2015 PESA Fall Newsletter

news August – October 2015 Service and Supply SectorVolume 69, Number 3 www.pesa.orgOutlook 2016Upcoming Events Executive Coaching & Engaging The December issue of World Oil includes an outlook by PESA Leadership Seminar Chairman Gary Halverson on behalf of the service and supply January 20, 2016 sector. Pat Lipovski, Envision Westin Galleria Clearly, the oil and gas incentives to reshore Houston, Texas industry is currently in manufacturing jobs that Foreign Service Officer Training Membership Luncheon rough waters. Especially were considered lost only February 11, 2016 Schlumberger across the service and a decade ago. As billions Houston, Texas supply community, of dollars are investedSupply Chain Management Seminar February 25, 2016 the downturn has been in new businesses, JW Marriott Galleria Houston, Texas and will continue to be thousands of dollars Explorers of Houston Golf rocky and in many cases are saved in household Tournament painful. While we are energy costs, rent and March 3, 2016 Golf Club of Houston understandably focused royalty payments are paid Houston, Texas on managing through to private landowners, and Legal Seminar until the eventual market tax and royalty revenues March 23, 2016 Norris Conference Center recovery, where should are generated for all levels Houston, Texas service and supply of government. Find all of our upcoming events at www.pesa.org. companies concentrate, Integration of combined no matter what their services is the key to In This Issue product, service, or size? maintaining innovation inOutlook........................Pages1&3 Those that will emerge a low-cost environmentPESA Perspective...............Page 2Member Benefits.........Page 4 strongest will have with solutions that areCID.............................Page 5Emerging Leaders.........Pages 6-7 focused strategically on quickly deployable,FSO Training Program......Page 82016 Annual Meeting.......Page 9 innovation, collaboration PESA Chairman Gary Halverson scalable and addressed to2016 Events.....................Page 9 and investing in human Senior VP & President the specific needs of ourSporting Clays capital. It’s up to us as Drilling & Production Systems, industry. Full integrationTournament.......................Page 10 an industry to tackle the Cameron of the service and supplyPresidential Platform.........Page 11Government Affairs..........Page 12 challenges and enhance sector is about listening, our long-term competitiveness in global understanding, and bringing solutions to the table, not simply selling products and energy markets. services to a customer. Energy service firms can change operations by tweaking tried- Innovation. and-true techniques to service both new The world is experiencing a global shift and old oilfield dilemmas. with dramatic political, economic and PESA supports policies that promote industrial changes. In this environment, inherent business principles for a pro- technical innovation becomes a crucial innovation, pro-jobs and pro-security factor for success. Innovation has allowed energy policy that will continue to advance us to achieve what was once unimaginable, the important role the service and supply and led to a resurgence of energy supply. sector plays in the industry. This sector-wide Technological innovations are also powering commitment to innovation and focus on a manufacturing resurgence, generating efficiencies is part of the foundation that will new investment and providing economic see us through the downturn.1 PESA News —Outlook continued on page 3

PESA Officers PESA Perspective PESA President Leslie Shockley Beyer 2015-2016 The value-add of PESA’s ability to connect members with peers and customers during networking opportunities and Gary Halverson providing high-value training opportunities for current and PESA Chairman future leaders is even more important in today’s challenging Senior VP & President market conditions. Drilling & Production Add to that the key business intelligence provided by Systems the Credit Interchange Division and the network of credit Cameron professionals with expertise managing transactions through market conditions of all types, and membership in PESA is a Saeid Rahimian clear business advantage today and into the future. PESA Vice Chairman The message of PESA’s value proposition is one that PESA President & Chief Directors and Advisory Board Members, and individual Executive Officer member companies will spread across the oilfield service, supply, and manufacturing sector in 2016. We are working to Energy Group grow PESA’s membership, and we need your help doing it! Gardner Denver, Inc. Just recently, PESA’s new VP for Operations & External Affairs, Burk Ellison Ryan Bowley, visited with current and potential members First Vice President during the LAGCOE show in Lafayette. But our outreach isn’t limited to trade shows and traditional marketing efforts. The President best way for us to grow PESA’s membership is by meeting one- Energy Branches on-one with potential members – hopefully