As a business owner, you need to know what your customers are putting into the search engines to find your business and/or products. Then you need to optimize your website and content so that it reflects those keywords. Content is key! Nobody knows your business or products like you do. Write about them. Get your customers to write about their experiences and add it in to your content. The more relevant content that you incorporate to your site, the better off you are going to be when it comes to internet marketing and search engine optimization.

If you have more than one website or blog, don’t use the same content on both. That will actually hurt you in the long run. Repurpose your content for the second site. You can be creative with your words and make it 40-60% different so that it benefits you on both sites. You are a treasure trove of information, once you start writing it will start flowing. Or hire a writer to learn about you and your business and be your voice. Whatever you do, you need to something, because without internet marketing and search engine optimization, you aren’t going to go anywhere online!

I created a BLaST Creative account last week and started adding a few boards and pins, within 1 hour I had over 50 spam emails and continue to receive between 50 to 100 spam emails a day. It is absolutely ridiculous! Is Pinterest selling our email addresses?

We use Facebook and Twitter and don’t have anywhere near the spamming problem. Pinterest is a nightmare and yet it is a good marketing tool! So what do you do?

1. Don’t use Pinterest!
2. Set up a second email address that you use only for Pinterest so that the spam emails go there and you don’t have to deal with them.
3. Block the spam emails as they roll in-which is what I did.
4. Continue to complain to Pinterest, but that doesn’t seem to be doing much good.

Because of the popularity of the site, Pinterest seems to be attacked by spammers and doesn’t have the appropriate safeguards in place. So enter at your own risk, for the moment, spammers control Pinterest!

Unfortunately, at both the corporate and personal level, probably very few, yet it is no secret, that productive two way communication is the single most fundamental component of prosperous and lasting relationships.  Conversely the absence of productive communication is an almost certain guarantee of dysfunctional and ineffective interaction.  Left unchecked the breaches created by the lack of communication at the corporate and community level could suppress every facet of productivity including continued growth and prosperity. In a world where communication occurs at the speed of bits and bytes the absence of productive communication is amplified.

Why does that matter?  But more importantly how does this topic of productive, relatable communication translate to the Bakken?

For most of us we frequently hear the replays of parent tapes in the recesses of our memories.  For me, of all the things my father told me, “People won’t listen unless they asked to be told” is probably the one that has made the most difference in my world.  My dad, with his quiet wisdom, offered both the problem and the solution in that nine word utterance.  People won’t listen, a problem that plagues us all.  And upon review of the Bakken microcosm, a dilemma magnified by the shear level of economic activity. Raising your voice, pounding your fist or spitting sentences of venom in a blog won’t fix the problem either. 

Getting folks to ask to be told is the solution, and it is the one the TRAC Team decided to tackle when designing the 2013 Convergence Session at the upcoming TRAC Regional Energy Convergence and Trade Show in Billings, MT.  Imagine if you will community members, business representatives, and civic leaders each as a stream of people, with problems and solutions, ideas and beliefs, all flowing into the Billings Hotel and Convention Center August 1^st.   Many of them, the ones who want to listen, the ones who want to be heard, will join together for four hours of conversation.  The kind of conversation that makes people ask to be told.  The kind of conversation that shapes community.  We call this coming together Convergence.

An initiative inspired by Synergy Station co-founder Kendall McRae, keynoted by Dr. Lydia Pugh, and facilitated by Karen Grosz CPC, and a team of willing volunteers the Convergence is a different way to hear and to be heard.  Utilizing the latest in technology, the best trends in communication and the energy that only a crowd can bring, Convergence is designed with unique interactions, powerful conversations, and new opportunities to shape an amazing future as we harvest these vast energy resources.

Convergence at TRAC, is not a PR campaign or retrofitted marketing ploy.  It is   a rare opportunity to come together with individuals from all areas of community, business and the energy industry to build rapport, establish relationships, and lay the groundwork for solving tough industry challenges. Together, these efforts will be used to take deliberate action in the development of pragmatic strategies for success. 

Convergence offers the solution dad’s statement begged for, people listening because they have asked to be told and people who have something to say because they listened.

The recent crude oil production decline in the Bakken has given some cause to worry that the “Good Times” are ending.  The failure to hit oil production targets in October and November 2012, have caused some initial concern.  This decrease in production, the first in 19 months, was blamed on weather conditions, as well as efficiency measures of many producers.

We understand that Minot now has over 3,400 hotel rooms, with occupancy rates around 50%.  Some hoteliers are concerned.  The Bank of North Dakota is no longer making loans on hospitality properties.  The rig count is down from a record high of 218 rigs in May 2012.  In December 2012, the rig count was 184 rigs in the Baaken.

What does this mean to you and your business?  Well………….. go slow, the end of the world is not in sight!  That is the first thing that you must know.  Remember, for everything that goes up, it also must come back down—a simple law of physics.  OK, now, my business—what am I to do to address these concerns?

The first consideration is not to panic. Carefully look at where you are and where you are going.  Perhaps you may need to get out of some long term contracts.  Reducing inventory that is not selling and “trimming” lines that are no longer profitable are ways to reduce costs.  Look at employee expenses—if everyone is not busy, consider either realigning skill and tasks, or reducing staff.

Now is the time that when professional business consultation really makes money.  Yes, there are fees involved, however, those fees will normally save you many times the value of the fee with the results attained by the consultants’ recommendations.  Remember, do not panic, however, carefully review where you are in your business cycle and make prudent adjustments to continue forward.

Coal fuels over 40 percent of worldwide energy generation, though it also finds significant use in steel production, cement manufacturing, and as a liquid fuel. With large proven coal reserves, the United States is in a favorable position to supply much of the demand – and smart coalmine developers like John Baugues and others are investing now to be a part of that supply chain.

John Baugues initial investments in the Bull Mountain mine in Montana effectively kickstarted a trend to pursue untapped coal reserves in the “Treasure State” after little new mining activity in the state for several decades. Similarly, John Baugues development of a new coal mine in West Kentucky underscored the region’s significant resources and their ability to meet rising demand for fuel used in pollution-cutting utilities. Domestic energy needs rely heavily on domestic coal production, and John Baugues Jr’s shows that investing in local coal reserves to meet those needs is a winning strategy. Not only will John Baugues Jr’s projects supply a needed resource, but they’ll also generate new jobs and increased tax revenues for local communities.

The lesson: with domestic and international coal demand on the rise, the time to invest in coal development is now.

These are all sayings we’ve heard, but it seems few people really embrace change. So how can we address this within a team or a group? People may resist it, ignore it, talk around it, but rarely want to address is directly, much less embrace it. If you’re facing any type of change, consider introducing it subtly and simply, using a team meeting.

Consider a change in the time, the place or the space. Small changes will more than likely throw people off who are resistant to change, but may help in introducing change. Just a simple change in time may generate discussion. If changing the time is not feasible, schedule to meet in a different space. Take the team to a coffee shop, another area in the building or outside. Be creative.

If introducing a new venue is not an option, change the area. Move the table out of the room. This removes the physical barrier between the team members and also addresses the blackberry bobs, the iphone inclines, and the droid drops that seem to permeate so many meetings. Eliminating the table can also naturally open up the team. If you cannot remove the table, change the seating in some way. Sit in a different seat. Encourage others to move to a different spot.

A simple change in the meeting can generate a discussion surrounding change. Be prepared though, as this small difference may in itself produce resistance. How your team members respond, may help you gauge their attitude toward change. If a person complains, they may have difficulty with change. If a person seems excited about the change, they may embrace and actually thrive on change. If a person seems non-ruffled yet accepting, they may be someone who adapts well to change, and who in turn can help others feel calm about it.

As the leader, use this simple tool to generate discussion about a change that may have already occurred or about a future change. Use it more than once. Making small changes on a regular basis may help your team make the necessary adjustments more seamlessly when facing larger changes. Equally important, be aware of your own attitude toward change, as this may greatly affect the team’s attitude toward change.

Finally, if the change seems too much for you to tackle on your own, enlist the assistance of outside support. Canvas Creek Team Building helps teams address difficult and challenging issues, including change. Free consultation and team evaluation available. www.canvascreekteambuilding.com

In fact, the oil and natural gas industry in Illinois supports what would be the most comprehensive regulatory package for hydraulic fracturing in the nation.

Just like everyone else in Illinois, the oil and natural gas industry wants safe and responsible development. That means not only operating under incredibly high standards, but also establishing operational baselines through state regulation.

Here are a few of the key provisions that the industry supports:

* Disclosure of additives used during hydraulic fracturing.

* Pre-notification of hydraulic fracturing to affected surface owners.

* Access to trade secret information by health care providers.

* Conducting baseline water testing prior to hydraulic fracturing activities.

* Identification of existing wells in close proximity to planned hydraulic fracturing activity.

* Reporting of the type of base fluid used.

* Reporting of the volume of flowback at job completion.

* Disclosure and reporting of disposal methods of flowback.

* Notification of public of planned operations in local newspaper of record for the area.

If enacted, these provisions would establish a regulatory framework that promotes responsible development, public awareness and the opportunity for strong economic growth.

In fact, a report issued this past July by the Natural Resources Defense Council outlined policy recommendations for regulating hydraulic fracturing. What becomes evident from reading that report is that the industry’s proposal in Illinois would be the most comprehensive in the nation.

This is just one of many examples of how the industry in Illinois is engaging in a good-faith dialogue with the public, environmental organizations and government officials.

One would think that industry’s willingness to proactively address concerns would lead to swift consensus on a common sense regulatory framework proposal. Yet the NRDC wrote on its blog recently: “The oil and gas industry would recommend, well, quite frankly, that nothing be done — as demonstrated by industry representatives’ most recent actions.”

This is a classic case of moving the goalposts. Now that the industry has met (and even exceeded) the benchmarks established by environmental organizations, those same groups are trying to change the rules of the game. They even falsely suggest the industry does not support regulation at all, and that Illinois needs a moratorium on hydraulic fracturing until adequate regulations are in place.

But if the industry is proposing the same regulations that opponents said are necessary, then what’s the justification for a moratorium? How can we ever reasonably define what is “adequate”?

Exploration and production activities are capital-intensive, with costs in the millions of dollars for each project. Decisions on where to invest are often made as many as 18 months in advance. Once those investments are made, they cannot cost-effectively be uprooted and moved into Illinois if the state later decides to allow development.

A recent report from the Illinois Chamber of Commerce found that responsible shale development could create more than 47,000 jobs in Illinois and generate up to $9.5 billion in economic activity. A moratorium, however, would be a signal to the industry to take these jobs and investments somewhere else.

The oil and natural gas industry in Illinois is committed to strong regulations that provide our state with economic opportunities and environmental safeguards, a commitment we look forward to keeping well into the future.

Source:  The State Journal Register www.sj-r.com by guest contributors:  Brad Richards, Executive Vice President of the Illinois Oil & Gas Association and Dan Eichholz, Associate Director of the Illinois Petroleum Council.

Coal entrepreneur John P. Baugues Jr. has joined forces with Management Energy, Inc. to open a new mine in coal-rich Montana.

The partnership brings together successful coal mine developer John Baugues  and a nationally recognized team of consultants at Management Energy, an exploration stage company that also specializes in coal extraction and distribution.

The new company, led by John Baugues, is looking to Carbon County for its next venture. Carbon County is known for its high-quality low sulfur coal reserves.

With Baugues at the helm, the coal mine developers have already begun laying the foundation for future mining operations. The company currently has agreements to purchase and develop two coal fields in

The new coal projects come on the heels of another Baugues coal initiative – the Bull Mountain coal mine, which opened as Signal Peak in 2009. Bull Mountain was the first underground mine to open in Montana in the last three decades and sparked new interest in the development of Montana’s rich coal reserves. John Baugues Jr. led the Bull Mountain coal mine project and sold it to Ohio-based First Energy for over $350 million plus royalties.

With John Baugues’ decades-long experience in the coal mining business, a proven track record in new mine development and intimate knowledge of the intricacies of Montana coal, the Carbon County coal mines are being looked to as models of 21st Century coal development as well as engines of economic growth in the area.

John Baugues, Jr. and Coalmine Development Fundamentals: quality resources John Baugues, Jr., a fourth-generation coalmine developer from West Virginia, knows that in order to have a successful coal mining operation, you first need access to a promising source of coal.

Ness spoke before oil industry officials and wildlife conservation representatives on Tuesday to address some of the concerns.  A spokesman for the state chapter of The Wildlife Society believes that oil development in general is damaging wildlife and its habitat.  While development of the pipeline infrastructure was high on the list of solutions, other voluntary measures included locating oil wells, related facilities and roads in “clustered configurations” outside of wildlife sensitive areas to lessen disturbance to animals and curb the amount of habitat lost to oil exploration.

It’s the director of the state Game and Fish Department, Terry Steinwand’s belief that wildlife and hunting opportunities can coexist with oil production in North Dakota; although some of the conference believed that more stringent regulations in place — that are not voluntary — need to be in place to protect the state’s wildlife and land.  According to Steinwald, “Is it a perfect scenario? No it’s not, but it is a workable scenario.”

North Dakota’s Game and Fish Department has actively been mapping sensitive wildlife habitat areas (mule deer, bighorn sheep, sage grouse, and pronghorn antelope) for over a year in the oil patch.  The North Dakota Petroleum Council, which represents over 400 companies working in te Bakken states that a majority of the employees in the energy industry are sportsmen and that most of their companies would adopt measures to protect wildlife.

Tulsa, Oklahoma based Oneok Partners LP reported this week that their proposed $1.8 billion oil pipeline from North Dakota to Oklahoma, known as the Bakken Crude Express Pipeline, has been derailed due to the company’s inability to secure enough commitments to transport Bakken crude.  While the overall outlook for crude oil supply is healthy from the Bakken Shale in western North Dakota and eastern Montana, Oneok was unable to secure enough long term commitments from producers for the 1,300 mile pipeline.  The Bakken Crude Express would have transported 200,000 barrels per day.

