American Oil and Gas Reporter - October 2024 - 81

is really going on, because there is no
question that there are some well-organized
and influential groups in New
Mexico that want to eliminate oil and
gas activity entirely. "
" We are hearing about proposals to
amend the New Mexico Oil and Gas Act
for statewide setbacks again, which probably
will draw a high amount of concern, "
Robertson relates. " We also want to continue
to push for regulatory framework
supporting produced water use outside
the industry. Our annual meeting included
a session on produced water possibilities,
and it reinforced that there is great potential
to put produced water to good use after it
is treated and tested. "
Shepperd predicts infrastructure of all
sorts will be part of PBPA's agenda in
the 2025 Texas Legislature. " I expect we
will focus a lot on roads, water and electricity, "
he clarifies.
Another sure bet is that PBPA will advocate
for the RRC and Texas Commission
on Environmental Quality to receive adequate
funding, Robertson says. " Our industry
is generating a lot of revenue, and
maintaining that requires strong regulatory
bodies, " he relates. " We understand there
are a lot of needs in a growing state, but
that has to be a priority. "
A growing issue that he suspects will
appear high on PBPA's checklist deals
with oil field crime. Such legislation may
entail changing the punishments associated
with certain types of activities or ways to
better monitor crude oil sources, he speculates,
because oil field theft is not only
becoming more common, but also more
sophisticated. " Oil and copper account
for about 70% of the stolen value, " Robertson
reports. " People are taking tanker
trucks out to older, vertical producing
assets and loading up. "
Sparks has firsthand experience of
how costly and disruptive these attacks
can be. " I have been hit hard, especially
in places out on the edges, " he recounts.
" They go out and steal the oil. "
" These are not just crimes of opportunity.
They take organization, " Robertson suggests.
" I don't think everything is funneled
to a single kingpin or anything, but it very
much organized criminal activity involving
a concerning number of participants. "
A Busy Time
Despite the broad array of challenges,
Permian Basin activity is still going
strong, Shepperd reports. " We are charging
ahead because we firmly believe that energy
demand will continue to grow, " he
assesses. " We also have had about $100
billion in merger and acquisition activity
in the last year or so, and I don't think
that is finished. "
" Activity appears steady, " Robertson
says. " The mergers and acquisitions mean
we are seeing companies put newly acquired
assets up for sale. I have heard
concerns about the declining number of
companies, but somebody is going to
pick up those assets, and it may be new
companies that did not exist before. "
Such transactions are not unusual during
periods of industry consolidation,
Sparks observes. " Generally, companies
will spin off outlying acreage that is not
as high on their priority lists, " he says.
" That is when smaller companies get a
chance to pick up some of those leases. "
The new owners' efforts often uncover
previously unseen potential, Sparks reflects.
" Companies like ours tend to take
more risks with new technology and
give it a shot, " he explains. " Horizontal
development in the Spraberry and Wolfcamp
is a good example of smaller independents
proving a new technology
before the bigger ones try it. A lot of
smaller companies have grown because
we always are looking for ways to make
things work better. "
While Discovery Operating's business
model keeps the company from owning
any portion of the wells it operates, Sparks
notes that he and other Discovery executives,
such as his brothers Chief Executive
Officer Kevin Sparks and Chief Financial
Officer Todd Sparks, take personal ownership
stakes.
" I invest as an individual in every well
we drill, " he describes. " Discovery Operating
is paid an administrative fee to
operate the well, which is owned by individual
investors. If we do not owe money
to a bank or investment firm, we can
pretty much handle the development as
necessary, without financiers telling us
what to do. It is an old, rarely-used model,
but it allows us to do things our way. "
Sparks says he also has skin in game
with PBPA. " It is not only a two-year
chairmanship, but more like a six-year
run, " he considers. " I was chairmanelect
for two years, and after two years
as chairman, I will have another couple
years as immediate past-chairman. Of
course, I like having our current Immediate-past
Chairman Tommy Taylor at
the events and Executive Committee
meetings. He will be a part of what is
going on to make sure things continue
to flow smoothly. "
❒
TIPRO Says Texas Oil And Gas
Continues Hiring New Workers
AUSTIN, TX.-Citing the latest Current
Employment Statistics report from the
U.S. Bureau of Labor Statistics, the Texas
Independent Producers & Royalty Owners
Association is highlighting new employment
figures showing the third consecutive
month of growth in upstream employment
in Texas during August. According to
TIPRO's analysis, direct Texas upstream
employment for August totaled 194,400,
an increase of 1,000 industry jobs from
revised July employment numbers. The
Texas upstream employment data represents
a decrease of 1,700 jobs in oil and gas extraction,
and an increase of 2,700 positions
in the services sector, last month.
TIPRO says new workforce data yet
again indicated strong job postings for the
Texas oil and natural gas industry. According
to the association, there were 11,823 active
unique jobs postings for the Texas oil and
natural gas industry in August, an increase
of 299 posted employment opportunities
compared with July and 4,602 new job
postings added during the month by companies.
In comparison, California had 4,416
unique job postings in August, followed
by Florida (2,147), New York (1,684),
Pennsylvania (1,662) and Louisiana (1,564).
TIPRO reports a total of 60,396, unique
job postings nationwide in August within
the oil and natural gas sector, an increase
of 630 compared with July.
Among the 19 specific industry sectors
TIPRO uses to define the Texas oil and
natural gas industry, gasoline stations
with convenience stores led in the ranking
for unique job listings in August with
3,208 postings, followed by support activities
for oil and gas operations (2,495)
and crude petroleum extraction (1,021).
The leading three cities by total unique
oil and natural gas job postings were
Houston (2,960), Midland (859) and
Odessa (441), TIPRO indicates.
The top three companies ranked by
unique job postings in August were Love's
(1,032), Cefco (994) and Energy Transfer
(417), according to the association. Of
the top 10 companies listed by unique
job postings that month, five companies
were in the services sector, three in the
gasoline stations with convenience stores
category, one midstream company and
one upstream company. Top posted industry
occupations for August included first-line
supervisors of retail sales workers (632),
heavy and tractor-trailer truck drivers
(402), and general maintenance and repair
workers (371). The top posted job titles
OCTOBER 2024 81
American Oil and Gas Reporter - October 2024

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