EXPLORER

2 JUNE 2016 WWW.AAPG.ORG Vol. 37, No. 6 June 2016 EXPLORER PRESIDENT’SCOLUMN Downturn, Restructure Made For Transformative Year BY JOHN HOGG

his is my last column as your be great. General Chair Jose Antonio president. Escalera, director of exploration for T It has been an honor to have the AAPG members are part of a clan, PEMEX, Victor Vega, president of the membership elect me and put your trust a family. AAPG as a clan is strong Latin American and Caribbean Region in my abilities to run our organization in and exploration business development our 99th year. and enduring; we have a history manager for Shell in Latin America, History may show my presidency to and their AAPG/SEG joint conference have been during the worst downturn of members helping members in committee have done a great job of in the industry in a hundred years, difficult times. pulling together a wonderful technical but for me, I would not have changed HOGG program and, again, I think we will return anything. We had many challenges as an to profitability for this convention. Executive Committee and the Directors (ICE), my presidential address was I hope will enable the 100th Executive and I have made significant changes directed to students and young Committee to move forward with less * * * to the Association, which included the professionals and included the slogan trepidation as they prepare a centennial departures of many staff – members of “Mind the Gap” – the “gap” being the budget. Very few members are afforded the AAPG family who had served the lack of professionals in our industry I also want to thank the AAPG staff. the opportunity to be a member of the Association with distinction. Now we have from Generation X (35-50 year old This has been the most difficult year Executive Committee, even fewer to be a new business model at headquarters professionals). We have the gap AAPG has faced in at least 30 years. president. that will reduce the cost of our operations because of the same circumstances Reorganization is never easy, and with It’s truly been a great experience. My in the difficult times still ahead. we’re seeing today: from 1986 to 1995, the combination of retirements and journey through AAPG’s leadership has very few geoscientists and engineers layoffs, we lost some great AAPG staff, all been an adventure with many turns and a Mind the Gap came into the industry. It was a difficult of whom were doing a good job. great many friends made along the way. time, no one was hired and good people It’s always most difficult for the staff Like many other past presidents, I don’t I traveled to most of the Regions and left the industry. that remain and I want to personally say plan to end my volunteering; there are Sections and met with many members, On the bright side, this gap will afford “thank you” to all of you – you’re critical to always more roles to fill in the Association students and young professionals during a long future for millennials who are our members and we greatly appreciate and I hope to see many of you again in my presidential year. looking to join the workforce in the next everything you do for AAPG! the future. The students and young professionals three to five years as the Baby Boomers There are still challenges ahead for To paraphrase what Past President are scared. This is their first downturn, are being early-retired; many won’t come AAPG. Conferences are our lifeblood for Pat Gratton said many years ago: AAPG there are too few jobs for too many recent back, and when prices stabilize the revenue generation and the Directors and members are part of a clan, a family. graduates, and they are watching young only place for industry to look for new staff are working hard to find innovative AAPG as a clan is strong and enduring; professionals being laid off at the same employees will be from the millennials. ways to reduce costs without changing we have a history of members helping time they are trying to join the workforce. the look and feel of our flagship ACE and members in difficult times. We, as an The commodity prices are affecting Looking Ahead ICE programs, nor increasing the cost of Association and as members of the clan, our members around the world. No one attendance for the membership. will get through the tough times and look is immune to low prices and associations I would very much like to thank my The Calgary Annual Convention and back and tell stories about the “difficult like AAPG – who rely on providing Executive Committee. They worked Exhibition in June will have a smaller teens” of this century, with less pain then products and services to our members hard, were collegial and professional exhibition footprint, but we are confident we feel today. by connecting the industry professionals and, at the same time, understood the that the Canadian geoscientists who and vendors to our members through gravity of the situation this year with an have waited 11 years for ACE to return conferences – are still facing difficult unprecedented budget deficit. will come out to support this event, times. No one panicked. We deliberated and our numbers are trending toward a In Barcelona at the spring 2016 many options and we have transformed marginally profitable event. International Conference and Exhibition the Association into a business, which The September Cancun ICE will

STAFF TABLEofCONTENTS REGULARDEPARTMENTS Managing Editor Salaries are steady, but there might Paul Potter’s geology professors Historical Highlights...... 24 Brian Ervin 06 be big changes in store, as hinted by 14 didn’t expect him to amount to [email protected] AAPG’s annual Salary Survey. much. Now, he adds AAPG’s highest Policy Watch...... 30 honor, the Sidney Powers Memorial Geophysical Corner...... 32 News Editor Oil states’ budgets are taking a Award, to an already award-studded Kelsy Taylor beating in the ongoing downturn, 08 career. ProTracks...... 34 [email protected] while oil cities like Tulsa and Houston benefit from diversified local Dick Stoneburner, who was Readers’ Forum...... 35 Art Direction/Production economies. 18 instrumental in the Eagle Ford shale Matt Randolph discovery, wins this year’s Norman Classified Ads...... 35 ­­[email protected] Scott Tinker, this year’s Michel T. H. Foster Outstanding Explorer 12 Halbouty Outstanding Leadership Award. Foundation Update...... 38 Graphics Support Award recipient, has little to say Ben McNett about the honor, but his In Memory...... 40 accomplishments speak for him. Advertising Coordinators Director’s Corner...... 42 Companies A-K Companies L-Z Mike Taylor Tracy Thompson Divisions Report (DEG)...... 42 1-918-630-5672 1-918-560-9414 [email protected] [email protected] ON THE COVER: Marble Canyon in Kootenay CORRESPONDENTS National park near Calgary. This area was shaped by fire, erosion and mountain building, and is the David Brown Louise H. Durham location of just one of the field Angela Evans trips offered at this year’s Annual Barry Friedman Convention. Photo by Santosh Surneni. 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, (918) 584-2555. e-mail address: [email protected]. Periodicals Postage Paid at Tulsa, OK and at additional mailing offices.POSTMASTER: Please send address changes to AAPG EXPLORER, 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 • E-mail: [email protected] Left: Paul Potter at Joulter Cays. Advertising rates: Contact Mike Taylor or Tracy Thompson, AAPG headquarters. Subscriptions: Contact Brian McBroom, AAPG headquarters. Unsolicited manuscripts, photographs and These small uninhabited islands 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 are north of Andros island in the products or services that may be cited, used or discussed in AAPG publications or in presentations at events associated with AAPG. Copyright 2016 by the American Association of 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 Bahamas. Photo courtesy of Potter. Vol. 37, No. 6 Vol. non-members: $75 for 12 issues; add $72 for airmail service.

WWW.AAPG.ORG JUNE 2016 3 EXPLORER AAPG Officer Election Results

ndependent geologist Charles Texplore, who assumes the AAPG Sternbach, president of Houston-based presidency on that date. IStar Creek Energy, has been voted Also new on the committee will be AAPG president-elect by the AAPG membership Honorary member Jim McGhay, with Tulsa- for the 2016-17 term. based Mid-Con Energy, who will assume the Sternbach, an AAPG Honorary chair of the AAPG House of Delegates. member, will serve as AAPG president in All will be joining current EC members 2017-18. who will be completing their two-year Also elected to the incoming AAPG STERNBACH SCHWARTZ HEWITT KATZ McGHAY terms – Vice president-Regions Peter Lloyd, Executive Committee were: honorary professor, Asia Pacific Training Hewitt, retired, Calgary, Canada; an Both the vice president-Sections and Ltd., Falicon, France; and Secretary Heather p Vice president-Sections – Daniel AAPG Honorary member, he is former treasurer serve two-year terms; the editor L. LaReau, senior geologist, Noble Energy, E. Schwartz, manager of strategic exploration manager-Gulf of Mexico for term is three years. Denver. business development, new ventures and Nexen Petroleum USA, Houston. The newly elected officers will Voting results indicated that nearly 32 innovation for Aera Energy, Bakersfield, p Editor – Barry J. Katz, senior begin their duties on July 1, serving on percent of the 14,545 eligible voters cast Calif. research consultant, Chevron, Houston, an Executive Committee headed by ballots in this year’s election, and nearly 64

p Treasurer – Martin “Marty” and an AAPG Honorary member. Paul Britt, president of Houston-based percent of the voting was done online. EXPLORER

Career Center Set for ACE

his month’s Annual Convention and Exhibition (ACE) in Calgary, T will once again include a Career Center to help match job seekers with potential employers. It’s hoped that the Center will spark new opportunities for attendees while providing a gathering place for conversation, networking and interviews. A large bulletin board will be the focal point of the Center. Job seekers are encouraged to bring their resumes to add to the board and employers are asked to post current job openings. An online space is also available to Members who would like to add their resume and information, and employers will have access to the listings. The space will be filled with tables, which employers will have the option to reserve in order to share information about their company, job openings and other opportunities that are available. Companies may reserve the tables for a half day, full day or all three days of ACE at no cost. Located near the entrance of the exhibition hall, the Center is available to the public. Registration for ACE is not necessary to utilize the resource.

The Center will be open the following days and times:

Monday, June 20, 8:30 a.m.-5 p.m. Tuesday, June 21, 8:30 a.m.-5 p.m. Wednesday, June 22, 8:30 a.m.-2 p.m.

For more information about the Career Center, to post jobs online or to reserve a table, please contact Vern

Stefanic at [email protected]. EXPLORER

4 JUNE 2016 WWW.AAPG.ORG EXPLORER

WWW.AAPG.ORG JUNE 2016 5 EXPLORER Salary Survey Points To Experience Gap By BRIAN ERVIN, EXPLORER Managing Editor

ore of the same” is gist of the 2015 Geological Salary Survey Average Salary By Degree very high salaries for the experienced annual AAPG salary survey, people,” said Ayling. YEARS YEARS “Mwhich is to say, with a couple EXPER HIGH AVERAGE LOW EXPER B.S. M.S. Ph.D. While that’s good news for geologists of notable exceptions, there have been 0-2 $ 117,300 $ 103,900 $ 87,000 0-2 $ 92,000 $ 104,400 $ 117,300 within that 20-24 year range, it might few changes in salaries since last year’s 3-5 140,000 110,900 91,900 3-5 89,000 109,100 140,000 not bode well for the industry at large, survey, owing to the ongoing downturn in 6-9 160,000 141,500 118,000 6-9 n/a 143,000 155,300 depending on how and if the industry the industry. 10-14 207,000 164,600 132,000 10-14 160,000 150,000 178,900 picks back up. But, there might be 15-19 235,000 176,600 130,000 15-19 n/a 200,300 155,000 “Will we just go back to large projects signs – however faint 20-24 350,000 264,700 206,000 20-24 198,900 250,200 238,000 – drilling horizontal wells with geosteering, – that the job market 25+ 425,000 230,600 180,000 25+ 209,000 221,600 248,000 and not worry about working geology? is on the verge of The guys that I’ve talked to have said some important, long- Historical Averages Salary there have been a lot of mistakes made term changes. YEARS by doing that, by not working the geology “The 2015 salary EXPER 2007 2008 2009 2010 2011 2012 2013 2014 on some of these horizontal plays well survey shows very 0-2 $ 82,800 $ 83,600 $ 87,600 $ 93,000 $ 98,700 $ 100,500 $ 103,400 $ 102,900 enough to understand what’s going on in little change in 3-5 107,800 108,000 105,600 102,300 109,400 101,000 114,500 114,900 the play, and where to drill and where not AYLING salaries,” said Mike 6- 9 121,100 118,400 121,700 127,800 137,300 127,800 145,400 148,300 to drill,” he said. Ayling of MLA Resources in Tulsa, who 10-14 119,800 121,900 123,500 139,100 153,400 147,000 147,500 165,600 “The question really becomes, ‘What has conducted the annual salary survey 15-19 151,600 139,400 150,800 151,000 193,600 190,300 179,200 189,000 kind of experience are the people with for AAPG since 1981. 20-24 167,400 176,800 180,300 191,000 199,200 211,600 219,500 234,300 less than 10 years experience gaining, He pointed out that geoscientists with 25+ 162,800 171,700 186,800 206,300 199,600 212,000 252,600 229,900 and how valuable will they be in the next 3-19 years’ experience saw a small drop 10 years?’ in salaries, which might be a reflection of jobs; people that have lost their jobs, I largely doing things like geosteering and In part it depends on which way the an adjustment from last year, when they think, have retired instead of looking for so forth, as opposed to being trained as industry goes. If the industry goes back saw little change. new jobs,” he said. prospectors,” he explained. “So it seems, to doing a lot of horizontal drilling in large However, Ayling cautioned to take for every prospector you lay off with 30 plays, then those guys are going to be those numbers with a grain of salt. Experience Needed years’ experience, you don’t have a five seen as valuable, because they know “I wouldn’t put a lot of stock in them, or ten-year guy with some experience to how to geosteer wells,” Ayling continued. because they’re not based on enough Consequently, like a great many step into those shoes when the industry “If the industry says, ‘No, we need to data to be highly significant. It probably other industry watchers (see this picks back up.” really work a lot of geology to find highly only represents a small drop,” he said. month’s President’s Column), he sees a That explains the other notable economic, smaller plays, then those Ayling explained that the amount of major skills gap resulting from current difference in this year’s survey: 20-24 guys really haven’t had the opportunity data available for the survey is a function conditions. year geologists saw an average salary to train the way guys with 20-30 years’ of how much hiring is going on, and “For a long time, there’s been a increase of $30,000. experience have trained.” 2015 didn’t see much hiring, particularly demographic gap because of the “It’s been obvious for a number of “It seems to me that, regardless of among younger geoscientists. downturn in the ‘70s, but now there’s also years that people who know what they’re what it does, the ability to do exploration “There’s been so much turmoil. People an experience gap, because a lot of the doing and are already well trained are geology has probably been harmed by

that have jobs have not been looking for younger people have been put to work, highly prized. You can see that in the the downturn,” he added. EXPLORER