In spite of this, Oneok still has forward movement on $4.8 billion of announced natural gas & natural gas liquids projects; with the majority of those projects in the Bakken.

A recent story that ran in the Daily Interlake, “Oil boom has downside for towns in the Bakken Shale,” had me wondering which TV fantasies the reporter had been watching—the towns and the people he described could have been easily lifted from “Deadwood” or “Gunsmoke” or any of the many shows that perpetuated myths about the Wild West and its lawless citizens.

In his travels to Williston and Sidney, the reporter met (horrors!) gamblers, fast women, whiskey drinkers and lawmen complaining about too much crime. It is entirely possible you could meet the same kinds of folks in New Jersey or California. But since they happened to be in North Dakota and Montana, these citizens were burnished with the mystique of the untamed West and presented as truly sinister byproducts of oil and gas drilling.

It’s almost funny to read the pulp fiction produced recently by urban journalists who fancy themselves as modern Alexis de Tocquevilles observing what to them is a strange and foreign culture in the oil patches. It would be amusing if such depictions did not do such a huge disservice to the many Montanans and North Dakotans who get up early and go to work every day. These men and women aren’t gun-slinging outlaws. They are hardworking Americans who are doing what they can do to support their families.

It is downright mean-spirited to characterize oil workers as “young men paid handsome sums” who have nothing to do but get hammered and frequent strip bars.

What about the many employees of oil and gas companies whose children are in public schools that benefit from the oil and gas revenues going directly to Montana’s school system? What about the people who work in the area’s grocery stores, doctors’ offices, libraries and, yes, the oil fields, who pay taxes just like people in every state?

It would be naïve to deny that growth can bring its own set of problems. Some communities, long-time residents and public officials are grappling with new challenges.

It is important to keep in mind that before the increased oil and gas development, main streets were struggling and storefronts were boarded up. Students were graduating high school and leaving to find work. The population was aging, and there were not many opportunities on the horizon.

Then the Bakken play changed things. An analysis of the state’s economy, Montana’s Hesitant Economic Recovery by Patrick M. Barkey of the University of Montana, January 2012, says that although the state is slowly recovering from the recession, the oil boom impacting Eastern Montana is a definite bright spot, with the energy industry making up 14 percent of the state’s economy. Dr. Scott Rickard, Montana State University Billings Center for Applied Economic Research, reports in The Montana Petroleum Association Treasure State Journal that Montana’s oil and gas industry supports nearly $10.5 billion in direct and indirect economic output. According to the Bureau of Labor Statistics Occupational Employment Statistics, a job in Montana’s oil and gas industry paid an average of $56,581 per worker or 75 percent above the state average in 2011.

Another University of Montana report released in June 2012, The National and State Economic Outlook, also by Barkey, says energy investment is robust. According to Montana’s Minerals Management Bureau, the state’s oil and gas lease sales on school trust lands for 2011 generated $22.1 million. The September 2011 sale produced $7.9 million in lease sales — the fourth largest auction since the 1970s.

Leases were sold in 20 counties across the state, an indication that interest in duplicating recent successes in oil production in Northeast Montana is spreading to central Montana, according to state and industry officials.

This boom is not an oil-and-gas nirvana by any means. But people in Montana and North Dakota have a knack for figuring things out and working together toward solutions.

Modern-day reporters may be prone to wax poetic about the new frontier – oil patch towns populated by reckless roughnecks who fill up the jails, but it’s how our West has been described inaccurately for more than 100 years. Whether writing about Tombstone, Dodge City or the Yukon Territory, journalists then and now have always found it irresistible to stereotype certain western “boom towns” as wild, lawless and deadly.

In the midst of the cattle boom in the 1800s, the New York Tribune described Abilene, Kansas, as a place where “there is no law, no restraint in this seething cauldron of vice and depravity.”

A report in the Washington, D.C., Evening Star on another cow town in 1878 trumpeted: “Dodge City is a wicked little town. Indeed, its character is so clearly and egregiously bad that one might conclude that it was marked for special Providential punishment.”

The reality is that back then, a majority of workers in the Western boomtowns were honest, hard-working, rather boring family men and women. They weren’t all Doc Holliday, Jesse James or Calamity Jane. Today, it’s the same: most oil workers are trying to make a living in a tough economy, trying to save money for their families and, in that process, strengthening our energy independence. Not an easy job. They deserve respect, not ridicule.

 The effects of pending Environmental Protection Agency regulations combined with economic factors have resulted in a decision announced Wednesday (9/19) by PPL Montana to place the J.E. Corette power plant in Billings into long-term reserve status beginning in April 2015.

“Our detailed analysis has shown that to meet the emission reductions required by EPA’s Mercury and Air Toxics Standards, we would need to invest $38 million in the Corette plant. We simply cannot justify that level of spending in the current wholesale power market in the Northwest,” said Pete Simonich, PPL Montana vice president and chief operating officer.

Wholesale power prices have been depressed in the Northwest because of declining electricity use and an abundance of new wind energy projects subsidized by federal production tax credits.

PPL Montana plans to operate the Corette plant until requirements of the Mercury and Air Toxics Standard take effect in April 2015. The plant will then be placed in reserve status, commonly called “mothballing.”

Mothballing the Corette plant, rather than shutting it down permanently, gives PPL Montana the opportunity to resume operations at some point if conditions change.

The 154-megawatt power plant, which uses low-sulfur coal from the Powder River Basin, has 35 full-time employees. The plant began operation in 1968.

“We respect and appreciate the skills and dedication of the plant’s employees in meeting the many operational, environmental and economic challenges they have faced. We expect no immediate change in the number of jobs at the plant, and we pledge to work with plant employees to ensure that the transition period over the next two and a half years is as smooth as possible,” Simonich said.

PPL Montana also operates the Colstrip power plant, which is not affected by the Corette decision and is better positioned to meet the requirements of the Mercury and Air Toxics Standards.

PPL Montana owns more than 1,200 megawatts of coal-fired and hydroelectric generating capacity across Montana and has offices in Billings, Butte and Helena. PPL Montana and its 500 employees support educational, environmental and economic development programs across the state. PPL EnergyPlus operates a trading floor in Butte that markets and sells power for PPL Montana in wholesale and retail energy markets throughout the western United States. PPL Montana and PPL EnergyPlus are subsidiaries of PPL Corporation (NYSE: PPL). More information about PPL Montana is available at www.pplmontana.com.

Contact:  David Hoffman, 406-431-6783, mdhoffman@pplweb.com

]]> http://synergystation.com/energy/corrette-coal-power-plant-to-be-mothballed/feed/ 0 http://synergystation.com/energy/vote-for-energy-and-natural-resources-in-montana/ http://synergystation.com/energy/vote-for-energy-and-natural-resources-in-montana/#comments Tue, 11 Sep 2012 18:40:38 +0000 Laura McRae http://synergystation.com/?p=7179 By:  Republican Gubenatorial Candidate, Rick Hill

Energy & Natural Resource:

I am not ashamed to call Montana the Treasure State. With an abundance of natural resources that other states can only dream of, Montana has the potential to supply energy and natural resource commodities to our entire nation and the global economy beyond. We should be on the cutting edge of developing new technologies in wind energy, clean coal, oil and gas development. Utilizing our natural resource wealth translates directly into new jobs for Montanans and a more robust tax base.

I was the original driving force behind the push to develop the Otter Creek Coal tracks as part of the New World Mine agreement. And I’m ready to do more. There are many other opportunities for oil, gas, coal, and wind development in our state that have the potential to revolutionize our economy.

Oil & Gas:

Wyoming, with 46 rigs and North Dakota, with 150, have been able to benefit from the extensive development of their oil and gas resources, Montana’s oil and gas development has remained stagnant at a rig count of eight.

We must utilize our oil and gas resources to their full extent and work to minimize frivilous lawsuits and restrictive federal regulations that inhibit development.

The development of Montana’s oil shale is essential to the growth of the industry and to increasing the availability to high-tech, high-wage jobs for Montanans. The use of hydraulic fracturing, known as fraccing, to efficiently gain access to larger amounts of oil in Montana has opened the door to energy supplies that were formerly unavailable.

Amid the beat of bongo drums and a smoky haze of questionable origin, they plan to confront Montanans with a choice about our economic future.  They want our massive coal resources left in the ground forever. The out-of-state environmental groups organizing this protest recognize the same fact that has many Montanans excited—our state has more coal than almost anywhere else in the world, and right now we don’t produce very much of it.

Montana has more coal than any other state; in fact we have twice as much coal as the number two state, Wyoming. And among coal-producing states, Montana produces far less of our reserves annually than anyone else. Add those two facts together, and Montana has by far the most potential in the country to significantly increase coal production.

Montana has historically been a minor coal producer for a number of reasons. One is transportation—other states, Wyoming among them, are closer to big Eastern and Midwestern coal markets. But Montana has also put up significant regulatory barriers that have discouraged coal development. For instance, Montana has an effective coal severance tax rate nearly four times greater than any other state, and Montana has what is considered by many to be the most inefficient legal system in the country.

But now, the landscape seems to be shifting in Montana’s favor. Markets to the west of Montana, including over-seas markets in Asia, are seeing a rapidly-expanding demand for coal. That puts us in a geographic advantage over all other coal-producing states.

These developments have not been lost on environmental groups, and that’s why they’ve made Montana ground zero for their anti-coal campaign.  To go the way of the environmental protesters would be an incredible detriment to our state. The proposed Otter Creek mine would create over 2,000 new jobs and result in $200 million in economic activity each year. Tax revenues from Otter Creek would add $92 million to state and local governments annually—allowing for tax relief for homeowners and new investment in education and infrastructure.

And that’s just one new mine. The potential is so much greater than that. Montana has so much coal that we’ll never be able to use it all. At our current production rate, we’ll be digging coal in Montana for nearly 1,700 years. We have enough coal to supply the entire U.S. electricity demand for over a century.

Since we have more coal than we’ll ever need, it’s in our best interest to sell a tiny fraction of it to foreign markets where the demand is growing.

Increasing coal development in Montana will have a transformative effect on our entire state’s economy. The opportunity is huge, it’s here, and it’s now. To say “no”, as the environmentalists would have us do, would be like tearing up a jackpot lottery ticket.

Yet to turn down this opportunity is not so far-fetched. Already there are elected officials in Montana who have sided with the environmentalists in their war against Montana’s coal.

Most notable is Steve Bullock, who led the opposition on the State Land Board against Otter Creek. Now Bullock is raising a significant portion of his campaign cash from those same environmental groups who will be protesting in Helena this month. They’re organizing on Bullock’s behalf because they know he’s their best chance to keep Montana’s coal in the ground.

The great irony is, though, that if Montana were to take the advice of the out-of-state environmental groups and shut down our coal production, we will have done absolutely nothing to reduce carbon emissions. That’s because emissions are driven by demand, not supply. If Asian markets can’t get Montana coal, then they will continue to buy coal from suppliers in Australia, Indonesia, and South Africa.

Reducing Montana’s coal production hurts our state’s economy, but doesn’t accomplish much else.

The anti-coal protest is aimed at voters in Montana. The environmentalists are making their case that Montana can do without more coal production. What voters really need to recognize is the incredible economic opportunity our state will be giving up if we elect the environmentalists’ anti-coal candidates.

Senator Ed Walker serves on the Montana Senate Energy and Natural Resources committees. He represents Senate District 29 in Yellowstone County.

The people involved and the discussions pursued at Energy Day at MontanaFair were indicative of the broad range of businesses and organizations that are engaged, as they unveil a new source of economic opportunity, stemming from energy development. Sometimes it was surprising to discover just who is involved and how they connect, but then comes the realization that for all the discussions of economics and technology, it is just life, and those involved need all the same services, commodities and support as any other community – so, opportunity abounds.

To find Sanjel, ExxonMobil or Schlumberger tucked in along the rows of vendors of the classic Heritage Building at Metra Park in Billings, Montana was not surprising, but to also find the Yellowstone Boys and Girls Ranch, COSTCO, and the Montana Farmers Union was somewhat of a surprise, until they explained.

The Montana Farmers Union is concerned about keeping their members informed, many of whom are the landowners who are leasing mineral rights to oil companies. “We want to be able to help them protect their mineral rights and their property rights,” said Aeric Reilly, membership developer, who was manning the booth on Thursday ,”We had members calling in about leases, so we held meetings to try to help inform them.” When 250 members turned out for a meeting at Lewistown, they knew they had struck a chord. Having a booth at MontanaFair’s Energy Day is a continued part of that out-reach.

Interest in the oil patch by Montana Farmers Union, which has been representing agriculture producers since 1915, shouldn’t be surprising since there is emerging an understanding that while there are issues of contention between the two industries there are also corresponding interests. For example, it was recently reported in North Dakota that a railroad grain terminal facing the stark prospect of having to lay off employees, due to a decline in business, found it could augment business by also operating the loading terminal for oil. They in fact hired more employees. So while oil development is having a significant impact on their way of life, agriculture is embracing energy development, more than willing to work out their differences for the shared opportunities.

Interest of the Yellowstone Boys and Girls Ranch (YBGR) is two-fold. The communities in the midst of the tempest are being impacted by a significant jump in school enrollment, often with students who have had turmoil in their lives because of economic stresses and displacement brought on by the recession and their parents’ job searches.

The small schools lack the mental health services and expertise that are offered by YBGR. Gary Flohr of YBGR said that YBGR wants to inform the companies, whose employees are the families that will be in need of their services, about their therapies and behavior specialists – that they offer residential treatment and preventive care. Extending their services to outlying communities is not new for YBGR; they already provide services in a number of smaller communities.

Also, YBGR has “kids who are growing out of the system,” in need of jobs and careers. Connecting with oil field companies with job opportunities is important for those students, Flohr said, noting that there are as many as 15,000 jobs in Montana and North Dakota that employers are having trouble filling.

