CONOCOPHILLIPS

Second Quarter 2012

Safe and Responsible The new independent ConocoPhillips continues its commitment to HSE Celebrate! Employees around the world mark Day One in unique ways IT Jam Information Technology ushers in a new era of collaboration

It’s Our Time! On May 1, 2012, ConocoPhillips became an independent exploration and production (E&P) company, solely focused on its core business of finding and producing oil and gas globally. Our vision is to be the E&P company of choice by pioneering a new standard of excellence. At spirit Magazine, we’re celebrating five years of bringing stories about ConocoPhillips and its people to you. We are proud of our new company, and spirit Magazine will continue its role of keeping you informed. The spirit of our success lives on. Sharing Insights

This is the first issue of spirit Magazine since ConocoPhillips’ repositioning into an independent exploration and production company, and it marks the beginning of a new era for us. As I said often during the repositioning process, when it comes to key values-driven aspects of our business, we are changing very little. On Day One and every day thereafter, our commitment to operate in a safe and responsible manner remains steadfast. Safety and responsibility, two core SPIRIT values, rightfully take their place as the subject of this issue’s cover story (Page 12). The article describes the critical role of our new Health, Safety and Environment Ryan Lance Chairman and CEO (HSE) organization under the leadership of E&P Executive Vice President Matt Fox and HSE Vice President Mike Ferrow. As Matt so aptly states, ConocoPhillips’ size, scope and geographic scale, combined with its long history of a strong safety culture, positions us to lead the pack in protecting­ people and the environment. This article represents the beginning of a sustained campaign to build on our safety culture. We’ll do that by supple- menting personal safety with an increased technical focus on process safety to eliminate hydrocarbon releases. Feature articles on our Technology Ventures Group (Page 22) and Information Technology Department (Page 28) reflect some of the exciting ways we are reinvigorating our culture through innovation and col- laboration. Both organizations reside within Executive Vice President Al Hirshberg’s Technology and Projects Business Unit. The former is a unique team of tal- ented individuals working together to provide startup companies with direct investment and business devel- Construction is underway at the Gaines LLC facility opment expertise to incubate quality business ideas. in West Texas. This is the first time a hydrocarbon Information Technology has taken immediate strides cavern has been repurposed for storing air, marking an toward ‘quick wins’ under the leadership of Chief exciting advance in the work of Technology Ventures. Information Officer Mike Pfister, not the least of which began prior to Day One with the 48-hour IT Jam described in this article. Based on a collabora- tive, social-media approach that has been the hallmark of our Knowledge Sharing group, the Jam engaged some 1,200 IT employees worldwide and resulted in more than 1,400 actionable com- ments. Clearly, good things are coming from both of these excellent organizations. Having fun together and giving recognition to people are also a big part of our DNA; you’ll find plenty of evidence in the photo spread showing our worldwide Day One celebrations (Page 4) and the Faces of ConocoPhillips profile of Shauna Noonan (Page 34). In the months ahead, communication will play a key role in the realization of our vision to pioneer a new standard of excellence. My leadership team is fully committed to our role and will be very active in the process. spirit Magazine is just one of the many effective communication tools at our disposal. I encourage you to read it thoroughly, share it widely and know that the best is yet to come.

spirit Magazine 1 spirit Magazine Second Quarter 2012 Contents

ConocoPhillips in Photos IT Jam | Vinnika Johnson 6 Day One celebrations 30 Online collaboration helps build a new strategy Safe and responsible | Courtney Timm 12 A continued commitment to health, safety Faces of ConocoPhillips and environmental excellence 34 Shauna Noonan: Technology expert, industry leader and supermom At the energy crossroads | Patrick Currey 22 and Jan Hester In the News Technology Ventures scouts 36 A compilation of recent news from uncharted terrain around ConocoPhillips’ world

Chairman and CEO Ryan Lance and members of the executive leadership team unveil the It’s Our Time banner during Day One cer- emonies in Houston.

On the Cover | photography by Patrick Currey San Juan Business Unit Multi-Skill Operator Chris Huff stands tall in the proper personal protective equipment (PPE) at a pumping station in Farmington, N.M. To the eStream OnDemand featured videos Since May 1, 2012, ConocoPhillips’ Intranet Our readers respond Channel eStream OnDemand has featured the Editor following videos:

Meet your leadership team Chairman and CEO Ryan Lance introduces his executive Hello. I want to compliment the staff of your fine leadership team (ELT) and welcomes employees to the magazine. Beautiful photography and people. And independent ConocoPhillips. you covered everything an ex-employee would like It’s Time to see. I was fortunate to work in India, Belgium Highlighting the launch of the independent ConocoPhillips, and the North Sea (Teesside) in addition to Borger this brief video delivers key messages while featuring global employees and operations. and the Idaho Atomic Energy Division during my time with Phillips. Management was good to me, and they It’s What We Do: gave me a job and let me do it. That is a good memory. Offshore Installation Manager Ian Belt The “It’s What We Do” video series profiles Upstream U.K. Regards, Offshore Installation Manager Ian Belt, who delivers a concise Richard Kuehl overview of his role, emphasizing the goals of maximizing production while maintaining the highest possible health, safety and environmental standards. When I retired in October 1985 as manager of the Phillips Reprographic Branch, we were always proud of Speaking of Natural Gas: Drilling & Completions This video features clips from a drilling and completions the photography and printing quality of the Phil News. presentation by Global Completions Chief Keith Lynch and You have not only continued but have expanded that Development Manager Jeff Spencer. quality with spirit! I’m Glad to Be Here F.O. King An original music video celebrates the safe and successful operations of the San Juan Business Unit. Focusing on the spirit of the employees and their commitment to Having just read about the 2012 SPIRIT Awards in community. It delivers its message through original lyrics by the “In the News” section of the latest spirit Magazine ConocoPhillips Lead Videographer Jim Spanos. and the catchy phrase, “Looking Back. Moving For- Doing business in ... the North Sea ward,” I was reminded that this month marks the 100th The first video in a new series provides a sample of daily year since the unsinkable Titanic sunk. Remind the new operations in the Tananger, Norway Onshore Operations CEO to watch out for “bergs.” Center, Construction at the Vaernes Fabrication yard, the VATS offshore platform decommissioning and recycling Duane Tower center,the Teesside Oil Terminal, the Aberdeen office, and the LCR Retiree Judy and Britannia offshore platforms.

ConocoPhillips employees can watch, rate and comment on these videos as well as past video features at myestream.conocophillips.net. Many company videos also Editor’s note: We welcome your comments, sugges- are available on ConocoPhillips YouTube Channel. tions and contributions. Send them in or call us using the contact information below. Be sure to include suggestions for follow-up articles.

Address mail to spirit Magazine, ConocoPhillips, MA3132, P.O. Box 2197, Houston, TX 77252-2197; send email to the editor at [email protected]; or call 281-293-6169.

A nighttime view of the Judy Platform in the U.K. North Sea, which has been featured in two new eStream OnDemand videos. ConocoPhillips

in Photos Day One around the world

ay 1, 2012, widely referred to as Day MOne, signified a major milestone in ConocoPhillips’ history. The theme “It’s Time” represented the launch of an exciting, new begin­ ning as an independent exploration and produc­ tion (E&P) company. Houston | Below: Around the world the momentous occasion More than 2,300 was marked with rallies, music and plenty of employees celebrate together in a joint rally food. Colleagues gathered together to watch the with Phillips 66 on the launch of two new videos, “Meet your Leader­ west side lawn. ship Team” and “It’s Time”. They also received Right: The Seven Lakes a special email message from new Chairman and High School marching CEO Ryan Lance. In his letter, Ryan said that his excellence globally.” band and award-winning drum line help start new leadership team shared a vision of Conoco­ On May 1, Ryan and several members of the the show. Phillips “pioneering a new standard of E&P leadership team were on hand at the company’s

4 ConocoPhillips Chairman and CEO Ryan Lance addresses the crowd at the Day One rally accompanied by (from left) Executive Vice Presidents Don Wallette, Commercial, Business Development & Planning, Al Hirshberg, Technology & Projects and Matt Fox, Exploration & Production.

Houston headquarters to introduce themselves to employees and share their thoughts on the future. They all agreed that the company will rise to a new level with the combination of ConocoPhillips’­ legacy strengths and its new culture as an independent. Regardless of the location or the time zone, more than 16,000 ConocoPhillips employees recognized the Day One landmark. In the pages that follow, we take a tour around the world to see how our colleagues celebrated the past and welcomed a new day for Conoco­Phillips.

Alaska | Above: Amy Burnett, Renee McCormick and Gina Luckey celebrate with mock margaritas and listen to ConocoPhillips Alaska President Trond‑Erik Johansen speak about “It’s Time.” Left: In Anchorage, employees celebrate with a barbecue buffet luncheon at the Dena’ina Convention Center.

spirit Magazine 5 ConocoPhillips in Photos

Canada

Edson | Right: Angela Bartel (left) and Logan Meropoulis celebrate with colleagues during a luncheon held on Day One. Employees from the Niton and Mahaska plants held their event on May 2 to accommodate a turnaround.

Surmont | Below: Staff participate in trivia games, join in a steak lunch and listen to leaders speak about the excitement of the next journey with ConocoPhillips.

6 ConocoPhillips ConocoPhillips in Photos

Calgary | More than 1,200 employees attend a breakfast served by senior leaders.

Below: Smitha Thyagaraj and Angela Stephan join colleagues at the popular venue, Flames Central. An outside marquee marked the special day.

Elmworth | Above: A team lunch marks Day One celebrations at Canada's Elmworth Deep Basin Field and Gas Gathering Facilities.

spirit Magazine 7 ConocoPhillips in Photos

Norway | Right: Norway colleagues cut the “It’s Time” cake and celebrate the key milestone.

Aberdeen | Above and right: Aberdeen employees celebrate Day One – “It’s Time” for afternoon tea. Below: Members of the U.K. leadership team cut the cakes for afternoon tea. Left to right: Richard Tocher, Bill Boyington, John Warrender, Phil Rorison, ConocoPhillips U.K. President David Chenier, Chris Wilson, ConocoPhillips Europe President Steinar Vaage, Allison Thomson, Robert Anderson and Chris Stevenson.

8 ConocoPhillips ConocoPhillips in Photos

Moscow | Above: Employees in the company's Moscow office commemorate the occasion with a group photo.

Indonesia | Right: A surprise flash mob helps recognize a new day in ConocoPhillips. Below: The Indonesia team gathers for a group photo during their Day One celebration. Below right: Special “It’s Time” cupcakes were distributed in custom designed packaging and given to employees to help celebrate the event.

spirit Magazine 9 ConocoPhillips in Photos

Caspian | Above: Caspian team members display their “It’s Time” mugs.

Qatar | Above: The Qatar Finance team makes a group collage reflecting the SPIRIT values. Right: Departing ConocoPhillips Qatar President Erec Isaacson and new President Gary Sykes celebrate Day One.

10 ConocoPhillips ConocoPhillips in Photos

Australia | Left: Jeffrey Masengi, Dan Kruse, Audra Mulcahy, Steven Wright and Stuart Nunn. Below: ConocoPhillips Australia-West President Todd Creeger cuts the Day One cake.

spirit Magazine 11 HSE

Safe and Responsible A continued commitment to health, safety and environmental excellence

by Courtney Timm

onocoPhillips’ commitment to safety and the environment has always been a defining characteristic. With a renewed pledge to Cfurther strengthen its safety culture and protect its people, assets and the environment, Conoco­Phillips is setting high expectations.

