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 AUGUST 2019 EXPLORER.AAPG.org By MIKE PARTY 3
President’s Column

Insights Gained for the Year to Come

I
t has been a busy month working on
committee assignments, budgets and
the 2020 ACE to be held in Houston. The
2019-20 Executive Committee held its first

meeting, and we focused on members in
all of our conversations. It is our hope that
you, as a member, will see major changes in
how AAPG interacts and engages with the
members by the end of this EC.
Super Basins and Other Events
The last year as president-elect of AAPG
was very eventful. It started with organizing
the second installment of the Global Super
Basins Leadership Program, established by
AAPG past President Charles Sternbach in
2018. This program is designed to highlight
the major basins, “Super Basins,” around the
world. It is a multidisciplinary conference
with discussions, not only on the geology,
but also completion and drilling practices,
economic factors and water issues and
water management as well.
In late January, with the help of Charles,
we held Super Basins 2.0 in Sugarland,
Texas. Super Basins 2.0 centered on
the Permian Basin and included 24
presentations and two keynote speakers:
Michael Wichterich, president of Three
Rivers Operating Company, and Christopher
Spies, vice president of geoscience and
technology for Concho Resources. The
300 attendees – which was the capacity
for the conference – also heard from two
great luncheon speakers: Staale Gjervik,
senior vice president of Permian integrated
development for XTO, and Liz Schwarze,
vice president of geosciences and
technology for Chevron.
This program has been well received, and
Charles, with help from Bob Fryklund and a
steering committee, are working on Super
Basins 3.0, which will be held in Sugarland
Feb. 11-13, 2020. This program will focus
on geoscience insights and actionable
intelligence from the world’s richest basins.
Stay tuned for more information:
AAPG.org/events/conferences/superbasins.
I also want to commend the General Co-
Chairs Lorena Moscardelli and Eddie Valek
and the rest of the San Antonio ACE 2019
Committee for a job well done. The committee
put together a great technical program along
with the field trips, short courses, social
events and the many other activities that
take place at an AAPG Convention. The ACE
and ICE conventions are a great way for the
membership of AAPG to come together and
share ideas and lessons learned. In this day
and time when everyone is demanding peak
performance, we as geologists need to fully
understand the zones we are drilling and
how to achieve the best possible results for
our respective companies. Coming to AAPG
events will help you with that mission.
“
I am grateful for the opportunity to have met so many
AAPG members this past year as president-elect, and I
“
know the insights I’ve gained this past year will serve me
well as president.
The Maersk Victory Jack-Up that was brought in
on the Super Servant 3 heavy lift ship
Scene of the Crime level where the rig floats and can be pulled into
position. The rig was towed into position, and
On both a personal and business note, I got they started jacking it up to prepare for drilling.
a chance to revisit the scene of the crime, so The next call I got that morning was that they
to speak, after the first of the year. Cathie and I were abandoning the rig – we had a punch
went to Australia to celebrate the New Year and through. The rig was listing and, at the time,
see the fireworks on Sydney Harbour, which no one was sure what was going to happen. A
were fantastic. couple of days later the rig was stabilized and
I call it the “scene of the crime” because I we moved into a salvage operation.
had the good fortune of spending some time However, the South Australian government
in Australia – Adelaide to be specific – in the said that we had to request permission to leave
1990s while working for Wagner & Brown Ltd. the country. I guess they were afraid we would
Wagner & Brown, through its subsidiary Canyon leave them with the mess! After petitioning
Australia, had a concession in the Gulf of St. the government, they granted me permission
Vincent and was preparing to drill two wells – to leave and I headed back to Midland. I
their first offshore wells ever. later returned to drill the two wells - the No.
Pictured is the Maersk Victory Jack-Up that 1 Frijole and the No. 1 Enchilada. They were
was brought in on the Super Servant 3 heavy
lift ship. They sunk the Super Servant 3 to a See President page 4 u

STAFF TABLE OF CONTENTS REGULAR DEPARTMENTS Beyond

Managing Editor
Brian Ervin
bervin@aapg.org
08 A Giant Leap for Geologists:
Looking back at the Apollo 11
Geophysical Corner................................... 18
Historical Highlights.................................. 20
Vaca Muerta
Page 24
moon landing. In Memory................................................... 27
Art Direction/Production

10 AGeosciences
Classified Ads............................................. 27
Matt Randolph Call to Civility: This year’s

­­mrandolph@aapg.org Foundation Update.................................... 28
in the Media Award
Graphics Support recipient offers a calmer Director’s Corner........................................ 30
Trent Farar alternative to the often heated Divisions Report (EMD)............................ 30

Advertising Coordinators
discussions about oil and gas-
related topics. Bathsheba, Barbados. The small
ON THE COVER:

Companies A-K
Caribbean country is set to
Mike Taylor
announce a new offshore licensing

12 Latin
1-918-630-5672
mtaylor@aapg.org
America is on the rebound
round and hopes to contend with
from years of downturned oil major exploration hot-spots like
Companies L-Z Brazil, Guyana and the Gulf of
Tracy Thompson
prices, and Brazil and Guyana are Mexico. Photo courtesy of the
1-918-560-9414 leading the way. Department of Natural Resources
tthompson@aapg.org at the Barbados Ministry of Energy

13 Gem
and Water Resources.
of the Caribbean: Barbados

CORRESPONDENTS is a potential hot-spot of oil
exploration potential.

EXPLORER.AAPG.org
David Brown
Barry Friedman
Emily Smith Llinás
Heather Saucier

Volume 40
The AAPG EXPLORER (ISSN 0195-2986) is published monthly for Members by the American Association of Petroleum Geologists, 1444 S. Boulder Ave., P.O. Box 979, Tulsa, Okla.
74101-3604, 1-918-584-2555. email address: postmaster@aapg.org. Periodicals Postage Paid at Tulsa, OK and at additional mailing offices. POSTMASTER: Please send
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Number 8 Advertising rates: Contact Mike Taylor or Tracy Thompson, AAPG headquarters. Subscriptions: Contact Brian McBroom, AAPG headquarters. Unsolicited manuscripts,
photographs and videos must be accompanied by a stamped, self-addressed envelope to ensure return. The American Association of Petroleum Geologists (AAPG)

Aug 2019
does not endorse or recommend any products or services that may be cited, used or discussed in AAPG publications or in presentations at events associated with
AAPG. Copyright 2019 by the American Association of Petroleum Geologists. All rights reserved. Note to Members: $6 of annual dues pays for one year’s subscription
to the EXPLORER. Airmail service for Members: $55. Subscription rates for non-members: $75 for 12 issues; add $72 for airmail service.
 4 EXPLORER AUGUST 2019

(From left) Prof. Peter McCabe; Elinor Alexander; Natalie Debenham (PhD student); Hugo Burgin (PhD student); Mike Party; Dr. Mark Bunch; Katarina Kosten (MSc student); Aerial view of the Maersk Victory Jack Up three days after
Mike Curtis (PhD student); Prof John Kaldi punch-through

President
from page 3
named the “Frijole” and “Enchilada” so as not
to have a name that could be misinterpreted
or misrepresented. Sadly, both were dry holes,
so my offshore drilling career consists of
collapsing a rig and drilling two dry holes.
During our New Year’s trip, we stopped
in Brisbane before heading on to Adelaide to
meet up with some of the friends I made while
working in Australia. One of those friends was
Elinor Alexander, who was a geologist working
for the South Australian government at that time.
Another was a “new” friend, John Kaldi,
whom I have gotten to know through AAPG
over the years since drilling the wells. I am
pleased he will also serve on the EC with me
this year. For those unfamiliar with the area,
Adelaide is surrounded by numerous wineries.
John and his wife Paula, Rhodri Johns and
Elinor showed Cathie and me many of these
over a couple of days. We had the pleasure of
being shown around Thorn-Clarke Winery by
geologist Dave Clarke, who was CEO of Stuart
Petroleum but now owns the Thorn-Clarke
Winery. While on a jeep tour, we saw kangaroos
in the vineyard, which was different, and learned
a lot about wine making. Thorn-Clarke makes a
great wine. I suggest you look them up if you’re
lucky enough to be in that area, or go on their
website and order some!
Another highlight of the trip was going to
the University of Adelaide and meeting the
students on campus at the time. Keep in mind,
mid-January is part of their summer break, so
it was a little quiet. This was my first campus
visit as president-elect. I talked with the students
and they asked questions while we enjoyed
coffee and Tim Tam cookies. If you’ve never had
them, you have to try them (you can order off of
Amazon, and feel free to send me a box as well).
Safe to say, Tim Tams are better than vegemite.
We had a wonderful trip, and Cathie and I
were worn out but sad to leave as we boarded
our flight back to Midland.
Since visiting the University of Adelaide
I’ve had the opportunity to visit two other
universities: Texas Tech and my alma mater
the University of Missouri-Rolla, now Missouri
S&T. I enjoyed speaking with the students
about careers in the oil and gas industry and
answering their many questions. At Missouri
S&T, I got the chance to talk to a class that
was studying unconventional plays around
the United States. I was able to talk about the
Permian and how we went from dead in 1985
to head of the class.
To quote Mike Rowe, “I am looking forward
to the future, and feeling grateful for the past.”
I am grateful for the opportunity to have met
so many AAPG members this past year as
president-elect, and I know the insights I’ve
gained this past year will serve me well as
president.

Party On!
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 6 EXPLORER AUGUST 2019

Lange Retires from AAPG

Deputy Executive Director Post
A

Pay
fter years of dedicated service
to AAPG, the AAPG Foundation
and AAPG members and staff,
David Lange has stepped down from his
position as deputy executive director.
“For more than 17 years the AAPG
and the AAPG Foundation have benefited
greatly from David’s global business
experience and financial acumen,” said
AAPG Executive Director David Curtiss.
“On a personal level I will miss his wise
counsel, effective management and good
humor managing AAPG’s affairs. It’s been
both rewarding and a privilege to work

As You
with him.”
Lange joined AAPG as business
director in 2002 and was named AAPG’s

Go
chief financial officer in 2006, then deputy
executive director in 2011.
Originally from St. Louis, Mo., his
background and education are in
business administration and he held
several executive management positions
prior to his career with AAPG including
economics and statistics editor for the Oil
& Gas Journal.
He said he learned to appreciate the
role and importance of petroleum geology
from his time at the Oil & Gas Journal, as
well as from working for Woods Energy
Products, a Purolator Company.
“I have been at AAPG long enough
to have helped manage the organization
through a few industry upticks and
utilize my international work experience to
support the Association’s global growth
ambitions, and assisted the Foundation with
its successful fundraising campaign.”
“I like to believe I helped the Association
and Foundation achieve their respective
missions and purposes, and focused on
supporting the members and programs,”
he added.
Lange’s official last day as deputy
executive director was June 30, but he
remained on staff for several weeks into
July to assist with transitioning his duties.

EXPLORER
downturns,” Lange said. “I was able to

Subscription Pricing Sponsorship Requirement for

now for NeuraSection AAPG Membership Removed
A
proposal to amend the AAPG
Bylaws by removing the
requirement for endorsement by a
sponsor as a condition of membership in
AAPG passed by a supermajority vote at
the AAPG House of Delegates meeting
during the Annual Convention in San
Antonio in May.
Current requisites to apply for AAPG
membership are: HOUSTON LEMISKI

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standards; and
Have a minimum of one year of
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experience in the practice or teaching
of geological science. The executive
committee may waive this degree
requirement in favor of adequate
professional experience and standing
in the profession.
Prior to May’s HoD gathering,
sponsorship by an existing AAPG Member
in good standing was also required to
apply, which many within the Association
saw as a major impediment to attracting
new members.
“I personally believe that the House
took a giant step forward at ACE toward
being an agent for meaningful, long-term
change on behalf of the Association,”
Houston said of the amendment.
“By removing the sponsorship barrier
to full membership … the House has
taken (a) small step toward modernizing
AAPG,” said Ryan Lemiski, a Canada
Region delegate and Advisory Council
representative.
During the 2017-18 term, Lemiski
led the Advisory Council’s strategic
assessment of AAPG, which is currently
being worked into an update of AAPG’s
strategic plan.
“We must now harness the momentum
created during the San Antonio meeting
in order to take bigger steps during the
2019–20 term,” Lemiski added. “This
could start by challenging all delegates
to circle back and engage every potential
AAPG member that was turned off or
turned away by the former peer-reviewed
membership sponsor practice. This
is critical as a vibrant and successful
organization exists when all stakeholders
have the ability to contribute and shape its
strategic direction.”
The process to convert to full, voting
Membership status can be found at
AAPG.org/About/Membership/Transfer.
EXPLORER

