On February 18, PESA held a Permian Regional District Meeting at the Petroleum Club in Midland, TX. Featuring keynote speaker Carman Mullins, General Manager, Permian Business Unit, XTO Energy, the meeting provided an opportunity for PESA members to network and discuss the challenges facing service and supply companies in the Permian Basin.
Following opening remarks from Tim Tarpley, Vice President Government Affairs, PESA, Permian Steering Committee Chair Jeff Wilhelm, Senior Vice President – Artificial Lift and Water Management, GR Energy Services, introduced Fred Charlton, Managing Director, Chairman Energy Investment Banking, Simmons Energy, a Division of Piper Sandler, who presented an overview of the financial picture facing the oil and gas industry.
OPEC production cuts, made in late 2018 and led by Saudi Arabia, drove oil price recovery in early 2019, Charlton said. He went on to explain that demand concerns related to the global economic slowdown and “stop/start” trade negotiations resulted in price volatility through the second half of 2019. The recent coronavirus outbreak in China and its global spread have added to economic uncertainty and further depressed oil prices.
Trade tensions with China, economic and political turmoil in several Latin American countries including Brazil and Argentina and slowing growth in Europe have contributed to downward revisions to global GDP growth.
PESA Advisory Board Member Pat Bond, COO-Energy Investments, Encore Wellhead Systems, introduced Carman Mullins. Mullins gave a short overview of XTO’s operations in the Permian and her history with the company, which has a robust well inventory of more than 8,000 wells and approximately 8,500 employees and contractors supporting Permian development and production.
According to Mullins, XTO’s Permian approach has shifted from short cycle to long-term value focus. This includes development in infrastructure including a terminal in Wink, Texas; the Beaumont Light Atmospheric Distillation Expansion; and Gulf Coast ventures such as a state-of-the-art cracker plant.
Mullins focused on five areas: safety, sustainability, technology, efficiency and creative relationships. She said she is passionate about safety, and stressed that safety is the whole company’s responsibility, not just the safety manager.
Regarding sustainability, she said she believes we all must make a commitment to responsible development. The industry is only as good as the worst performer, so we should all work to be better.
In the technology realm, all companies should promote innovation in order to increase resource recovery, maximize production and reduce costs. Exploring new ideas should be a priority according to Mullins. Companies need to take well-considered risks and use sound judgement.
She encouraged attendees to pay attention to new employees and interns. Their fresh, new look on a situation could result in creative solutions. Last but not least, Mullins stressed relationships as the key to success. As an industry, we have shared challenges and responsibilities, and strong relationships can help the entire industry solve problems.
Permian Regional District Meetings create productive group settings to address critical issues and share best practices. For information about future PESA events in the Permian and beyond, please refer to the PESA events calendar or contact Molly Determan, Vice President, Strategy & Programs.
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