6 JUNE 2016 WWW.AAPG.ORG EXPLORER

WWW.AAPG.ORG JUNE 2016 7 EXPLORER Oil States Suffer Brunt of Downturn By DAVID BROWN, EXPLORER Correspondent

he current downturn in the oil and gas region has lost 2,570 jobs in the oil and industry slammed into parts of the gas industry,” through the first quarter of TUnited States like a locomotive. 2016, he said. For many oil and gas-producing states, But Thorstenberg compared that to the impact was immediate and substantial. 5,750 jobs added through the Chamber’s But for U.S. cities hit by the industry’s economic development program, mostly troubles, it’s been more of a slow-motion in information technology, health care, train wreck. professional business services and Severance taxes and other taxes on oil transportation and aerospace. and gas production are typically collected “Those are actually from projects that at the state level, so falling oil and gas our economic development program prices immediately impact energy-state played a part in,” he said. “You’re still budgets. looking at full employment. At times in Alaska is heavily dependent on this region, unemployment has been 4 production prices and faces a budget percent or lower.” deficit of $3-4 billion, depending on where oil prices go. Houston Oklahoma had a budget shortfall estimated at $1.3 billion. North Dakota Unemployment rates in other energy- projected a gap of more than $1 billion in industry cities reflected the trend of its two-year budget cycle. moving higher, but only slightly so. Even Wyoming, with a smaller budget Houston has avoided much of the brunt of the downturn by having diversified its economy In March, according to the U.S. and less dependence on oil and gas taxes, since the last major downturn in the 1980s. Bureau of Labor Statistics, the Houston was planning to cut $300 million or more in region had an unemployment rate of 4.9 spending. diversified economy. We do have oil and in terms of throughput,” Seng observed. percent, Tulsa 4.6 percent, Oklahoma U.S. cities, by contrast, draw their gas companies, but not a big one,” said “The fact that we’re moving downstream City 3.9 percent and Dallas-Ft. Worth 3.8 revenue from some combination of sales Tom Seng, applied assistant professor of (in economic effect) is not a good thing.” percent. Unemployment in the greater taxes, property taxes, income taxes, energy business in the Collins College of Brien Thorstenberg is senior vice Denver area was only 3.3 percent. service charges and permit and use fees. Business at the University of Tulsa. president of economic development All of those were below the national A severe oil and gas slump has an Tulsa government is, however, for the Tulsa Regional Chamber of average of 5.1 percent. indirect effect on cities as tax revenues concerned about the potential loss Commerce. Its region encompasses 11 Diversifying away from reliance on the decline because of lower employment of Williams Companies Inc., a major counties in northeastern Oklahoma. energy industry has helped cities avoid levels and reduced spending. pipeline firm involved in a merger with He agrees with Seng that the serious problems in the current slump. In Dallas-based Energy Transfer Equity LP. economic impact on Tulsa from the 1980s, about 84 percent of Houston’s Former Oil Capital of the World Williams is a significant local employer the energy downturn has not been economy was dependent on or affected and community contributor. substantial, so far. In Tulsa, “you don’t see a big impact “We’re seeing oil and gas production “The energy industry certainly has yet because we are a much more cut back. That affects the midstream just lost some jobs. Since January 2015, the See Diversification, page 10

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WWW.AAPG.ORG JUNE 2016 9 EXPLORER Thorstenberg said the best hope for Diversification Tulsa’s future growth is still “number one, from page 8 the oil and gas industry rebounding. Really, just continuing the momentum we’ve been having.” by conditions in the energy sector. Today According to Bob Ball, economist for that number is 44 percent. the Chamber, oil and gas prices remain The Houston area had about 107,000 below recovery levels that would help jobs in the “Mining and Logging” sector cities grow. at the end of last year. The city probably “With regard to oil prices, the doesn’t need many lumberjacks, so those perception is that they will need to be are primarily upstream oil and gas jobs. in the mid-$50s to completely stabilize That comprises only about 3.5 percent things,” he said. of total employment in Houston, although That would mean an increase of 25 to jobs in other sectors can be affected by a 30 percent in Oklahoma crude pricing, slower energy economy. something not forecasted to occur for It’s a mistake to consider Houston some time. purely an oil-patch city, said Bill Gilmer, director of the Institute for Regional State Level Forecasting in the C. T. Bauer College of Business at the University of Houston. Meanwhile, several oil and gas “Houston is different from Midland or Tulsa is bracing for the potential loss of Williams Companies, but has otherwise been spared producing states continue to struggle. Odessa in the sense that there’s no oil any substantial impact from the downturn. Oklahoma has cut spending for production in Houston. Houston is an education, social services and engineering center,” he noted. “This was a brutal first quarter for being replaced in part by much lower- government employment. The state “The other thing that sets Houston American oil. It may have been the worst paying service industry jobs. seemed strangely unprepared for a apart is that it has a huge downstream quarter we’ve ever seen in the American “When we lose jobs in the oil and serious downturn in an industry known for component. We are a very large center oil and gas industry,” he said. gas industry we lose high-paying jobs. serious downturns. for oil and gas processing,” he said. Houston does have a timing problem, Obviously, the disposable income is going “In E&P companies it looked like they Lower production prices actually though. to be quite a bit less,” Seng said. had no Plan B. And the state had no Plan benefit the refining and petrochemical Gilmer said construction employment Tulsa is well-positioned to ride out an B. There were no contingency plans out industries. Lower natural gas prices from the petrochemical expansion will energy industry downturn, Thorstenberg there,” said Seng. have had a significant effect in Houston, begin to decline next year as projects are said, especially in quality of life. It is not an Also, about that runaway oil-bust according to Gilmer. completed. The city needs a reasonably expensive place to live and it’s attracting locomotive: “Those low gas prices kicked off an near-term rebound in oil and gas to millennials who often “find out where they “Nothing’s putting the brakes on yet, enormous boom in petrochemical activity, replace those jobs. want to live, then they find a job later.” let’s put it that way,” Seng noted. with between $50 billion and $60 billion Without that, “we’re talking about, “We have a lot of high-growth “The fundamental underpinnings of all in projects under construction,” he said. maybe, a mild recession in 2017,” Gilmer industries. A lot of it is where information this are still very bearish,” he said. “The He described Houston’s economy said. technology is embedded in an industry,” question will be, ‘How many people have as a “witch’s brew” of petrochemical he noted. left the industry and are willing to come expansion, strong medical and Apples and Oranges The city also supports business back?’ And what’s the cash position of aerospace sectors and an upstream incubators to “nurture small business these companies? Do they have the

energy industry that’s been all but One challenge for cities is that that can grow into significant corporate money to resume drilling?” EXPLORER flattened. relatively well-paid oil industry jobs are headquarters in the Tulsa region,” he noted.

10 JUNE 2016 WWW.AAPG.ORG EXPLORER

WWW.AAPG.ORG JUNE 2016 11 ANNUAL CONVENTION EXPLORER & EXHIBITION 2016 Michel T. Halbouty Outstanding Leadership Award Few Words, Many Accomplishments By BARRY FRIEDMAN, EXPLORER Correspondent cott W. Tinker, a man who has given Tinker is, in addition to being the lectures all over the world, in front of director of BEG, the official state geologist, Sthousands, was remarkably taciturn as well as a professor and acting associate when asked about being named the dean of research in the Jackson School 2016 recipient of the Michel T. Halbouty of Geosciences at the University of Texas, Outstanding Leadership Award. Austin. “I was stunned,” he said. Under his leadership at BEG – along And that was about all he said. with, he is quick to point out, “a remarkable Yes, the Scott Tinker who was past and dedicated staff” – the school has president of this very organization, the grown into a premier research organization Scott Tinker who has been invited to with programs in energy, the environment more than 50 countries to discuss energy and economics. Since 2000, the Bureau concerns, the Scott Tinker who is director has tripled in size from a $10 million to of the Bureau of Economic Geology at a $30 million annual grant organization. the University of Texas at Austin was Its staff has grown from 90 to 250 and its stunned about receiving an award he richly annual operating budget has grown from deserves and most probably thought he $8 million to $25 million. already had. Before becoming BEG’s eighth director “Yeah, I’m really not comfortable talking in 2000, Tinker worked in the oil and about myself. Can we talk about something gas industry for 17 years in research, else?” exploration and development before In a word, no. AAPG Past President Scott Tinker is this year’s Michel T. Halbouty Outstanding Leadership coming to the university. He has been a He then relents a little when asked to Award recipient. licensed professional geoscientist in Texas amplify his remarks. since 2003, and is the past president of “It is the highest honor of my career.” geosciences. Look at those names, look at their AAPG, the Association of American State If he’s surprised at this honor, which he It is AAPG’s second most distinguished individual accomplishments, look at the Geologists and the Gulf Coast Association truly seems to be, he is in the company of award, second to the Sidney Powers body of work of those who have it on their of Geological Societies. absolutely nobody, as he seems as tailor- Memorial Award, and it is only given to one mantle and one wonders: who deserves to He holds appointments on the National made for the Halbouty as it does for him. recipient per year. be in their company more than Tinker? Petroleum Council, the Interstate Oil and Past recipients include a list of all- Well, if you ask him, he’ll tell you. Gas Compact Commission, the Geology The Halbouty Award stars in the profession, including Alfredo “I think of those who have accomplished Foundation at Sandia National Lab, is a Eduardo Guzman (2015), Peter Robert more than I have.” trustee associate at Southwest Research The Michel T. Halbouty Outstanding Rose (2014), Stephen A. Sonnenberg Easier said than done. Institute and serves on several university, Leadership Award, as many already know, (2013), Robbie Rice Gries (2012), Daniel His bio and credentials, which run on private and professional boards. is given in recognition of outstanding and Lester Smith (2011) and Patrick John F. for pages, touch on every facet of the exceptional leadership in the petroleum Gratton (2010). profession. See Switch, page 16

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WWW.AAPG.ORG JUNE 2016 13 ANNUAL CONVENTION EXPLORER & EXHIBITION 2016

Paul Potter (back) with some Petrobas personnel at the company’s Abreu refinery in Lima in 1977. Potter with students at the University of Cincinnati. Sidney Powers Memorial Award Defying Expectations By DAVID BROWN, EXPLORER Correspondent

ot everyone can be an outstanding “It’s painful. When I sat on an airplane student of geology. going to Brazil I thought, ‘Should I be doing N AAPG Honorary member Paul “There’s no end to science. Science this?’ And I said to myself, ‘Paul Potter, Potter said his undergraduate work was if you don’t have the guts to do this, you mostly mediocre. is just like technology. M.K. Hubbard aren’t going to do anything,’” he recalled. “I got a lot of Cs, and a few As,” he said we were going to run out of oil, recalled. Lessons Learned And geology was Potter’s second but he forgot about technology.” choice of majors after he decided his Based on his extensive experience and attempt to earn a degree in physics wasn’t POTTER background in geology, Potter suggested working out. As he tells it, some of his three major lessons a professional geologist professors considered his geology work collaboration with Francis Pettijohn. to Cincinnati, he thought it would be boring should learn: lackluster, and couldn’t have expected him They produced “Paleocurrents and geologically. to go far in the profession. Basin Analysis” and “Atlas and Glossary “But there’s a lot of interesting geology u Learn how to work with people. Fast-forward to today: at the AAPG of Sedimentary Structures,” which became under every city,” he said. “Everyone in modern science has to Annual Convention and Exhibition (ACE) in standards. A later collaboration with In the 1990s, Potter began a seven-year do that, almost. And working with people Calgary, Canada in June, Potter will receive Pettijohn and Raymond Siever led to the period serving as an assistant professor of outside American culture – that’s very the Sidney Powers Memorial Award, the publication of “Sand and Sandstone” in geosciences at Brazilian universities. He important,” he said. Association’s most distinguished honor. 1972. cited his work in Brazil as an example of He feels his work in other countries and It will be the latest of numerous Potter’s area of geology fieldwork can an experience outside North America that his interest in languages other than English awards for the famed geologist and be described as “just about everywhere” prolonged his career, “made me a much have given him a better perspective on the educator, including the Pettijohn Award with a focus on 16 of the United States, wiser person and kept me interested.” profession. for Excellence in Sedimentology from the Saskatchewan and Ontario in Canada, “I had worked in Paris when I was “It’s made me more respectful of non- Society of Sedimentary Geologists, the the Bahamas, Mexico, Spain, France, very young. And I had been to the Americans,” Potter noted. Mather Medal for contributions to Ohio Italy, Algeria, Argentina, Brazil, Guayanas, Sahara Desert. I was interested in foreign “At various times I have given about geology studies, the Lifetime Achievement Venezuela, Colombia, Chile and Peru. languages,” he said. D-minus talks in French, Spanish and Award from the Professional Geologists of In his peripatetic professional career he He’d already traveled to Europe 13 Portuguese. That’s a learning experience, Indiana and the AAPG Eastern Section’s has constantly moved into new areas and times “but it was nothing like stepping off to see how other people express ideas,” he Outstanding Educator Award. bigger challenges. into Brazil,” he recalled. said. “After about 10 years, I get bored with “I went when I was 67 because if I’d ‘Just About Everywhere’ what I’m doing,” said Potter. had to put down my age as 70, I thought, u Learn other sciences. His studies of the geology of the greater ‘No one would give a job to a 70-year-old Potter earned his doctorate in geology Potter began his career as a geologist Cincinnati area provide an insight into the man,’” he said. from the University of Chicago but also with the Illinois Geological Society in 1952. forces that have shaped the city and its Not everyone can take advantage acquired a master’s degree in statistics from He then moved into academia, first as an landscape and infrastructure. of their youth at age 67 and start a new the University of Illinois. assistant professor at Indiana University Potter related that when he first moved chapter in their career. Geology today involves contributions and then progressing to professor and from numerous other scientific disciplines, eventually professor emeritus of geology so the geologist needs a broader view, he – his current title – at the University of said. While people often note the world’s Cincinnati. rapid change in technology, they sometimes He also began consulting in the overlook advances in science. petroleum industry in the 1950s and has “There’s no end to science,” Potter said. served as consultant or special instructor “Science is just like technology. M.K. with Shell, Schlumberger, Total, Petrobras Hubbard said we were going to run out and several other companies. of oil, but he forgot about technology,” he His research activities have included observed. work with the U.S. Department of Energy, the Gas Research Institute, the National u Learn how to write and communicate Geographic Society and many other well. organizations. “Learn to sell a subject in writing. Learn Along the way, he’s authored or co- to convince people in words and text,” authored a seemingly constant stream of Potter said. papers and seven influential books. Geologists should be able to write a The first two of those books were issued scientific paper “with minimal jargon.” in the early 1960s, when Potter received “That can be hard but that’s what you a Guggenheim Fellowship and moved to Johns Hopkins University, where he began Potter in the field at Lagoa Salgada, Brazil. See Service, page 16 14 JUNE 2016 WWW.AAPG.ORG EXPLORER

