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The Wise Report
Henry M. Wise, P.G.
July 21, 2012
The last day to add comments to the Texas Red Tape Challenge's debate on the lincensure of Geoscientists has been extended to August 8, 2012. I highly recommend that you visit this site and make comments. If you don't want to make comments, please vote on each comment as to whether you agree or disagree. Please don't assume your ideas or comments aren't important, they're very important, and please stick with the subject, no personal attacks. Personal attacks will only detract from the discussions and hurt your argument. The site is located at: http://texasredtapechallenge.ideascale.com/a/ideafactory.do?id=19448&mode=recent&discussionFilter=byids&discussionID=30775
Henry M. Wise, P.G.
The Wise Report
July 21, 2012
The Wise Report
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The Houston Geological Society would like to recognize and thank its many vendors who provided financial support of the HGS and “Vendor Corners” for our 2011-2012 evening technical meetings. These companies presented poster session displays of their products, studies or services. Each provided a great focal point for the attendees during the gathering and social period prior to the evening dinner meetings. The Vendor Corner fees paid are donated 100% to the HGS Scholarship Fund for undergraduate geosciences students and the HGS Student Membership Initiative.
Thank YouThis is my last column as your President, so first off I want to say it has been an honor to have served you and the HGS. This truly is a fine organization. I hope I have steered a reasonably steady course throughout my term. We have enjoyed successes: a great Mudstone Conference, an exciting Legend's Night that raised over $30,000 for our scholarship funds, another year of exceptional talks and short courses. We have had challenges, the Texas Board of Professional Geoscientists proposed rule changes springs to mind. We have had changes: a new website, new office and new staff. Our technical and social programs and the website redesign were all planned; the rest was unexpected. |
| Through it all, I have had the assistance of a great many volunteers. As I stated back in September, volunteers are what makes the HGS function and are our greatest asset. This month is our annual awards issue where we get to recognize a small number of those who have given so much to our society. If you know any of these people, please congratulate them and thank them for all they do. Yet, these folks are just the tip of the iceberg. I thank everyone who helped make the HGS the finest local geoscience organization in the world. In addition to the awardees, I thank the current HGS Board: its outgoing members are Vice President David Meaux, Secretary Matt Cowan, Treasurer Christina Higginbotham, Editor Ron Waszczak, and DirectorsJennifer Burton and John Adamick; continuing on are Cecelia Baum Raborn and Gary Coburn as Directors,Donald Walker as your new Treasurer, Patricia Santogrossi as Editor, and of course Martin Cassidy who will take over the reins of this organization. Your Board is a group of dedicated people who are essential to making sure that things stayed on track. I want to thank all the committee chairs for their efforts this year. The committees are the heart and soul of the HGS. It is a rather lengthy list of folks and all play a critically important role to deliver the services that HGS members have come to expect. I thank our office staff: Sandra, who is recognized on page 31; Kathy Sanvido, who filled in for Gabriella as our webmaster; and our new office manager, Nina Hoeny. We couldn't do it without these fine women. And, of course, I must thank my wife for her patience many evenings while I attended meetings or became buried in correspondence. Most importantly, I thank everyone who attended any of our technical programs. We exist to serve the membership and education is one of our main goals. You affirm the success of our mission every time you attend one of our short courses, luncheon or dinner meetings. I must say, it's hard to believe that my term is nearly up. I've enjoyed serving as your President...most of the time anyway. And the time really has flown by. I hope my columns have been modestly entertaining and that any decisions we've made have not offended too many of you. Again, all the successes we enjoyed this year are due entirely to the hard work of the team listed above. Any failures you can lay at my feet. Best of luck to Martin next year, but I know he inherits most of the fine support that I was fortunate to have had. I look forward to continue to serve HGS as a committee chair and a field trip leader. And I trust that I will continue to see many of you at HGS functions. Until then, Rock On. |
| Shout-Outs! It has been my privilege to serve the membership of the HGS this past year as Editor of the monthly issues that comprise this, the 54th volume of our Bulletin. I have endeavored to meet and exceed your expectations and to maintain HGS’ reputation as publisher of a premier magazine for those with interest in the industry-associated Earth science disciplines. Each author and presenter cited below deserves a “shout-out” for providing valued technical sustenance to the readers of the Bulletin and to the audiences at our various group gatherings:
I also extend thanks to those who provided articles on subjects of interest to our readership:
TechnoFest Conference, July 12, and Africa Conference, September 11-12: Preparations are well underway to develop technical programs toward convening these conferences. As each program evolves during the next weeks and months, check the HGS website for listings of speakers and topics. Finally, allow me this parting opportunity to recognize the members of the Editorial Board for their dedication, hard work and support in the production of the HGS Bulletin: thank you Lisa Krueger, Fang Lin, James Ragsdale and Charles Revilla. Moreover, I give my special thanks and sincerest appreciation to Tricia Santogrossi for her past year of service as Editor-elect and for accepting responsibility as our in-coming Editor. Turn. Turn. To everything there is a season.
|
test article to play with.what will this look like on the front page?
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The Wise Report
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In an editorial in the April 18, 2012 Houston Chronicle (http://www.chron.com/default/article/There-s-still-room-to-cut-government-waste-in-3492521.php), Senator Talmadge Heflin, director of the Center for Fiscal Policy at the Texas Public Policy Foundation and Chairman of the Senate Appropriations Committeein 2003, used the TBPG as a waste of taxpayer dollars that should be targeted for sunsetting. Ron Kitchens, Chairman of the TBPG, responded to the editorial to Senator Heflin and the Houston Chronicle via email on April 25, 2012, who pointed out that the TBPG actually brings in more than twice as much revenue to the State of Texas than it spends, so getting rid of the TBPG would actually be a net loss of revenue to the State, not a net savings. Chairman Kitchens also pointed out that “the general public's health and safety is impacted to a great deal by decisions made every day by geoscientists throughout the state, and I feel that assuring that these decisions are made by competent and trained geoscientists is an important service to our citizens.” He also suggested that they meet to discuss this matter.
