With achievements, awards, and mergers filling the energy industry’s broader horizons, it looks like oil and gas may finally be in line for a few breaks. These are the full versions of the articles shown in truncated form in the print version of our January issue.
SES Receives Safety Trophy
Lubbock-based Standard E&S, LLC, DBA Standard Energy Services, announced Oct. 26 that it received a 2016 Platinum Safety Partner Award from Texas Mutual Insurance Company, the state’s largest provider of workers’ compensation insurance. Larry Homen of Texas Mutual presented the award that day at Standard Energy’s corporate office. Accepting the award for Standard Energy Services was Pieter Bergstein, president, and Jack Yates, director of safety.
The Platinum Safety Partner Award is presented to companies that demonstrate their commitment to workplace safety by implementing an exemplary safety program and controlling their workers’ compensation losses. Standard Energy Services is one of only 200 businesses receiving this award out of 65,000 Texas Mutual policyholders across Texas.
“Receiving this award from Texas Mutual was a great honor,” said Bergstein. “Texas Mutual has been a strong partner, especially their Field Safety Specialist, Larry Homen, who adds his practical expertise to our safety meetings and supports our internal safety efforts.”
Standard Energy Services is an oilfield service company providing well service rigs and water hauling trucks in West Texas and Eastern New Mexico with 14 locations. They contribute their safety success to their 3SQ Mission Statement (Safety, Service, Satisfaction, and Quality) in that their employees have adopted the mission statement and the culture it represents in their everyday life.
Jack Yates is the director of the safety program, and attributes the program’s success to the efforts of the entire workforce. “Safety is not achieved by one person. It is all of our employees working together,” said Yates.
“In the end, we want everyone to go home the same way they started the morning; therefore, we always say safety starts in the morning when you get out of bed, look in the mirror, and tell yourself ‘I am going to be safe,’” added Bergstein.
Summit Announces 7,000th installation
Summit ESP, an electric submersible pump (ESP) and surface pumping systems provider for the oil and gas industry, announced on Nov. 3 it has completed its 7,000th ESP installation during the fourth quarter of 2016 on a well for Apache Corporation, the Andrews Unit 550 in Andrews County, Texas, at a setting depth of 8,404 feet. Summit ESP’s management stated that this installation achievement is an ongoing reflection of the trust customers have in the products and services Summit ESP provides the oil and gas industry.
This West Texas installation is the culmination of a company transformation from just a few employees working at a single location to more 500 employees and 28 service and sales locations throughout the oil producing areas of the continental United States, Alaska, and Canada. Summit ESP has grown to be the second largest supplier of electric submersible pump systems in the United States for downhole ESPs.
“Our customers know Summit ESP will bring experience and commitment when providing their ESP solutions,” said John Kenner, Summit president and CEO. Kenner adds, “We recently attained the highest customer loyalty score for ESPs in North America from an independent survey of customers in the artificial lift market, this marks the second annual survey in a row with Summit holding the pole position and, in both cases, by large margins.
Summit ESP is an independent company providing integrated Electrical Submersible Pumping systems to enhance daily well production in the petroleum, mining, and municipal water industries. Our Horizontal Surface Pumping systems provide cost effective surface fluid transfer solutions to all industries. We are committed to providing certified superior technology, exemplary customer surface and raising the bar of artificial lift and fluid transfer to the industries we serve.
2016 Texas Oil & Gas Awards
On Nov. 3, industry types gathered in Houston for the fourth annual Texas Oil and Gas Awards. Winners were announced in 21 categories and Chairman David Porter of the Railroad Commission of Texas served as the guest of honor.
Full list of Texas winners:
Award for Excellence in Health and Safety (Product):
Construction Company of the Year:
Consultancy of the Year:
Engineering Company of the Year:
General Industry Service Award:
Well Master Corporation
Industry Supplier of the Year:
Kerr Pumps & FlowValve Award for Excellence in Well Completion:
Law Firm of the Year:
Weil, Gotshal & Manges LLP
Manufacturer of the Year:
Energy Recovery, Inc.
Midstream Company of the Year:
New Technology Development of the Year:
Blackhawk Specialty Tolls, LLC
Oilfield Services Company of the Year:
PR Newswire Award for Excellence in Corporate Social Responsibility :
Recruitment Agency of the Year:
The Global Edge Consultant Future Industry Leader:
Shawn R. Hailey – Line Quest, LLC
The Oil and Gas Financial Journal Transaction of the Year:
Themark Corporation E&P Company of the Year:
Occidental Petroleum Corporation
Trucking Company of the Year:
GM Oilfield & Trucking Services
VZ Environmental Award for Excellence in Environmental Stewardship:
Water Management Company of the Year:
Workforce Housing Provider of the Year:
Eagle Ford Shale Housing
Rowan and Aramco Partner for New Offshore Company
Rowan Companies plc (NYSE: RDC) and the Saudi Arabian Oil Company (Saudi Aramco) have signed, through their subsidiaries, an agreement to create a 50/50 joint venture to own, operate, and manage offshore drilling rigs in Saudi Arabia.