Huntington Learning Center in Billings had very much the same idea for providing teaching services to help students keep up in the classroom. Jennifer Quinn said that theirs is the only franchise in the state, and they are already extending services from Plentywood, Montana, to Cody and Sheridan Wyoming.

COSTCO played a very active role at Energy Day, as they made the effort to find out what is needed in the oil fields and to let the companies know they can deliver – by the truckload if necessary – which has often been the case as most of the supplies needed by everyone in eastern Montana and western North Dakota are coming to Billings to supply. Saturday morning, visitors at Energy Day, were greeted by a table full of Costco pies, which were served up later in the day by COSCTO representatives, who talked about the challenge that is probably being encountered by all retailers. Building stores in the Williston Basin and staffing them in competition with all the other building and staffing needs is, almost, an impossiblity, so how else can they meet the needs of prospective customers? The company is exploring for those answers.

Searching for ways to reach markets in the Bakken was also the purpose of the involvement of Beetle’s Auto Body, Inc., in Billings. Hearing that it takes at least a two-month wait for people to get body work and mechanical repairs for their vehicles, in the Bakken, owner, “Beetle” Bailey, is offering transport services from Williston to Billings. To be able to haul several vehicles at once would make the service more affordable, he said, but the service provides faster turn-around and saves people the time of having to come to Billings, themselves.

Of course, while oil and gas seemed to steal the limelight, Energy Day is about all kinds of energy development. Representing Cloud Peak Energy was Senior Manager, Government Affairs, Todd O’Hair who talked about what his company is doing and about the future of coal. He said he was pleased to see that Billings is so supportive of energy development.

Big Sky Linen, a Billings commercial laundry, also had a presence at Energy Day, because they are more than a laundry. The company sells and cleans flame resistant work clothes. “It’s the biggest thing coming down the pike, for oil and gas as well as other industries,” said the owner Rob Cline. The federal government is mandating that workers wear the special clothing in all kinds of venues. His business has already felt the impact of the oil fields, and they are searching for more ways to tap into it.

Airgas Intermountain, too, sells flame retardant clothng, as well as all kinds of other safety equipment. Airgas is the largest US distributor of industrial, medical, and specialty gases and hard goods, such as welding equipment and supplies. Billings has emerged as such an important market that they built a new store at 6785 Trade Center Avenue in Billings. It is the first store the company has that provides both the retail outlet and the service aspects of their business. Lacey Williams, safety trainer, and Jacob Anderson, safety supervisor, are two of the six employees who now work for Airgas in Billings. They provide everything in the realm of personal protection equipment, including the training needed to “keep industry safe”.

Of course, big names in the oil business were present at Energy Day. ExxonMobil, which one might think needs no introduction, was there to make sure people know the role of the refinery in the future. Spokeswoman, Pam Malek, said that they answered a lot of questions about what kinds of occupations are available and how to apply for jobs. Contractors, too, were interested in pipeline projects.

Schlumberger is an equally big name, but it may be new to many people, locally. It’s a name recognized around the world, as the world’s largest oil and gas field service company; delivery technical solutions – high pressure pumps, generators, hydraulic and pneumatic systems, electrical systems, engines, transmission and fuel systems – to their customers.

Schlumberger recently built a huge new facility in Williston, North Dakota; significantly increasing their capacity. The company has had a presence in the area for years, but over the past three years they have tripled the number of crews operating in the area, according to Tom Papiernik, technical sales support engineer. Besides wanting to provide information to the public about what they do, Schlumberger was in serious recruiting mode for employees as they greeted visitors to their booth.

Schlumberger and others brought equipment to Energy Day so the public could see, up close, the technology that is making shale oil production possible. Papiernik and others spoke to audiences during Energy Day about what they do and how the technology works, countering much misinformation and attempting to alleviate concerns about risks, and the industry’s commitment to mitigating risks.

For example, hysteria about fracking contaminating underground water sources, is usually brought into check as soon as people understand that all the action is happening two miles below underground water reservoirs.

While anti-industry activists are well programmed and fully focused on agitating against hydrocarbon production, defending themselves is not the focus of the industry, nor are engineers usually as adept at public relations, but they are recognizing the need to inform the public so as to promote more common sense regulations. Energy Day is an opportunity to get the message out to the audience that will likely be greatly impacted by any policies which are imposed. It’s all about communications.

For all of these businesses – for all the businesses in the oil fields – other than housing and transportation the next biggest issue is one of communications. Businessess need to connect with other businesses in a growing and vital economy. Many of the avenues and resources commonly used to do that haven’t been available in the Bakken area, so companies are pursuing every idea that presents itself, and devising more new and creative ways of reaching each other and to recruit for prospective employees – hence their presence at Energy Days.

Such is also the reason for the creation of synergystation.com by Laura and Kendall McRae, who helped to pull Energy Day together. Theirs, too, is a business that has emerged solely because of the oil boom, and solely in an attempt to provide a new means to facilitate connections within the industry.

It is because of the need to communicate that Energy Day is so dynamic and is poised to be even more successful in the future, according to Laura McRae. She pointed out that the oil companies and support businesses viewed Energy Day as so important that they pulled vital people and equipment from the fields, at considerable cost, to spend the three days at Montana Fair.

Interestingly, during one of the seminars, one of the audience members asked, “Is it true that the US has the capability of being 90 percent energy independent?” There was a pause, as the numerous industry representatives in the room waited to see who would answer, and then all answered at once, giving a resounding, “yes!”

No one was more enthused about the potential for natural resource development in Montana than was Ed Walker, who was on hand to represent his employer, Loenbro, a pipeline company, which installs pipelines and provides services to companies using pipelines. The company will lay some 500 miles of pipeline this year in the Williston Basin, North Dakota, Montana and Wyoming.

Loenbro provides a unique technology, devised by the welder-trained brothers, to test welds on site. Called NDT (non-destructive testing), it uses an ultrasound process which is safer and more accurate and faster than previous x-ray technology. The process can follow right behind a pipeline layer or it can be taken to any site. It reduces turn-around time for a refinery by one-third to one-half and can pin point to the micrometer a defect. “That is real dollars,” said Walker.

“Montana is poised to be the energy epicenter of the US, if we get our energy policies right,” Walker said, “There is opportunity and prosperity on the horizon.” No state has the carbon resources that Montana has, said Walker. “No one state has it all the way we do, but we are at a decision point in our economy.”

Walker, who is also a state legislator, was just as enthused about the story of Loenbro, a company founded by two brothers from Sun River, Montana, three years ago, who today employ 250 people. Walker is, in general, enthused about the entrepreneurship that is bursting forth because of the energy boom. There were several exhibitors who had similar entrepreneurship success stories.

For example, Rig Mats of America which has devised portable high-strength, lightweight rig mats, to put over the ground to preserve it from heavy equipment traffic or to create a platform when the soil is unstable. Another emerging entrepreneurial effort comes from Sivert and Richard Mysse, under the business name, Hot Fracking Water, Inc. Recognizing an industry need to be able to heat water during winter’s freezing temperatures they designed and manufactured a semi-trailer that is more energy efficient and five times larger than the traditional 45-year-old hot oiler truck that is commonly used. One of their colorful trucks was on display at the show.

Sanjel – a name that is probably more readily recognized for their expansion into Billings with a regional maintenance and training center—is a Canadian-based company that does business worldwide providing systems and services that maximize production at the well. “We want to educate and inform the public about what we do,” said Alan Olson, Senior Field Sales Representative. “Billings has been good to us. Montana has been good to us,” said Olson, because of that Sanjel felt it was obligated “to be involved” in Energy Day. Olsen said that Sanjel is a “small, quiet company, family-owned and family oriented.” Thirty people work in Billings for Sanjel, which also has a location in Miles City. Throughout the state they employ some 250 people, and 300 in Williston.

Other representatives of the oil industry included Shale Exploration, which was founded in 2011 in Ft. Worth, Texas, and is opening an office in Crowne Plaza. The company, also has offices in Shelby and another in Scobey. Shale Exploration does exactly what its name implies, they explore for shale oil for themselves or for other operators – and said company spokesman, “there is lots of exploring to do in Montana.”

“After over 12 months of leasing and multiple large acquisitions, from numerous companies, Shale is positioned to begin development of the Bakken-Three Forks Jayhawk Prospect.” Shale Exploration and JV Partners hold more fee Leaseholds and State of Montana Leaseholds in Daniels County than any other company. The company employs about 70 people company-wide, of which 20 are located in Montana.

Nabors Well Services, the world’s largest onshore drilling contractor, has had an office in Billings since 1948, prior to the 80s it was known as Pool Company. Forty percent of the rigs in operation in the Bakken belong to Nabors. They joined Energy Day because they are in search of employees. Russ Burch, District Human Resources Manager for Nabors said they are looking for rig supervisors, crew chiefs, derrick workers, crew workers mechanics and CDL Class A Drivers. The company has yards in Baker, Glendive, Plentywood, and Sidney and in North Dakota, Belfield, Fairfield, and Williston, also in Rock Springs, Wyoming and Roosevelt, Utah.

MacTech based in Red Wing, Minnesota was also part of the show, seeking to connect with prospective customers for its wide range of on-site machining and heat treating services and equipment. Employing some 75 people, the company rents and sells, and has design engineers to solve problems, explained company representative Quentin Luff. Their clients are typically refineries, power plants and manufacturers. “We are a small company that values good service,” said Luff, who sees his role as establishing trust and confidence with the businesses involved in the rapidly growing energy industry in Montana. If they can gain the business necessary, to open an office in Billings is a very real possibility.

Prudential Floberg Real Estate wanted to interact with the companies who are moving here and bringing in new people. “We have specialist who understand the whole relocation process,” said Patty Connelley. They have already represented some workers who are relocating to Billings. The impact of people in search of energy-related jobs and companies doing business in the oil fields is already being felt in the Billings real estate market, said Connelly, announcing that as of last March the demand for housing in Billings switched from being a buyer’s market to a seller’s market.

Clay Schreder, owner C’s Exterior Design, a construction business of some 18 years, has an idea for a mobile cabin to replace “man camps.” He has launched a new business Signature Cabins, LLC, and had a prototype on display for visitors, feeling out the prospects for production. The first thing everyone says when they see it is “Wow!” said Schreder. There are more applications for the comfy-looking living units than just to relieve the housing pressure in the Bakken. Schreder suggests recreational cabins or mother-in-law suites. They are built to last as a home-away from home.

The American Fuel and Petrochemical Manufacturers Association, a trade association based in Washington DC, wanted people to know what the four refinery members of the association do. Spokesperson Steve Higley pointed out that their members employ two million people in the US in the process of producing refined petroleum products.

The American Energy Alliance played a major role in Energy Day, likewise, wanting to provide information to the public about the need for the AUS to become more energy self-reliant. The organization is in the process of traveling from state to state in a bus, on which they ask people sign their names in support of domestic energy production. Upon hearing about Energy Day, they turned the bus around and headed back for Billings, to take advantage of the public exposure and gather more signatures to petition the White House, by parking the bus outside at the end of their tour. Spokespeople pointed out that the US uses 20 million of petroleum based products a day, of which just under half is imported. Producing our own or importing it from friendly countries like Canada can “keep us edging towards zero imports.”

Understanding that there will be many business start ups, as well as expansion of existing business because of the energy boom, SCORE was on hand to let entrepreneurs know that they are available to provide business advice and counseling from retired business people. SCORE (Service Core of Retired Executives) is a volunteer program under the US Small Business Administration dedicated to assisting small business owners to succeed and grow.

On the private front there was also a consultant whose business does much the same thing. Dr. Joe Michels, founder of Solomon Bruce Consulting, said he as “invited to participate to be able to help clients and prospective clients improve their business operations. Formerly of Billings, Michels now has his company located in Ft. Worth, Texas. He pointed out that being located in Ft. Worth is little different than being located in Missoula, as far as proximity to potential clients. It’s only a five hour trip, he said, and “we have much greater collaborative power than was available in the Rocky Mountain region.

And, then there are the basics of services that every business needs, but many of those involved in the Bakken have little time or opportunity to pursue. Kinetic Marketing and Creative wanted companies to know that they are fully prepared to fill the gap. They stepped up to help promote Energy Day giving it a professional flare and helping to market it. Also, offering services, especially in the realm of social media marketing was BLaST creative, a full-service marketing studio providing custom print and Web design.

Part of marketing involves promotion through the use of specialty items emblazoned with logos and company names. Marilyn Roen with her company, MGR Marketing Tools, was introducing prospective clients to the broad range of promotional products, printing services and E-commerce solutions she has to offer.

People are making money in the energy boon and often need help in handling it and planning for the future. Denise Bouscher was one of several representatives of Primerica offering their expertise in planning for the future and for the unexpected. ‘My mission is to make sure that they set themselves up so there will be something there for them in the future.” Bouscher serves clients throughout Montana, North Dakota, Minnesota and New Mexico. “I go where people are looking for me,” she said.

AFLAC offers benefits to employees, explained Susan Kahn. Working through the employers or with individuals, AFLAC has products that pay cash when people are most in need of it.

And, the time could hardly be better for the Petroleum Club, to seek new members. Kayla Piatkowski, banquet manager for the restaurant located on the 22^nd floor of Crowne Plaza, said they wanted to let people know that they are available to serve entertainment needs for members and non-members.

And, just to show that there is no limit to the prospects for local entrepreneurs, Body by Vi, a business owned by Karen Gosz, was introducing people to good nutrition. For people on the go in an area where food services are often not very convenient, they offer products that are nutritious, filling and affordable.

Montana has more potential for diverse energy development – both existing and untapped – than any other state in the nation. Oil, as one of these resources, provides the state with tremendous economic opportunity, creates good jobs here at home, and increases energy security for the nation.