through meetings DistributionNOW organized by you and other current PESA members. Dave Warren PESA staff are ready to engage directly with potential members PESA Treasurer on what PESA membership can bring to their company and President & Chief their employees. If you know of a company that would benefit, Executive Officer please contact us. Energy Alloys Leslie Beyer PESA PresidentPESA 2015 Communications ResultsSince Sept. 2014 Website Launch Potential reach Over 5000 Social demographics»16% traffic increase to 1.2M people via interactions social media on social media Q Twitter Q Facebook Connect With Us PESA News is published by: PESA President PESA VP2 PESA News Petroleum Equipment & Services Association Leslie Shockley Beyer Communications & 2500 Citywest Blvd., Ste 1110 Member Relations Houston, Texas 77042 PESA VP Operations & 713-932-0168 External Affairs Molly Smart © 2015, PESA Ryan Bowley

Outlook ContinuedCollaboration. efficiencies. advantage. We also understand the need to ensure our workforce mirrorsFuture innovation in the oil and gas PESA is working with our members our industry’s diverse global footprint,industry will be driven by collaboration. to catalyze collaboration between contributing to creative solutions andForesight and planning is a great operators and suppliers, to foster and innovation. Women represent 19% ofopportunity for long-term success, preserve institutional knowledge and all oil and gas employees, and we needand moving forward offers tremendous create opportunities to network and to do better than that as an industry.business potential for suppliers and share best practices.service organizations throughout the PESA equips current and future leaderssupply chain. In effective collaboration Human Capital. with the knowledge, training andindustry must also engage public education that will support the energystakeholders, developing trust in the When dollars have to go farther, we industry’s key role in the global market.community. This collaboration affords strive for innovative ways to leverage Enhanced networking at PESA alsoour right to operate in a responsible human capability. In doing so, we will supports connections with customers,and safe manner with lasting benefit. drive down costs and shorten cycle competitors and peers that will driveSupporting the crucial health and times. Human capital is the single professional success for individualssafety efforts of our employees, most important factor affecting the and member organizations.customers, and contractors, as well energy industry. In 2016 and after,as the minimization of environmental continued M&A activity among the Our industry has a great heritage ofimpact in the communities where we service and supply sector and the turning obstacles and challenges intolive and work is a top priority. operators will contribute to difficult achievement. Maintaining focus on workforce decisions. innovation, collaboration and humanThe current market conditions also capital will sustain and support ourrequire internal collaboration to Even while faced with necessary sector through this time and helpincrease production efficiencies and reductions, we must not lose sight of us emerge stronger, smarter andmaintain profit margins. The outlook investing in human capital. Workforce more efficient. Leveraging externalbeyond the current cycle for the entire development for the men and women resources like PESA will allow us to dovalue chain offers long-term mutual supporting operations all over the more with less, both for our memberbottom line success if focused on world is critical to our competitive companies and the industry overall.TRAIN Get connected at PESA.org.ELEVATE 3 PESA NewsNETWORKThe go-to resource for oilfield serviceproviders, suppliers and manufacturers.

PESA as a Resource PESA represents the growing and evolving voice of the oilfield service, supply and manufacturing sector. Through innovative programing, events, and educational opportunities, PESA is leading the energy industry! grow your network+ Access network opportunities at over 30 annual events across the U.S.+ Interact with industry thought leaders & CEOs+ Leverage opportunities to engage with executives of customer companies gain exposure & efficiencies+ Promote your company and its service or product offerings through the online member directory+ Take advantage of opportunities to sponsor events and seminars, highlighting your company+ Leverage the Credit Interchange Division (CID) to positively affect working capital elevate education & training+ Access exclusive educational & workforce development opportunities from Oil & Gas 101 to topical seminars on HR, Legal, Supply Chain and HSE+ Develop leadership skills through our Executive Leadership program, Emerging Leaders, and Leadership Forums+ Benefit from and participate in Foreign Service Officer Training with member and customer companies drive energy policy+ Leverage our online policy center to learn more about legislative priorities that impact the industry and communicate with government leaders+ Build relationships with policy makers who influence energy policy+ Stay current on critical industry news via our media library

