FUELING UTAH’S GROWTH AND PROSPERITY The Official Publication of the Utah Petroleum Association Publication 4 | 2022-2023 | Issue 3 UPDATE How Many Petroleum Products Did You Use Today? WHAT’S GOING ON WITH FEDERAL LANDS?
5128 Apache Plume Rd., Suite 300 Fort Worth, Texas 76109 ESG Impact - Flare intensity reduced by 88% since October 2019 ~180 Employees in the Uinta Basin Wildcat Rail Terminal - Preparing for expansion to allow export of more than 30k Bbls/Day Wildcat Sand Plant- Annual processing capacity of 950k tons Gross Production– Over 25k BOEPD
Contact us today to place your announcement ad Who to congratulate , who to acknowledge , and who to thank for a job well done. Employees are motivated when they are recognized and feel valued. The UPDATE magazine is a great platform to celebrate your team's accomplishments! celebrating the past, fueling the future We’re proud of our role in Utah’s history. We are innovating for reliable, safer, and ever-cleaner energy in our state. 3 UPDATE
Summary FUELING UTAH’S GROWTH AND PROSPERITY 06. WHO WE ARE 07. PRESIDENT’S MESSAGE How I Spent My Summer Vacation 08. SITE TOURS 10. UPA OIL & GAS CLASSIC RECAP 12. UPA STROKE OF LUCK CHARITY GOLF MIXER WRAP-UP 14. WHAT’S GOING ON WITH FEDERAL LANDS? 16. HOW MANY PETROLEUM PRODUCTS DID YOU USE TODAY? 18. SAFETY & ENVIRONMENTAL AWARDS Call for Entries 20. THANK YOU CHAIRMAN'S CIRCLE MEMBERS 22. WILDLIFE & ENERGY PHOTO CONTEST Call for Entries SITE TOURS 8. UPDATE 4
WHAT’S GOING ON WITH FEDERAL LANDS? 14. ©2023 Utah Petroleum Association (UPA) | The newsLINK Group, LLC. All rights reserved. UPDATE is published four times each year by The newsLINK Group, LLC, for the UPA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the UPA, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The UPDATE is a collective work, and as such, some articles are submitted by authors who are independent of UPA. While UPDATE encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. 16. HOW MANY PETROLEUM PRODUCTS DID YOU USE TODAY? UPDATE 5
The Utah Petroleum Association (UPA) is a Utah-based, statewide petroleum trade association representing companies involved in all aspects of Utah’s oil and gas industry. We exist to serve our member companies and advance the responsible development of Utah’s natural resources and manufacture of fuels that drive Utah’s economy. Mission Statement Executive Committee Who We Are UPA Administrative Staff & Office Jennette King, Administrative Assistant Rikki Hrenko-Browning, President Josh Demorrett, ConocoPhillips Kristina Brown, Chevron Josh Jemente, HF Sinclair Kristen Lingley, Caerus Oil and Gas Brad Shafer, Marathon Petroleum Mike Swanson, Big West Oil (Chair) Lauren Brown, XCL Resources Mike Platz, Silver Eagle Refining Drew McCallister, Greylock Macey Wallace, Ovintiv Jason Ashmun, Javelin Energy Partners Cameron Cuch, Uinta Wax (Vice Chair) 6 UPDATE
How I Spent My Summer Vacation is the title of a 1967 film starring Robert Wagner, Peter Lawford, Jill St. John and a number of other well-known film personalities. It was one of the first movies ever made for TV. It’s also the title of a whimsical children’s book published in 1997, a song released in 2000 by alternative band The Ataris and a 2001 album by New Jersey punk rock band The Bouncing Souls. Unless you’re a big-time fan of any of those pieces of pop culture detritus, when you hear the phrase “How I Spent My Summer Vacation,” you probably think of the stale old prompt teachers give their students upon returning to school to get them back in academic mode. Fun in the sun is over, Janie. Time to write an essay and present it to the class. Ugh. I’m not going to make anyone write an essay about their summer, nor am I going to tell you about mine specifically (although, it bears mention that you’ll see quite a bit in this issue about our many events from the past months). What I am going to do is express gratitude for the abundance of natural resources around and under us that makes living, working and playing in Utah such a joy. Fossil fuels are integral to our lifestyle, our prosperity and, yes, our fun. The multitude of ways are legion. Gasoline and other refined products grant us the mobility and freedom to explore the many corners of our state, country or beyond and enjoy them. Whether it’s a simple jaunt to the trailhead, or a longer expedition to one of the underexplored nooks just waiting to be