AADE NEW ORLEANS CHAPTER SEPTEMBER 2, 2004

1
AADE NEW ORLEANS CHAPTERSEPTEMBER 2, 2004

• General Info / Updates
• 2005 AADE Drilling Conference and Exhibition
• Education Public AwarenessSeparating Fact
  from Fiction in Oil Gas EP Operations the
  Role of AADE

2
General Info / Updates

• 8th Annual Sporting Clays Tournament
• October 29th at Tallow Creek Contact Traci
  Stubbs
• for Info- 504-593-6760
• David Kamolsiri
• AADE donation to memorial fund.
• National Board Meeting Update
• Knowledge Box National Strategy in draft.
• Next Meeting Date
• October 7th

3
(No Transcript)
4
2005 AADE Drilling Conference and Exhibition

• AADE Student Sponsorship
• Limited to 2-3 per University
• Selection by Professors
• Targeted students in good academic standing
• Selected students had to be seniors or performing
  graduate work
• Student must prepare and present work on an
  approved topic
• Free registration
• Travel reimbursement
• Hotel and food accommodations

5
2005 AADE Drilling Conference and Exhibition

• Third National conference goal is to foster
• broad operator and service company exchange of
  technology and industry trends
• sharing of best practices and current technology
  limits
• Networking

6
2005 AADE Drilling Conference and Exhibition

• Focus of the conference
• Truly make it a national conference by
  attracting
• Quality technical papers from all chapters within
  the AADE organization
• Good representation from every AADE chapter
• Expand the University Program
• 28 Universities have been invited to participate
  in the poster session (up from 9 that
  participated in the 2003 conference)

7

• Wyndham Greenspoint Hotel
• Houston, Texas
• April 5 - 7, 2005
• The AADE 2005 National Technical Conference
  Steering Committee requests your
• Attendance at the conference
• Participation
• Sponsorship of students
• Exhibitions (contact Wayne
• Bryant at 281-922-7093)
• For more information and to Register, visit
  www.aade.org and click on the 2005 Conference Tab

8
Education Public Awareness Separating Fact
from Fiction in Oil Gas EP Operations the
Role of AADE
J M Leimkuhler President AADE New Orleans
Chapter
9
ValuesTo promote professionalism and respect
within the drilling industry, the community, and
the environment in which it co-exists.
AMERICAN ASSOCIATION of DRILLING ENGINEERS
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.
10
Are 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.
With 7 Student chapters, LSU, Nicholls State,
Montana Tech, UL-Lafayette, UT, TAM, CSM..
We have a great start towards the mission of
dissemination of drilling technology to those
interested in the industry

however we should do more.
11
US Oil Gas - Perception Versus Reality

• Oil Gas EP is a dangerous business.
• Oil Gas Exploration is dirty business a major
  risk to the environment, the majority of oil
  entering our oceans and rivers is from EP
  operations.
• The USA is no longer a major producer of oil
  gas.no need to take the perceived risks.
• The US consumes way too much of its share of
  world oil.
• Politics and war are driving up the price not
  market fundamentals.
• We dont need more Oil Gas..renewables are the
  future!

Net summation of these perceptions is that we are
a business and career of the past and not part of
the future.
12
TRIR Trends Total Industry Vs EP Operations
1973-2002
Oil Gas is a Dangerous Business.Right?
EP HSE Performance has improved to be one of the
safest industries
13
Oil Gas Development Safety Vs Other Industries
Professions
2002 TRIR Total Recordable Incident Rate by
Industry
14
Oil Gas EP is a Dirty Business.Right?
OCEAN HYDROCARBON Pollution Sources
15
The USA has become a minor Oil Gas
Producer. Right?
WRONG!
Russia has become the largest swing producer.
The US is still a major oil producer..Oil Gas
remain an important sector of the US Economy
United States
16
Avg. Daily Oil Consumption by Country
The USA Consumes excessive oil volumes..Right?
17
Avg. Daily Oil Consumption by Country
Terrorism and War are the main price
drivers..Right?
There is a Terror Premium..but
Asian growth is the biggest driver Increasing
the Demand for Oil
18
World Excess Oil Capacity Vs Nominal Oil Price
Are we at the onset of the next energy crises?
OPEC 30 MM B/D Can they produce more?
Source Energy Information Association DOE 2003
19
Renewables are the future..right?
1970 Renewables 4.8
20
We HAVE A CHALLENGE ARE WE READY?

• EP Industry Demographics.the BIG CREW
  CHANGE is here
• The boom of the 70s mid 80s created a
  skewed age distrib. in ED professionals
• 70 of the workforce is older than 40 30 is
  expected to retire within 10 years
• Some steps to take to manage this problem are
• Educate public and promote industry to attract
  students into science and engineering careers
  and skilled labor to the field positions.
• Incorporate advanced information technologies to
  transfer
• knowledge/experience to new the crew

Source Balancing Natural Gas Policy Fueling
the Demands of a Growing Economy (2003) 112th
meeting of the National Petroleum Council on
September 25, 2003.
21
Whats the Role of AADE?

