may 2012 volume 2, number 2
Transcription
may 2012 volume 2, number 2
MAY 2012 VOLUME 2, NUMBER 2 ON THE COVER George King’s uncanny ability to simplify and solve complex problems has earned him the respect and admiration over the years from his peers. Not the least of which was a recent announcement. Here, King is pictured with his restored 1965 Mustang. Read all about it on Page 14. inside 03 SAFETY IS IN THE HANDS OF THE EMPLOYEE Apache sets bar high – all regions are empowered to ensure safe, environmentally responsible workplace. 04 Apache salutes military veterans with career prospects When it comes to core values, Apache and the military fit like a well-pressed uniform. 06 ATTENTION! Apache boasts dozens of military veterans among its global ranks. 17Former Marine applauds Apache recruiting efforts Charles Patrick knows all too well the difficulties many military personnel face when transitioning into civilian life. 08 NORTH SEA transformATION A new chapter of Apache’s 54-year growth story is unfolding in the North Sea. 10Who-you-know matters Referring an employee adds value to the company and weight to the wallet. AFTER THE STORM Contractors install a new tornado warning system funded by a donation from Apache in Woodward, Okla. A tornado ripped through the town shortly after midnight on April 15, killing six people and injuring more than 20. The signal tower for Woodward’s sirens was struck by lightning, and the tornado hit the community moments later. Apache’s donation is funding the city’s acquisition of a state-of-the-art tornado warning system with battery backup that will continue to operate in case of an interruption of power. 12STILL RAYMOND AFTER ALL THESE YEARS Apache founder Raymond Plank celebrates his library, memoirs, 90th birthday. 14MR. SOLUTION George King named Engineer of the Year; promoted to Distinguished Engineering Advisor 16FFT CELEBRATES 5,000 th GRANT As founding sponsor of Fund for Teachers, Apache celebrates the organization’s 5,000th grant. 18Apaches UNITE IN OUTREACH worldwide Apache regions across the globe give back to their communities through donations to their medical communities. 19ARGENTINA NATURAL HAZARDS When it comes to nasty weather and other natural hazards, Apache crews know the operational show must go on. Apache sets bar high – all regions are empowered to ensure safe, environmentally responsible workplace company that permit each region to adapt programs and procedures to fit local rules and culture while establishing high standards for training, compliance, maintenance and environmentally responsible operation. The regions also plan and prepare to respond to unplanned events. injuries of Apache employees have declined by 63 percent and injuries resulting in time away from the job have declined 37 percent. Injury rates for Apache contractors in the same categories have declined by 34 percent and 30 percent respectively during those same five years. Whether it’s protecting people or operations from sand storms in Egypt, wildfires in the Permian Basin, extreme cold in Horn River Basin, or the mundane but preventable trips, slips and falls, the regions will be the first to see it so they need to own it. Globally, employees understand their personal responsibility for ensuring safe and environmentally responsible operations. Through empowerment, employees have assumed leadership roles to ensure they and their colleagues – full time, part time and contractors alike – maintain the highest standards for assuring the competency of workers, managing work and workers, complying with regulations, properly designing and maintaining facilities, using appropriate environmental considerations, and planning for responses to extraordinary events. The regions also know the local cultures, rules and regulations and what will work best in their area. Someone once said that a true test of leadership is the ability to spot a problem before it becomes an emergency. That dovetails well to the essential elements of Apache’s operating culture – individual initiative and a sense of responsibility and urgency. Those elements reflect a culture where individuals up and down the chain are required to emerge as leaders to achieve a strong commitment to safety. And it’s the reason why the regions are responsible and accountable for day-today execution of all environmental, health and safety (EH&S) programs across the company’s global operations. Apache has established worldwide EH&S standards of performance across the The oil and gas industry is not without risk. Situational awareness is critical, proper training is essential, and safety is, as we often say, not negotiable. There are plenty of rules and regulations out there designed to protect workers and the environment, but just knowing the rules is not enough. It takes vigilant action through an individual’s ability to step up and be a leader to prevent accidents and injuries. All employees at Apache are empowered to ensure a safe workplace and an environmentally responsible operation. That empowerment is at the core of the culture at Apache. Employees are responding and are continuing to work safer. Over the last five years, recordable Apache sets the bar high. And as leaders we should never be lulled into believing that even though the safety performance of the company is improving, our safety goals have been fully achieved. Tomorrow always has another challenge, new events with hidden hazards, and potential for both success and failure. Our vigilance will determine our outcomes. Rod Eichler President and chief operating officer 3 apache salutes When it comes to core values, Apache and the military fit like a well-pressed uniform. “A lot of them have specialized training that crosses over into the industry,” Lauer said. “Typically, they are very devoted and loyal employees, which is a big part of military culture.” “Apache’s core values align very well with that of the military,” said Human Resources Executive Vice President Margie Harris. “The intangibles of selfless service, devotion and loyalty are traits honed in the military. They are traits we value in all Apache employees.” Taking advantage of the good match, Apache has launched an aggressive campaign to recruit veterans from all branches of the military. Since the start of the year, about 20 veterans have come on board as part of the initiative. Overall, about 70 military veterans work at Apache. There is a huge talent pool in the military and Apache wants to tap it, said Mark Forbes, director of Human Resources for North America. Much like recruiters visiting college campuses to search for talent, HR representatives have been making the rounds of the many military bases throughout the region. Recently, HR officials visited Fort Polk near Leesville, La., with plans to meet with 80 to 100 soldiers and tell the Apache story. HR also uses social media like Facebook to engage soldiers in conversation. Getting the word out about Apache is a top priority, Forbes said. One recent event that helped spread the word was Apache’s participation in 4 a Wounded Warriors program in which 10 Marines wounded in action and not returning to duty received HR training in finding jobs and working outside the military. While many veterans may not have specific oil industry experience, many of the skill sets learned in the military, like leadership skills, translate well to the private sector, Forbes said. “There are just some incredibly talented military people out there who want to get into the oil industry but have no background in the field,” he said. “We need to look beyond that.” Dan Lauer, a Coast Guard Reserve commander with 25 years of military experience, recently joined Apache as an emergency response