BUILDING BUSINESS RISK INTELLIGENCE:PESA CREDIT INTERCHANGE DIVISION» Includes the largest network of credit experts in the industry» Helps companies to strategically manage cash flow» Connects you to industry experts to share information, experience, & knowledgeCID Annual Meeting & Building on CID’s SuccessTrey Whichard, Former CFO & SVP, Key In mid-September, credit professionals and its network of credit professionalsEnergy Services, Inc. from across PESA’s membership met adds value to the entire business. to network, exchange insight, andThe networking reception sponsored expand their knowledge during the PESA is focused on making 2016 a yearby Schlumberger at the Annual Meeting 2015 Credit Interchange Division (CID) of membership growth for CID, and iswas part of an ongoing series to make a Annual Meeting. especially highlighting the uniquestronger credit professional network. capabilities of the program to offer This year, reflecting both market business intelligence to companies in conditions and a desire by attendees turbulent market conditions. to reduce travel time, CID members met at the Westin Memorial City in The benefits of CID go far beyond Houston September 16 – 18. Following the online platform. The ability to a kickoff networking reception network with other credit professionals sponsored by Schlumberger and a focused on the energy sector is in dinner on Wednesday night, attendees many ways the most important benefit benefited from busy Thursday and provided through CID membership. Friday business sessions. PESA together with CID members, is working to make that network even Credit professionals heard an update better through informal social events on the overall market situation and and trainings beyond the Annual learned about additional ways to Meeting. gain insight from public information about companies. They also had If your company is interested in learning opportunities during breakout sessions more about CID Membership, please to share best practices on how CID contact Ryan Bowley, VP Operations & External Affairs, at [email protected]. 5 PESA News

Emerging Leaders Committee PESA Leadership ForumsEmerging Leaders Spotlight Newest Value-Add for Professional Development The PESA Emerging Leaders conditions, Cobb emphasized the • “The Moral Case for Fossil Committee created a new importance of building skills to Fuels” by Alex Epstein leadership series which invites differentiate yourself including industry executives to discuss working well with others and • “The Speed of Trust” by relevant themes in an intimate cultivating relationships, both Stephen Covey roundtable format. The first internally and externally. Practicing leadership forum was held on caution also remains essential, • ”Is This Seat Taken?” by Kristin September 24 in Houston. while thinking strategically instead Kaufman Emerging Leaders Vice Chairman of reactionary is crucial to success Dave Martin, HSE Counsel at for companies and individuals. • “How Important People Act” Halliburton, opened the meeting by Chase Untermeyer providing background on the “Every touch point you have newly developed series. Former gives you a competitive edge. As millennials transition into PESA Chairman Galen Cobb, Vice Invest in education and take leadership roles, culture and President of Industry Relations advantage of the chance to environment of the industry’s with Halliburton, presented his brainstorm with high-energy workforce is redefined. Ensuring thoughts on leadership and career individuals,” stated Cobb. a balance between work, life and development. “PESA offers extensive faith generates success in and opportunities to interact with out of the office. Cobb ended Cobb, who has more than 40 years industry thought leaders and to the discussion with his own seven of experience with Halliburton, develop leadership skills.” pieces of advice: grew up on an Iowa farm and began his career working in Cobb suggested to drive 1. Nothing is more important in wireline in Midland. He held productivity, create a schedule and life than faith and family. a variety of positions through follow a plan. Also, understanding the company, taking multiple personal limitations and having 2. It’s not too late to change your international assignments before the ability to say no can at times dreams. a company restructure created his be more important than saying current position. Cobb attended yes. Cobb also recommended 3. Consider carefully before you his first PESA meeting more than the following books that highlight make sudden changes. 20 years ago and has witnessed the importance of effective the organization’s growth and communication and relationships 4. Keep putting your heart into evolution. within the industry: what you do. During today’s challenging market 5. Mentor others. 6 PESA News 6. Invest aggressively in yourself and your education. 7. Network, network, network!

