2 FEBRUARY 2017 WWW.AAPG.ORG Vol. 38, No. 2 FEBRUARY 2017 PRESIDENT’SCOLUMN BenefitingHeadline fromHere the Old and the New SubheadBY PAUL BRITT Here and Here BY doAUTHOR some NAMEregular work for a small oil recognize the Association as the premier company that has two very capable geoscientific organization and come back Ipetroleum XXXXYYYYZZZZ engineers. Last week, the at some point in their career. younger of the two told me they were trying toX guess if was I closer in age to him (early Imperial Barrel Award 50s) or to the senior engineer (late 60s), who is also the chief operation officer of the The Imperial Barrel Award (IBA) is company. After the younger engineer left a vital program for raising awareness the room, I told the other, “Well, you can tell about AAPG among students and he’s not in his 30s or he would have already recruiting younger Members. IBA is a Googled me and had that answer.” competition for students to work with This speaks to two areas of interest: age real-world geological and geophysical distribution within the industry, and to the data to identify and present a prospect to way each group deals with data. management, in this case management First, consider the former within AAPG. being the IBA judges. The IBA is regarded As seen in the demographics chart, as a unique program that gives students we have a bimodal age distribution in an experience almost equivalent to an AAPG. Everybody knows that. The gap internship at a company. Teams must in the middle would be the students AAPG Members: Demographics in Oil and Gas demonstrate rigorous and technical who graduated during the 1990s and a evaluations, work to a deadline, work relatively slow period for the industry. American market, that is. membership demographics. within a team, make decisions based on Now, picture the chart in ten years. The So it appears that the old well data, I’ve mentioned it a bit in earlier columns, incomplete or inadequate data, and give large group is now 60-plus and mostly some of which will never be captured but one of the exciting parts of being presentations to a panel of senior industry retiring or otherwise moving out of the work electronically, is less important, or they may president is meeting students and student experts. force. What that means is the latter group, even be unaware of its existence. chapter members from around the world. IBA 2017 is under way, with teams of which is currently 26-35 years old, will The bottom line is that both realities are With all of the students I meet, be it in four or five students from each school become the largest age group when they true. The older geologist needs to be using Thailand, Africa, or Mexico, it advancing to the Section or Region semi- are 36-45 years old. the abundance of well data now available, has always been a great experience. I final competition. This year, 160 teams And, with regard to dealing with data – and many are. The younger geologist am thrilled to see students so motivated have entered and are in the process of the former group, for the most part, grew needs to be aware that not all the data is about geoscience and have tried to be receiving datasets consisting of real-world up (professionally speaking) with more available yet on the computer, and there encouraging, even in the current industry well data and 3-D seismic volumes. Each limited and sporadic point well data in may be clues out there that could make, or condition. school obtains the necessary workstation dealing with conventional prospecting. break, a prospect. AAPG has about 300 student chapters, software and each student learns to use Online data was not available and which arrange get-togethers and activities the software in preparation of receiving geologic data libraries flourished. The use Student Chapters at their local level. the dataset. The dataset may have some of detailed well data, hand-written scout When I was in school, professors key well data omitted in order to gauge cards, as well as old and obscure well logs And, all of that speaks to another pair mentioned the AAPG Bulletin as a great the results of the student prospectors were frequently the key to a prospect or a of related considerations: AAPG’s need source of geologic information, and AAPG against real-world results, and the teams new play. for students, and students’ need for as the premier association for have eight weeks to work the dataset. Today, the commercial online services AAPG. Even as they inherit and develop geologists. Two years later, I graduated The Sections and Regions will hold have captured or acquired a lot of the technological tools undreamt of by older and joined AAPG to get the benefits of semi-finals. In past years the competitions well data, and today’s plays – even older, geologists at their age, young and aspiring membership, including the Bulletin. The were in person, but this year, owing established plays – have in some cases geologists still need the experience and reality of the present day is that most to recent budget and sponsorship almost an order of magnitude more knowledge we have to offer. And, we student members drop their membership, well data available. At least in the North need them to replenish and revitalize our at least for a while. But, hopefully they still See IBA, next page

STAFF TABLEofCONTENTS REGULARDEPARTMENTS Managing Editor Continuing our “The Next 100 The eastern Mediterranean Sea Historical Highlights...... 18 Brian Ervin 08 Years” series, we look at how rising 12 might become a offshore Geophysical Corner...... 20 [email protected] demand in the developing world play, but it all depends on a few key will shape the global oil market of the factors. Policy Watch...... 24 News Editor next century. Foundation Update...... 26 Kelsy Taylor Thanks to advancements in data Protracks...... 28 [email protected] OPEC in the Next Century: Will 22 management and seismic sensing, 10 there still be an OPEC? geophysical modeling has become Classified Ads...... 29 Art Direction/Production indispensable in the search for oil. In Memory...... 29 Matt Randolph The recent OPEC agreement gave What will it become in the century [email protected]­­ Director’s Corner...... 30 11 the industry a much-needed shot in ahead? the arm. But will the agreement hold? Divisions Report (EMD)...... 30 Graphics Support Ben McNett ON THE COVER: Advertising Coordinators The Upper Cambrian microbial mounds Companies A-K Companies L-Z in central Texas are just one of the geologic Mike Taylor Tracy Thompson attractions on offer in this year’s slate of 1-918-630-5672 1-918-560-9414 field trips at the AAPG Annual Convention [email protected] [email protected] and Exhibition in Houston. For more information, see page 28, and visit the ACE website at ace.aapg.org to register. CORRESPONDENTS Left: The century-in-the-making David Brown Louise S. Durham birthday bash will be in Houston in April at our centennial ACE, but AAPG’s actual birthday falls in this month. The Association was officially born Feb. 10, 1917, when geologists from throughout and surrounding states gathered in Tulsa The AAPG EXPLORER (ISSN 0195-2986) is published monthly for Members by the American Association of Petroleum Geologists, 1444 S. Boulder Ave., P.O. Box 979, Tulsa, Okla. 74101-3604, for lectures and technical presentations 1-918-584-2555. email address: [email protected]. Periodicals Postage Paid at Tulsa, OK and at additional mailing offices.POSTMASTER: Please send address changes to AAPG EXPLORER, at the Hotel Tulsa. Pictured is the plaque P.O. Box 979, Tulsa, Okla. 74101. Canada Publication Agreement Number 40063731. Return undeliverable Canadian address to: Station A, P.O. Box 54 • Windsor, ON N9A 6J5 • email: [email protected]. commemorating the event at AAPG Advertising rates: Contact Mike Taylor or Tracy Thompson, AAPG headquarters. Subscriptions: Contact Brian McBroom, AAPG headquarters. Unsolicited manuscripts, photographs and videos must be accompanied by a stamped, self-addressed envelope to ensure return. The American Association of Petroleum Geologists (AAPG) does not endorse or recommend any headquarters. For the full story, see next products or services that may be cited, used or discussed in AAPG publications or in presentations at events associated with AAPG. Copyright 2017 by the American Association of month’s Explorer, and don’t miss the Petroleum Geologists. All rights reserved. Note to Members: $6 of annual dues pays for one year’s subscription to the EXPLORER. Airmail service for Members: $55. Subscription rates for

Vol. 38, No. 2 Vol. celebration in Houston. non-members: $75 for 12 issues; add $72 for airmail service.

WWW.AAPG.ORG FEBRUARY 2017 3 IBA Register Now for from previous page the Celebration constraints, it will be held as a virtual competition via Webex. Each Region or Section may have at least three judges of the Century and there are on average about 11 By DAVE RENSINK, ACE 2017 General Chair teams in each Section/Region. Each Section/Region will advance one team his has been a challenging to the finals, to be held Saturday, April environment in which to organize 1, in Houston before the AAPG Annual Ta major petroleum conference, Convention and Exhibition. particularly one celebrating AAPG’s 100th The finals are open to everyone, and anniversary. Therefore, I want to thank the Photo by Derek Blanchard I encourage you to stop in and see what organizing committee the IBA is all about. for dedicating the AAPG President Paul Britt (front row, second from left), AAPG Past President and current time and effort it Bureau of Economic Geology Director Scott Tinker (front row, fourth from left) and takes to put together conference chairman David Blanchard (front row, third from right) with members of AAPG’s a program, which is Nairobi Student Chapter at a showing of Tinker’s “Switch” at the inaugural African Energy and more than worthy of Technology Conference in Kenya. a celebration of this magnitude. Their names and photos are in the meeting RENSINK announcement, so if you see them around the office or at the conference in April, please thank them and acknowledge their tremendous effort. If you have not already registered, please do so before the rates change. The cost of registration depends upon AAPG membership status, but the rates increase at midnight March 2, so registering now will bring significant savings.

The Centennial Gala

Also, I hope to see you at the Centennial Gala on Monday night. It may or may not be the social event of the century, but it’s certain to be an unforgettable and enjoyable evening celebrating AAPG’s rich, 100-year history. Along with the cocktails and camaraderie, the gala will also include a highly anticipated address by Pulitzer Prize-winning author and energy scholar Daniel Yergin. He is vice chair of IHS and founder of IHS Cambridge Energy Research Associates, but is probably best known as the author of the best-selling and award-winning oil industry history, “The Prize: The Epic Quest for Oil, Money & Power,” as well as the newly released “The Quest: Energy, Security, and the Remaking of the Modern World.” Yergin is world renowned as one of the foremost experts and thinkers about oil and energy, so his keynote address is a rare opportunity you don’t want to miss. And, as if that’s not enough, there’s music: following Yergin’s presentation, Lesli Wood and her band will perform.

Sponsorship

An event with the scope of AAPG’s centennial anniversary Annual Convention and Exhibition (ACE) comes with its share of expenses, so we want to thank our generous sponsors, like Chevron, ExxonMobil, , Shell, Statoil and others. We are still accepting sponsorship contributions, and no amount is too small. However, the bigger the contribution, the greater the impact and the more name recognition and exposure you’ll have at the George R. Brown Convention Center in Houston where ACE 2017 will be, as well as in the ACE 2017 program book and ACE website. There are multiple options available for sponsorship, and you will find everything you need to know on the website: ace.aapg.org. We hope to see you in Houston in

April. EXPLORER 4 FEBRUARY 2017 WWW.AAPG.ORG Headline Here Subhead Here and Here BY AUTHOR NAME XXXXXYYYYZZZZ

WWW.AAPG.ORG FEBRUARY 2017 5 MIDDLE EAST REVIEW Middle East Student Conference Launches By KELSY TAYOR, EXPLORER News Editor he first annual Middle East in quiz rounds. The winning team will ways to create quality events in the region. each year and become a valuable event Geoscience Student Conference is set represent the Middle East Region during “Since all of the societies host student for the students. Tto launch Feb. 26 through March 1 in the SEG International Exposition and 87th events every year, the three societies “Certainly, with the growing youth in the Al Ain, United Arab Emirates. Annual Meeting in Houston this September. joined forces once more to bring the region region, we expect this to be a successful The event will give students the The idea for the conference was an exciting annual event for geoscience conference that will engage regional opportunity to advance their knowledge, developed during a committee meeting students,” she said. geoscientists while working together with discuss new opportunities, expand between AAPG, the European Association Dalisay explained that they are the industry to enhance their technical their horizons and share their expertise of Geoscientists and the Society of expecting to have 80 students in skills,” she said. and interests with other students and Exploration Geophysicists. attendance from more than 13 universities To learn more about the Middle East professionals. Dalisay said that the attendees of the and seven different countries. Geoscience Student Conference, visit

