1. Bite of Science

2. 2 Typical Student Questions How did you pick your career? What do you do every day? Is your job dangerous? Do you have a boss? Is there opportunity for advancement? Do you travel? How much money do you make?

3. 3 Where I’ve Worked Internships LSU petrophysics lab LSU environmental lab Union Texas Petroleum Career UNOCAL  Drilling engineer Schlumberger  Marketing manager FMC Technologies  Drilling product manager Aramco Services Co.  Petroleum research

4. 4 Why I Chose Petroleum Engineering To experience the world To be financially independent To work inside AND outside To enjoy what I do every day To work with technology To be challenged To make a difference

5. 5 Where Would We Be Without Petroleum? Artificial Hearts Aspirin Balloons Bandages Blenders Cameras Candles CD Players Clothing Compact Discs/DVDs Computers Containers Crayons Credit Cards Dentures Deodorant Digital Clocks Dyes Fertilizers Food Preservatives Footballs Furniture Garbage Bags Glasses Glue Golf Balls Hair Dryers Hang Gliders House Paint Ink Insecticides Life Jackets Lipstick Luggage Medical Equipment Medicines MP3 Players Pantyhose Patio Screens Perfumes Photographic Film Photographs Piano Keys Roller Blades Roofing Shampoo Shaving Cream Soft Contact Lenses Surfboards Telephones Tents Toothpaste Toys Umbrellas You can kiss lipstick goodbye!

6. 6 How High School Prepared Me What in high school helped my career?  Physicsgreat teacher—problem solving  Mathanalytical thinking, and math of course  Biologyenvironmental awareness  Frencha desire to travel; other cultures  Englishcommunicating  PEteamwork What do I wish I had taken?  More languages  Geography  Advanced chemistry

7. 7 Typical Student Questions How did you pick your career? What do you do every day? Do you have a boss? Is your job dangerous? Is there opportunity for advancement? Do you travel? How much money do you make?

8. 8 A Day in the Life Drilling Engineer Design oil wells Supervise work on rigs Solve unexpected problems Give presentations Marketing & Research Create new tools Experiment & research Analyze markets and spot trends Give presentations

9. 9 Typical Student Questions How did you pick your career? What do you do every day? Do you have a boss? Is your job dangerous? Is there opportunity for advancement? Do you travel? How much money do you make?

10. 10 Multiple Supervisors From NO boss to 5 bosses Women and Men Younger and Older American, European, African, Asian, Latin American

11. 11 Typical Student Questions How did you pick your career? What do you do every day? Do you have a boss? Is your job dangerous? Is there opportunity for advancement? Do you travel? How much money do you make?

12. 12 Risks at Work Risks exist in all industries  Working with heavy equipment  Hydrocarbons under pressure  Unexpected events Safety precautions  Regular training  Anyone can STOP work “Deadliest Danger Isn’t at the Rig but on the Road”  Driving training

13. 13 Typical Student Questions How did you pick your career? What do you do every day? Do you have a boss? Is your job dangerous? Is there opportunity for advancement? Do you travel? How much money do you make?

14. 14 Engineering Opens Doors Subsea Engineering Project with FMC Technologies in Norway

15. 15 Typical Student Questions How did you pick your career? What do you do every day? Do you have a boss? Is your job dangerous? Is there opportunity for advancement? Do you travel? How much money do you make?

16. 16 Citizen of the World North America  United States Alabama Alaska Colorado Florida Louisiana Mississipi Oklahoma Pennsylvania Texas  Canada  Mexico Europe  England  Scotland  France  Germany  The Netherlands  Norway  Russia Middle East  Abu Dhabi  Dubai  Saudi Arabia Asia  Japan  Indonesia  Malaysia  Singapore South America  Brazil

17. 17 Typical Student Questions How did you pick your career? What do you do every day? Do you have a boss? Is your job dangerous? Is there opportunity for advancement? Do you travel? How much money do you make?

