FUELING UTAH’S GROWTH AND PROSPERITY THE OFFICIAL PUBLICATION OF THE UTAH PETROLEUM ASSOCIATION
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©2024 Utah Petroleum Association (UPA) | The newsLINK Group LLC. All rights reserved. UPDATE is published three 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. Pub. 5 2024 ISSUE 2 05. 10. 07. 14. 3 UPDATE
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. Cameron Cuch, Uinta Wax (Chair) Kristina Brown, Chevron (Vice Chair) Dan Brooks, Javelin Energy Partners (Vice Chair) Lauren Brown, XCL Resources Josh Demorrett, ConocoPhillips Josh Jemente, HF Sinclair Kristen Lingley, Caerus Oil and Gas Drew McCallister, Greylock Mike Platz, Silver Eagle Refining Brad Shafer, Marathon Petroleum Mike Swanson, Big West Oil Macey Wallace, Ovintiv Rikki Hrenko-Browning, President Jennette King, Administrative Assistant Marise Textor, Air Policy Jon Ekstrom, Communications Lead Eden Newell, Manager of Strategic Partnerships and Engagement 4 UPDATE
these opportunities, the sooner we’re able to multiply and supercharge our efforts in fighting federal overreach, getting out in the community, educating our elected officials and donating to worthy causes. You’ll read about our current efforts in this issue, which we’re extremely proud of. But there’s always more we could be doing. Chaining out this thought about how many hands make light work, here’s another angle on it. Why not use our events as an opportunity to build strategic relationships? Utah is still more friendly to our industry than many of our neighbors — *ahem* looking most strongly at you, Colorado — but things can and do change rapidly. How our industry operates, what it looks like to the general public, how it is regulated, and continued strong in-migration means we shouldn’t take anything for granted. That’s why we frequently tout the axiom, “When you need a friend, you can’t make a friend.” Support is earned during times of non-crisis. That’s why we encourage you to be proactive in identifying key relationships and stakeholders. Invite them to our events to get to better know them in a casual and fun environment while also supporting your colleagues and the terrific nonprofit organizations we support. Don’t be fooled into complacency and think just because things are good now, that they’ll be good forever. Winds shift, tides change, and the world you thought you knew becomes unrecognizable. It really wasn’t that long ago that horizontal drilling combined with hydraulic fracturing wasn’t even widely practiced yet, but it’s hard to imagine our industry today without them. This concept of “Then and Now” is one that we will be threading through various engagements this year. We hosted a legislative tour with the Division of Oil, Gas & Mining recently and spoke to how we have gone from being entirely dependent on imported frac sand to developing it nearly entirely in-basin. At the DOGM Collaborative meeting in July, we discussed the evolution of how we address water management and water recycling. And in September, we’ll take a broader look at the industry “Then and Now” at the Uintah Basin Energy Summit. This theme will carry through for quite awhile. It’s said that the best time to enact a change is yesterday. The second best time is today. So consider this a friendly push to level up within Utah Petroleum Association. If we all work together, the work itself becomes a lot easier. Sir Bevis of Hampton knew it. So did “Con Air”’s Cameron Poe. Will you? Enjoy the issue. PRESIDENT’S MESSAGE By Rikki Hrenko-Browning President, UPA The phrase “many hands make light work” was first recorded in the early 1300s in a knightly romance known as “Sir Bevis of Hampton,” but I’m sure you already knew that. This phrase was also uttered by Cameron Poe (played by Nicolas Cage) to Cyrus “The Virus” Grissom (played by John Malkovich) in the bombastic and farcical 1997 “prisoners take over an airplane” action movie “Con Air.” In essence, “many hands make light work” conveys that large tasks become small when divided among several people. As a trade association, this philosophy guides everything we do, everything we hope to do and, sometimes frustratingly, everything we cannot do. We are a small but mighty team that has grown — say hello to our newest hire Eden Newell in her brief profile in this edition, and then do so in real life! — but we are only as strong and effective as the participation level of our members. We know you have plenty to do in your own career, and we’re not seeking major lifts to add to your load. But in the spirit of making large tasks much more conquerable, we will ask you to consider your engagement with UPA. Could you increase your membership level? Could you contribute to a sponsorship opportunity? Could you get engaged with one of our committees? Could you talk to your vendors, suppliers, consultants, law firms and anyone else you work with about joining UPA? Their business obviously benefits from a healthy oil and gas industry here in Utah, and a healthy oil and gas industry is our number one goal. The best part about this is that you don’t even have to invent these opportunities out of whole cloth yourself. We’re more than happy to set the table for you; all you need to do is sit down. The sponsorship opportunities, higher membership levels and committee opportunities already exist. The quicker you’re able to say yes to 5 UPDATE