San Juan Business Unit Multi-Skill Operator Chris Huff checks pumping stations in Farmington, N.M.

12 ConocoPhillips spirit Magazine 13 HSE

“As we take shape as one of the world’s largest these commitments are carried out. HSE Vice independent exploration and production compa- President Mike Ferrow will be visiting the opera- nies, we have a unique opportunity to shine when tions and engaging with people over the next few it comes to health, safety and environmental months about how everyone can stay safe on both performance,” said Matt Fox, executive vice presi- an individual and technical level, and focus on dent, Exploration and Production. “Considering environmental excellence. our size, scope and geographic scale, combined “One of our most important challenges will be to with our long history of a strong safety culture, I continue improving safety and environmental per- believe Conoco­Phillips will lead the pack in pro- formance, while keeping major accident prevention tecting people and the environment. This culture foremost in everyone’s minds,” Ferrow said. of safety is true not just in the field, but in our The focus of the HSE organization will be offices and even our homes.” assurance and support of operations to deliver Fox went on to say that continuing to build world-class health, occupational safety, process on that culture is critical. Conoco­Phillips’ opera- safety and environmental performance. The tions can avoid dangerous incidents and protect group will work closely with all regions and tech- its people, communities and the environment by nical functions to continue integration of efforts Above: Health, Safety and Environment supplementing personal safety with an increased toward that goal. Vice President Mike technical focus on process safety and the elimina- The organization will consist of four groups, Ferrow tion of hydrocarbon releases. each with a distinct focus area. The HSE Gov-

Top: Lower 48 new ernance & Performance group, led by Manager hires begin their A new HSE organization Dale Summerlin, will conduct HSE activities in tour in Eagle Ford A brand new Health, Safety and Environment support of the corporation and the HSE func- with a field safety (HSE) organization has been created to ensure tion. This group will include HSE auditing, risk orientation.

Right: The San Juan Gas Plant, a natural gas process- ing facility jointly owned and operated by ConocoPhillips and BP, recorded a perfect safety record from its fabrication in August 1985 to February 2012. The plant employs a staff of 28 and extracts hydrocarbon liquids from approximately 550 million standard cubic feet of natural gas daily.

14 ConocoPhillips HSE

management and remediation, industrial hygiene and toxicology, HSE functional excellence, and performance assurance (reporting and analyses of HSE leading and lagging indicators). Crisis Management & Emergency Response (CM&ER) Manager Josh Soybel will head up the company’s crisis management and emergency coordinate and advocate corporate positions rela- Above: San Juan Gas response efforts. He also will oversee the coor- tive to new environmental regulations. Providing Plant Systems Super- visor Dustin Fahle dination of two marine well response entities in environmental technology support will be a new gives a thumbs up which Conoco­Phillips has taken a foundational area of emphasis. from one of the plant’s role. (See sidebar on page 20 for more on the “Our organization is here to work in coopera- towers. CM&ER group.) tion with the businesses to help them achieve HSE Above left: HSE The Health & Safety Assurance group, led by excellence,” Zotzky said. “As in the past, we will Governance & Performance Manager Manager Laurie Zotzky, will provide expertise in continue to manage policies and standards to drive Dale Summerlin occupational safety, process safety, occupational excellence and meet management expectations. health, and management systems to support the We will continue facilitating functional excellence. businesses and ensure excellence in health and The new component is assurance. We will increase safety performance. engagement with the business units to assure that The Environmental Assurance Group, managed execution involves risk-appropriate precautions, by Jennifer Bar­ringer, will provide expertise in and we will work with businesses to close gaps to environmental matters including water, climate achieve that.” change, permitting, biodi­ versity, waste manage- To be successful long term, HSE leadership ment, due diligence, as well as risk and impact recognizes that the company must integrate health, assessments to support established businesses safety, environment and stakeholder engagement and emerging growth areas. This group also will throughout the entire life cycle of a project or asset.

spirit Magazine 15 HSE

Above: Health “From conducting early due diligence during improve integration of A&OI requirements in & Safety Assur- opportunity development to asset decommis- the HSE Management System Standard and the ance Manager Laurie Zotzky sioning or divestment and beyond, HSE and Well Integrity and A&OI Recommended Practices. sustainability considerations must be interwoven The intent is to provide the business units clear throughout all activities to eliminate or minimize and consistent standards and guidance to facili- our exposures,” Barringer said. “These topics tate implementation at the workplace. Another should be addressed early, often, and over and example is including HSE in Operations Excel- over again in everything that we do.” lence Assessments. Employees will hear more in the coming “Through this integration, our goal is to ensure months about how teams are working to fully that every worker is properly trained and has easy integrate all aspects of the way Conoco­Phillips access to simple, understandable procedures that operates. As an example, Upstream HSE and the help in performing the task at hand safely, each Asset & Operating Integrity (A&OI) Functional and every time,” Zotzky said. “We must improve Excellence Team have been collaborating to risk understanding and management, and set

ConocoPhillips­ wins UK’s Innovation in Safety award ike Ferrow, vice president, Health, Safety HSE, Mike proudly accepted the U.K. Oil and Attendees at the award ceremony were Mand Environment, has witnessed first- Gas Industry’s Award for Innovation in Safety on impressed with the fact that there were no hand how HSE management has changed behalf of Conoco­Phillips. recordable injuries within the business unit’s at Conoco­Phillips since he began with the “It was a great honor to accept this pres- operations in 2011. When the audience was told company in London in 1980. Back then, there tigious award. We knew Conoco­Phillips was of the achievement of 6.5 million work hours were no desktop computers, and communica- one of the finalists, but when our name was without a recordable injury and zero HSE report- tion involved talking and sharing hand-written read out as a winner, it was a very special able hydrocarbon releases, there was an audible or manually typed reports. “We were less feeling. Everyone within the U.K. upstream murmur from attendees. What played a part systematic in those days, and work was more business unit – offshore, onshore, staff or in receiving the award was the business unit’s individual and less team-based. Over the years, contractor - should justifiably feel that this is as emphasis on process safety and integrity and safety has improved as better training, equip- much an award for them, as individuals, as it the development of an operating management ment and systems have been introduced. In is for the company. They have all played a criti- system – including the assurance board process 1990 the accident rate in Aberdeen was nearly cal part in achieving it.” and better ways to assess interrelated risks. two lost work-day injuries per 200,000 work hours, and last year it was zero recordable injuries in U.K. Upstream, let alone zero lost workdays,” he said. In his former role as general manager, Engineering and Technical Assurance, U.K.

Right: Ferrow accepts the U.K. Innovation in Safety Award on behalf of the employees and contractors of the business unit. Far right: A worker con- trols boat movements at the Viking com- plex in the U.K.’s Southern North Sea.

16 ConocoPhillips HSE

clear expectations. We all have the responsibility work activity ahead during the summer months, San Juan Gas Plant to stop unsafe behaviors when we see them. All workers are being coached to assess risks care- Supervisor John Cabot rigs up proper levels of the organization, including contractors, fully as they perform their jobs. Large segments fall protection for must share in this commitment.” of the operating organization have proven that Dustin Fahle. Fewer employees and contractors were injured working at zero injuries is possible. Some parts of on ConocoPhillips­ jobs from January through the business, however, are still challenged when April 2012, compared to the same period last it comes to contractor safety, especially in areas year. Still, with rising temperatures and increased with increased activity and high-risk operations.

Vice President, HSE Mike Ferrow

Manager, HSE Manager, Crisis Manager, Health Manager, Governance & Management & & Safety Environmental Performance Emergency Response Assurance Assurance Dale Summerlin Josh Soybel Laurie Zotsky Jennifer Barringer

• HSE auditing • Crisis manage- • Management • Due diligence, • Performance ment planning and system develop- environmental risk, assurance training ment and support overall environmental • Emergency • Subject-matter and social impact • Risk management assessment and remediation response (IMAT expertise in governance, oil occupational safety, • Subject matter • Industrial hygiene spill support, drills, process safety and expertise in water, and toxicology assurance) project safety climate change, • HSE functional • Subsea Well • Incident biodiversity, waste excellence Response Project investigations, risk management and & Marine Well assessments and regulatory Containment hazard reviews • HSE and Sustainable • Joint industry Development projects and management of early associations phase projects spirit Magazine 17 HSE

The HSE organization acknowledges that this is improvement for many years, major accidents still one area to focus on for improvement. occur around the world in the industry. Individual “This is why I believe safety culture is so criti- assets and operators must learn from this overall cal,” Fox said. “If we all come to work every day body of major accidents and their precursors. and personally take responsibility for no one ConocoPhillips continues to incorporate valu- getting hurt, we will continue to improve on able lessons as a result of the June 2011 incidents personal safety.” at its Peng Lai 19-3 Field in China’s Bohai Bay. Quick response included the design, construction An emphasis on and placement of a containment device, deploy- major accident prevention ment of inflatable booms and well stabilization Fox is clear, however, when he talks about what procedures. The company worked closely with its keeps him up at night, and that’s why the com- co-venturer and local authorities to minimize the pany will continue to enhance process safety and environmental impact. Environmental Assurance Manager major accident prevention. Although some metrics The immediate technical causes for such Jennifer Barringer in the oil and natural gas industry have shown accidents are generally well understood, and

18 ConocoPhillips HSE

Top: Workers at Dar- win LNG contributed to an award-winning safety record. Conoco­ Phillips Australia won the Australian Petroleum Production & Explora- tion Association (APPEA) Safety Perfor­mance Award in May for the third consecutive year. Last year Conoco­Phillips became the first com- pany to win twice in a row, which makes a third win even more notable.

appropriate improvements can usually be imple- mented by everyone in the industry. A study of accidents over the last 100 years identifies common themes, particularly in the areas of proper assess- ment of risk, management of change, and the basic control of work. To control these aspects properly, reliably and sustainably requires a clear system of work control commensurate with the risks and consequences of all activities in a business. With this in mind, Conoco­Phillips’ U.K. Busi- ness Unit recently carried out a thorough review and overhaul of various management systems to fully comply with corporate standards and U.K. legislation. Following the review, the business cre- ated an integrated Operating Management System (OMS) that communicates the “way we do things” and incorporates all necessary processes and con- trols to deliver a safe, high-performing operation. Above: Seismic HSE Based on this model and work done in several Consultant Rob other business units, HSE has a 2012 goal to work Kenny traveled to Peru to provide HSE with Operations Excellence to explore the devel- expertise for explora- opment of an Operating Management System tion operations. Standard for ConocoPhillips. Wider application Left: San Juan Gas of an integrated model would clarify and simplify Plant Supervisor existing company standards, recommended prac- John Cabot tices and guidance. One important area for development in major accident prevention strategy is human factors – the interaction of individuals with each other, with facilities and equipment, and with manage- ment systems. This interaction can influence behavior at work in a way that affects all parts of the business, but the scale and range of it makes

spirit Magazine 19 HSE

practical implementation a challenge. Human be attributed to human factors, so the benefits for factors, or human error, have been identified as a us in focusing on this area were clear – fewer inci- major contributor to the recent Macondo explo- dents, fewer near misses and a reduced potential sion, fire and spill in the Gulf of Mexico and the for human error and its consequences,” Ferrow Montara well blowout in the Timor Sea. said. “In seeking to prevent major accidents, we “A recent research study in the U.K. showed that aim to control well-understood physical principles 65 percent of incidents over the last four years can that allow for the complications and practicalities

Crisis Management and Emergency Response revention of major incidents through Assist Teams, revised crisis management Macondo incident. Under a new structure, Pgood project planning, design, imple- plans, and ensured that agreements with Conoco­Phillips’ interests in the Subsea mentation and leadership is the primary response companies, industry associations Well Response Project (SWRP) and Marine objective for Conoco­Phillips’ operations. and other resources would be in place for Well Containment (MWC) will be part of the If a major incident occurs, however, plans the new company. CM&ER group. With the involvement of and processes are in place to ensure that While some optimizations were pursued 20 secondees representing Conoco­Phillips the company can respond effectively – with and yielded significant benefits, the team in these external organizations and many the first priority being to protect people. generally limited significant changes during more internal stakeholders from business The Crisis Management and Emergency repositioning considering other organiza- units and functions, the company is dem- Response (CM&ER) group ensured that tional transitions that businesses would be onstrating its commitment to safety and the the company’s response capabilities would absorbing. environment, while also helping to ensure remain intact through repositioning. The The team had a plan to review and the projects’ success. An added benefit of group created a transition team to backfill improve major CM&ER processes in a very Conoco­Phillips’ involvement includes the members of the Incident Management structured approach following Day One. experience employees are gaining with the One change that equipment and response programs that went into immediate these companies are building. effect will improve “We believe our involvement with the company’s SWRP and MWC go beyond just enabling crisis management a license to operate,” said Josh Soybel, and emergency manager, CM&ER. “Meeting and, in some response capabili- cases, going beyond compliance to ensure ties based upon the that we can respond to unplanned events learnings from the is just the right thing to do.”

