Energy International Quarterly Issue 9

internationalenergy

quarterly

july/august 2010

eiq

SolarCityPublic utility, Private equity, and the future of Solar leaSing

Raymond James & associatesLessons from america’s top energy analysts

infinite eneRgy

Products for clean, green, renewable power

While maintaining focus on safety, cost and the importance of continuously delivering

on schedule, Fisher Powerline Construction Ltd. offers construction and maintenance

services on overhead and underground transmission and distribution systems utilizing

both cold and hot line methods.

Let Us Bring Power To Your Neighborhood.

Bay #8 - 122 Millennium Drive

Fort McMurray, Alberta T9K 2S8

Tel: (780) 713-3474 • Fax: (780) 791-1905

www.fisherPLC.ca

fisherpowerline.indd 1 2/10/10 6:20 PM

energy international quarterly july/august 2010 3

SOLARCITYSolarCity is helping to knock down long-standing barriers between consumers and affordable renewable energy to provide easy access

to solar-energy systems. p. 50

Raymond James & Associates, Inc., a financial-services firm with a focus on energy stocks, suggests a conservative approach: bullish on oil, bearish on gas, and squeamish on renewables. p. 42

contents

energy international quarterly july/august 20104

Transitioning to Renewables

mar oil & gas corp. has remained resilient despite the down economy by exploring and expanding energy-efficient initiatives beyond traditional fuels.

pettigrew & associates, p.a., positioned in New Mexico’s economi-cally booming EnergyPlex, is serving the renewable-energy sector with civil-en-gineering, surveying, materials-testing, and consulting services.

Exploration & Development

amr process inc. is a process-engi-neering company that has begun expand-ing its services into the international marketplace.

gunn oil company is a privately held, Texas-based oil-and-gas-production company that credits its success to an expert staff and independent spirit.

minard run oil company, which has drilled into its own land for more than a century, is eyeing a serious entry into natural-gas exploration, drilling, and production.

Engineering

excel engineering, inc. is a full-service engineering-consulting company that makes teamwork, effective com-munication, and dedication to customers central to its success.

comco petroleum manage-ment inc., which began as a one-man gasoline-pump repair shop, now offers full-service petroleum-engineering and environmental services throughout the region.

bastion technologies, inc. is an engineering and scientific-services company that provides structural and mechanical analysis and engineering/design for the aerospace and subsea oil-and-gas markets.

True to its name, Excel Engineering integrated a global view to remain profitable throughout the recession.

p. 24contents

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North American Wind

infinite energy manufactur-ing manufactures components for wind-turbine systems, helping create a cleaner, more responsible environment.

westwood professional services, inc. is a multi-disciplined consultant that provides site evaluation and construction-support services for many new wind-farm projects.

the michigan institute of aviation and technology has become a national powerhouse for those who want specialized training in power technology, aviation technology, or transportation dispatching.

carstensen consulting, inc., a construction company based in Minne-sota, has expanded its business to include wind-energy development and site preparation.

Custom Products

s2w contracting llc commissions and maintains reciprocating natural-gas compressors for companies accross the United States.

map oil tools designs, manufac-tures, and distributes standard-service downhole tools and specialty tools for oil-and-gas developers and contractors all over the world.

gmg energy solutions inc. builds custom equipment, such as oil-and-gas drilling rigs, to withstand the Cana-dian oilfields.

Specialty Services

barnhart crane & rigging co., which has grown from a single location to 24 offices nationwide, has developed spe-cialized expertise in the energy sector.

pacs industries, inc., which manufactures metalclad switchgear, has grown considerably in both size and ser-vice offerings.

fisher powerline construc-tion ltd. is a husband-and-wife-owned powerline-construction company that em-phasizes customer service, a commitment to safety, and to getting the job done.

microseismic, inc. has become the world’s leading service company provid-ing acquisition and analysis of passive seismic data.

Job-Site Safety

safety and supply company is a third-generation family-owned business offering multifaceted services, including safety products for all areas of the energy industry.

reliable environmental trans-port, inc. collects, transports, and disposes waste in order to keep resource-development sites clean and safe.

southwest disposal service inc. reclaims oil from oilfield waste, and has set the standard for disposal practices in the energy field.

Plus

editor’s notenewslast word

Barnhart Crane & Rigging Co. has developed special expertise in serving the energy sector, including the installation of wind turbines.

p. 63

T he energy industry remains one of the most influential, profitable, and volatile markets in the global economy today. As ideologies, methods, and energy sources change daily, energy companies have

to be at the top of their game to ensure their business will perform. This issue of EIQ explores the changing energy market, and attempts to give our readers a glimpse into the future of power generation.

SolarCity (page 50), which appears on our cover, is an innovative com-pany that is attempting to change how the world approaches solar energy. The firm has struck a deal with a California utility company that will finance the installation and maintenance of more than 1,000 small-scale solar-energy systems. According to Lyndon Rive, founder and president of SolarCity, “The PG&E deal sets an example that utilities can look at solar companies as a business opportunity, instead of being at odds with each other. If we want to see the industry expand, we need the solar-power providers and utility companies to work together, and [the PG&E deal] is one way.” Only time will tell if a strategic partnership between utility companies and solar providers will be the future of the renewable-energy industry.

While renewable power may be at the forefront of today’s energy dialogue, oil and natural gas remain the primary energy sources for more than 80 percent of the world’s power consumption. EIQ had the opportunity to discuss this fact, among others, with world-renowned financial advisors Raymond James & Associates (page 42). Cory Garcia, senior research associate with the firm, explores the future of the energy industry as it pertains to investments and stock trends. “Our fundamental thesis on the energy space has been a tale of two commodities: bullish on oil, bearish on natural gas,” Garcia says. He continues on this topic, say-ing, “Risks remain high in alternative energy, reflecting the often brutal competitive dynamics in young, rapidly evolving industries.”

We at Energy International Quarterly continue our coverage of the global energy market in an attempt to inform you, our readers, of cur-rent opportunities and trends that will influence your businesses in a positive way. As always, we hope the articles in this issue motivate and inspire your work. Enjoy.

Molly SoatFeatures Editor

editor’s note

SolarCity is reimagining small-scale solar energy.

The ABQ Building Excellence Awards recognize achieve-ments in architecture, design, and community planning across the nation. Winning projects will receive featured coverage in the July/August 2011 issue of American Builders Quarterly, in addition to prize packages avail-able exclusively to Building Excellence Award winners.

Project submissions must be received by mail no later than October 15, 2010.

Visit americanbuildersquarterly.com/awards for submission requirements, downloadable entry forms, and complete award details.

abq building excellence awards

American Builders Quarterly is celebrating the best in American building and design with the 2011 Building Excellence Awards

2011


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2011


• City of Montpelier (Montpelier, VT): installation of a 41-million-British-thermal-unit combined heat-and-power district energy system fueled with locally sourced, renewable, and sustainably harvested wood chips.

• Forest County Potawatomi Tribe (Forest County, WI): a 1.25-megawatt biomass combined heat-and-power facility, a biogas digester and 150-kilowatt generation facility, three 100-kilowatt wind turbines, and solar PV panels.

• Phillips County (Holyoke, CO): a 30-megawatt wind-energy project, with an ultimate goal to build a 650-megawatt wind farm within Sedgwick, Phillips, and Logan counties in north-eastern Colorado.

• Sacramento Municipal Utility District (Sacramento, CA): a “So-lar Highway,” which will feature three PV-system installations on two miles of highway right-of-ways, with total capacity of 1.5 megawatts; a full-scale co-digestion process of fats, oil, and grease; and two anaerobic digesters that will generate 600 kilowatts of electricity.

• University of California–Davis (Davis, CA): a waste-to-renew-able-energy system that will generate power from a renewable-biogas-fed fuel cell.

Source: US DOE

energy bulletin

ENERGY EDUCATION

Texas Electric Provider Awards Annual Teacher Grants

In an effort to help stimulate and inspire young students across the state, First Choice Power—one of Texas’ largest retail electric providers—has awarded 22 grants totaling more than $50,000 to Texas teachers who submitted creative ideas to discuss energy and energy-efficiency in the classroom. “En-ergy efficiency is a growing issue, and today’s students are the key to its future,” said First Choice Power president Brian Hayduk. “The First Choice Power Classroom Energy Innova-tion Grants are one way we are doing our part to help support innovative learning.”

Highlighted projects include:

• Alan Small of Northbrook Elementary School (Saginaw, TX): Third-graders will use laptop computers, stop-motion cameras, and video-editing software to create a series of short movies about energy and conservation of natural resources.

• Kori Acevedo’s of Helen Edwards Early Childhood Center (Kaufman, TX): Pre-kindergarten and kindergarten students will explore energy and light with a series of lessons that include UV bracelets and studying the sun’s energy.

• Lucy Vivian of Goodson Middle School (Cypress, TX): Students will explore various ways to produce alter-native energy and will evaluate factors related to the various types of energy, such as costs, productivity, compatibil-ity with needs and resources available, and potential risks to the environment.

Source: First Choice Power

LEGISLATION: FUNDING

DOE Announces More Than $20.5 million for Community Renewable-Energy-Deployment Projects

The US Department of Energy has selected five projects to receive more than $20.5 million from the American Recovery and Reinvestment Act. The funding supports deployment of com-munity-based renewable-energy projects, such as biomass, wind, and solar installations. These projects will promote investment in clean energy infrastructure that will create jobs, help com-munities provide long-term renewable energy, and save consumers money. DOE estimates that these projects will provide enough clean, renewable energy to displace the emissions of approxi-mately 10,700 homes. Projects selected for awards include:

DOE Invests $12 Million to Support Solar Technologies

US Department of Energy Secretary Steven Chu has announced that the National Renewable Energy Laboratory (NREL) will invest up to $12 million in total funding—$10 million from the American Recovery and Reinvestment Act—in four companies to support the development of early-stage solar-energy technologies for a full commercial scale. The anticipated subcon-tracts, up to $3 million each, will be awarded as 18-month phased subcontracts, with payment made upon completion of project milestones. The partnership projects announced include:

• Alta Devices, Inc. (Santa Clara, CA): a high-efficiency, low-cost com-pound-semiconductor photovoltaic module.

• Solar Junction Corp. (San Jose, CA): high-efficiency multijunction cells.

• Tetra Sun (Saratoga, CA): a back-surface passivation for high-effi-ciency crystalline silicon solar cells.

DOE share: $8,000,000

DOE share: $2,500,000

DOE share: $8,000,000

DOE share: $5,000,000

DOE share: $2,500,000

Source: US DOE


China-based Company Named a Top 20 Energy Service Company

NF Energy Saving Corporation, a Chinese leader in providing integrated energy-conser-vation solutions, earned a 2009 Top 20 ESCO (Energy Service Company) award at the re-cent China ESCO Industry Annual Meeting & China Energy Forum held in Beijing. Hosted by the ESCO Committee of the China Energy Conservation Association, the summit meet-ing is the premier industry event in China. Mr. Li Gang, chairman and CEO of NF Energy, gave a speech at the conference, highlight-ing NF Energy’s achievements in the field of energy conservation and emission-reduction projects and services. “Energy services com-panies are facing unparalleled opportunities and challenges in China,” he said. “Being a Chinese leader in the ESCO industry, we be-lieve that our company will benefit from new macro preferential policies, as well as internal technology innovation, allowing us to achieve more impressive results in the future.”

Source: NF Energy Saving Corporation

Ken Salizar, SEIA’s 2009 Energy Champion of the Year.

US Department of the Interior Secretary Named 2009 Nation-al Solar Energy Champion of the Year

Department of the Interior (DOI) Secretary Ken Salazar was recently named 2009 Energy Champion of the Year by the Solar Energy Industries Association (SEIA), which works with 1,000 member companies to make solar a mainstream energy source by expanding markets and removing barriers, strengthening the industry, and educating the public. Some of Salazar’s many contributions for advancing efforts in solar energy include:

• signing an order to make the production, development, and delivery of renewable energy a top priority for the DOI;

• setting aside 1,000 square miles of public lands in 24 “Solar Study Areas” that have the potential to generate nearly 100,000 megawatts of clean, reliable solar energy;

• a new fast-track review program of specific solar-energy projects in the Southwest, representing 6,521 megawatts of capacity (enough electricity to power 1.6 million homes), which is expected to create more than 20,000 jobs.

Source: Solar Energy Industries Association

ASSOCIATION NEWS & AWARDS

Retail Energy-Supply Associa-tion Welcomes New Member

The Retail Energy Supply Association (RESA), a leading trade association of retail energy suppliers,has announced the addition of Con-stellation NewEnergy to its membership.

“Constellation NewEnergy looks forward to joining forces with RESA to advocate for the continued development of competitive retail-energy markets in the United States,” said David I. Fein, vice president and director of Retail Energy Policy for Constellation New-Energy. “RESA’s continued advocacy on such issues will provide customers with a greater array of innovative energy choices and access to more services, including demand response, energy efficiency, and renewable energy.”

Constellation NewEnergy is a leading com-petitive supplier of electricity, natural gas, and energy-related services to commercial, indus-trial, and institutional customers throughout the United States.

Source: Retail Energy Supply Association

energy international quarterly july/august 201010 energy international quarterly may/june 201010

energy bulletin

World’s First Home-Scale Ethanol-From-Cellulose Processor Announced

Allard Research and Development, the world leader in small-to-medium-scale ethanol-fuel-production systems, has developed the world’s first small-scale machine system that converts ordinary waste into ethanol fuel, utilizing cel-lulose as the primary feedstock. The new system, designed as a front-end processor for Allard’s ex-isting line of modular ethanol-distillation systems, can produce ethanol from products such as:

• lawn clippings;• cardboard;• paper;• sawdust;• other cellulose-based material.

The product breaks down the materials into a sugar-water solution. Once turned into sugars, the solution is fermented and distilled into etha-nol fuel, using Allard’s existing line of ethanol-distillation systems. In addition to the small, home-scale version of the machine, the company is also rolling out larger versions for the commer-cial marketplace that utilize the same technology.

Source: Allard Research and Development

eMeter Receives Highest Rating from Analyst Firm Gartner, Inc.

eMeter, the global leader in Smart Grid Management software, has received the highest rating for its latest product, the EnergyIP, in analyst firm Gartner, Inc.’s report titled “MarketScope for Meter Data Manage-ment Products.” The EnergyIP—which offers es-sential software that enables electric, gas, and water utilities to realize the full benefits of smart grid—is the third installment of eMeter’s Smart Grid Manage-ment Suite, which also includes:

• Energy Engage, a next-generation online-consumer-engagement solution that empow-ers utilities and consumers to work together to drive sustainable energy conservation and cost reduction;

• Smart Grid Solutions, which provide extend-ed AMI deployment, operations, and Smart Grid-management capabilities.

“With the distinct advantage of being designed for large-scale deployments, eMeter is well positioned to help utilities and consumers take full advantage of the benefits that the smart grid offers,” said eMeter CMO Sam Klepper.

Source: eMeter

Eco-Friendly Engine Cover Developed for Award-Winning Hybrid

Leading North American automotive manufacturer MPC Inc. (based in Walworth, Wisconsin) and PolyOne Corporation—a premier global provider of specialized polymer materials, services, and solutions—have created an eco-friendly engine cover for the award-winning 2010 Ford Fusion Hybrid, which was named the North American Car of the Year at the North American International Auto Show earlier this year.

The engine-cover product was co-designed by the companies, with MPC molding the engine cover from a metallic-effect PolyOne com-pound (Maxxam FX Metal). The eco-friendly process mimics the luster of painted polymer versions but eliminates the extra energy requirements, environmental challenges, and heavy carbon footprints of traditional manufacturing and painting processes, making less im-pact on the environment.

“This project underscores our focus on innovation and eco-friendly technologies,” said Doug Callahan, MPC’s vice president of engineer-ing. “It also demonstrates the level of success that can be reached with these types of collaborative relationships.”

Source: PolyOne Corporation

INDUSTRY: PRODUCTS

energy international quarterly july/august 2010 11energy international quarterly may/june 2010 11

MERGERS & ACQUISITIONS

Covanta Completes the Acquisition of Energy-from-Waste Business

Covanta Holding Corporation, an internationally recog-nized owner and operator of large-scale energy-from-waste (EFW) and renewable-energy projects, has suc-cessfully completed its acquisition of a 3,000-ton-per-day operating contract in Miami-Dade County, Florida.

Completing this final stage of the acquisition of Veolia’s North American EFW business further enhances Covanta’s position as the world leader in the development, ownership, and operation of EFW facilities, which provide communities with an environmentally sound solution to their solid-waste-disposal needs by using that municipal solid waste to generate clean, renewable energy. Annually, Covanta’s modern EFW facilities safely and securely convert approximately 20 million tons of waste into more than 9 million megawatt hours of clean, renewable electricity, and create 10 billion pounds of steam that are sold to a variety of industries. The businesses acquired from Veolia include:

LEGISLATION: INTERNATIONAL

LandStar Inc. and Chinese Municipal Government Reduce Emissions

China-based LandStar Inc.’s subsidiary Hubei Chuguan Industrial Co., Ltd. held a conference earlier this year with the municipal government and created multimillion-dollar opportunities for 2010. Hubei Chuguan held a working conference with local government representatives on com-prehensive management of oil-and-gas recovery in Zuhai City. The conference reexamined the plans for Environmental Protection Model City Zhuhai, which stresses the country’s current energy-saving and emissions-reduction policies in the city.

The municipal government has since created an office to work on the initiative, which will manage the oil-and-gas recovery in the city’s existing gas stations, oil depots, and tankers. The program’s completion is expected by the end of September, with pollution inspection of all oil-storage facilities, gas stations, and oil-and-gas tankers completed by the end of the year.

Source: LandStar Inc.

Mar Oil & Gasexploration & productiondevelopers and operators

of renewable energy projects.

P.O. Box 5155Santa Fe, NM 87502

Tel: 505.999.1977Fax: 505.999.1987

MMMMMMMMMMMMO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&GO&G

• the operating contracts associated with six EFW businesses;

• ownership and operation of a seventh EFW facility located in Montgomery County, Pennsylvania;

• a transfer station, also located in Penn-sylvania;

• a long-term operating contract with the respective municipal client.

Source: Covanta Holding Corporation


MAR OIL & GAS CORp.New Mexico-based company finds success with alternative energy

by ryan nave

when people are happy about the low price of fuel, the oil-and-gas industry, and the millions of people it employs, are hurting. Despite the state of an in-dustry that has seen steadily depressed prices during the global recession, however, Santa Fe, New Mexico-based Mar Oil & Gas Corp. is finding success while adapting to the changing market landscape. “What’s unique about us is that we are involved in alternative energy besides oil and gas,” says company president Leon Romero. This expansion into renewable energy has been achieved through Four Peaks Energy Corp., a wholly owned sub-sidiary of Mar.