discovered, our ability to travel efficiently and autonomously is indeed a gift. But we are so much more than just fuels. According to the U.S. Department of Energy, “Petrochemicals derived from oil and natural gas make the manufacturing of over 6,000 everyday products and high-tech devices possible.” If we’re exploring the outdoors, we wouldn’t want to be without our sleeping bags, our backpacks, our camera, our coolers, our sunglasses or our portable cook stoves (which includes a supply of clean-burning natural gas as our fuel), would we? How about fun stuff? Recreational equipment from bicycle components to water skis to the simple Frisbee HOW I SPENT MY SUMMER VACATION President’s Message Rikki Hrenko-Browning owes its existence to the refining and production of oil and natural gas products. When it comes to our most cherished spaces — our National Parks and our public lands — oil and natural gas production has a hand in protecting those, too. Thanks to the landmark 2020 federal Great American Outdoors Act, The National Parks and Public Land Legacy Restoration Fund was established to address the deferred maintenance and repair backlog on public lands. It was authorized at up to $1.9 billion annually for five years from fiscal year 2021 to fiscal year 2025. The act also established permanent full funding for the existing Land and Water Conservation Fund of $900 million annually. Where does that money come from? You guessed it: energy development. These programs are financed by 50% of all energy development revenues from oil, gas, coal or alternative or renewable energy development on federal land and water. It’s posited by some that conservation and energy development cannot co-exist peacefully. Nothing could be further from the truth, and our track record over the last several decades proves this wrong definitively as we have both had robust energy growth while ensuring protections for our shared spaces of beauty and recreation. The narrative of choosing one or the other is a false binary, and it’s one we constantly find ourselves battling against not only in the court of public opinion but in actual courts as well, considering the federal government isn’t keen on issuing permits, holding lease sales or even sending a clear and consistent message as it pertains to energy development on federal lands. Bringing this back to our local industry, consider this issue of UPdate our essay on how we spent our summer vacation. You will find a recap of many of our events, some federal policy updates and as much fun as we’re legally allowed to put into the quarterly newsletter produced by a professional trade association. Enjoy the issue. 7 UPDATE
Getting back to our summer essay assignment, we spent the “time off” educating as many state leaders as we could about how the oil and gas industry works, the record-breaking growth the state is seeing, the benefits a robust oil and gas industry brings to the state and local communities and the challenges we will need to overcome in order to keep growing. Coming off a successful and very well-attended legislative tour last fall, UPA partnered to host three additional site tours this summer for our state and local elected officials, key executive branch individuals and other important stakeholders. We owe a huge thanks to all those who attended and, most importantly, to those who hosted us and helped us organize these unique opportunities, including XCL, Javelin, Finley Resources, Uinta Wax, Caerus Oil and Gas, Wildcat, DOGM, Uintah County, Duchesne County and UB Tech. These site tours are critical in giving legislators an opportunity to “kick the tires” and get a better understanding of critical Site Tours UPDATE 8
issues — whether that be how we have driven technology changes that allow us to drill for miles horizontally, how we are reducing emissions while increasing production or how the $88.5M the legislature appropriated in the 2023 session supports the basin’s ability to continue safely exporting product to rail facilities and on to other markets. The challenges are many, from the deluge of federal regulations that restrict production on federal lands and make it more costly to infrastructure challenges such as natural gas pipelines, running electricity to our production sites to reduce emissions, maintaining roads and expanding rail facilities so that we can continue growing production, not to mention workforce development, opportunities to recycle water and navigating the imminent ozone non-attainment status across the three jurisdictions in the basin. We’re excited to partner with the Energy Summit to include a site tour as part of their annual program, and we look for opportunities to partner with our legislature, regulatory agencies and communities to educate, advocate and continue to fuel Utah’s growth and prosperity! UPDATE 9
