FEBRUARY 2021

SIPES HOUSTON

Susan Morrice

Continued Education Seminar

Exxon Chevron Merger?

Oil Bull Reading

Keystone Pipeline

Mike Austin

5 Reasons Cars Will Stay

Quarterly Gas Report

SIPES HOUSTON CHAPTER
3242 Summerland Drive
Manvel, Texas, 77578

Tel: 713-249-8997
www.sipeshouston.org
email: sipeshoustonchapter@gmail.com

Chapter Officers 2020

Chapter Chair
Jeff Allen
Email

Chair Elect

Past Chair
Barry Rava
(281) 235-7507
Email

Secretary
Steve M Smith
(832) 236-1788
Email

Treasurer
Luis Carvajal
(832) 360-3783
Email

Technology Chair
Godswill Nwankwo
(832) 297-1174
Email

Technical Program Chair
Pete Marshall
(713) 594-2809
Email

Public Relations Chair
Jeff Lund
(713) 275-1664
Email

On the cover: Want to wear this hat? Buy it from SIPES at the next luncheon! $50. Also available is “woman” instead of “man”

Membership Chair
Gene Kubelka
(713) 582-8569
Email

Newsletter Chair
Jeff Allen
Email

Deal Buyers List Chair
Bill Smith
(713) 650-3060
Email

Ryan Price
Email

Sponsor Coordinator
Mark Hazmat
(832) 540-3216
Email

Continuing Education Chair
Richard Willingham
Email

National Directors
Barry Rava
(713) 621-7282
Email

Jeff Allen
(713) 302-5131
Email

Office Manager
Meghan Jones
(713) 249-8997
Email

In this issue


Letter From The Editor
Jeff Allen

Susan Morrice

CES

Weatherford Chapter 22

2020

Exxon & Chevron Merger?

Calendar

Keystone Pipeline

Oil Bull News

SIPES LinkedIn Page

Mike Austin Opinion

Are You An Oil Man? HAT!

Quarterly Gas Review

5 Reasons Gas Will Stay

Oil in Virus Alley

Dan Smith, RIP

Facts

LETTER FROM THE EDITOR

The January luncheon was a big success. This month we have two events. The Continuing Education Seminar is a Zoom event on February 4th for $10. Please see CLICK HERE for details and to register.

The February Luncheon will be both in person and zoom because it is a joint meeting with SPEE. Please CLICK HERE to register and listen to Susan Morrice.

SIPES Houston is selling a hat for $50. Wear it with pride! See the following pages for details.

Mike Austin, a Denver Chapter member, has shared his opinion on electric vs gas on subsequent pages.

SIPES Houston will be hosting an invite-only prospect show in March. Prospects will be reviewed by the Houston Board before allowed to be presented at the event. If you have a prospect please send it to me to be added to the list.

If you have a prospect, you can put it in this Newsletter for $250.

Stay lean, stay hungry,

Jeff Allen

Jeff Allen

A case history in beating all odds, discovering the first oil in Belize

THIS EVENT WILL BE IN PERSON AT THE PETROLEUM CLUB & A $10 ZOOM OPTION BROUGHT TO YOU BY SPEE
MASKS ARE REQUIRED
 

SIPES LUNCHEON EVENT February 18, 2021 @ 11:30 AM

CLICK HERE to sign up and attend IN PERSON OR ZOOM OPTION AS WELL

Belfast born, Denver based Susan Morrice is the Co‑Founder and Chairperson of Belize Natural Energy. 

Having found the first oil in Belize in 2005, Susan went on to develop her company based on the Educo Educational Model which she and her late business partner, Mike Usher, had attended and knew led to their successful discovery. Although BNE has consistently been the No. 1 revenue generator in Belize its legacy reaches beyond dollars.  

BNE has won numerous awards including the Green Company of the Year; the Employer of the Year and the prestigious Global GetEnergy Education ‘Learning at the Core’ Award (beating 50 countries) for benefitting & empowering communities.

The company attracts the attention of World Leaders and this resulted in a bi-lateral trade agreement with the UAE, signed at the United Nations in New York in 2015. Susan has a passion for the protection of the environment and a vision of uncovering the true potential of everyone with whom she meets.

If you would like to find out more, attend a ‘Virtual Tour’ of Belize Natural Energy, or collaborate on the areas that matter most to you, please contact Susan direct & / or visit www.educoworld.com.