18. 18 MajorAverage Salary Engineering$59,000 Computer Science$56,000 Business$48,000 Health Sciences$43,000 Math & Sciences$41,000 Communications$40,000 Education$37,000 Humanities & Social Sciences$35,000 Average Starting Salaries

19. 19 RankMajorStartingMid Career 1Petroleum Engineering$98,000$163,000 2Aerospace Engineering$62,500$118,000 3Actuarial Mathematics$56,100$112,000 4Chemical Engineering$67,500$111,000 5Nuclear Engineering$66,800$107,000 6Electrical Engineering$63,400$106,000 7Computer Engineering$62,700$105,000 8Applied Mathematics$50,800$102,000 9Computer Science$58,400$100,000 10Statistics$49,300$99,500 11Physics$51,200$99,100 12Mechanical Engineering$60,100$98,400 13Biomedical Engineering$54,900$98,200 14Government$42,000$95,600 15Economics$48,500$94,900 16International Relations$40,600$93,000 17Materials Science$60,100$91,900 18Industrial Engineering$59,900$91,200 19Software Engineering$59,100$90,700 20Environmental Engineering$47,900$89,700

20. 20 RankMajorStartingMid Career 21Geology$45,000$89,400 22Civil Engineering (CE)$53,800$88,800 23Management Information Systems (MIS)$51,600$88,600 24Biochemistry (BCH)$43,200$88,500 25Chemistry$44,700$87,500 26Electrical Engineering Technology (EET)$58,400$86,900 27Information Systems (IS)$50,900$86,700 28Construction Management$49,500$86,100 29Mathematics$48,500$85,800 30Finance$47,700$85,400 31Molecular Biology$40,100$84,900 32Computer Information Systems (CIS)$49,000$84,800 33Mechanical Engineering Technology (MET)$52,900$83,400 34Biotechnology$41,400$82,800 35Information Technology (IT)$48,900$81,700 36Industrial Technology (IT)$49,700$81,300 37Food Science$44,000$81,100 38Civil Engineering Technology (CET)$49,500$80,500 39Industrial Design (ID)$43,600$80,300 40Urban Planning$39,000$79,900

21. 21 RankMajorStartingMid Career 41Advertising$37,800$77,100 42 - tieFilm Production$37,500$76,700 42 - tieSupply Chain Management$50,500$76,700 44 - tieMarketing Management$40,700$76,600 44 - tieTelecommunications$41,600$76,600 44 - tieInternational Business$42,500$76,600 47Global & International Studies$40,200$76,500 48Microbiology$39,700$76,200 49Occupational Health and Safety$49,600$76,000 50Classics$35,300$75,900 51Architecture$41,900$75,200 52Linguistics$38,300$74,900 53Political Science (PolySci)$40,300$74,700 54Accounting$44,300$74,500 55Marketing & Communications$39,100$73,900 56Environmental Science$39,800$73,600 57American Studies$40,900$72,800 58Philosophy$38,300$72,600 59Biology$39,100$72,200 60Literature$39,200$72,000

22. 22 RankMajorStartingMid Career 61 - tieHistory$39,000$70,200 61 - tieNursing$54,100$70,200 63Business$41,400$70,000 64Zoology$36,500$69,700 65Agriculture$38,000$69,300 66Health Sciences$39,000$68,700 67German$41,300$68,500 68Communications$38,900$68,400 69Geography$39,800$67,400 70Landscape Architecture$40,600$66,300 71Spanish$35,900$65,900 72Hotel Management$40,400$65,800 73 - tieEnglish$38,100$65,500 73 - tieForestry$42,000$65,500 75French$39,500$65,100 76Public Relations (PR)$36,500$65,000 77Multimedia and Web Design$40,500$64,900 78Journalism$36,800$64,700 79 - tieSpeech Communication$38,700$64,400 79 - tieRadio & Television$35,900$64,400

23. 23 SHALE PLAYS

24. 24

25. 25 Source: Baker Hughes online rig count 03-19-13 ● Gas rig ▲ Oil rig ♦ Geothermal Marcellus Fayetteville Haynesville Eagle Ford Niobrara Barnett Bakken Monterey Woodford Active Drilling Rigs United States 1,776 Canada 503 Rest of World 1,275

26. 26 EIA World Shale Map

27. 27 Rapid Production Decline Source: MIT analysis, HPDI database, industry reports 80% of production occurs in first 2 years Early production dominated by frac system permeability, fracture spacing, lateral length Production history not available except in Barnett Statistical plays – most wells are average