UPA Oil & Gas Classic Recap On Thursday, August 3, the UPA Oil & Gas Classic was held at Soldier Hallow & Wasatch Mountain Golf Course in Midway, Utah. Attendees enjoyed what thankfully ended as a beautiful day (despite the drenched start) of golf, networked with industry friends and promoted their businesses. A big thanks to all of the sponsors. We hope to see you at our next event. Please visit utahpetroleum.org to learn more about upcoming events. 10 UPDATE
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UPA Stroke of Luck Charity Golf Mixer Wrap-Up On Thursday, May 11, the UPA Stroke of Luck Charity Golf Mixer was held at Topgolf in Midvale, Utah. Attendees enjoyed playing a little golf, a delicious lunch, networking with industry friends and raising money for the Ute Tribe Education Endowment. A big thanks to the sponsors. We hope to see you at our next event. Please visit utahpetroleum.org to learn more about upcoming events. 12 UPDATE
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Our monthly Lunch & Learns happen on the last Tuesday of every month and cover a broad spectrum of topics. We’ve invited speakers to share their expertise about the federal government’s push toward public adoption of electric vehicles, the Waters of the U.S. rules and even the hotly discussed ESG criteria in the investment community. One of the most stimulating topics as it pertains to Utah is the federal government’s desire to prioritize conservation over all other uses on federal lands. The Federal Land Policy and Management Act (FLPMA) of 1976, requires “multiple use” on public lands. This means that every American has a place on public lands — whether a hiker, camper, cattle rancher or energy producer. Our nation’s wide-open spaces are available to be used in numerous ways. The Bureau of Land Management (BLM) has proposed new regulations that would prioritize the health and resilience of ecosystems across those lands. To ensure that health and resilience, the proposed rule provides that the BLM will protect intact landscapes, restore degraded habitat and make wise management decisions based on science and data. This seems like a good goal at first, but concerns have arisen, many raised by our panel of experts at the July Lunch & Learn: Troy Lyons, Vice President of Government Affairs at the American Exploration and Production Council; Jake Garfield, Assistant Attorney General and member of Utah Public Lands Policy Coordinating Office; and Natalie Randall, Executive Director at Utah Tourism Industry Association. The panel expressed concern about what “unintentional, unnecessary constraints” may result regarding public access if the rule is adopted. If conservation leases were granted, how might BLM define “casual” use of the land, which would possibly bar commercial guides and outfitters in the tourism industry, not to mention oil and gas or cattle grazing leases? Our President, Rikki Hrenko-Browning, added, “The reason that Utah has such large areas of intact landscapes is because our multiple use has been done so responsibly. It’s a little bit of a ‘no good deed goes unpunished’ issue — hurting those individuals who have been responsible for creating those intact landscapes in the first place.” Utah Petroleum Association will continue to monitor this issue and provide updates as they become available. WHAT’S GOING ON WITH FEDERAL LANDS? 14 UPDATE
15 UPDATE TRADES • Scaffold Services • Mechanical Insulation • Refractory Services • Industrial Coatings • EPC Heat Trace • Siding & Metal Roofing 720-517-6516 RFP/RFQs to: Sales@myHTI.com myHTI.com Helping Clients Succeed... With decades of legal experience in the natural resources industry, our mining, oil and gas, water, and environmental attorneys can help take your project from concept to completion. Visit parrbrown.com for more information, or contact one of our natural resources lawyers today. Providing comprehensive legal services for businesses and individuals including: 101 South 200 East, Suite 700 Salt Lake City, Utah 84111 www.parrbrown.com ◆ Environmental ◆ Mining ◆ Public Lands ◆ Water ◆ Oil & Gas ◆ Business Litigation David Reymann Marty Banks Dan Jensen Kass Wallin Steve Christiansen Matt Jensen