coordinator with the corporate Environmental, Health and Safety Department. He said military personnel represent “a good resource pool to draw from.” “A lot of them have specialized training that crosses over into the industry,” Lauer said. “Typically, they are very devoted and loyal employees, which is a big part of military culture.” EH&S Manager John Williams agrees, saying: “We recognized that many veterans have gained skills through military training and experiences that relate well to our industry. In Dan’s case, his background in planning, safety and emergency re- veterans with career prospects sponse matched perfectly to what Apache needed.” In the Permian Region, the oil business is booming, but the talent pool is shrinking and the current workforce is aging, said Jay Browder, a Human Resources generalist who works out of Midland. Rather than continue to recruit field workers from other oil companies, Browder has turned much of his recruiting efforts to the military. He has attended job fairs at Fort Hood near Killeen and Fort Bliss near El Paso. One of the more effective recruiting tools for staffing the 22 field offices he is responsible for is the new Pumper Trainee Program, Browder said. Since the program’s inception in August, 17 former military personnel are in training. The program requires no oil field experience. Typically, pumpers are hired only if they have two to three years of experience. “We need guys with leadership skills and safety skills and a lot of fortitude, which is typical for the military,” Browder said. “We are bringing in guys who can work their way up and become future managers.” The program involves classroom and field training and is a fairly rigorous process to complete, he said. “We want to make sure it is the right fit for them and for us. So far we’ve had good success,” Browder said. Among the many benefits for former military personnel, Forbes said a job at Apache will help ease the transition to civilian life. “At Apache, we move at a brisk pace and within a structure that is very similar to military style,” he said. See a former U.S. Marine’s Apache story on page 21 5 Apache boasts dozens of military veterans among its global ranks Apache boasts dozens of military veterans among its global ranks. Ask any of them if there are cultural similarities and they’ll likely list several. Mark Richardson, projects group manager and a member of Apache’s North Sea management team in Aberdeen, said Apache’s culture and that of the British military are “a really great fit.” “Despite the common misconception, nobody in the military gets direct orders in the traditional sense of an exact specification of requirements,” Richardson said. “Military commanders set out their intentions, objectives and goals to their subordinates who in turn use their initiative, competence and capability to find the best way to attain the mission.” Richardson said that same style, known as “mission analysis and maneuver theory,” is endemic to Apache as well. Leaders set out broad objectives and goals to their subordinates who in turn find the best tasks to attain them. Richardson attended the Royal Military Academy Sandhurst in Surrey, England, before embarking on a 12-year career as an officer in the Royal Engineers, with the majority of his service spent with commando forces and in diving operations. He left the military and entered the oil industry in 1994 and joined Apache in 2003 as part of the Forties acquisition. Steve Maruk and his son Gage 6 “The brigade commander wouldn’t tell me to build a bridge or a road, he would say, ‘Mark, I need to stop the enemy from using this piece of ground and I need freedom of action and freedom of movement here,’” Richardson said. “We would decide whether we needed to build a bridge or a road. And I wouldn’t tell my lieutenant commanders exactly what was needed. I’d tell them, ‘We need to stop the enemy here and we need a crossing here,’ and they would go and do what was needed to get the job done.” Richardson said the reason that style of management is successful in the Royal Army is that it “speeds up how quickly things happen by getting inside the decision-making style of the enemy, allowing you to always be one step ahead.” “A sense of urgency is involved in our decision-making at Apache as well,” Richardson said. “And Apache’s culture is absolutely in sync with the mission analysis and maneuver theory.” Richardson said the North Sea’s Forties Alpha Satellite Platform project is a classic example of how the two cultures operate in the same way. “We gave vendors basic design requirements and asked them what they could do within that context and a set of parameters,” Richardson explained. “Like the Royal Army, they have people who are very experienced, well trained and know what to do. We didn’t tell them exactly what to do, we told them what to achieve. “That’s why I enjoy working with Apache so much. It has such a close relationship to the military.” Perth-based Training Manager Stewart Allan has the unique perspective of having served for the navies of two countries. “The things that the military and Apaches have in common are core values, do things right the first time, best answer in the room, sense of urgency, teamwork, a sense of belonging and will-do-can-do attitudes,” Allan said. Allan joined the U.K. Royal Navy in 1978 at age 17 and after 26 years of service retired in 2004 as a chief petty officer with areas of specialization and responsibility in engineering, incident response and chemical warfare. That same year, he immigrated to Australia and took a position in the Royal Australian Navy serving in HMAS Stirling on the west coast of Australia managing two fleet support workshops and being actively involved in the navy’s apprentices program. After his honorable discharge in 1973 Wirt obtained his Bachelors of Science in Engineering and made the transition to working in the private sector. There are similarities between Apache and the military, especially in terms of structure. “If you have a good structure that structure can manage people properly and manage the resources properly,” Wirt said. “Then you’re going to have a welloiled organization.” Allan joined Apache in 2008 and has observed a lot of similarities. He equates the Allan Stewart, training manager in Perth, is pictured above roles of Apache employees during his U.K. Royal Navy days. He retired in 2004 after 26 to those of submariners, years of service and joined Apache in 2008. where everyone has an While there are many important job and there’s no room for passengers. similarities between Apache and the military, one difference to a certain “Being on a ship or submarine means that you are expected to degree is Apache’s open-door policy take on responsibility at a very early stage in your career,” Allan on communication. “I never met said. “This is very similar at Apache where you don’t have lots Steve Farris but I feel comfortable of layers of management. Like Apache these vessels are lean enough if I had an issue that needed manned so everyone has their part to play in making the team to be addressed at that level I could effective.” go talk to him,” Wirt Said. “In the Alejandro Rozados, Apache´s Security Coordinator in Argentina, military you don’t just go talk to a was an officer in the Argentine Army before joining Apache five general.” years ago. During his 25 years in the armed forces, he served in Having served with the Kings Own seven different combat units. Calgary Regiment from 1998 to 2001, Stewart today “A military is forged to carry out any operation under a dynamic Steve Maruk, production operator III environment in a safe way,” Rozados said. “Always being alert at Nevis Field, Canada, now uses