Eastern Montana is seeing the beginnings of one of the nation’s largest energy plays – the Bakken. In Richland County, the Elm Coulee field has already been one of the most productive onshore oil fields in the lower 48 states, and could end up being the largest in history. Some 20 percent of the field is found in Montana, while the rest underlies western North Dakota and southern Saskatchewan.

Knowledgeable folks in the industry tell me that, above all, drilling takes place where the shale formation is most accessible. The formation is thicker, and is also under more natural pressure in North Dakota. So the lion’s share of wells are being drilled across the border, but as those wells drop in production, more and more activity will be moving west. Based upon the aggressive leasing now going on in Montana, we are starting to see that shift, with some 20 drilling rigs already present in eastern Montana.

“Landmen” have been storming courthouses and buying up leases. Why? Because setting aside the geology, Montana is a great place to do business. The industry is poised to take advantage of our competitive tax rate. According to the conservative Tax Foundation’s state rankings, Montana has the eighth best tax climate in the nation, and much lower than that of our neighbors.

Making Montana even more attractive, we have a lower tax burden. On paper, our taxes are about 20 percent lower than North Dakota’s – 9.75 percent to 11.5 percent. But when Montana’s 18-month tax holiday on wells is applied over the life of a productive oil well, our taxes are a full 40 percent lower than North Dakota’s. It didn’t surprise me to hear Continental Resources CEO and Chairman Harold Hamm tell folks in Billings that the reason his company started drilling in Montana was because of our business-friendly regulatory and tax environment.

State regulators do a professional job in a short timeframe to keep rigs operating in the field. One permit application in Montana takes about 60 days,  which is under the 75 days allowed by law, while a permit in North Dakota takes, on average, the legal limit of 365 days.

In more good news, the Keystone XL pipeline proposed to run across eastern Montana will include a $100 million onramp for Bakken oil producers near Baker. I insisted on this addition in order to provide relief from the shipping bottleneck that has restricted market access in both Montana and North Dakota; producers will no longer be forced to accept steeply discounted prices for their oil. The state of Nebraska has been a bit of a roadblock to the Keystone XL, but I am confident that once Nebraska reworks its pipeline route, federal approval will follow.

All of Montana is benefitting from the recent reforms to our Workers’ Compensation Insurance system. Businesses now save an average of 20 percent on this expense. In addition, I signed legislation that yet again reduced the business equipment tax. Both actions should have a positive effect on job growth and business development in the state.

Rapid development often changes a community. Growing pains can strain local governments’ capacity to meet new demands. Last month I met with oil patch leaders to again offer continued assistance in the region. I have instructed several state agencies to double down on efforts to lend a hand with the impacts of oil development.

From the Department of Transportation to the Department of Commerce, these agencies can help with roads, water treatment plants and other essential services.

We’re lucky. Our beautiful state lies within the most important energy corridor in the world. Our resources include wind, natural gas, coal, biofuels, solar, geothermal, hydroelectric, and, of course, oil. The future is shaping up to be a very productive one for oil and gas in Montana, and I will continue to encourage good public policy so we get it right.

If you have ideas about how we can get it right with oil production, energy development, or anything else in Montana, please do not hesitate to contact me. You can reach me at governor@mt.gov or by phone at 406-444-3111.

Billings will “remain a good hub for energy, and a good location for Sanjel” for a considerable time, Alan Olson told a tour group during a visit to the company’s maintenance and training facility. Olson, who might also be recognized as a Montana State Legislator, is manager of the Billings facility for Sanjel Corporation Billings, a service company which fracks oil wells. “We are primarily a high-pressure pumping company,” explained Olson.

Members of the Big Sky Economic Development Authority’s tour in mid-June saw one of the behemoth $3 million trucks which pumps the fracking fluids into the oil wells.

Sanjel’s facility at Cordova Street in Billings is where they train crews to do the hydraulic fracking and maintain the trucks, for fields in Montana, North Dakota, Wyoming and Texas.

The Billings facility has a counterpart in Huston, Texas. The company’s headquarters in the US are in Denver, and the home office is in Calgary. With a facility also in Miles City, the company employs 500 people in Montana and North Dakota.

Olson explained that in Billings they are usually running two training classes at a time, with about 20 people in each class. “Billings is a good place for this kind of facility,” he said, “There is a good workforce here.” And, there is good access to everything — technical support, parts for diesel motors, transportation, plus land is cheaper than in Williston.

The company runs five truck fleets – two out of Williston and three out of Miles City.

Olson explained that their crews encase the holes that go into the earth in concrete, to depths of 2000 to 4000 feet. Cementing the holes keeps the fluids from migrating, and it is done to protect the ground water and to prevent contamination.

Tour members peppered Olson with questions. He was asked his perspective regarding longevity of the Bakken play. It will remain active at $82 a barrel, he assured, nothing, however that the $82 price equates to $62 a barrel in the Bakken.

But, as oil prices drop so does the cost of doing business, said Olson. Price extremes at either end, stop production and exploration, he said. A good price range is $60 to $80.

“Every time we have a boom we get further ahead with technology. The price differential happens because of a lack of pipeline. Companies have to ship out oil by more costly means. The failure of the Keystone XL Pipeline to get approval increased that differential from $10 to $20 a barrel for the Bakken,” said Olson.

A fracking job costs about $1.2 million The cost of completing a well is about $10 million. And not all wells produce 1000 barrels a day, noted Olson.

Olson was asked about oil activity in central Montana.

He replied that there has long been a lot of interest in the Heath formation, which is what is being explored there. The first oil in Montana was found at Roundup in 1919. But the area has never proved overly productive, but they hope that the new technology “can get it to work.” “We are optimistic,” said Olson. There are currently three major oil companies operating in the area.

News of the permitting failure of the Keystone pipeline pushed the price of oil in central Montana and Musselshell County down to $50 a barrel. The oil from Musselshell is shipped by truck through Billings to Silver Tip, Wyoming.

“We were looking forward to the Keystone XL,” said Olson.

One gentleman asked if the oil sent to the refineries in the south will be sent to other countries, if so, “what benefit is that to us?”

Olson said that some of the oil would undoubtedly go to other countries, after being processed in US refineries. He pointed out though that the oil market is a dynamic one in which some oil is shipped out of the country, while other oil comes into the country, such as from Venezuela, which has no refining capacity and sells oil through Citgo outlets in the eastern US.

The Keystone Pipeline has “a lot of benefits,” said Olson, “most especially in knowing it is a secure pipeline.” He added that if the Canadian crude, which will also be transported by the Keystone, doesn’t come to the US it will go to China. “Where would we rather see that oil go, China or the US?” he asked.

Olson added, “anytime we can manufacture something and export it, that is the best kind of economy we can have.”

Having watched a pipeline being built before, continued the gentleman, it didn’t appear to him that it employed that many people. Olson replied, “It’s not just the guys you see on the right-of-way, on the ground, there are a lot more behind the scenes.” The building of a pipeline employs engineers, suppliers, transporters and a host of other support services.

Are you in love with your business partner?  Not just for their love of numbers, the company you have created together, or their customer service skills, but their cute little nose, their manly smell or the way they make your knees go weak with a passionate kiss?

Whoa, back up.  Passionate kiss?  Can entrepreneurs do that sort of thing?

They can and they do!  Even though the U.S. Census Bureau does not provide exact data on the number of businesses own by couples, they do show that approximately 3 million businesses are owned equally by men and women, estimating that the vast majority of these are businesses owned by an “entrepreneurial couple”. It would wrong of us to assume that none of these couples are romantically involved. Out of 3 million…that sure is a lot of lovin’ in the office.

In addition, the phenomenon occurs even more regularly when applied to small businesses with less than 10 employees.  Apparently when people live together, laugh together and decide to build a life together, the imagined life of working side by side through the long hours required of business ownership is a logical next step.  And it is.  They trust each other, they enjoy being together and they are often passionate about the same things.  These couples jump into the business with all of the passion that got them into bed the first time and it is a beautiful, passionate journey; most of the time.

To ensure it is a passionate and wonderful journey all of the time, here are 5 things to consider:

1.  Take a break.  Not from the business, but from each other.  Go for a walk, go on vacation and go out with friends…alone.  You simply have to have moments apart so you have something to talk about when you come back together.  No one wants to be the boring folks ignoring each other over dinner and no one wants to be the bickering couple either.  Spending time in separate locations keeps you both interesting and able to be just a little bit nicer when you are together.

2.  Take care of the couple first.  Someday the kids will be gone, the business will be gone and you will be left staring at the person you decided to build a life with.  Don’t wake up and wonder how you ended up in bed with a stranger.  Be romantic.  Be spontaneous.  Be a flirt.  Step away from everything but each other once in a while.  You deserve it.

3. Set clear goals.  There is nothing worse than working side by side hour after hour only to realize you were both going in different directions.  Knowing where you are going, when you want to get there and who is doing which tasks is essential.  Deciding your direction now, when everyone is calm, is a better plan than waiting till you hit a fork in the road; because that fork could very well be used to stab someone in the leg.

4.  Hire help.  Someone out there likes to clean toilets and I bet it is neither of you.  Someone also knows how to fix a computer, balance the books, and run social media.  Let them.  Make a list of everything that needs to be done- and what has to be done by you – then farm out the rest.  The trick is to use the time you are not doing menial tasks to earn money to pay for the people doing those tasks or to take care of the couple as talked about in point two.

5.  Don’t be the boss.  You can kiss your entrepreneurial partner, but you probably don’t want to kiss the boss.  The boss is a Big Ol’ Stinking Slob.  They think they are always right, use volume and intimidation instead of effective communication and would rather watch others work than participate in work.  If you are acting like the boss and your partner doesn’t like it you can be fired.  That firing usually means the kids and the house are divided and happily ever after is not going to be the end of your story.  Be kind.  Be helpful.  Be a partner.  Don’t be a stinker: don’t be a boss.

Bonus Point: You need other people.  And you have to let them into this crazy project you are doing together.  Enlist the help of a coach, an accountant, a lawyer and probably a therapist (better early on than when it is too late!).  Well-meaning friends and family do not know what you are going through, and truth be told, you probably don’t either.  There are people out there who do, and people who can help you lay out a game plan that will keep you sane, prosperous and most importantly, together.  Let them.

Now go kiss your big ol bundle of entrepreneurial passion- and don’t stop till their knees go weak.  But, do it fast, you have work to do.

Canadian Association of Petroleum Producers (CAPP) projects production levels in the Canadian crude to top 6.2 million barrels per day by 2030; doubling 2011 production levels of 3 million barrels per day.  According to Greg Stringham, CAPP’s vice president,  ”this forecast growth will place Canada in the top three or four oil producers in the  world”.

Optimistic outlook for Canadian production is not solely relegated to the oil sands, although by 2030 – nearly 81% of all Canadian production will come from the oil sands. “Resurging growth in Western Canadian conventional oil production and new oil sands investments are driving the positive outlook,” Stringham contends.  The increase is due to new technology allowing companies to produce oil from formerly uneconomic resources, reversing a significant declining production trend over the last decade in Canada.

Increasing production will continue to strain existing pipeline systems for the foreseeable future.  As a result, expansion of Canada’s pipelines will become a necessary and continuous process in order to deliver to new markets.  At the present time, a portion of Alberta oil sands petroleum is destined for markets in eastern Canada, which imports more than 50% of its current oil supply from offshore / foreign suppliers as well as traditional and nontraditional (shale) markets in the United States.

http://www.theglobeandmail.com/report-on-business/video/video-canadas-newest-pipeline-the-train/article4186630/

Now, the key point in this post is that money, as used in this context, can take a wide variety of media– green dollar bills, helping out a less fortunate individual, giving when one can afford to give, sharing the excesses are all ways in which “Money Begets Money.”

From a philosophical standpoint, one can learn that helping others is a valuable tool in improving mankind.  We can get into some deep philosophical ideas rapidly– we are not going there today.  However, what we have seen and what many of our clients have experienced great success with is sharing with others that have a need that you can fulfill.  It may be green dollar bills, it may be time, it may be physical assets, the key point is that when you help others, you help yourself.

This idea of “helping others” is prominent in the rural environs of our country.  Farmers help farmers with crops, raising barns, helping during a family emergency– again, it is all “Money Begets Money.”  Think about this the next time that someone needs some help, aid or assistance.  I think that you will find that the return you receive will be greater than the amount that you invest.

To learn more about Solomon Bruce Consulting LLC, visit their listing in the Synergy Station Directory or the company website.

From a technical perspective, a screen-out refers to a condition where continued injection of fluid during the horizontal fracture requires pressures that exceed the safe limitations of the wellbore or wellhead equipment. Operationally, this causes a severe disruption in fracturing operations in horizontal wells and often requires cessation of pumping and cleaning of the wellbore before resumption of operations. Screen-out is an operational issue and does not necessarily mean damage to over all well productivity.   Many wells end up being robust producers after a screen-out.

The primary cause of a screen-out during the fracturing process is a blockage to the movement of proppant inside either the wellbore, perforations or the fracture itself. The details and frequency of screen-outs are largely influenced by the type of well completion.  Severity and consequences of disruptions caused by screen-outs in horizontal wells depend on the type of completion.

From a time is money concept, the rework time delays the successful completion of the well.  Because multiple crews are on site as a well is brought to production, their down time resulting from the screen out can have significant financial consequences for the well owners.

For Bakken well, horizontal fracturing is not a single event, but rather a series of successive frack stages that need to be performed according to a carefully coordinated schedule.  Any disruption in one fracturing operation jeopardizes the timely completion of all the subsequent fractures and, ultimately, the start of well production.

Schlumberger Oil Field Glossary:  A condition that occurs when the solids carried in a treatment fluid, such as proppant in a fracture fluid, create a bridge across the perforations or similar restricted flow area. This creates a sudden and significant restriction to fluid flow that causes a rapid rise in pump pressure.

If you missed it, thinking you will just catch it next time, you might want to take a look at the North Dakota Northern Lights from outer space.  While not an astrological phenomenon, the cause of this nightly glow is fairly  as interesting.

