URTeC Takes Center Stage in Colorado
Record Attendance Expected as Professionals Across All Segments of the Unconventional Arena Converge for Integrated Event

Complimentary Press Passes Available Here

August 18, 2014//Tulsa, OK – The second edition of the Unconventional Resources Technology Conference (URTeC) takes center stage 25-27 August at the Colorado Convention Center in Denver, CO. The 2014 event highlights unconventional resource possibilities in North America and around the world, as well as takes an in-depth look at existing plays.

URTeC 2014 is attracting acute interest from the industry as it brings together scientists, engineers and business managers to cross-pollinate ideas and encourage an “asset team” approach to exploration and production. With attendance trending ahead of last year’s inaugural event, the multidisciplinary organizing committee is optimistic that this year’s event will exceed expectations.

“The response to URTeC affirms the importance of this approach to the industry and we look forward to providing a robust, highly-interactive and superior attendee experience,” said Mr. Luis Baez, Co-chair of URTeC’s Technical Program Committee. “The program committee has worked diligently to ensure that the content being offered serves professionals across all segments of the unconventional arena and is second to none.”

A joint project of the Society of Petroleum Engineers (SPE), the American Association of Petroleum Geologists (AAPG) and the Society of Exploration Geophysicists (SEG) with help from the American Association of Mechanical Engineers, Petroleum Division (ASME-PD), URTeC is one of the industry’s only integrated science and technology events.

The opening plenary session features a panel of experts that will address the topic of “Using Science and Integrated Technologies to Develop Unconventional Plays.” Other interactive panel discussions include “Nimble Independents: Moving the Needle With Innovation and Execution Excellence,” “Converting Technology Into Dollars,” “Emerging International Plays,” “Water Management and the Link to License to Operate” and “Marcellus Shale: ‘Bottom Up’ Integrated Assessment of Future Production and Reserves.”

The program, comprising experts from every aspect of the unconventional sector, features multi-themed technical sessions including 190+ oral sessions, 60+ ePapers, team presentations, topical breakfasts and luncheons, and interactive panel sessions. Cores from several unconventional reservoirs will be on display allowing attendees to view the rocks and compare analyses and results summarized by service companies. Cores are expected from the Haynesville, Bossier, Eagle Ford, Marcellus, Utica, Woodford, Niobrara, Tuscaloosa and Bakken plays.

“Attendees with various levels of unconventional experience will attend. It attracts those that have expertise in unconventionals with its top-quality content,” said Jennifer Bell, chair of the ASME’s Petroleum Division and chief executive officer of Elements Offshore LLC in Houston. She will serve as co-chair for the URTeC session “Emerging Plays: Roadway from Ideas to Sweetspots.”

“URTeC is the best venue where technology can be shared,” said AAPG award-winning member Bob Hardage of the Texas Bureau of Economic Geology.

Several Companies Expected to Announce New Products
Press conferences by exhibiting companies will take place over the course of the event. For a complete schedule of events, visit www.urtec.org or contact press@urtec.org.

Complimentary Press Registrations Available
Members of the press are invited to attend URTeC free of charge, with access to conference sessions, the exhibition and opening plenary session. Expedite press registration or request additional information by contacting Vern Stefanic. For full conference program details, registration, exhibition and sponsorship information, visit www.urtec.org.

About SPE
The Society of Petroleum Engineers (SPE) is a not-for-profit professional association whose members are engaged in energy resources development and production. SPE serves more than 124,000 members in 135 countries worldwide. SPE is a key resource for technical knowledge related to the oil and gas exploration and production industry and provides services through its publications, events, training courses, and online resources at www.spe.org.

About AAPG
Founded in 1917, AAPG is the premiere global organization for petroleum explorationists with over 42,500 members in 129 countries. The original purpose of AAPG, to foster scientific research, to advance the science of geology, to promote technology, and to inspire high professional conduct, still guides the Association today. AAPG provides publications, conferences, and educational opportunities to geoscientists and disseminates the most current geological information available to the general public.

