American Oil and Gas Reporter - June 2012 - 164

ConventionCoverage: Texas Alliance of Energy Producers

Correct Path Would Let U.S. Say Goodbye To OPEC
By Dan Holder WICHITA FALLS, TX.–American drivers suffer from high gasoline prices because the politics of energy trump its reality, John Hofmeister, former president of Shell Oil Co., told the Texas Alliance of Energy Producers. The keynote luncheon speaker at the Alliance’s annual convention, held April 24-25 at the Multi-Purpose Events Center in Wichita Falls, Hofmeister said the reason for high gasoline prices was simple math: Steady world oil production, minus natural field declines, cannot keep up with increasing energy demand. Oil companies have been producing 88 million barrels a day for several years, he said, with natural declines of as much as 8 MMbbl/d largely negating discoveries and expansions. In 2005, China consumed 5 MMbbl/d. In 2011, it needed twice as much oil, and by 2015 projections show Chinese demand tripling from 2005 levels, Hofmeister reported, adding India was likely to need an additional 3 MMbbl/d by 2015. Over the past 40 years, America has exported the risks of producing oil and natural gas, and the accompanying jobs and wealth, to other parts of the world, Hofmeister asserted. “By exporting all that risk, wealth, and jobs, we have become ever more dependent on imports,” he said. “In 2008, we used 20.0 MMbbl/d. The economic downturn hit and demand dropped to 18.5 MMbbl/d. With the reduction in demand of 6 percent yearover-year, why are prices going up? It’s simple: China is selling 20 million new vehicles a year.” Beijing sees energy security as a political necessity, Hofmeister said, and is taking steps to ensure its needs are met, whatever the price. Over the past four years, China has run a cash-for-oil program, signing multimillion dollar contracts providing loans in return for guaranteed oil deliveries to state-owned oil companies in Brazil, Venezuela, Russia and Kazakhstan, among other nations, he said. “These guaranteed oil deliveries will come at the expense of the global supply pool,” Hofmeister warned. “If we stay on the path we are on, if we do not have an energy policy that focuses on producing our domestic resources to fill our fuel tanks, we will be standing in gasoline lines by the middle of the decade while the Chinese are happily filling up, because they have the oil and we do not.” President Obama continues to allow the politics of energy to trump its reality, Hofmeister asserted again, following the path of every president since Nixon, as well as congressional leaders. Goodbye To OPEC Hofmeister said the United States had the potential to reform its transportation fuel production to enable it to meet the nation’s needs for the next 50 years. “One of the outcomes of this plan is to say goodbye to the Organization of Petroleum Exporting Countries,” he offered. “OPEC has taken more wealth out of this country by virtue of its pricing system and our political unwillingness to invest in America instead of exporting our investment dollars.” To meet the nation’s need for 20 MMbbl/d, Hofmeister recommended: • Return U.S. crude production output to the 1970s level of 10 MMbbl/d; • Convert the nation’s truck fleet to compressed natural gas, supplanting 2 MMbbl/d; • Employ flex-fuel engines in personal transportation that run on methanol made from natural gas, replacing 3 MMbbl/d of imported oil; • Continue increasing vehicle mileage standards, saving 2 MMbbl/d; and • Rely on Canada and Mexico for the imports needed while the first four steps improve U.S. economic conditions. “This five-point plan can deliver all the domestic fuel we need for transportation,” Hofmeister asserted. “We say to OPEC, ‘If you have a little problem with the Straits of Hormuz, figure it out. You are on your own.’” Domestic resources are adequate to increase domestic crude oil production by 40 percent and natural gas by 50 per-

John Hofmeister, former president of Shell Oil Co., tells the Texas Alliance of Energy Producers that the politics of energy trump its reality. The keynote luncheon speaker at the Alliance’s annual convention, held April 24-25 at the Multi-Purpose Events Center in Wichita Falls, Tx., said world oil production could not keep pace with increasing energy demand.

David Harbour says Texas and Alaska are the keys to the United States regaining its economic prosperity. Harbour, former chairman of the Alaska Regulatory Commission and commissioner emeritus of the National Association of Regulatory Utility Commissioners, was the breakfast keynote speaker at the annual convention of the Texas Alliance of Energy Producers.