Hyra Dalisay, an organizer of the event, meeting decided to collaborate in new It’s hoped that the conference will grow megsconf.com. EXPLORER explained that the four days will be filled with oral presentations from a variety of experts about innovative topics, poster Executive Committee Candidates for 2017-18 Announced presentations, panel discussions with leading experts in the field, a technical fficer candidates for the 2017-18 course and a field trip. AAPG Executive Committee have Attendees will also have the opportunity Obeen announced, and videos that to participate in a number of challenging allow the membership to become more competitions during the conference. The familiar with them, their careers and their competitions will include the Imperial thoughts are currently in production and will Barrel Award Program, aimed at graduate be available by the end of this month. students from universities around the world. This year’s slate includes contests for COX KALDI COOK KRYZWIEC FABER JOHNSON For the competition, teams will analyze four offices. The person elected president- p Piotr Krzywiec, Polish Academy of u The second video features a Q&A a dataset and present their findings to elect will serve in that capacity for one Sciences, Warsaw, Poland. format, allowing the candidates a chance a panel of industry professionals. Up year and will then be AAPG president for to share their thoughts, priorities and for grabs are scholarship funds for their 2018-19. The terms for the vice president- Secretary visions for AAPG. university’s geoscience department. Regions and secretary posts are 2017-19. p Meredith Faber, Noble Energy, Also, refer to the material included with Geo-Quiz will also be included in the The candidates are: Houston. the January EXPLORER for biographical competitions. The challenge will allow President-Elect p Laura Mauro Johnson, Anschutz information on all candidates, as well as students to compete as teams and against p Denise Cox, Storm Energy, Panama Exploration Corp., Golden, Colo. their responses to the statement, “Why I one another. Teams will go head to head City, Fla. accepted the invitation to be a candidate during quiz rounds, attempting to answer p John Kaldi, professor, Australian As with last year’s election process, all for an AAPG office.” timed questions. The winning students will School of Petroleum, University of Adelaide, candidates will be presented to the AAPG (Associate and student members receive travel grants to Paris, France for the Adelaide, Australia. Membership via two brief videos: are not eligible to vote – but to upgrade 79th EAGE Conference and Exhibition to u One video, a “mini-bio” featuring your membership status, contact your be held in June. Vice President-Regions personal photos, provides a quick look at delegate or an AAPG member services The Middle East Challenge Bowl will p David Cook, (retired) ExxonMobil, the candidates’ professional career as well representative.)

round out the competitions with another Maldon, England. as their involvement with AAPG. Ballots will be mailed in the spring. EXPLORER fast-paced clash of teams competing

6 FEBRUARY 2017 WWW.AAPG.ORG Headline Here Subhead Here and Here BY AUTHOR NAME XXXXXYYYYZZZZ

WWW.AAPG.ORG FEBRUARY 2017 7 THE NEXT 100 YEARS

Photo courtesy of Ding Yuin Shan As in other major urban centers in China, Hong Kong is undergoing rapid economic and Gurgaon, India has become a hub of industry and technology and is one of the fastest growing infrastructure development. Consequently, China is expected to overtake the as cities in the world, and its appetite for energy is expected to keep pace over the next century. the world’s largest consumer of energy liquids in 15 years. Demand Growth in the Developing World By DAVID BROWN, EXPLORER Correspondent

t is conventional wisdom with now,” Smith said. among energy analysts that in “Whenever you’re investing in Current estimates point to Ithe decades ahead, demand slowing growth in energy demand growth in oil and gas consumption technology for the long term, the in developing nations, with BP will come mostly from developing results are unpredictable. Look at our expecting demand growth to fall countries. There are signs, to about 1.4 percent per year after however, that future increases own case in the U.S. No one thought growing at 2.3 percent per year in energy demand will be more the United States would be exporting from 2000 to 2014. gradual than expected, with no crude oil 10 years ago.” And several trends also indicate booming surge in consumption. CARUSO SMITH slower-than-expected growth: Guy Caruso is senior adviser for the Energy and National Caruso said. “In developing countries, “India’s energy mix evolves very u Environmental awareness: Security Program of the Center for Strategic they’re still using a lot of energy in the slowly over the Outlook, with fossil fuels Increased use of energy to spur and International Studies, a policy research industrial sector and that’s less efficient.” accounting for 87 percent of demand in economic development has had a organization in Washington, D.C. BP forecast significant energy-demand 2035, compared to a global average of 79 significant impact on the environment in He’s also a former head of the U.S. growth for China and India in its Energy percent. This is down from 92 percent in developing nations, particularly in China, Energy Information Administration (EIA) Outlook to 2035, issued last year. The 2014,” BP said. but also in India. and the president-elect of the United world’s overall energy consumption is “India’s share of global demand rises “In both of those countries, the problem States Association for Energy Economics expected to increase by 34 percent to 8.7 percent in 2035, accounting for the is the environment,” Smith observed. (USAEE). between 2014 and 2035, in BP’s estimate. second largest share of the BRIC [Brazil, He said public concern about the “Probably 75 percent of all energy “China’s share in global energy demand Russia, India and China] countries with environment in many developing countries demand growth is going to be in countries rises from 23 percent in 2014 to 25 percent China at 25 percent, Russia 4 percent, and has less to do with climate change than we would call ‘developing,’” Caruso noted. in 2035, while its growth contributes 32 Brazil 2 percent,” it added. with direct effects on air quality and water “Everybody’s outlook has most of the percent to the world’s net increase,” BP’s quality. Problems with land pollution and growth in the developing countries, but Outlook said. Slowed Growth trash generation also affect many emerging that’s a broad category that includes China “Energy production (in China) as a share nations. and India.” of consumption drops from 82 percent in While the world’s developing countries Consequently, he said, those countries In the latest edition of its World Energy 2014 to 80 percent by 2035, making the are expected to generate the largest will have to take environmental effects into Outlook, the International Energy Agency country the world’s largest net importer of share of energy demand growth in coming account when planning future energy use. (IEA) contrasted energy demand growth in energy,” it forecast. decades, the questions “How much?” and “The national health statistics demand developing nations with demand declines By 2032, China will overtake the United “How fast?” remain difficult to answer with that. The population is beginning to among members of the Organisation for States and become the world’s largest any certainty. demand that,” Smith said. “Once you attain Economic Co-operation and Development consumer of energy liquids, BP predicted. “The crystal ball is pretty cloudy,” said middle class, you become more discreet in (OECD), a group of 35 mostly economically India also will see big increases in Jim Smith, professor of finance and Cary M. how you want to live.” advanced countries. energy consumption over the next 20 Maguire chair of oil and gas management But Caruso said energy demand should “With total demand in OECD countries years, BP said. It forecast India’s oil imports at Southern Methodist University in Dallas, still increase in developing countries this on a declining path, the geography of to rise by 161 percent and its demand for and a part-president of USAEE. century, with environmental concerns only a global energy consumption continues to natural gas to increase by 155 percent. “The growth rates are potentially fast mitigating factor. shift towards industrializing, urbanizing Renewables and other energy sources but there is a kind of lack of track record “Most of the developing countries are India, Southeast Asia and China, as well will have only a gradual affect on India’s in responding to an economic downturn, attempting to increase their efficiency and as parts of Africa, Latin America and the consumption, it predicted. which India and China are both struggling to factor in the cost of local pollution on Middle East,” the report’s summary said. carbon emissions, but their emphasis is In the next 20 years, “China and on economic growth,” he said. “Climate India see the largest expansion of solar change is important, but it doesn’t appear photovoltaics (PV); while by the mid-2030s to be important enough to have a major developing countries in Asia consume more effect.” oil than the entire OECD,” it predicted. u Increasing urbanization: Blunted Boom Energy demand growth from increased development is “happening more Caruso said more efficient use of energy slowly that it did in the E.U. and the U.S. has tempered demand in the world’s highly because another trend that’s going on developed nations. in the developing countries is increasing “We’re using energy far more efficiently urbanization,” Caruso said. in the U.S., the E.U. and Japan than we “It’s a combination of the sectors where were in the 1970s and ‘80s,” he observed. the energy is used and the demographics “Transportation is a much bigger part Rendering courtesy of prideworldcity.com of the particular country. That’s especially of our energy consumption than it is in the true in China,” he noted. Pride World City in Maharashtra, India is the largest real estate development in the region so far, developing countries, and it’s getting more but it’s just one of many mega projects in India, with more expected in the decades to come. efficient. And it will continue to get better,” See Subsidies, page 14 8 FEBRUARY 2017 WWW.AAPG.ORG Headline Here Subhead Here and Here BY AUTHOR NAME XXXXXYYYYZZZZ

WWW.AAPG.ORG FEBRUARY 2017 9 THE NEXT MIDDLE EAST 100 YEARS REVIEW Must There Be an OPEC? By DAVID BROWN, EXPLORER Correspondent

he Prize,” Daniel Yergin’s getting prices up to targets.” sweeping history of the global “To a large extent, the price formation “Toil and gas industry, includes an is a product of the market. OPEC is an instructive anecdote about OPEC and its important part of that, but only one part,” members. he said. OPEC called for a general meeting in Bali in December 1980. Iraq and Iran, two Then and Now of OPEC’s founding members, had been at war with each other since September. In some ways, OPEC appears to have What’s more, Iraq had just captured changed little over the decades. Bahree Iran’s oil minister as he visited the cited a 1983 announcement by Saudi battlefront near Abadan. Arabian oil minister Ahmed Zaki Yamani of With OPEC member nations seated a “landmark” OPEC deal on oil prices. alphabetically, as was customary, Iraq and Yamani proclaimed “strong indications Iran would be adjacent at the meeting. that this time everybody means business” Indonesian oil minister Subroto offered and said the organization “was not ruling to seat his delegation between the two out a price war if non-OPEC producers countries’ delegates in an attempt to OPEC ministers and officials at the Secretariat. want it,” Bahree recalled. lessen tensions. “That could have been last year. Or in The Iranians, who had earlier 2014,” he observed. threatened a boycott, brought a large But in some other ways, OPEC photograph of their captive oil minister into “To a large extent, the price progressed and adapted. the meeting and insisted on displaying it, a formation is a product of the Bahree identified three areas where portrait, as the head of their delegation. OPEC has changed through the years: In the end, the Iranian delegates market. OPEC is an important u A growing attempt to conduct were allowed to make the symbolic market research and to understand the gesture. The OPEC oil ministers began part of that, but only one part.” complexities of the global energy market: their deliberations with a photo of the “Since the 1990s, they’ve become much Iranian official staring out at them from an BAHREE more keen on market research. There used otherwise empty chair. to be very little,” Bahree said. And the meeting went on as planned. Saudi Arabia took a limited role as “A. The principal aim of the u A reduction in friction between The terms “resilient” and “flexible” again. Organization shall be the coordination OPEC and energy-consuming nations, are not often used to describe OPEC. And the agreement showed just and unification of the petroleum policies of particularly as represented by the But they might be the best two words to how much the Saudis depended on Member Countries and the determination International Energy Agency: “That hostility characterize the organization. cooperation from other OPEC members. of the best means for safeguarding their has slowly disappeared to the point where Bhushan Bahree is senior director for “If you look at the 1980s, OPEC ‘died’ interests, individually and collectively. they now cooperate in many areas,” global oil for IHS Markit in Washington, many times over. OPEC doesn’t have to “B. The Organization shall devise ways Bahree noted. D.C., and a long-time OPEC observer. die. It just becomes dormant,” Bahree and means of ensuring the stabilization u An interest in working together with Asked if OPEC could continue to be an said. “It will continue to be effective at of prices in international oil markets non-OPEC producers, especially Russia: influential factor in the global oil business some times, and ineffective at some with a view to eliminating harmful and “The Russians have been involved in for the rest of this century, he offered an times.” unnecessary fluctuations. OPEC agreements before, mainly because expressive response: “C. Due regard shall be given at all OPEC tried to get them involved,” he said. “Why not?” he said. OPEC’s Mission times to the interests of the producing “They need much more weight, which only “I imagine it will just continue, because nations and to the necessity of securing a Russia can deliver.” the rules are so flexible and the costs are OPEC – which calls itself the steady income to the producing countries; In 2017, OPEC will hold the sixth so low,” Bahree said. “There is really no Organization of the Petroleum Exporting an efficient, economic and regular supply go-round of annual discussions it has enforcement mechanism in OPEC, which Countries – was founded in Baghdad in of petroleum to consuming nations; and a formally named the OPEC-Russia Energy is its weakness and also its strength, which September 1960, when Iran, Iraq, Kuwait, fair return on their capital to those investing Dialogues – either not noticing or not has allowed it to survive.” Saudi Arabia and Venezuela joined in the .” caring that this results in the acronym During the past 56 years, OPEC’s together to coordinate energy policy. The average person might simplify OPEC-REDs. Bahree said the outreach member countries have sometimes They later were joined by Qatar (1961), that to say OPEC tries to set and meet effort is something new for OPEC, but cooperated and sometimes refused to Indonesia (1962), Libya (1962), the United higher price targets for oil, but is willing added, “I think it’s a bigger change for cooperate. Sometimes they have literally Arab Emirates (1967), Algeria (1969); to increase production modestly to soften Russia.” been at war. At times they have set and Nigeria (1971), Ecuador (1973), Gabon markets when high oil prices threaten Looking back 40 years, in 1977 OPEC followed production quotas; many times (1975) and Angola (2007). consumption. produced two-thirds of the non-Communist they have cheated on them or ignored them. At first OPEC’s headquarters were in And those are exactly the two things world’s oil supply. Its share of total world Geneva, Switzerland, then in 1965 the OPEC has not been very good at doing, production has fallen, and now shale oil The Comeback Cartel organization moved its offices to Vienna, Bahree said. and other production in the United Austria, its home for more than 50 years. “They’ve had much less success in States has added a new twist. Columnists, bloggers and pundits wrote According to Article 2 of OPEC’s official curbing price increases when they’ve OPEC’s interest in analyzing the global OPEC off for dead as oil prices plummeted operating statute, the organization has risen for supply and demand reasons,” he energy market and working with other during the past three years and the three aims: noted. “And they’re not so successful in producers as it moves into the future organization’s members looked powerless. undoubtedly reflects that lessened clout Texas Congressman Joe Barton signaled in manipulating total crude production. the demise of OPEC to CNN in February Bahree sees this as a plus. 2016. “Given that OPEC has a lot of data from “What we’ve done by repealing the its members, I think one of the positive export ban is put the U.S. producer in developments has been their emphasis on the driver’s seat. Quite frankly OPEC and trying to understand the industry better,” Russia literally don’t know what to do. So he said. we’ve killed OPEC. It’s gone,” CNN quoted Bahree noted that in recent years, Barton as saying. OPEC has also tried to have more “So should markets now take OPEC communication with consumers, and seriously? Can action by the cartel sustain has undertaken a continuous increase in higher crude prices over the long term? communications in general. Probably not. Like a desert mirage, the “One aspect of that is that the past image of an OPEC resurrection vanishes six months have shown how well OPEC when approached,” wrote Emile Simpson has managed its public relations,” he last October in Foreign Policy. observed. “They’ve learned how to Then OPEC re-emerged in dramatic manage market expectations better.” fashion. It announced an agreement for “It’s soft gains there, but gains broad production cutbacks to lift crude oil nonetheless,” he said. prices and, more importantly, to reduce the world’s chronic surplus of crude stores. See Saudi Arabia, page 13 10 FEBRUARY 2017 WWW.AAPG.ORG MIDDLE EAST REVIEW OPEC Agreement Raises Hope, Skepticism By DAVID BROWN, EXPLORER Correspondent

