The Council wrapped up its informative and thought-provoking 2021 Annual Meeting in Santa Ana Pueblo, NM held September 15-17. The meeting, the first since the merger and rebranding of PESA and AESC, featured speakers and panelists from all sectors of the oil and gas industry.
“We were pleased to present an opportunity for the industry to gather, network and discuss how we can adapt to thrive,” Council CEO Leslie Beyer said. “The strong lineup of leaders from across the industry is testament to the importance of our sector, and I encourage you all to discuss your experiences and how you can work together through the Council to address challenges, advocate for smart and realistic energy policies, and position our sector to leverage opportunities within ESG and the energy transition.
Under the theme “Adapting to Thrive,” industry experts shared insights on how businesses can leverage the economic recovery to take advantage of opportunities presented by the transition to a lower carbon energy future.
The meeting opened with a keynote address on geopolitical investment by Dr. Alexis Crow, Lead, Geopolitical Investing, PwC.
“It’s important to think beyond the E of ESG as energy companies,” Crow said. “We also need to focus on the S and the G, and to have a plan to find people with key skills and invest in them. I view the energy industry as having the ability to welcome back talent and upskill our workforce for the future.”
After Dr. Crow’s remarks, Advisory Board Member Jim Wicklund, Managing Director, Strategic Banking for Energy, Stephens, Inc. moderated a discussion of what to expect in the oil and gas industry over the next few years with leading analysts, John Daniel, Founder & President, Daniel Energy Partners; Ian MacPherson, Managing Director and Sr. Research Analyst, Piper Sandler; Shawn Maxson, Principal and Oil & Gas Strategy Lead, Deloitte; and James West, Senior Managing Director, Evercore.
“Energy transition is every week. We’ve been transitioning. Twelve years ago, we had 1,600 rigs drilling for natural gas. Today we have 100, and we have a lot more natural gas. So, we cleaned up that part of our industry dramatically. Great transition.”Jim Wicklund, Stephens, Inc.
“In talking with investors, the struggle is reconciling the wide spectrum in prospects and evaluations between renewable energy companies and conventional energy companies,” Macpherson said. “The biggest conversation with investors is what are these companies worth? What are they worth yesterday, today and tomorrow?”
“A hot button issue for us is energy transition and sustainability. We have to think about core operations and how we reshape the structure of the organization so that it will survive and thrive in every scenario.”John Daniel, Daniel Energy Partners
“Impacts on the supply chain will ease over time,” West said. “For pricing, we’ve taken a ton of equipment out of the market, both in North America and abroad. There’s not a lot of latent capacity in certain product lines. With some of the higher-end technologies, little investments are being made, but they’re not going to really invest until they get that pricing.”
“All the signposts right now say that ESG is going to be relevant for some period of time. We’re seeing a lot of policy change, lots of incentives to drive decarbonization.”Shawn Maxson, Deloitte
The Annual Meeting’s second day kicked off with remarks from the Council’s incoming Co-Chairs Mike Reeves, President & CEO, Shawcor, and Jack Renshaw, Senior Vice President – Western Region, Basic Energy Services, who discussed the association’s value to the energy services and technology sector during an era of change.
“The Council is the organization that gives full attention to the issues that matter specifically to our sector. There are groups that do excellent work representing other segments of the oil and gas and energy industries. The Council is laser-focused on matters that affect the energy services and technology sector specifically. That gives it a unique and valuable position to lead our sector and give voice to our needs.”Co-Chair Mike Reeves, Shawcor
“The core of our business is the relentless pursuit of solutions based on material science, engineering and technology. It’s what we’ve always done, and it’s what secures our place in what’s to come in energy.”Co-Chair Jack Renshaw, Senior Vice President – Western Region, Basic Energy Services
Council CEO Leslie Beyer followed Reeves and Renshaw at the podium with a State of the Association presentation. Beyer walked Members through the value of the strategic merger of PESA and AESC in February 2021, and how the unified Council is ensuring that a positive message about oil and gas in the energy transition is being presented to policymakers, media, investors and the public.
“On all fronts, we’re showing stakeholders and decision-makers that our Members are innovative leaders in developing and deploying energy technologies. We’re strategically de-emphasizing partisan and ideological issues to focus on real-world solutions. We’re ensuring legislators and regulators understand we’re part of the solution, not the problem.”Council CEO Leslie Beyer
After Beyer’s address, Thomas Devos, Managing Director, Goldman Sachs, gave the Economic Keynote focused on how energy services companies can leverage the economic recovery from the pandemic downturn.
