American Oil and Gas Reporter - January 2012 - 243
The Presidential Papers
Association of Energy
Service Companies
ANGIE SIMS-LONG
General Manager
Buster's Well Service
Kermit, Tx.
from the president
The Association of Energy Service
Companies was founded in the Permian
Basin of Texas in 1956. It was known then
as the Association of Oilwell Servicing
Companies. A group of rig contractors saw
a need to have a unified voice to deal with
workplace safety, develop common work
practices, and have some weight when
dealing with government regulation.
The past year was eventful, not only for
AESC, but for the entire oil and gas industry. The association dealt with numerous issues throughout the year, and anticipates many of those issues will continue
in 2012.
We dealt continually with the Occupational Safety and Health Administration's mandate for flame resistant clothing
through 2011 after OSHA's letter of interpretation was presented to industry in
March 2010. AESC did finally receive a
response to its concerns from OSHA, 11
months after it submitted its letter.
In conjunction with other industry associations, including the American Petroleum Institute, Independent Petroleum
Association of America, International
Association of Drilling Contractors, and
the National STEPS (Service, Transmission, Exploration and Production Safety)
Network, we continued to work with
OSHA to understand its reasoning for the
FRC mandate, but more importantly, to understand the process through which OSHA
made its final determination.
Our message has been that OSHA
should have engaged industry, and worked
with association groups and companies, to
come up with a joint determination on the
use of FRC. Instead, it was done without
due process, lack of public or industry in-
put, and was mandated in a manner that undermined the relationship between OSHA
and industry.
Most recently, California OSHA had a
petitioner request that the upstream oil and
gas community mandate the use of automatic engine shutdowns in the industry. In
researching the reasoning for this request, we
felt the lack of incidents
involving fire and explosions from runaway
engines in California did
not justify the mandate.
The petitioner in this case used incidents outside of California to bolster its
case for using the devices, even quoting the
offshore Deepwater Horizon incident as a
reason to mandate their use. Depending on
engine size, this would have cost industry
between $400 and $3,000 an engine,
which CalOSHA felt was not financially
significant enough to study and perform a
total cost analysis.
In the end, a group of representatives
from the oil and gas industry testified
against making automatic shutdowns
mandatory and quoted numerous reasons
(some mentioned here) as to why. We have
been successful to date in delaying the final ruling, but we anticipate there will be
more to come on this issue.
Advocacy Issues
The AESC continued to be politically active throughout 2011 and will carry that into
the 2012 elections. We have held our annual
Washington fly-in every spring, and last year
had nine representatives meet in Washington with numerous legislators and staff from
throughout the United States.
Our message was threefold:
* We were concerned with the president's fiscal year 2012 budget, which
proposed to eliminate oil and gas tax deductions. These provisions were created
many years ago in recognition of the financial risk associated with oil and gas exploration and development. The proposed
tax increases would cost industry more
than $36.5 billion over the next 10 years,
and would have a detrimental effect on
★
American jobs and domestic production.
* OSHA's mandate to use FRC was
discussed with all, emphasizing AESC's
belief that there was lack of due process
in a public comment period, and an unnecessary mandate to industry.
* HR 1084 and S 587, the FRAC
(Fracturing Responsibility and Awareness
of Chemicals) Act would repeal the exemption for hydraulic fracturing in the
Safe Drinking Water Act. Hydraulic fracturing is an important tool that has increased the amount of oil and natural gas
produced domestically, and has been utilized safely for the past 50 years. We believe the states are in a better position to
effectively regulate hydraulic fracturing,
and have been ably performing this function since hydraulic fracturing was introduced.
AESC maintained its political action
committee in 2011 and is actively soliciting contributions to expand that fund during this election year. In 2010, we were
able to commit PAC resources to numerous legislators throughout the United
States (states included Texas, Oklahoma,
Kansas, Arkansas, North Dakota, New
Mexico, Pennsylvania and Mississippi).
This is an extremely important election
year in which control of the U.S. Senate
and the executive branch will be at stake
for both parties. We will be featuring numerous articles in our magazine, Well
Servicing Magazine, throughout the year,
highlighting some of those key races.