Specifically, Mar is working on a number of renewable-energy projects to add to its traditional business of up-stream oil and natural-gas exploration and production. In 2007, the company built a 3.2-megawatt generator that is propelled by methane gas captured from a landfill. Waste Connections Inc., headquartered in Sacramento,

California, operates the generator out of its Sundland Park, New Mexico, site. The electricity generated at the facility is then sold to El Paso Electric Co.

Mar has also become involved in a landfill-gas project, to help divert waste from landfills. Leftover food and other organic matter winds up in landfills, where the material decomposes and produces carbon dioxide and methane. Because the latter of these gasses is explosive, landfill operators historically have simply burned, or flared, the methane. Romero believes that practice is unnecessar-ily wasteful. “I guess I’m of the belief that you have to exploit energy wherever there is energy,” he says. “What we’re doing is turning [methane] into an energy source instead of destroying it. So we’re making an economic resource out of what would have been nothing.”

Similar to the landfill gas project, Mar is also working with farmers to produce energy from the biogas gener-

At A glANCE

location:santa fe, nmfounded: 1986area of specialty:demolition, construction, excavation, hauling, remodeling, and equipment rental2009 sales$25 million

Mar’s specialized equipment, like this Carterpillar generator, is pro-

pelled by methane gas captured from landfills.

transitioning to renewables


mar oil & gas corp.

ated by waste ponds on dairy and chicken farms. The project is planned for East Texas and is in the early fi-nancing stages.

From a business perspective, delving into alternative energy spreads Mar’s risk in a very volatile market for petroleum and natural gas, whereas the electricity market is typically more steady, Romero says. He explains that oil and gas have a decline curve, meaning that production from a given well decreases over time. Landfills and other renewables, on the other hand, produce more methane over time, giving that product an incline curve.

The future effect of depressed oil-and-gas prices on Mar’s bottom line is unknown. Up until the recession began, however, sales had been brisk. From 2007 to 2008, revenues just about doubled, from $5.1 million to $10 million. Romero forecasts that Mar is “probably going to hold steady” through 2010.

Despite the alternative-energy ventures, Romero stresses that Mar is not abandoning its core businesses in oil-and-gas production. Romero’s father started Mar in the 1940s, drilling oil wells in Texas, Wyoming, and Brazil. In 1954, Mar incorporated in New Mexico as an oil-production and -leasing company.

When Romero joined the firm from the telecommunica-tions industry in 1981, the oil business was experiencing many of the same difficulties it is currently undergoing. Nevertheless, Mar continued to grow by developing wells in the gas-rich San Juan Basin in the southwestern United States. Today, the four-employee firm—whose largest customers are ConocoPhilips Co. and Plains Marketing LP, both headquartered in Houston, and

What we’re doing is turning [methane] into an energy source instead of destroying it. So we’re making an economic resource out of what would have been nothing.

—leon Romero, President

Birmingham, Alabama-based Energen Corp.—owns interest in more than 1,000 wells in the San Juan and Permian basins.

Mar has several explorations planned for 2010, including plans to waterflood some of its sites in order to boost production and concentrate on oil drilling and explora-tion in Texas and New Mexico. According to Romero, the company is also looking at the possibility of going public with an Alternative Public Offering. Of the bold move, Romero says, “We’re a pretty tiny company but looking to grow.” And with its success in the past de-spite the down economy, Mar Oil & Gas certainly looks poised for growth. EIQ

Mar specializes in the exploration and production of upstream oil and natural gas.



pETTIGREW & ASSOCIATES, p.A.New Mexico-based civil-engineering firm diversifies its offerings

by erica archer

At A glANCE

location:hobbs, nmemployees:35area of specialty:civil engineering, surveying, materials testing, and consulting 2009 revenue:$5 million

the economy of new mexico and civil-engi-neering firm Pettigrew & Associates, P.A. both share a success strategy amid tough economic times: strength in diversity. For the state- and local-government entities of New Mexico, that means looking to energy producers beyond oil and gas. For Debra Hicks, president of Pet-tigrew & Associates, it means staffing her civil-engineer-ing firm with multiple specialties.

Pettigrew & Associates has long been established in its Hobbs location. The firm was founded in 1965 by Hicks’ father, and she and her husband purchased it in 1990. The multidisciplinary firm provides surveying and materials testing, as well as planning, feasibility studies, and con-struction management. “We’re a one-stop shop that can support the whole project from start to finish, from the very idea on a napkin [to completion],” Hicks says.

The firm has been increasingly active in its home state’s energy sector in recent years. New Mexico’s economy has long been focused on the oil-and-gas industry—the state is America’s fourth-largest producer of natural gas and sixth-largest producer of oil. “For about the past ten years, we’ve been working to diversify that economy with the addition of alternative energy, wind, and nucle-ar,” Hicks says.

One recent development is the construction of the URENCO USA National Enrichment Facility (NEF), which represents a coup for eastern New Mexico. Pet-tigrew & Associates provided consulting, engineering, project management, and design services for the facil-ity’s water-supply line. Currently, it has an indefinite contract to serve as the NEF’s surveying department. The uranium-enrichment nuclear facility, approved in

Pettigrew & Associates completed an ALTA survey of the Caprock Wind Ranch in Quay County, NM, which included an area of

31 sections across 4 townships, encompassing a transmission line route that covered an additional 12 miles of right of way.

Photo: Michael Bowers, NM State Land Office.



pettigrew & associates, p.a.

2006, is currently under construction near Eunice, New Mexico—twenty miles south of the offices of Pettigrew & Associates. The construction budget currently weighs in at $3 billion, and the first commercial operations are launching this year. When completed, the URENCO USA NEF will produce one-fourth of the American uranium supply—enough fuel to fill 10 percent of the nation’s electricity needs.

Hicks, active in the Economic Development Corporation of Lea County, facilitated community hearings during the permitting process. She attended the Washington, DC, signing of the permits in 2006, and she briefly spoke at the project groundbreaking. “It was very exciting,” she says. “The project represented an enormous economic opportunity for southeastern New Mexico and, subse-quently, Pettigrew & Associates.”

Like New Mexico’s economy, the firm finds its strength in its versatility. According to Hicks, the firm’s in-house professionals can approach a project from multiple angles.

“Because we’re able to do surveying, engineering, materi-als engineering, geotechnical, and materials testing, we can take care of the entire civil portion of a project,” she says. “We’re uniquely positioned as a full-service engi-neering firm, and that allows us diversity as well as flex-ibility in changing markets.”

Unlike many firms during the construction slump, Pet-tigrew & Associates has steadily grown over the past five years, growing at an average rate of 37 percent from 2005 to 2009. The firm also has gone from annual rev-enues of $500,000 in 1990, when Hicks purchased it, to just shy of $5 million in 2009. In addition, a move to a bigger office is planned for summer 2010.

Its growth comes from years of experience in a variety of industry sectors. Since 1965, Pettigrew & Associates has

We’re uniquely positioned as a full-service engineering, geotechnical, surveying, and materials-testing firm, which allows us diversity as well as flexibility in changing market focus. —Debra Hicks, President

worked for the local electric utility; and in 2003, South-western Public Services completed a 354-mile transmis-sion line crossing 11 counties and 4 states, for which the firm performed geotechnical investigations and surveying. In the wind-energy arena, Pettigrew & Associates provides ongoing surveying services for the Caprock Wind Ranch in Quay County, which began operating in 2004.

Hicks adds that the eastern New Mexico EnergyPlex, known as the nation’s epicenter of energy commerce, hasn’t been hit as hard the rest of the nation during the economic downturn. Lea County’s unemployment rate has been well below the rest of the nation, from 2006 to 2009. The area has taken hits nonetheless: Hicks notes that in the sparsely populated region, the oil-and-gas industry lost more than 1,800 jobs, from 2008 to 2009, according to the New Mexico Department of Workforce Solutions (formerly the Department of Labor).

“We’re just blessed,” Hicks says of the firm’s success. “I won’t venture to say it was just expert leadership; our team of talented and dedicated employees are all respon-sible. We have a motto that the work that we do is of the highest ethical and moral standards. And I think that has been instrumental in helping us maintain a 90-percent repeat-client base.” EIQ


Labor-Workforce Trends in New Mexico’s Energy Plex

2004 2005 2006 2007 2008 Civilian Labor Force 24,524 25,728 26,796 27,968 30,586 Employed 23,307 24,640 25,938 27,336 29,833 Unemployed 1,217 1,088 858 652 753 Rate 5.0% 4.2% 3.2% 2.3% 2.6%

Source: NM Department of Labor


amr process inc.

AMR pROCESS InC.

located in alberta—the heart of canada’s oil-and-gas industry—AMR Process Inc. sells oil-and-gas technology to an increasingly international marketplace. “We have a floating production in Nigeria; we currently have fabrication for Russia and Oman in-house; we have a joint-venture company in China and looking to set up a joint-venture company in the Middle East,” says Ashley Robbins, president. Some of the com-pany’s major international markets include Iraq, Tunisia, Indonesia, Brazil, and Europe. “We possess various tech-nologies that are fairly limited among companies around the world,” Robbins continues. “Ninety-eight percent of our business is exports.”

AMR provides licensed designs for international fabrica-tors. The firm—which has experienced an average of 185-percent growth anually since its founding five years ago—also provides engineering functions like start-up and commissioning, troubleshooting of oil-and-gas process equipment, and training of operators. AMR’s project experience includes offshore, floating produc-tion, and cold-weather design projects that have been implimented accross the globe.

From the beginning, AMR’s business plan was to focus on the top ten countries in the world in terms of oil-and-gas production and reserves. “So far, we’ve penetrated approximately 60 percent of those markets, which is a huge achievement for any company to accomplish,” Rob-bins says. As a way of streamlining those goals, AMR Process started working with I. Matheson Company (IMC) in 2007, and became a part owner of IMC in 2009. IMC is a Nova Scotia-based fabricator located on the Atlantic Ocean and Eastern Seaboard that has been in operation for more than 150 years—beginning in the 1860s as a ship builder. “They built the first steel schoo-ner in Canada,” Robbins says. “Their business has been around since Lincoln was president.” The two companies were introduced in 2007, through an economic-develop-ment-agency conference, and quickly realized the pos-sibilities of their combined potential.

“When I met Ashley, he identified a synergy,” says Jim MacDougall, general manager at IMC. “AMR had ex-perience and professional expertise in design of process packages, and IMC had location and fabrication capabili-ties that AMR was looking for. We both wanted to grow

Two electrostatic treaters designed by AMR and built by a client in Venezuela.

Canadian oil-and-gas technology expands in the global marketplace

by david hudnall

At A glANCE

location: leduc, abarea of specialty:oil-and-gas process engineering and water-treatment services


amr process inc.

AMR specialized internals for oil/water sepa-ratoion being installed in vessels in China

our companies in the same market.” IMC manufactures U-stamp ASME products for the export market through AMR’s engineering. “The history of IMC is amazing,” says Robbins, “and they also have great current manufac-turing technology. We’re working to where we can ex-pand our products in oil and gas worldwide together: our export and design knowledge, their fabrication knowl-edge. It’s going to happen, and we’re very excited about it.” So far, the joint venture has sent oil-and-gas pro-cessing equipment to fields and clients in Nigeria, Iraq, Tunisia, and Italy, and is currently building oil-process packages for Russia and the Middle East.

Investing heavily in technology, especially software technology, is a major priority and growth strategy for AMR. It’s also a way of keeping employment costs down. (Between IMC and AMR, there are roughly 50 employ-ees.) Project-management capabilities afforded by new integrated technologies are also essential for an aspiring global company. “People can log in and see progress and supply from a quality point of view; they can see live progress on fabrication,” Robbins says. “Our clients love that, and they talk about stuff like that. Approximately 50 percent of our business is return clients, and those are the kinds of things that encourage retention.”

Robbins says AMR hasn’t seen much in the way of a slowdown. 2009 was a record turnover for the company, and he attributes it to the company’s business plan of

“customer service with technology.” Also, he adds, “The advantage of having a growing company is that you can look at things other firms are doing and have done and see what works and what doesn’t. We listen to our clients and figure out a more productive way of collaborating.”

Robbins continues, saying, “Essentially, we’re doing business on a model that both the Eastern and Western worlds are looking at. There’s a huge amount of potential here. We’ve had so much success in such a short period of time.” EIQ

We possess various technologies that are fairly limited among companies around the world. Ninety-eight percent of our business is exports.

—Ashley Robbins, President

AMR PROCESS DEFINED

Services• Oil & gas process equipment • Licensed equipment designs & guarantees • Methanol-recovery units • Process-engineering services

Numbers• 15: Number of countries AMR exports to • 185: Average percent growth per year over the past five years• 700: Percent that the staff has increased since its founding• 2008/2009: Years in which AMR won Top Company for the Alberta Export Awards for Professional Services• 2009: Year in which AMR was nominated as finalist for the Alberta Business Awards of Distinction (Export category)• 2009: Year in which AMR won Employee Internship Small Business of the Year

exploration & development


Gunn OIL COMpAnYIndependent oil-and-gas-exploration company searches for new frontiers

by cristina adams

At A glANCE

location:wichita falls, tx founded:1976employees:38memberships:independent oil-and-gas exploration and production

there was a time when the state of texas was full of wildcatters; small oil companies or indepen-dent oilmen took their chances, followed their noses to the next big prospect, and drilled and drilled until they either came up dry or hit oil. The era of the wildcatter has been largely supplanted by the era of the oil behe-moths, as many of the independents have been sold to the Exxons and BPs of the world. But even as the mega-sized companies continue to merge and grow, there are still a few successful, independent holdouts like Gunn Oil Company.

Robert D. Gunn founded the company in 1976, but he has been in the oil business since the late 1940s when he moved to Wichita Falls as an employee of Texaco. By 1953, the Texas wildcatting spirit had caught up with him, and Gunn went out on his own to develop indepen-dent prospects. His new venture enjoyed steady growth

until 1969, when he made his biggest oil discovery on a 100,000-acre lease at the 6666 Ranch. At its peak, the field, which is still producing, pumped out 35,000 bar-rels per day; since its discovery, it has produced primary and secondary oil of nearly 128 million barrels.

Seven years later, Gunn—who is a past president of the American Association of Petroleum Geologists, and who has received its highest honor, the Signey Powers Memorial Award—incorporated his business as Gunn Oil Company. He had three employees (a secretary, a geologist assistant, and a bookkeeper) and contracted out all other services. Today, the company has 38 employees, nearly one-third of whom have worked there for more than 20 years. Employees come, flourish, and stay for the long haul, asserts Don Hupp, Gunn Oil president and CEO. “We have considerable expertise in drilling, operations, and waterflood installation, all of which are

Gunn Oil Company’s rig, drilling in its primary gas field in Wichita Falls, TX.



gunn oil company

enhanced by a sense of community and commitment to and from our staff,” says Hupp, who joined the company in 2004, and now runs the day-to-day business. “It’s a great place to work.”

It’s also a place where employees are allowed to invest in the company’s oil-and-gas prospects on a direct-cost basis. In addition, certain staff members have been able to buy stock in the company over the years, a perk you don’t always find at smaller independents. But Gunn Oil isn’t like most independents. For one thing, nearly all of its cur-rent oil-and-gas production is the result of its own wildcat discoveries. The company’s five on-staff geologists are constantly working on current developments and generat-ing new prospects. It also helps that Gunn Oil owns both a workover rig and a drilling rig capable of drilling a 15,000-foot well. “Being a wildcatting company, we’re always look-ing for new frontiers to explore,” Hupp says.

Despite owning a drilling rig and other well-service equipment, the company subcontracts most of its drilling services to Ringo Drilling Company, in which it has an equity ownership stake. Its main contractors feature some of the industry’s biggest names, such as Schlumberger and Halliburton. Despite Gunn Oil’s diverse and extensive offerings, the firm keeps only two consistent clients: Sunoco Inc., which buys most of its oil, and Enbridge Energy Partners, which buys its natural gas.

The majority of what Gunn Oil produces is discovered with-in its primary areas of operation in Texas; as Hupp admits, the geology of certain areas within the state has directed the company’s efforts and kept them focused there. Even so, it has participated in and continues to get involved in projects and discoveries in other oil-producing regions, such as the Texas Panhandle, and the Tucumcari Basin in New Mexico. Gunn is also involved in joint exploration efforts in Equato-rial Guinea and offshore Australia, and a more recent interest in a natural gas/carbon dioxide project in Colorado.

But Texas is—and likely will remain—home. “The state, its people, its political environment, its encouragement of risk-taking activities, and its dedicated and proud work-force have all played a significant role in the company’s deci-sion to remain headquartered in the state,” Hupp says.

Being a wildcatting company, we’re always looking for new frontiers to explore. —Don Hupp, President & CEO

Like many others in the oil business, the past couple of years were lean ones. As the price of both oil and gas dropped throughout 2009, drilling at Gunn Oil slowed dramatically; indeed, there was a six-month period in which the company drilled no wells at all. But because it had—and still has—no debt, Gunn Oil has come through the slow period in good shape. Now, with the price of oil on the upswing, Hupp says the company is embarking on an aggressive drilling campaign; it plans to drill up to 24 wells between February and December of 2010.

“We’re staying focused on growth and continued explora-tion success,” Hupp says. “We feel that reward is propor-tionate to risk, and we feel that we’re good enough to significantly reduce that risk.” EIQ

Robert D. Gunn, founder.


Express Energy Services (EES) is a diversifi ed oilfi eld service company serving oil and natural gas exploration and production companies from the Gulf Coast to the Rocky Mountains. EES began operations in October 2000 as an offshore rental support business to the coil tubing market. Today, EES offers approximately 20 different wellsite services to support its customers’ drilling, completion, work-over, and wellbore abandonment operations. EES differentiates itself through superior service, new equipment, strong fi eld relationships and its safety record, which qualify the company to serve the largest, most demanding oil and gas operators. Headquartered in Houston, Texas, EES has more than 1,200 employees and more than 30 service locations in Arkansas, Colorado, Louisiana, Oklahoma, Pennsylvania, Texas and the Gulf of Mexico.

PRODUCTION SERVICESWireline & Pipe Recovery ServicesCoil Tubing UnitsCranesDownhole MotorsH2S SafetyPressure TestingPump TrucksRental Equipment & Pit CleaningRig Based SnubbingVacuum Trucks & Frac TanksWell Testing

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3200 Southwest Freeway • Sui te 2000 • Houston, TX 77027Tel : (713) 625-7400 • Fax: (713) 625-7403

WWW.EESLP.COM


gunn oil company

MInARd Run OIL COMpAnYFamily-owned business expands into natural-gas production

by cristina adams

At A glANCE

location: bradford, pafounded:1875employees:68area of specialty:oil exploration, drilling, and production

fred fesenmyer never planned on going into the family business. In the 1960s, he left Pennsylva-nia to attend law school in Denver. In addition to prac-ticing law, he also pursued real-estate development and even founded his own stock-brokerage firm. Fesenmyer had successfully established himself miles away from the family oil business.

