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Permian Basin Energy's Inaugural Issue

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  • EDITORIAL

    Executive Editor Johnathan [email protected]

    Managing PartnerSean Gonzales [email protected]

    Managing PartnerLonnie [email protected]

    ARTWORK

    Creative DirectorSean [email protected]

    Graphic DesignersSean Gonzales &Johnathan [email protected]@pbemag.com

    ADVERTISING

    Advertising Sales DirectorCrystal [email protected]

    Advertising Account ExecutiveMichael [email protected]

    Advertising Account ExecutiveAshley [email protected]

    Published by:

    Mopro, Inc4606 Johnson DriveOdessa, TX 79764(432)550-2633www.pbemag.com

    SUBSCRIPTIONS [email protected]

    Mopro, Inc. 2012 All material is strictly copyright and all rights are reserved. Reproduction in whole or in part without the written permission of Mopro, Inc. is strictly forbidden.The greatest care has been taken to ensure the accuracy of information in this magazine at time of going to press, but we accept no responsibility for omissions or errors. PBE Magazine welcomes any comments, feedback, suggestions, and/or submissions for consideration for publication. These may be submitted to: [email protected]

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    THE EVOLUTION OF SAFETY w/TCSafety BULLYING IN THE WORKPLACE HOW QR CODES HELP GROW YOUR BUSINESS

    Through the years, safety has become a major concern for companines everywhere. Take a look back at the evolution of safety through the eyes of a local safety professional.

    w/Beverly Ferguson, owner of The Life Coach Institute, Inc.

    Quick Response codes (QR codes) and other two-dimensional codes are expected to achieve widespread use this year and for good reason. Consumers want immediate access to whats relevant and QR codes are being used to make that possible.

    THIS BOOM vs. THE LAST ONETake a look at the insights, differences, and similarities of the last oil boom in the Basin in comparison to the current boom the Basin is experiencing.

    Bullies are not just found on grade-school playgrounds. Go in depth with renowned life coach, Beverly Ferguson, who discusses the oft overlooked occurences of bullying in the workplace and its impact on a business bottom line.

    WORD OF THE MONTHLooking to expand your oilfield & energy industry vocabulary? Check out our Word of the Month feature where we help you do just that!

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    FINDING THAT DREAM RANCH Upcoming Events in the Industry Dos Compadres

    Ever dreamed of living on a wide open ranch full of rolling green pastures, sur-rounded by tall oak trees, serving as the perfect haven for you and your family to live peacefully in your own little hideaway? Thats Texas Style, and Ranch Land Co. will help you in making those dreams become a reality!

    Looking for the next oil show, industry conference, or even the next local chamber mixer? You can find it all here on our event calendar!

    Go inside the day-to-day operations and learn the history of one of the most popular Mexican restaurants in the Permian Basin, Dos Compadres, in this two-page feature!

    Auction CalendarUsed equipment auctions, estate auctions, vehicle auctions, & much more! All can be found here in our upcoming auctions list!

    Next Issue

    Contents

    CHECK OUT OUR PLANNEDFEATURES FOR THE NOVEMBER ISSUE!

    20GOLF TIPS WITH TITO URIASAlign For SuccessPBE is proud to have partnered with Golf Pro, Tito Urias, who will feature our golf tips section each month! Check out his first set of tips here!

    -ALL NEW KIDS KORNER-

    -GUN & HUNTING SAFETY TIPS-

    -COMMUNICATION & DIVERSITY-IN THE WORKPLACE

    -EVERYTHING IS BIGGER IN TEXAS-

    -ALL NEW CLASSIFIEDS SECTION-

    & MUCH MORE!

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  • As this very first issue of Permian Basin Energy Magazine hits the racks, there are some things I hope will be noticed by everyone who reads a copy.

    First, the magazine is locally owned and produced. This means we can keep our ear to the ground for issues that affect our local business owners, customers, and community members. The PBE Magazine staff and sales personnel are busy listening to YOU--what you think, what you need, what youre interested in knowing.

    Another noticeable thing about PBE Magazine is that it is high quality. Its a beautiful magazine, and every page is printed on full-color, high UV-gloss coated paper. So whether youre an interview subject weve written about or an advertiser whose business we are profiling, youre going to look GOOD.

    The magazine will feature local, regional, state, national and world energy news content. Youre going to WANT to read this magazine. Thats another big difference from other publications that are just ads, ads, ads. Our content and special interest articles will let you in on events and issues that are central to your livelihood.

    Our regular features like Tech Bytes and Training Tips will convey up-to-the-moment information that will help you do business better and more efficiently.

    We also want you, our reader, to be involved. Well be asking for your feedback in our Letters to the Editor section, and well be happy to hear from any of our readers who want us to cover a particular event or story.

    So join in with us in celebrating the first issue of Permian Basin Energy Magazine. Its for you, and its about you, whether you live in the Permian Basin or you work directly for the energy industry. We hope you enjoy our first issue.

    Letter from Your Editor

    Johnathan Venable, Editor

  • Little did I know how much the oilfield would change when I started roughnecking in 1978. Safety training in 1978 was nonexistent. I would have laughed if someone had even mentioned a tailgate meeting or a safety briefing. My only safety briefing

    was when my best friend told me, If I start running, follow me! There was nothing about crosswind and upwind. Nothing was

    mentioned about FRC (Flame Resistant Clothing), PPE (personal protective equipment), lockout/tag out, slips, trips, falls and a

    host of other subjects that currently make up the lexicon of oilfield safety training. Actually, let me go back and add one thing:

    something was said about slips, and it was reach and get it, worm!

    Upon my return I found the oilfield I grew up with had become a thing of the past. Today, there are

    safety classes from everything imaginable such as: blood borne pathogens (a topic I was very familiar

    with as a paramedic but certainly didnt expect to see offered to oilfield workers), confined space

    (another training I was very familiar through the fire service), crane training (this one caught me off

    guard, since I never thought Id see crane training in the oilfield), rigging, hoisting / slings and excavation.

