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Volume 16 • Issue 4 • July 2016
Our Perspective

"May you live in interesting times" is a Chinese proverb used to wish ill towards another person (think replacing the word "interesting" with "dangerous" or "troubled"). Sounds like the times we live in.

While the rest of the U.S. economy is adding jobs, the opposite is still true (for the moment) in the oil and gas industry. Those associated with drilling have been hurt the most, and those associated with continuing a profitable operation while prices are low have an enormous challenge to face. Cost effective operations have a double effect by increasing not only the value of an asset but also the actual size. Here is a look at what can result from a "miser's" calculating head.

On another note, this is the first time around for many professionals who are looking for the next career opportunity. So it is not unusual that candidates have not had a whole lot of practice preparing for an interview. We thought we would provide a few tips based on our experiences over the years of critical errors to avoid during the audition.

Have a great summer!

Your friends at Collarini

Upcoming Events^ Back to Top

SIPES Annual Convention 2016

Omni Hotel
San Diego, CA

August 1-4, 2016
12th Annual Deepwater Intervention Forum

Galveston Convention Center
Galveston, TX

August 9 - 11, 2016

Employer Tips^ Back to Top

How Misers Create Oil

The people who work in exploration and production do many very different kinds of work. We acquire, process, and analyze seismic data; we design and drill wells in rough water that is two miles deep; we design and build drilling rigs, platforms, and enormous floating vessels to produce and transport the oil; in onshore locations, we drill more than a mile sideways and fracture the rock to release oil through as much as four miles of pipe from the surface to the reservoir. There are hundreds of thousands of people who support these activities, from administration and legal to very high-tech digital experts. And a very small part of that is very important to our business and a fascinating one! It is the reservoir engineer whose job is to estimate the amount of oil and gas reserves that exist in specific places and help determine their value.

People who don't work closely with this aspect of the business may not know that oil reserves are nothing more than total estimated future production. And, except for humanitarian reasons, no company intentionally produces that oil without making money. So, we stop making money when (revenue - expenses = zero). That is called the economic limit. Each entity that produces oil or gas has its own economic limit, usually expressed in barrels of oil per day (BOPD) or thousands of cubic feet of gas per day (MCFD). A well that is producing oil should be shut in when it costs more money to produce it than the revenue it earns; it will have no reserves. When multiple wells produce to a common facility, such as an offshore platform or an onshore "pad," the oil and gas revenue from all of the wells must be able to support the expenses of producing the wells and of running the shared facility. When that whole unit stops making money, there will be no future production, therefore no reserves.

Oil is found in limited reservoirs, and each is a limited resource. As a well depletes, it produces at a declining rate until it either stops producing on its own or someone shuts it off because it has reached its economic limit. When prices go up, the economic limits go down. So, for a well breaking even making 20 BOPD at a price of $40/barrel, a rise in price to $50/barrel could allow the well to produce profitably down to a rate of 16 BOPD. For a well averaging a decline rate of 10% per year, this price rise alone would allow that well to make money for two more years. And add 14,000 barrels of oil reserves! No new technology for improved recovery did this. No physical change occurred, just the change in economic value of the product.

We can't control the price of oil, so we focus on what we can control: expenses. If we are able to reduce the cost of production, then we can affect the reserves. In the same example as above, if the cost of operating can be reduced by 20%, the exact same result occurs: 14,000 barrels of additional reserves. So, there is a double impact. We save the actual cost right now, AND we extend the life of the well so that there is also more oil to sell!

The item "operating expense" comprises many components. There are costs associated with the people who work in the field, with chemicals, power, water, grease, soap, tape, rope, paint, safety equipment, and so many more elements. There may be costs for taxes and payments to landowners. Can these be negotiated? The miser in us could be evaluating every invoice that comes in and every activity that is performed in the field to squeeze every possible penny to reduce expenses. Sometimes, investing in equipment or new technology will do it, and sometimes just changes in habit. The people closest to the oil, the engineers in the field and the men and women operating the wells and facilities, are the ones who will have the best fundamental ideas. Encourage them to speak out so you can become more like Scrooge.

And that is how misers create oil.

Call us if you need a few misers on your team. We know many experts who can help you out!

Talent Pool^ Back to Top

The following biographies are just a small sampling of the kind of talent available in our talent pool of over 24,000 experts. Please call our placement managers if you are interested in learning more about these professionals, or check out our website for more candidates.

