Quarterly Is Published by the Flint Hills Refinery in Corpus Christi
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VOLUME XXXXVII NUMBER 1 AUGUST 2010 See Page 24 for information on the SIPESSIPES Guadalupe Mountain Fossil Guide QUQUARARTERLTERLYY www.sipes.org Society of Independent Professional Earth Scientists SIPES Foundation President’’s Column Positive Attitude Raffle Winners — See & Responses Page 17 AGI Geoscience Kenneth J. Huffman, #2936 A Defensive Against Oilfield Salaries Chart — New Orleans, Louisiana Gloom and Doom See Page 18 It is official. As of the by Russ Hensley, #2870 — Rockwall, Texas 2011 Convention end of the meeting in Advertising — See Colorado, I have suc- Note: This article is from the Fort Worth Page 25 ceeded Bill Finley as Chapter, and is the fifth in a new series submit- New SIPES president of the nation- ted by SIPES Members and Chapters. Foundation Films — al organization for 2010- Introduction See Page 27 2011. We all know that For decades, all of us in the oil and gas members of SIPES are industry have been cast as "villains of the Ken Huffman scientists who are inde- environment," supply conspirators hoard- pendents in the oil and ing for higher profits and likely directly gas industry. It is an organization that runs responsible for the high cost of fuel and all on the hard work of the national office and other forms of hydrocarbon products. The the volunteering of its membership at the In this issue: early appearance of this general govern- local levels. It has been my observation, mental and public attitude toward the oil while serving my term as director for the Industry Information 2 and gas industry can be traced to the 1973 New Orleans Chapter, that the past presi- oil embargo, the shortage of gasoline, the dents I have had the privilege to work Cornerstone Group 6 enactment of Windfall Profits Tax and the with (Bill Finley, Jack Naumann, George formation of the Department of Energy News of Members 7 Johnson, Mike Austin) exhibit not only sci- during the Carter administration. The entific expertise in their areas, but the growth of a negative view of the oil and Chapter News 8 human characteristic of wanting to leave gas industry has fluctuated depending on this a better place than they found it. the strength of the desire and action by the SIPES Gifts 11 Perhaps it is the nature of the organization government to nationally control energy. to attract such individuals, or it is the indi- From every single president since Richard Chapter Meeting Info. 13 viduals that uplift the organization. I am Nixon, we've heard noble promises and grateful to have served with them on the In Memoriam 14 inspirational rhetoric about the conserva- board over the past few years and hope I tion of fossil fuels and various goals to can carry on their high standards. Directory Corrections 18 achieve U.S. energy independence. The 47th Annual Meeting and Here we are a full career later, nearly four New Members 21 Convention was held at the Cheyenne decades post-embargo with the Depart- Mountain Resort in Colorado Springs. My ment of Energy employing tens of thou- Technology Corner 22 compliments to the Denver Chapter and sands, and spending billions, but our the Convention co-chairmen Mike Austin dependence on imported oil has not Foundation Donors 26 and Bill Goff for assembling a great slate of declined, now rising to almost 70%. The diverse and interesting speakers. Dr. number one supplier is our northern Board of Directors 28 Harrison Schmitt delivered a very enter- neighbor Canada followed in order by taining and informative presentation for Saudi Arabia, Mexico, Venezuela and the Foundation Seminar on his lunar Nigeria. Currently, Carol Browner, the (Continued on Page 16) (Continued on Page 19) National, State & Environmental Information The following reports on national and environmental issues record. Unfortunately our government's reaction is to will be presented to the SIPES Board of Directors at the board engage in a political blame-game and a full-fledged retreat meeting on October 5-6, 2010. Vice President of National Energy from offshore drilling. The end result is the loss of thou- Marc D. Maddox, authored the National Energy Report, and Sue sands if not hundreds of thousands of jobs along the Gulf Cluff submitted the Environmental Committee Report. The Coast, and an acceleration of the terrorist subsidy program views and opinions expressed are those of the authors. Some of the that sends U.S. dollars overseas to purchase the oil that we information presented is in the public domain and is available will need. As we go to press, Diamond Offshore from a variety of sources; other references were selected by the announced that its Ocean Endeavor deepwater rig is mov- authors, and are noted on their reports. ing from the Gulf of Mexico to Egyptian waters, with NATIONAL ENERGY Devon paying a $30 million early termination penalty. What we need is leadership in Washington that attacks the Even in a weak global economy the demand for oil is issue with optimism