About SEG
The Society of Exploration Geophysicists is a not-for-profit organization that promotes the science of applied geophysics and the education of geophysicists. SEG’s mission is connecting, inspiring, and propelling the people and science of geophysics. It provides its members with a variety of resources designed to further their success in the geophysics community.  For more information, visit www.seg.org.

Photo by Travis W. Cooksey

BISMARCK, N.D. – The North Dakota Petroleum Council (NDPC) today released the final report detailing the results, research methodology and comparative analysis of the Bakken Crude Characteristics Study conducted this spring. The preliminary results of the study, which concluded Bakken crude is similar to other North American light, sweet crudes and does not pose a greater risk to transport by rail than other crudes and transportation fuels, were presented in May during the Williston Basin Petroleum Conference.

“This study provides the most thorough and comprehensive analysis of crude oil quality from a tight oil production basin to date,” said John Auers, executive vice president of Turner, Mason & Company, the engineering firm commissioned to conduct the study. “The study provides conclusive and consistent scientific data about Bakken crude that will help regulators, operators, shippers and other key stakeholders properly classify and monitor Bakken crude in the future.”

In addition to reinforcing the preliminary findings presented in May, the final report also outlined Field Operations Recommended Best Practices to ensure consistent operation of field treating equipment, Bakken crude oil quality and testing procedures and shipping classification. Some of the best recommended practices include (but are not limited to):

· Maintaining all fired treating equipment at a temperature between 90 degrees and 120 degrees Fahrenheit year round to help minimize light end components in crude and create a consistent industry standard to ensure optimal separation of water and gas from the crude oil stream;
· Providing maximum tank settling time possible prior to shipment;
· Reducing stock tank pressure to the lowest pressure possible to maintain vapor collection equipment (engineered flare, vapor recovery, etc.) operational integrity;
· Testing each unit train loading or tank shipment batch to ensure crude is within the established typical Bakken specifications;
· Classifying all Bakken crude as a Class III, Packing Group I hazardous material even if current testing methods would classify a shipment as Packing Group II.

“The study helped establish a baseline for Bakken crude characteristics, and by implementing the recommended best practices outlined in the report, we will ensure Bakken crude remains consistent to those properties,” said Kari Cutting, vice president of the NDPC. “Our members have already begun implementing many of those best practices, further emphasizing our commitment to safety, including in the movement of this valuable resource by rail.”

In addition to outlining recommended best practices and providing in-depth analysis of the final results from sampling and testing, the final report also compares analysis from other studies on Bakken crude, including a study commissioned by the American Fuel & Petrochemical Manufacturers (AFPM) and the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA).

“The test results from this study are consistent with scientific data reported by the AFPM and PHMSA,” said Cutting. “All of this data does not support the speculation that Bakken crude is more volatile or flammable than other light, sweet crudes. We look forward to using this information to continue our work with regulators and rail companies to develop and implement standards that will ensure all flammable liquids, particularly crude oils that are safely transported by rail.”

Turner, Mason & Company will present the findings of the final report to the North Dakota Industrial Commission on Wednesday, August 6 at 11 a.m. The study was completed by Turner, Mason & Company and SGS Laboratories at a cost of approximately $400,000. The full report may be downloaded at www.ndoil.org/resources/BKN.

Since 1952, the Petroleum Council has been the primary voice of the oil and gas industry in North Dakota. The Petroleum Council represents more than 500 companies involved in all aspects of the oil and gas industry, including oil and gas production, refining, pipeline, mineral leasing, consulting, legal work, and oil field service activities in North Dakota, South Dakota, and the Rocky Mountain Region. For more information, go to www.ndoil.org.

BISMARCK, N.D. – The petroleum industry, the state and communities will come together on Wednesday, June 25 in Tioga, N.D., to celebrate North Dakota’s climb to one million barrels of oil production per day and to show appreciation for the many hard-working men and women who have supported western communities and the industry during the past decade of growth.