Executive with a bachelor's degree in civil engineering and 40 years of experience in production engineering and operations management for large and medium sized independents. Extensively accomplished in diverse projects in the areas of production, drilling, completions, construction, gas processing, exploration, HSE, and government relations. Experienced in managing construction and production operations onshore, offshore, and in inland waters in the U.S., Africa, and South America including fabrication and installation of new platforms and facilities through decommissioning. Recognizes value overlooked by others, and can balance high technology and common sense. Possesses extraordinary problem solving skills and is capable of managing multiple crises simultaneously using creative, innovative, and three-dimensional thought process. Ask for P795

Production Engineer with a bachelor's degree in chemical engineering and more than 30 years of experience working for small to large operators. Expert in artificial lift including ESP and gas lift. Additional experience in flowback operations, completions, multi-lateral wells, horizontal wells, sand control, budgeting, waterfloods, A&D programs, and mentoring. Geographic areas worked include Texas, Arkansas, Louisiana, the Gulf of Mexico, Argentina, Bolivia, Ecuador, Venezuela, and Indonesia. Ask for P404

Production Operations Manager with a bachelor's degree and 36 years of experience with small independents and service companies. Experienced in uphole, downhole, open- and cased-hole well mechanics; production optimization; reservoir chemistry; log interpretation; and facility design. Also experienced in complex completions, intervention, preparing of procedures, AFEs, presentations to investors and managers, recompletions, stimulation, sand control, disposal wells, compression, and artificial lift with rod pump, ESP, gas lift, plunger, hydraulic, and jet pumps. Very experienced in managing field and office personnel to execute projects both surface and downhole. Geographic areas worked include Texas, Louisiana, and the entire Gulf coast area. Ask for PO191

Financial Executive with a bachelor's degree in accounting, a MBA in finance, and over 30 years of experience working for mid-sized and large independent oil and gas companies. Expert in accounting operations, financial reporting, budgeting, planning, and treasury and information technology functions. Experienced in managing acquisitions, divestitures, shared services, system implementations and conversions, supervising the design of the planning and budgeting processes, evaluating and implementing revenue, production and royalty systems and standardized chart of accounts, and establishing policies and procedures ensuring strong internal controls and SOX compliance. Additionally experienced in coordinating efforts to go public, facilitating public debt and convertible debt offerings, and implementing new ERP systems. Software experience in Quorum and SAP. Licensed CPA. Ask for A548

Senior Landman with a Juris Doctorate and 10 years of experience working for small to large operators. Experienced in surface agreements, contract negotiations, land management, digital mapping, regulatory and legal compliance, and title research and curative. Geographic areas worked include North Dakota, Texas, New Mexico, and Alabama. Software proficiency in Tobin Land Suite, Excalibur, ArcGIS, and OGsys. Certified Professional Landman. Ask for L570

Reservoir Engineering Manager with a bachelor's degree in petroleum engineering and over 30 years of progressive experience in the oil and gas industry working for mid-sized to large operators. Experienced in assembling and leading high performance multi-disciplinary technical teams, developing business opportunities, overseeing asset acquisitions, estimating annual reserves, and generating exploration prospects. Additionally experienced in field development, reserves evaluation, and field studies. Geographic areas worked include the Texas Gulf coast, south Louisiana, the Permian Basin, and the Arkoma basin. Software proficiency in ARIES, PHDWin, PEEP, Petra, Rose Risk Analysis, Geographix (PRIZM), IHS Power Tools, and SMT. Ask For M553

Reservoir Engineer with a master's degree in petroleum engineering and five years of experience with a major engineering consulting company. Experienced in reserves evaluation for mergers, acquisitions, and lending. Additionally experienced as an oil and gas attorney, drafting legal documents and client consulting agreements and litigating oil and gas breach of contract, environmental contamination, and product liability cases. Geographic areas worked include Angola, Australia, Colombia, Denmark, the North Sea, Ecuador, the Gulf of Mexico, Canada, and the onshore U.S. Software proficiency in PHDWin, ARIES, CMG, PEEP, and MS Office. Licensed Professional Engineer in the State of Texas. Member of the State Bar of Texas and New Mexico. Language proficiency in Spanish. Geographic areas worked include Angola, Australia, Colombia, the North Sea, Ecuador, the Gulf of Mexico, Canada, and onshore U.S. including the Permian Basin. Software proficiency in PHDWin, ARIES, CMG, and PEEP. Ask For R1249

Geologist and proven oil finder with a bachelor's degree in geology and 11 years of experience working for a mid-sized oil and gas company. Experienced in sandstones, carbonates, unconventional reservoirs, and in many types of depositional environments. Geographic areas worked include several different basins including the Permian, Ft Worth, and Anadarko basins. Software proficiency in Petra, GES 97, PI Dwights, PetraSeis, Petrel, Geographix, and Production Explorer. Ask For G2301

