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OCTOBER OCTOBER2017 2017 Light, Tight Oil in the Permian Delaware Basin: RecentCORPORATE Developments LEADERSHIP TO PRIVATE EQUITY-BACKEDGENERAL MEETING P.– 11 HIGH PERSPECTIVES FROM BOTH SIDES PERFORMANCE INVESTMENT & FINANCE INITIATIVE P. 21 CERAMICSNETWORKING AND MENTORING TOPERMIAN BUILD BASIN BENEFICIAL P. 21 RELATIONSHIPS CONTINUING EDUCATION P. 17 DATA-DRIVEN CLASHAND REDUCED OF THE TITANS – DELAWAREORDER MODELS VS. MIDLAND, AND THEIN RESERVOIR RISE OF THE SUB-BASINS SIMULATIONBUSINESS DEVELOPMENT P. 13 DOMESTIC AND RESERVOIR P. 28 INTERNATIONAL2017 LNG SALARY TRADE ACCELERATED LEARNING TUTORIAL: AN SURVEY NORM IN PRODUCED AND DEVELOPMENT OVERVIEW OF MULTISTAGE COMPLETION INTERNATIONALHIGHLIGHTS P. 9 SYSTEMSWATERS: FORBASICS HYDRAULIC OF FRACTURING PETRO-TECH P. 23 PROBLEMCONTINUING EDUCATION AVOIDANCE P. 18 WATER & WASTE MANAGEMENT P. 31 SPEGCS.ORG SPE-GCS CONNECT CCPS is an AIChE technology alliance, and it formed after the catastrophic Bhopal CHAIR’S incident. In December 1984, the release of a highly toxic gas at the Union Carbide pesticide plant in Bhopal, India, exposed over 500,000 CORNER people to methyl isocyanate and killed nearly 4,000 people. As reported in the CCPS 2012 Annual Report, after Bhopal, in February 1985, “17 chemical industry leaders asked the American Institute of Chemical Engineers (AIChE) to lead a collaborative effort to eliminate catastrophic process incidents.” Today, nearly 200 companies are part of CCPS. These industry leaders have recognized their profound responsibility to “address the most important process safety needs and encourage an overall TREY SHAFFER culture of process safety.” CCPS is fortunate to 2017 – 2018 SPE-GCS Chair have an individual like Shakeel Kadri leading the way. PROCESS SAFETY: A MORAL IMPERATIVE The upstream industry has experienced many other catastrophic incidents that resonate in our collective memory. The Piper Alpha explosion on July 6-7, 1988, when 167 The professionals of SPE support the delivery of a tremendous natural resource and technical workers lost their lives, was followed by the capability that has contributed significantly to the advancement of society. Dr. Helge Hove April 20, 2010, Deepwater Horizon incident Haldorsen, 2015 SPE President, would often say that, through our work, we lift people out in the Gulf of Mexico, which resulted in the of poverty by raising the standard of living. He would add that we are a force for good in the death of 11 people and the injury of 17. An communities where we operate. However, we can never forget that significant responsibility unprecedented 5 million barrels of oil was comes with the value that we bring to these communities. This month, I challenge industry subsequently released. The impact on our leaders and SPE members to seriously reflect on the moral imperative to safely explore, develop industry has been deep, and repercussions and deliver the value we create. have been relentless. In January 2015, the following process safety definition was presented to the Technical Directors In March 2011, API formed the Center for serving on the SPE International Board of Directors: “Process Safety - A disciplined framework Offshore Safety (COS), an industry-sponsored for managing the integrity of hazardous operating systems and processes by applying good design group focused on offshore safety on the U.S. principles, engineering, and operating and maintenance practices.” The description is based Outer Continental Shelf. Based in Houston on definitions found in literature for Center for Chemical Process Safety (CCPS), International and under the leadership of Executive Director Association of Oil & Gas Producers (IOGP), American Petroleum Institute (API), and International Charlie Williams, COS has as its goal to adopt Association of Drilling Contractors (IADC), and work already done by many industry practitioners. “standards of excellence to ensure continuous This definition was determined to be inclusive, yet broad enough to allow SPE to focus on how best improvement in safety and offshore to apply the definition for benefit of SPE members and member companies. operational integrity.” At the 2017 SPE Annual On June 23 of this year, SPE hosted a Process Safety Meeting in Houston that brought Technical Conference and Exposition in together about 50 individuals representing various organizations. Presenting organizations San Antonio, Williams will be honored with included SPE, CCPS, API, and IOGP, along with the Mary Kay O’Connor Process Safety Center the Robert Earll McConnell Award. The at Texas A&M University and the Bureau of Safety and Environmental Enforcement. (This is establishment of the COS is another important not a comprehensive list of organizations working in process safety for our industry, and not all step, but many more are needed. invited organizations were able to participate.) Our industry is still seeking answers – I I represented SPE at this meeting. The primary objective of the meeting was to gain a better would argue that we have not converged on