“You cannot shake that we’re living through exceptional times,” Devos said. “We’re in a very strong recovery from the recession, but the recovery is at odds with the past 30 years when it comes to inflation, price pressures and the labor market. And while the recovery is strong, it’s still trending below where it would have been without stimulus.”
After receiving the Chapter Champion Award, Board Member Leroy Law, President, LL Industrial Transmission, provided an update on the Council’s 16 regional, domestic chapters.
“Each chapter maintains its own calendar of activities, including scholarship fundraisers and networking events. Chapter participation is an important part of involvement in the Council. I encourage you to reach out to see how you can become more engaged with your local chapter,” Law said.
ENERGY TRANSITION PANEL
A panel discussion featuring Greg Hill, President & COO, Hess Corporation, Brendan McCracken, CEO, Ovintiv, and Graham Gordon, Managing Director, Accenture, and moderated by Advisory Board Member John Shanahan, General Manager, Caterpillar Oil & Gas, focused on the oil and gas industry’s vital role in the energy transition.
“Who better to re-engineer the way we work than the people doing the work [energy services]?” Hill said. “There’s never been a greater need to collaborate. The transition to a low carbon economy is underway but will take time and cooperation by governments, industry and civil society.”
“It’s an incredible sector that we work in,” McCracken said. “The innovation and creativity we bring to solving complex problems is particularly suited to the energy transition challenge we face.”
“The theme for today is adaptation,” Gordon said. “The imperative for service organizations is to show the performance of our tools and services, as well as the ESG components of them so we can start gathering and agree on the right ESG-related data we can share as an industry with shareholders and society to evolve a positive narrative.”
“As we go forward into the future, we’re looking at alternative technologies as well. But oil and gas is here to stay. It’s intrinsically linked with our society,” Shanahan said.
INCLUSION & DIVERSITY
Council Members Lamonica Spivey, Inclusion, Diversity & Corporate Social Responsibility Director, TechnipFMC, and Maria Lorente, Human Resources Director, Schlumberger, along with outgoing co-chair Rod Larson, President & CEO, Oceaneering International, presented findings from the Council’s 2021 Inclusion and Diversity Study, as well as actionable recommendations developed by Members in a series of workshops to sustain the sector’s improvement.
“To continue making progress, the push for diversity needs to come from C-suite leaders. We need the top of the house to support company-wide strategies that help build an I&D mindset and drive change.”Lamonica Spivey, TechnipFMC
“Actions are required at all stages of the talent management cycle — recruitment, advancement and retention,” Lorente said. “The study proves the value of tracking metrics to evaluate what works. Organizations need to tackle systemic biases. We need to rewire our systems to rewire behaviors.”
Eric Draper, photographer for President George W. Bush gave a keynote presentation describing his eight years with the president, and the importance of taking chances and assertiveness in creating opportunities.
“Governor Bush had just become president,” Draper said. “I decided to take a page directly from his campaign handbook. I looked him in the eye and said ‘I want to be your personal photographer.’ A week later, back in Austin, he offered me the job.”
Draper also shared never-before seen photos of the President, including a series on 9/11 and the days following.
Larson closed out the day by addressing the importance of industry unity during his Outgoing Chair’s Address.
“We share a reputation. The general public — even many lawmakers and regulators — don’t think of us as being one company or another. Local, state and federal governments need to understand their constituents are engaged in a positive way. That we’re providing jobs. That we’re critical parts of the economy. And that we’re taking seriously issues of environmental performance, technology development and the future of energy. The Council is an ideal place for us to collaborate with each other on these key issues.”Rod Larson, Oceaneering International
LOOKING TOWARDS THE FUTURE
The meeting’s final day began with an industry keynote from John Berger, Chair, Founder, President and CEO, Sunnova. Berger’s address focused on the importance of all forms of energy, including oil and gas, in the energy mix.
“There is a role here for the oil and gas industry that’s going to last a period of time,” Berger said. “At the same time, the technological trends of solar and storage are powerful, and we need to work together to figure out the optimal solution for the country and the world. We need to move forward, embracing technology, and making sure that we’re not scapegoating what we need today.”