It appears that we may have another fight on our hands in the next Legislative Session, again. We’ll need to impress on the legislators that we aren’t an expense to the State, but a revenue generator and that we need and deserve a Board of our own. The idea of “getting government off people’s backs” has become very popular over that past few years, but we need to impress upon them that, prior to the instituting of the TBPG (at the request of the Geologic Community of Texas, not some faceless bureaucrat) there were many unqualified persons performing geology and making geologic decisions and recommendations that were affecting the health and welfare of the public that resulted in improper environmental assessments, recommendations and remediation, as well as not taking geology into proper account for a number of building projects (housing, pipelines, drainage, etc.).
The Wise Report
| Due Date | Action |
| May 15 | TCEQ receives e-mails from interested entities, and creates e-mail group for distributing information |
| May 25 | TCEQ sends Word version of methods to participants for review and markup. |
| Jul 16 | Labs submit suggestions and recommendations regarding methods 1005 and 1006 |
| July 26 | TCEQ holds telephone conference live meeting via the web to discuss the changes to be made |
| Aug 9 | TCEQ sends drafts of methods to laboratories for review. |
| Sep 18 | Labs submit comments/concurrence on drafts |
| Oct 16 | TCEQ sends final draft of methods to laboratories for concurrence |
| Nov 15 | Labs send concurrence on the methods |
| Nov 29 | TCEQ submits final methods to executive management for approval |
| Jan 30 | TCEQ publishes approved methods |
The Wise Report
Henry M. Wise, P.G.
March 24, 2012
In 2011 the 82nd Legislature passed Senate Bill (SB) 313 related to priority groundwater management areas (PGMA). The legislature also passed SB 660 related to the review and functions of the Texas Water Development Board (TWDB), including the functions of the board and related entities in connection with the process for establishing and appealing desired future conditions in a groundwater management area. The Texas Commission on Environmental Quality (TCEQ) is proposing amendments to 30 TAC §§293.19, 293.20, 293.22, and 293.23 to meet these new requirements. These sections involve the clarification of the responsibilities of the executive director when he petitions the TCEQ for a Groundwater Conservation District (GCD) in a Priority Groundwater Management Area, records and reporting requirements, noncompliance review and Commission action (to clarify processes relating to TCEQ review of GCD management plan adoption, re-adoption, and implementation compliance), and petitions requesting inquire in Groundwater Management Areas. For more information go to: http://www.sos.state.tx.us/texreg/sos/PROPOSED/30.ENVIRONMENTAL%20QUALITY.html#100for Chapter 3 and http://www.rrc.state.tx.us/rules/prop-5-203-and-206-GAU-section-RRC-March2012.PDFfor Chapter 5.
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The Railroad Commission of Texas (RRC) proposes amendments to16 TAC §§3.9, 3.14, 3.46, 3.79, 3.81, 3.95, 3.96, 3.97, 3.99, and 3.100, relating to disposal wells; plugging; fluid injection into productive reservoirs; definitions; brine mining injection wells; underground storage of liquid or liquefied hydrocarbons in salt formations; underground storage of gas in productive or depleted reservoirs; underground storage of gas in salt formations; cathodic protection wells; and seismic holes and coreholes. In a separate rulemaking, the RRC proposes similar amendments to two rules in Chapter 5 of this title, §§5.203 and 5.206, relating to carbon dioxide. For more information go to: http://www.rrc.state.tx.us/rules/prop-amend-ch3-GAU-section-RRC-March2012.PDF
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The RRC proposes amendments to16 TAC §3.15, relating to surface equipment removal requirements and inactive wells. The proposed amendments implement changes in procedure mandated by are the result of House Bill 3134 (82nd Legislature, Regular Session, 2011). For more information go to: http://www.rrc.state.tx.us/rules/prop-amend-3-15-admin-denial-hearing-procedure-and-fee-March2012.PDF.
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At its open meeting on March 20, 2012, the RRC adopted amendments to §3.30, concerning the Memorandum of Understanding (MOU) between the TCEQand the RRC, to implement Article 2 of House Bill 2694, 82nd Legislature (First Called Session, 2011), which transferred from the TCEQ to the RRC duties relating to the protection of groundwater resources from oil and gas activities. The amendments were adopted with an effective date of May 1, 2012. The adopted amendments will be published in the Friday, April 6, 2012, issue of the Texas Register. The MOU can be found at: https://www.rrc.state.tx.us/rules/adopt-3-30-MOU-TCEQ-and-RRC-March2012.PDF
Henry M. Wise, P.G.