164 THE AMERICAN OIL & GAS REPORTER



Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2012

American Oil and Gas Reporter - June 2012
Contents
Reports
Calendar
Oil & Gas Counts
State Legislative
Industry Digest
Natural Gas NSPS Affects a Variety of Equipment
Federal Legislation
SPCC
EPA
Keystone XL
Tech Connections
Washington Watch
Anadarko Finds World-Class Reservoirs in Deepwater Mozambique
Variety of Projects Have Permian Basin Hopping
Infrastructure Bottlenecks Easing in Permian Region
Completion Design Optimizes Yeso-San Andres Oil Wells
Cover Story
Beaver Creek CO2 Flood Boosts Madison Production
Study Evaluates Low-Salinity Waterfloods
Variable Speed Drives Coming of Age
Activity Spurring Artificial Lift Innovations
Project Shows STMZ’s Viability for Lower Tertiary Completions
ICDs, Modeling Improve Horizontal Shelf Well Completion
Intelligent Gas Lift Maximizes Production, Recovery
KOGA
CIPA
TOGA
TAEP
Frac Rules
Marcellus Regs
Conventions
The American Well Servicing Directory, Summer 2012
Industry Focus
Classified Advertising
Advertisers Index
American Oil and Gas Reporter - June 2012 - American Oil and Gas Reporter - June 2012
American Oil and Gas Reporter - June 2012 - Cover2
American Oil and Gas Reporter - June 2012 - Contents
American Oil and Gas Reporter - June 2012 - Reports
American Oil and Gas Reporter - June 2012 - 5
American Oil and Gas Reporter - June 2012 - 6
American Oil and Gas Reporter - June 2012 - 7
American Oil and Gas Reporter - June 2012 - Calendar
American Oil and Gas Reporter - June 2012 - 9
American Oil and Gas Reporter - June 2012 - 10
American Oil and Gas Reporter - June 2012 - 11
American Oil and Gas Reporter - June 2012 - 12
American Oil and Gas Reporter - June 2012 - 13
American Oil and Gas Reporter - June 2012 - Oil & Gas Counts
American Oil and Gas Reporter - June 2012 - 15
American Oil and Gas Reporter - June 2012 - Industry Digest
American Oil and Gas Reporter - June 2012 - 17
American Oil and Gas Reporter - June 2012 - 18
American Oil and Gas Reporter - June 2012 - 19
American Oil and Gas Reporter - June 2012 - 20
American Oil and Gas Reporter - June 2012 - 21
American Oil and Gas Reporter - June 2012 - 22
American Oil and Gas Reporter - June 2012 - 23
American Oil and Gas Reporter - June 2012 - Natural Gas NSPS Affects a Variety of Equipment
American Oil and Gas Reporter - June 2012 - 25
American Oil and Gas Reporter - June 2012 - 26
American Oil and Gas Reporter - June 2012 - 27
American Oil and Gas Reporter - June 2012 - Federal Legislation
American Oil and Gas Reporter - June 2012 - 29
American Oil and Gas Reporter - June 2012 - 30
American Oil and Gas Reporter - June 2012 - 31
American Oil and Gas Reporter - June 2012 - SPCC
American Oil and Gas Reporter - June 2012 - 33
American Oil and Gas Reporter - June 2012 - Keystone XL
American Oil and Gas Reporter - June 2012 - 35
American Oil and Gas Reporter - June 2012 - 36
American Oil and Gas Reporter - June 2012 - Tech Connections
American Oil and Gas Reporter - June 2012 - 38
American Oil and Gas Reporter - June 2012 - Washington Watch
American Oil and Gas Reporter - June 2012 - Anadarko Finds World-Class Reservoirs in Deepwater Mozambique
American Oil and Gas Reporter - June 2012 - 41
American Oil and Gas Reporter - June 2012 - 42
American Oil and Gas Reporter - June 2012 - 43
American Oil and Gas Reporter - June 2012 - 44
American Oil and Gas Reporter - June 2012 - 45
American Oil and Gas Reporter - June 2012 - 46
American Oil and Gas Reporter - June 2012 - 47
American Oil and Gas Reporter - June 2012 - 48
American Oil and Gas Reporter - June 2012 - 49
American Oil and Gas Reporter - June 2012 - Variety of Projects Have Permian Basin Hopping
American Oil and Gas Reporter - June 2012 - 51
American Oil and Gas Reporter - June 2012 - 52
American Oil and Gas Reporter - June 2012 - 53
American Oil and Gas Reporter - June 2012 - 54
American Oil and Gas Reporter - June 2012 - 55
American Oil and Gas Reporter - June 2012 - 56
