Oklahoma Rig Count Down 11 for Month, 33 for Year

The Baker-Hughes Active Rig Count for the state of Oklahoma stood at 105 on Friday, May 10, marking a decline of 11 from the March 8 figure of 116 rigs.

Crude prices stood at $61.55 at 10 a.m. on Friday, May 10, showing a decline of about $2 a barrel from a month ago. Nonetheless, one analyst indicated that recent activity suggests that a price slide over the past week shows signs of abating.

Julianne Geiger, a writer for oilprice.com, said that President Trump’s suggestion that higher trade tariffs might not necessarily be imposed on China was a good sign for oil, as higher tariffs can mean a pullback of China from purchasing U.S. crude.

Meanwhile, market uncertainty has created volatility and therefore opportunity in the oil trade, along with various other market stressors, such as sanctions on Venezuela and Iran, and production supply outages in Libya and most recently, oil export issues in Russia, Geiger wrote.

The Oklahoma rig count of 105 is down 33 from a year ago (May 11, 2018), when it stood at 138.

The accompanying map, created by Baker Hughes, shows the locations of Oklahoma’s 105 active rigs. The heaviest concentration, clearly, lies in the SCOOP/STACK region.

Click to enlarge

Capital Discipline, Spending, and “Big Data” Fuel O&G Changes

Shifting oil and gas industry forces mean that capital discipline, decreased spending, and consolidation will continue to mark the industry in the coming years, say oil and gas and finance executives addressing about 150 attendees at the annual BoyarMiller Energy Breakfast Forum, conducted by the Houston-based law firm BoyarMiller.

Chris Hanslik, Chairman at BoyarMiller

“Our speakers agree that we are currently in the middle of the latest oil and gas cycle and while oil prices have been recovering, there are substantial changes taking place that will have a long-term impact on the industry,” said Chris Hanslik, chairman of BoyarMiller. “Our moderated discussion was packed with an inside look at the challenges and opportunities occurring within this industry.”

The three speakers at the BoyarMiller Energy Forum included Laura Schilling, president of Pumpco Services; Matt McCarroll, chairman and CEO of Fieldwood Energy LLC; and James P. Baker, managing director and global co-head of investment banking and capital markets at Piper Jaffray & Co.

Call for Capital Discipline

“What’s happening right now is that oil prices have been recovering since the lows of last December, but E&P spending is actually down in the U.S. onshore market year over year,” said Schilling of oilfield services (OFS) company Pumpco Services. “And even though there is a constructive trajectory of oil prices for the rest of the year, there is a call for capital discipline to the E&P companies, as well as OFS, to drive greater cash flows, which is changing the dynamics of this cycle. Investors are voting with their wallets and energy is currently less than six percent of the S&P 500.”

Schilling said both the operators and the OFS segment of the industry are expected to provide investors and shareholders a return through dividends and buy backs, and OFS companies with debt are working to improve balance sheets.

“The focus in OFS right now is free cash flow and that is how we are going to bring investors back and build sustainability,” said Schilling.

To do that, Schilling said the OFS sector has to embrace a “new normal” that could be different from the previous business models.

“You either have to work the efficiency side of the business, like a Southwest Airlines model, or you need unique technological differentiation. In the completions market, there are a lot of players and those in the middle that do not differentiate will not survive,” said Schilling. “We are focused on efficiency. Given the rising complexities of wells today, some of this is back to the basics of performing well for operators and that will continue to earn market share going forward.”

A Tipping Point

Laura Schilling, President, Pumpco Services Inc

Schilling also said the industry’s new normal includes the adoption of “big data” as operators work with Google, Amazon, and Microsoft to gain information about improvement of field operations, equipment, and well management.

“Integrating data and algorithms from these companies into operations improves decision making and is going to be essential in the future as operators strive to reduce costs,” said Schilling. “We have sensors on much of our equipment for predictive maintenance and real-time analytics and it has been phenomenal. The tipping point is here in utilizing new software, cloud platforms for remote operations, and other technology—and it’s exciting to see.”

Even with the industry’s advancement of technology and adoption of big data, Schilling said there is still one key component to success.

“Execution matters. For instance, at the Permian Basin there are multiple vendors operating onsite and activity must be coordinated to move massive pieces of equipment every day to achieve efficiency for the operator, and to do it safely,” said Schilling. “So technology is important but execution wins the game.”

Segmentation and Spending

Matt McCarroll of Fieldwood Energy believes the industry is more segmented today and cited his private company as an example of how it is different from large and onshore operators.

“We are going to spend more capital during the next 12 to 18 months than we have spent over the last five years,” said McCarroll, who attributed increased spending to the company’s work in the deepwater Gulf of Mexico that will amount to 50,000 barrels of production over the next two years. “But it is a challenging time. You won’t ever see again the activity levels of 2005, when there were 80 active operators in the Gulf. At the Gulf of Mexico lease sale a few weeks ago, there were only 30 companies that made bids. There has been a lot of consolidation and the industry in the Gulf has fundamentally changed.”