Tore Ulleberg (left), managing counsel, Conoco­Phillips Nor- way, and Raphael Vermeir, president, Conoco­Phillips Nigeria, attend the Subsea Well Response Project (SWRP) Phase II signing. The Phase II approval authorizes SWRP to construct four globally deployable Subsea Well Capping Systems and Dispersant Toolboxes and establish service points in Asia, Europe, Africa and Latin America to provide global response capabilities for the industry.

3820 ConocoPhillips HSE

that prevail in the real world.” make it happen take leadership, commitment and Top: The IMAT ConocoPhillips­ already has many processes to substantial organizational effort. Transition Team: (from left) Fred LeJeune, prevent incidents caused by human factors, but “If we get this right, our reward for this invest- James Douglas, best practices are evolving, so the company must ment should be the all-important prize of Becky Silves, Andrew constantly challenge and improve its performance. incident-free operations,” Ferrow said. Davies, Marty Cramer, Charlene Winston, Phil “In our operating environment, major hazards “Quite simply, we believe we can achieve our Hetherington, Skip are present at all times,” Ferrow said. “So we must vision for HSE excellence thanks to a world-class Garrett, Wes Heinold, maintain a sense of vulnerability and do everything workforce that lives by our SPIRIT values and is Brett Lowe, Gino Zaza, Greg Duncan and Josh we can to control hazards that could cause harm.” truly committed to protecting our people, the Soybel. The final test of any effective management sys- environment and the communities in which we Left: Principal Con- tem comes when it is clear whether work is being operate. This combination, strengthened by an sultant Deena Clayton conducted exactly as designed and intended at all increased focus on process safety and major acci- participates in a polio times and in all parts of the business. It’s an easy dent prevention, will shape the ConocoPhillips­ of vaccine campaign in Luanda, Angola. concept to describe, but the enabling systems to tomorrow.” ■ Far left: MWC’s interim containment system subsea capping stack is about 30 feet tall, 14 feet wide and weighs 100 tons. It can operate in water depths of up to 10,000 feet.

spirit Magazine 21 Technology Ventures

The sun rises over the Gaines Com- pressed Air Energy Storage pilot project in West Texas.

n the Texas-New Mexico state “We affectionately call it ‘the black box’,” said Technology Ventures Engineering Coordina- line, the sun’s early golden rays tor Ryan Lisowski, about the Compressed Air Energy Storage (CAES) pilot project building Oglisten across a shimmering brine in Gaines County, Texas. “The secret sauce is inside,” he added, wryly. pond onto a non-descript, square Indeed, if the “secret sauce” works as planned it could be a game changer for the metal building. The structure future of wind-energy storage in West Texas and beyond. The CAES project was brought looks a bit out of place deep in into existence through Conoco­Phillips’ Tech- nology Ventures Group. The goal of the group the heart of the Permian Basin. is to seed and develop a range of external

22 ConocoPhillips At the energy crossroads Technology Ventures Group scouts uncharted terrain

text and photography by Patrick Currey

technologies to complement ConocoPhillips’ value to ConocoPhillips because we can use the own internal technology development efforts. investment to create a greater collabor­ ation with The in-house venture capital group provides the company,” Germain said. Essentially, the buy- direct investment and business development in gives Conoco­Phillips a front-row seat into the expertise to small startups with the intention of world of new energy technologies. incubating quality business ideas in the energy The group has an impressive dossier. Its mem- space. The unique team is led by Technology Ven- bers’ technical credentials include: construction tures Manager Rich Germain, part futurist, part management, and petroleum, chemical, electri- conductor, overall outside-the-box thinker and cal, mechanical and civil engineering. Most team pure pragmatist grounded by real-world market members are equally equipped with MBA’s from economics. “As we’ve moved forward in the past first-tier business schools: Rice University and year, we’ve realized that our investments in smaller the University of Chicago, to name a few. Dur- companies with innovative technologies can add ing the past year, they have analyzed more than

spirit Magazine 23 Technology Ventures

300 business plans and cherry-picked more than a fuel, which uses a mature technology, but dozen promising investment opportunities. The involves establishing a new market that could group doesn’t simply chase rainbows, but has a benefit ConocoPhillips given its strong position rigorous vetting process. in natural gas in North America. And the group “Our chief technology officer (CTO) feels very continues identifying promising E&P technology strongly that we, as an organization that spends a companies that need both capital and strategic lot of money on world-class R&D, simply cannot collaboration. “We’re not trying to be the first to invent everything we need,” said Germain. “That’s initiate the idea or the R&D, but our advantage the nature of R&D. You want exposure to a broad range of ideas. So we attempt to leverage our efforts by making some investments externally with other companies. It’s a balance we believe will bring high value to ConocoPhillips.” “Indeed, we don’t expect to invent everything in-house,” said ConocoPhillips CTO Ram Shenoy. “The range of scientific disciplines and technolo- gies that can have an impact on our operations is simply too broad for us to have an internal R&D activity to cover everything. Creative minds in other institutions – small companies, universities, Above: Chief national labs – are at this very moment imagin- Technology Officer ing new approaches to addressing the energy Ram Shenoy challenges we face. Technology Ventures is a Right: Under the leadership of mechanism to intelligently access such innova- Rich Germain, the tion, playing a significant role in turning their Technology Ventures imagination into reality, and helping us drive our Group has reviewed more than 300 innova- own profitable growth by delivering and deploy- comes by being the first in deployment. While tive business plans in ing such innovation into our operations.” competitors are scratch­ing their heads saying: the past year. ‘what is it?’; ‘how does it work?’; ‘what’s the risk?’, Searching for winning ideas we’re looking to be well down the risk curve and Technology Ventures doesn’t know who the starting to deploy the most promising technolo- winners are yet, but by investing in a number of gies,” Germain said. companies with promising innovations, they’re “Traditional venture capital is focused purely on hedging their bets. Some of the efforts funded to generating financial returns,” said Investments date have involved compressed air energy storage, Manager George Coyle. “They make a small bet. microbial enhanced conversion of coal to natural They make a return. But they can’t really benefit gas, and designer ceramic proppants developed from the commercialized technology. Technology for use in hydraulic fracturing to improve produc- Ventures has a different mindset. We invest capital tion in liquid-rich shale plays. The group is now for the same equity shares to get the same finan- exploring the development of projects that create cial returns, but our primary focus is delivering markets for LNG supply for use as transportation technology to our operations. We are aligned with

24 ConocoPhillips Technology Ventures

A small-scale LNG plant designed by Chart Energy & Chem- icals, Inc. is indicative of the type and scale of LNG plants that them. We are not doing this in isolation.” The team’s philosophy is straightforward: Technology Ventures seeks to develop for Conoco­Phillips buys small pieces of the com- make an investment and bring the technology the North American panies, providing capital to develop their tech- closer to successful deployment. Now it’s no transportation sector. nologies. The startups gain from Conoco­Phillips’ longer a third-party relationship. It’s a matter of considerable position in the energy industry, and proving it out together. its ability to provide and manage scale-up oppor- “A lot of people will ask: ‘what’s the end game?’; tunities for their technologies. In short, Conoco­ ‘what’s the long-term?’; ‘what does Conoco­Phillips Phillips can be a customer, an investor, and a get?’ This is a bit different than tradi­tional R&D, strategic partner. In exchange, the company gets which places a lot of emphasis on intellectual what amounts to a “first look” at new technolo- property (IP). We think the use and deployment gies. It also gains the opportunity to be an early of IP is where significant value can be created. customer or adopter. Ideally, Conoco­Phillips For example, technologies that might signifi- would own part of the company for a period of cantly increase our coalbed methane reserves or time, three to five years, then sell ownership and improve our ability for enhanced oil recovery can make a return on investment. The real return is add real value, whether or not we’ve invented it,” getting the company’s existing assets to perform Germain said. “Getting in early with a company better by adopting new technologies. “Small that becomes successful is an added bonus, where investments now can have big payoffs for us in the our equity investment can provide a nice return.” future,” Germain said. Whether it’s exclusive to Conoco­Phillips

Oxane Materials, Inc. is an energy-focused nanoproducts company

n late 2002, Chris Coker, president of original lab and hire a team of professionals you get it quicker.” IOxane Materials, Inc., and two profes- with specialized expertise. Coker credits Technology Ventures’ sors from Houston-based Rice University's “Since then we’ve been working to George Coyle for reinvigorating the relation- Richard E. Smalley Institute for Nanoscale develop, manufacture and directly market ship between Oxane and Conoco­Phillips. Science and Technology launched a venture advanced ceramic proppants,” Coker said. Conoco­Phillips led the current financing to commercialize Proppants are particles that, after liquids round and introduced Oxane leadership to the institution’s are injected under high pressure to create key individuals throughout the organiza- nanotechnol- microfissures in rock, are then injected to tion. “Also, we are honored and fortunate to ogy research. prevent the microfissures from closing. have George serving on our board.” Conoco­Phillips This enables production of gas. Oxane's Coker and his team at Oxane look provided early nano-scale ceramic balls weigh less and forward to providing Conoco­Phillips with seed capital to can reach farther into the earth than cur- products in drilling trends where their Oxane in late rent technology. “Our product enables the materials can contribute in a meaningful 2004 to help the gas to flow more deeply and uniformly. It’s way, such as Eagle Ford, the Permian and company build its highly conductive, so you get more, and the Duvernay.

spirit Magazine 25 Technology Ventures

Right: Technology doesn’t seem to be the burning issue. The impor- what has been around for 30 years, it needed to Ventures team mem­ tant question to answer is, can the team add value be scaled up and to show it could compete in bers and support per- sonnel participate at to the company soon or down the road, and make the market, which the existing technologies have a weekly staff meet­ it meaningful? ing including (this “The market is pretty good at page foreground) Senior Tax Counsel finding and incubating new tech- Dennis Diesen; nologies,” said Technology Ventures’ (opposite page Donald Vereide, director, project from left) Finance & development. “That’s what capital- Performance Analysis Analyst Kathleen ism is all about. There are a lot of Nguyen and Admin­ companies out there working on istrative Assistant all kinds of things. Venture capital Cathy Matulis. is another tool in the toolbox that Below: Project Development Director allows us to get a close-up look at Donald Vereide what they’re doing, evaluate their displays salt cores technologies and, hopefully, become from the same cavern early adopters of the good technology.” been unable to do. in West Texas that will soon store wind “Electricity is one of the last forms of energy power. Harnessing the wind that we have trouble storing. It has limited shelf General Compression was one of the first projects life,” said Technology Ventures’ Michael Bowring, that Technology Ventures thought merited tak- director, business and project development. ing from the lab into the field. Their technology Wind energy is only available when the wind is involves a first-of-its-kind compressed air energy there: it’s seasonal, and it also depends on the time storage capability. General Compression has of day. But demand for electrical energy is fairly successfully created a near-isothermal compres- consistent and predictable throughout the day. sor/expander system which is extremely efficient “Our generation has come to expect that elec- and only emits atmospheric air. They had built tricity will always be there. But if a light switch their test unit in a small warehouse in Boston. is flipped on and nothing happens, or if traffic But, because the technology is very different than signals suddenly go dark, all of us would face a real-world problem,” Bowring said. “Essentially, we’re proposing to take the renewable energy and store it, making it available on demand, depending on the needs of the load center.” When the wind is blowing but the grid doesn’t need it, the energy will be converted into com- pressed air and stored in large underground salt caverns. When the demand picks up, the process is reversed, and the compressed air will drive the same turbine to generate electricity. It begins to smooth out peaks and valleys to better align with actual consumption.