    Then theres driver training, and its not just driving, but backing safety, driver safety, forklift and aerial

    lift safety. Theres even training on drug and alcohol awareness (let me just say that in the 70s there

    wasnt formal training on drugs and alcohol, but lots of workers were, shall we say, very well informed

    on the subject). Topics routinely offered to trainees now include PPE, Hazard Communication, Hazwoper,

    Hydrogen Sulfide, Medic First Aid/CPR, fire extinguisher, back safety (all eight of these subjects are also

    covered in the fire service, so the crossover seems to go hand in hand), lockout/tag out, trenching and

    shoring, hot work, behavior based safety, SafeLand, and Rig Pass --the list goes on and on.

    These changes in oilfield business as usual can be overwhelming at times. Sometimes a challenge

    comes from the old timers whove done it this way for the last thirty years and made it just fine

    without all this safety stuff, and then sometimes the challenge comes from excessive training demand,

    almost a situation where we have too much of a good thing. One of the first things I heard upon coming

    to work at TC Safety was that everyone needs SafeLand training, so all of our trainers had to get certified

    through PEC to teach SafeLand. Now it seems that everyone is talking about Rig Pass, so now I get to

    go through the process of getting all the trainers certified through IADC (International Assoc. of Drilling

    Contractors). I just hope we can make it a few months without everyone needing to get certified

    through another company to teach the same stuff were already teaching.

    Who knows what safety changes will take place in the next thirty years? One thing I think we can

    count on is that the oilfield in 2042 will be much safer than the oilfield of 2012, but as long as were

    drilling holes in the ground and extracting black gold, the need for safety training will continue. The

    Safety Trainers job is to remain flexible enough to keep up with the times, yet remain practical enough

    to keep company operations profitable. At the end of the day, what we want to see is that

    our personnel are going home each day in one piece, free from injuries and safe

    from fatal accidents.

    Who could have ever predicted the changes that would take place in the world of oilfield safety training?

    Todays oilfield bears little resemblance to the oilfield of the 70s. I look at the safety classes that are offered

    today and I can only imagine what precipitated these changes.

    Many safety training subjects today are described as written in blood--in other words, these classes came into being after someone was either killed or seriously injured. Some of the more compelling examples of the written in blood topics Im aware of include H2S (Hydrogen Sulfide) Training, Medic First Aid and PPE.

    One event directly influencing the development of mandatory safety training occurred in the mid-1970s. This was the H2S leak on February 2, 1975 that killed nine people in Denver City, TX, some of whom were sleeping in their beds, innocent of the events unfolding around

    them. The tragedy spurred a state resolution calling for the Texas Railroad Commission to investigate recent hydrogen sulfide deaths and put into place a program

    that would warn residents living near gas injection wells since those areas had increased risk for H2S leaks.

    In early 1981, after three years of roughnecking, I jumped

    at the opportunity to take EMT training, simply because

    I thought the training could come in handy out on the

    drilling rigs. At the time I had no idea the EMT training

    would take me down a different path for the next 30 years.

    I became so fascinated with the emergency medical services,

    that I went on to become a paramedic and left the oilfield to

    become a firefighter. I subsequently retired from the fire service

    in 2011. It was after my retirement that I found my way back to the

    oilfield first as a safety trainer, then as the director of training for TC

    Safety.

    by Vaughn Donaldson

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  • BULLYING Some companies find it helpful to bring third party trainers or consultants into the organization, to evaluate the health of the workforce and to see if a problem exists. Once identified, employees who are bullies must be counseled about ceasing their negative behaviors, and if necessary, progressively disciplined to eliminate the problem. In extreme cases, only ridding the organization of the offending worker will take care of the situation.

    The one certainty a company owner, manager, or HR professional can count on is that ignoring the problem created by a workplace bully is like playing with explosives. Once the situation created by a workplace bully gets to the point of blowing up, prevention is no longer possible and damage control is usually really, really expensive.

    For more information on this issue and how you can address it, go to any major online book retailer. On one of the most commonly-used online book retailers there are over 400 different books for sale that address this issue. That is a big indication of the size of this problem in todays workplace.

    Beverly Ferguson, M. Ed., The Life Coach InstituteWorkplace safety has received a tremendous amount of attention in the last twenty years. Now, however, concerns are emerging about a new aspect of the healthy and productive work environment: the phenom- enon of bullying in the workplace.

    Bullies are not just found on grade-school playgrounds. One recent survey found that fully 50% of the workers polled had either witnessed bullying behavior or they had themselves been victimized by a bully at work. The consequences of having one or more victimized employees can be extremea company can be sued, or experience costly turnover when victims of bullying quit their jobs, or can even suffer negative impact to productivity due to low employee morale.

    What, exactly, is workplace bullying? Lets look at the definition offered on www.wikipedia.com, a commonly- consulted online encyclopedia: systematic aggressive communication, manipulation of work, and acts aimed at humiliating or degrading one or more individuals that create an unhealthy and unprofessional power imbalance between bully and target(s), result in psychological consequences for targets and co-workers, and cost enormous monetary damage to an organizations bottom line. (credit: C.M. Mattice and K. Garmans 2010 book, Proactive Solutions for Workplace Bullying: Looking at Benefits of Positive Psychology.)

    This definition points out 4 key elements that SHOULD concern business owners and managers:

    1. First, bullying is systematic, and not a one-time occurrence.

    2. Second, its focused on hurting or humiliating the victim, and it creates an unhealthy power imbalance in the work environment.

    3. Third, bullying results in damages (psychological, social, emotional, and even physical) to the victim, to the observers who see it taking place, and to the financial and operational health of the company or or- ganization.

    4. It is costly--if workplace bullying is not detected and eliminated, a company can literally be destroyed through litigation or simple failure of its work process because of destruction of employee morale.