WWW.AAPG.ORG JUNE 2016 15 EXPLORER Switch of issue advocacy made commonplace by filmmakers Michael Moore, Davis from page 12 Guggenheim and the like.” Variety said the movie worked for “Sidestepping the usual eco-docu strategy, ‘Switch’ takes a Voice of Reason far less hysterical route,” and the Boston Globe said, specifically, about this year’s Tinker, who can be the smartest Halbouty Award winner, “Tinker comes guy in almost every room he’s in – and across as affable, reasonable, and he’s been in a lot of them throughout unfailingly curious.” the globe – was also the guiding light For a man so accomplished, Tinker in “Switch”, directed by Harry Lynch. genuinely seems uncomfortable putting Together, they made a documentary himself above the profession or the about worldwide energy issues, which industry – or even talking about himself. was palatable even to those without But he’s not shy about the work he does, an appetite for the subject, while also the gratitude toward those who have let disarming critics who expected an him do it or the future work that needs to industry puff piece. be done. The Washington Post said, “‘Switch’ “I guess maybe leaders don’t talk Tinker has achieved some international renown for the acclaimed documentary “Switch.” is refreshingly free of hot air. It’s almost about leadership much,” he said. “Too

shocking in the way it sidesteps the kind busy doing things!” EXPLORER Service from page 14

need to do,” he added.

u Give back to society. “I had never thought of that as a student until one day (when) I was out in the Adirondacks. I was with a European professor. He said to me, ‘Paul, you know one thing every geologist should do is give back to the community.’ That’s lost now,” Potter said. Geologists can work on a landslide study, lead sixth-graders on field trips, write popular articles about geology, serve as advisers to politicians or boards and give back in many other ways, Potter noted. “You have to give up something to do it. But it’s so easy to do,” he said. “Most of these things are not expensive, except in terms of time and gasoline.” What all the above ideas have in common is “getting outside your own envelope, and not just for a couple of weeks,” he observed.

Better Than Expected

Potter’s view of geology in contemporary higher education might help explain his own approach to academics and even his partial inattention as a young student. “Too many departments today want to follow the National Science Foundation model, which is to do high science,” he said. Potter described high science as “science that wants to use not field work, not subsurface geology, but they want to support people who do theoretical work in geology.” Potter obviously is more interested in geology that actually exists in the real world. His advice to beginning geologists is to always broaden your horizons. “One thing that never fails is to do things better and better and wider and wider. A lot of people have had successful careers that way,” he said. What would he have done if geology hadn’t worked out as a career? Economics or banking, definitely, Potter stated. “I would have liked to have been a banker. I think banking would have been interesting – I’ve always admired bankers,” he said. But geology did work out for him as a career, in a big way, and in a way others might not have guessed. “I would say that I’ve turned out a lot better than some of my professors would

have expected,” he said. EXPLORER

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WWW.AAPG.ORG JUNE 2016 17 ANNUAL CONVENTION EXPLORER & EXHIBITION 2016 Norman H. Foster Outstanding Explorer Award Exploring Opportunities and Breaking Ground By DAVID BROWN, EXPLORER Correspondent ick Stoneburner will forever be linked Wilson as a staff geologist in the Kansas Oil to two words. Company. D You might think those two words “Floyd sold one of his private companies are “exploration geologist” – which are in October 1985. And that put me out of a appropriate, but not necessarily the two job,” Stoneburner recalled. words that best honor his unique legacy. By the mid-’80s, the oil and gas industry This year, after a four-decade career was mired in a deep slump. Stoneburner as an exploration geologist, Stoneburner started his own independent company and will receive AAPG’s Norman H. Foster spent a decade bringing in revenue the best Outstanding Explorer Award. he could, including serving as a consultant The award is given in recognition of to other companies. distinguished and outstanding achievement “It was an interesting time, to say the in exploration by AAPG members who have least. I learned a lot. I learned a lot about shown a “consistent pattern of exploratory perseverance,” he said. success.” Despite the depth and duration of the Through the years, Stoneburner has current industry downturn, Stoneburner epitomized the exploration geologist who thinks the 1980s oil bust might have been deciphers regional geology, generates oil worse, and definitely was different from and gas plays and works at all levels of the today. industry, from staff geologist to independent “In my opinion it was a totally different operator to company executive. “My father was a geologist, so that State University. time. We weren’t very effective at oil and In reality, the two words Stoneburner’s certainly had a bearing on my career. But he Texas Oil and Gas was not a random gas exploration. Adding significant oil and name will always be most associated with in no way, shape or fashion led me into the choice for the aspiring explorationist. gas reserves to our country just wasn’t are “Eagle Ford.” business,” Stoneburner said. “It was common knowledge that if you happening,” he said. “That’s why I think He was instrumental in discovering After considering other academic went to work there, you’d be on the front line today is different, because we’re very the potential of the Eagle Ford shale options, he earned a degree in geology from day one, generating prospects,” he effective.” in southwest Texas, one of the largest from the University of Texas in 1976. said. While the ‘80s were challenging, accumulations of petroleum in the United Geology was a natural interest for him, Shortly afterward, Stoneburner Stoneburner also considered them States. and the university had close ties to the formed an association with investor and a productive time for professional petroleum industry. businessman Floyd Wilson, a relationship development. He was exposed to The Front Line “That program has a lot of opportunity to that would significantly affect his later operational challenges and learned about focus on petroleum geology, compared to career. Wilson bought small oil companies, the importance of capital investment, Born in New Orleans, Stoneburner spent some other programs,” he noted. developed them into larger companies, then landman activities and working with most of his early years in Houston. His After joining Texas Oil and Gas in sold them. partners. father Roger also worked as an exploration Wichita, Kan., Stoneburner went on to That selling habit also would affect geologist in the oil and gas industry. get his master’s degree from Wichita Stoneburner, who had gone to work for See Eagle Ford, page 20

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WWW.AAPG.ORG JUNE 2016 19 EXPLORER and gas industry. Eagle Ford “If you plot production from all the shale from page 18 fields in the United States, 2006 is when it really exploded,” he observed. Stoneburner continued to work in the Attractive shale plays had begun to Midcontinent and Texas, building a deeper emerge beyond the Barnett shale in north understanding of regional geology. Texas, the birthplace of horizontally drilled, “The Midcontinent and East Texas is hydraulically fractured shale production. where I spent my career before I got into “Our company got into the Haynesville the public arena. I had not worked the Gulf shale and the Fayetteville shale,” he said. Coast, so that was a new area for me,” he “The Fayetteville was discovered by said. Southwestern Energy. Our company was In 1996, Stoneburner rejoined Wilson. third to the party. Chesapeake (Energy He began developing prospects and plays Corp.) was second,” Stoneburner said. for a series of companies, which led to the By the start of 2008, the company formation of Petrohawk Energy Corp. in was convinced of the large potential of 2003. unconventional plays. “That’s when we were charged by Shale Explosion and the Eagle Ford our CEO, Floyd, to find another one,” Stoneburner said. Unconventional plays soon began to Several clues pointed to a major Stoneburner’s trophy commemorating the discovery of the Eagle Ford shale. dominate the attention of the American oil opportunity in the Eagle Ford. “There were really three things. First, we knew it was a regional source rock,” he said. Second was well data. Well logs showed that the formation had the right potential for shale production. Then Stoneburner and his team were able to find a set of cuttings from a well drilled in 1952. “We got those cuttings analyzed and that supported the belief that the Eagle Ford had the right thermogenic characteristics,” he said. Third, seismic indicated attractive drilling opportunities, including a Hawkville facies up to 300 feet in thickness. At the time, the shale boom seemed to be unfolding at a leisurely pace. But looking back today, the principal players are amazed at how quickly events moved. Petrohawk jumped into leasing in the Eagle Ford and immediately put together a 160,000-acre position, followed by an initial test well that produced 7.6 million cubic feet of gas and 251 barrels of oil per day. “We did all that through the first six months of 2008. To actually have a well on production by October and also have 160,000 acres under lease is just an incredible thing. It’s unheard of,” Stoneburner marveled. In 2011, Petrohawk received an unsolicited buyout offer from BHP Billiton Ltd., the Anglo-Australian mining and energy conglomerate, Stoneburner said. The deal ultimately was valued at more than $11 billion and closed by August that year, “which again is just an incredible timeline,” he noted. He stayed with the acquiring company for more than a year as president of its North American Shale Division, to assist in the transition and to help it acquire more knowledge about shale production. “They had no experience in onshore operations, and they had just made a very substantial investment onshore,” he said.

‘Never Burn a Bridge’

Stoneburner is now managing director for the energy investment team of Pine Brook Partners. He joined the New York private equity company in 2013 and opened a Houston office for the firm in April that year. He said his recipe for success is to have good people aligned with you and sufficient capital aligned with your effort. “Relationships matter, so you can never accomplish what you want to accomplish without working with good people and a well-capitalized organization,” Stoneburner said. “Never burn a bridge – you never know what’s going to happen,” he added. “I never knew that Floyd Wilson would call me back

in 1996 and say, ‘Let’s go to work again.’” EXPLORER 20 JUNE 2016 WWW.AAPG.ORG EXPLORER

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JUNE 2016 WWW.AAPG.ORG WWW.AAPG.ORG JUNE 2016 23 Historical Highlights is an ongoing EXPLORER series that celebrates the “eureka” moments of petroleum geology, 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 EXPLORER share it with your fellow AAPG members, contact Hans Krause at [email protected]. HISTORICALHIGHLIGHTS Floods and Foibles in Calgary, Alberta By JERRY OSBORN

