Greetings from the Bayou City, where a very wet and cold fall and holiday season has suddenly turned into what passes for a lovely winter day. We are sure that this will not last, but nice to be writing with the sunshine streaming in.
We are a little late with this issue, but previously there was frankly not much to write about. Now there is, so this will be a large issue.
Yours truly managed to damage a knee, which has caused considerable inconvenience but which is now repairing nicely due to the efforts of my very nice doctor at the Medical Clinic of Houston (which, bye the bye, is where you want to go to get superior treatment). So no golf as of yet; but did manage to stagger about New Orleans the week after Christmas, which we substituted for our usual post-holiday trip to New York City. I was a little worried about the condition of the French Quarter; completely unfounded, as the place has been put back together better than before. For those who are interested, the Ritz Carlton on Canal Street is, well, the Ritz. Great location, great service, great jazz bar. Best in NOLA. And the Boeing Building at the New Orleans WWII museum is really something. Ever seen a B-17 in person? Along with about 10 other notable aircraft hanging from the ceiling, as if still in flight. My god father, General Matthew Garland, flew B-17s in Europe and my dad flew C-47s in the Pacific. Neither talked about it much, but when you see the planes it's an OMG experience. If you want to have a real retro experience, get a copy of "12 O'Clock High". Gregory Peck played the role of my god father. Idiotic bravery, much like the culture of our own industry. Which perhaps explains, both on the drill floor and in the back offices, why we are all so close. Some take the risks, but they always know that someone is a their back.
Ruminations
Hard to decide where to start as the last few months have been exciting to say the least.
We have our first majority Republican congress in a decade, which may or may not bode well depending on your political point of view and whether everyone in DC can agree to behave; but history indicates that split Executive and Legislative branches are actually pretty productive. Of course everyone of our economic persuasion would like to see authorization of the Keystone XL pipeline and allowance of oil exports; the first since we need heavy crude for our Gulf refineries and are not about to import it from not-friends, and the second because we have so much light crude from the shale plays that we don't know what to do with it all.
Speaking of which, the American energy revolution is underway, By sometime this year, North America will have become the most productive energy province in the world. The bad part is a temporary but massive drop in oil and gas prices as supply outpaces demand. This will have a real impact on weaker players in the North American energy industry; my own feeling is that weaker players will be absorbed by larger players who possess massive amounts of cash. It's all a little unsettling at the moment as many parties in the industry are announcing layoffs. But this is not the 1980's. Not only in the United States but in many of our energy partners the economies are far more diversified, and the non-energy sectors that depend on cheaper fuel and feed-stock prices will profit mightily. We can all live with oil at $70 per barrel and natural gas at $4 per MBTU, which are the projected price levels for the end of 2015. And as the bonus, these price levels will seriously damage less than friendly foreign entities who we will not name, but you all know who they are.
Continuing the subject, the US Dollar is now the most desirable currency in the world excepting the Swiss Franc. So if you feel like going to Europe or almost anywhere else, now is your chance. By the time you arrive the Euro should be close to 1:1 parity with the USD; and the Canadian dollar and the Aussie are trading 40% below their levels of a year ago. Knock yourselves out and get on a plane. It won't last forever.
Re the unsettled political situations in the world, these will not last forever either. It is not up to the great powers. We the powerful can assist, and we will. It is up to the common men and women who inhabit these places. Their desires are just like ours, and we sometimes need to recall the origin of our own nations. Free people think alike, albeit through the lens of their own cultures. The first objective is to overcome fear; the second is to act; and the third is to seek contentment. The fanatics and dictators of the world dislike these concepts very much, because fear and discontent is their stock in trade.
There was a tremendous article in the Wall Street Journal on January 24 regarding Winston Churchill, who is one of my personal heroes; not because he was a saint, but because he would not give up. Worth reading, as so few have given so much to the concept of liberty and freedom.We ourselves left the British Empire centuries ago; but time can heal old wounds and build new alliances. Winston knew this, and acted upon it. Hard to believe that he has been gone for 50 years. He died on the same day and within an hour of the death of his father, Randolph. A curious parallel to John Adams and Thomas Jefferson, who both died on July 4 within hours of each other. I remember as a child getting up at 2 AM to watch Winston's funeral cortege on a black and white TV (which the networks in a rare event at the time carried live) with my dad.