    What can be done to address the problem of bullies in the workplace? First, as a company owner, you should have measures in place that give employees safe and comfortable ways to communicate their concerns. Do you have a way for workers to tell someone in management or in HR that a problem exists? If not, that adds fuel to the fire when a bully is actively harassing co-workers.

    in the workplace

    Beverly Ferguson, Owner of the Life Coach Institute, is a corporate trainer, consultant and life coach. You can reach her at www.beverlyferguson.org

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  • LA SEGURIDAD en los centros de trabajoBeverly Ferguson, M. Ed. The Life Coach InstituteLa seguridad en los centros de trabajo ha recibido mucha atencin en los ltimos 20 aos. En estos das, sin embargo, algunas preocupaciones estn emergiendo acerca de un nuevo aspecto en el ambiente de trabajo sano y productivo: el fenmeno de la intimidacin (bullying) en el ambiente de trabajo.

    Intimidadores (bullies) no slo se encuentran en los centros escolares. Un estudio reciente encontr que el 50% de todos los trabajadores han sido, ya sea testigos de actitudes intimidadoras, o ellos mimos vctimas de un compaero de trabajo (2011, www.TrainingABC.com). Las consecuencias de tener uno o ms empleados vctimas de este fenmeno puede ser extremadamente serio la compaa podra ser demandada legalmente, o podra experimentar costos altos de empleados renunciando a sus empleos; o tambin podra, incluso, sufrir un impacto negativo en la productividad debido a la baja moral de sus empleados.

    Qu es, exactamente, la Intimidacin (bullying) en el lugar de trabajo? Veamos la definicin ofrecida en la pgina de internet www.wikipedia.com: Es una comunicacin sistemtica agresiva, de manipulacin en el lugar de trabajo, y de actos llevados a cabo con el propsito de humillar o degradar a uno o ms individuos, y que crea un desbalance insano y poco profesional del poder entre el intimidador y la vctima (s), resultando en consecuencias psicolgicas para las vctimas y los compaeros de trabajo, y que adems cuesta un dao monetario enorme a la organizacin desde sus bases. (credit: C.M. Mattice and K. Garmans 2010 book, Proactive Solutions for Workplace Bullying: Looking at Benefits of Positive Psychology.)

    Esta definicin resalta 4 elementos que DEBERAN interesar a los gerentes y empresarios:

    1. Primero, la intimidacin es sistemtica y no un fenmeno que sucede simplemente una vez.

    2. Segundo, est enfocado en lastimar o humillar a la vctima y, adems, crea un desbalance de poder insano en el ambiente de trabajo.

    3. Tercero, la intimidacin resulta en daos psicolgicos, sociales, emocionales, e incluso fsicos a la vctima, as como a los trabajadores que presencian el acto y a la salud financiera y operacional de la organizacin.

    4. Es muy costoso si la intimidacin no se detecta y elimina; una compaa puede literalmente ser destruda a travs de una disputa legal o simplemente a travs del fracaso de sus procesos de trabajo debido a la destruccin de la moral en los trabajadores.

    Qu se puede hacer para abordar el problema de la intimidacin (bullying) en el lugar de trabajo? Primero, como dueo de la compaa, debes tener reglas que les ofrezca a los empleados maneras seguras de comunicar a su supervisor sus preocupaciones o dudas. Tienes una forma en que tus trabajadores puedan decirle a su supervisor o a RH que existe un problema? Si no, eso agrega ms lea al fuego cuando un intimidador (bully) acosa a sus compaeros de trabajo.

    Algunas compaas encuentran til traer a instructores o asesores a la compaa para evaluar el ambiente laboral y ver si existe un problema. Una vez que es identificado, los empleados que son intimidadores deben ser aconsejados para que paren sus actitudes negativas, y si es necesario, progresivamente disciplinarlos para eliminar el problema. En casos extremos, deshacerse de los trabajadores acosadores, solucionara el problema. De la nica cosa cierta que el dueo de la compaa, el supervisor, o el profesional de RH puede estar seguro, es que el ignorar el problema creado por un intimidador en el centro de trabajo es como jugar con fuego. Una vez que un intimidador ha creado una situacin de acoso en el centro de trabajo hasta el punto de explotar, la prevencin ya no es posible y controlar el dao es usualmente muy, pero muy costoso.

    Para ms informacin sobre este tema y como tratarlo, puedes ir a cualquier vendedor mayorista de libros en-lnea. En uno de los ms visitados hay ms de 400 libros diferentes en venta que tratan sobre este tema. Esto es un gran indicador del tamao del problema sobre la intimidacin (bullying) en los lugares de trabajo hoy en da.

    Beverly Ferguson, Owner of the life institute, is a corporate trainer, consultant and life coach. You can reach her at www.beverlyferguson.org

    Traductor: Juan Soto, Masters in Spanish; Masters in Bilingual Education/ESL

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  • Robert and Zoila Granado, owners of Dos Compadres Restaurants in Midland and in Odessa, sat down with Permian Basin Energy Magazine to share their experiences founding and operating one of the most popular restaurants in the Permian Basin. A busy week night in the restaurant was in progress, and waitstaff were whisking by, delivering plates of Mexican food and trailing wonderful aromas as full trays sailed past.

    The Granados have owned and operated Dos Compadres for twenty years in Midland, located at the corner of Garfield and Wadley. As customers began to request more and more often that a location be opened in Odessa, the couple accepted the challenge and established a second location on JBS Parkway, across from UTPB and tucked into a retail center that borders Freedom Park.

    Its a family business, for more than one reason. Of course the Granados six children have grown up working alongside their entrepreneurial parents. Along the way, some of the kids decided the restaurant business was their career choice, while others elected to work in other areas. But at key times, its always been family that helped make this successful restaurant what it is, today. At first, Robert continued working in his regular job, while Zoila tended to the restaurant. He joined her as soon as he got off work. It was tough, I admit, he says, and Zoila agrees: If it hadnt been for my mother, who helped us so much, I dont think we could have done it.