leadership skills he learned in is a must, while creativity and responsiveness are always the military on the job at Apache. demanded to help fulfill the decisions of the commander. “The many challenges during training help unlock the true These characteristics blend very well with my responsibilities at potential of the human body, showing you what you are capable Apache.” of doing mentally and physically while maintain focus and Ed Wirt, projects controls adviser for the Kitimat LNG Project and keeping objectives in sight,” Maruk said. “There are many times former member of the U.S. Navy went through boot camp at 17 when high-stress situations come up. For example: It’s -45 C and began active duty upon his high school graduation in 1971. (-49 F) with wind, three feet of snow, and a half-frozen field. I smile thinking that at least I’m not digging a hole to sleep in.” Since he enjoyed working with his hands, Wirt chose to train for the Seabees. The Seabees are the construction battalion of the United States Navy and were created during World War II. “The majority of my time served was demolishing and renovating WWII structures on Ford Island (Pearl Harbor) and in Guam; allowing for an increase in personnel due to stepped up bombardment operations in Vietnam,” Wirt said. Maruk has found that most people who have a military background exhibit high standards of self-discipline and selfmotivation. “In a job that often finds you working alone, those two values are key elements to operating efficiently,” he said. 7 NORTH SEA transformation From offices in Aberdeen, Scotland, to SAGE Gas Plant at St. Fergus on the Scottish coast, and to the Beryl Alpha and Bravo platforms in the North Sea, a new chapter of Apache’s 54-year growth story is unfolding. The $1.44 billion acquisition of Mobil North Sea Limited from ExxonMobil – codenamed “Pegasus,” for Mobil’s iconic logo – marked a step change for Apache’s North Sea Region: It was the unit’s first major expansion since 2003, when Apache built a new region to operate the Forties Field acquired from BP. Since that time, Apache has increased Forties’ production and reserves and reduced operating costs. New people have joined the Apache team, bringing experience and fresh ideas and embracing the attributes that have enabled Apache to deliver on its mission to grow a profitable exploration and production company in a safe and environmentally responsible manner. The tightly coordinated change-of-control process to bring the Mobil North Sea assets under Apache’s wing required close teamwork and cooperation from employees of both companies in locations in the United Kingdom, Houston and Norway, as well as contractors, partners and UK government agencies. The combination is creating opportunities for people on both teams to take on new or expanded responsibilities and has introduced new elements to the region’s skill set, such as operating the SAGE gas plant at St. Fergus and a natural gas pipeline, and managing the movement of shuttle tankers to offload crude oil from the Beryl Field complex. Stuart Taylor, an offshore installation manager who joined Apache in 2003 after a 13-year run with BP, said the success of the three-month timeline for the change of control to Apache at year-end 2011 set the scene for how Apache intends to operate the platforms and the gas plant. “I have probably been closer to the workforce than most, with the number of staff and contractor interviews that have been completed over the past six months,” he said. “Throughout the interviews, the common view was, ‘If Apache does what it says it is going to do, this will be a better place to work.’ My response was, ‘Look at Forties.’” Regular visits to the Beryl platforms and SAGE plant by Apache’s senior management helped the operations teams put a face with the company name and assured them the message was genuine, Taylor said. Continued on page 20 8 Aberdeen’s Craig Reid (from left), Katrina Ingram and Michael Munro A new organizational structure should give technicians at SAGE a bigger role, enabling them to take more responsibility for maintenance delivery and plant uptime – and make their jobs more rewarding, he said. “The technicians at SAGE and on the Beryl field are skilled and experienced guys who have shown commitment with many years of service – some in excess of 20 years,” Taylor said. “Many of these guys have never been given the opportunity to become company staff. We’ve changed that – the split between company staff and contractors has flipped – and now we have many more Apaches in the ranks to support not only Beryl and SAGE but Apache North Sea Production. “The new Apaches bring a lot of fresh ideas into the company, and they are willing to adapt to the way that we do business,” he said. “We are all looking forward to the future and the challenges and rewards it will bring.” “Pegasus possessed all of the hallmarks of a legacy acquisition for Apache,” said Jim House, region vice president and managing director. “It was a very sizeable transaction, which will yield a meaningful impact for all stakeholders, including the employees who effectively drive the business. It has been fun to watch as our newest members were introduced to our culture, started learning about what makes us run, and ultimately became Apache’s themselves.” When Claire Middleton and her colleagues arrived at work at Grampian House in Aberdeen after the New Year’s holiday, their computers booted right up and Alan Chesterman and Claire Middleton find new optimism and potential as Apache’s next chapter unfolds. The Beryl field is no longer viewed as mature field with few prospects; instead, Apache plans to invest in the field to develop it further. connected to the Apache network immediately. While that may not be surprising for most Apaches, it was just one small indication of the meticulous planning and hard work that went into integrating ExxonMobil’s Mobil North Sea Limited’s staff and assets with Apache’s North Sea Region. Middleton, who joined ExxonMobil in 2002, has joined the region’s Reservoir Engineering group as a technician, working mainly on the Beryl field, the principal field in the $1.44 billion acquisition. “Beryl is no longer seen as mature field with not many prospects left,” she said. “It’s now seen as a field with lots of future potential. Apache seems keen to invest money in the field to develop it further.” Ron Roberts, an Apache veteran and the region’s exploration manager, agrees: “There has not been any 3-D seismic acquired at Beryl for 15 years. Given the advances in both acquisition and processing technologies, I really believe a lot of opportunity will be unlocked if we acquire a modern survey.” Alan Chesterman, the region’s commercial manager, said the process of transferring and integrating critical Beryl and SAGE allocation systems, production data, allocation processes and gas coordination was completed “seamlessly,” with no interruptions to operational data flow. Chesterman was one of the veterans of Apache’s entry into the North Sea in 2003. He was a 20-year BP veteran when Apache bought the Forties Field. Maintenance team members who had been focused on supporting Forties have a unique opportunity to become familiar with much-different facilities at Beryl, including concrete platforms, subsea wellheads and tie-backs, single-point moorings and an onshore oil terminal, said Craig Reid, the region’s maintenance manager. “Since the turn of the year, with the new challenges presented by our additional Continued on page 20 9 Who-you-know MATTERS Referring an employee adds value to the company and weight to the wallet. Apache’s core values – which include a sense of urgency, a contrarian spirit, honesty and integrity – are the driving forces of the company. On their own, they’re simply words on a piece of paper. But with the right people behind them, they spark innovation and success. Finding and hiring the right employees who naturally embrace these core values is a task made much easier by the company’s Employee Referral Program. “When someone makes a referral, they’re usually referring someone they have worked with before,” said Jon Jeppesen, executive vice president of Gulf of Mexico Operations. “Because of that, they’ll know how this person will handle certain situations; they’ll know their work habits and whether they’ll fit into the culture. If an employee is going to recommend someone, it’s probably because they already know they are a fit. Plus, they’re going to have to work alongside them, so they aren’t apt to recommend someone who wouldn’t be right for the job.” The bottom line is, “We’re all owners of this company and when 10 we refer someone, we want it to work out,” Jeppesen said. The program has the added benefit of rewarding employees who successfully refer a new hire. Those rewards range from $1,000 to $10,000, depending on the level of the position and its discipline. Employees increasingly have been participating in the program. Payouts for 2011 exceeded $600,000 worldwide, which represents about a 12-fold increase since 2009. “There’s no better referral than an employee referral,” said Margie Harris, executive vice president of Human Resources. “We’re thrilled that so many employees are taking advantage of this.” What goes around, comes around. Lee Scarborough not only was hired through the program, he profited from it by referring someone as well. Scarborough joined Apache in April 2011 as a senior staff landman in the Permian Basin after being referred by former colleague and friend, Mike Caudle, who had recently joined Apache himself as a Permian land supervisor. “Mike Caudle came over to Apache from the BP acquisition,” Scarborough explained. “We worked together at ARCO and BP for about 15 years. He worked in the Apache organization for about a month, called me to let me know that he liked the organization and that they needed a landman to work my old ARCO/ BP properties. After talking to him, I knew coming in it would be a good fit.” And it didn’t take long for Scarborough to hear about a job opening in the Permian that suited someone he knew as well. Guidelines “Drilling was looking for a regulatory tech and needed someone with experience and a strong work ethic,” Scarborough said. “I received a call from an old friend, Katy Reddell, who was looking for a new opportunity – she was at right place at the right time. And it turned out she was a perfect fit.” z Employees interested in Ridell, a regulatory tech II, started at Apache in September 2011. There are few industries with the global reach of oil and gas, so referrals can come from almost anywhere. Mike Stahl, a senior accounting manager in Houston, was referred by Bill Word, an Apache Egypt deputy finance manager. “We had worked together previously in Nigeria for a service company,” Stahl said. Stahl agrees that internally generated recruiting “increases the odds the right people will be added to Apache.” He cautions, however, that even some top-notch workers may not be right for Apache, where individual initiative and a sense of responsibility and urgency are the mainstays of the culture. “Apache’s culture is unique,” Stahl said. “It’s not a culture that just anybody can thrive in.” for referring an employee referring a candidate for an open position need to complete and return the Employee Referral Program form, which can be found on the HR intranet site. z Referred candidates need to write the referring employee’s name in the job application form. z Employees must know the individual they refer. z Managers and supervisors are not eligible when referring a candidate into their own area of responsibility. z To receive an award, both the referring employee and the referred individual must be employed for three months after the hire of the referred individual. z Employees who would like to learn more about this program should contact their local HR representative for details. 11 Still RAYMOND after all these years Apache founder Raymond Plank celebrates his library, his memoirs, his 90th birthday Ucross, Wyo., sits near the confluence of Piney and Clear creeks, amid a Northern High Plains landscape, in the shadow of the Bighorn Mountains, and on the edge of the Missouri River watershed. Deer, antelope, wild turkey and birds of prey are abundant. People, less so. The stated population is 25. On the weekend of April 27-29, the population increased ten-fold to honor and celebrate the dedication of Raymond Plank’s Library and Center for Land Stewardship, the publication of his memoirs, A Small Difference, and the early celebration of his 90th birthday on May 29. The event also coincided with Arbor Day, which the Ucross Foundation wanted to recognize in light of the 20,000 trees the foundation has planted in the Ucross area over the last six years. The idea for a library was catalyzed by the January 2011 delivery to Ucross of approximately 150 boxes of Raymond’s personal and corporate papers. It grew from there as a location to preserve and commemorate Raymond’s considerable accomplishments in business, economics, entrepreneurship, education, historic preservation, international affairs, the arts, land stewardship and public policy. As part of the Ucross Foundation, its mission will dovetail with that of its parent. Ground was broken for the library Sept. 15, 2011. Over time, the building will house Raymond’s papers, his books (he’s kept track of every one he’s read since 1942!), his art collection, and many of the artifacts of his lifetime. It is anticipated that the library also will hold documents and objects relating to the history of the historic cattle ranch on which it resides. Apache Corporation gifted $100,000 to the project. Once all initial collections are in place, the library will have a private study area for research. The long-term vision is to open it to the public. Throughout Raymond’s tenure, Apache was a work in progress. By definition, so too were his memoirs. A Small Difference, a title first suggested last fall, is the product of writing Raymond began in 1982 when Apache was still headquartered in Minneapolis. Countless writers and assistants helped nudge the project along over the past 30 years and after retirement he finally found the time to immerse himself in the project to the same degree that he previously immersed himself in Apache. With the very capable assistance of Denver’s Joyce Singular and Houston’s Plank’s memoirs, titled A Small Difference, are hot off the press. Raymond Plank’s Library and Center for Land Stewardship at Ucross, Wyo. Deborah Isaacks Koehler, a finished draft was produced in mid-2011. Raymond hired New York’s Vantage Press for publishing, and his team of editors worked feverishly through March to finish the product. The books arrived in Wyoming with plenty of time to spare: 48 hours. Employees who wish to purchase a copy of A Small Difference can do so through the Fund for Teachers at www.fundforteachers. org, info@fundforteachers.org, or by telephone at (713) 296-6127. All proceeds will be retained by FFT. In Wyoming, the Ucross Foundation will handle sales and, like FFT, retain all proceeds. The centerpiece of the weekend’s celebration was a reception at the library that moved outdoors to a tent large enough to accommodate the gathering. Wind, horizontal rain and snow, and temperatures that wavered in the low to mid-30s buffeted all. Sharon Dynak, foundation president, welcomed the standing-room-only crowd. Mike