Energy News
It seems everyone is doing a spin off of older offshore drilling rigs these days. Paragon Offshore, a former division of Noble, is the latest. Land drillers are stacking vertical drilling rigs like crazy, but rigs with horizontal drilling capacity are working. Rail companies are doing a busy task of transporting both oil (a result of our inability to approve pipelines) and sand for fracturing processes. The coal business is cratering, primarily due to government interference. Which brings up the question: why would a responsible government attempt to destroy a business which generates 40% of the power in these United States? There is no describing this logic. At least with the new Congress there is a chance of approval of offshore drilling on the US East Coast. Not so the Arctic. There are billions of barrels of oil up there, but the administration has locked down millions of acres up there; and to be honest, we are not there yet from a technical point of view. That said, it's kind of dumb to prevent technical progress. No one would be in the offshore business today if a few bright souls had not thought to hang drilling rigs off the sides of LSTs, or later to conceive the derrick-moonpool concept for the standard floater configuration; or to invent jackup and semi-submersible drilling rigs, and later to invent functional directional drilling. Or, in the land business, without hydraulic fracturing. We don't get political very often in this blog, but our current government is frankly crazy in regard to energy policy. There is no problem with alternatives; we have always been a creative industry, but practical as well. You can't sell what you cannot produce for a reasonable profit.
The Business of the Clan
The fact of it is, the clan is splitting into three groups, all of which can support each other: those retiring, those retired and still working as consultants, and those working for a daily wage. Not that this is bad; it's a natural progression. So, the news, with new addresses contained in the Alumni Directory.
Very happy news: Christie and Yoni Sade have new twins, Ethan Adam and Maya On.
Matt Ralls has retired from Rowan and at last report was hanging out with Amy and the Hunts in Melbourne and Sydney, Australia. A little jealous there. I like Australia. Matt and Roger look pretty buff here. Our Austin crowd is getting bigger by the day.
Geoff Evans has turned from a Renaissance Fair character into an actor. Played Dr. Watson in a Sherlock Holmes episode on PBS Radio. In all a very interesting retirement, with lots of costumes.
Robert and Lynn Bowden have returned to the US. A happy event and Robert is golfing well. Also consulting, although probably spending more time away from home than he would like. Pretty crazy schedule involving multiple continents.
James Stegall has returned to the US, where he will manage the Discoverer Seven Seas.
Old friend Jeff Shepard is retired in Reynolds Plantation, GA and is having what I would call a "grateful" retirement. He's missed a few bullets but is now golfing, hunting, fishing, travelling, and has become a grandfather as well. "Every day is Saturday", he says. That's a pretty good way to approach life. Just for a little historic hilarity, a photo of Jeff and Trisha in Gabon in 1980s. All we guys apparently had moustaches. Trisha still cute as a bug.
Mike and Julie Dawson have relocated to Sugar Creek in Houston. They also maintain a home in Santa Fe, New Mexico. Retired, growing art collection, golfers, both better than I. And a Jaguar F-1 lurking in New Mexico. My jealousy in this regard is unbounded.
Andy and Peggie Dement have relocated to Garland, Texas to be closer to their family. This was unexpected but Andy is a pro at the unexpected.
Jim and Susie McCulloch have relocated to Houston 77024. A welcome addition to our own weekly dinners at Sylvia's Enchilada Kitchen on Woodway. Jim is working with Forum Energy. Jim and Susie made a magnificent gift to Tulane University to endow a professorial chair in Energy Law. So, doing all the right things.
Peggy Jennings has relocated to Jacksonville, OR 97530.
Old friend Ed Fleming is working as a consultant in Houston. Still the CFO of X-Drill but recently departed from Oro Negro. Had lunch the other day and Ed says "hi" to everyone.
Wendy Clark has gone to work for Freeport LNG.
Dru Duran is working with United Communication Broadleaf Group.
Myra Pickett was appointed Operations Accounting Controller at BHP.
Chris Corcoran is working at ABS in what is apparently a dream job.
Mandy Schaefer is working as the Compliance and Ethics Officer for the Texas Municipal Power Agency. She like Brenda Hethcoat has relocated to College Station TX; Mandy has 2 kids, Dean and Rose; in other words, quite the handfull.