Nearly one third of the natural gas produced in North Dakota’s oil patch is being flared due to a general lack of existing infrastructure.  The natural gas is a natural by product of Bakken oil development.  According to Lynn Helms, the director of the North Dakota Department of Mineral Resources,  “gas produced in the state with crude oil from an oil well may be flared during a one-year period from the date of first production from the well.”  After that 1st year, the well operator has two options:  connect to a pipeline* or cap the well.  Operator can request extensions to give them additional time to flare if circumstances delay either option.

Currently, 32% of natural gas produced in the booming Bakken oil play is being flared due to weak infrastructure to support truck, rail or pipeline transport.  North Dakota operators were able to reduce flares from 36% to 32% over the past few months, inspite of 1,000+ new oil wells coming online.  According to Ron Ness, president of the North Dakota Petroleum Council, “this is a step in the right direction”.  The oil & gas industry is investing approximately $4 billion in the requisite infrastructure to capture Bakken natural gas.

Both state officials and environmental groups expressed concern over the slow infrastructure build out.  “We feel that it’s a complete waste of an energy source,” Wayde Schafer, regional representative of the Dacotah Chapter of the Sierra Club, said.  Nationally, natural gas flares range from 1 to 2 %.  With North Dakota flare rates at 32%, the state is woefully behind the standard.

*pipeline alternatives include truck and / or rail.

Legal jabs between two pipeline companies servicing the oil fields of western North Dakota continues to add to the Bakken crude bottleneck at a large oil terminal in northwestern Minnesota.  Currently, High Prairie Pipeline operates 250 miles of pipeline in the southwestern part of North Dakota and is proposing the construction of an additional 450 miles of pipeline designed to cross the state to transport Bakken crude to Clearbrook, Minnesota.   High Prairie estimates that the $650 million pipeline project is capable of transporting 150,000 barrels per day of Bakiken oil, a quarter of North Dakota’s current production.

Unfortunately the projected is stalled and may even be cancelled.  High Prairie alleges that Canada’s Enbridge Energy, the owner / operator of the Clearbrook terminal as well as over 8,000 miles of oil pipelines in Canada, North Dakota, Minnesota, and other states won’t permit the High Prairie proposed pipeline connection to their terminal.

It’s Enbridge’s contention that the oil boom from the Canadian oil sands in conjunction with the proliferation of the Bakken shale has resulted in a bottleneck at Clearbrook as well as an outbound pipeline to Superior.  With both at capacity, Enbridge with have to upgrade before new feeder pipelines could be added.

Ultimately the impasse has landed before the Federal Energy Regulatory Commission (FERC), the regulator of “common carrier” pipelines transport. High Prairie is charging that Enbridge engaged in discriminatory business practices in favor of Canadian oil sands crude.  Enbridge officials deny that Canadian oil is pushing aside North Dakota oil due to the segregation of heavy crude from Canada and the lighter oil from the Bakken.

With continued pipeline bottlenecks, much of Bakken crude is shipped by truck and rail car, which is significantly more expensive than by pipeline. Because of the extra transportation cost, Bakken oil producers make less money.

]]> http://synergystation.com/energy/more-oil-speculation-tantalizes-oil-explorers/feed/ 0 http://synergystation.com/energy/making-shambles-of-oil-peak-myth/ http://synergystation.com/energy/making-shambles-of-oil-peak-myth/#comments Thu, 19 Apr 2012 01:41:00 +0000 Big Sky Business Journal http://synergystation.com/?p=5483 In his presentation to Montana Energy 2012, Michael Economides told Montanans, “You are already a superpower in oil production. You have already defied the trends and once again showed the can-do attitude of this industry, smashing the myth of the ‘peak oil’”

“You have redefined and defied the trends suggesting strongly the future of energy is oil and gas and not solar and wind,” said Economides. Economides is professor at Cullen College of Engineering in Houston, consultant and author.

The reason places like Montana and Canada stand at the leading edge of the industry is because of conditions that exist in other countries, which are mostly hostile to the US. Many of these countries are “a shambles,” “corrupt,” and unstable. “It is hard to produce oil when people are shooting at you,” said Economides.

“You are making the whole myth of peak oil a shambles.”

People have been talking a supposed end in the availability of oil for years but supplies have always increased and continue to meet a demand that only grows as countries like China and India grow and increase their demand.

The reason is because of increases in price, said Economides. Economides expressed disappointment with the US Geological Survey and the degree to which they fail to take increasing prices into account in making their projections regarding supply. Increased prices increase the amount that producers can afford to invest, which puts into production resources that they previously considered uneconomical to recover.

Economides predicted that $100 a barrel oil is the new norm.

The price will be held because of the unprecedented demand for oil in China. The situation with China is “bizerk,” said Economides, “Never before has there been a country where their demand for oil increased 20 percent per year.”

Also OPEC, Russia and other oil producing countries love $100 barrel oil. “…they will try to keep it up there as long as they can.”

The amount of potential energy possible from such “alternative” sources as wind and solar, are so small that they “do not even register,” said Economides.

Economides pointed out that going back decades in the US, oil, gas and coal – the fossil fuels – have consistently contributed 87 percent of the fuel used in the country. He said that the day will come when his great, great grandchild “will stand here and tell you that 87 percent of the US fuels come from hydrocarbons,” said Economides, “There are no alternatives to oil and gas.”

And, that comes even with the increased demand for fossil fuels. In 1973, “the world energy demand was 60 percent of what it is today,” and in 2030 it will be 50 percent more than what it is today,” but still 87 percent will come from oil, gas and coal. Production from other energies may grow, but they will not be where the 87 percent is going to come from.

Nuclear energy is green and “it will have to play a role,” even though it “has yet to live down the bum rap,” it’s been given.

Energy from biomass is nothing new. One-third of the world’s population get their energy from biomass and it is the only source of fuel available to them.

Other “green energies” according to Economides, “simply can never cut the mustered from a physics point of view.”

He went on to criticize President Obama’s focus on solar and wind calling it a “never, never land.” He called Obama’s rejection of the Keystone XL Pipeline as “despicable.”

“How can you have too much of a good thing?” he asked, pointing out the importance of Canada, as a friendly country, and a dependable source of oil for the US.

Economides questioned every alternative energy option as being an ineffective alternative to fossil fuels.

He called ethanol a scam, because it takes 1.6 gallons of gasoline to produce one gallon of ethanol – not to mention the negative impact on food prices.

He said that not a single country in which wind energy is used has closed a single coal-fired plant and in fact their demand for natural gas has increased.

He said that he is not a climate change expert, but pointed out that “China is going to use every drop of oil they can get.” That means that whether the US uses the fuel or not it will still get used on planet earth.

“The last refuge of the energy scoundrel is CO2 sequestraton,” said Economides. “It isn’t going to happen,” he said, and “a high school chemistry student can figure out why.” He said that one 1000-megawatt power plan will require a space the size of New Jersey in which to store sequestered CO2. “And we have 1000 power plants.”

Natural gas is the energy of the future, predicted Economides. “There is absolutely no doubt that NG will take over” during the next 30 – 40 years.

World demand for natural gas is increasing about 7.6 percent per year.

He pointed out that natural gas is abundant and that Russia “has the natural gas.” Russia will become energy dominant, predicted Economides.

The US will become an exporter of natural gas in the form of LNG – exporting it especially to Europe. In the US the Marcellus shale in Pennsylvania and New York, “could easily be the second largest gas field in the world.

Economides predicted that by 2014 -15 the price of gasoline will get to $8 and stay there, because of world demand, led by China.

“China is like no other county you have ever seen. They don’t have enough oil to meet their needs.” Their demand is being driven by a process of modernization which is driving rural residents into the city. In China’s cities, said Economides, “700 million now live where 200 million used to live.”

They too will be using natural gas. Right now the country gets 70 percent of their energy from coal, but they have decreed that by 2020 they will increase the amount of energy they get from natural gas by ten percent – using about 14 trillion cubic feet – that is half of what the US uses annually.

China is going all over the world buying up every energy resource they can find. They spent $200 billion last year. “China is buying everything, while we are talking about solar and wind.”

Economides, who has traveled the world extensively in his career, said that the two most common questions he gets from the Chinese is “What is the energy policy of the US?” and “Why are you guys letting us do this?”

China will probably lead economically in the future, said Economides, saying that he believes China has more in common with the US, than Europeans do. “They have adopted what we used to do,” he said.

Upon questioning, Economides said that in his presentations he doesn’t have enough time to fully explain his position regarding alternative energies. They all “have a clear place and use,” but he said, “Let’s not pretend that solar, wind or even geothermal are going to replace fossil fuels.”

Indicating that he believes the issue of climate change will eventually go away, coal will be used to a greater extent in the US and it will go “head to head” in competition with natural gas. And, that is good, he said. “There is not a single solution by any means” and “competition is good.”

He said that “peak oil may never happen. Natural gas will contribute a massive share of transportation fuel.

Click to Follow:  Big Sky Business Journal, Evelyn Pyburn

Greg Dover, Vice President of Operations excellence for Denbury Resources, told a crowd of several hundred people at the Montana Energy 2012 conference in Billings that there’s going to be significant increases in the production of oil in Montana as the result of a completely different kind of technology than what is being used in North Dakota.

One of the most intriguing aspects of CO2 EOR is that it allows the resurrection of wells once considered depleted. Denbury Resources, a national leader in CO2 EOR, plans to invest some $3 billion over the next few years to squeeze additional oil from two well-known Montana fields.

In its heyday in the late 60s, Belle Creek in southeastern Montana produced some 48 million barrels of oil, Denbury expects to invest $400 million and pull another 30 million barrels from 475 existing wells.

In addition to Belle Creek, further north is the Cedar Creek Anticline, which Dover called a “monster field.” The company plans to invest $2.5 billion to recover some 200 million barrels of oil. Cedar Creek Anticline is four miles wide and 100 miles long, “and saturated with oil,” said Dover. At its peak, the field will produce 40,000 barrels of oil a day.

But, to get all that oil, Denbury needs a lot of carbon dioxide, which the company plans to bring from a natural gas process facility at Lost Cabin in Wyoming. A 232-mile pipeline is already under construction which is expected to be able to deliver carbon dioxide in time to begin oil production at Belle Creek in 2013. Production will take place in eight phases through 2019.

This phase of oil extraction can last up to six years – and then as production levels begin to decline, it will continue for perhaps another six years. Development could extend beyond that, adding another 30-40 years to the life of the fields. The area could be producing oil for another 100 years, said Dover.

The process of CO2 EOR is to inject the carbon dioxide into the well, under pressure. The CO2 acts as a solvent enabling the oil to flow more easily. After it has been brought to the surface, the CO2 is separated from the oil and then re-injected. No worry about encouraging the capture of CO2 – “It is valuable to us. We don’t want to lose any of it,” said Dover, who explained how they use a closed-loop system to reuse as much of the CO2 as possible.

Denbury Resources has also invested in another property at Riley Ridge in Wyoming as another potential source of carbon dioxide.

Because of CO2 EOR, nationally, there is a potential market for 380 trillion tons of CO2.

It has been estimated that in employing the technology there is 7.5 billion of oil to be recovered nationwide. “And, the industry is just scratching the surface,” said Devon. In Montana, Wyoming and North Dakota, alone, there is 3.2 billion barrels of recoverable oil, said Dover.

US CO2 oil production first started in west Texas in the 1980s – production using the process has steadily increased. Denbury today is producing 280,000 barrels of oil in its fields in New Mexico, Texas and Colorado, using the process.

“It’s a key prize for us,” said Devon.

Denbury is a leading oil company in the US and the largest producer of oil in Montana and Mississippi. The company employs 65 people near Baker.

In 2011 the company paid $53 million in state severance tax and royalties to the State of Montana.

Click to Follow More with: Big Sky Business Journal, Evelyn Pyburn

Well, not being a scientist I have to base my opinions on information I get from trusted sources, as do most of fracking’s detractors. And based on that information my conclusion is that, just like the Keystone pipeline opposition isn’t about pipelines, coal dust alarmism isn’t about coal dust, and megaload obstructionism isn’t about megaloads; most of the fuss about fracking has little to do with the actual process and more to do with getting rid of fossil fuels.

Let’s start with a simple, verifiable fact: In its 60-plus-year history, there has been no generally accepted peer-reviewed scientific study demonstrating negative impacts of fracking on water supplies. That’s zero, zip, nada. EPA administrator Lisa Jackson — hardly a fossil fuel advocate — told Congress just last year that there have been “no proven cases where the fracking process itself has affected water.”

Self-serving studies

Sure, there are plenty of studies “proving” that fracking is either essential to mankind or, alternatively, its inevitable downfall. Most of these tend to be a tad self-serving. As the old proverb says, a lie will go ’round the world while the truth pulls its boots on.

But what have those who are actually responsible for public safety said about fracking? Dimock, Penn., and Pavillion, Wyo., have been under the fracking microscope for years and are good indicators.

Residents in Dimock reported dirty water that was famously ignitable at times. But both state regulators and the EPA said claims relating those problems to fracking were unfounded, and the water posed “no immediate health concerns.”

My humble abode is also over an aquifer that gets cloudy as melted snow enters the sandstone structure. It looks awful but is perfectly drinkable. We deal with it. And I can remember stories as a kid in northeast Montana of burning stock ponds as naturally occurring methane bubbled to the surface. It should come as no shock that methane gets into water wells in areas where there are also gas wells. That’s where the gas is. Relating the two is a common but dangerous trick that tries to confuse coincidence and causation. It’s just like my being cranky on days that end in “Y” doesn’t necessarily mean the letter “Y” makes me cranky.