outgoing House of Delegates Chair Bill

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 8 By BRUCE L. CUTRIGHT, AAPG Astrogeology Committee
AAPG and the Apollo 11 Golden Anniversary
Apollo 11 astronaut Buzz Aldrin with the seismic experiment. NASA.
O The celebration of the Apollo 11 landing reminds us of the role AAPG
n July 16, 1969, at 9:32 a.m.
Eastern Daylight time, Apollo 11
launched from Kennedy Space
Center, Florida. Four days later, on
July 20 at 4:17 p.m., the lunar module
touched down on the moon. Neil
Armstrong, Buzz Aldrin and Michael
Collins were the first – something to
remember and to celebrate.
The Apollo program, from Apollo
11 in 1969 to Apollo 17 in 1972, (with
the exception of Apollo 13) delivered
astronauts to the moon, trained in
field geologic methods, to collect
samples that have revolutionized our
understanding of the moon’s and the
Earth’s geologic history.
Astrogeology, Then and Now
Apollo 17 transported the only trained
geoscientist, Dr. Harrison Schmitt, to the
moon.
Jack (to the many within AAPG that
know him well) represented the transition
of the NASA program from observation
by trained laymen to sophisticated
scientific analysis – a transition that
benefited from his insights into which
samples to collect and his observations
to understand the history and origins of
planetary systems other than the Earth.
Dr. Schmitt’s unplanned collection of the
“orange soil” sample completely reset
our understanding of the moon’s tectonic
history. He is a founder of AAPG’s
Astrogeology Committee and remains as
a committee liaison.
The celebration of the Apollo 11
landing reminds us of the role AAPG
EXPLORER AUGUST 2019
and our members play in leadership, technology and innovation. Our
members include key engineers and scientists involved in programs
to explore the moon, direct and manage the Mars rover programs
and lead investigations of the outer planets and their moons.
and our members play in leadership,
technology and innovation. Our members
include key engineers and scientists
involved in programs to explore the
moon, direct and manage the Mars
rover programs and lead investigations
of the outer planets and their moons.
The interesting transition we have all
witnessed over the last decade of private
enterprise taking a major role, if not
the lead in developing launch systems
and vehicles for space exploration, has
opened up additional opportunities for
our members to apply their technical
expertise to identify means, methods and
opportunities for successful endeavors
outside Earth’s atmosphere.
The 2013 AAPG Memoir 101, “Energy
Resources for Human Settlement in
the Solar System,” edited by William A.
Ambrose, James F. Reilly II and Douglas
C. Peters, opened a new vista for our
exploration joie de vivre.
A new and insightful understanding
of how and why we will participate
in extraterrestrial activities came out
of the astrogeology session at the
2019 AAPG Annual Convention and
Exhibition in San Antonio, where it
was shown that water will be the new
petroleum (energy) resource for off-Earth
activities. Water and energy will drive
off-world exploration efforts, allowing
us to produce rocket fuel and breathing
atmosphere from the disassociation
of water into hydrogen and oxygen.
Exploration of the moon and Mars will be
enabled by the discovery of significant
ice deposits on the moon, Mars, and
even Mercury, clearly providing us fuel
for exploration and support of permanent
bases in space.
We don’t need to abandon our
petroleum chemistry as exploration of the
carbonaceous asteroids, the moons of
Mars and the hydrocarbon atmosphere
of Titan all provide opportunities
for expansion of our involvement in
future exploration, exploitation and
development of the outer solar system.
The buzzwords of “In Situ Resource
Utilization” (ISRU) are now the mantra of
using the resources available from space
to support and expand our activities in
space.
To Big Business and Beyond
Are there economic returns that will
drive our efforts beyond Earth’s surface?
According to a 2013 analysis of
the entire Apollo program by Jerome
Schnee of Rutgers University’s Business
Administration Department, “The
Economic Impacts of the U.S. Space
Program,” every dollar allocated to NASA
during the Apollo program produced
$153 dollars of growth and expansion to
the U.S. economy.
Jack Schmitt’s Apollo 17 samples and
analysis of the lunar regolith identified
helium-3 as the energy resource of the
future. In his 2006 book, “Return to the
Moon,” Jack provided the economic
analysis to demonstrate that lunar
mining processes can be profitable
where the commodity is energy. Even
the most conservative estimates of the
critical minerals and rare earth elements
available in the near-earth-asteroids far
exceeds the total cumulative value of
mining operations on earth.
Planetary Resources, SpaceX and
Blue Origin are today’s Shell, Standard
Oil and BP. We, as a society of
professionals engaged in the discovery
and development of energy and critical
resources for our civilization, celebrate
the innovation and success represented
by the Apollo program.
AAPG has ample reason to be proud
of and to celebrate this 50th anniversary
of the first moon landing, and proud
as well of our many members that are
engaged in planetary sciences. We look
ahead to where our drive for exploration,
understanding and development will take
us. We are Explorationists!
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 10 By BARRY FRIEDMAN, EXPLORER Correspondent
A Call to Civility
Geosciences in the Media Award
Harber in Washington, D.C. moderating a televised debate on the Simpson-Bowles Commission at The George Washington University
A
aron Harber said he owes his career
not to the presidents, legislators,
industry leaders and Supreme Court
justices he’s interviewed, but … to an
angry Rush Limbaugh.
Limbaugh tried suing him.
After starting out doing stints on “Talk
of the Rockies Network” on the Denver
Broncos & Colorado Rockies satellite
channel, Harber was offered a gig at Talk
America Radio, which would appear on 51
stations across the country.
“We named it ‘After the Rush,’” said
Harber, “but Rush Limbaugh didn’t like
that and sued us for $20 million.”
The suit took a year and a half before
being dismissed – a period in his life that
Harber said “was a gargantuan waste
of time and money,” but “due to the
publicity of our victory, I was offered the
opportunity to try out for a program on
Colorado Public Television. So, while it
wasn’t fun to be facing a $20 million claim
(that’s real money!), I owe my television
career to Rush!”
“The Aaron Harber Show,” a weekly
television program seen nationwide on
AXS (a show on which Harber also acts as
EXPLORER AUGUST 2019
executive producer) is aimed at promoting
mutually respectful civil discourse, which
is the way Harber wants it. He said
the show is in “diametric opposition”
to television’s typical use of gratuitous
conflict, false controversy, polarization and
personal attacks – and that includes the
interviewing of geologists and discussing
the issues facing the industry.
Running such a show in Colorado, of
course, entails coverage of numerous
topics that directly affect the oil and gas
industry – topics like hydraulic fracturing,
energy resources, petroleum geology,
environmentalism and others.
A Background in Geoscience
Harber knows those topics as well as
his guests.
“Communicating with the geology
profession, especially in the energy arena,
is easier for me than most journalists.
My geology professor at Princeton was
Kenneth Deffeyes and I served on the
Advisory Council for the Department
of Civil and Geological Engineering at
Princeton University,” he said.
Harber also has an academic
background that includes thesis-level
research in energy. Moreover, he has
worked for the U.S. Department of Energy,
the U.S. Federal Energy Regulatory
Commission, the U.S. Energy Information
Administration, as well as Xcel Energy.
“The fact I am a mineral rights owner and
royalty recipient also adds to that unique
perspective few journalists have,” he said.
Harber said that when he talks to
geologists, unlike many politicians, he
finds the give-and-take to be relatively
straightforward, easy and welcomed.
“I also believe geologists, as a group,
are open-minded when involved in
fact-based discussions and, although
passionate about issues, are willing to
be convinced if the evidence leads to
conclusions they may not otherwise have
surmised,” he said.
He said other disciplines, especially
the political arena, could benefit from
such a mindset.
“We need more people like geologists,”
he said.
Evidently, geologists feel the same
way about Harber. His reputation
among geologists and AAPG members
in particular for his integrity and
effectiveness as a journalist in advancing
public understanding of issues related
to the industry and profession earned
him this year’s Geosciences in the Media
Award, which AAPG awards in recognition
of “notable journalistic achievement
in any medium which contributes to
public understanding of geology, energy
resources, or the technology of oil and
gas exploration.”
Making Complexity Intelligible
Harber studied at the John F. Kennedy
School of Government at Harvard. When
asked about the intersection between
politics and the geosciences, whether the
two are ever taught in tandem, he said
there is always something missing.
Guess which one?
He explained, “While I was at the
Kennedy School – and I enjoyed my
experience there – I can’t say there was
much of an intersection between politics
and the geosciences. There were a lot of
politics and related fields, but there was a
paucity of the geosciences. Surprised?”
He said part of the reason is because
the subject matter doesn’t lend itself to
cursory coverage.
“The industry is complex and I would
say many journalists (though he said
there are some who are top-notch) do not
always fully understand the profession,”
he said.
One of the challenges, then, for both
reporters and even Harber himself, is
making complex subjects intelligible to
a reader or viewership that often is less
knowledgeable than even they are.
Watching Harber’s ease with a variety
of people from a variety of professions,
it’s understandable how he lands so many
top-notch interviews.
Speaking of, the Mueller pieces for him
were a special point of pride.
“Having done more television
interviews and having more time with
Robert Mueller, a decorated war veteran
and American hero, has been one of the
highlights of my career. Mueller is not fond
of the press, to put it mildly, and generally
does not trust reporters,” he said.
It seems Mueller trusted him more than
others.
“The fact the deputy director of the FBI
told me Mueller gave me more time than
any other television journalist while he
was director of the FBI was and remains
humbling,” said Harber.
Continued on next page u
 AUGUST 2019 EXPLORER.AAPG.org 11
t Continued from previous page

Considering the role Mueller occupied

in the national conversation over the past
few years, Harber thinks everyone should
watch one or more of his interviews with
the former FBI director to see and hear
firsthand how the man thinks and reasons.
Harber is not a political firebrand and
his purpose is not just to get at the truth,
but to get at the commonality between
sides and dispel the hoary clichés and
misconceptions, including those in the
geosciences.
“While I understand the knee-jerk
assumptions that (a) Republicans are
good for the Industry and bad for the
environment and (b) Democrats are bad
for Industry and good for the environment,
this very often simply isn’t true,” he said.
He said the divisions are more
complex.
“After all, it was Republican President
Richard Nixon who led the creation of the
Environmental Protection Agency. And,
historically, for the most part, Republicans
in many states, especially Colorado, have
supported all kinds of environmental
protection: open space, wildlife refuges,
water conservation, etc.,” he explained.
On the area of regulations, he sees both
sides often over-shooting their targets.
“Complex regulations proposed by Harber at the Colorado Convention Center as the
Master of Ceremonies for a 3,000-person event
Democrats can backfire, especially
when they fail or end up hurting lower
income citizens far more than anticipated. science of climate change, as public
Similarly, Republican proposals to reduce opinion polling demonstrates.
or eliminate regulation are not always “If the science is settled, then those
analyzed thoroughly ahead of time and most concerned about climate change
can result in changes backfiring,” he said. should be eager to confront those they
Harber, who has won Broadcaster of believe are wrong?” he said.
the Year from the Colorado Broadcaster
Association, has interviewed – more A Platform Without Preconception
than anyone else, actually – Democratic
presidential candidate and former Harber said that creating such a
Colorado Gov. John Hickenlooper, who platform – for this or any topic – and
also happens to be a geologist and former doing it without preconception, is worth
AAPG member. pursuing. It’s one of the reasons he’s
“We’ve done over a dozen shows receiving this award – even if he’s not
together, starting before he even ran for entirely sure how it happened.
mayor of Denver. He’s a sharp, smart, “I’m very honored to receive the award
successful, strategic, funny and caring and appreciate those who evidently
man,” said Harber. nominated me without my knowledge (I’m
not complaining),” said Harber.
The Great Debate He said that to be recognized by the
extraordinary membership of the AAPG
As for the biggest debate still out there has been “one of the highlights of my
– the one that does intersect politics and career” because of the recognition of the
geology, Harber said it’s time for a debate contribution he’s made to the profession
among those with different views. – a contribution that includes creating
“We have begun a project titled, ‘The more broadcast programs on energy and
Great Climate Change Debate: What Does the environment than anyone else in the
The Science Really Say?” he said. history of television.
It is a show that will run through 2020, His goal is to create a forum where
and is part of “The American Civility people, from celebrities to experts to
Initiative.” As the title indicates, the show public officials to businesspeople to
aims civil discussions on the great issues artists to regular folks, “can discuss
of the day. and debate both important issues and
On climate, he said he thinks it’s been not-so-important issues of the day for the
a mistake, as well as arrogant, for climate educational and entertainment benefit of
scientists to have avoided debating the all viewers.”
EXPLORER

Harber in Washington, D.C. moderating a televised debate on the Simpson-Bowles Commission at