The new joint venture company will use Rowan’s established business in Saudi Arabia as its base with a scope of operations covering Saudi Arabia’s existing and future offshore oil and gas fields. The new company is anticipated to commence operations in the second quarter of 2017.
Tom Burke, president and CEO, stated, “Rowan has had a long and mutually beneficial relationship with Saudi Aramco and we welcome this opportunity to further strengthen our partnership and extend our commitment to the region. The new company will uniquely position Rowan to participate in the growing Saudi Arabian offshore drilling market, and provide Rowan with a compelling opportunity for a long-term partnership with the world’s leading oil and gas company, and create a long-term, profitable growth platform with firm rig commitments.”
At commencement of operations of the new company, Rowan will contribute three of its jack-up drilling rigs and Saudi Aramco will contribute two of its jack-up drilling rigs. Rowan will contribute an additional two jack-up rigs as they complete their current Saudi Aramco contracts in late 2018. The new company will also manage the operations of five Rowan jack-up rigs currently in Saudi Arabia, until their associated drilling contracts expire, which then may be released, leased by, or contributed to the new company thereafter. Rowan and Saudi Aramco have committed the new company to purchase future newbuild rigs that will be constructed in Saudi Arabia.
Interested parties are invited to view additional materials on the Investor Relations page of Rowan’s website at www.rowan.com.
Rowan is a global provider of contract drilling services with a fleet of 30 mobile offshore drilling units, comprised of 26 jack-up rigs and four ultra-deepwater drillships. The company’s fleet operates worldwide, including the United States’ Gulf of Mexico, the United Kingdom and Norwegian sectors of the North Sea, the Middle East, and Trinidad.
The Company’s Class A Ordinary Shares are traded on the New York Stock Exchange under the symbol “RDC.” For more information on the company, please visit www.rowan.com.
Endurance Announces Two Separate Transactions
Endurance Resources, an oil and gas production company focused on the Delaware Basin, announced on Nov. 22 that it had entered into separate definitive sale agreements to sell the majority of its assets, held in two separate entities, to two separate buyers. Both transactions are expected to close by this month.
These agreements allow both Endurance and funds managed by Lime Rock Partners, the investment partner to both Endurance entities, to realize value created in the acquisition and development of Endurance’s assets in Lea and Eddy Counties, New Mexico, and Reeves County, Texas.
Don Ritter, CEO of Endurance, said, “The buyers of both assets own complementary assets to the ones we have agreed to sell. Over the last four years, we took many of these assets from a raw acreage position, assembled them for long lateral opportunities, drilled nearly three dozen wells using advanced drilling and completion techniques, and converted the positions to held-by-production status. This leaves both positions de-risked, and the opportunity for the buyers to add production, drill longer laterals, and achieve economies of scale.”
J McLane, managing director of Lime Rock Partners, added, “Since we started working with Don, Garrett Smith, Manny Sirgo, Randall Harris, and the rest of the Endurance team in 2012, we have been impressed by their technical expertise, innovative drilling and completion strategies, and ability to quickly analyze and secure new Delaware assets through a variety of means. We are grateful to be their partners in two separate entities, and we sincerely thank the entire Endurance team for their relentless work on behalf of our investors.”
RBC Richardson Barr and Thompson & Knight, LLP acted as advisors to Endurance Resources.
For more information on Endurance, visit www.enduranceresourcesllc.com.
For more information on Lime Rock Partners, visit www.lrpartners.com.
Rubicon Acquires Top-Co Holdings Inc.
Rubicon Oilfield International (“Rubicon”) announced on Nov. 14 that it had acquired Top-Co Holdings Inc., a global leader in the supply of oilfield casing, cementing, and completion products. Terms of the transaction were not disclosed.
This transaction further strengthens Rubicon’s robust portfolio of well construction solutions, enabling the organization to offer one of the industry’s leading brands of primary cementing equipment to its customers. Backed by a significant capital commitment from Warburg Pincus, a leading global private equity firm, Rubicon will invest in the accelerated growth of all Top-Co product lines, leveraging Rubicon’s infrastructure to enable the employees of Top-Co to support their customers in North America and around the world even more effectively.
“Rubicon is extremely honored to add the extraordinary people and highly respected products of Top-Co to our organization,” said Michael Reeves, president and CEO of Rubicon. “The opportunity to combine the best-in-class engineering, manufacturing, and customer service capabilities of Rubicon and Top-Co will immediately enable our global team to offer higher value and more comprehensive downhole solutions to customers as they address the challenges of drilling for oil and gas in increasingly complex environments.”
