American Oil & Gas Reporter - December 2011 - 92

SpecialReport: Natural Gas White Papers
The governors are optimistic that their agreement will broaden the appeal for natural gas-powered school buses, pickups and vans. The Obama administration is stepping up to the plate as well. The industry is actively engaged with the General Services Administration and the White House to convert more federal fleets to natural gas. The administration also put forth a new federal fleet performance memorandum, giving industry the opportunity to demonstrate that natural gas vehicles are the most feasible solution to meeting mandated new alternative fuel requirements. Leading The Way The most persuasive rationale for expanding the role of natural gas in the transportation sector is to publicly demonstrate the cost-efficiencies and safety of natural gas by utilizing NGVs substantially in ANGA member companies’ own fleets and business operations. ANGA members have spent much of the past year looking at additional ways to accelerate conversions and replacements within their own organizations, and have continued to invest in refueling stations for their internal fleets as well as the public at large. While automakers have said that no technological breakthrough is needed to manufacture more NGVs, automakers understandably want to see demand driven by users within the industry, the states and the broader public to justify the necessary capital commitments to increase NGV production. ANGA member Chesapeake Energy Corp. announced last summer that it was committing at least $1 billion over the next decade–representing 1-2 percent of its annual drilling capital expenditures over that period–to stimulate market adoption of compressed natural gas, liquefied natural gas and gas-to-liquids fuels, including technology development and infrastructure construction. In addition, ANGA member companies such as Encana, Apache and Southwestern Energy are aggressively adopting NGV technology in their internal fleets and operations (see “Leading by Example, Independent Producers Chart Course for Natural Gas in Transportation Sector,” AOGR, May 2011). In early May, Southwestern Energy opened its first CNG station in Damascus, Ar. Located a short distance from Southwestern’s Damascus field office, its primary function is to serve its growing fleet of CNG-fueled
92 THE AMERICAN OIL & GAS REPORTER

vehicles, reducing related traffic emissions through the use of clean natural gas. Shale gas producers also are working to convert traditional diesel-powered drilling rigs to run on natural gas. For example, Encana was running 16 natural gas-powered rigs this summer (using both dual-fuel and dedicated natural gas engines) in its operating areas, and planned to have two additional gas-fired rigs in the field by year’s end (see “Encana Initiative Underscores Environmental, Economic Benefits of Powering Rigs on Natural Gas,” AOGR, August 2011). As an industry, we are heavily promoting NGVs to industry service providers. ANGA conducted a Natural Gas Drilling Summit last spring to educate service providers on the efficiency of natural gas-powered engines for off-road use in drilling rigs, pressure pumping and hydraulic fracturing. These service providers tend to have large fleets and some of them already are reducing operating costs and increasing environmental benefits by switching to natural gas. As one example, Heckmann Water Resources, a service company operating in the Haynesville Shale play area in Texas, is in the process of transitioning its fleet of trucks from traditional diesel vehicles to natural gas vehicles, making it the first major company in the exploration and production supply chain to transition to natural gas. The company placed an order for 200 liquefied natural gas trucks with Peterbilt Motors Co., marking the largest order by a U.S. customer to date. To supply its LNG fuel, Heckmann is partnering with Encana Natural Gas. This transition to LNG vehicles is expected to reduce Heckmann’s carbon footprint in the Haynesville Shale area by up to 30 percent and dramatically reduce fuel costs. The company will use the trucks to service its customers’ natural gas wells and provide water handling services in conjunction with its system of pipelines and disposal wells. Promoting NGV Production As consumers and businesses begin to take a serious interest in the procurement of NGVs, the automobile and heavy-fleet manufacturers will need to keep pace with demand. The industry is promoting the production of NGVs to the automobile industry in a number of ways. In October, ANGA served as host of a Heavy Duty

