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Letter from the Chairman...
On January 12th, the Division of Oil, Gas, and Geothermal Resources (Division) held a Bonding and Idle Well Workshop Seminar at the Long Beach Petroleum Club. The purpose of the meeting was to explain the new legislation, SB 1763, that went into effect on January 1, 1999. The statute amends a number of sections of the Public Resources Code regarding well bonding, acquisition, and long-term idle wells. The seminar was well attended by both industry and regulatory groups. Thanks to WSPA, CIPA and the CCCOGP for their participation.
The annual SPE/API Golf Tournament is on June 4th. Tim Liggett, Honorary Golf Chairman, said that he expects a good turnout this year. If you are planning to participate, please make your reservations early. Also, Tim is looking for a replacement Chairperson to handle the golf tournaments beginning next year. He would like to get someone on board quickly so he could train the person while he is organizing this year's tournament. If you are interested, please call him at (562) 981-6364. Remember, the money generated from these tournaments goes towards scholarships for students in our local colleges and universities. Almost $65,000 has been awarded for scholarships since the event began approximately ten years ago. The SPE is deeply grateful for Tim's hard work and effort. Also, Paul Frost, who has helped Tim for the last nine year's, could not participate in this year's tournament. Nevertheless, the SPE also recognizes his hard work and effort, too. Thank you both!
SCHEDULE of EVENTS
Board of Directors Meeting
Petroleum Technology Forum
Desk & Derrick Club
All the above events will be held at the
PETROLEUM TECHNOLOGY FORUM
Ed Santiago, Chairman, DOGGR, (714) 816-6847
DATE:Tuesday, February 9, 1999
TIME: 11:30 am - Social
PLACE:Long Beach Petroleum Club
COST: $15.00 General Admission
RESERVATIONS: Not Required
SPEAKER: Kurt-Martin Strack
TOPIC:"Through Casing Resistivity Logging"
Electrical logging plays a key role in the locating of hydrocarbons because of its ability to distinguish between oil and water saturation. During the past five years, fundamental changes in the logging tool design, data processing and interpretation have led to a new generation of array resistivity and induction tools. The advances in electronic hardware and computer modeling also made possible through casing resistivity measurement. This ability has allowed the arena of casing hole logging to be reexamined.
The presentation will give a short summary of the basic principles underlying the new tool developments and emphasizes numerous case histories of through casing resistivity logging.
Mr. Strack holds a Ph.D. from the University of Cologne, Germany and an MS from the Colorado School of Mines. He has authored over one hundred technical papers, one textbook and several patents. He has received a Fulbright scholarship and several international grants or awards throughout his career.
COLLEGE SCHOLARSHIPS AWARDED
SPE college scholarships for the 1998/99 school year were awarded at the January Petroleum Technology Forum.
Ten students from the University of Southern California and California State University Long Beach shared this years award of $6,400. The winners were determined based on their scholastic achievement, SPE involvement, volunteer work and industry experience. All scholarship recipients are SPE student chapters members.
CSULB 5 scholarships totaling $3,000
Khalil Kairouz GPA-4.0 $1000
USC 5 scholarships totaling $3,400
Sally Morton GPA-3.9 $ 800
Scholarships are funded by the annual SPE-API-Desk & Derrick Golf Tournament with an added 20% coming from the membership fees supplied by the SPE headquarters. The Los Angeles Basin Section would like to thank our membership and the oil industry for making the golf tournament such a success, and continuing to support Petroleum Engineering students.
THE TRUE COST OF U.S. OIL IMPORTS
In the years since the 1973 oil embargo and the 1991 War in the Persian Gulf, America has become more dependent than ever on imported oil. Lured by the high supply and low prices of oil on the international market, many lawmakers appear unconcerned by this trend. In reality, however, our country pays a high price for this supposedly low-cost oil.
How much imported oil does the United States use? The quantities are vast.
In 1997, average daily imports reached an all-time record of 9.8 million barrels per day, or a four-percent increase over 1996 levels. As a result, we now import more than 51 percent of our total supply of petroleum products, up from 45 percent just five years earlier.
Perhaps the most troubling implication of this trend has been the loss of American jobs due to the decline in the domestic energy industry. Amounting to more than 500,000 positions lost since the early 1980's, the result has been economic disruption, including the costs of retraining and relocation, as well as the devastation of American families. In addition, valuable job skills have been lost, since workers who have moved to other industries are not likely to be readily available should the domestic energy producers need to rapidly increase production in the event of disruptions to foreign oil supplies.
The need to protect the Persian Gulf in order to ensure our continued access to foreign oil supplies also places a heavy burden on our nation's defense budget. Currently, $50 billion of the $260 billion annual Pentagon budget is spent defending the Gulf, accounting for more than 19 percent of the total budget. This comes at a time when all branches of the armed forces are downsizing, and struggling to find money to maintain educational and other quality-of-life benefits for service members and their families.
Oil imports further comprise on the largest single components of the nation's trade deficit. Costing more than $60 billion annually, imports have reached record levels at a time when many are already expressing concern about the potential impact on the economy of the recent downturn in foreign markets. Thus, the continued exodus of American capitol reduces funds that would otherwise be available for education, health care, and the maintenance of the domestic infrastructure.
Ironically, many of the principal beneficiaries of both American defense dollars and the funds spent to purchase oil imports appear to have at best, mixed feelings towards the United States. For instance, American troops stationed in Saudi Arabia are kept well out of the public eye, both for security reasons and out of respect for "host country sensibilities." While the anti-American attitude that prevails in post-revolutionary Iran suggests that our formerly close trade ties with the country did little to improve long-term relations.
In the light of these factors, lawmakers should carefully consider strategies to maintain a viable domestic oil and natural gas industry. Relying on the current glut of foreign oil to meet U.S. energy needs is a strategy that, while cheap in the short-term, carries a high long-term price tag.
Wm. Terry Smith