The celebration will include remarks from Gov. Jack Dalrymple, Ron Ness, president of the NDPC and Kathy Neset, president of Neset Consulting Service, which is hosting the event at their location. Speakers, a mini museum and tours to the first oil well will highlight North Dakota’s oil and gas history, as well as the state’s role as a top producer of energy for the world and its positive influence on national security.

“We are thrilled to be hosting this celebration and to recognize this remarkable milestone,” said Neset. “One million barrels per day is an impressive level of production. The Bakken – along with other oil resources around the country – have lifted the United States to a more secure level on the global stage of security and independence by providing a safe and reliable source of energy for our country.”

What: One Million Barrels – One Million Thanks Celebration

Where: Neset Consulting Service, 6844 Highway 40, Tioga, ND
When: Wednesday, June 25, 2014
11 a.m. Welcome – Ron Ness, NDPC
North Dakota Governor Jack Dalrymple
11:15 a.m. Kathy Neset, Neset Consulting Service
11 a.m. – 3 p.m. ND Oil & Gas Industry Mini-Museum Open
11:30 a.m. Ribbon cutting, airshow and flyby by the Texas Flying Legends
12-2 p.m. Community BBQ
12 – 3 p.m. Bus tours to Clarence Iverson No. 1 Well
12 – 3 p.m. Air tours of the Tioga area
12 – 3 p.m. Live music by the Tin Star Band

More Info: The event is free and open to the public and media. Parking and shuttle services will be available at the Tioga Farm Festival Building. For more information about the celebration, visit www.ndoil.org/events.

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Press Release – June 12, 2014

With insurgents having overrun Mosul and now heading toward Baghdad, virtually all of the media focus has been on the military aspects of this conflict as well as a possible alliance between Iraq, Iran, and Syria.

Lost in the shuffle has been the “fear factor” building into the world price for crude oil. This may very well happen to oil prices should the ruling government in Iraq be toppled, or if the conflict turns into a civil war.

Already the price of oil has spiked in the past two days with tensions escalating and may very well drive the price for a barrel of oil oil up another $10 a barrel.

The US has the means to insulate itself against such price spikes: Thanks to the unending supplies of oil and natural gas unlocked by frac’ing, we can free ourselves of our dependence on imports from volatile North Africa and Middle East regions.

These price spikes almost immediately will translate into higher prices for gasoline and diesel at the pump. In an market such as this “Prices shoot up like a rocket and drift back down like a feather”.

Let me know if you are interested in speaking with me.

Bob van der Valk
Senior Editor
Bakken Oil Business Journal
406.853.4251
editor@bakkenoilbiz.com

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By Kevin Smith, San Gabriel Valley Tribune

Chevron Gas station prices, unleaded gas $4.53 with Super unleaded at 4.69 on the corner of La Crescenta Ave. and Honolulu Ave. in Montrose, Ca on Tuesday, April 15, 2014. (Keith Birmingham Pasadena Star-News)

Southland gas prices have risen dramatically in recent days, and one industry expert figures they’ll remain above $4 a gallon until September.

The average price for a gallon of regular gas in Los Angeles County was $4.30 Wednesday, up 17 cents from a week ago and up 26 cents from a month ago, according to AAA’s Daily Fuel Gauge Report.

California’s average price for regular was $4.19 a gallon Wednesday, topped only by Hawaii’s average price of $4.32 a gallon.

“I think it will level off now, but prices won’t fall below $4 a gallon until September,” said Bob van der Valk, senior editor for the Bakken Oil Business Journal. “It’s because of the lack of supply … there’s just no backup supply.”

Jeffrey Spring, a spokesman for the Automobile Club of Southern California, linked the price hikes to several factors.

