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The Trump Energy Plan: A Sea Change in U.S. Energy Policy

It has been a year now since we all awoke on Nov. 9, 2016, to the reality that, against all odds and all predictions by the polls and political “experts,” Donald J. Trump had somehow defeated Hillary Clinton in the race to become the 45th President of the United States. It was a stunning outcome to a seemingly endless campaign, one that had turned into the most vicious and personal presidential contest in modern times.

The oil and gas industry had not supported Trump’s candidacy during the Republican Party’s primary and nominating process, when most contributions from industry executives and company employee PACs flowed to more conventional politicians like Wisconsin Gov. Scott Walker, former Florida Gov. Jeb Bush, and Sens. Ted Cruz of Texas and Marco Rubio of Florida. The same held true in the general election, during which the vast majority of contributions from industry executives flowed to Clinton.

Despite that slight, Trump made the promotion of policies that support a healthy oil and gas industry a centerpiece of his campaign strategy from beginning to end. During his speeches, the primary and general election debates, and the hundreds of rallies he conducted before crowds of thousands of supporters, candidate Trump talked about issues all too familiar to those in and around the nation’s oil patches: the Keystone XL and Dakota Access pipelines, EPA’s Waters of the United States regulatory scheme, the Clean Power Plan and the Bureau of Land Management’s (BLM) hydraulic fracturing rule.

At a September 2016 rally in Pittsburgh, Trump made a speech that was very typical to what he said throughout his campaign: “I am going to lift the restrictions on American energy and allow this wealth to pour into our communities — including right here in Pennsylvania. The shale energy revolution will unleash massive wealth for American workers and families.”

It was an extraordinary thing. No candidate in modern times from any political party had worked so hard to make energy in general, and the oil and gas industry specifically, such a major part of his or her campaign’s messaging. When seeking support from the oil and gas industry and many others, though, Trump turned off many people with his rhetoric and antics on other matters. His unpredictability made millions of Americans simply uncomfortable with the idea of having this person occupying the highest office in the land. This factor remains true a full year after his election.

 

Read The Full Piece at Shalemag.com

STEER: A New Kind of Trade Association

A Sleeping Giant Beneath The Chalk

Nestled in a quiet area of suburban Dallas, just off the intersection of Texas State Highway 12 and Interstate 30, lies the neighborhood of Eagle Ford. At one time an incorporated city, Eagle Ford was annexed in the mid-1950s by the city of Dallas, whose city center skyscrapers can be seen just 6 miles away.

Originally settled by the family of Enoch Horton in 1844, the community soon became known as an important crossing of the West Fork of the Trinity River. The Horton family established a grist mill; and within a few years they donated land to establish the town’s first cemetery and for the right of way and depot for the Texas and Pacific Railway. As was the case for hundreds of communities in Texas’ early decades, the establishment of a rail depot led quickly to rapid population growth. By the 1870s, Eagle Ford had become a key shipping point for the cattle industry, and its population had grown to several thousand.

The death of the trail drives led to the collapse of the cattle business, and by the 1890s, Eagle Ford’s population hovered around 50 citizens, where it remained well into the mid-20th century. Memory of the community’s heyday was largely lost to history, where it remained until late 2008.

Not far from the location of the original Horton grist mill, a small cliff face reveals an out-cropping of the Austin Chalk formation, which had become famous during the 1970s and again in the 1990s for the production of prodigious amounts of crude oil. Indeed, the Chalk is experiencing a bit of a third revival today.

Immediately beneath the Chalk outcropping, another formation displays what seems to be a rocky, clay-like profile. This formation is actually a shale formation, one that happens to be the source rock for the Austin Chalk. It was the oil migrating up from the Eagle Ford that made the Chalk such a prodigious formation to begin with.

Like the Austin Chalk, the Eagle Ford Shale extends deep into South Texas and even under the Rio Grande into northern Mexico. Unlike the Chalk, however, this formation had received scant attention until October 2008, when Petrohawk (now a part of BHP Billiton) drilled what is credited as the first commercial horizontal well completed in the formation in La Salle County. The well, completed with a 3,200-foot horizontal lateral involving a 10-stage frac job, produced at an initial flow rate of about 7,600 MMBTU of natural gas per day, and the race was on.

 

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In The Oil Patch Radio Show, Episode 114 – RRC Chairman Christi Craddick

Here’s our latest show featuring Christi Craddick of the Texas Railroad Commission! We also have the Associate editor of SHALE Oil & Gas Business Magazine, David Blackmon on the show to update us on where the price of oil is heading. Enjoy!