SIPES Houston Continued Education

CLICK THE BUTTON BELOW TO REGISTER

$10 to attend – ZOOM EVENT

Qualify for Continuing Education Credits

Weatherfod Faces Chapter 22 Bankruptcy

Weatherford International’s chief executive has resigned just days before the struggling oil-field services company’s annual meeting and amid a debt crisis that could lead to a second bankruptcy filing in less than a year.

Mark McCollum resigned Sunday, the company said Monday, and COO Karl Blanchard and CFO Christian Garcia will oversee operations during a search for McCollum’s replacement. Garcia told investors Monday that McCollum’s departure was “not the result of any

dispute or disagreement with the company on any matter relating to the company’s accounting practices or financial statements.”

His exit, however, comes days ahead of Weatherford’s June 12 annual meeting and as a recent filing with the Securities and Exchange Commission reveals that the oil crash created a financial crisis that could lead to the company defaulting on debts and filing for bankruptcy.

“The problem is that Weatherford emerged from bankruptcy at the wrong time with too much debt,” said Sarah Foss, a Houston-based legal analyst with the London financial news service Debtwire. “They left bankruptcy with $2.7 billion of debt. They shed $6.7 billion of debt. That’s impressive but they didn’t anticipate the things that are happening now.”

McCollum left an executive position at competitor Halliburton to join Weatherford as CEO in March 2017 as the industry was coming out of the 2014-16 oil downturn. Weatherford, which had racked up $10 billion in debt, went more than four years without making a profit and declared Chapter 11 bankruptcy in July 2019.

The company, which is based in Switzerland with principal offices in Houston, emerged from bankruptcy in December and lost $966 million in the first-quarter as a price war between Russia and Saudi Arabia and the coronavirus pandemic began to crush crude prices. “Weatherford delivered materially improved performance this year until the onset of the COVID-19 pandemic and actions by certain oil producing nations created unprecedented uncertainty in the energy and other markets,” Weatherford board Chairman Thomas Bates said. “We will continue to focus our efforts on reducing costs and managing liquidity in the face of this challenging business environment.”

Although the company reported $950 million in cash and available credit at the end of the first quarter, Weatherford had a large debt payment and interest payment due on June 1, Foss said.

Weatherford said it made the June payments, but the company recently retained bankruptcy and restructuring law firm Paul Weiss, according to Foss.

The company’s options, she said, include renegotiating payments and credit agreements with lenders or to file a second Chapter 11 bankruptcy. Some lenders are already showing signs of impatience. New York investment management firm and activist investor D.E. Shaw Group, a bondholder and large Weatherford shareholder, is seeking to unseat three board members at the company’s annual meeting Friday.

Weatherford could be “in violation of these covenants, which would give the lenders the ability to force the company into default and/or bankruptcy,” Pirrong said. “That’s an unpleasant option that both the borrower and lenders want to avoid, so the company and some of its lenders are negotiating to restructure the transactions.”  CHRON.COM

Venezuela Hired Democratic Party Donor

Newly filed lobbying records show Venezuela’s socialist government previously hired a longtime Democratic Party donor for $6 million at the same time it was lobbying to discourage the U.S. from imposing sanctions on the oil-rich nation.

The documents, which were disclosed Thursday, show a U.S. subsidiary of

Venezuela’s state oil giant PDVSA agreed to hire Marcia Wiss’ Washington law firm in March 2017. That’s the same month it signed a consulting deal for $50 million with scandal-tainted former Congressman David Rivera. Wiss, an international trade lawyer with a history of donations to the Democratic Party, including a $1,500 contribution to Joe Biden last year, denies she did any lobbying work. Her former client — now under new management — said it was unaware of the full extent of her work to determine if it constituted political activities benefitting Nicolás Maduro’s government. The PDVSA subsidiary also took the unusual step of registering retroactively as a foreign agent, disclosing the contracts with Rivera, Wiss and a third vendor. The contracts have come to light as allies of opposition leader Juan Guaidó work with the Justice Department to uncover any corrupt dealings at another wholly owned PDVSA subsidiary, Houston-based Citgo, which for years operated as a cash cow for Venezuela’s ruling party. A Guaidó-appointed board wrested control of Citgo, the sixth-largest independent U.S. refiner, after the Trump administration recognized him as Venezuela’s rightful leader in 2019.