26 ConocoPhillips Technology Ventures

Above: Technology Ventures Business and Project Devel- opment Director Michael Bowring explains that the sweet spot for Salt formations in West Texas can be 300- to impermeable and that can be pressurized without wind throughout 400-feet thick running into Oklahoma and extend- leaking. The site had great infrastructure. It’s the the midcontinent is ing in varying degrees all the way to the Michigan first compressed air energy storage project per- well aligned for salt storage. peninsula. The good thing about the Texas/Okla- mitted in Texas and the first time a hydrocarbon homa salt formation is that it coincides with wind, cavern has been repurposed for storing air. It’s the making this storage project a natural fit. The only energy-storage facility of its kind in the world “sweet spot” for both wind power and energy stor- built in the last 30 years. And ConocoPhillips was age ranges throughout the midcontinent. responsible for making it happen. “The deployment of this technology will be Like Henry Ford building the Model A proto- market-focused,” Bowring said. “For example, type, the first one always tends to be the most the price of energy – electrical power energy – is expensive. The task is to springboard the pilot more expensive in densely populated urban project into a mass-producible product, and with centers (New York, Los Angeles, Houston), as the the support of its technology partner, General energy travels farther from its source. Generat- Compression, that’s just what the group is hoping ing facilities could be built closer, but the real- to achieve with the Gaines project. ConocoPhil- ity remains: who will allow a combined-cycled, lips has an ownership interest in the company, but gas-fired generator in downtown Houston? Texas ultimately hopes to create commercial investment is building high-voltage transmission lines as we opportunities with the technology. speak, attempting to harness its abundant West Texas wind, so the possibility of wind energy stor- Placing Conoco­Phillips age takes on real significance. at the crossroads “The market is demanding energy storage now, “The good news is that today’s technology chal- and we have in-house technology, especially the lenges bring entrepreneurs with creative ideas to subsurface technology.” Managing a high-pressure cavern 2,000-3,000 feet below the earth’s surface falls right into Conoco­Phillips’ wheelhouse. The company has geologists who understand gas and hydrocarbon liquids caverns, and they were able to leverage that in-house expertise. The team was able to locate a natural gas liquids cavern that had been put in service more than 30 years ago by Phillips Petroleum but currently was unused. They cleaned out the trace hydrocar- bons to repurpose the cavern for air. The same geology that works for hydrocarbons works well with air. You need surrounding salt or rock that is

spirit Magazine 27 Technology Ventures

Above: Technology the market’s surface,” Bowring said. “A year ago, Ventures Engineering our team had to search out emerging energy tech- Coordinator Ryan Liskowski notes nologies. But today, the word has spread, and the the pressure of the momentum continues to build. Many innovative underground salt ideas have come to us. We will continue striv- cavern. ing to place ConocoPhillips at the crossroads of Right: Invest- entrepreneurial innovation and new technology.” ments Manager George Coyle “Part of our mandate is to play the role of technology scout,” concluded Germain. “Scout­ ing new technology being developed by external companies feeds our pipeline. We also believe our scouting skills can add value to other groups in our company. The only way to do this is to look at a lot of business plans or to kiss a lot of frogs, as the saying goes. Of the hundreds we’ve reviewed, we’ve seen some very interesting new technolo- gies and significantly raised our profile. If there’s a company raising money and doing good things, chances are that we know a little about them or how to get access to them. A big part of our job involves culling out those that are not as promis- ing – we’d like to avoid the warts if we can! that means the quality of what we’re seeing is “The word is spreading about us being in the constantly improving. We’re on the frontier, and market for new ideas and investing in those we fully intend to put some of these great ideas ideas. People know that we mean business and to work for ConocoPhillips.” ■

State of the union: GE venture capital chief on Emerging Technology Ventures n Jan. 2011, GE, NRG and Conoco­ Skillern, managing director of venture the partners continue to collaborate in IPhillips entered into a joint venture called capital for GE Energy Financial Services. a meaningful way with the best technol- Energy Technology Ventures with the goal Two years into the project, Skillern ogy companies. “The energy business is of funding and says the team is working extremely well transitioning from the traditional model collaborating together. “We’ve made 15 investments so to investing in alternative and unconven- with high-quality far across a range of technologies – five tional energy sources. These emerging emerging energy oil and gas production technology com- enterprises need capital to grow opera- technology com- panies, five breakthrough solar technology tions and commercialize their technology, panies. “Together companies, a few communications and and they need the range of technical and we offer greater enterprise IT ventures and one industrial financial expertise we bring to the table. value than any of wastewater treatment company.” And we believe that the companies we us can individu- As for the future of Energy Technology collaborate with will design solutions we ally,” said Kevin Ventures, Skillern looks forward to seeing can use to help us grow our own assets.”

28 ConocoPhillips Technology Ventures Technology Ventures: The rest of the team

Jeff Vander Laan Zaid Talhouni Director, Business Development Advisor, Investments Education: bachelor of science in chemical engi- Education: bachelor of science in electrical engineer­ neering, Michigan State University. Experience: ing, George Washington University; master of busi- technology commercialization. Vander Laan is work- ness administration, Jones School at Rice University. ing to accelerate adoption of LNG as a transporta- Experience: technical engineering, commercial business tion fuel in the U.S. and evaluating the commercial development, downstream economics and financial viability of small-scale gas-to-liquids projects. “Tech- modeling. Talhouni handles venture capital analysis and nology Ventures will enable the company to efficiently deploy externally due diligence. “I enjoy being in a cutting-edge organization and look developed technologies to solve internal operational challenges.” forward to our investments pushing the company forward.”

Dan Fernald Chad Gardner Director, Advanced Technologies Director, Investments Education: bachelor of science in petroleum engi- Education: bachelor of science in construction man­ neering, New Mexico Institute of Mining and Technol- agement, Brigham Young University; master of business ogy, master of science in chemical engineering from administration, University of Notre Dame. Experience: New Mexico State University. Experience: solid fuel financial modeling, developing power projects, mergers gasification, clean fuels technology, polyethylene and and acquisitions, and raising private debt. His primary role K-resin. Fernald provides technology support for is making venture capital investments in companies with venture capital due diligence and is currently focusing on new fuel conver- technologies applicable to upstream oil and gas. “ConocoPhillips­ will have the sion technologies. “I look forward to maximizing value through IPOs and world’s best corporate venture capital group, measured on financial perfor- developing businesses that are sustainable and economically attractive.” mance and positive corporate impact via successful technology transfers.”

David Legg Rick Jefferys Director, Business Development Technology Director Education: bachelor of science in mechanical engi- Education: master of arts in engineering and a doctor- neering, Oklahoma State University. Experience: ate, Cambridge University. Experience: expertise in technical design, commercial sales, technology clean technology and a first-principles approach to business development and licensing. Legg supports engineering. Jefferys has worked with the group since its internal research and development projects and inception and splits his time between projects and invest- external partnerships. “The group will be integral ing, with a focus on the technology side of both. “We will to the success of our new company by discovering, developing and grow an impressive investment portfolio in both core business-related enabling new technology innovations." companies and game changers.”

Cyndi Tucker Lance Robinson Director, Business Development Director, Business Development Education: bachelor of science in economics and Education: bachelor of science in engineering, South master of business administration, Mississippi State Dakota School of Mines and Technology; master of busi- University. Experience: broad company experience, ness administration, University of Dallas. Experience: including upstream, downstream, commercial, spe- 30 years of work on low-carbon energy and environmen- cialty businesses and service organizations. Tucker tal projects for a range of organizations. Robinson leads provides technological solutions to operational prob- the development projects for small-scale LNG production lems. “We’ll work to develop and monetize technology in the areas of as an alternative heavy-duty transportation fuel. “I hope to see ConocoPhillips­ oil sands, wells and water opportunities.” lead the way to use of lower-carbon, domestically-produced fuels in the U.S.”

Brett Burris Don Halter Development Engineer Director, Business Development Education: bachelor of science in chemical engi- Education: bachelor of arts in economics, State Uni- neering, Georgia Institute of Technology. Burris is versity of New York; master of business administration, part of the Technology Ventures projects team, and Finance, Wharton School, University of Pennsylvania. is responsible for technical evaluation and engineer- Experience: More than 32 years of global energy ing support for a number of new technologies and industry experience with commercial and operating business opportunities, including biomass torrefac- background in crude oil, natural gas, refined products, tion and small-scale LNG. “I am excited about the opportunity to use biofuels, coal, LPG, heavy oil and management consulting. Executive direc- the company’s substantial technical resources to accelerate emerging tor-elect of the Next Generation Nuclear Plant Industry Alliance, an industry fuel supply technologies into sustainable, financially attractive commer- group investigating the use of nuclear process heat for the safe, carbon-free cial opportunities for ConocoPhillips.” extraction of oil sands resources and other industrial uses.

spirit Magazine 29 IT Jam

Within an hour of the jam’s official start, employ- ees had posted more than IT jams 100 responses on the online discussion forum in reply to questions created by the IT Leadership Team. Using the company’s knowledge- its way to sharing functionality from its Ask & Discuss discussion forum, employees read- Knowledge Sharing ily shared their thoughts Director Dan Ranta creating related to the organization and its future. The online collaborative session offered employees a 48-hour period to ask questions and a new exchange ideas and perspectives on five broad themes: IT leadership and communication, IT people development, responsiveness to the busi- ness, IT functional excellence, and technology strategy refresh and innovation. by Vinnika Johnson “I applaud the leadership team for initiating a culture of openness to share ideas and have our voices hether it’s Facebook or YouTube, social heard through the IT Jam 2012.” media is one of the key ways to connect – IT Jam participant people across geographical boundaries and provide a platform for sharing interests Why jam? “We knew with the repositioning approaching and input on a wide range of issues and this would be a golden opportunity to hear from employees and learn how our IT function can trending topics. Using a similar approach to become more responsive to our business needs,” W said Conoco­Phillips CIO Mike Pfister. “The jam engage its 1,200 employees globally, IT held allowed our staff to feel included in laying the foun- its first online “IT Jam” prior to the May 1 dation for a new strategy to guide the IT function.” launch of ConocoPhillips­ as an independent By the end of the first day, the online forum received about 900 responses. During the jam, exploration and production (E&P) company. moderators were assigned to monitor questions

