Ward Petroleum—September 2015
Through the Pipeline
September 2015
T H E B I G P I C T U RE
"Only
positive
thoughts are
productive."
~ Faith
Puleston
In this issue:
The Big Picture
1-2
Do The Right Thing
By Tom Taylor
3
Engineering Intern—
Matt Collins
3
First U.S. Petroleum
Book
4
D&D Industry
Appreciation Speaker
5
FYI
Calendar
7
Around Ward
Recipe
8
A Critical Decision Being Made at a
Critical Time
In early 1986, we were faced with a critical
decision. We had the opportunity to drill the
Rowe #1 in Section 20 of 5N5W, Grady County. The
well was a 15,000’ Bromide test; a prospect with the
potential for 500,000 Bbl oil.
Lew Ward
Chairman
Emeritus
We started Ward Drilling Company, April 1981, with a nonrecourse note of $15 million from Penn Square Bank. By early 1986
we had been successful as a competitive drilling contractor and oil
producer. Our success through the ensuing 5 years is attributable to
having a good staff of Geologists, Engineers and Land personnel
capable of finding favorable prospects and meeting the challenge of
keeping the rigs busy.
The decision to drill the Rowe was encouraged by the hope
the well would be a trouble free well and that the prospect would
prove to be comparable to other wells in the area that indicated
500,000 Bbl per well potential. Thoughts about passing were
reinforced by the realization that we had to guarantee the cost of
drilling 100% and would only have an approximate 25% interest.
Because of the many failures within the industry, a costly fishing trip
could result in failure of the company. Failure was not an option.
Continued on Page 2
1
Ward Petroleum—September 2015
The oil industry was starting to recover from the failure of the Penn Square Bank July
5, 1982, an event that would trigger bankruptcies across the nation. To help understand the
massive size of the problem in the oil industry, consider the fact that in March of 1982 there
were approximately 4600 rigs running in the USA, 880 of which were running in Oklahoma.
In March of 1986 the national rig count had dropped to 729 and Oklahoma was at 114. A
loss of 776 rigs—in Oklahoma—a massive decrease. These numbers will give some flavor to
later events in Enid when businesses were failing. Our downtown area was described as
looking like a war zone and there was a bumper sticker “last one out of Enid turn out the
lights.”
Making a game changing decision to drill the Rowe helped by having a positive mental
attitude. According to our newsletter, exercise plays a role in having a positive mental
attitude. Our newsletter indicated that endorphin is a natural opiate released by exercise.
This is the ultimate reliever of stress. I recall many days running at the YMCA thinking
something good is going to happen today.
I mentioned the decision to drill the #1 Rowe was a game changing decision. It helped
us develop the Hybrid Turnkey drilling contract which led to the Total Performance Package
where we delivered to a partner the total cost of drilling and completion of a well ready for
the pipeline. This led to creating Ward Gas Marketing. To attract joint venture partners we
had to believe we were the best in the business.
The successful drilling and completion of the #1 Rowe gave us confidence in believing
we were best in the business. Claude Jackson, our drilling superintendent, played a great role
in keeping everyone’s attitude at a peak.
We did drill a trouble free well; it took a little longer than we thought. While we were
drilling, the price of oil dropped from $24.00/bbl to $12.00/bbl. Having a positive mental
attitude helps slide rough spots like this.
Having a little humor helps to keep a positive mental attitude in a highly competitive
market – Times are so bad even “Ethiopians are now telling oil field jokes”—or— “banks are
giving customers their choice of either a drilling rig or a toaster when opening a new
account—most want a toaster.”
We finished drilling the #1 Rowe in June of 1986. The well was perforated in the
Bromide from 14,474’-14,688’ and has produced 485,000 Bbl oil & 1 BCF gas.
