Title: NATIONAL OVERVIEW
1NATIONAL OVERVIEW
- Presented by
- Joseph Leimkuhler
- National President - AADE
2Thank You
2009 AADE National Technical Conference Nicole
Baird Chair - Shell Houston Mike Guarisco
Lisa Grant Shell New Orleans Paul Vining MI
Drilling Fluids Benny Manuel Knight Oil Tools
Lafayette Chapter Hoss Smith Knight Oil Tools
Dallas Chapter David De Lao Chesapeake,
Keynotes Plenary Exhibitors Baker/Hughes,
Downhole Devices, NOV-Reed Hycalog, CORT,
Schlumberger, Fann, Wild Well Control, WearSox,
DrilQuip, Vibration Technologies, Knighthawk
Engineering, Grace Inst Co, MD-Totco LSU,
Navigate Energy Services, Vortex Ventures,
NewPark Drlg Fluids, MI-Proceedings Volunteers
Session Moderators
3AADE Background
- We are a non-profit (IRS 501-6C), volunteer
organization founded in New Orleans in 1978. We
are over 30 years old! - Formation of the AADE was based on the fact that
no existing drilling industry organization was
consistently providing technical exchange
specifically for Drilling Engineers.
4AADE Mission-Vision-Values
Mission To provide the forum for the
dissemination of practical drilling technology to
those employed in the
drilling industry.
or interested
VisionTo be a leading forum for the
dissemination and interchange of drilling
practices and technology.
ValuesTo promote professionalism and respect
within the drilling industry, the community, and
the environment in which it co-exists.
5Are we meeting our Mission?
We are meeting the mission of providing a forum
for the dissemination of drilling technology to
those employed in the industry.
We are also fulfilling our mission of
dissemination of drilling technology to those
interested in the industry
6AADE Membership Breakdown
Over 75 of our membership is in Texas /Gulf
Coast
Texas 62,
15 Student Membership
Louisiana 16
7AADE Current Status
- Technical Forums and National Conferences are
meeting the needs of our members and mission. - This is the 1st AADE National Conference held
outside of Houston. - Support of Education is increasing interest in
Drilling related careers - 250,000 in AADE Scholarships in 2008
- 380,000 in University Education Support in
2008 - AADE Funded Well Control Training, 150 to date.
- Knowledge Box Associated Programs for Primary
Secondary Education. - Not too bad for a Volunteer Organization!
8AADE Critical Analysis - SWOT
- AADE STRENGTHS
- Chapter meetings and technical conferences,
are meeting the overall mission of the AADE,
facilitating the exchange of practical drilling
technology and practices to those employed or
interested in the drilling industry - We have dedicated officers at both the
National and local level who are focused on
advancing the aims of the organization. - Our organization has strong support from the
Oil and Gas Service companies. - We have a strong nucleus of experienced
members across all aspects of the Drilling
industry. - We have a well established network of Chapters
and an expanding Student Section program.
9AADE Critical Analysis - SWOT
- AADE WEAKNESSES
- We are a volunteer organization with no paid
professional staff, - High Low Industry Activity results in
challenges for officers and members to find time
to devote to AADE activities and planning. - Under the current National Leadership our
vision/goals, at times, exceeds or capacity to
execute and deliver. - Our balance between Operator and Service
company members is too heavy on the service
company membership relative to operator staff
participation. - Our vision to be/remain a leading forum for
the dissemination and interchange of drilling
practices and technology is compromised to due
the relative inactivity of Operator staff. - Our active membership is dominated by staff
with 15 years of experience. - Organizational impact and activity
(Scholarships, Knowledge Box, Student Section
Support) is not well publicized beyond AADE.
10AADE Critical Analysis - SWOT
- OPPORTUNITIES
- Greater service/utility to our members find
our unique niche and exploit our strengths. IMHO
we should focus on the operational execution of
the drilling process both from an HSE as well as
efficiency standpoint. - Publicize our events and activities better.
- Increase Upward Feedback from membership to
Chapter and Local Leadership - Enhance the website job postings? HSE
information exchange? Information request
message boards? - Increased media presence by AADE
officers/members advocate on behalf of our
industry. Sponsor/prepare drilling industry
responses to FAQ to project portray our
organization and industry in a truthful positive
light.
11AADE Critical Analysis - SWOT
- THREATS
- Current Organizational demographics (Chapter
level) could limit the long term growth of AADE
we are not doing enough to enroll, mentor or
attract the new wave of young drilling staff. - Public perception of Drilling activity, (the
HSE record, impact on the environment, and impact
to the economy) is distorted and not based on
actual performance, real data, or positive
personal experiences.