30 ConocoPhillips point resources best employee build group may improve BU see teams quick understand knowledge something take requirements

tools solution done great innovation just project Management experience di erent provide training steps impact within new information working way Innovation communication also change well groups

sta Development users people solutions customers management job look

SAP key think leadership development local really team even using another applications go need one believe needs etc application design

projects technical and encourage discus- part model Responsive want help sions and participation thing focus become always Excellence areas service role

needed luncheon from employees to spur use around many lot overall environment more activity. company going

employees Leadership “The ease of collaborating organization business used Technology

good ideas nd issues Business technology virtually enabled us to tap into top better Refresh COP Functional the collective knowledge of our People might make data

strategy tool time years processes global IT staff,” said Knowledge Sharing ways services process support get able Director Dan Ranta. “We could have used Communication allow know like benet standards agree system level global another mechanism such as a survey or town hall, day order current

ensure area implement much but this method proved to be effective for receiving value work example important open and honest feedback in a very efficient global responsive manner. The response was far better than we ever diligently to analyze and summarize the data imagined!” to identify key trends. From rich discussions on leadership, branding and technology tools, to Moving forward thought-provoking questions on how to retain Below: The IT Jam By the time the jam session ended, more than and recruit top talent, the IT organization is well Analysis Team analyzes and discusses 1,400 responses had been received from around on its way to jamming to a new beat that taps into comments collected the world. Members of the IT team have worked the expertise and voice of its employees. ■ during the jam.

spirit Magazine 31 point resources best employee build group may improve BU see teams quick understand knowledge something take requirements tools solution done great innovation just project Management experience di erent provide training steps impact within new information working way Innovation communication also change well groups sta Development users people solutions customers management job look

SAP key think leadership development local really team even using another applications go need one believe needs etc application design

projects technical part model Responsive want help thing focus become always Excellence areas service role needed luncheon use around lot overall environment manycompany going

employees Leadership organization business used Technology good ideas nd issues Business technology top better Refresh COP Functional People might make data strategy tool time years processes ways services process support get able Communication allow know like benet standards agree system level global day order current Unlocking innovation:

ensure area implement much value work Chief Information Officer Mike Pfister example important responsive champions collaborative approach by Janice Leonard he IT Jam was developed to engage IT but with Conoco­Phillips’ new including older versions Temployees in creating different strategies focus, those strategies needed of SharePoint and to support ConocoPhillips­ as an independent to be modified by enabling new under-investment in exploration and production (E&P) company. technologies and services. In LiveLink. Everyone is Held three weeks before the repositioning, the particular, technologies that have eager to get started as a jam signals a more collaborative approach that become pervasive in the con- more nimble company, Chief Information Officer Mike Pfister and the sumer world hold much promise in business. and Pfister believes IT should be a leader in col- new management team plan to expand upon. With many of the company’s personal comput- laborative behaviors. Judging by the enthusiasm Pfister joined ConocoPhillips­ in February with ers operating on 11-year-old technology, the and participation in the IT Jam, there is no more than 25 years experience in the energy time is right for a significant overhaul. shortage of ideas for his team to act upon. industry. He came close to joining the company “We have an opportunity to rethink the way “But it takes more than technology to achieve on two previous occasions. The first was in we deliver information technologies,” Pfister said, success,” Pfister said. “It takes leadership and 2000 when Phillips Petroleum purchased ARCO “and a challenge to be more responsive in how commitment by the people involved and a Alaska, and the second was four years later. we fund and resource business opportunities.” company culture that recognizes and rewards This year, the third time was a charm when fam- Customers reported they want to hear “yes” collaboration.” ily commitments kept him in his native Texas. more often when asking for help. To say yes, IT What’s ahead for IT? One top priority is “I am so excited to join Conoco­Phillips at the will need to focus on establishing the fund- swiftly and efficiently completing transition work moment when our company is ready to unlock ing models that will allow the business units related to the spinoff. Another is establishing the innovation technology can enable,” he said. and functions to make those investments. In service delivery with the appropriate tools from Because much of IT was fully engaged in addition, IT personnel recommended adjusting the consumer model. systems separation, led by Phillips 66 CIO Kay the work distribution between the Bartlesville “I am excited about the opportunity to Sallee, Pfister used his first months on the job to center and the IT resources embedded in the redesign the way we deliver IT services and gather customer perspectives about IT’s service business units. To do that well, IT is committed encourage innovation by providing more choice delivery model. He did that by talking with the to reengineering the way these talented groups and flexibility,” Pfister said. “This is especially new ConocoPhillips­ leaders and meeting with work together. true now that ConocoPhillips­ is competing with business partners and managers in Alaska, Pfister’s visits and the feedback from the IT a different set of peers. With the company’s new Canada and several U.S. Lower 48 locations. Jam clarified how important using a collabora- management comes a change in management What he heard was that IT’s successful tive process will be in planning future strategies. styles. It is just the beginning, and already IT has strategies to leverage resources had worked, There are gaps that need to be addressed, 1,400 ways to make it better.”

Post IT Jam analysis reveals new opportunities he first online IT Jam demonstrated high repeatedly during the 48-hour online discus- workplace environment. readership statistics and active participation sion. For example, one of the recurring topics T High-impact opportunities from employees globally, but then a bigger task from employees focused on key steps to awaited. It was time to sort through the more improve IT’s responsiveness to the business. “Recommendations create high-impact oppor- than 1,400 comments received to determine “An emerging theme in the new Conoco­ tunities for the organization based on time, the next steps for implementing changes. Phillips is collaboration,” one IT Jam partici- complexity and do-ability,” said team member An IT Jam Analysis Team, representing the pant shared. “This [the IT Jam] is an excellent Dan Ranta. “The analysis process allowed us various IT groups, worked swiftly and cohe- example of how we as an IT organization can to take a deep dive into the data to share how sively to analyze the extensive comments, with begin to think differently in how we operate and these recommendations can be implemented the outcome of providing actionable recom- collaborate more globally as a function.” across IT globally.” mendations to the IT Leadership Team. The The Jam Analysis Team narrowed the More than 100 recommendations were entire process – from analysis to recommenda- responses down to five broad themes: proposed to the IT Leadership Team as a result tions – was completed within a week. • IT leadership and communication of the jam analysis. These actionable initiatives point “With the quality work completed by the • Responsive to the business provide key input for IT’s 1,000-day transforma- resources best analysis team, we were able to see a roadmap • Technology refresh and innovation tion roadmap. In addition, the analysis team employee identified quick wins, or short-term goals, that build group may improve BU of achievable goals emerging for now and well • IT people development see teams quick into the future,” said Conoco­Phillips CIO Mike • IT functional excellence are expected to begin yielding positive results in understand knowledge something take requirements Pfister. “These goals support the overall devel- The team then determined key issues within less than three months.

solution done great Ready, set and go! IT is ready to embark tools opment of the IT strategy, and it is possible those strategic focus areas, built hypotheses innovation just project Management because of the ideas from our IT workforce.” and identified recommendations for each. on a path of transformation to become a experience di erent provide training Key action items included creating more responsible and resourceful function, delivering steps impact The analysis process con­sistent and global business results. Already new information working way IT integration with each company business, within Innovation communication also One of the first tasks for the analysis team was removing roadblocks to project execution, achieving a few quick wins, even greater suc- change to consolidate similar issues that appeared and creating a more collaborative, global cess is certainly on the horizon for IT. well groups

sta Development users people solutions customers management job look

SAP key think leadership development local really team even using another applications go need one believe needs 3832 ConocoPhillips etc application design

projects technical part model Responsive want help thing focus become always Excellence areas service role

needed luncheon use around lot overall environment manycompany going

employees Leadership organization business used Technology

good ideas nd issues Business technology top better Refresh COP Functional People might make data

strategy tool time years processes ways services process support get able Communication allow know like benet standards agree system level global day order current

ensure area implement much value work example important responsive solutions • Award-winning knowledge-sharing framework • Global networks focused on continuous business improvement • Ask & Discuss forums • Knowledge libraries • OneWiki transformational services • Collaborative jams • Visioning strategy sessions • Turning strategy into action

We’re now part of IT at the new ConocoPhillips with the same purpose: offering value-based, world-class knowledge-sharing solutions and services, companywide.

Visit eStream and select “Knowledge Sharing” under “Networks”. Faces of ConocoPhillips

34 ConocoPhillips Shauna Noonan

Technology expert, industry leader and supermom by Jan Hester

Faces of ConocoPhillips

It’s Thursday afternoon, and executive vice president, Explo- to stay focused on a Shauna Noonan is anticipating a ration and Production. “It speaks given project, I can do weekend camping trip with her volumes for her expertise and anything.” Girl Scout troop. The weather reputation within the industry, Shauna’s family forecast looks dicey, but she and Conoco­Phillips will bask in dedicates much of its remains unruffled. This time, she the reflected glory!” leisure time to Irish notes, the lodgings include cab- As SPE’s technical director for dance. She and her ins and flushable toilets. “Tried production and operations, she husband have two the tent-and-latrine approach will work to ensure the disci- daughters, ages 10 and with the troop a few years ago, pline is well represented in SPE’s 12, who are champion- but the girls mutinied.” global activities. “This is a major ship-level dancers with Newly promoted to wells commitment for Conoco­Phillips, the non-profit McTeg- technology supervisor in the as well as for me,” said Shauna. gart Irish Dancers of Houston Drilling and Comple- “It’s an amazing opportunity South Texas organiza- tion Technology organization, at this stage of my career, and I tion. The girls have participated Above: Shauna and Shauna oozes enthusiasm from couldn’t do it without the com- in competitions and perfor- a colleague col- lect data on a lift every pore – for her work, her pany’s support for SPE.” mances throughout the U.S. and technology field family and her community. To help the charities she’s even Ireland. Shauna served as trial in Marengo, Shauna is known in the industry involved in, Shauna actively par- president of the group for several Saskatchewan. for her artificial lift expertise ticipates in the Conoco­Phillips years and remains a trustee. Opposite page: and came to Conoco­Phillips volunteer grant and contribu- With both parents traveling Recently named to the board of Society largely because of the company’s tion matching programs. “It for work, life is hectic in the of Petroleum Engi- commitment to developing and makes me proud to work for a Noonan household. “We try to neers, Shauna also expanding the technology. company that supports its local make sure we’re not traveling leads her daughter’s Girl Scout troop. “The company is also a leader community.” at the same time, and we use an in completion and stimulation A Girl Guide for six years in online family planner and calen- technology, which is why I am her native Canada, Shauna is a dar to stay organized.” excited to venture into that area staunch supporter of the Girl What is Shauna’s secret to in my new role.” Scouts of America and has been achieving a favorable work-life She also recently was selected a troop leader with the same balance? “I realized my home to serve a three-year term on the group of girls for the past four doesn’t need to look like a maga- Society of Petroleum Engineers years. “The program focuses on zine feature, I don’t have to cook (SPE) International Board of helping young girls develop lead- everything from scratch, I don’t Directors, a prestigious posi- ership and team-building skills,” have to spend months plan- tion typically reserved for more said Shauna. “Working with the ning birthday parties, and it’s senior professionals. troop has helped me personally OK to read reports and SPE “Shauna more than deserves and professionally. Honestly, papers while sitting through my this recognition,” said Matt Fox, if I can get 10 pre-teen girls girls’ dance classes.”

spirit Magazine 35 In the News

m a r c h 2012

ConocoPhillips Global Onshore Well Management Principles

t ConocoPhillips, we play a key role in helping to ConocoPhillips is committed to our Onshore Well Manage- A meet the world’s growing energy demands. Our ment Principles at every site we operate around the globe. SPIRIT values (Safety, People, Integrity, Responsibility, Inno- We encourage our co-venturers to honor these princi- vation and Teamwork) guide our actions to deliver energy ples where ConocoPhillips is not the operating company. safely and responsibly to the world. We recognize there In rare instances, regional variations, such as geology, surface are environmental and social impacts associated with oil features and seasonal climate, require us to make responsible and natural gas exploration, development and production. design or operational modifications from our standard prac- To address those impacts and make responsible business tices to suit local conditions. Robust protocols are in place to decisions, we follow a set of Global Onshore Well Manage- document, review and approve such modifications. Our goal ment Principles. Well management includes all activities is to maintain high performance standards by following these throughout the entire life cycle of a well, beginning with initial four Global Onshore Well Management Principles. site selection and ending with permanent well closure.