algary, site of the 2016 AAPG But the total damage across southern Annual Convention and Exhibition, Alberta was estimated at nearly half a billion Cis characterized by sunny skies, dollars. So much damage was caused mountain views and a few contradictions. by floods (mainly outside of Calgary) that It’s an oil and cowboy city (at least some provincial politicians were getting it likes to think so), which – despite its uncomfortable with the amount of relief conservatism – elected the first Muslim being paid out by the province. mayor in North America and helped elect After the 2005 flood, the government a left-wing provincial government. The commissioned a report, led by Highlands younger demographic in the oil patch thinks Member of the Legislative Assembly anthropogenic warming is a serious issue, George Groeneveld, to recommend ways to while a lot of the old-timer entrepreneurs better prepare for floods and cut down on think it’s a hoax. damage relief. The city has the greatest concentration The most progressive recommendation of geologists in North America outside of the report was that the province should of Houston, but now many of them are stop selling floodplain land for development: unemployed. The dark blue represents permanent bodies of water, while the light blue represents overflow “Undeveloped flood plains are the natural More germane to this piece, the city during the Alberta floods of 2013. Graphic reproduced by permission from L’Espace au Service and most effective form of flood mitigation, has been regarded to be generally free de la Terre, using data from the Pléiades satellite. and this recommendation will protect those of natural hazards: tornadoes ravage areas,” said Groeneveld. Oklahoma, debris flows course through Los 1930s, that was also blunted. regulations seemed to be conducted as a Another recommendation was that a Angeles every time it rains, Vancouver and There followed an amazing 70 years. stealth mission. The study defined an inner note should be placed on the title of every San Francisco (and even Ottawa) await Following the rash of floods around and floodway in which built structures would property in a 100-year flood zone so that their next earthquake… but Calgary sits after the turn of the century, seven decades have a significant backwater effect and an new buyers would be aware of the situation. comfortably on a rolling plain on a solidly- passed without any discharge that could be outer floodplain in which built structures The ultimate fate of the Groeneveld built part of the North American plate, north labeled a “flood.” would not have such an effect. report was not surprising: a Global News and east of hurricane belts and mostly north The old citizens died or moved out, and After the 2013 flood, the “floodplain” headline after the 2013 flood read “Alberta of tornado belts, without a volcano in sight. first-hand knowledge of the flood hazard zone would be changed to “flood fringe.” government failed to act on flood prevention Even the formerly legendary cold winters gradually dimmed. And as it dimmed, The city enacted bylaws prohibiting new report.” have lost their punch. houses were built in the most hazardous development in the floodway, but allowed Although they had gotten off fairly It all seemed pretty safe… until the places, such as filled-in abandoned existing residences to be maintained easily, Calgarians now recognized that summer of 2013, that is. channels and meander bends. Many and even replaced. In the floodplain, their two rivers could, well, maybe, flood. students at the University of Calgary, new development, including residential But nothing much changed at City Hall or Forgotten Floods surveyed in the ‘80s and ‘90s, didn’t know subdivisions, would be allowed if first floors in the provincial government. The province it was possible that the Bow and/or Elbow and all electrical and mechanical equipment continued to sell Crown land on floodplains When the Northwest Mounted Police rivers could overtop their banks. were above flood level. for development and many floodplain (later to be known as the Royal Canadian The city and the province knew, however, Ironically, there was little or no general residents who were not affected by the 2005 Mounted Police) rode west in 1874 to bring despite the city’s ongoing approvals of communication about the flood hazard flood assumed they were safe. Real estate law and order to the Northwest Territories, floodplain developments. coming from the city or the province before transactions continued without discussion of one of their tasks was to stamp out the In the late ‘60s the city started thinking 2005; it may be that the city wanted to flood risk. illegal whiskey trade along the Bow River, about some kind of floodplain regulation – keep the issue quiet to keep the floodplain which consisted mainly of Americans a fairly progressive thought for a western residents quiet. The Great Flood working out of Fort Benton, Mont. Canadian city at the time. In 1875, the Mounties’ “F Troop” built The Montreal Engineering Company Wake-up Call In late June of 2013, bolstered by a fort at the intersection of the Bow and was hired to conduct a flood hazard study. saturated mountain snow packs, a Elbow rivers in what would later be known They picked the 70-year flood as the The two rivers continued their mild- stalled upslope low-pressure system and as Alberta. This was the first building in the design flood, mapped inundation limits of mannered ways through 2004. anomalous behavior of the jet stream, the future city of Calgary – the site would end it, recommended a floodplain management But in June 2005, a series of potent great flood came. up slightly east of downtown. The Mounties scheme in which hazard areas would be storms passed through southern Alberta. It rained heavily for two days, with storm were more enlightened land-use planners officially delineated on maps, and presented Although towns south of Calgary were runoff augmented by high-elevation snow than subsequent immigrants and city findings at a series of public hearings. flooded three times, only one distinct peak melting in the rainy onslaught. The bulk of councils: they built their fort on a hill next to, Because most attendees at the hearings on the Bow River hydrograph occurred in the precipitation fell west and southwest of but comfortably above, the confluence. were floodplain residents, the outcome Calgary, on June 19. Calgary, right over the headwaters of the The site has probably never seen a flood was predictable: the management scheme The Elbow also overtopped its banks. Bow and Elbow rivers. any time in the late Holocene. was vigorously opposed because property Living Calgarians witnessed their first In Calgary each of the two rivers carried Not so the floodplain lowlands to the values were deemed to be at risk. The flood. the equivalent of three 2005 floods stacked west and south, where the city expanded heat was such that the city backed off and The city’s 1,500 residents were together. after the arrival of the Canadian Pacific Calgary’s first attempt at land-use planning evacuated, and flood-damage costs to Calgary saw 75,000 people evacuate. Railroad in 1883. The two biggest known on floodplains was abandoned. the City of Calgary were estimated at $75 The city’s downtown core, home of Alberta’s floods on the Bow River, and possibly The city and the province got more million. oil patch, was evacuated and had its the Elbow River, occurred four and 22 serious 10 years later. At the time, it seemed like a big number, power cut off, and the 350,000 who work years, respectively, after the building of Alberta Environment, a government but the flood in Calgary was actually small, downtown enjoyed a multi-day holiday. Parts the fort. The Bow and Elbow rivers were department, did another flood study, which compared to what the rest of Alberta of downtown and many residential districts in fine fettle back in those days; more came out in 1983. The city, illustrating the experienced. Although some small streams ended up underwater. The Saddledome, big floods occurred in 1902, ‘15, ‘16, ‘23, old adage “once bit, twice shy,” held no in the province experienced greater-than- which is the local professional hockey and ‘29 and ‘32. But these floods did not public hearings and asked no community 100-year floods that month, the event in entertainment venue, was filled up to the deter development in floodplains, which associations for input. Adoption of floodplain central Calgary was merely a 15-year flood. 10th row. The entire Calgary Stampede continued apace along both rivers. grounds were also flooded, less than two The 1932 flood was very large, Jerry Osborn is a professor of geology in the Geoscience weeks before the 2013 fair and rodeo was matched in the 20th century only by the Department at the University of Calgary. His interests are surficial scheduled to open. (The Stampede movers 1902 flood, and would have inflicted great and quaternary geology, with forays into geomorphology and and shakers vowed that the show would ruin upon the residential communities that engineering geology, and, on the side, interactions between science go on, in time, and it did. The Saddledome sprang up along the Elbow River between and society. His main line of research is Holocene climate change reopened in October with an Eagles 1902 and 1932. But the Glenmore Dam, using glacial-history and lake-sediment proxies. Consulting activities concert.) built on the Elbow to provide a drinking- have included aggregate searches, mass-movement hazards water reservoir, had just been finished. analysis, flood hazard analysis and studies of river migration as Aftermath According to historian Harry Sanders, the applied to boundary-law litigation. Included in the thousands reservoir went from empty to a few inches of students who have passed through his introductory geology When all was said and done, the 2013 OSBORN below crest in two days. This fluke blunted courses at the University of Calgary are many petroleum geologists Calgary flood (more properly, “the southern the impact of the Elbow flood on the working (or formerly working) in Calgary. When time allows he searches for the perfect Alberta flood,” but most of the damage was communities, and if there was any impulse pumpkin pie recipe and teaches his kids the value of listening to Bob Dylan. to think about floodplain regulation in the See Fate, page 27 24 JUNE 2016 WWW.AAPG.ORG EXPLORER

WWW.AAPG.ORG JUNE 2016 25 ANNUAL CONVENTION EXPLORER & EXHIBITION 2016 Halbouty Lecture Bay du Nord Discovery: ‘A Story of Belief’ By LOUISE S. DURHAM, EXPLORER Correspondent t’s no secret that the Halbouty Lecture The 2016 Halbouty Lecture series at each AAPG Annual Convention and presentation by Tim Dodson, executive IExhibition is a big draw. “Continuous global vice president of Statoil ASA, will focus The lecture series is named for the late on Statoil’s high impact Bay du Nord Michel T. Halbouty, renowned wildcatter exploration work is critical discovery in the deepwater Flemish Pass extraordinaire. Basin in 2013. Wildcatting today is far removed from to the sustainability of the Estimated to hold 300 to 600 million this legendary oilman’s heyday when oil and gas industry.” barrels of crude oil recoverable, Bay du prospectors would risk it all, continually Nord was hailed as the largest oil discovery chasing what they saw as the next big find. DODSON worldwide in 2013 once it was announced When it worked, it worked. When it by Statoil and joint venture partner Husky didn’t… well, there was always the next various experts on geology, engineering in this often daunting, always expensive Energy. The discovery well tapped into light one. and related disciplines. Costs rarely, if ever, game of exploration, which is evolving into oil tallying 34 degrees on the API scale in Now, it’s all about teamwork among are the responsibility of a single player an increasingly high-tech arena. high quality Jurassic-age reservoirs having high porosity and permeability. The find represented Statoil’s third – and largest – discovery in this largely unexplored Basin, which occurs about 300 miles east of St. John’s, Newfoundland. The trio of discoveries, which includes Mizzen and Harpoon, each are in approximately 1,100 meters of water and on separate geological structures within relatively close proximity to one another.

‘Overnight Success’

Statoil’s foray into offshore Newfoundland dates back to 1996 – seven years before its first well in the Flemish Pass. Although this well was a disappointment, the company persevered, ultimately reaching the big breakout with the 2013 discovery. Bay du Nord has been referred to as an “overnight success 17 years in the making.” In other words, the pathway to this big hit was littered with an array of obstacles. “Drawing on ideas, exploration and production successes from the Norwegian Continental Shelf, the original idea was that many of the same exploration plays could exist in the East Canada offshore basins,” Dodson said. “Given new data and offshore land sales in the Flemish Pass, explorationists early on identified the potential in the Flemish Pass and nearby basins, extending the Jeanne d’Arc plays and the Norwegian experience to the north,” he noted. It sounds straightforward, but it’s never smooth sailing in these types of endeavors. Dodson emphasized that even though the Norwegian Continental Shelf ideas applied in principle, the local geological setting in the Flemish Pass provided additional geophysical and geological challenges. “Identification of a working petroleum system with a working source rock, understanding the reservoir development, and not least the trap and seal system, was critical,” he said. This environment is rife with operational challenges, including shifting weather conditions, drifting icebergs and deep water. Statoil, however, has become adept in handling such situations, having acquired vast environmental experience with harsh conditions on the Norwegian Continental Shelf. Dodson offered a capsule summary of the action here overall: “The exploration history of the Flemish Pass is a story of belief, countercyclical thinking and gradual building of knowledge and database,” he commented. “The

See Ambition, page 28 26 JUNE 2016 WWW.AAPG.ORG EXPLORER via a diversion canal. The province initially Fate claimed a positive benefit/cost ratio, but from page 24 later a Calgary Herald headline noted “Report says reservoir costs higher than future flood damage.” in Calgary) ranked as the most destructive and costliest natural disaster in Canadian The ‘Floodplain Dance’ history although it may be outdone by the Fort McMurray fire of early May. Economic projections related to Four people drowned in the flood, one river flooding rest on so many tenuous of them in Calgary. Insurable damages are assumptions that, in the end, most estimated to be close to $2 billion and total decisions about dams are made on damages should round out at about $6 political grounds, and that is certainly true billion. in this case. Then-Provincial Environment Minister The lack of clear long-term economic Diana McQueen was quoted, “I want to benefit is perhaps overshadowed by Looking downtown from Riverfront Ave. in Calgary, during the 2013 Alberta floods. Photo by stress that what Alberta has experienced the lack of any overall flood mitigation Ryan L. C. Quan. in this past week was unprecedented… No plan into which the Elbow dam could report or recommendation looking at the fit. The Bow River, after all, constitutes is opposed loudly by rural landowners residents with their taxes and higher lessons of the past could have prepared us a much larger threat to city homes and who will be affected by the project, and insurance premiums. for this event.” businesses, according to a government- quietly by citizens not on the floodplain She apparently hadn’t heard about the commissioned report. Meanwhile, the dam who object to subsidizing the floodplain See Predictability, page 28 1879 and 1897 floods, which were much bigger. In the aftermath, everybody agreed that the community spirit and mutual support generated by the flood were awesome. But as for the central post-flood question – “What to do about the flood hazard going forward?” – there is no agreement, and the community spirit has, shall we say, thinned. The province’s immediate response was to try to clear the floodway, but it didn’t feel it could force residents out. Instead, it offered to buy them out. Only half took the money and moved. So now there is a combination of patchwork neighborhoods and remaining floodway obstruction. Remaining floodway residents theoretically will not be eligible for damage relief after the next flood. The couple thousand flood-fringe households can stay put but are required to flood-proof their homes to some degree, in order to be eligible for future damage relief.

