energy tubulars: supply update and demand prospects · current energy pipe mill capacity &...
TRANSCRIPT
Energy Tubulars: Supply Update and Demand Prospects
Geoff O’Donnell
Manager-Energy
Tubular Products
Annual Convention
San Diego, CAFebruary 6 – 8, 2020
This presentation has been prepared by Wheatland Tube for delivery in Wheatland Tube’s presentation at the
NASPD Annual Conference on Feb 6-8, 2020. It has not been prepared for the benefit of any particular attendee
and may not be relied upon by any attendee or other third party. If, notwithstanding the foregoing, this
presentation is relied upon by any person, Wheatland Tube does not accept, and disclaims, all liability for loss
and damage suffered as a result.
The information contained in these slides may be retained by attendees. However, these slides and the contents
of this presentation may not be disclosed to any other person or published by any means without Wheatland
Tube’s prior written permission.
Disclaimer
3
Agenda
4
Energy Tubulars: Supply update and Demand prospects
❑ Current Energy Pipe Mill Capacity & Utilization in North America
❑ An examination of current Tubular demand load
❑ A look at Renewables and the impact on Energy Tubulars
❑ How geopolitical events are shaping the global oil and gas industry
❑ The historical role of Line Pipe in Warfare
No. America Energy Pipe Mill Capacity/Utilization
5
LP DSAW MILLS
1 Berg Panama CityFL
2 Berg Mobile AL
3 Dura Bond Steelton PA
4 Evraz Pittsburg CA
5 Evraz Camrose AB
6 Evraz Portland OR
7 Evraz Regina SK
8 Jindal TubularBay St. LouisMS
9 JSW Baytown TX
10 Stupp Baton RougeLA
11 Welspun Little Rock AR
CANADA OCTG ERW MILLS
1 Evraz Calgary AB
2 Evraz Red Deer AB
3 Tenaris Calgary AB
4 Welded Tube of CanadaLackawannaNY
5 Welded Tube of CanadaConcord ON
ERW LINE PIPE: > 16"
1 American Birmingham AL
2 California SteelFontana CA
3 California SteelFontana CA
4 Durabond/USSMcKeesport PA
5 Stupp Baton RougeLA
6 Welspun Little Rock AR
OCTG ERW MILLS
1 Axis Pipe Bryan TX
2 Bellville TubeBellville TX
3 Boomerang Liberty TX
4 Borusan MannesmannBaytown TX
5 Centric Bossier City LA
6 Seah Steel USAHouston TX
7 Tejas TubularStephenville TX
8 Tenaris Hickman AR
9 Tenaris-TMKComanche IA
10 Tenaris-TMKBlytheville AR
11 USS Lone Star TX
12 USS Lone Star #1 TX
13 Wheatland TubeNiles OH
ERW LINE PIPE: 0" - 16"
1 Evraz Camrose AB
2 Leavitt Tube Chicago IL
3 Paragon Sapulpa OK
4 Tenaris-TMKWilder KY
5 Texas Tubular PrLone Star TX
6 Tex-Tube Atchison KS
7 Tex-Tube Houston TX
8 Wheatland TubeWarren #1 OH
SEAMLESS MILLS
1 USS Lorain #3 OH
2 USS Fairfield AL
3 Tenaris Vera Cruz MX
4 Tenaris Sault Ste MarieON
5 Tenaris Bay City TX
6 Vallourec Youngstown OH
7 Vallourec Youngstown OH
8 Tenaris-TMKAmbridge PA
9 Benteler Caddo LA
10 Evraz Pueblo CO
15,970,00015,970,000ERW OCTG USA 3,545,000
ERW OCTG CAN 1,480,000
15,970,000
ERW LINE PIPE: 0" - 16" 1,660,000
ERW LINE PIPE: > 16" 2,735,000
SEAMLESS MILLS 4,130,000
LP DSAW MILLS 2,420,000
TOTAL CAPACITY
15,970,000
UTILIZATION %