Operational Issues
One issue that could have an impact on
our entire industry is the long awaited
hours-of-service rule changes. The most
important portion of that rule for the oil
and gas industry is to make sure we are
able to maintain our oil field exemption.
We had anticipated the rule would be released last October, but the final ruling has
been delayed, and we are uncertain when
we will see it and what its impact will be
on all commercial drivers.
Another issue for our industry that is
going to continue to present itself in
2012 and beyond is damage to county
roads from water hauling, fracturing,
and other oil and gas related activities.
This is very prevalent in the Eagle Ford
Shale play in Texas. We have addressed
it in the Magnolia, Ar., area, and it was an
issue in East Texas from the Haynesville
Shale play two years ago.
JANUARY 2012 243
American Oil and Gas Reporter - January 2012
Table of Contents for the Digital Edition of American Oil and Gas Reporter - January 2012
The American Oil and Gas Reporter - January 2012
Contents
Reports
Calendar
Oil & Gas Counts
State Legislative
Industry Digest
Tech Connections
Washington Watch
Federal Legislation
EPA
Gulf of Mexico
Resource Plays Providing Wealth of Opportunities
Tight Plays Poised to Transform U.S. Crude Supply
El Paso Project Optimizes Eagle Ford Completion Design
Real-Time Forward Modeling Improves Bakken Horizontals
Cover Story
Financial Firms Expand Oil and Gas Divisions
Multicomponent 3-D Poised for Growth in Shale Plays
Cloud Computing Driving Business Step Changes
Advanced Attributes Improve 3-D Interpretation
3-D Data Improve Knowledge of Shale Heterogeneity
HBUR RSS Solves Granite Wash Drilling Challenges
Technologies Improve Production Consistency in Resource Plays
SaaS Helps Operator Streamline Data Management
Automation Enhances Operations in Challenging Applications
Dispersant Chemistry Combats Plugging in Low-Gravity Oil Wells
New Technologies Optimize Production
PIOGA
Drilling Regs
IOGAWV
The Presidential Papers
Energy Education
Conventions
Shale Gas
New Lits & Products
Computer Currents
Industry Focus
Classified Advertising
Advertisers Index
American Oil and Gas Reporter - January 2012 - The American Oil and Gas Reporter - January 2012
American Oil and Gas Reporter - January 2012 - 2
American Oil and Gas Reporter - January 2012 - 3
American Oil and Gas Reporter - January 2012 - 4
American Oil and Gas Reporter - January 2012 - Contents
American Oil and Gas Reporter - January 2012 - Reports
American Oil and Gas Reporter - January 2012 - 7
American Oil and Gas Reporter - January 2012 - 8
American Oil and Gas Reporter - January 2012 - 9
American Oil and Gas Reporter - January 2012 - Calendar
American Oil and Gas Reporter - January 2012 - 11
American Oil and Gas Reporter - January 2012 - 12
American Oil and Gas Reporter - January 2012 - 13
American Oil and Gas Reporter - January 2012 - Oil & Gas Counts
American Oil and Gas Reporter - January 2012 - 15
American Oil and Gas Reporter - January 2012 - Industry Digest
American Oil and Gas Reporter - January 2012 - 17
American Oil and Gas Reporter - January 2012 - 18
American Oil and Gas Reporter - January 2012 - 19
American Oil and Gas Reporter - January 2012 - 20
American Oil and Gas Reporter - January 2012 - 21
American Oil and Gas Reporter - January 2012 - 22
American Oil and Gas Reporter - January 2012 - 23
American Oil and Gas Reporter - January 2012 - 24
American Oil and Gas Reporter - January 2012 - Tech Connections
American Oil and Gas Reporter - January 2012 - 26
American Oil and Gas Reporter - January 2012 - Washington Watch
American Oil and Gas Reporter - January 2012 - Federal Legislation
American Oil and Gas Reporter - January 2012 - 29
American Oil and Gas Reporter - January 2012 - 30
American Oil and Gas Reporter - January 2012 - 31
American Oil and Gas Reporter - January 2012 - 32
American Oil and Gas Reporter - January 2012 - 33