2
Ward Petroleum—September 2015
By Tom Taylor
Do the Right Thing
Rocky Mountain
Geoscience Manager at
Ward Petroleum
On August 11, 2015, Ward Petroleum was summoned to appear in front of the Wyoming Oil
& Gas Conservation Commission (WOGCC) at a hearing to show cause as to why fines and
penalties should not be levied for venting and or flaring gas in derogation of the commission
rules from the Rincon South #11-23-15-2CH well in Laramie County, Wyoming. The
commission is composed of the Governor of Wyoming, Matt Meade, the Wyoming State Geologist, Wyoming Director
of State Lands and two appointed petroleum professionals. The WOGCC has been criticized by environmental groups
for not cracking down on operators for the wasting of natural gas by flaring. Wasting natural gas is more than lost
revenue as Governor Meade noted, “it affects the neighboring homeowners and in densely populated areas like
Cheyenne, the flares are a nuisance.”
While in the completion phase of the Rincon South well, Ward Petroleum continued to flow the well in anticipation of a
speedy pipeline hook-up; we estimated that it would take only 7 days. Unfortunately it did not work out that easily.
After lengthy unforeseen delays, Ward Petroleum had to take over the installation of the gas gathering from the original
contractor and an unusually wet spring helped to compound the problems. Although we filed for a retroactive flaring
permit, we had reached the maximum allowed by the state a few days before we accomplished our hook-up. The end
result was that Ward Petroleum was improperly flaring gas.
Ward’s Fort Collins technical staff consisting of Marshall Hall, Kent Craig and Tom Taylor along with our legal
representative, Neil Short appeared at the WOGCC hearing. When we were finally called before the board our lawyer,
on our behalf, accepted the penalty without any reservations or excuses only stating that we regret not being in
compliance with the rules and doubly assuring the board that Ward Petroleum is a good operator and wishes to keep its
reputation in Wyoming in good standing and this will not happen again. To our surprise no questions were asked,
Wyoming Governor Matt Meade spoke first, and stated that he was pleased to see an operator take responsibility for
their actions and not waste the Commission’s time with lengthy excuses. We were told later by Commissioner Dolinger
that in the history of the WOGCC a company had never come before them and actually taken responsibility for their
actions. He added that he had always heard that Ward Petroleum was a good operator, but now he and the entire board
knows that they are a top-notch operator.
We made a mistake and it cost the company a fine, but by “doing the right thing” and accepting our responsibilities, we
were able to help preserve, and even elevate our reputation as an oil and gas operator.
Summer Intern—Matt Collins
Matt is a junior engineering student at the University
Oklahoma and the son of Ward employee Tim Collins.
While working during the summer, Matt was able to
work closely with the engineers, geologists and the
Caprock crew in the field.
3
Ward Petroleum—September 2015
JUNE 1, 1860—FIRST U.S. PETROLEUM BOOK PUBLISHED IN PENNSYLVANIA
Less than a year after Edwin Drake’s historic
discovery of oil in Titusville, Pennsylvania, Thomas
Gale publishes an 80‐page pamphlet many regard
as the first book about petroleum.
The 1860 Rock Oil, The Wonder of the Nineteenth
Century in Pennsylvania and Elsewhere describes
the new, revolutionary fuel source for
illumination.
“Those who have not seen it burn, may rest
assured its light is no moonshine; but something
nearer the clear, strong, brilliant light of day,”
Gale writes. “In other words, rock oil emits a
FLASHBACK
dainty light; the brightest and yet the cheapest in
the world; a light fit for Kings and Royalists, and
not unsuitable for Republicans and Democrats.”
In 1952, the Ethyl Corporation of New York
republishes the book, noting “this first book about
Reprinted in 2006, “Rock Oil” is available from
the Oil Region Alliance in Oil City, Pennsylvania.
1950 reprints are also available on Ebay.
petroleum following the Drake well was written to
satisfy public desire for more information about
rock oil, its origin, geology, production, costs,
uses, history, prospects; invaluable eyewitness
descriptions of early oil wells.”
Colonel Edwin Laurentine Drake (1819 ‐ 1880). Born
in Greenville, New York, Drake is considered the petroleum entrepreneur of the oil industry. A former
railroad conductor, his success in hitting oil was based
on his belief that drilling would be the best way to obtain petroleum from the earth. He organized Seneca
Oil Co., leased land, and on August 27, 1859, struck oil
at a depth of 69 feet.