Following Berger’s remarks, Beyer moderated a workforce panel with Tracee Bentley, President & CEO, Permian Strategic Partnership; Advisory Board Member Justin Bliffen, Founder & CEO, Brigade Energy Services; Advisory Board Member Melissa Cougle, CFO, Frank’s International; and Jeff Shellebarger, Chair, 23rd World Petroleum Congress.
“The Commission is dedicated to helping build and educate our workforce, and the Permian has brought in partners and charter schools to help boost the competition for everyone,” Bentley said. “But more than that, the area has worked hard to help provide infrastructure basics for our workers, investing $600 million to upgrade Permian roads, and working with Texas Tech to get more doctors and nurses trained and on the ground.”
“There’s a huge need for energy in this world that is growing,” Shellebarger said. “There has to be a partnership between oil and gas and alternative energy. An all of the above strategy.”
“If we all take the mindset, every single one of us, that we’re going to get comfortable being a champion or an ally for whatever diversity looks like to us, then the next round of that diversity survey in the industry will really be different.Melissa Cougle, Frank’s International
“As we build back up, it’s important for our customers to understand what we went through [during the pandemic],” Bliffen said. “Should we start facing choppy waters again, we need to keep the service sector strong.”
EDUCATING THE WORKFORCE
Advisory Board Member Lucas Gjovig, COO, GO Wireline, provided an overview of the Member Company Dependent Scholarship Program which offers scholarships to assist children of Member Company employees in completing higher education.
“The challenges we face as a society will need innovative solutions from creative, knowledgeable and educated young people. The scholarships provided through the years have helped thousands of students complete their higher education aspirations and build successful careers in the workforce.”Lucas Gjovig, GO Wireline
Shannon Rouhana is a Wells Engineer at ExxonMobil and is currently rotating to Offshore Guyana. She was a member of the IPAA/Energy Workforce Education Center’s program at Westside High School in Houston where she was inspired to pursue a future in the energy industry.
Shannon joined the Annual Meeting to represent the graduates and current students of IPAA/Energy Workforce Petroleum Academies.
“When I first joined the IPAA/Energy Workforce Education Center’s program in high school I wasn’t sure what to expect, but looking back on my experience, I can wholeheartedly say I wouldn’t be where I am today without the Energy Education Center. I am beyond grateful that I had the extraordinary and unique opportunity to be a part of a program sponsored by organizations that are dedicated to investing in people such as myself, giving the opportunity to be a part of an extremely rewarding industry that powers not only this nation, but the world.”
POLITICAL FIRESIDE CHAT
The final session was a political fireside chat with Council SVP Government Affairs Tim Tarpley and Sarah Propst, Secretary of the New Mexico Department of Energy, Minerals and Natural Resources, discussing the Biden Administration’s actions on oil and gas leasing on federal lands.
“About 65% of oil and gas production in New Mexico is on federal land. Anything affecting the state is affecting revenues for the general fund and for funding education and healthcare and a number of other priorities. We took those changes from the Biden Administration very seriously.”Secretary Sarah Propst, New Mexico Department of Energy, Minerals and Natural Resources
Throughout the meeting, the Council presented awards to individuals with exceptional achievements on behalf of the sector. These included:
- Chapter Champion Award — Leroy Law, President, LL Industrial Transmission
- Industry Advocate Award — Quay McKnight, Chairman and President, M&M International
- ESG Accelerator Award — Cindy Taylor, President & CEO, Oil States International
- Emerging Executive — Diana Hopkins, New Technology Development Manager, Caterpillar Oil & Gas
- ESG Champion — Marie Caekebeke, Director Global ESG Performance & Stakeholder Engagement, Schlumberger
- I&D Champion — Amanda Jean, HR Director, NOV Inc.
- Industry Influencer — Jamie Elrod, Senior Account Manager, NexTier Oilfield Solutions, Co-host Flipping the Barrel Podcast
- Industry Influencer — Massiel Diez, Business Development Manager, Extreme/Schlumberger, Co-host Flipping the Barrel Podcast
THANK YOU SPONSORS!
The Council’s 2022 Annual Meeting is scheduled for April 6-8 at the Marriott Grand Hotel Golf Resort & Spa in Point Clear, AL. Register now.