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Confidential – Reproduction Prohibited

History of the Oilfield – Oil 101

A Special Presentation for: Petroleum Equipment Suppliers Association

13 March, 2014

Presented by Steve Jacobs

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Challenge: Developing Infrastructure In Historically Volatile World Regions

Source: James Baker Institute For Public Policy

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Oil Supply and Demand – A Macro View

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Early History of Oilfield Technology

Oil seeps 3rd Century AD

Late 1800’s

Limiting Factors

Whaling industry Oil demand Refining capacity

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1,500 Years of Drilling Technology Progress?

3rd Century AD

Early 1800’s

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End of One Era/Beginning of Another

Hawaii: 1850’s

Early Refinery

Snake Oil Salesman

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Important Milestones in Petroleum

1853 Drake Well - 1859

1878 1880’s

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Modern Era of Petroleum Industry

1901 – Spindletop TX 1859 – Drake Well - PA

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“Necessity is the mother of invention.”

-- Plato

Oilfield Technology Edict

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Howard Hughes Bit – 1908

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Invention of Blow Out Preventor (BOP) – 1922

1922 1910

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National Petroleum, Coffeeville, Kansas - 1911

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Alexander Grigoryan – First Mud Motor and Multilateral – 1953

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How Major Service Companies Started

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California Pier Drilling

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Drill Bits – 1908 and Present

Hughes Bit

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Wireline – 1912

Conrad & Marcel Schlumberger

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Subsea Equipment – 1967

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Logging While Drilling – 1978

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Top Drive Drilling Systems – 1982

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Geophysical Surveys

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Drilling Rigs

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Hydraulic Fracturing

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NASA Used Oilfield Bit Technology to Drill on Mars

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Macondo Tragedy - 2010

Before After

20 April, 2010

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The Shale Play Revolution Has Changed the World

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Safety Issues – Texas Upstream in 2012 (Latest available figures)

65 Fatalities in Texas!!

13 Fatalities in the Eagle Ford!!

Some operators are being

“overwhelmed” by contractor activity

One oil company said floor hand turnover rate is around 50%!!

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Pending Manpower Shortage – Almost Here

Questions?