MIDLAND, TEXAS—A full day’s slate of speakers and panels concluded what organizers and participants deemed one of the most forward-looking annual meetings of recent years of the Permian Basin Petroleum Association, convening here Sept. 29-30 in this oil-centric city. A luncheon keynote address by Texas Lieutenant Governor Dan Patrick highlighted the proceedings.
The 59th Annual Meeting of the PBPA served up a mix of long-running issues and new directions. On the pages that follow we share images of the day’s events.
On the evening of the 29th, attendees mixed and mingled at the icebreaker welcoming reception held at Midland’s impressive Petroleum Museum.
On Thursday, the 30th, it was pure business as a full-day array of speakers and panels unfolded.
Thursday began with a lavish breakfast that segued into the day’s first speaker, Adrienne Sandoval, director of the New Mexico Oil Conservation Division. Sandoval brought attendees up to date on the most recent conditions and policies affecting oil and gas development in her state. Following her talk, Texas Railroad Commission Chairman Wayne Christian took the podium. Christian, in his remarks, made points that would echo in the sentiments of others who would speak on this day. He defended the oil and gas industry against woke policies and anti-oil politics, and built a case for oil’s comeuppance based on economics and free market realities.
Next came the Texas Legislative Panel, moderated by PBPA President Ben Shepperd. The four panelists were Craig Goldman, chairman of the House Energy Resoures committee; Tom Craddick, former Speaker of the Texas House; Representative Drew Darby, member of the House Energy Resources Committee; and Representative Phil King.
Following a short break, activity resumed in a separate banquet hall within the Petroleum Club as Jason Isaac, director of Life: Powered, a program of the Texas Public Policy Foundation, spoke on the underlying contributing causes to the electrical blackouts in February of 2020. His talk, “Electrical Crisis in Texas?”, found an enthusiastic response. Isaac delved into the politics that caused Texas to drift far into the world of “unreliables”—that is, renewable energy sources such as wind and solar—to the neglect of reliables—these being thermal sources such as natural gas and coal.
Afterwards, PBPA executive vice president Stephen Robertson, in a between-sessions moment, offered thoughts on what resonated about Isaac’s message and about the day’s event on the whole. Asked what he thought was special about this year’s meeting, Robertson said that the fact that everyone was able to get back together into physical proximity with one another (last year’s meeting was virtual) was a great improvement.
“The speakers that we are hearing from, the topics that we are talking about… these really offer encouragement for the oil and gas industry,” Robertson said. “Recently, OPEC came out with their report that saying that, over the next two decades, oil demand is still going to grow worldwide. Well, we [the Permian Basin] still are in the best region to develop hydrocarbon assets. And so we are in the epicenter of where this trend can be taken advantage of, and not just taking advantage for the good of Texas, or New Mexico, but for the world. The prospect of producing hydrocarbons, and doing so in an efficient, effective, and environmentally supportive way, can improve the lives of everyone around the world.
As for the talk given by Jason Isaac, Robertson emphasized one point in particular.
“We just heard from Mr. Isaac talking about the fact that even if the United States got to ‘carbon zero’ by the year 2030 [by discontinuing all oil and gas production during those 8 to 9 remaining years], we would only move the needle down by 2/10s of one degree, worldwide temperatures… Yet, if we continue to produce here [rather than diminishing production], then we keep other, dirtier sources from being used, and we instead improve environmental conditions around the world. And so it is something that we really need to focus on, and not just within our industry. We need to make sure we get that message out to people who can make the decisions that can make a difference.
“Further, that kind of production from the Permian Basin will help ensure the international security of so many of our allies of the United States,” he continued. “There are so many sources that would rather be getting their liquefied natural gas from us, so that they don’t have to make deals with other countries, because those deals come with a lot of strings attached. They can help their citizenry not only have energy reliability, but have a secure future, because those countries would not be relying on other regimes that can put unforeseen pressures on them.”
Isaac’s session concluded the morning’s business. The luncheon session that ensued brought Association news from PBPA President Ben Shepperd and Chairman Scott Kidwell, as well as the keynote by the aforementioned Gov. Dan Patrick. Patrick took the position that oil is “under siege.” But he had a remedy to offer, at least here regionally. Remarking that the state of Texas holds vast sums of money in investment accounts that are maintained for state entities such as the teacher’s retirement fund and other pension funds, Patrick suggested that Texas’ governmental entities not spend any money with vendors or suppliers who boycott “fossil fuels.”
“If you’re going to boycott the oil and gas industry, we’re not putting our money with you,” he said.
Patrick’s talk was followed with some association business, conducted from the podium by chairman Kidwell, and that led into the first of the afternoon sessions.
The first of these was a new topic, for this group: “Emerging Technologies in ESG.” Moderated by Tracee Bently, the panel was comprised of Michael DeShazer, vice president of the Permian Business Unit for Cimarex Energy; Dan Noack, vice president of Alternative energy and Process Optimization at Plains All-American; and Joe Niederhofer, senior vice president of operations at Rattler Midstream.
And the day’s sessions were rounded out with the Exploration and Production Companies Executive Panel. Panelists were Tim Dunn, CEO of Crownquest Operating, and Ken Beattie, Senior Vice President and COO of Crownquest. Scott Kidwell, PBPA Chairman, served as moderator.
[Editor’s Note: Space doesn’t allow us to go into more depth here about the content of the various messages, but if you will visit pboilandgasmagazine.com, there you will find writeups of much of what transpired during the Oct. 26 sessions.]