Then, in 1976, his father died unexpectedly, so at the request of his family, Fesenmyer went home to run the company. He believed that this move would be tempo-rary, just until the family was back on its feet. “I thought I’d be here for three years, get things straightened out, and then go back to Denver,” recalls Fesenmyer, who now serves as president and CEO. “Thirty-four years later, I’m still here, and I don’t regret it. You surround yourself with good people who really make a difference, and it’s tough to leave. After a while, you just don’t want to leave.”

That’s no surprise. It would likely be difficult for many people to walk away from a legacy like Minard Run Oil

Company, which was founded in 1875 as Emery Manu-facturing by Fesenmyer’s great-grandfather, Senator Lewis Emery, Jr. As Fesenmyer points out, it is the larg-est independent oil company in the United States still operating on the same properties and under the same family management since its founding. What’s more, three generations of family members still work at the company, including Fesenmyer’s three siblings (who sit on the board), two of his own children, and a grandson.

But being part of the family doesn’t guarantee anyone a cushy job. Fesenmyer insists on hard work and doing things by the book. “The single thing that has kept us in business for all these years is credibility,” he says. “We say what we do, and we do what we say. There are no shortcuts.”

And there are certainly no shortcuts in a business that is, at best, profitable but unpredictable. Drilling for and producing oil has always been an iffy business. If oil prices and production are both high, the industry flourishes. On the other hand, when oil prices drop and

minard run oil company

CORPORATE OFFICE:1000 Gamma Dr. Ste. 400 • Pittsburgh, PA 15238412-963-6443WEST VIRGINIA FIELD OFFICE:PO Box 4640 • Bridgeport, WV 26330304-566-7252KENTUCKY FIELD OFFICE:24442 KY Rt. 32 • Martha, KY 41159606-652-4600KENTUCKY PROCESSING PLANT:470 Lost Lick Branch Rd. • Martha, KY 41159606-652-4722

A leading independent developer ofoil and natural gas in North America

www.abartaoilandgas.com

wells run dry, people can lose their jobs. Fortunately, Minard Run is in the enviable position of drilling on and producing from its own property (all 15,000 acres of it), which allows it the luxury of being more immune to the industry’s ups and downs. As Fesenmyer points out, Minard Run doesn’t have to lease land or fiddle with the complicated structure of royalties.

In the past, the company had its own stable of drilling rigs, but decided to contract out the drilling portion in 1986. It makes much more sense to work with a drilling company, Fesenmyer says, since there have been times in the past when Minard Run did not partake in new-well drilling at all. That’s not the case these days. While the company is expanding its horizons by getting more involved in the exploration of oil production, it is also sticking to its bread and butter—that is, the drilling and production of crude oil and natural gas.

Once it has been drilled and pumped, the oil goes off to a nearby refinery, American Refinery Group. Interest-ingly, the refinery was founded in 1881, also by Lewis Emery, although it’s no longer owned by Fesenmyer’s family. Minard Run sells its oil to the refinery at a price named by the buyer. Considering the tight profit margin in place, Minard Run keeps American Refinery Group as its sole client.

Natural gas is a by-product of the oil-drilling process, so it is not a mainstay of the company. Nevertheless, Minard Run makes the gas pipeline quality by removing some of the hydrocarbons, and then sells the end result to regional utilities. The leftover distillates are sold much as a barrel of oil is sold.

With the discovery of the Marcellus Shale, a formation of natural gas reserves stretching from New York state to Virginia, Minard Run is looking at possibly expanding more seriously into natural-gas exploration and produc-tion; after all, the company has mineral rights to more than 15,000 acres in the Marcellus Shale itself. For now, Fesenmyer is considering all the possibilities, especially that of partnering with another company that can pro-vide the right equipment and financing.

One thing that isn’t likely to change, however, is family ownership of Minard Run. Years ago, Fesenmyer had an opportunity to sell the company for a tidy sum, but his mother, whose grandfather was the original founder, refused. “She said, in no uncertain terms, ‘This is our legacy,’” Fesenmyer recalls. “‘We need to protect it and continue with it.’” eiq

The single thing that has kept us in business for all these years is cred-ibility. We say what we do, and we do what we say. There are no shortcuts. —Fred Fesenmyer, President & CEO

Minard Run’s work involves the drilling and production of crude oil and natural gas, as well as oil exploration.



This oil-and-gas platform complex was designed by Excel Engi-neering and installed in the Gulf of Mexico.

ExCEL EnGInEERInG, InC.Incorporating a global view and employing a new strategy

by brigitte yuille

At A glANCE

location: houston, txfounded: 1992employees:60–100employee growth in past year:15%average annual sales:$11.3 million

the idea of becoming an entrepreneur came to Mostafa Jamal when he was attending engineering school. Once he graduated, he developed his skill and knowledge at three consulting-engineer companies. By the time he was at the third company, he held a multi-discipline managerial role—a position that required the process/mechanical, electrical/instrumentation, civil/structural, and design/drafting managers to reported to him, Jamal says. Then in 1992, he achieved the goal of owning his own business by starting Excel Engineering, Inc., in which three discipline managers from his previ-ous position joined him as part owners of the company, while Jamal serves as president and CEO.

Excel Engineering is a full-service engineering-consult-ing company that provides solutions from the prelimi-nary planning stages through final commissioning. Its services include engineering design, procurement, proj-ect management, construction management, start-up assistance, manuals, and studies. Its project experience is varied, and includes early production systems, produc-tion facilities, power plants, pipelines, and offshore platforms. Locations of these projects are also diverse,

having taken place in the United States, South America, Africa, Europe, the Middle East, and Asia.

During the height of the recession, the company rein-forced its competitive edge, remained profitable, and completed three major overseas projects in Tunisia, Iraq, and Indonesia, as well as one in the Gulf of Mexico. The oil-and-gas industry had taken a hit, and shallow-water projects were scarce, so the fight to win projects intensified. Most of its competitors had been small- to medium-sized engineering companies in Texas and Louisiana that provide design services in upstream oil-and-gas-related facilities. Excel determined that it was time to adopt a new strategy, so it widened its search for projects to overseas markets and to the shale-gas projects in the United States. “Shale-gas projects are important because many companies that invest in such projects do not have engineering capabilities, and Excel can help these companies execute the projects in a cost-effective manner,” Jamal explains.

Excel’s responsiveness and ability to execute fast-track projects has been a key factor that sets it apart from its


excel engineering, inc.

competition. “The company was built on a foundation of experience and integrity, and has enjoyed an internation-al reputation for delivering high-quality, innovative, and complete engineering solutions,” Jamal says, adding that despite the company’s impressive growth, the owners still have direct involvement.

Jamal believes this involvement by management ef-fectively conveys a commitment to the company’s values and to its employees. Its staff includes very experienced engineers and designers in all disciplines. They not only are encouraged to obtain their PE license, but Excel also pays employees’ annual license-renewal fees. Excel’s executives recognize employees who have made excep-tional contributions to the success of the company’s progress. “Employees who show potential for leadership are given opportunities to manage projects and assume greater responsibilities,” Jamal says.

In addition, the company’s “customers first” attitude has fueled its repeat business. “Our commitment to excel-lence, responsive service, and personalized attention is shared by everyone in the company, and it reflects in every phase of every project we handle,” Jamal says. Excel has also enjoyed honors such as being on the Houston Business Journal’s list of the top 25 engineering firms, and it has also enjoyed an excellent credit rating from Dun & Bradstreet. However, Jamal says, rankings and awards are

“secondary to the respect and confidence earned from its clients, which are the true measure of Excel’s success.”

The company has been focusing on its ongoing projects in the Gulf of Mexico, and providing services to some of its clients on the development planning of its overseas projects. Its future goals include implementing a quality-management program and getting ISO 9001 certifica-tion. Jamal believes this certification will increase the company’s value and will make it more competitive for larger projects overseas. Another goal, he shares, is hav-ing the company penetrate the shale-gas-projects market in order to increase its presence to companies investing in these types of projects.

Our commitment to excellence, responsive service, and personalized attention is shared by everyone in the company, and it reflects in every phase of every project we handle. —Mostafa Jamal, President & CEO

By building a successful multimillion-dollar engineer-ing-consulting business, Jamal has achieved his dream. He attributes his success to hard work, professional in-tegrity, and placing customers first. “This is the age-old formula employed by all successful companies that have lasted the test of time,” he says. “Any new business that follows this formula is bound to succeed.” eiq

THE VENEzuELA oFFSHorE FACILITy

One of Excel’s many overseas projects is the Venezuela Offshore Facility for Maxus/YPF. The project required three phases: facilities and pipelines, compression expansion, and facility expansion.

phase 1: Construction included onshore oil-and-gas-production fa-cilities and associated pipelines; engineering services included me-chanical, electrical, instrumentation, civil, structural, and pipeline. Production rates:• 72 MMSCFD• 26,000 BPD condensate• 50,000 BPD water

phase 2: Services included compression expansion, with multiple engineering services and high-pressure gas-injection equipment and flash-gas compression equipment. Production rates:

• 7.5 MMSCFD gas• 8,000 BPD condensate• 500 BPD water• Production rates (compression): • 60 MMSCFD high-pressure gas compression (5,000 psig)• 18 MMSCFD flash-gas compression

phase 3: Services included facility-expansion and engineering, and the design of foundations for seismic zone-4 conditions. Produc-tion rates:

• 220 MMSCFD gas• 28,000 BPD condensate and water• 275 MMSCFD gas dehydration

engineering

http://www.exceleng.com

Offshore

Pipelines

Engineering/Design

Project Management

Onshore

eE CEL EngineeringXexcellence in Engineering

Comco Petroleum Management Inc. is the leader in petroleum engineering and support in central Ontario. Comco also provides environmental services, including site assessments, contaminant remediation and emergency spill response.

Environmental Assessments | Emergency ResponseSite Cleanup and Remediation | Excavation and Removal

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www.comcopetro.com705-728-0905

Your Petroleum handling equipment specialists for the downstream market. • ULC tanks • ULC underground piping systems • Spill containment, over fill valves • Tank gauging and monitoring systems • Pumps • Filters • Dispensing equipment • Hoses • Lighting

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COMCO pETROLEuM MAnAGEMEnT InC.Ontario-based company grows to include petroleum engineering and environmental services

by cristina adams

At A glANCE

location: barrie and huntsville, onfounded:1964employees:23area of specialty:petroleum engineering and support, site assessments, containment remediation, and emergency spill response average annual revenue:$2.5 million

back in 1964, maurice keogh was a one-man, one-truck gas-pump-repair business in Barrie, Ontario. Retail gasoline stations would call him when a pump stalled or broke, and he would fix the problem. Then in 1989, Gord and Marg Thompson bought the company and, with a staff of eight, expanded its services to include maintenance and construction of retail stations and pri-vate fuel systems. “We implemented changes to move from service station work to environmental services for the downstream petroleum industry,” says Gord, president, whose professional background is in both chemical and environmental engineering.

Since then, Comco Petroleum Management Inc., which now boasts 23 employees and customers throughout Canada, has expanded to encompass a wide variety of services in petroleum engineering/support and environ-mental work. On the petroleum side, Comco designs and installs liquid-storage, handling, distribution-con-trol, and monitoring systems for diesel generators, fuel-oil boilers, vehicle fueling, and solvents. No strangers to working with temperamental gases and liquids, company engineers and technologists also design and install safety-monitoring systems for toxic gases, such as carbon mon-oxide, oxides of nitrogen, and flammable mixtures.

When it comes to environmental services and assess-ment, Comco offers a long list of skills and services—all phases, as Gord puts it. Phase I involves an assessment of the site in question, in which an experienced engineer conducts site visits and examines the property for evidence of en-vironmental issues, including anything from indications of stored chemicals to the possibility of buried fuel tankage.

Following that assessment, Comco will embark on Phase II. Using its own equipment, the company drills at the site to retrieve soil and water samples and assess them to determine whether or not the property needs reme-diation. In Phase III, company experts drill further at the site, assess their findings from Phase II, define the impact of those findings, and then decide how to pro-ceed. If an environmental hazard is found, Comco gets busy remediating and cleaning up the site, and follows up afterwards to ensure that everything has gone accord-ing to plan and the customer is satisfied. “Our success is driven first and foremost by our customer service,” Gord says. “We are always focused on the customer.”

Not surprisingly, Comco’s services have expanded be-yond environmental assessment to include 24-hour emer-gency response to petroleum spills, as well as spill clean-

Comco’s removal of contaminated soil is just one of its many services.


comco petroleum management inc.

up and remediation of sites that have been contaminated by liquid fuels. What’s interesting, though, is that none of Comco’s many services dominate the business. Indeed, Gord believes the company’s diversity of services and flexibility to deal skillfully in so many areas are its great-est strengths. “We stand out among the competition because we offer full-service investigation, design, and field work, with little or no need for outside support,” Gord says. “Those services—and our flexibility—have resulted in a steady volume of business and consistent growth over the years.”

That growth comes from a broad, primarily commer-cial customer base. Among the industries that Comco serves are transportation, municipal and provincial government, general contractors, consulting, insur-ance, and more. Indeed, its location in Ontario has been instrumental in shaping the company’s current business. According to Gord, as regulations have changed—and continue to adapt to a shifting political environment and public opinion—many companies have been forced to modify or update their liquid-fuel systems to comply with the changes. That ongoing activity has led to steady work for Comco.

One of the company’s most unique and challenging proj-ects involves recent work at the University of Ontario In-stitute of Technology in Oshawa: designing and install-ing an indoor fueling system for vehicles being tested in a state-of-the-art, severe-climate wind tunnel. The system consists of four underground tanks, pressure fuel piping, and vapor recovery, as well as a dispensing and metering system inside the wind-tunnel structure itself. Installa-tion featured full instrumentation, environmental pro-tection, and monitoring systems, including hazardous gas detection. It was a huge project that, as Gord puts it, incorporated virtually all of the expertise and services that Comco has to offer.

We stand out among the competition because we offer full-service investigation, design, and field work with little or no need for outside support. —gord thompson, President

As for what lies ahead, it’s likely that Gord will sell the company to a group of younger managers and executives within Comco who are eager to drive future growth.

“We have worked hard and don’t want to continue to put in the long hours,” Gord says. “But with the new, dy-namic team, the potential is there to grow the consulting part of the business, and to double or even triple revenue over the next five years.” eiq

a message from waleco

Waleco is a leading supplier of petroleum-handling equipment in Ontario. The leading product lines we represent, combined with our experience, knowledge, and a high level of customer care are the foundation to providing our customers with the best service and quality products, to deliver the right goods at the right time.

Comco performs a tank installation at a job site.

engineering


BASTIOn TEChnOLOGIES, InC.Applying aerospace innovations to the subsea oil-and-gas industry

by christopher cussat

At A glANCE

location: houston, txfounded: 1998employees:700area of specialty:mechanical and structural stress analysis for aerospace and subsea oil and gas average annual sales:$74 millionsales growth in past year:15%

although many companies have the innate potential to adapt to changing industries, it is rare to find a company that can easily and effectively transition into a new industry altogether. Yet that is exactly what Bas-tion Technologies, Inc. has been able to do. In fact, this historically aerospace-industry service provider is now quickly becoming one of the leading companies special-izing in the subsea oil-and-gas industry.

According to Bastion’s president, Jorge Hernandez, the company was established in 1998 predominantly as an aerospace company. “With a main focus of doing design and analysis for aerospace, probably about 95 percent of our core work and revenues are from this industry,” he says. Two of Bastion’s biggest clients are NASA and the US Department of Defense (DOD).

Bastion’s work with NASA mainly involves spaceflight hardware and structural-design analysis. Its DOD ser-vices include missile-systems work and missile-systems analysis, as well as missile-safety work and range-safety work. Bastion also specializes in the stability and modal analysis of the dynamic control of systems for remote-operation vehicles.

The company has recently been able to take its knowl-edge and the services it provides to the aerospace community and directly apply them to the oil-and-gas arena—mainly in subsea design and analysis work. “We segued into this other industry when we started seeing

a lot of back-and-forth between aerospace and subsea oil and gas in our business community,” Hernandez explains.

There is a definite connection between working in outer space and doing work in the ocean depths, Hernandez continues. “You’re dealing with similar situations in oil-and-gas subsea work, where you have very costly struc-tures that are in remote and caustic locations,” he explains. In addition, both of these extreme environments share common problems and concerns like oxygen impinge-ment and radiation issues. “We work with large structures that are miles down on the subsea floor,” Hernandez says.

“They are very difficult to get to and maintain; they must work reliably and properly once they are placed down there, and they need to function in a very hazardous and stressful environment. So one of our specialties is doing mechanical and structural stress-dynamic analysis for these structures.”

Because Bastion comes from another industry (aerospace), the company is able to successfully take a different tact and approach to providing services and solutions to the subsea oil-and-gas sector. Dana Kelley, PE, is the director of advanced design and analysis of Bastion’s oil-and-gas division. He explains, “We have experience dealing with all of the specialties that go into a space environment. So we’ve taken our expertise there and found ways to apply it to the oil-and-gas industry—particularly to the subsea arena, which also has to deal with environmental extremes.”

Bastion specializes in structural analysis for the energy and aero-space business sectors. Its expert engineers use a number of multiphysics-analysis software and techniques.

engineering

bastion technologies, inc.

DAS Certification (USA)6161 Savoy Dr, Suite 455Houston, TX 77036, USA

More than ten thousand certifications around the world.

DAS Certification Ltd is accredited by the United Kingdom Accreditation Service (UKAS) for Quality (ISO 9001),Environment (ISO 14001) and Information Security (ISO 27001).

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• Inspection Services• Collabration with Vincotte International for services in USA• Vincotte has 100+ years experience in Inspection field• All range of inspection services including CE marking and PED• Engineering Services

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EIQ DAS ISO.indd 1 2/26/10 3:22:30 PM

As a great benefit to its clients, Bastion can design, model, and support pretty much any type of system or structure that its sub-sea oil-and-gas customers need. “We’ll do a multiphysics analysis on the design and provide [clients with] feedback with which they can then make adjust-ments to the design before they move to the next step of the process,” Kelley explains. These can include structural, thermal, acoustical, and even optical analyses. “Anything that you could think of as being a physical quality of that system—we can provide an analysis of it and determine

We’ve taken our expertise [in the space environment] and found ways to apply it to the oil-and-gas industry, particularly to the sub-sea arena, which also has to deal with environmental extremes. —Dana Kelley, Director of Advanced Design & Analysis, Oil & gas Division

what it’s going to mean to the customer and to the operat-ing environment they’re dealing with,” Kelley notes.

Another new area that Bastion is infiltrating in the oil-and-gas industry is subsea robotics. “In a deep-ocean environment, you must account for the stability of the systems somewhat more, and you also have to deal with latency operational problems like operator fatigue,” Kel-ley says. Bastion is utilizing its aerospace technologies to stabilize subsea robotics and operational systems, in order to make them run more effectively and efficiently in that environment.