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The team at Utah Petroleum Association is growing and we’re proud to welcome Eden Newell as our new manager of Strategic Partnerships and Engagement. Ms. Newell has a strong background in oil and natural gas and brings a wealth of experience in outreach and relationship‑building with businesses and communities in Utah and abroad. “I’m very passionate about the conversation around energy in this country and in our communities,” said Ms. Newell. “Oil and natural gas will be a part of our lives for a very long time, whether we’re talking about these products directly, or how they are vital for the development of everything from electric vehicles to wind turbines to the tens of thousands of products we all use every single day. My goal is to foster relationships with businesses, organizations and individuals that help build an even greater understanding of what our members do, how they do it and why.” “Eden has great passion for the industry, and she will be an incredible asset for us as we continue to tell the story of oil and gas development in Utah and recruit new members and build strategic partnerships,” said UPA President Rikki Hrenko-Browning. “Growing our team and supercharging our outreach efforts is exciting as Utah continues to show robust production growth. Despite some headwinds at the federal level, our future is bright.” Please join us in welcoming Eden to the team! 7 UPDATE
The Utah Land Trusts Protection & Advocacy Office recently announced that their Permanent State School Fund, an endowment created at statehood to support public schools, now tops $3.3 billion, a new record. The Trust Lands Administration (TLA) manages Utah’s 3.3 million acres of school trust lands, depositing revenue from the land into the Permanent State School Fund. From their announcement: “Each school year, Utah students receive distributions from the Permanent State School Fund, augmenting tax-funded sources for K-12 schools. As Treasurer Oaks reported last November, public schools will receive a record $106 million distribution from the fund for the upcoming school year.” Utah Treasurer Marlo Oaks added, “The trust lands system is set up to protect the interests of current and future students. The unique model of funding critical academic needs at the local level has been a huge success. The oil and gas sector is an integral part of Utah’s economy. Similarly, oil and gas royalties are the biggest source of revenue to the trust and have a very direct and visible impact on Utah students.” He speaks the truth. As you can see from the top line of the infographic on the next page, the trust fund has been growing remarkably year after year since 2019, with more growth projected into the future. Note that this graphic represents the fiscal year 2023, and that the $3.2 billion of permanent funds represents the correct figures at that time. 8 UPDATE
This is a reminder that a robust and healthy oil and natural gas sector has far-reaching benefits in a multitude of ways, in Utah and beyond. There are the obvious ones like tax revenue and economic growth, quality, high-paying jobs, a higher degree of domestic energy security and support for our allies abroad. But there are less-seen, less-understood benefits like this direct impact on our public education system. 9 UPDATE
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OOn May 9, 2024, the Utah Petroleum Association was joined by nearly 100 supporters at Topgolf in Midvale, Utah, to raise funds for a worthy cause. Attendees rose to the occasion and raised $14,000 — that will be combined with the proceeds of the UPA Fly Fishing event — and donated to the Thompsen House of Hope. The Thompsen House of Hope, overseen by the Uintah Basin Faith-Based Recovery Foundation, serves the entire Uintah Basin and its residents with the purpose of providing a place of assistance, including living quarters in a safe, substance-free environment for men of all ages and ethnic groups who are suffering from alcohol abuse, illicit drug abuse and/or illegal or overuse of legal prescription drugs. To learn more, please visit thompsenhouseofhope.org. A big thanks to our sponsors (on page 13) for helping to make this event a success. 11 UPDATE
Scan the QR code to view all the event photos. https://www.dropbox.com/ scl/fo/142k7ka1jzcbyio6lkdms/ ACGpaOjAPguOvvRHTDjKL44? rlkey=6mytge63vmi4m0shvt mxct7x2&st=2pisvdfm&dl=0 12 UPDATE
EVENT SPONSORS MAJOR SPONSORS ACE SPONSORS EAGLE SPONSORS BIRDIE SPONSORS 13 UPDATE