Plank, the library’s builder - and Raymond’s son - spoke to the remarkable effort given by all to bring the project to completion. Mark Gordon, Ucross Foundation Trustee, addressed Raymond and the foundation’s accomplishments in land stewardship, saluted the dedication, and, in wishing Raymond a happy 90th, gave him the podium. Raymond spoke briefly about his life’s work and the many great friends in attendance. He framed his comments and his life by calling forth many individuals, telling stories about why they were important, and then giving each of them a token of his heartfelt appreciation. In three hours he told stories that summarized a lifetime. By the time he was done, there were few dry eyes. In many respects, the weather reflected the personality of the gentleman all had gathered to honor: still and hot Thursday; blustery and cold Friday; tempestuous and relentless Saturday; calm and relaxed Sunday. As it should be. One attendee captured this most memorable of weekends with eloquence and brevity: “We’re lucky to live in the time of Raymond.” This article was contributed by David Higgins, who retired from Apache in 2009 after 30 years with the company. Higgins was instrumental in editing Raymond Plank’s memoirs and at presstime was beginning a journey along the Kerry Way, a 114-mile trek in Ireland. During the Ucross gathering, Plank visits with Irene Lueckemeyer, his longtime executive assistant during his Apache Houston years. 13 George King named Engineer of the Year; promoted to Distinguished Engineering Advisor DISTINGUISHED ADVISOR Recognized for his outstanding achievements over the years, George King recently was promoted to distinguished engineering advisor, the highest level of career achievement for a technical employee at Apache. The title of distinguished adviser honors King’s lifetime achievements, significant contributions to his field of expertise, and international recognition in the industry. It also distinguishes his senior engineering level at Apache. Only two other Apaches out of an employee population of about 5,300 have earned the title of distinguished advisers: David Monk, director of Global Geophysics and president of the Society of Exploration Geophysicists, and Kent Newsham, chief of staff for Geosciences. “George is the engineer’s engineer,” says Mike Bahorich, executive vice president, chief technology officer and King’s boss. hen George King faced a problem at the tender age of 2½, he did what came natural: He sought a solution. Taking apart the flashlight was easy. Putting it back together was another matter. King, of course, figured it out. Some 60 years later, Apache’s top engineer continues to do what he does best: Finding solutions for tough problems. “I specialize in the weird and the unusual,” he says. “I like the stubborn problems.” King’s uncanny ability to simplify and solve complex problems has earned him a great deal of respect and admiration over the years from his peers. Not the least of which was the recent announcement that he had been named 2012 Houston area Engineer of the Year by the Houston Region of the Texas Society of Professional Engineers. Houston engineers honored King with the top award at a formal presentation banquet as part of the nationwide celebration of Engineers Week in February. “The selection of Mr. King is a result of his distinguished record of service to his profession, contributions to numerous technical and professional societies and long-standing involvement in civic and humanitarian activities,” according to Charles Shumate, awards chairman with the Houston Engineers Week Committee. In recognition of the honor, the city of Houston and Mayor Annise Parker issued a proclamation declaring Feb. 23 as “George E. King Day.” To cap off the accolades, King also received a highly vaulted promotion at Apache. His new title: Distinguished Engineering Advisor, the highest level of career achievement for a technical employee. “He is Apache’s most famous engineer,” says Mike Bahorich, executive vice president, chief technology officer and King’s boss. The new title not only distinguishes King’s senior engineering level at Apache, but honors his lifetime achievements, significant contributions to his field of expertise and international recognition in the industry. And it serves as a prime example of how Apaches can progress in their careers without necessarily moving into management. Before King, only two other Apaches out of an employee population of about 5,300 have earned the title of distinguished advisors: David Monk, director of Global Geophysics and president of the Society of Exploration Geophysicists, and Kent Newsham, chief of staff for Geosciences. Award, and the 2004 SPE Production Operations Award. Born in 1949 and raised in Okmulgee, Okla., in a single-parent household, King was greatly influenced by his mother, one of few women at the time to have an advanced degree in biology. Her love of science trickled down to her son. “My mom was a big teaching influence,” he says. “I had a lot of scientific interests growing up.” “He’s the engineer’s engineer. It’s in his blood.” Early on, King began to tinker with just about anything mechanical he could get his hands on. At 4 years of age, he could take apart the family television set, a 1953 Philco model, and put it back together. A few years later, he began prowling the back alleys of his neighborhood, getting up early on Saturdays before the garbage men made their rounds and searching for old clocks, broken toasters and anything else he could take apart and try to fix. For King, who says he is “humbled and pleased” by the honors, it’s all part of having fun. “I enjoy stepping outside the box – way outside the box – to look for solutions,” he says. “That’s where the real fun is.” At 17, he disassembled the entire engine of the family’s 1957 Ford Fairlane, fixed a burned valve and a bad oil leak, and managed to put it back together – all with no formal mechanical training. His best days at work? “When someone has a tough problem and comes to me for the solution.” “I love to tinker,” he says. “I am still curious after all these years.” “George has an incredible ability to communicate both internally and externally,” Bahorich says. “He can take the most complex engineering issues and make them understandable to a broad audience.” King’s technical background includes energized fracturing, acidizing, perforating, complex formations, coals, unconventional resources, sand control and technology applications. He works with Apache on technology, stimulations and workover operations. Hydraulic fracturing, the process of injecting water, sand and small amounts of chemicals underground to free gas trapped in deep shale rock, is a specialty. He concedes the process “is not perfect, but is probably the lowest risk form of significant energy production that exists today.” He says the debate over its safety and environmental impact “has become more political than factual.” “Natural gas production, which is enabled by hydraulic fracturing, is a great source of future energy,” King says. Among his many accomplishments during his 40-plus years in engineering, King has published or presented 65 technical papers and contributed numerous chapters in petroleum textbooks. He was named the 1985 Society of Petroleum Engineers Distinguished Lecturer and the 1999 SPE Short Course Lecturer. He served as subcommittee chair on perforating for the American Petroleum Institute and was an adjunct professor in petroleum engineering at the University of Tulsa for 11 years. His many awards include the 1997 Amoco Vice President’s Award for Technology, the 1994 API Service King landed his first job at Amoco Production in 1971, and while working full time obtained a bachelor of science degree in chemistry with a minor in physics from Oklahoma State University. He later received a bachelor’s degree in chemical engineering and a master’s degree in petroleum engineering from the University of Tulsa. He stayed with Amoco until 1999, when he went to work for BP. He left BP in 2008 to become senior vice president of engineering at Rimrock Energy, specializing in shale gas fracturing in emerging areas. He joined Apache three years ago. Bahorich says King’s stint at Rimrock is a good example of how Apache attracts talented employees from both major corporations and small private firms. “I got a call from (former) SPE President Kate Hadley Baker, who said ‘George is available.’ I didn’t even need a last name. I knew immediately who she was talking about. I was on the phone with him in 60 seconds,” Bahorich says. King lives in Katy and has been married to his wife Sandy for 40 years. The couple has two children, Brandi and Daniel, and six grandchildren – five boys and “one very spoiled little girl.” Ever since his first encounter with the family’s Ford Fairlane, King’s love of cars has grown exponentially. His hobby is rebuilding and restoring old Ford Mustangs. He owns seven cars and has a 2,500-square-foot garage with three hydraulic lifts. Continued on page 22 15 For Apache, “Exploring what’s possible” is not limited to the oil and gas industry. Since 2001, the company has empowered teachers to do the same through its support of Fund for Teachers (FFT). As founding sponsor of this nonprofit that invests in teachers’ global summer pursuits of new knowledge, Apache celebrates this month the awarding of FFT’s 5,000th grant and the ripple effect of learning these grants instigate in 2,987 Pre-K-12 classrooms across the country. FFT celebrates 5,000 th grant In an effort to support and recognize teachers as professionals, Raymond Plank, then-chairman of Apache, founded the Fund for Teachers in 2001 and appointed Karen K. Webb as the organization’s first executive director. The nonprofit organization has grown substantially and today is responsible for $18 million in grants to 5,000 teachers across the country. Like a fingerprint, each grant is unique because FFT enlists teachers to propose and pursue information and experiences lacking in their practice or classroom. Consequently, FFT fellowships have unfolded in 124 countries on every continent, fueling teachers’ exploration of ideas, terrains and cultures that transform what and how students learn. “Fund for Teachers promotes and supports excellence in teaching by awarding grants for active, experiential blends of classical and contemporary research and learning to individual teachers,” said Webb. “I believe that our unique, dynamic and holistic approach to ‘leaderful’ learning rewards the innovative initiative of teachers – leading to and promoting better teaching and learning opportunities for students.” Apache’s fingerprints are all over Fund for Teachers. Plank’s vision and foundational support grew from a desire to honor the influence of teachers on America’s future civic and corporate leaders. Fund for Teachers Executive Director Karen K. Webb, center, in white, is surrounded by grant recipients. In 2005, Apache Chairman and CEO Steve Farris joined the FFT board, and four years later spearheaded the Pi Society to support STEM (science, technology, engineering and math) fellowships and encouraged his corporate peers to do the same. The FFT staff offices out of Apache’s Houston office, where employees have championed the FFT mission by supporting fundraisers, participating on committees to select grant recipients, and, most recently, hosting a clay shoot at the Permian Region that raised $190,000 to fund grants in that community. Apaches regularly pitching in behind the FFT scenes include: Rachelle Dalcour, Christy Grace, Alma Hernandez, Vivien Liu, Robin Martin, Becky Payne, Hymes Perkins, Lisa Rao, James Ruiz, Tinlee Tilton, Vernon Tyger and Susan Wedemeyer. “Steve Farris and the Apache Corporation board embraced us from the start,” Webb said. “Without that seminal support, we wouldn’t be where we are today.” 16 “Apache depends on sharp minds and innovative ideas to be successful, so the Fund for Teachers is a worthwhile organization for us to support,” said Apache Chairman and CEO Steve Farris. “Students and future employers all benefit from this program’s ability to foster renewed enthusiasm in the classroom.” Application details: Teachers from across the country are invited to propose their ideal learning adventure beginning each October through an online application, due in January. The fellowship application asks teachers to consider not only what objective they want to pursue, but also why, and how they foresee the proposed experience making a difference for them as teachers, for their students, and for their school community. Awardees are notified in April and fellowships take place during the summer. All U.S.-based Apache employee children’s school teachers are eligible to apply. Melinda Bernabe researched the effects of global climate change and pollution on Kenya and Tanzania’s local population for her fellowship. In addition to FFT’s engaging website (fundforteachers.org), the fellows’ odysseys and resulting impact on students can be followed on the FFT Facebook fan page, Twitter and Flickr. Timeline 2001: Apache provides initial funding. Grants awarded in Houston and Oakland, Calif. 2002: Grants awarded in Oklahoma. 2003: National launch announced in New York City, partnering with NASDAQ, NYSE, NewsCorp, Morgan Stanley and others. Noah Heller traveled to Indonesia to develop a curriculum based on drafting and measurement to make authentic connections between wooden boat construction, mathematics and history. 2004: Apache spearheads FFT’s first campaign, Energy for Teachers, drawing support from other oil and gas companies. Apache’s support and foresight results in $3 million that catalyzed FFT’s national growth. 2005: The Boston Consulting group vets and affirms FFT strategic growth plan. 2009: Steve Farris founds the Pi Society to encourage more math and science teachers to apply for Fund for Teachers Fellowships. His vision encourages others in the Houston area to contribute. 2010: FFT celebrates 10th anniversary. 2012: 5,000th fellow awarded Today, Fund for Teachers awards grants in 36 states. Kathleen Courville and Lisette McClung participated in a workshop on open-air painting in Umbria, Italy, to learn teaching strategies for painting outdoors. 17 Apaches unite in outreach An artist’s rendering depicts a proposed Maggie’s Centre in Aberdeen. Innovative program taps tobacco sales to support cancer care in Aberdeen The same attributes that drive Apache’s progress in operations are bringing new ideas to the company’s wellness and outreach programs. In the North Sea Region, an employeedriven program to use market prices on offshore platforms to encourage employees to quit smoking is paying dividends for a planned cancer caring center in Aberdeen. The initiative in Scotland is just one element of Apache’s support for medical research and health care institutions around the globe. Ed Smith, one of the North Sea Region’s offshore installation managers, first highlighted in 2010 that workers on the Forties platforms could buy cigarettes at significantly reduced duty-free prices because of the platforms’ distance from shore. He concluded this was not consistent with the region’s wellness program. Although the initial proposal to eliminate tobacco sales on the platforms was not fully embraced during discussions with the workforce, an alternative emerged: raise the rate to the onshore Aberdeen prices and funnel the