Matt McCaroll, President & CEO Fieldwood Energy LLC

He addressed the concerns about efficiency among operators citing services provided at a reduced day rate are only effective if executed safely and efficiently.

“While costs have come down substantially, and day rates have dropped, if it takes twice as long to drill because the equipment has not been serviced recently or the crew is not well trained, there are no savings. People misconstrue that because rates are down, there is more money being made,” said McCarroll. “We look for the highest quality vendors that will help us produce most efficiently.”

McCarroll also addressed the challenges private producers face in planning a profitable exit strategy.

“The traditional exit for private equity is a strategic buyer or going public, but it is difficult to go public today. As a private company with stakeholders, including private equity, you need liquidity at some point. We are looking at different options to reach that goal,” said McCarroll.

McCarroll doesn’t make predictions about oil prices and said you can get caught up trying to over-analyze oil prices. “If I knew where oil prices were going I wouldn’t be producing it, I’d be trading it,” he joked with the audience.

Shifts in Funding

James Baker of Piper Jaffray & Co. addressed the new landscape for buyers and sellers in the midstream sector.

James Baker, Piper Jaffray & Co
“The biggest change in the midstream space is that 10 years ago the vast majority of buyers were master limited partnerships or MLPs,” said Baker. “Since 2017, we have seen about $50 billion worth of mergers and acquisitions in midstream; approximately $40 billion of it has been financial buyers with $10 billion representing strategic buyers.”

According to Baker, the industry is seeing a market trend where MLPs are converting to C Corps because of the sharp reduction in the U.S. corporate tax structure and the ability to access a larger base of institutional investors. “It’s a much bigger pool for companies when they get back to growing and need to raise capital,” he said. “But many institutional investors look at the industry and say there are too many midstream companies that look the same and there needs to be consolidation—and that’s not an easy solution.”

“The entire business model has changed for upstream private equity groups,” said Baker. “Traditionally, they have backed a management team to go out and lease acreage, prove it, and then flip it to a strategic. That market has disappeared. Now they have to hire operators and run it as a company and within cash flow or maybe push until an exit appears. It’s a totally different approach.”

Baker concluded stating the investment community has shifted from a focus on growing production, to a focus on capital discipline and financial metrics that require a different mindset.

 

SCOOP STACK Wins More Converts, Investments

Ventana Exploration and Production II (VEP II) recently received a new round of equity capital from an affiliate of Starwood Capital Group (Starwood), Equity Group Investments (EGI), and the Virginia Tech Foundation. Ventana (VEP II together with its predecessor VEP I), which acquires non-operated oil and gas interests in Oklahoma, has participated in more than 500 wells in the STACK/SCOOP/MERGE to date. Since inception, Ventana has raised more than $150 million of equity capital and currently has over $100 million of “dry powder” to pursue acquisitions of non-operated working interests and minerals in Oklahoma.

Heather Hilliard Powell, CPL, President & CEO at Ventana Exploration and Production LLC

“We’re seeing as much or even more opportunity today as we have over the last 18 months,” commented Ventana CEO Heather Powell. “That’s largely due to the momentum and reputation we’ve built in partnering with local leasehold and mineral rights owners. In addition, with operators in the basin focused on capital discipline, they continue to divest their smaller, non-operated land positions. Those are often the types of assets that are core to us.”

Ventana, through VEP II, is targeting acquisitions in the STACK/SCOOP/MERGE plays of the Eastern Anadarko Basin in Central Oklahoma. These three plays include multiple vertically stacked oil-prone reservoirs such as the Oswego, Springer, Meramec, Osage, Sycamore, and Woodford formations.

Ventana launched its organic acquisition strategy in late-2016, originally targeting a portfolio of 5,000 acres by the end of 2020, but achieved that goal nearly two years ahead of schedule.

“It is a buyer’s market right now and Ventana is in an enviable position with a substantial existing portfolio of diversified interests providing an information advantage, no leverage, and significant equity dry powder. At Starwood, we are proud of what the team has accomplished and believe the future is bright,” said Russell Bennett, head of oil and gas at Starwood.

“This is an exceptional operating team with strong local ties,” said Evan Harwood, Managing Director at Equity Group Investments, and a Director of the Ventana board. “Together we have a substantial foothold to pursue attractive long-term investments in the STACK/SCOOP/MERGE.”

Meanwhile, in other activity, a relatively new name in the SCOOP STACK expressed its satisfaction with the region’s promise.

Brookside Energy Limited, Perth Australia is operating in the SCOOP STACK

Brookside Energy Limited, a exploration and production company that is headquartered in Perth, Australia, but that operates in Oklahoma, ended a productive first quarter with good results and some enthusiastic talk about what their future in the Sooner State holds. Brookside Managing Director David Prentice said; “We continue to build on the momentum we gathered in 2018 and it is particularly pleasing to report on the great progress we are making as we transition to an operator in our SWISH AOI in the SCOOP Play.