The same Guaidó-appointed officials behind the new foreign lobby filings last year sued Rivera for allegedly breaking his consulting contract. Federal prosecutors in Miami are also investigating whether the Republican broke foreign lobbying rules.At the time both Wiss and Rivera were retained, Maduro was trying to curry favor with the Trump administration, avoiding outright criticism of the new U.S. president while funneling $500,000 to his inaugural committee through Citgo.

The contracts with Rivera and Wiss were part of an effort to discourage the then-new Trump administration and other governments from imposing sanctions on Venezuela, according to three people familiar with the deals who spoke on condition of anonymity to discuss the politically sensitive matter. Payments came from a little-known, Delaware-registered subsidiary, PDV USA, which provided shareholder services to PDVSA independent of Citgo’s oil operations.

The three people said the holding company was regularly used by Maduro’s government for political activities in the U.S.

The charm offensive failed. Backed by exiles in Miami, Trump in the early days of his presidency hosted the wife of a prominent jailed Venezuelan activist and in August 2017 imposed the first of gradually more restrictive sanctions on PDVSA. Democrats cheered the hardline stance and the European Union began targeting Maduro allies with restrictions of its own.

Rivera’s political career unraveled amid several election-related controversies, including orchestrating the stealth funding of an unknown Democratic candidate to take on his main rival in a South Florida congressional race and a state investigation into whether he hid a $1 million contract with a gambling company. He has never been charged with a crime.

CHRON.COM

Exxon & Chevron Merger?

The two largest oil companies in the United States, Exxon and Chevron, were in talks to merge amid the pandemic crisis last year, the Wall Street Journal has reported, citing unnamed sources in the know.

The report noted that such a tie-up would be one of the biggest corporate mergers ever and create a company that could be worth more than $350 billion based on Exxon’s and Chevron’s current valuations.

Yet such a deal, if it is still on the table, would also face considerable regulatory hurdles, the Wall Street Journal’s Christopher M. Matthews, Emily Glazer, and Cara Lombardo noted. The two companies are the largest descendants of the Standard Oil monopoly that the government broke up in the early 20th century, and a merger would undoubtedly raise some regulatory eyebrows.

Even if the Exxon-Chevron talks last year did not end in a deal, there were several large acquisitions in the U.S. oil space in 2020. The biggest was Conoco Phillips’ acquisition of Concho Resources for some $9.7 billion. Next, in terms of value, was Pioneer Natural Resources’ purchase of Parsley Energy for close to $8 billion, followed by Chevron’s $5-billion acquisition of Noble Energy, which was another all-stock deal like the Conoco-Concho tie-up.

Of course, none of these deals could compare to a merger between Exxon and Chevron in terms of value or effect on the industry. It has been decades since a deal of this size has taken place. The last deals of this size was when Chevron merged with Texaco and Exxon merged with Mobil.

The Wall Street Journal reported that Chevron’s CEO and chairman, Mike Wirth, was generally in favor of further consolidation in the oil space. Consolidation, according to him, would boost the efficiency of the industry.

“As for larger scale things, it’s happened before,” Wirth told the WSJ in an interview at the release of the company’s fourth-quarter results. “Time will tell.”

Meanwhile, this year U.S. producers are expected to continue shedding non-core assets as they streamline their operations in response to the new normal in supply, demand, and prices. More mergers may be on the table as some players in the field find it difficult to survive on their own.

By Irina Slav for Oilprice.com

EVENTS CALENDAR

Keystone Pipeline

President Biden’s decision to ax the controversial Keystone XL pipeline, which had been approved by his predecessor, is a tremendous blow for Canada’s energy sector and particularly its oil sands industry. For years, the U.S.’s oil-rich northern neighbor, which has the world’s third-largest proven oil reserves of 168 billion barrels, has for some time lacked sufficient takeaway capacity for the crude oil produced. That lack of transportation capacity is weighing heavily on prices for Canadian crude oil grades which sees the crucial heavy oil benchmark blend Western Canadian Select (WCS) trading at an almost $14 discount to West Texas Intermediate. Such a substantial discount is weighing on the profitability of Canadian heavy oil producers in a difficult operating environment where crude oil prices are caught in a prolonged slump. Even after the latest rally, sparked by Saudi Arabia’s surprise one million barrel per day production cut, WTI is selling at around $53 per barrel. The Keystone XL pipeline was an essential piece of industry infrastructure that would boost Canada’s pipeline transportation capacity and connect Canada’s economically vital oil sands to crucial U.S. energy markets. 