full difference to cancerrelated local charities. In 2010, nearly $200,000 (£120,000) of incremental revenues from nine months of tobacco sales was divided between Cranes – a local cancer research organization – and Maggie’s Cancer Caring Centres, which is developing a center in Aberdeen as part of a network across the UK. The region also contributed $100,000 (£60,000) from its corporate outreach allocation. The price increase is having the intended effect: In the first three months, sales volumes declined 12 percent. In 2011, the charity-directed “profits” were 25 percent below the 2010 level on an annual basis, and the region contribution was increased by a similar amount. With the excess proceeds from offshore tobacco sales and Apache’s corporate contributions now totaling about $500,000 Continued on page 22 18 North Sea Managing Director Jim House presents a $200,000 check to Colin Montgomerie for Maggie’s Cancer Caring Centres. Apache LINC organizes and helps at an annual “Carers Day” at Princess Margaret Hospital in Perth. Apache donated this Bobcat front-loader to help Villa La Angostura townspeople dig out and remove volcanic ash. When it comes to nasty weather and other natural hazards, Apache crews know the operational show must go on – and the same is true for field workers in the company’s Argentina Region. June 4 Puyehue eruption. Fortunately, the volcanic eruptions, violent “pamperos” windstorms, and heavy seasonal flooding that can wreak havoc in other parts of Argentina amount to little more than inconveniences where Apache operates. The situation was much worse in Villa La Angostura, however, prompting Apache to donate a small Bobcat front-loader to help the town dig out from under all the ash. The front-loader was used to clear ash blocking the local hospital and other buildings in the village, which is about 31 miles (50 kilometers) from the volcano. “Overall, there is very little effect on operations,” said Fernando Araujo, production and operations manager for the Argentina Region. “There are just some minor inconveniences and some travel disruptions.” “We knew the town had been hit hard by the volcanic ash and that its residents were in need so we were glad to help,” said Region Vice President and Country Manager Michael Bose. “We are part of the community here.” Apache had to deal with travel disruptions last summer after a long-dormant volcano erupted across the border in south-central Chile. The eruption of the Puyehue volcano belched an ash cloud more than six miles high (10 kilometers) that blew over the Andes and carpeted some towns in neighboring Argentina, including the popular tourist spot Villa La Angostura. Apache also conducts operations in the Tierra del Fuego Province in the southern tip of Argentina. There, snow and ice sometimes can be a concern, but the wintery weather never interrupts operations, Araujo said. Apache operates about 292 miles (470 kilometers) to the north of Villa La Angostura in the Neuquen Province, where the airport was forced to shut down periodically over several months because of the drifting volcanic ash. “It affected our air travel from time to time when Neuquen Airport had to close, but then you either drive or take a bus from Buenos Aires,” Araujo said. The bus ride from the main office in Buenos Aires to the Neuquen area fields was no easy trip for Apaches and took up to 16 hours in travel time one way when air service was unavailable after the The cold temperatures range from about 14 degrees (-10 Celsius) to as low as 5 degrees (-15 Celsius) for about three or four months during winter, but Apache rigs continue to operate year-round, he said. Violent windstorms called “pamperos” can strike Argentina’s northeast and the east central area known as the “Pampas,” the fertile South American lowlands covering about 290,000 square miles (750,000 square kilometers). But to the west, in the arid Mendoza wine country where Apache operates, exploration and production operations continue with very few interruptions caused by pamperos or other natural hazards. 19 NORTH SEA transformation assets, I have experienced a real optimism and enthusiasm within the maintenance team,” Reid said. “We are already enjoying the benefits of working with knowledgeable and experienced personnel who have come across to Apache, helping us collectively raise the bar in terms of maintenance delivery.” “Apache’s expectations – sense of urgency, ownership and personal responsibility – have been communicated, and resound across the organisation,” said John Arthur, a 20-year Mobil North Sea employee and SAGE plant manager since January 2010. “My first impressions were that both corporations operated in the same environment but had little in common,” he said. “As the integration progressed, these first impressions proved incorrect. Yes, the terminology was different, but there were clear similarities across all facets of the organization. “The fundamental difference is the ‘cando’ culture that exists within Apache,” Arthur said. “There is less red tape, and bureaucracy is at a minimum, providing a great opportunity to get things done.” Rebecca Brown moved from BP to Apache in 2003 to be finance manager – leading a group that built an accounting function from scratch. “When I first started to meet the ExxonMobil employees, my impression Jim House 20 was that we were about to inherit some great people who are enthusiastic and knowledgeable professionals and want this to be a success; I still think this is the case,” she said. “The biggest challenge is helping the new employees move from one very strong culture to a different very strong culture. For some, it looks as if they have been released and can now run with Apache, and they have done so from day one. But we should remember that we were all new to Apache at some stage in our career, and some people will need to adjust to the pace of the Apache world. “Although the two heritage companies have very different cultures, we should look to take the best from both so that the new organization is greater than the sum of its parts,” Brown said. Katrina Ingram, who joined Apache’s Human Resources team after 13 years at Mobil North Sea, said she has interviewed more than 100 contractors and external staff for Beryl and SAGE technician positions as well as internal supervisory positions since the year-end changeover. Seventy offers were made by the end of March, and recruiting is continuing. “Staffing will be one of the main challenges to face in 2012, both in sourcing and attracting external resources as well as developing effective succession planning to ensure continuity of knowledge, skills and experience,” Ron Roberts she said. “Apache inherited a wealth of knowledge and experience in the transferring employees.” “Every day is different and full of interesting and exciting challenges,” said Michael Munro, who moved into a new position as strategy coordinator after three years at Mobil North Sea. “The biggest change is the speed of decisionmaking. Decisions generally are taken locally; when they are taken out of the region, they are still taken with the same sense of urgency.” And so Apache’s sense of urgency spreads… “As I’ve seen it time and again, it’s the people who come with the assets, when given the chance to work in an environment that rewards pursuing opportunities, are the ones who add significant value,” said House, a 20-year Apache veteran who joined the company with the MW Petroleum acquisition. “Apache’s financial strength and very positive track record in the UK made us the buyer of choice for ExxonMobil,” he said. “We are already seeing positive results emerge from all corners of the expanded region as strengths are shared from both legacy