“The strong cash contribution from the Bullard well this quarter and the emergence of the pipeline of low-risk development or infill wells that are emerging from within our nonoperated STACK Play holdings add substantially to our already successful land and leasing business model.”

 

EIA releases May’s U.S. Short-Term Energy Outlook

The Administrator of the U.S. Energy Information Adminstration, Dr. Linda Capuano, issued the following comments about the May 2019 Short-Term Energy Outlook (STEO). EIA released the monthly forecast on Tuesday, May 7.

Oil markets:

“In the May Short-Term Energy Outlook, EIA increased its forecast for average Brent spot prices in 2019 and 2020 by about $5 per barrel. The increase accounts for near-term tightness in oil markets and increasing supply disruption risks in several oil producing countries.”

“EIA expects some tightness in global oil markets during the second and third quarters of 2019, but anticipates that growing production in the United States and key OPEC countries will ensure that global supplies continue to meet demand moving forward.”

“EIA expects drilling activity in the United States to increase in response to recently rising crude oil prices. EIA’s May forecast now expects U.S. crude oil production to reach an average of 13.4 million barrels per day in 2020, up 300,000 barrels per day from April’s outlook.”

“According to the May outlook, EIA still expects that the United States will begin exporting more petroleum and other liquids than it imports in the fourth quarter of 2019, continuing for the foreseeable future. The shift toward becoming a net petroleum, and other liquids, exporter marks a first for the United States since 1948.”

Natural gas production:

“EIA continues to forecast that U.S. dry natural gas production will reach new records in 2019 and 2020. The forecast indicates that this year will mark the first time U.S. production will exceed an average of 90 billion cubic feet per day.”

Electricity natural gas:

“In the May outlook, EIA continues to forecast that the share of utility-scale electricity generation from natural gas will grow over the next two years. By 2020, natural gas-fired power plants will produce nearly 38 percent of all U.S. utility-scale generation.”

Electricity renewables:

“EIA forecasts that U.S. electricity generation from renewables, including hydropower, will generate about 20 percent of all U.S. power by the end of 2020. Within the renewables mix, the forecast suggests that wind power will overtake hydropower this year as the leading source of renewable energy.”

Electricity nuclear:

“The EIA’s May Short-Term Energy Outlook, forecasts that nuclear’s share of U.S. utility-scale electricity generation will hold at 19 percent through 2020.”

Electricity coal:

“EIA’s May outlook forecasts that coal’s share of U.S. utility-scale electricity generation will decrease to 24 percent in 2019, and to 22 percent in 2020.”

Emissions:

“The May outlook forecasts that energy-related carbon dioxide emissions will decrease by 2.1 percent in 2019 and a further 0.8 percent in 2020. EIA attributes a significant part of this decrease to milder expected weather and to the growing use in the power sector of natural gas, which emits less CO2 than coal. This forecast, however, is sensitive to external factors, such as weather and economic activity.”

 

Oil Industry Websites: 2019 could be your year to no longer be “under the radar.”

2019 could be your year to no longer be under the radar without a website.
[ut_header style=”pt-style-1″ align=”left” font_size=”30″ title=”A TYPICAL REFRAIN”][/ut_header]

It’s been a typical refrain from oilmen for a decade, maybe decades. Anytime you ask them why their company doesn’t have a website, they respond with,

“Oh, we just like to operate under the radar.”

And honestly, when you look at the antagonism oil and gas has had to deal with over this period, you can understand why they have been inclined to feel that way. They’ve been vilified by anti-frac’ing protestors. They’ve seen their compliance workloads escalate in the wake of heavier regulatory burdens. As an industry, they’ve been picked on by lawyers employing sue-and-settle tactics to make money, all under the guise of pushing endangered species listings. They’ve had their facilities surveilled with FLIR cameras and then been declared polluters – often groundlessly.

So they’ve hunkered down and decided, many of them, to stay out of the limelight. Why invite scrutiny, when you feel like you have a public out there that has it in for you?

The truth is that most of the public has no such hostility toward oil and gas. But aside from that, there are other reasons why it might be time to rethink this strategy that oil companies often have, of staying “under the radar.”

A website: your first, best shot

If that line of thinking ever served them in the past, the reasons to think otherwise are becoming more and more compelling. One flaw in the old ways of thinking is that those companies likely were misleading themselves in thinking they were achieving any kinds of safeguards. The truth is, no adversarial individual or agency was ever likely to begin any fault-finding with an oil or gas company by looking at that company’s website.

It was never a case of, “Oh, I see they have a website! I’ve got them now!” Not having a website is no real defense.