American Oil and Gas Reporter - June 2012 - 57
American Oil and Gas Reporter - June 2012 - 58
American Oil and Gas Reporter - June 2012 - 59
American Oil and Gas Reporter - June 2012 - 60
American Oil and Gas Reporter - June 2012 - 61
American Oil and Gas Reporter - June 2012 - 62
American Oil and Gas Reporter - June 2012 - 63
American Oil and Gas Reporter - June 2012 - Infrastructure Bottlenecks Easing in Permian Region
American Oil and Gas Reporter - June 2012 - 65
American Oil and Gas Reporter - June 2012 - 66
American Oil and Gas Reporter - June 2012 - 67
American Oil and Gas Reporter - June 2012 - 68
American Oil and Gas Reporter - June 2012 - 69
American Oil and Gas Reporter - June 2012 - 70
American Oil and Gas Reporter - June 2012 - 71
American Oil and Gas Reporter - June 2012 - Completion Design Optimizes Yeso-San Andres Oil Wells
American Oil and Gas Reporter - June 2012 - 73
American Oil and Gas Reporter - June 2012 - 74
American Oil and Gas Reporter - June 2012 - 75
American Oil and Gas Reporter - June 2012 - 76
American Oil and Gas Reporter - June 2012 - 77
American Oil and Gas Reporter - June 2012 - 78
American Oil and Gas Reporter - June 2012 - 79
American Oil and Gas Reporter - June 2012 - 80
American Oil and Gas Reporter - June 2012 - 81
American Oil and Gas Reporter - June 2012 - Cover Story
American Oil and Gas Reporter - June 2012 - 83
American Oil and Gas Reporter - June 2012 - 84
American Oil and Gas Reporter - June 2012 - 85
American Oil and Gas Reporter - June 2012 - 86
American Oil and Gas Reporter - June 2012 - 87
American Oil and Gas Reporter - June 2012 - 88
American Oil and Gas Reporter - June 2012 - 89
American Oil and Gas Reporter - June 2012 - 90
American Oil and Gas Reporter - June 2012 - 91
American Oil and Gas Reporter - June 2012 - Beaver Creek CO2 Flood Boosts Madison Production
American Oil and Gas Reporter - June 2012 - 93
American Oil and Gas Reporter - June 2012 - 94
American Oil and Gas Reporter - June 2012 - 95
American Oil and Gas Reporter - June 2012 - 96
American Oil and Gas Reporter - June 2012 - 97
American Oil and Gas Reporter - June 2012 - 98
American Oil and Gas Reporter - June 2012 - 99
American Oil and Gas Reporter - June 2012 - Study Evaluates Low-Salinity Waterfloods
American Oil and Gas Reporter - June 2012 - 101
American Oil and Gas Reporter - June 2012 - 102
American Oil and Gas Reporter - June 2012 - 103
American Oil and Gas Reporter - June 2012 - Variable Speed Drives Coming of Age
American Oil and Gas Reporter - June 2012 - 105
American Oil and Gas Reporter - June 2012 - 106
American Oil and Gas Reporter - June 2012 - 107
American Oil and Gas Reporter - June 2012 - Activity Spurring Artificial Lift Innovations
American Oil and Gas Reporter - June 2012 - 109
American Oil and Gas Reporter - June 2012 - 110
American Oil and Gas Reporter - June 2012 - 111
American Oil and Gas Reporter - June 2012 - 112
American Oil and Gas Reporter - June 2012 - 113
American Oil and Gas Reporter - June 2012 - 114
American Oil and Gas Reporter - June 2012 - 115
American Oil and Gas Reporter - June 2012 - 116
American Oil and Gas Reporter - June 2012 - 117
American Oil and Gas Reporter - June 2012 - Project Shows STMZ’s Viability for Lower Tertiary Completions
American Oil and Gas Reporter - June 2012 - 119
American Oil and Gas Reporter - June 2012 - 120
American Oil and Gas Reporter - June 2012 - 121
American Oil and Gas Reporter - June 2012 - 122
American Oil and Gas Reporter - June 2012 - 123
American Oil and Gas Reporter - June 2012 - 124
American Oil and Gas Reporter - June 2012 - 125
American Oil and Gas Reporter - June 2012 - 126
American Oil and Gas Reporter - June 2012 - 127
American Oil and Gas Reporter - June 2012 - 128
American Oil and Gas Reporter - June 2012 - 129
American Oil and Gas Reporter - June 2012 - 130
American Oil and Gas Reporter - June 2012 - ICDs, Modeling Improve Horizontal Shelf Well Completion