Hernandez believes that Bastion’s competitive advan-tage is its ability to bring fresh applications and new technologies to its customers. He admits that this is rarely an easy process. “Where the challenge occurs is in the acceptance of those new technologies and show-ing the customer that there is a positive return on their investment in that technology,” he says. “But we have been successful doing this with the companies we’ve worked with.”

Both Hernandez and Kelley note that Bastion’s success is a result of its people, the company’s higher-end engi-neering analysis, and the quality research and develop-ment services that it brings to its customers. “What really has also set us apart,” Hernandez concludes, “is years of developing and establishing new technologies for aerospace and now incorporating them into the subsea oil-and-gas industry.” eiq

a message from das certification

DAS Certification congratulates Bastion Technologies for its suc-cess and business growth, which it has achieved in a short time span. The company has been committed to its customers through continual improvement of its processes and system. The top man-agement and the employees of the company deserve appreciation for bringing the company to this standing. DAS Certification is proud to have Bastion Technologies as one of its ISO 9001:2008-certified clients. DAS Certification is a global registrar with more than ten thousand clients in multiple industries around the world. DAS has been providing excellent certification services to its cli-ents for quality, environmental, safety, and information-security management-system certifications.

engineering

energy international quarterly may/june 2010 31

infinite energy manufacturing, llc. specialty services

Renewable resources are all around us. The days of a fossil fueled economy are quickly giving way to the age of clean, renewable energy. As America unites to put these renewable natural resources to work for us, we’ll build a cleaner, more efficient economy... A brighter future for our country and for our world. helps put the pieces together by providing manufactured products designed for clean, green, renewable energy, traditional power generation, and pollution control.

Contact us today to find out how we are Defining the Curve of the energy industry. For more infomation, [email protected] or call toll-free at 877-901-5111.

www.InfiniteEnergyMfg.com

Defining The Curve

renewable energy power generation pollution control


InfInITE EnERGY MAnufACTuRInGProviding products for clean, green, renewable energy

by daniel casciato

At A glANCE

location: cleveland, ohfounded:2008employees:4area of specialty:fabricated and machined components, systems, and assemblies for the traditional and renewable-energy industries

while cleveland-based thermafab alloy inc., a 79-year-old sheet-metal shop, has been recognized for decades as a premier supplier of fabricated-alloy, steel, and stainless-steel products across the globe, it lacked a presence in the energy marketplace. In early 2009, it sought to change that and asked its chief operating of-ficer, Gil Sherman, to launch a new firm to create a dedi-cated energy presence to expand its manufacturing ca-pabilities into that arena in a very broad and deep format. Today, that company, Infinite Energy Manufacturing, produces fabricated and machined components, systems, and assemblies for the traditional and renewable-energy industries. “We’re trying to create a resource for the energy business,” Sherman says.

Its first initiative was securing a multimillion-dollar, multiyear contract to produce wind-turbine parts for Vestas, the world’s largest wind-turbine OEM, based in Denmark. Late in 2009, Vestas built its first US-based assembly facility in Brighton, Colorado. “We have a rath-er sizable contract with them for five years,” Sherman

says. “This gave us a great introduction to the renewable-energy market from a manufacturing perspective.”

A second initiative of Infinite Energy was the recent ac-quisition of Phoenix Airflow, which manufactures air-flow-monitoring elements and related control equipment. These elements are used on the front end of steam-pow-ered boilers, to monitor air into the system to optimize the burn. “If you look at those two initiatives, what they do is plant us firmly in the traditional-power-generation arena, as well as the renewable-power-generation arena, and feed into our overall strategy,” Sherman says.

The long-term strategy, according to Sherman, is to be-come the 800-pound gorilla in energy-related manufac-turing that supports the production and retrofit of plants, regardless of what style of power they generate. “It’s an industry that is highly fragmented,” he says. “It’s made of many small fabrication and machine shops. Our intent is to establish a presence among major engineering firms, power producers, and OEMS, and to grow our manufac-

One of Infinite Engery’s most important areas of work is creating components for wind turbines.

north american wind


infinite energy manufacturing

turing capacities according to their needs. As we ap-proach major OEMs, we can custom create the capacity that they need to produce whatever parts they want us to produce.”

The only way that can happen is to be entirely focused on its customers, and Sherman says that is at the essence of what the company does. “We’re looking at the abil-ity to add plants, equipment, and people, essentially as necessary to ramp up for our customers’ varietal needs, which will vary from year to year and project to project,” he says. “With the experience we have garnered serving major engineering firms, we certainly understand that there’ll be ebb and flow, but the reality is they need to be able to rely on their vendors for whatever, whenever.”

Going forward, the company’s greatest concern is the availability of funding for renewable-energy projects. From a macro-economic point of view, the wind-turbine OEMs won’t be ordering parts if they can’t sell wind turbines. They can’t sell turbines if the wind-farm manufacturers can’t fund their wind farms. “A lot of the doldrums in the wind-energy/renewable business in 2009 centered on that specific issue,” Sherman says. “So if the banks don’t start opening up their wallets, solar farms aren’t getting built, and OEMs aren’t going to be building units, and we won’t be building parts.”

Another concern for Sherman is that in the traditional-power-generation industry, there are certain obstacles when the EPA or environmental groups get up in arms over coal-fired or gas-fired power plants. “You have a certain percentage of projects that don’t go forward because of too many obstacles in their way, and it’s too much of a hassle for some companies,” Sherman states.

“However, these same forces play to our benefit on the pollution-control side, because the reality is that coal

and gas and other fossil fuels will be with us through our lifetime and beyond. There’s too much invested in that infrastructure. The need to continue to clean it up is going to persist, and we are going to have a very healthy pollution-control basis.”

Even though it is a very tough market right now, Sher-man anticipates that 2010 and 2011 will be strong for Infinite Energy. “We’ll also be looking for new sources of revenue and new ways to serve our customer base,” he says. “We plan to acquire engineering firms so we can provide an engineering component, and also want to acquire a construction firm so we can provide field services.“ eiq

If you look at those two initiatives, what they do is plant us firmly in the traditional-power-generation arena, as well as the renewable-power-generation arena, and feed into our overall strategy. —gil Sherman, CEO

Infinite Energy’s work reaches into the solar-power industry.

north american wind


infinite energy manufacturing

We believe the energy projects that are anticipated to take place in Texas over the next decade will provide us the opportun-ity for additional growth in that state, as well as in other locations in the South. —Steve Windingland, Senior Project Manager

westwood’s recent projects:

shebino: Shebino Mesa Phase 1 is a 150-mW wind-power-generating facility located in Pecos County, TX. Westwood provided ALTA surveying, civil engineering, and construction staking for BP Alternative Energy and Morten-son Construction. (Completed fall of 2008.)

penascal phase 2: Penascal is a multiphased wind-power-generating facility located south of Corpus Christi, TX. Westwood provided ALTA surveying, civil engineering, and construction staking for Iberdrola and Mortenson Con-struction, for varying phases of this project. (Completed fall of 2009.)

smoky hills (pictured): The project is a 250-mW wind-power-generating facility located in Lincoln County, KS. Westwood provided ALTA surveying, civil engineering, and construction staking for Tradewind Energy and Morten-son Construction for this project. (Completed fall of 2008.)


WESTWOOd pROfESSIOnAL SERVICES, InC.Providing full-service excellence for land and energy development


At A glANCE

location: eden prairie, mn founded:1972employees:115–165memberships:american wind energy association

westwood professional services, inc. began as a four-person engineering company in 1972 and has gradually grown into one of the premier land- and ener-gy-development companies in the United States. With a full range of in-house services—including surveying, aerial mapping, civil engineering, siting and land rights, planning, landscape architecture, transportation engi-neering, and construction management, among others—the company has developed solutions that address the needs of projects, from concept to completion.

Westwood expanded throughout the late 1970s and early 1980s by bringing on strategic hires and diversifying the services it offered. The company also saw success and growth throughout the 1990s, as its client base contin-ued to grow due to its new, cutting-edge technology, such as GPS equipment for surveying and computers with AutoCAD for the engineers.

Today, Westwood serves a long, diverse list of clients. In the land sector, the company supports land, retail, office, and industrial developers, as well as architects, attorneys, contractors, real-estate companies, banks, and HOA man-agement companies. For the energy sector, Westwood sup-ports wind and solar developers, transmission developers, transmission and distribution designers, pipeline developers, pipeline-design firms, energy contractors, utilities, attor-neys, oil-and-gas companies, and environmental consultants.

It is no surprise that with recent federal incentives to promote and develop renewable energy, the future of wind-energy resources is considered a major growth market—and Westwood is ready for it. In fact, 2008 was considered a boom year for wind energy, and 2010 is projected to be similar. “Based on what our clients are telling us, and the incentives for wind construction in the stimulus bill tied to 2010 construction, we believe that this is going to be another busy year—closer to what we saw in 2008,” explains senior project manager Steve Windingland, who works closely with energy developers on a regular basis. “In addition, there is a lot of attention being paid to utility-scale solar projects recently—we think that 2010 could be a breakout year for solar-farm development, too.”

Westwood is able to keep up with the projects thanks to its focus on technological innovation, which has always been an important part of the company’s suc-cess, says president Paul Greenhagen. “Innovation in survey data-collection technology, mobile computers, advanced handheld-GPS devices, and video technology have allowed us to be more efficient and effective col-lecting data in the field,” he explains. In addition, office advancements such as state-of-the-art design techniques and technologies, as well as utilizing the newest GIS and 3-D modeling applications, keep Westwood on the cut-ting edge of industry demands and requirements.

north american wind

staff, and continuing growth in market-share within the wind and transmission sectors.

To that end, Westwood is specifically making a concerted effort to expand its presence in Texas to better serve the numerous energy-industry projects taking place. For example, Westwood has clients involved in the CREZ transmission lines, wind farms, solar farms, and oil-and-gas wells throughout Texas. “We believe the energy projects that are anticipated to take place in Texas over the next decade will provide us the opportunity for ad-ditional growth in that state, as well as in other locations in the South,” Windingland says.

Finally, Greenhagen attributes Westwood’s longevity to its people and broad base of services. “Our people are what make our company successful—the expertise, hard work, dedication, and attention paid to our clients’ needs sepa-rate us from the rest. In addition, by being a full-service consulting firm, we understand our clients and their proj-ects better, because we have a full understanding of how specific tasks fit into the overall picture.” eiq

When asked how Westwood has remained competitive in the industry, Greenhagen sites three key factors: mul-tiple office locations, a multidisciplined approach, and a focus on client satisfaction. With offices spread across the country, Westwood is able to better serve its clients by improving response time to its projects and having local knowledge of site characteristics, permitting, and tech-nical challenges. The firm has in-house capabilities for almost all of the services that its energy clients require—ranging from siting and land rights, aerial mapping, per-mitting, surveying, civil engineering, and construction staking and support. Finally, Westwood’s number-one goal is achieving superior client service; in fact, most of the company’s work comes from repeat service, which is attained by always meeting or exceeding client expecta-tions in service, quality, and schedule.

For the future, Westwood plans to continue serving its clients well and to look for opportunities to expand, both in services and geographic locations. This includes direct-ing growth of its business in the southern “wind corridor” states, enhancing regional offices with multidisciplinary

Smoky Hills, a 250-mW wind-power-generating facility located in Lincoln County, KS.


ThE MIChIGAn InSTITuTE Of AVIATIOn And TEChnOLOGYProfessional trade school offers industry-driven training programs

by cristina adams

At A glANCE

location: belleville, mifounded: 1969employees:150 area of specialty:power technology, transportation dispatch, and aviation technology

every recession has a silver lining. in the case of the US economy’s decline, the upside has been an increase in enrollments at educational institutions across the country. Simply put: people who have either lost their jobs or are in imminent danger of being downsized are going back to school. And nowhere has that surge been more evident than at the Michigan Institute for Aviation and Technology (MIAT), where enrollment in 2009 was generously above average. “People who have been or might be laid off are pursuing development and re-careering options,” says MIAT president and owner Charles Hawes. “And 2010 looks like it’s going to be another busy year for us.”

Founded in 1969 as an aviation-technician school, MIAT has since grown both in size and reputation. At its two Michigan locations—the main campus in Belleville, and a satellite campus in New Boston—this privately owned professional trade school offers industry-driven training programs in power technology, aviation technology, and transportation dispatch to students who come from

across the United States. The most recent of these pro-grams is the Power Technology Institute (PTI), which opened its doors in 2006.

Over the years, MIAT administrators noted that a grow-ing number of graduates were being hired by companies in energy- and power-related industries. And those com-panies, in turn, found themselves increasingly in need of more qualified technicians, but there simply weren’t enough of them. Eventually, a group of companies asked MIAT to establish a program that would educate and train a pool of skilled, certified future employees, launching the concept for PTI.

“A group of employers said that if MIAT graduates could maintain aircraft, then they could maintain and repair energy and power equipment,” recalls Hawes, whose own professional experience ranges from a stint at Shell Oil Co. to more than 25 years’ involvement invarious higher-edu-cation positions. “This group asked us to create a program just for them, so with their support, we did.”

MIAT’s hands-on emphasis sets it apart from schools that only teach classroom theory.


Energy companies are the driving force behind the school’s success. —Charles Hawes, President & Owner

So far, the program has been a big success. More than 1,000 students are enrolled at MIAT, and attend classes six hours a day, five days a week. While enrollment may be up across MIAT’s programs, PTI boasts the longest waiting list. Indeed, 40 percent of MIAT’s students are enrolled in the PTI program; it seems that training for careers in power generation, power-plant operations, or wind power is the hottest ticket in town—and that the place to pursue that training is PTI.

PTI provides its students with what Hawes calls “the building blocks for basic technical knowledge,” which includes terminology, safety procedures, equipment, and tools. In PTI’s wind-power segment, for example, gen-eral training covers everything from OSHA regulations and procedures, tools and safety, and applied mathemat-ics to electricity, precision measuring, and lifting and rigging. The more advanced training focuses on hydrau-lics, gear and lubrication systems, wind-turbine opera-tion, climb and rescue, advanced electrical, and trouble-shooting skills. In other words, it’s not a crash course in how to use a hammer, wrench, and screwdriver—this is high-level training for work in a cutting-edge field. Once students have completed the program and find work, they also receive job- and company-specific train-ing from their employers. The education continues even after the coursework is over.

Equally interesting about MIAT’s unique approach is its close partnerships with potential employers. The insti-tute works with companies to identify their current and future needs, and to better understand the company cul-ture. Once a company profile is developed, MIAT staff can then pair employers and employees with the skill of a professional matchmaker. And that’s true across all of its programs. “We take our partnerships very seriously and assist with any hiring needs they share with us,” Hawes says. “And we assist with matching the right graduate to the right company.”

The group of employers with whom MIAT has partnered represents a broad cross-section of industries—wind, solar, nuclear-energy, and fossil-fuel power. Companies include General Electric Energy, Siemens Wind Ameri-cas, Florida Light & Power, DTE Energy, and Clipper Wind, to name a few. “Energy companies are the driving force behind the school’s success,” Hawes adds.

Great training, financial aid (nearly 80 percent of the student body receives some), and big-name employers all help to set MIAT apart from competing training schools. Hawes admits that while MIAT does have competition, rival schools are generally what he calls “new pop-up programs” that don’t always offer the breadth and depth of training that MIAT does.

“We have a long-standing reputation for developing in-depth, hands-on training programs driven by industry for technical careers,” Hawes says. “Many of the newer programs [at other schools] are only introductory, with very little hands-on training.” For reasons like these, the Michigan Institute of Aviation and Technology has become a premiere school for training the technical and energy leaders of tomorrow. eiq

MIAT’s instruction includes print reading, drafting fundamentals, and many more career-focused training courses.

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wherearethey.indd 1 2/19/10 10:58:13 AM


the michigan institute of aviation and technologyThe Elkhorn Ridge Wind Farm in Bloomfield, NE, which Carstensen Contracting erected and installed.

CARSTEnSEn COnTRACTInG, InC. Minnesota-based company expands services to include wind energy

At A glANCE

location: pipestone, mnemployees:50–70 area of specialty:wind energy, concrete paving, sewer and water, and municipal utilities

by brigitte yuille

ambition and old-fashioned hard work have skyrocketed Carstensen Contracting, Inc. toward success. It began more than 30 years ago, when Rick P. Carstensen started work in construction right out of high school. He soon found himself owning a portion of the company within two years. A couple of years later, he purchased the business, and by 1980, Carstensen had five employees, a few concrete forms, and various con-struction supplies. “We mainly poured concrete along with building a few smaller structures,” Carstensen says.

Six years later, the company started underground utility work, and by the end of the decade, it was doing public bids. One day in 2003, Carstensen received a career-changing call from Keith Thorstad. After a decade of friendly competition, “He asked if I would be interested in doing something together, and I immediately said yes,” Carstensen says. “Ever since then, we’ve been in partner-ship together.” Thorstad brought valuable and extensive knowledge of the construction industry to the company, as well as a new way of thinking.

The Pipestone, Minnesota-based business that started with five people in 1980 now has between 50 and 70 em-ployees. Today, the company specializes in concrete pav-ing, sewer and water services, municipal utilities, and

rural water services, and provides its expertise across the United States. Over the past nine years, it has even expanded its services to include wind energy, which has become the majority of the business.

“We were asked to provide gravel on one project, and when they found out we also pour concrete, they asked,

‘Would you be interested in pouring turbine founda-tions?’” Carstensen recalls. “With our background work-ing with cellular towers, we were able to apply our ex-perience in adapting the design for turbine foundations.” Next, Carstensen Consulting found itself accepting the opportunity to become an investor in its own wind farm, bringing the company additional success since 2004. “It just all seemed to fall into place, and everything seemed to fit,” Carstensen says.

The company sets itself apart from its competitors (such as heavy highway contractors and the general contractors it bids against) by placing a high emphasis on customer satisfaction, quality control, safety, and relationships with landowners involved with the projects. Says Carst-ensen, “We have worked with a wide variety of clients in both the public and private sectors. Most of our clients in the public bid are counties, states, cities, rural water districts, and the federal government. In the wind indus-


the michigan institute of aviation and technologyCarstensen Contracting’s installation of a

wind turbine in Spanish Fork, UT.

try, we work primarily with developers and owners of the wind farms, which includes everything from smaller developers to larger power-producing entities.”

This past year, the company has focused on streamlining processes and additional employee training. “We take safety very seriously,” Thorstad says. “To that end, our safety program includes comprehensive training, preven-tion, maintenance, careful analysis, and the empower-ment of individuals to provide a safe work environment for everyone, from employees and subcontractors to anyone on-site.” Carstensen adds, “In the 30-year com-pany history, we have never had somebody seriously hurt or in a life-threatening situation.”