ere’s a three-word graduate course go right back to drilling. in economics: supply and demand. That camp of opinion doubted if OPEC H When OPEC announced a six- could swing production low enough to month agreement to curb production and stabilize and then increase crude oil reduce the world’s crude-supply surplus, prices over the long haul. responses came from two main camps. “Whilst this is the first agreement to The first group included those who cut output in eight years, the deal will believed the move would materially affect be hard to police. It is also based on the global supply of crude oil. the expectation that major non-OPEC “This deal is significant. It sends a countries such as Russia will voluntarily very strong message to the market and it reduce their output,” said Jayesh should help the market find a balance,” Parmar, partner in the Baringa Partners said Simon Flowers, chief analyst for consultancy in London. Wood Mackenzie in Edinburgh. Parmar said oil prices could rise “It remains to be seen how well they sharply in the short-term, “but I don’t stick to the plan, but if OPEC hadn’t expect the price momentum to be come to an agreement the probability sustained.” is that oil prices would have fallen to The critics also noted that an $40 per barrel, perhaps even lower,” he understanding-in-principle to cut added. production was a long way from a full Flowers has a cautiously optimistic commitment by participating OPEC outlook for the price of crude oil this year. OPEC ministers and officials gather for the recent production agreement. members. “We expect it to trade at an average “The first thing that has to happen is of $55-60 in 2017, which shows that the reduce crude output by 139,000 barrels OPEC members Libya and Nigeria that they have to get an agreement,” said agreement is very significant indeed. a day and Kuwait by 131,000 barrels a weren’t included in the reduction plans; Michelle Foss, chief energy analyst for However, this does depend on OPEC day. Indonesia was recalcitrant and its the Bureau of Economic Geology at the being very careful to meet the terms of In a concession to Iran, where OPEC membership was suspended. All University of Texas (UT) at Austin. the agreement,” he said. production had been constrained by together, 10 OPEC oil ministers promised Foss said the world is “just sloshing OPEC members agreed to reduce oil international sanctions for a decade, the that their countries would reduce crude in product,” a situation exacerbated by production by almost 1.2 million barrels country would be allowed to increase oil output. the amount of crude oil now coming from a day. Saudi Arabia said it would limit its production slightly to about 3.8 million nontraditional sources. daily oil production to just over 10 million barrels a day. Easier Said Than Done “We’ve got a lot of barrels coming into barrels – a cut of around 486,000 barrels Additionally, 11 non-OPEC countries the market in the first half of 2017,” she a day from recent levels. later agreed to reduce output by 558,000 Skeptics quickly observed that a said. “I’ve suggested at UT that we can Iraq, now the second-largest producer barrels a day. Russia pledged the lot of people would have to keep their expect oil in the $40s all year.” in OPEC, agreed to cut 210,000 barrels largest reduction, saying it would try to promises in order to make a meaningful North American production is another a day from October 2016 levels. The cut production by as much as 300,000 dent in the world’s oil supply. And United Arab Emirates consented to barrels a day. producers in the United States are free to See Optimistic, page 14

WWW.AAPG.ORG FEBRUARY 2017 11 MIDDLE EAST REVIEW Eastern Mediterranean Becoming a Hot Spot By DAVID BROWN, EXPLORER Correspondent

he eastern Mediterranean Sea could “A negative outcome for any of these become the hottest offshore play in questions could lead to the prospect Tthe Middle East area, depending on being a dry hole, or an uneconomic the outcome of a key exploration attempt discovery,” he noted. later this year. This Mediterranean offshore expanse The Economic Question is a Miocene playground with a large sandbox and carbonate reservoir And economics will be key to potential, as evidenced by ’s success. Another giant field in the area supergiant Zohr field offshore Egypt, a is Noble Energy Inc.’s Leviathan gas field 2015 discovery. in the Levant Basin offshore Israel, just Now Total plans a 2017 exploration now being sanctioned for commercial well on deepwater Block 11 offshore production expected by the end of 2019. Cyprus, to the north of and contiguous to “The Eastern Mediterranean is a Zohr’s Egyptian Shorouk offshore block. complex jigsaw of new It’s the first time in the region that a chasing growing gas markets. A large carbonate rather than a sand reservoir discovery in Total’s Block 11 would be has been targeted, according to Graham in direct competition with Leviathan and Bliss, senior director of plays and basins other large fields in the area,” Bliss said. research for IHS Markit in London, “For this reason a range of gas and lead author of an analysis series market opportunities is important for examining upstream energy competition new supply in the region. These markets in the eastern Mediterranean. could be Egypt, Turkey, Greece or the “As it relates to Block 11, we assume rest of Europe. Widening the breadth that Total will not merely be drilling the of marketing opportunities is as much northerly margin of Zohr field, but that a political issue as it is one of pipeline they are testing a genuinely independent of the most critical wells drilled globally so, are they the same carbonate reef technology – the market potential drives prospect. In addition, it is our initial in 2017 for the E&P industry, especially buildup facies as those found in the Zohr investment,” he added. assumption that there is no problem with given the slowdown in exploration drilling discovery? For exploration to progress, Bliss said source rock, and if a discovery is found, worldwide.” u “Was the subsidence rate of the commercialization opportunities must be it will be gas,” Bliss said. Bliss said he has not seen any Eratosthenes High in Block 11 such clarified and political hurdles resolved The IHS Markit analysis also pointed prospect data for the well, but “I would that it enabled a carbonate reef to build to prop up investor confidence, and to to some possibility of oil potential in a guess that this is a moderate to high- significant thickness? minimize both business and operational deeper but unproven Cretaceous target risk prospect. However, before we can u “If present, do these carbonates risk. on the Cypriot block. adequately begin to assess the risk level, have the same diagenetic history as in “Without such market opportunities, Projected spud date for the Total there are a number of key questions that Zohr and, as such, would they provide several existing and (potential) future exploration well is now in May, although will need to be addressed: the same very high-quality reservoir, the project has already gone through u “Do carbonates extend along the enabling among other things, a minimum one delay. IHS Markit considers it “one Eratosthenes High into Block 11? If number of development wells? Continued on next page

12 FEBRUARY 2017 WWW.AAPG.ORG Continued from previous page interest. One problem for newcomers, however, is access to acreage,” he are countries acting together for their own noted. Saudi Arabia interest. If we take OPEC overall, it’s not discoveries in the area will become Most of the attractive offshore acreage from page 10 joined together by much of anything other stranded,” he said. in Israel, Egypt and now Cyprus is taken than oil,” Bahree observed. Eni caught the world’s attention two by established players, in many cases Saudi Arabia in the Driver’s Seat “Essentially you have Saudi Arabia years ago with the Zohr discovery, which either majors or large independents, as the key enforcer or leader, just de reportedly has in-place resources of 32 Bliss said. Big prospectors in the region If there’s a feeling that OPEC exists facto, because it is the one with excess trillion cubic feet (Tcf) of dry gas and include Eni, Shell, BP, Total, ExxonMobil because it has to, that it represents a capacity,” he said. “A recurring theme possible recoverable resources of about and . necessary producers’ lever on output and of OPEC is Saudi Arabia’s massive 20 Tcf. “The extent and speed of future prices, Bahree disagrees. He noted that production and its ability to vary it, which The company has drilled five wells offshore exploration activity here will be various other entities, from used to be considerable.” on the Zohr structure to date, confirming driven by these established players. to the Texas Railroad Commission in the As long as Saudi Arabia remains a large gas accumulation and the In addition, exploration enthusiasm will United States to the oil majors at a later OPEC’s lynchpin, there’s a reason to existence of a very high-quality reservoir, also be driven by whether a range of date, all have had an effect in the market believe that a somewhat dysfunctional according to IHS Markit. Zohr Field monetization opportunities exists or not. at one time or another. organization could continue to exist and Phase 1 is due to come on-stream this “So the eastern Mediterranean might “I don’t know that OPEC needs to function for the next 100 years. year. be considered a rather unique spot exist. If it didn’t exist, something else Why not? “The existence of a carbonate reef compared to other areas around the would,” he said. “The day Saudi Arabia says, play, which Zohr has proven to be, is world, and exploration enthusiasm there Even though OPEC’s members have ‘We don’t want to be part of OPEC,’ very different from the turbidite sand-play may not be reflected in other places,” he developed differing national goals and for whatever reason, that would be EXPLORER discoveries in the Israeli Levantine and said. sometimes-conflicting strategies, “these different,” Bahree said. EXPLORER the Egyptian Nile Delta Basin,” Bliss said. “If the Zohr carbonate play extends northward into Total’s Block 11, then the potential for a significant discovery in Block 11 exists, resulting in profound implications for the region,” he observed. Current conditions favor Egypt as the regional commercialization hub for all of the eastern Mediterranean, Bliss said. He sees a likely gas price of between $4-6 per thousand cubic feet for a Block 11- type development if gas is exported to Egypt. “This is due to both its domestic market potential and its established liquefaction capacity, which enables export of incoming gas. Depending on the outcome of Total’s program in Block 11, 2017 could be a significant year for the region, and we could see competition and investment really begin to heat up,” Bliss said.