The George Washington University
 12 By DAVID BROWN, EXPLORER Correspondent
Brazil and Guyana Lead the Way in
Latin American Oil Exploration
A
fter years of a brutal industry
downturn, Latin American oil and
gas is finally starting to get back its
strength.
But just barely, according to Aditya
Ravi, senior analyst for consulting firm
Rystad Energy in Oslo.
Challenges for the Latin American
oil industry include a financial hangover
from the oil price collapse, political
uncertainties and a struggle to replace
declining production.
In Latin America, “Brazil and Guyana
are the hotspots when it comes to
exploration offshore. Until something big
comes up in Argentina, it’s unlikely” those
provinces will be overshadowed soon,
Ravi said.
Brazil
Brazil’s recent past illustrates the
problems caused by years of depressed
oil prices. Combined with a government
corruption scandal, the downturn
essentially halted exploration and
discovery in the country’s offshore sector.
A licensing round in 2015 met with
near disaster. The Brazilian national
hydrocarbon agency, ANP, reportedly
offered licenses on 84 blocks in six
offshore basins and sold only two.
Ravi described Brazil’s upturn in
activity as a bounce-back from the
depressed years.
“Because of the record (number of)
LATIN AMERICA AND CARIBBEAN ISSUE
floater agreements signed before 2014,
we see significant growth in supply
in 2019-20 as the floaters are now
commencing production,” he said.
“We see the growth flattening a bit in
2021-23 due to the long-cycle effect – the
lack of floater awards in Brazil in the 2014-
17 period with oil prices collapsing and
the infamous Car Wash scandal,”
he added.
Guyana
Investment interest from the majors
and other large industry players is
assisting the current comeback effort by
Latin America’s national oil companies.
ExxonMobil, with its hugely successful
offshore Guyana operations, has been
especially active.
“Activities did take a hit (during the
downturn), but offshore is a long-term
focus. The companies involved are big-
name companies. These aren’t small
names,” Ravi said.
Mexico
Political forces and depressed
economics also have affected the
industry’s outlook in Mexico, which
introduced investment and licensing
reforms in 2013-14.
“In Mexico, they embarked on this
ambitious plan before the oil price
collapse,” Ravi noted.
License rounds
and farmouts in
Mexico ultimately
affected about 110
blocks, he said, but
the drive to continue
inviting foreign
participation has
been in doubt since
RAVI last year’s election of
Mexican President
Andrés Manuel Lopez Obrador.
Obrador questioned the effectiveness
of the industry reforms, moved to
strengthen national oil company Pemex
and canceled planned licensing offers for
three years.
“That’s been put on hold until all the
rounds are investigated for any kind of
corruption. We don’t see any additional
bid rounds to 2020, but from 2021 forward
we definitely see things happening,” Ravi
said.
Mexico’s challenge is to turn around a
serious decline in oil production. There’s
been a lot of talk about addressing the
situation but without meaningful progress,
Ravi noted.
“Actions have fallen short of delivering
results as production continues to
decline,” he said.
“In terms of development, we do
see these relatively shallow mid-sized
offshore fields being fast-tracked for
development,” Ravi added.
But the big potential lies in deepwater
offshore exploration and drilling, he
observed.
On Mexico’s Trion block, “the BHP
appraisal is being drilled right now and
that is very interesting. The Etzil well by
Total is interesting,” Ravi said.
The ultra-deepwater Etzil prospect,
offshore Mexico in Block 2 off the Perdido
Fold Belt, had a 2.7 billion barrels-of-oil-
equivalent pre-drill potential resource
estimate.
Colombia
Improving financial results after the oil
industry’s down years are now boosting
the outlook for many Latin American
energy companies.
In June, Ecopetrol reported that
Standard & Poor’s had upgraded its
stand-alone credit rating to investment
grade, a sign of fiscal recovery. Ecopetrol
is Colombia’s primary oil company.
Earlier this year, both Ecopetrol
and ExxonMobil signed joint venture
agreements with Spanish oil company
Repsol for offshore exploration in the
Caribbean. The ventures will target two
blocks of about 988,000 acres (400,000
hectares) each.
Colombia recorded the greatest
number of oil and gas discoveries
worldwide in the second quarter of 2019,
according to a report from data analytics
See Argentina page 15 u
 LATIN AMERICA AND CARIBBEAN ISSUE By EMILY SMITH LLINÁS, EXPLORER Correspondent 13

The Gem of the Caribbean

Exploration opportunities in Barbados
W
ith proven onshore potential,
Barbados is set to announce a
new offshore licensing round.
When in it comes to offshore
exploration in the Americas, the U.S. Gulf
of Mexico, Brazil and Guyana tend to
steal the spotlight. Recent studies in the
Caribbean, however, show companies
that they may need to look closer at
countries with a smaller footprint. One
such place is Barbados.

100 Years of Onshore Production

Barbados, a 430 square-kilometer

island in the Southeast Caribbean, is best
known for its beaches, friendly people,
exotic food, world-renowned rum and
iconic cricket players. Tourism drives the
economy, employing 8 percent of the
island’s 280,000 residents and accounting
for approximately 12 percent of GDP.
Jamar White, director of the Natural
Resources Department at the Ministry of
Energy and Water Resources, said he
hopes that Barbados also will be known
for its offshore hydrocarbon potential. is responsible for facilitating and onshore. With the onshore potential have confirmed the presence of migrated
“Despite being classed as a small promoting the sustainable development proven, Barbados now is looking offshore. hydrocarbons at or near the seabed, with
island developing state with limited and exploitation of the country’s further evidence provided through the
natural resources, Barbados boasts onshore and offshore natural resources. Offshore Potential Leads presence of direct hydrocarbon indicators
over 100 years of onshore oil and gas Responsibilities include managing on seismic. The potential for commercial
exploration and production,” he said. the Offshore Petroleum Program and “Onshore, production is from the quantities of hydrocarbons offshore is
“To date, the Barbados National Oil regulating the Barbados National Oil Eocene turbidite reservoirs of the Scotland further supported by the proven onshore
Company has produced in excess of 10 Company’s onshore operations. Formation. With respect to the offshore petroleum system on the Barbados
million barrels of oil and 22.8 billion cubic White said surface and subsurface acreage, reservoir targets have been Ridge,” he added.
feet of associated gas from its onshore geological mapping, well correlation, identified in both Neogene and Paleogene
Woodbourne oil field.” petrophysical analysis and gravity data aged clastic deposits,” he said.
A 14-year ministry veteran, White have been used to drill over 250 wells “Offshore hydrocarbon seep studies See Barbados page 26 u
14 By DAVID BROWN, EXPLORER Correspondent
LATIN AMERICA AND CARIBBEAN ISSUE
Oil Exploration
Launches in the
Dominican Republic
G
eorge Michael could have been
singing about the oil and gas industry:
“You gotta’ have faith, faith, faith … ”
The Dominican Republic certainly
showed faith when it launched its first-ever
oil and gas licensing round in July. Danilo Medina’s office, said Nisael Dirocie
Exploration in the country dates back to
the early 1900s, with little success. Minor
oil production from two small fields was
recorded during the 1940s and additional
drilling occurred in the 1990s, but official
estimates have consistently put Dominican
Republic proved reserves at zero.
Relaunching exploration in the country
was a direct mandate from President
Matos, director of regulation, importation
and uses of hydrocarbons in the
Dominican Republic Ministry of Energy
and Mines in Santo Domingo.
Dirocie Matos said the ministry hopes
to attract investors in a competitive
bidding round, with low cost of entry,
frontier exploration opportunities,
competitive and simple terms, transparent
rules and flexible contracts.
Several other Caribbean-area
countries, including Jamaica and Cuba,
have recently tried to lure industry
investment and expertise to kickstart
hydrocarbon activities.
Steps to Attracting Industry Interest
Efforts toward a licensing round in the
Dominican Republic date back several
years, and the country created a virtual
how-to manual for luring industry interest.
First, it contracted with Schlumberger
to create a comprehensive national
hydrocarbons database of information
about the country’s oil and gas potential,
including results from various studies
dating back to 1904.
According to Alberto Reyes, vice-
minister of hydrocarbons, the database
drew on 1,491 maps and figures, 805
seismic profiles, 212 oilfield registers
and more than 11,370 miles (18,300
kilometers) of 2-D seismic, plus other
geophysical, seismic and geological
information.
It includes data from 84 oil wells and
perforation structures, he said.
Next, the ministry made the database
and related information freely available
on its website, along with a slide show
created by Schlumberger, “Areas of
Interest for the Hydrocarbon Exploration
Industry.”
The slide show details geological and
seismic data for six potential hydrocarbon
basins: Enriquillo, Azua, San Juan, Ocoa,
Cibao Oriental and San Pedro de Macoris.
A seventh basin, Llanura Oriental, is
mentioned but not highlighted.
Then the ministry reached an
agreement with international research
and consulting firm Wood Mackenzie to
roll out the bidding round with an industry
roadshow presentation in Houston on
July 10.
“This is why we contracted Wood
Mackenzie, to make sure that we follow
the best practices in the industry by
offering an attractive package,” Dirocie
Matos said.
Licensing Round
The licensing round offers 14 total blocks:
u S an Pedro Basin – four
offshore blocks
u Cibao basin – six onshore blocks
Continued on next page u

Argentina
from page 12
and consulting company GlobalData. It
reported seven discoveries, all onshore.
Five were conventional oil discoveries
in the Putumayo and Llanos Orientales
basins, and the other two conventional gas
finds in the Lower Magdalena Valley basin.
Argentina
YPF, Argentina’s national oil company,
is pursuing expanded operations in
the country’s Vaca Muerta shale play.
According to news service BNamericas,
offset oil and gas production declines. Its
shale investments are expected to grow
from this year’s planned $1.5 billion to $3
billion in 2022.
From the Vaca Muerta shale, “we saw
40,000 barrels of oil a day at the beginning
of 2018. At the end of the year we could
see that going up to 80,000, so there are
already steps being taken,” Ravi noted.
Total natural gas production from Vaca
Muerta exceeded 1 billion cubic feet per
day in December 2018, he said.
“Argentina began exporting gas in
June. It plans to export during the summer
season, basically, when domestic demand
is lower. The demand would still exceed
supply during winters,” he observed.
AUGUST 2019 EXPLORER.AAPG.org 15
changer, but just to monetize over-supply,”
Ravi said.
In recent years, Argentina has
struggled to support unconventional
development with subsidies, including
a supported price for natural gas.
Difficulties came partly from the industry
downturn and its effects, party from the
country’s own internal financial problems.
“The government promises $7 and
it makes up the difference – if gas is
at $4.50 it adds the other $2.50. The
government sort of subsidizes production.
That makes it quite profitable for
investors,”
Ravi noted.
mixture of exploration and development
opportunities with a serious, imminent
need to address production declines.
“Overall it’s flattish because of the
decline in Mexico and Venezuela being
offset mainly by Brazil and Guyana in the
late 2020s,” Ravi said.
For big production, “Guyana is
definitely next. Exxon is going to keep
adding more and more floaters as we go
along through the years,” he noted.
In the foreseeable future, Latin
American oil production looks like it will be
a balancing act, according to Ravi.
“Where there is growth there’s huge
growth. And where there’s decline, there’s
huge decline,” he said.

the company won a bid round for the
play’s Aguada del Chañar area in June.
In a strategic move, YPF has shifted its
focus to further shale oil development to
EXPLORER
Gas from Vaca Muerta also helped the Regional Outlook
country export its first LNG cargo from the
Tango floating liquefaction unit, although He described the general outlook
for Argentina, LNG is “not a game for Latin American oil and gas as a

upcoming submission deadlines

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Visit http://library.seg.org/page/Interpretation-special-sections for more details about these sections.