Policies and Planning For the Next Big Flood

The province also attempted to enact one of the Groeneveld recommendations: it indicated it would require inclusion of a “location note” on floodplain land titles for information purposes. That lasted only three weeks: the province caved to pressure from well-heeled and politically connected residents of the Elbow floodplain, who continued to worry about their property values and decided that the location notes would be removed if homeowners followed the province’s flood-proofing suggestions. Knowledgeable institutions (such as WaterSMART Alberta) and academics (such as Ed Watts at Queens, author of the definitive text on hydrology of floods in Canada) are promoting a stop to floodplain development, or even de-development of floodplains, as the primary need. But after the flood, a Toronto Metro headline read, “Too soon to restrict building in Calgary flood zones, says province.” Watershed-scale thinkers like Kevin van Tiegham, the former superintendent of Banff National Park, call for watershed management. But floodplain residents see big engineering structures as the primary need, and such structures have the added benefit of allowing politicians to look like they are doing something bold and positive. Most engineering attention has been paid to the Elbow River, along which private residents clamor for public protection, claiming the dam(s) are needed to protect downtown, even though the Bow was the source of downtown flooding in 2013. The provincial government has given the go-ahead to a $200 million dry dam off the Elbow River a little ways upstream of Calgary, designed to impound floodwaters WWW.AAPG.ORG JUNE 2016 27 EXPLORER

hazards. Human beings like living on Predictability the floodplain, and governments find it from page 27 difficult to tell them they can’t. We have the same arguments over and over. And so the floodplain dance Consider this excerpt from a Calgary continues. Or as Sonny and Cher used Herald editorial: to sing, the beat goes on. Scientists cannot predict when and where the likes “Only too frequently people fail to of Slave Lake fires or Montreal ice storms realize that they themselves are largely or Oklahoma tornadoes will happen, but responsible for the disaster brought upon they do know where rivers will flood next, them... in closely built municipalities, and with what average frequencies. On disastrous floods will inevitably follow the surface, it seems simple and rational encroachments on the old floodplain…” to give the river room to do its thing – flood. But simplicity and rationality are This editorial wasn’t written after the

not big players in considerations of flood 2013 flood, but in 1913. EXPLORER

“Exploration success depends on Ambition access to new areas, new technology and from page 26 new ideas,” he emphasized. “Plus, there are no short term solutions as exploration history shows that the largest successes Bay du Nord discovery is an example of have come from a combination of these Statoil’s global way of exploring through three factors and patient subsurface work execution with rigor, replenishment of the over time. Exploration success over time portfolio and by cultivating the exploration has come in cycles, and there are no short- culture.” term easy solutions.” “The success of Bay du Nord is the Meanwhile, Statoil continues to fine- result of an ambitious and targeted drilling tune its understanding of the geology and campaign in the Flemish Pass Basin,” he potential of the Flemish Pass Basin as added. evaluation continues. Given the current challenges faced by Over the course of the last 18 months, the industry, Dodson’s take on worldwide the company has overseen an ongoing exploration overall is to the point. drilling campaign – appraisals/near field “Continuous global exploration work is drilling and a few wildcats – in the area, critical to the sustainability of the oil and according to Kjersti Tvedt Morstøl, vice gas industry,” he said. “All oil and gas president of communications at Statoil in reserves have been found by exploration Norway. at one point in time, and persistence and Morstøl noted that results related to perseverance in this type of work will carry the campaign will not be available until

the industry forward.” sometime after mid-June. EXPLORER

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WWW.AAPG.ORG JUNE 2016 29 Edith Allison, director of AAPG’s Geoscience and Energy Office in Washington, D.C., EXPLORER can be contacted at [email protected]; or by telephone at 1-202-643-6533. POLICYWATCH A Look Back At 40 Years of the Strategic Petroleum Reserve By EDITH ALLISON, Geoscience and Energy Policy Office Director

s the United States Strategic Petroleum from the reserve. Reserve approaches its 40th birthday Aand the world is awash in excess oil, Do We Still Need a Reserve? the U.S. Department of Energy (DOE) and Recent activity may lead Congress are taking a serious look at the This recent activity may lead one to reserve and its almost 700 million barrels of one to wonder if we really wonder if we really need the reserve. crude oil stored in 62 salt caverns in Texas Senators Lisa Murkowski (R-Alaska) and Louisiana. Additional small reserves need the reserve. and Maria Cantwell (D-Wash.) as chair and of low-sulfur diesel (home heating oil) and ranking member, respectively, of the Senate gasoline that are located in the northeast are ALLISON Energy and Natural Resources committee not a current concern. have answered the question. In multiple Congress evidently saw a piggy bank The oil sales include 66 million barrels to At about the same time, a DOE study hearings, white papers and statements, filled with more oil than our international support expenditures authorized in the 2015 suggested that the reserve requires $1.5- both senators have spelled out the need commitments require and last year decided Transportation Bill and 58 million barrels $2 billion in upgrades, which the 2015 for a strong reserve. More importantly, they to sell 174 million barrels (one-quarter of for deficit reduction in the 2015 Bipartisan Bipartisan Budget Act would fund by have included provisions to preserve and the reserve) to fund government activities. Budget Act. selling an additional 40-50 million barrels strengthen it in legislation (Senate Bill 2012) that they have shepherded through the Senate.

Justification for an emergency oil reserve:

u Oil reserves in the United States and other nations are intended to offset the economic damage of major supply disruptions. u The reserve has made emergency releases. In 2011, in response to the disruption of oil production in Libya due to civil unrest, the U.S. reserve released more than 30 million barrels as part of the IEA coordinated release of 60 million barrels. Other coordinated releases were in 1990-91 for Desert Shield/Desert Storm and in 2005 after Hurricane Katrina. u Even though U.S. oil and natural gas production is at near record highs, the United States is still an oil importer. u The United States and other oil consuming nations are dependent on oil produced in politically unstable areas. u After the 1973-74 Arab oil embargo, the major oil importing countries formed the International Energy Agency (IEA) to coordinate a collective response to oil supply disruptions. u The United States and most other IEA member countries are now holding more than the 90 days’ supply required of IEA members. The U.S. storage surplus is primarily the result of declining imports as domestic oil production expanded. In addition, energy efficiency, renewable energy and natural gas consumption has reduced some of the need for oil imports in some countries.

International Petroleum Reserves

The IEA has 29 member countries. All except Canada are net oil importers and are required to hold or have access to reserves. Member countries are primarily in Europe, along with Korea, Japan, Australia and New Zealand in the Asia-Pacific area, as well as the United States and Canada. Outside of the IEA, several countries have or are planning reserves: China has about 100 million barrels of storage constructed of a planned 500-million barrel reserve. The reserve will include aboveground and belowground storage in multiple locations. India started to build a 37 million barrel reserve in 2003. In Africa, Kenya and South Africa have petroleum reserves.

Future of the U.S. Strategic Petroleum Reserve (SPR)

A 2014 crude-oil test sale demonstrated

See Policy Watch, page 39 30 JUNE 2016 WWW.AAPG.ORG EXPLORER

WWW.AAPG.ORG JUNE 2016 31 The Geophysical Corner is a regular column in the EXPLORER, edited by Satinder Chopra, chief geophysicist for Arcis Seismic Solutions, TGS, EXPLORER Calgary, Canada, and a past AAPG-SEG Joint Distinguished Lecturer. GEOPHYSICALCORNER Extracting Large-scale Fracture Networks By AYON KUMAR DEY

his work demonstrates a modern log or dip meter analysis be available, workflow that directly extracts stereonets can then be built to enhance the Thigh-resolution, large-scale fracture extraction of specific structural elements networks from seismic inversion-based observed via downhole analysis. Displaying structural attributes. The workflow is the enhanced fracture attribute in 3-D successfully applied to a thrust-belt orthogonal perspective with opacity set controlled, lower Triassic, siltstone to highlight strong discontinuities allows reservoir in the Montney Formation of the first order lineaments to be visualized. the Farrell Creek area in northeast British These discontinuities are then extracted as Columbia to extract a 3-D fracture network geobodies for a data-driven fracture model orthogonal to the primary stress direction. that can be applied as needed. Subsequently, these extracted seismic scale fractures are applied to analyze Application to the Montney Formation completions, production interference and well planning. The workflow is applied to a thrust- belt controlled unconventional siltstone High-resolution Fracture reservoir that lies in the dry gas, distal Network Extraction shelf, portion of the Montney formation, northeast British Columbia, Canada (see This work demonstrates a modern workflow that directly extracts high-resolution, large The principal objective of this exercise figure 2). This formation (comprised of scale, fracture networks from seismic inversion based structural attributes. The workflow is is to provide asset teams with a rapid and an upper and lower portion, each having successfully applied to a thrust-belt controlled, lower Triassic, siltstone reservoir in the Montney independent view of the seismic-scale several drillable lithostratigraphic zones) formation of the Farrell Creek area in northeast British Columbia to extract a 3-D fracture network fracture networks present within an area of is a succession of clastic and carbonate that is orthogonal to the primary stress direction. Subsequently, these extracted seismic scale interest for integrated hydraulic fracturing, shelf facies that have been deposited fractures are applied to analyze completions, production interference and well planning. production and drill target analysis. via westward progradation, with proximal A high-resolution fracture extraction facies deposited in the east and basinal workflow from seismic data has been facies deposited in the west. Its isopach developed to address this need. averages 360 meters in the study area. A “systems” approach allows us to Figure 3 shows an application of the conceptualize the seismic data as the workflow to an anomalous completions vertical fractional change in the geology result for a producing well in the distal shelf that has been modified by seismic-wave region of the Montney formation discussed propogation and earth-filtering effects. earlier. The 3-D top-down view, on the left, Minimization of these effects, as well as shows that the fracture network locally random noise, through seismic inversion isolates the thicker portion of the reservoir. enables a more accurate and complete Furthermore, the fracture network understanding of the subsurface geology directs and contains the production-tied- and delivers an optimal input for computing microseismic events. On the right is a various structural attributes. section view, taken along the length of the Figure 1 shows a block diagram lateral. This shows the lateral section of the illustrating the workflow employed to well intersecting two major seismic-scale exploit this concept for the computation fracture corridors. These “throw”-related (the of a higher fidelity and higher resolution blue lineament) and “anticline”-related (the structural attribute. The final processed orange lineament) fracture-related attributes seismic (a band-limited interface property) constrain the microseismic and promote is transformed to compressional (P-wave/ downward, out of reservoir, growth. acoustic) impedance (a layer-based Figure 1: Seismic data-driven high-resolution fracture extraction workflow. In figure 4, we see an application of the bandwidth enhanced rock property) by discussed workflow to production analysis. simultaneously integrating well-log and On the production pressure curves, as Well lithostratigraphic information, as well A is shut-in there is an observed response as minimizing random noise, earth filter This work demonstrates that a in Well B and Well C. An explanation for and seismic-wave propagation effects. this production interference is fracture Through a phase rotation, it yields the seismic-data-driven approach to fracture connectivity between the wells. Extracting compressional-to-compressional mode identification and characterization is an the fracture network confirms this, as seen reflectivity (i.e. the P-wave reflectivity) in the lower right-hand panel. without loss of vertical resolution. added-value process. A final application is shown in figure 5. Exploiting the marginal 90-degree Here we see near well-bore sweet spots for phase relationship between reflectivity DEY brittleness, hydraulic fracability, porosity and and impedance avoids the inherent loss organic richness extracted as geobodies. of resolution due to directly computing the computed since it is richer in information diffusion filtering in areas with a poor signal- These are co-rendered in 3-D with the reflectivity as the vertical derivative of the than the full-offset stack. to-noise ratio. As a result, the reflectivity is extracted seismic fracture network and an impedance. The polarity (standard/reverse) Although the reflectivity is the optimal cleaner and yields a fracture attribute with integrated sweet spot is identified. of the input seismic determines whether a starting point for structural analysis, it sharper boundaries or “edges.” Knowledge of previous, nearby well plans positive 90-degree or a negative 90-degree can be improved further by geological High-resolution fracture sets orthogonal and production information allows this well phase rotation is required to obtain preconditioning. This is achieved via small to the primary stress are computed via to be planned knowing that intersecting reflectivity from impedance. This is the base window median filtering along structural dip stereonet-controlled directional steering of data from which structural attributes are in good signal-to-noise ratio (S/R) areas and the enhancement algorithm. Should image Continued on next page

Figure 2: The regional geology of the Montney formation. Figure 3: Applying extracted seismic fracture networks to completions analysis.

32 JUNE 2016 WWW.AAPG.ORG EXPLORER Continued from previous page certain fracture attribute patterns at a high angle is preferred to drilling these same patterns in a roughly parallel, or slightly oblique, manner. As such, this well can be planned such that about two-thirds of the lateral can be ideally placed and completed. In conclusion, this work demonstrates that a seismic-data-driven approach to fracture identification and characterization is an added-value process. The fracture attributes delivered via this workflow are a first step and should be correlated to downhole evidence (i.e. image logs) of fracturing.

Acknowledgements Figure 4: Applying The author would like to acknowledge the extracted seismic entire Sasol Canada subsurface team for their fracture networks to insights in the development and application production analysis. of this workflow. Also to be acknowledged for supporting this work is the Progress-Sasol- Montney-Partnership joint venture.

Ayon Kumar Dey is the principal geophysicist at Sasol Canada E&P Ltd.,

Calgary, Alberta, Canada. EXPLORER

Figure 5: Applying extracted seismic fracture networks to well planning. WWW.AAPG.ORG JUNE 2016 33 EXPLORER PROTRACKS AAPG Involvement Equals Career Success By LOW WAN CHING, Asia-Pacific Region Young Professional

y participation in AAPG activities has workshop, it was putting together the presentation while always been a source of wonderful inspiring to be simultaneously juggling coursework. Our Mmemories. surrounded by hard work finally paid off when we managed My involvement with AAPG began in July highly motivated to win the Europe Region competition and, 2013 when I was asked to help organize and like-minded YP ultimately, first place at the IBA Finals held a talk by Robert Shoup for the Young representatives from at the 2015 AAPG Annual Convention and Professionals of Kuala Lumpur, Malaysia. the Regions and Exhibition in Denver, Colo. Keith Gerdes, The event was wildly successful. There were Sections debating president of AAPG Europe Region, was 40 participants in attendance for Shoup’s various ideas on how extremely delighted with our achievement presentation of “10 habits of a successful to improve AAPG’s since we were the first UK team to win the geoscientist.” connection with the IBA Award in eight years. Prior to AAPG, I was involved in students and YPs. committees for various major oil and In late 2014, I was Back to Kuala Lumpur gas conferences held in Kuala Lumpur. ecstatic to receive However, back in those days, social news that I had After graduating with my master’s networking events were mostly restricted won the prestigious degree, I returned to Kuala Lumpur and to management and few events catered to Chevening presented my technical paper, “Structural YPs. After witnessing the wonderful turnout Scholarship offered Evolution of Deepwater Thrust Foldbelts, by students and YPs to Shoup’s talk, I by the government of Offshore Sabah, Malaysia,” at the Asia- decided to form the AAPG KL YP Chapter the United Kingdom Pacific Geoscience Conference in October in July 2013. I thought it would be a good and a partial South 2015. Thanks to rigorous training and platform for geoscience students and YPs East Asia Petroleum countless presentations for AAPG IBA, I was from various oil companies in KL to mingle Exploration Society surprisingly calm and confident presenting and network. (SEAPEX) Dick my paper to a full crowd inside the Once the Chapter was formed, technical Murphy Scholarship conference hall. Participating in the AAPG talks were held almost every month. Thanks Award to pursue a IBA competition definitely helped me hone to our AAPG connection, we’ve been master’s in petroleum my technical preparation and presentation extremely lucky to invite Visiting Geoscientists geoscience in Royal skills. from all around the world to present. Holloway, University Currently, I have resumed my post as of London. To this Low Wan Ching created and guided a YP Chapter in Kuala Lumpur, president of the AAPG YP KL Chapter after Career Launch day, I strongly believe Malaysia. a year-long absence to pursue my master’s. that my active While I was away, committee members Chin Due to the activity of the KL YP chapter, involvement in AAPG YP Chapter leadership university in the AAPG Imperial Barrel Award Soon Mun, Jeen Ching and Nuraman Nusral I was very fortunate to be selected to was the key to obtaining these scholarships (IBA) competition. It was a memorable and managed to collaborate with the Indonesian represent the Asia Pacific Region at the and advancing my geoscience studies. challenging experience. My teammates Association of Geologists KL Chapter to 2014 Young Professionals Leadership While pursuing my master’s, I was and I spent many long nights in the lab, Summit in scenic Snowbird, Utah. In the fortunate to be selected to represent my working on our technical evaluation and See Activity, page 37

