mike turner - senior vice president, global production
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License to Operate: Socio-economic Impacts and the Public-Industry Partnership. Mike Turner - Senior Vice President, Global Production. Hess: Who We Are…. - PowerPoint PPT PresentationTRANSCRIPT
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Mike Turner - Senior Vice President, Global Production
License to Operate:Socio-economic Impacts andthe Public-Industry Partnership
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Hess Corporation is a leading global independent energy company, engaged in the exploration and production of crude oil and natural gas, as well as in refining and marketing refined petroleum products, natural gas, and electricity:
• Ranked No. 74 on the Fortune 100
• More than $34 billion in revenue
• 14,000 employees globally
• Operations in 22 countries
• Member of the North Dakota community since 1950’s
Hess: Who We Are…
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Hess: Global Operations…
3ENERGY ON THE MOVE
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Hess: Unconventional Strategy…
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Hess: Growing Unconventional Portfolio…
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Eagle Ford Shale• >100,000 net
acres• ~20 wells in
2012
Paris Basin• ~340,000 net acres• Plan 3 conv. wells beginning
4Q12
Utica Shale• ~200,000 net acres• ~22 wells in 2012
China• JSA’s with Sinopec &
PetroChina• ~2 MM gross acres
Beetaloo Basin• >6.2 MM gross
acres• Seismic underway
Bakken Shale• >800,000 net acres• 16 rig program in
2012
Canning Basin• >2 MM net acres• Aeromagnetic survey in
2012
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Hess: An Established History in the Bakken…
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Hess: Bakken Operations…
Hess ~67 percent working interest - operator
~900,000 net acres 5 frac crews 16 rig program Expanding advantaged
infrastructure
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North Dakota is in an enviable position:
At 3 percent the unemployment rate is the lowest in the country compared to a national average of 8 percent.
Of the 15 counties in America with the lowest unemployment rates, 11 are in North Dakota.
Hess paid royalties of more than $144 million to State and local residents in 2011 - a 300 percent increase on the $36 million paid in 2006.
State GDP grew 7.1 percent in 2010 - almost three times the nationwide average.
The Future Looks Bright
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2011 Actual Expenditures $7.4 billion
Bakken $2.4 billion
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North Dakota: Growth Brings Challenges…
Bakken activity rapidly acceleratingIndustry must manage above-ground risk tominimize impact to host communities:
Ensuring workforce safety
Protecting water quality
Protecting air quality
Minimizing impact on local infrastructure
Living and working in local communities
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High activity levels and less experienced workforce are leading to poor safety performance and an increased risk of serious injury or death
Hess workforce has invested heavily in training and leadership development
Industry must join together in setting common standards and expectations around safety
Ensuring Workforce Safety
Industry Challenges:• New/transient workforce• Consistency
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State blessed with abundant natural water supply; Industry needs to play its part to preserve it
Our commitment: Protect water quality through precise drilling, appropriate sourcing, storage and disposal of water used in drilling
Continually seeking innovative ways to reduce water required for fracturing
Successfully piloted Reverse Osmosis Plant to utilize brackish water for fracturing if necessary
Protecting Water Quality…
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Well pad at EN-Rehaka, Bakken
Industry Challenges:• Fresh water use• Water disposal
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Industry must work together to develop and apply mitigating technologies Our current flaring levels are below the State
average and will decrease even further as new capacity at the Tioga Gas Plant comes online in 2013.
Installation of four compressor stations to reduce flaring across our operations
50 vapor recovery units installed across operations to capture gas that would otherwise release into environment
Industry/government must drive continuous reductions in flaring
Protecting Air Quality…
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Tioga Gas Plant
Industry Challenges:• Flaring• Emissions
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Minimizing Impact on Local Infrastructure…
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Industry Challenge:• Roads / truck traffic• Facility construction
Shale energy operations are truck intensive -- particularly in early development, meaning more pressure on local roads
At Hess we invest in mid-stream technology to remove 200 trucks loads per day from North Dakota roads
Lean approach creates efficiency to minimize truck movements
Industry must work together to reduce trucking and overall road traffic
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A cooperative public-industry partnership can enhance industry benefits and mitigate the challenges
Hess donated $1 million to aid flood relief efforts
Hess donated $25 million to establish Succeed 2020 – a government education program in North Dakota
Opportunity for state -- Partner with communities to accelerate infrastructure growth
Living and Working in Local Communities…
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Industry Challenge:• Jobs• Growth• Quality of life
Hess employees assisting with flood relief efforts
Hess donating $25 million to Succeed 2020
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Ensuring workforce safetyProtecting water qualityProtecting air qualityMinimizing impact on local infrastructureLiving and working in local communities
License to Operate: Socio-economic Impacts andthe Public-Industry Partnership
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