“Most of our refineries should be through with the turnaround maintenance that’s involved when they convert from winter-grade to summer-grade gas,” he said. “But two refineries — the Chevron refinery in El Segundo and the Exxon Mobil refinery in Torrance — will still be down for a couple more weeks.”

Van der Valk said the Tesoro Golden Eagle Refinery in Martinez is also experiencing problems. Those issues have served to reduce California’s supply of gasoline. Refineries are also exporting more gas overseas, Spring said, which further erodes California’s in-state supply. Spring also noted that ethanol costs have risen because producers are having a hard time getting enough tanker cars to move their product by rail.

“Many of those cars have been diverted to move oil from the Bakken Reserve in North Dakota,” he said. California has 20 refineries that collectively produce about 42 million gallons of gas per day.

The state’s refineries produced more than 6.4 million barrels of gas for in-state use for the week that ended April 4, according to the California Energy Commission. That was down 4.1 percent from the previous week but up 2.3 percent from the same period a year ago.

Production of non-California gas for export rose 35.8 percent for the week that ended April 4 to more than 1 million barrels, the commission reported. Year-over-year production of gas for export rose 19.5 percent.

Despite the price spike, business was brisk at the Woodland Hills 76 Station at the northwest corner of Topanga Canyon and Burbank boulevards on Wednesday where regular was flowing at $4.30 a gallon, midgrade at $4.39, premium at $4.48 and diesel at $4.00.

Drivers were mildly surprised to discover this fill-up was going to cost more than the last one but realized it’s become a common occurrence this time of year.

Canoga Park residents Scott and Ilene Hastie, heading to the beach with their two grandchildren, were filling the tank of their 1987 Toyota Land Cruiser. “It’s still going,” said Ilene Hastie as the dollars continued rolling on the pump’s counter. The bill eventually came to $86.91 cents. “It usually doesn’t cost this much,” she said.

Ilene Hastie and husband Scott finish filling up their Toyota Land Cruiser stopping on their way to the beach at a gas station in Woodland Hills. (Photo by Hans Gutknecht/Los Angeles Daily News)

Woodland Hills resident Dean Atkinson, a general contractor, was topping off his Chevy Silverado truck with diesel when the pump’s meter hit $95.

“This truck, I get about 12 miles to the gallon if I’m pulling a trailer. If the wind is behind you, you might get 15,” said Atkinson, who spends about $1,000 a month on fuel for the Chevy and a Toyota Tacoma. He had just returned from a trade show in Las Vegas and towed a 21-foot trailer. The fuel tab for that trip was about $300.

He’s got a cost-cutting plan.

“It’s at the point now where I will drive the smaller truck when I can. That one gets about 22 miles to the gallon,” he said.

Woodland Hills resident Allen Rivas, who works behind the counter, said that prices there actually down from Tuesday after rising about 20 cents in the last week or so.

No one has complained, he said.

“Nobody. They need it,” he said of the fuel.

Don Garrison is also feeling the squeeze. Garrison, who owns Simply Discount Furniture in Santa Clarita, said his company makes about 50 deliveries a week throughout the Santa Clarita Valley, Antelope Valley, Ventura and Los Angeles.

“It’s definitely affected us, but we haven’t passed that along to our customers yet,” he said. “We’re trying to absorb the costs to keep our prices down. But it really depends on the amount of time that the prices stay up. If they stay up for say a month … then we’ll have to adjust our delivery charge.”

Playa del Rey Florists is losing money on its deliveries, owner Lance Williams said. The company does about 130 deliveries a week.

“It’s very hard because it comes so fast and there’s nothing you can do to really plan for it,” he said. “It’s almost a non-recoupable item because there is only so much someone is willing to pay for delivery.”

On Tuesday, the cheapest Los Angeles-area price could be found at an Arco station at 15705 Nordhoff St. in North Hills, which posted regular at $3.98 a gallon. But prices at some of the region’s other outlets were alarmingly high.

