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Archie W. Dunham, President and CEO of Conoco. PDF

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DiSschool ocf Petroleoum and Gveologicael Enginerering y I n OU Discovery’s first Executive Column, industry giant and OU alumnus Archie Dunham describes graduates who will make a difference. WWWWW hhhhh aaaaa ttttt ’’’’’ sssss IIIII nnnnn sssss iiiii ddddd eeeee 44444 Executive Column By Archie Dunham 55555 “A School for Leaders” by new PGE director Keith K. Millheim 77777 Dr. W. Arthur Porter Re-engineers College of Engineering 99999 Guest Column by John Campbell 1111122222 SPE Technology Summit in Norman 1111177777 New Faculty and Staff Archie W. Dunham, President and CEO of Conoco. Spring/Summer 1999 Vol. 1 Number 1 The University of Oklahoma DiSschool ocf Petroloeum and Gveologicael Enginerering y Vol. 1 Number 1 The University of Oklahoma Table of Contents OU Discovery 1 Editor’s Letter Issued by The University of Oklahoma School of Petroleum and 2 Executive Column: Petroleum Companies and the Geological Engineering Quest for Graduates Who Make a Difference 100 East Boyd, Room T-301 Sarkeys Energy Center 5 A School for Leaders: A message from the new Norman, Oklahoma 73019-0628 director of PGE Editor: Lisa L. Schmidt 7 Dean W. Arthur Porter: Re-engineering OU’s College Art Direction: Acme Design Works Printer: The Transcript Press of Engineering Special thanks to the contributing 9 Guest Column: John Campbell writers and to Jerri Culpepper, Anuj Gupta, Neil Heeney, Max 10 SPE Technology Summit Draws Industry Leaders to Mefford, Bob Rice, Subhash Shah, Campus David Solberg, Donna Spain, Djebbar Tiab and Michael Wiggins. 12 Well Construction Technology Center: New Name This publication was issued by the Reflects Expanded Capabilities University of Oklahoma and authorized by Keith Millheim, 13 ABET Accreditation Visit Scheduled for Fall director of the School of Petroleum and Geological Engineering. 13 Reservoir Engineering Excellence Team 4,500 copies have been prepared at no cost to the taxpayers of the State of Oklahoma. 14 Scholarships, Internships: Investments with Big Dividends 17 New Department Staff 18 A Note from Roy Knapp 1998-99 OU Discovery Petroleum and School of Petroleum and Geological Engineering Geological Editor ’s Letter Engineering Industry Advisory I Board f you are reading this you to keep your colleagues and class- Steve Richards, Chair introduction, you are a part mates informed. Photos and e-mail are of OU Petroleum and welcome. Ronny G. Altman Geological Engineering W. Clyde Barton, Jr. history. n Introduce us to a prospective stu- You have the first issue dent. Our best leads come from friends John M. Campbell of the first volume of OU Discovery, and family members. Use the Prospect the University of Oklahoma School Reply Card to put us in touch with Sam Cerny of Petroleum and Geological Engin- tomorrow’s petroleum engineers. Dwight Dauben eering’s new magazine for friends, alumni, students and future n Be an author. Write a letter to the Mike Drennen students. Thank you for being a editor or contribute an article. Readers Richard Goddard part of our inaugural issue. are invited to comment on industry On almost every page of this issues, educational concerns, employ- G. Carl Hale first issue, you are either being ment advice - any topic that might be of W. Carey Hardy introduced to new people who are interest to other OU Discovery important to PGE at OU, or we are readers. S. Kim Hatfield telling you about a new initiative or Barry Irani focus. This is an exciting time, one Change is clearly the theme of that called for a new publication to this first issue, but some things will Ronnie Irani keep you informed and involved. remain the same. Like the old Graydon H. Laughbaum, Jr. That is the primary purpose of OU Sooner Pipeline, OU Discovery will be Discovery, to keep you informed and produced twice a year. Some of the Joe Lawnick involved in PGE at OU. features you see in this issue, like Jo Ann Meyer Keeping you informed will be our wonderful first Executive relatively easy. In future issues, you Column, authored by Archie Dun- Allan Neustadt will read about changes in the ham, will be a regular feature with a curriculum being made in direct different contributor each time. Our Michael A. Osborne response to industry needs; innova- guest column, contributed this time Bill Z. Parker tive scholarship and leadership pro- by Dr. John Campbell, will be an grams that will enhance our ability open forum. We will always be Pamela Pierce to attract top prospective engineers; bragging about our students. And, Douglas W. Robertson the increasing importance of grad- hopefully, the pride that each one uate education to the petroleum and of us takes in our association with Arlie Skov natural gas industry, and other