    Not many people can imagine the number of hours it takes to run a restaurant the right way. Imagine the biggest holiday dinner youve ever cookednow imagine youre cooking for a hundred or more peopleand

    now imagine youre going to do that every night for years. Could you make that work?

    Not many can, but Robert and Zoila have done it well. The restaurant features a well-rounded menu that offers something wonderful for every taste and preference. The

    dish Robert is most proud of is the Pescado a la Parilla, grilled catfish fillets, with a wonderful sauce of tomatoes, bell peppers and onions, with pico de gallo. Another

    recipe that is unique to Dos Compadres is the Portobello Fajitas, developed for patrons who are increasingly requesting vegetarian options.

    Que sabroso (how delicious)!

    The full service bar with well-rounded wine list and Tuesday and Thursday specials on family-recipe margaritas with a family secret (Robert, with a twinkle in his eye, could not be compelled to reveal it!) mean diners can truly have the best of the best when they come in to dine. As Zoila says, When you come out to eat, you want to be pampered. We are determined for each diner to know we want them to be pampered here at Dos Compadres.

    PBE Magazine was curious to know what the Granados have liked best about owning Dos Compadres? Robert smiled, and said, Being your own boss! Its a great feeling. Zoila smiled, and told how customers they had when they first opened twenty years ago have children that are now fully grown, married and who have babies of their own. Its been such a blessing to watch as our family grew, so did our customers families. We see customers all the time, and I think, That person was a baby in his mothers arms just a short while ago and now he has children of his own!

    Adventures along the way have included weddings, special events, and even catering for events of up to 2,000 (for Midland High Schools Band fundraiser), as well as occasional visits from famous restaurant patrons such as Tommy Lee Jones, the acclaimed actor. He comes in when hes in Midland for the polo, smiles Zoila. And the most famous person who ever graced their establishment? That would be hard to say, smiles Robert, but do you know that Selena was once here? (Selena Quintanilla, Grammy Award winner, who was tragically killed while still so young.) We never forget her visit. Add to that the catering theyve done for companies in locations up to 50 miles from their restaurants, and you get a sense of the very busy schedule these restaurant owners keep up.

    The concept of family defines the workers who have spent two decades with Robert and Zoila, too. Most of our employees have been with us for many years, explained Robert. Zoila agreed, saying, At Christmas, we have a big party, and Robert and the kids and I cook and wait on our employees. We have a really great time, and we tell them, It is our turn now to serve you! Robert points out, You know, we still cookwe still clean tableswe wash dishes.

    The warm atmosphere in this family-owned and operated restaurant is not something that can be created overnight or even in just a few months. The two decades that this still-youthful couple have put in to create a successful, comfortable, competitive restaurant have brought home to them some important rules for success: Robert says, Treat everyone like they are your very first customer. The day I stop doing that, Ill want to get out of the business.

    Zoila says, Take care of the people who work for you. They are your family, too. Some of the employees at Dos Compadres have worked for Robert and Zoila for every one of the twenty years theyve been in business. Just recently, one of the Dos Compadres family came to Zoila and Robert and shared some bad newstheir rent was going to nearly double, and they feared they might have to look elsewhere for work. We had to help, said Zoila, and we helped to see that our employee was able to make things come together. She shrugs, and says, Its what you do.

    It is what you dowhen you are a family. As Robert says, The people that work for you are the most important asset you have in your business. At Dos Compadres, that dedication to each other, and to the hard work that is done well, makes the restaurant one of the very best in the Permian Basin.

    We are determined for each diner to know we want them to be pampered here at Dos Compadres. Check Out Fajita Wednesdays, Our Daily Lunch Specials

    and Our Home Made Chicken Fried Steak

    Mon & Wed

    $150Draft Beer

    Tues & Thurs

    $250Margaritas

    Fridays

    $250Tecates

    BAR

    SPE

    CIA

    LS

    Midland: 432.684.7239 2200 W. Wadley - Odessa: 432.550.0691 4019 JBS Parkway www.doscompadres.net

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  • Daves a 4th generation oil and gas/energy professional, one of the principals as well as the Operations Manager for a consulting firm that employs industry-leading Engineers and Operations Supervisors. His great-granddad worked in the industry, his granddad was a production superintendent for Gulf Oil Company, and his dad was a Senior Drilling Superintendent for Mobil Oil. With all his family involved with major oil companies from the very beginning of todays energy industry, working in boom times as well as times when the business cycle contracted sharply, Dave has a unique perspective of one of the most vigorous economic cycles the energy industry has seen in recent memory.

    As Dave tells it, What people should remember is that oil and gas-- fossil fuels, if you will--are commodities. And commodities are subject to cycles. The marketplace cannot be at the apex all the time; so if youre in the oil and gas business, youre going to have to face higher-end and lower-end activity cycles. He admits it would be great to have a happy middle, both for operators and for service companies, in a best-case-scenario where budgets could be planned in advance, and revenue projections could be estimated accurately. He chuckles, Thats just not the way a commodity market behaves.

    Recalling the activities in the energy industry from the 1980s to the present, Dave says, I was in high school in the 1980s and so I dont think I felt the full effect of that downturn like I would today, as an adult. My father began working international jobs at this time, one sign the downturn was real significant. My parents had to bear the brunt of that one, and they figured out how to weather the storm. But as I got older and started working in the energy industry, I saw lower end times in 93-94, and higher in 95-97, and then lower end times again in 2000 when we all saw a pretty significant pullback. By the end of 2008 and part of 2009, a financial crisis severely affected the entire economy.

    What Dave has observed over the years of his career in energy is that overall theres been a big shift in the marketplace. We were so dependent on foreign oil at one time, he said, but now? With the Bakken, Wolfberry, Marcellus, and Eagle Ford production fields, and with the increase in production and new and better technologies that increase our efficiency-- like improved fracking--we are producing more and better resources.