American Oil and Gas Reporter - January 2012 - 34
American Oil and Gas Reporter - January 2012 - 35
American Oil and Gas Reporter - January 2012 - EPA
American Oil and Gas Reporter - January 2012 - 37
American Oil and Gas Reporter - January 2012 - 38
American Oil and Gas Reporter - January 2012 - 39
American Oil and Gas Reporter - January 2012 - 40
American Oil and Gas Reporter - January 2012 - 41
American Oil and Gas Reporter - January 2012 - Gulf of Mexico
American Oil and Gas Reporter - January 2012 - 43
American Oil and Gas Reporter - January 2012 - 44
American Oil and Gas Reporter - January 2012 - 45
American Oil and Gas Reporter - January 2012 - 46
American Oil and Gas Reporter - January 2012 - 47
American Oil and Gas Reporter - January 2012 - Resource Plays Providing Wealth of Opportunities
American Oil and Gas Reporter - January 2012 - 49
American Oil and Gas Reporter - January 2012 - 50
American Oil and Gas Reporter - January 2012 - 51
American Oil and Gas Reporter - January 2012 - 52
American Oil and Gas Reporter - January 2012 - 53
American Oil and Gas Reporter - January 2012 - 54
American Oil and Gas Reporter - January 2012 - 55
American Oil and Gas Reporter - January 2012 - 56
American Oil and Gas Reporter - January 2012 - 57
American Oil and Gas Reporter - January 2012 - 58
American Oil and Gas Reporter - January 2012 - 59
American Oil and Gas Reporter - January 2012 - 60
American Oil and Gas Reporter - January 2012 - 61
American Oil and Gas Reporter - January 2012 - Tight Plays Poised to Transform U.S. Crude Supply
American Oil and Gas Reporter - January 2012 - 63
American Oil and Gas Reporter - January 2012 - 64
American Oil and Gas Reporter - January 2012 - 65
American Oil and Gas Reporter - January 2012 - 66
American Oil and Gas Reporter - January 2012 - 67
American Oil and Gas Reporter - January 2012 - 68
American Oil and Gas Reporter - January 2012 - 69
American Oil and Gas Reporter - January 2012 - 70
American Oil and Gas Reporter - January 2012 - 71
American Oil and Gas Reporter - January 2012 - 72
American Oil and Gas Reporter - January 2012 - 73
American Oil and Gas Reporter - January 2012 - 74
American Oil and Gas Reporter - January 2012 - 75
American Oil and Gas Reporter - January 2012 - 76
American Oil and Gas Reporter - January 2012 - El Paso Project Optimizes Eagle Ford Completion Design
American Oil and Gas Reporter - January 2012 - 78
American Oil and Gas Reporter - January 2012 - 79
American Oil and Gas Reporter - January 2012 - 80
American Oil and Gas Reporter - January 2012 - 81
American Oil and Gas Reporter - January 2012 - 82
American Oil and Gas Reporter - January 2012 - 83
American Oil and Gas Reporter - January 2012 - 84
American Oil and Gas Reporter - January 2012 - 85
American Oil and Gas Reporter - January 2012 - 86
American Oil and Gas Reporter - January 2012 - Real-Time Forward Modeling Improves Bakken Horizontals
American Oil and Gas Reporter - January 2012 - 88
American Oil and Gas Reporter - January 2012 - 89
American Oil and Gas Reporter - January 2012 - 90
American Oil and Gas Reporter - January 2012 - 91
American Oil and Gas Reporter - January 2012 - 92
American Oil and Gas Reporter - January 2012 - 93
American Oil and Gas Reporter - January 2012 - Cover Story
American Oil and Gas Reporter - January 2012 - 95
American Oil and Gas Reporter - January 2012 - 96
American Oil and Gas Reporter - January 2012 - 97
American Oil and Gas Reporter - January 2012 - 98
American Oil and Gas Reporter - January 2012 - 99
American Oil and Gas Reporter - January 2012 - 100
American Oil and Gas Reporter - January 2012 - 101
American Oil and Gas Reporter - January 2012 - 102
American Oil and Gas Reporter - January 2012 - Financial Firms Expand Oil and Gas Divisions
American Oil and Gas Reporter - January 2012 - 104
American Oil and Gas Reporter - January 2012 - 105
American Oil and Gas Reporter - January 2012 - 106