If an entity out there was ever going to make trouble for an oil and gas-related business, such trouble likely would start from finding some evidence of actual wrong-doing, and that sort of finding would be out in the field, not in a Google search. If an environmentalist, say, spotted an oil spill, he might then raise a hue-and-cry against the offender. But he wouldn’t be likely to start trouble against any business simply because that business maintains a site. If anything, a website would be that business’s first, best shot at making its true character known.

follow the flock

Truth be told, your peers are abandoning the “fly low” mantra. They are flocking to the digital revolution that has transformed the oilfield as a result of the convergence of two parallel phenomena: the “Great Crew Change” and the Internet of Things (IoT).

The “Great Crew Change” is a phenomenon that is revolutionizing the oilfield. As the industry’s older generation – Baby Boomers, most of them – keep retiring, the field is being left to the younger entrants. Millennials and Gen Z workers are filling the void, and these workers were raised on the internet.

The Internet of Things (IoT), meanwhile, is the web-based network of devices, sensors, and software that have been brought to play as the industry has revolutionized its technology base. The so-called Digital Oilfield is a manifestation of what the IoT is doing in O&G. Increasingly, devices and computers are interconnected in greater and greater breakthroughs of efficiency and optimization.

Into a digital dependence.

These changes have thrust the once-lagging industry into a digital dependence.

And if these reasons are not enough to convince O&G-related businesses to get with the times and get their websites launched or updated, there is the fact that O&G is in a hiring battle with all other industries for qualified help. And it is hard to attract good, tech-savvy help when one’s own company does not deal in 21st century tools.

For all of these reasons, there is a stampede going on, within oil and gas especially, to get websites established and get companies on the digital map with an established and active web presence.

Oilfield digital dependence. (1)

it might be time to ask yourself...

And so, if you are one of those companies who have held onto the “under the radar” mentality, it might be time for you to ask yourself if you really want to be the outlier in that scenario. Do you want to wait another five years and be five years further behind the curve in terms of being found online and in terms of having any kind of name recognition or domain authority? Some of your peers are spending significant amounts of time and money to develop a presence on the web.

The question becomes, do you want to be around in five years?

[ut_header style=”pt-style-3″ align=”left” font_size=”30″ title=”6 WAYS A WEBSITE CAN WORK FOR YOU” css=”.vc_custom_1557255639017{border-top-width: 1em !important;}” title_color=”#000000″][/ut_header]

1. Use Your Website to Differentiate

You know you need to cut through the clutter out there and get your brand recognized for its clear and distinct differences and advantages. Your competition will want to blur the differences, and they’ll want to make themselves sound like they’re just as good, if not better, than you are.

2. Use Your Website to Educate

Put your website to work for you by telling your story—a story no one else can tell. Use your website to tell your company’s story through testimonials, case studies, anecdotes, statistics, successes, and many other angles. Educate your potential work partners in regards to what makes your company uncommon. Cultivate your customers with content on your website (this is called “content marketing”) in order to gain new business and strengthen long term working relationships. (Learn more about the importance of content marketing for oil and gas.)

6 ways an oil & gas website can work for you

3. Use Your Website to Dominate

A place to call your own: that’s what your website is on the Internet. When you own the URL (web address), then what you build on it becomes assets that completely belong to you. Unlike the “rented” ground, or rented audiences, you encounter with Facebook or Wix or Weebly, or with audiences that you reach with purchases of traditional media – audiences that are no longer yours when you stop “paying-to-play” – your website is all yours and your efforts there accrue to you.

On your own site, all the messages, images, and information you publish are totally in your control.

Let your site function as the hub of your activity online. Because you have jurisdiction over your site, use that power to your advantage. Set out with a goal to build your website up to where you “own” your niche online within the industry. As we have already noted, businesses in the oil and gas industry have been slow carve out their online real estate. They have been slow to build their online presence. But that is changing rapidly. This is the shift we have seen with companies realizing that the new generation of O&G workers are turning to their devices to discover contacts and resources. It is another advantage you can exploit yourself. You can get in and stake your claim.

4. Use Your Website to Establish Authority

The winners in this new communication playing field are the companies who frequently publish informative and helpful resources on their website. These frequent content updates build your reputation online and give Google more occasions for sharing your website content with online searchers seeking answers to their web queries. (Making progress in this direction is called building “domain authority.”) Plus, you will benefit from other tactics such as “link building.” Link building occurs when you share links (webpage addresses) from your site, putting them out into circulation via messaging you do outside your website, in efforts on social media, or in email marketing, or in news releases. Readers who click on those links are brought back to a specific page (a landing page you created) on your website. Thus, your website increasingly becomes the “hub” of everything you do online.

5. Use Your Website to Attract New Talent

You can cultivate new hires before they ever submit a job application. Use your website to entice the top talent to want to work for you by dedicating a portion of your website to your company culture. Show them your company values. Tell them of your company benefits. Let some of your own team relate their experiences of why they work for you. Then, make it easy for the interested applicants to submit an online application right from a job board built into your website. (Learn more about using your website to attract new job candidates.)