    He went on to say, When people thought we hit peak oil, like Hubble predicted in the 1970s, some thought the energy producer would just fade away, but what weve seen instead is that energy production is sustainable and that it is a realistic goal to approach long-term energy independence.

    Simon admits that any resource is technically finite. Theres only a certain amount of any commodity, he confirmed. But new fields, newer technologies and improved efficiency all change the picture. The drive towards energy independence has another effect, too, of lessening the blow of any pullback of production due to fluctuation of the commodity market. Where we had a 60% to 80% pullback in the 1980s, Dave said, I think if we do have a pullback in the near future, it would more likely be 20%-30%, which is going to affect the industry a lot less drastically.

    In fact, Dave points out, there may even be an upside to the situation with that kind of pullbackhe says it can bring some sanity back to the market and shake out the less permanent fixtures of the business landscape. There are people and businesses that always show up in a peak market who want to get into the gamepeople who dont have the background or the experience needed to run a strong business. So what you get is the presence of unqualified personnel, along with more OSHA-reportable incidents, fatalities, well control issues, and spills. And the perception of our industry takes a hit for that. One good thing about a pullback is it eliminates these folks, who I call the pretenders. They show up, waving lots of cash, and want a quick in to a business that is hard to learn and hard to operate right. A pullback sort of restores the sanity to the situation and filters those pretenders out.

    With the companies that have decades of oil and gas experience, Dave is certain the future of energy production is going to be responsible, sustainable, and strong enough to put America on its own feet, independent of outside and sometimes unfriendly foreign producers. Especially if the pretenders are shaken out, Dave says, What you get with a moderate pullback is not all bad. You still have the consistent, steady companies that make it in the long run, time after time.

    Still, Dave emphasizes the fact that cant be denied: energy is a commodity, and commodities are cyclical. He says, The successful companies that will make it long-term dont get too excited about a boom, and they always know a lower end of the cycle is

    coming at some point. And they stay ready for that.

    That being said, Dave points out there are some positive aspects to a boom in oil and gas activity. In the Permian Basin and across the U.S., he says, it has helped attract talented young people to an industry that needs new blood and smart, talented workers. For years, he said, those of us in the energy industry didnt do enough to get the young talent recruited into

    our companies. We have an industry thats viable over the long term, and this upturn in the energy industry helps us attract that talent, and

    we need it for the long term. Another good aspect of the current business surge is that energy producers can take advantage of

    opportunities to educate the public about what it takes to produce the fuels that run our businesses and our homes. Dave says, We need to educate the public about what it takes to produce this commodity and what technology is doing to make it better and sustainable.

    One example of the impact of technology on Daves business activities is the decrease in time to drill and complete a well. It used to take 25-35 days to drill and complete; and now it take just 15-18. For the producer and the operator, this is a big change that improves the bottom line a lot.Simon sees a big difference between how oil and gas used to be produced and how its extracted now. It used to be that your wellsite was powered by a diesel engine and pretty much ran on mechanical processes. Its digital, hydraulic, electric, and computer-run nowadays, and incredibly more efficient.

    Lewis Simons experience with oil and gas spans more than four decades. Hes worked both on rigs and in the field as hands-on help and as supervisor and he can tell you how to get things done. Working that length of time in drilling gives a man a good perspective of the big picture, and thats what Lewis uses when he shares his views of the current levels of activity in the energy industry. Looking back, he sees things a little differently than some of his younger industry partners.

    The 1960s were pretty tough, he acknowledges. The 1969 downturn was hard to weather. He remembers another bust in the late 80s, saying, Lots of rigs went down in that one. Differences between todays business climate and earlier economic cycles are pretty numerous and Lewis pointed out a few for us.

    Back then the rigs were a lot less refined than today, he said, and by that, I mean todays rigs have better capabilities. They operate by using advanced technology, and theyre just more precise. Also, todays rigs are run differently from the start by the people who operate them, he says. Before advanced technology became such a part of the everyday picture, the manpower at the drill site would basically do everything to design, drill, and complete the well. The crew that you had on-site was making all the decisions, based mostly on what they saw coming up out of the hole. And a lot of that process was imprecise, based on years of someones experience, and sometimes just gut feelings.

    Its different today, Lewis says. Now, you have educated people who have precise information about everything you need to knowlogging and seismic information, computer modeling to project how to get your well drilled to the right point in the formationyou basically have your well designed and planned down to the last detail, before a single person ever sets foot on the site. These technological advances tell a drilling crew what to do at almost every step of the drilling process.

    And, he says, colleges and universities are really producing some smart, highly skilled young people who are needed to do all these complicated technology-driven jobs. Years ago, it was hard to find the people you needed who had the know-how to do their jobs. Hiring experienced people who knew what to do was tough, because those people were scarce, in the 80s. Back then, there were just a few people in the offices and most of a companys experienced personnel were on-site. Thats changed, Lewis says. Now the people running the operations cant find the number of skilled people they need to have out on the sites; so what they must do is rely on a few skilled people to guide the people on-site, and work with other employees at the site who have relatively little experience. This way operators can get the job done with a workforce that overall is less experienced, but its hard. You have to really rely on those few skilled, experienced people that are available. Experienced hands are really a scarce commodity right now, and they are the key to the whole thing.

    Other big differences between todays energy industry and decades ago can be seen in both the number of well sites that are permitted by government regulations, and the way that energy resources are extracted. Lewis explains that up to the 1980s, one well per section of land (640 acres) was permitted, and a company went in, drilled, completed, and worked that site as long as feasible. Drilling was vertical and sometimes pretty deep, and not as much was known about projected depletion time.

