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  • 7/28/2019 The Permian Basin Magazine

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    Novbr 200

    P e r m i a n B a s i n P e t r o l e u m A s s o c i a t i o n w w w . p b p a . i n f o 4 3 2 - 6 8 4 - 6 3 4

    The Permian Basin Petrolem Association Magaine

    PRSRT STD

    U.S. Postage

    PAIDPermit No. 1467Fort Worth, TX

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    Oilfeld Equipment& Supplies

    Tool & Supply Coone of the largest drilling rig parts inventories in the U

    The Permian BasinCan Always Count

    on the Best from...

    >Drilling Equipment

    >Mud Pump Supplies

    >Drilling Supplies

    800-395-4142

    EC Tool and Supply Companyabiee, TX lc (325) 673-3781 Fx (325) 673-1035 Ei: [email protected]

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    PBOil&GasMagazine

    D E P A R T M E N T S4 From the President6 From the

    Executive Vice President8 From the General Counsel

    10 Member News14, 20 Industry Reports

    27 News Reviews29 Education & Training

    Calendar31 PBPA Calendar of Events

    12 September Lncheon Highlights RandyFoutchofLaredoPetroleumtoutedtheuseofprivateequity,amethodologyheusedtobuildfoursuccessfuloil

    companiesintheMid-ContinentandPermianBasin,andgave

    hisperspectiveontheglobaloilandgasconditionatthePBPA

    Septemberluncheon.

    16 Top Hand Recipients GlennPattersonandCloyceTalbotthavebeennamedco-recipientsofthePermianBasinPetroleumAssociationsTopHandAward.ThepairwillbehonoredattheTopHandBanquet

    Jan.24,2008,atthePetroleumClubinMidland.

    22 Oil & Gas Sotware PermianBasinOil&GasMagazineaskedseveralexpertsin the eld of oil and gas data to give their advice in picking

    therightsoftwaretomeetvariedneeds.Accordingtothese

    professionals,integrationofdifferentsoftwareisthekey.

    28 Nrtring Domestic Prodction Americasundevelopedoilandgasresourcesshouldbeconsideredourgenerationsvictorygardeninthefaceoftodaysstruggletomaintainenergysecurity.Innovativetechnology

    isbringingonlineoilandgasproductionfromheretofore

    noncommercialandunconventionalgeologicalreservoirs.

    Permian Basin Oil & Gas

    eDITORIALJulie Anderson

    432-367-1564 Fax [email protected]

    ADveRTIsIng sALesAmy Brittain

    325-673-4822 (ext.121) Fax [email protected]

    h.C. Zacry Publisher

    Bcky Frot Business Manager

    Jli Adro Editor

    Amy Brittai Sales Manager

    Kati Kafma Art Director

    The Permian Basin Petroleum Association is a non-proft organizationor the promotion o business efciency and the betterment o PermianBasin oil businesses through cooperative eorts and the exchange oideas. Published on the 5th o each month. Opinions expressed in thismagazine are those o the writers and do not necessarily represent theviews o the magazine or the Association.

    PB Oil & Gas is published monthly by Zachry Associates, Inc. All materialscopyright 2007 by Zachry Associates. Reproduction o contents in wholeor part without expressed written consent o publisher is prohibited.All rights reserved. Monthly PB Oil & GasMagazine single copy priceis $2. Subscription rate is $22 per year. Address all purchase requests,subscriptions, news items and inquiries to:PB Oil & Gas, 500 Chestnut St.Ste. 2000, Abilene, TX 79602, 325-673-4822, FAX 325-677-2631.

    PB OIL & GAS IS The OFFICIAL PUBLICATION OFThe PeRmIAN BASIN PeTROLeUm ASSOCIATION

    www.pbpa.ino 432-684-6345 [email protected]

    ContentsNovember 2007

    On the Cover:ector Coty

    Poto by Day Flaaa

    B spprdPBPA Executive

    Vice [email protected]

    Allio WbbPBPA Ofce

    [email protected]

    Becky FrostPBOG

    Business Manager

    Julie AndersonPBOG Editor

    Amy BrittainPBOG

    Advertising Director

    PERMiAN BASiN PETRolEuM ASSociATioN STAff

    PERMiAN BASiN oil & GAS MAGAziNE STAff

  • 7/28/2019 The Permian Basin Magazine

    4/32November2007

    Well,anotherannualmeetinghascomeandgone,andas

    beforewehadagreatturnoutforouricebreakerreceptionand

    thefollowingdayatourbreakfastandluncheonmeetings.ItwasaperfectopportunityforourbusyPBPAmemberstonetwork

    witholdfriendsandmeetnewones.Anaddedpluswashearing

    KenHershofNaturalGasPartnersattheluncheon.Hisexpertise

    andvisionforourenergyindustryreallymakeusallfeelgood

    aboutwherewehavebeenandwhereweareheading.

    The nally-waking-up award goes this month to Congress

    asthestallingethanolindustrywantsthemtomandategreater

    useofthebiofuel.Butmanyoftheindustrysformerfriendshave

    turnedagainstitamidsoaringpricesforcornandothergrains.