6. Use Your Website to Communicate with Customers

Don’t let dropped communication or lost job tickets hurt your business. Use your website as a centralized location where messages can be tracked and documents can be stored and retrieved in the office or in the field from a device.

Portals – Your company can have a mobile friendly online portal for storage of important documents. Always have the latest version available. Set permissions for different users and control who has access to which documents. Use the portal for documents that need to be shared amongst your team members or shared with customers.

Job Tickets – Add job ticket software to your portal and manage everything from one cloud-based place on your website. Track the job status and even assign team members to team managers for better job monitoring.

[ut_header style=”pt-style-2″ align=”left” font_size=”30″ title=”BACK TO THE QUESTION: DO YOU WANT TO BE AROUND IN 5 YEARS?”][/ut_header]

Building a website is not a guarantee that you will still be in business in five years. However, not building a website does lay the odds in favor of the other guys who do.

It’s a good choice to invest in building your online presence and using your website as your hub. It is the starting place for the best possible program for jumping out ahead of the pack.

We want to be your partner. Let’s talk about how to get started.

Put OK EM to work for you with a new website.

Share on Social Media.

SCOOP, STACK Plays Flourish, Per Continental’s Report

SCOOP, STACK Plays Flourish, Per Continental's Report

Citing good 1st quarter results in both the SCOOP and STACK resource plays, as well as in other plays where they are active, Continental Resources released its quarterly financial figures April 29 with the announcement that its performance has “underscored the company’s formula for success.”

Continental’s SpringBoard Project charted oil growth that is ahead of schedule, with the company’s first six Woodford wells averaging initial rates of 1,660 barrels of oil equivalent per day (Boepd) per well. The Oklahoma City-based oil giant also observed that its STACK wells continue to deliver outstanding results.

Overall, the company reported net income of $187 million, or $0.50 per diluted share, for the quarter ended March 31, 2019.

“Continental’s outstanding first quarter 2019 results reflect our commitment to our formula for success. The combination of high quality Bakken and Oklahoma assets with efficient, low cost operations translates to strong corporate returns and sustainable cash flow generation,” said Harold Hamm, chairman and chief executive officer.

Harold Hamm, Chairman and CEO, Continental Resources
Harold Hamm, Chairman and CEO, Continental Resources

Daily Oil Production up 18% over 1Q18

First quarter 2019 production increased 16% over first quarter 2018, averaging 332,236 Barrels of Oil Equivalent (Boe) per day. First quarter 2019 oil production increased 18% over first quarter 2018, averaging 193,921 barrels of oil (Bo) per day. First quarter 2019 natural gas production increased 12% over first quarter 2018, averaging 829.9 million cubic feet (MMcf) per day.

SpringBoard: Ahead of Schedule

The Company’s first quarter 2019 SCOOP production increased 9% over first quarter 2018, averaging 67,659 Boe per day. The Company completed 15 gross (13 net) operated wells with first production in first quarter 2019.

Project SpringBoard oil production is growing ahead of schedule, averaging ~14,000 Bo per day in the first 28 days of April 2019. The Company has updated its SpringBoard oil production growth target to 18,000 Bo per day in third quarter 2019, compared to the initial target of 16,500 Bo per day. Cycle time improvements and higher early time well productivity are accelerating production growth and enabling the Company to achieve its objectives for 2019 with 25% fewer rigs. The Company currently has 9 rigs drilling, 33 wells waiting on completion and 39 wells producing in Project SpringBoard.

In first quarter 2019, the Company completed the first 6 Woodford wells in Project SpringBoard, which flowed at a combined initial rate of 9,960 Boe per day, averaging 1,660 Boe per day per well, which includes 1,245 Bo per day per well. These wells are currently outperforming the legacy 1.5 MMBoe Woodford legacy oil type curve.

How the STACK Stacks Up

Continental’s first quarter 2019 STACK production increased 6% over first quarter 2018, averaging 56,513 Boe per day. During the quarter, the company completed 9 gross (5 net) operated wells with first production in 2019.

In the over-pressured condensate window, the 5-well Tolbert unit flowed at a combined initial rate of 18,700 Boe per day, averaging 3,740 Boe per day per well, which includes 1,180 Bo per day per well. In the over-pressured oil window, the 3-well Lugene unit flowed at a combined initial rate of 9,270 Boe per day, averaging 3,090 Boe per day per well, which includes 1,540 Bo per day per well. The Tolbert unit was developed with 2-mile laterals and the Lugene unit with 1-mile laterals. Continental also completed its first 3-mile Meramec well in STACK. The Blondie 1-6-7-18XHM 3-mile lateral flowed at an initial rate of 3,400 Boe per day, which includes 2,460 Bo per day per well.