How Many Petroleum Products Did You Use Today? The petroleum industry keeps America moving, working, playing and so much more. Most people associate petroleum with just transportation, but every day, we use thousands of other products that are made from this integral natural resource. In fact, oil and natural gas are an essential part of our everyday lives. Almost 150 years ago, “Colonel” Edwin Drake discovered oil near Titusville, Pennsylvania, now known as the birthplace of America’s petroleum industry. This launched the industry and shaped the modern world as we know it. In 1872, Robert Chesebrough, a young chemist, patented a method for turning the waxy residue from oil wells into a balm. He called it Vaseline. Then, in 1913, Thomas Williams watched his sister, Mabel, mix Vaseline with burnt cork to color her eyebrows and lashes. This inspired him to create a cosmetic line, and before long, he was selling “Lash-Brow-Ine” by mail order catalog. His company went on to become Maybelline. Another interesting fact: until 1910, automobile tires were white. Then B.F. Goodrich Co. introduced carbon black into the vulcanizing process, which changed the color and dramatically increased the strength and durability of tires. The carbon black material came from a controlled combustion of both oil and natural gas. Today, there are well over 6,000 petroleum products being used in households and businesses across the country. 16 UPDATE
Because of the wide variety of products made possible by oil and natural gas, the U.S. consumed approximately 7.3 billion barrels of petroleum in 2022. Of that, 66.6% was for transportation, 27.5% for industrial, 2.8% for residential, 2.5% for commercial and 0.6% for electric power. According to The U.S. Energy Information Administration, it is projected that the total consumption of petroleum in our country will continue to increase through 2050. Ask yourself the question, how many petroleum products did you use today? Health & Beauty Products: Many of our personal care and hygiene products are derived from petroleum, including perfume, lipstick, foundation, eyeshadow, mascara, eyeliner, hair dye, hand lotion, toothpaste, soap, shaving cream, deodorant, pantyhose, combs, shampoo, eyeglasses and contact lenses. Household Products: Our homes are full of products that are produced using petroleum. Construction materials such as housing insulation, roofing and solar panels to linoleum flooring, furniture, appliances and home décor, like pillows, curtains, rugs, and house paint, and many everyday kitchen items, including dishes, cups, non-stick pans and dish detergent, all use oil in their creation. Electronics: Plastics and other petroleum-based products are used in electronic components because of their insulating and heat-resistant properties. Most electronics, including speakers, smartphones, computers, cameras and televisions, have components derived from oil. Medical Supplies: The healthcare industry relies on petroleum products. Plastics are used in a wide range of medical devices, including hospital equipment, IV bags, artificial limbs, dentures, hearing aids, heart valves and many more. Petrochemicals are relied on for pharmaceuticals and are key to many lifesaving medicines such as aspirin, antihistamines and antibiotics. Pharmaceuticals represent about 3% of petrochemical use, but nearly 99% of pharmaceutical feedstocks and compounds are derived from petrochemicals. Textiles: Clothing is commonly made from petroleum-based fibers, including rayon, acrylic, vegan leather, nylon, polyester and spandex. Even shoes and purses use petrochemicals for their durable, lightweight, and water-resistant properties. Sporting Goods: Most sports equipment contains some petroleum, including basketballs, golf balls and bags, football helmets, surfboards, skis, tennis rackets, sleeping bags and fishing rods. It is hard to comprehend what our lives would look like without oil and gas. Many of the items mentioned above are often taken for granted, but they are important for healthy and productive living in the 21st century. It is vital that we continue sharing the importance of petroleum to keep our industry growing and strong.