The Wise Report
3/24/2012
| Before I get into the main topic for this month, I want to point out that the 2012 Oil History Symposium will be held here in Houston on March 8, 9, and 10. Put on by the Petroleum History Institute and organized by HGS member Jeff Spencer, this will bea wonderful opportunity to get back to our roots. There will be a full day of talks on Friday, March 9, which will feature a number of old oil fields of the Gulf Coast. Special thanks to the Hess Corporation for use of Hess Tower as the venue. It should be well worth your time to attend this. There is more information elsewhere in this HGS Bulletin. |
| As I sit down to write this column, it is the end of the first week of 2012. West Texas Intermediate Cushing Spot closed the week at$101.56/barrel of oil and Henry Hub Spot closed at $2.87/mmbtu for natural gas. This is an astonishing 35:1 ratio as opposed to the 6:1energy equivalence ratio. Such a large differential is a market inefficiency that can and most certainly will be used to someone's advantage. That advantage will be shared between the companies that can exploit this differential and the consumer. With natural gas prices down around $3/mcf, one has to wonder if any of the dry gas unconventional plays can be economic. Certainly we saw that companies adjusted their development plans last year. The challenge as always is to control costs yet continue to operate in a safe and environmentally responsible manner. The good news is that oil prices are strong and drilling in the liquids rich trends was up substantially as a result. Right now there are parts of the country that, without the economic stimulus being provided by oil and gas activity, would really be hurting. The energy sector is such a critical part of the .S. and world economies; it supplies the energy that keeps the heels turning, provides good jobs to people with a broad range f skills, as well as significant associated activities. It would be nice f politicians and the general public showed a bit more appreciation for our contributions. Shell plans to build a cracking nit somewhere in Appalachia using Marcellus gas and the unions re ecstatic. It's a start. There has been much made of the idea that oil and gas prices are now permanently severed. If we have learned nothing else, we should believe that nothing is permanent. It will, however, take time for the market to make the adjustments that will bring prices back into closer alignment — apparently quite a lot of time. One obvious and much-touted way to increase demand for natural gas is to use it more in the transportation sector. I suggest here that for those who like this idea, and there is much to recommend it, and the EPA may actually be your strongest ally. Big cities like Houston will probably never bring themselves into compliance with clean air standards as long as we must use oil-burning private automobiles as our primary mode of transportation. I submit that it will be easier to change the oil-burning part of this than the private part. This assumes of course that the EPA doesn't kill natural gas on the supply side by outlawing hydraulic fracturing. And while there is no basis in scientific facts to ban fracking, we all know that too often facts have little relevance when politics becomes involved. By the time you read this, we'll be heading out of the darkest part of the winter heating season; and can see where natural gas prices and trends look like. For purely selfish reasons, I'm hoping for prices closer to $4/mcf. Anyway, let's have a little fun! Send me your best guess of what the Henry Hub Spot price for natural gas as reported by Bloomberg will be at close on May 4. Entries will be accepted at steve.hgseditor@gmail.com until March 31. Only one guess per person is allowed. The person who submits the closest value will be my guest at your choice of either the May HGS General Luncheon or Dinner Meeting;. In the event of a tie, the first entry received wins. Good luck! |
| The Energy Information Administration (EIA), the statistical and analytical agency within the U.S. Department of Energy (DOE), is our Nation’s premier source of energy information. EIA’s data, analyses, and forecasts are, by law, independent of approval by any other office or employee of the United States Government. Annually, EIA prepares long-term energy outlooks, looking forward to the next 20 to 25 years. Howard Gruenspecht, Acting Administrator of the EIA, recently discussed the outlook for U.S.and global energy before the U.S. Senate Committee on Energy and Natural Resources. Citing from the EIA report Annual Energy Outlook 2012,Gruenspecht provided these forecasts for the future of energy through 2035. Production: U.S.domestic crude oil production is expected to grow by more than 20 percent over the next 10 years. Continued development of tight oil combined with the development of offshore Gulf of Mexicoresources are projected to push domestic crude oil production to 6.7 million barrels per day in 2020, a level not seen since 1994. Imports: Net petroleum imports would provide a smaller share of U.S.total liquids consumption. Dependence on imported petroleum is expected to decline, primarily as results of: growth in domestic oil production of over 1 million barrels per day by 2020; an increase in biofuel use of over 1 million barrels per day crude oil equivalent by 2024; and only modest growth in transportation sector demand through 2035. Net petroleum imports as a share of total U.S.liquid fuels consumed is projected to drop to 38 percent by 2020 and 36 percent by 2035. Exports: The U.S.is projected to become a net exporter of liquefied natural gas (LNG) in 2016, a net pipeline exporter in 2025, and an overall net exporter of natural gas in 2021. The outlook reflects increased use of LNG in markets outside of North America, strong domestic natural gas production, and low natural gas prices in the U.S.as compared to other global markets. Electric Power: The U.S.electric power sector reliance on coalfired plants would decline due to competition from natural gas and renewable plants, together with the need to comply with new environmental regulations. Over the next 25 years, the projected coal share of overall electricity generation would fall to 39 percent, well below the 49 percent share seen as recently as 2007. The natural gas share of electric power generation would increase from 24 percent by 2010 to 27 percent by 2035. Renewables share of electric power generation would grow from 10 percent to 16 percent over the same period.Overall, the fossil fuel share of U.S.energy consumption is forecast to fall from 83 percent of total energy demand in 2010 to 77 percent of total energy demand in 2035. Globally: Fossil fuels are expected to remain the dominant source of energy worldwide. World oil prices will remain high, liquids consumption will continue to grow, and both conventional and unconventional liquid supplies will be needed to meet rising demand. Natural gas will have the fastest growth rate among the fossil fuels over the next 25 years, where unconventional resources, including tight gas, shale gas, and coal bed methane, are predicted to increase supplies substantially. Renewable energy is projected to be the fastest growing source of primary energy over the next 25 years. The renewable share of total energy used is anticipated to increase from 10 percent in 2008 to 15 percent in 2035. The EIA recognizes that outlooks of future energy markets are highly uncertain and are subject to geopolitical disruptions, technological breakthroughs, long-term trends in economic growth, and the evolution of laws, regulation and resource availability. What says your crystal ball? |
The Wise Report
Henry M. Wise, P.G.
March 18, 2012
The Texas Board of Professional Geoscientists (TBPG) proposes an amendment to 22 TAC §851.29, regarding licensure by endorsement, reciprocal agreement, and reciprocal licensure by similar examination. The proposed amendment would mitigate the barriers to reciprocal licensure of persons licensed in other states and jurisdictions who were licensed under a grandfather provision, provided they meet certain qualifications for licensure.