Financial Update

“Continental’s capital-efficient and highly productive first quarter 2019 results underscore our commitment to delivering shareholder value in 2019. We are extremely pleased with our execution on cost metrics and the potential for favorable updates to these targets later in the year,” said John Hart, Chief Financial Officer.
Continental Resources 1st Quarter 2019 Chart
Continental Resources 1st Quarter 2019 Chart

As of March 31, 2019, the company’s balance sheet included approximately $264.4 million in cash and cash equivalents, $5.77 billion in total debt, and $5.50 billion in net debt (non-GAAP). The company anticipates further reducing net debt to $5 billion in 2019.

In first quarter 2019, Continental’s average net sales prices excluding the effects of derivative positions were $50.05 per barrel of oil and $2.56 per Mcf of gas, or $35.56 per Boe. Production expense per Boe was $3.59 for first quarter 2019, below annual guidance of $3.75 to $4.25 per Boe. Total G&A expenses per Boe were $1.60 for first quarter 2019, also below annual guidance of $1.70 to $2.00 per Boe.

The company’s first quarter 2019 crude oil differential was $4.77 per barrel below the NYMEX daily average for the period, a 43% improvement over fourth quarter 2018 and within annual guidance of $4.50 to $5.50 per barrel. The wellhead natural gas price for first quarter 2019 was $0.60 per Mcf below the average NYMEX Henry Hub benchmark price. The company expects further improvement to the natural gas differential in 2019.

Continental realized approximately $13 million of cash gains from natural gas hedges in the first quarter. For the balance of 2019, natural gas is hedged 577,000 MMBtus per day at an average NYMEX Henry Hub price of $2.80.

Non-acquisition capital expenditures for first quarter 2019 totaled approximately $750.2 million, including $631.1 million in exploration and development drilling and completion, $14.8 million in leasehold, $51.3 million in minerals, of which 80% was recouped from Franco-Nevada, and $53.0 million in workovers, recompletions, and other. Continental’s first quarter capital expenditures reflect an accelerated pace of development due to improved cycle times and efficiency gains which resulted in 8 more net wells being completed and 6 more net wells being spud during the quarter than budgeted while using the same number of rigs and completion crews. The company maintains its $2.6 billion capital expenditures guidance for 2019.

Continental Resources is a top 10 independent oil producer in the U.S. Lower 48 and a leader in America’s energy renaissance. Besides being the largest leaseholder in the Bakken play, the company also has significant positions in Oklahoma, including its SCOOP Woodford and SCOOP Springer discoveries and the STACK plays. For more information, visit www.CLR.com.

Put OK EM to work for you with digital marketing.

Refine Your Oil & Gas Hiring to Attract the Best Job Candidates

How to Find the Best Oil & Gas Job Candidates

Hiring is everybody’s problem in oil and gas. For those who are working in the SCOOP/STACK, the situation is not any different. The problem for oil and gas is two-fold. One, when times are good in the industry, qualified applicants are in short supply, and job poaching is rampant. So, competition is tough. Two, the industry’s workforce is heavily skewed to senior, late-career workers and youthful entrants, with relatively few workers falling in-between.

This condition makes for an oil & gas hiring challenge in that many Baby Boomers are retiring out of the industry, and leaving a void of experience, not to mention a void of bodies, in their wake.

Shifting Priorities

Young people did flock to oil and gas over a short timeframe. Between about 2009 and 2014, many young people entered the O&G workforce. But since then, young people have not been so enthusiastic about a career in the industry. As recently as five years ago, oil opportunities were dwindling and those entering the workforce looked elsewhere to establish their careers.

Today, as the United States has re-ignited as a world leader in oil and gas production, your industry finds it is not well-prepared. And your outfit might be in that very same tight spot. Maybe you didn’t attract your share of new folks to replace the Baby Boomers who are outbound.

Consequently, this somewhat sudden leap to international leadership has created a vacuum in a workforce pipeline that needs to be filled.

How can you reach today's job seekers?

The generation of folks who are roughly 22 – 38 are the Millennials. Born in the 1980s and ’90s, these potential hires have grown up with computers, and are daily dependent on the Internet that they carry with them. They would rather text than talk. These individuals “check in” instead of dropping by. They “face time” instead of having real honest-to-goodness face-to-face time. (Learn more from the “Workforce of the Future Survey.”)

Digital Dependence

Because they are dependent on digital dialogue, you need to make certain that your company has an opportunity to be a part of the conversation when it comes time to fill a position with your outfit. And if you want the top notch hands out there, you need to at least speak their language.

5 Steps to Whip Your Website into Shape for Job Seekers

Start by making sure your website reflects the heart of your company. Are you old school and out of date? If so, it’ll show in your website. Are you using modern technology to accomplish your oil & gas hiring needs? Your website needs to look modern and appealing enough to outshine the competition.