34 JUNE 2016 WWW.AAPG.ORG Letters to the editor should include your name and address and should be mailed to Readers’ Forum, c/o AAPG EXPLORER, P.O. Box 979, Tulsa, Okla. 74101, or fax (918) 560-2636; or e-mail to [email protected]. Letters may be edited or held due to space restrictions. EXPLORER READERS’FORUM CLASSIFIEDADS The article in the April EXPLORER by because it represented the opinions of a or [email protected] David Brown regarding the tighter credit group of only nine individuals who attended POSITIONS WANTED issue and re-determination is timely. While the Houston YPLS meeting? * * * * * * * * * * * * * * * * * * * * I love geoscience articles, I am glad AAPG I wonder if other “old timers” like me TEXAS A&M UNIVERSITY-KINGSVILLE also recognizes we are in a business, and have offered similar comments. COLLEGE OF Arts and Sciences SAMPLES TO RENT one that is in the midst of a struggle these I never write notes like this, but just felt Assistant Professor of Geology days. Like other members, I have been compelled to do so at this time. I enjoy The Department of Physics and International Sample Library @ Midland through this a few times during my career. the EXPLORER. Keep up the good work. Geosciences at Texas A&M University– – Formerly Midland Sample Library. Although, I believe this one is a bit different Thanks for letting me bend your ear for a Kingsville seeks Assistant Professor for a Established in 1947. Have 164,000 than previous such events. Anyway, thanks moment. tenure track faculty position. A PhD in wells with 1,183,000,000 well samples for the article. Geology is required from a regionally and cores stored in 17 buildings from Michael Price accredited University or Institution. 26 states, Mexico, Canada and offshore Don Felio Seattle, Wash. Teaching responsibilities will include Australia. We also have a geological Vail, Colo. supply inventory. * * * Petroleum, and Applied Geology at the * * * undergraduate level and other assigned Departmental courses. He/she must Phone: (432) 682-2682 We are writing to respectfully correct develop a viable, sustainable, strong and Fax: (432) 682-2718 I have been a proud member of AAPG a misstatement about award nominations externally fundable research program since 1971. I retired from the industry in the May 2016 Explorer article about involving undergraduate students. For * * * * * * * * * * * * * * * * * * * * several years ago, but maintain my PROWESS. additional information: http://www.tamuk. membership. We are proud to be involved in edu/artsci/physics_geosci/geosci/index. SES – more companies CHOOSE SES I was disheartened to read the recent nominating female award recipients. In html and to apply, please visit the from 22 geosteering software options. article, “Stemming the Loss of YPs” particular, one of our nominations this following website: https://javjobs.tamuk. SES correlation logic operates on 3D (December’s ProTracks column). It was year has resulted in Dr. Brenda L. Kirkland edu; job posting #0602341. An Equal objects with beds oriented in true bothersome to hear that YPs are leaving becoming the first woman to receive the Opportunity/Affirmative Action Employer. stratigraphic depth directions. It’s the Association. It was also troubling to Grover E. Murray Memorial Distinguished more accurate, intuitive, and valid for hear that “The implications are that AAPG Educator Award. MISCELLANEOUS all directional/horizontal drilling! User is in danger of becoming irrelevant in the Manual available in 5 languages. Free short term and nonexistent in the long Gretchen M. Gillis and Alberta Basin Canada trial and training available. term.” Timothy N. Diggs Expertise Available When I was a rookie petroleum geologist Geo7 Resources Inc. www.makinhole.com in 1971, like my peers, one of the first things (Editor’s Note: In last month’s EXPLORER Will Help Solve: Stoner Engineering LLC on my agenda was to become a member of article, “PROWESS Committee Empowers Upstream technical and business AAPG. It was the one thing that identified us Women Geoscientists,” Barbara Tillotson problems related to: CLASSIFIED ADS You can reach about 37,000 petroleum geologists as professionals and made us part of what mentioned that there were no women u Reservoir analysis and mapping u A&D upside evaluations at the lowest per-reader cost in the world with a we felt was an exclusive “club” to which we nominated for AAPG honors and awards u Vertical and Horizontal well classified ad in the EXPLORER. Ads are at the rate identified with a sense of pride. in 2016. That was an out of date comment, of $2.90 per word, minimum charge of $60. And, planning for an additional $50, your ad can appear on the What has happened? Is it simply a and in fact there are multiple women who u Prospect assessment, integration classified section on the AAPG web site. Your ad symptom of the attitude of the “Millenials” will be honored for their work in the oil and and development can reach more people than ever before. Just write that belonging to a dynamic professional gas industry. For a list of people who will Full access to production, land, well out your ad and send it to us. We will call you with organization is no longer considered a be receiving awards at the 2016 ACE in and reserve software modules. the word count and cost. You can then arrange prepayment. Ads received by the first of the month privilege and honor? Calgary, please refer to the following link: Please contact Martin at 1 403 466 8931 will appear in the subsequent edition. Was the article perhaps biased, simply aapg.to/Jy2m8 )

WWW.AAPG.ORG JUNE 2016 35 ANNUAL CONVENTION EXPLORER & EXHIBITION 2016 AAPG Foundation’s Teacher of the Year Bringing Geoscience to Life By ANGELA EVANS, EXPLORER Correspondent

his year’s AAPG Foundation’s Teacher oil and water together to observe how they of the Year honoree admits science separate is an exciting visual experiment Twasn’t always her first love. for her students, she said. “Early in school, I did not care for “At the fourth grade they are amazed by science at all,” confessed Alice Waterbury, everything!” a teacher at St. Mary’s School in Mount Also in Waterbury’s class, students get Carmel, Ill. “It wasn’t until high school to “create fossils.” They watch crystals that my love began to grow; and it was bloom into existence and build simulations because science became more hands on, of the substructure of soil that show where more about exploring and figuring things the oil “lives.” out in a real way.” “I love being able to explain to kids That passion has grown into a labor of about how they get oil out of the ground, so love spanning four decades. She currently we’ve been trying to build a derrick using teaches the entire fourth-grade class and straws and paper clips,” Waterbury said. one fifth-grade science course. “It hasn’t been successful yet but my fifth- graders want to try it again.” Finding Her Niche Hands-on interaction – because of the children’s age and because of how their Waterbury said she feels an affinity for Alice Waterbury has been recognized for her innovative approaches to teaching. world is shaped by real-time technology – this age group in particular. is a natural fit for teaching geosciences. “I taught third grade for 16 years, then Waterbury. “You can read a book and find a modern classroom. “They don’t want to sit there and watch I went down to second grade,” she said. out information, but a hands-on approach “Instead of sitting down and reading – you perform an experiment. They want to “That wasn’t for me.” (of science) at an early age will create a and sometimes you need to sit down and do it,” she said. She settled in with fourth grade and has love and foster a basic understanding of read about things – you have to put it into Another experiment they love is one in been working with this age group since. why it’s important.” practice.” which they make natural gas using hard- “Fourth graders can explore on their In many ways, Waterbury feels the earth Hands-on Approach boiled eggs for animal matter and lettuce own, you can have more discussions and sciences are the perfect pairing for the for plant matter, which they measure out they have the ability to research,” said needs of today’s children. Several years ago, she began using a balance scale before placing in a Waterbury. “The students of today have to be busy, experimenting with that hands-on plastic bottle. Though her personal preference is to have to be interactive. That’s the group of approach by growing plants in the “They use a graduated cylinder to teach fourth and fifth grade, she thinks children we are raising,” she said. “The classroom with her students. Slowly, the measure the amount of pond water to science shouldn’t be ignored in the more hands-on things that we can do, the simple science of growing plants morphed carefully pour down the side of the bottle curriculum for younger students. more group activities, the better.” into a more interactive exploration of and not just directly onto the sand. The “Anything you help them develop young Reflecting on her own lack of interest in subjects like geology and, specifically, the pond water represents the ocean. Finally, is going to take hold and they’re going to science when she was younger, she can oil and gas industry. appreciate it so much more later,” said appreciate what today’s children require in Simple experiments like mixing layers of Continued on next page

36 JUNE 2016 WWW.AAPG.ORG EXPLORER Continued from previous page operations in Mount Carmel, and they resources. They think ‘This is my soil, my award, she had a unique reaction. understand they will be the stewards of the parents’ livelihood. We have to protect it,’” “I was shocked,” Waterbury exclaimed. they stretch a balloon across the top land one day. said Waterbury. “There have got to be a lot of teachers out and set in a warm place to observe what “It’s easier to personalize the lesson, there who do this and want their students happens,” said Waterbury. because if a drilling company comes The Environment of a Classroom to excel.” “We discuss each of these steps and in, their family doesn’t want the land Though she is thrilled to be recognized, journal and draw what they have done destroyed,” said Waterbury. “All the drilling Alice Wirth, principal of St. Mary’s, Waterbury said she feels the teaching and what they hypothesize will happen. companies and geologists have to be has had the unique opportunity to see profession in general should be honored After a few days, we look for physical and responsible about what they’re doing.” Waterbury in action for 27 years. and appreciated for all they do. And like chemical changes,” she added. Waterbury emphasizes to her students “She excels in bringing her science most teachers, she considers what she Creating gasses is easily one of the that the resources under the ground are and math classes to life,” said Wirth. “The does to be much more than just a job. students’ most memorable experiments of important, but the land itself is just as students are imaginative, creative, and not “I’m always thinking about my kids the year. important, which she demonstrates with a afraid to ask questions and seek answers and about what I can do to stoke their “When the room comes in and it smells, seemingly simple experiment. in Mrs. Waterbury’s safe and respectful enthusiasm,” she said. “And yes, I refer it’s like ‘yeah, that’s the gas we’re making “We mine chocolate chips from cookies learning atmosphere.” to them as my kids; because they are my over there,’” laughed Waterbury. “But the and we talk about land damages,” she Wirth also praised Waterbury for kids.” best part is to see the way the kids are said. “encouraging students to reach beyond The honor from the AAPG Foundation enthused about what they are doing.” The cookie experiment demonstrates their comfort zones.” comes with a $6,000 prize to be split And, the hands-on experiments are profit and loss: the chocolate chips For her years of dedication and her between Waterbury and St. Mary’s School. especially important because of how much represent profit, but each crumble created passion for instilling in her students a love She will also receive an expense-paid technology is infused into every element of from the extraction process illustrates the for the natural world and their role within it, trip to the AAPG Annual Convention and children’s lives today, Waterbury pointed damages for which they would have to pay. the AAPG Foundation chose Waterbury as Exhibition in Calgary where she will be out. “It’s great when students take ownership 2016’s Teacher of the Year. presented her award at the All-Convention

“They are very into the information world of their role in protecting the land and When Waterbury was notified of her Luncheon. EXPLORER we live in. Our kids are so inquisitive and have all these resources. You constantly professionals and students during the ups regarding our Facebook posts. In addition, have to stay one step ahead of them,” Activity and downs of the industry.” we already have our lineup of speakers Waterbury said. “But science is always from page 34 Both technical talks were tremendously invited for monthly technical talks through changing too, so we have to move with it well-attended, with more than 50 February 2017. We welcome both and the students have to move with it if we organize a joint technical talk on full tensor participants each, thanks in part to the use potential speakers and out-of-town YPs to are going to keep our nation running.” gravity by Colm Murphy for students and of social media. participate in these events. YPs. Back in October, we began to reach My participation in AAPG has been A Community Built on Oil and Gas Lately, the AAPG YP KL Chapter out to geoscience students and YPs using an excellent learning experience. The has been very active. We recently our brand new Facebook page to post AAPG YP KL Chapter continues to grow The oil and gas industry has been a organized two technical talks given information on upcoming events. Since and has been successful thanks in part to major component of Mount Carmel’s local by Howard Johnson and Bala Kunjan students and YPs are very active users of constant support from the AAPG Young economy over the years, and that influence during November and December 2015, social media, this allows us to get in touch Professionals Committee and the Asia persists today. respectively. Howard Johnson from with more potential participants who are not Pacific Region. Hopefully, sharing my “We have oil wells all around us here,” Imperial College, London, gave a very on our original mailing list, and to spread experience and encounters with AAPG said Waterbury. “There are even some interesting talk on “Plio-Pleistocene fluvial the word to those who are not yet AAPG will encourage more geoscience students pump jacks right here in town. So when depositional systems in SE Asia” and Bala members. and YPs to join the Association and realize we’re talking about the drilling, it’s easy to Kunjan from Melbourne touched on the hot To date, we have received a lot of the benefits of staying AAPG members

make it relevant to them.” topic of “Addressing the concerns of young positive feedback from event participants throughout their careers. EXPLORER Many of the students live on large farm