items Petroleum and Geological Engineer- Walter J. Sleeper, Jr. that will be of interest to individuals ing at the University of Oklahoma who are committed to the energy will come through loud and clear Mark Smith industry. in each and every issue of OU Bruce Stover Keeping you involved will be the Discovery. more interesting part. Here are Please stay in touch, and we will Robert L. Tiner some ways you can help: do the same. Bob Waller n Send us your alumni news. Whether C. Arliss Watts it’s personal or professional, we invite Paul D. Witt Lisa L. Schmidt Editor 11111 OU Discovery School of Petroleum and Geological Engineering Petroleum Companies and the Quest for Graduates Who Make a Difference I t’s an honor to be featured on the cover of The impairment to industry earnings has been severe. Today, this exciting new magazine. companies are proceeding carefully Of all the things that brighten my life, few and cautiously — delaying discre- tionary investment and reducing are more important to me than my home state costs in any way possible. A new of Oklahoma and the rich fabric of relation- wave of mega-mergers in the industry adds to the inclination of ships that bind me to family and friends there. companies to reduce costs by cutting I plan to maintain those precious ties until back on employment while also my last breath. Among a lifetime of Oklahoma slowing down, or stopping in some cases, the recruitment of new memories, some of the most vivid were created at OU’s graduates. School of Petroleum and Geological Engineering. How long will this last? In my view, energy prices are likely to During the months and years to remain soft for a while, at least come, OU Discovery will be an through 1999. Much will depend on excellent biannual reminder of the what OPEC does during the next 90 marvelous education we received, days to further restrain production. and the benefits we still receive, as But even in the absence of an early graduates of this outstanding school. OPEC agreement, I believe crude As I write these lines in early prices will improve, sooner rather March, PGE alumni who chose a than later. Asia is already recover- career in the petroleum business ing, so demand for crude and come to work each day and are con- refined products should strengthen Executive fronted by the nagging question: during the second half of this year. “When are crude prices going to Supply will also tighten, as recent Column recover?” cuts in drilling and investment by It’s been that way now for almost cash-strapped companies begin to a year, thanks to one of the most eat into production growth. Eventu- severe downturns in industry ally supply-demand will tighten to By Archie W. Dunham, history. The value of a barrel of the point that prices trend upward. President and C.E.O. crude oil slipped into freefall last The petroleum industry will re- summer when it became obvious bound and once again be an aggres- Conoco, Inc. that the demand falloff in Asia was sive recruiter of new talent, espe- B.S. School of Petroleum real. Today, the value of West Texas cially at superior institutions like Intermediate is about half of what OU’s School of Petroleum and and Geological Engineering, it was just two years ago. On an Geological Engineering. The University of Oklahoma inflation-adjusted basis, crude prices What kind of graduates will are at the lowest levels we’ve seen companies like mine be looking for? 22222 in a quarter century. First, we will look for someone OU Discovery School of Petroleum and Geological Engineering Gates and Michael Dell provide the quickly to new technologies, who most visible examples; they’ve can switch flexibly from task to task, created totally new ways of doing and who can be energized to use things . . . totally new products . . . their talent on behalf of the com- and, indeed, totally new industries. pany. Talent, like electricity, must be Another desirable quality of new- switched on for it to make a contri- comers to an organization is flexibil- bution. ity in putting knowledge to work — Finally, companies in the future one’s own knowledge and that of are going to want people who have others. In today’s competitive en- a healthy sense of proportion about Archie vironment, “knowledge” does not job and career . . . and dimensions of Dunham have to be exclusively owned by a their lives. As the leader of a com- company in order to create value. pany with ambitious goals, I want who’s trained in a technical disci- Successful companies are skilled and all of our employees to believe in pline — whether it’s petroleum or practiced at gaining access to the what they’re doing when they come chemical engineering, finance intellectual assets of others — to work each day. I want them to be systems technology, or mathematics. through alliances, partnerships and fully committed to the