    Today, you can space your wells every 40 acres, and youre able to drill in tight formation pay zones. Since one well wont sufficiently drain a targeted zone like that, we started to drill more wells, and to drill directionally, following the pay zone 5,000 or 6,000 feet or more, laterally from the hole. This exposes a lot more of the pay zone to fracking and other techniques that increase production. However, working these zones, especially in shale pay zones, means you extract resources more quickly, and that the time to depletion can be shorter. Its harder to figure, he says, exactly when that drop-off in production will occur.

    Other technical improvements that were developed also helped, such as improvements in bits, pumps, and the top-drive systems on rigs. The top-drive system on rigs completely changed things, said Lewis, and its the directional drilling and working those tight pay zones that is driving this boom today.

    So what does Lewis Simon see happening in the next 5 to 10 years? He chuckled, and said, Well, youre not going to like what Im going to tell you, but its happened before, and it will happen again. Theres ups and theres downs, and it just doesnt last forever. Factors he sees as important to the length of this vigorous boom include the obviousthe price of a barrel of oil. We need it to be $100 a barrel or more to keep this up, he says.

    Not so obvious but just as impactful, says Lewis, is the escalating cost from subcontractors and how that affects the ROI for the operator. The cost of drilling depends on many factors, but he points out that costs are so much higher now. Youve got logging crews, and water trucks, and pit liner crews, and truckers who are making very high salaries, and thats just a short list.

    Some of the subs are making astronomical profits, he says, and this is a big reason that eventually, some adjustments will have to occur. A welder, for instance, used to get $25 an hour, and now some folks are having to pay $100 an hour. If service companies keep increasing their costs, then ROI is not as healthy, and at some point theres got to be a leveling-off.

    Added to that is the state of the economy outside of drilling and energy. No one is making any money in other investments. An operator can target making an ROI of 6% or 7% from a well, for instance. With bonds and other investments making next to nothing, that healthier ROI is an attractive prospect for the guy drilling the well. If that changes in the future, and these other kinds of investments bring better returns, then drillings going to slow. It cant keep up at this pace forever.

    Is thisDIFFERENT?on

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  • PERMIAN BASIN INTERNATIONAL OIL SHOW

    ODESSA, TEXAS

    PERMIAN BASIN INTERNATIONAL OIL SHOW

    ODESSA, TEXAS

    19TH INTERNATIONAL PETROLEUM ENVIRONMENTAL

    CONFERENCE UNIVERSITY OF TULSA: 918-631-3088 (30TH-1ST)

    PBE MAGAZINE LAUNCH!PERMIAN BASIN ENERGY MAGAZINE

    HITS SHELVES THROUGHOUT THE PERMIAN BASIN FOR THE FIRST TIME!

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    IAGC SPORTING CLAYS TOURNAMENT, WESTSIDE

    SPORTING GROUNDSKATY TEXAS: 713-957-8080

    PROFESSIONAL DEVELOPMENT WORKSHOP W/ BEVERLY FERGUSON,

    THE LIFE COACH INSTITUTE, INC.MEMPHIS, TENNESSEE (27-30)

    02 03

    PERMIAN BASIN INTERNATIONAL OIL SHOW

    ODESSA, TEXAS

    SOOGA FALL CLAY SHOOTHILLTOP SPORTS

    WHIPPLE, OH 740-374-3203

    PPROA LIVING LEGENDS BANQUET, CIVIC CENTER,

    AMARILLO, TX 806-352-5637

    23PTTC WORKSHOP: RMAG-

    PTTC FALL SYMPOSIUM ON HORIZ. DRILLING, DENVER

    303-273-3107

    PERMIAN BASIN PETROLEUM ASSOCIATION

    ANNUAL MEETING, MIDLAND, TX 432-684-6345

    30 31

    WORLD ENERGY IN 2040, THE FACTS, PHYSICS &

    ECONOMICS, RITZ-CARLTON, DALLAS 972-6865-2460

    PTTC WORKSHOP: MAXIMIZING OIL RECOVERY

    ECONOMICALLY

  • Stephanie Glover has a keen interest in what happens during this economic boom, because she is one of the relatively few women who own an energy-related business. In fact, Stephanie may be more invested, both mentally and financially, than some others because she has not just one, but three different service companies. It started for Stephanie about fifteen years ago when she moved to the Permian Basin from the Houston area. Originally from South Carolina, she relocated to Houston during the 1980s economic downturn. Although life in Houston, Texas, was exciting, Stephanie heard through a friend that West Texas was the place to beand since she had visited Midland/Odessa while still living and working in Houston, she remembered it as a region where people worked hard and made their own way. In 1987, she made her first fateful trip to Odessa, and she laughed, I didnt even know there was such a thing as The Energy Industry! She was no stranger to hard work. Stephanie had worked as a salesperson, and a promotional associate for a big five industry, and in finance. She says, One way or the other, Ive always worked in sales and service. Once I came to West Texas,

