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UGI Part 2

Wed, 5 Nov 2008|

Members of the Conference Advisory Board will discuss important issues from the conference & answer questions from the on-site and internet audiences.


Automatically Generated Transcript (may not be 100% accurate)

Solutions for me thank you for sticking around for the last part of the complex. You're like me struck -- now. Toward end of these things. Again John -- I work for Quintana energy partners the and we are a -- can -- found. We provide. Equity to companies. -- into management teams that are looking to be. New projects in the energy space. -- We do not limit ourselves. Which could lead to the -- Type projects although -- -- big part of what we do and we also. Last year and always guest service companies. Our. Midstream projects -- downstream projects -- we try to cover the entire industry spectrum. With -- fronts. And we are currently raising -- -- and Arafat's first Sanders is completely committed. Last week. I'm just before this conference started I had the I -- -- fortunate to live. US they they shale gas geologist. And unfortunately I can't really. Because we do have a confidentiality. Agreement between our companies. But you probably know him if I mentioned his name. But suffice it to say he has been -- -- -- shale gas since the very beginning. The the Barnett shale plays it very respected geologist. Very interesting. He knows a lot. There's a lot more than that it matters very -- -- to -- to spend about two with Lehman. And -- gave me -- history of the Barnett shale and totally a lot of things a lot of concepts. That. Add when they. First started looking at the -- -- had an hour -- assignments. Proved to be -- He gave me a lot of insights on the -- -- Aren't in the Barnett shale we talked a lot about. How Sunday saying -- should not be taken to. Is like the Marcellus haynesville. -- river basin things like that. Then -- Bruce. Struck with -- several times during that meeting he kept saying just don't rule anything out. And you know -- and they all want to in the other destructive maybe because he said it about two or three times. Nobody meant a kind of had a not -- that. Didn't really appreciated until I really got to this conference and after spending a couple days here and and looking at some of the presentations. And going through the exhibit hall -- and to understand what he meant but don't rule any trying out. We're we're doing things today that just not too long ago we we basically thought were impossible. We're doing -- -- never even dreamed of doing. Ten years ago. You know we're we're doing this is just goes down and all of them have trying -- reward. Horizontal well just -- there's no longer than the vertical section were performing. Twenty stages. -- -- Welsh. Being. Defended their -- groups. Use. -- nitrogen and -- -- prevent any damage to the formation. We. Chesapeake his. Running 3-D seismic surveys and drilling well hinge on. One of America's largest -- works. We're starting to push to recovery factor of -- up to the weapons cache also members getting close to 50%. Developing new troops new blog includes. New. Those were simulation models. -- goes on and on and include. Sleep so maybe. -- -- more when I was -- engineering tragedy so to speak I was taught to. When I was doing some grueling training that. That -- crashed. Drew them you can do to the very -- during the directional well I mean that's kind of the way I was. That was our mentality back then. So brilliant salesman and noncommissioned -- -- just ended two majors this truly amazing. You know reps -- has -- the affect demand -- and unfortunately I didn't have -- describe it it's a kind of did not. Work on on just -- personnel and a lot of our production is -- conventional out uptrend group for North America but really couldn't. Come up with -- some anger to could be -- took the right -- -- do a sudden I brewed on the US and I guess I'm proud nationalist cause my membership program mash would approach to assure your minute -- Iraq. I -- gruesome murders in 1990. About fifteen person that the US gas production. Was unconventional. Today in 2000 and -- neat it's about 50%. And I found some projections say go out about five years and about five years it's going to be -- -- -- 55 maybe not even up to 60%. And so I think we've done a good job as an industry and unconditional -- The first to Iraq to do and there's still a lot to -- this is somewhat colleagues have mentioned. -- -- -- -- -- Just some general comments. I've said it was an extremely good convention in. Extremely informative enlightening. The presentations. I believe we're really just an excellent -- learn a lot from them. The networking. As always -- these conventions is it is very -- and just very very beneficial of the networking. Question. Two -- -- and it would be interesting to him maybe see a little bit more. Data from some of the international. Areas and and basins. If -- -- -- militias. 90% of the resource is far from the or in these -- and -- have a lot more -- You know and and you know its its way out in the future but we need is to try to destroy or Tennessee in -- But I also like to see. And hopefully we'll see some more on the range -- The Marcellus and Indian in the the most squash ailment in the horn river basin those are all new emerging plays. No -- is hard to come by right now but hopefully. Within the next few risks -- some more of that I think those are going to be. I think you're going to be huge. Really going to be -- And that meant that comment. Not sure if it's a good -- yet but. Perhaps we could have a little bit serve this session -- two long. On the industry workforce I think that truly becoming a problem there's just huge. GAAP. In -- age difference in our workforce and we're gonna pick have to figure out a way to the to get all -- -- working on their lot of work to do out there. I