Exploration Outlook

Geopolitics play a part also, with Cyprus split into pro-Turkish and pro- Greek factions, although “the regional geopolitical landscape is not static,” he observed. Turkey’s interest in reducing reliance on Russian gas imports and in importing both Israeli and Cypriot gas could provide an important boost to the island’s reunification discussions. Recent meetings in Geneva marked one of the few times since 1974 that Turkish and Greek Cypriots sat down together at the negotiating table, he noted. “We at IHS Markit envision a large discovery in Total’s Block 11, though not necessarily as large as Eni’s Zohr discovery, to be economically viable with the sort of gas price expected for Zohr,” Bliss said. “Such an economically viable discovery would certainly encourage further exploration within the eastern Mediterranean.” That exploration outlook is directly tied to product economics. An important factor could be the establishment of a range of market monetization possibilities for a Block 11 discovery. “It is the reality of this wider opportunity for monetization options that will encourage further exploration in what has the potential to be an increasingly tight region in terms of new gas supply, from Israel, further Egypt and now Cyprus, but also, in the longer term, from Lebanon,” he said. Bliss said the eastern Mediterranean “is undoubtedly a hot spot at present.” “The breadth of play types, both new and well-established, that exist in the area and the range of potential markets must encourage further exploration WWW.AAPG.ORG FEBRUARY 2017 13 market forces in energy consumption. The Known Unknown Optimistic Subsidies “It started in the Group of 20, which from page 11 from page 8 is a combination of developed and One trend with an uncertain effect is developing countries, to take on the the continuing introduction of technological important piece of the world crude- A tenet in the oil and gas industry subject of subsidization,” Caruso said. advances in developing countries. supply equation and independent once held that “everyone in China “The other area where there is a lot “Whenever you’re investing in producers “have no choice but to and India will want a car,” leading to of subsidization is in the producing technology for the long term, the results monetize the acreage they’re leasing. a boom in fuel demand and energy countries. Gasoline is very cheap in are unpredictable. Look at our own case in That’s the situation in the United States consumption. Now even in developed Saudi Arabia, in Iran, Iraq.” the U.S. No one thought the United States and it’s not easy to fix,” Foss said. countries, a shift to urban living has Governments might favor the idea of would be exporting crude oil 10 years Global oil supply is a hard thing lessened the demand for private reduced energy-consumption subsidies, ago,” Smith said. to control, she noted. She’s skeptical vehicles. but actions that lead to higher energy Caruso believes technology will be a that OPEC can stick to an equitable prices often generate social unrest. critical factor in allowing developing countries agreement without members cheating, u Reduced subsidies: In December, the Mexican to continue growing economically while and she’s skeptical that the rest of the Energy consumption is subsidized in government announced it would reducing their ratio of energy use to output world will also consent to hold down a number of developing countries. Some increase gasoline prices, in some units. He said it’s “better to grow at three crude production. subsidize gasoline prices or hold prices cases by 20 percent. The immediate percent and become much more efficient.” “The third bit of skepticism is that all artificially low. India has a program of effect of the price hikes was rioting, “Technology has made a big difference in the new barrels that are scheduled to subsidizing diesel fuel for agricultural with four dead, at least 300 stores both the demand side and the supply side,” come into the market are actually going uses, Smith noted. Now there’s a trend ransacked and more than 700 people he said. “The key is going to be technological to come in, and that’s going to undermine

to reduce subsidies and introduce arrested, officials said. innovation, if we’re going to crack this code.” EXPLORER the agreement,” Foss said.

Optimistic Realists

As last year ended, a third group began to emerge in response to the supply reduction agreements. That camp assumed cheating on quotas would take place and reduction targets wouldn’t be met – but also, that there would be enough cuts to start whittling down the world’s crude surplus, leading to higher oil prices. “At this juncture, the OPEC output cut could swiftly tighten the supply and demand balance in the first half of 2017. The agreement may not be fully adhered to, but even at partial implementation, there would likely be steady implied stock draws during 2017,” said Ann- Louise Hittle, principal analyst for Wood Mackenzie. “In terms of implementation, (the OPEC agreement) is unlikely to be fully implemented. Even if it’s only implemented halfway, it’s going to materially affect production,” said Jim Burkhard, chief of oil market research for IHS Markit Ltd. What the agreement does is put a more stable floor underneath world oil prices, Burkhard noted. “It diminishes the size of the downsize risk. Without that deal, it looked like we were headed into another year of surplus production over demand,” he said. Burkhard agrees that U.S. production capacity continues to be “the elephant in the room right now.” He said the industry’s cost structure has deflated remarkably over the past two years, lowering breakeven points for domestic producers. “It comes down to something simple: the oil price and the amount of financing available,” he said. “How much money is flowing to West Texas and Oklahoma? We know there are lots of prospects that can be drilled.” Based on recent experience, independents can be expected to boost drilling and output when U.S. crude prices exceed $50. Neal Anderson, Wood Mackenzie president, said “it’s challenging (for them) until oil approaches $50, and then they cautiously go back.” In regard to the question of whether or not the production-reduction agreements will lift oil prices during the remainder of 2017, the consensus opinion appears to be “yes,” “no” and “maybe.” How will OPEC’s actions affect oil prices and industry activity over the next 12 months? We’ll know for sure in about a year. In the meantime, keep an eye on

crude oil supply and demand. EXPLORER 14 FEBRUARY 2017 WWW.AAPG.ORG Headline Here Subhead Here and Here BY AUTHOR NAME XXXXXYYYYZZZZ

WWW.AAPG.ORG FEBRUARY 2017 15 16 FEBRUARY 2017 WWW.AAPG.ORG WWW.AAPG.ORG FEBRUARY 2017 Headline Here Subhead Here and Here BY AUTHOR NAME XXXXXYYYYZZZZ

FEBRUARY 2017 WWW.AAPG.ORG WWW.AAPG.ORG FEBRUARY 2017 17 Historical Highlights is an ongoing EXPLORER series that celebrates the “eureka” moments of , the rise of key concepts, the discoveries that made a difference, the perseverance and ingenuity of our colleagues – and/or their luck! – through stories that emphasize the anecdotes, the good yarns and the human interest side of our E&P profession. If you have such a story – and who doesn’t? – and you’d like to share it with your fellow AAPG Members, contact Hans Krause at [email protected]. HISTORICALHIGHLIGHTS The Pioneers of Alberta By FRANCES J. HEIN

ildfires might be what come to mind when most people think W of northeastern Alberta, owing to recent news coverage of the record evacuation of about 88,000 people from the Fort McMurray area. Current events notwithstanding, however, northeastern Alberta is historically best known for its huge bitumen resources. Here the world’s largest bitumen accumulation occurs, with initial established reserves of 177 bbl, and remaining established reserves of 165 bbl. The largest bitumen deposit is in the area, which includes the Fort McMurray area. BUTLER

Early Exploration and Entrepreneurs

Although debatable, there is some evidence that “pre-contact” First Nations people used the heavy oil seeping from bitumen outcrops for waterproofing of Topographic map of Alberta with highlights Signed photograph of S.C. Ells, at Alfred von Hammerstein (from Alberta clothing, canoes and heating. showing the Athabasca, Cold Lake and Peace “McMurray Tar Sands,” 1928 (from Heritage, 2000). One of the first Europeans to see oil River oil sands deposits. Provincial Archives of Alberta A12023). sands was Chief Factor Henry Kelsey at the York Factory trading post on Hudson’s cable rig to drill for oil in the Devonian Later University, Government Alberta (Map 240) was published by Bay in Manitoba. In 1719, a Cree native limestone along the banks of the and Industry Work Green, Mellon and Carrigy (along with a guide named Wa-Pa-Su gave Kelsey Athabasca River, hoping to find “pure oil number of ARC reports and bulletins). This a sample of bituminous sand. Later in pools” beneath the degraded, oil-sands John A. Allan, a professor of geology became an updated baseline geology that, 1778, the notorious explorer Peter Pond outcrops. at the University of Alberta, published on together with Ells’ earlier work, provided was credited – along with charges of They never found oil, but did find the oil sands in early government reports the basis for much of the later geology, killing two people while dueling – for salt, so they set up a salt extraction on the mineral resources of Alberta. In exploration and development in the giving the first recorded description of the plant. Hot water was pumped down a 1929, Karl Clark at ARC (along with Sidney Athabasca oil sands area. Athabasca oil sands. vertical well to dissolve the subsurface Blair) patented his hot-water process for In 1848, the Scottish explorer Sir salt, which was then pumped up through extraction of bitumen from the oil sands. A Changed Game John Richardson did the first geological a producing well to the surface. The In 1930, Clark started producing bitumen assessment of oil sands along with his salt brine was then evaporated and at the plant, pumping up to Throughout the 1970s, most of the expedition in search of his fellow explorer transported by rail for use as table salt. 300 bpd. The product was used for oil sands industry was surface mining. Sir John Franklin, who had gone missing Another prominent promoter was R.C. paving roads in Edmonton and Jasper However, in Alberta, only 20 percent of the during his 1845 expedition in search of Fitzsimmons (founder of Bitumount), who and as roofing. In 1949, Clark made “The oil sands are in areas with thin overburden the Northwest Passage (the wreckage saw many uses for bitumen, including Athabasca Tar Sands” known to a world such that it can be surface-mined; the of his two ships wouldn’t be discovered pavement, fuels, roofing and medicine. audience by publishing a popular article remaining 80 percent is too deep and until as recently as September 2014 However, he had to shut down operations in Scientific American. That same year, a would need to be recovered by in-situ and September 2016, respectively, the at Bitumount due to insolvency and in commissioned detailed government report technologies. In 1978, Carrigy and Clement latter owing to local Inuit oral history and 1938 fled Canada to avoid his creditors. by Blair confirmed that bitumen recovery Bowman (founding chair of Alberta Oil knowledge). Max Ball was the founder of the from the oil sands could be profitable. Sands and Technology Research Authority, Richardson identified the principal Abasand plant. He graduated from the In 1947, Ned Gilbert, a junior and the or AOSTRA) heard about Roger Butler’s component of the oil sands as quartz Colorado School of Mines, where he only Calgary employee of Sun Oil (now work on thermal in-situ technologies. and correlated them to the Devonian studied engineering, then worked for the ), developed prospects in Butler developed his ideas while at Marcellus Shale of . From the U.S. Geological Survey, mapping coal in northeastern Alberta, obtaining the first two in the 1970s and later took late 1800s to early 1900s, the Canadian Wyoming. In 1930, Ball was in Edmonton oil sands permits in the Bitumount area and over as head of technical programming for Dominion Department of Mines sent field when the Alberta Research Council later leases in Suncor’s present Firebag AOSTRA. Butler is considered the “Father parties to drill and map the oil sands. (ARC) plant closed, and Ells convinced in-situ area. Gilbert heard a rumor that the of SAGD” (i.e. steam-assisted gravity This work was led by Sidney Ells, an him to prospect for oil sands on the Sun Oil head office in Philadelphia was drainage). At the time of early development, engineer who located and mapped all Horse River. Ball purchased the old planning “to get out of the oil sands leases.” industry considered SAGD a “boondoggle.” of the bituminous-sand outcrops, drilled equipment from the ARC plant, moved to As a very young junior he had the courage However, AOSTRA embraced the concept hundreds of shallow cores and took bulk Fort McMurray and started building the to write to the leadership team in 1951 with the building and running of the samples for testing. Ells’ work became Abasand plant in 1930 and completed it to persuade them to acquire more than AOSTRA Underground Test Facility (UTF) the key baseline study for all the following in 1936. Abasand produced more than 50,000 acres at a bargain price of $1.40/ northwest of Fort McMurray. The results detailed work in the area. 250 tons of oil sands per day and was acre. The estimated resource was 800 from UTF made a “game changer” for By the mid-1900s, an early oil sand only shut down after World War II when million barrels of bitumen. in-situ oil sands recovery, and a success industry included the Abasand plant demand for bitumen products declined. In 1957, Maurice Carrigy joined the story of technological breakthrough for within Fort McMurray and the Bitumount Ball later became director of the Oil and ARC and began working with the geology unconventional . plant about 90 kilometers north along the Gas Division of the U.S. Department of department. After decades of work, the In all cases, with the development of banks of the Athabasca River. the Interior. detailed bedrock geology of northeastern the oil sands industry in Alberta, it was One of the more colorful characters the collaboration of the entrepreneurs, at this time was Count Alfred von the government, university scientists Hammerstein. Originally born in Frances J. Hein is with the Alberta Geological Survey and industry-players that brought this Germany, he came to Canada for the (Alberta Energy Regulator) where she has worked on oil sands unconventional energy-industry to fruition. Klondike Gold Rush in the Yukon. He only for about 19 years. She was co-editor of the AAPG Studies in Without the entrepreneurial spirit and got as far as northern Alberta where he Geology 64 on oil sands and heavy oil; and in 2014, received dogged determination, this development saw the bituminous-sand outcrops along the Canadian Provincial and Territorial Geologists’ national would not have been as successful as the Athabasca River. He then moved award for her work on oil sands and other unconventionals. it is to today. It is the multidisciplinary back to Edmonton and in the summers approaches and collaboration, particularly he and his team drilled for oil beneath with the AOSTRA model, that make this a HEIN the “tar sands.” In 1906, they used a success story. EXPLORER 18 FEBRUARY 2017 WWW.AAPG.ORG Playmaker’s Forum to Explore the Delaware Basin By KELSY TAYLOR, EXPLORER News Editor he Delaware Basin Playmaker’s leases are still available. Forum, presented by the AAPG In a place where one acre can fetch as TDivision of Professional Affairs, will be much as $40,000, it’s surprising to discover held Feb. 22 in Midland, Texas. that companies are willing to pay the price. The forum will include presentations “The Delaware Basin is one of the given by leading experts from companies only places in the United States where who have been successfully operating in companies can drill, complete and produce the basin. A few of the presentations will be: at a relatively low price. In some cases, u John Polasek of operators are able to make money even at Corp., Oxy’s Interdisciplinary Method to $25 per bbl. Improve Well Performance and Achieve “With companies able to hedge at $50 Profitable Production Growth per barrel through the second quarter u Randall S. Miller of Core of 2018, it’s all about doing efficient Laboratories, Tight Oil Reservoir Targets in factory drilling and really understanding the Delaware Basin the reservoir. This involves very detailed u Sarah Rittenhouse and Joanna Fritz geological, geomechanical and of Devon Energy Corp., Generation of a geochemical studies as well as typical Regional 3-D Pore Pressure Model for the reservoir simulations. Economics are Wolfcamp Formation in the Delaware Basin, based on right around 1,900 Boe/d at New Mexico and Texas more than 70 percent oil. u Donald Burdick of Panther Energy “So, in an environment where most Company II, Building an Asset in experts do not expect to see oil prices Uncertain Times-The Panther Energy rise much in 2017, the Delaware Basin is a Delaware Basin Story perfect place to test just how low one can go in operating costs. The Delaware Basin is located in the The Delaware Basin has been heating up again as companies vie for remaining plots of land. “If you are one of the companies southwestern portion of the Permian Basin, that has invested heavily in the Delaware straddling Texas and New Mexico. “It’s a place where companies that acquisitions were announced. They Basin, you are going to need to learn from Susan Nash, AAPG’s director of have invested heavily in gaining expertise included WPX Energy’s acquisition of the successful operators. And, you’re innovation and emerging science/ in the latest techniques used in shale Panther Energy Permian holdings for $775 going to have to learn fast,” said Nash. technology, explained that it contains plays can have tremendous pay-off, as million in cash, Noble Energy’s acquisition The Delaware Basin Playmaker’s numerous vertical pay zones and new their knowledge allows them to effectively of Yates Petroleum for $2.5 billion and the Forum will be a great way to do so. underexplored resource and shale plays. In produce a complex stacked play that record-breaking ExxonMobil’s acquisition of “The quick, effective knowledge addition, all of the zones can be exploited combines conventional reservoirs with the Bass Family’s Permian assets for $5.6 transfer from the engineers and geologists effectively with pad drilling. resource plays,” said Nash. billion in stock,” she explained. who are doing the hands-on work in the During the downturn in the oil industry, Competition for sweet spots in the area Today, 105 active horizontal rigs sit in Delaware Basin is the goal of the one day many companies with operations and have been heating up and can be fierce, the Permian and the number is expected event.” infrastructure in the basin struggled but are she said. to increase as companies secure acreage To learn more about the forum, visit