WWW.AAPG.ORG JUNE 2016 37 EXPLORER FOUNDATIONUPDATE Donald O’Nesky Wins Chairman’s Award By TAMRA CAMBPELL, AAPG Administration Team

t is with great enthusiasm that the booth at the AAPG Annual Convention AAPG Foundation announces that and Exhibition has likely spoken with IDonald A. O’Nesky is the 2016 O’Nesky, who is ever present and enjoys Chairman’s Award recipient. sharing the benefits of supporting the This award is given by the AAPG geosciences through the Foundation Foundation in recognition of persons who programs. have made extraordinary contributions (monetary or service) to the AAPG Military Veterans Scholarship Program Foundation while calling attention to the role and value of the Foundation. When the Foundation established its O’Nesky has certainly met the newest program, the Military Veterans qualifications for this award, not only Scholarship Program, it turned to through his service, but through his O’Nesky – a graduate of the U.S. Air monetary donations as well. Force’s prestigious Air Command and Staff College and the Industrial College O’Nesky’s Career with AAPG of the Armed Forces, as well as a 2000 inductee into “Who’s Who in the O’Nesky joined AAPG staff in 1978 Military in Oklahoma” – to assist with the after retiring from the U.S. Air Force as development of the program. a lieutenant colonel. He was appointed O’Nesky’s background provided him deputy executive director of the the knowledge and leadership skills Association and the Foundation in 1985, to make the program a reality. He now and in 1997 was appointed executive serves as the chairman of the Military director of the Foundation, in which Veterans Scholarship Committee, which capacity he served until 1999. oversees the selection of the scholarship During this time, O’Nesky saw the Don O’Nesky and his wife Mary. recipients on an annual basis. Foundation through the process of O’Nesky currently resides with his wife becoming an Oklahoma non-profit continues to serve the Foundation as a the Foundation Grants-in-Aid Program. of 55 years, Mary, in Venice, Florida. The corporation, and he oversaw the part of the Members of the Corporation This fund annually provides grants to AAPG Foundation will present O’Nesky establishment of the Members of the and as a member of the Fundraising graduate students whose thesis research with his award at the 39th Annual Trustee Corporation. Advisory Committee. has application to the search for and Associates Meeting in Hawaii this O’Nesky joined the Trustee While O’Nesky never had a formal development of petroleum and energy- October. Associates, the major donor group of the course in geology, the opinion of his mineral resources, and/or to related For more information on the AAPG Foundation, taking an active role friends and colleagues is that he has environmental geology issues for their Foundation, Trustee Associates and in the organization by regularly attending earned “a degree by association” and in research projects. Grants-in-Aid program, visit foundation.

the meetings and serving as vice-chair 2002, they established the Donald A. and Throughout the years, anyone aapg.org. EXPLORER in 2009 and chairman in 2012. He Mary O’Nesky Named Grant, as part of who has stopped by the Foundation

38 JUNE 2016 WWW.AAPG.ORG The monthly list of AAPG Foundation contributions is based on information provided by the AAPG Foundation office. EXPLORER Foundation Contributions for April 2016

General Fund David J. McBride University of Texas Michael S. Johnson Talal K. Al-Hosni Andrew McCarthy David A. Pustka Named Grant Syed M. Ali Graham A. McClave Margaret A. C. Rogers John W. Robinson Scott W. Allison James D. McColgin University of Tulsa Kathy L. Aulstead Mark D. McCuen Robert W. Scott Mruk Family Named Grant Seymour R. Baker Donald H. Michel University of Utah Peter MacKenzie Jack R. Banttari Douglas F. Minken John O. D. Byrd Kurt Bayer Piotr K. Misiarz Kate M. Schwehr Norman H. Foster Monty S. Beharry David W. Morrow Virginia Tech University Memorial Grant Mark E. Bengtson Thomas H. Neel Justin Sommerville L. Michael Kozimko John W. Bishop Kerry D. Newell James R. Lantz John R. Bitler William H. Nichols Distinguished Lecture Fund Robert E. Blaik Francisco O. Perez J. Todd Stephenson Peter W. Gester Jon F. Blickwede Elwin M. Peacock Lisa M. Towery Memorial Grant Hege M. N. Bolas William S. Peirce Kenneth C. Gester Philip Braithwaite S. George Pemberton Dean A. McGee Roger P. Brand Michael L. Pierce Distinguished Lecture Fund Richard W. Beardsley John A. Breyer Aurelien Pierre Alejandro A. Chalco Named Grant Ronald F. Broadhead Philippe J.Y.M. Rabiller Baoming Zheng Peter MacKenzie Mark A. Brokaw Robert D. Rall Mike Brown Rafael E. Ramirez Haas-Pratt Distinguished Robert K. Goldhammer Timothy S. Brown Christopher A. Rautman Lecture Fund Memorial Grant James G. Buchanan Ramon G. Reyes David J. McBride Gloria Eisenstadt John O. D. Byrd Donald E. Rice Beatriz Garcia-Fresca David C. Caulfield Jason B. Robbins Education Fund Arthur L. Champine Margaret A. C. Rogers Jennifer L. Burton Thomas A. Hendricks Yves M. R. Chevalier Juan R. Roman-Ramos Andrew S. Harper Memorial Grant Chevron Matching Elisabeth L. Rowan Donald W. and Susan E. John W. Mason Employee Fund Neil E. Rutherford Lewis Matching gift given Phillip Salvador Weimer Family by David Fugitt Alfredo Sanchez-Monclu Grant from Donald W. and Named Grant Robert E. Childress William B. Schroeter Susan E. Lewis Fund at Laura S. Foulk James J. Chodzko Daniel E. Schwartz Fidelity Charitable in honor Steven R. Clawson Kate M. Schwehr of Larry Funkhouser William E. and Jean Crain Gareth E. Cross Daniel R. Shaughnessy Susan S. Nash Named Grant Anna M. Cruse Robert C. Shoup Elwin M. Peacock Michael C. Dean M. A. Custer Major Smith In memory of Gerhard Diephuis J. William Soderman Charles Weiner James A. Hartman Student Timothy Diggs Justin Sommerville Leadership Summit Fund Calin Dragoie Juan I. Soto Grants-in-Aid Fund Chevron Matching Employee James A. Drahovzal Stephen W. Speer Melody A. Bechberger Fund Harvey R. Duchene Linda R. Sternbach Philip R. Brown Matching gifts given Subhasis Dutta James D. Suydam Piotr K. Misiarz by William Paul J. English Eric T. Taylor Elwin M. Peacock Williams and Richard Ball Miguel F. Etayo Dennis E. Thomas In memory of Daniel E. Schwartz Bruce A. Falkenstein Alexandre M. Turner Cyrus Strong V Michael T. Farley William Turner Christopher A. Rautman Imperial Barrel Award Fund Barry M. Faulkner Willem J. E. Van De Graaff James D. Suydam Burns A. Cheadle Michael D. Fawcett Johannes T. Van Gorsel David R. Cook David R. Feineman Lawrence B. Van Ingen Barrett Family Named Grant Gerhard Diephuis Lucas J. Fidler Holly R. Vescogni Amanda L. Kohn Herbert G. Martin Jacek B. Filbrandt Valerie K. Walker Phillip Salvador D. Ramsey Fisher Kane C. Weiner Bernold M. “Bruno” Joerg Schmitz Laura S. Foulk Bonnie R. Weise Hanson Memorial Daniel E. Schwartz David S. Fugitt Michael J. P. Welland Environmental Grant Krzysztof M. Wojcik Antonio J. V. Garcia Stanley E. Williams Margaret A. C. Rogers Beatriz Garcia-Fresca Paul D. Wilson Military Veterans Matthew D. Gentry David F. Work Donald A. and Mary Scholarship Fund Kenneth C. Gester ONesky Named Grant D. Gregory Cable Steven L. Getz Awards Fund James E. Brown Anonymous Kathryn A. Gibbons Jan E. Van Hinte Sr. James J. Chodzko Jerome E. Glass Baoming Zheng Eastern Section Named M. A. Custer Craig L. N. Glassinger Grant James A. Gibbs Steve K. Grimsley Teacher of the Year Award Peter MacKenzie In memory of Richard H. Groshong Jr. Amanda M. Veazey Charles Weiner Claudia J. Hackbarth Steven J. Williams Edward B. Picou Jr. Named Andrew S. Harper John K. Hall Grant Harry William Mueller III Michael A. Hall Digital Products Fund Daniel E. Schwartz Noble Energy Judith L. Hannah Bryn Mawr College Matching Gift Program Dexter L. Harmon Arthur W. Leibold Frank E. Kottlowski William S. Peirce John O. Hastings Jr. Colorado School of Mines Memorial Grant Sarah Springer and David R. Henderson Kim R. Butler Timothy F. Lawton Rusty Riese Joanne E. Henson Indiana University, Christopher A. Rautman Alan P. Heward Bloomington John F. Bookout Jr. Military John W. Hidore Kate H. Baker Fred A. and Jean C. Dix Veterans Scholarship Fund Debra K. Higley Arthur W. Leibold Named Grant Jerry G. McCaskill Jr. Douglas O. Hill Kansas State University John T. Murphy Jr. Daniel E. Schwartz Kenji Hirabayashi Samuel H. Peppiatt Gary J. Hoose Michigan State University Grants-In-Aid Committee Named Public Service Fund Warren J. Hudson Joao C. A. Figueira Named Grant Jack C. and Catherine I. Tanya L. Inks Oregon State University Peter MacKenzie Threet Endowed Fund for James W. Jennings Jr. William C. Bahlburg the Advancement Eric H. Johnson Peter F. Cowell Gretchen Nakayama of Petroleum Geology Dewi J. Jones Princeton University Memorial Grant Gregory M. Larberg James C. Jones II Kate H. Baker John O. D. Byrd Daniel E. Schwartz John M. Kapchinske San Diego State University Gianni Matteucci Robert A. Kaufmann John A. Abeid The Gibbs Family Yousif K. Kharaka Eugene R. Hering III Gustavus E. Archie Endowment Fund Fiona E. Kilbride Daniel E. Schwartz Memorial Grant James A. Gibbs Hideki Kitagawa Texas A & M University James J. Parr Robert B. Peacock Amanda L. Kohn James J. Chodzko Daniel E. Schwartz J. Michael Lacey James F. Trickett E.F. Reid Scouting Fund James R. Lantz Ohio State University John W. Robinson Named Terri Duncan Jaquelyn K. Ledbetter Carlos E. Macellari Grant Ronald L. Hart Dario H. L. Dimas Univ. Nacional de Colombia John W. Robinson Bryan Haws Alexander H. MacKay Dario H. L. Dimas Margaret A. C. Rogers Duncan T. MacKenzie III University of Southern CA, Jon R. Withrow Named Peter MacKenzie Los Angeles Grant Visiting Geoscientist Fund Sayi P. Malineni Peter F. Cowell Jerry G. McCaskill Jr. Herbert G. Martin William V. Maloney Andrew S. Harper Jon H. Pedersen Tennille E. Mares University of Calgary Kenneth O. Stanley John W. Mason Bruce A. Falkenstein Memorial Grant Gianni Matteucci University of Minnesota Johannes T. Van Gorsel Jack R. Banttari

“Transforming U.S. Energy Infrastructure in Policy Watch a Time of Rapid Change,” details the SPR deficiencies and estimates the upgrades from page 30 and maintenance would cost $1.5–$2 billion. inadequacies in SPR distribution Congress has seemed especially infrastructure. In addition, many of the interested recently in drawing down SPR facilities are reaching the end of their oil to pay for other government programs. design life. However, Murkowski and others have The distribution infrastructure was opposed using the SPR like a piggy designed when SPR needed to move bank and have advocated for needed crude to refineries in the U.S. interior. repairs and upgrades. SB 2012 passed Today, refineries in the Midwest are well the Senate in April and would require that supplied by Bakken and Canadian oil. the Energy Department conduct a full However, the SPR now needs more marine assessment of the reserve’s effectiveness distribution capability to supply coastal and role in national security. Such refineries. congressionally-mandated studies are

The 2015 Quadrennial Energy Review, often the basis for future appropriations. EXPLORER

WWW.AAPG.ORG JUNE 2016 39 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 EXPLORER unavailable, the person’s membership classification and anniversary date are listed. INMEMORY

Myron (Mike) Horn Horn also served as an invaluable member of the editorial board of Search and Discovery, Myron (Mike) Horn was a contributor, and its most frequent viewer was an influential part of and examiner. AAPG and Datapages. As a consultant, he prepared research He passed away March reports and databases on a number of subjects, 26 at the age of 86. including burial history, source rocks, basin He became a history, giant fields, stratigraphic traps and member of AAPG in the fractured reservoirs. 1950s and served in He worked tirelessly as a volunteer with many different capacities AAPG/Datapages on several important projects, for the duration of his centered on his research as a consultant and membership. HORN presented as databases. Horn was chair of His most recent project, in conjunction with the Research Committee and co-chaired the Peter Wigley of the UK, was the spatial location Geothermal Survey of North America. and cataloging of more than 10,000 published During his tenure as AAPG Editor, AAPG seismic images for inclusion, along with his other published more pages than in any other databases, in the current DEO-GIS project. comparable period of time. These databases have involved thousands He received the AAPG Distinguished Service of hours of his time, utilizing his ingenuity, Award in 1986, Certificate of Merit in 1993, innovation and intellectual insight. Honorary Membership in 1997 and Special Horn received a bachelor’s degree from the Award in 2011. University of Colorado in 1952 and then went to work for the United States Navy. He later received a master’s degree followed by a doctorate from Rice University. In 1960, Horn joined the Pure Oil Company research lab as research geophysicist where he developed the first comprehensive computer system for log analysis. In 1964, when Pure merged with Union Oil, Horn joined Cities Service Research. In 1970, he became Director of Exploration and Production Research. His staff was involved in a wide range of geoscientific research, and his generous policy in regard to publication, professional involvement and attendance at technical meetings not only served Cities’ recruitment well, but also the profession and AAPG, in particular. He then held two management positions in Occidental operations before retiring to begin his career as a consultant.