A Chevron station in Los Angeles and a Mobil station in North Hollywood both were selling regular for $5.19 a gallon. And scores of other locations listed regular at $4.89 or higher.

“We really didn’t think prices would get this high,” Spring said. “We’ll just have to hang on tight to our wallets because we’re over $4 a gallon by a significant amount.”

Reach the author at Kevin.Smith@sgvn.com or follow Kevin on Twitter: @SGVNBiz. Retrieved: http://www.presstelegram.com/business/20140416/los-angeles-gas-prices-soar-above-4-only-hawaii-pays-more

We, at the Bakken Oil Business Journal, offer our unambiguous support of a project important to meeting American energy needs, the Keystone XL Pipeline.

The Keystone XL Pipeline is a proposed 1,179 mile, 36-inch-diameter crude oil pipeline that goes through a number of states and provinces on its route south, including Alberta and Saskatchewan in Canada, and Montana, South Dakota and Nebraska in the U.S. Along with transporting crude oil from Canada, the Keystone XL Pipeline will transport oil from producers in Texas, Oklahoma, Montana and North Dakota.

Building awareness of the need for smart policy about our land and waters and how drilling impacts them isn’t an easy sell in a state whose residents continue to derive so much personal financial benefit from the oil and gas industry.

In the matter of Keystone, the environmental lobby is just plain wrong, as it is a safe and needed addition to America’s network of pipelines that gets oil to market. And there is precious little evidence to the contrary.

Until alternative fuel sources become competitive in availability and cost with our existing carbon-based mainstream supply, we have little choice but to rely on fossil fuels. This pesky fact just can’t be denied. Surely, we hope that time will come sooner rather than later, and we heartily support government funding of innovation to speed arrival of that day. But even the most knowledgeable and enthusiastic of environmentalists know that day is not right around the corner.

In the meantime, regardless of the worldwide climate crisis in which we’re fully engaged, it’s in our collective interest to facilitate America’s relentless need for the oil that runs our cars, heats and cools our homes and powers our factories. The Keystone will facilitate this by getting oil extracted from the buried sands of our friendly Canadian neighbor, down to our U.S. refineries to be converted to gasoline and related products.

Recent, objective studies show Keystone to be the safest, most environmentally secure and least expensive means to get the product to market. And now that the U.S. State Department has announced it found no major basis to oppose the project after an intensive and long-awaited review, it’s time for President Obama to provide his needed seal of approval.

Publisher’s preface: Every morning we’re inundated with sensationalized accounts of events that are presented as news when, in fact, these accounts are accusing diatribes built on finger-pointing and fact-omissions. We’re digesting our morning coffee along with emotionally charged rants created to serve the agendas of those who prepare them, rants that turn the front page into the editorial page.

Too often the target is the U.S. Oil & Gas Industry, the industry that’s worn a BULLSEYE on its back for the last few decades while, ironically, providing the country’s economy with one of the most important elements for growth: low-cost energy. However, since we at the Bakken Oil Business Journal know the U.S. Oil & Gas Industry is the industry that opens the door to increasing the prosperity of the US more than any other, I present you with something real, an account of some hard-working folks who are showing the world why the US is the greatest country in the world, why it is the land of the free and home of the brave.

By:  Marissa van der Valk

Travis Cooksey is the Safety Coordinator for Continental Resources in North Dakota and Montana.  He performs safety inspections on workover rigs, drilling rigs and well sites.  His overall duties include finding ways to keep the men and women out of harms way in the Bakken oil patch.

How does a California surfer end up in the oil fields of North Dakota?  The simple answer could be that he drove there, but life’s journey wasn’t so simple.  It involved biotechnology, the US Navy, a pregnant wife, a fifth wheel and the love of family and country.