In a nutshell, this proposal will allow geologists who are grandfathered in other states and practicing for a certain number of years to obtain a Professional Geoscientist license in Texas without having to take any ASBOG exam. There is no provision for other states to do the same thing for Texas PGs.
For more information go to: http://www.sos.state.tx.us/texreg/sos/PROPOSED/22.EXAMINING%20BOARDS.html#81. You have until April 15, 2012 to make comments.
Henry M. Wise, P.G.
The Wise Report
3/18/2012
Heads up on the HGS Guest Night Speaker scheduled for May 19 at the Houston Museum of Natural Science!
She is on a science expedition called 2041 International Antarctic Expedition lead by Robert Swan, famous polar explorer.
As the sole geoscientist on the expedition, Eaton will study geothermal energy, a 24/7 renewable energy source that's independent of the number of hours of sunlight in a day or of the wind speed. As a geoscientist, she will also emphasize the key role that the disciplines of geology and geophysics play in studying climate change in Antarctica and around the world.
On May 19th, Eaton is the keynote speaker for the Houston Geological Society's annual outreach event. Her presentation, entitled "A Geoscientist in Antarctica: Following in Shackleton's Footsteps," will be presented at the IMAX Theatre of the Houston Museum of Natural Science.
You can follow the mission on its website http://expedition.2041.com/ and the facebook page http://www.facebook.com/2041robertswan
Her website is http://susanreaton.com/2012
Susan is sending updates using Twitter and you can follow her at @SusanREaton_Geo.
Here are the dispatches to far :
__________________________________________________________________________________________
MARCH 10
Antarctica: Dispatch Number Eight Brown Bluff, Western Antarctic Peninsula 63° 31' South and 56° 53' West
The IAE 2012 team conducted its final and most challenging team exercise of the expedition on a glacier at Brown Bluff – under the watchful eyes of the mountaineering leaders, IAE 2012 groups comprised of roughly eight climbers navigated a glacier dissected by crevasses. Large boulders have toppled from Brown Bluff to the beach where they have been sculpted by wind, sand, ice and water
Roped together and working collaboratively, the groups’ strengths represented the sum of their diverse and unique members. Working together during the past two weeks – both in Ushuaia and the hostile Antarctic climate – had fostered trust and respect in each other, enabling team members to confront the unknown together. It’s hard to believe that – prior to the IAE 2012 – a large percentage of the team members had never experienced snow.
Geologically speaking, Brown Bluff was simply fascinating; the towering bluffs were the result of an explosive volcanic eruption under ice. I've never seen anything quite like Brown Bluff during my entire geological career. For the geoscience crowd, I've included an abstract from a 1997 article written by I.P. Skilling which aptly describes the geological genesis of Brown Bluff.
I.P. Skilling, 1997, Evolution of an englacial volcano: Brown Bluff, Antarctica; Bulletin of Volcanology, Volume 56, Numbers 6-7, Pages 573-591. Abstract -- Marine shallow-water to emergent volcanoes have been described in detail, but comparable englacial centres are not well documented. Brown Bluff is a Pleistocene, shallow water, alkali basaltic volcano whose deposits were ponded within an englacial lake, enclosed by ice >400 m thick. Its evolution is divided chronologically into pillow volcano, hyalotuff cone, slope failure and hyaloclastite delta/subaerial stages. Seventeen lithofacies and five structural units (A-E) are recognised and described. The pillow volcano stage (Unit A) is similar to those of many submarine seamount volcanoes. It comprises extrusive and intrusive pillow lavas draped by slumped hyaloclastite. Units B and D define the hyalotuff cone stage, which was centred on a summit vent(s), and comprises slumped, poorly sorted hyalotuffs redeposited downslope by sediment gravity flows and ponded against an ice barrier. This stage also includes water-cooled subaerial lavas and massive hyalotuffs ponded within a crater. Cone construction was interrupted by drainage of the lake and slope failure of the northeast flank, represented by debris avalanche-type deposits (Unit C). Unit E represents the youngest stage and consists of a Gilbert-type hyaloclastite delta(s), which prograded away from a summit vent(s), and compound subaerial lavas. A second drainage episode allowed subaerial lavas to accumulate in the surrounding trough.
MARCH 9
Antarctica: Dispatch Number Seven 62° 13' South and 58° 49' West
Celebrating International Women’s Day (IWD) in AntarcticaIWD celebrates the economic, political and social achievements of women past, present and future. Several women took part in 2041’s International Antarctic Expedition (IAE) 2012. Susan R. Eaton and Angela Shaw, a Canadian who works for Shell in London, England, hold the Canadian flag.
I was both honoured and thrilled to celebrate International Women's Day (IWD) on March 8 with the 50-plus women participating in 2041’s International Antarctic Expedition (IAE) 2012. One hundred years ago, Sir Ernest Shackleton explored Antarctica because it was there, and because it was unclaimed by any nation. Today, Antarctica remains unclaimed by any nation, and belongs to the citizens of the world.
What a difference a hundred years makes on so many fronts – seventy percent of the IAE 2012’s team of explorers was female, originating from all parts of the planet, from both developed and developing nations. Culturally diverse and speaking a multitude of languages, the women forged a common bond amidst the harsh backdrop of Antarctica. As women and global citizens, we travelled to the Bottom of the World to study climate change, renewable energy and global sustainability issues. During our journey of exploration and discovery, we determined that the issues facing our respective nations are very similar, and that education and awareness of global sustainability issues will lead to societal change.