Annual Meeting April 6–8, 2016Breakfast and Discounted Rate for 35 and under PESA offers individuals 35 years of age and under a discounted conference registration fee of $525. To receive this discount, in place of registering online please contact PESA at 713-932-0168 or [email protected]. The Emerging Leaders Committee is hosting a breakfast targeted towards young professionals attending the Annual Meeting. Additional information regarding the breakfast will be provided at a later date.High Performer SpotlightEmerging Leaders Committee ChairmanAmar Thiraviam, Ph.D., Teledyne Oil & GasEleven years ago, Amar Thiraviam was he ever was. His favorite pastime – Amar Thiraviam, Ph.D.studying manufacturing engineering at playing with time itself. Vice President of Projectsthe University of Central Florida when Teledyne Oil & Gasrecruiters from Teledyne Oil & Gas Amar’s proclivity toward investigatingshowed up on campus. He knew he and interpreting data led him to U.S. policies impact the industry.”wanted to work in a high tech industry. author a formula that would reduceHe was already interning at a local theoretical (test) time and help identify Amar first engaged with PESA throughtechnology company and working in answers to questions like, how does its education seminars like Oil & Gasa research lab. But like many, he never pressure affect (life)time, what happens 101. He then got involved in theconnected high tech with oil & gas. to equipment if we change pressure Emerging Leaders Committee where and/or jump forward 10 or 20 years? he currently serves as chairman, and“I think the perception of oil & for the last few years has participatedgas isn’t about the innovation. “It’s like magic, trying to compress in the Washington, D.C. Fly-In event,But in reality you can’t find a more the testing period and predict which offers a platform to buildtechnologically forward industry. outcomes in environments that relationships with policy makers whoThe issue is visibility, especially in don’t exist yet, time that hasn’t influence energy policy. Even withsubsea. When you see a factory occurred yet.” his varied industry engagement andin Downtown Houston – you tour diverse workload, Amar still finds timeit. You see its interworking and While his work has helped frame his to reflect on the future of technologyinnovative technology. But in deep appreciation for the innovative within oil & gas.subsea oil & gas it’s hidden.” nature of oil & gas and its continued “The industry is in a phase whereAt the time, Teledyne was investment in developing future companies have to re-inventlooking to implement Six technologies, Amar credits themselves, and technology has aSigma and Amar associations like PESA with starring role in that. And we willhad a Six Sigma educating him on the larger reinvent ourselves and come outcertification. They issues facing the industry and ahead. It’s an exciting journey andwere a perfect match. introducing him to a vast we’re just getting started in it.“Fast forward network of professionalsa decade and a number of posts who have inspired him inwithin Teledyne – including Quality, unique ways.Reliability, Engineering, R&D, ProductManagement, Business Development, “Meeting the diverse membersand Site Operations – and we find Amar of PESA has helped openas Teledyne’s current Vice President of my perspective to differentGlobal Projects over subsea oil & gas, approaches, a different waystill as enthusiastic about invention as of thinking. I understand more acutely how the industry impacts the economy, and how changing 7 PESA News

PESA Foreign Service OfficerEnergy Industry Training Course Summer 2015Industry collaboration, oilfield technologies and international WesternGeco Offshore Remote Monitoring Center andtrade compliance were some of the key issues discussed at the Animated Subsea Systems presentation at FMCthe 2015 PESA Foreign Service Officer Training Course held Technologies, Inc. The group also took a SSV Lab and RigAugust 3-6. The 25 particiapants from the U.S. Departments Tour at Weatherford and discussed international oil & gasof State and Commerce are at post in a diverse group of exploration at ConocoPhillips. Citi presented the economiccountries including Brazil, Saudi Arabia, outlook for crude oil and natural gasKenya and China. commodities. Dr. Ken Medlock, JamesMember and customer companies along A. Baker, III, and Susan G. Baker Fellowwith nationally recognized educational in Energy and Resource Economics andinstitutions provide experts, materials, Senior Director, Center for Energy Studies,and equipment for the training program. Baker Institute, presented on geopoliticsAccess to industry leaders and facility and the technical details involved in thetours give FSOs a rare opportunity to gain The Summer 2015 FSO Class at hydraulic fracturing process.insights while