Founded in 1963, the Top-Co organization has built a reputation of reliability, integrity, and manufacturing of the highest quality; with customers around the world depending on its broadly acclaimed casing, cementing, and completions product range. “I am very excited by the opportunities this transaction will create for the employees and customers of Top-Co,” said Phil Vogel, president and CEO of Top-Co. “Rubicon’s extremely strong global presence, commitment to customer service, and robust balance sheet will create a platform for even faster growth of Top-Co branded products.”
“Rubicon is committed to growing its world-class oilfield products organization, providing exceptional service and solutions to our customers regardless of location or operating environment,” said John Griggs, Rubicon CFO. “Today’s announcement represents another hugely important step toward this commitment and we are very confident our partnership with the employees of Top-Co will result in significant shared success.”
Rubicon Oilfield International Holdings, L.P. designs, manufactures, and sells and/or rents oilfield products in every major oilfield market around the globe. Headquartered in Houston, Texas, with activity in over 50 countries globally, Rubicon is fueled by strong commercial, manufacturing, and engineering teams positioned globally to deliver a world-class customer experience. Rubicon is led by a seasoned team of oilfield service and equipment industry executives and is committed to building a best-in-class global enterprise in the oilfield products and equipment sector. In May 2016, Rubicon acquired Tercel Oilfield Products, an oilfield products company recognized for delivering high-value drilling and completion technologies. Rubicon has also acquired Cauldron Oil Tools and WaalKing LTD., two boutique technologies companies providing proprietary downhole drilling technologies. More recently, Rubicon announced the acquisition of Logan International in October 2016, enhancing Rubicon’s global manufacturing footprint and offering one of the industry’s leading brands of fishing, intervention, and production enhancement products. For more information, please visit www.rubicon-oilfield.com.
New Plan Could Save $3 Billion in Electricity Costs
Without the Quad Cities and Clinton nuclear plants in Illinois, consumers would pay $364 million more annually and over $3.1 billion more over the next ten years (on a present value basis) in electricity costs. Annually, this equates to $115 million in savings for residential customers and $249 million in savings for commercial and industrial customers, according to a new study conducted by economists at global consulting firm The Brattle Group.
The study was sponsored by leading Illinois business organizations, including the Illinois Retail Merchants Association (IRMA), the Illinois Hispanic Chamber of Commerce, and the Chicagoland Chamber of Commerce.
The report also finds that Quad Cities and Clinton nuclear plants:
- Avoid 15 million tons of CO2 emissions annually over the next five years, valued at $657 million per year. This is the equivalent of taking 3.2 million cars off the road.
- Avoid significant amounts of criteria pollutants annually, valued at $109 million per year over the next five years.
Create a broader benefit to the Illinois economy. By keeping electricity prices lower, these nuclear plants leave residential, commercial, and industrial consumers with more money to spend on other goods and services, which boosts overall economic activity in Illinois, including jobs, GDP, and tax revenues.
“Today’s report clearly underscores that the Quad Cities and Clinton nuclear plants ensure Illinois’ significant advantage in electric competitiveness,” said Rob Karr, president and CEO of the Illinois Retail Merchants Association. “The report provides further evidence that the Future Energy Jobs Bill should be enacted, as it protects jobs and competitive electric rates for businesses and consumers.”
The bill would also bring a number of additional benefits to businesses in Illinois, including increasing funding for energy assessments, cash incentives for retrofits and new equipment, technical services and whole-building solutions, helping more than 60,000 medium and large businesses every year. It also provides for dedicating 6 percent of all efficiency funding to an emerging technology fund that powers innovation in delivering efficiency products & services, allowing Illinois to invest in the next generation of energy efficiency technology and setting the stage for future businesses to grow.
“Clearly, the Future Energy Jobs bill provides incentives that attract businesses to the state, as well as the opportunity for businesses to better compete in the global economy and reinvest in their operations,” said Omar Duque, president and CEO of the Illinois Hispanic Chamber of Commerce. “The additional benefits that the bill provides, by keeping the Quad Cities and Clinton plants open, are all the more reason that policymakers should move swiftly to ensure that the Future Energy Jobs bill is enacted.”
“The study conducted by the Brattle Group clearly outlines the severe cost of inaction if the Clinton and Quad Cities nuclear plants close,” said Michael Reever, vice president, government relations, Chicagoland Chamber of Commerce. “Businesses across the Chicagoland area continue to face a number of challenges and they can least afford the increases documented in this report. We hope Springfield can come together to keep electricity prices reasonable, which remains one of the bright spots for businesses across the state.”
About The Brattle Group:
The Brattle Group analyzes complex economic, finance, and regulatory questions for corporations, law firms, and governments around the world. We are distinguished by the clarity of our insights and the credibility of our experts, which include leading international academics and industry specialists. For more information, please visit www.brattle.com.