Brian Hefty along with the aforementioned Andrew Tietz is working at Paragon as the VP of Tax. My favorite tax guy ever. Myrtle Jones at Halliburton gets my vote for favorite tax girl ever. Navigating the ever changing currents of tax is not an easy task.
Gregg Farris has retired after a long and successful career at Oceaneering. This of course does not mean that we have seen the last of him. A very social and very accommodating host, whose humor and kindness are much appreciated by all.
Frankie Henderson has retired after many years at Global Marine, GlobalSantaFe and Transocean with many friends made during her long tenure.
Gurbachan Virk has joined the westward-ho crowd and has moved to Pleasanton, CA. Now this is a nice part of Sonoma, which we ourselves like very much. Sonoma is so different from Napa; real farms out there, except for a few trophy properties. Which are not bad; they fit into the wilderness of Sonoma quite nicely, hiding on the River Road.
Reg Powell got in touch and, having retired from Transocean, is operating his own company: Drilling Industry Inspection Service.
Greg Shoalmire is working as the Manager of Global Mobility for Ensco.
Kelly Millsap is working for Friedken, one of the largest Toyota importers in the US.
Kind thoughts to Mark Crispi, who had a health scare but is now recovering.
Had a nice note from Louis Solana, who was the master of the Arctic 1, the Glomar Grand Banks, the Glomar Robert F Bauer, the Glomar Atlantic, the Glomar Explorer, and the Development Driller I. In other words, an impressive resume, and a tremendous fellow to work with. John Thorson and I just about drove him crazy in Singapore whilst reconstructing the R F Bauer. However, rig delivered more or less undamaged with the exception of a flying garbage skip upon departure.Nothing like an overactive crane operator.
Rick North has moved to Los Lunas, New Mexico, and is apparently a happy retiree. Grandchildren, barber shop quartet, working out, bridge, pool.
A mini-reunion: David Armstrong, Karen McConaughey, Connie Abbs, Rich and JP Peplinski, Susan Fontenot, Cindy Kohlhoff, John Auth, Darlene Dawson, Kyna Agerton. We need to do more of this stuff.
We have a lot of Missing In Action members, primarily from dodi.com and deepwater.com, which we imagine is due to spin offs. If you see the name of a friend on our contact spreadsheet that says NEED EMAIL, please reach out to them and ask them to contact us at gsfalumni@gmail.com with new email addresses. We're very much committed to holding the clan together.
Speaking of which, Nial Moran and Joe Boyd have put together the Santa Fe Alumni Association (SFAA), with which we encourage interaction as fellow travelers. You can reach Joe at lynnefarms@aol.com.
History
We've kind of bounced this idea around a little bit, but between us all we have a lot of history regarding Global Marine, Santa Fe, GlobalSantaFe, Transocean and their predecessor companies in our possession. Seems to me that we could put something together with a willing sponsor, but such a sponsor has yet to be identified that would be satisfactory to all concerned. It would be a shame to have all of this memorabilia dispersed, and I will begin to try to find a home for it. What a legacy! If anyone has ideas in this regard, please do contact me directly at ecollinsii@comcast.net.
Necrology
Bruce Watson reported that Joe Harlan passed away in 2014. Besides Joe, who will be missed, we fortunately have no further passings to report. Which in this day and age is a good thing.
The Last Word
Every once in a while, things in this industry get out of hand. We are at the moment observing a seismic shift (no pun intended) in the structure of the international offshore and onshore drilling industries. How it will turn out no one can tell; but it is reasonable to expect that foreign demand will increase, especially as the economic health of our trading partners may improve due to economic recovery measures; and further because trading partners will become much more specific with whom they trade.
The outcome will undoubtedly be unfavorable for our industry in the short term; but three factors should be considered in the long term. First, the cost of fuel has been dramatically been reduced for many corporate and private consumers, which will generate new prosperity across large areas of the global economy. Second, demand for energy will increase as this prosperity occurs while reductions of supply will inevitably occur, thereby mitigating the current price plunge. And third, the generations are changing. Those who wish to retire will do so comfortably; and demand for skilled labor in the industry will increase with the departure of these older workers. So take a deep breath and go forth.
Meantime, bundle up your US Dollars and take that trip that you've been dreaming about. No better time than now. Just leave the white sneakers at home and don't even think about folk music. Leave that to Rick Steves.