experiencing real-world Halliburton. Chris Cragg, Senior Vice President –technology and equipment. The PESA Operations at Oil States International,FSO program has trained over 600 federal government Inc., welcomed the class on behalf of PESA membership. Rickofficers in more than 90 countries over the past 22 years. Westerdale, Director of the U.S. State Department’s Energy Resources Bureau’s Policy Analysis and Public Diplomacy“The PESA FSO Industry training course is a Office, addressed PESA member company executives,collaborative effort designed to familiarize foreign customer companies and the FSOs at a representationaland civil service officers with an overview of the energy outreach event. industry that will in turn influence informed energy PESA’s recently formed International Programs Committee policy decisions at their respective international led by Chairman Jock Pool, Director of Compliance at posts,” said Leslie Beyer, PESA President. “PESA Oceaneering, has been developed to further develop the education programs address advanced technologies FSO training course and focus on expanding and specializing that drive our industry, as well as the dynamic geo- the content. Member companies are encouraged to be political and economic landscape.” represented on this committee. Currently, the following companies work together on this committee: Highlights of the August course included a tour of the PESA provides programs like the FSO industry training to}Mark Your Calendar help inform and educate on behalf of the million workers FSO Training Program Membership represented in the oilfield service and supply sector globally. Luncheon | February 11, 2016 The next FSO course will be offered February 8 - 11, 2016 with an expanded array of strategic course material to Meet and network with global energy further enhance the learning experience. influencers in the FSO community over lunch with a keynote speaker. Houston, TX8 PESA News

Register Online at pesa.org/eventsThe 2016 Annual Meeting, PESA’s Speakers Include: and Secretary of Analysts Include:signature event, is chaired by PESA TransportationVice Chairman Saeid Rahimian, John Mingé, Chairman Marshall Adkins, DirectorPresident & Chief Executive Officer – and President, BP Robin West, Senior of Energy Research,Energy Group, Gardner Denver. This America Adviser – Energy and Raymond James &year’s theme, Innovation Through National Security AssociatesDynamic Change – Opportunities Kevin Neveu, President Program, Center forand Challenges for the Upstream and Chief Executive Strategic & International Pearce Hammond,Industry in Transition, is a key area Officer and Director, Studies Managing Director, Co-of focus for companies within PESA Precision Drilling Head of E&P Research,membership as well as our customers. Corporation Marshall Nichols, Simmons & CompanyIn light of current market conditions, Executive Director, Internationalregistration fees are below 2015 rates. Secretary Andrew National Petroleum Card, Former White Council Jim Wicklund, Managing House Chief of Staff Director, Credit SuisseSave the Date for PESA 2016 EventsBelow is a listing of scheduled PESA events through mid-2016. To register for events,please visit the PESA Website at pesa.org.2016 Executive Leadership Program | Explorers of Houston Golf Tournament | Washington Fly-In | May 22-25 2016January 20, 2016 March 3, 2016 Join PESA members on Capitol HillThe Executive Leadership Program Proceeds from the annual golf to engage with policymakers andis a multi-faceted professional tournament support PESA’s annual influencers about the importantdevelopment exercise exposing contributions to education programs. role the oilfield service, supply, andparticipants to executive coaching through Golf Club of Houston, Houston, TX manufacturing sector plays in energyone-on-one sessions with an executive development, the nation’s economiccoach, assessments and mentorship. Legal Seminar | March 23, 2016 future, and innovation.Westin Galleria, Houston, TX With more merger and acquisition The Hay-Adams Hotel with Meetings activity in the oilfield service and supply on Capitol Hill, Washington, D.C.FSO Training Program Membership sector on the horizon, the 2016 PESALuncheon | February 11, 2016 Legal Seminar will focus on the financial, Executive Leadership Seminar: PuttingMeet and network with global energy operational and legal implications and Feedback to Work | June 9, 2016influencers in the FSO community over concerns of companies involved in Building on the Engaging Leadershiplunch with a keynote speaker. M&A or watching from the sideline. seminar, participants are immersed inSchlumberger, Houston, TX Norris Conference Center, Houston, TX the principles and skills of feedback. J.W. Marriott, Houston, TXSupply Chain Management Seminar | PESA Annual Meeting | April 6-8, 2016February 25, 2016 