Comprised of 72 people from 22 nations, the IAE 2012 Team included 14 women from the United Arab Emirates (UAE). The IAE 2012 Team also included Zeena Al Towayya, the first Omani woman to travel to Antarctica. Al Towayya is an IT professional affiliated with the Caledonian College of Engineering in the Sultanate of Oman. The IAE 2012 Team also included another first – Sahar Al Shamrani, the first woman from Saudi Arabia to travel to Antarctica. Al Shamrani lives in Dubai where she produces in the morning show called “Good Morning Fellow Arabs” for MBC.
“By going to the southern hemisphere I am sending a message to all Arab women that nothing is impossible and also show the world what Saudis are capable of,” said Al Shamrani in an interview prior to departing for Antarctica
The women from the Middle East were no shrinking violets – they camped overnight on the ice, hiked up mountains and across glaciers,
The Wise Report
Henry M. Wise, P.G.
March 11, 2012
The Texas Board of Professional Geoscientists (TBPG) has published it’s official Advisory Opinion - AOR #7 (2011)in the Texas Register:
What geoscientific work is exempt from licensure requirements under Texas Occupations Code §1002.252 (3)? This section states that: "geoscientific work performed exclusively in exploring for and developing oil, gas, or other energy resources, base metals, or precious or nonprecious minerals, including sand, gravel, or aggregate, if the work is done in and for the benefit of private industry" are activities that do not require a license under this chapter.
The Board has had questions for many years concerning the intent of the word "exclusively" and the phrase "for the benefit of private industry" that is included in the above cited section of the Texas Geoscience Practice Act (Act). The Board has attempted to determine if this word and this phrase were included in the statute with the intent that some oil and gas activities would not be exempt from the requirements of the Act. For example, is geoscientific interpretation presented for the sole purpose of securing financing from the public exclusively part of the exploration and development process? Could the fact that the benefits of oil and gas exploration are not exclusively for the benefit of private industry since the public also benefits in the form of severance tax paid to the state be a cause to require a license? These are the types of questions that have been posed to the Board in the form of inquiries and complaints over the years.
The Board has had an ad-hoc Legal Interpretation Committee explore the question and this activity did not conclusively resolve the issue. The Board also encouraged the development of an advisory workgroup to involve the oil and gas community to assist with answering the issue. Attempts were made to secure wide participation in the workgroup, and included liaison representatives with involvement in the Houston Geological Society, the American Association of Petroleum Geologists, and the Society of Independent Professional Earth Scientists. Over a period of more than a year, the workgroup met and finally petitioned the Board with a rule proposal that would define that certain activities involving oil and gas exploration and development would not be exempt. All members of the workgroup had ample and equal opportunity to provide input to the rule proposal. The workgroup members felt that the issue should be made available to a broader audience for further review.
The Board finally agreed to publish the rule proposal for the purpose of receiving more widespread public input to help with the determination of exemption applicability but only if certified by legal counsel that the proposal was within the Board's authority to adopt. Based on the subsequent overwhelming public opinion against adoption of the proposal, and legislative intent brought to the attention of the Board, the Board has withdrawn the proposed rulemaking.
SUMMARY
It is the opinion of the Board that those who engage in the work performed in the exploration for and development of oil, gas, or other energy resources, base metals, or precious, or nonprecious minerals, including sand, gravel, or aggregate, are not required to be licensed under the Texas Geoscience Practice Act.
Henry M. Wise, P.G.
The Wise Report
3/11/2012
HGS President's Column March 2012
by Steve Earle
Before I get into the main topic for this month, I want to point out that the 2012 Oil History Symposium will be held here in Houston on March 8, 9, and 10. Put on by the Petroleum History Institute and organized by HGS member Jeff Spencer, this will bea wonderful opportunity to get back to our roots. There will be a full day of talks on Friday, March 9, which will feature a number of old oil fields of the Gulf Coast. Special thanks to the Hess Corporation for use of Hess Tower as the venue. It should be well worth your time to attend this. There is more information elsewhere in this HGS Bulletin.
As I sit down to write this column, it is the end of the first week of 2012. West Texas Intermediate Cushing Spot closed the week at$101.56/barrel of oil and Henry Hub Spot closed at $2.87/mmbtu for natural gas. This is an astonishing 35:1 ratio as opposed to the 6:1energy equivalence ratio. Such a large differential is a market inefficiency that can and most certainly will be used to someone's advantage. That advantage will be shared between the companies that can exploit this differential and the consumer.
With natural gas prices down around $3/mcf, one has to wonder if any of the dry gas unconventional plays can be economic. Certainly we saw that companies adjusted their development plans last year. The challenge as always is to control costs yet continue to operate in a safe and environmentally responsible manner. The good news is that oil prices are strong and drilling in the liquids rich trends was up substantially as a result. Right now there are parts of the country that, without the economic stimulus being provided by oil and gas activity, would really be hurting. The energy sector is such a critical part of the .S. and world economies; it supplies the energy that keeps the heels turning, provides good jobs to people with a broad range f skills, as well as significant associated activities. It would be nice f politicians and the general public showed a bit more appreciation for our contributions. Shell plans to build a cracking nit somewhere in Appalachia using Marcellus gas and the unions re ecstatic. It's a start.
There has been much made of the idea that oil and gas prices are now permanently severed. If we have learned nothing else, we should believe that nothing is permanent. It will, however, take time for the market to make the adjustments that will bring prices back into closer alignment — apparently quite a lot of time. One obvious and much-touted way to increase demand for natural gas is to use it more in the transportation sector. I suggest here that for those who like this idea, and there is much to recommend it, and the EPA may actually be your strongest ally. Big cities like Houston will probably never bring themselves into compliance with clean air standards as long as
we must use oil-burning private automobiles as our primary mode of transportation.
