2014 PESA Summer Newsletter

news May – July 2014 Executive Address Volume 68, Number 2 Five Themes for Success in the Industry www.pesa.org PESA members shed their PESA Chairman Paul but they will never forget. A coats and ties for the 9th Coppinger of Weir Oil & Gas distinctive part of integrity in Upcoming Events Emerging Leaders Executive leadership is saying only things Address held this summer at professionals in the oil and that will stand the test of time 2014 Executive Leadership TopGolf. PESA Chairman Paul gas industry. while being honest as early as Seminar with R. C. Slocum Coppinger, President, Pressure possible. Pumping, Weir Oil & Gas 5 Themes for Success: October 15, 2014 shared his knowledge and Direct and honest feedback Royal Sonesta experience of three decades Integrity to an individual that works for Houston, Texas in oil and gas after which you is hard to give, and it is everyone headed outside for a Differentiation certainly easier to tell people 2014 CID Annual Meeting TopGolf tournament. only good news. However, October 22 - 24, 2014 Leadership if you take the time to tell Perdido Beach Resort Attendees said they someone where they have Orange Beach, Alabama appreciated the opportunity Creating your operating model room for improvement, that to network in a relaxed could help them go further in 2014 Energy Educators environment. Ronnie Kott of Work-Life balance their career long-term. Sporting Clays Tournament Cameron said, “Paul delivered great career advice and Integrity Differentiation October 31, 2014 valuable leadership lessons at American Shooting Centers the Executive Address. TopGolf Mr. Coppinger explored the Focus on your current job was a perfect venue, providing topic of integrity as it pertains and do that job to the best Houston, Texas a casual environment for to decision making as a leader of your abilities and more everyone to relax, have fun, of an organization. As you opportunities will come. 2014 Legal Seminar and network.” move up in an organization, In 2008, Mr. Coppinger November 7, 2014 the complexities and stress attended the Emerging Leaders Rollie McGinnis of Auge g r o w e x p o n e n t i a l l y. Yo u Executive Address where JackThe Westin Houston, Memorial City Industrial Fasteners said the will forget what you said to B. Moore, President and CEO Houston, Texas Executive Address at TopGolf someone or an organization, of Cameron, presented the was his favorite event in the “Keys to Success in the Energy Explorers of Houston 2014 two years he has been active Industry.” One of Mr. Moore’s Award Reception in PESA. “It was exciting to keys to success was always November 19, 2014 see so many new and young focusing on the current job Lakeside Country Club faces, and I hope this address he was in, and he has clearly Houston, Texas is an indication of future PESA done well with that philosophy. events,” he said. 2015 PESA Annual Meeting Leadership April 22 – 25, 2015 Mr. Coppinger identified five themes he felt were On the topic of leadership,The Ritz-Carlton Lodge at Reynolds important to share with young Mr. Coppinger suggested Plantation creating a reputation in your Greensboro, Georgia Find all of our upcoming events at www.pesa.org. In This IssueChairman’s Letter................Page 2PESA Perspective.................Page 3FSOProgram...................Pages4-5Mid-ContinentDistrict Meeting....................Page 5EL Seminar.....................Page 6OTC...............................Page 7RegulatoryUpdate.................Page81 PESA News —Executive Address continued on page 3.

Chairman’s LetterAs you know, we are in the midst of exciting changes at PESA as we build on our past success PESA Chairman Paul Coppingerand move the association forward into new areas of engagement. With the election of Leslie of Weir Oil & GasBeyer as President and Mike Perini as Executive Vice President in June, you provided PESAwith a leadership team that will not only develop greater public affairs, communicationsoutreach and advocacy but prioritize and maintain the truly valuable foundation of PESA asa trusted resource.The first step in our evolution is to modernize the PESA brand, including logo, missionstatement, and key member company priority messages that the team will use to builda strategic communications platform. The Executive Committee and Board of Directorsapproved these elements as well as a name change to more accurately reflect PESAmembership: Petroleum Equipment & Services Association. We are excited to share thesedevelopments, which are the foundation for a modern PESA.Paul CoppingerWeir Oil & GasPESA ChairmanMission of the AssociationThe Petroleum Equipment & Services Association (PESA) is the unified voice for the energy industry’s service, supply andmanufacturing organizations, advocating for and supporting this sector’s achievements in job creation, technological innovationand economic stability. PESA is a trusted resource, advancing member priorities on key industry issues.Key Member PrioritiesInnovation: Promoting the development of innovative technologies that have led to a resurgence of energy supply in the U.S.Jobs: Representing a diverse global workforce of 1.3 million that generates more than $277B in annual revenue.Energy Independence: Advocating for policies that will bolster the surge in U.S. energy production to reduce our dependency onforeign resources and positively affect the balance of trade.Health, Safety and the Environment: Supporting the crucial health and safety efforts of member employees, customers, andcontractors, as well as the minimization of environmental impact in the communities where we live and work.Education: Equipping current and future leaders with the knowledge, training and education that will support the energy industry’srole as a driver of the U.S. economy.Driving innovation. Creating jobs. Securing independence. PESA Chairman PESA President Paul Coppinger, Weir Oil & Gas Leslie Shockley BeyerPESA News is published by: PESA Vice Chairman PESA Executive Vice PresidentPetroleum Equipment & Services Association Gary Halverson, Cameron Michael Perini1240 Blalock Rd., Suite 110, Houston, Texas 77055713-932-0168 PESA 1st Vice President PESA Director of Communications© 2014, PESA Johan Pfeiffer, FMC Technologies, Inc. Molly Smart2 PESA News

