

just to keep prices from falling, said Kho Hui Meng, the head of the company’s Asian arm.

Oil has given up all its gains since the Organization of Petroleum Exporting Countries and other producers signed a deal

late last year to limit supply for six months from January. Prices have been hit by surging output in the U.S., which is not

part of the agreement. Any recovery in crude will depend on sustained usage by nations such as China, India and the

U.S. as much as OPEC’s efforts to control supply.

“What we need is real demand growth, faster demand growth,” Kho, the president of Vitol Asia Pte., said in an interview

in Kuala Lumpur. “Growth is there, but not fast enough.”

While consumption was forecast to expand this year by about 1.3 million barrels a day, growth has been limited to about

800,000 barrels a day so far in 2017, he said, adding that U.S. output had grown 400,000-500,000 barrels a day more

than expected. “If demand goes back to where it should, where it’s forecast, then it’ll help, but my gut feel tells me it is

still a bit long,” he said.

HOW WELL DO YOU KNOW??

Each month there will be 5 random facts about one of our members. It is your job to figure out which member these facts correspond to. If you think you know, be the first to correctly tell Julie Hendon (since Victoria will not be in

attendance) at this month’s membership meeting and win a prize!

may’s member & Winner

The facts in May’s bulletin were about Barbara Chapman...and the first person to guess correctly at the May membership meeting was MTV!

june’s member facts

Fact 1: I have a B.S. in Elementary Education. Fact 2: The Beatles are my favorite musical group.

Fact 3: I played the clarinet in the high school band. Fact 4: I had a student pilot’s license and logged about 17 hours flying, 6 of those hours flying solo.

Fact 5: As a very young child, I was picked up by the local police a few of times after escaping the house, once naked.

June 2017


The International Energy Agency has trimmed its forecasts for global oil demand growth this year by about 100,000

barrels a day to 1.3 million a day as a result of weaker consumption in Organisation for Economic Co-operation and

Development member countries and an abrupt slowdown in economic activity in India and Russia, according to a re-

port last month. The Paris-based IEA cut its estimate for India’s 2017 oil-demand growth by 11 percent.

There’s also concern that consumption may slow in China, the world’s second-biggest oil user. Independent refiners,

which account for about a third of the nation’s capacity, have received lower crude import quotas compared with a year

earlier, prompting speculation their purchases could slow.

“The oil market is looking for growth but there’s no growth,” Vitol’s Kho said, adding that the refiners may only get

approval for the same volume of imports as last year. And while U.S. gasoline consumption is expected to hit its sea-

sonal summer peak soon, demand growth “is not there yet,” he said.

The world’s biggest crude exporter is nevertheless bullish. Saudi Arabia expects 2017 global consumption to grow at a

rate close to that of 2016, Energy Minister Khalid Al-Falih said on Monday. “We look for China’s oil demand growth

to match last year’s, on the back of a robust transport sector, while India’s anticipated annual economic growth of more

than seven percent will continue to drive healthy growth,” he said in Kuala Lumpur.

While some fear a slowdown in Chinese oil demand, Sanford C. Bernstein & Co. doesn’t see any cause for concern.

Growth in the nation’s car fleet will support gasoline demand, with increasing truck sales and air travel also helping

fuel consumption, it said in a report dated May 9.

Saudi Arabia and Russia, the world’s largest crude producers, signaled this week they could extend production cuts

into 2018, doubling down on an effort to eliminate a surplus. It was the first time they said they would consider pro-

longing their output reductions for longer than the six-month extension that’s widely expected to be agreed at an OPEC

meeting on May 25.

Global oil inventories probably increased in the first quarter despite OPEC’s near-perfect implementation of produc-

tion cuts aimed at clearing the surplus, the IEA said last month.

Shale Boom

“We’ve always talked about the call on OPEC, how much OPEC oil is needed to satisfy world demand,” said Nawaf

Al-Sabah, chief executive officer of Kufpec, a unit of state-run Kuwait Petroleum Corp. “Now, in this new paradigm,

it’s really becoming the call on shale. And the market is setting itself at the marginal cost of a shale barrel.”

U.S. output has jumped for 11 weeks through the end of April to 9.29 million barrels a day, the most since August

2015, Energy Information Administration data show. American benchmark West Texas Intermediate is trading near

$46.50 a barrel in New York, while global marker Brent crude is near $49 a barrel in London. Both are more than 50

percent below their peaks in 2014.

“I am still watching the U.S. summer gasoline demand,” said Vitol’s Kho. “OPEC has said it will try and extend its

output cuts beyond June. So if that happens, and the discipline is good, and if the U.S. lack of growth in demand

changes into summer, then we may see oil go back to the low $50s, but the prevailing mood today is not.”

http://www.msn.com/en-us/money/markets/major-global-oil-trader-has-a-warning-for-opec/ar-BBAYMjX?

li=BBnbfcL&ocid=DELLDHP

Submitted by Victoria Ashley

June 2017


June 2017


2017 Executive Board

President Tiffany Sellars

Vice President Sharon Figueroa

Secretary Machelle Selbe

Treasurer Lisa David

Director of Education Barbara Chapman

Director of Publications Victoria Ashley

Director of Rules Esther Evans

Immediate Past President Julie Hendon

Parliamentarian Barbara Chapman

Club Purpose and Motto

The purpose of the club shall be to promote the education and professional development of indi-viduals employed in or affiliated with the petroleum, energy and allied industries and to educate the general public about these industries.

Greater Knowledge, Greater Service

Desk & Derrick Club of Dallas P.O. Box 603071 Dallas, TX 75360

Victoria Ashley 2017 Diamond Bits Editor [email protected]

2017 Committees & Members AWARDS Esther Evans BULLETIN Victoria Ashley & Barbara Chapman

Editors BYLAWS Esther Evans COMMUNICATION/LEADERSHIP TRAINING & LEGISLATIVE INFORMATION COMMUNITY SERVICE Barbara Chapman CONTACT/EMPLOYMENT Esther Evans FIELD TRIPS/SEMINARS Barbara Chapman GOLF TOURNAMENT Barbara Chapman, Chairman

Machelle Selbe, Co-Chairman HOUSE ARRANGEMENTS Lisa David & Rita Harden INDUSTRY LIAISON Barbara Chapman

INSTALLATION Sharon Figueroa JULY FUNCTION Barbara Chapman MEMBERSHIP Sharon Figueroa ORIENTATION PHOTOGRAPHY Victoria Ashley, Mary T.Vaughan & Barbara Chapman PROGRAMS Sharon Figueroa RESERVATIONS Lisa David & Rita Harden ROSTER Victoria Ashley SCHOLARSHIP Esther Evans & Victoria Ashley TALLY WEBSITE/MEDIA Victoria Ashley

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