6,538,900 41%
1,168,900 33%
444,000 30%
518,000 31%
877,500 32%
2,021,000 49%
1,509,500 62%
15,970,000
Diff Tons fr Q4 2019
(1,944,850) 53%
(516,600) 48%
(176,000) 42%
(97,000) 37%
(616,250) 55%
(342,000) 57%
(197,000) 71%
All Tubulars: Performance 2017- 2018 - 2019
6
2%
9%
1%
-4%
6%
6%
-9%
-1%
0% -1%
-19%
-19%
11 Yr Avg '08 -'18
OCTG 5,558,294
LINE 3,923,293
MECHANICAL 2,864,434
STRUCTURAL 2,739,493
STANDARD 1,896,483
PRES/SS 361,085
17,343,083
% Diff Ton Diff
2% 128,750
13% 508,104
17% 492,604
17% 456,835
-14% -259,908
-22% -79,627
7% 1,246,759
2018
6,093,507
4,371,593
3,286,767
3,213,732
1,989,976
343,546
19,299,121
PRODUCT
OCTG
LINE
MECHANICAL
STRUCTURAL
STANDARD
PRES/SS
Comparing
2019 vs 2018
% Diff Ton Diff
-9% -531,265
-1% -50,934
0% 1,786
-1% -24,713
-19% -374,558
-19% -65,694
-5% -1,045,378
2019
5,562,242
4,320,659
3,288,553
3,189,019
1,615,418
277,852
18,253,743
OCTG – Line Pipe Performance
7
5,555,652
4,112,709
9,668,361
57%
43%
100%
OCTG Avg
LP Avg
Total Avg
-9%
-1%
-5%
2017 2018 2019 12 Yr Avg
9,961,600 10,465,100 9,865,853 TOTAL 9,540,013
5,649,515 5,027,321 4,181,384 IMPORT 4,970,171
4,312,085 5,437,779 5,684,469 DOMESTIC 4,569,842
43% 52% 58% % Domestic 48%
9% 6% 10%
Domestic Market Share increases
after Section 232 is implementedData by Import vs Domestic
API Licensed Mills of the World: 5L, 5CT
8
# Country % of TTL Total Welded % Welded Smlss % Smlss 5L # 5CT #
1 China 33% 148 93 63% 55 37% 141 75
2 United States 9% 42 32 76% 10 24% 41 28
3 India 6% 29 27 93% 2 7% 29 8
4 South Korea 6% 27 26 96% 1 4% 27 11
5 Turkey 4% 16 16 100% 0 0% 16 4
6 Mexico 3% 15 13 87% 2 13% 14 5
7 Germany 3% 15 10 67% 5 33% 15 8
8 Japan 3% 13 9 69% 4 31% 13 7
9 Saudi Arabia 2% 11 9 82% 2 18% 11 4
10 Italy 2% 10 8 80% 2 20% 10 5
11 Russia 2% 10 4 40% 6 60% 10 8
12 Indonesia 2% 9 8 89% 1 11% 9 3
13 Taiwan 2% 7 7 100% 0 0% 7 6
14 UAE 2% 7 7 100% 0 0% 7 2
15 Canada 2% 7 6 86% 1 14% 6 6
16 Pakistan 2% 7 6 86% 1 14% 7 1
17 Brazil 2% 7 5 71% 2 29% 7 5
18 Argentina 1% 6 5 83% 1 17% 6 6
19 Macedonia 1% 4 4 100% 0 0% 4 0
20 Vietnam 1% 4 4 100% 0 0% 4 2
21 Algeria 1% 4 3 75% 1 25% 4 1
22 Spain 1% 4 2 50% 2 50% 4 2
23 Thailand 1% 4 2 50% 2 50% 4 2
24 Romania 1% 4 1 25% 3 75% 4 3
25 Egypt 1% 3 3 100% 0 0% 3 0
# Country % of TTL Total Welded % Welded Smlss % Smlss 5L # 5CT #
26 Malaysia 1% 3 3 100% 0 0% 3 1
27 South Africa 1% 3 2 67% 1 33% 3 2
28 Czech 1% 3 1 33% 2 67% 3 2
29 Ukraine 1% 3 1 33% 2 67% 3 3
30 Chile 0% 2 2 100% 0 0% 2 0
31 England 0% 2 2 100% 0 0% 2 1
32 Nigeria 0% 2 2 100% 0 0% 2 0
33 Kazakhstan 0% 2 1 50% 1 50% 2 1
34 Slovak 0% 2 1 50% 1 50% 2 1
35 France 0% 2 0 0% 2 100% 1 2
36 Poland 0% 2 0 0% 2 100% 2 2
37 Azerbaijan 0% 1 1 100% 0 0% 1 0
38 Bangladesh 0% 1 1 100% 0 0% 1 0
39 Brunei 0% 1 1 100% 0 0% 1 1
40 Colombia 0% 1 1 100% 0 0% 1 1
41 Greece 0% 1 1 100% 0 0% 1 1
42 Israel 0% 1 1 100% 0 0% 1 0
43 Kuwait 0% 1 1 100% 0 0% 1 0
44 Mozambique 0% 1 1 100% 0 0% 1 1
45 Oman 0% 1 1 100% 0 0% 1 1
46 Philippines 0% 1 1 100% 0 0% 1 1
47 Venezuela 0% 1 1 100% 0 0% 1 1