The economy has been volatile over the past few years, and as a result, many highly trained and experienced drivers have chosen to leave the workforce either by retiring or changing careers. This unfortunate circumstance only exasperated the already existing problem of a shortage of truck drivers, which according to the American Trucking Associations, has been an issue for the past 15 years. In a study by Accenture Strategy, “The Talent Well Has Run Dry,” the trucking industry is expected to face a shortage of up to 40,000 drivers over the next few years. Companies are finding themselves lacking in the number of workers needed to support the demands of society’s reliance on oil and gas. It’s a fact that truck drivers, along with other skilled workers in the oil and gas industry, are absolutely vital to, quite literally, everything. The oil and gas industry depends on truck drivers for the safe transportation of petroleum, to serve as the backbone of our economy and provide energy for not only America but also for the entire world. One way to help alleviate this demand is to encourage more people to receive technical education in preparation to enter the industry. With locations in Roosevelt and Vernal, Utah, Uintah Basin Technical College (UBTech) is the oldest technical college in the state of Utah. They opened their doors in 1968 and have been working closely with the industry for over 55 years to help fill the gap in skilled workers. UBTech offers convenient schedules, competency-based learning and training opportunities in various high-demand fields. They also offer programs for a variety of people — whether you’re an adult trying to start or advance your career or a high school student dual-enrolling to count towards high school CTE credit and college credit. UBTech serves students of all ages, from secondary students to senior citizens. To address labor market demands, the oil and gas industry, along with UPA, has partnered with UBTech to offer scholarships to students enrolled in programs that support the industry. Among these programs are UBTech’s Commercial Driver’s License (CDL) offerings. The Commercial Driver’s License – Class A program provides 14 UPDATE
the hands-on driving experience necessary to enter the workforce, while the Advanced Energy Transportation program is designed for drivers who already possess a CDL and want to specialize in safely transporting petroleum. Students who go through programs at UBTech are also blessed with great instructors. Heather Lowry, the chief development officer for UBTech, highlighted this in a recent interview: “Those instructors just bend over backward to try and get them through the system and get their licenses. We have fabulous staff here.” The president of UPA, Rikki HrenkoBrowning, also speaks highly of the program at UBTech: “Great things are happening in the Uintah Basin … We heard about the collaborative efforts UBTech has been having to assist in the driver shortage.” Once Hrenko-Browning learned of UBTech’s efforts, she wanted to support their mission and encouraged UPA member companies to do the same. The scholarship that UPA provides covers the cost of hazmat endorsements and removes financial barriers so students can move forward into a new, rewarding and exciting career. To date, 114 students have been helped through this scholarship. Many UPA members have also jumped onboard by offering their own scholarships and donations in support of the program. Supporting members include: ITL Tankers, Dominion Energy, Uinta Wax, Williams, XCL Resources , Finley, Marathon, IWM (Integrated) and Ovintiv. As Hrenko-Browning stated earlier in this issue, “Many hands make light work.” How amazing to see UPA members sharing in the work and supporting the growth of our industry through sponsoring technical education. UBTech is committed to helping the local and business community and only sees these programs becoming more robust. “I meet with our industry partners regularly and they ask us at every meeting, ‘Do you have any drivers?’ We have a waiting list right now for students trying to get into classes up through February. And so there is a huge demand for that. Students want to take this because there are jobs out there, and the jobs pay well,” said Lowry. It’s clear that specialized CDL drivers are important to the thriving economy, and the shortage has created issues for the industry. Supporting UBTech as they teach the future workers of our industry — workers who are so greatly needed — is a great way to get involved and “fuel Utah’s growth and prosperity.” To learn more, visit the UBTech website at ubtech.edu. 15 UPDATE
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 natural gas, including Utah Industrial Wax and other related products — an experienced leadership team focusing on solid horizontal production results. 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 business, Ovintiv contributes to the strength and sustainability of the communities where it operates. 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, Texas, 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. 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. Thank You 18 UPDATE
Finley Resources’ primary focus is the production of Utah Industrial Wax, which will play a critical role in America’s energy transition. Our organizational structure is lean and efficient, empowering decision‑making throughout all levels of the company. Our success is supported by our innovative field staff, who have a proven track record of operating safely and efficiently while protecting our environment for the future. 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. Our main development targets are the prolific Wasatch and Green River stacked formations. Scout Energy Partners is a private company with over 1,000 employees in eight different states with over 100,000 BOPED. We recently became an operator in Utah with roughly 6,000 BOPED in the greater monument Butte Unit. 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. Thank You 19 UPDATE
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