Fleet Symposium in Fort Worth. During the two-day symposium, we talked to heavy-duty truck manufacturers about the economic, environmental and operational benefits of converting to natural gas, and the advantages of manufacturing nextgeneration, heavy-duty, natural gas-powered engines. Attendees included Kenworth, Freightliner, Peterbilt and Volvo. Manufacturers heard case histories documenting successful experiences by service companies up and down the exploration, drilling and production supply chain, including large water hauling companies such as Heckmann, which have recognized the operating efficiencies associated with converting their fleets and have been among the earliest and most enthusiastic adopters of NGV technology. While our industry will continue to educate auto manufacturers on the expanding market for NGVs, they also are recognizing this opportunity independently. In October, General Motors announced that it will sell a CNG/bifuel pickup early in the fourth quarter of 2012 in response to commercial customers who want to more effectively manage fuel costs. The bifuel commercial trucks will be covered by GM’s three-year, 36,000-mile new vehicle limited warranty and five-year, 100,000-mile limited powertrain warranty and vehicle emissions warranty, meeting all Environmental Protection Agency and California Air Resources Board emission certification requirements. GM currently offers CNG-powered cargo vans, including the Chevrolet Express™ and GMC Savana™. Other manufacturers are stepping up. Westport Innovations Inc., a leader in natural gas engines, announced that its new natural gas-powered Westport WiNG™ power system will be available in the popular Ford F-250™ and F-350™ Super Duty pickup trucks, which also run on gasoline. The Ford trucks have undergone the same original equipment manufacturer testing for safety and durability required for all OEM products. Ford says the pickups will meet both EPA 2012 and CARB 2012 standards. As part of the product launch with Ford, Westport LD unveiled the WiNG system, an advanced, integrated bifuel system for passenger and commercial vehicles. The systems, developed at Westport’s facility in Plymouth, Mi., will be installed before trucks reach the dealerships. Because of increasingly stringent Cor-



Table of Contents for the Digital Edition of American Oil & Gas Reporter - December 2011

American Oil and Gas Reporter 12/11
Contents
Reports
Calendar
Oil & Gas Counts
State Legislative
Industry Digest
Tech Connections
Washington Watch
Keystone XL
Liaison Committee
Shale Gas Subcommittee
Endangered Species
Midstream Startups Emerging to Meet Booming Demand
Liquids Resource Plays Have Oil Production Rising Again
Organizers Anticipating Big Things for 2012 PBIOS
Cover Story
R&D Areas Key to Improving Fracturing
Natural Gas Offers Solutions as Transportation Fuel
Completion Design, Frac Modeling Optimize Eagle Ford Wells
Novel Drill-In Fluid Excels in Horizontal ERD Wells
Technologies Optimize Sand Control
Operators Must Manage Risk Before, During and After Drilling
OCS Access: BOEM Offers Business-as-Usual OCS Leasing Plan
Court Finds for Insurers in Gulf Spill Ruling
OIPA
Clean Air Act
IOGA NY
COGA
IPAA Annual
Louisiana
West Virginia
Pennsylvania
Texas
The American Well Servicing Directory, Winter 2011
Industry Focus
Classified Advertising
Advertisers Index
American Oil & Gas Reporter - December 2011 - American Oil and Gas Reporter 12/11
American Oil & Gas Reporter - December 2011 - Cover2
American Oil & Gas Reporter - December 2011 - Contents
American Oil & Gas Reporter - December 2011 - Reports
American Oil & Gas Reporter - December 2011 - 5
American Oil & Gas Reporter - December 2011 - 6
American Oil & Gas Reporter - December 2011 - 7
American Oil & Gas Reporter - December 2011 - Calendar
American Oil & Gas Reporter - December 2011 - 9
American Oil & Gas Reporter - December 2011 - 10
American Oil & Gas Reporter - December 2011 - 11
American Oil & Gas Reporter - December 2011 - Oil & Gas Counts
American Oil & Gas Reporter - December 2011 - 13
American Oil & Gas Reporter - December 2011 - Industry Digest
American Oil & Gas Reporter - December 2011 - 15
American Oil & Gas Reporter - December 2011 - 16
American Oil & Gas Reporter - December 2011 - 17
American Oil & Gas Reporter - December 2011 - 18
American Oil & Gas Reporter - December 2011 - 19
American Oil & Gas Reporter - December 2011 - 20
American Oil & Gas Reporter - December 2011 - 21
American Oil & Gas Reporter - December 2011 - 22
American Oil & Gas Reporter - December 2011 - 23
American Oil & Gas Reporter - December 2011 - 24
American Oil & Gas Reporter - December 2011 - 25