can -- -- that. We do we. You are missing grad -- sees many young faces is -- the right to the same the last couple of days. In the -- presentations and the exhibits so. And I think that's different something -- focus on as sort of the work force and continuing the encouragement. Giving -- young young people in the industry. I'm -- -- -- around with El Paso exploration and production. -- currently -- managed the operations and engineering efforts in their black warrior basin. As well as the production operations and engineering efforts in the -- -- -- -- -- -- -- -- -- -- -- I would just like to thank both the speakers. And the exhibitors. The past couple of days for the and -- those reserves from us research and development efforts. In their presentations. Because us greatly contributes. To the successful efforts is removed third and developing these unconventional resources. Without what that does -- efforts. We wouldn't -- -- -- address a lot of the major class travelers that are affected. And potentially impact future opportunities. That we -- operators can go third. And developing the resources have been discussed here the last couple of days. One of the common things that took away from the the last. Last two days is that we're on a very steep related learning curve as it is a relates to the drilling and completion. As some of these -- plays like to haynesville shale. Learning curve on some of these unconventional families that we've. Than -- I would like to Barnett in the cotton valley. There was several presentations given on the reef tracking efforts in the -- -- -- As well -- -- those are drawing that's now taking place in the cotton valley and east Texas north Louisiana. -- it's been mentioned a couple of times doctor hold a tune and -- -- on the opening session talked about. The tremendous amount of -- and with the natural resources it that are present both here in the US and international -- And that the efforts. The speakers in the present owners and -- -- that took place the last couple of days. That effort needs to continue going third to really enable the operators like ourselves to. To utilize and and go there with the opportunities that doctor hole -- you mr. -- Discussed. On Wednesday afternoon. So -- -- we we need to focus. On the major class drivers and driving down. Some of the the -- associated with that increasing technology. And then -- -- enable us to move into new areas that have already been identified but not necessarily operations are taking place in those areas. Due to infrastructure and other. Another issues. That mature -- -- -- into the neighboring passes operators -- to commit to -- the capital resources. On. On developing. These resources as -- as. Moving third. In those Arenas. Had -- our -- sure that I wanted to make it was kind of going through quickly here at it -- and then another fast food. -- withdraw from rallies as drivers and as we develop these unconventional resources. As we don't wanna be is -- used. -- third in the few true with the price. Swings infatuation should take place in the commodity markets particularly in the natural gas Serena. Historically we've seen -- men and and -- up east Texas and north Louisiana and the pass with the -- -- and Travis peak and a pretty good past let. -- -- occurred in the past really really slow down that momentum tremendously. And I thank. Last decade or so we -- Five years -- -- a great deal of improvement and developing those particular resources and -- cotton valley and Travis peak. For them and never as to whether -- Bigger -- swings -- fluctuations. So the economies of smush their critical. And with the service companies -- fruits and similar research and development efforts going on with the groups of percent of this. The past couple -- days that's gonna greatly and I -- operators to move forward and not be susceptible to. Took took price environment swings Hussein in the past. That helped -- over -- country. And so good to smooth this new production and -- the world and gas journal. And as a name implies like cover production technology which includes unconventional gas. Development. Mike and Mike. We'll see a pretty. -- -- covered the conference fairly well all. And -- the only point that I certainly like to make is is that these that. -- -- need in these sessions where is the tremendous -- ability in these plays even though. When there are -- there. There's -- do big circle. In thousands of square miles. Well listed as -- today. The variability. Is that is that is actually tremendous between. The different plays -- within each way. So that there's no -- a different technologies that are required to our. Effectively. Produce from these plays -- women as was mentioned previously the Barnett still has a lot of unknowns regarding. The best practices. That can be used with the technology available. And another thing movement that these unconventional places is the number -- where those that are actually needed to develop them. Firmly in years past you might need it. When gas well in 640 acres would be adequate to -- Drain on the conventional gas field whereas in -- -- gas. Feels you're getting down to five and ten Acre space savings. Which show -- for gas wells. Well it is basically impacts -- The class. And it drives up the -- tremendously plus it also are causes a large environmental law. Foot -- to that needs to be dealt with. And I guess those -- my -- comments that I think. I would like to make. I'm -- allowing him with Halliburton and the director of technical marketing globally world wide. That's service all product service -- Today the operator in service -- and they both. Have to look at. Both the capital costs but they could end to these fields. As -- list the return that they're going to get out of these fields. You have to look at the environment. You have to look at the regulatory. Areas that we're putting placing these. Developments