MAY 2020 ◗ Integrated Geophysical Imaging

Medina
t Continued from previous page
 nriquillo basin – three
u E
onshore blocks
u Azua basin – one onshore block
Dirocie Matos described the Cibao
basin as lying along the country’s northern
strip, the Azua and Enriquillo basins in the
southwest bordering Haiti, and the San
Pedro de Macoris Basin offshore to the
southeast.
Expected closing of the current
licensing round is in December 2019.
Initial contract phases for evaluation
are two years onshore and three years
offshore, and license terms include a
minimum investment of $2 million for
onshore blocks and $4 million for offshore
blocks.
Exploration license periods will apply
for up to eight years onshore and 10
years offshore, divided into three work-
phase periods with a possible one-year
extension per period, subject to the
ministry’s prior approval.
A Minimum State Participation Tax
sets the lower end of the country’s share
at no less than 40 percent of cumulative
undiscounted profits.
After years of gathering data and
laying the groundwork, the Dominican
Republic was finally able to introduce
its first oil and gas licensing round, with
assistance from Schlumberger and Wood
Mackenzie.
And a lot of faith.
“In the roadshow last week we had
more than 20 companies from more than
10 different countries attend and show
interest in our licensing round,” said
Dirocie Matos, with representatives from
Total, Shell, Repsol, Exxon Mobil, Eni,
Apache, Tullow Oil and other companies
at the event.
EXPLORER
◗ Characterization of the subsurface stress, Submission deadline: 1 November 2019
deformation, and pore pressure Special-section editors: Irina Filina, Rao Yalamanchili, Simone
Submission deadline: 1 September 2019 Re, Daniele Colombo, Antony Price, Vsevolod Egorov, and
Special-section editors: Gang Luo, Rui Zhang, Wei Gan, Junhua Guimin Liu
Guo, and Jon Jincai Zhang
◗ Formation evaluation
◗ Reservoir Characterization by Integrating using petrophysics and
Multidiscipline Data borehole geophysics
Submission deadline: 1 September 2019 Submission deadline:
Special-section editors: Bo Zhang, Yuming Liu, Shuvajit 1 December 2019
Bhattacharya, Shan Huang, Bin Zhao, and Fan Song Special-section editors:
Hua Wang, Hu Li, Bo Zhang,
AUGUST 2020 Shuvajit Bhattacharya,
◗ Europe: Diverse subsurface Zhaohui Xu, and Bin Zhao
characterization challenges ◗ Seismic interpretation
Submission deadline:
of fractures in deep
1 October 2019 subsurface
Special-section editors: Christian Submission deadline:
Henke, Harald Granser, Ketil 1 December 2019
Hokstad, Susanne Witte, and Paul Special-section editors:
de Groot Zonghu Liao, Liyun Fu, Lianbo
◗ Shallow urban underground cavity survey technology Zeng, Huayao Zou, Xiaofeng
and environmental geophysics Chen, Brett M. Carpenter, and
Submission deadline: 1 October 2019 Fang Hao
Special-section editors: Rongyi Qian, Jin Yang, Xinfu Li, and
◗ Submarine and Sublacustrine Landslides
Qisheng Zhang Submission deadline: 1 December 2019
◗ Geophysics Approaches to the Exploration of Porphyry Special-section editors: Dallas Dunlap, Lorena Moscardelli,
Copper-Gold Deposits Davide Gamboa, Ovie Emmanuel Eruteya, and Ruarri Day-Stirrat
Submission deadline: 1 November 2019
Special-section editors: Ken Witherly, Richard Smith, Christian
Dupuis, Bill Morris, Sarah Devriese, Colin Farquharson, Jon
Woodhead, Dick Tosdal, Bill Scott, and Hernan Ugalde
Interpretation is a peer-reviewed journal copublished by SEG and AAPG to advance the practice of subsurface interpretation. Papers will be published online
as they are accepted, edited, and composed, with issues printed quarterly in February, May, August, and November. Each issue contains at least one special
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*E-mail interpretation@seg.org to inquire about submitting manuscripts past the submission deadline. Some sections may have increased flexibility
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16 By AAPG
EXPLORER AUGUST 2019
AUGUST 2019 EXPLORER.AAPG.org 17
 18 By BO ZHANG, YUMING LIU, XINMAO ZHOU, ZHAOHUI XU
Geophysical Corner
Accelerate Well Correlation with Deep Learning
Figure 1. Three representative well logs showing the first-, second-, third-, and fourth-order sequences.
W
ith the relatively low price of oil
and gas, the identification of
bypassed pay in mature oil fields
has become increasingly important.
Mature – often called “brown” – fields
may be characterized by thousands
of wells acquired at different times by
different operators. The high density of
wells makes this type of field a candidate
for analysis using techniques originally
developed for 3-D seismic interpretation,
such as the development of well-log
attributes. There are two kinds of attributes
used in seismic interpretation: explicitly
generated attributes, such as coherence
and impedance volumes used in interactive
interpretation, and implicitly generated
attributes computed internally by machine
learning algorithms.
Conventional well log analysis is based
on interactive, interpreter-based pattern
recognition. A skilled interpreter identifies
similar patterns (such as upward fining and
coarsening) in neighboring wells and links
them using a conscious or subconscious
stratigraphic sequence model. Tying
dozens of wells is time consuming. Tying
thousands of wells is both time consuming
and error-prone. In this case study from
northeast China, there are approximately
7,000 wells acquired over a period of 40
years. Careful, interactive interpretation has
provided 100 intersecting cross-sections
tying a total of 1,786 wells.
Investing precious human interpreter
Bo Zhang is an
assistant professor in
exploration geophysics
at the University of
Alabama. He received his
bachelor’s in geophysics
in 2002 from the China
University of Petroleum-
Huadong. He received
his master’s degree in geophysics at the
Institute of Geology and Geophysics,
Chinese Academy of Sciences and a
doctorate in geophysics at the University of
Oklahoma. He joined Michigan Technological
University as a visiting assistant professor
from 2014 to 2015. His current research
activities include broadband seismic
data processing, development of new
seismic attributes, pattern recognition of
geologic features on 3-D seismic data, and
artificial intelligence in assisting geological
interpretation and reservoir characterization.
EXPLORER AUGUST 2019
time to analyze the remaining five thousand
wells is not cost-effective. We therefore
propose the following workflow:
u First, interactively interpret key cross-
sections using a sequence stratigraphic
framework as we have done in the past.
u Next, use these logs and picked well
tops as training data for convolutional
neural network-aided interpretation of the
remaining well tops.
u Finally, generate thickness and
porosity-thickness maps using all the wells
and quality control the results.
Geological Background
The research oil field located within
the Songliao Basin of northeast China has
produced oil for more than 45 years. The
target is a Middle Cretaceous lacustrine
delta. The research oil field covers an area
of 107 square kilometers encompassing
6,992 wells. The field engineers divided
the reservoir formation into four orders of
hierarchal units to better manage the field
development (figure 1). There are one, four,
10 and 31 members for the first-, second-,
third-, and fourth-order units, respectively.
Well Correlation Using the
CNN SegNet Algorithm
Human interpreters define sequence
boundaries and lithologic units by their
well log patterns. A machine learning
Yuming Liu is an
associate professor
in petroleum geology
at China University of
Petroleum-Beijing. He
received his bachelor’s
degree in petroleum
geology in 2000 from
China University of
Petroleum-Huadong, his doctorate in
geological resources and engineering in
2009 from China University of Petroleum-
Beijing. He worked as a postdoctoral
researcher at Daqing Oilfield Company,
CNPC from 2009 to 2011. He joined
the University of Alabama as a visiting
scholar from 2017 to 2018. His research
interests are in reservoir characterization
and modeling, sedimentary geology and
petroleum geology.
Figure 2. The 1-D image converted using SP, RMG, and RMN logs, and the coarser second-order sequence labels are used as
input for the well correlation using deep learning.
algorithm like CNN is trained by a human
interpreter to recognize these patterns
and subsequently “segment” the well
log data into units it has been trained to
identify. In machine learning, the interpreted
sequences are called “labels.” Some of the
human-interpreter labels are used to “train”
the algorithm, others to “test” them and still
others to “validate” the prediction. Once
validated as being sufficiently accurate,
the trained CNN is applied to all the wells.
CNN generation of the predicted facies is
fast and quite accurate; however, as with
interpretation by multiple geoscientists, the
results need to be quality controlled, and if
necessary, modified. The first, second, and
third panels in figure 2 show spontaneous
potential (SP), micro gradient (RMG), and
micro potential (RMN) logs, respectively.
The fourth panel in figure 2 shows a 1-D
image generated using SP, RMG and RMN
logs. The fifth panel in figure 2 shows the
interpreted second order sequence by
human interpreters. We chose 463 wells
out of human-correlated 1,786 wells to
construct our CNN.
Training, Testing,
Validation and Accuracy
We randomly select 65 percent, 40
percent, 20 percent and 10 percent
subsets of the 463 wells to form the
training data set to determine how the
accuracy of our prediction depends on the
Xinmao Zhou is
a senior reservoir
engineer in oilfield
geology at Research
Institute of Petroleum
Exploration and
Development (RIPED),
CNPC. He received his
bachelor’s degree in petroleum geology in
2000 from China University of Petroleum-
Huadong, his master’s in sedimentology
from China University of Petroleum-
Beijing, his doctorate in oil and gas field
development engineering in 2009 from
RIPED, CNPC. His research interests are
in reservoir characterization, sedimentary
geology and oilfield development
management.
size of labeled input data. Thus, the first
(65 percent) prediction used 300 wells
for training and 163 wells for testing, the
second (40 percent) prediction used 185
wells for training and 163 wells for testing.
The third (20 percent) prediction used 93
wells for training and 370 wells for testing.
Finally, the fourth (10 percent) prediction
used only 46 wells for training process and
417 wells for testing.
The “prediction accuracy” is defined as
Samples with correct prediction
Accuracy(%)= (1)
Total samples of the well logs
Figure 3 shows the prediction accuracy
for the second-, third-, and fourth-order
geological units, showing that we obtain
a high accuracy for all the second and
third order units. In contrast, we obtain a
significantly lower accuracy for some of
the fourth order units. We attribute some of
this lower fourth-order accuracy to greater
lateral lithologic heterogeneity. Figure 4
shows the predicted results for well W438
at different orders for the four training data
experiments. The colored panel marked “V”
shows the interactively interpreted units
provided by the oil company data owner.
The colored panels marked 1, 2, 3, and 4
show the results when using 65 percent, 40
percent, 20 percent, and 10 percent of the
wells in training.
Continued on next page u
Zhaohui Xu is an
associate professor
of geology and
geophysics at the
China University of
Petroleum-Beijing.
He received his
bachelor’s degree
in applied geophysics from China
University of Petroleum; his master’s in
geophysical prospecting and information
technology and his doctorate in geological
resources and geological engineering
from the China University of Petroleum-
Beijing. His research interests are in
reservoir characterization and modeling,
petrophysics and formation evaluation,
and big data analysis in assisting reservoir
characterization.

Figure 3. Chart showing the accuracy in predicting (a) second, (b) third, and (c) fourth order units using 65 percent,
40 percent, 20 percent and 10 percent of 417 interactive interpreter generated labels as training data.
t Continued from previous page
The end product is a suite of highly
detailed maps (figure 5). Such maps can
then be integrated with 3-D seismic data for
a more complete geostatistical inversion.
Conclusions
Convolutional neural networks have
been used to identify objects for self-driving
cars as well as faults and salt domes on
seismic data. Here we show that CNN
holds great promise in interpreting the large
amount of well log data in mature oil fields.
Current CNN predictions are not perfect
and need to be quality controlled. However,
in this data volume, only 25 percent of the
available data justified reinterpretation
using traditional interactive workflows,
such that 75 percent of the data are
currently ignored. CNN provides a means
to incorporate these additional data into a
more complete analysis in a timely manner.
Reinterpretation of mature, data-rich oil
fields may require a year of interpreter time.
Rather than using a team of geoscientists
AUGUST 2019 EXPLORER.AAPG.org 19
Figure 4. The predicted results for a representative well showing the SP, RMN and RMG data used as input for (a) second-
order, (b) third-order, and (c) fourth-order sequences. Colored column “V” three shows the sequence boundaries constructed
through conventional interactive interpretation, providing a “validation” of our prediction. Colored columns 1, 2, 3, and 4 show
the predicted sequences for the four training tests described in Figure 3. Note the greater misalignment of the predicted
sequences in (c) when using only 10 percent of the data for training.
Figure 5. Representative fourth-order sequence thickness maps obtained by using CNN applied to predict the tops
of 463 wells, using 20 percent of wells as training, and 80 percent as testing data. The higher accuracy prediction of
sequences S424 and S121 are a due to relatively uniform lithofacies across the whole oil field. In contrast, the medium
accuracy for sequences S211 and S232 are due to the high lateral lithologic heterogeneity, implying that patterns or
in-context information identified by the skilled
to accelerate this process and introducing (Editors Note: The Geophysical Corner is
inconsistencies, CNN may provide a means a regular column in the EXPLORER, edited by
to provide an interpretation consistent Satinder Chopra, chief geophysicist for TGS,
with the patterns identified by the lead Calgary, Canada, and a past AAPG-SEG Joint
interpreter. Distinguished Lecturer.)
EXPLORER
 20 By DRIELLI PEYERL
EXPLORER AUGUST 2019
Historical Highlights

Petrobras and
‘The Most Famous Geologist in the World’
Walter Link and the beginning of exploration on Brazil’s continental shelf

D
uring the 1950s, Walter Karl Link
was considered one of the world’s
best oil exploration geologists,
often compared to Wallace Pratt, John E.
Brantley, Everette Lee DeGolyer, Lewis
MacNaughton and A. I. Levorsen. His
renown aroused the interest of a newly
created oil company in Brazil, called
Petrobras.
Link was born in La Porte, Ind., on Oct.
26, 1902, graduated from the University
of Wisconsin in 1924 with a degree in
geology and gained experience over the
decades with Standard Oil Co. of New
Jersey, working in several places around
the world, including in Latin America.
In Brazil, the state monopolization
of the oil industry was authorized with
the creation of Petrobras in 1953, after
a long dispute between the so-called
“nationalists” and “entreguistas” (a term
meaning “servile” or “giving-in” – those
who advocated opening the oil sector
to external capital). The newly formed
company decided to invest mainly in the
exploration and production sectors.
One of Petrobras’ goals was to
organize a Department of Exploration,
based along the lines of the most
successful international companies.
To investigate the possibility of finding
oil in great quantity in Brazil, Petrobras
recruited Link in 1954, who was by
then considered one of the most
highly reputable petroleum geologists
in the world. He was hired as chief
superintendent of the Department
of Exploration and charged with the
responsibility of finding oil and assuring
the highly-desired goal of national self-
sufficiency in petroleum.
National Pariah
Despite his renown and proven
reputation, to the Brazilian nationalists,
the hiring of Link was an affront to the
nationalist fervor of the period and
antithetical to their idea of a state
monopoly established for Petrobras. Link
was regarded as an enemy even before
he began, and the feeling intensified
during his work in the company. The
national newspapers highlighted his
high salary and complained that he was
at the beck-and-call of the international
oil companies. While some Brazilian
newspapers ran favorable headlines such
as “North American Technician Plans
the Rush of Brazilian Oil” and “Leading
the works of Petrobras, the most famous
geologist in the world, Walter Link,” others
published disparaging headlines like,
“The hiring of Walter Link and the boycott
of Petrobras” and “Mr. Link receives
$125,000 to prevent the discovery of oil.”
Best Exploration Team
Money Could Buy
Link began his work with the intention
of implementing a program never
undertaken by any oil company in any
country outside the United States and
Canada. In the beginning of his tenure,
Link reported the precarious conditions
of the Brazilian oil industry, such as the
lack of equipment and of highly qualified
professionals, as well as the incomplete
Walter Link from Brazil’s O Cruzeiro magazine
knowledge of the vast Brazilian geological
basins.
In 1955, to solve some of these
problems, Link went to the United
States with the goal of hiring American
professionals, mainly geologists and
geophysicists. The lack of professionals
was a huge problem in Brazil, so
Petrobras began investing more heavily in
training its own workforce.
That is how they planned and
organized the Department of Exploration
– to allow Link to create and lead the
best exploration team money could buy.
Link’s optimism and enthusiasm about
the possibilities of finding oil in Brazil
eventually made an impact in the press,
who described him as “a true technician”
and “real man of science.”
Petrobras and the Department of
Exploration invested in paleontology,
stratigraphy and sedimentology labs,
which made huge advances in the fields
of micropaleontology and palynology.
Link created an ambitious program of
exploration. He organized the Department
based on industry norms in North
America, gathered previous research
and visited the Brazilian sedimentary
basins. After that, he decided to invest
in areas such as Bahia State (where the
first oil well was discovered in 1939), the
Amazonas Basin (due to its vastness
and closeness to Venezuela) and the
Paraná Basin (due to its geographic and
economical value). Link placed a large
number of geophysical teams in the field,
who worked in areas still unexplored and
drilled more exploratory wells than any
other single company.
The Link Report
Historically, there had always
been a great interest in exploring the
Amazon Basin, but the difficulties with
transportation due to vast rivers and
wetlands, the geological problems
Petrobras’ offshore and onshore production basins. Image courtesy of Petrobras
imposed by intrusive rocks such as basalt
flows and diabase, and inadequate
logistical support – all of these factors
challenged the attempts to map structures
with seismic.
During this period, some 60 percent
of the budget of the Department
was invested in the Amazon Basin.
Nevertheless, by the beginning
of the 1960s, a sense of profound
discouragement prevailed due to the
numerous unsuccessful attempts.
In 1958, Link still insisted that the
lack of professionals and the difficulty
of recruiting qualified professionals
were among the key problems of the
Department of Exploration. Thus,
Petrobras invested in different courses
that were given by foreign and Brazilian
professionals to train Petrobras’ own
workforce, including degreed courses in
geology.
The next year, Link attended the Fifth
World Congress of Oil to present his
research on “The Sedimentary Framework
of Brazil.” In this paper, Link affirmed that
the only commercial oil in Brazil was in
Walter Karl Link in Chicago during his 1955 recruiting trip.
Photo from R. H. Dott Jr.’s “The Outcrop.”
the Recôncavo Basin, where a reserve
of more than a billion barrels had been
discovered. This work officially presented
Link’s first pessimistic results for finding
oil elsewhere onshore, bringing negative
economic effects for Petrobras.
After six long years working at
Petrobras, Link sent a detailed report
to the president of the company, Idálio
Sardenberg in 1960. The report was
the opinion of 14 well-known geologists
(six Brazilians and eight foreigners),
which affirmed the lack of oil deposits in
the Brazilian intracratonic sedimentary
basins. The “Link Report,” as it became
known, suggested that the investments
of Petrobras should be directed to other
areas, such as the Continental Shelf and/
or in other countries.
The “Link Report” fell into the hands of
the press, and it was published without
permission. Brazil did not expect such
negative claims, and the results of this
publication were detrimental to the
national economy. Link was publically
condemned, being called “Public Enemy
No. 1,” “Saboteur No. 1,” “A ‘puppet’
of the Standard Oil Company” and
“entreguista.”
In short, the early ‘60s were turbulent
for both Petrobras and Brazil. In addition
to Walter Link’s words haunting oil
policy and economics, there was also
enormous pressure from the populace.
It seemed scarcely believable that
a country with such a vast territorial
expanse did not have marketable oil
reserves.
Unsung Hero
Link stayed in the position until
Dec. 31, 1960, when he went back to
the United States, seemingly a failure.
However, two years after Petrobras
was founded in 1953, the average
Continued on next page u