I submit that it will be easier to change the oil-burning part of this than the private part. This assumes of course that the EPA doesn't kill natural gas on the supply side by outlawing hydraulic fracturing. And while there is no basis in scientific facts to ban fracking, we all know that too often facts have little relevance when politics becomes involved.
By the time you read this, we'll be heading out of the darkest part of the winter heating season; and can see where natural gas prices and trends look like. For purely selfish reasons, I'm hoping for prices closer to $4/mcf.
Anyway, let's have a little fun! Send me your best guess of what the Henry Hub Spot price for natural gas as reported by Bloomberg will be at close on May 4. Entries will be accepted at steve.hgseditor@gmail.com until March 31. Only one guess per person is allowed. The person who submits the closest value will be my guest at your choice of either the May HGS General Luncheon or Dinner Meeting;. In the event of a tie, the first entry received wins. Good luck!
Bulletin Editor's Column- March 2012
by Ron Waszczak
The Energy Information Administration (EIA), the statistical and analytical agency within the U.S. Department of Energy (DOE), is our Nation’s premier source of energy information. EIA’s data, analyses, and forecasts are, by law, independent of approval by any other office or employee of the United States Government.
Annually, EIA prepares long-term energy outlooks, looking forward to the next 20 to 25 years. Howard Gruenspecht, Acting Administrator of the EIA, recently discussed the outlook for U.S.and global energy before the U.S. Senate Committee on Energy and Natural Resources. Citing from the EIA
report Annual Energy Outlook 2012,Gruenspecht provided these forecasts for the future of energy through 2035.
Production: U.S.domestic crude oil production is expected to grow by more than 20 percent over the next 10 years. Continued development of tight oil combined with the development of offshore Gulf of Mexicoresources are projected to push domestic crude oil production to 6.7 million barrels per day in 2020, a level not seen since 1994.
Imports:Net petroleum imports would provide a smaller share of U.S.total liquids consumption. Dependence on imported petroleum is expected to decline, primarily as results of: growth in domestic oil production of over 1 million barrels per day by 2020; an increase in biofuel use of over 1 million barrels per day crude oil equivalent by 2024; and only modest growth in transportation sector demand through 2035. Net petroleum imports as a share of total U.S.liquid fuels consumed is projected to drop to 38 percent by 2020 and 36 percent by 2035.
Exports: The U.S.is projected to become a net exporter of liquefied natural gas (LNG) in 2016, a net pipeline exporter in 2025, and an overall net exporter of natural gas in 2021. The outlook reflects increased use of LNG in markets outside of North America, strong domestic natural gas production, and low natural gas prices in the
U.S.as compared to other global markets.
Electric Power: The U.S.electric power sector reliance on coalfired plants would decline due to competition from natural gas and renewable plants, together with the need to comply with new environmental regulations. Over the next 25 years, the projected coal share of overall electricity generation would fall to 39 percent, well below the 49 percent share seen as recently as 2007. The natural gas share of electric power generation would increase from 24 percent by 2010 to 27 percent by 2035. Renewables share of electric power generation would grow from 10 percent to 16 percent over the same period.Overall, the fossil fuel share of U.S.energy consumption is forecast to fall from 83 percent of total energy demand in 2010 to 77 percent of total energy demand in 2035.
Globally: Fossil fuels are expected to remain the dominant source of energy worldwide. World oil prices will remain high, liquids consumption will continue to grow, and both conventional and unconventional liquid supplies will be needed to meet rising demand. Natural gas will have the fastest growth rate among the fossil fuels over the next 25 years, where unconventional resources, including tight gas, shale gas, and coal bed methane, are predicted to increase supplies substantially. Renewable energy is projected to be the fastest growing source of primary energy over the next 25 years. The renewable share of total energy used is anticipated to increase from 10 percent in 2008 to 15 percent in 2035.
The EIA recognizes that outlooks of future energy markets are highly uncertain and are subject to geopolitical disruptions, technological breakthroughs, long-term trends in economic growth, and the evolution of laws, regulation and resource availability. What says your crystal ball?
Click here to download PDF of the March 2012 Bulletin
The Wise Report
Henry M. Wise, P.G.
February 18, 2012
The Texas Board of Professional Geoscientists (TBPG) met on Friday, February 17, 2012. Highlights of this meeting are:
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The Texas Commission on Environmental Quality (TCEQ) will hold a public hearing on proposed rules regarding the use of a Class I well for disposal of certain wastes through underground injection into a bedded salt formation in Austin on March 20, 2012, at 10:00 a.m. in Building E, Room 201S, at the TCEQ's central office located at 12100 Park 35 Circle.
Henry M. Wise, P.G.
The Wise Report
2/18/2012
Click here to download PDF of the February 2012 Bulletin
Most geologists have a natural wanderlust to see new places and different rocks. Imagine the thrill of exploring this planet’s last frontier - Antarctica - and doing this partially underwater! This year, the annual Guest Night event will feature Susan R. Eaton who will take us on a journey to the Bottom of the World, sharing her experiences of two Antarctic expeditions. Susan's multi-media presentation is entitled “A Geoscientist in Antarctica: Following in Shackleton's Footsteps One Hundred Years Later.”
Susan's first Antarctic adventure was in 2010, as part of the Elysium Visual Epic Expedition which followed Sir Ernest Shackleton’s route to Antarctica and South Georgia – 100 years later. Elysium's mission was to scout, record and analyze this pristine wilderness of ice and snow, and create a visual library – both above and below the water – documenting the impacts of climate change. One of two expedition geoscientists, Susan joined Elysium's science team, lecturing on the geology and plate tectonics of Antarctica and assisting with oceanographic field studies.