In the Wyoming case, the EPA came out with a 121-page draft report claiming that fracking contaminated ground water. But the report has not yet been peer reviewed and appears to leave some significant questions. It tested wells where hydrocarbons were already present, and that were far deeper than drinking water wells. Potential contamination could have come from “legacy pits,” or even the testing process itself. And it ignored the fact that organic chemicals were present in local water supplies long before fracking was employed. In short, the jury is still out on this one.

A final report on fracking’s impact on drinking water is due later this year. But it’s likely to be anticlimactic. Fracking solutions are typically over 99 percent water and sand. If you’re worried about the remaining 1 percent, you can look up individual well ingredients yourself at fracfocus.org.

Fossil fuels foes

So why all the fuss if the data is not all in, and what data there is proves no harm? It’s a fuss because for the zealots, this argument is about fossil fuels and not fracking. Just like the Keystone pipeline, coal dust, megaloads, and so many other battles, this is about shutting down the fossil fuel industry, and facts are the first casualty in what is essentially a highly coordinated, well-financed public relations campaign.

It’s also counterproductive. Cleaner, cheaper natural gas is rapidly replacing coal in the nation’s energy grid, already accounting for about 25 percent of power production. That would not be possible without fracking. If you care about global warming and affordable electricity, you should be a fracking fan.

And finally, fracking is good for Montana. It brings in jobs, prosperity, and tax revenues. The economic benefits are measurable and immediate. And the smiling faces of mothers and fathers in Eastern Montana watching their kids put on their boots and go to high paying jobs close to home are a welcome change.

*SOURCE:  Guest Opinion www.billingsgazette.com April 14,2012, Carl Graham is CEO of Montana Policy Institute, a nonprofit policy research center in Bozeman

In a world dependent on laptop computers, tech-tablets, and smart phones information is king.

Yet, one of the simplest lessons of history is that not all kings are good and not all information is objective or accurate. Furthermore, in an age where information travels at click speed it isn’t always about being the best; most of the time in fact, it’s all about being first. Even Winston Churchill more than half a century ago recognized that “A lie gets halfway around the world before the truth has a chance to get its pants on”, and that was before the advent of the internet.

The Bible in Ephesians 6:14 talks about girding your waist with truth. I guess you could say that; today here at Synergy Station we are committed to putting our pants on one truth at a time, even if it takes awhile to do so. This blog series is an effort to do just that, it may not always look very pretty and it may not always be pleasingly packaged, but regardless of consequence it stand in all its glory as plain unadulterated truth. At times we may shake it up, but we definitely won’t make it up and we certainly won’t ever, ever, dress it up. Instead, we will simply present it as is, politically incorrect or otherwise; we will always, only provide the simple, hard facts and plain naked truth.

That does not mean we will never post something in error that is later proven false. If you see something that you know to be factually incorrect let us know. If you can provide us with irrefutable and documented support for your position we will gladly post your position and revaluate our own. We are more than willing to admit a mistake, but we will not be drawn into a discussion where emotions are substituted for facts and ideology for reality. At Synergy Station we believe that truth supersedes all other argument. As a result we only post that which can be supported, documented, and verified by others.

My hope for this series is that it will:

            1. Serve the public as a legitimate source of factual and useful information.

            2. Become a voice of reason in a chorus of ideology and emotion

            3. Offer a perspective of resource stewardship based on sound science

Like Galileo, ”I do not feel obliged to believe, that the same God who has endowed us with sense, reason and intellect, has intended us to forgo their use”.

This blog is intended to be fun and lighthearted, but at the same time it is designed as a wakeup call to the truth, one leg at a time.

Now back to the title – Vampires Suck and Wind Blows

It is hard to argue with the “fact” that vampires suck. Nonetheless, in keeping with our standards I looked it up in a reputable source just in case there were any questions. Here is what I found: According to the Warwick Centre for Applied Linguistics: a vampire is a dead human that comes to life only when the sun goes down and sucks the blood of other people. The most famous of all vampires clearly is the character known as Count Dracula from the legendary realm of Transylvania in the renowned stories of Bram Stoker.

When it comes to wind, the following statement is unarguable and irrefutable: wind blows!

When it comes to wind energy well, it also blows!

What is my basis for such a strong and contentious statement? Simply put, I am being taught by our four year old that once upon a time we all put a “Y” in the word believe. Yet all too often in our youth and early adulthood we are taught by parents, teachers and other adults, not to question, but accept what we are told. Put another way, don’t investigate ‘it’ for yourself, simply believe. Somehow the word ‘why’ drops from our vocabulary by the time we enter second grade. You don’t believe me? When was the last time you challenged a strong personal belief with a childlike, ‘why’?  And I am not just talking about an afternoon of meditation. When was the last time you honestly said I am going to set aside everything I know about this belief and simply ask ‘why’, regardless of the outcome or consequences? (After all, that is what my four year old does.) It is only when we lay down all claims to a belief and examine it there on the ground in front of us with no ownership, no emotional attachment and no predisposition that we can truly claim to be open minded about a belief. For that and that alone is the definition of being open minded.

In the next instalment I will get into detail about the truth of wind power, but for now let me leave you with this test for judging alternative solutions to any type of problem. The entire test is three basic questions that if answered honestly will always lead to sound decisions.

1. Is the option technically sound? – Under scientific scrutiny will it reduce a negative or   increase a positive?
2. Is it economically viable? Do the numbers add up when measured from conception to full implementation including all aspects and  every phase, and counting both direct and indirect costs?
3. Is it sustainable? This is the same question as number two above only instead of money insert the word impact throughout the options entire life cycle including the production and dismantling of parts.

 Until next time remember, “When men give up the privilege of thinking, the last shadow of liberty leaves the horizon”, Thomas Paine

“America is Addicted to Oil.” The phrase has been repeated so often it’s accepted as a fact, but is it? Or, is the word “addiction” simply distracting us from what should be obvious to everyone? Like it or not, oil is the lifeblood of the modern world. It spoils us in more ways than we can comprehend. Yet, we still believe oil is “bad,” “is destroying the environment” and that companies that produce oil are “greedy gougers making record profits.” That’s what we have been told, but is it true?

With few people willing to take a realistic, sobering look at our oil use, the idea of “spOILed” was born. After years of study and analysis, filmmaker Mark Mathis became alarmed at the deception taking place in the U.S. and around the world. Much of the deception was/is intentional and systematic. Varied groups, all pursing their own individual interests, have misled us. The end result is that most people are not only deceived about their oil use, but also completely unaware of what is likely to be the biggest problem ever faced by humanity. Where are our “leaders” on this issue? Instead of giving people the truth about limited options in lessening our oil consumption and paving the way toward real solutions, politicians have actually made the problem worse.

Prepare to be shocked, angered and more than a little concerned. The road sign for our future: “Rough Road Ahead.” Visit spoiledthemovie.com to learn more.

Quicklink to Screening locations & times.

Can’t make a viewing ?  Order the DVD ! 

With the rapid industrialization and expanding populations of emerging nations like China and India, the world is now experiencing its greatest ever need for coal, oil and natural gas. All of this  places an increasing burden not only on on global energy resources but on the environment as well.  In a May 2009 report from the US Energy Information Administration (EIA), a governmental source providing official energy statistics, the total world consumption of marketed energy will increase by 44% over the 25 year period evaluated (2006 to 2030).

China and India will most likely continue to be the fastest-growing global economies based on their burgeoning populations.  As a result, they will be the largest consumers of energy for several generations. Since 1990, energy consumption as a share of total world energy use has increased significantly in both countries. In 1990, China and India together accounted for about 10% of the world’s total energy consumption.  By 2006 their combined share was 19%.  With continued robust economic growth, their combined energy consumption is projected to grow to 28% of the world’s energy consumption in 2030. In contrast, the United States’ share of total world energy consumption will drop from 21% (2006) to @ 17%  by 2030, according to the EIA.

While the US is often viewed as the BIG PIG when it comes to energy consumption, robust growth in Asia will increase its energy demand by 104% from 2006 to 2030. Part of this increased demand will be met by China through its ten year energy development plan which includes the construction of a new coal fired power plant every week.  In reality the nation has little choice as it continues in its quest to satisfy the demand for energy as a direct result of its population urbanization and societal industrialization.  Other global regions projected to substantially increase their industrial capacities and  thereby their demand for energy include  the Middle East, Central and South America (by 60%) and Africa (by 50%).

Although oil is and will continue to be the predominate fuel, natural gas will come to play a more significant role in the generation of electricity worldwide. This energy source is more efficient, cost effective and emits less carbon in the consumption cycle than other fossil fuels. The EIA sees total natural gas consumption increasing by an average of 1.6% per year which will mean growing from a usage total 104 trillion cubic feet in 2006 to 153 trillion cubic feet in 2030. This increase will be further fueled by continued up swing in world oil prices.  To bring this all a little closer to home here in Billings, MT….It’s estimated that 20 new power generation plants fueled by natural gas, are slated to be built in eastern Montana and eastern North Dakota over the next few years. these plants will be powered by the natural gas currently being burned off on Bakken wells in the Williston Basin area.

According to the EIA, the combination of natural gas and coal account for just over 60% of total world electricity generation. These two fuel sources will continue to be the world’s most important components of electrical generation with an increase to 64% of global supply by the year 2030, according to the EIA.  While Asia and parts of Europe have substantial coal reserves (primarily in Mongolia and Russia), there is a general lack of infrastructure to support the harvest of these vast natural resources. Thus China and Japan are beginning to turn the power of their purse strings towards coal sourced from Montana and Wyoming with a  tremendous willingness to pay premium prices for this Treasure State fuel source.

Following these 4 simple steps to add YouTube videos to your marketing efforts can make a big difference in your bottom line.

Do you ever think that what you’re doing is boring?  That day after day you’re doing the same thing, over and over?  Or that the job you thought might be so interesting when you were in school isn’t that much different than anyone else’s?

Well, with all due respect, you’re wrong.  At least, from another person’s perspective.  What you do, how you do it, what you think about it, what you’ve learned from it—these are all things that other people wonder about.  Whether your company drills for oil, welds pipe, mines coal, builds power plants or anything else, there are a lot of folks (and potential customers) out there who want to know more about it.

That’s where video can play a huge part in your marketing efforts.  Through them, you can tell your story, share your insights and promote what sets you apart from other companies within the energy development industry and its many related fields.

According to YouTube marketing expert Greg Jarboe, YouTube.com gets 800 million unique visitors a month worldwide.   Many of those viewers are watching content produced by amateurs on topics ranging from gaming hints and how to use various online tools to tax information, investing in the stock market or why you should attend specific conferences or tradeshows.

From a marketing perspective, these videos don’t just entertain or share information; they provide insight into the person featured and underscore why someone might want to do business with them.   So what steps do you need to take to use YouTube to market your energy-related company?

1. Start with what you’ve got.  You don’t need a film crew or a thousand dollar camera.  If you have an iPhone and a laptop, you have the tools you need to begin.  Basic video editing software like iMovie can help you create, edit and title your videos.
2. Decide what you want to say.  To have content watched and shared, it needs to inform, educate or entertain.  Want to use your video as an HR tool?  Tell (and show) why they’d want to work for you.  Offering a new service?  Talk about it—and make sure to underscore WHY it makes a difference to your target customers.
3. Optimize your video when you post it.  YouTube has free tools you can use to search for keywords that will help your video be found.  Putting those keywords in your title, description and tags will boost optimization.   Here’s a video of Jarboe talking about how to do just that.
4. Share it.  Get it out through your website, blog, Facebook and Twitter accounts and pretty much any other way you can think of.  The more eyes you get on it, the more changes you have to share your message.

Following these 4 simple steps to add YouTube videos to your marketing efforts can make a big difference in your bottom line.  So…are you ready for your close up?

Check out “4 Tips to Improve Your Business Videos” from the team at Billings, Montana-based Align Video.

When I hear the over used and frequently abused term “domestic energy policy”, I’m reminded of an old Dennis Miller stand up line from the early 1990′s, “Who drew a chalk outline around common sense?”  For the 21st century, the Miller line should be adapted to: “who drew a chalk outline around the Bakken, the Marcellus, and the Utica”?

All three  represent our country’s unprecedented opportunity to tap substantial domestic reserves of oil and natural gas. All three bring out polarizing controversy on the subject of hydraulic fracturing (fracking) whether you are on main street, Wall Street, or on the Washington beltway.  All three represent a growing divide in the 2012 presidential election campaign.  What all three should represent is a Trifecta when it comes to creating energy self sufficiency in this country.

In a country rife with unemployment, a growing federal deficit, diminishing value of the dollar, and an unfavorable balance of trade we should not let an opportunity of this magnitude go untapped or under developed.   Yet, the Obama administration continues to do little to leverage these vast natural resources virtually under our feet.  Instead, President Obama, the Environmental Protection Agency, and congressional allies have pulled out all the stops to impede exploration for and development of current, viable sources of energy in this country:

• Veto of the Keystone XL pipeline
• Moratorium of offshore drilling – Gulf of Mexico
• Dumping millions down the Solyndra black hole
• Moratorium on hydraulic fracturing in New York

…and let’s not forget the latest from the anti-carbon biased Obama camp, “The Seaweed Doctrine”

“We’re making new investments in the development of gasoline, diesel, and jet fuel that’s actually made from a plant-like substance, algae – you’ve got a bunch of algae out here. If we can figure out how to make energy out of that, we’ll be doing alright. Believe it or not, we could replace up to 17 percent of the oil we import for transportation with this fuel that we can grow right here in America.“ ~ President Barack Obama at the University of Miami

Seaweed  – really !  In a country where we are facing $5.00 plus per gallon for gas and our next “lack of a national energy plan” is algae ?  The process, while being developed, is decades from being deliverable.  While algae produces 300 times more oil per acre than conventional crops it is not an option for today.

In spite of the job growth, waiting to explode with a consistent federal endorsement of and backing for vigorous production wherever oil and natural gas are found in the country, we get blow back or bunny trail ideas along the beach; getting seaweed stuck between our toes.  Development of today’s natural energy sources seems like a no brainer and basic common sense to some of us, but then so does the vision of a realistic, achievable domestic energy policy.