beginning to find their footing once again. “In January alone, several massive while oil prices are still low and productive http://aapg.to/delplaymkr. EXPLORER

WWW.AAPG.ORG FEBRUARY 2017 19 The Geophysical Corner is a regular column in the EXPLORER, edited by Satinder Chopra, chief geophysicist for Arcis Seismic Solutions, TGS, Calgary, Canada, and a past AAPG-SEG Joint Distinguished Lecturer. GEOPHYSICALCORNER Enhancing Seismic Discontinuity Attributes with Creative Workflows By SATINDER CHOPRA and KURT J. MARFURT

eismic discontinuity attributes such displayed are shown in the insets. Notice as coherence and curvature are how the frequency spectrum shifts to Sroutinely applied to 3-D seismic the higher frequency side for the first data volumes to delineate faults or derivative data. The first derivative data fractures, channel and reef edges, and can be used as input to attributes such other geological features. Such attributes as coherence or curvature. If random are very helpful in interpretation, though noise has been previously suppressed by the quality of the attributes generated structure-oriented filtering, the resulting depends on the quality of the seismic attributes often exhibit greater detail. data in terms of coherent noise, 2. If increasing the contribution of incoherent noise and frequency content. higher frequencies helps the coherence Figure 1: Comparison of (a) the input seismic traces with (b) first derivative of the seismic traces in (a), Once the 3-D seismic data reaches image, perhaps eliminating the low and (c) the absolute value of the first derivative traces in (b) displayed on a magnified scale. Note, the the interpreter’s workstation, it is frequencies could help as well. We do rotation in the phase of the wavelets by 90 degrees in the first derivative display compared with the input presumed that the data have undergone seismic traces, as well as how the negative amplitudes are flipped as positive when the absolute values of optimal imaging and are free of Continued on next page the first derivative traces are computed. Data courtesy of Arcis Seismic Solutions, TGS, Calgary. processing artifacts such as multiples and over- and under-migration. We believe this to be true in most cases; and in those cases where it is not true, there is little the interpreter can do to correct the problem and the job becomes one of avoiding the interpretation of artifacts as geology. While the interpreter does not have the tools, expertise or time to reprocess seismic data, there are several steps that can be taken to precondition the data for subsequent attribute and impedance inversion analysis, some of which (such as structure-oriented filtering and trim statics) have been presented in this column over the last few years. One of the more valuable data conditioning tasks is spectral balancing, or even enhancement, of the seismic data. Both of these processes need to be carried out carefully, with improvements in well ties to the seismic data, with well data being a critical validation step. One of the processing strategies that may not be familiar to interpreters is to aggressively filter the data to facilitate a given process, but not to apply that filter in the final workflow. A classic example is to aggressively filter noise components to facilitate interactive velocity analysis. Once an accurate velocity analysis has been done, it is used to migrate the original (noise contaminated) rather than the filtered data, allowing migration to filter noise and enhance signal. We can do the same to precondition data for attribute analysis where we need to preserve edges, but not preserve amplitudes and phases.

Data Conditioning Workflow for Coherence

We describe the sequential steps in Figure 2: Vertical slices data conditioning workflow for coherence through the (a) seismic as follows: amplitude volume, (b) first 1. Assuming that the input seismic derivative run on the seismic data are preconditioned using structure- amplitude volume, (c) first oriented filtering at the very least, one derivative data in (b) band- can compute the first derivative in almost pass filtered with a low cut of any interpretation software package. The 40 Hz, and (d) absolute value derivative does two things – it multiplies of the band-pass filtered first each frequency component by the derivative data volume in (c). frequency, f, resulting in spectral “bluing,” Notice the somewhat higher

and it rotates the phase of the data by 90 resolution and detail on the degrees, so that the peaks and troughs display in (b), especially in the of the amplitudes are transformed into yellow highlighted portion. The zero crossings (figure 1b). In figure higher frequency look is again 2, we show a segment of a seismic more pronounced in the band- section from the preconditioned input pass filtered display in (c). seismic data volume (figure 2a), and an Finally, the discontinuities in equivalent section after computing the the data appear to be enhanced first derivative of this data (figure 2b). The on the absolute amplitude of average frequency spectra for the whole first derivative display. seismic volume and for the time window 20 FEBRUARY 2017 WWW.AAPG.ORG Kurt Marfurt is an AAPG Member and professor of geophysics at the University of Oklahoma.

Figure 3: (a) Time slices at t=1300 milliseconds through the energy-ratio coherence volumes computed from the (a) input seismic data shown in figure 1a, (b) the low-cut filtered first derivative of the input seismic data shown in figure 1c, and (c) the absolute value of the low-cut filtered first derivative of the input data shown in figure 1d. Notice the improved detail of the discontinuities seen in (b) as indicated with the yellow and cyan arrows but also in the yellow highlighted area. The display in (c) shows similar level of detail as in (b) but shows higher contrast between the low coherence faults and the high coherence background.

Continued from previous page We demonstrate the value of such “All the steps… can filtering by computing energy-ratio coherence attribute on the input, the so in figure 2c where we have applied a be quickly carried out data in step 2 (first derivative) and then low-cut 40 Hz filter to the results shown by an interpreter on a the data in step 3 (first derivative with in figure 2b, resulting in an image that workstation with the bandpass filter). Notice the improvement appears to be of higher frequency. in continuity and resolution of the 3. The previous two filters are linear. available interpretation coherence anomalies (arrows in figure We might further extend the apparent software package.” 3). All the steps mentioned earlier can frequency by taking the absolute value of CHOPRA MARFURT be quickly carried out by an interpreter each sample, or more simply, change all on a workstation with the available negative amplitude values to be positive. Conclusion subsequent impedance inversion or even interpretation software package. As seen in figure 2d we notice that the simple bright spot analysis. However, Like our processing analogy of faults are defined much better, and the The three processes above damage these three filters do not significantly velocity analysis, the interpreter now co- effect is seen equally well for structural or the true amplitude and phase of the alter the location of discontinuities and of renders the improved coherence volumes

stratigraphic discontinuities. data, and therefore cannot be used for stratigraphic configuration. with the original seismic data volume. EXPLORER

WWW.AAPG.ORG FEBRUARY 2017 21 THE NEXT 100 YEARS Geophysical Modeling for the Next Century By LOUISE S. DURHAM, EXPLORER Correspondent

t wasn’t until the mid-to-late 1990s that evaluation,” said senior geologist Stonnie geologists and geophysicists began Pollock at Fasken. Ito move beyond laboring only on their “The reason this has to take place respective turf. is we’re dealing with nanodarcy and As 3-D seismic gained prominence in microdarcy permeability rocks and the industry, the two professions realized dealing with rocks rich in TOC (total they needed each other, and the ensuing organic content),” Pollock noted. “But a synergy soon became routine. lot of that organic richness is immovable Geophysical data quickly became oil, or bitumen. invaluable to the geologist as a means to “Some of the advances we’ll see is create 3-D geological models to visualize how to better understand how much of aspects of the subsurface over sizeable those hydrocarbons are movable versus areas, in both working basins and frontier immovable,” he added. “We’re already areas. seeing some of that as some of our Today, model building expertise more experienced petrophysicists and has been refined significantly. Among geochemists are beginning to unlock innumerable applications, it’s now that.” becoming a must-have for horizontal Pollock also mentioned that there wells, which often are more complex than will likely be increasing technology in previously thought. And, in the century the realm of geochemical acquisition to come, ongoing advances in the tools and more advanced software and underlying technology will make it even computer modeling, and he emphasized more indispensable, faster and far less that nanotechnology will be a big expensive. A seismic line of impedance that has been converted to depth, showing the Wolfcamp B target part of the industry for modeling and Given the borderline-wild leasing in the Midland Basin. Graphics courtesy of Fasken Oil and Ranch Ltd. measurement in the future. activity currently occurring in the Permian This will meet some far-ranging Basin, where certain land prices zoomed needs. upward toward $40,000 per acre at one perforate every 100 to 200 feet or so, with Smart, or Caveman? “With horizontals, there needs to be time recently, it’s timely to take a look the idea being that the reservoir is the much more advanced mineralogical and at the role that models can play in the reservoir. But that’s a pricey undertaking, The experts at longtime industry petrophysical modeling to determine Permian drilling action. which increasingly is being considered player Fasken Oil and Ranch Ltd. in where to drill the laterals and where to The basin overall harbors a plethora not only unnecessary, but even a bit Midland, Texas have honed considerable initiate your completions because you of shale zones that ordinarily demand foolhardy. expertise in this region. have to frac all this type rock,” noted horizontal wellbores in order to give up In the Permian, the rocks range from “What I’ve seen in these tighter, Fasken geophysicist Ron Bianco. their usually voluminous hydrocarbon conventional sandstones all the way to low permeability rocks is advances in For so long, the lateral drilling volumes in the most efficient and cost- mudrocks and everything in between, petrophysical analysis, so over the next rationale was that the well is in the effective manner. often with many low permeability, tight decade I see us coming up with very It’s not unusual to drill a lateral and to interbedded zones. robust techniques for petrophysical Continued on next page

22 FEBRUARY 2017 WWW.AAPG.ORG This is a 3-D volume on the Middle Wolfcamp Shale created using seismic. Colors represent the probability of production. The well paths show the perforated intervals.