48 Austria 0% 1 0 0% 1 100% 1 1
49 Belarus 0% 1 0 0% 1 100% 1 1
50 Georgia 0% 1 0 0% 1 100% 1 1
# Country % of TTL Total Welded % Welded Smlss % Smlss 5L # 5CT #
50 Grand Total 100% 453 336 74% 117 26% 442 227
API Licensed Mills of the World: 5L, 5CT
9
Eastern HemisphereWestern Hemisphere WORLD TOTAL 453 Licenses
TOTAL %
453 100%
Welded 336 74%
Seamless 117 26%
% WORLD
TYPETOTAL %
372 82%
Welded 271 73%
Seamless 101 27%
% Within Hemisphere
EASTERNTOTAL %
81 18%
Welded 65 80%
Seamless 16 20%
% Within Hemisphere
WESTERN
43%
4%
14%
11%
10%
5%
4%
8%
1%
Welded
Seamless
14 3
Country # Mills Welded Smlss
Brazil 7 5 2
Argentina 6 5 1
Chile 2 2 0
Colombia 1 1 0
Venezuela 1 1 0
So America 17
Data Source: API.org
TYPE QNTY
LINE PIPE Only 226
OCTG Only 11
BOTH 108
TOTAL # MILLS 345
TOTAL Licenses 453
Zekelman Industries
10
API 5L, ½” – 6”
API 5CT, Green Tube
thru 13-3/8”
ASTM A53- ¼” – 18”
ASTM A795- 1” – 8”
UL 6, 797- ½ ” – 6”
ASTM A513 Types 5- 6,
½” – 9”
ASTM A500, A1085, A252
1-1/4” – 20”
End Use Applications
➢ Infrastructure/Civil Projects
➢ Stadiums/Arenas
➢ Solar Energy
➢ Non-Residential Construction
➢ Transportation/DOT
➢ Agriculture & Construction Equip
➢ Material Handling Equipment
➢ Water Treatment facilities
➢ Oil & Gas
Cast-steel connectors for
design & assembly of
modular buildings.
Fittings
UL 6, 797- ½ ” – 6”
Largest tubular
manufacturer in North
America
17 North American
manufacturing facilities
Revenue: $2+ Billion
Shipments 2+million tons
Capacity: 2.8 million tons
Employees: approx. 2,500
UL 6, 797- ½ ” – 6”
Iconic Applications
•Yankee Stadium — Bronx, NY
•The Pentagon — Washington, D.C.
•John Hancock Center — Chicago, IL
•Independence Hall — Philadelphia, PA
•Empire State Building — NY, NY
•Rogers Centre — Toronto, ON
•And many others
Zekelman Industries: History
11
Tong &
Bell Mill
installed
Acquired
International
Conduit Co
(ICC)
Acquired
Omega Tube
(Sumitomo) in
Little Rock, AR
Acquired
Sawhill
Tubular Div of
AK Steel Corp
CW Mill
installed
Company founded
by John Maneely
as a steel pipe
distributor
Entered
fittings
business
Acquired
Laclede
Steel
Sold cold
draw division
acquired fr
Sawhill
WHEATLANDCarlyle
Group
acquires
97% of JMC
Acquired
Sharon Tube,
(manu CW
pipe & DOM
tubing
Acquired
Lakeside
Steel.
Formed
Energex
Tube
2016
$35 MM
CAPEX at
Wheatland
CW Mill
2017
Acquires
Western
Tube,
Energex
Tube
closes
202020122011 20132006 2007
1984 1990 1992 1997 1999 2005
Atlas Tube formed
by Harry Zekelman
Acquired
Transamerican Steel
Co. of Westport, CT,
increasing size range
to up to 6”x6”
First high speed
quick change mill
installed
Opened
Plymouth, MI
facility
Installed 16” quick
change mill in
Harrow, ON facility
Acquired
Maverick Tube
Corporation’s
HSS product line
Acquired
Copperweld
HSS business Carlyle
Group
acquires
Atlas Tube,
Zekelman
family
acquires
majority stake
in JMC from
Carlyle Group
Aquires
Allied
Tube
facilities
June 2016
name change
from JMC to
Zekelman
Industries
ATLAS
Launches
Z Modular
modular
construction
solutions.