Thorstad also believes that “during a recessionary econo-my, it is important to continue investing in training and helping employees become more effective in their roles,” he says. “It is also important to take the time to review and streamline processes. The more effective and ef-ficient we can make ourselves now, the better positioned we will be when the economy is back in full swing.”

I’m really proud of our employees. Our success is a direct result of their skills, hard work, dedication, and customer focus.

—Keith thorstad, Vice President

“We have the privilege of working with very knowl-edgeable and skilled employees who are able to quickly adapt and proactively anticipate and resolve potential challenges.” Carstensen says. “Their adapt-ability, attention to detail, and customer focus are key components that set Carstensen Contracting apart from the competitors.”

Thorstad describes the company environment as fam-ily oriented. “I’m really proud of our employees,” he says. “Our success is a direct result of their skills, hard work, dedication, and customer focus.”

Since the company’s start in concrete paving, general contracting, and underground and site preparation, the size and scope of its projects have swelled, and its repu-tation for quality and integrity has been maintained.

“Everybody has told me that I have had too much ambi-tion all these years,” Carstensen says. “ [They’re] won-dering why I got up at 4:30 in the morning and don’t quit until 10 p.m. Passion is the fuel that continues to drive us forward.” Carstensen says. eiq


the michigan institute of aviation and technology

Raymond James & associates, inc.

+

- by annie fischer

Top energy analysts suggests a conservative approach to stocks: bullish on oil, bearish on gas, and squeamish on renewables


the michigan institute of aviation and technology


raymond james & associates, inc.

RAyMOND JAMES & ASSOCIAtES At A glANCE

headquarters:st. petersburg, flfounded:1962financial advisors:5,300area of specialty:financial adivising

raymond james & associates, inc. (rj&a) fields one of the largest research organizations in the brokerage industry—among the top 15 of all US brokerage firms, ac-cording to Thomson Reuters. The company’s fundamental effort, backed by senior research analysts who possess, on average, 12 years of sell-side experience, is complemented by insight from well-known economic, strategic, and technical experts. Together, these specialists contribute to a wealth of deep and differentiated sector knowledge—one that hasn’t gone unnoticed. Last year alone, RJ&A’s equity-research analysts were recognized for their stock-picking abilities in three important national surveys: The Wall Street Journal’s “Best on the Street,” Forbes’ “Blue Chip Analyst,” and The Financial Times/Starmine’s S&P 500 and Russell 2000 survey. The Financial Times published Starmine’s survey of stock selection performance in 2008 for S&P 500 and Russell 2000 companies. RJ&A placed seventh among the 22 U.S. brokerage firms covering more than 125 S&P 500 companies and fourth among all bro-kerage firms covering the Russell 2000.

The Energy Group is the largest in RJ&A’s equity-research department, with nearly 160 companies under coverage in six core areas: coal, exploration and production (E&P), integrated majors and refiners, midstream suppliers, oil-field services, and alternative energy. The analysts offer an array of instructive industry reports that examine both overall energy markets and critical variables affecting each sector—including weekly and monthly updates, an annual brief that offers a recap of the previous year’s numbers, and forecasts of price averages and index values for the upcoming year. Energy stocks are poised for gains in 2010, but investors are understandably gun-shy with regard to young and newly emerging companies.

Traditional energy stocks generally trend in the same direction, regardless of the energy source—no revelation there, according to Cory Garcia, senior research associate. But RJ&A makes a careful distinction between two impor-

tant subsectors. “Our fundamental thesis on the energy space has been a tale of two commodities: bullish on oil, bearish on natural gas,” Garcia says.

He points to three important elements regarding the com-pany’s secular (long-term) bull-market position on oil: the erosion of the oil bubble, as measured by The Organization of the Petroleum Exporting Countries’ (OPEC) spare capacity; minimal prospects for non-OPEC production growth; and the continuous expansion of demand due to industrialization in emerging markets.

Similarly, RJ&A’s short-term position on oil prices is optimistic. The 2009 oil forecast was, according to the 2010 Energy Outlook, “unusually accurate”—at $60 per blue barrel, almost on the money with the actual aver-age of $58 per blue barrel. The analysts forecast $80 per blue barrel for 2010 and $95 per blue barrel for 2011, based partly on the following considerations: First, that oil demand should continue its recovery, led by the emerg-ing markets. Second, that non-OPEC production should decrease, due to accelerating decline rates and reduced capital spending by many companies—particularly given the depressed oil-price environment in the first half of 2009. And third, that the continuation of OPEC discipline should reduce bloated US inventories, even under the likely scenario of weakened quota compliance. “Obviously, these bullish factors must be weighed against the risk of a ‘double dip’ recession,” Garcia warns.

The company is more cautious when it comes to natural gas. Garcia cites the structural oversupply caused by the unlocking of the natural-gas shale plays as the primary driver behind RJ&A’s bear camp stance. And while the oversupply worsened considerably with the economic meltdown of 2009, the underlying causes of the glut go back years, according to the 2010 Energy Outlook brief. The combination of an increased high-grading supply, falling service costs, and improved drilling efficiencies

“ouR fundamental thesis on the eneRgy space has

been a tale of two commodities: bullish on oil,

beaRish on natuRal gas.” ——Cory Garcia, Senior Research Associate

features



Raymond James oilfield ReView 2007

2009 pRicing tRends of cRude oil stocks 2008

2009 pRicing tRends of natuRal-gas stocks 2009

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cRude-oil stocks:

RJ&a analysis based

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pRicing

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stock change2008 $6.50 -27.9%2009 $8.14 -9.6%

Analysts at Raymond James & Associates offer an array of instructive industry reports that examine both overall energy markets and critical variables affecting each sector—including weekly and monthly updates, an annual brief that offers a recap of the previous year’s num-bers, and forecasts of price averages and index values for the upcoming year.



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features

Raymond James coal ReView 2007

2009 pRicing tRends of coal 2008

based on ameRica’s ResouRces 2009

coal futuRes 1:

RJ&a analysis based

on centRal appalachian

coal futuRes contRacts

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stock change

2008 $62.50 -18.8%

2009 $55.50 -8.6%

coal futuRes 2:

RJ&a analysis based

on the pRices foR

coal fRom the powdeR

RiVeR basin

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stock change2008 $13.20 -31.3%2009 $11.75 -22.6%

Raymond James & Associates tracks pricing trends of American coal based on two sources. On the NYMEX futures market, coal contracts specify delivery at barge terminals on two limited sections of river located in Central Appalachia, near the confluence of the Big Sandy and the Ohio Rivers. The Powder River Basin is the single largest source of coal mined in the United States, and contains one of the largest deposits of coal in the world. Powder River Basin coal is sub-bituminous and contains an average of 8,500 btu/lb, with low SO2.



“Risks Remain high in alteRnatiVe eneRgy, Reflect-

ing the often bRutal competitiVe dynamics in young,

Rapidly eVolVing industRies. ——Cory Garcia, Senior Research Associate

has driven the marginal cost of gas production down sharply—from 30 to 50 percent over the past year, says Garcia—meaning we could be living in a gas-price envi-ronment of $5 per one thousand cubic feet. Furthermore, on top of core US supply, incremental liquefied-natural-gas (LNG) supply could hit shores this summer, while the modest up tick in industrial-gas demand is likely to be offset by increased gas-to-coal fuel switching. The message for anyone harboring hope that domestic gas prices will revert to a parity of 6:1, relative to oil at any time in the foreseeable future, according to the brief: “[A]ll we can say is, ‘fuhgeddaboutdit.’”

Bottom line: the company continues to reason that all energy subsectors are set to outperform the broader mar-

kets in years to come—but it’s also the broader market in the driver’s seat, more so even than commodity prices themselves. (In 2009, coal—the big winner—demon-strated a 90-percent gain; this was followed by MLP, oil service, E&P, and alternative-energy indices, which rose 62 percent, 61 percent, 44 percent, and 29 percent, re-spectively.) However, says Garcia, that split position on oil and gas eventually will underscore the “significance of selectivity” within those subsectors. For example, within E&P and oilservice, RJ&A favors the oil-weighted compa-nies over their gas-weighted counterparts. Similarly, the company warms to the upstream-oriented offerings rather than refining-oriented. For investors playing it safest, Gar-cia suggests conservative investments in the majors—tra-ditionally lower-risk, lower-beta names. “Let’s face it,” he says. “XOM will outperform a growthy E&P name when commodity prices collapse, as we saw in late 2008.”

Chancier options, though—such as alternative energy sources—are among the most talked about these days. Hydroelectric, wind, and solar power, along with alterna-tive fuels, gain increasing amounts of attention each year, thanks in part to steadily improving economics, greater scalability, and high levels of governmental support. To reflect that, RJ&A projected gains of 15–25 percent for the ECO Index in 2010. Generally speaking, though, the company cautions against pie eyes when going green. “Risks remain high, reflecting the often brutal, competi-tive dynamics in young, rapidly evolving industries,” Garcia says.

What are those risks specifically? Garcia explains that al-ternative energy competes directly with conventional en-ergy sources (the most important of which are crude oil, natural gas, and coal), and one hears less grumbling from consumers when they’re paying less than $3 per gallon at the pump. “Declines in the price of conventional energy can make alternative energy less competitive, and in some cases make it economically unviable,” Garcia cautions. “Furthermore, consumers are less likely to view alterna-tive energy as a practical option if conventional energy is

features


raymond james & associates, inc.features

Raymond James pRice estimates bloombeRg

foR oil and gas nymex futuRes

as of decembeR 2009 Raymond James

Raymond James & Associates’ short-term position on oil prices is optimistic, according to its 2010 Energy Outlook brief, based partly on the consideration that oil demand should continue its recovery. For anyone harboring hope that domestic gas prices will revert to a parity of 6:1 relative to oil at any time in the foreseeable future, according to the brief: “[A]ll we can say is, ‘fuhgeddaboutdit.’”

2010 Q

1

Q2

Q3

Q4

2011 Q

1

Q2

Q3

Q4

$7.00

$6.00

$5.00

$4.00

$3.00

$2.00

2010 Q

1

Q2

Q3

Q4

2011 Q

1

Q2

Q3

Q4

$100.00

$95.00

$90.00

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$80.00

$75.00

$70.00

$65.00

oil pRice estimates:

RJ&a analysis

natuRal-gas

pRice estimates:

RJ&a analysis



relatively more attractive from an economic standpoint. This holds true from an equities perspective, as well.”

Not all types of alternative energy will make it off the laboratory floor, so selectivity is even more crucial, and one can’t ignore the tightening of the funding environ-ment since the market meltdown. “There is no guarantee that future technological developments will be favorable to alternative energy,” he says. “In fact, some developments could render some types of alternative energy unattractive or obsolete.”

There are also public policy and regulatory risks to con-sider. “Many types of alternative energy currently benefit from favorable government policies, including tax incen-tives for producers and/or consumers, direct and indirect subsidies, and mandatory use requirements,” Garcia says. “These policies are subject to change and may become less favorable in the future. Government regulations, including environmental and land-use regulations, can impact the profitability of alternative energy.” Take, for example, the solar space, where demand trends have seen sharp volatil-ity over the past year and a half, stemming in part from policy decisions out of two of the largest markets—Spain and Germany.

That said, it’s not all bad news. Within the alternative-energy space, RJ&A tends to favor wind plays over solar manufacturers, according to Garcia—by virtue of the fact that wind is at grid parity today, and thus not necessarily a subsidy-driven market, providing a more sustainable growth curve for wind power. Favorite names include American Superconductor and A-Power Energy in wind; Clean Energy Fuels in natural-gas fuels; EnerNOC in de-mand response; and First Solar, Trina Solar, and GT Solar.

Buzz surrounding topical trends in the energy sector—like the renewables mentioned above—will almost certainly simmer if the math doesn’t add up. RJ&A tackles issues like these, among others, in a series of short analyst com-

mentary podcasts called “Professionally Speaking,” hosted by Larry Pugliese. One of the recent installments came on the heels of two bills passed last year by the House of Representatives and one by the Senate, regarding vehicle research on natural gas—plentiful, cheap, and cleaner than gasoline and diesel, making it an attractive fuel op-tion. When analyst Pavel Molchanov breaks down the numbers, he points out that at the moment, approximately 100,000 US vehicles out of a total of 200 million run on it—just one half of one percent. “Even if this market were to grow by 50 percent a year over the next decade, natural gas would be fueling only 3 percent of vehicles by 2020,” he says. That doesn’t mean we should ignore it—just that the individual consumer is probably the wrong focus. “It would be easier instead to sell to commercial and munici-pal fleets of buses and trucks that fuel up at a central sta-tion,” Molchanov explains.

Another edition, featuring an interview with RJ&A direc-tor of energy research Marshall Adkins, touches on the effects government mandates can have on supply and de-mand. While additional energy sources—wind, solar, and natural gas, for example—could displace a lot of the oil used in energy generation, freeing up more oil for trans-portation, market perception of a supply tightening will take prices higher. “Gasoline at six-to-eight dollars a gallon would be a crisis for many consumers,” Adkins says.

The message seems to be a largely conservative one, for the time being, anyway; RJ&A’s energy analysts look to 2010 to be a lucrative but tough trading year. If you want to leave the market-trend research to the professionals, and it’s just a name you’re after, the company also offers an annual list highlighting individual stocks expected to produce superior overall results in the year ahead. Of this year’s 13 “Best Picks,” 4 were energy companies: Alpha Natural Resources, Chevron Corp., Concho Resources, and National Oilwell Varco. As always, though, one impor-tant caveat: Past performance is not indicative of future results. There’s no such thing as a sure bet. EIQ

features

“declines in the pRice of conVentional eneRgy

can make alteRnatiVe eneRgy less competitiVe

and, in some cases, make it economically unViable.” —Cory Garcia, Senior Research Associate



solarcityA strategic partnership between utility companies and solar providers may be the future of the renewable-energy industry

for years, larry stein felt a sense of guilt about the ways in which his lifestyle may have contributed to global warming. Stein works as a marketing consultant in Cupertino, California, and like many eco-conscious citi-zens, he hoped for a way to decrease his carbon footprint without making drastic changes to his everyday life. An increasing number of his fellow Californians seemed to be installing solar panels on their homes, and he eventually began re-searching the logistics of such an undertaking: How reliable is solar as an energy source? Who are the best solar providers in his region? What are the costs? What are the benefits? “I also had to mentally get used to the idea,” he says. “You know: ‘What does it mean to install this power-generating asset on my home?’ It’s a significant change.”

In October 2008, Stein signed a 15-year agreement with SolarCity, a Foster City-based solar provider. Instead of purchasing the solar panels, he leased them. “I’d never leased anything in my life, and I generally lean against the concept of leases,” he says, “but SolarCity wrapped everything together. They designed and installed the panels, they maintain them, and they guarantee them. There was zero cash output up front, and I save money on my energy bills. Frankly, it was kind of a no-brainer.” Stein is not the only one who has come to this conclusion. Based on its current books, SolarCity—with 4,500 customers and counting—is projecting that its revenue will grow 250 percent by the end of 2010.

SolarCity is in fact the third company founded by president Lyndon Rive. In his teens, Rive ran a cosmetics-distributing company in his native South Africa. In 2007, he sold Everdream, his software-service company, to Dell. In some ways, Rive fits the mold of the adventurous, risk-taking foreign capitalist making waves in the United States; and yet SolarCity’s business plan was, from its beginnings, remarkably straightforward. It was the consequence of forward-thinking entre-preneurial assessments of potential opportunity.

“My brother and I knew we wanted to get into the renewable space, that we want-ed to start a business that could address environmental problems,” Rive says. They evaluated a variety of alternative-energy sources and saw potential on the service side of solar power. “We talked to so many people about their experiences trying to power their homes with solar, and across the board they were negative,” Rive explains. “What we saw was that there was an opportunity to make the process easier, to remove the barriers to adoption.”

by david hudnall

solarcity

The largest barrier for any consumer is, far and away, the initial cost of installing a solar-energy system, which is around $15,000 or more for a residential installation. Rive broke into the energy market with the innovative concept of a leasing program that would bypass that large initial investment. Homeowners pay SolarCity a monthly fee for both a 15-year lease on the installed solar system and the home’s electricity use. SolarCity owns, installs, and maintains the solar system on each customer’s home, making SolarCity eligible for any tax credits or fi-nancial incentives that would normally go to the consumer.

As soon as this business plan took form, Rive quickly assembled a design and installation team experienced in solar applications, and SolarCity opened its doors in 2006. “Most solar companies will do design and installation, but not monitoring or financing. We don’t outsource anything,” Rive says. “With us, there is no middleman, and we take responsibility for everything.” To cover operating costs and compete with local utility companies, SolarCity’s lease rates must increase each year, but at a lower rate than competing energy providers. “We look at the historical average rates of the local energy providers and make sure ours are substantially lower than the histor-ic rates,” Rive says. “In California, we increase 3.9 percent annually. In Oregon, it’s 2 percent.”

To finance its SolarLeases in the past, SolarCity has cut deals with US Bankcorp and the National Bank of Arizona. US Bankcorp, for instance, essentially bought tax benefits from SolarCity, which didn’t have enough taxable income to use those credits on its own.

What we saw was that there was an opportunity to make the solar process easier, to remove the barriers to adoption. — lyndon Rive, Founder

SolarCity offers both buying and leasing options for homeowners looking to utilize solar power. Photo: SolarCity. features



US Bankcorp, acting as a tax-equity investor, was able to use those tax credits as part of a strategy to shelter otherwise taxable income. SolarCity’s income from the bank’s original $100 million invest-ment allowed it to install residential and commercial solar systems with little-to-no up-front cost to the consumer. Unfortunately, like the rest of the solar industry, SolarCity began to struggle when tax-equity investors pulled back as banks changed their tax strategies to cope with the credit crisis.

In its most recent strategic move, SolarCity reached an agreement with Pacific Gas & Electric (PG&E), a California utility that ranks among the largest in the United States. The deal, which is the first of its kind between a utility holding company and a solar-power provider, puts PG&E in a position ordinarily played by banks—as the actual source of the project’s financing. Pacific Venture Capital, a PG&E subsidiary, will provide $60 million to finance SolarCity’s installation of more than 1,000 small-scale solar-energy systems; it receives an undisclosed cut of the revenues from SolarCity’s leasing agreements, plus all federal-investment tax credits from the project. (For competitive reasons, SolarCity declined to provide details about the structure of its financing deals.)

A notable by-product of the deal is that PG&E also gains an inside understanding of the solar-energy business. “It’s strategic for them; they’re not just a financing partner,” Rive says. “The PG&E deal sets an example that utilities can look at solar companies as a business oppor-tunity, instead of being at odds with each other. If we want to see the industry expand, we need the solar-power providers and utility compa-nies to work together, and [the PG&E deal] is one way.”