American Oil and Gas Reporter - January 2012 - 107
American Oil and Gas Reporter - January 2012 - 108
American Oil and Gas Reporter - January 2012 - 109
American Oil and Gas Reporter - January 2012 - Multicomponent 3-D Poised for Growth in Shale Plays
American Oil and Gas Reporter - January 2012 - 111
American Oil and Gas Reporter - January 2012 - 112
American Oil and Gas Reporter - January 2012 - 113
American Oil and Gas Reporter - January 2012 - 114
American Oil and Gas Reporter - January 2012 - 115
American Oil and Gas Reporter - January 2012 - 116
American Oil and Gas Reporter - January 2012 - 117
American Oil and Gas Reporter - January 2012 - 118
American Oil and Gas Reporter - January 2012 - Cloud Computing Driving Business Step Changes
American Oil and Gas Reporter - January 2012 - 120
American Oil and Gas Reporter - January 2012 - 121
American Oil and Gas Reporter - January 2012 - 122
American Oil and Gas Reporter - January 2012 - 123
American Oil and Gas Reporter - January 2012 - 124
American Oil and Gas Reporter - January 2012 - 125
American Oil and Gas Reporter - January 2012 - Advanced Attributes Improve 3-D Interpretation
American Oil and Gas Reporter - January 2012 - 127
American Oil and Gas Reporter - January 2012 - 128
American Oil and Gas Reporter - January 2012 - 129
American Oil and Gas Reporter - January 2012 - 130
American Oil and Gas Reporter - January 2012 - 131
American Oil and Gas Reporter - January 2012 - 132
American Oil and Gas Reporter - January 2012 - 133
American Oil and Gas Reporter - January 2012 - 134
American Oil and Gas Reporter - January 2012 - 3-D Data Improve Knowledge of Shale Heterogeneity
American Oil and Gas Reporter - January 2012 - 136
American Oil and Gas Reporter - January 2012 - 137
American Oil and Gas Reporter - January 2012 - 138
American Oil and Gas Reporter - January 2012 - 139
American Oil and Gas Reporter - January 2012 - 140
American Oil and Gas Reporter - January 2012 - 141
American Oil and Gas Reporter - January 2012 - 142
American Oil and Gas Reporter - January 2012 - HBUR RSS Solves Granite Wash Drilling Challenges
American Oil and Gas Reporter - January 2012 - 144
American Oil and Gas Reporter - January 2012 - 145
American Oil and Gas Reporter - January 2012 - 146
American Oil and Gas Reporter - January 2012 - 147
American Oil and Gas Reporter - January 2012 - 148
American Oil and Gas Reporter - January 2012 - 149
American Oil and Gas Reporter - January 2012 - 150
American Oil and Gas Reporter - January 2012 - Technologies Improve Production Consistency in Resource Plays
American Oil and Gas Reporter - January 2012 - 152
American Oil and Gas Reporter - January 2012 - 153
American Oil and Gas Reporter - January 2012 - 154
American Oil and Gas Reporter - January 2012 - 155
American Oil and Gas Reporter - January 2012 - 156
American Oil and Gas Reporter - January 2012 - 157
American Oil and Gas Reporter - January 2012 - 158
American Oil and Gas Reporter - January 2012 - 159
American Oil and Gas Reporter - January 2012 - 160
American Oil and Gas Reporter - January 2012 - SaaS Helps Operator Streamline Data Management
American Oil and Gas Reporter - January 2012 - 162
American Oil and Gas Reporter - January 2012 - 163
American Oil and Gas Reporter - January 2012 - 164
American Oil and Gas Reporter - January 2012 - 165
American Oil and Gas Reporter - January 2012 - Automation Enhances Operations in Challenging Applications
American Oil and Gas Reporter - January 2012 - 167
American Oil and Gas Reporter - January 2012 - 168
American Oil and Gas Reporter - January 2012 - 169
American Oil and Gas Reporter - January 2012 - 170
American Oil and Gas Reporter - January 2012 - 171
American Oil and Gas Reporter - January 2012 - 172
American Oil and Gas Reporter - January 2012 - 173
American Oil and Gas Reporter - January 2012 - 174
American Oil and Gas Reporter - January 2012 - 175
American Oil and Gas Reporter - January 2012 - 176
