Weathering the Storm GSA 2020
What We Did During The Last Seven Downturns in The Oil Markets Mike Carroll Dr. John Leftwich Reggie Spiller The History of Our Collective Careers
Oil Prices 1970- 2020 Price In $ 2015 2020 2025 -20 Year - 40
Inflation Adjusted Crude Oil Prices 1970- 2020 Price Recovery Price Drop Price in $ 2015 2020 2025 -20 08 86 93 98 01 84 16 73 - 40 Year 20
1973-1978 Columbia is Launched New Careers Launched Reg Spiller Exxon Geologist Mike Carroll Conoco Geologist John Leftwich Exxon Geologist
Reggie Spiller Declared Geology Major 73 86
Reggie Spiller Reg Starts With Exxon 78 86
Reggie Spiller 1978 Age 26
I’m going to work in The Energy Field and have a good Job!
Well Site Work Offshore Gulf of Mexico
Mike Caroll Mike Starts With Conoco 78 86
Mike Caroll Preparing for Grad School
1978 Conoco Geologist Mike Carrol l
John Leftwich John Starts With Exxon 73 86
Dr. John Leftwich Geologist
Good times 1977- 1984 Oil Prices Peak at $53 per bbl $125 todays Prices in Houston 1st artificial heart in Dr. Barney Clark E. T. Hits the Box Office
GSA Member Society NABGG Founded In 1981 by a small Group of African American Geologists The “Early Years” Taken in 1982
1983 Korean airline shot down Terrorist kill 237 marines In Beirut “ Beat it” Vanessa William is Miss America
1986 Big Concerns Challenger Disaster Chernobyl Meltdown Oil Prices fall $27-12 /bb
The Oil Crisis of 1986 The Saudis abandoned price support and increased production to capture Market Share The Great Industry Crisis 86
$ Crisis – Over leveraged companies had too much debt. Oil Prices Fall Many Banks had 40% of Portfolio in Oil
Oil Company Consolidation Through 1986 • Mesa Takes on Everyone “T Boone” • Philips Takes Aminoil • Chevron Takes Gulf • Mobil Takes Superior • Elf Takes Texas Gulf • Maxus Takes Diamond Shamrock • Pennzoil Takes Getty • BP Takes Sohio • Many other takeovers occur
Bad Times 1986- 1989 Severance Package
Thousand of Jobs Lost in the Oil Sector Many individuals pack it up and……Leave Some return to school, become students, teachers, start new companies, and work overseas . Some….. never return
Sequence Boundary Reality 15 Years of Depressed Prices $40 86
Oil Prices Expressed as a Well Log 140 120 100 80 60 40 20 0 Price in $ Year 1975 1985 Unconformity 15 Years of low Shale Base line 1995 price (non reservoir) section $40 2005 2015 2020
What am I going to Do?
1989 John Leftwich Pursues a PHD
Mike Carroll Starts His Own Company • Had been Working in 1985 for Louisiana Land and Exploration but the group was downsized and many talented people were let go. • 1992 Formed an New Company called Principle Energy Development and provided technical services to a variety of companies. • Did a number of Offshore and Onshore deals and worked with another African American Owned company ( Osyka Energy)
Reggie Goes International Reg Begins International work “88” 73 86 84 93 98 01 08 16
Reggie Spiller Ethiopia 1989
August 1 st , 1990 Reggie and Team Doing Field Work in the Ogaden Basin
August 02, 1990 Iraq Invades Kuwait, Somalia Supports Iraq
August 05, 1990 - The Team Gets Captured by Somali Militia
1990 E and W Germany A New Outlook United Persian Gulf war Hubble is Launched Mandela is free The www web debuts after 27 years
The Fear of a Middle East War The Oil Spike Of 1990 73 86 84 93 98 01 08 16
John Begins Teaching at Old Dominion 1993 as a Geology Professor Old Dominion University
Reggie Joins The Federal Government “92” Oil @ $9.00/bbl $40 86
1992 Bill Clinton elected Hazel O’Leary Named Secretary of Energy- Focus on Natural Gas
Kyle Simpson John Northington Reg Spiller Dep Sectary Bill White
1992 Reg Spiller Became the Deputy Assistant Secretary US Department of Energy • First Petroleum Geologist to Hold the position • $400 m R and D budget • Industry and Government Joint R and D conducted at National Labs