Our lives are defined by opportunities, even the ones we miss.  Let’s not miss this one…or in this case, these three: the Bakken, the Marcellus, and the Utica !  Let’s develop the opportunity for the present and leverage the vision for our future.

There are a few things to be aware of as we face our change events. They all have to do with pace.

Your Living Pace:

Do you get home after a long day and find yourself unable to sit down? Does your significant other comment on your inability to stop moving? Have you asked yourself why you can’t stop? Or do you come home and plant yourself on the couch never to move until everyone else has gone to bed? Are you lethargic? Are you late when you could have been on time?

All of these are signs that you have stored or ignored your feelings about the ongoing change and can be measured in other “pace” categories as well. For example, your eating pace, your speaking pace, your “take on a new challenge” pace; all of these are affected by your response to the change. And now that I have your are aware — you can do something about it. Take some time this week and make some personal observations on the pace of your life. Pay attention to how much Tylenol or Advil you take in a day or week. Watch for that chronic pain that seems to kick in at the same time every day (or worse, every time you see “that guy”). It will tell you a lot about where you are and create some urgency for you to make some adjustments in your life!

Be sure to connect with Russ via his Dream Big Consulting Synergy Station Directory listing or his website for other content.

1. Know what you own!

While it may seem simplistic, this is an obvious issue that many overlook. Mineral title can often become complex and convoluted over multiple generations.  Knowing your mineral ownership and having the documentation to prove it is your primary defense against potential problems related to getting paid properly for any mineral production that may occur.

2. Stay on top of taxes

A common mistake mineral rights owners make is failing to account for taxes. In many states, producing minerals are taxed at the county level with an ad valorem (property) tax. Be sure to know your tax liability and keep current on your obligations. In some areas of the country, government entities have been known to foreclose on mineral owners as a result of delinquent taxes. Also, don’t forget the income taxes that will be due at the federal and possibly state levels. Additional information can be found in this article on Royalty Taxes.

3. Understand the oil and gas production process

Too many owners lack a basic understanding of what it takes to develop oil and gas. Take time to become familiar with the production and marketing processes. Oil and Gas Production in Nontechnical Language provides a good overview of the process.  Knowing some of the lingo and understanding the basics of the industry can go a long way in negotiating a lease. Visit the MineralWeb oil and gas glossary for definitions of common terms.

4. Negotiate a quality (and reasonable) lease

If you’re fortunate to be approached about leasing your minerals, it only makes sense to negotiate the best deal possible. Often mineral owners focus too much on the lease bonus amount, missing other important elements of a well rounded lease. The key to maximizing your mineral assets is focusing on the terms of the oil and gas lease, the royalty percentages, and the lease bonus. Remember, there are no “standard” leases. See the short article on Common Oil & Gas Lease Mistakes for help with this key part of mineral ownership.

5. Use the Internet as a resource

The Internet is full of useful sites specifically designed for oil and gas mineral owners. For instance, you can find out about individual well production by visiting How to Verify Your Oil and Gas Production Volumes. Another great resource for in-depth coverage of mineral rights related issues is Geology.com.  MineralRightsForum.com is a leading national forum for oil and gas mineral rights owners. The site features a lively forum where you can ask questions about anything related to mineral rights.

 6. Keep past records of your royalty statements

Once you receive royalty checks from production, it’s a good idea to save these records. This will help you when filing taxes, recording past production, and will even help you value the property should you desire to sell your mineral rights.  If you have substantial interests, using a spreadsheet or online management software may be for you.

 7. Stay informed of current activity in your area

Mineral owners will benefit from maintaining knowledge of drilling operations.  Timely information is key when negotiating lease terms. The websites of the various state oil and gas regulatory agencies often provide data on drilling permits, along with other informative data.

 8. Plan for the next generation

Preserve the value of your mineral rights by minimizing further fragmentation of interests to multiple heirs. Seek to pass along whole mineral tracts instead of sub-dividing them further.  One alternative is to pass the mineral rights on to a child who is financially savvy or has a background in real estate, while passing other children different assets.

9. Be “findable”

More often than not, oil companies seeking mineral owners will know who to contact through their search of the county property records. Make sure you are reasonably locatable. Are their differing variations of your name in the public record? Has there been divorce or marriage that affects your name? Are you known everywhere as Bill, but in the record as William? Have you married several times? You get the point. Consider whether a reasonably diligent person could locate you through the public record.

10. Visit MineralWeb.com for further details on mineral rights

MineralWeb.com brings news and information on mineral rights. Our site is regularly updated to bring you insight into the world of oil and gas leasing and mineral rights news. Call us at 713-893-4476 during normal business hours or email us at admin@mineralweb.com

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About the Author

Kenneth DuBose is the past President of Cheyenne Minerals Inc., an independent oil and gas company operating in Texas, Oklahoma, and Mississippi. He began his energy industry career with ARCO Oil & Gas Company, performing oil & gas reservoir studies.  As natural gas deregulation approached the industry in the late 80’s, Mr. DuBose directed development of natural gas storage projects along the U.S. Gulf Coast with Tejas Power Corp. He was a founding member of U.S. Minerals, (acquired by Novistar, a unit of Torch Energy in 1999) a provider of internet based education for America’s oil & gas royalty owners.  Mr. DuBose holds a Bachelor of Science in Petroleum Engineering from Mississippi State University, later pursuing graduate studies in business at Baylor University. Mr. DuBose has served on various industry steering committees, nonprofit boards, and is an active member of the Society of Petroleum Engineers, the National Association of Royalty Owners, the American Association of Professional Landmen, as well as being a Registered Investment Advisor. He is currently the principal of http://www.mineralweb.com/ a website that offers insight for mineral rights owners.

Legal

The material contained herein is not legal advice and is provided “as is” and without warranties of any kind either express or implied. The author does not warrant or make any representations regarding the use or the results of the use of the content in terms of their correctness, accuracy, reliability, or otherwise. No content or other material presented herein is intended as legal advice. Nothing contained herein should be construed as legal advice. We recommend that you seek qualified legal counsel on matters which you consider important to you. To the fullest extent permissible pursuant to applicable law, the author disclaims all warranties, express or implied, including, but not limited to implied warranties of merchantability, fitness for a particular purpose and non-infringement. The author does not warrant the accuracy, completeness or usefulness of any information contained herein. Under no circumstances, including, but not limited to, negligence, shall the author be liable for any special or consequential damages that result from the use of any material contained herein, even if the author or its representative has been advised of the possibility of such damages.

* This articles was licensed under the Creative Commons and the author, Kenneth DuBose is the inspiration and creation for the above work product solely.

We live in a time where there is a lot of change.  In fact, there is more change going on right now than there has been in the last several thousand years combined.  We also need to recognize the speed of change.  Things are moving fast.  If your phone is like mine, you can’t go one day without some of your apps updating and let’s not talk about the massive volume of changing information that comes to us in wave after wave after wave – not just in one day but many times throughout the day.  We have a lot on our plate.

A Significant Emotional Event (S.E.E.) is a change event that was unplanned or that we didn’t ask for.  They come in two categories – personal and professional.  They can be positive or negative and they can impact us before we are even aware.  Moving offices, changing jobs, promotions, extra duties, and new responsibilities are examples of professional S.E.E.s.  The birth of a child, death of a loved one, divorce, marriage, kids leaving home (and coming back) are examples of personal S.E.E.s.

Here is some mixed news for you to consider.  It takes at least 18 months to work through a S.E.E.  No Exceptions.  You might be thinking that you don’t have time for that and you are right.  However, if you try to rush through a S.E.E. and finish it off in 3 weeks – don’t worry – it will be waiting for you when you least expect it.  Also, you might be thinking that you may have a lot of S.E.E.s going on at this moment.  You are correct!  Most adults have between 6 and 8 S.E.E.s going on at any one time.  When you finish one another will be waiting for your attention.  It’s kind of like a broken wrist.  Let’s say you break your arm, your good arm, and you have a tennis tournament tomorrow.  You tell the doctor to hurry it up – make it better so you can play in the tournament.  She will laugh you right out of her office!  The doctor will put a cast on your arm and tell you that the purpose is to protect your bones and give them the best chance to heal properly over the next several weeks.

The techniques we discuss in this and following articles are like the doctor and the cast.  They are designed to protect you as you work through change and transition and give you the best opportunity to move forward as the S.E.E. ends.

There are five predictable stages that a person will move through when dealing with a major change event.

1. Shock

2. Anger

3. Bargain

4. Depression

5. Acceptance

Psychologists used to think that you would move through the five stages in an orderly and predictable manner over the 18 month timeframe.  That is not true today.  Just try driving home from work.  You can experience all five stages in a few short moments!

I look forward to visiting with you in the coming days, weeks, and months.  We have a lot to work through.  Check back regularly as we form the “cast” around your Significant Emotional Events.  We can help them heal and be as strong as possible to face future challenges and strains.

Be sure to connect with Russ via his Dream Big Consulting Synergy Station Directory listing or his website for other content.

Every weekday night David Letterman delivers his signature series “The Top 10”. Some nights are funnier than others; as are the numbered items since they each come from a different vantage point as “The Top 10” theme is spoofed. Recently Forbes announced it’s Top 10 – “America’s Fastest Growing Small Towns”. The criteria Forbes used in determining this list is based upon census data which was used to calculate the growth in population between 2007 and 2010 for every MSA (Metropolitan and Micropolitan Statistical Area) with fewer than 100,000 people. It’s no small surprise that Williston, North Dakota made this list, albeit No. 6. With expanded oil exploring, drilling, and production in the Bakken Shale Formation, folks are “Flockin’ to the Bakken” in record numbers. Overall, Williston, the Bakken epicenter, saw a 14.6% growth in population to 22,398. Unemployment remains virtually non-existent (below .9%) and median income is $55,396.

If you are in Watford City, North Dakota, just 40 minutes (depending on the truck traffic) south of Williston you are probably scratching your head and thinking, “Wait a minute, we grew from a community of @ 1,500 to a nightmare of @ 6,000 in the same time frame”! Setting aside all North Dakotan jokes here, even we in Montana can do the math…that’s a growth rate of….ummmmm….well, it’s more than 14.6%.

Forbes readily admits that their process in determining the Top 10 is flawed in that truly small towns in America are excluded from this ranking as MSAs are required to have at least a population of 10,000. Given the relatively rural nature of towns in western North Dakota, most communities impacted by the Bakken energy wave weren’t even considered.

“If you don’t know what you’re doing, you can be sure that someone else does”, is a quaint, old small town saying that usually gives us a chuckle. However, it may be more than just a quaint, old saying! The Williston Herald, Williston’s local newspaper recently conducted a nonscientific survey whereby they posed the question to their local readership:

“What grade would you give local leaders on how they have managed Williston’s growth in the past four years?”

A They have done a great job.   8%             

B They have done an adequate job.  9%

C They have done OK, but could have done it much better.   21%

D They have made many mistakes, and we are all in trouble because of it.  26%

F They have failed miserably, and need to be replaced.  35%

OK, before we all rush to grab our calculators and determine this doesn’t total 100%, the lost 1% is due to rounding.

Are the community stakeholders saying that the local leadership doesn’t know what they are doing and this survey is reflective of that sentiment? Or is the town simply growing so fast that normalcy is out of the question? To be certain these situations are often fraught with a lack of communication, isolation of community leadership, and an inescapable feeling of not knowing what the blank is going on. As Williston leadership reacts or proactively responds to this energy tsunami, there may appear to be a real lack of consensus among the local populace. Unfortunately these feelings all of which are part of feeling out of control, can lead to the collective misgivings and apprehension that Aaron Levenstein was right when he said, “Statistics are like a bikini. What they reveal is suggestive, but what they conceal is vital.”

If we are to truly and effectively leverage this huge economic opportunity for our communities, we need to get beyond announcing the misgivings and collective fears. Almost every day the Williston Wire and the mainstream media promote great and wonderful stats about the energy activity in North Dakota. Yet, at the same time a day doesn’t go buy here at Synergy Station that we don’t receive a call or an email from someone in the Bakken community who is at the end of their rope, because they can’t take it anymore. They want some normalcy, some predictability, some calm in the middle of this storm. Though it may be difficult if we work together I for one believe we can bring a bit of much desire respite without giving up on the opportunity. If we all choose not to focus on the hype and hoopla we will be in a position to clearly see the facts that matter most. Then we sort and filter down the noise and begin working “on the problem” and not “the symptoms”. Let’s look beyond the numbers, the stats and determine what they conceal – it is vital to our success.

I think most of us realize that oil exploration and drilling is an extremely hazardous profession.  But, the risks don’t end there.  This video was taken by an oil field worker on his day off near the Montana / North Dakota border (near Fairview) at @ 11:00 am on Sunday, February 12, 2012. Although you can’t see it in the video there were three storage tanks that were ripped open, the wellhead had detonated (according to the first responders), and a tanker truck parked next to the storage units was a ball of molten steel.  Thankfully, no one was injured or killed.

If more details become available, we’ll update this post.  LKM

The Pack is Back !

With 16 seconds left in the game and down by 3 points, the Green Bay Packers called their final time-out. It was 3rd and goal on the Dallas 2 foot line. In the huddle, with the game on the line, Quarterback Bart Starr asked Kramer whether he could get enough traction on the icy turf for a wedge play and Kramer responded with an unequivocal yes.   Starr came over to Lombardi on the sidelines to discuss the last play and told him he wanted to run a 31 wedge, quarterback keeper.  Lombardi told Starr to ‘Run it! And let’s get the hell out of here!’ Starr returned to the huddle and called 31 wedge, 15. At the snap of the ball, Kramer blocked Jethro Pugh low and Ken Bowman hit Pugh high as Starr followed them into the end zone for the Packer lead and eventual victory.”  (Source:  Wikipedia).