a understanding of the work underway by various organizations for both onshore and offshore single organization or mechanism to address E&P activities. The meeting also provided an opportunity for stakeholders to network on process safety for the upstream industry, current practices and internal processes. The group recognized the need to better integrate human factors into our work. It was also recognized that we will benefit significantly from Continued on page 4. continued efforts to address process safety competencies for SPE members, including addressing certification requirements for process safety practitioners. Is SPE-GCS meeting your expectations? During the meeting, Shakeel H. Kadri, the Executive Director of CCPS, presented an overview We challenge you to send us your feedback on an event of the role CCPS has taken in process safety – the CCPS organization and work are impressive. you attended, the Connect newsletter or anything else In referencing public perception, he said, “They may not understand what we do, but they related to SPE-GCS. Write us at [email protected] or understand when we create harm.” directly at [email protected] 2 | October, 2017 October 2017 CONTENTS STUDY GROUPS 13 Reservoir 18 Young Professionals 10.19.17 10.21.17 & 10.28.17 9 International Understanding the ‘Frac-Hits’ Impact Rebuilding Together – Houston 10.3.17 on a Midland Basin Tight-oil Well Domestic and International LNG Trade Production 19 Members in Transition and Development 10.20.17 Business Development 21st Seminar Series Petro-Tech 10.25.17 10.10.17 Clash of the Titans – Delaware vs. MORE Basic Log Analysis and Understanding Midland, and the Rise of the Sub-Basins 10 General Meeting 14 Completions and Production 21 Investment & Finance Initiative 10.4.17 10.12.17 10.25.17 Corporate Leadership to Private Application of Extended Exponential Advanced Production and Operation Equity-Backed – Perspectives from Decline Curve Analysis Analytics Results in Better Decisions Both Sides HSSE-SR Data Analytics 22 SPE-GCS Special Event 10.17.17 10.25.17 10.5.17 Managing Enterprise Risks as an Applying Cognitive Analytics to International Study Group Event with Independent Exploration and Offshore Production Ecuador Minister of Hydrocarbons Production Company 11 Permian Basin COMMITTEES 23 Tennis Committee 11.2.17 & 11.3.17 10.17.17 SPE-GCS 34th Annual Tennis Tournament The Use of 100-Mesh Sand (and 15 Education Smaller!) in Unconventionals Where Are They Now? SPE-GCS Scholarship Fund Update IN EVERY ISSUE Westside 10.18.17 16 Members in Transition 6 Then & Now Extending the Life of Unconventional 10.3.17 Buddy Woodroof Plays with EOR Optimization and Upstream Oil & Gas Professionals Reservoir Diagnostics Hiring Event 7 Membership Report August 2017 12 Northside 17 Continuing Education 10.19.17 10.4.17 8 Volunteer Spotlight Case History of Cotton Valley Sand Log Networking and Mentoring to Build Robert “Buddy” Woodroof Interpretation for a North Louisiana Field Beneficial Relationships La Kietra “Kiki” Lockett Drilling 18 Continuing Education 24 SPE-GCS Student Chapter Section 10.19.17 10.6.17 University of Houston Digital transformation approach to Accelerated Learning Tutorial: An HCC Holistic Drilling Optimization Overview of Multistage Completion Systems for Hydraulic Fracturing 26 SPE-GCS Directory STUDY GROUP PRICING B O A R D O F (unless specified separately) DIRECTORS MEETING MEMBERS $40/$55 Walk-In THURSDAY, OCTOBER 19 NON-MEMBERS $55 7:30 TO 10:30 AM STUDENTS/MIT/RETIRED SPE $15 HOUSTON SPE OFFICE spegcs.org | 3 SPE-GCS CONNECT CHAIR’S CORNER cont. including onshore and offshore. To illustrate our industry’s current state, I have listed three participant observations from a much larger set of comments collected after this June’s SPE Process Safety Meeting: • It would be helpful to have process safety case studies tailored for upstream applications/scenarios. • Continuing process safety education for engineers is important – CCPS has 60-plus courses; SPE has two. • While much has been published regarding the importance of 50,000+ culture and leadership in process safety, it would be helpful to develop practical guidance to assist companies with implementation (including addressing the perceived gap between the front line and back office). These three comments represent significant opportunity for SPE leaders and members to contribute to the moral imperative to safely bwpd deliver the value we create. Through our work as a leading organization in the upstream industry, the leaders and members of SPE have a tremendous opportunity to fulfill SPE’s vision to “Enable the global oil INJECTION and gas E&P industry to share technical knowledge needed to meet the world’s energy needs in a safe and environmentally responsible manner.” RATE I will leave you with one with a final thought that relates to the future of our industry – the university students of today who will become our leaders of tomorrow. Dr. M. Sam Mannan with the Mary Kay O’Connor Process Safety Center at Texas A&M University was a presenter at the June 2017 SPE Process Safety Meeting.