Larry Steinin October 2008, Stein signed a 15-year lease agreement with SolarCity to install a system of solar panels on his Cali-fornia residence. “SolarCity wrapped everything together,” Stein says. “they designed and installed the panels, they maintain them, and they guarantee them. there was zero cash output up front, and i save money on my energy bills. Frankly, it was kind of a no-brainer.” to date, Stein’s solar system has produced 1352 kWh more than the annual energy output of 4,989 kWh that was estimated by SolarCity for his solar-energy system.

A home equipped with SolarCity’s solar panels. Photo: SolarCity.


solarcity

SaLLy CarrOLLas soon as Sally Carroll signed a lease agreement with Solar-City in July 2008, she saw an immediate impact on her home energy costs. “Our PG&e bill for June 2008 was $228 for 1240 kWh, with an average utility bill from December 2007-June 2008 of $150,” Carroll says. after the solar panels were installed on her Fresno, California, residence, she says the cost savings were immediately evident. “My June 2009 energy charges for PG&e were $88 for 563 kWh billed, so even with the $111 lease, my energy costs were only $199 per month.” Last year, Carroll’s system produced 1089 kWh more than predicted by SolarCity at the time of installation.

EIQ sat down with SolarCity customer Sally Carroll to find out more about the real-world application of SolarCity’s unique business model and the benefits of residential solar power.

EIQ: What are the terms of your lease? Sally Carroll: Our system is rated to produce 3.5 kW at our orientation. nothing down, no startup fees. We paid $111.24 per month to start, and the second year it increased to $116.19. it will go up a few dollars each year to about $155 by the fifteenth year, and we can buy out at 6 years, 10 years or 15 years. at 15 years, we can re-up, buy out, or have the equipment removed. Buyout at 15 years is about $15,000.

EIQ: How large is your home?SC: 2,029 square feet, single-story, plus a three-car garage. We selected our lot with solar in mind, so we have an unobstructed southern exposure.

EIQ: How much are you saving?SC: Overall, i estimate our total utility costs will about break even for these first few years, but our savings will improve as PG&e rates go up. We are locked in to PG&e’s lowest rate at peak hours: about 12¢ in winter and 18¢ in summer. Our solar output in 2009 was 7219 kWh, and SolarCity has our hourly output on our own Web page.

EIQ: is the system intrusive in any way?SC: the panels are quite visible on our exposed street side, but we wear them with pride.

One challenge of growing the solar market comes from moving into new regions where solar power may be foreign to local utilities or municipalities. Getting tangled in local bureaucracies can quickly disrupt even the best-laid plans. “Our biggest issue tends to be with city building departments,” Rive says. “Lots of times, they won’t be familiar with solar, and they’ll struggle with issuing permits. There’s a large learning curve for this, because it’s new and very different than what people are used to.

“With the local utilities, some are very solar-friendly and encourage you to come, and they process your applications promptly,” he continues. “Others can make your life difficult and delay applications. They view it as something they have to do but don’t want to do. But more and more that’s the aberration. People are warming to solar these past few years.”

2010 2015 2020 2025

old electric

bill

solAr leAse

pAyment

neW electric

bill

$200

$150

$100

$50

$0

Save $6,639 over 15 yearsSavings grow as utility rates increase over time

Save $204 (or more) annuallySolarLease monthly payment of $111 saves $17 monthly

features


solarcity

Currently, SolarCity’s customers include thousands of ho-meowners, more than 75 schools and universities, govern-ment agencies, and corporate clients like Intel, eBay, and British Motors. With its commercial clients, it negotiates power-purchase agreements, where payments vary month to month (more in summer, less in winter). Commercial business is on the upswing. In the company’s earlier days, residential work comprised 80 percent of projects; today, Rive says commercial business is more than half of Solar-City’s work. “We like a healthy mix,” he says.

The argument against SolarCity’s lease methods is that as green awareness grows and price competition drives the solar market, it will become much cheaper to purchase solar panels. And with a 15-year lease, a customer is locked in for a significant period of time, during which SolarCity would be reaping the bulk of the financial rewards through tax incentives. Rive counters this argument by noting that SolarCity also offers solar systems for purchase. “It’s purely a decision for homeowners,” he says. “If you have the capital available, buy the system—it’s a great investment. But if you don’t, then lease it. We offer both, and we’re neutral about it. We’re not pushing customers one way or the oth-er. We just don’t want them to wait around and do nothing. Doing nothing doesn’t help the customer, and it doesn’t help the environment.”

Larry Stein—who owns a 2,400-square-foot, L-shaped ranch—remains satisfied with his decision to go with Solar-City; he says he saves roughly $110 a month. “They installed the panels on the side and back of my house,” he says. “I rarely think about the system, or notice it in any way. It’s a totally painless way of helping the environment, and you save money.” eiq

the pG&e deal sets an example that utilities can look at solar companies as a business opportunity, instead of being at odds with each other. if we want to see the industry expand, we need the solar-power providers and utility companies to work together, and [the pG&e deal] is one way. —lyndon Rive, Founder

A residence in Kensington, CA, takes advantage of Solar-City’s energy-conscious solutions. Photo: SolarCity.

features

S2W Contracting LLCwww.s2wcontracting.com

We offer the following services:Millwright services• Alignment and leveling• Gas compressor inspection• Maintenance and repair services• Small construction and grout services• Specializing in large Ariel packages • KBB and KBV frames.

We take care of your machinery needs with our experienced, knowledgeable and honest personnel.

We’re also a member of ISNetworld.

1700 FM 407Justin, TX 76247

Tel: (940) 745-1421Field: (817) 456 [email protected]


s2w contracting llc

S2W COnTRACTInG LLCtexas company finds specialization and success in the maintenance of natural-gas compressors

by cristina adams

At A glANCE

location: justin, txfounded: 2007employees:11area of specialty:commissioning and maintenance of reciprocating natural-gas compressors2009 revenue:$300,000

three years ago, emmery withee left the relative safety of a full-time job to go independent. The former compressor mechanic had worked in the field for several years, so finding work wasn’t too difficult. For the first year, some of his former customers hired him for roustabout jobs, and that was enough to pay the bills. Then in 2008, a former employer, Toromont Energy Sys-tems (now knows as Enerflex Energy Systems) contacted him about compressor mechanical work two projects for Enterprise Product Partners, both of which were located close to his home base of Justin, Texas. At that point, with steady work under his belt, Withee was in a financial position to really give his own business some direction and attention.

“I knew there were certain aspects that I wouldn’t be good at, like paperwork,” he recalls. “So I talked a friend of mine into taking care of the administrative side of things for the business in exchange for a partner-

ship and 10 percent ownership.” And that’s how S2W Contracting LLC was launched—in the early stages of a recession in an uncertain market. But that didn’t stop Withee, and it certainly hasn’t stopped the company from achieving success, nearly doubling its annual rev-enues every year since opening for business. As Withee points out, there were a few slow months in 2009, as the recession hit high gear, but the company finished on a very strong note—and 2010 looks to be even busier and more profitable. “Our clients like us because we’re smaller and more flexible than other companies in our industry,” Withee says. “And they know that when they hire S2W Contracting, they’re dealing with the owner of the company. Most likely I’ll be running the crew in the field.”

S2W Contracting modestly bills itself as a “small, flex-ible millwright and mechanical field-service company,” but the company is much more than that. In addition to

S2W assembled an electric drive package and Ariel KBV compressors for this project in Decatur, TX.


s2w contracting llc

Oftentimes, things go wrong on jobs, and people spend exhaustive amounts of time trying to fix the blame on something or someone. We have a ‘fix the problem’ mindset. —Emmery Withee, Owner

offering millwright services, leveling, and alignment, it specializes in commissioning, assembling, and maintain-ing reciprocating natural-gas compressors. These unique compressors work in much the same way as a car engine, using pistons driven by a crankshaft to move gas. As the crankshaft spins, the piston moves back and forth in the cylinder—a motion that then draws gas in from the suc-tion side and sends it out at a higher pressure, but lower volume, through the discharge side. S2W works not only on standard-issue compressors but also specifically on Ariel KBB and KBV compressors, which are generally paired with certain types of Caterpillar engines and other large electric engines.

It’s no surprise that Withee himself is a hands-on kind of guy. With only 11 full-time employees, he runs a lean, tight ship and encourages those who work for him to take on every job with a can-do attitude. Those who don’t can, as he puts it, look for alternative employment. This kind of no-nonsense, straightforward approach works well in an industry that has seen many booms and busts over the decades. It has also proven to be a winning approach for his company, which already boasts a raft of projects across the southern and southeastern United States, and is expanding out to the West Coast and into the Mid-Atlantic to work in the vast Marcellus Shale natural-gas deposit.

S2W has a very particular type of expertise, and it hap-pened to be exactly what Midcontinent Express Pipeline LLC was looking for when it contracted S2W to work on

its pipeline. The Midcontinent Express pipeline (MEP) is an extensive 500-mile natural-pipeline system that stretches from Oklahoma into Louisiana, and connects with other major pipeline systems along the way. Even more interesting for S2W is MEP’s four main compres-sor stations that have Caterpillar engines and Ariel KBB compressor packages. S2W Contracting has done all of the millwright and assembly work at these stations.

It was a big job, but Withee and his crew were up to the challenge. They had the necessary experience and skills, but they also do good work—plain, old-fashioned hard work, as Withee puts it. Moreover, if there’s a prob-lem—and there are always problems on projects of this size—the S2W Contracting crew will find a way to solve it. “Oftentimes, when things go wrong on jobs, people spend exhaustive amounts of time trying to fix the blame on something or someone,” Withee says. “We have a ‘fix the problem’ mindset.” That’s just one of the aspects of S2W that makes it so attractive to potential clients—and has all but ensured its continued success. eiq

rECIProCATING NATurAL-GAS COMPRESSOR SERVICES:

• Millwright service, leveling, and alignment• Service and inspection• Routine maintenance• Commissioning• Ariel KBB and KBV compressors, as well as many smaller compressor units

S2W hangs KBB compressor cyclinders during assembly in Vicksburg, MS.

custom products


MAp OIL TOOLSProducing the best-quality designs in the downhole-drilling industry

by cristina adams

At A glANCE

location: new iberia, la founded: 1989employees:49area of specialty:manufacture and distribution of standard-service downhole tools for the sweet-oil and natural-gas industries

protecting the environment—whether it’s the deepwater Gulf of Mexico, a mesquite-sprinkled West Texas landscape, or a patch of Louisiana marsh-land—from oil-well spills and leakage ranks high on the to-do lists of most companies in the energy industry. Spills and leaks are bad for nature and for business. Map Oil Tools creates safeguards that are specifically de-signed to keep such scenarios from ever happening.

This New Iberia, Louisiana-based business manufactures and distributes standard-service downhole tools for the sweet-oil and natural-gas industries. The tools prevent annular communication within the surface; in other words, they stop oil from leaking or blowing out of the wellhead and into the environment. The company also makes specialty tools, namely the JS line of storm pack-ers, that are used during emergency offshore evacuations that occur during violent storms or hurricanes. “Utiliz-ing those tools allows the drillers to urgently shut in and abandon the drilling operation, and evacuate the rig without leaving a dangerous, unprotected well behind,” says company president Glen Holcomb. “That’s why quality drives everything we do.”

Map Oil Tools works closely with its customers—most of which are well-service companies that design tool strings and operate the tools at the wellhead—to devel-op safe, reliable tools. The JS line, for example, sprang up from a series of tool-failure problems in perforating operations in the Gulf. A customer needed a particular kind of tool to prevent the recurring failures, so Map Oil Tools designed and built it. “Most of the tools we produce today have, in some form, come directly from customer needs and creative concepts,” Holcomb says.

It’s that commitment to quality that has propelled Map Oil Tools to a leadership position in the oil-and-gas industry. Founded in 1989 as the completion-products division of SERVAgroup, a global manufacturing and distribution network for oilfield equipment, the com-pany quickly made a name for itself domestically and internationally. It invests in the research, development, and testing of new tool designs, and recently formed a unique joint venture with Chinese company SJS Ltd. In 2004, Holcomb, then president of Map Oil Tools under the SERVAgroup umbrella, purchased the company, took it independent, and transplanted operations from

Standard-service downhole tools ready for shipment.

custom products

map oil tools

Manufacturer of springs, wire forms and metal stampings since 1971.

SPRING CO. INC.

Specializing in compression, extension, and torsion springs as well as wire forms with wire sizes ranging from

.003 through .500 and metal stampings with a thickness ranging from .004 through .375.

P.O. Box 503073003 East Apache

Tulsa, OK 74150-0307

Phone: (918) 836-9000Fax: (918) 836-9062

www.actionspringco.com

Springs and Things for Industry

Wichita Falls, Texas, to its current headquarters in Louisiana, in order to be closer to its major customers in the Gulf of Mexico.

That relocation helped shape the company’s business in a variety of ways. The region is, for instance, the primary service point for Gulf of Mexico exploration and drilling; domestic and international well-service providers alike send their top people there to work and learn in some of the toughest conditions in the industry. Moreover, Holcomb says, the Gulf of Mexico is known for being on the cutting edge of deepwater-tool and

-equipment development, and for sophisticated comple-tions operations. “This is the toughest market in the world,” he says. “If our products can perform in this market, they can perform anywhere.”

Since moving to Louisiana, Map Oil Tools has grown at a breakneck pace—about 40 percent annually—although Holcomb admits that things flattened a little in 2009 as the recession swung into high gear. Even so, Map Oil Tools has not been dramatically affected. It was, Hol-comb says, fairly easy to see economic uncertainty loom-ing on the horizon, and the company responded in 2007 and 2008 by expanding its sales and marketing efforts, and by adding new clients to its roster, in advance of the meltdown. “Since we are a small company with pretty tight controls of our day-to-day operations, we know our capacity to produce and simply must adjust our sales to match that capacity,” Holcomb says.

That ability to run tight and lean has given Map Oil Tools an advantage over its larger rivals—an advantage that has become absolutely clear this year, as growth has once again kicked in, albeit at a more controlled clip. As Holcomb points out, even management has been surprised by the company’s rapid increase in sales in 2010, for which he credits its previous efforts to expand its marketing and client base.

Looking beyond 2010, the company is already investing in new ideas and materials, and is testing and developing new products. Plastics and composites may soon replace metals and synthetic rubber to make its tools lighter, safer,

and more durable. Also on the board are potential new joint ventures and collaborations—efforts that Holcomb says makes the company so strong, nimble, and success-ful. “The industry wants to drill deeper and faster, with safety as the primary concern,” he says. “Whether it is in the deep waters of the Gulf of Mexico or a shale-gas well in Canada, zero failure is the demand of the industry.” And zero failure is exactly what Map Oil Tools intends to deliver. “In our line of work, failure is unacceptable. The safety of the people, the environment, and the equipment on or near the site requires that we produce high-quality, zero-defect products.” eiq

This is the toughest market in the world. If our products can perform in this market, they can perform anywhere. —glen Holcomb, President

custom products


GMG EnERGY SOLuTIOnS InC.State-of-the-art equipment from the heart of Alberta’s oil-and-gas industry

by daniel casciato

At A glANCE

location: nisku, abfounded: 2006employees:13area of specialty:drilling, process, trucking, and specialty equipment for the oil-and-gas industry

after several years of toiling in canada’s oil-and-gas industry, former coworkers Gary Cheat-ers and Mark Cathey saw that their homeland had a shortage of manufacturers who could build oil-field equipment. So in 2006, they quit their jobs, assembled a management team with more than 70 years’ experience in the oil-and-gas industry, and founded GMG Energy Solutions Inc. Headquartered in Nisku, Alberta, GMG fabricates oil-field equipment for service companies and offers drilling, process, trucking, and specialty equip-ment. The firm’s manufacturing shop is also based in Nisku, in the heart of manufacturing and fabrication for Alberta’s oil-and-gas industry.

As a privately owned company, GMG’s mission state-ment is to build the best equipment for customers who deserve the best. According to Cathey, who serves as president and COO for the company, the goal of GMG is to build custom equipment that meets its customers’

high standards for quality workmanship, and to produce products that will withstand the Canadian oilfield. The company also offers comprehensive engineering services and planning, and engineered drawings are made avail-able to clients who require their custom-built equipment be approved for the oil-and-gas industry. “We also recog-nize the commitment associated with operating oil-and-gas equipment, by providing qualified and experienced engineers to support client needs,” Cathey says. “Indus-try codes and regulations demand quality, and GMG is dedicated to ensuring that all requirements are met.”

Additionally, the company can handle the transportation needs of its clients. GMG-affiliated companies are li-censed for 3 western Canadian provinces and 13 western US states providing LTL shipments and direct loads. The company offers various trucking services, as well as a 24-foot gooseneck trailer, for customer pickup and delivery of components.

An 1000 HP Caterpillar engine mounted in a mud-pump building to drive the pump.

custom products

gmg energy solutions inc.

We Build The Best Equipment For Our Customers Who Deserve The Best

GMG is a privately owned company with a management team that has been involved in the industry for more than 70 years, building and operating equipment both in the field and fabrication shops.

GMG Energy Solutions Inc.ph: 780-979-6580 fx: 780-979-65811902-8th st Nisku, Alberta, T9E 7W3

www.gmgenergy.ca

CanElson Drilling Inc. (CDI)Rig #1

http://canelsondrilling.com/

EIQ July/Aug 2010 GMG Energy Electric (underwrite) 1/4.indd 1 2/16/10 8:52 PM

GMG is also committed to the health and safety of its employees, whether they work in the shops or the field. To date, GMG remains a member in good standing with the Manufacturers Health and Safety Association.

“Safety training is mandatory for all employees, in all positions, within the company,” Cathey says. “Addition-ally, GMG is committed to protecting and preserving the environment.”

Innovation is another commitment that the company has made. Based on their years of experience in the industry, Cathey and Cheaters know how important it is to maintain state-of-the-art tools and equipment. In fact, GMG’s corporate philosophy is to offer quality equipment as well as fabrication of equipment and commissioning services to its customers. The company even had the foresight to move to a larger shop to accommodate more sophisticated equipment. Within a year, GMG relocated to a new 23,000-square-foot shop from its original 7,500-square-foot shop. The new manufacturing facility contains two overhead cranes rated at 10-ton capacity and an 80-foot span. In addition, its new yard is four acres and capable of assembling drilling rigs and fitting equipment up for function testing. “We also have 16 welding stations with Miller welding machines,” Cathey adds. “So now we can weld carbon steel, stainless steel, and aluminum. We also have B-Pressure welders on-site.”

Like other firms, GMG has been concerned with the present economy and its negative effect on the world-wide energy industry. “2009 was a difficult year to get through,” Cathey admits. “So we focused on reducing our vendor/supplier list and getting our spending in line. Purchasing is a big part of building a company—we need to have good control of our spending.”

Cathey does, however, remain optimistic about the future and expects the economy to pick up in the lat-ter half of 2010. As he looks to plan ahead, he sees a potential market in the Horn River Shale Formation, a natural-gas shale field. Located in British Columbia, the Horn River Basin is the largest shale-gas field in Canada,

according to the British Columbia Energy Minister Rich-ard Neufeld. In 2007, companies all over the world spent a total of $240 million in new leases for the Horn River Basin Rock Deposit Area.