Travis Cooksey was born in Redondo Beach, California located in Los Angeles County, which is known for its white sandy beaches and spectacular surfing. Travis is the baby in a family of four boys. He spent his formative years in Camarillo, California, a suburb 45 miles north of Los Angeles. He was a state ranked 800 meter runner in high school and qualified for Nationals in his senior year.  After high school, Travis first jobs were as a pool cleaner and asbestos remover.

He was first introduced to surfing about 20 years ago through a neighbor turned best friend Leroy, who gave him a wetsuit and surfboard for his birthday. Travis describes this gift as the gift that kept on giving. He started surfing and fell in love with catching the next big wave.

In 1990, Travis was hired to work at bio-technology company Amgen Inc located in Thousand Oaks, California.  For the next 13 years Travis worked as a lab technician in the human genomics laboratory. His coworkers describe Travis as being a hard worker with a penchant for telling hilarious stories. He was also described as being fiercely loyal to his family and his country. This is why at 34 years old Travis decided to join the US Navy.

Travis enlisted in the Navy in 2003 at the ripe old age of 34 just one year away from the cut off age.  And his decision to enlist was triggered by the tragic events on September 11, 2001.  He joined through the Navy’s Delayed Entry Program (DEP) which is a program designed to give the recruit some time to get their life in order before going to boot camp. Travis describes his time in boot camp as ‘not an easy time’.

The training instructors tended to be harder on recruits who were over thirty years old.  Travis describes himself as a highly dedicated loyal American with a heart full of patriotism so even though boot camp was difficult, no one was going to stop him from reaching his goal to succeed.

Travis went into the Navy as a reservist, but right after graduation from hospital corps school he received THE letter from President Bush putting him on full active duty status. He was first stationed at Great Lakes in Illinois and then was stationed in Port Hueneme, California. He also spent time at Camp Pendleton and ended his military career at Point Mugu.  He was attached to shore duty hospitals and squadrons with service to the special E.O.D. (explosive ordinance disposal) unit.

He received three NAM’s (Navy Achievement Medal) awards.  Travis had a tough time finding work in California, Oregon and Washington six months prior to being released from active duty.  And after 8 years in the US Navy Travis was faced with a decision, re-enlist for another tour of duty or go to work for the brother of his Navy Chief, who was hauling crude oil in Williston, North Dakota.

The US Navy’s loss was the Bakken’s gain when Travis decided to take the job in the booming oil patch of North Dakota. He was honorably discharged as a Petty Officer Second Class (PO2).

Travis is the father to four sons: Brandon 22, Braydon 12, Tayln 5, Pacey 2, and he and his wife Michelle are currently expecting their first daughter in July. He moved to Williston in October of 2011. He and Michelle, who was pregnant with Pacey at the time of making the move to North Dakota, loaded up their fifth wheel and took Talyn and their dog on the 1,600 mile drive to Williston.

Travis worked for Montana Mid-West Trucking, which is a sub-contractor for Plains Oil. Their first winter in North Dakota was a tough one; his wife, Tayln, Pacey (Brandon and Braydon live in California) and a dog lived in a 31 foot fifth wheel in the harsh winter of the Midwest. Travis was determined to get his family in a house before the next winter. After working for Montana Mid-West Trucking, he received a job working at Jacam Chemicals hauling chemicals. He worked for Jacam for a little over a year.

Travis was not able to get his family into a home at the start of their second winter in Williston.  He had a house built and with Michelle expecting their newly expected edition he could not have picked a better time.

When asked what he loves best about living in Williston and North Dakota Travis said: “I love the cold and the snow. I also love the people. It is one of the few places left with old school thinking and privileged rights of American freedom” for which he fought while serving his country.

Travis misses the life of a surfer and his family in California, but he has found a new home working and living in the Bakken of Western North Dakota and Eastern Montana.

Travis is one very proud American who still listens to the National Anthem before work every morning and Taps before bedtime each night.