  1. Make sure your company has a website. Many oil-related companies do not have a website at all, but this is changing rapidly. Don’t get left behind. (Learn more about O&G Websites.)
  2. Make sure your website can be found on search. Of the companies that do have a website, most are not optimized for search nor optimized for mobile viewing.
  3. Make sure your website can be found on social media. Of the Millennials – those 22-38 year olds – 73% found that last position through a social media platform. And Twitter is by far the most effective platform. Linking the job seekers back to your website to fill out the application further strengthens your company’s messaging to the recruits.
  4. Make sure your website tells that job candidate what is different about your company. As an example, Devon Energy does a fantastic job of enticing candidates to want to work for their company.
    1. Why should he/she choose to apply for your job instead of another job at “Oil Company X” down the road?
    2. What are your benefits?
    3. What is your company culture? Is it a place where you would want your son or daughter to work? Then let the candidates know that.
    4. Are you involved in the community? What are your company values? What is your safety record?
  5. Make it easy to apply. Integrate a job board into your website and an online application into your site.

PUT A JOB BOARD ON YOUR WEBSITE

Since you are making a case on your website for why that quality candidate should apply for your open job, why would you want to link them off of your website to a 3rd party job listing? Give them the tools to apply for the job right on your website with an online job application built in.

While a very few may want the option to download the job application, print it out, fill it out by hand, and mail it back in to you, remember, you are trying reach the Millennials. Now that you have done a good job of convincing them why they want to work for you, they will want to take the easy step of spending just 3-4 minutes to fill out the application online and submit it you immediately.

Insofar as you are concerned, it’s good customer service. Where they are concerned, you’ve just sent them a message that you value efficiency.

Easy-to-Use for the Employer

With your own custom job board, you can easily manage all your oil & gas hiring steps right on your own website.
  • Add new job listings
  • Place job listings into categories such as by location or by skill set
  • Search and filter your job listings
  • Mark job listings as “filled”
  • Delete job listings as necessary

Simple Form - Add a New Job Listing

As the employer, you, or your HR manager, can easily submit and manage job listings.
  • Job Details – The form allows you to input job details, including job description, job location, and details about your company.
  • Email Address – Each listing can be assigned an email address that job seekers can use to apply to the job.
  • Preview Listing – You can preview the listing before it goes live. The preview matches the appearance of a live job listing. After preview, you can publish the listing or edit it further.
Easy-to-Add a Job Listing

Easy-to-Use for the Job Seeker

Each job listing shows the job description and company information in a clean format.
  • Google Map – The job location can link through to a Google map
  • Company Info –  The company information section can show your company tagline or link to your Twitter account.
  • Online Application – Job seekers can quickly and easily fill out your customized job application while on your website
  • Apply Now” Button – An “Apply Now” button is shown beneath the job listing and can be clicked to reveal your online application or your email address.

Search and Filter Oil & Gas Job Listings

Job seekers can search your job listings by:
  • Category
  • Job type
  • Keywords
  • Location
Search and filter job listings

Job Seekers Stay Connected

Our search feature allows job seekers to stay informed when you post new job openings. They can subscribe to a feed containing new jobs that match their search criteria, and they will be automatically notified when you post a new job listing.

In the end, you are ahead of the game when you use your website as a recruiting tool. Your content will build a strong case to job searchers as to why your company is the best place to work. Then, your job will be to choose the best from the pack of top-notch job seekers who apply for your open positions.

Let’s talk about how to turn your website into a recruiting tool for your oil & gas hiring needs.

Request more information or give us a shout.

Put OK EM to work for you with digital marketing.

What Social Media Platform are You According to Your Enneagram Type?

The Enneagram Personality Model is a psychological self-analysis that identifies any individual as to what personality type that person exhibits, from among nine different types. Just like people, social media platforms have grown personalities of their own that distinguish them each from one another. Although social media users find it necessary to utilize most if not all social platforms to keep their marketing machine running smoothly, those same users will show a definite preference for one specific social media platform over another, based on that user’s Enneagram profile. Therefore, a social media enneagram just might be a thing.

The Enneagram Test reveals not just your basic personality traits but also your basic fears and desires. If you would like to learn more about the Enneagram system or take the test to learn your type, you can do so here!

The Enneagram is a dynamic, growth-oriented inventory that aims to pinpoint one’s basic fears and motivations, in order to facilitate personal growth through a specific trajectory.

Enneagram graphic

So we ask, what social media platform are you based on your Enneagram type?

 

Social Media Enneagram: LinkedIn – Types 1,3,5,8

For business not pleasure. Educational and informative content pertaining to business, work, and careers. More serious and purposeful.

Content you might find on on the social media enneagram of Linkedin:

  • Articles from businesses and industry outlets
  • Resumes
  • Job postings
  • Blog posts

Explanation:

If you’re a Reformer, Achiever, Investigator, or Challenger, you probably identify most with Linkedin. Whether you’re a rational perfectionist or someone who is purposefully principled, intensely innovative, or willfully self-confident, you probably find yourself sharing articles from Forbes or promoting your companies latest blog post. You are a thought leader and you may also be taking advantage of Linkedin targeting capabilities to grow connections within your industry.