Our Onshore Well Management Principles incorporate estab- lished industry standards and are designed to meet or exceed regulatory requirements. These principles demand diligent Our principles guide how we focus on every activity, from community consultations about protect and respect people exploration to final site restoration. Our principles guide how and the environment. we protect and respect people and the environment.

36 ConocoPhillips continued ▲

1. Protect and Respect 2. Preserve and Conserve PEOPLE WATER ConocoPhillips commits to protect the health and safety of ConocoPhillips commits to protecting groundwater and surface neighboring communities and workers. We: water by adhering to strict well-integrity procedures and safe • Conduct frequent safety meetings and train workers to understand water-management practices at the surface. We: roles, location-specific responsibilities, specific site hazards, • Design and construct new wells with at least two barriers to isolate and contingency and emergency response plans. protect freshwater zones. • Require all personnel in work zones to wear personal protective • Monitor system pressures during drilling and completion activities and equipment and use other appropriate safety equipment. take appropriate corrective actions, including shutting down activities, • Train employees according to their environmental responsibilities and if necessary. duties. • Use air or freshwater-based fluids to prevent water contamination • Hire qualified contractors who meet our performance standards and when drilling through freshwater zones. share our know-how to improve practices. • Capture produced and flowback fluids from well operations in tanks or • Train our employees and contractors, and instill a commitment to lined pits and manage these fluids according to government-approved achieve zero injuries, illnesses and incidents. methods. • Follow stringent site-closure requirements at the end of a well’s produc- ConocoPhillips works closely with stakeholders to promote an tive life, including setting cement plugs and/or mechanical barriers in the understanding of our operations, engage and contribute positively wellbore to isolate oil and natural gas from freshwater sources. to communities, and minimize impacts from oil and natural gas development. We: ConocoPhillips implements water-management practices to use this vital resource efficiently. We: • Value open communication to share information, understand local concerns, answer questions, and collaboratively seek solutions early in the • Work collaboratively with government agencies to identify and permit planning process. appropriate water sources for well operations. • Support disclosure of the chemical ingredients used in hydraulic fracturing • Assess, measure and monitor our freshwater usage. fluids in a way that informs the public and protects proprietary industry • Evaluate opportunities to expand our baseline groundwater testing information. programs into new development areas. • Pursue opportunities for local training, hiring and business collaboration. • Pursue opportunities to conserve freshwater through alternative • Consider site-specific measures to manage truck traffic, dust, noise, aesthetics approaches to freshwater use and fund research aimed at reducing and other community issues associated with our operations. freshwater consumption. • Recognize and respect traditional values, heritage, culture and legal • Seek to increase reuse of water associated with oil and natural gas operations. rights of indigenous people consistent with the company’s Human Rights Position. • Invest in the communities in which we operate by supporting local projects and organizations and through our charitable contributions program.

3. Manage Land 4. Safeguard FOOTPRINT AIR ConocoPhillips applies technology and designs facilities to reduce our ConocoPhillips operates in a manner that protects air quality and land impact and works diligently to restore former production sites in an reduces emissions. We: environmentally responsible way. We: • Evaluate and implement techniques to capture gases emitted during • Use horizontal and directional well technology when compatible with well completion (green completions). reservoir characteristics and strive to drill multiple wells from a single • Flare gases that are not able to be captured during completion, unless pad to minimize surface equipment, roads and other infrastructure safety, environmental or other conditions require the gases to be vented. required to develop a given area. • Strive to implement technologies and use equipment that reduces • Restore land surrounding our operations in compliance with all emissions during production operations. regulations and contractual obligations. • Monitor emissions from our facilities with sensory observation (sight, • Consider stakeholder preferences for land management and seek to sound, smell) and/or infrared technology to detect equipment leaks protect habitats for local species and promote healthy ecosystems and repair/replace equipment as necessary. with guidance from land management agencies. • Volunteer to participate in industry and government initiatives aimed at reducing air emissions from well operations.

spirit Magazine 1937 In the News continued from previous page ConocoPhillips highlights repositioning into a new “Conoco­Phillips is truly unique as an independent E&P company, and we class of investment at annual meeting of stockholders intend to pioneer a new standard in E&P onoco­Phillips is nearing the comple- our portfolio is more closely focused on excellence globally,” Lance said. “Our Ction of its three-year repositioning assets that can drive long-term growth.” hallmarks are safety, disciplined financial plan designed to deliver long-term value. Consistent with the repositioning plan, management and a drive for unparalleled The repositioning plan to optimize the the company completed the spinoff of its operational excellence and performance. company’s portfolio was initiated in 2010 downstream businesses to its stockhold- Our size, scope and capability, combined and has delivered enhanced total share- ers on April 30, 2012. In conjunction with with the focus and culture of an indepen- holder returns. this spinoff, ConocoPhillips­ stockholders dent, will enable us to pursue opportuni- “We have delivered peer-leading total received one share of Phillips 66 common ties and take actions to create value for shareholder returns over the course of our repositioning plan,” said Conoco­ “We have delivered peer-leading total shareholder returns Phillips Chairman and Chief Executive Officer Ryan Lance at the company’s over the course of our repositioning plan.” – Ryan Lance May 9 annual meeting of stockholders. “During this period we have increased stock for every two shares held of all our stakeholders.” our dividend rate by 32 percent and Conoco­Phillips common stock. Following Over the next five years, Conoco­ repurchased $17 billion of our shares. the spinoff of Phillips 66, ConocoPhillips­ Phillips plans to execute a disciplined We have divested more than $21 billion has emerged as the world’s largest inde- capital program of approximately of nonstrategic assets, which resulted pendent exploration and production (E&P) $15 billion per annum, supporting the in improved financial returns and cash company, based on proved reserves and company’s reserve replacement target returns on capital employed. In addition, production of liquids and natural gas. of more than 100 percent. From 2013 forward, the company expects to gener- ate 3 to 5 percent annual production and margin growth from major develop- ment projects already under way in the onshore United States, Canadian heavy oil sands, United Kingdom and Norwe- gian North Sea, Malaysia and Australia. Conoco­Phillips also will maintain its commitment to shareholders by offering a sector-leading dividend and targeting annual increases in distributions. “By putting new focus and discipline into the Conoco­Phillips legacy, we believe we can create a new class of invest- ment that can perform like no other E&P company,” Lance added. “We expect to offer investors stable, relatively low-risk distributions with attractive growth and returns. In the current environment, we ConocoPhillips Chairman and Chief Executive Officer Ryan Lance responds to a believe this is a compelling value proposi- stockholder’s question at the annual meeting of stockholders. tion for any industry.” •

Water sustainability center receives grant

atar Foundation’s Qatar National from 37 national and private institutions in QResearch Fund selected the Qatar. Only 2 percent of the grants were Conoco­Phillips Global Water Sustainabil- awarded to private companies. ity Center to receive a grant for its innova- tive bio-treatment of petrochemical water Located in Qatar Science & Technol- with membrane bioreactors. The highly ogy Park, the Global Water Sustainability competitive fund supports priority aca- Center examines ways of treating and demic and research projects in the fields recycling byproduct water from oil and gas of science, engineering, medical, agricul- production and refining operations, as well tural, social and human studies. Submis- as other projects related to industrial and sions for the grant included 670 proposals municipal water sustainability.

38 ConocoPhillips continued ▲

It’s who you know: Employees team up to help Gulf Coast birds his spring a handful of Conoco­Phillips Stephen Gast, who left the company in Temployees banded together to help 2011 after 37 years of service, reached protect a bevy of beach-nesting bird out to long-time friend Bobby Nolen, species impacted by the 2010 Deepwa- manager of reserves compliance and ter Horizon oil spill. As breeding season reporting. Nolen forwarded the request approached for colonies of waterbirds to Terri King, former operations manager who nest on small islands in Galveston of the Gulf Coast Business Unit and Bay, human interference again threatened now general manager of the San Juan the fragile process. Business Unit. Terri passed the message In Texas and Louisiana, much of the along to Lower 48 Chief Completion Engi- nesting habitat for colonial waterbirds neer Marc Shannon, who had recently ConocoPhillips volunteers is on bay islands rather than mainland transferred from the Mid Continent Busi- make a difference at beaches. Birds that use these islands ness Unit. Shannon knew that if anyone Houston’s Memorial Park are particularly vulnerable to disturbance could track down spare rods, it would be from recreational boaters and fishermen. Gary Lovett, operations superintendent group of 25 hardy employees “When boats come too close to the shore for the West Texas Permian Basin. A celebrated Earth Week on April 26 they can flush adult birds off their nests The ultimate hero was Tom Evans, oper- by repairing erosion damage in Memorial and away from their eggs and chicks, ations supervisor for West Texas Permian Park, a 1,500-acre green space near putting them at risk from predators and Goldsmith, who located 15 sucker rods overheating,” said in Odessa and downtown Houston. The park lost Dr. Sue Heath, arranged to have many of its trees during last summer’s avian conservation “Just spooking an adult bird them cut into drought, and heavy winter rains took biologist for the Gulf can result in eggs falling to the 45 eight-foot their toll on unprotected soil. Part of Coast Bird Observa- lengths. Brandon ground and being crushed.” the Earth Week effort was led by Jeri tory. “Just spooking Webb, president an adult bird can – Dr. Sue Heath of 3S Construction Fuller, associate, Global Production result in eggs falling LLC, volunteered Excellence. The entire project was to the ground and being crushed.” to transport the rods to their Houston-area coordinated by Nurul Ali, senior process The GCBO, a conservation group destination, free of charge. engineer and David Brewster, engineer, based in Lake Jackson, Texas, teamed Amazingly, the turnaround time for this Principal Well Integrity. up with the American Bird Conservancy labyrinthine process was only two weeks, and partner organizations to increase and the new signposts arrived in time The Memorial Park Conservancy public awareness of beach-nesting birds. for breeding season. When asked what welcomed the team with open arms, pro- Of particular concern were least terns magic element made the disparate pieces viding tools, supplies, personal protec- and black skimmers, species heavily come together so smoothly, Lovett says it tive equipment and a project supervisor. impacted by the spill. Thousands per- was simple: “Collaboration by a network In a section adjoining a residential area, ished, and many more were unable to of people who knew one another.” And breed during the beach cleanup that fol- that’s the spirit of Conoco­Phillips. • the group removed obstructions such as lowed. While not directly affected tree branches, rocks and vegetation, and by the oil spill, Galveston Bay is spread grass seed. They then anchored home to some of the most vulner- straw mats over the area to guard able and impacted species. As part of the public education against further erosion and placed straw campaign, GCBO planned to erect logs to shield heavy drainage areas. a series of signs to alert boaters Next, the team tackled a ravine that was and fishermen approaching these overgrown with non-native plants. islands during breeding season. “We worked for nearly four hours,” Sucker rods make perfect beach signposts because they’re fiber- said Brewster. “Everybody had a great glass and won’t rust. time, and we left with a sense of accom- The GCBO team needed sucker plishment, civic duty and gratification.” rods, and with breeding season Through the Conoco­Phillips Employee looming they needed them Volunteer Grant Program, the Con- quickly. servancy also will receive a $1,000 Here’s where the plot thickens. GCBO volunteers gather around a sign encourag- GCBO founding board member ing boaters to keep a safe distance from beach- contribution. • and Conoco­Phillips retiree nesting birds.