Acquires
American
Tube
Under Construction
28” ERW Mill
Largest Straight
Seam EW Mill in the
World
200320022001199219741931 1961 19691877
142 Year
History
Drilling Efficiency Continues
12
Oil Count
Gas Count
Total Wells
(Rig Count)
# Horizontal
Wells Double
Rig Count
drops more
than 1,000
Drilling
efficiencies
continue
PROCESS CHANGES: more Frac Proppant used, Longer laterals & more Perf stages
LOWER UNIT COSTS &
PRODUCTION COSTS.
IMPROVED EFFICIENCY GAINS: higher initial production, more effective operations.
HIGHGRADING: operators focusing in the best acreages.
Shale
Production
begins
6.5% 6.8%15.8% 34.5%
57.8%
73.8%
86.4%
88.1%
% Horizontal
Wells
Drilled but Uncompleted Wells (DUCs)
WTI $/bbl
Rig Count
DUCs
Current market price of Crude Oil?
Associated completion difficulties?
Are Crude Oil inventories too high?
Lack of Midstream pipeline infra-structure?
Will some DUCs never be completed?
Is the EIA data accurate/archaic?
Basin DUCs # % DUCs DUCs Tons
Anadarko 632 8% 21,041
Appalachia 427 6% 14,208
Bakken 813 11% 27,053
Eagle Ford 1,427 19% 47,483
Haynesville 214 3% 7,121
Niobrara 448 6% 14,907
Permian 3,612 48% 120,189
7,573 100% 252,003
Midstream Infrastructure Build-out Continues
14
Project Developer(s) Project Type Status Start Yr Miles Pipe D Project Developer(s) Project Type Status Start Yr Miles Pipe D
Enbridge Conversion, ReversalAnnounced 2023
Enterprise Products PartnersExpansion Announced 2022 1,205 20, 16, 14
Phillips 66 New Announced 2021
OneOK Expansion Announced 2021 120 24
Targa Resources Expansion Announced 2021 110 16
ExxonMobil, Lotus Midstream, Delek US, Plains All American (W2W Pipeline JV)New Announced 2021 650 36
Tallgrass Energy New Announced 2021 700 30
Holly Energy, Plains All American (Cushing Connect Pipeline & Terminal LLC JV)New Announced 2021 50
Bridger Pipeline; Phillips 66New Announced 2021
Marathon Logistics; WhiteWater MidstreamNew Announced 2021 525 24
Bridger Pipeline (True Companies)New Announced 2021 137 16
Plains All American Expansion Announced 2021 555
Enterprise Products PartnersNew Announced 2021
TransMontaigne Conversion Announced 2020 16 8, 6
Kinder Morgan Expansion Announced 2020
Plains All American; ValeroExpansion Announced 2020 440 20
Tallgrass Energy Expansion Announced 2020 760
Williams New Announced 2020 188 16
Permico Energia New Announced 2020 510 24
Jupiter New Announced 2020 650 36
Energy Transfer Partners Expansion Announced 2020 352 24
Magellan; Navigator Energy ServicesNew Announced 2020 500 20
Harvest Midstream; PBF Logistics; Phillips 66New Announced 2020
Marathon Pipeline (MPLX); Crimson MidstreamOther Announced 2020 60 30, 20, 16
Bridger Pipeline (True Companies)New Announced 2020 190 24
Enterprise Products PartnersNew Announced 2020
Saddlehorn Expansion Announced 2020 538
Plains All American; Delek LogisticsExpansion Announced 2020 16
NuStar New Announced 2019 47 10
TC Energy New Announced 1,180 36
Energy Transfer Partners, MarEn Bakken Company (owned by Enbridge and Marathon Pipeline), Phillips 66 (Bakken Pipeline JV)Expansion Announced 1,172 30
Marathon Pipeline (MPLX)Reversal Construction 2021 632 40
Shell Midstream PartnersNew Construction 2020 98 16, 12, 10
EPIC Pipeline New Construction 2020 730 30
Energy Transfer Partners New Construction 2020 350 16
OneOK New Construction 2020 530 30, 24
OneOK New Construction 2020 600 20
EPIC Pipeline New Construction 2020 131 12
OneOK Expansion Construction 2020 240 16
DCP Midstream; Enbridge; Phillips 66Expansion Construction 2020 400 20
Enbridge Expansion Construction 2020 1,031 36
Enbridge Expansion Construction 2020 454 42
EPIC Pipeline Conversion Construction 2020 430 24
Harvest Midstream New Construction 2020 24 24