and energy, and responds to the spill expected to increase by 1.3% in 2010. The International with constructive solutions that clean up the mess, pre- Energy Agency predicts that daily global demand for oil in serve jobs, and keep domestic reserve replacement on 2010 will be 87.8 million barrels, with China being the pri- schedule. mary growth market. Following are some major issues that Frac fluid disclosure will continue to be the main point of are taking shape heading into the second half of the year. attack from anti-industry groups (see page 19). The enviros The Macondo blowout continues to dominate the head- are attacking on this issue, but the oil companies are head- lines. Fallout from this tragic event will shape U.S. energy ing it off by disclosing the chemicals used in fracing wells policy going forward. The saddest part of this sad tale is (see Range article in the Wall Street Journal on July 14). It that the industry is taking a beating after drilling thou- turns out that 98.5% of frac fluid is dihydrogen monoxide sands of wells offshore since the Santa Barbara incident - commonly referred to as H O. No matter that wells have forty-one years ago with a near-perfect environmental 2 been fraced for decades. Contamination of water wells and urban legends of exploding houses are being used to incite fear in the public to gain support for national regulation of fracing. The obstructionists request that a federal permit be SIPES Headquarters required for fracing any well. That ought to lower cost and 4925 Greenville Avenue - Suite 1106 streamline the process of drilling wells! Dallas, Texas 75206-4019 New EPA emission standards for CO2 were released on July 6. This amounts to an expansion of power of the fed- Telephone: 214-363-1780 Fax: 214-363-8195 eral government over local governing authorities. It is the http://www.sipes.org E-mail: [email protected] initial strike in an effort to vilify coal miners and the gen- eration of electricity by burning coal. Coal-fired plants sup- ply roughly 48% of the electricity generated in the U.S. Next year new standards will also be released for mercury levels. These are aimed directly at the coal industry as well. Executive Director . Diane Finstrom Activists are quite adept at "divide and conquer" tactics. Admin. Assistant . Katie Ruvalcaba They are actively working to form a coalition of energy and environmental interests to derail coal as a power Member Services . Ann Davis source. More comments on this to follow below. That the current administration in Washington is aggres- 2010-111 Board Meeting Dates sively expanding its power over the states and every October 5-6, 2010 . .Oklahoma City, OK aspect of daily life is unquestionable. This is manifest in the appointment of Al Armendariz as director of the Region 6 January 19-20, 2011 . .New Orleans, LA office of the Environmental Protection Agency. Region 6 encompasses five states including Texas and one-half of 2011 Annual Meeting Dates the nation's refining capacity. In May the EPA flexed its June 20-23 . .Jackson Hole, WY authority by pulling an air permit issued by the Texas Commission on Environmental Quality (TCEQ) for the The SIPES Quarterly is published by the Flint Hills refinery in Corpus Christi. This 300,000 barrel Society of Independent Professional Earth Scientists. per day refinery has been operating since 1952. Since 1981 more than $2.8 billion has been invested to keep the refin- Send your comments, letters, address changes and advertising ery compliant with TCEQ requirements. In doing this, EPA inquiries to the SIPES Headquarters in Dallas, Texas. has usurped Texas law. Armendariz further expanded EPA (Continued) 2 _______________________________________________________________________________SIPES QUARTERLY National, State & Environmental Information Continued authority on June 30, when final disapproval for Texas flex- The theme that pervaded the conference is that with the ible permit program was announced. The claim is that advent of shale gas plays, the United States has gone from Texas clean air quality standards do not meet national stan- a natural gas deficit to one of abundant supply. This is the dards. TCEQ is challenging that ruling in the federal court presumption that most of the speakers held, and especial- of appeals. Not only are thousands of refinery jobs at risk, ly the politicians. This perception is being reinforced by but the market into which producers sell their crude oil is the claims of public companies. For example, Encana being threatened. claims to have 23,000 shale gas locations to drill. Other Energy Epicenter Conference public companies made similar claims. If all are to be believed, there are over 100,000 shale gas locations inven- Two weeks after the SIPES Annual Meeting in Colorado toried to drill in the United States! Speakers were almost Springs, I returned to Colorado to attend the Colorado Oil giddy with the prospect of a 100-year natural gas supply, and Gas Association's Energy Epicenter conference in and the many possibilities this presents.