American Oil and Gas Reporter - January 2012 - Dispersant Chemistry Combats Plugging in Low-Gravity Oil Wells
American Oil and Gas Reporter - January 2012 - 178
American Oil and Gas Reporter - January 2012 - 179
American Oil and Gas Reporter - January 2012 - 180
American Oil and Gas Reporter - January 2012 - 181
American Oil and Gas Reporter - January 2012 - New Technologies Optimize Production
American Oil and Gas Reporter - January 2012 - 183
American Oil and Gas Reporter - January 2012 - 184
American Oil and Gas Reporter - January 2012 - 185
American Oil and Gas Reporter - January 2012 - 186
American Oil and Gas Reporter - January 2012 - 187
American Oil and Gas Reporter - January 2012 - 188
American Oil and Gas Reporter - January 2012 - 189
American Oil and Gas Reporter - January 2012 - 190
American Oil and Gas Reporter - January 2012 - 191
American Oil and Gas Reporter - January 2012 - 192
American Oil and Gas Reporter - January 2012 - 193
American Oil and Gas Reporter - January 2012 - PIOGA
American Oil and Gas Reporter - January 2012 - 195
American Oil and Gas Reporter - January 2012 - 196
American Oil and Gas Reporter - January 2012 - 197
American Oil and Gas Reporter - January 2012 - Drilling Regs
American Oil and Gas Reporter - January 2012 - 199
American Oil and Gas Reporter - January 2012 - IOGAWV
American Oil and Gas Reporter - January 2012 - 201
American Oil and Gas Reporter - January 2012 - 202
American Oil and Gas Reporter - January 2012 - 203
American Oil and Gas Reporter - January 2012 - 204
American Oil and Gas Reporter - January 2012 - 205
American Oil and Gas Reporter - January 2012 - 206
American Oil and Gas Reporter - January 2012 - 207
American Oil and Gas Reporter - January 2012 - The Presidential Papers
American Oil and Gas Reporter - January 2012 - 209
American Oil and Gas Reporter - January 2012 - 210
American Oil and Gas Reporter - January 2012 - 211
American Oil and Gas Reporter - January 2012 - 212
American Oil and Gas Reporter - January 2012 - 213
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American Oil and Gas Reporter - January 2012 - 244
American Oil and Gas Reporter - January 2012 - 245
American Oil and Gas Reporter - January 2012 - 246
American Oil and Gas Reporter - January 2012 - 247
American Oil and Gas Reporter - January 2012 - 248
American Oil and Gas Reporter - January 2012 - Energy Education
American Oil and Gas Reporter - January 2012 - Conventions
American Oil and Gas Reporter - January 2012 - 251
American Oil and Gas Reporter - January 2012 - Shale Gas
American Oil and Gas Reporter - January 2012 - 253
American Oil and Gas Reporter - January 2012 - 254
American Oil and Gas Reporter - January 2012 - 255
American Oil and Gas Reporter - January 2012 - 256
American Oil and Gas Reporter - January 2012 - 257
American Oil and Gas Reporter - January 2012 - 258
American Oil and Gas Reporter - January 2012 - 259
American Oil and Gas Reporter - January 2012 - New Lits & Products
American Oil and Gas Reporter - January 2012 - 261
American Oil and Gas Reporter - January 2012 - Computer Currents
American Oil and Gas Reporter - January 2012 - 263
American Oil and Gas Reporter - January 2012 - Industry Focus
American Oil and Gas Reporter - January 2012 - 265
American Oil and Gas Reporter - January 2012 - 266
American Oil and Gas Reporter - January 2012 - 267
American Oil and Gas Reporter - January 2012 - 268
American Oil and Gas Reporter - January 2012 - 269
American Oil and Gas Reporter - January 2012 - 270
American Oil and Gas Reporter - January 2012 - 271
American Oil and Gas Reporter - January 2012 - 272
American Oil and Gas Reporter - January 2012 - Classified Advertising
American Oil and Gas Reporter - January 2012 - Advertisers Index
American Oil and Gas Reporter - January 2012 - 275
American Oil and Gas Reporter - January 2012 - 276
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