Energy Transfer Partners New Construction 2020 350 20
Enterprise Products Partners; Lavaca Pipe Line CompanyExpansion Construction 2020 91 12.75
Energy Transfer Partners New Construction 2019 15 12
Anandarko, DCP Midstream, Enterprise Products Partners (Front Range Pipeline JV)Expansion Construction 2019 435 16
Wolf Midstream New Construction 2019 40 16
Anadarko; ArcLight; DCP Midstream; Enterprise Products PartnersExpansion Construction 2019 580 20
OneOK Conversion Construction 2019 45 12
OneOK New Construction 2019 300 20
Andeavor; Phillips 66 New Construction 2019 850
Wolf Midstream New Construction 2019 55 16
Anadarko, Magellan, Plains All American (Saddlehorn Pipeline Company); ARB MidstreamNew Construction 2019 38
Enterprise Products PartnersExpansion Construction 2019 624 24
DCP Midstream; SemGroupConversion Construction 2019 564 12
Oil Price: Deviations, Dynamics
15
Seven Sisters control Price
1960
OPEC
FOUNDED
1971
ADDS 6
USA loses
price
control
1973
Yom
Kippur
War
Arab Oil
Embargo
1979
Iranian Revolution
1980- 88
Iran-Iraq
War
1980- 82
Iran-Iraq
loses 3.5
mmb/d
OPEC
increases
production
Iran-Iraq
resume
production
All Time Highs
<--- Price
<--- Production
<--- Rig Count
1991
1st Gulf
War
911
2003
2nd Gulf
War
2002
PDVSA
Strike
Shale Production
takes off (2007)
‘08 Global
Recession
2011
Muslim
Uprisings
OBL
Killed
2013 ISIS
in Syria
2012 Iran
threatens
Hormuz
2016 Global
Over-Supply
2017 OPEC
Cuts
Production
2018 -19 USA
becomes #1
Global producer
Tensions
w/ Iran
escalate
Global Primary Energy Demand Trends
16
Industrialization of
Western
economies.
1850 - 1900
Energy dominated
by Renewable
(Biomass)
7.386.142.581.601.20 8.6 9.8Population Billions
World population projected
to reach 9.8 billion in 2050,
and 11.2 billion in 2100
1900 - 1950
Expansion of
global & local
transport.
Energy mix
changes to Coal
& Oil
1950 - 1990
Energy mix: Oil
and Natural Gas
grow. Coal
declines Nuclear
begins.
Unprecedented
rise in Western
living
Energy mix: Oil
and Natural Gas
Rapid
Industrialization
in China
1990 - 2015
Resurgence by
Renewables:
Biomass, Solar,
Wind
2015 - 2050Demand plateaus around 2030 after a century of rapid growth,
Driven by the penetration of renewable sources in the energy mix.
Steelmakers respond with plans to reduce Carbon Emissions
17
Hydrogen was fed into one of 28 tuyeres, or nozzles, that
otherwise supply coal into the blast furnace.
Thyssenkrupp has completed a successful, first-of-its-kind
demonstration of running a furnace completely on hydrogen.
They plan to inject all 28 tuyeres within the furnace and run
at least three furnaces completely on hydrogen by 2023.
Nucor - Sedalia, MO., claims its
micro mill in will be the first U.S.
steel plant to run on wind energy
EVRAZ - Pueblo, CO., will be
powered by an on-site, 240MW
solar power plant
SSAB Americas - Montpelier, IA
claims it will be the first supplier of
“fossil-free steel” in North America,
operating its minimill solely with
renewable energy by 2026.
The Global steel industry emits approx 5 percent of total CO2 emissions.
Global CO2, Greenhouse Gas Emissions: 2018
18
11.3
5.3
2.6
1.7
1.2
USA
% Rank Country mm/kt
32% 1 China 11.3
15% 2 United States 5.3
7% 3 India 2.6
5% 4 Russia 1.7
3% 5 Japan 1.2
2% 6 Germany 0.8
2% 7 Iran 0.7
2% 8 South Korea 0.7
2% 9 Saudi Arabia 0.6
2% 10 Canada 0.6
2% 11 Indonesia 0.6
1% 12 Brazil 0.5
1% 13 Mexico 0.5
1% 14 South Africa 0.5
1% 15 Turkey 0.4
80%
20% 165 Others 6.7
100% 34.7 GLOBAL EMISSIONS
✓ China is the world’s largest CO2 emitter –more than 30% of emissions.
✓ The USA currently contributes 15% of emissions.
Historical or cumulative emissions (since 1970) total 25%.
✓ Top 5 Countries are 63% of emissions.
✓ Top 15 Countries are 80% of emissions.