“We’ve been doing engineering on fracturing sand-storage systems for the extreme large fracs that will be located there,” Catheys says. “There’s a future market for manu-facturing hydraulic-fracturing equipment in Canada. And while we’ve been marketing ourselves pretty well, we also want to get into more technical services and offer custom-ers engineering for custom-designed and -built equipment. That’s an area we want to pursue down the line.” eiq

Industry codes and regulations demand quality, and GMG is dedicated to ensuring that all requirements are met. —Mark Cathey, President & COO

custom products

energy international quarterly may/june 2010 62

barnhart crane and rigging specialty services


barnhart crane & rigging co. specialty services

BARnhART CRAnE & RIGGInG CO.Multifaceted company offers innovative services to heavy-industry clients nationwide

by laura williams-tracy

At A glANCE

location: memphis, tnfounded: 1969employees:1,000+

dominance in the field of crane services and engineered heavy rigging has required four decades of heavy lifting by Barnhart Crane & Rigging Co. Over that time, the company has grown from a hometown crane operator to a national organization with offices in 24 cities, and now has one of the stron-gest equipment inventories in the country. Barnhart Crane & Rigging can lift equipment and move it by water or over land with services in engineered heavy rigging, heavy-cargo logistics, modular-lift towers, and industrial-machinery moving.

The company began when founder Richard Barnhart moved to Memphis with his family in the 1960s, as he managed a project for Chicago Bridge & Iron. In 1969, he started his own craning and rigging company, mostly focusing on steel erection. Then in the mid-1980s, sons Alan and Eric took over operations. Today, the company has grown from a single branch in Memphis to more

than 1,000 employees nationwide. And over the past 10 years, the company has grown from $50 million in bill-ings to $250 million a year.

What helps set Barnhart Crane & Rigging apart is its multifaceted professionalism. “There are a lot of crane companies that don’t [look] at the industry from the engineering perspective that we do,” says Brian Thomas, manager of business development for Barnhart’s wind group. Thomas, who holds a degree in chemical engi-neering, joined Barnhart 21 years ago. “Our mantra is

‘Minds over matter,’” he continues. “Our engineering focus allows us to think outside of the box and provide innovative solutions for heavy industry.”

For example, a Chicago-area refinery needed to move a heater that weighed 700 tons. The owner had considered taking the heater apart, moving it through the plant, and reassembling it at its new location on the other side of

Barnhart erects a wind turbine in Wild Horse, TX.


barnhart crane & rigging co.

the plant, an approach that would take several weeks. Barnhart designed a dolly for the job, installed girders, and used hydraulic jacks to raise the 170-foot-tall piece of equipment over the refinery and set it on new piers in two days.

The company also has experience in almost every indus-trial sector, including chemical and refining, heavy civil construction, industrial crane erection and relocation, industrial warehousing, nuclear energy, power distribu-tion, power generation, and wind power. Eighty percent of business is within the energy sector, where cranes are often needed for service support.

In the late 1980s, the company grew its portfolio of in-dustrial work, servicing clients such as DuPont and Nu-cor Steel, as well as chemical plants and refineries. The gas boom of late 1990 brought work on the construction of new gas-powered plants, and the company opened new offices throughout the Southern United States, as well as offices in Los Angeles and Portland, Oregon.

“We were continuing to gain a national reputation for really being a solutions provider to large refineries and large power plants and large contractors in the industry,” Thomas says. “We had some unique tools that we had de-veloped and an energy market that was really booming.”

Since 2003, wind power has become a major source of work for Barnhart Crane & Rigging, which services the market by transporting wind turbines from a local railhead and installing the turbines on wind farms

throughout the Northeast, Midwest, and Texas. In fact, the company installed the largest wind turbines in the country in Snyder, Texas, and to date, it has been responsible for as much as 20 percent of the wind megawatts installed nationally. “We have a reputation for erecting the best turbine in the market in terms of quality and efficiency,” Thomas says. Additionally, with a national reputation for lifting and installation tools, and its particular wind-turbine-experienced technicians, the company is now providing operating-maintenance services for wind-farm customers.

Barnhart Crane & Rigging’s tools, however, aren’t limited to just cranes; the company has a number of other lifting and rigging solutions, including hydraulic gantries and strand jacks—which are small, compact hoisting devices. Many tools were developed by the company’s in-house engineering department to solve a particular problem for a client. “We build a lot of very specific tools for a project, or we will adapt tools,” Thomas says. “We have a lot of equip-ment and specialty tools we built for projects that we can reuse in a new way to help bring solutions to clients.”

Barnhart Crane & Rigging’s services have not gone unno-ticed. The company has received the Specialized Carriers & Rigging Association’s Job of the Year award 18 times for such jobs as providing structural support to NASA’s launch pad. “We’re really an engineering-based company that provides solutions,” Thomas says. “We have a lot of tools that were created from years of experience and some very sharp engineers in our company.” eiq

Barnhart transports wind turbines and installs them on wind farms throughout the country.

Our mantra is ‘Minds over matter.’ Our engineering focus allows us to think outside of the box and provide innovative solutions for heavy industry. —Brian thomas, Manager of Business Development, Wind group

Our Products

2.4 KV to 15 KV & 17.5 KV Metalclad Switchgear. 60 KV 95 KV & 110 KV. One High or Two High construction. Meets IEEE & IEC standards. Indoor or Outdoor construction. Continuous current ratings: 600A through 4000A. Short Circuit ratings: 20 KA through 63 KA.

27 KV Metalclad Switchgear. 125 KV BIL. One High or Two High construction. Meet IEEE & IEC standards. Indoor or outdoor construction. Continuous current ratings: 600A through 3000A. Short circuit ratings: 20 KA through 40 KA.

38 KV Metalclad Switchgear. 150 KV,170 KV, & 200 KV BIL. One High construction. Meets IEEE & IEC standards. Indoor or outdoor construction. Continuous current ratings: 600A through 3000A. Short circuit ratings: 20 KA through 40 KA.

Generator Metalclad Switchgear. From 1200 Amps to 6000 Amps, Drawout. One High construction. Meets IEEE & IEC standards. Indoor or outdoor construction. Numerous units operating since 1999. IEEE Standard C 37.013 available. Short Circuit ratings: 20 KA through 63 KA.

Arc Resistant Metalclad Switchgear. PACSafe Arc Resistant Switchgear available in 1 high or 2 high construc-tion. Short circuit ratings from 40 KA to 63 KA, depending on voltage (4160V to 34.5KV). IEEEC37.20.7 tested for Types 1, 2, & Suffix C. PACS top Collector Plenum discharges danger-ous Arc-Flash fire, smoke, gas, detritus, etc.,

Arc-Flash Prevention & Mitigation. The Type PDA Partial Discharge Analyzer continuously senses, 24/7 for Corona, the precursor of Arc-Flash explosions, which then will give you the opportunity to prevent an Arc-Flash explosion by maintaining Corona problem. The Type AMS will mitigate the effects of an Arc-Flash explosion by continuously monitor-ing for a light flash, and escalating current, both of which occur during an Arc-Flash explo-sion. The AMS can trip source breakers in 47 to 80ms, resulting in greater safety and minimum damage. Existing switchgear can be retrofitted. Available for new switchgear.

Fail Pass Discharge

1200 to 3000A 4000 to 6000A

13.8 KV & 34.5 KV Swgr in PCC

POWER & CONTROL CENTERS (PCC) PACS manufactures over 100 PCC’s per year to contain metalclad switchgear and other apparatus. Buildings may be thermally insulated, acclimatized and pressurized. Buildings in excess of 300’ x 40’ available.Buildings for Arc Resistant Switchgear

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Available for Arc Resistant Switchgear

PACS Industries, Inc.POWER AND CONTROL SYSTEMS

Untitled-2 1 1/29/10 6:14 PM


barnhart crane & rigging co.

pACS InduSTRIES, InC.Father-and-son team find success in the switchgear marketplace

by cristina adams

At A glANCE

headquarters:great neck, nyfounded:1972employees:115area of specialty:power-distribution metalclad switchgear and related products 2008 sales:$20–30 million

when mandell dalis started his own metal-clad switchgear company, PACS Industries, in 1972, he would secure the client, engineer the specific project, and then farm out the manufacturing process to a local switchgear company. In 1980, however, all that changed. By then, Dalis—whose son, Bruce, had joined the business—figured that the time had come to bring the manufacturing in-house, and that meant either building or buying a facility. So the company acquired a small plant in Mount Vernon, Ohio. “It was the size of a large 12-car garage,” recalls Bruce, who is now the company’s president and COO. Mandell remains active as chairman and CEO.

PACS’s manufacturing plant is still located in the state of Ohio, but it now operates in a sprawling 240,000 square feet of space and employs more than 100 people; the remaining 15 staff members in the engineering, estimat-ing, and project-management departments work out of the company’s corporate headquarters in Great Neck, New York.

It’s precisely those people (all 115 of them) who Bruce credits with being PACS Industries’ greatest asset.

Indeed, employee turnover is low, with many averag-ing 15 years of service; numerous others have a longer tenure, some more than 25 years. And while it is still a family-owned and -run company, it’s not the most cru-cial element of PACS’ current and future legacy, Bruce says. “What’s important is that PACS remain a place that people can come to work and grow, while producing a high-quality product.”

That high-quality product is metalclad switchgear—basically an extra-large circuit breaker. In a residence, a standard circuit breaker operates at 120 volts. But PACS’ equipment is much more powerful, operating in a range of 2,400–38,000 volts. Last year, for example, PACS par-ticipated in a project that involved the manufacture and installation of the main 26,000-volt switchgear at the New York Mets’ Citi Field.

The switchgear is installed in large structures known as power-control-center (PCC) buildings, which are assem-bled and tested together with the switchgear at the plant in Ohio. Once the PCC is assembled with the switchgear inside, the whole package is installed in large outdoor metal houses, which PACS also manufactures. According

PACS Industries’ manufacturing facility in Mt. Vernon, OH.


pacs industries, inc.

to Dalis, PACS is unique because it’s a vertically integrat-ed company; the Ohio facility features a manufacturing engineering and design department, a sheet-metal shop, a powder-coat-finishing facility, manufacturing, and assem-bly facilities, and a test lab. The company also tests to all standards set by the American National Standards Institute, the National Electric Code and the Institute of Electrical and Electronics Engineers, which is no small feat. The test lab boasts all the regular test equipment, as well as a few bells and whistles: an impulse generator to 240 kilovolts, a partial-discharge analyzer, a heat-run facility to 7,000 amperes, and a circuit-breaker-timing recorder system.

But making superior metalclad switchgear isn’t all PACS does. About four years ago, the company developed a line of arc fault-resistant switchgear in response to man-dates from the Occupational Health and Safety Admin-istration. This product, which now accounts for 40 per-cent of the company’s annual revenue, protects operating personnel from an electrical explosion, or arc flash that can occur suddenly in high-voltage settings. Designed to channel the dangerous energy away from human opera-tors, the fault-resistant switchgear essentially vents the heat, gases, and pressure upward through the roof. Ac-cording to Bruce, PACS is still the only independently owned company to have developed this technology.

As for active markets, PACS currently works with clients in a range of industries, from electric utilities, transpor-tation, and wind-power companies to large industrials and oil-and-gas refineries—basically any industry that needs a large amount of power to operate its facilities. Domestic clients account for 70 percent of its reach, but the remaining 30 percent can be tracked to contractors, shipbuilders and utilities as far away as South Korea, Ja-pan, and Saudi Arabia. And those markets are growing, not only because of demand for the products, but also because of the company’s unique ability to develop and manufacture its products.

Annual revenue has been averaging $20–30 million over the past three years. Management is projecting robust growth of 15–20 percent in its markets over the next three years. “We have competitors, but few with our research and product-development capabilities,” he points out. “We build the highest-quality equipment in the industry, and we complement that quality with first-rate customer service.” eiq

PACS Industries’ 38-kV arc fault-resistant switchgear.

specialty services


fisher powerline construction ltd.

fIShER pOWERLInE COnSTRuCTIOn LTd.Husband-and-wife team emphasizes customer service and a commitment to safety

by cristina adams

At A glANCE

location: fort mcmurray, abfounded: 2005employees:40area of specialty:construction and maintenance of power-distribution and -transmission systems

roger and shyerene fisher weren’t planning on starting a new company. But five years ago, when a business venture they were involved in went south, they had to do something to stay afloat. So they sold their house and, with the money from the sale, bought their first digger truck. It was a calculated gamble; Roger had more than 30 years’ experience in the powerline business, and Shyerene had worked 25 years for various engineering firms and operators in the oil-sand industry. In theory, their combined professional experience and industry savvy should have ensured the success of their new venture, but there’s no such thing as a sure thing.

Nevertheless, with one truck and two employees, the Fishers opened their company, Fisher Powerline Construction, Ltd. Four years later, the compnay is a multimillion-dollar business with 40 employees and a fleet of 20 crew trucks and 20 larger vehicles (such as rubber-tire and track-equipment diggers/augers and cranes). “From day one, we made a commitment to our clients to get it right the first time,” says Shawn Woon,

Fisher Powerline’s project manager. “That has driven our growth and our success.”

Based in Fort McMurray, Alberta—in the region of the famed Athabasca Oil Sands—Fisher Powerline offers project-management, construction, and mainte-nance services on overhead and underground power-distribution and -transmission systems and substations, using both cold- and hot-line work methods at various voltages. Its crews, for example, work on energized—or live—equipment up to 36 kilovolts, using insulated work platforms, Class 3 rubber gloves, and cover-up. The company also provides dry-ice cleaning on energized equipment up to 27 kilovolts and corn-grit cleaning up to 260,000 volts. Interestingly, the latter form of clean-ing involves using broken corn-cob bits as a soft abrasive to blast-clean parts without scratching the surface.

Given Fisher Powerline’s location near the largest res-ervoir of crude bitumen in the world, it’s not surprising that the company’s client list is heavily populated by oil-

A helicopter conducts an aerial line patrol, one of Fischer Powerline’s many services.



sand developers and producers from the area, although electrical utilities also figure as important customers. But other companies are also competing for that business, Woon points out—larger, better-established companies. And that makes it even more critical for Fisher Powerline to emphasize its commitment to customer service and job safety. In fact, the company boasts a certified Envi-ronmental Health & Safety program and a certificate of recognition from the Alberta Construction Association. More recently, the company received a total discount of 17.7 percent off its rate for 2010 from the Workers Compensation Board, further evidence of its sterling safety record.

“What sets us apart is our ongoing commitment to safety and our continuous striving for zero accidents or incidents,” Woon says. “Detailed planning and the incorporation of safety into our execution strategies have also contributed to this incredible rate adjustment.”

In addition to its strong safety record, Fisher Powerline uses state-of-the-art technology, such as project-port-folio-management software Primavera P6, to create a seamless management process all the way down the line, from maintenance, monitoring, and reporting of sched-ules, to manpower loading and progress tracking. More-over, the company has recently upgraded its estimating software, which will allow it to stay current with the industry technology and to continue providing consis-tent and accurate estimates. “In addition to allowing us the opportunity to apply strategic measures as necessary, these efforts also allow us to identify opportunities early and advise our clients accordingly,” Woon says.

Fisher Powerline isn’t committed just to safety and customer services; concern about its own environmental impact has led management to develop some environ-mental best practices, both inside and outside the office. From not printing e-mails unnecessarily to using its highway vehicles efficiently, the company is clearly out to shrink its carbon footprint. It has, for example, in-stalled devices on all of its equipment that monitor main-tenance and driver habits, such as speed, location, and even vehicle idling. As a result, behavior and practices that don’t measure up to the company’s policies can be

corrected, and vehicles get the maintenance they need to operate effectively.

Like many other businesses, Fisher Powerline has been affected by the economic downturn of the past two years. However, thanks to management’s decision to control growth, the company has weathered the bumpy ride better than many. As for what’s next, Woon says that they’ll be pursuing a larger share of the market in live-line work. As he points out, the public’s reliance on dependable power, underscored by the need to minimize outages, should guarantee growth in that market. But he emphasizes the company itself—the founders and their employees—is the rock-solid foundation on which to continue building future success. “We have a great core of employees that will help ensure we are well po-sitioned to expand as opportunities present themselves,” Woon concludes. eiq

From day one, we made a commitment to our clients to get it right the first time. That has driven our growth and our success. —Shawn Woon, Project Manager

Crews working to install the high-voltage connections on a 260-kV transformer.

specialty services



MicroSeismic’s equipment is staged at the wellhead for a hydraulic-fracturing job.

MICROSEISMIC, InC.Optimizing the effectiveness of multi-well fracturing programs

by daniel casciato

At A glANCE

headquarters:houston, txfounded:2003employees:50area of specialty:microseismic monitoring 2009 sales:$17.3 millionsales growth in past year:35% frac treatments monitored in 2009:500+

since its founding in 2003, microseismic, inc. (MSI) has built a global reputation for innovation in the acquisition and analysis of passive seismic data, especially microseismic monitoring.

Microseismic monitoring is the practice of listening to the seismic noise emitted from a reservoir in order to detect patterns of fluid movement, fracture develop-ment, or compaction. The knowledge of these patterns enables improved reservoir management. Passive seismic imaging is 3-D structural imaging that uses existing, often naturally occurring sound sources rather than man-made sources such as dynamite or vibrators. This technology enables seismic exploration in places that are difficult to reach or environmentally sensitive.

MSI pioneered the use of surface and near-surface arrays for monitoring hydraulic-fracture stimulations. The Hous-ton-based firm also established the first permanent near-surface arrays for the same purpose and is leading the way in developing analysis tools to extract more information and value from microseismic data. “This methodology,

which we trademarked under the name FracStar, elimi-nates the need for expensive monitoring wells to gather the needed data,” says Peter M. Duncan, the company’s president. “Recently, we have introduced a permanent, life-of-field buried-array version of the FracStar technique that significantly reduces the unit cost of monitoring and allows for a more complete attack on the monitoring issue by operators.”

MSI’s technology and expertise has been applied to a broad spectrum of oilfield problems, ranging from struc-tural imaging in mountainous areas using earthquakes as its energy source, to steam-injection tracking for bitu-men mobilization and carbon-dioxide injection mapping as a tertiary recovery tool. “Our business is to seismi-cally monitor the hydraulic-fracturing well-stimulation process that operators are employing to complete wells in unconventional gas and oil plays,” Duncan says. “The monitoring tells them how well they stimulated the reservoir, where the fracs went and how big of a volume the well is draining. It can assist them in increasing pro-duction per well and reduce costs per completion.”


microseismic, inc.

Perspective image of the microseismic events associated with the fracing of mul-tiple stages in a series of five Marcellus horizontal wells drilled from a common pad. The toes of the wells are to the lower right. Events are colored by treatment well. Frac half-length is greater than 1,000 feet. The monitoring was done with a surface array. Image: Range Resources Corp. and MicroSeismic, Inc.