Lack of adequate access to U.S. refining markets, notably in the mid-west where many refineries are configured to process heavy and extra-heavy crude oil, could cripple Canada’s oil sands industry. The U.S. is the main consumer of Canadian crude oil importing, according to Natural Resources Canada, importing 79% of all petroleum produced by Canada during 2019. The U.S. consumes 98% of Canada’s crude oil exports, further underscoring the importance of Canadian energy companies being able to cost effectively transport crude oil to refineries south of the border. The long-standing lack of takeaway capacity saw the volume of crude oil placed in storage surge causing WCS prices to plunge. A chronic lack of pipeline capacity coupled with growing bitumen production caused the WTI WCS price differential to soar toward the end of 2018 to over $43 per barrel.

Source: Government of Alberta. That meant not only was WCS selling for less than $6 per barrel while WTI was trading at $43.50 a barrel but many oil sands companies were pumping bitumen at a loss. This development demonstrated how significantly the chronic lack of pipeline capacity was impacting Canadian crude oil blend prices and Alberta’s economically crucial oil sands industry. The crisis was that severe Alberta’s provincial government was forced to introduce mandatory production limits which commenced in January 2019 and ended in November 2020.

The axing of the Keystone XL pipeline has the potential to spark a repeat of what occurred during 2018 where rising oil sands production, a lack of takeaway capacity, and nearly full Canadian oil storage caused WCS prices to collapse. The situation will worsen as Canadian oil production grows in response to higher oil prices. A lack of pipeline capacity coupled with crude by rail being unable to fill the gap, and being more costly, will force the additional oil produced into storage. As storage volumes grow and move closer to capacity it will weigh on WCS pricing causing the price differential with WTI to widen, impacting the profitability of oil sands producers. While Biden’s decision aligns with the environmental, climate, and political outlook it will have an immense negative impact on Canada’s oil patch. The death of the Keystone XL pipeline effectively caps the growth of Canada’s oil industry and will weigh heavily on the prospects of Alberta’s vast economically important oil sands. For these reasons, it is a disappointing development for Canada and the country’s oil industry.

By Matthew Smith for Oilprice.com

Oil Bull Reading

Friday, January 8th, 2021

Brent topped $55 per barrel at the end of the week, as the pledge from Saudi Arabia to cut deeper has built a solid rally. Other forces are at play as well, including monetary stimulus, the prospects of deeper fiscal stimulus in the U.S., and vaccine optimism. “The past 10 weeks of trading have seen only one weekly decline, which was comparatively small,” said Carsten Fritsch, an analyst at Commerzbank AG. “This is testimony to the strength of the oil market in the last 2 1/2 months.”

Cold winter rallies coal and gas. Thermal coal prices in China are shooting up, and JKM prices for LNG are skyrocketing. Spot prices for liquefied natural gas (LNG) delivery in Asia jumped to a six-year high. A cold winter across the northern hemisphere is contributing to price gains. Javier Blas of Bloomberg notes that at least one LNG spot cargo was sold for $33-$36/MMBtu, which would be a historically high price.

U.S. LNG exports hit record high in December. U.S. LNG exports set a new record in December after a record-breaking November 2020, averaging 9.8 billion cubic feet per day (Bcf/d).

Pioneer paints gloomy outlook for shale. The immediate future of U.S. shale remains bleak despite Saudi Arabia’s pledge to cut an additional 1 million bpd in production to prop up prices. “I really don’t see much increase in the Permian Basin or the U.S. shale over the next several years,” Scott Sheffield of Pioneer Natural Resources (NYSE: PXD) said this week. I never anticipate growing above 5% under any conditions…Even if oil went to $100 a barrel and the world was short of supply.”

Shale pledges restraint. Devon Energy (NYSE: DVN) said that it won’t start drilling aggressively even with higher oil prices. “I have a hard time seeing the need for U.S. producers over the next several years to get back to double-digit growth,” new CEO Rick Muncrief told Bloomberg. “For this management team, if we really think about 2021, let’s keep it flat.”