12AADE What do we need to grow?
JML Opinion We are not a competitor to SPE
nor IADC.
- There is a gap between SPE IADC Operational
Efficiency Excellence
When All three communities work effectively
together on a project.magic happens!
13AADE What do we need to grow?
JML Opinion We are not a competitor to SPE
nor IADC.
- There is a gap between SPE IADC Operational
Efficiency Excellence
- If AADE fills that gap will Operator
Participation Increase? Yes - People take action based on what they see as
possible..
- We need a stable business climateto continue as
a volunteer organization. - Unprecedented Oil Price Increases Unsustainable
Growth - Unprecedented Oil Price Collapse A return to
layoffs Boom Bust? - Are we there?
14Are we in another Boom/Bust Cycle?
- We need a stable business climateto continue as
a volunteer organization. - Unprecedented Oil Price Increases Unsustainable
Growth - Unprecedented Oil Price Collapse A return to
layoffs Boom Bust? - Are we there?
15Are we in another Boom/Bust Cycle?
- We need a stable business climateto continue as
a volunteer organization. - Unprecedented Oil Price Increases Unsustainable
Growth - Unprecedented Oil Price Collapse A return to
layoffs Boom Bust? - Are we there?
NO, once world economic activity resumes sanity
returns 70/Bbl
2007 to 2009 Speculation Oil
2000 to 2007 No Easy Oil
- Increasing Demand from Developing Countries
- OPEC Conventional Oil can not meet Demand
- Investment Firms Speculation Drives Price
- 60-70 of Oil Futures Contracts held by
Speculators - Oil Gas Commodity Market Grows 13 to 300 Bln.
- 27 bbls traded for each bbl delivered
- Who were the major players in oil/energy futures
contracts..Enron, Lehman Bros, AIG, Morgan
Stanley. - Commodities bubble bursts with market collapse
16Look into the Future Meeting the energy
challenge, Shells 3 Hard Truths
150 x 67 ?
Ans 100
HARD TRUTH 1 This will lead to a growth in
energy consumption of up to 50
Conventional Oil Gas Reservoirs Declines _at_ 7
p.a.
HARD TRUTH 2 Easy oil (traditional
development) will not meet the demand future
resources will be difficult to find and extract
HARD TRUTH 3 CO2 emissions are rising even
faster than demand for energy
Bottom Line Oil Gas Development will grow not
decline in the next 40 yrs
Technology Innovation Unconventional
resources Alternative energy CO2 management
17AADE What do we need to grow?
- Find Our Niche JML Opinion We are not a
competitor to SPE nor IADC.
- There is a gap between SPE IADC Operational
Efficiency Excellence - If AADE fills that gap will Operator
Participation Increase? Yes - People take action based on what they see as
possible..
- We need a stable business climateto continue as
a volunteer organization. - Unprecedented Oil Price Increases Unsustainable
Growth - Unprecedented Oil Price Collapse A return to
layoffs Boom Bust? - Are we there? NO This is not an oil bust but
a financial/speculation bust. - Oil is likely to return to 60-70 /bbl with
decreased supply (OPEC) and any sign of economic
growth. - Even with unprecedented growth in renewable
energy and conservation conventional oil and gas
demand will stay at current levels or even
increase.
18AADE What do we need to grow?
- Find Our Niche JML Opinion We are not a
competitor to SPE nor IADC.
- There is a gap between SPE IADC Operational
Efficiency Excellence - If AADE fills that gap will Operator
Participation Increase? Yes - People take action based on what they see as
possible..
- We need a stable business climateto continue as
a volunteer organization. - When the industry is stressed by excessive
expansion or contraction it is difficult for
Volunteer organizations to operate.
- We need to focus our limited resources.time
on the next generation of Drilling technical
professionals. - Student Sections vs other education
initiativescan we continue to do both - Decided on a chapter basis
- JML Opinion Focus more on student sections,
less on Knowledge Box other education
initiatives.
19Whats the Future of AADE?
- Continue to meet the needs of our members via
- Chapter and National Technical meetings
Conferences. - Industry Networking/Social events
- Support of Student AADE Sections
- Continue to provide the forum for the
dissemination of practical drilling
technology.. operational excellence. - Promote the development of oil gas in the
community via education programs/initiatives
student section support. - Dispel the common myths about our industry.
- Grow the business by highlighting long term
career opportunities across the Operator/Service
Company sector. -
The future of AADE is bright, we have achieved a
great deal, however.. WE ARE A VOLUNTEER
ORGANIZATION, and will continue to thrive as long
as the VOLUNTER base is sustained.
20Questions?Comments?