    it seemed natural to apply that experience to openings in the oil and gas industry. For one thing, the energy industry is really interesting as the advancement is always changing. And for another, if you are willing to work hard, keep your word, and prove yourself, there are no limits to what you can accomplish. There have been many people with a long standing history in this industry that have attributed to her knowledge, training and success. Family connections also proved to be very important as she began her career, or in this case her new career. Stephanies father-in-law, Dick Glover, was an avid supporter who went out of his way to see that she got every opportunity that she could. Dick would meet with her and take her out to some of the different oil companies and while he would drink a cup of coffee with his friends he would encourage them to listen to what she had to say. Dick had been in business out here for more than forty years and they were willing to give her opportunities with his encouragement. He also provided her with helpful tips and advice that she still uses today. What I learned, several years ago, is that I could be successful if I dealt straight with my customers, always delivered what I promised and listened to what their needs were. She laughs, and says, It sounds simple, but to do your very best, day after day, makes for long hours and the fact that an entire crew may be waiting for what youre delivering is a big incentive to put forward your best efforts. When asked Do you see any different characteristics of this vigorous economic market compared to just a few years ago?, Stephanie and her husband Skeet Glover both shared their experiences. We have had a pretty good run here for a few years,-- 2007 and 2008 were off the charts busy-- and we saw oil prices top off at $140 plus, and then a hiccup in 2009, and in early 2010, and then back to hitting on all cylinders again. Global dynamics are so much different now than in the eighties and nineties. Back then we were still at the mercy of overseas influences that arent as pervasive today. We have also had some technological advances that have revitalized some of our fields and made them attractive again, Skeet and Stephanie both agreed. Still, it took persistence for Stephanie to really establish herself. As a female, I constantly had to prove myself, Stephanie explained. I had to prove that I had a brain, I had some knowledge, and I had some common sense. . . it sounds harsh, but if youre a woman, you have to bring your A game to every job, every day! As her interest in the industry grew and she worked, Stephanie found that her star was in sales. I found I had a natural talent for helping people get linked up to what they needed, she said. And it didnt hurt that she was unafraid to get her hands dirty. I am always ready to participate with what needs to be done, from office work, to field locations, or in the pipe yard she said, I was ready. I didnt mind doing the work, and Ive learned most of my experience came from hands-on. All along the way, Stephanie found she had to show to people that she had learned by DOING. Between the service companies I can provide just about anything thats needed for the site. All the companies were born out of a normal progression of some of the other things I was already doing. It has been a lot of fun for me and very rewarding at the same time, Ive got some great customers and they have accepted me for who I am--they trust me to take care of them and their oilfield needs. I personally think the Permian Basin is going to have continued growth, she said. It might be cyclical to some degree, not the same situation as in the 1980s, for instance, because global business opportunities have changed the overall picture a lot. Since global oil supply is equal to global oil demand we are now in a position that we havent seen in years past. Especially if the global economy improves, we will continue to see huge opportunities here in the Permian Basin. How can a person copy her success? She doesnt hesitate before saying, Find a place where you can work alongside someone experienced; pay attention; follow through with whatever opportunities your customers provide you with! And her husband Skeet has some thoughts to share, too. I think there are more opportunities for women today than there were several years ago, he says, thinking back to when Stephanie was just getting her feet on the ground in the energy industry. Her time has definitely come, women do have capabilities to provide service and sales on a level that is very competitive to anyone else, including men who formerly dominated the field. But I give all the credit to Stephanie, she took the time and made the effort to learn her trade and her products. She is as knowledgeable as anyone I know at what she does. As Stephanie says, We have a strong need for qualified personnel, and the bar has been set really high here in the Permian Basin energy industry. What I see right now is that both service and operator personnel are open to people with talent, and ability, whether they are men or women. This husband and wife both agree on some observations of current industry needs: most importantly, that companies are taking better care of their personnel than in prior boom times, and that they are more responsible about how they go about daily business. Stephanie and Skeet both see this to be true: The main focus is to treat people like they are an appreciated and valued resource, both the customers and the employees.

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  • QR Codes and How They Promote Your BusinessWhen you see those funny boxes filled with a black and white pattern, what exactly are they? With the increasing use ofsmartphones, lots of automated information functions are available to business owners and to their customers. Oneincreasingly used app, or application, is something called a QR Code.

    For those who dont know what the QR Code is, or why on earth it could be useful, the first thing to know is that it is a kind of a bar code. Its not really different from the bar codes that your grocery store uses to price your canned goods, or your box of cereal. Scanning the bar code allows the cashier to enter the price of your purchase, and it also allows the grocer to keep inventory updated.

    QR (Quick Response) Codes work just like that. The QR matrix (the box of funny looking black and white pattern) is a kind of bar code. Originally invented for use by the auto manufacturing industry, the QR matrix (box) is a quick-entry doorway to information of some type about your business or your product.

    Lets say you run an ad in a publication like the PBE Magazine.If you decide to include a QR Code in your display ad (and we would ENCOURAGE you to do that), readers will almost certainly have smartphones and be familiar with those codes. The reader puts his or her phone up to the QR Code, and the app on that phone allows that QR Code to open to your website, or to your companys Internet sales page. It is an added gateway that brings your customer right to your door. According to www.mobilemarketer.com (quoted in Wikipedia.com), the QR Code has become a main focus of advertising strategy, since it provides quick and effortless access to a companys website.

    So who generates or produces a QR Code for a busy business owner? If youre up to your ears in scheduling field crews, operating a fast-paced business, or otherwise working the 70-plus hour weeks that come along with the pace of our regional energy industry economy, who has time to find yet another person who can help you get this marketing advantage set up?

    Your marketing or advertising person will almost certainly have the ability to set up a QR Code with the correct links to your company website. Its a smart move that takes advantage of this technology. Whether you personally scan and use QR Codeswith your smartphone, almost everyone else under 40 years old is already doing just that. If youre not taking advantage of this advertising strategy, its like throwing away an advertising opportunity that essentially costs you little or nothing.

    QR Codes are the business owners new best friend. For moreinformation on how to use them, contact PBE Magazine at 432-550.2633.

    432.288.7469

    Call David

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  • Leon Nance has more than four decades of experience helping people find the perfect ranch property across three states. Hes met thousands of people (some of them pretty well-known and famous!) and hes got more background in ranching properties than you can imagine.

    Leon owns Ranch Land Co. (www.ranchlandco.com), with main offices in San Angelo, Texas. Specializing in large properties that are working ranches, as well as recreational ranch properties that are perfect for hunting retreats, Leon conducts business in Texas, New Mexico and Oklahoma.

    The words Integrity, Expertise, and Ethical describe Leon and his approach to the business he conducts with people who are looking for the perfect property. He tells PBE Magazine, The most enjoyable experience for me is taking a young family out, showing them a nice ranch property, then working out the details to allow them to follow their dream. Just to see the excitement they have and to watch as their family grows with their ranch is exceptionally rewarding for me.