2020 tied for warmest year on record, disaster costs double. 2020 was tied with 2016 for the warmest year on record, according to new data. The costs from natural disasters in the U.S. topped $95 billion last year, double the costs from the year before. 

Saudi Arabia looks to build bridges with Biden. Saudi Crown Prince Mohammed bin Salman called off a multi-year blockade of Qatar this week, and it also said it would voluntarily cut 1 mb/d of oil production. The new tone, some analysts say, is at least in part aimed at currying goodwill with the incoming Biden administration. 

Exxon releases GHG data for first time. ExxonMobil (NYSE: XOM) has disclosed emissions data for its Scope 3 emissions – those burned by end-users – for the first time. Exxon’s sales in 2019 were equivalent to 730 million metric tons of carbon dioxide, roughly the same amount as the entire country of Canada. It is also the highest of all the western oil majors. 

ANWR sale an “epic failure.” The highly-anticipated first lease sale in the Arctic National Wildlife Refuge (ANWR) was a major bust. Only 50% of the acreage on offer received bids, and the sale only generated $14 million in sales, a fraction forecasted in recent years. To make matters worse, the state of Alaska was the main player in the successful bids, and only two small private companies – Knik Arm Services LLC and Regenerate Alaska Inc. – obtained tracts. Environmental groups called the sale an “epic failure.”

SIPES HOUSTON LINKEDIN

Mike Austin Comments on Gas vs Electric

Mike Austin is a long time SIPES member from Denver. He often emails his educated perspective on the industry. He has allowed me to share his perspective, which we hope can become a monthly opinion piece.

This article and his opinion below:

HotAir.com

Job killing is not the answer.  Remember the EIA numbers show that around 40% of the lower 48 grid juice comes from natural gas….https://www.eia.gov/todayinenergy/detail.php?id=44896

If you want to make all cars electric, that’s even more juice needed on the grid.  The government has promoted solar and wind since 2009, but they still can’t crack 20% of the grid energy sources even with all the subsidies.  We’re going down a path of stupid…less energy but let’s make it all electric.  Outlaw natural gas in new home construction.  It’s going to get pretty cold…or hot…when the grid goes down.  Ask California last summer.

Meanwhile, China and India still use coal for nearly 2/3rds of their juice.  So, we let them continue on that path while we kill jobs in the USA because of climate change?  Does anyone have any common sense? Mike Austin, SIPES Denver Chapter

Are You An Oil Man?

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Email, SipesHoustonChapter@Gmail.com

Global Commodities Market

CLICK ON THE IMAGE ABOVE TO WATCH VIDEO

Global gas markets are facing unprecedented volatility, and demand recovery in 2021 remains uncertain. Join us as experts from the International Energy Agency (IEA) consider these trends and present the IEA’s Quarterly Gas Report.

5 Reasons Gas Powered Cars Will Stay

Oil prices are down and bans on automobiles powered by internal combustion engines (ICE) are up – way up. But don’t be fooled; there is plenty of life left in the ICE.

To be sure, there’s lots of momentum propelling the electric-vehicle market, including the recent inclusion of Tesla in the S&P 500. But oil-fired cars are here to stay, and there are five big reasons why. Before I get to them, though, a quick review of the bans.

On November 17, British Prime Minister Boris Johnson announced a ban on new gasoline- and diesel-powered vehicles that will take effect in 2030. Several other European countries have announced similar measures, including Norway, which has declared that by 2025, all new cars sold in the country must be zero-emission (meaning all-electric or fuel cell). Here in the U.S., California Gov. Gavin Newsom signed an executive order in September that bans the sale of new gasoline-powered vehicles in his state by 2035.

These moves have helped fuel the belief that, as one analyst put it, “the combustion engine is dead.” That claim is dubious for several reasons.

The first and most important is price. EVs are still too expensive for low- and middle-income consumers, as was made clear to me during a recent visit to Costco. Displayed near the entrance was a brand new EV, the Chevy Bolt. The price was a jaw-dropping $46,450. For that much cash, consumers could buy a brand new BMW 3 series. Or they could pick up a Mercedes-Benz C-class for less than $39,000. In fact, for the price of a single Chevy Bolt, thrifty shoppers could buy a pair of Toyota Corollas, which sell for about $18,000.