Walter Link reclining on a petrified tree trunk (Triassic) with sons Andy (left) and Peter (right) at the Petrified Forest
National Monument, Arizona, in 1951. Photo from R.H. Dott Jr’s “The Outcrop.”
t Continued from previous page
production was only about 6,000 barrels
of oil per day. Five years later, after the
era in which Walter Link headed the
Department of Exploration, the daily
production had increased nearly twelve-
fold, to about 71,000 BOPD.
Link put into practice the best
technologies of the day for geologic
research and oil exploration in Brazil.
This created a lasting impact on the
organization of, and work produced
by, the Exploration Department of
Petrobras. Several articles and books
mention only the negative aspects
caused by the “Link Report” and forget
AUGUST 2019 EXPLORER.AAPG.org 21
Link mentioned his disappointment with
the steps backward within the company.
He questioned if the intensity of efforts,
amount of money invested, quantity
of technical training and developed
expertise had all been for nothing. The
newspapers carried innumerous attacks
on his work at Petrobras, such as ,“The
territory was not researched seriously,”
“It invested in the wrong equipment” and
even “This is a divine punishment.”
Link gave an interview to the
newspaper Última Hora (Rio de Janeiro,
May 20, 1961), in which he said that, Walter Link leaving Brazil: “I fulfilled my duty.” Image from
“Oil is not Brazil’s biggest problem, it is O Cruzeiro magazine, published in Rio de Janeiro in 1961.
politics.” Unfortunately, this statement
remained true during the decades that Historical Highlights is an ongoing
followed, and it is especially true today, EXPLORER series that celebrates the
even with the discovery of world-class oil “eureka” moments of petroleum geology, the
reserves on the Continental Shelf. rise of key concepts, the discoveries that
Offshore success has revolutionized made a difference, the perseverance and
Brazil’s energy economy. The National ingenuity of our colleagues – and/or their
Petroleum, Natural Gas and Biofuel luck! – through stories that emphasize the
Agency in 2017 estimated that of the anecdotes, the good yarns and the human
total national oil production, 47.3 percent interest side of our E&P profession. If you
came from post-salt fields offshore, 47.4 have such a story – and who doesn’t? – and
percent from the offshore pre-salt fields you’d like to share it with your fellow AAPG
and only 5.3 percent from fields located in Members, contact Matthew Silverman at
continental basins. silverman_matthew@yahoo.com.
EXPLORER
Drielli Peyerl has degrees in history and in geography from
Link’s innumerous contributions to the
the University of Ponta Grossa in Brazil. She received a master’s
development of the oil discoveries
degree in geography, specializing in territory management
in Brazil. He consolidated a national
and a doctorate in science from the University of Campinas. In
oil industry in the country and turned
2017, she concluded her post-doctoral studies in scientific and
Petrobras into a model of exploration for
technological research at the University of Campinas and was
other companies.
visiting scholar at Oklahoma State University for one year. In
Link also suggested a focus on
2017, she was residential fellow at Linda Hall Library in Kansas
exploration of the Continental Shelf,
City, working on energy transition, technique, environment and
which has proven to be prophetic.
history. In 2018, she concluded another post-doctoral course of study at the Scientific
He left a legacy of vitally important
Division of Environmental Management, Science and Technology, University of São
work on the organization of the
Paulo. Currently, she is researcher at the Research Centre for Gas Innovation and
exploratory efforts of Petrobras. His
young investigator at the Institute of Energy and Environment for the São Paulo
recommendations were critical to the
Research Foundation at the University of São Paulo. In 2018, she was elected to
consolidation of the oil industry in Brazil.
the board of the Petroleum History Institute. Her main areas of research activity
On March 2, 1962, in a letter to
are energy transition, energy and environmental history, history of science and
Frederico Waldemar Lange, who had
technology, Latin American history, climate change, and public perception.
taken Link’s position the year before,
 22 By HEATHER SAUCIER, EXPLORER Correspondent
Repeating a Miracle
The Permian Basin inspires Latin American super basin ambitions
T
rends in exploration are moving away
from new ventures and refocusing on
proven basins – most likely inspired by
the success of the Permian Basin.
The Permian’s astounding second life
has led to an increase in eight years of
resources – from 36 billion barrels of oil
equivalent to 122 BBOE, according to the
U.S. Geological Survey. It has delivered a
record number of hydrocarbons through
unconventional means – 4.5 million BBOE
per day in 2019 – and has prompted many
operators to return to mature basins with
anticipation of similar revivals.
The Permian Basin is now known as
a “super basin,” which is defined by a
minimum of 5 BBOE in proven resources
and a multiple of that remaining, along
with multiple and often stacked petroleum
systems.
The Permian has become a beacon
of hope for Latin America and South
America, which are now known to have
substantial super basin potential as well.
Their emerging status will be discussed
at AAPG’s International Conference and
Exhibition in Buenos Aires, Argentina on
Aug. 30 in a forum called “Super Basins of
Latin America.” The forum is organized by
AAPG members Charles A. Sternbach and
Chandler Wilhelm.
“A miracle happened in North America,
and that was the Permian Basin,” said
Sternbach, AAPG past president and
chair of the Super Basin ad hoc committee
– created by Sternbach and Wilhelm to
address next steps and challenges for
promising Latin and South American basins.
With the application of horizontal drilling
and multi-stage, hydraulic fracturing
technology, the Permian Basin, “went from
producing less than 1 million barrels a
LATIN AMERICA AND CARIBBEAN ISSUE
day to more than 4 million barrels a day in
a decade – roughly from 2007 to 2018,”
Sternbach said.
After examining both underground
and above-ground conditions of mature
basins in Latin America and South America,
including Vaca Muerta in Argentina, offshore
Brazil, La Luna-sourced basins in Colombia,
and Tampico-Misantla in Mexico, AAPG
Member Bob Fryklund, chief strategist
for upstream at IHS Markit, has identified
10 super basins and established a rating
system designed to determine the potential
for each based on both geology and overall
political climate.
“We are not just looking at conventional
versus unconventional, but the basin as
a whole, or the basin as an ecosystem,”
Fryklund said, adding that another key
factor in changing exploration trends
has been the issue of timing to first oil.
(New ventures in frontier basins typically
take seven to nine years to monetize,
yet unconventional resources can be
monetized within roughly a year.)
In terms of underground characteristics,
Fryklund is looking at richness per
square mile and the presence of multiple
petroleum systems and clinoforms, to
name a few. Above-ground conditions
include government stability, investor-
friendly environments, presence of a local
workforce, competitiveness of contracts,
existing infrastructure and environmental
regulations.
Fryklund believes several of the 10 super
basins in Latin and South America could
become the next Permian Basin.
“The last four years have been Latin
America’s burst again in terms of the most
resources discovered and added,” he said.
“It’s been a big bright spot. Outside of North
America, that’s where all the resources have
been added.”
Neuquén Basin
When he heard about the relatively
new concept of a “super basin,” AAPG
Member Carlos Macellari, senior adviser for
Tecpetrol, said he was “skeptical” at first.
“But they are very unique basins,” he
said.
Macellari, who is working to develop
Vaca Muerta as an unconventional play,
is in the heart of what might be the next
super basin to come on line. Close to 14
BBOE have been discovered to date in
the Neuquén Basin, originated from four
different source rocks. However, Vaca
Muerta holds an unconventional potential
of twice this amount, Macellari said. Vaca
Muerta is currently producing 82,000
barrels of oil and more than 1 billion cubic
feet of gas a day, and these numbers are
rapidly increasing.
After Argentina took measures to
ensure stable contracts, fair labor laws and
properly trained contractors, production
took off. “The entire energy spectrum of the
country has changed,” Macellari said. “Now
we are thinking about exporting gas. We
used to import it. We thought Argentina had
peaked in 1998 for oil and in 2003 for gas,
but with the rebirth of the Neuquén super
basin, new production highs will be reached
in the near future.”
Brazil
In Brazil, oil and gas regulation has
undergone changes that have allowed
companies to access resources such as
the pre-salt fields – helping to transform
basins, such as the Santos, into super basin
status. “Petrobras understands its role as
a provider of technical knowledge for the
country in order to encourage discussions
on industry regulation and policies,” said
AAPG Member Rogerio Cunha, exploration
manager for Petrobras.
Following a period of intensive
exploration, the Brazil pre-salt has
transitioned into a development play, with
an overall slowing of exploration activity
as Petrobras focuses on developing this
considerable and proven resource base.
An increase in drilling activity is expected in
the second half of 2019 and is expected to
carry over into 2020, Cunha said.
He credits Brazil’s success to new
exploratory models, better geological
knowledge, new production concepts,
improved seismic imaging, and “digital/
cultural transformation, patience, resilience
and persistence.”
Colombia
The Cretaceous basins in Colombia,
including the Magdalena River Valley,
Catatumbo, Cesar, Maracaibo and Eastern
Cordillera, show characteristics of a super
basin as well, said Jorge Calvache, AAPG
Member and vice president of exploration at
Ecopetrol. Analyses show that even though
more than 9 BBOE have been produced,
there are still 30-70 BBOE remaining both
onshore and in the country’s shallow and
deep offshore basins. They are all sourced
by the La Luna formation.
In addition, there is an opportunity for
an unconventional play in Colombia, with
Continued on next page u
 AUGUST 2019 EXPLORER.AAPG.org 23
t Continued from previous page

volumes close to 7 BBOE.

“Ecopetrol is working on several
initiatives to enhance the recovery factor of
existing fields through the implementation
of new EOR technologies, and efforts are
being made to develop and implement
innovative methodologies in seismic
acquisition and processing to improve
subsurface imaging,” he added.
Yet, the highway to active super basin
status is not without roadblocks. Colombia
is currently facing delays in its operational
plans – mostly due to a circuitous permitting
process and difficulties in obtaining social
licenses to operate, Calvache said.
If the country can successfully pave a
smooth way to production, its future looks
bright. “After a century of exploration and
exploitation of La Luna oil in Colombia’s
traditional basins, the new knowledge
of alternative Cretaceous hydrocarbon
sources will keep mature basins active for a
long time to come,” he said.

Mexico

Primed for take-off, yet hampered by its

current government, Mexico’s super basin
status continues to wait in the wings.
Set aside for years in favor of the low-
hanging fruit of the Campeche and Cantarell
oil fields, the Tampico-Misantla super basin
in northern Mexico holds an estimated 144
billion barrels of oil in place, said AAPG
Member Alfredo E. Guzman, chief geologist
for Mexico Petroleum Company and former
executive vice-president of Pemex.
Very similar to the Permian Basin in
resource volume and geology, the Tampico-
Misantla Basin is sourced by one of the
richest Upper Jurassic source rocks in
the world and ideal for unconventional
development.
Yet, Mexico now has a moratorium on
horizontal drilling and hydraulic fracturing
for environmental reasons.
Instead, the country is concentrating
on the mature Southeastern Basin and
offshore fields, which ironically have now
become more expensive to develop than
unconventional resources. “You can produce
unconventional resources for $40 to $45 a
barrel now,” Guzman said. “Very few people
are aware of this, and it’s costing us. We are
now starting to import oil.”
Until the policies of the country changes,
the unconventional hydrocarbons of the
Tampico-Misantla super basin will remain
dormant.
Era of the Super Basin
Emphasizing the importance of both
ideal underground and above-ground
conditions to develop a super basin,
Calvache said that the industry must
step up and explain to those in power
as well as to citizens why hydrocarbon
exploitation must continue to receive
support.
“Over the past decade, an increase
in environmental regulation and social
opposition to the oil industry have
dramatically reduced investments in
exploration and production activities. The
tightening of these regulations is driven
by stakeholders without regard to energy
needs of a country,” he said.
“The oil and gas industry needs to
become trustworthy and believable in
the eyes of the common people, with
educational campaigns that can reach all
in simple language, explaining the scope
of our activities, our best practices, and
our commitment to the environment and to
bring prosperity to the communities where
we operate.”
In the meantime, the era of the super
basin is here, with Latin America and South
America on the closest horizon. After the
“miracle” of the Permian Basin, Sternbach
asks, “Which one will be next?”