    Leons clients include families looking for a place of their own to start their ranching operation; business owners who need the perfect ranch hideaway; and folks who can literally choose any property in the world. One thing youll learn quickly about Leon is his absolute commitment to confidentiality for his clients. He also has an absolute commitment to discretion for his clients, protecting their desire for privacy, along with an equal determination that he will make sure every single detail of the purchase will be attended to correctly. He tells us, Over the years, Ive had many loyal clients who have been repeat customers for me, both buyers and sellers. Im extremely proud of that. Looking back on his years in the business, Leon admitted, Theres a lot to getting started in the business Im in. It can be tough getting started, but forty years into it has given me the chance to talk to thousands of people and I find that real gratifying. Leon says you can learn something from almost anyone you ever talkto, if you listen, he says.

    Originally Leon was handling real estate transactions in New Mexico. And thats where he met the love of his life, his wife Joyce. She travels with me quite a bit, Leon told PBE Magazine, and she is a pretty good driver, too!Leons word is his bond. His clients know that, which explains the high number of repeat customers and referrals he receives. As one of the most respected people in his field, Leons the man to know when youre searching for the perfect heritage ranch property and you want to make sure every detail is handled correctly and with absolute confidentiality.The apple doesnt fall far from the tree

    Sunni Nance Gothard is Leons daughter and she also partners with Leon in brokering ranch properties and other real estate. Growing up on a horse ranch and competing as a rodeo athlete while in college gives Sunni a unique perspective on ranch property sales. With a background in marketing and public relations, Sunni is Leons most trusted hand, to use ranch terms. Sunni was active in ranching with her husband in Coke County.

    She is licensed as a real estate agent in Texas and has a very active role in Ranch Land Co. People we deal with are looking for very significant properties, and they know we guarantee absolutely the highest degree of professionalism. PBE Magazine staff asked if their typical client is the higher-end buyer. You could say that, but we handle listings for smaller parcels too. We have rural properties that are listed for prices that are very affordable, but we also have what Id call once-in-a-lifetime properties too. If you look at our website (www.ranchlandco.com) you will see that currently Ranch Land Co. has a listing for the Rock House Ranch in north Tom Green County, a haven for hunters, with white tail deer, turkey and quail in a abundance, as well as the capacity to be a good cattle operation. A large barn, a horse barn, good corrals and a roping arena are in place, making this ranch a ready-to-go operation for the right buyer. Or if you prefer your dream ranch property to be located in Oklahoma, Leon points out the Red Oak Ranch, located in LeFlore and Latimer Counties. This ranch is one of the most beautiful on the market today, with excellent cover of native grasses, bermuda, rye grass, fescue and bahiagrass. The terrain at the Red Oak Ranch is rolling, open grassland, with numerous live oak trees and 300 acres of hay meadow. What could be more perfect for the home of your dreams?

    Like her father, Sunni too emphasizes her determination to be accountable to her clients for the highest degree of integrity and confidentiality possible. Our clients know we hold to the highest ethics, and that we

    sincerely care about their needs, she said. My Dad taught me that. You treat people right, and you respect them, and you take care to keep their interests first. Thats what makes Ranch Land Co. distinct

    and unique.

    If you are looking for your dream property--large or small, family home, cow/calf operation, registered livestock ranch, or hunting property--youd be smart to contact Leon Nance, or Sunni Nance Gothard. Youll find they will listen first, and then help you locate the perfect property for you, for your family, and for your future.

    For more information you can contact Leon Nance at 325-658-8978 (office) or 325-656-8978(cell phone); call Sunni Nance Gothard at 325-234-2507, or go to their website www.ranchlandco.com.

    an interview with Leon Nance, Ranch Land Co. owner and brokerRanch Land CoTennyson Ranch - 5208 + AcresHas received 7.5 rain. Exciting mineral opportunity. Wheat partially sewed, 400 acres, Deer, quail, dove and turkey.

    Valley Ranch - 937.5 + AcresHas received 7.25 rain. 135 acres farm will be ready to sew wheat. Large live oak trees. Creek, lake, and eleven tanks, plus county water. Minerals. Improved and native grass. Improvements too numerous to list. Three bedroom, two bath recently remodeled home. Call for brochure. This nice ranch has everything.

    Rock House Ranch - 4140 + AcresSome of the best deer hunting in area. Great improvements. All of this country has received 7 to 9 of rain. Conditions couldnt be better. Great hunting facilities with lodge. Beautiful rock home. Owner will consider a trade.

    Red Oak Ranch - Oklahoma - 4474 AcresAn outstanding cattle ranch with complete facilities for a superior cattle ranch. Presently carrying 600 head. Outstanding improvements. Eleven pastures and nine traps. Over six miles of new fence. Numerous Live Oak and Red Oak trees. Superb hunting and fishing. This ranch is superb. Call us on this ranch.

    Hilltop Ranch - 241 Acres Coke County, TexasThe Hilltop Ranch is located approximately 1.7 miles from Robert Lee, Texas. The terrain ranges from wooded draws to rolling hills, excellent for hunting. The ranch has amazing views of the Hayrick Mountains and several ideal locations for home sites with good fences. The Ranch has an excellent cover of native grasses including mesquite grass, sideoats and various gramas. The soil is red soil and sandy loam. The Hilltop Ranch has a good supply of water with a well at approximately 200 deep. There is one good surface tank and wet-weather creeks. Rainfall averages 20 inches annually. There is an abundance of white tail deer, turkey, dove and quail on the ranch. The Hilltop Ranch has been game managed and hunted with some hunting income produced.

    Call For Information On Other Ranches That We Have Available Most All Of Our Ranches Have Had Great Rain

    Leon Nance, BrokerRANCH LAND COMPANY325-658-8978 www.ranchlandco.com

    TELL THEM LEON SENT YOU 1-800-829-8747

    Leon Nance, BrokerSan Angelo

    Sunni Nance Gothard, RealtorMidland

    Ranch Land Cowww.ranchlandco.com

    325.658.8978

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