This first oil well was drilled near Titusville, Pennsylvania. The well was drilled by Drake, a retired railroad
conductor. Most historians trace the start of the oil
industry on a large scale to this first venture. Drake
used an old steam engine to power the drill. After his
well began to produce oil, other prospectors drilled
wells nearby. The world's first oil well was in operation. Oil created riches for many people and for many
countries, but not for Drake. His poor business sense
eventually impoverished him. In 1876, he was granted
an annuity by the State of Pennsylvania, where he remained until his death in Bethlehem, Pennsylvania.
4
Ward Petroleum—September 2015
QUOTES
For September Industry Appreciation Month, the Enid Chapter guest
speaker was James Roller, OIPA.
James is a native of Clinton, Oklahoma and an Oklahoma State University
graduate, Roller most recently served as a National Technical Sales Representative for Varel
International Energy Services. Prior, he was the director of corporate development and
government relations for Oklahoma City-based Chesapeake Energy, handling the company’s dayto-day government relation’s efforts in Oklahoma, Kansas and the Texas Panhandle.
James Roller currently serves as the Vice President of Legislative Affairs for the Oklahoma
Independent Petroleum Association, advocating for the Oklahoma Oil and Natural Gas Industry.
Humans and chimpanzees share many genetic traits, and scientists have recently discovered one that may
surprise fans of the Cooking Channel and the Food Network: a basic understanding of how to cook food.
Chimps have long exhibited a preference for cooked food over raw. A team from Harvard and Yale
decided to see if they could be taught to “cook” food on their own. Observations have shown that
chimps are willing to give up something like a slice of raw sweet potato if they expect to receive a cooked
It takes just a moment
to change your attitude. And, in that quick
moment, you can
change your entire day.
- Author Unknown
You cannot swim for
new horizons until you
have courage to lose
sight of the shore.
—William Faulkner
A therapist once told
me something that’s as
true now as when I
first heard it: “You can
only go as fast as the
slowest part of you can
go.”
one in a short time. To test their hypothesis, the scientists devised a process to mimic cooking (since they
—Bonnie Raitt
didn’t want the apes to use actual heat): two plastic bowls that fit closely
A minute’s success
pays the failure of
years.
together, with a bit of pre-cooked food hidden in the lower bowl.
The scientists would put a piece of raw potato into the bowl, then switch it
after a few minutes for the cooked one. After a while, the chimpanzees began
doing the same thing—placing a piece of food into the bowl, waiting, then
looking for the tastier result.
The researchers believe this shows a basic cognitive ability to understand the cooking process, as well
as the patience to carry out—traits that may have driven crucial changes in human evolution.
Stone Tools Point to Early Use by Primitive Humans
Humans have been using tools for longer than we’ve known. As reported by the journal Nature, a
team of archeologists in Kenya have found stone tools dating back 3.3 million years, some 700,000
years older than the oldest tools previously discovered.
Before this find, the oldest known stone tools came from sites in Ethiopia and were believed to
have been used some 2.6 million years ago. Still, evidence of earlier tool use
suggested that humans may have been using stone for longer than that—
fossils of animal bones, also in Ethiopia, show signs of cutting some 3.4 million years ago.
The Kenyan tools were dated with an analysis of the sedimentary layer
where they were uncovered. Scientists speculate they may have been used
to open nuts or fruits with hard surfaces. Weighing in at about 6.6 pounds,
the tools are 10 times heavier than any stone tools discovered so far.
5
—Robert Browning
Outstanding leaders go
out of their way to
boost the self-esteem
of their personnel. If
people believe in themselves, it’s amazing
what they can accomplish.
—Sam Walton
Make certain the people around you have
good values [and] good
judgment and are loyal.
Allow them to impress
you but be sure they’re
comfortable coming to
you for feedback. Most
important, hire people
smarter than you!