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 24 By EMILY SMITH LLINÁS, EXPLORER Correspondent
LATIN AMERICA AND CARIBBEAN ISSUE

Vaca Muerta and Beyond

Argentine provinces offer multiple exploration and development opportunities

A
nyone working in the energy
sector knows Argentina’s potential
for unconventional resources,
particularly the Vaca Muerta formation in
the Neuquén Province.
While Vaca Muerta receives the
majority of attention and foreign
investment, Argentina has five producing
basins with great possibilities for
exploration and development, said
Carlos Lambré, executive secretary of
the Federal Organization of Hydrocarbon
Producing States.

Promoting the Provinces

OFEPHI is an association comprised

of Argentina’s 10 oil producing provinces:
Tierra del Fuego, Santa Cruz, Chubut,
Neuquén, Rio Negro, La Pampa,
Mendoza, Formosa, Salta and Jujuy.
The organization works with the federal
government and energy secretary to
develop energy policy and promote
investment in provinces with hydrocarbon
potential.
Lambré, a petroleum engineer and
native of Junín de los Andes, Neuquén
province, joined OFEPHI in 2010 after
a career in Amoco, TERMAP and Pan
American Energy. He describes his
work as a challenging and rewarding
opportunity to use his knowledge and The Rio Negro Province, known for its apple and pear production and well-known tourist destination Bariloche, is home to shale plays Vaca Muerta and Los Molles. The province holds
experience while learning daily from the potential for mature field development with secondary and tertiary recovery and well as exploration of tight gas, basin gas center systems and associated traps at the edge of the basin.
people he represents. All photos provided by the Department of Energy of the Rio Negro Province.
“It is very satisfying after many years of
work in private industry to be able to work
with OFEPHI to defend the rights of the curve that will be applied to and benefit Patagonia. The basin covers the Gulf of improve the recovery factor, which is
provinces where industry operates,” he other basins in the future,” he said. San Jorge and an inland area including something operators have been seeking,”
said. parts of the Santa Cruz and Chubut he said.
In addition to his work with OFEPHI, Opportunities for Conventional provinces. Lambré noted that, without taking into
Lambré also serves as undersecretary of Exploration “Although all the basins have account Vaca Muerta’s unconventional
control and supervision in the Ministry of possibilities and opportunities for resources and reserves, the San Jorge
Hydrocarbons in the Chubut province. Lambré noted that, even as exploration, from my point of view, the Gulf basin currently accounts for 46
unconventional resources continue to San Jorge Gulf basin has the greatest percent of Argentina’s oil production
Exploration Opportunities develop, the country has important opportunities to increase exploration, and 11 percent of gas production. The
opportunities for conventional exploration, investment and technological
Lambré’s positions enable him to see particularly in the Golfo San Jorge Basin, development, making it possible to
clearly the exploration opportunities that a sedimentary rich basin in eastern increase production and drastically Continued on next page u
exist throughout the country.
The five basins he identified with great
potential are as follow:

u N euquén Basin, Neuquén, Río Negro,

Mendoza and La Pampa provinces
u Golfo San Jorge Basin, Santa Cruz
and Chubut provinces
u Austral Basin, Tierra del Fuego and
Santa Cruz provinces
u Cuyana Basin, Mendoza province
u Noroeste Basin, Salta, Jujuy and
Formosa provinces

Lambré noted that, while the Neuquén

Basin currently receives the most
international attention and investment,
the other four basins have similar
characteristics to Neuquén in terms of total
organic carbon and maturity of organic
matter and also provide opportunities for
development of unconventional resources.
Companies both inside and outside
Argentina see the potential Lambré said,
noting that he anticipates continued
investment and development in Vaca
Muerta in the next five years.
“I expect to see increased investment,
technology development, cost reduction
and a significant increase in production of
hydrocarbons, along with the development
of infrastructure needed in order to
support development,” he said.
He noted how investment in Vaca
Muerta provides benefits to other basins
as well.
“Companies are undergoing a learning
 AUGUST 2019 EXPLORER.AAPG.org 25
t Continued from previous page
basin also accounts for 69 percent of the
country’s oil reserves and 12 percent of
gas reserves.
Looking Toward the Offshore
Another area of great potential lies
offshore.
Companies flocked to Argentina in April
2019 for the first offshore bid round held
in more than two decades. ExxonMobil,
Equinor, Shell, Total and BP joined YPF
and other regional companies in acquiring
18 of the 38 blocks auctioned in the
Austral, Malvinas and Argentina basins.
Offshore activities are managed by the
federal government, and Lambré said they
hold great promise for the country
“I consider offshore exploration to be
an extremely important initiative to define
the possibilities of the country and to
improve the expectations for the Austral
Basin, where offshore activities are taking
place currently and achieving important
gas production,” he said. He noted
that approximately 24 percent of gas
production in Argentina comes from the
Austral Basin.
Keys to Future Success
Lambré identified three factors critical
to future success for Argentina and
its provinces: policy, technology and
investment.
“The challenges ahead require
developing a long-term government
policy and legal framework designed
to allow and favor investment, both in
exploration and development and in
increasing reserves. We need to increase
investment, improve technology and
knowledge and train professionals so we
can reduce costs, invest in exploration and
embrace the great challenge, improving
the recovery factor,” he said.
“It is important for our policies to
Argentina Sessions at AAPG ICE Buenos Aires
u T
 uesday, Aug. 27
5 p.m. – Opening Ceremony – featuring the participation of Energy Secretary
Gustavo Lopetegui and YPF CEO Daniel Gonzalez
u W
 ednesday, Aug. 28
2 p.m. – Argentina Country Session – talks by the Secretary of Energy, YPF, Shell
Argentina, Vista Oil and Gas
u Thursday,
 Aug. 29
12:30 p.m. Vaca Muerta Luncheon Session – talks by YPF, Pan American Energy,
Tecpetrol and Vista Oil and Gas
4 p.m. – Special Event featuring Argentine Provinces, International Pavilion
For more information visit buenosaires2019.iceevent.org
Join us in Mexico City
23-25 September 2020
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For more information and sponsorship options, please visit: EnergyOpportunities.info
favor bringing in technology developed
in other countries where the production
of unconventional hydrocarbons is very
advanced, like in the United States,
and that we support the training and
development of our professionals both in
companies and in universities,” he said.
Lambré concluded that Argentina’s
potential to explore and develop
conventional and unconventional
hydrocarbons is tied to large corporate
investments and foreign capital.
Attending AAPG ICE
Five OFEPHI members will seek
investment and promote opportunities
through participation in the AAPG
International Conference and Exhibition at
the Hilton Buenos Aires on Aug. 27-30.
The Neuquén, Mendoza, Chubut, Rio
Negro and Tierra del Fuego provinces will
have stands at the International Pavilion 2
located in the ICE exhibit hall. 0
Lambré said ICE participation 2
0
represents a great opportunity for
provinces to provide information to the
technical professionals and new business
Global Super Basins Leadership Conference 2020: Vision of An Exciting Energy Future
representatives attending the conference.
“We expect great success. 2
Undoubtedly this will be an event of great 0
importance to our country and will provide 2
0
the opportunity to share experiences,
expectations and business opportunities,”
he said.
The provinces will host a special event
on Wednesday, Aug. 28 at 4:30 p.m. in the
International Pavilion Theatre located in
the ICE exhibition hall. The event includes
a networking reception and presentation
delivered by each of the five provinces
represented.
Lambré encouraged ICE attendees to
join the provinces at their event.
“There are great opportunities in
Argentina’s basins. We hope to continue to
TOP OIL AND GAS SUPER BASINS OF THE WORLD
have these types of conferences to benefit
our industry and to enable those interested Sugar Land Marriott Town Square | Sugar Land, Texas
in investing in our country,” he said.
EXPLORER
SAVE THE DATE
11-13 February 2020
Super Basins 2020 will bring together experts on the
world’s richest energy basins to study the geoscience
architecture, explore the technology, and to anticipate
opportunities in basins that have unrealized potential.
Super Basins 2020 will focus on some of the top
questions surrounding the most petroliferous basins
in the world.
Join AAPG for the third annual Super Basins
conference!
Organized by AAPG Past President Charles A. Sternbach
To learn more, visit:
SuperBasins.AAPG.org
 26 EXPLORER AUGUST 2019
Scotland Formation, Greenland, Barbados
Scotland Formation, Spa Hill, Barbados Barbados
from page 13
White said that Barbados officials are
“extremely confident” in the prospectivity
and petroleum potential of the country’s
offshore acreage and the country is
preparing for further development. To date,
Australian petroleum company, BHP, and
Spanish energy company, Repsol, have
been awarded blocks in the Barbados
offshore; with BHP poised to commence
exploration in the coming months.
“Barbados has invested heavily in
the training and education of its local
professionals, to ensure the effective
regulation and management of the offshore
sector,” he said. Now they are ready to look
15 - 16 October 2019 | Edinburgh, United Kingdom
Save the
Date
The Energy Transition Forum – A New Era for the Geoscientist
The “AAPG Energy Transition Forum – A New Era for Geoscience” in A “New Era for the Geoscientist” will focus on:
Amsterdam, September 2018, brought together expert speakers and The role of the Geoscientist in delivering the future of energy
distinguished participants to discuss the future of energy, sustainability, Sustainability
digitalization, skills, and new ways of working. Sessions provided Digitalization
thought-provoking presentations and interactive breakout sessions Skills
utilizing a variety of facilitation styles to maximize engagement. In 2019,
there will be a greater focus on the individual in “A New Era for the Learn more by visiting:
Geoscientist”, the dilemmas that keep him or her up at night, and the
skills that might help unlock future opportunities. EnergyTransition.AAPG.org
for additional partners.
“It is the country’s firm belief that
partnering with pioneering, ambitious,
experienced and technically competent
exploration companies will be critical to
reaping offshore success and realizing
Barbados’ full offshore potential,” he said.
Barbados will launch an offshore
licensing round in the fourth quarter of 2019.
AAPG International Pavilion
Participation
White and colleagues will promote the
licensing round and look for partners at
their stand in the International Pavilion at
the AAPG International Conference and
Exhibition in Buenos Aires on Aug. 27-30.
“Barbados has been showcasing in
the International Pavilion at AAPG events
for over a decade and has benefitted
significantly from the opportunity to
mount exhibition booths, network with
key players in the industry, give technical
presentations, promote the country’s
offshore acreage, and explore new
partnership opportunities while raising
the profile of opportunities in Barbados
across the untapped South American and
Caribbean region,” he said.
White said he hopes attending events
like ICE will help Barbados establish
more partnerships that lead to successful
development for his country and his
people.
“Commercial discoveries in the
Barbados offshore will create opportunities
for further socioeconomic development
and empowerment of the people of
Barbados. The investment and revenue
generated from creating a successful
offshore sector will be used to develop
local businesses and enterprises; create
Continued on next page u
 AUGUST 2019 EXPLORER.AAPG.org 27
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In Memory
Cole Abel, 61
Eagle River, Alaska, March 29, 2019
Michael Ala,
London, England, April 27, 2019
Robert Allen, 96
Ardmore, Okla., April 29, 2019
Manuel Bass, 92
Fullerton, Calif., Jan. 10, 2019
Ray Burke, 96
Dana Point, Calif., Aug. 11, 2018
Michael Fahy, 70
Evergreen, Colo., Oct. 28, 2018
John W. Gabelman, 97
Butte, Mont., July 30, 2018
Jay Gallagher, 87
Houston, Texas., Sept. 4, 2018
Oscar Gilbert, Jr., 72
Houston, Texas, Feb. 10, 2019
Dwight Gilkison, 95
Galveston, Texas, May 4, 2018
George Gordon, 84
Sugar Land, Texas, July 25, 2018
Robert Roy Graves, 88
Stuart, Fla., Aug. 23, 2018
Willard Guy, Jr., 89
Lawrence, Kan., April 15, 2019
Sherod Harris, 93
Westminster, Colo., Oct. 13, 2014
Arch Helton, 91
Pearland, Texas, Jan. 27, 2019
Elliott McConnell, 90
Rockport, Texas, Aug. 9, 2018
t Continued from previous page
niche sectors; facilitate training and
capacity building; and help to fast-track
the development of renewable energy and
energy efficiency initiatives across the
island,” he said.
White invited colleagues to visit
Barbados and to experience the culture
and the people.
“Barbados is one of the gems of
the Caribbean and its people, known
affectionately as ‘Bajans,’ represent
the country’s most valuable resource.
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a classified ad in the EXPLORER. Ads are at the
rate of $2.90 per word, minimum charge of $60.
And, for an additional $50, your ad can appear on
the classified section on the AAPG web site. Your
ad can reach more people than ever before. Just
write out your ad and send it to us. We will call
you with the word count and cost. You can then
arrange prepayment. Ads received by the first of
the month will appear in the subsequent edition.
Robert McCrae, 90
Walnut Creek, Calif., May 22, 2019
David Meyer, 64
The Woodlands, Texas, Feb. 9, 2019
William Poynor, 87
Colorado Springs, Colo., Dec. 31, 2018
Harry Schram, 89
San Antonio, Texas, April 10, 2019
John Sistrunk, Jr., 91
Madison, Minn., Jan. 3, 2019
Alan R. Smith, 80
Alpine, Utah, Jan. 18, 2019
Joseph Thurston Smith, 92
Fredericksburg, Texas, May 10, 2019
Peter Cornay Smith, 90
Houston, Texas., Jan. 9, 2019
Lester Stephens, 92
Spring, Texas, Feb. 23, 2019
Carl Swanson, 89
Houston, Texas, June 30, 2018
(Editor’s note: “In Memory” listings are
based on information received from the
AAPG membership department. Age at
time of death, when known, is listed. When
the member’s date of death is unavailable,
the person’s membership classification
and anniversary date are listed.)
EUROPE REGIONAL
CONFERENCE 2020
sporting, culinary and recreational
experiences await all visitors to the island,”
he said.
The Last 50 Years of Exploration in Europe and the
Barbados will join other International Mediterranean: Lessons Learned for Future E&P Efforts
Pavilion participants Colombia, Greenland,
Jamaica, Morocco, Namibia, Peru, the
Philippines, South Africa, Uruguay and
Argentine provinces Chubut, Neuquén,
Mendoza, Ro Negro and Tierra del Fuego.
For an updated list and International
Pavilion Theatre talk schedule see
buenosaires2019.iceevent.org.
Information on the Barbados Offshore
Petroleum Program is available at
www.Energy.gov.bb.
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• Clastic reservoirs: new concepts and applications • Revisiting mature basins
• Carbonate reservoirs: are we making progress? • Exploring new frontier
To learn more, please visit: erc.aapg.org/2020
 28 By GRETCHEN
AUTHORS NAME
FLINT,HERE
AAPG Programs Communication Representative
EXPLORER JULY 2019
Foundation Update