The Annual Meeting provides HR Roundtables | Bi-MonthlyCurrent market conditions have forced opportunities to engage with customer The Human Resources Committeesupply chains across the energy company executives and industry peers plans bi-monthly roundtable events toindustry to become more optimized. in an intimate environment. Targeted provide information to PESA memberThis seminar will give service and supply industry themes are analyzed and companies on the various HR trendscompanies executive-level knowledge discussed at daily business sessions, affecting HR departments and hiringto better work with customers to drive sporting and social events. practices.value across the supply chain. Grand Del Mar, San Diego, CA Texas A&M Mays Business School atJ.W. Marriott, Houston, TX CityCentre, Houston, TX 9 PESA News

Sporting Clays TournamentPESA members and customers gathered at Houston’s American Shooting Centers on ParticipatingOctober 30th as PESA’s Energy Educators Committee held its 5th Annual Sporting Companies:Clays Tournament. The event’s proceeds support PESA’s education outreachprograms and annual contributions to the IPAA/PESA Energy Education Center, the AnadarkoOffshore Energy Center and the National Energy Education Development (NEED) Baker McKenzieProgram.  BreitburnMany thanks go to the tournament’s corporate sponsors: DistributionNOW, Gardner CameronDenver, GE Oil & Gas, Halliburton and Schlumberger, as well as station sponsor LTR Cargo Crating Companyand water sponsor Teledyne. A special thank you to DistributionNOW for providing Cyclone Steellunch and dinner for all attendees.   DistributionNOW Dorf Ketal ChemicalsBefore the tournament began, PESA First Vice President Burk Ellison of FMC TechnologiesDistributionNOW welcomed and thanked the 23 teams of PESA members and Franks Internationalcustomers.  Following the competition, first place went to the Halliburton Team. Frontier InternationalCameron Team 2 placed second followed by the FMC Technologies Team 3. Thehighest scoring male and female individual shooters were Jeff Zuch of Cameron and GroupCarrie Murtland from Weir Oil & Gas. Galtway Industries Gardner Denver Team 1st place – Halliburton Team: Bill Henn, Canyon Oak Energy, Jeff Allison, Halliburton, GE Oil & Gas Team Doug Smith, Halliburton, Ken Armagost, Anadarko and Kyle Stuart, Halliburton. GR Energy ServicesIn addition to the tournament, a Remington shotgun and a Sig Arms pistol were Halcon Resourcesraffled off, with proceeds further benefiting the Energy Educators’ mission. Vikram HalliburtonSignh and Martin Davidson, both of Cameron, were the winners. Hoover ContainerBoth on and off the shooting course, the tournament was a great opportunity forPESA member companies to build relationships and interact with customers and Solutionspeers in an informal setting. The strong turnout for the event demonstrates the Lime Instrumentscontinued dedication of PESA members to support educational opportunities for Lime Rockfuture leaders of the energy industry. Masraff’s Restaurant10 PESA News Newfield Exploration Rockwater Rowan Schlumberger Shell Strategic Public Affairs Sun Coast Vinson & Elkins Weatherford Team Weir Oil & Gas

PESA Presidential PlatformEnergy Policy Issues in 2016As our nation heads toward the 2016 Presidential Election, the future of our energy policy is crucial. PESA hashighlighted a number of principles for a pro-innovation, pro-jobs, and pro-security energy policy that will continueto advance the important role PESA members play in our economy.Regulation: Promote U.S. Competitiveness and SafetyThe U.S. government has a responsibility to keep federal THE POTENTIAL COST:regulations sensible. We should not change standards for A loss of 4.3 million job equivalents per yearbusinesses and consumers so that costs outweigh potential and a reduced GDP by nearly $4.5 trillionbenefits and/or marginalize safety by applying one-size-fits- through 2040.all protocols to unique projects.Offshore Access: Unleash the Potential of Our Oceans One way to do this is to open the U.S. Outer Continental Shelf (OCS) to exploration and development, 87% of which is currently off limits.OFFSHORE ACCESS BENEFITS…AS MUCH AS840,000 $200 Billion 3.5 millionadditional American jobs in government revenue barrels of additional oil per dayExports: Maintaining Our Global Energy LeadershipRemoving our nation’s 1970s-era ban on exporting U.S. crude oil to the global marketplace would ensurewe have policies that match our nation’s new role as the global energy leader. PESA members have beenforerunners in building this leadership, and allowing exports will ensure innovation continues.LNG EXPORT BENEFITS CRUDE OIL EXPORT BENEFITS60,000 jobs in natural gas production and along the 394,000 more jobs on average 2016-2030supply chain $1.3 trillion increase in total government revenuesUp to 