As an extreme snorkeler, Susan investigated Antarctica in -2◦C waters, coming face-to-mask with leopard seals, top predators of the Southern Ocean. During the Elysium Expedition, Susan blogged to the AAPG and other geoscience organizations. Since her return from Antarctica, she's delivered ten public presentations and has published a dozen articles on Elysium's findings, including two articles for AAPG Explorer Magazine. Through her outreach educational activities, Susan conveys her passion for science and exploration, encouraging K-12 and university students to follow their dreams.
Susan’s next Antarctic expedition is happening as you read this! The 2012 International Antarctic Expedition and Leadership on the Edge Program travels to Antarctica from February 27 to March 12, studying climate change, renewable energy and global sustainability issues. It's hoped that the HGS can sponsor part of Susan’s work on this expedition, and that we can get progress reports (blogs) from Antarctica. The HGS will be one of the first groups that will hear Susan present her findings and pictures from this trip!
An Antarctic explorer-in-the-making, Susan will participate in a third expedition planned for December 27, 2012 to January 20, 2013. Organized by the Jackson School of Geosciences (University of Texas at Austin), the expedition is part of the 125thanniversary of the Geological Society of America. Entitled “Antarctica and the Scotia Arc: Tectonic, Climate and Life,” the expedition will study the Falkland Islands, South Georgia and the Western Antarctic Peninsula.
Susan is a professional geologist and geophysicist. She's developed a successful career in the Canadian energy sector, attaining the position of Vice President of Exploration in several junior oil and gas companies. Susan currently consults to the Canadian, American and international petroleum and financial sectors on exploration and production, technology innovation, and mergers and acquisitions. Equipped with a degree in journalism, she's been a reporter for CBC-TV. As a freelance writer, Susan successfully blends her scientific and journalistic skills to present engaging reports on business, science and technology, oil and gas, renewable energy, the environment and ecotourism.
Studies of Antarctica provide a useful window into the impacts of climate change -- as geologists, we know it is the norm not the exception that the climate changes. We hope that these Antarctic studies may not only provide images of what to expect but also insights on how to adapt to these changes.
Guest Night will be held at the Houston Museum of Natural Science on Saturday, May 19th. Doors open at 5:45 for the buffet dinner and cash bar. At 7:30 we move into the IMAX theater to recognize the both our Science Fair winners and our sponsors. Then we will hear Susan R. Eaton’s talk with her stunning images and videos. After a short break, we return to see a special IMAX movie (title cannot be disclosed yet). Bring your friends and family as this is a wonderful night for all ages. Registration is only available on-line (mid-April 2012) and the deadline is Noon, Monday, May 14. Sign up early as this is sure to sell out.
Click here to go to the HGS Guest Night Registration page.
Icebergs etched by the seas near the Western Antarctic Peninsula – how will climate change affect us? Credit: Photo courtesy of www.susanreaton.com
February Editor’s column
Exporting North America’s Natural Gas
By Ron Waszczak, HGS Bulletin Editor
During very recent months, several headlines in the business news grabbed my attention, and further reading the associated columns left me astounded. Here are a few of the headlines that impressed and surprised me: “Pipeline may reverse flow to move shale gas”. “Marcellus shale gas may soon be exported – to California”. “Pipeline reversals seen to result in a single price for natural gas”. Moreover, there were these headlines regarding liquefied natural gas (LNG) that confounded me: “LNG exports from northern America: When, not if” and “LNG terminal plans reverse from importing to exporting gas”. The later two stunning headlines challenged a long accepted tenet of our time, i.e. the United States meets energy needs through imports. Indeed, it has long been a fact that over 60% of the oil utilized and consumed in the U.S. is imported from other countries. But now, are the upstream natural gas industry and its downstream de-gas and re-gas partners beginning to lead the U.S. out of the energy dependence paradigm?
The emergence of plans to export LNG from North America follows the dramatic rise in North America's proven gas reserves over the past few years. Current estimates for recoverable gas in the United States exceed 2.5 quadrillion cubic feet. This is more than double the estimate of 1.1 quadrillion cubic feet in 1995. Recent shale gas discoveries in British Columbia have pushed estimates for recoverable reserves in Canada to more than 1.0 quadrillion cubic feet.
These events contributed to that change: bringing on-line the production of huge newly-discovered reserves of unconventional natural gas; technological advancements in production, particularly directional drilling and hydraulic fracking; and commercialization of compression and transportation methods that allow LNG to be moved around the world oceans.
Additionally, rapidly growing gas reserves have been met with slow and slowing demand for gas. Coincident with that circumstance, underutilized LNG infrastructure — built to manage once-predicted LNG imports which never largely materialized — became assets looking for new uses, e.g. LNG exports. Owners of stranded gas and stranded infrastructure are together now searching for fertile ground in their mutual quest to develop LNG import markets overseas.
Existing U.S. LNG terminals are at Sabine, Lake Charles and Hackberry, LA; Sabine Pass and Freeport, TX; Pascagoula, MS; the Gulf of Mexico; offshore Boston, MA; Cove Point, MD; and Elba Island, GA. Existing Canada LNG terminals are at Saint John, NB and Rivière-du-Loup and Quebec City, QC. Existing Mexico LNG terminals are at North Altamira, Tamulipas, and Baja California with a terminal at Manzanillo slated for construction. Other terminals slated for construction are at Corpus Christi, Freeport and Port Lavaca, TX; offshore Florida; Logan Township, NJ, Baltimore, MD, Long Island Sound, NY and Coos Bay, OR; and Prince Rupert Island and along British Columbia's West Coast.
A global market is emerging for North American LNG exports to overseas destinations where buyers are seeking alternatives to oil and coal. It is predicted that demand from Asia and Europe will drive most worldwide natural gas export flows. Albeit, LNG exports will need to complete with other gas suppliers which include intra-continental pipeline gas. Ultimately, global and regional gas pricing will become the dominant force behind LNG bidirectional cargo movements.