MSI’s most active areas right now are the Haynesville play in Texas and Louisiana, the Marcellus Shale play in Pennsylvania, and the Barnett Shale play in Texas, as well as the Bakken Shale in the Williston Basin, covering parts of North Dakota, Saskatchewan, and parts of Wyoming.

Duncan, a long-time geophysicist and entrepreneur, was introduced to the technology’s originator, Professor Charles Archambeau of the University of Colorado, in the summer of 2002. His ideas on using microseismic-monitoring techniques in the resource industry caught Duncan’s attention, and he made a proposal to buy the technology from Archambeau a few months later. After raising $450,000 in seed capital in 2003, the company was officially incorporated and began to develop its services in 2004. “The rise in importance of the uncon-ventional plays and the uniqueness of our technology has driven double-digit-percent growth every year since,” Duncan says.

The original business plan contemplated pursuing many facets of passive seismic imaging. Frac monitoring has evolved to be the most important for now, according to Duncan. “We have matured the technology significantly over the years and managed to patent key elements of our process,” he says.

Although MSI’s technology is unique, competition will arise, so the company has been investing heavily in the imaging science it practices to always stay ahead. The challenge of bringing a new technology to market and building a profitable enterprise around that technology has been one of the most rewarding aspects of Duncan’s job. It’s also a fun and rewarding place to work for his employees, he says.

This is the third business venture Duncan has been involved with. “I enjoy building a company,” he says. “I truly enjoy taking technologies that are new and might seem difficult to understand and finding ways to commu-

nicate to people the utility of those in ways that they can understand and actually adopt it into the marketplace. I also enjoy hiring young people out of school and partici-pating in their education.” For Duncan’s efforts and the company’s rapid revenue growth (from $1 million to $13 million since its founding), the Houston Business Journal has included MSI as part of its Houston Fast Tech 50 list in the last two years.

But Duncan won’t take all of the credit, acknowledg-ing the work and commitment by his employees instead.

“We have a dedicated staff,” he says. “Everyone who works here has stock in the company and feels that it is theirs, and they work harder for that. The best advice I ever received was to hire the right people, put them in the right jobs, and focus, focus, focus.” eiq

This methodology, which we trademarked under the name FracStar, eliminates the need for expensive monitoring wells to gather the needed data. —Peter M. Duncan, President

speciality services

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Photo Source: National Aeronautics and Space Administration

Range Resources (RRC) in an independant oil and gas company operating in the Southwestern, Appalachian and Gulf Coast regions of the United States. An S&P 500 Company, Range pioneered the Marcellus Shale in October 2004 and unlocked one of the largest sources of clean burning natural gas in the United States.

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S&S provided its services to Las Vegas’ City Center Project.

SAfETY And SuppLY CO.Creating innovative safety concepts for the wind-energy industry and beyond


At A glANCE

location:seattle, waemployees:75area of specialty:full-spectrum safety equipment and servicesaverage annual sales:$15 million

many companies measure success by incre-mental profit margins, geographic expansion, and overall market growth. Although Safety and Supply Co. (S&S) can easily tote its achievements as reflected in these stan-dard measurements, this particular firm defines its suc-cess in the most important tabulation of all—protecting and saving human lives.

Sam Murray purchased the small Seattle-based company in 1941. Over the years, Murray made S&S extremely successful in the Pacific Northwest and later passed it on to his son, John. Today, the company is proudly third-generation owned and led by his grandson, Shawn Murray.

S&S is truly a full-spectrum safety company selling every kind of safety equipment imaginable. In addition, it has a manufacturing division that produces high-visibility apparel; a repair facility to service equipment

such as winches, self-retracting lifelines, SCBAs, and safety instrumentation; and a huge rental department that serves as a contractor for chemical-plant shutdowns and turnarounds—cleaning and servicing equipment and, most importantly, managing assets for its clients through the chaos.

“In addition,” says Brent A. Knight, director of on-site services, “we provide training, support, consultation, safety, and health-staffing services—which is becoming the fastest growing part of our business.”

In order to stay on the industry’s cutting edge, S&S ap-proaches innovation in a very practical and pragmatic manner. For example, the company recently helped one of the largest manufacturers of wind turbines in the world solve an internal safety issue. “The biggest issue in the wind-energy industry is having the proper

job-site safety

safety and supply co.

fall-protection rescue equipment, because each turbine model has unique challenges,” Knight says. “So we began creating kits that included all of the equipment that a team of technicians would need to work on any particu-lar turbine farm.”

By coming up with such groundbreaking ideas, S&S has been able to continue its tradition of innovation and success. “We are always asking ‘What else can we do?’

‘What can we do better?’ and ‘Why do our customers work with us?’” says Knight, who believes that this helps S&S come up with concepts that its customers need but might not be aware of. “Innovation comes from creativ-ity, which comes from curiosity and caring. We value our customers very much, and we want to offer ideas that can help simplify their operations.”

Another unique aspect of S&S is its adaptability. “We bring a holistic approach to safety,” Knight says. “We can and will change the direction of our business or create new processes when necessary to meet market demand and customer expectation.” For example, the company is no longer solely an equipment distributor—it is now also a rental, training, and consulting company.

In the short term, S&S aspires to establish itself as a preferred vendor in the wind-energy market—just as it has successfully done in other markets. “Our long-term goal is to be recognized nationally as a leader in the safe-

Innovation comes from creativity, which comes from curiosity and caring. We value our customers very much, and we want to offer ideas that can help simplify their operations. —Brent A. Knight, Director of On-site Services

INDUSTRY TRENDS ON THE HORIzON

Industry experts at Safety and Supply Co. feel that economic recovery will be very slow in some industry segments and will boom in others, making 2010 both challenging and exciting.

“We are optimistic that the energy sectors, as well as oil and gas, will be seeing significant increases and growth in 2010, which will drive us forward,” Knight says. “On the other hand, one of our largest industries is the construction market, and we are forecasting all-time lows in commercial building volume through 2011.” He also believes other trends that the industry will see include consolidation of the vendor base and “right sizing”—which may give S&S more consulting and service opportunities. “On the safety side,” Knight adds, “we see more customers looking for targeted expertise for special situations, because their internal resources have been reduced by layoffs and increased work responsibilities.”

dId you KNoW?

Although S&S has always been a safety-equipment and -services company, it actually sold toys during World War II in order to make ends meet. The company also employed one of the first industrial hygienists in the Northwest for many years as a re-source to its clients.

job-site safety


safety and supply co.

ty industry,” Knight adds. The company also continues to look for new markets and services that will not only bring profits but value to its customers as well.

Knight acknowledges that strong leadership, good com-munication, innovation, flexibility, a caring approach to business, as well as the company’s dedicated employees, have all been the keys to S&S’s success. “We have the best people, and they are all committed to the success of the company,” he says. “Our employees are our number one asset.”

A dedication to safety and the company’s powerful con-cern for life give S&S both a higher calling and a greater measure for success. “The work that we do is very excit-ing, and we can go home at night and say, ‘I did some-thing today that will prevent an injury to a worker, or even worse, a fatality,’” Knight says. “Because of this, we get opportunities to touch many lives and influence both thinking and behavior.” eiq

Thank you 3M

for being a great

partner for over

three decades.

(800) 525-7233 (SAFE)

www.safetyandsupply.com

Find these 3M products

at Safety & Supply

S&S provided a unique fall-protection solution for an open-trench hazard in Seattle’s Sewer Trench project.

job-site safety


In order to keep up with demand, RET has expanded its fleet with vehicles such as this 2010 roll-off truck.

RELIABLE EnVIROnMEnTAL TRAnSpORT, InC.Working to keep energy-development sites clean and green

by sheena harrison

At A glANCE

location:bridgeport, wvfounded:1972employees:522009 revenue:$7.5 million

a recent surge in natural-gas development in the Appalachian Mountains is turning into a wealth of opportunity for Reliable Environmental Transport, Inc. (RET), a multiservice transportation company of-fering a full range of waste transportation. RET has been working with some of the nation’s foremost players in exploration of the Marcellus Shale, a sedimentary rock formation that houses large stores of untapped natural gas and extends across several states, including West Virginia, Pennsylvania, and New York. A 2008 survey by Chesapeake Energy Corp. estimated that the forma-tion contains about 363 trillion cubic feet of recoverable natural gas, which the US Geological Survey estimates could supply the American population at current con-sumption levels for the next 15 years.

President and owner Jonathon Marks says his company is in a prime position to expand as Marcellus Shale explora-tion and development ramps up. “We’re one of the only transporters who operates an office in this part of West Virginia, so we’re in a fantastic area to grow that opera-tion,” he says.

RET, which is based in Bridgeport, West Virginia, pro-vides environmental-waste transportation and disposal, industrial waste clean-up, and high-volume industrial

vacuum services for companies in a range of fields, including natural-gas, petroleum, steel, and chemical production. Clients of RET—which also operates a tank-rental division for the natural-gas industry—have included Chesapeake, Marathon Oil Corp., and Atlas Energy Inc.

The company also works to provide top-notch customer service while offering services that keep companies in compliance with environmental regulations. “We strive to provide the highest level of professionalism, honesty, and integrity under the harshest conditions,” Marks says.

Originally founded under the name Ryan Environmental Inc. in 1972, the company specialized in small excava-tion and earth-moving projects. In 2002, Marks and two partners—Alan Anderson and Claude J. Ryan IV—acquired the assets of Ryan Environmental, and in 2004, they formed Reliable Environmental Transport, Inc. as a separate company. Marks, who is active in the company’s day-to-day operations, says RET’s growth outpaced Ryan Environmental, and the new entity reduced liability issues associated with transporting hazardous materials.

Since 2004, RET has grown from 5 employees to 52. In that same time, the company grew from about $1 mil-

job-site safety


reliable environmental transport, inc.

lion in revenue to $7.5 million. That growth placed RET on the 2009 Inc. 500 list, which recognizes the fastest-growing private companies in the United States. “Many companies have been curtailing services or laying off,” Marks says. “So it’s a great thing that we’ve consistently expanded through these difficult times. It seems that we must be doing something right.”

RET’s growth is rather remarkable considering that the company does not do any advertising. Marks says nearly all of the company’s customers, who come from states throughout the Marcellus Shale region, found RET through word-of-mouth recommendations. “Because of our track record and commitment to professionalism, honesty, and integrity, our reputation has developed on its own,” he says.

Because of our track record and commitment to professionalism, honesty, and integrity, our reputation has developed on its own.

—Jonathon Marks, President & Owner

Marks says the company has a commitment to its clients that brings previous customers back to RET and helps bring new customers in the door. For instance, clients can contact RET 24 hours a day, 7 days a week for on-site assistance, which Marks often provides himself. “I consistently interact with our clients on a daily basis,” he says. “I’m hands-on, and I provide expertise when necessary. I’m not just a figure setting behind a desk; I try to stay actively involved with each of our clients.”

RET also works to make sure its employees are treat-ed as well as the company’s customers, Marks says. It’s a philosophy that he believes has helped the company to flourish. “Our recognition of the fact that our employees are the most important part of our company has made a tremendous difference in the success of our company,” he says.

Employees receive such benefits as above-average pay for the environmental-services industry, health insur-ance, paid holidays, pay bonuses, and a profit-sharing program that was started this year. Marks says RET also invests in new equipment on a regular basis to help em-ployees do their jobs more efficiently. “We recognize it’s their name going down the road,” Marks says. “So if we provide great equipment, the employee feels good about running it.”

rET’S EXTENSIVE SErVICES

• Bulk hazardous/nonhazardous material and waste transportation and service

• Nonhazardous/hazardous drum management, transportation and disposal

• Lab-packing service• Industrial vacuum services• Mobile frac-tank and storage-tank rentals• Industrial roll-off services (hazardous/nonhazardous)• Jet rodder, pipe-cleaning services• Bulk water services (potable)• Flatbed transportation services

Marks, who is working to double the size of RET’s propane and natural-gas liquids transportation division by 2012, says the company’s emphasis on customer and employee appreciation is something that will continue as the company grows. “We’re a modest company; we don’t like to toot our own horn,” Marks says. “We just go out and do our jobs, and it results in good things.” eiq

job-site safety

WORK-READY TRUCKS ON THE GROUND

Hunter Truck Sales & Service | 100 Hunter’s Way | Smithfi eld, PA1-800-257-8782 | www.huntertrucksales.com

Serving the Appalachian Basin for 75 Years14 Locations throughout PA, NY, & NJ


southwest disposal service inc.

SOuThWEST dISpOSAL SERVICE InC.Oilfield-waste-disposal company sets new standard in the texas energy market

by erica archer

At A glANCE

location: odessa, tx employees:35area of specialty:oilfield-waste disposal

southwest disposal service inc. (sds) may have the most exacting disposal methods in its market, but general manager Chad Williams has a simple expla-nation for the company’s expansive success. “We treat drivers nicer than everyone else,” he says. “We give them coffee, donuts, take their pictures. If drivers like a facil-ity, they might go a little out of their way… Plus we have better facilities.”

Soaring oil prices in 2008 pushed the oil industry in West Texas to peak operations. Although several of SDS’ competitors shut down due to noncompliance issues, SDS bulked up its facilities and operations to handle the rush. A facility handles between 40–70 trucks per day and can service up to 10 trucks at a time. After the rush, SDS was the last one standing, the only actively permit-

ted disposal facility of its type in West Texas. “[During the spike in oil prices] everyone was running at capacity and well beyond,” Williams says. “We were able to weather the storm.”

The oilfield-waste-disposal company has grown tre-mendously since its 2006 founding. In 2009, its Odessa, Texas, facility accepted more than 530,000 barrels and 20,000 cubic yards of waste. This year, the company projects processing more than 720,000 barrels and receiving more than 40,000 cubic yards of waste at this same facility.

The waste that SDS processes comes from storage tanks at well sites, as well as from spent drilling fluids. After cleaning pumpside tanks once or twice a year, oil

Dewatering equipment at the SDS Seminole facility.

southwest disposal service inc.

producers truck waste to the disposal site. The waste is pumped out of the trucks and centrifuged to separate any remaining oil from the basic sediment and water. Af-ter processing, liquid waste—largely brine—is injected back into underground geological formations. Solid waste is placed in lined pits. “Our goal is to de-water all of the incoming waste, unless of course it’s in solid form,” Williams says. “The water is what poses the greatest environmental threat; if you have any type of liquid, that liquid can then leach through the soil.”

The facility’s processes are able to reclaim about 97 per-cent of the oil remaining in the waste, which amounts to tens of thousands of barrels a year. The reclaimed oil, which is rated West Texas Sour Crude, is sold and piped to refineries. (Sour crude oil refers to oil with sulfur content greater than 0.5 percent, as compared to lower-sulfur sweet crude.)

Nonhazardous oil-and-gas waste is not regulated by the EPA, due to the 1976 Federal Resource Conserva-tion and Recovery Act. In SDS’s market, the Railroad Commission of Texas regulates oilfield waste. “People don’t understand how regulated we are with respect to waste,” Williams says. “Every barrel of waste that comes into our facility is categorized, recorded, and scanned for radiation. Then I have to submit all of those results, and [the Railroad Commision] keeps them on file [at two offices]. And then those results are matched up with the operator who says that they disposed of that barrel amount.”

Oil producers’ fear of potential environmental issues makes waste disposal the least discussed segment of the oil industry, Williams says. Before sending waste to a disposal site, an oil producer may take a year or more to audit that site’s practices, he says. “Nobody [in the industry] wants to really admit that they produce waste,” he says. “The oil companies are trying to go as green as they can, and they’re very sensitive to it… The last thing anybody wants is to discuss how waste is disposed of because they’re fearful of the liability.”

Williams partially attributes SDS’s success to its diligence in constructing its waste-disposal pits. SDS’s disposal pits use both a 60-mil high-density polyethylene (HDPE) primary liner and a 40-mil HDPE secondary liner. Sandwiched between the liners is a leak-detection system that can also be used to remove any liquids, should there be a breach in the primary liner. The ind-ustry standard has been thinner 40-mil HDPE rating for both primary and secondary liner. To this, SDS adds

an additional 200-mil cushion of geocomposites and 12 inches of compressed caliche dust above the primary liner. “We go well beyond the norm for landfill disposal pits in Texas,” he says.

SDS facilities also treat liquid waste more carefully than the competition. “The difference between us and any other pit in Texas is that we don’t put any liquids into our pits,” Williams explains. “That eliminates any risk of leak-age to ground water or environmental contamination.”

SDS’s disposal pits were designed by engineering firm Tetra Tech. Texas regulators now use SDS’s dewater-ing measures and pit practices as the new standard for pit disposal throughout the industry. SDS and Tetra Tech have now entered a formal partnership. “We view ourselves as pioneers in the waste-disposal industry,” Williams says. “[Tetra Tech] has gone a long way toward making us the standard for oilfield-waste disposal in Texas.” eiq

job-site safety

1910 North Big Spring | Midland, TX 79705 p 432.682.4559Gary Miller | Area Manager

e [email protected]

• Environmental Site Assessments

• Soil and Ground Water Contaminant Investigations and Risk Assessments

• Remediation Design and Implementation

• Hydrology and Water Resources Investigation, Characterization & Monitoring

• Clean Air Act Compliance, Including Title V Operating Permits

• Underground/Aboveground Storage Tank (UST/AST) Management

• Spill Prevention Control and Countermeasure (SPCC) Plans

• Naturally Occurring Radioactive Materials Services

• Solid Waste Facility Design and Permitting

• Regulatory Assistance and Permitting Services

Our Services Include:

280 offices worldwide | 10,000 employees | Engineering | Consulting | Technical Services www.tetratech.com

Tetra_Tech_Energy_International_Quarterly_Ad.indd 1 2/10/2010 3:24:17 PM


last word

The top 10 exporting countries of oil to the US in thousand of barrels per day.

Oil Imports to the USIs the uS too reliant on foreign oil?

Canada2001

Mexico 1099

Venezuela 1119

Nigeria

769Colombia

286

Brazil

269

Iraq 374

Russia 305

The top 10 exporting countries account for

82% of US crude oil imports.

The US imported over

60% of its oil in 2007.

98 99 00 01 02 03 04 05 06 07 08

25,000

20,000

15,000

10,000

5,000

0

US Consumption and Imports(in thousands of barrels per day, by year)

US Consumption

Total Imports

30.5 thousand milion barrels

Known US reserves

12.4 years

How long the US’s reserves will last at the current R/P rate

22.5% of total oil prduced in 2008

was consumed by the US

7.8% of total oil produced in 2008

was produced by the US

Source: Energy Information Administration BP, June 2009

Saudi Arabia 902

Angola 435

energy international quarterly may/june 201084

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PETTIGREW & ASSOCIATES PA

Energy International Quarterly Issue 9

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Transcript of Energy International Quarterly Issue 9