The second reason is mining. Replacing all the ICE vehicles in the U.S. with EVs would require stunning amounts of commodities like cobalt, lithium, and copper. The scale of the demand can be understood by looking at a letter that Professor Richard Herrington of the Natural History Museum in London sent to the British government last year. Herrington and his colleagues looked at the U.K.’s climate goals and the requirement that all its vehicles be converted to electricity by 2050. Doing so, they found, would require the entire world’s production of neodymium, three quarters of the world’s lithium production, and at least half of the world’s copper production during 2018. And remember, that’s just for the U.K.!

The U.S. has about 276 million registered motor vehicles, or roughly nine times as many vehicles as the U.K. Thus, if Herrington’s numbers are right, electrifying all U.S. motor vehicles would require roughly 18 times the world’s current cobalt production, about nine times global neodymium output, nearly seven times global lithium production, and about four times world copper production.

The third reason that the ICE will stick around has to do with a basic metric in physics: energy density. Yes, batteries are getting better and so are the cars that use them. But today’s batteries are still no match for oil when it comes to gravimetric energy density, or the amount of energy contained per kilogram.

Gasoline and diesel contain about 80 times more energy per unit of weight than the best lithium-ion batteries. Even if you assume that EVs are twice as efficient as ICE automobiles, the energy density of gasoline and diesel is still 40 times better than that of batteries. I could add a host of other reasons why we will continue using oil in transportation, including its relatively low cost, abundance, geographic distribution, and ease of handling. Add oil’s value in industry – for lubrication, and the fact that it can be turned into products ranging from cosmetics to shoelaces and bowling balls to milk jugs – and it becomes apparent that oil will be with us for a long time to come.

Fourth, internal combustion engines keep getting smaller, faster, more efficient, and more powerful. In 1908, Ford Motor Company launched the Model T. In 2011, the company unveiled its new 3-cylinder turbocharged 1-liter engine, the EcoBoost. The new engine is 28 percent lighter than the engine in the Model T, produces about 16 times as much power per liter of displacement, and is more than twice as fuel-efficient.

The final reason the ICE will endure is the ease of refueling. EVs like the Tesla or Chevy Bolt require owners to keep a special recharging unit at home or rely on public charging stations, which are still relatively scarce. Drivers of ICE vehicles can refuel their rides at any of the 115,000 service stations in the country. Furthermore, unlike EVs, which can take hours to recharge, ICE vehicles can be refueled in less than five minutes.

In short, the ICE has dominated the transportation sector for more than a century because it meets consumers’ needs on the critical issues of cost and convenience. Yes, EVs will gain market share in the years ahead. But to paraphrase Mark Twain, the claims about the death of the ICE have been greatly exaggerated.

ROBERT BRYCE

ROBERT BRYCE WILL BE A SPEAKER AT SIPES IN OCTOBER

Oil is Stuck in Virus Alley

When will oil sustainably break out of the “Virus Alley”—that $40 to $50 band that has held oil prices in check for months? That’s Question No. 1 going into 2021 for an oil industry that has dramatically retrenched and investors who have abandoned the sector because of a lack of returns. It will also determine when U.S. shale recovers from its pandemic malaise and resumes growth.

Only a year ago prospects looked pretty good. Optimism about the world economy at the beginning of 2020 had a barrel of Brent crude at $70. Then came a pandemic that was in almost no company’s—or country’s—emergency plans. The general view of something called SARS-CoV-2 was initially conditioned by the experience of SARS-1 in the early 2000s, which had about 8,000 cases world-wide and fewer than 800 deaths.

But by March the highly transmissible coronavirus was precipitating a world-wide shutdown, the worst global recession in 74 years, and the constriction of movement by both car and plane. That led to a plummeting of global oil demand and a price collapse that saw prices go “negative,” or below zero, as producers paid people to take their oil away because storage tanks were filled to overflowing.

The rebound from negative prices and the stabilization of the market was made possible by unprecedented production cuts by the group that calls itself OPEC-plus—the 13 Organization of the Petroleum Exporting Countries, led by Saudi Arabia, and a group of 10 other producing nations led by Russia. That U.S.-brokered agreement got oil prices up into the $40 to $50 range of Virus Alley, blocked at one end by the virus and at the other by the uncertain prospect for vaccines. Now that vaccines are here, prices have moved to the $50 end of the alley. But will they rise into that higher band of $50 to $65 that will enable companies to start spending and attract investors?