PESA Perspective It is truly an honor to serve as time for our industry. president of PESA. I sincerely appreciate the warm welcome The PESA team has been hard at work as we navigate this new I have received since joining season. The first phase of our evolution is already underway the team in July. It has been a with the launch of a social media presence. PESA will join the privilege meeting with many of conversation; sharing news, providing industry insights, and you and seeing firsthand the engaging with influencers to help promote and advocate for pride and sense of family that our association and members. We invite you, your organizations runs through our association and your employees to follow and engage with us through and industry. Facebook, Twitter, LinkedIn and Google+. The role that each of your In the coming months, we will add even more opportunities for PESA to support you and the industry via legislative and regulatory individual companies play updates and eventually targeted advocacy and grassroots action tools. I’m thrilled about the launch of these efforts, and look in advancing our nation’s forward to working with each of you as we continually refine and promote the unique voice and reach of PESA membership. economy through innovation This association represents a legacy of individuals andPESA President Leslie and job creation is unmatched. companies who not only embody the American dream, but alsoShockley Beyer But our work together is more fuel our country’s future. Thank you for the opportunity to serve than just the resurgence alongside you!of energy production; it’s the noble effort of safeguardingAmerica’s security through energy independence. I am humbledto be part of this charge and grateful to join you at such a pivotal Best, Leslie Shockley Beyer PESA PresidentExecutive Address Continuedorganization that makes people want to work for you. People Weldon Mire (Halliburton), Galen Cobb (Halliburton), PESAaren’t looking for the nicest person to work for. They’re looking President Leslie Beyer, David Martin (Halliburton), Ronnie Kottfor a successful and inclusive team. (Cameron), and Joe Murphy (Forged Products, Inc.)Be inclusive: I really try to involve my team even if I believe my Justin Travis (Auge), Aldo Perez (Auge), Brian Swagerty (FMCmind is made up. Create an environment where your team can Technologies, Inc.), PESA Chairman Paul Coppinger (Weirchallenge you. Oil & Gas), Rollie McGinnis (Auge), and Cameron Feehan (Hannon Hydraulics)Create your operating model 3 PESA NewsPick a great team. Don’t be threatened by someone on yourteam that is good enough to take your job. Hiring people thathave great potential makes you look better.Find a balance between being in the detail, thinking strategically,and delegating based on job scope.Structured cadence – an expectation of the organization thatthey understand you’re going to hold everyone accountable tostrategic plans.Cultural transformation to have the organization continuouslyimprove that is not only great for business but it createsinvolvement at the ground level.Work – Life BalanceAlthough it’s hard, there’s something to be said for thesustainability of how you’re working. People with a good work-life balance are more effective over the life of their career.Develop your entire life, work, family, hobby, church, charity,relationships with friends and family. As you develop in yourcareer, you’ll make better decisions the more balanced yourwhole life is.

FSO Training ProgramFor the past 21 years, PESA has co-sponsored a Foreign petroleum industry. In return, PESA member companiesService Officer Energy Industry Training Session with the gain valuable, educated contacts in the FSO community.U.S. Departments of State, Energy, and Commerce. Theweek-long training familiarizes Foreign and Civil Service The April/May FSO class of 25 graduates hails from theOfficers with the energy industry to facilitate informed U.S. Departments of State, Energy, USAID and Commerce.energy decisions at their embassy posts around the world, Their current assignments range from Taiwan, Iraq, Brazil,specifically in energy-intensive countries. Member and Russia, Cameroon, Iceland, and more.customer companies along with nationally-recognizededucational institutions provide experts, materials, and Highlights of the FSO training included the James A. Bakerequipment for the training program. To date, PESA has III Institute for Public Policy; a half-day with ConocoPhillips’trained more than 550 federal government officers. exploration and downstream team; a tour of Weatherford’s drilling rig; lunch at Chevron, a tour of Halliburton’sMember companies like FMC donate their time, personnel, Research and Development Center; and a tour of the FMCand facilities to give FSOs a hands-on overview of the Technologies, Inc. production floor.4 PESA News