Vol= million kilotons (kt)
Top 15 Emitters
4.5
Data Source: Global GHG and CO2 Emissions
Changing USA Energy Consumption: 1776 to Present
19
100%
89%
7%
19%
64%
4% 2% 2% 2%
11%
35%
18%
64%
13%
34%
23%
72%
37%
46%39%
40%
1%
3%
20%
3% 3% 4% 4% 2%
3%3% 8%
8%
3% 6%
19% 27%
24%31%
1% 6%
RENEWABLES:
FOSSIL FUELS:
WOOD is major source from 1776
until the mid-1800s
COAL use begins in mid 1800s and
becomes the major energy source
from 1900 thru 1950.
PETROLEUM is discovered in
1859 and becomes the predominant
energy source to the present day.
HYDROPOWER begins in 1900
and along with solid biomass
become the most used renewable
energy resources until the 1990s
NUCLEARbegins in the late 1970s.
WIND, SOLAR & BIOMASS begins Renewables begin to
increase in the 1990s and are
account for 11% of total Energy
consumption in 2018.
NATURAL GAS also discovered in
1859 & remains a large factor..
81%
Renewable Energy Components: USA
20
45% - Biomass
2% - Geothermal6% - Solar
21% - Wind
4% - Biomass Waste
21% - Biofuels
19% - Wood
25% - Hydroelectric
Heat from hot interior of earth to
generate electricity thru turbines
Uses radiation from the sun to
produce heat and electricity
Turbines turn an electric
generator which produces
electricity
Solid Waste is burned in waste to
energy plants to generate
electricity
Most ethanol fuel used in the
USA is produced from corn.
Biodiesel is made from grain oils
& animal fats.
Wood chips from forestry
operations
Electricity produced from flowing
water
USA: Total Energy Distribution by Source & Sector
21
Petroleum36.9 (36%)
Natural Gas31.0 (31%)
Nuclear
8.4 (8%)
Coal
13.2 (13%)
Renewable
11.5 (11%)
Industrial26.3 (35%)
Residential
11.9 (16%)
Commercial
9.4 (12%)
Transportation28.3 (37%)
Total = 75.9
End-use Sector
Electricity retail sales
13.0
Electrical system
energy losses
25.3
% of Sources % of Sector
7092
243
2
1
34
8
9
3
34
17
12
35
3
40
43
38
94
91
12
23
72
56
5
10
7
3
100 50
42
12
<1
Source
Total = 101.3
Global Energy Projection by Source: 2040
22 Data Source: Historical from Grubler (1940, 1965) IEA (1990 and 2015) and US EIA
More Conservative
Pro-Fossil
Less Conservative
Pro Renewable
16%29%
32% 26%
20%26%
17%
20%
9%
7% -6%
-6%
-3%
+2%
+13%
Renewable Energy: Summary/Conclusions
23
The most critical solution required - is CCUS (CO2 capture, utilization, and sequestration)
The oil and gas industry will become a critical partner for tackling Climate Change and CCUS.
API backs bipartisan legislation that supports CCUS research and deployment. The USE IT Act – introduced in the U.S.
Senate by Republican John Barrasso of Wyoming and Democrat Sheldon Whitehouse of Rhode Island and The LEADING
Act, introduced by Texas Republican John Cornyn and Delaware Democrat Chris Coons –
➢ Technically capable workforces with an abundance of expertise
➢ Infrastructure and capabilities for responsibly handling large volumes of CO2.
➢ Drilling expertise needed to reach geothermal resources.
➢ Supply chains that span the globe
➢ Refineries and other petrochemical facilities (material conversions, etc..)
➢ Familiar w/separating carbon dioxide from methane, (biogas)
The Oil & Gas Industry is well positioned to lead
Global Concerns
24
War on Terror
25
War on Terror
26
27
OPEC Section: Reserves
IRAN
13.1%
VENEZUELA
25.5%
SAUDI
ARABIA
22.4%
IRAQ
12.2%
Iran & the Persian Gulf
28
BOKO
HARAM
ISIL
ISIL
AQIM
AQIM
ISIL
HEZBOLLAH
HAMAS
AQSP
PKK
ISIL
ISIL
HOUTHIS
AQAP
ISIL
AL-SHABAAB
ISIL
TALIBAN
AQIS
5th Fleet, Bahrain
Equatorial
Guinea Gabon
SHIA
Militias
SUNNI
Militias
Bab el-Mandeb
IRAN
1998 US embassy bombings- Kenya and Tanzania
2000 USS Cole bombing March
2003 Riyadh compound bombings
1985 hijacking of TWA flight 847
1989 assassination attempt on Salman Rushdie,
1996 Khobar Towers bombing, killing 19 US
servicemen.
2014 al Qaeda in Syria, Sunni Proxies
1979 Capture of American Embassy hostages.
2019 Hostile activities in Hormuz (tanker attacks)
Iran–North Korea Alliance
Destabilization of Egypt.