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Travis Cooksey and Marissa van der Valk were co-workers at Amgen, a pharmaceutical company, at their Thousand Oaks, CA headquarters.  Travis worked in the same laboratory with Marissa in which she performed DNA sequencing experiments for the Human Genome Project.  Marissa now lives in Basking Ridge, New Jersey and is the daughter of Bob van der Valk , the Senior Editor of the Bakken Oil Business Journal.

North Dakota Director’s Cut Newsletter – January 2014
NDIC Department of Mineral Resources – Lynn Helms

January 2014 – Total Crude Oil Production 28,926,977 barrels = 933,128 barrels/day.  The all-time high was 976,453 barrels in November 2013.

871,672 barrels per day or 93% were from Bakken and Three Forks Formations.
There are over 100 wells shut in for the Tioga gas plant conversion in an attempt to minimize flaring, but the biggest production impact story continues to be the weather. January temperatures were only 6 degrees below normal with only 3 days too cold for fracturing work, and there were no major snow events with 12 days of sustained wind chill speeds too high for well completion work.

Over 95% of drilling still targets the Bakken and Three Forks formations. At the end of January 2014 there were about 660 wells waiting on completion services, an increase of 25.

Crude oil take away capacity is expected remain adequate as long as rail deliveries to coastal refineries keep growing.

READ MORE.

For reasons of efficiency the Department of State is encouraging electronic submittal of comments through the federal government’s eRulemaking Portal. To submit comments electronically, visit this link: http://www.regulations.gov/#!documentDetail;D=DOS-2014-0003-0001

This is a 30-day public comment period and the deadline date is Friday, March 7th at 11:59 p.m. (EST).

Download Letter 1
Download Letter 2

Jobs:

• During construction, the report suggests that the project would support about 42,000 direct/indirect jobs, approximately $2 billion of earnings throughout the United States, and contribute about $3.4 billion to US GDP.

GHG:

• The Final SEIS finds if this project goes ahead, we will see fewer spills, fewer injuries, and fewer fatalities when compared to the alternative of transporting crude oil by rail. On top of that, this project will result in lower GHG emissions; the Final SEIS finds that under any of the alternative scenarios where the project is denied, you will see greater GHG emissions from the movement of this oil.
  • The updated analysis in the Final SEIS concludes that the proposed Project is unlikely to significantly affect the rate of extraction in the oil sands.

• The Final SEIS states that under any of the scenarios where the project is denied, GHG emissions from the movement of this oil would actually increase – 28 per cent more GHGs if all the oil is railed to the Gulf Coast, 42 per cent higher GHGs if a combination of rail and new pipelines is used.

Energy Security:

• The Keystone XL Pipeline will increase energy security, and with the growth of domestic production in the U.S. and Canada, connecting the third largest resource of oil in the world to the largest refining center in the world can do nothing but increase energy security.

• As the Final SEIS points out, the demand persists for imported heavy crude oil by U.S. refineries optimized to process heavy crude. As Canadian production of bitumen from the oil sands continues to grow, the vast majority is currently exported to the United States to be processed by U.S. refineries.
  • The U.S. is a net importer of crude oil. The International Energy Agency and US Energy Information Administration (EIA) have both forecast that the U.S. will still need to import oil to meet its domestic demand for decades, despite growing oil production in the U.S. Today, the United States consumes 15 million barrels of oil per day and imports eight million barrels. The EIA forecast in 2012 stated that the U.S. will continue to import 7.5 million barrels of oil per day into 2035 to meet its needs.

Safety:

• As a Company, we are committed to doing the very best and we will continue to operate Keystone XL, once complete, in the safest and most efficient way that we can. It’s our commitment to the public, it’s our commitment to our customers, and it’s a commitment we take very seriously.
  • As stated in the Final SEIS, the U.S. Department of State, in consultation with PHMSA, has determined that incorporation of the 59 conditions would result in a Project that would have a degree of safety over any other typically constructed domestic oil pipeline system under current code.