FSO Graduates Around the World21 years ofForeign ServiceOfficer TrainingProgramTo date, PESA has trained more than550 federal government officers inmore than 90 countries. The mapat right shows where the FSO’s werestationed and how many graduatesattended from each country.Mid-Continent MeetingThe 2014 Mid-Continent District Meeting was held May 14 at the Petroleum Club of Oklahoma City, our featuredspeaker (pictured bottom left) was Dave Hager, Chief Operating Officer, Devon Energy Corporation. PESA First VicePresident Johan Pfeiffer of FMC Technologies, Inc. (pictured bottom right) chaired the meeting. 5 PESA News

How to Stay Out of Court, theNews and JailAll that is required to file a If we control ourlawsuit is a minor fee. Once communications, wethat fee is filed, you enter control our liability. You candiscovery and you are under walk away from liability justpenalty of law to respond to the by sticking to the facts.four primary discovery methods: Focus on what you did dointerrogatories, request for versus what you didn’t do toproduction, depositions and keep the focus on positivessubpoenas. All it takes is one versus negatives.document to lose a lawsuitor settle out of court. Eartha Don’t distort, don’tJean Johnson shared with PESA misrepresent, just focus onmembers how to avoid these what you did versus whatsituations. you didn’t do.Emerging Leaders hosted Electronica special session May 13 Communications Bestwith Eartha Jean Johnson of Practices:LegalWATCH. Brian Swagerty Take disputes offline: Ifof FMC Technologies, Inc. you have a real issue with(pictured below) chaired the someone in work, you needmeeting. to pick up the phone andThe session covered Business Eartha Jean Johnson of LegalWATCH led an interactive session not create a paper trail ofCorrespondence: How to Stay with practical information. issues by email.Out of Court, the News and Jail. Bayer example of the company showing Only circulate to essentialMs. Johnson shared the following best that they cared about safety: It’s not a personnel: don’t CC the companypractices during the seminar: problem to have a problem; it’s how you CEO on emails that are non-essential handle it. information because they are then liableRisk Mitigation Practices: for having received that information. Limit Communications: use of reply to all and global distribution.If you follow the policies and proceduresand something goes wrong, your Write as if you are being published, speak Consider access to information: encryptedcompany is going to back you up. as if you are being recorded, and act files aren’t necessarily safe. as if you are being videotaped. NeverMs. Johnson said to take care when rely upon a privilege or promise of Do not communicate business informationreferencing and equating costs with safety, confidentiality. on personal social media accounts.and used an example from a GM memothat affected a 1999 lawsuit.6 PESA News

Offshore TechnologyConference 2014PESA escorted U.S. Ambassador to Qatar Susan L. Ziadeh and Deputy Assistant Secretary of Commerce forManufacturing Chandra Brown to visit PESA members during OTC 2014.IPAA/PESA Petroleum Academy students also visited PESA member companies during OTC. Below, students visitSchlumberger and FMC Technologies, Inc. 7 PESA News

U.S. Oil and Gas Field 1240 Blalock Road, Suite 110 First Class Equipment Exports Houston, TX 77055 US Postage PaidTop 15 Destinations for Q2 2014 Houston, TX (in U.S. $1,000) Permit No. 04805 April May JuneSaudi Arabia 29,638 40,562 52,378Russia 69,440 22,434 48,108Singapore 74,382 37,839 47,079Korea 78,414 59,059 40,488Mexico 66,398 119,260 35,405Brazil 21,666 29,958 33,755Angola 29,640 78,844 33,586UAE 22,256 22,381 32,083China 32,335 57,409 31,863Argentina 5,753 22,352 23,176Canada 15,264 19,759 22,635U.K. 14,861 16,807 21,585Australia 13,473 22,136 14,541Iraq 11,069 12,199 13,607Nigeria 8,802 10,645 13,006Subtotal : 493,390 571,644 463,297All Other: 182,555 209,749 173,862Total 675,945 781,392 637,158Sources: U.S. Department of Commerce & the U.S.International Trade CommissionRegulatory IssuesPESA continually monitors and is actively engaged in the development of legislation and regulatory rulemaking that affect theservice and supply sector of the oil and gas industry.We will send a bi-monthly regulatory email (sample below) update on issues of interest to PESA members. PESA staff monitors theseregulations and participates in support activities (letters/comments) where appropriate on behalf of member companies.8 PESA News