spirit Magazine 39 In the News continued from previous page Lion Guardians project humans, specifically people who kill lions Guardians project, involves recruiting and that attack their livestock or young Kenyan hiring young Maasai warriors to become wins St Andrews Prize for Maasai warriors who kill lions as part of actively engaged in protecting lions. The the Environment a ritualistic practice. This year’s winner Lion Guardians organization teaches the ess than 60 years ago, an estimated of Conoco­Phillips’ St Andrews Prize for warriors to read, write and communicate L400,000 to 500,000 lions roamed the Environment has devised a solution. in Swahili, and also trains them in wildlife across the African continent. Today, fewer If successful, the plan would both ensure management and conflict-mitigation than 30,000 remain in only a fraction of the survival of the lion and preserve the techniques. The warriors’ protective role their former range. In Kenya, that number cultural traditions of the Maasai. includes monitoring lion movements, has declined to roughly 1,900, leading The plan, created by the Lion warning pastoralists when lions are in the one expert to predict that lions could area, recovering lost livestock, reinforc- become extinct in the area by 2020. The ing protective fencing, and intervening main reason for the decline is conflict with to stop lion hunting parties. Collectively, these efforts lead to a reduction in the loss of livestock, which enhances the livelihoods of the local people and builds tolerance for lions and other carnivores. Most notably, these conflict-mitigation efforts are founded on century-old tradi- tional techniques that are easily under- stood and accepted by the community. Dr. Leela Hazzah, director and founder of the Lion Guardians team, accepted the $100,000 winning prize in April at a cer- emony at the University of St Andrews. “I am delighted with this win,” said Above: Guardians use radiotelemetry Hazzah. “This money will cover the equipment to search for collared lions in core costs of the program, which is the their zones and warn livestock herders to backbone of our organization. We will avoid particular areas where possible con- continue to develop and improve the flict may occur. educational, technical and communica- Left: Guardians are highly effective at locat- tions elements of each site, ensuring that ing livestock that have been lost in the bush. they have a customized program to fit Community members call on them when their specific needs. It will also enable us such an event takes place. The Guardians scour the landscape until they find and to scale up the program into new areas safely return the livestock to its owner. where both imperiled carnivores and

Guardians walk large distances daily in search of lions.

40 ConocoPhillips continued ▲

President delivers policy speech from ConocoPhillips well site n March 21, President Barack foot forward with the help of employees “We certainly align with the president OObama delivered a speech on his from the Lower 48 Mid-Continent Busi- on the importance of energy security administration’s energy policy near a ness Unit, Government Affairs and Inves- based on more production at home Conoco­Phillips well site on federal land tor Relations & Communications. The and the ‘all-of-the-above’ approach to in New Mexico. The White House and speech was part of a presidential swing our nation’s energy future,” said Red the Bureau of Land Management chose through several energy-producing states. Cavaney, senior vice president, Gov- the location and directly requested More than 45 members of the media ernment Affairs. “At the same time, it access to the ConocoPhillips­ well site. attended the event, providing Conoco­ is important to note that the energy Despite the company’s differences with Phillips an opportunity to reiterate the industry pays one of the highest effective some aspects of the administration’s company’s own position on energy global tax rates among manufacturing- energy policy, ConocoPhillips­ put its best policy. related industries.” •

Above: The ConocoPhillips well site MCA 95 is part of the Maljamar Field on Bureau of Land Management-leased land. Right: President Barack Obama delivered a speech on his administration’s energy policy near a ConocoPhillips well site on March 21.

indigenous communities would greatly Guardians areas has given birth to cubs. individuals with innovative environmental benefit from its expansion.” Since the program’s launch, the St ideas and gives us the opportunity to Lion Guardians currently employs Andrews Prize for the Environment has focus on developing and sustaining their more than 30 Maasai warriors. Since the attracted entries on topics as diverse as life-changing projects.” program’s inception in 1998, no lions sustainable development in the Amazon This year’s runners-up, each presented have been killed in response to livestock and Central American rainforests, urban with a check for $25,000, included attacks or as part of Maasai rituals. For re-generation, recycling, health and water Aqua21 and Sanergy. An ozone-based the first time in more than a decade, as a issues, and renewable energy. water purification technology, Aqua21 sign of the increased stability of the lion “By sponsoring the St Andrews Prize aims to deliver non-chemical, low-carbon population, each adult lioness in Lion for the Environment, ConocoPhillips­ is and reliable water purification technology creating a path to a more secure and to a global market at significantly lower environmentally conscious energy supply energy and capital costs than established for future generations,” said Conoco­ alternatives. Sanergy provides sustain- Phillips UK President David Chenier. able sanitation for Kenyan urban slums “This forum lets us recognize groups and through the construction of small-scale, high-quality sanitation centers and uses A Guardian touches a lioness. When a lion is the waste to produce organic fertilizer and sedated to fix a radio collar, the Guardians electricity. are able to touch the lion safely. A unique Full details on each of the finalists’ bond is born, which the Guardian takes with him for the rest of his life as he continues to projects can be found at www.the protect all the lions in his community. standrewsprize.com. •

spirit Magazine 41 In the News continued from previous page continued ▲

Introducing the enhanced ConocoPhillips Employee Discount Program! hopping for a laptop? Buying a new Scell phone? How about getting a corporate discount on either one or on a service you already use? All of that and more can be found through the enhanced ConocoPhillips Employee Discount Program! Through this new online site managed by Bene- place, employees, family members and retirees can shop for discounted prod- ucts and services nationwide. Vendors include florists, theme parks, and auto and electronics store retailers. The new site makes purchasing and applying discounts a breeze. Australian energy industry leaders, including Australia-West President Todd Creeger (back row, far left) celebrate the pledge to have the Subsea First Response Toolkit in Discounts include products and ser- place by early 2013. vices used every day, with new products added frequently. Seasonal promotions allow participants to save even more ConocoPhillips supports Australian money. Visit www.beneplace.com/ spill-response system conocophillips. onocoPhillips, along with other President Todd Creeger said it was The ConocoPhillips Employee Cindustry leaders, announced critical that Conoco­Phillips had access Discount Program is currently available funding to develop a world-class subsea to the latest systems, technology and to all U.S.-based ConocoPhillips response solution at a recent Australian expertise to achieve the highest stan- employees. • Petroleum Production & Exploration dards of environmental safety and Association (APPEA) Conference. performance. Federal Minister for Energy Building on the Australian oil and gas and Resources, the Hon. Martin Fer- industry’s capacity to guson AM MP, con- Human Resources vice rapidly respond to an gratulated Creeger president appointed offshore well incident, for the initiative. n May, Sheila Feldman joined the leaders pledged The Subsea First Response A consortium IConoco­Phillips as vice president, that the Subsea First of 12 oil and gas Human Resources. Feldman’s appoint- Response Toolkit Toolkit (SFRT) will enable companies operat- ment completes (SFRT) would be in ing in Austra- the task of staff- place by early 2013. immediate mobilization lian waters will ing the executive Stored and main- commit more than leadership team. tained in Australia, of specialized tools and $2 million as foun- Feldman previ- the SFRT will enable equipment at the onset of dation members, ously served immediate mobiliza- funding the acqui- as vice presi- tion of specialized a subsea well-control event. sition, maintenance dent of Human tools and equipment and deployment Resources for at the onset of a of the SFRT over Arch Coal and subsea well-control the next five years. Solutia. She event. The toolkit will help teams assess Those companies are: ConocoPhillips, began her career the damage at the sea floor, provide an Apache, BP, BHP Billiton Petroleum, with Gould, Inc. emergency override and operation of Chevron, Eni, ExxonMobil, INPEX, in 1979. Feldman blowout preventers, clear debris around PTTEP, Santos, Shell and Woodside. holds a bachelor’s degree in political the wellhead in preparation for installing The global oil and gas industry has science and human resources manage- a capping device and ensure that the also agreed to locate capping stack ment from the University of Maryland surface of the sea above the wellhead is systems at four locations around the and a master’s degree in public affairs safe for ongoing vessel activity. world: Singapore, Brazil, South Africa and human resources management from ConocoPhillips Australia-West and Norway. • the University of Wisconsin. •

42 ConocoPhillips New Company. Bigger and better discount program.

The new ConocoPhillips Employee Discount Program provides employees and retirees greater access to money- saving discounts on national products and services used every day. ®

Managed by Beneplace, the online program currently is available to all U.S.-based ConocoPhillips employees.

Visit www.beneplace.com/conocophillips Trademarks and brands are the property of their respective owners. Two names : One membership means an account at ConocoPhillips Credit Union is an account at 66 Federal Credit Union. Whether you are visiting 66 Federal Credit Union in Bartlesville, Oklahoma, or ConocoPhillips Credit Union in Houston, Texas, you have full access to your account.