• Continue to provide the forum for the
  dissemination of practical drilling technology to
  those inside and outside the drilling industry.
• Promote the development of oil gas in the
  community.the education of others in the
  community
• Dispel the common myths about our industry.
• AADEs partnership with the KNOWLEDGE BOX
  program from the OFFSHORE ENERGY CENTER is a
  great start.
• Two Boxes funded to date with more planned for
  2004/2005.
• Focus is placement of the boxes in New Orleans
  area schools.

22
Student misconceptions about oil and gas and the
industry

• Oil is found in pools/puddles underground.
• We drill for gasoline.
• Major oil spills happen often.
• Spills from oil and natural gas E P are the
  leading cause of oil pollution in oceans and
  rivers.
• Is the oil we drill for the same as the oil we
  cook with?

23
The Knowledge Box Making the Connection
24
(No Transcript)
25
How does the Knowledge Box work?

• The Knowledge Box is a traveling exhibit
  showcasing the many aspects of the oil and gas
  industry. Includes teacher resources, hands-on
  activities and interactive lessons correlated to
  state and National Science Standards.

26
Knowledge Box

• Purpose
• To provide educators a forum to effectively
  present the petroleum industry, and to inform
  students of the vast career opportunities in the
  field.

27
The Knowledge Box strives to Make the connection

• Science disciplines are often taught and/or
  perceived as mutually exclusive
• Secondary science is deficient in earth science
  concepts after 8th grade.
• Many ecology/environmental topics focus on
  negative impacts of industrialization, not
  acknowledging the positive (petroleum products,
  technology, increased environmental standards)

28
Outside of the classroom
29
Educational View of Oil Gas is biased against
future development..
30
Offshore Energy Center

• Mission to expand the awareness of the vast
  energy resources beneath the world's oceans, and
  to chronicle the unique heritage and
  technological accomplishments of the industry
  that discovers, produces, and delivers these
  resources in a safe and environmentally
  responsible way.

31
Offshore Energy Center

• Seeks to accomplish this mission through 3
  initiatives
• The Ocean Star Drilling Rig and Museum
• Hall of Fame
• Educational Outreach program

32
Offshore Energy Centers Educational Outreach
Program

• Purpose to enhance science and technology
  curriculums in the topic of energy for school
  children, from kindergarten through grade 12,
  utilizing teacher workshops, field trips, and
  overnight and summer camps.
• The center works with
• Students and Teachers (K-12 and some college)
• Boy and Girl Scouts
• General public

33
Offshore Energy Centers Educational Outreach
Program

• Many of OECs Educational Outreach Programs are
  held aboard the Ocean Star Drilling Rig and
  Museum in Galveston, Texas.

34
Offshore Energy Centers Educational Outreach
Program
Teacher Workshops
PLAYING WITH PETROLEUM
35
Knowledge Box Student Objectives

• Discuss the importance of petroleum in our lives
• List several everyday objects made from petroleum
• Communicate connections between geology,
  petroleum and future careers
• Understand economic significance of the petroleum
  industry
• Explain the contributions of scientists and
  technology in the fields of geology and petroleum
• Analyze the effects of faulting, folding and
  earths movement
• Describe the origin of oil and natural gas
• Evaluate the economic and environmental
  impact/issues of fossil fuels
• Summarize the steps in locating, drilling and
  producing a well
• Compare and contrast land and offshore drilling
  and production

36
Inventory of the Knowledge Box

• 5 posters with student activities
• Student newspapers and booklets (40) with
  activities
• 11 videos
• 8 industry resource books
• 9 CD-ROMs
• 10 student resource books/booklets

37
Inventory of the Knowledge Box (cont.)

• 10 teacher activity/lab guides
• Teacher Binder with instructional activities
  and model descriptions
• Models of faulting and drill bit
• Oil sample(s)
• Pig
• Laptop computer (depending on location and
  availability)

38
Current Inventory by AADE Chapter
39
Feedback from Student Evaluations
40
Feedback from Teacher Evaluations

• 100 indicated the Knowledge Box effectively
  supplements existing science curriculum

Great tool!! Thanks for letting us use it. We
hope to have the box again next year! As a
teacher, what did you enjoy the most? having
supplemental materials readily available I will
make sure I have this valuable learning tool in
place at the beginning of our energy unit next
year and for years to come
41
Funding for Knowledge Box

• 3300 per box
• Travel expense for OEC staff
• Teacher workshop(s)
• Teachers must be trained through a workshop
  experience before receiving the box
• Courier fees after first year will be billed to
  AADE quarterly

42
WHAT CAN YOU DO?

• PARTICIPATE IN THE PROGRAM
• VOLUNTEER TO SERVE AS A TEACHER RESOURCE?
• 60 Minute talks to help reinforce teaching
  concepts with real world examples?
• If we have a critical mass of volunteers well
  find a way to provide the co-ordination.
• ASK YOUR COMPANY EXTERNAL AFFAIRS TO SPONSOR A
  BOX THROUGH AADE.