Export:

• Keystone XL is not an export pipeline. The U.S. consumes 15 million barrels of oil a day and imports seven to eight million barrels. Both the U.S. Energy Information Administration and the International Energy Agency predict America will continue to import millions of barrels of oil each day until at least 2040.

• So what we are really talking about is a choice – a choice made all that more relevant with the recent unrest in Syria and Egypt – do Americans want their crude oil from a friendly partner in Canada or will they continue to rely on unstable regions such as Venezuela and the Middle East? Based on consistent polls since 2011, the findings prove that the majority of Americans continue to support our project.

By Antonio Garza

Mexico took a giant leap toward a new economic future in December 2013 with Congressional passage of a remarkably bold energy reform bill. Both euphoria and hand wringing ensued as Mexico observers and the Mexican people began contemplating the significance to the country of opening its long-protected oil and gas industry.

These emotional reactions, though deeply felt, will soon subside; giving way to the realization that there’s much hard work ahead and that the road to reform is long and potentially strewn with obstacles.

But there’s every reason to believe that President Enrique Peña Nieto’s administration is attuned to the challenges. After all, there’s been quite a lot of discussion-albeit largely of the academic sort-about how to revamp the sector. And Mexico surely stands to benefit from the examples of previous reform efforts in the hemisphere and beyond, namely in Brazil, Colombia, Peru and Norway.

The measure that emerged from Congress last week barely resembled the initial, cautious, proposal presented in August by the governing Party of the Institutional Revolution (PRI). That middle-of-the-road effort, which would have introduced profit-sharing agreements, was judged unappealing by the foreign firms whose investment and expertise Mexico’s energy sector desperately needs to overcome its woes.

And so a new, more transformative piece of legislation was produced by what is known as “the art of political compromise.” It’s a craft that has been evident throughout Peña Nieto’s first year in office, facilitated by the three-party accord known as the Pact for Mexico. But with the leftist Party of the Democratic Revolution (PRD) unwilling to negotiate meaningful change for the energy sector, the Pact inevitably dissolved. The PRI and the conservative National Action Party (PAN) remained at the bargaining table and together produced a reform more far-reaching than many analysts had thought possible.

The approved legislation reforms Mexico’s constitution by ending the oil and electricity monopolies (PEMEX and CFE, the Federal Electricity Commission); allowing private oil companies to explore for and produce oil and gas under a variety of contracts, including services, production or profit-sharing, and licenses; creating a sovereign fund to manage oil revenues; and, revising the nature and governance of the PEMEX board.

It took less than a week for the constitutional changes to be ratified by a majority of state legislatures: 17 of Mexico’s 31 states approved the reform within five days of its Congressional passage. Senate recognition of the state actions and the President’s signature will soon follow.

The proximate step will be far more challenging: translating constitutional reforms into workable policies. This secondary legislation, also called implementing laws, will stipulate the policy framework and legal processes required to carry out the reform.

These measures are highly anticipated and potentially will set the stage for as much as $20 billion a year in new investment in the sector. They must clarify roles (for all actors in the sector, from private companies and regulators to PEMEX, CFE and other government entities) and establish the mechanisms and procedures by which the country’s energy resources will be developed and distributed. Among the details to be addressed are which oil and gas blocs will be developed, when, and under which terms and how costs will be established and recuperated.

Adding to this daunting task is an aggressive time frame stipulated in the reform for developing the follow-on laws and regulations, and pressure from continued political opposition from the left can’t be dismissed as a potential complication.

Still, Mexico has taken the crucial first step toward reforming its energy sector. The arduous work of building a framework and policies that can bring Mexico’s energy sector into the modern era and enable the country to realize its great economic promise is underway. The excitement of this moment is real, for Mexico and anyone concerned about this hemisphere’s future.

Antonio Garza is a former U.S. Ambassador to Mexico. Ambassador Garza is Counsel in the Mexico City office of White & Case and serves as chairman of Vianovo Ventures. Online at www.tonygarza.com. Twitter @aogarza