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FEDERALLY Houston, TX | www.copcu.org INSURED BY NCUA (800) 897-6991 In the News continued from previous page continued ▲ ConocoPhillips wins third consecutive APPEA Safety Award onocoPhillips received the Australian CPetroleum Production & Exploration Association (APPEA) award for excel- lence in safety performance for the third year in a row. Conoco­Phillips was recognized for its innovative safety initiatives and achieve- ments among operating companies which recorded, jointly with their contractors, more than 500,000 working hours for the calendar year. During 2011, ConocoPhillips­ embarked upon two major initiatives: safety-lead- ership coaching that spurred workforce innovation, and asset integrity and process safety visibility and engagement. ConocoPhillips Australia-West President Todd Creeger (right) accepts ConocoPhillips ConocoPhillips­ Australia-West Presi- third consective APPEA National Safety Award. dent Todd Creeger said it was an honor to receive the third consecutive APPEA of safety in the workplace and at home,” the company’s outstanding commitment Safety Award, which highlighted the Creeger said. “By leading with safety, to safety. employee and contractor “One Team” we are encouraging employees to reach “This award is a reflection of Conoco­ approach and partnership in building a their full potential, attracting new talent Phillips’ commitment to providing the true culture of safety across the com- and creating a diverse, inclusive work safest workplaces in the regions we pany’s world-class energy projects. environment.” operate – our Bayu-Undan and Darwin “ConocoPhillips is focused on creating According to Steve de Albuquerque, LNG projects, the Australia Pacific LNG an incident-free workplace based upon vice president, Health, Safety and Envi- Project, our Browse Basin offshore explor­ a solid culture of safety - a culture where ronment, ConocoPhillips Australia-West, ation program and our onshore Goldwyer­ our ‘One Team’ is committed to the value the APPEA Safety Award demonstrated shale project in Western Australia.” •

ConocoPhillips provides computer equipment to the Fact Book available Association of Southeast Asian Nations he ConocoPhillips Spring 2012 Fact onocoPhillips, along with Chevron, Secretary of State for East Asian and TBook is now available at www. Crecently provided external hard Pacific Affairs Kurt Campbell presented conocophillips.com. The Fact Book pro- drives and USB flash drives for use the equipment to Cambodian Foreign vides an overview of the company’s busi- in the Association of Southeast Asian Minister Hor Namhong during a meeting ness segments and operations by country, Nations (ASEAN) meetings. Assistant in May. • including asset and project profiles, maps, and financial and operating data. •

Fact Book SPRING 2012

Daisy Liu, manager, International Government Affairs, Asia Pacific, (second from left) joins U.S. Assistant Secretary of State for East Asia and Pacific Affairs Kurt Campbell (center) and Cambodian Foreign Minister Hor Namhong (second from right) at the ASEAN meeting.

spirit Magazine 1945 In the News From college to career by Kathryn Donelson individual and the company. career fairs, information sessions and ormidable competition exists on both Finally, students who plan ahead have industry networking events. “Our campus Fsides of the hiring equation – for job maintained relationships with poten- recruiting activities have allowed us to seekers and the companies recruiting tial employers. They take advantage of build a strong image of the company, them. With countless university gradu- networking interview many top-quality students and, ates vying for a finite number of desir- opportunities, ultimately, hire the best candidates,” said able jobs, an “entry-level job” is not college fairs Lauren Bosch, HR advisor, Early Career guaranteed as it once was. And while and recruit- Development. ConocoPhillips­ has access to some of ing events. the best and brightest, the company has Working as to compete for that talent. an intern – These days, the more students do spending Get a leg up on the upfront to position themselves for a part of the competition career opportunity, the greater the likeli- school year or Be an intern hood they will be considered for avail- the summer able positions. on-site at a The internship program provides a key “Every year employees ask me how company – pool from which the company hires. they can help their son or daughter with remains one On average in the U.S., close to half of the transition from college to career,” Lauren Bosch of the most ConocoPhillips­ interns are offered full-time said Barbara Sheedlo, manager, Talent effective ways employment, with about three-fourths of Planning & Acquisition. “With a daughter to establish a relationship with a potential those individuals accepting the offer. in high school and a son in college, I can employer while gaining valuable profes- Robust and valuable internships, such appreciate the challenges. It’s wise for sional experience. as those offered at ConocoPhillips,­ should parents to be informed so they can help include: their kids navigate the process. Keep in Recruiting on • Meaningful, hands-on assignments mind that things have changed since you the home front • Mentoring were in school!” Companies often get a head start on • Networking and learning opportunities the recruiting process by interviewing Career-bound candidates on-campus beginning in the • Community service Students approaching their senior year early fall of the senior year. In fact, each ideally have laid some career ground- fall in the U.S., ConocoPhillips recruiters work. They’ve studied subjects that descend upon more than 50 universi- Stay engaged apply to their target industry. Students ties to participate in career fairs, deliver There is much students can do while seeking a career in the energy industry presentations and interview student in school to prepare for a future have several factors candidates. Pre- career. To stay informed about oppor- working in their favor: ferred majors run the tunities available to them, they can: the industry is perform- “It’s wise for parents to gamut from geology ing well, companies be informed so they can and marketing to • Visit their university career center are hiring, and while help their kids navigate the chemistry and human early and often! certain majors are more process. Keep in mind that resources – and all • Attend their university’s fall career in demand than others, points in between. fair (usually in September or the industry will always things have changed since Conoco­Phillips does October). need strong contribu- you were in school!” the bulk of its uni- • Watch for information regarding tors with diverse knowl- – Barbara Sheedlo versity hiring from upcoming recruiting events. edge and skill sets. students who connect • Research the websites of the While coursework with the company companies they’re interested in and a high GPA are a great start, compa- during career fairs, college nights or and look for an affiliation with their nies also increasingly consider extracur- internship applications. university. ricular factors. How students spend their Around the globe, university recruiting out-of-classroom time often can distin- looks similar. In Aberdeen, for example, • Network! Talk to professors, guish them from the pack. Resumes are students from all universities may attend peers, friends, family members now submitted online, and recruiters look centrally located networking sessions. and career counselors. at memberships and leadership positions, The London team is expanding its meth- • Focus on their studies and make achievements and accolades, applicable odologies to create more diversity with time for outside activities and job experience, and the all-important placement students beyond the his- special-interest groups. internships. These activities reveal much torically preferred universities. Conoco­ about the candidate and help recruit- Phillips Canada participates in a number ers determine the best fit for both the of university recruiting activities including

46 ConocoPhillips

People, Partnerships, Progress

The company’s global university take advantage of these programs earn job seekers, but plenty of opportunities recruiting efforts also extend to corpo- valuable financial assistance while forging exist for those motivated to seek them rate contributions, scholarship programs an early and strong relationship with a out. This holds especially true in organic, through individual universities, as well as potential employer. innovative industries such as energy. dependent scholarships awarded to high Helping connect kids early and often to school seniors on the basis of academic The future is bright potential career paths and companies excellence, financial need, community Today’s economy requires a more strate- goes a long way toward getting their foot service and leadership. Students who gic approach on the part of many young in the door. •

Reed Stiles, graduate reservoir engineer Internship years: 2010 and 2011 University of Tulsa “I was impressed by the projects assigned to me and the impact and value they added to my time at Conoco­Phillips. The mentors and team members from both internships were top notch. They always made time to assist, advise and answer all of my questions. The networking opportunities and friends I made along the way were extremely valuable. Many of my closest friends are employees here because we share the same hard-working spirit and values that make this company great.”

Michelle Thoms, geologist Internship year: 2011 Memorial University of Newfoundland “The program allows students to become fully integrated into the company and industry. We’re given hands-on projects that allow us to use our knowledge and enhance our technical skills. Throughout the internship we’re given countless opportunities to network with our peers and other employees. Being an intern made for an easy transition as a new grad. I knew I was returning to a company that offered great training and values, but because of my internship, I knew I would be surrounded by knowledgeable and supportive employees. It’s these people who really make a difference in your career, especially when you’re just beginning.”

Ben Onukwube, transportation analyst Internship years: 2009 and 2010 University of Arkansas “The internship program was my introduction into the corporate world, and it opened my eyes to the scope of my field. Previous exposure to the company through two different internships made coming back to start my career much easier because I knew the area, understood the culture and was able to draw upon some very solid relationships.”

spirit Magazine 1947 P.O. Box 2197 Houston, TX 77252-2197

spirit Magazine is published quarterly by the On Assignment ConocoPhillips Internal Communications Department.

Courtney Timm (HSE, Page 12) is a communications Address mail to spirit Magazine, ConocoPhillips, MA3132, P.O. Box 2197, Houston, TX 77252-2197, or send email to consultant for the Health, Safety and Environment the editor at [email protected]. (HSE) organization based in Houston, Texas. She joined Conoco­Phillips in 2004 and has since supported Ray Scippa communications efforts for corporate events, commu- Executive Editor nity outreach, Human Resources, Transportation, and Michelle Gunnett, Designer Project Development and Procurement. Courtney is editor of The Bullseye, a bi-monthly publication commu- Contributing Editor: Andrea Urbanek, In the News nicating HSE news to the company. She is a graduate of Internal Communications: David Austin, Whitney Burton, Baylor University with a degree in studio art. Kathryn Donelson, Rodney Echols, Bob Henegar, Jan Hester, Janice Leonard, Natasha Mitchell, Kristi Vinnika Johnson (IT Jam, Page 30) is a communications specialist, IT Richardson and Sharon Rode Knowledge Sharing (KS). Her role includes communication activities to strengthen awareness of Knowledge Sharing and IT. She manages the Creative Services: Kevin Bonny, Linda Boulton, Ed Burke, Carmelo de Guzman, Darcy De Leon, Dave Duncan, Toni Archimedes Award program and success story processes and provides Garrett, Garth Hannum, Larry Jones, Rich Ostrem, Jim communication support to better enable the company’s 100-plus Net- Spanos, Holly Strople, Sara Wise and Chris Young works of Excellence. Additionally, Vinnika is part of the planning, coor- dination and execution of KS-related Contributors: Aftab Ahmed, James Bartlett, Catherine meetings, conferences, special events Biss, Amy Burnett, Cathy Cram, Rosalind Derrick, and training. She is a graduate of Texas Sandra Duncan, Sarah Edman, Sandra Harthoorn, Greg Leveille, Vinnika Johnson, Paul MacFarlane (P66), Nathan Southern University with a degree in Murphy, Jaclyn Popeil, Bill Stephens, Dale Summerlin, journalism and minor in speech com- Courtney Timm, Jennifer Werbicki, John Williams, Tony munication. With a passion for helping Wittman, Anwar Yusoff and Rosy Zuklic others, Vinnika serves as the commu- nity outreach co-chair for a Houston- spirit Magazine is printed at the Phillips 66 based nonprofit. Printing Center in Bartlesville, Okla. Business Printing and Finishing: Mike Cranor, Jan Hester (Shauna Noonan, Page 34) is a communica- Beth Foster, Randy McDonald, Frank Mitchell, Karen tions professional with agency, private sector and public Taylor, Randy Templeton and Nancy Vaughn sector experience. She joined Conoco­Phillips as a con- For requests related to the spirit Magazine mail­ing tractor in February 2012 after several years as a freelance list, please contact Beth Foster at writer, editor and public relations consultant. Her clients [email protected], or call 918-661-0428. included the Metropolitan Transit Authority of Harris This issue of spirit Magazine contains forward-looking statements within the County, Houston, Texas; the Houston Independent meaning of the “safe harbor” provisions of the Private Securities Litigation School District; the Jones Graduate School of Business, Reform Act of 1995. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Economic, Rice University; and Service Corporation International, business, competitive and regulatory factors that may affect ConocoPhillips’ where she served as manager, Internal Communica- business are generally as set forth in ConocoPhillips’ filing with the Securities and Exchange Commission (SEC). Unless legally required to do so, Conoco­ tions. Her previous energy experience includes Statoil Phillips is under no obligation (and expressly disclaims any such obligation) and Hill & Knowlton Public Relations. She served 11 years in the U.S. to update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Foreign Service and is a native of Bartlesville.

spirit Magazine is printed entirely on Forest Stewardship Council™ (FSC) certified paper. FSC certification ensures that the paper used in this magazine contains fiber from well-managed and responsibly harvested forests that meet strict environmental and socioeconomic standards. We’re proud to be one of the first energy companies to make this significant move to help our environment. The FSC logo on our corporate magazine signals not only FSC certification but also ConocoPhillips’ commitment to improving the environment.

CSH 12-1048 Same name. Same values. New Day! At ConocoPhillips, our spirit has fueled our success. Now we’re building on our core values of safety, people, integrity, responsibility, innovation and teamwork to create a company like no other. ConocoPhillips is now focused exclusively on exploration and production. As an industry leader, we are pioneering a new standard of excellence. With a world-class workforce of more than 16,000 employees and a legacy of strength, we’re excited about our future. But even as we embark on this new journey, the way we do business, the way we support the communities where we live and work ... our spirit ... that’s staying the same. It’s just part of who we are.

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© ConocoPhillips Company. 2012. All rights reserved.

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© ConocoPhillips Company. 2012. All rights reserved.