—Ivanka Trump
Ward Petroleum—September 2015
Geology & Engineering has a
summer garden friend
Black-and-Yellow
Argiope (Argiope aurantia)
commonly known as the yellow garden
spider,black and yellow garden spider,
golden garden spider, writing spider,
corn spider, or McKinley spider. Argiope
spiders are not aggressive. They might
bite if grabbed, but other than for defense they do not attack
SEPTEMBER 2, 1945— 70 YEARS AGO
VJ Day marks the end of WWII, and the cessation of fighting against Japan. It is called "Victory In Japan Day or
"Victory Over Japan Day".
There is some confusion over what date is V-J Day. You can consider any (or all) of
three dates as V-J Day. President Harry S. Truman caused some of this confusion........
On August 14, 1945, the Japanese government cabled to the U.S. their surrender. This
is the date of most modern observances.
On August 15, 1945, news of the surrender was announced to the world. This
sparked spontaneous celebrations over the final ending of World War II.
On September 2, 1945, a formal surrender ceremony was held in Tokyo Bay "New York City celebrating the surrender
aboard the USS Missouri. At the time, President Truman declared September of Japan. They threw anything and kissed
anybody in Times Square. August 14,
2 to be VJ Day.
Regardless of which day you view as VJ Day, World War II was finally over.
6
1945." Lt. Victor Jorgensen. National Archives and Records Administration.
Ward Petroleum—September 2015
SEPTEMBER
September 2015
BIRTHDAYS
Shirley Salisbury
9-01
Marshall Hall
9-25
Allison Angleton
9-27
Sun
Mon
1
ANNIVERSARIES
Zac Stover
9-2
Tue
9-9
2yrs
Richard Easley
9-10
3yrs
Marshall Hall
9-24
1yr
Thu
Fri
2 VJ Day, 3
1yr
Dave Stone
Wed
Sat
4
5
WWII
6
7
8
9
10
11 PD 12
15
16
17
18
24
25 PD 26
Labor Day
13 Grand- 14
19
parents Day
20
21
22
23
27
28
29
30
September—National Campus Safety Awareness Month. College campuses are not immune to destructive
behaviors and violence due to high-risk drinking, drug abuse, sexual assault, fire safety, and more. As your
kids head to college this month, talk to them about safety and investigate the resources their school offers.
October 2015
Sun
Mon
Tue
Wed
Thu
5
6
7
BIRTHDAYS
Amanda Goodman
10-03
Rosie Pomeroy
10-06
Terri Houska
10-08
3
Wally Gilbreath
10-14
Richard Easley
10-15
10
Mark Jopling
10-22
Kent Clingenpeel
10-24
Susan Hessel
10-28
Fri
1
4
OCTOBER
2
8
9 PD
Sat
Octoberfest
11
18
25
12
13
14
15
16
17
ANNIVERSARIES
Columbus
Mary Kruger
Day
Kent Craig
10-13
1yr
Stuart Houska
10-15
7 yrs
19
26
20
27
21
28
22
23 PD 24
29
30
31
Halloween
7
10-13
34yrs
Gilbert Tompson 10-17
32yrs
Judy Martin
27yrs
10-17
Amanda Goodman 10-21 2yrs
Rosie Pomeroy 10-23
34yrs
Ginny McCoy 10-31
14yrs
Ward Petroleum—September 2015
FOREIGN OIL IMPORTS DID NOT MAKE THIS NEWSLETTER POSSIBLE
Ward Petroleum Corporation
Enid Office
502 S. Fillmore
Enid, OK 73703
Phone: 580-234-3229
Fax: 580-242-6850
A ro u n d Wa rd
RECIPE
Fort Collins Office
215 W. Oak, Ste 1000
Fort Collins, CO 80521
Phone: 970-449-4632
Fax: 970-449-4637
Oklahoma City Office
14000 Quail Springs Parkway, Ste 3500
Oklahoma City, OK 73134
Phone: 405-242-4484
Fax: 405-242-4334
We’re on the Web
wardpetroleum.com
Geology & Engineering is official. Everyone is in their places and
settled in . Drop by and see the new remodel and departments.
8