Thursday, November 20, 2008

I know that it's been awhile, but like fine wine........I can't be rushed.

As most of you know, I work in the oil business (lots of ups and downs) managing assets in various places around the world. I've had this job since 2000, and have been responsible for oil and gas fields in South America, the Middle East, Africa, and Asia. As of today, I only have three countries that I "manage", including Azerbaijan, Russia, and China (wonder why they call me a communist?) Although my assets have changed many times over the years, there have always been adventures along the way. Adventures can be defined in many different ways, and I thought I 'd make a "List" of my top ten adventures over the last several years. Some are funny, some represent little "victories", some are sad, and some are scary (or at least seemed that way at the time). In no particular order:

1) Carauna (2001)- This was a field in Brazil that we started to develop. The government had drilled some wells, tested them, and determined that this field was good for foreign companies (that should have been a clue). They had tested a number of shallow offshore wells at ~1,000 bopd. The wells we drilled, interestingly made only 200 barrels of oil plus 800 barrels of water. When we took the original well reports to a "local" translator, he indicated that the reports said the fluid form the original wells looked, smelled, and felt like oil (but the local guy said "that doesn't mean that there wasn't 80% water. Lesson - always get a local translator!

2) Dubai (2008) - On my way home from Baku, I decided to stop over in Dubai (United Arab Emirates). I was expecting a dusty desert town. What I encountered was an ultra-modern bustling city, where in one day I; 1) ate a snack at Starbucks in the biggest shopping mall I have ever been in, 2) watched Arab girls ski in their full galiabas at an INDOOR ski slope, 3) Rode a dune buggy in the deserts (115 degrees), 4) shared a Bedouin dinner with tourists, 5) rode on a camel, and 6) held a racing falcon in my hand. Wow - what a whirlwind trip!

3) Since 2003, I have been the Country Manager for our assets in Azerbaijan. We have a local staff there, and in 2007 I had to fire my deputy Country Manager. This guy is an Azeri citizen, a war veteran, a former member of the KGB, and an expert in martial arts. We had not gotten along well since our first meetings in 2003, and he became ever more demanding of salary increases, wanted a better title, more prestigious cars, etc. I had to get approval from my U.S. based management, notify the government, then take action. The guy drove me nuts in that he called in sick the first 4 days of the trip I made to fire him. I kept wondering if he had been "tipped off" or what. Finally he came in, and I broke the news to him. I was relieved to finally "pull the trigger", but was actually scared for my safety for a while. Although this had to be done, it is one of the hardest things I've had to do as a boss.

4) Talk about contrasts...... Our project in Azerbaijan is developing one of the biggest oil fields in the world. The field produces almost 1 million barrels a day, from about 50 wells, with some wells flowing as much as 40,000 barrels a day (At $125/bo, that's 5 million $ per day). The other end of the spectrum is my two Russia fields that make 9,000 bopd from 500 well, or about 18 bopd per well. many of the wells make less than 10 bopd. Russia is a crazy place. Even when world oil prices hover around $100, Russian domestic oil prices can be $15/bo. It's crazy!

5) My favorite country in Africa is Cote d'Ivoire, a former French colony with endless beaches and wonderful people (well most of them). This year we sold this offshore production to a UK based firm, but just as we were making the deal, our only pipeline that transports oil from offshore to mainland, got plugged. Not plugged in the sense of only 50% throughput, plugged as in PLUGGED! Can you imagine the buyers reaction when I had to explain that the pipeline was plugged with wax and sand (this was the first time in 10 years that this had ever happened)? I was furious with our operations people, who were soon to be employees of the company that bought the assets, for their lazy care of the pipeline. After being plugged for almost 60 days, we finally were able to squeeze a plug of waxy paraffin (about 20 cubic meters of "gunk", and that's alot). It flows out of the 8" pipeline like toothpaste out of a tube. Once we got it flowing again, we were able to "close the deal"!

6) From 2000-2003 I was the manager for our oilfields in Brazil and Argentina. I loved to travel to Buenos Aries and western Argentina. You could get a 24 oz. steak there for ~$5. The steaks were thick yet so tender. I loved the people of Argentina, and the oil and gas fields were a blast to work on. The government was going down the tubes however, and they decided to put all kinds of new taxes for "foreign companies". We sold the assets quickly in 2003.

7) One of my first "assignments" when I became the Country Manager for Azerbaijan in 2003 was to recover the 70 million dollars that the government owed us. Pennzoil got a foothold in the newly formed formed former Soviet republic of Azerbaijan in the early 1990s by building a big offshore compressor station. The government promised to give Pennzoil an interest in this field plus pay back the money they spent on this gas compressor station. Well guess what; By the time I got the job, Devon had acquired Pennzoil, and the government told me that they were fresh out of money. I have traveled to Azerbaijan over 40 times in the last 6 years, and in many of those early trips I would go back and argue Devon's case. I pleaded with them, threatened them, cajoled them, and hassled them. These meetings would take place in Russian and in literal smoke-filled-rooms (it really is a negotiating tactic). In the end, I was able to get 60 million in cash. As it turns out, the cash was nothing - our 5.6% interest in this field is worth billions!