Reservoir Engineer with a bachelor's degree in petroleum engineering and ten years of experience working for a major operator and several independent companies. Experienced in creating type-curves, implementing reservoir management strategies, characterizing reservoirs, analyzing risk, creating production and capital forecasts, performing supervisory duties, planning the development of assets, and analyzing acquisitions. Geographic areas worked include Texas, California, southern Oklahoma, and the Gulf of Mexico. Software proficiency in ARIES, PHDWin, FDR, SpotFire, FieldVision, WellCore, CSBeam, Dl-Desktop, PVTsim, GIS, FieldDIRECT, Smart View, Visual Explore, Hyperion, and AutoCAD. Ask For R1137

Geologist with a master's degree in geology and four years of experience in the oil and gas industry working for a major oil and gas company. Experienced in reservoir characterization, prospect maturation, seismic interpretation, well log correlation, seismic geomorphology, contour mapping, core analysis, well planning, economic analysis, and reservoir modeling. Geographic areas worked include the Gulf of Mexico deepwater and shelf. Software proficiency in Paradigm Epos, SKUA-GOCAD2014, OpenWorks/StratWorks, Petrosys, Petra, and ArcGIS. Ask For G2478

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Career Advice ^ Back to Top

Ready for your job interview? Have you done your homework?

It is one of the oldest "must do's" in the how-to book of preparing for the interview. But we still see good candidates stumble, because they did not know key facts or aspects about their potential future employer. In this day and age, with lots of information waiting at your fingertips, saying "I have been to your website" is simply not enough of an answer to the question of what you know about an organization. A company's homepage will give you the basics about the number of employees, and main products and services, but there is more.

Especially if the company is publicly traded, you need to know a lot more to convey an appropriate level of interest during the interview. Gathering as much information as possible will boost your confidence.

Research is king! Here are some areas that will be important to know.
  1. The history of the company and its "founding fathers" is not only important, but also very often an interesting read when you find out, for example, under what specific historical or societal circumstances a company came into existence.
  2. Know the family tree. Larger companies, and companies that have been around for a long time, may have seen a number of mergers during their existence. While the older names may not appear in the current name, they are still there in spirit, and they may still be deeply imbedded in the company's culture. For example, knowing about Humble Oil and Standard Oil, and all the history behind these companies, will give you a better understanding and appreciation of ExxonMobil and its place in the history of commerce in the U.S.
  3. Know the key players. And this means not just the names: The top brass' standing in the community and their involvement in local and federal governance will give you a keen understanding about the people and stories behind the company.
  4. Know who will interview you and find out about the background and career of your interviewer.
  5. Crunch your numbers. Publicly traded companies' financials are easily accessible. Study them well, and seek out commentary in the investor community on the current and potentially future performance of the company.
  6. Understanding the company's overall organization is very important if you are being interviewed for a position in a specific region or division. Therefore you should do what you can to find out about the company's branch in question. Try to make a personal contact with somebody who works in the area that you are interested in, and ask him or her some questions. Happy employees love to talk about their work and the company where they work!
  7. You may not be able to use all your gained knowledge in the interview, and it may not be advisable to use everything. This may portray you as a know-it-all who is trying a bit too hard. But not knowing a critical item you might have been expected to know could count as a strike against you.
Remember from school days how much more at ease you felt on those rare occasions when you did all your homework? Admit that it felt good - even though the teacher might not have asked you the question you were bursting to answer!

Good luck and keep in touch.

About Us ^ Back to Top

Connecting the Industry's Experts...

Collarini Energy Staffing Inc. is a full-service agency specializing in the placement of energy and EPC personnel and including the disciplines listed below (other supporting personnel are managed upon request):

Accounting and finance personnel
Administrative and clerical personnel
Business analysts
Civil and architectural engineers
Data Management
Drilling engineers
Drilling operations supervisors
Energy trading professionals
Facilities engineers
Geologists, geophysicists, and petrophysicists
Health, safety, and environmental personnel
Human resources personnel
Instrument and electrical engineers
IT professionals
Land, legal, and supporting personnel
Marine engineers and naval architects
Materials and corrosion engineers
Mechanical engineers
Operations supervisors
Pipeline, riser, and subsea engineers
Process engineers
Procurement personnel
Production engineers
Production operations supervisors
Project managers and support personnel
Quality control and inspection personnel
Reservoir engineers
Sales and marketing professionals
Technical writers
Technicians, drafting and graphic
Technicians, engineering and geoscience

Guiding Careers to the Next Level...

Collarini Career Management applies its deep understanding of the career paths of technical professionals in the E&P and EPC communities to help companies and professionals build successful organizations and careers. We leverage Collarini's unique combination of industry knowledge and technical expertise to guide companies and individuals during transition, training existing employees for high performance, and designing customized technical training plans for companies and individuals.

Contact Us ^ Back to Top

1500 S. Dairy Ashford Road, Suite 350
Houston, Texas 77077

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