Starts What is now the Oldest Minority Focused Summer Internship in the Federal Government Legacy
Mickey Leland Mickey As a US Congressman 1987
Hundred of STEMS Graduates in 25 years
US Government DOE Delegation to Senegal 1995 Mike Carroll , Dr. Charles Brown , Kumar Bhattacharjee , Mike Harness Edith Allison Patricia Hall
John Gets Captured by Shell Oil 1997
Mike Gets Captured By British Petroleum 1988 Mars Team Deepwater Gulf of Mexico
Mike Goes International Mike Begins International work 99 73 84 86 93 98 01 08 16
Mike Carroll Gets Captured by Hunt Oil 2003
Mike Carroll Doing International Exploration for Hunt Oil in South America
1996 Caspian Reggie Leaves the Government And Starts Frontera Resources Bolivia Oil Prices were $15 per bbl
Frontera Resources Raises 1 st Capital In 1998+ 2001 and goes Public 2005 1 2 3 Over supply Collapse worries Of the Dollar 73 86 84 93 98 01 08 16
2001 The World Was Awash with Oil
Manhattan Sept 11, 2001 2001
Reg Spiller Azerbaijan • • • •
Reg Spiller Syria 2001
Reggie Spiller at the The Kila Kupra Oil Seeps Republic of Georgia 2003
Reg Spiller at the Star Wars Oil Seep Kura Basin 2005
NABG Member Mike Pilson 2010 Managing a Geophysical Survey in The Republic of Armenia
Reggie and Mike Working in Armenia
Reg Spiller International Experience N=80+ Bayda Oil Seep
2008 John Leftwich Moves to Halliburton
Reggie Forms Azimuth Energy 2010 Price Recovery Price Drop 2009 Price in $ Started Azimuth Energy 2009 2015 2020 2025 -20 08 86 93 98 01 84 86 16 73 - 40 Year 20
CEO CFO BDM Reg Spiller Gary Hirstein Tyrone Byrd International E and P Project Management
2019-2020 Acquisition Strategy: Price Recovery Buy Assets in the Down Market Price Drop Price in $ 2015 2020 2025 -20 08 93 98 01 84 16 73 - 40 Year 20
What you might think about
The Digital Oil Field What’s Here Now And Why?
How to Better Manage 1000’s of Wells Cum. Active Wells - AERA only Pool Name Size Depth Production Production method (per DOGGR, Dec/05) Prod. AERA only Heavy Oil Tulare 7000 acres 400-1000 ft 1660 prod., 420 inj. 990 MMBO Slotted liner & steamflood (11-15º API) 370 MMBO, 4800 acres Light Oil DIATOMITE 800-2000 ft 3530 prod., 1140 inj. Hydraulic fractures 485 BCFG (4100 Aera) (22-39º API) 890 BCFG Temblor 2100 acres 6000-7000 ft 40 prod., 0 inj. Gas & light oil Slotted liner and perfs 70 MMBO & 64 Zone 3 active pools + 8 drilling rigs + 20 workover rigs = very crowded infrastructure 5 5
Ultimate Goals: Increase Production Reduce Operating Cost Safer Work Environment
Looking for Efficiency and New Relationships Through AI, ML, Iot
The Big Drivers • Efficient management of 1000’s of wells instead of the usual 50- 100 brought about by the Shale Revolution • Safety and HSE Concerns driven by increased activity and the advent of the Crew Change
Capital Markets are Demanding a Return on Investment
Even Government is Involved!! $40 Million Dollar 4 year Research JV with Industry
The Biggest Challenge ???
The Biggest Challenge to Change The Old School Way of Doing Things
“ Get ready for the Big Crew Change” Drive the Message with HSE and Safety
The Message and Top 10 Ideas to Weather The Storm • Be aggressive in the down markets- be open and flexible • Be inquisitive and keep connected to Professional Societies- GSA, AAPG, NABG, SEG • Get a plan and a strategy but be ready to “morph” • Consider furthering your education • Get a Mentor ( and be one too!) • Partner with those who compliment your experience • Value your reputation more than your money • Schedule your time so you give back to others • Try something new ( International ) It may lead to bigger things! • Jump on Board the Technology Train
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