Thank You Chairman’s Circle Members Big West Oil is committed to be a top-tier refiner, marketer, and employer in the Rocky Mountain Region, focused on building lasting value through operational excellence, continuous improvement, and pursuit of internal and external growth opportunities. Uinta Wax explores and produces oil and gas. The company offers natural gas, crude oil and other related products. Uinta Wax serves customers throughout the United States. Chevron’s success is driven by our people and their commitment to getting the results the right way — by operating responsibly, executing with excellence, applying innovative technologies and capturing new opportunities for profitable growth. ConocoPhillips is the world’s largest independent E&P company based on proved reserves and production of liquids and natural gas. Ovintiv is a leading North American resource play company focused on oil and natural gas production, growing its strong multi-basin portfolio and increasing shareholder value and profitability. By partnering with employees, community organizations and local businesses. Greylock’s leadership is an experienced team with decades in the energy industry and possessing a wealth of knowledge and unmatched expertise relating to operations, particularly in shale development. HF Sinclair, headquartered in Dallas, TX, is an independent petroleum refiner and marketer that produces high-value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HF Sinclair produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. Marathon Petroleum Company is in the business of creating value for our shareholders through the quality products and services we provide for our customers. As a result, we strive to always act responsibly with those who work for us, with those business partners who work with us, and in every community where we operate. 20 UPDATE
Platinum Members Caerus is focused on creating a stable and scalable operating platform that will have “staying power” in an industry that is volatile, unpredictable and subject to rapid changes. Silver Eagle endeavors to be a good corporate neighbor, by assisting in positive ways with the Woods Cross and South Davis communities. Silver Eagle endeavors to work collaboratively with municipality governments, agencies and private groups to improve the quality of life within the immediate surroundings of our Woods Cross Refinery. XCL Resources is a private oil and gas company focused on maximizing risk‑adjusted returns on assets that require efficient development. Javelin Energy Partners is an independent energy company primarily engaged in exploring, developing, and producing oil, natural gas, and natural gas liquids in the Eagle Ford, Uinta, and Barnett shales. Our mission is to create a sustainable, transparent and returns-driven company. Finley Resources owns, manages and develops over 3,000 oil and gas properties in eight states. Our primary focus is on acquisition and development with a growing commitment to drilling programs. Altamont Energy was established in late 2017 by an experienced team of oil and gas executives to acquire and operate oil and gas properties in the Uinta Basin, UT. Our main development targets are the prolific Wasatch & Green River stacked formations. Scout Energy Partners is a private company with over 1,000 employees in eight different states. They recently became an operator in Utah and operate over 100,000 BOPED. We currently operate about 6,000 BOPED in Utah in the greater monument Butte Unit. 21 UPDATE
▪ Wildlife & Energy Photo Contest -- Call for Entries -- The premise that man and nature cannot co-exist, that where man encroaches, wildlife scatters and dies out, is simply untrue. When the Alaskan pipeline was being built, environmentalists bemoaned the fate of the caribou saying the animals would suffer immensely. The exact opposite happened. In Prudhoe Bay, caribou herds have quintupled since production began in early 1978. The caribou often used the oil field equipment and the adjoining Alaskan pipeline for a windbreak and warmth when temperatures are a frigid 40 degrees below zero. In New Mexico, many species of wildlife use equipment in a productive manner. Birds will use elevated surfaces as foundations for nests and deer use the equipment for a windbreak and warmth. UPA wants to highlight the great wildlife diversity that exists around energy structures and through this contest, members could win cash prizes for the best photo or video demonstrating wildlife adapting to manmade changes in their environment. Cash prizes for our top 3 photos: 1st Prize - $1000 2nd Prize - $500 3rd Prize - $250 Winners will be revealed at our Annual Meeting on March 12th (submissions close Feb. 1, 2024) Photos must be original and contain both wildlife and energy structures or equipment. For complete contest rules go to www.Utahpetroleum.org Good luck and happy photographing! 22 UPDATE
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