Threats to Saudi Arabia and Other
Members of the Gulf Region
Hezbollah Network in Venezuela
Iran–Russia -→ Syria Disruption
2015 JCPOA signed
2019 POTUS puts IRGC on Terror List
2019 Sept, Houthis attack Saudi Aramco’s Abqaiq
refinery along with the Khurais oil field
2019 June, (IRGC) shot down a USA drone
2019- 27 Dec, Iraqi airbase attacked, killing 1
American and injuring 4.
29 Dec 2019, retaliatory U.S. airstrikes on
Hezbollah, killing 25, wounding 55.
31 Dec 2019, US Embassy – Bagdad attacked by
pro-Iranian Sunnis.
2 Jan 2020, US Drone strike kills Quds commander
Major General Qasem Soleimani.
NDA
2015 -→ $150 billion payment to Iran
2015 -→ $1.7 billion in Cash to Iran
2018 JCPOA withdrawal
BIG WILD CARD:
SAUDI ARABIA
MBS: Mohammad bin
Salman
Strait of Hormuz
1985 USA downs Iran Air Flight #655
Suleimani’s successor, Esmail Qaani,
reportedly ran the Africa Quds Force
Angola Congo
Active Nuclear Warheads: World
29
2019 NUCLEAR WEAPONS
Country Total Active Retired Pop 2019
N. Korea 30 30 0 25,666
Israel 90 90 0 8,519
India 140 140 0 1,366,418
Pakistan 160 160 0 216,565
UK 200 200 0 67,530
China 290 290 0 1,433,784
France 300 300 0 65,130
USA 6185 3800 2385 329,065
Russia 6490 4490 2000 145,872
TTLS 13885 9500 4385
Data Source: World Population Review
IRAN
NATO
30
Min 2% of GPD on Defense
20% of Defense spending on
Equipment
Latvia *
Lithuania *
Romania *
United Kingdom
United States
5 of 29 nations
(17%) comply
The Historical role of Line Pipe in Warfare
31
The Normandy Invasion (D-Day):
Offshore Drilling: Genesis
32
Avg Depth: Isle
of Wight to
Cherbourg
120 m (390 ft)
Depth-
Dover to
Calais:
about 45
m (148 ft).
PLUTO: Pipe Lines Under The Ocean
June 1940
August 1942
33
90’ Wide
50’
Dia
mete
r
Pipe Lines Under The OceanPLUTO:
Welders assembled 20-foot
sections of steel pipe into
4,000-foot lengths
Deployment systems
weighed 1,600 tons each,
and were pulled by three
tugboats
Conundrum was short for
Cone-ended drum
The first type was the flexible
HAIS pipe with a 3 inch (75
mm) diameter lead core
HAIS (from Hartley-Anglo-
Iranian-Siemens)
H. A. Hammick and B. J. Ellis.
It was discovered in testing
that the HAMEL pipe was best
used with final sections of
HAIS pipe at each end
1st of 4 lines to France, BAMBI, from the Isle of Wight to Cherbourg.
17 other lines, DUMBO, from Dungeness to the Pas-de-Calais.
34
Avg Depth: Isle
of Wight to
Cherbourg
120 m (390 ft)
Depth-
Dover to
Calais:
about 45
m (148 ft).
PLUTO: Pipe Lines Under The Ocean
D-Day +67
12 August:
1st HAIS
Pipeline
4 Lines in total
D-Day +42 D-Day +80,
Paris Liberated
Offshore Drilling Rigs of Today
35 Data Source: Rystad Energy
Land RigJack-Up
Rig
Fixed
Platform
TLP
Tension Leg
Platform
Drill ShipFPSO (Floating
Production, Storage
& Off-loading)
Floating
Barge
Basic Concept
Anchored to the
Ocean Floor
Retractable
Pylons
Highly classified
Mulberrys employed
after the D-Day
Invasion of 6 June
1944.
Offshore drilling
companies adopted
this jack-up pier
technology after the
war.
Ancestors of
today’s jack-up
rigs.
Mulberry Harbors
Mulberry Harbors → Jack Up Rigs
36
Mulberry B - "Port Winston" at
Arromanches (Gold Beach) in
September 1944
used for 10 months after D-Day
✓ over 2.5 million men,
✓ 500,000 vehicles
✓ 4 million tonnes of supplies
Offshore exploration advances
in USA
Kerr McGee’s 1947 success
✓ KerrMac No. 16
✓ 20’ of water -Gulf of Mexico.