Continued from previous page model as it’s created. Winters joined in, emphasizing that modeling software is same pay zone for thousands of feet, so advancing dramatically, which is going to completions theoretically could occur help considerably. in the rock over the entire length of the “The reason the future is so exciting lateral. Pollock noted, however, that is because for the first time in our geologists and geophysicists can see industry, it seems like companies and changes occur in the lateral direction in individuals have the ability to purchase the target interval. fairly inexpensive computer capacity The practice of perforating at that’s finally met the technology we’ve predetermined, equally spaced intervals been pushing,” Bianco said. “Now you all along the lateral may soon be over, can buy computers with capacity to run according to Glenn Winters, chief huge neural network modeling looking at geophysicist at Fasken. all kinds of reservoir attributes, and do it “In the future, people are going to overnight or in a day instead of the three want to measure and model the best to four months it used to take. quality even in the lateral direction, and “I can change my model and we’ll see advances in this and more completely revamp all the reservoir selective fracturing,” Winters said. qualities overnight or in a few hours,” “You can call it smart versus caveman he said. “Now we all will be able to do completions,” he added. modeling in-house and put our own spin “Already, people are looking at their on it. seismic, looking at where they have “Modeling is the way of the future, digital logs and saying they’re going to and neural networking technology gets place these perfs only in zones they think better every day,” he noted. “I think that are the best,” Winters said. “That’s where statistical analysis is going to solve most the modeling and integration are going to of the problems we have in any of the come in.” basins where we have a high amount of data.” Finer Models The Human Factor Although there are tools to measure rock properties through the horizontal Still, caution is the buzzword. wellbore, they are pricey and can Pollock noted that a model is nothing significantly raise the mechanical but a theory without proof of hard risk. This mechanical impact explains evidence, indicating that uncertainty why there’s little logging acquisition in lurks wherever. horizontal wellbores. The Fasken team Maintaining geological meaning predicts there will be advances in that during modeling is key and is the most realm. formidable challenge in the process, “Our logging will get better, and according to Bianco. we’ll be able to integrate that with our The service companies clearly engineering production and our seismic are skilled with applying the data, but data,” Winters said. “Right now, we’re at Winters emphasized that things can be the beginning of trying to use seismic misunderstood unless the geoscientist(s) data to forecast where we think we’ll see is doing the work. better reservoir rocks. “You must be careful with the model “In the future, I see us using the as anyone with good computer software production we have and reintegrating can model anything,” he said. “You that in the forecasting with the logging must have a good geologic analog tools we have in order to come up with a and understand the geometry and the better and finer model – ‘finer’ meaning reservoir attributes of those intervals, or better lateral and vertical resolution,” he the model is meaningless.” commented. He mentioned for example that someone could interpret a carbonate Better Data Management debris flow extending for several miles, while another person might limit it to a Pollock added that better logging half mile. information used in combination with the “We can do things so quickly now, right technology can yield a gamma ray and as long as there’s good geological model showing clay or shale content. and geophysical understanding, I think With continuous logging, they could we’ll see huge improvements in earth use the information to change the models,” Winters added. EXPLORER WWW.AAPG.ORG FEBRUARY 2017 23 Policy Watch is a semi-regular column in the EXPLORER covering the legislation, regulation and politics pertaining to the science and profession of petroleum geology. POLICYWATCH The Mess is Part of the Magic By DAVID CURTISS, AAPG Executive Director ll eyes were drawn to Washington, “The past year has given me opportunity D.C. last month as the United States to see the U.S. government in action from Ainaugurated Donald J. Trump as its the inside, and I marvel. Success was 45th president. Hold your nose if you must, but hardly assured when the Founding Fathers It was a hard-fought and divisive gathered to declare independence from political season – one that has raised come into the sausage factory Britain, and yet their actions set in motion anxiety levels both in the United States and an experiment in self-governance that has abroad. It is now up to the new president and be part of the solution. proven remarkably resilient over the past and the Republican-controlled 115th 226 years. Far from smooth sailing, our Congress to get to work. CURTISS nation’s history is full of struggles, some of Confirming President Trump’s nominees which threatened to destroy the republic, for Cabinet-level and other senior committees reveals a notable diversity of morning. others that tore at the basic fabric of our government positions is a significant first opinions expressed by the nominees. I don’t say that to be flippant, but rather society. Through it all, though, Lincoln’s task facing the Senate. And, they’re hard The president, tweeting on Jan. 13, to provide some perspective. Our nation is admonition that our government was at work meeting privately with nominees, expressed his support: “All of my Cabinet governed by laws, written by Congress and and must remain ‘of the people, by the questioning them publicly in hearings and nominees are looking good and doing a signed by the president. people, and for the people’ and that such giving all of us a first look at how they would great job. I want them to be themselves and Yes, this issue of “legislating by executive government ‘shall not perish from the Earth’ manage their Cabinet agencies in service of express their own thoughts, not mine!” order” is real. But those executive orders provided a foundation that our elected the American people. Diversity is good. only last until the president who signed them leaders have not undermined. And if the president is able to harness leaves office. One of President Trump’s first Admittedly, in Washington it is Diversity is Good the talent of his Cabinet and cultivate a jobs upon taking office was to decide which especially easy to be swept away by productive working relationship with House of President Obama’s executive orders to an overly romanticized patriotism that President Trump is not a part of the Speaker Paul Ryan (R-Wis.) and Senate adopt. merely feeds the cynic’s view that it is all Republican establishment, nor does he Majority Leader Mitch McConnell (R-Ky.) Laws passed by Congress persist. They a sham. The reality, though, is that while present himself as such. This has caused there is a possibility of making significant are the law of the land. And if you’ve ever our system of government is far from much questioning in Washington and in progress. That’s what the president and been exposed to the legislative process, perfect, it works because the people are capitals around the world about what we congressional leaders have promised. you know it’s not easy to get them passed. involved. As citizens we too often abdicate can expect from his administration. Changing them is equally difficult. the responsibility of engaging in public His nominees to fill the Cabinet and A Nation of Laws “To retain respect for sausages and laws, discourse and debate, an essential element other senior posts include loyalists, political one must not watch them in the making,” is of good government, because it seems so opponents, former military officers and But what if that prospect frightens you? how Otto von Bismarck famously put it. mean spirited and nasty. And yet, how else business people. It’s a varied bunch, I have Republican friends, Democrat I’ve written before about my experience do you balance ideological extremes and ranging from Rex Tillerson, former friends and non-U.S. friends who are all as an American Geosciences Institute arrive at an acceptable solution? At times, chairman and CEO of ExxonMobil, and concerned about the direction the country (AGI) Congressional Science Fellow, now the whole operation does seem to land in Rep. Mike Pompeo (R-Kan.) to retired may be heading. The despondency named after AAPG past-president William the ditch, which might (ahem) characterize Marine Corps Gen. James Mattis and Gov. some of them felt on election night was Fisher. And in my final column for AGI’s the current situation in Washington. Nikki Haley (R-S.C.). incapacitating. Geotimes magazine in December 2002, I Listening to their testimonies to Senate Even so, the sun came up the next wrote the following: See Election, page 28

24 FEBRUARY 2017 WWW.AAPG.ORG Honoring the Pioneering Women of Geoscience By KELSY TAYLOR, EXPLORER News Editor

his year’s Annual Convention and She said the event brings attention Exhibition will feature a special “The women in our history deserve to an important aspect of the history of Tforum titled “Pioneering Women AAPG and of petroleum geology. in Petroleum Geology,” which will be to be remembered and honored. And “The women in our history deserve held April 1 in the George R. Brown if we know more about them, we can to be remembered and honored. And Convention Center in Houston. if we know more about them, we can The forum will celebrate the many appreciate their accomplishments for appreciate their accomplishments for the women who paved their way through the better and can learn from their better and can learn from their struggles history while building a foundation for struggles and their successes.” and their successes,” she said. women in geoscience today. GRIES To that end, Gries and fellow Robbie Gries, an organizer of the volunteers have been working on a event and member of the Professional women in the field, the managers, explained, to “encourage everyone to book, “Anomalies: Pioneering Women Women in Earth Sciences Special the first well site women and dress in an era while representing women in Petroleum Geology: 1917 to 2017.” Interest Group (PROWESS SIG), said micropaleontology pioneers, as well as from the early 1900s, women in WWII, It chronicles the lives of the women she feels that it’s important to share the the impact that World War II, the military women in the 1950s, the 1970s and the through memories that were shared by stories of these women, since so many and the years following the war had on ‘Dress For Success’ 1980s.” their family and friends. The book will be have been lost in history. the women. A “Celebration Wall” will be displayed released during the forum. The forum will include four panels In addition, a keynote presentation just outside the forum, in easy view of the The event is made possible by the presented by a variety of expert will be made over lunch and there will rest of the Convention. collaboration and support of AAPG’s speakers. Each will begin with a portion be plenty of opportunities for networking “The wall will be an awesome display PROWESS SIG, the Association of of a new documentary, titled “Rock during the event. of 100 of the earliest female petroleum Women Geoscientists and the Society Stars: Pioneering Women in Petroleum To add a little flare to the forum, a geologists, who overcame enormous of Exploration Geophysicists Women’s Geology,” followed by presentations and costume contest has also been planned. barriers and developed an amazing path Network Committee. discussion. AAPG’s Young Professionals Special for those who followed in their footsteps,” For more information about the forum,

The topics will focus on the earliest Interest Group developed the idea, Gries said Gries. visit http://aapg.to/ace2017100. EXPLORER