Daniel Yergin

Dan Smith, A True Legend Passes

A native Houstonian, Dan was born on the 23rd of August 1936, to Virgil Lee Smith and Virginia Lee Whipple Smith. He graduated from Lamar High School in 1954. He attended and graduated from the University of Texas-Austin with a BS in geology in 1958.

Dan met Laura Ney Rosemary Heath while attending UT, where Dan was a member of Theta Xi Fraternity, and they married on the 7th of March 1960. They were married for 53 years, until Laura’s death. Dan then married Betty Joan Hall on the 31st of August 2013. They were married until his death.

Still serving as the Executive Vice President of Exploration for Sandalwood Oil & Gas, Inc. when he passed, Dan was a widely respected and prominent member of the oil and gas industry in Houston and around the world.

Upon graduation from UT, Dan began his long and distinguished career at Amoco, moved to Roberts and Whitson Corporation, and eventually became Executive Vice President and Exploration Manager for Texoil Company, including having a part ownership of the company. He moved to Texas Meridian Resources Corporation in 1992, where he served as Vice President, Exploration. Dan then joined Sandalwood in 2001.

Dan held numerous leadership positions at the highest level, including Chairman of the House of Delegates for American Association of Petroleum Geologists (AAPG); stints as both President and Chairman of the AAPG; Secretary of the Society of Independent Professional Earth Scientists (SIPES); President of the SIPES Foundation; and President of the Houston Geological Society. He also contributed his time and leadership skills to GCAS, AIPG, NOGS, and LGS.

In addition to being an AAPG Honorary Member, Dan’s extensive list of accolades includes being a Distinguished Member of the AAPG House of Delegates, an AAPG Certificate of Merit, a DPA best paper award, the SIPES Outstanding Service Award, HGS Distinguished Service Award, and the HGS Gerald A Cooley Award for “Service above and beyond the call of duty over many years.” His greatest achievement was receiving the 2011 Halbouty Outstanding Leadership Award, given in recognition of outstanding and exceptional leadership in petroleum geosciences.

Dan was passionate about promoting education in the field of Petroleum Geology and mentored numerous young geologists through the years. He was a long-serving trustee and former Chairman of the University of Texas Geosciences Endowment Fund and Member of the Geology Foundation Advisory Council for the Jackson School of Geosciences. Those who have worked with Dan found him a true example of inspiration for humility, ethics, diplomacy, and above all, getting the job done. He was the epitome of outstanding leadership.

Active in the Houston area Scottish organizations, Dan was a Past Chieftain of the Heather & Thistle Society and life member and long-time supporter of the Houston Highland Games Association. Dan showed his leadership skills early on by earning the highest rank of Eagle in the Boy Scouts of America. Additionally, he was presented the Vigil Honor as a member of the Order of the Arrow. As an adult, he continued that service as a Cubmaster, Scoutmaster, and merit badge counselor to hundreds of youths in the Houston area. Most importantly, he was able to share this experience with his son and grandsons.

His love for geology extended into his extracurricular activities where family vacations became educational, rock-hounding excursions. His wit and fun-loving spirit provided hours of entertainment for his family. His annual trips to the Canadian Rockies were the perfect setting for his greatest interests…hiking, studying rock formations, and taking in the beauty this area has to offer.

2021 SIPES CONVENTION

The annual SIPES Convention offers a great opportunity to connect and reconnect with like-minded people. Who are these like-minded people? They are your peers – independent prospect generators, geological, geophysical, and engineering consultants; and some are investors. The convention is centered around two mornings of technical talks, followed by interesting and fun activities focusing on the uniqueness of the area. The technical talks can be used to satisfy Continuing Education requirements, including an ethics talk. The talks provide technological updates and news of innovations and solutions to interpretation, sales, and production problems of the independent community. The technical talks are of a more intimate nature than are those of large conventions. There is ample time for questions and explanations during the technical sessions and during networking events. The convention is usually held in the first half of the year in a tourist-friendly venue. There are optional tours offered for your significant other!