American Oil & Gas Reporter - December 2011 - 26
American Oil & Gas Reporter - December 2011 - 27
American Oil & Gas Reporter - December 2011 - 28
American Oil & Gas Reporter - December 2011 - Tech Connections
American Oil & Gas Reporter - December 2011 - 30
American Oil & Gas Reporter - December 2011 - Washington Watch
American Oil & Gas Reporter - December 2011 - Keystone XL
American Oil & Gas Reporter - December 2011 - 33
American Oil & Gas Reporter - December 2011 - Liaison Committee
American Oil & Gas Reporter - December 2011 - 35
American Oil & Gas Reporter - December 2011 - 36
American Oil & Gas Reporter - December 2011 - 37
American Oil & Gas Reporter - December 2011 - Shale Gas Subcommittee
American Oil & Gas Reporter - December 2011 - 39
American Oil & Gas Reporter - December 2011 - Endangered Species
American Oil & Gas Reporter - December 2011 - 41
American Oil & Gas Reporter - December 2011 - Midstream Startups Emerging to Meet Booming Demand
American Oil & Gas Reporter - December 2011 - 43
American Oil & Gas Reporter - December 2011 - 44
American Oil & Gas Reporter - December 2011 - 45
American Oil & Gas Reporter - December 2011 - 46
American Oil & Gas Reporter - December 2011 - 47
American Oil & Gas Reporter - December 2011 - 48
American Oil & Gas Reporter - December 2011 - 49
American Oil & Gas Reporter - December 2011 - 50
American Oil & Gas Reporter - December 2011 - 51
American Oil & Gas Reporter - December 2011 - 52
American Oil & Gas Reporter - December 2011 - 53
American Oil & Gas Reporter - December 2011 - 54
American Oil & Gas Reporter - December 2011 - 55
American Oil & Gas Reporter - December 2011 - 56
American Oil & Gas Reporter - December 2011 - 57
American Oil & Gas Reporter - December 2011 - Liquids Resource Plays Have Oil Production Rising Again
American Oil & Gas Reporter - December 2011 - 59
American Oil & Gas Reporter - December 2011 - 60
American Oil & Gas Reporter - December 2011 - 61
American Oil & Gas Reporter - December 2011 - 62
American Oil & Gas Reporter - December 2011 - 63
American Oil & Gas Reporter - December 2011 - 64
American Oil & Gas Reporter - December 2011 - 65
American Oil & Gas Reporter - December 2011 - 66
American Oil & Gas Reporter - December 2011 - 67
American Oil & Gas Reporter - December 2011 - 68
American Oil & Gas Reporter - December 2011 - 69
American Oil & Gas Reporter - December 2011 - 70
American Oil & Gas Reporter - December 2011 - 71
American Oil & Gas Reporter - December 2011 - 72
American Oil & Gas Reporter - December 2011 - Organizers Anticipating Big Things for 2012 PBIOS
American Oil & Gas Reporter - December 2011 - Cover Story
American Oil & Gas Reporter - December 2011 - 75
American Oil & Gas Reporter - December 2011 - 76
American Oil & Gas Reporter - December 2011 - 77
American Oil & Gas Reporter - December 2011 - 78
American Oil & Gas Reporter - December 2011 - 79
American Oil & Gas Reporter - December 2011 - 80
American Oil & Gas Reporter - December 2011 - 81
American Oil & Gas Reporter - December 2011 - 82
American Oil & Gas Reporter - December 2011 - R&D Areas Key to Improving Fracturing
American Oil & Gas Reporter - December 2011 - 84
American Oil & Gas Reporter - December 2011 - 85
American Oil & Gas Reporter - December 2011 - 86
American Oil & Gas Reporter - December 2011 - 87
American Oil & Gas Reporter - December 2011 - 88
American Oil & Gas Reporter - December 2011 - 89
American Oil & Gas Reporter - December 2011 - 90
American Oil & Gas Reporter - December 2011 - Natural Gas Offers Solutions as Transportation Fuel
American Oil & Gas Reporter - December 2011 - 92
American Oil & Gas Reporter - December 2011 - 93
American Oil & Gas Reporter - December 2011 - 94
American Oil & Gas Reporter - December 2011 - 95
American Oil & Gas Reporter - December 2011 - Completion Design, Frac Modeling Optimize Eagle Ford Wells
American Oil & Gas Reporter - December 2011 - 97
American Oil & Gas Reporter - December 2011 - 98
American Oil & Gas Reporter - December 2011 - 99
American Oil & Gas Reporter - December 2011 - 100
American Oil & Gas Reporter - December 2011 - 101
American Oil & Gas Reporter - December 2011 - 102
American Oil & Gas Reporter - December 2011 - 103
American Oil & Gas Reporter - December 2011 - 104
American Oil & Gas Reporter - December 2011 - 105
American Oil & Gas Reporter - December 2011 - 106
American Oil & Gas Reporter - December 2011 - 107
American Oil & Gas Reporter - December 2011 - 108
American Oil & Gas Reporter - December 2011 - 109
American Oil & Gas Reporter - December 2011 - 110
American Oil & Gas Reporter - December 2011 - Novel Drill-In Fluid Excels in Horizontal ERD Wells
