Sunday, October 05, 2008

Mission Accomplished.....

For the last week I have been intending to add an update concerning the success of the 25th Divisions visit to Midland. Luckily, in Sunday's Midland Reporter-Telegram, Mella McEwen has done a good job of summarizing the trip. I had a great time in the week with the 25th Division soldiers and the feedback from them on their experience was very positive. I'll be seeing them again soon. And a big thanks to the Midland oil community for their support and assistance. Here's Mella's take on the trip.....

Soldiers visit Midland for tips on protecting Iraqi oil facilities
by Mella McEwen
Midland Reporter-Telegram
Published: Sunday, October 5, 2008 3:14 AM CDT

Before heading to northern Iraq later this fall, eight members of the U.S. Army's 25th Infantry Division -- who have previously been to both Iraq and Afghanistan -- detoured to Midland to learn about the oil and gas industry. "Our goal was to get a broad overview of the oil industry and better prepare ourselves for going to Iraq," said Lieutenant Colonel Nancy Blacker, adding that another goal was to identify experts who could assist their efforts once they are in Iraq, experts they can call or e-mail after they arrive in Iraq.

The division's 'mentor,' retired four-star General James T. Hill, contacted his close friend Wallace Craig of Midland for help preparing the division to oversee oil operations in Iraq. "When they first contacted me, I envisioned they were more worried about how to secure the equipment, but their main focus is on putting Iraqis back to work, increasing production and growing the economy," he said.

Craig -- who was in the division in the mid-1970s -- said Hill, a close friend and fraternity brother, had asked him to go to Iraq, but he told Hill the soldiers would be better served coming to Midland, visiting actual facilities and talking with industry representatives. "I said they needed to look at getting many involved because the industry is so segmented," he said.

He then enlisted Midland College's Petroleum Professional Development Center to set up three days of training for the soldiers. The first day was a full-day classroom seminar, "Overview of the Oil and Gas Industry" presented by T.E. Gill at the PPDC building in downtown Midland, followed by an update on global markets, sales and prices at Wachovia Securities.

The second day involved a field trip, touring a Pioneer Natural Resources well site, pipeline operations at Plains All American tank farm and control center and compressor systems at Exterran. At the Plains tank farm, Craig said, the soldiers saw how a large-scale storage facility operates and how it is vulnerable. "They needed to know what the red flags were and what the red flags look like," he said.

Lt. Col. Blacker said the group got a good understanding from both the classroom presentation and the trip to actual sites "to see what the equipment looks like and what right looks like."

The second day concluded at the Petroleum Museum with a panel discussion involving experts in various segments of the industry. Nick Taylor, president of Mexco Energy, was among the panelists talking with the soldiers. "What they were most concerned with was creating jobs, boosting the economy and getting people involved," Taylor observed. He said one thing that amazed him was learning that the Iraqis have now buried their pipelines and encased them in concrete. Better securing the pipelines, he said, will let the Iraqis focus on economic development. Participants discussed suggestions such as holding a trade show similar to the upcoming Permian Basin International Oil Show.

"We directed them towards adding revenue, increasing production, recovering gas that's now being flared, capturing the vapors from production facilities," said Taylor. "We talked about generating facilities, using portable generators -- engines or turbines, those microturbines. Some of them thought that might not be feasible at this point but they were glad to hear our ideas. "We also talked about fertilizer, chemicals, value-added products," he continued.

Taylor noted that, since his days in the army, the military has broadened its concerns from combat to dealing with civilian-military affairs, which he found encouraging.

Craig said there is a benefit to Midlanders from the soldiers' visit in that contacts were made "so that when things improve, there will be opportunities in Iraq, especially for service companies. The potential in Iraq is huge. It has the second largest reserves after Saudi Arabia. That region is going to be a major energy center and it needs revitalization and it needs people who know how to revitalize it."

Lt. Col. Blacker said her group "really appreciate being here and welcomed with open arms."