Listen to the Podcast Here:
Originally aired on 06/17/2017 – 06/18/2017 Episode 114 of “In The Oil Patch” This week on “In The Oil Patch”: host Kym Bolado and her cohost Alvin Bailey welcome Chairman Christi Craddick to the show.
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Jeff Miller: Interesting Times at Halliburton

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“May you live in interesting times,” goes the old Chinese curse. It’s a curse that we all would like to avoid in our lives, since history tells us the most interesting times we experience tend to be ones of conflict and chaos of one form or another.

Jeff Miller, the President and Chief Environment, Health and Safety Officer for Halliburton, knows better than most what it means to live through such times. Having spent the last two decades serving in a variety of leadership roles for one of the world’s largest oilfield service firms, he has experienced all manner of interesting times in an array of locations across the globe.

jeff-miller-3For Miller, who spent his younger years as a PRCA calf roper, this is not his first rodeo. But the last two years, as the price of crude oil has crashed on the world market, have been especially interesting for him, and for Halliburton.

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Karen Harbert: When Preparation Meets Opportunity

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“There are many, many times when we sit around a table and I’m the only one in heels. And it doesn’t go unnoticed. So I always wanted to be very confident of the facts and prepared in what I was going to say, because you don’t want to be dismissed. That’s true in any meeting, in any setting; however, it was very true in my earlier years. I think that once you prove your muster, you are given equal time and equal confidence. But it is true: You do have to prove it; you do have to earn it, not unlike in anything else.”

So says Karen Harbert, President and CEO of the Institute for 21st Century Energy at the U.S. Chamber of Commerce. She’s discussing some of the challenges of being a woman in what has been a mostly male-dominated world of energy, a world that she has played a significant role in shaping throughout an accomplished career that began with an assignment at the Republican National Committee (RNC) upon her graduation from Rice University in 1988.

“And I think things are beginning to change in the energy industry: We certainly see more women in the C-suite,” says Harbert. “On the other hand, I don’t think we see enough women on boards. That’s probably across all business areas, but particularly in the energy industry, and I hope that does continue to change over time. But it is less about bringing people in from the rigs and up the headquarters ladder; the industry becomes more open to women as it evolves into more of a high-tech industry. So, it’s changing, and for me it meant doubling down and making sure I was well-prepared. But also, it’s about kicking the tires a little bit and letting them know us women can do this too.”

 

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Lessons Learned Through Two Oil Busts

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“How does this bust differ from the bust in the ’80s?”

I get asked that question quite often, partly because I’m growing old and it shows on my face, and partly because I’ve been in the oil and gas industry since 1979, and people assume — rightly or wrongly — that I know some stuff because of that. I did live through that bust in the ’80s, and it wasn’t fun. I got laid off from a job in 1985 and was out of work for a few months — the only time I’ve been unemployed since I was 16 years old — and that caused me and my wife great financial hardship.

So I do remember those days all too well. To understand why that bust happened, you first have to go back to the oil shocks of the 1970s, when the Saudis and other OPEC nations implemented oil embargoes, first in 1973 and then again in 1979.

Two memories from that period of time stick with me to this day. The first is of filling my mother’s 1972 Pontiac Grand Ville up with gasoline on the day in 1974 when the price of gas at the local Circle K in Beeville, Texas, reached the then unheard of sum of 50 cents per gallon. That was the first time I had ever had to come up with 10 bucks (the aircraft carrier-size Grand Ville had a 26-gallon tank) to fill up a car with gas. I knew I was going to have to start working overtime or get another job if I was going to keep putting gas in that car. The second memory is of sitting at a long-disappeared Texaco station at the corner of Richmond Avenue and Buffalo Speedway in Houston during the summer of 1979, having to wait in a very long line of cars on an odd-numbered day to pay over $1 per gallon for my allotment of gas to fill up my Chevy Caprice. Another 26-gallon tank that was even more costly to fill.

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Culture of Innovation: Doug Suttles with Encana

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The history of the oil and natural gas industry in North America is in many ways intertwined with the history of the railroad, which in the mid-19th century became the main means of transcontinental transportation for Americans and Canadians.

As these great railroad systems were constructed across the continent, the companies building them gained ownership of great swaths of land, and, as importantly, obtained ownership of the minerals beneath the land. In the United States, as oil and natural gas began to be discovered across the Midwest and Rocky Mountain states, a good deal of it lay beneath land owned by rail companies like Burlington Northern, Union Pacific and Santa Fe.

These companies all eventually created subsidiaries to manage their oil and gas royalty holdings, and those subsidiaries eventually evolved into some of the country’s largest independent producers: Burlington Resources, Union Pacific Resources and Santa Fe Energy. Those companies are all gone today, having been merged with or acquired by ConocoPhillips, Anadarko Petroleum and Devon Energy, respectively, but their place in history is firmly established.

 

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