    Congress gave a big boost to ethanol in 2005, when it mandated that oil reners blend 7.5 billion

    gallonsofrenewablefuelssuchasethanolintothenationsgasolinesupplyby2012.Thefarmlobbywas

    unitedbehindethanolasawaytostrengthenruraleconomies.Environmentalgroupsbackeditasaway

    to ght global warming and lessen the nations dependence on foreign oil. Since then, dozens of ethanol

    plantshavesproutedaroundthecountry,turningcornintofuel.Theriseoftheindustryhashelpedtoboost

    grainpricesandcreatejobsinfarmstates.

    But ethanol production today is close to reaching the 7.5-billion-gallon level in the 2005 law. Over-

    supplyhasforceddownpricesanddrivensomeethanolproducersintotrouble.Producersandcornfarm-

    ersarelobbyinghardforCongresstoboosttherequirementanewtoensurethatdemandcansoakupthe

    risingproduction.

    Opposition to the ethanol industrys goals has grown signicantly stiffer. The so-called barnyard

    lobbyrepresentingthemeat,livestockandpoultryindustriessaidhighcornpricesarehurtingitsprof-

    its.Thepriceofcorn-basedanimalfeedhasincreasedabout60percentsince2005,accordingtotheU.S.

    DepartmentofAgriculture.

    Our single biggest priority is for Congress to reject a new renewable-fuels mandate, said Jesse

    Sevcik,vicepresidentoflegislativeaffairsattheAmericanMeatInstitute,ameatandpoultrytradeas-sociation.

    Other groups that were originally sympathetic to ethanol are drifting away. They fear that the fuels

    advantagesareoutweighedbytheriseincornprices,whichtheysayincreasesthecostoffoodsranging

    fromsteaktocereal.

    Many policy-makers were seduced by ethanol, said Cal Dooley, president of the Grocery Manu-

    facturersAssociation.TheAgricultureDepartmenthassaidconsumerscanexpecttopayasmuchas4.5

    percentmoreforgroceriesandrestaurantmealsthisyearoverlast,upfroma2.4percentrisetheyear

    before.

    ThespreadingcoalitionagainstnewethanolmandatesincludestheAmericanPetroleumInstitute,

    whichsupportsethanolbutprefersamarket-drivenapproach,ratherthanonedrivenbythegovernment

    with its subsidies. Some petroleum reners say ethanol prices are low enough now that they would con-

    siderbuyingthefuelontheirown,withoutmandates.

    Charles Stenholm, a former Democratic congressman from Texas who was inuential in agriculturepolicy,isnowalobbyistinWashington.Hisclientsincludepork,dairyandoilinterests,accordingto

    lobbyingrecords.AccordingtoStenholm,theyallagreethatyouneedtoletthemarketbethebiggest

    determinant for ethanol.

    WeatPBPAcouldnotagreemoreandhavebeensayingthatforacoupleofyearsnow.Firstand

    foremost,peopleneedtounderstandfromanenergystandpointthatethanoltakesjustasmuchenergyto

    makeasitgivesup;somesayittakesmoreenergythanwhatitgivesup.Sometimestheselobbyistsget

    what they deserve when pushing an idea that just doesnt makes sense. Maybe Congress will nally be

    comingaround.

    Again,thankstoallofyouPBPAmemberswhohelpedsponsorourannualmeetingthisyear.As

    always,weatPBPAareveryappreciativeofallyoudoforthePermianBasinandournation.Keepupthe

    greatwork!

    FromthePresident

    President

    Kirk edwardsMacLondonRoyalty Company

    ExectiveVice PresidentBn SpprdPermian BasinPetroleum Associatio

    ImmediatePast PresidentBruc BradyGreat Western

    Drilling Company

    President-ElectTaylor maynMayne & Mertz

    Vice Presidentat LargeDoug RobisonExL Petroleum, LP

    HonorarVice President

    harry SpannausDiscovry Oprating

    Area Vice Presidmik RobinsonRobinson Drillingo Txas

    Area Vice Presidmark mrrittFaskn Oil &Ranc, Ltd.

    Area Vice PresidKlly maclaskymaclasky OilfldSrvics, Inc.

    Secretar/TreasKn DanJonson, millr &Copany

    General ConselBrad millrKrr, Ward, mcLaug& millr, L.L.P.

    ExecutiveCommittee

    Kirk Edwards, PBPA President

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    Ignition Systems & Controls, L.P.

    T H E W A R R E N C O M P A N I E S

    w w w . w a r r e n - e q u i p m e n t . c o m

    Established in 1971 with the creation oCompressor Systems, Inc., Warren Equipment

    Company has grown rom our employees to over

    two thousand - rom a single company to seven.

    From the beginning, each company was built

    on a commitment to quality, reliability and

    strong customer service. That commitment

    is still integral today. Weve grown rom one

    small company to a corporation that provides

    products and service representing world class

    manuacturers like Caterpillar, Ariel, Frick,

    Altronic, and Flowserve, just to name a ew.

    We are dedicated to the delivery and service

    o these products around the corner or around

    the globe. This commitment guarantees the

    best value or our customers. Put the Warren

    diference to work or you.

    World class employees

    Delivering world class products

    Supported by world class service.

  • 7/28/2019 The Permian Basin Magazine

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    FromtheExecutiveVicePresident

    Ben ShepperdPBPA Executive Vice President

    Itwasgreattosee