While these changes that could lead the U.S. out of the energy dependence paradigm came seemingly rapidly, I am not certain that thoughtful due-diligence has been devoted to some critical questions. Questions that I hope strategy and policy makers have explored are: What are the implications for U.S. energy security of exporting North America’s natural gas? Are there sound land and sea security and safety standards for LNG terminals and ships? Will exports affect our national and regional economies? Perhaps most importantly: Have our federal, state and municipal governments created incentives for new domestic uses and increased domestic demand for natural gas? Why not use North America’s clean-burning natural gas to fuel North America’s power-generation plants, trains, trucks, buses, and automobiles?
President’s Letter for February
By Steve Earle
Let’s Load Up Our Plate
I've spent much ink on these pages to talk about the new unconventional plays. Indeed, we have the Applied Geoscience Mudstone Conference scheduled this month and I hope you have signed up. This conference is the ultimate venue in which to learn about cutting edge geoscience technology in shale plays. I want to recognize Frank Walles' fantastic Conference Committee who include Bruce Martin, Dave Tonner, Jim Schuelke, Bruce Hart, Kathy McDonald, Mike Cameron, Mike Van Horn, Randy Lafollette, Rachel Osmos, Steve Macalello and Simon Hughes. Thanks to this outstanding group.
Unconventional plays are new, hot and exciting, and truly a critical part of our energy portfolio going forward. Ignore them at your peril. However, this month I'd like to examine what the role of conventional exploration might be in our energy mix. I’m going to argue that conventional plays still matter. Here’s why.
Majors’ exploration for and development of giant fields in the deepwater and other remote areas is necessary in order for them to continue in the style to which they have become accustomed. The size of the majors simply requires that they find these large reserves to replace their production. And new giants are more likely to be discovered in areas that were not accessible before. So while deepwater trends are one important area that has blossomed, the Arctic is another area that shows big promise. Once it became apparent that unconventional reserves also held significant quantities of hydrocarbons, the majors took notice and are buying their way in. In my mind though, remote areas are a better fit for major oil companies because the competition will be less due to the large upfront costs and long startup times required, elements which exclude most independents who don't have deep pockets.
The technology required to access these remote areas is just incredible. Consider a recent article about a new deepwater record set by Shell Oil. Their Tobago Field development well, tied into the Perdido Platform in the Deepwater Gulf of Mexico, is the deepest subsea completion at 9,627 feet water depth. Perdido holds the current record for water depth of a production platform at about 8000 feet. Perdido can handle up to 100,000 barrels of oil and 200 million cubic feet of gas production a day from the Tobago, Silvertip and Great White fields. These are significant reserves and it is really too bad that a story like this does not get the broader press coverage it probably deserves. In many ways, deepwater exploration is a modern-day equivalent to the space program in terms of the technological innovation required to work in these extreme environments.
The large upfront costs required to develop these giant discoveries means that companies are willing to invest considerable effort in reservoir simulation studies that require information ssuch as detailed seismic mapping, descriptions of the reservoir from cores and geological facies models that integrate the two. Shell's Upstream Americas Director, Marvin Odum, said, “Shell has applied its advanced seismic and drilling technologies at Perdido to produce additional sources of oil and gas.” This speaks to the important role that geoscientists have in both exploration for and development of these frontier discoveries.
Beyond the search for giants though, there is still plenty of running room for conventional plays in more mature areas. While individual prospects will probably be more modest in size, they should be very attractive for smaller operators. With majors chasing giants and most everyone rushing into shales and other unconventional plays, many of these traditional prospects will enjoy significant advantages such as reduced competition in the current environment, relatively low costs assuming minimal overlap with unconventional plays, ready access to infrastructure generally already in place so projects come online quickly, and quick payouts given success.
While the chances of success are significantly less than for unconventional plays, the costs can be significantly lower and successful wells typically have much better returns. There should be some real opportunities for small to moderate-sized companies with capital to test some very good conventional prospects. The NAPE prospect expo this month should be a good place to check the quality of such prospects currently on the market.
Given the scope of the unconventional resource, their development ties up tremendous amounts of capital in terms of cash, steel and manpower. The pursuit seems to have squeezed out most mature, conventional prospect generation to the dismay of many. I will point out that there are advantages to being counter-cyclical and companies that chase these mature plays largely “fly under the radar.” I think the successful companies that adopt this strategy may realize above average returns.
For all these reasons, I believe that conventional exploration should continue to be relevant for a long time. Given the sheer volume of the worldwide energy consumption, I would agree with Scott Tinker that we will need to pursue every available avenue if we hope to supply this demand.
So I say, no matter whether you work on conventional or unconventional plays, “Let's get out there and find some grease!”
Photos from the January 16 Legends of Unconventional meeting.
Featuring Dan Steward, Mike Johnson, Gregg Robertson and Bill Zagorski with HGS leaders President Steve Earle and moderator Charles Sternbach.
see the photo album on the HGS albums site at ALBUM online photo album
here are some highlights
Legend of Unconventional speakers
David Curtiss Steve Earle Paul Weimer and Charles Sternbach
steve Earle Larry Spears Claudia Ludwig and Richard Howe
Mike Johnson
Dan Steward
Bill Zagorski
Gregg Robertson
Houston Energy Day will be Oct 20 2012. Energy Day is a free, family-friendly festival on Saturday, October 20, 2012 that celebrates and highlights the importance of energy in our daily lives. This day-long festival takes place at Hermann Square in front of City Hall in Downtown Houston, Texas. There will be energy exhibits, live music, food, contests and fun for all ages. In 2011, the first annual Energy Day attracted more than 12,000 attendees. Great Website at http://energydayfestival.org/about/