Remarks on Petroleum Engineering — Past, Present, and Future

1. SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering— Past, Present, and Future Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843-3116 (USA) +1.979.845.2292 — t-blasingame@tamu.edu SPE GCS Reservoir Study Group 2017 Reservoir Technology Forum

2. Brief Biography — Tom Blasingame • Who am I? • Professor, Texas A&M U. • B.S., M.S., & Ph.D. from Texas A&M U. • Counts: (May 2019) • 14 Ph.D. Graduates • 67 M.S. (thesis)/34 M.Eng. (report) Graduates • Over 160 Technical Articles • Historical Technical Contributions: • (1990's) Material Balance DCA ("Rate Transient Analysis" (or RTA)) [global standard] • (1990's) Analysis of Water-Oil-Ratio (WOR) Behavior [theoretical approach] • (1990's) Direct Estimation of pavg from Pressure Buildup Tests [theoretical approach] • (2000's) Pressure Integral and "Beta" Derivative [led to PTA and RTA methodologies] • (2010's) Diagnostic Analysis of Time-Rate Data (i.e., the qDb-plot) [evolving standard] • (career) Correlations for Rock and Fluid Properties [rg & mg are global standards] • (career) Deconvolution Methods (approximate, direct, and numerical) [several methods] • Research Interests: (2019) • Time-Rate Analysis (Models & Diagnostics) [unconventional reservoirs] • Early-Time "Flowback" Analysis/Interpretation [unconventional reservoirs] • Interpretation/Analysis of Time-Rate-Pressure Performance [unconventional reservoirs] • Parametric/Non-Parametric Correlation of Well Performance Data [various applications] • Numerical Analysis/Interpretation Techniques for Data [various applications] [2012] [2019] (visa photo) [self image] [how others see me]

3. SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future The Past ... Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843-3116 (USA) +1.979.845.2292 — t-blasingame@tamu.edu SPE GCS Reservoir Study Group 2017 Reservoir Technology Forum

4. 1972-2018 1957-1968 • Discussion: • (1957-1968) First spike (post World War II U.S. oil boom). • (1972-2018) Note that the enrollment spike has happened before. • (1952-2018) Enrollments mimic oil price, but are lagged 4 years.

5. Discussion: • (1997) Lack of young talent coming in... • (2008) Good influx of young talent, retaining senior talent. • (2018) Significant loss of senior talent, loss will continue.

6. Discussion: 2001 SPE Forum Summary • Perception was that non-engineers and non-petroleum engineers would be the norm. • Expectations of high pay and heavy emphasis of training and feedback. • Young talent will accept job flexibility in lieu of job security, but insist on a work-life balance.

7. What a Difference 10 Years Makes: • 2008 • Professional Members: 66,084 [old membership report] • Student Members: 22,455 [old membership report] • Student Chapters: ≈200 [old membership report] • U.S. PETE Faculty: ≈100-150 [my guess] • 2018 • Professional Members: 84,100 [www.spe.org] • Student Members: 72,009 [www.spe.org] • Student Chapters: 382[www.spe.org] • U.S. PETE Faculty: ≈300[available data] • Discussion: • Transition of student members to professional status is an issue outside of North America. • Significant increase in student chapters implies significant growth in young talent/interest. • Bottom-line — young talent numbers are increasing, senior talent is decreasing.

8. SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future The Present ... Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843-3116 (USA) +1.979.845.2292 — t-blasingame@tamu.edu SPE GCS Reservoir Study Group 2017 Reservoir Technology Forum

9. Technical Knowledge: • Skills that Define a Petroleum Engineer: • General Knowledge/Skills (Math, Engineering Science, etc.) • Oil and Gas Drilling Systems • Production Engineering and Operations • Reservoir Fluids • Petrophysics, Formation Evaluation, and Geology • Reservoir and Well Performance • Petroleum Project Evaluation (Reserves and Economics) • Integrated/Multidisciplinary Teams • Emerging Needs that Need to be Emphasized: • Unconventional Reservoir Technologies • Statistics/Data Manipulation (i.e., "Data Analytics") • Facilities • HSE(including the so-called "Sustainability" aspects) • Standardization: • Traditional Areas: U.S./Western Europe • Emerging Areas: FSU/Africa/S.E. Asia/Middle East • COMPANIES need to help us to establish standards.