155,000 additional jobs in gas-producing states 2016-2030$4 billion per year (overseas sales of increased $5.8 billion savings to consumer’s fuel cost 2015-2035natural gas production)Taxes: Let Free Markets Reign PESA supports sound tax policies focused on increasing economic growth and encouraging innovation by oilfield service and supply companies.PRO-GROWTH TAX POLICIES ENSURE THAT1. U.S. companies are competitive globally;2. The industry can continue to maintain cash flows and recover capital;3. All forms of energy development are equally encouraged, without using tax benefits and burdens to pick winners and losers; and4. Job-creating research and development continues to be a national priority.If you would like to receive a digital copy, please contact Molly Smart at [email protected]. Learn more about the issues affecting our industry at the PESA Policy Center. 11 PESA News Sources: API.org and Hamilton Project “A Strategy for U.S. Natural Gas Exploration”

U.S. Oil and Gas Field 2500 Citywest Blvd., Suite 1110 PRSRT STD Equipment Exports Houston, TX 77042-3049 US POSTAGETop 15 Destinations for Q3 2015 PAID HOUSTON, TX (in U.S. $1,000) PERMIT NO 04805 July Aug. Sept. 154 1,175Panama 1,389 63,255 60,763 4,711 1,116Mexico 47,626 42,088 25,090 16,102 32,959Indonesia 1,446 52,122 7,900 12,000 15,682Russia 8,033 8,223 25,972 13,768 12,638UK 37,753 19,343 21,504 18,966 17,623Canada 9,993 24,005 53,100 7,460 5,400Angola 14,260 12,590 44,942 15,482 6,178Brazil 18,451 310,267 332,042 142,998 109,241Saudi Arabia 63,639 453,265 441,283China 36,471UAE 16,039Singapore 16,997Norway 8,433Korea 52,556Colombia 8,220Subtotal : 341,306All Other: 143,238Total 484,544Sources: U.S. Department of Commerce & theU.S. International Trade CommissionGovernment Affairs UpdatePolicy Committee Washington UpdateThe end of 2015 was busy for PESA’s Policy Committee, Below is a version of the “Washington Insighter” columnsetting the stage for an even more active 2016 educating from the November 2015 PESA email newsletter. Ryanpolicymakers about issues importantto the oilfield service, Bowley, PESA VP Operations & External Affairs, willsupply, and manufacturing sector. submit monthly columns on regulatory and legislative activity and how it impacts PESA’s membership.PESA joined with other trade associations from across theoil and gas industry to highlight the need to change the The end of October brought a new occupant to theoutdated U.S. policy prohibiting crude oil exports. Not only biggest office in the U.S. Capitol as Representativedid PESA sign onto a number of letters to lawmakers, but our Paul Ryan (R-WI) was elected Speaker of the House ofsocial media feeds highlighted the issue ahead of key votes in Representatives.the House and Senate; further, several PESA members werealso active in this area. All of this work met with success, as just The departure of John Boehner from the Speakershipbefore press-time, Congress released end-of-year legislation and the election of Ryan, the youngest House Speakerthat will lift the crude export ban. PESA’s statement on this since 1875, has brought more changes than just new names above the doors to office suites. important language is available online at pesa.org or through PESA’s twitter account (twitter.com/PesaNews). While most will not impact PESA members and the rest of the energy industry right away, the elevation of Ryan PESA’s 2015 Leadership Dialogue series with key lawmakers did leave open the leadership of the House Ways andconcluded in mid-November with a very active discussion with Means Committee, which is responsible for tax issuesRepresentative Pete Olson, Congressman in the 22nd District among other items.and leading member of the House Energy & CommerceCommittee. Rep. Olson has long been a strong advocate for a On November 5, 2015, Rep. Kevin Brady (R-TX) wassuccessful energy industry, leading efforts to ensure that EPA’s selected as the new Ways and Means chair. With taxozone rule truly considers science and economic impacts. reform still a possibility and an on-going presidentialOlson is also a key advocate for ending the export ban. election in 2016, the oil and gas industry is likely to be the focus of a lot of the discussion regarding taxes onceDeveloping relationships with leaders like Representative again.Olson is a key part of the Policy Committee’s active plans for2016. These go beyond the annual Washington Fly-in and are PESA looks forward to working with and educatingfocused on educating policymakers and building long-term policymakers about how tax policies that encouragerelationships. If you or your company are interested in being energy production and innovation through research andpart of this effort, please contact PESA VP Operations & development are key to continued economic growth.External Affairs Ryan Bowley at [email protected] PESA News