Your faithful servant, Ed.
Energy News
It seems everyone is doing a spin off of older offshore drilling rigs these days. Paragon Offshore, a former division of Noble, is the latest. Land drillers are stacking vertical drilling rigs like crazy, but rigs with horizontal drilling capacity are working. Rail companies are doing a busy task of transporting both oil (a result of our inability to approve pipelines) and sand for fracturing processes. The coal business is cratering, primarily due to government interference. Which brings up the question: why would a responsible government attempt to destroy a business which generates 40% of the power in these United States? There is no describing this logic. At least with the new Congress there is a chance of approval of offshore drilling on the US East Coast. Not so the Arctic. There are billions of barrels of oil up there, but the administration has locked down millions of acres up there; and to be honest, we are not there yet from a technical point of view. That said, it's kind of dumb to prevent technical progress. No one would be in the offshore business today if a few bright souls had not thought to hang drilling rigs off the sides of LSTs, or later to conceive the derrick-moonpool concept for the standard floater configuration; or to invent jackup and semi-submersible drilling rigs, and later to invent functional directional drilling. Or, in the land business, without hydraulic fracturing. We don't get political very often in this blog, but our current government is frankly crazy in regard to energy policy. There is no problem with alternatives; we have always been a creative industry, but practical as well. You can't sell what you cannot produce for a reasonable profit.
The Business of the Clan
The fact of it is, the clan is splitting into three groups, all of which can support each other: those retiring, those retired and still working as consultants, and those working for a daily wage. Not that this is bad; it's a natural progression. So, the news, with new addresses contained in the Alumni Directory.
Very happy news: Christie and Yoni Sade have new twins, Ethan Adam and Maya On.
Matt Ralls has retired from Rowan and at last report was hanging out with Amy and the Hunts in Melbourne and Sydney, Australia. A little jealous there. I like Australia. Matt and Roger look pretty buff here. Our Austin crowd is getting bigger by the day.
Robert and Lynn Bowden have returned to the US. A happy event and Robert is golfing well. Also consulting, although probably spending more time away from home than he would like. Pretty crazy schedule involving multiple continents.
James Stegall has returned to the US, where he will manage the Discoverer Seven Seas.
Old friend Jeff Shepard is retired in Reynolds Plantation, GA and is having what I would call a "grateful" retirement. He's missed a few bullets but is now golfing, hunting, fishing, travelling, and has become a grandfather as well. "Every day is Saturday", he says. That's a pretty good way to approach life. Just for a little historic hilarity, a photo of Jeff and Trisha in Gabon in 1980s. All we guys apparently had moustaches. Trisha still cute as a bug.
Mike and Julie Dawson have relocated to Sugar Creek in Houston. They also maintain a home in Santa Fe, New Mexico. Retired, growing art collection, golfers, both better than I. And a Jaguar F-1 lurking in New Mexico. My jealousy in this regard is unbounded.
Andy and Peggie Dement have relocated to Garland, Texas to be closer to their family. This was unexpected but Andy is a pro at the unexpected.
Jim and Susie McCulloch have relocated to Houston 77024. A welcome addition to our own weekly dinners at Sylvia's Enchilada Kitchen on Woodway. Jim is working with Forum Energy. Jim and Susie made a magnificent gift to Tulane University to endow a professorial chair in Energy Law. So, doing all the right things.
Peggy Jennings has relocated to Jacksonville, OR 97530.
Old friend Ed Fleming is working as a consultant in Houston. Still the CFO of X-Drill but recently departed from Oro Negro. Had lunch the other day and Ed says "hi" to everyone.
Wendy Clark has gone to work for Freeport LNG.
Dru Duran is working with United Communication Broadleaf Group.
Myra Pickett was appointed Operations Accounting Controller at BHP.
Chris Corcoran is working at ABS in what is apparently a dream job.
Mandy Schaefer is working as the Compliance and Ethics Officer for the Texas Municipal Power Agency. She like Brenda Hethcoat has relocated to College Station TX; Mandy has 2 kids, Dean and Rose; in other words, quite the handfull.
Brian Hefty along with the aforementioned Andrew Tietz is working at Paragon as the VP of Tax. My favorite tax guy ever. Myrtle Jones at Halliburton gets my vote for favorite tax girl ever. Navigating the ever changing currents of tax is not an easy task.