This was one of the final plays in the 1967 NFL Championship Game affectionately known as the “Ice Bowl” because of the -13°F game time temperature.  It was Landry versus Lombardi and this play will replay in my mind forever.  It was the first time we had ever watched football on a color TV, but more importantly it was the first time I ever heard my father say, “The Pack is Back” !

So what does this nostalgic trip through football reel highlights have in common with the Bakken oil play?   More than I initially thought.  If you’re a true “cheese head” fan you’ve drunk the Kool-Aid regardless of the win – loss record, season after season.  But, for the rest of us who have difficulty getting rallied up for yet another 4th quarter let down…well, we start to take the attitude “been there, done that, got the t shirts” and we move on.   

Billings, Sidney and Williston are all too familiar with previous oil booms.   Business owners and community leaders have the scars to prove it.   This would definitely explain the slow response to build up the necessary supporting infrastructure to support this boom; since a boom implies a bust.  I would venture to say, as are others, this is more than a typical boom.  It’s being “billed” as a “world class technology oil play” that is fueling oil exploration and production and the subsequent commercial / industrial infrastructure to bring that commodity to market.  This is not to say that this energy wave won’t be absent highs and lows.  It would be foolish to do so!

The roots of this oil boom (if we still want to call it that) began in Elm Coulee (Richland County, MT) over a decade ago (2000). It contracted some in 2008 with a dip in oil prices, but with continuous advances in exploration, sectional hydraulic fracturing, and horizontal drilling techniques the ability to harvest oil from thin layers of shale has become commercially viable on a very big scale.  Big scale, however, doesn’t necessarily mean “big oil”.  Although there are plenty of big players present in the Bakken, the majority of the exploring, drilling, developing, and well operation is done by independents.  It’s those 18,000+ independent, small companies (not all in the Bakken) that produce 54% of this country’s oil, 85% of our natural gas, and drill 94% of the wells.  It’s those individual companies that are bearing the risk to bring Bakken to market.  It’s those oil patch workers who are working long hours, day after day, in extreme weather conditions in an effort to realize their American dream for themselves and their families.

It seems fitting that as I started this piece with Vince Lombardi, I should conclude it by quoting him.  It’s that “individual commitment to a group effort; that is what makes a team work, a company work, a society work, a civilization work.”  We have an amazing opportunity here in Montana, to build something of immediate, but lasting value alongside our neighbor, North Dakota.  We have a decision to make.  One puts us in the driver seat; the other leaves us a passenger.  When I Monday morning quarter back this one, I want to be able to reflect on how we impacted the Bakken, not how the Bakken impacted us.  It’s time to “run the play” – oil is back !

As crude oil is removed from the ground, it is either transported to a refinery by pipeline, ship, or barge. Once at the refinery, different parts of the crude oil are separated into useable petroleum products. Crude oil is measured in barrels (bbls).

A 42-U.S. gallon barrel of crude oil translates to roughly 45 gallons of petroleum products. This gain from processing the crude oil is similar to what happens to a kernel of corn when it is popped. The popped corn is actually larger once heat is applied. The gain in oil is slightly more than 6%.

One barrel of crude oil, when refined, produces about 19 gallons of finished motor gasoline, and 10 gallons of diesel, as well as various other petroleum products. Most petroleum products are used to produce energy. For example, many people across the United States use propane to heat their homes.

Note: A 42-U.S. gallon barrel of crude oil yields about 45 gallons of petroleum products

Other products made from petroleum include:

• Ink
• Crayons
• Dishwashing liquids
• Deodorant
• Eyeglasses
• CDs and DVDs
• Tires
• Ammonia
• Heart valves

Source: U.S. Energy Information Administration “energy KIDS”

There is no doubt that America is a land of many cultures and languages.  In fact, we are often referred to as a “melting pot”, but…each industry has it’s own language and terminology – the oil & gas industry is no exception.  As we actively look for economic opportunities in the Bakken play with the players that are brining “Bakken to Market”, we need to look beyond the language we use on a day to day basis and venture deeper aka “learn the lingo”.

One of the best sources I’ve found to learn the lingo is provided by Schlumberger, “the world’s leading supplier of technology, integrated project management, and information solutions for customers working in the oil & gas industry”.  Schlumberger has developed an amazing, user friendly, free oil field glossary.  This company resource is noted for being an “evergreen, instant reference” offering special features such as:

• Comprehensive: definitions for major oilfield activities
• Accessible: definitions for both the technical generalist and the expert
• Accurate: definitions reviewed by technical experts
• Illustrated: high-quality, full-color photographs and illustrations clarify many definitions
• Thorough: citations of significant technical papers for further reading
• Versatile: streamlined navigation, enhanced search capability and key resource links
• Interactive: on-line capabilities allow for continual expansion and updating based on reader input.

The Schlumberger’s glossary contains over 4,500 entries, and is available from the Schlumberger website as an online resource.   Great if you want to hug your computer or laptop, have the uninterrupted time to access the information, and an Internet connection…..until Today !  As of December 22, 2011, the Schlumberger Oilfield Glossary is available as a mobile download via Apple’s iTunes for your iPhone, iPod touch, or iPad as a mobile app.  So, no more excuses I mean barriers…let’s learn our lingo on the go !

So what the heck is frac’ing anyway? For more than half a century America’s energy producers have relied upon hydraulic fracturing as a way to enhance well performance, minimize drilling, and recover otherwise inaccessible resources in domestic oil and natural gas production. The first commercial “frac job” occurred in 1948. By 1988, this innovative technique had been utilized nearly a million times and it’s estimated that roughly 90% of domestic wells in operation today have been frac’d. America’s oil & gas producers continue to applied this proven technique in innovative ways to unconventional formations, such as “tight” gas sands, shale deposits and coalbeds.

According to the American Petroleum Institute hydraulic fracturing now accounts for 30% of our domestic oil and natural gas. This technique has facilitated the extraction of more than 600 trillion cubic feet of natural gas and seven billion barrels of oil. The National Petroleum Council projects that 60% to 80% of all wells drilled domestically over the next 10 year will require fracturing to remain viable

So hydraulic fracturing is not new – it is simply (via horizontal drilling) being applied in a new way. Despite widespread application and a longstanding record of safety – few are aware of the basic facts. In a series of upcoming blogs Synergy Station will reflect on the history of hydraulic fracturing, discuss the economic benefits, look at the overall safety record of the process, and discuss the current regulatory environment.

Extended winter weather during the first part of 2011, along with spring flooding left oil drillers behind scheduled during the first part of the year.  But, with “favorable fall weather conditions” and “strong crude prices” ($100 per barrel this week versus $75 per barrel in November 2010) drilling production in the state’s oil patch has exceeded expectations according to Lynn Helms, director of the North Dakota Department of Mineral Resources.  North Dakota’s Industrial Commission reflects crude production in September of 464,122 bopd driving crude production to approximately 105.8 million barrels for the month.  State statistics generally lag two months, but Ness concludes that with the current drilling activity, North Dakota has already surpassed 2010 numbers during the month of October.

Daily rig count, the prime barometer for measuring new oil and gas activity, only averaged 126 during 2010.  As of last week, a record number of 204 rigs were drilling in western North Dakota, nearly all focused on the Bakken and Three Forks oil shale formations.  Even at the high point of production in 1981, rig count only totalled 119 per day; a previous record.

By the end of 2010, North Dakota reported 6,008 wells capable of producing oil and gas within the state.  As of September 2011, the state has a record 6,071 producing oil wells alone, up 120 from August 2011, and nearly 1,000 more than a year ago.

In spite of these record numbers, a general lack of fracking crews in the North Dakota oil patch has hindered progress.  Currently 35 fracking crews operate in the state’s oil patch and it’s estimated that this number will grow to 45 crews by spring of 2012.  Getting the crude out of the shale formation is only one step in the process of bringing Bakken to market.  According to Justin Kringstad, director of the North Dakota Pipeline Authority, the daily takeaway capacity for North Dakota and eastern Montana is currently @ 773,000 barrels which is a combination of 438,000 by pipe and 335,000 by rail.

Although the North Dakota Petroleum Association estimates current rail capacity greater than 300,000 barrels per day, they project rail capacity to increase significantly by 2013 to almost  600,000 barrels per day (NDPA Newsletter June 2011, pg 2).  Moving crude by rail was common through the late 1800′s until John D. Rockefeller realized it would be more cost effective to transport oil by pipeline.   With major US oil refining centers located in Texas and Louisiana, and the cost of transporting oil by rail higher than by pipeline, there is a discount on Bakken oil prices when shipped by rail.

Wow, who would have (could have) guessed that the words of this song would be arguably more true today than they were, when they were first written. There is a slow train coming and is being driven on by an ever increasing worldwide demand for energy. But before we claim the sky is falling (due to more carbon being released into the atmosphere) let’s look at the facts. Let’s also keep in mind that here at ‘the station’ we present the issues and let the facts speak for themselves. That said the first two questions that must be asked are these; if there really is a slow train coming what is it, and why is it coming now?

The frightening reality is that Dylan had it right there is a train coming and its name is “energy”. What is even more frightening is that we are at a place in history where for the foreseeable future this train is not about to stop. The final part of this chilling truth is that without some major worldwide catastrophe we are not even able to slow it down. There are two simple factors that make this truth an irrefutable certainty. Both of these factors have been in operation since man’s first steps on this planet. They were true then they have held true throughout history even through today and will probably remain so into perpetuity. Simply put they are factors of growth.

The first of these factors is the growth of humanity it’s self. One fire could warm three or four men, while ten fires, were required to warm thirty or forty. Two horses could move a wagon; ten thousand horses a large city. All throughout history as the population of this planet increased so has the demand for energy. In essence the two variables of population growth and energy growth are positively and directly related. An increase in one will ‘fuel’ an increase in the other.

The second factor that most directly impacts the demand for energy is the growth in technology. There was a time when a single horse could be used to harvest enough food to supply both its own needs as well as those of its owner and the owner’s family.  Now machines capable of providing the workforce of hundreds of horse power are being used to do the same job. Yet these machines and all others remotely like them require fuel of a different kind. Whether it is powered by steam, wind, the sun, water, electricity, coal, or diesel fuel it really does not matter technology requires energy. It requires energy to produce it, use it, and even dispose of it. If it falls into the realm of technology it requires energy at some point (or most points) in its life cycle. Regardless of our desires to make it otherwise we cannot escape this truth. Technology needs energy even when what is being produced is energy efficient technology. The simple fact is; the more of it we produce the more energy will be required.  As the demand for technology increase so will the demand for energy as direct result of that technology.

As previously stated shy of a worldwide catastrophe that leads to the rapid and concurrent decrease in both of these factors there is a train coming, its name is ‘energy’, and it cannot and will not slow down. Though it cannot slow down it will inevitably speed up. Just this month it was announced that the world’s population had exceeded seven billion people; there is a slow train coming, coming just around the bend.

So what if I stop viewing my life through the rear view mirror of the choices I’ve made; make a paradigm shift and examine the decisions I will make from a forward thinking perspective – essentially start with the end in mind – the end game.  And, from that vantage point I craft my first blog.

If you’re like me, with more than a few miles on the chassis, you didn’t grow up in today’s techno jargon world of Facebook, LinkedIn, and Twitter.  As my adult children will attest, I still struggle to program the universal remote control!  I had to Google “blog” to gather that it was a web log.  Wow, wasn’t that clarifying!

But, after scratching more than just the surface of an initial Google search, I discovered that blogging is simply a tool that allows us to quickly and easily create and publish new content; it empowers us to contribute feedback, react to that content, and even more importantly to participate in that content.  It is dynamic – not stagnant.  It’s evolving, up to the moment, two way communications.  It allows us to educate one another via our diverse background and experiences.  It allows us to engage one another – to synergistically collaborate – to create community with a common purpose.  It is “word of mouth” at the speed of light.

Poster by Honorablemention CC

Social media – I finally get it !    Now that I’m equipped with this amazing tool I want to use it for everything.   I’m like a kid in a candy store with no parental supervision.  But, before I can run amok, a parent tape replays in my head, “Use the right tool for the right job” when seeking to solve a problem, overcome an obstacle, address a challenge, or effectively accomplish the task at hand.

There is little doubt, that social media is a game changer. If we had any doubts, Mark Zuckerberg as Time’s Man of the Year in 2010 should convince us.  It has changed how we communicate, how we collaborate, how we educate.  So why not use one game changer to impact another – let’s connect one disruptive process (social media) with another; the world class, technology oil play in the Bakken Shale Formation currently creating more economic opportunity in North Dakota and Montana than in recorded history due to horizontal drilling and hydraulic fracturing.

I now arrive at my why and why now.   If any situation needed word of mouth efficiency at the speed of light, it is the utter chaos that operates 24/7 in those communities impacted by the Bakken firestorm of activity.  How do you determine whether this is a boom or a bust….or the next big thing ?  How do you decide as a business owner if and when you should take advantage of this opportunity?  How do you, as someone looking for a job, know that you can handle the extreme weather and working conditions, the long hours, and the remote living conditions?

Okay – way too cerebral….How about something more basic – where do I live, sleep? Where do I do my laundry?  Where do I buy something…or for that matter anything? Where do I get my mail when I go from one man camp to the next?  What can I do in my down time?

Let’s use social media to provide these answers and more !  Synergy Station is actively looking for contributors to fill in the blanks in our collective blog to find solutions, overcome obstacles, address challenges, and effectively accomplish the tasks at hand.  Let’s carve out a superior economic future for all stakeholders during the process by clearly understanding the end game !

Below is a video produced by the Time Money Group to show a visual presentation of how many well spuds were started in 2010. A spud is the term used when drilling begins on a well. They show totals at the end of each quarter to give you an idea of how many wells were started during that period. The presentation was made with Google Earth.

If you want to get information on current spuds, you will find a list of current active drilling rigs from the North Dakota Oil and Gas Division. They also publish a confidential well list.