WWW.AAPG.ORG FEBRUARY 2017 25 FOUNDATIONUPDATE Frank Harrison Jr. Honored by the Foundation By TAMRA CAMPBELL, Administration Team Coordinator

ongtime AAPG Foundation supporter The members of the Company – Frank W. Harrison, In 1956 Harrison moved to Lafayette, and leader Frank Harrison Jr., Members of the Corporation president.” After giving thought where he accepted a position as the La founder of the group’s highly meet annually to keep abreast to the name and his outlook district geologist for Trans-Tex Drilling for successful Trustee Associates, is this of Foundation activities and about the oil and gas industry, a year before joining American Natural year’s recipient of the AAPG Foundation business. Harrison did indeed establish Gas production as head geologist. In Chairman’s Award. This lifelong Louisiana the Optimistic Oil Company, 1959, he began his successful career as This award, given in recognition of resident and Louisiana State where he serves as president. an independent and consulting geologist those who have made extraordinary University (LSU) graduate After he graduated from in south Louisiana. contributions (monetary or service) to (1950) served as president of LSU with a bachelor’s degree Harrison, an AAPG Honorary Member, the AAPG Foundation and who call AAPG from 1981-82. Harrison’s in petroleum geology, Harrison has served on numerous committees HARRISON JR. attention to the role and value of the optimism about the oil and gas served in the U.S. Army from since joining AAPG in 1954; his service Foundation, will be presented April 4 industry during his presidency prompted 1951-53. He then worked as a geologist as a Visiting Geoscientist, as well as at the Chairman’s Reception during the the Executive Committee members to for Union Producing Co. and Seaboard AAPG Annual Convention and Exhibition give him a sign that read “Optimistic Oil Oil Co. in New Orleans. Continued on next page in Houston. Harrison’s relationship with the Foundation began in 1978 when he MVSP Mission Briefing was invited by James E. Wilson to By HEATHER ANDERSON, MSVP Committee Chair become a founding member of the he mission of the AAPG Foundation’s has grown quickly, awarding scholarships continue to sustain and maintain financial Trustee Associates, a distinguished Paul and Deana Strunk Military just one year after its creation in 2014. support of the MVSP and other programs group of donors who provide support TVeterans Scholarship Program Over the past two years, the within the AAPG Foundation. for Foundation fundraising efforts and (MVSP) is that of sustainment. Foundation’s MVSP has distributed 20 AAPG and its member community have counsel and leadership to the Trustees. At its core, sustainment is the provision scholarships in the amount of $2,000- a strong history of sustainment, support Harrison, believing the Foundation of personnel, logistic and other support $4,000 to deserving veterans. Focusing and investment in the next generation of is essential to the future of AAPG, said required to maintain and prolong to support university-level veteran geoscientists. setting up the Trustee Associates was operations or combat until successful geoscience students, these scholarships No contribution is too small. In fact, among the most important decisions accomplishment. The MVSP likewise is in will provide necessary educational even a small donation can be made big made by the AAPG Foundation. Since the business of sustainment through the financial support to aid in veteran’s through employee charitable donation that time, he has called attention to the provision of highly qualified personnel to transition from rucksack to backpack. matching programs. Many employee Foundation through service as chairman industry by providing financial support to matching programs double or even triple for the group (2000) and sponsored more military veterans studying geoscience with Call to Arms individual contributions. than 14 new Trustee Associates. the goal to pursue a career in the oil and Our industry is in the midst of the In 1986, when the Foundation became gas industry. Oil and gas prices might be low, but “great crew change.” The impact of your an Oklahoma non-profit organization, Deana and Paul Strunk have boldly led financial need remains high. And now, contribution will be lasting as you support Harrison was appointed as a Regular this program’s charge. Through theirs and amid the downturn, AAPG Members and student veterans, the next generation of Member of the Members of the other generous contributions, the program non-member supporters are needed to leaders in our industry. EXPLORER Corporation, a seat he still holds.

26 FEBRUARY 2017 WWW.AAPG.ORG Foundation Contributions for December 2016

General Fund Distinguished Lecture Fund Jean K. Funkhouser Lee B. Backsen Willis R. Brown In honor of Robert O. Beringer Grant from Willis R. Brown Trust Richard K. Stoneburner George R. Bole through Fidelity Charitable Weimer Family Named Grant Claude E. Bolze Sarah Springer and Rusty Riese Robert J. and Ruth Weimer Louis C. Bortz In memory of Myron K. Horn Education Fund James A. Hartman Student and Donald R. Hembre Bruce and Carol Appelbaum Leadership Summit Fund John E. Chatfield William C. Burkett Chevron Matching Employee Fund Dr. and Mrs. Kenneth W. Ciriacks Jack P. Martin Matching gifts given by Robert L. Countryman Duane E. Meaux Richard Ball In memory of A.T. “Toby” Carleton In memory of Robert J. Meaux Henry C. Dean Jr. Rita Monahan Imperial Barrel Award Fund Byron and Connie Dyer Susan S. Nash Steven H. Brachman Mason L. Dykstra Gene E. Richards David R. Cook Weldon G. Frost In memory of E.T. Hill In honor of Kristen Wooden In memory of Harry O. Waller James F. Trickett David J. Entzminger James M. Funk Gordon K. Yahney David E. Lange Anonymous Robert E. and Betty K. Hilty Grants-in-Aid Fund Deana and Paul Strunk Military Charles Kerans Lee and Joanne Billingsley Veterans Scholarship Program In honor of Dr. William L. Fisher In honor of Stew Chuber Barry W. Acomb Hermann D. Lebit John S. Isby John and Camille Amoruso Steven R. Lockwood Anson Mark Norbert E. Cygan Jim and Carolyn McGhay In memory of Fred S. Jensen In honor of SOTEX Veterans Susan M. Morrice Jeffrey A. May and Karen A. Crossen Michael C. Fauquier Jerome N. Namy Teresa M. O’Neill Michael C. Forrest John F. Polasek In memory of Brian J. O’Neill Paul M. Guerino Eddie W. Rhea R.J. Bottjer and Sara L. Peyton In memory of Michael Spalo Sarah Springer and Rusty Riese Eastern Section Named Grant Paul and Tina Hoffman Kenton N. Riggs James McDonald Curtis C. Humphris Jr. John W. Robinson In honor of Dr. Paul Potter Don D. Irwin This image of Harrison is from the Winter 1997 cover story of Louisiana Business magazine Duane H. Sackett Fred A. and Jean C. Dix Named Grant Robert M. Mason In memory of B.W. Lynch Paul H. Dudley Jr. David G. Morse entitled, “For Frank Harrison the oil business is the ride of his life.” David C. Salter In memory of Fred Dix Arthur L. Paquett John J. Schneider Frederic A. Tietz Named Grant April L. Parsons Carlton and Patricia Sheffield Frederic A. Tietz H.W. “Dub” Peace II and Norma J. Peace Continued from previous page 90); and the Louisiana Oil & Gas Elliott M. Simonberg James E. Hooks Memorial Grant In memory of Jon Withrow Association (1977-78). Grant from Elliott Simonberg Fund Kent A. Bowker Henry S. Pettingill Philip H. Stark Jean G. Funkhouser Memorial Grant John and Kate Spaid a committee member for that program Harrison received the Edwin Edward J. Stockhausen David Funkhouser William and Pamela Stephens and the Distinguished Lecture program L. Drake Legendary Oilman Award in Stephen M. Strachan In memory of Jean Funkhouser Paul and Deana Strunk Phillip G.V. Tungeln John H. and Colleen Silcox Patrick M. Tolson allowed him to share his optimism about 2003, honoring a lifetime of achievement Michael and Lynn Wisda Named Grant the oil and gas industry and the need for within the oil and gas industry by The Robert and Edith Zinn John and Colleen Silcox E. F. Reid Scouting Fund Grant from Robert and Edith Zinn Lawrence W. Funkhouser Terri Duncan innovative thinking and sound geological Drake Foundation. Charitable Fund Named Grant Bryan Haws reasoning to develop drillable plays with Harrison is the 19th recipient of this Jean K. Funkhouser Amoruso Special Publications Fund In honor of L.W. Funkhouser L. Austin Weeks Memorial Fund future geoscientists. award. Past award honorees include John and Camille Amoruso Ian W. Moxon Martin and Arlyn Shields Harrison has given generously of his Michel T. Halbouty, L. Austin Weeks, Mruk Family Named Grant Geoscientist Without Borders Program Awards Fund April L. Parsons time – both personally and professionally James E. Wilson, Merrill W. Haas, Hugh Foundation Chairman Award Ohio Geological Society Named Grant L. Austin Weeks Undergraduate – by serving on boards and holding Looney, Lawrence W. Funkhouser, Fred William and Marilee Fisher James McDonald Grant Fund offices for many other organizations. His A. Dix Jr., Robert W. Esser, Eugene F. Robert R. Berg Outstanding Paul Danheim Nelson Named Grant Willis R. Brown Research Award Dietrich H. Welte Grant from Willis R. Brown Trust professional affiliations include service as “Bud” Reid, Jack C. Threet, John W. Josephine F. Berg Raymond C. Moore Memorial Grant through Fidelity Charitable Robert W. Scott, PhD president of the Gulf Coast Association Shelton, David Scott “Scotty” Holland, Digital Products Fund Roger W. Stoneburner Memorial Grant of Geological Societies (1980); Lafayette William E. Crain, Herbert G. Davis, Baylor University Doris and John Shelton The monthly list of AAPG Foundation contributions is based on information Geological Society (1961-62); the Richard A. Baile, Charles Weiner, William provided by the AAPG Foundation office.

American Geosciences Institute (1989- L. Fisher and Donald A. O’Nesky. EXPLORER

WWW.AAPG.ORG FEBRUARY 2017 27 “ProTracks” is an ongoing feature of the EXPLORER, offering news and information pertinent to getting started or getting better in your career. Keep up-to-date with the YPs on Facebook, Instagram, Twitter and LinkedIn. PROTRACKS

Field Trip 5 Field Trips Set for ACE he AAPG Annual Convention and Cutoff Formation and implications Exhibition will feature a variety of for Upper Bone Spring and Avalon Tfield trips that will bookend the Reservoirs; reservoir analogs of modern meeting, spanning from March 26 to Galveston Island and the Brazos River; April 8. Spindletop Hill; and the deepwater Anyone interested will have the deposits of the Pennsylvanian Ouachita The YP Meet and Greet is a yearly hit at ACE. opportunity to visit an exciting location Trough. while learning from leading experts in Registration is currently open for the the field. field trips. To register or learn more, visit Many of the trips are located near http://aapg.to/ace2017ft. Turning it to (Theme) 11: the Convention Center in Houston, while others will be out of state. Before the meeting, the field trips Highlighting YP Activities at ACE 2017 will include a look into unconventional By the Young Professionals Special Interest Group carbonate mud depositional environments and facies distribution; espite the fact that we’re still oil and gas industry is simultaneously Upper Cambrian microbial carbonate a couple months out from the recuperating from its version of the ‘Great mounds; fluvial and coastal clastic D100th Anniversary AAPG Annual Recession.’ The Great Crew Change is sedimentology and ichnology in Field Trip 9 Convention and Exhibition (ACE) in accelerating. Period. modern environments and core; and Houston, it’s never too early to start “We need to act now to properly equip meandering creek systems. A tour planning your meeting itinerary. the next generation of geoscientists to of the NASA Space Center is also With all the fantastic events and take on the responsibility of fulfilling the available. technical sessions planned, it’s easy to world’s future energy needs. This is the Following the meeting, field trips get lost in the program. However, those of goal of Theme 11: Future of Energy. will explore shelf to basin sequence us in the Young Professionals (YP) Special Today’s YPs will soon be tomorrow’s framework and facies architecture Interest Group (SIG) would like to help leaders! You will be leading AAPG into the of a Cretaceous carbonate ramp; you navigate your ACE experience by next 100 years and it is imperative that unconventional source rock reservoir telling you about a few events you should you are prepared for the task at hand. Field Trip 11 fields; stratigraphic framework for the definitely plan to attend. “Our forum, ‘Essential Tools for the On Sunday, April 2, come visit us in the Next Generation of Geoscientists,’ is George R. Brown Convention Center from a blueprint for future energy industry 2 to 3 p.m. for the YP Meet and Greet. architects as drawn by some of the This event is a perennial favorite among biggest names in the business. The meeting regulars and a definite must for invited speakers, which include three students and YPs attending their first former AAPG presidents, are all ACE. With the help of our experienced distinguished geoscientists in the oil professional volunteers and sponsor and gas industry. They will share talks Noble Energy, we’ll be fielding all of your which will emphasize the importance and industry questions and providing tips relevance of today’s YPs and students, and tricks that will make your meeting a particularly in light of the current industry success. Come participate in some of the downturn. We have the pleasure of best networking ACE has to offer. welcoming Chandler Wilhelm, Shell vice president and current DPA president, The Future of Energy as the keynote speaker for the event. This forum is the first of its kind and After you’ve started your meeting off your participation will make it even more on the right foot by attending the Meet special. See you in Houston.” and Greet, make sure to end on a high The Theme 11 Forum will be held in note by spending the afternoon in the the George R. Brown Convention Center joint AAPG and Division of Professional from 1:15 to 5:05 p.m. in Room 351, and Affairs (DPA) Theme 11 Forum aimed at abstracts are currently available online students and early-career professionals at ace.aapg.org. Both the YP Meet on Wednesday, April 5. and Greet and the Theme 11 Forum According to Forum co-chairs Tim are included with ACE registration, so Rynott and Stephanie Nwoko: register today. “We welcome all YPs and students to Want more information on the YP SIG? ACE 2017 Houston. Two very important Visit us online at aapg.org/youngpros timelines are converging, making this or find us on social media. Like us on one of the most important conventions Facebook at AAPG Young Professionals in history. AAPG is boldly moving into its Special Interest Group and follow us on

second century of existence, while the Twitter and Instagram @aapgypsig. EXPLORER