Alvey Gilbert Peoples Standring

A Path to a New Career

Recipients of 2019 Military Veterans Scholarship Program announced
T
he AAPG Foundation is pleased to
announce the scholarship recipients of
the 2019 Deana and Paul Strunk Military
Veterans Scholarship Program and the new
Jack C. and Catherine I. Threet Named Grant.
The MVSP awardees for 2019 are:
u Justin Alvey, United States Army,
Specialist 4, from Syracuse University
u Lane Daigle, United States Navy, Petty
Officer Second Class, from the University
of Colorado at Boulder
u Ryan “Charlie” Daniels, United States Air
Force, Senior Airman, from the University
of Alaska
u Paul Gilbert, United States Marine Corps,
Corporal, from Missouri State University
u Zachary Peoples, United States Marine
Corps, Corporal, from the University of
The recipient of the Jack C. and
Catherine I. Threet Grant is:
u Daniel Collins, United States Army, Staff
Sergeant, from the University of Arizona
Returning to civilian life has challenges,
and geoscience programs can provide a
path to military veterans as they transition
into civilian technical careers. The MVSP
was founded in 2014 to fulfill this mission.
Eligible recipients enrolled in a
four-year geoscience program at an
accredited college or university can receive
scholarship awards between $2,000-
$4,000 to fund educational expenses and
costs of attendance, such as tuition, fees
and supplies. The MVSP assists service
members and veterans from all branches
of the United States military, including the
Paul Gilbert’s goal is to complete his
bachelor’s degree and then pursue a
master’s degree focusing on structural
geology. Patricia Standring said that her
scholarship “has a significant impact on
my academic future and helps me fulfill
my dreams of conducting research in
paleoclimate studies.”
For many of the MVSP recipients,
completing their degrees would be out of
the question without the financial support
they receive from their MVSP scholarships.
MVSP recipient Zachary Peoples said, “It
is because of this support that I can focus
more on my studies and less on making
ends meet.”
Read the personal stories of MVSP
recipients in the Yellow Ribbon Series, an
annual series of articles that focuses on the
goal upon completing her degree is to
apply for a commission with the National
Oceanic and Atmospheric Administration,
and Marine Corporal Cameron Gernant,
who performed fieldwork on glacio-isostatic
adjustment aboard a research vessel in
Antarctica.
Applications for next year’s MVSP open
Feb. 15, 2020. Learn more about the AAPG
Foundation’s Military Veterans Scholarship
Program at Foundation.AAPG.org/Military-
veterans-scholarship-program.
If you have questions or need
assistance, email a Programs Coordinator
at mvsp@aapg.org.
If you would like to make a donation to
the MVSP, or one of the Foundation’s other
educational initiatives, please visit
Donate.AAPG.org.

South Alabama
u Patricia Standring, United States Air Force,
Staff Sergeant, from the University of Texas
at Austin
National Guard and Reserves.
The MVSP scholarships help students
who have served in their country achieve
their academic and career goals.
EXPLORER
journeys of returning military veterans who
are pursuing geoscience degrees. Last
year we featured the Third Fleet’s leading
Chief Petty Officer Bonnie Flynn, whose

Mark Your Calendar

Important AAPG Foundation Award Deadlines
2019-2020
GRANTS-IN-AID TEACHER OF THE YEAR
PROGRAM AWARD
OPEN: Sept. 2, 2019 OPEN: Sept. 2, 2019
DEADLINE: Dec. 2, 2019 DEADLINE: Jan. 31, 2020
The Grants-in-Aid program The AAPG Foundation awards
provides financial aid to $6,000 to a K-12 Earth science
graduate students whose thesis teacher in the United States
research has applications in the for excellence in teaching
search for and development of the geosciences. If you are a
petroleum mineral resources, dedicated K-12 Earth science
and/or related environmental teacher who fosters students’
geology issues. Grants range love of and understanding of
from $500 to $3,000. the geosciences, send your
application for Teacher of the
Year beginning Sept. 2!
L. AUSTIN WEEKS
UNDERGRADUATE
GRANT PROGRAM
OPEN: Jan. 1, 2020
DEADLINE: March 31, 2020
The L. Austin Weeks
Undergraduate Grant program
provides $500 grants to
undergraduate geoscience
students and student-led
associations (student chapters
and clubs) worldwide to help
with tuition, books, equipment,
field trips and conferences.
INSPIRATIONAL
GEOSCIENCE EDUCATOR
AWARD
OPEN: Jan. 1, 2020
DEADLINE: March 31, 2020
The AAPG Foundation awards
$6,000 to a college or university
professor for excellence in
teaching natural resources or
the geosciences. Nominate a
professor who impacted your
career in the geosciences.
DEANA AND PAUL STRUNK
MILITARY VETERANS
SCHOLARSHIP PROGRAM
OPEN: Feb. 15, 2020
DEADLINE: May 1, 2020
The Military Veterans
Scholarship Program (MVSP)
provides grants to veterans
pursuing geoscience degrees
at a four-year college or
university in an effort to
aid in their transition from
military service to civilian
career opportunities. Grants
range from $2,000 to $4,000.

Help support geoscience education.

Donate online today. Learn more at
foundation.aapg.org
 AUGUST 2019 EXPLORER.AAPG.org 29
Foundation Contributions forJune 2019
General Fund Kimberly Saar Parsons Terri Duncan
Victor F. Agbe-Davies Angela Pascarella Barry R. Gager
Boluwaji Samuel Akinyemi David Lawrence Pope Bryan Haws
Ingvar Alarik Sarah Prentice Alan R. Haight
Michael C. Allison David Mark Prescott Ronald L. Hart
Scott W. Allison Robert Cromwell Price
Donald D. Anderson Michael Joseph Quinn Education Fund
Terje Andresen David Rainey Shell Oil Company Foundation
John and Kae Armentrout Scott Cleveland Reeve Wayne Perry Johnson
Steven Edward Barker Joachim Wilhelm Reinhardt Susan Smith Nash
Jorge Barrios Beverly Rice Grants-in-Aid
Gareth William J. Beamish Kenneth Frederick Reighard ConocoPhillips Corporate Contributions
Douglas Alan Bell Westan Robertson Matching gifts given by Bruce Wiley,
Mark Eric Bengtson Stanley Edmtund Roe Charles Landmesser, and William Morgan
Prodyut Kumar Bhowmick Emil Roman Kevin Patrick Corbett, PhD
April Bievenour John W. Rutherford, III Barry R. Gager
William L. Bilodeau, PhD Robert Nevin Ryan, Jr. Leigh S. House
David C. Blanchard Alfredo Sanchez-Monclu James Ross Markello
William Paul Bosworth Rebecca De Regla Santos Prasanta K. Mukhopadhyay, PhD
Thomas D. Bowman William Sassi Mark Tomasso, PhD
Nicholas G.K. Boyd, III Stephen Peter Schwarz William R. Trojan
William Christopher Boyers Kate M. Schwehr
Philip Braithwaite Shell Oil Company Foundation Donald A. O’Nesky Named Grant
Matching gift from Mobil Retiree Program Matching gifts given by C. Scott Cameron, John (Jack) B. Thomas
Marvin D. Brittenham Will Green, and Kathleen O. Horkowitz
James Richard Broome Shell Oil Company Foundation Eastern Section Named Grant
Ian Thomas Brown Matching gifts given by Huyen Thi THanh Dan A. Billman, P.G.
Paul George Bunkers Bui, C. Scott Cameron, and R. Monahan Pittsburgh Assoc. of Petroleum Geologists
Brian S. Carl, PhD Josh Sigler Edward B. Picou, Jr. Named Grant
Karen Wendy Carlson George Taylor Smith Richard Dale Fritz
Grant M. Carnie Gordon Smith
Angela Cernovskis John Charles Smith Edward C. & Caroline Beaumont
Jon Duckett Champeny Michael William Smith Named Grant
Jason Dennis Chaytor Konstantin Sobornov Richard Dale Fritz
Michael Chisam John and Kate Spaid John (Jack) B. Thomas
Gary P. Citron, PhD Dallas B. Spear
Ronald John Clark Craig Warren Stichtenoth Gustavus E. Archie Memorial Grant
Jay Charles Close Elena Rodica Stoica-Negulescu Barry R. Gager
Walter House Cochran Mark Haynes Strider Yang Li
Terri Marie Colson Christopher W. Stull James E. Hooks Memorial Grant
Marisa Connors Asep Rachman Suhendan Michael D. Campbell
Jeff Corrigan Barrett Robert Summers Kathryn Hickmon Dando
Dana Kay Duree Coryell Albert Yen Sun Mark Alan Dando
Joseph Court Beiruny Syam Jeffrey Joseph Heppermann
Douglas Robert Coyle Larry John Sydora
Susan M. Cramer Thomas M. Talley Jean G. Funkhouser Memorial Grant
Jason Wellington Currie Paul Andrew Thompson Richard Dale Fritz
Joseph R. Davis, PhD Helen Bowtle Turnell
Marie-Helene Debono Colin Clive Turner, PhD John H. & Colleen Silcox Grant
Tom Stephen Deen Gerd Ullrich Alan R. Haight
Eloi Dolivo, PhD Jan Hendrik van Koeverden L. Austin Weeks Undergraduate Grant
Chris Joseph Donofrio Jose Antonio Varela Montes William R. Trojan
Harvey Selden Eastman W. Chad Vaughan
George Kenneth Edgerton Jorge Velasco Meckel Family Grant
James R. Ehrets Keith V. Vickers Frank G. Glass
Martin Emery Bevan Jon Warris, PhD Yang Li
Nancy L. Engelhardt-Moore Harry Roderick Warters
Encana Cares (USA) Foundation Jerry R. Weidner Michel T. Halbouty Named Grant
Paid through Benevity Community Kane Christopher Weiner Victor F. Agbe-Davies
Impact Fund William M. Whaling Heinz Martin Burgisser
EOG Resources Inc Larry Allen Willis In memory of Erik Mason
Parrish Erwin Jr. William L. M. Wilsey Mruk Family Named Grant
Don Obot Etiebet Paul D. Wilson Harvey Richard Duchene
Jean M. Faber Alfredo Yaguaracuto
Ashton Faulkner Eric Henden Yerkovich Nancy Setzer Murray Memorial Grant
John Berton Fisher, PhD Jeffrey Raymond Zoller Thomas Craig Neal
Claudio Pires Florencio
Luis Fernando Fonseca Digital Products – Norman H. Foster Memorial Grant
John Paul Franklin Colorado School of Mines Marvin D. Brittenham
Forrest Frederick David Myron Cole Kevin Patrick Corbett, PhD
Michael Wayne Fugate Kimberly Ann Foster Garneau
Digital Products – Illinois
David S. Fugitt Barry R. Gager R. Dana Russell Memorial Grant
Laurens Gaarenstroom Thomas Craig Neal
Alberto Gaudio Digital Products – Louisiana
Hongxing Ge, PhD John A. Harrell Raymond C. Moore Memorial Grant
William E. Gipson Nancy L. Engelhardt-Moore
In memory of Katy Threet Digital Products – Miami (Ohio)
Frank G. Glass John (Jack) B. Thomas Robert K. Goldhammer Memorial Grant
Jack Lee Gregory Mark David Sonnenfeld
Digital Products – Ohio State University In memory of Robert K. Goldhammer
Caleb P. Griffith Heather Kristen McCarren
Paul Joseph Griffith Weimer Family Named Grant
David Ray Grogan Digital Products – Marvin D. Brittenham
Mastaneh Haghnazar Liseroudi San Diego State University Brendan Kelly
Alan R. Haight John William Finch
Dara Harmon Imperial Barrel Award Fund
In memory of Dexter Harmon Digital Products – ConocoPhillips Corporate Contributions
Kyle Hazelwood Stephen F. Austin University Matching gifts from Susan Wygant and
Alberto Herrera Palomo Ronald Lynn Brown Charles Caughey
William Kurt Hilarides Digital Products – University of Calgary Anthony Joseph Kolodziej
Janice Lorraine Hill Jerry L. Jensen Michael Joseph Quinn
Steve H. Hill Thomas Cecil Plumridge
In memory of Henry A. Hill Jack C. & Catherine I. Threet Military
Erik Nicholas Hoffmann Digital Products – Veterans Scholarship Grant
James Michael Hollywood University of California, Santa Cruz Lawrence W. Funkhouser
Harley Harold Hopkins, III Heather Kristen McCarren Ernest J. La Flure
Leigh S. House In honor of Jack Threet from the Ernest
Jacek Jaminski Digital Products – and Dorothy LaFlure Charitable Fund
Paul Jobe University of California, Berkeley through Fidelity Charitable
Brent D. Johnson Nicholas G.K. Boyd, III Shell Oil Company Foundation
James C. Jones, II Matching gifts given by C. Scott Cameron,
Digital Products – University of Colorado Will Green, and Kathleen O. Horkowitz
John E. Jordan Jr. Douglas Bleakly
Viktor Kristian Karabin Joseph Garrett Minke
Robert A. Kaufmann James A. Gibbs Family Fund
James Carlisle Keeton Digital Products – University of Iowa Richard Dale Fritz
Brendan Kelly Bonnie Milne-Andrews & James Andrews
Wayne Russell Kemp James A. Hartman Student Leadership
Richard A. Kopp Digital Products – Summit Fund
Christopher Mark Kravits University of Louisiana, Lafayette William Otis Williams
Scott R. Krueger Michael Joseph Quinn
Virginia Lafuente-Hernandez Military Veterans’ Scholarship Endowment
Digital Products – University of Missouri Maurice Nixon Birdwell
John Henry Lake Joseph Garrett Minke
Marcus Lang, PhD Marvin D. Brittenham
Jay Allen LeBeau Digital Products – Robert Wayne Duke
Leonard James Lentz University of Nebraska (Lincoln) George Kenneth Edgerton
Chantel N. Lines Clint L. Hipke James C. Jones, II
Chantel N. Lines John Stanfield Spaid
Edward Joseph LoCricchio Digital Products – James A. Gibbs
James Warren Lovekin University of Oklahoma In memory of Robert W. Allen
David Jack Lown Victor F. Agbe-Davies William E. Gipson
Michael Otis Maler John (Jack) B. Thomas In honor of Jack and Catherine Threet
Brian Charles Mallick Thomas M. Hamilton, PhD
Digital Products – University of Texas From the Tom & Carolyn Hamilton Family
Patrick Mangou Edward Alvin Duncan
James Ross Markello Foundation through Westwood Trust
David Alan Pustka Alan Stanley Kornacki
Gregory L. Mason
Hiroyuki Matsui Digital Products – In memory of John Castano
Bruce McFarlane University of Wyoming Edward Beauregard Picou, Jr.
Karen Droste McGowen Nicholas G.K. Boyd, III George C. Sharp
Scott L. I. McLaren Mark A. Bronston Shell Oil Company Foundation
Donald Arthur Medwedeff, PhD Josh Sigler Matching gifts given by Huyen Thi THanh
Jorge Alfonso Mendoza-Amuchastegui Bui, C. Scott Cameron, and R. Monahan
Ramses Gabriel Meza Digital Products – William R. Trojan
Robert Miller Universidad Venezuela Robert Edward Webster
Scott Laurence Miller Jerry L. Jensen
Thierry Michel Kabbabe Publication Pipeline Fund
Wayne Millice Philip Salvador
Bonnie Milne-Andrews & James Andrews Digital Products – Virginia Tech
Joseph Garrett Minke David Ray Grogan Robert Ehrlich Memorial Grant
James Henry Moore Shell Oil Company Foundation
Clara-Luz Mora Digital Products – Matching gifts given by C. Scott Cameron,
Louis Kevin Morrato West Virginia University Will Green, and Kathleen O. Horkowitz
Khun Hline Myint Joseph Garrett Minke
Richard Louis Nagy Richard Kent Schamp Visiting Geoscientist Fund
Stephen R. Narr James A. Gibbs
Thomas Craig Neal Distinguished Lecture Fund In memory of Herb Davis
Susan Ellen Nissen Barry R. Gager
Patrick A. Nye Leonard James Lentz The monthly list above of AAPG
Gary R. O’Brien James Ross Markello Foundation contributions is based on
Jeff Lawrence O’Keefe Donald Arthur Medwedeff, PhD information provided by the AAPG
Jaime Carlos Oller E. F. Reid Scouting Fund Foundation office.
Richard Michael Parker Claude Edward Bolze
 30 By DAVID CURTISS
EXPLORER AUGUST 2019
Director’s Corner