Facts

What do these graphs tell you? It should tell you we need to find new production ASAP. Keep drilling! – Jeff Allen

SIPES 2020 SPONSORSHIP OPPORTUNITIES

□ Platinum Sponsor – $5,000
Full-page ad for 12 months in SIPES newsletter and recognition on the SIPES website.

□ Gold Sponsor – $2500
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□ Bronze Sponsor – $500
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Restricted to SIPES members only

— The deadline for having company logos included in early event promotion is the 15th of the month prior to advertising initiation.  Logos will be included in subsequent ads as received, and print deadline permitting.

— Logo files and ads should be sent to Jeff Allen at Jeff@AllenEnergyLLC.com

 — Logos should be in high-resolution vector format (.eps, .ai, or .pdf)

— Ads should be in high-resolution vector format (.eps, .ai) or high-resolution format at 300 DPI or greater (.jpg or .tiff) 

— All sponsors are welcome to display brochures and company marketing materials on site the day of the event. 

SIPES 2020 HOSPITALITY SPONSORSHIP

Hospitality sponsors receive recognition at monthly SIPES luncheons in the form of a spoken announcement, projection of company logo onto presentation screen before speakers begin, the right to place marketing materials on tables, and the opportunity to give a brief overview of the company’s offerings.  Given the high level of individual recognition, hospitality sponsors do not receive the additional benefit of advertising space online or in the newsletter. 

□ Member Sponsors,  Non-Member Sponsors and Corporate Sponsors
$800 per monthly sponsorship

Please complete the form below and indicate the level of sponsorship and if you would like to opt in to the hospitality sponsorship.

You will receive an email on details of payment instructions after you submit the form.









    $800 per monthly sponsorship


    Buy This Book !

    The Gulf of Mexico Basin is one of the most prolific hydrocarbon-producing basins in the world, with an estimated endowment of 200 billion barrels of oil equivalent. This book provides a comprehensive overview of the basin, spanning the US, Mexico and Cuba. Topics covered include conventional and unconventional reservoirs, source rocks and associated tectonics, basin evolution from the Mesozoic to Cenozoic Era, and different regions of the basin from mature onshore fields to deep-water subsalt plays. Cores, well logs and seismic lines are all discussed providing local, regional and basin-scale insights. The scientific implications of seminal events in the basin’s history are also covered, including sedimentary effects of the Chicxulub Impact. Containing over 200 color illustrations and 50 stratigraphic cross-sections and paleogeographic maps, this is an invaluable resource for petroleum industry professionals, as well as graduate students and researchers interested in basin analysis, sedimentology, stratigraphy, tectonics and petroleum geology.

    LUNCHEON MENU

    Fresh Mixed Berry Salad

    Chicken Fried Chicken

    Warm Bread Pudding

    SIPES Book Recommendation

    Business and political leaders often talk about what their respective countries must do to compete in the world economy. But what does it really mean for a country to compete, and how do they do this successfully? As the world has globalized, countries develop strategies to compete for the markets, technologies, and skills that will raise their standards of living. These government strategies can make – or break – a nation’s efforts to drive and sustain growth. In How Countries Compete: Strategy, Structure and Government in the Global Economy, Richard Vietor shows how governments set direction and create the climate for a nation’s economic development and profitable private enterprise. Drawing on history, economic analysis, and interviews with executives and officials around the globe, Vietor provides rich and insightful examinations of different government approaches to growth and development – leading to both success and failure. Individual chapters focus on the unique social, economic, cultural, and historical forces that shape governments’ approach to economic growth. The countries discussed include: China, India, Japan, Singapore, the United States Mexico, Russia, Saudi Arabia, and South Africa. Vietor challenges the widespread notion that, in market-driven economies such as the United States, a strong government can only hinder business success. A provocative account and a rich resource, How Countries Compete offers potent insights into how the business environment has evolved in crucial nations—and what its trajectory might look like in the future.

     

    SIPES Houston Chapter, 5535 Memorial Drive, Suite F654, Houston, Texas 77007
    Tel: 713-651-1639  ·  Fax: 713-9519659  ·  www.sipeshouston.org  ·  e-mail: bkspee@aol.com

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    SIPES Houston Chapter, 5535 Memorial Drive, Suite F654, Houston, Texas 77007
    Tel: 713-651-1639  ·  Fax: 713-9519659  ·  www.sipeshouston.org  ·  e-mail: bkspee@aol.com