Charles Weiner

AAPG Emeritus member Charles Weiner passed away at the age of 92. Charles became a member of AAPG in 1952. In the years that followed, he was named as a Chairman and Trustee Associate. In his career, Charles was a founding partner WEINER of the Texas Crude Oil Company. He was involved with the discovery of a billion barrels of oil in eight countries. At the age of 82, he created Westerly Exploration. He passed away April 6, 2016.

Charles Thomas Austin, 82 Houston, Texas, May 24, 2015 Joseph Buford Carl, 85 Decatur, Ala., July 14, 2015 Arthur Leo Evans, 91 Calgary, Alberta, Feb. 20, 2016 Charles Ray Gober, 80 Throckmorton, Texas, March 21, 2016 Donald R. Hembre, 83 Littleton, Colo., March 7, 2016 Glen Dean Hollensbe, 54 Mount Vernon, Ill., April 23, 2015 Perry Gregory Holloway, 88 Shreveport, La., April 15, 2015 Myron K. Horn, 86 Tulsa, Okla., March 26, 2016 Thomas Edward Lains, 67 Oklahoma City, Okla., Sept. 28, 2015 Keith Floyd Oles, 94 Colorado Springs, Colo., Jan. 28, 2016 Harry Ptasynski, 87 Casper, Wyo., Dec. 19, 2013 Jaser Nicola Rafidi, 88 Metairie, La., Aug.19, 2015 Cyrus Strong, 83 Houston, Texas, April 7, 2016 Harry Vernon Tucei, 86 Tulsa, Okla., Sept. 18, 2014 Charles Weiner, 92 Houston, Texas, April 6, 2016 John William Wood, 85 Dripping Springs, Texas, Feb. 13, 2015 Delmar G. Westover, 80 Edmond, Okla., Aug. 2, 2015 40 JUNE 2016 WWW.AAPG.ORG EXPLORER AAPG Seeks Your Officer Nominations apg would like your assistance and submit his/her name and determine if he/ advice in a very important process. she is willing to serve if elected. AThe AAPG Nominating Committee, The potential nominee should be a sub-committee of the Advisory Council, informed of the level of commitment the is responsible for recommending a office requires. list of nominees for AAPG office to the It should be made clear to the person Executive Committee for its approval each being nominated that a nomination does year. And to help us compile the best list not ensure candidacy. possible, we’re seeking your input and Review the complete Charge to suggestions as to potential AAPG officer Nominator online for a comprehensive list candidates. of what is required to make a nomination. The deadline for nominations is There are additional provisions in the Aug. 1, 2016. Nominations received after Bylaws (Article II, Sections 14 and 15) the date will be held for next year’s officer advising limitations on candidacy. If you nominations. plan to make a nomination, please review The nominating committee will the Bylaws. consider candidates for the following We ask that you please submit your positions: recommendations on the form(s) provided u President-Elect: (one-year term: on the AAPG website. These forms are 2017-18; President 2018-19) intended to bring greater uniformity and u Vice President Regions: (two-year consistency to the nomination process term: 2017-19) and will ease the task of submitting u Secretary: (two-year term: 2017-19) nominations. Consider the following before While completing the online forms is submitting a nomination: the most efficient method, you can also The person making the nomination download the forms and email or fax to

must acquire the nominee’s permission to (918) 560-2626 by Aug. 1, 2016. EXPLORER

global energy, yet with increased pressure DEG to reduce our environmental impact. That is from page 42 precisely why AAPG created the DEG and why this year we have taken the steps to recharge and revitalize the DEG Advisory Balancing Demands Board with representatives from every AAPG Section and Region, with specialists As I close out this year as president of and members with a passion for the the Division of Environmental Geosciences environment. I am honored by the support and work of You, the members, along with the the great team of the Executive Committee: Advisory Board and the incoming Executive Vice President Bruce Smith, Secretary- Committee can make a difference. You Treasurer Sean Kimiagar, Editor Michele can inform the public. You can work to Cooney, President-Elect Tim Murin and Past secure the energy of tomorrow. And most President Jeffrey Paine. importantly you can work to make sure that I also see great challenges ahead of us it is generated in a safe and environmentally

as an industry with growing demands for sound manner. EXPLORER

in Green Canyon, Gulf of Mexico.” DEG Awards u The DEG Past-Presidents Award is from page 42 given to Jeffrey Paine for his service in 2014-2015. seismic models and extracted attributes, The DEG Certificate of Merit is Farnsworth, Texas.” awarded to: u The Best Poster at the 2015 Annual u Doug Peters for his outstanding Convention goes to S. Flewelling, M. efforts in the coordination of the technical Sharma, D. Merrill, A. Lewis and J. program for the 2015 ACE and the Rominger for “Evaluation of human compilation of the technical judging scores health risks via drinking water for spills of to award the Best Paper and Best Poster hydraulic fracturing fluids.” Awards. u The President’s Certificate for u John Hughes for his global efforts in Excellence in Presentation (Poster) goes to the coordination of the technical program

A.W. Laake and Z. Wolfe for “Geohazards for the 2015 Melbourne ICE. EXPLORER

WWW.AAPG.ORG JUNE 2016 41 EXPLORER DIRECTOR’SCORNER Three Fundamental Constants of the Energy Industry By DAVID CURTISS

ver the past months I’ve written processes that changes. frequently about strategies each of us What aspects of petroleum My background is in petroleum systems Ocan use to not only survive the current and basin modeling. As a graduate downturn in oil and natural gas prices, but geology and our industry will remain student, when most geologists would ask discover ways to thrive. the same in the next 10 years? How about the reservoir, I was asking about the That may seem like a tall order, might you and I use this knowledge source rock. Ten years later, everyone was particularly if you’ve recently experienced a to add value and position ourselves asking about the source rock that, in the layoff, or even if you’ve kept your job while case of some unconventional petroleum your colleagues and friends did not. But my for a successful future? systems, is the reservoir. fundamental belief is that the ingenuity and CURTISS drive that led you into this profession are the u Which leads me to a third aspect same characteristics that will propel you into from furniture to groceries. Leveraging fuels, particularly oil and natural gas. of the industry that won’t change in the the next phase of your career. technology, aggressive marketing and razor- In fact, the latest reference case by the next 10 years: the need for ingenuity One theme I keep revisiting is that of thin margins – they have changed the ways U.S. Energy Information Administration in and innovation to continue finding and searching for ways to view your current consumers purchase and receive goods the early release of its 2016 Annual Energy developing these resources to fuel the situation from different vantage points: we and services. Outlook indicates that in 2040, two-thirds planet. need to avoid linear thinking and expand “And I submit to you that that second of U.S. energy consumption will come from The oil and natural gas contained within our perspectives to identify opportunities to question is actually the more important of petroleum and hydrocarbon liquids and these unconventional petroleum systems add value to our employers, industry and the two, Bezos continues, because you can natural gas – two-thirds! was there all along – we even knew it was profession. build a business strategy around the things It’s true that the energy mix is shifting and there. But it was ingenuity and innovation, After all, that’s what we get paid to do. that are stable in time.” the reference case supports that. It shows both technological and business, which But broadening our thinking doesn’t just petroleum use for transportation dropping enabled producers to develop these happen. Fundamental Constants of the Industry by 10 percent due (mostly) to efficiency resources and unleash the unconventional I’m constantly looking for ways to create gains, and renewables are growing at a energy revolution. new perspectives, and it often comes down Amidst all the changes our industry rapid clip. Circumstances are changing The need for oil and natural gas, the to asking questions – questions I haven’t is experiencing, from unconventional and that change is accelerating. But opportunity for new understanding and previously considered. resources to low commodity prices and the humanity will remain reliant on fossil fuels new discoveries about how the earth Here’s one for you: great crew change, there may be a useful as a significant source of energy because works, and a continuing need for creativity “I very frequently get the question: perspective here that we can adopt for the global energy system is enormous, on and ingenuity are three circumstances that ‘What’s going to change in the next 10 ourselves. a scale that most people have difficulty won’t change over the next 10 years. years?’ And that is a very interesting What aspects of petroleum geology fathoming. If we want the lights to stay on How might you and I position ourselves question; it’s a very common one. I almost and our industry will remain the same in the at an affordable price, we’re going to need to use these insights to prepare for the never get the question: ‘What’s not going to next 10 years? How might you and I use these fuels. future? change in the next 10 years?’” this knowledge to add value and position What other aspects won’t be changing? That quote is from Jeff Bezos, founder ourselves for a successful future? u A second element that will not change Reach out to me on Twitter and CEO of Amazon, from a 2012 video I’ve been pondering this question, and is fundamental earth processes. (@DavidKCurtiss) and share your thoughts. interview. here are three conclusions I’ve come up Ours is an evolving science, and Bezos and Amazon are disrupters. with: there is still much to learn and discover They’ve disrupted entire industries, about how earth systems work, but the beginning with bookstores and electronic u We will still need energy in 10 years fundamentals are rooted in physics and are books to large retailers selling everything and the majority of it will come from fossil immutable. It’s our understanding of these

DIVISIONSREPORT: DEG Perceptions and Reality of Energy Resources By JEFFREY B. ALDRICH, DEG President uick, name three nuclear power plants. percent of all the energy generated globally What word describes them? each year. Q If you are like most of the North If the bottom 30 percent were asked American or European public, the names When you are facing a daily about nuclear or oil or gas energy, they that come to mind would be “Fukushima,” would look at it against the alternatives of “Chernobyl” and maybe “Three Mile challenge of survival, the charcoal or animal dung. They would ask Island.” lowest-cost form of energy is you first, “How much does it cost?” then, According to Gallup, the most common “How reliable is it?” and “How much will it term used to describe nuclear energy is often the only viable solution. improve my life?” “dangerous.” When you are facing a daily challenge ALDRICH Ask the same public to name three oil of survival, the lowest-cost form of energy is or gas fields and the most common terms A More Global Perspective Well over half of this population still has often the only viable solution. associated with them might be “Macondo,” no access to reliable power, which is far At the COP21 accords in Paris last “Exxon Valdez” and “Gasland.” Now I would like to turn your attention more than the population that uses three year, India committed to reducing future The public, in the developed world, to the other 82 percent of the world’s quarters of the power generated today emissions, but they have also set higher focuses on only the worst cases from three population that was not surveyed – the just (that population being us). Therefore, if you production targets for coal, growing annual out of 441 nuclear power plants, of which over 6 billion people who do not live in a are reading this, you are part of the top 18 coal production from 550 million tons in only one of those three, Chernobyl, caused developed country. percent of the world that uses about 55 2016 to 1.5 billion tons by 2022. India is also any deaths. signing a $4.5 billion gas pipeline deal with Currently, nuclear facilities produce DEG 2016 Honors and Awards Iran to bring 1,112 MMSCFD to India. more than 10 percent of the global energy Also, China is already well along on the mix and have been doing so safely for AAPG’s Division of Environmental goes to J. Moortgat and H.R. Brourman for construction of the Power of Siberia pipeline decades. Geosciences (DEG) is pleased to “Viscous and gravitational fingering in EOR bringing 1,029 BCF per year to China. Likewise, there are more than 932 giant announce the recipients of its 2016 awards and carbon sequestration.” Energy security has a much different oil and gas fields and countless total fields, for service to the organization and for feel if energy is less than 5 percent of your yet the public perception is focused on rare presentations (oral and poster) given at the u The President’s Certificate for budget and you don’t even think about it not disasters and celluloid fantasy. 2015 Annual Convention and Exhibition Excellence in Presentation (Oral) goes being there, as in the United States. If the Also, according to Gallup, the U.S. oil (ACE) in Denver. to A.C. Hutton and R.S. Balch for cost of energy is equal to your food costs and gas industry, thanks to low gasoline “Geologic modeling of an active CO2 EOR and it takes a significant amount of your time prices, is approaching an all-time high u The Bernold M. “Bruno” Hanson and carbon storage project using 3-D to gather your energy, then access to secure, public approval rating – a dismal 34 Excellence of Presentation Award for Best cheap energy has much more value to you. percent, which is only slightly above Paper at the 2015 Annual Convention See DEG Awards, page 41 Congress at 31 percent. See DEG, page 41 42 JUNE 2016 WWW.AAPG.ORG EXPLORER

WWW.AAPG.ORG JUNE 2016 43 EXPLORER

44 JUNE 2016 WWW.AAPG.ORG