Gregg Farris has retired after a long and successful career at Oceaneering. This of course does not mean that we have seen the last of him. A very social and very accommodating host, whose humor and kindness are much appreciated by all.
Frankie Henderson has retired after many years at Global Marine, GlobalSantaFe and Transocean with many friends made during her long tenure.
Gurbachan Virk has joined the westward-ho crowd and has moved to Pleasanton, CA. Now this is a nice part of Sonoma, which we ourselves like very much. Sonoma is so different from Napa; real farms out there, except for a few trophy properties. Which are not bad; they fit into the wilderness of Sonoma quite nicely, hiding on the River Road.
Reg Powell got in touch and, having retired from Transocean, is operating his own company: Drilling Industry Inspection Service.
Greg Shoalmire is working as the Manager of Global Mobility for Ensco.
Kelly Millsap is working for Friedken, one of the largest Toyota importers in the US.
Kind thoughts to Mark Crispi, who had a health scare but is now recovering.
Had a nice note from Louis Solana, who was the master of the Arctic 1, the Glomar Grand Banks, the Glomar Robert F Bauer, the Glomar Atlantic, the Glomar Explorer, and the Development Driller I. In other words, an impressive resume, and a tremendous fellow to work with. John Thorson and I just about drove him crazy in Singapore whilst reconstructing the R F Bauer. However, rig delivered more or less undamaged with the exception of a flying garbage skip upon departure.Nothing like an overactive crane operator.
Rick North has moved to Los Lunas, New Mexico, and is apparently a happy retiree. Grandchildren, barber shop quartet, working out, bridge, pool.
A mini-reunion: David Armstrong, Karen McConaughey, Connie Abbs, Rich and JP Peplinski, Susan Fontenot, Cindy Kohlhoff, John Auth, Darlene Dawson, Kyna Agerton. We need to do more of this stuff.
We have a lot of Missing In Action members, primarily from dodi.com and deepwater.com, which we imagine is due to spin offs. If you see the name of a friend on our contact spreadsheet that says NEED EMAIL, please reach out to them and ask them to contact us at gsfalumni@gmail.com with new email addresses. We're very much committed to holding the clan together.
Speaking of which, Nial Moran and Joe Boyd have put together the Santa Fe Alumni Association (SFAA), with which we encourage interaction as fellow travelers. You can reach Joe at lynnefarms@aol.com.
History
We've kind of bounced this idea around a little bit, but between us all we have a lot of history regarding Global Marine, Santa Fe, GlobalSantaFe, Transocean and their predecessor companies in our possession. Seems to me that we could put something together with a willing sponsor, but such a sponsor has yet to be identified that would be satisfactory to all concerned. It would be a shame to have all of this memorabilia dispersed, and I will begin to try to find a home for it. What a legacy! If anyone has ideas in this regard, please do contact me directly at ecollinsii@comcast.net.
Necrology
Bruce Watson reported that Joe Harlan passed away in 2014. Besides Joe, who will be missed, we fortunately have no further passings to report. Which in this day and age is a good thing.
The Last Word
Every once in a while, things in this industry get out of hand. We are at the moment observing a seismic shift (no pun intended) in the structure of the international offshore and onshore drilling industries. How it will turn out no one can tell; but it is reasonable to expect that foreign demand will increase, especially as the economic health of our trading partners may improve due to economic recovery measures; and further because trading partners will become much more specific with whom they trade.
The outcome will undoubtedly be unfavorable for our industry in the short term; but three factors should be considered in the long term. First, the cost of fuel has been dramatically been reduced for many corporate and private consumers, which will generate new prosperity across large areas of the global economy. Second, demand for energy will increase as this prosperity occurs while reductions of supply will inevitably occur, thereby mitigating the current price plunge. And third, the generations are changing. Those who wish to retire will do so comfortably; and demand for skilled labor in the industry will increase with the departure of these older workers. So take a deep breath and go forth.
Meantime, bundle up your US Dollars and take that trip that you've been dreaming about. No better time than now. Just leave the white sneakers at home and don't even think about folk music. Leave that to Rick Steves.
Your faithful servant, Ed.
No comments:
Post a Comment