American Oil and Gas Reporter - June 2012 - 132
American Oil and Gas Reporter - June 2012 - 133
American Oil and Gas Reporter - June 2012 - 134
American Oil and Gas Reporter - June 2012 - 135
American Oil and Gas Reporter - June 2012 - 136
American Oil and Gas Reporter - June 2012 - 137
American Oil and Gas Reporter - June 2012 - 138
American Oil and Gas Reporter - June 2012 - 139
American Oil and Gas Reporter - June 2012 - 140
American Oil and Gas Reporter - June 2012 - Intelligent Gas Lift Maximizes Production, Recovery
American Oil and Gas Reporter - June 2012 - 142
American Oil and Gas Reporter - June 2012 - 143
American Oil and Gas Reporter - June 2012 - 144
American Oil and Gas Reporter - June 2012 - 145
American Oil and Gas Reporter - June 2012 - 146
American Oil and Gas Reporter - June 2012 - 147
American Oil and Gas Reporter - June 2012 - 148
American Oil and Gas Reporter - June 2012 - KOGA
American Oil and Gas Reporter - June 2012 - 150
American Oil and Gas Reporter - June 2012 - 151
American Oil and Gas Reporter - June 2012 - CIPA
American Oil and Gas Reporter - June 2012 - 153
American Oil and Gas Reporter - June 2012 - 154
American Oil and Gas Reporter - June 2012 - 155
American Oil and Gas Reporter - June 2012 - TOGA
American Oil and Gas Reporter - June 2012 - 157
American Oil and Gas Reporter - June 2012 - 158
American Oil and Gas Reporter - June 2012 - 159
American Oil and Gas Reporter - June 2012 - 160
American Oil and Gas Reporter - June 2012 - 161
American Oil and Gas Reporter - June 2012 - 162
American Oil and Gas Reporter - June 2012 - 163
American Oil and Gas Reporter - June 2012 - TAEP
American Oil and Gas Reporter - June 2012 - 165
American Oil and Gas Reporter - June 2012 - 166
American Oil and Gas Reporter - June 2012 - 167
American Oil and Gas Reporter - June 2012 - 168
American Oil and Gas Reporter - June 2012 - 169
American Oil and Gas Reporter - June 2012 - 170
American Oil and Gas Reporter - June 2012 - Frac Rules
American Oil and Gas Reporter - June 2012 - Marcellus Regs
American Oil and Gas Reporter - June 2012 - 173
American Oil and Gas Reporter - June 2012 - Conventions
American Oil and Gas Reporter - June 2012 - The American Well Servicing Directory, Summer 2012
American Oil and Gas Reporter - June 2012 - 176
American Oil and Gas Reporter - June 2012 - 177
American Oil and Gas Reporter - June 2012 - 178
American Oil and Gas Reporter - June 2012 - 179
American Oil and Gas Reporter - June 2012 - 180
American Oil and Gas Reporter - June 2012 - 181
American Oil and Gas Reporter - June 2012 - 182
American Oil and Gas Reporter - June 2012 - 183
American Oil and Gas Reporter - June 2012 - 184
American Oil and Gas Reporter - June 2012 - 185
American Oil and Gas Reporter - June 2012 - 186
American Oil and Gas Reporter - June 2012 - 187
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American Oil and Gas Reporter - June 2012 - 189
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American Oil and Gas Reporter - June 2012 - 192
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American Oil and Gas Reporter - June 2012 - 196
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American Oil and Gas Reporter - June 2012 - 198
American Oil and Gas Reporter - June 2012 - 199
American Oil and Gas Reporter - June 2012 - 200
American Oil and Gas Reporter - June 2012 - 201
American Oil and Gas Reporter - June 2012 - 202
American Oil and Gas Reporter - June 2012 - Industry Focus
American Oil and Gas Reporter - June 2012 - 204
American Oil and Gas Reporter - June 2012 - 205
American Oil and Gas Reporter - June 2012 - 206
American Oil and Gas Reporter - June 2012 - 207
American Oil and Gas Reporter - June 2012 - 208
American Oil and Gas Reporter - June 2012 - Classified Advertising
American Oil and Gas Reporter - June 2012 - Advertisers Index
American Oil and Gas Reporter - June 2012 - Cover3
American Oil and Gas Reporter - June 2012 - Cover4
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