operations. “It will continue to be an exciting time to work in the North Sea Region; I’m glad I had the opportunity to be part of Project Pegasus.” John Arthur Former Marine applauds Apache recruiting efforts fter 25 years in the Marine Corps, Charles Patrick knows all too well the difficulties many military personnel face when transitioning into civilian life. He also knows the value of bringing former soldiers into the private sector. “There is some excellent talent in the military that Apache can tap into,” said Patrick, who fought in Operation Iraqi Freedom and retired in 2003 as a sergeant major, the highest enlisted rank in the Marines. After leaving the Marines, going back to school and graduating from the University of Tulsa with a bachelor’s degree in petroleum engineering, Patrick was recruited by Apache and eventually landed a job as a drilling engineer in the company’s Central Region. “These guys from the military are going to do everything that is expected of them and beyond,” Patrick says. He says Apache’s new campaign to actively recruit veterans from all branches of the military is chock-full of payback. “These guys from the military are going to do everything that is expected of them and beyond,” Patrick says. “In fact, managers will probably be slowing them down rather than speeding them up.” A native of Tulsa, Patrick joined the Marines at 17 after graduating from East Central High School. He worked his way up through the ranks, traveled the world and retired at age 42. For him, like other long-time soldiers, transitioning back to civilian life was not without challenges. “After 25 years in the Marines, it’s a big deal transitioning to civilian life,” he says. “A lot of guys struggle. The big question is ‘What are you going to do when you get out?’ That’s why these recruiting programs are so important.” Patrick, 51, has resettled in his hometown of Tulsa. He and his wife, Angela, have six daughters. Patrick sees similarities between his role in the Marines and his job at Apache, which adds value to what he offers the company. “In the Marine Corps, we planned operations and went into the field and executed them,” he says. “And now I plan how to drill a well and then go into the field and see how the plan is executed.” Military personnel display initiative, professionalism and a strong sense of discipline, qualities that serve well at Apache, he says. “Apache offers structure and rewards, much like the military,” Patrick says. Over a period from 1992 to 2003, Charles Patrick made three six-month deployments and one fivemonth deployment to the Persian Gulf. 21 Medical donations unite APACHE (£320,000), Apache has emerged as the leading contributor to the campaign to build a Maggie’s Centre in Aberdeen. A foundation established by Scottish golfer Colin Montgomerie is leading the $5 million (£3 million) campaign. The communications committee representing Mobil North Sea Limited employees who joined Apache at year-end 2011 have voiced their support for the program, which means the proceeds from tobacco sales on the Beryl Field platforms will be funneled to a cancer charity program as well. “I wholeheartedly agree that the ideal case would be zero sales,” said Jim House, North Sea Region vice president and managing director. “Although that is not the situation, overall this is a very good outcome for the Aberdeen community and in terms of discouraging smoking among our employees.” Apache Chairman and CEO Steve Farris visits with Juri Gelovani, M.D., Ph.D., at the Center for Advanced Biomedical Imaging Research. level and to personalize treatment by determining a tumor’s responses within days, not weeks. In 2010, Apache made a five-year, $1 million pledge to support MD Anderson’s stateof-the-art advanced imaging center as well as to provide funds for its critically important data management efforts and preventative care. Several Apache regions as well as the corporate office have made health care and medical research priorities in outreach activities: z In Houston, Apache first committed $500,000 to the University of Texas MD Anderson Cancer Center in 2005, inspired by the experiences of August Lau, senior scientist in Exploration and Production Technology, who overcame lymphoma through treatment at MD Anderson. Steve Farris, Apache chairman and CEO and member of the cancer center’s Board of Visitors, directed the donation to support development of the Center for Advanced Biomedical Imaging Research (CABIR) at the Red and Charline McCombs Institute for the Early Detection and Treatment of Cancer. CABIR supports computer modeling and imaging algorithms – not unlike the seismic imaging Lau and his colleagues use to find oil and gas – to detect cancer activity at the molecular z In Alberta, Apache Canada has committed $48,000 over three years to help fund cancer research through the Alberta Children’s Hospital Childhood Cancer collaborative – Blood and Marrow Transplant (BMT) and the Applied Experimental and Therapeutics programs. z Recently, Apache’s Argentina Region donated a high-end Ultrasound system to the Rio Grande hospital in the Tierra del Fuego province. This new system is capable of doing many different types of ultrasound and Doppler examinations providing high-quality images that increase accuracy of diagnosis. z In Australia, Apache’s commitments have multiple facets, including a longstanding relationship with the Telethon Child Health Institute, where Apache recently extended support for a specific child brain cancer research project that now totals nearly $400,000, and to assist with the institute’s collaboration with MD Anderson. z The Australia Region also funded the Liaising, informing and Networking for Carers (LINC) Program since the program started in 2010. LINC provides advocacy and case coordination for families caring for children with life-limiting illnesses and/ or complex medical needs. The program works by referring carers and families to support organizations so they gain access to planned and emergency respite, practical help at home, counseling, social support, financial help, career opportunities and education and training. He converted one of the Mustangs to run on compressed natural gas (CNG) and is exploring redesigns that will allow CNG to burn more efficiently to boost power and range. Besides restoring old Mustangs, King has devoted much of his spare time to the Boy Scouts and has served as a Scoutmaster. In recent years, he has become active for the third time in the organization with his grandsons. And what’s in King’s future? For a man who once built a 200-pound, 6-foot-tall robot with a guidance system and camera, the sky is the limit – as long as it involves simplifying and solving complex problems. “I can’t wait to see what I’ll be doing next,” he says. 22 Published for employees of Apache Corporation by the Public & International Affairs Department Editor: LISA NUTTING Art director: LORRAINE RICHARDSON Contributors: BILL MINTZ JOHN ROPER DAVID PLESA MEREDITH FRASIER ANNE HEDRICH Regional contributors: Cairo: MARK AVERY Calgary: PAUL WYKE Lafayette: JOEL PLAUCHE Perth: DAVID PARKER Tulsa: MATT WATSON To contact Explore Email: pr@apachecorp.com Telephone: 713.296.7279 Fax: 713.296.6452 Intranet: news.apachecorp.com Internet: www.apachecorp.com Suggestions for story ideas and improvements are welcome. apache corporation 2000 Post Oak Boulevard, Suite 100 Houston, Texas 77056-4400 713.296.6000 www.apachecorp.com HELPING HANDS Vernon Tyger, Bob Shelby and Marcy Green take a break during Apache Houston’s Habitat for Humanity building project held the third week of May. About 100 employees volunteered, and Apache covered one day off per employee. Shelby, center, served as team lead.