company’s Naturally, the new employee will joint ventures. True “learning goals and willing to go the extra learn a great deal as he or she gains organizations” that are good at this mile to help achieve them. experience on the job, but Conoco must be staffed by flexible, open- But at the same time, I want is not in the business of providing minded people who possess the re- Conoco’s employees to have a rich “graduate education” to new hires. sponsiveness and customer orienta- and rewarding life away from the Companies that depend on sophisti- tion to excel at partnering with office, refinery or drilling rig. Each cated technologies, work processes others. of us should leave room for reflec- and communications systems as their lifeblood require new employ- ees who can contribute from day “Talent, like electricity, one. But being well prepared for the world of work requires more than must be switched on just technical training, no matter how good the training. Increasingly, employers look for other qualities in make a the people they choose. for it to One is vision. The traditional, tried-and-true ways of doing things no longer cut it in companies with contribution.” ambitious growth plans. Growth companies need visionary thinkers — “entrepreneurs” — throughout their whole organization, at all levels. Entrepreneurs are people New graduates need to be flexible tion, friendships, a satisfying family who are forward-looking, motivated and adaptable for another reason. life and a fulfilling spiritual life. and creative, people for whom Specialized knowledge has a short- These are the pursuits that give achieving or exceeding existing term value in a world where data meaning and depth to our day-to- goals is not enough. Entrepreneurs and information can be zapped day existence; they represent the seek to con-tinuously raise the almost anywhere with the click of a better part, I believe, of why we’ve standards of achievement by ex- mouse. To stay ahead of competi- been put on this planet. All new panding the per-formance envelope tors, companies must capitalize continued on page 4 not just by a little, but by an order of quickly on what they know. So they magnitude. Cyberstars like Bill 33333 need employees who can adapt OU Discovery School of Petroleum and Geological Engineering A rchie W. Dunham is organizations. On the national president and chief level, he is chairman of the United executive officer of States Energy Association and Conoco Inc. and an serves on the boards of directors of DDDDDuuuuunnnnnhhhhhaaaaammmmm, continued from page 3 executive vice presi- the American Petroleum Institute graduates, those from OU or from dent of E.I. du Pont de and the Energy Institute of the Nemours and Company, Conoco’s Americas as well as the National any other school, need to concen- parent. Board of the Smithsonian Institu- trate just as much on developing Dunham joined Conoco in 1966 tion and the board of trustees of relationships with their family and as an associate engineer in Hous- the George Bush Presidential friends, on reflection, and on their ton. For seven years he worked Library Foundation. He is on the spiritual growth . . . as they do on in various positions within the executive committee and the board their professional lives. natural gas and gas products de- of directors of the U.S.-Russia How do you foster development partment and the corporate new Business Council. Dunham is also a of a well-rounded, high-productiv- project development group. In member of the National Petroleum ity graduate (and new employee)? 1973, he became manager of the Council, a key advisory body to the The starting point must, of course, gas products division, followed by Secretary of Energy. be a high-quality student — an an appointment to Harvard Locally, he is a member of the intelligent, highly motivated, goal- University’s Management Devel- executive committee and board of opment Program. directors of the Greater Houston oriented young individual, just the He was elected executive vice partnership, the board of gover- kind of person who is drawn to PGE. president of Douglas Oil Company, nors of The Houston Forum and Then, a series of partnerships must a Conoco subsidiary in California, the board of directors for Memorial come into play to complete the in 1976 and became president of Hermann Healthcare System. education process: the subsidiary in 1979. He re- Dunham also serves on the boards n School and Student working turned to Houston in 1981 as vice of trustees of Houston Grand together to ensure that the new president of logistics and down- Opera, the Houston Symphony, stream planning. In 1983, he was and the United Way of the Texas graduate will have the knowledge named vice president of transpor- Gulf Coast. He led Conoco’s 1996, and skills he or she needs to compete. tation, natural gas and gas prod- 