American Oil & Gas Reporter - December 2011 - 112
American Oil & Gas Reporter - December 2011 - 113
American Oil & Gas Reporter - December 2011 - 114
American Oil & Gas Reporter - December 2011 - 115
American Oil & Gas Reporter - December 2011 - 116
American Oil & Gas Reporter - December 2011 - Technologies Optimize Sand Control
American Oil & Gas Reporter - December 2011 - 118
American Oil & Gas Reporter - December 2011 - 119
American Oil & Gas Reporter - December 2011 - 120
American Oil & Gas Reporter - December 2011 - 121
American Oil & Gas Reporter - December 2011 - Operators Must Manage Risk Before, During and After Drilling
American Oil & Gas Reporter - December 2011 - 123
American Oil & Gas Reporter - December 2011 - 124
American Oil & Gas Reporter - December 2011 - 125
American Oil & Gas Reporter - December 2011 - 126
American Oil & Gas Reporter - December 2011 - 127
American Oil & Gas Reporter - December 2011 - 128
American Oil & Gas Reporter - December 2011 - OCS Access: BOEM Offers Business-as-Usual OCS Leasing Plan
American Oil & Gas Reporter - December 2011 - Court Finds for Insurers in Gulf Spill Ruling
American Oil & Gas Reporter - December 2011 - 131
American Oil & Gas Reporter - December 2011 - 132
American Oil & Gas Reporter - December 2011 - OIPA
American Oil & Gas Reporter - December 2011 - 134
American Oil & Gas Reporter - December 2011 - 135
American Oil & Gas Reporter - December 2011 - Clean Air Act
American Oil & Gas Reporter - December 2011 - 137
American Oil & Gas Reporter - December 2011 - IOGA NY
American Oil & Gas Reporter - December 2011 - 139
American Oil & Gas Reporter - December 2011 - 140
American Oil & Gas Reporter - December 2011 - 141
American Oil & Gas Reporter - December 2011 - 142
American Oil & Gas Reporter - December 2011 - 143
American Oil & Gas Reporter - December 2011 - COGA
American Oil & Gas Reporter - December 2011 - 145
American Oil & Gas Reporter - December 2011 - 146
American Oil & Gas Reporter - December 2011 - IPAA Annual
American Oil & Gas Reporter - December 2011 - 148
American Oil & Gas Reporter - December 2011 - 149
American Oil & Gas Reporter - December 2011 - 150
American Oil & Gas Reporter - December 2011 - 151
American Oil & Gas Reporter - December 2011 - Louisiana
American Oil & Gas Reporter - December 2011 - 153
American Oil & Gas Reporter - December 2011 - 154
American Oil & Gas Reporter - December 2011 - 155
American Oil & Gas Reporter - December 2011 - West Virginia
American Oil & Gas Reporter - December 2011 - 157
American Oil & Gas Reporter - December 2011 - Pennsylvania
American Oil & Gas Reporter - December 2011 - Texas
American Oil & Gas Reporter - December 2011 - 160
American Oil & Gas Reporter - December 2011 - The American Well Servicing Directory, Winter 2011
American Oil & Gas Reporter - December 2011 - 162
American Oil & Gas Reporter - December 2011 - 163
American Oil & Gas Reporter - December 2011 - 164
American Oil & Gas Reporter - December 2011 - 165
American Oil & Gas Reporter - December 2011 - 166
American Oil & Gas Reporter - December 2011 - 167
American Oil & Gas Reporter - December 2011 - 168
American Oil & Gas Reporter - December 2011 - 169
American Oil & Gas Reporter - December 2011 - 170
American Oil & Gas Reporter - December 2011 - 171
American Oil & Gas Reporter - December 2011 - 172
American Oil & Gas Reporter - December 2011 - 173
American Oil & Gas Reporter - December 2011 - 174
American Oil & Gas Reporter - December 2011 - 175
American Oil & Gas Reporter - December 2011 - 176
American Oil & Gas Reporter - December 2011 - 177
American Oil & Gas Reporter - December 2011 - 178
American Oil & Gas Reporter - December 2011 - 179
American Oil & Gas Reporter - December 2011 - 180
American Oil & Gas Reporter - December 2011 - 181
American Oil & Gas Reporter - December 2011 - 182
American Oil & Gas Reporter - December 2011 - 183
American Oil & Gas Reporter - December 2011 - 184
American Oil & Gas Reporter - December 2011 - 185
American Oil & Gas Reporter - December 2011 - Industry Focus
American Oil & Gas Reporter - December 2011 - 187
American Oil & Gas Reporter - December 2011 - 188
American Oil & Gas Reporter - December 2011 - 189
American Oil & Gas Reporter - December 2011 - 190
American Oil & Gas Reporter - December 2011 - 191
American Oil & Gas Reporter - December 2011 - Classified Advertising
American Oil & Gas Reporter - December 2011 - 193
American Oil & Gas Reporter - December 2011 - Advertisers Index
American Oil & Gas Reporter - December 2011 - Cover3
American Oil & Gas Reporter - December 2011 - Cover4
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