10. SPE Technical Knowledge Matrix: (2011) • Motivation: • Technical Knowledge Matrix (SPE Talent Council 2009-2011). • Provides a broad inventory of Petroleum Engineering skills. • Document serves as a guidance/reference document. • Method: • Used a blind survey for "required," "valued," or "not required" assessment. • SPE staff coalesced the results into a comprehensive report. • SPE published the results in the September 2011 edition of the JPT (p. 94). • (https://www.spe.org/training/docs/graduating_matrix.pdf) • Results: • Mathematics & problem-solving viewed as critical. (90-98% of reviewers) • Communications skills viewed as essential. (>75% of reviewers) • Basic petroleum engineering skills viewed as critical. (60-90% of reviewers) • Drilling skills seen as essential. (65-75% of reviewers) • Well completions skills viewed as essential. (>75% of reviewers) • Basic rock properties seen as important. (55-85% of reviewers) • Well logging skills seen as relevant. (52-66% of reviewers) • Well performance skills seen as important. (66-85% of reviewers) • Production operations skills seen as important . (69-77% of reviewers) • Cash flow/economics seen as essential. (76-86% of reviewers) • Petroleum reserves seen as important. (62-66% of reviewers)

11. SPE Strategic Plan: (2018) • Mission: To collect, disseminate, and exchange technical knowledge concerning the exploration, development and production of oil and gas resources, and related technologies for the public benefit; and to provide opportunities for professionals to enhance their technical and professional competence. • Core Values: • Technical excellence • Thinking globally (OneSPE — Philosophical Principles) • Providing value to members • Volunteerism • Stewardship for the long-term • Strategic Priorities: • Life-long Learning: SPE provides a robust selection of cross-disciplinary, life-long learning opportunities that are well respected and sought after by oil and gas industry technical professionals) • Knowledge Transfer: SPE content and community are seamlessly access-ible online. • Membership: SPE membership and engagement is valued by oil and gas industry professionals from diverse technical specialties. • Professional Pride: SPE members understand and are inspired by our industry's contributions to society and represent the industry positively to the public.

12. SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future The Future ... Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843-3116 (USA) +1.979.845.2292 — t-blasingame@tamu.edu SPE GCS Reservoir Study Group 2017 Reservoir Technology Forum

13. It's About YOU: • Your Education… • Is being an engineer what you are best at? (... maybe?) • What more do I need to know? (... we all evolve) • Your Future… • Short Term… (... right now!) • Near-Term… (... a year or so from now) • Long-Term… (... when you start losing your hair) • The End… (... what have you really accomplished?) • Short/Near-Term… • Your value is your skills set… (... harsh, but true) • Concrete goals… (... experience, exposure, excitement!) • Your limitation is your inexperience… (... listen/learn/lead) • Long-Term… • 70% of young engineers want management...(... 3% get it) • Are you fit for command… (... yes … no … maybe?) • Are you NOT fit for command… (... then adapt) Lead me, follow me, or get out of my way. — George S. Patton, American General (1895-1945)

14. Where are You Now?: • Starting Your Career… • Choices? (… there are no "wrong" choices) • Commitments? (... you are only as good as your word) • Your Roles… • On the job? (... your job is to LEARN to do your job) • Off the job? (... have a hobby, but be a role model) • "It's not the job I wanted…" (... then change jobs) • "It's not the job they promised…" (... then adapt) • Points to Consider... • Activities ≠ Productivity (... success = tasks completed!) • Achieve what you plan… (... failure to plan = plan to fail!) • STEP: (Strategy-Tactics-Execution-Perspective) • STRATEGY (... planning — be complete) • TACTICS (... tasks — be concise) • EXECUTION (... action — focus on achieving results) • PERSPECTIVE (... review — feedback is essential) The reason a lot of people do not recognize opportunity is because it usually goes around wearing overalls looking like hard work. — Thomas A. Edison, American Inventor (1847-1931)

15. The Difference Between Good and Great: • Good... • Good MANAGERS do things right… (… your strengths) • Good LEADERS do the right things… (… your values) • Great... • Great achievements = desire to succeed... (… fact of life) • Great achievers make great sacrifices… (… e.g., family) • Ambition... • Ambition is fine, but know your limitations (… trust me) • Learn How to Work... • You are paid to complete tasks… (… don't waste time) • You are paid to make decisions… (… don't be afraid) • You will make mistakes… (… never put others at risk) • You will get your hand slapped… (… it happens) • You are only as good as your last time at bat… (… sorry) • You are no longer in school… (… you are not being "graded") • You work with incomplete data… (… analyze, don't guess) The enemy of art is the absence of limitations. — Orson Welles, American Actor (1915-1985)

16. Life Balance/Life Choices/etc.: • Life Balance... • Family must come first in your career… (… trust me) • You get vacation, take it… (… trust me) • Always ask your family… (… they will tell you the truth) • Life Choices... • You can achieve anything, not everything… (… sorry) • You have the strength to change, use it… (… trust me) • You can manage misery, you can’t eliminate it… (… reality) • Knowing Who You Are... • People rarely change… (… know who you are) • Knowing What You DO Want... • Be prepared to sacrifice for what you want… (… sorry) • Goals change… (… money… kids… golf… boat... ) • Knowing What You DON'T Want... • Keep your "idiots quotient" low… (... you can thank me later) • The only evidence of life is growth … (... don't stagnate) No one would have crossed the ocean if he could have gotten off the ship in the storm. — Charles Kettering, American Inventor (1876-1958)

17. SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future End of Presentation Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843-3116 (USA) +1.979.845.2292 — t-blasingame@tamu.edu SPE GCS Reservoir Study Group 2017 Reservoir Technology Forum

18. SPE Presentation (via Web) 06 May 2019 | SPE Ukraine Student Chapter Remarks on Petroleum Engineering — Past, Present, and Future Personal Perspectives Tom BLASINGAME Petroleum Engineering Texas A&M University College Station, TX 77843-3116 (USA) +1.979.845.2292 — t-blasingame@tamu.edu SPE GCS Reservoir Study Group 2017 Reservoir Technology Forum

19. Personal Mementos — Tom Blasingame Napkin Art (drawn on recent flights) Marriage Counseling (New Zealand) December in College Station My Favorite Place/My Best Friends My Other Job (as a Potato Picker (NZ)) My Proudest Professional Achievement Family in "Hobbiton" View from Our NZ Home

20. Professional Biography — Tom Blasingame • Tom Blasingame is a Professor and is the holder of the Robert L. Whiting Professorship in the Department of Petroleum Engineering at Texas A&M University in College Station Texas. He holds B.S., M.S., and Ph.D. degrees from Texas A&M University — all in Petroleum Engineering. In teaching and research activities Blasingame focuses on petrophysics, reservoir engineering, analysis/interpretation of well performance, unconventional resources, and technical mathematics. • Blasingame's research efforts deal with topics in applied reservoir engineering, reservoir modeling, and production engineering. Blasingame has made numerous contributions to the petroleum literature in well test analysis, analysis of production data, reservoir management, evaluation of low/ultra-low permeability reservoirs, and general reservoir engineering (e.g., hydrocarbon phase behavior, natural gas engineering, inflow performance relations, material balance methods, and field studies). To date (May 2019), Blasingame has graduated 67 M.S. (thesis), 34 M.Eng. (report, non-thesis), and 14 Ph.D. students, and he has performed several major field studies involving geology, petrophysics, and engineering tasks. • Blasingame is a member of the Society of Petroleum Engineers (SPE), the Society for Exploration Geophysicists (SEG) and the American Association of Petroleum Geologists (AAPG). Blasingame is a Distinguished Member of the Society of Petroleum Engineers (2000) and he is a recipient of the SPE Distinguished Service Award (2005), the SPE Uren Award (for technology contributions before age 45) (2006), the SPE Lucas Medal (SPE's preeminent technical award) (2012), the SPE DeGolyer Distinguished Service Medal (2013), the SPE Distinguished Achievement Award for Petroleum Engineering Faculty (2014), and SPE Honorary Membership (2015). Blasingame has served as an SPE Distinguished Lecturer (2005-2006) and was the SPE Technical Director for Reservoir (2015-2018). Blasingame has prepared approximately 160 technical articles; and he has chaired numerous technical committees and technical meetings. Blasingame also served as Assistant Department Head (Graduate Programs) for the Department of Petroleum Engineering at Texas A&M from 1997 to 2003, and Blasingame has been recognized with several teaching and service awards from Texas A&M University.

21. Current Students — Tom Blasingame • M.S. Projects: (start-up/active/closure) • AnatraksakulTransformational Decomposition Model for MF Horizontal Wells (active) • Anno Project TBD(coursework) • Bryan Mechanistic Model Validation for DCA in Uncon. Reservoirs (active) • Chingulprasan Laplace Transform Data Methods (closure) • FonsecaNon-Parametric Correlation of Well Performance Data (active) • Fulford Deconvolution using Bayesian Graphical Models (active) • Gorditsa Mechanistic Model Validation for DCA in Unconventional Reservoirs (active) • Jin Rate Transient Analysis in Unconventional Tight-Oil Reservoirs (active) • Nguyen Pressure Transient Analysis in Shales (start-up) • PradhanWell Spacing Optimization using Production & Pressure Data (start-up) • Ph.D. Projects: (start-up/active/closure) • Garcia Mechanistic Behavior for GOR in Unconventional Reservoirs (active) • Kou Dynamic Modeling of Proppant Transport in Fractures (active) • Moridis Reserves, A&D, and Assessment of Unconventional Reservoirs (active) • Perez-ValdezFractured Horizontal Wells in Fractal Reservoirs (closed) • M.Eng. Students: (those actively engaged and/or working on projects) • Newberry Regional Evaluation of Delaware Basin (Wolfcamp)(closure) • Pinmentel Extraction of Elemental Lithium from Produced Waters (active) • White Completion Aspects of Well Performance (Delaware Basin) (2019)