 

Social Media Enneagram: Facebook – Types 2,6,9

The melting pot of social media. A wide variety of interests and shareable content. Entertaining, social, sharing feelings.

Content you might find on Facebook:

  • Memes
  • GIFs
  • Animal videos
  • Political views
  • Vacation albums
  • Family/kid albums

Explanation:

If you’re a Helper, a Loyalist, or a Peacemaker, you probably identify most with Facebook as your social media enneagram.  Whether you’re interpersonally pleasing, engagingly committed, or receptively easy going, you probably find yourself posting photos from your family vacation, sharing one (or 10) of those cute animal videos, and liking and commenting on all of your friends’ posts. You like to share your own thoughts and feelings while creating and engaging in meaningful interactions.

 

Social Media Enneagram: Instagram – Types 4,7

Have a clever caption or don’t have one at all. Showing one’s day-to-day moods in a self-reflective and aesthetic fashion. Aesthetics are very important to this platform. People create an image on Instagram.

Content you might find on the ‘Gram:

  • Outfit of the days
  • Food/drink
  • Flat lays
  • Memes
  • Workouts
  • Play by plays via Stories

Explanation:

If you’re an Individualist or an Enthusiast, you probably identify most with Instagram. If you strive to express individuality, and avoid missing out on experiences, then you probably find yourself posting your favorite outfits, food, beverages, and music choices while keeping your stories constantly updated on what you’re up to. Aesthetics and captions are important to you, and these, when expressed to best advantage, help with maintaining a certain image that you can portray through the platform that is your social media enneagram.

So mix it up and level it out

Because these platforms are differentiated by their own personalities, it is vital that you utilize all of them to keep yourself and your business well rounded. Different types and personalities level each other out. Therefore just as you wouldn’t want a company made up of only achievers or only enthusiasts, you don’t want all of your content to go through ONLY Linkedin or ONLY Instagram. A healthy mix is the key to success!

Oilfield Trend Gives Impetus for Website, Newletter Startup

OK Energy Media releases website and 1st newsletter publication.

 

THE GREAT CREW CHANGE

Citing the influence of the phenomenon some are calling “The Great Crew Change,” the founders of just-launched OK Energy Media have gone live with their website okenergymedia.com and have circulated the first edition of the SCOOP/STACK Journal, an enewsletter serving the oilfield in the Sooner state.

 

The “Great Crew Change” is the phrase used to describe the workforce turnover currently affecting the oilfield—and other industries as well—as a generation of Baby Boomers enters retirement and leaves in their wake a sizable age gap—and skills gap—that separated them from their still-employed younger peers.

 

THE AGE GAP

The age gap is the fallout of nearly three decades of relatively low levels of entry-level hiring, a phenomenon that began with the oil bust of the early 1980s and lingered until the hiring boom that came with the shale revolution of the late aughts. That has meant that the age configuration of the current oil patch is weighted very “senior” and very youthful, with little in-between.

 

All of this has meant that the wave of retirements now happening in the oilfield is bringing about a dearth of long experience, but is ushering in a focus on millennials and on a more tech-savvy, digitized oilfield.

 

RESEARCH OF 100 O&G COMPANIES IN OKLAHOMA

OK Energy Media conducted a study of 100 oil and gas-related businesses working in Oklahoma and found a void in the digital presence within the Oklahoma oilfield community, according to Kit Mullins, founder of the business. “We’re covering that niche, and advocating for it, and serving it as marketers for those businesses that want to cast a wider online net to communicate with a youthful digital audience,” she said.

 

Mullins said that until recent times, oil professionals and their companies communicated with each other almost exclusively through word of mouth, or through the “good ol’ boy” network, or through published directories or other traditional media. That has changed, she said. Millennials, who are ever-more-important in the oilfield, connect via devices, and have little interest in non-interactive traditional media.

 

As for targeting Oklahoma, that was a calculated decision, Mullins said.
“We passed over Texas—even though we live in Texas—and passed over all other major oil regions in favor of concentrating on the SCOOP STACK, because we feel that Oklahoma’s oil patch is vibrant but underserved and undervalued, and therefore ripe for this kind of attention.
“Also, we have people working here who either grew up in Oklahoma or spent part of their adult lives there, so we have some direct familiarity with the state,” Mullins said.

 

OK Energy Media maintains its website at okenergymedia.com. The SCOOP/STACK Journal is available free to anyone wishing to subscribe. A signup page can be found online at jemully.com/Scoop-Stack-Journal. The pilot issue of the Journal includes an article on the Oklahoma rig count, a review of the oilfield-themed motion picture The Iron Orchard, a look at “The O&G Workplace of the Future,” and other content.

 

FOR MORE INFORMATION, CONTACT:
Kit Mullins
OK Energy Media
1049 North Third, Suite 405
Abilene, TX 79601
325.261.9460
editor@okenergymedia.com