8) Corruption - I've seen so much of it. In other parts of the world, it is the way of life. From Africa, to the Middle East, to the former Soviet Union - jobs, services, bids, don't go to the person or company best qualified, it's all about "Who you know". When I tried to bids a project to get new computers into our office in Baku, even my most honest manager said; "My brother knows a guy". Even when we were selling our assets in Africa, on Minister wrote me a letter saying that he would agree to let me sell my assets to another company "if" I paid him 30 million dollars. He said with out that, I would not get necessary government approvals. It truly is "the way of life" in other parts of the world. They don't even recognise it as corruption, they just view is as the way to get stuff done.

9) Travel - Okay, okay, I admit I like the travel, but it does get old. Last year (2007) I was out of the country for 100 days. Many other years I have been overseas for at least 90 days. The business class flights are nice, I almost always stay in nice hotels (well, nice is a relative term), and lots of good restaurants, interesting people from governments and companies all over the world. In business travel alone, I have gone to Argentina, Brazil, Canada, Japan, China, Germany, the UK, Angola, Austria, Cote d'Ivoire, Equatorial Guinea, France, Gabon, Egypt, Turkey, Azerbaijan, Georgia, and Russia. I've visited Red Square, the Pyramids of Giza, the Great Wall of China, and the London Eye! But, I've missed football games, basketball games, first dates, school dances, given up countless "Fridays off" and weekends, all in the course of business. Susan doesn't even ask where I'm going half the time, because no matter where it is, I'm just "not home". I have favorite countries, favorite governments, favorite airlines, and languages that I can and can't speak (okay, mostly can't). The point is that with all the places I visited (and I still have dreams of others), the U.s. is by far the best place I've ever been, and by very far, the richest country in terms of material things, vastness, character, scenery, and things to do that I've ever seen.

Lastly - Favorites (I knew that you'd ask).
I love all of Europe - all over, but London kind of bland
France is good (especially with Susan) - and "if you try to speak French" you'll get along fine
Africa is hot, muggy, (mostly) filthy, corrupt, and depressing
China is growing SO FAST. They will rule the world like we used to!
Japan - exceedingly clean
Former Soviet Union - depressing. The people want freedom, but the governments are so screwed up - I won't see it in my lifetime

That's all for now. I hope that this was worth the wait!

Thursday, October 30, 2008

Well, I think that Jordan has finally decided who he wants to work for.......

.....And the winner is: El Paso Energy, independent E&P company, with their main office just two blocks away from Devon, along with district offices in Denver and Corpus Christi.

In the end, I think Jordan was excited about the 2 year training rotation, that would expose him to several disciplines and at least two geographic areas - sounds like a good balanced start.
Like most Petroleum Engineering grads, he got a good salary, with attractive benefits thrown in. After all the work he's done, he's earned it! As for salary, let's just say; He'll be able to afford to take his Dad out to lunch once in a while!

We spent a very nice weekend in Wimberley. Imagine waking up to temperatures in the 30s! Mom & dad joined us for a couple of days, and we had dinner at Marty's mansion on Canyon Lake! A very nice weekend.

Wednesday, October 22, 2008

We just heard from Jordan, and he recieved some encouraging career news today. Of course, I'm not going to tell you what it is - you'll have to ask him! I will say, however, that we are very proud of him and always had faith that this day would come. All that hard work DOES pay off! Congratulations Bud!

Monday, October 20, 2008

Be Careful About Me
(Chuck's Mantra)



Be careful about me. Be careful about my (ancestral) country and my people and how we tell our history. We Irish prefer embroideries to plain cloth. If we are challenged about this tendency, we will deny it and say grimly: “We have much to remember.”

“But,” you may argue, “isn’t memory at least unreliable? And often a downright liar?”
Maybe. To us Irish, though, memory is a canvas—stretched, primed, and ready for painting on. We love the “story” part of the word “history,” and we love it trimmed out with color and drama, ribbons and bows. Listen to our tunes, observe a Celtic scroll: we always decorate our essence. This is not a matter of behavior; it is our national character.
As a consequence of this ornamenting, we are accused of revising the past. People say that we reinvent the truth, especially when it comes to the history of our famous oppression by England, the victimhood that has become our great good fortune.
And do we? Do we embellish that seven hundred years since the Norman barons sailed to our southeast shores? Do we magnify those men in silver armor, though they stood only five feet six inches tall? Do we make epic those little local wars, often fought across rivers no more than some few feet wide? Do we render monumental the tiny revolutions fought on cabbage patches by no more than dozens of men with pitchforks and slings?
Perhaps we do. And why should we not? After all, what is history but one man’s cloak cut from the beautiful cloth of Time?
Customarily, history is written by the victors; in Ireland the vanquished wrote it too and wrote it more powerfully. That is why I say, “Be careful about my country and how we tell our history.” And in this account of my life as I have so far lived it, you will also have to make up your own mind about whether I too indulge in such invention, in particular about myself.
All who write history have reasons for doing so, and there is nothing so dangerous as a history written for a reason of the heart. The deeper the reason, the more unreliable the history; that is why I say, “Be careful about me.”
Frank Delany
"Tipperary"
2007

Sunday, October 19, 2008

I am starting this Blog with a dubious perspective: I don't know whether I want this Blog or not.

My ideas, my "lists", my dreams, my "posts" and "pet peaves", are just that - mine. Do I want to share them in a public forum? Will they be cheered, challenged, discussed behind my back, ridiculed? I don't know how to answer these things, so I sit hear wondering....... Who really cares about me that much that they want to spend their valuable time reading my "stuff"? It's a fair question. If I am asking it of you, maybe you should be asking it of yourself.

Let's see what emerges here over the coming weeks & months. I'll let you be the judge, but know that I am judging tto!