The Transition from Growth to Value

T
he headlines are losing their
shock value as seemingly each
month the U.S. Energy Information
Administration releases petroleum
production figures showing record U.S.
production. Their numbers released last
month showed April production exceeding
12 million barrels of oil per day, an all-time
high.
Texas, particularly the Permian Basin,
drives the trend and the “EIA forecasts that
Permian production will average 4.4. million
b/d in 2019, a 920,000 b/d increase from
its 2018 average.”
Increased production from tight reser-
voirs is also dampening long-term volatility
in oil markets. The Federal Reserve Bank of
Dallas looked at the connection between
breakeven prices and long-term futures
contracts.
Their analysis, published May 21, shows
a close connection between average
breakeven prices and the long-term futures
contract for West Texas Intermediate crude.
According to economic theory, the long-term
futures price should be equivalent to the
marginal cost of supply. That is, the price of
a future barrel is set by the incremental cost
to add another barrel of supply.
As petroleum geologists we must pursue
opportunities to learn and grow, to expand our
skill sets, to understand how science, technology
and business combine to create value.
CURTISS
In reality, of course, the market isn’t that half of 2019, energy ranks dead last.
efficient. But increased supply from shale, “The Quest for Value” was the theme of
enabled by technology advances and pro- the opening plenary session at last month’s
duction cost declines, has flattened the oil Unconventional Resources Technology
cost curve over the last decade, suggesting Conference in Denver as the speakers de-
that there is significant additional supply scribed how their companies were shifting
available between $50 and $60 per barrel. from a “production and growth” mindset to
The upshot is that “there is a much larger one focused on discipline and quality.
amount of supply that can be called into The market is going to reward those
action given a much smaller price increase firms who harness the best people with the
than in the past.” best technology to generate enterprise val-
ue, said kick-off speaker Mike Henderson of
Quest for Value Marathon.
It means being focused and innovative
We’re seeing economics in action with enough to generate durable positive cash
production booming. But when you look at flow, not just for a quarter or two, but over
U.S. equity sector performance for the first the long term, according to Clay Gaspar of
WPX. We’re talking about free cash flow
– the cash left over after you’ve paid for
everything, including your cost of capital.
And when you’ve done that, you must then
return some of that cash to the shareholder
in the form of dividends, share buybacks or
debt reduction.
The transition from growth to value is
tough, said Peter Hagist of Whiting Petro-
leum, because there are so many factors
at play, including technological, operational
and financial variables that can each con-
tribute to or hinder achieving this objective.
Henderson echoed that point, suggest-
ing that working in E&P not only requires
specific discipline expertise, but frequently
bridging disciplines in order to remain rele-
vant and effective.
As petroleum geologists we must
pursue opportunities to learn and grow, to
expand our skill sets, to understand how
science, technology and business combine
to create value.

By EDITH NEWTON WILSON, EMD President Divisions Report: EMD

Exploring Energy Frontiers While Embracing Positive Change
C
hange is in the air. How will we choose
to deal with it? We make choices
every day, in our project work, our
investments and our lifestyles. With so much
in play, how do we select the right options?
This challenge is particularly appropriate
to discuss within the Energy Minerals
Division, since our members are those in the
AAPG who look beyond the conventional,
the everyday and the familiar. We focus
on opportunities outside of those in the
traditional oil field to provide efficient and
economic energy resources to the world.
Our annual meeting in San Antonio,
led by past EMD President Wayne Camp,
was a beehive of activity. More than two
dozen reports by officers, councilors and
committee chairs were summarized during
the discussion and can now be found on
the AAPG website. Conversations ahead of
and after the meeting, as well as side buzz,
complemented the official discussion. Our
leadership table was filled to capacity and
overseas members and absent friends
called in by phone. The energy was
palpable and the meeting expanded to fill
the available time and more.
Change is in the air, and we are
embracing it.
A Cauldron of Choices
From liquefied natural gas and
carbon capture, utilization and storage
in Australia, to drilled-but-uncompleted
wells in the Permian, to our new Critical
Minerals Committee’s focus on the battery
supply chain, to hydrates and web hits
and small modular nuclear reactors – we
covered it all. Jeremy Platt, our co-
chair of the EMD’s Energy Economics
and Technology Committee, captured
the evolving atmosphere by the theme
“unease at the top” in his fascinating
and in-depth report on revolution in the
energy industry over the past two years.
Change is inevitable, productive, hopeful,
energizing and life-bringing. Change is coming to
our profession, and we love a challenge. We thrive
on the bleeding edge of geoscience frontiers.
WILSON
He discussed ever-increasing U.S. oil
and gas production under the burden
of price ceilings and escalating debt;
and characterized the coming climate
crisis with phrases such as a “magnifying
social agenda” and the “crescendo of
rising aspirations.” And, he described
the proposed political and technological
solutions as a “cauldron of choices.”
Well, fellow explorers, that sounds
like code for a landscape filled with new
opportunities to which we can apply our
geological skills honed over years in
the petroleum business. A “cauldron of
choices?” That’s just an energy portfolio
hungry to be analyzed for economics, risk
and reward. Let’s get to work.
My only regret about our leadership
meeting was that the discussion was
limited to a few dozen AAPG members. I
used my reporting time as president-elect
to lay out a business plan for 2019-20,
which focuses on getting the word out.
Our annual reports are archived on the
Web, of course, but their true value
lies in real-time discussion with the
authors and committee members who
did the research. Their perspectives
are unique and valuable. In the coming
year, EMD members (join us – it’s free!)
will be sharing information on Facebook,
LinkedIn, and especially on AAPG’s
open publications service, Search and
Discovery. In the meantime, feel free to
reach out to any of our leaders if this
sounds interesting to you and you’d
like to participate. Our councilors and
committees are already hard at work
scheduling EMD-led sessions at regional
and sectional meetings.
ACE 2020
For ACE 2020 in Houston, check out
Theme 9: “Expanding Energy Frontiers,”
which is described as representing
“the domain of greatest uncertainty
faced by the energy industry – where to
invest long term, what disruptions may
await, what technologies may be truly
transformational, how will energy systems
and minerals be coupled in the future?”
We’ll have sessions on hydrates, critical
minerals, geothermal, helium and much
more. We also have sessions planned
in collaboration with the Division of
Environmental Geosciences on carbon
capture, utilization and storage, and with
the Astrogeology Committee on lunar
resources and Mars habitation. EMD is
leading the charge in unconventional
exploration by seeking papers on
machine learning in resource plays and
global frontier shale basins.
Change Brings Opportunity
We’ll happily tackle the tough topics,
as they can be the gateways to new
ideas and opportunities. At the end of our
business plan discussion in San Antonio,
we reviewed the recommended statement
from the member-led ad hoc Committee
on Climate Change, and discussed
how the rising tide of renewable energy
coupled with rapidly decreasing
technology costs is driving the market for
critical mineral exploration to meet storage
demands. As the economic imperative
for clean energy grows, we will be ready
with ideas for greening the oil field and
applications of subsurface geoscience
to the search for new energy resources.
We are ready for a robust discussion of
the ongoing energy transition. Nowhere
is it better exemplified that change brings
opportunity than here at EMD.
Change is upon us, but we are explorers.
We’ll search for new sources of natural gas
to lighten the fuel mixture, help develop gas-
to-liquids, and charge into carbon capture,
utilization and storage, which will draw on
our considerable subsurface expertise
more and more as time goes by. Change is
inevitable, productive, hopeful, energizing
and life-bringing. Change is coming to our
profession, and we love a challenge. We
thrive on the bleeding edge of geoscience
frontiers.
But, some things will stay the same.
To quote a colleague in the battery tech
industry, “Everything comes from the
ground.” It’s no matter whether we are
evaluating oil and gas, or lithium, or even
silicon to make solar panels. The rocks
and fluids won’t change how they form
and deform, but we can improve how
we search for and extract surface and
subsurface energy resources to minimize
both cost and environmental impact. As
exploration geologists and EMD members,
we can use the tools and talents gained
from a century of exploring the subsurface
to ensure access to affordable, reliable,
sustainable and modern energy for all.
Embrace change – it’s what we do.
EXPLORER
 PS AIL
AV

TM AB
& LE
Total Survey: 16,355 km

PS IN
Regional Grid: 12,195 km

D Q
Detailed Grid: 4,160 km

M 4
DA 20
TA 19
Line 1
Block 2
Block 3
Block 4

CARIBBEAN ATLANTIC
MARGIN DEEP IMAGING
MCG is pleased to present the Caribbean Atlantic Margin
Deep Imaging survey (CAMDI).
The 16,355 km survey is targeting the highly prospective and underexplored basin along the
Southeastern Caribbean and Western Atlantic margin of Northeast South America.
High quality pre stack time, pre stack depth, gravity and magnetic data will be made available
upon completion.

Learn more at www.geoexltd.com & www.mcg.no

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