Election magic. Then grab your pen and write your congressional representative, get involved from page 24 and join the debate. Hold your nose if you must, but come into the sausage factory Ironically, this usually happens around and be part of the solution. Whether it is in Election Day. Time for the people to grab your local school, PTA, university, church, the reins and put things aright – that’s on a mountaintop, outcrop, or maybe even resilience. Congress, you’ve got something to offer So the next time you cringe watching and I look forward to hearing your story.” C-SPAN or cable news, remember that The mess is part of the magic. I still

in our republic the mess is part of the believe that. EXPLORER

28 FEBRUARY 2017 WWW.AAPG.ORG Editor’s note: “In Memory” listings are based on information received from the AAPG membership department. Age at time of death, when known, is listed. When the member’s date of death is unavailable, the person’s membership classification and anniversary date are listed. INMEMORY Julie LeFever Leaves Lasting Legacy By KELSY TAYLOR, EXPLORER News Editor

Julie LeFever was dedicated States as one of the best sources to geology and sharing her of information about the area. passion for it with others. In order to share her research Following her recent passing with others, she completed more in December, she will be than 100 publications about the remembered for the impact that Williston Basin alone. she made in the field. LeFever joined AAPG as a LeFever’s interest in geology student member in 1976. In 2015, was sparked by her surroundings she was presented the John while growing up in California. LeFEVER D. Haun Landmark Publication She studied the subject in Award from the Rocky Mountain college, earning her bachelor and master’s Section of AAPG. It honored her 1992 degrees in geology from California State paper entitled, “Does Bakken horizontal University Northridge. drilling imply a huge oil-reservoir base in In 1980, LeFever moved to North fractured shales?” Dakota and became involved with the To honor her many accomplishments North Dakota Geological Survey where during her career and the impact that she she served as a subsurface geologist. Her made for geology, LeFever was selected role expanded nine years later when she to receive AAPG’s 2017 Robert Berg was asked to oversee the Wilson M. Laird Outstanding Research Award. She will be Core and Sample Library in addition to her recognized for her achievement during this previous responsibilities. year’s Annual Convention and Exhibition in LeFever was dedicated to her role in Houston. the library, which serves as a valuable resource for students, researchers and Philip Brown, 87 professionals in the oil industry. It houses Calgary, Alberta, Nov. 11, 2016 more than 70 miles of core and 34,000 Donald Hattin, 87 boxes of drilling samples. LeFever was Bloomington, Ind., June 24, 2016 known to be able to point to a box and Elmer Herbaly, 94 describe its contents in detail. Littleton, Colo., Feb. 28, 2016 In 2013, the library was expanded – an Dan Hughes, 87 effort spearheaded by LeFever. When Beeville, Texas, Oct. 5, 2016 construction was complete, she was Elwin Peacock, 88 honored to find out that one of the new labs Houston, Texas, Dec. 10, 2016 in the building was named after her. Bernard Lynch, 90 During her career, LeFever became one Houston, Texas, June 3, 2016 of the top experts for the Bakken Formation Othal Plemmons, 95 and was known throughout the United Midland, Texas, Nov. 20, 2016 CLASSIFIEDADS

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the desire to learn. EMD u Where do mentors go for resources? from page 30 If we try to treat mentoring or teaching like a magical skill that some people are imbued AAPG Young Professionals Special Interest with and others aren’t, we won’t get very Group). There are nearly 800 people in that far. Just like teaching, writing or any other online community. (They also have Twitter, skill, mentoring requires practice. I would LinkedIn and Instagram.) advise you to leap right in, but be patient u Volunteers with nothing to do: Believe with yourself. Get feedback, read articles, it or not, these people do exist. Sometimes, talk openly with your mentee about what they’re just waiting to be asked. It’s hard, works for them. Talk to more experienced as a newcomer, to know how to get mentors. I have a personal library of involved until you do. Who do you ask? I’d references I’m happy to share. I’d also like encourage you to get out there and talk to gauge interest in starting a mentoring to your local geological societies, student SIG: a common space to share experience groups and YP meetups. Announce that and advice, vent on occasion and provide a you’re recruiting mentees and mentors. venue for making connections. Ask all the geologists you know. The YP So, get out there and find someone SIG is about to launch a call for mentees to help you out, and build the next 100

as well, so we can begin matching skills to years! EXPLORER WWW.AAPG.ORG FEBRUARY 2017 29 DIRECTOR’SCORNER Learn the Art of the Deal at NAPE By DAVID CURTISS ur primary focus here at AAPG is the There’s a big wide world out there to science of petroleum geology. explore, and this seminar offered by NAPE O The principal means by which and AIPN combined with the international we serve that focus are developing and How we conduct prospect exhibitors on the show floor delivering periodicals and organizing could take your business in an entirely events through which you have the ability ourselves, how we conduct new direction. to learn and share about new advances in the science and technology of finding and our business, matters. A General and Geologist producing oil and natural. But, while petroleum geology is CURTISS The NAPE partners have a strong an essential part of the oil and gas commitment to giving back, and an business, it alone is not sufficient. Many is an opportunity to network with others Energy, who will speak on the “changing important feature of the Summit each of our Members aren’t simply petroleum in the oil and gas business, discuss landscape of the Permian Basin.” February is the charity luncheon on geologists, but are also entrepreneurs and opportunities and structure business The conference will also feature a Thursday. Since 2009, the luncheons business people. In fact, if you look back deals that will lead to the finding and panel discussion on how the oil and gas have raised and donated millions of to AAPG’s founding, one of the principal production of new oil and gas reserves. industry can improve its communication dollars to support veterans’ charities. The objectives was to provide the public with At the heart of the Summit is the with the American public on the topics of partners cover the cost of the luncheon so a means of identifying professionals in exhibition floor. With nearly 15 acres energy, communications, a global energy that every dollar raised goes to support the oil business who hold themselves and of exhibition space and an anticipated outlook and exploration and production veterans. each other to ethical standards. 1,000 exhibitors, this is the place to meet forecast for the United States, as well as This year our speaker will be Gen. That’s why AAPG isn’t simply a attendees and look at deals on Thursday discussion on deal-making. Colin Powell, former U.S. secretary of scientific society, but a professional and Friday. If you are looking for a one-day state and, before that, chairman of the association of petroleum geologists. How Continuing and expanding on a investment in yourself as a business Joint Chiefs of Staff. Powell has had a long we conduct ourselves, how we conduct successful feature from last year, the professional, you should make the time to and distinguished career in public service, our business, matters. exhibition hall will include two theaters – attend the NAPE Business Conference. both in the military and civilian positions. This month, we will gather with fellow one for U.S. prospects and the other for On Tuesday, registrants for the He is also a recipient of the Presidential oil and gas professionals who share our non-U.S. prospects – where exhibitors will Business Conference will also have Medal of Freedom, the nation’s highest values to focus on an essential piece of be able to talk about the opportunity they the opportunity to participate in a civilian award. In fact, he’s received it the oil and gas business: the deal. brought to the show. seminar presented by the Association twice, the second time with distinction. The NAPE Summit, a partnership of of International Petroleum Negotiators Oh, and did I mention that his the American Association of Professional NAPE Business Conference (AIPN). The full-day seminar will be split undergraduate degree is in geology? Landmen, the Independent Petroleum in two sessions: the morning session I’m looking forward to hearing Gen. Association of America, AAPG and the On Wednesday, the NAPE Business will focus on the differences between oil Powell at the NAPE Summit, a can’t-miss Society of Exploration Geophysicists, is Conference will be an opportunity to hear and gas operations in the United States event for oil and gas professionals from scheduled for Feb. 15-17 in Houston, and executives and business experts talk and the rest of the world. The afternoon around the world. is dedicated to just that activity. about the oil and gas business, trends, session will look at how negotiations differ The largest event of its kind, bringing opportunities and challenges. between the United States and outside together entrepreneurs, scientists, This year, the headline speaker will of the country, examining the impact of landmen and financiers, the NAPE Summit be Bryan Sheffield, founder of Parsley culture on how you get to a deal.

DIVISIONSREPORT: EMD Mentoring Leaders for the Future of AAPG By ANNE DRAUCKER, EMD President, and JON ALLEN, Young Professionals Co-Chair s AAPG celebrates its 100th year, we progress. continue to work hard to ensure the Show people the ropes. This brings me to my challenge. Anext century will also be successful. This year, I’ve challenged every EMD Many excellent efforts and discussions Your workload will be leader to mentor one person. I’m not have been centered on growing Young lightened, you’ll make a new restricting the challenge to mentoring YPs Professionals (YP) membership in AAPG, friend and you might start only – just asking our officers to find one culminating in the formation of AAPG’s person who shows interest and bring them first Special Interest Group (SIG) in 2015. someone down the path of in to whatever they are already doing. I In addition to the ongoing work by the YP greater AAPG involvement ... asked, hoping a few would show interest, SIG, its leaders, members and champions DRAUCKER ALLEN and was overwhelmed at the response. in AAPG, we would like to expand the People were just waiting to be asked! involvement of the general membership to Instead of continuing that trend, we and gradually ease them in to leadership, Every single leader in EMD agreed to be our partners in this effort. would like to work with you, the AAPG setting them up for success? take on a mentee this year. We didn’t invent One of the more common questions we Membership, to establish a mentoring Well, several barriers exist: new positions or responsibilities, we are just hear from Members is: where will the next culture. u Most AAPG volunteer positions do asking people to help us out. Suddenly, our generation of leaders come from, and how I’ve been best able to explain the issue require a strong level of commitment. If pool of potential leaders doubled (probably, can I help? through analogy: Imagine you were the someone is going to volunteer, we don’t I haven’t actually counted). head of a department in a company and really have “starter positions.” That’s not So let’s apply this model to the previously An Alternative to Burnout you met a new hire. After chatting with this necessarily a bad thing, but we do need to listed barriers: person, you thought that they might have be aware of it, and of what we’re asking of u High levels of initial commitment: Don’t Many people have had negative some leadership potential. people. ask for this. You’ll be turned down and miss experiences when trying to recruit Do you then: u Those who seek new volunteers don’t out on potential new leaders. Instead, ask volunteers and officers from a population of A) Immediately offer them a supervisor know where they’re hiding. for small helps. Show people the ropes. people new to AAPG (students, YPs, new position, starting tomorrow? u Those who want to volunteer don’t Your workload will be lightened, you’ll make hires at their companies, etc.) This has been B) Refuse to let them adopt any know where they can go, especially if they a new friend and you might start someone an ongoing issue for the Energy Minerals responsibility, ever? want to give back, but only have a limited down the path of greater AAPG involvement Division (EMD) as well. We rely heavily on C) Work with them over time to develop amount of time or other resources. without asking for his or her firstborn child. the same core group of veteran volunteers, their potential, find their aptitudes and give u Mentors don’t always know where to u Where are all the potential volunteers? and have varied in our success in recruiting them the tools for success, so when they are go for resources. Building a new generation The YP SIG is working hard on this. Jon and retaining new core volunteers. ready to step into a supervisor position, they of leaders isn’t easy or simple, but it’s a skill says: They’re everywhere! If you don’t have Why is that? have a strong foundation? we can develop like any other. someone to mentor now, try contacting the Our tendency is to find people with I might have biased those choices. YP lead in your Section or Region. They potential or interest, then immediately load Obviously, you would do neither A nor B The Challenge know where to find them. Also, feel free to them down with “opportunity” to spend all in your business. “like” the YP Facebook page (search for their energy on our priorities, and we burn So, why then, do we do this in AAPG? Are these barriers surmountable? I’d them out. Why do we not seek out new volunteers argue that they are, and that we’re making See EMD, page 29 30 FEBRUARY 2017 WWW.AAPG.ORG Headline Here Subhead Here and Here BY AUTHOR NAME XXXXXYYYYZZZZ

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