1997, and 1998 corporate United ucts. After participating in Stan- Way campaigns, which each raised n Industry and School working ford University’s Senior Executive more than $1 million. Dunham together in a way that the institution Management Program, he became and his wife, Linda, are active understands what companies are executive vice president of petro- members of the Second Baptist looking for in employees and, in leum products, North America, in Church of Houston. return, that companies support the 1985 and was elected to the Conoco Born in Ada, Oklahoma, in 1938, school’s program board of directors. Dunham holds a bachelor’s degree In 1987, Dunham became senior in geological engineering and a n Student and Industry working vice president of DuPont’s chemi- master’s degree in business admin- together to ensure that new gradu cals and pigments sector at DuPont istration from the University of headquarters in Wilmington, Oklahoma. He has been honored ates are given the opportunity, and Delaware. He assumed the same by both the College of Business the responsibility, to succeed in position for polymer products in Administration and the College of challenging assignments on the 1989. Engineering as a distinguished job . . . and that, in fact, they succeed. Dunham returned to Houston in graduate. In 1994, he was recog- 1992 as Conoco’s executive vice nized by the OU Board of Regents OU Discovery will strengthen president, exploration production. for his dedicated service and these important partnerships. I’m He held that position until becom- demonstrated leadership to the delighted to be associated with its ing president and CEO in January University of Oklahoma. Dunham inaugural issue, and I look forward 1996. was inducted into the Oklahoma to reading many more issues in the Dunham is active in several Hall of Fame in 1998. years to come. professional business and advisory The Dunhams have three 44444 children and seven grandchildren. OU Discovery School of Petroleum and Geological Engineering “A School for Leaders” I n the latest issue of industry” where application of Strategy & Business, a technology is the priority. quarterly published by One could speculate that each era Booz Allen Hamilton, John caused the production of a certain Quelich, former dean of type of Petroleum Engineering the London School of graduate. As we enter the new Business, wrote: “The scarcity of millennium, there is no doubt we qualified managers has become a are challenged by another era for major constraint on the speed with Keith the petroleum student and gradu- which multi-national companies can Millheim ate, and the role of the school with expand their international sales.” industry. This is certainly reflected Other similar commentaries parrot However, numbers of graduates in the new accreditation standards the same concern — a lack of don’t make the school, nor does the referred to as ABET 2000. leadership for the future. money to which it has access. Pro- This year, the College of Engi- If you study the genesis of petro- duction of future leaders, the tradi- neering and the School of Petroleum leum engineering, you will discover tion of leadership in research, inno- and Geological Engineering will be that, starting in the mid-1950s, the vative technology development and up for ABET 2000 accreditation. But University of Oklahoma led the way application, and committed faculty even more importantly the school, in developing so many of the giants and students make the mark of the in partnership with industry via our in the oil business. Archie Dunham, school. Advisory Board, will define the new author of our first Executive Col- Students go to certain universities needs of industry for undergraduate umn; John Campbell, another and academies like Harvard, MIT, students. We will change, alter, add pioneer and OU Discovery contribu- Stanford, Annapolis and West Point and drop courses to meet these new tor; and 1998-99 SPE President because they want to be the best of needs for our dynamic industry. Gustavo Inciarte are all Petroleum the best, the future leaders. To achieve real excellence in and Geological Engineering gradu- As director, I have a vision for the leadership, and to be industry ates and leaders. School of Petroleum and Geological leaders, requires hard work, com- Sports teams have their dynasty Engineering: To be a school for mitment and, most importantly, the years. So do businesses, universities leaders. This includes all aspects of will to change. Already, faculty and schools. The U.S.News and World leadership for students, faculty, teams are developing new direc- Report’s 1998 Best Graduate Schools research staff and our alumni. tions for our reservoir engineering ranked OU’s School of Petroleum Industries go through various program, and the start of our new Engineering as tied with