in and what kind of environment. Have we got going forward in this. We saw bridge. At this conference that. I've been preaching for -- -- but doctor -- will be brought forward. In the fact that the -- they you have a bridge between the conventional. And the -- conventional. And what I want to put forward. To the believe the world -- Is -- here looking at that initial development. The field. You have to look at the convention else and you have to look at the -- conventions. Both in the same field and if there's any. Potential for those unconventional loans to you need to put in place initially. They thought we may produce these unconventional -- wrong within -- infrastructure. So that you can have eight million -- just capital investment and operating costs and long term overall. Not only that. But. We have to look at. How we're doing these conventional Simon conventions the convention rolls out more simple -- -- originals are more complex. And as the probability is getting lower the more complex they are. Lived just sometimes we have to -- into what we call the factories. Tight operation. And in each and every well that we drill and we complete. It may bring a surprise to us. Continuous learnings. From every well that we drill in an unconventional. Has to be brought forth. And I applied in the future drilling is that we take on and then unconventional field. Not only is the unconventional. Field today. That we've gone forth and everything else is going -- continued to be more complex. Future where they eat more unconventional. And -- -- crack. And as we go back into some -- unconventional. Fields. That we -- it going to be harder that we saw all that some of the race tracks that was -- -- done. They could be -- and we would get additional reductions out of those unconventional wells which is outstanding. Never turn your back on any -- -- every stone is unturned. That's what I'm time to communicate to everyone and to minimize the capital investment. By the -- costly to go forward -- the other thing that I want to communicate. -- the environment. The environment of the footprint that we are putting in we than conventional -- conventional -- Having that infrastructure at the very beginning and working -- -- field. -- -- money developing both conventional and unconventional. We can minimize that footprint. We can reduce those chemicals we can reduce the amount of water. That we are using and Reeves -- recycle more of that water. And -- allow us all. In the global environment to live better. Like I would I would like to thank. The conference supporters. And everyone who attended the conference. I think it was a very well done. Thank you very much. Well thank you panelists that presume it was a great great review and a great -- -- -- span of subjects I was. Was -- -- -- to me enough left to be suddenly got her in the end if you all and it has had to and so thanks thanks again. The Internet audience that you can. Asking questions anytime you have some questions. First -- I'd like to invite the panelists to ask one another question and one -- and questions are. To elaborate on anything you -- you heard your fellow I must -- Men women and in the. I might ask a question of bill since he's sitting right next to me and Glen -- well. We're driving the major service companies and and I know you know after we. Levels are open and busy supporting rigs and well completions and so -- but I. We do if you can. I'm here R&D budgets and the trends in the transit you've noted over the past few years and and particularly unconventional gas area. I just consumed. I need to introduce a week. Multi decade confirmatory due. -- the rest -- heard over the period term. Additional measures are -- -- budget is they exceed the total of the weather service comes in the industry so we took a very strong commitment there a message have you sir. In the past couple -- Medicines and technologies coming out of there that have had different applications to unconventional. Wrote. Texas small talk about to sentenced -- -- some -- new technology that can -- about. A war that you saw any implications or. Stressing myself to have been known. The impact -- understand -- -- and as soon. -- -- -- -- -- -- drilling time those comments global scope friendly and there -- several components and a betrayal. Very much advanced over predecessors and and I hope this opens some -- -- are some of those associated with in terms of interpretation. Real time. Contributions is related to -- placement and some of the zone. Food. Zones which if you recall just economic news that's a very -- room. Can move them these demands -- -- sweet spots and that's generally true none of these times rose borrowers. We soon and it's -- -- -- -- and there's a big issue that we took with them. Have your -- children as well as a -- and so. I just a couple of examples but I guess what concerns that we have a strong commitment to -- for a decade -- we -- seeing some from. In my opinion. Yes -- -- hand -- increasing their R&D budget and we're significantly. Increasing its on board. We also are -- our research and development facilities globally worldwide. We. The latest one -- pune India that we have now put in place. They're no longer just in the United States as far as our R&D. We've also significantly. Increased our manufacturing. Facilities worldwide. In all of our operating major areas this year. Which has been a major contributor. To making sure that we deliver reliable service to all -- customers. As far as. New technologies. One of the things that we've done is develop clean. ADR inside ADR which is -- as -- deep freeze this activity -- The season -- deep into the -- more. Which allows you to steer away from. Areas that you don't think that will produce. Effectively for you. But we are expanding our research and manufacturing facility significantly.

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