✓ first producing well out of
sight of land
Mulberrys used barges (Piers) 200’ x 60’ feet wide, each with four retractable 60-foot pylons
to provide platforms to support floating causeways (Pontoons) that extended to the beaches.
Global Offshore Drilling Rigs byType
37 Data Source: Rystad Energy
32%
68%
30%
70%
Floater
Jack-up
Conclusion
38
End of Normandy Section
Next up: Burma Ledo Rd
39
The Historical role of Line Pipe in Warfare
CBI Theater –The left-hand symbol represents China.
The star symbolizes the "Star of India".
The red, white, and blue represent the United States.
Ledo Road –The winding road proceeds through Burma to China
(represented by the sun).
The three stars represent the three countries involved:
China, Burma, and India.
Burma Ledo Road Pipeline
40
Burma Ledo Road Pipeline
Ledo
Kunming
Rangoon
India
India
ChinaLashio
The Hump begins in April 1942 to August 1945
Japan invades Burma early 1942,
Flying Tigers: Dec 1941 – July 1942, 8
Construction begins 16 December 1942, 2.3
5307th Galahad: Jan 1944 – August 1944, 8
Construction completed early 1945
Japan surrenders Sept 2nd 1945
Myitkyina
475th Regiment: August 1944 replaces 5307th
23rd Fighter Group: July 1942 replaces Flying Tigers
British Chindits deploy to Burma, 1943-1944
Burma Ledo Road, The Builders
41
Built by seventeen thousand Americans, Ledo Road cost 1,133 fatalities, 624 from combat.
Burma Ledo Road Pipeline Construction
42
Burma Ledo Road Bridge Construction
43
44
Burma Ledo Road Construction
45
Flying Tigers: Burma Ledo Road
The First American Volunteer Group (AVG) of the
Chinese Air Force in 1941–1942, nicknamed the
Flying Tigers, was composed of pilots from the
United States Army Air Corps (USAAC), Navy (USN),
and Marine Corps (USMC), recruited under
President Franklin Roosevelt's authority before
Pearl Harbor and commanded by Claire Lee
Chennault. The mission was to bomb Japan and
defend China.
SIZE: 3 squadrons; 60 aircraft average:
Officially credited with 297 enemy aircraft destroyed.
14 pilots were killed in action, captured, or disappeared on combat missions.
Aces: 19 pilots were credited by the with 6 or more air-to-air victories
Feature films: Flying Tigers, 1942, starring John Wayne and John Carroll as fighter pilots.
The Sky's the Limit, 1943, starring Fred Astaire as a Flying Tiger ace on leave
Hers to Hold, 1943, with Joseph Cotten)
God is My Co-Pilot, 1945
China's Little Devils 1945
46
The Hump: Burma Ledo Road
"The Hump“: a 530 mile
stretch crossed the
Himalayan foothills into
China from Assam,
India. •594 aircraft lost, missing, or written off
•1,659 personnel killed or missing
Casualties and losses April 1942 to August 1945
Initially given to the
AAF's Tenth Air Force,
and then to its Air
Transport Command
(ATC).
Inefficient & incredibly
dangerous
47
Merrill’s Marauders
Merrill’s Marauders or Unit Galahad, officially named the 5307th Composite Unit, was a United States Army long range penetration
special operations jungle warfare unit, which fought in the South-East Asian theatre of World War II, or China-Burma-India Theater.
DecorationsPresidential Unit Citation
Every member awarded the Bronze Star
6 Distinguished Service Crosses
4 Legions of Merit
44 Silver Star Medals
25 inducted into the Army Ranger Hall of Fame
(More than any other Ranger Unit)
In early 1944, the Marauders were organized
On 10 August 1944, the 5307th was disbanded with
a final total of 130 combat-effective officers and
men. Of the 2,750 to enter Burma, only two were
left alive who had never been hospitalized with
wounds or major illness. None of the horses and
only 41 of the 360 mules survived.
48
Merrill’s Marauders: UNIT PATCH
Current 2020: 75th Ranger Regiment
The Sun represents daylight operations,
The Star signifies night capabilities.
The Lightning Bolt signifies the swiftness of their strikes,
Original 1944: Merrill’s Maurauders
The Sun: From the Chinese National Flag for the unit's close cooperation with Chinese forces.
The Star: Represents the “ the 8 point star of Burma" for the Marauders area of operations.
The Lightning Bolt: Stands for the speed and force that the Marauders struck the enemy.
49
Burma Ledo Road Construction
Arial view of first convoy on Burma Road Famous Zig-Zag near the Burma Road
50
Burma Ledo Road Pipeline: END
End of Presentation
51
End of Presentation