28. 28 Depths of Major Plays

29. 29 Barnett Shale— Birthplace of Unconventional Shales 1997Water fracs 1999Refracs 2003 Horizontal drilling 2004 4,000 wells 375 horizontal 201115,000 wells10,000 horizontal 90% of production from horizontal wells Source: EIA, Texas Railroad Commission Core Area Only ¼ of Entire Play

30. 30 Barnett Shale Pad Drilling in City Limits Source: Barnett Shale Energy Education Council

31. 31 21-Well Pad in Barnett Photo courtesy of FMC Technologies and Devon Energy

32. 32 2-Well Pad in Haynesville Photo courtesy of Petrohawk Energy

33. 33 Marcellus Wells

34. 34 Operational Efficiencies in Marcellus Source: Seneca Resources

35. 35 Bakken Shale—Unconventional Oil Play Driven by high oil price 500,000 bopd  90% from horizontals Setbacks  Lack of personnel  Housing shortages  Logistics and trucking issues  Oil transport

36. 36 Eagle Ford—Liquids and Gas 2007Vertical wells21,000 bopd 2008Hz drilling introduced 2009Horizontal wells29,000 bopd 201060,000 bopd 201180,000 bopd First horizontals  11,100’ TVD  3,200’ lateral  10 stages  7.6 MMcfd Economic impact  $25B in South Texas  47,000 full-time jobs  $3.1B salaries

37. 37 Estimated Water Needs for Drilling and Fracturing Select U.S. Shale Plays Shale Gas Play BarnettEagle FordFayettevilleHaynesvilleMarcellus Drilling water per well, bbl 6,0003,0001,00014,0002,000 Fracturing water per well, bbl 107,000115,00069,000119,000130,000 Total water per well, bbl 123,000118,00070,000133,000132,000 Note: Upper sections of Fayetteville and Marcellus wells are drilled with air or mist. Water Use for Unconventional Drilling Source: Texas Water Development Board, fracfocus.org, company web sites

38. 38 Key Water Issues

39. 39 Development Issues Poor public perception of all oilfield activity  Misunderstanding hydraulic fracturing  Negative press  Hydraulic fracturing bans Increased heavy truck traffic  Deterioration of roads  Improper fluid disposal Water use  Competes with civic and farm use  Disposal concerns Gas leaks in older wells  Poor cement jobs  Gas migration from many sources Environmental concerns  Flowback fluids  Chemical additives in fracturing recipe Source: Barnett Shale Energy Education Council

40. 40 Public Animations Chesapeake animation of plug and perf PackersPlus animation of ball-drop sliding sleeve completion PackersPlus animation of ball-drop sliding sleeve completion Team Oil Tools cemented hole and openhole ball drop system Team Oil Tools cemented hole and openhole ball drop system Magnum Oil Tools composite plug—plug and perf and drill out Magnum Oil Tools composite plug—plug and perf and drill out

41. 41 Comparison of Data for Gas Shales in the United States Gas Shale BasinBarnettFayettevilleHaynesvilleMarcellusWoodfordAntrimNew Albany Estimated basin area, sq mi 5,0009,000 95,00011,00012,00043,500 Depth, ft 6,500 – 8,500 1,000 – 7,000 10,500 – 13,500 4,000 – 8,500 6,000 – 11,000 600 – 2,200 500 – 2,000 Net thickness, ft 100 – 60020 - 200200 - 30050 - 200120 - 22070 – 12050 – 100 Depth to base of treatable water, ft ~1,200~500~400~850~400~300~400 Rock column thickness, top of pay to bottom of treatable water, ft 5,300 – 7,300 500 – 6,500 10,100 – 13,100 2,125 – 7,650 5,600 – 10,600 300 – 1,900 100 – 1,600 Total organic carbon, % 4.54.0 - 9.80.5 - 4.03 - 121 - 141 - 201 – 25 Total porosity, % 4-52 - 88 - 9103 - 9910 - 14 Gas content, scf/ton 300 - 35060 - 220100 - 33060 - 100200 - 30040 - 10040 - 80 Water production, bbl/day N/A 5 - 500 Well spacing, acres 60 - 16080 - 16040 - 56040 - 16064040 - 16080 Original gas in place, tcf 327527171,5002376160