Stanford phases as they mature. Like the Well Construction Technology University for third place. Texas aerospace, automotive, mining and continued on page 6 A&M was ranked first and the other industries, the oil and gas University of Texas, second. One industry went from the technologi- By Keith Millheim could argue that the rankings are cal pioneering days between the subjective, or that the resources 1950s through the 1970s, to the Director, available to the Texas schools are too technological development boom Petroleum and Geological great to compete against. As the days of the 1970s through the mid- Engineering, new director, I respect both Texas 1980s. From the mid-80’s until now, The University of Oklahoma schools for their accomplishments, a new maturity has occurred. We’ve as well as the tradition that Stanford shifted into a “business driven 55555 has in Reservoir Engineering. OU Discovery School of Petroleum and Geological Engineering MMMMMiiiiillllllllllhhhhheeeeeiiiiimmmmm, continued from page 5 Center (previously School of Chemical Engineering and “As director, I called FFCF). A third Materials Science and the Institute team is piloting our for Gas Utilization Technologies. school through the There are other initiatives in the have a vision for new territory of ABET pipeline that will be reported as 2000. they progress. New initiatives in This is not a shotgun approach, conjunction with the but a business strategy and plan. the School of Sarkeys Energy We are building on our strengths, Center in the areas of traditions and industry network. reservoir, rock physics Aligning with the overall strategic a and natural gas goals of the College of Engineering, PGE: To be engineering, have the School of Petroleum and Geo- been started. We logical Engineering plans to be a school for envision a partner- leader in making it work. Barriers ship with Sarkeys that will come down. Old excuses and will build our re- history will not deter us. Only by search capacity, and example will we show the students, leaders.” we are pursuing alumni and industry that the Uni- opportunities to versity of Oklahoma School of create a master’s Petroleum and Geological Engineer- degree in Natural Gas ing is once again a “school of leaders Engineering and for leaders.” Management with the As the line from Frank Herbert’s classic, Dune, says, “The Sleeper has awakened.” K eith K. Millheim Co-authored Applied Drilling Director, University of Leoben, Engineering, published in 1986 and Austria, Department of Drilling, Eberly Family Chair still considered the principal drilling Petroleum Production and and Director, Petroleum textbook in use today. Economics, 1994-1998 and Geological Engineering, Most recent publication: “Virtual Current JPT Special Columnist University of Oklahoma Experience Simulation for Drilling - SPE Distinguished Lecturer The Concept,” Annual SPE/IADC Emeritus Ph.D., Mining Engineering, Drilling Conference, Amsterdam, Received first SPE Drilling University of Leoben, Austria Holland (with T. Gabler). Engineering Award Holds five patents. Distinguished SPE Member M.Sc., Petroleum Engineering, Internationally known consultant Professional experience includes University of Oklahoma in strategic planning. work in Australia, Canada, the Research consultant, Amoco Middle East, United Kingdom, B.Sc., Petroleum Science, Production Research, Tulsa, 1991- North Sea, Norwegian North Sea, Marietta College 1994 Netherlands, South America, and Only current member of OU Board of Directors, Rig Design throughout the United States. Engineering faculty in the National Services LTD and RDS-Naftagas Academy of Engineering. LTD, 1995-1997 66666 OU Discovery School of Petroleum and Geological Engineering Dr. W. Arthur “Skip” Porter: Re-engineering OU’s College of Engineering U rethink their education...its de- livery...its content...its usefulness in niversity of today’s global marketplace,” he said. Oklahoma Porter’s challenge is being met. College of Engi- Today’s CoE students are being neering Dean taught not only the technical knowl- W. Arthur “Skip” edge they will need to succeed in Porter has a the workplace, but also the analyti- vision. It starts in cal and the practical skills they will the classrooms and labs at OU. It need to be competitive in the future. crosses time. It crosses cultures. It Dean “Our graduates not only need to crosses curriculum. It embraces this “Skip” be able to get jobs once they leave state’s economic destiny. It encom- Porter our campus, they need to be able to passes the world. And it all starts create jobs as well if we are going to “I have challenged everyone here with this precept... “The difference take control of this state’s economic in the College of Engineering, from between creating jobs and creating destiny,” explains Porter. the faculty to the students, to wealth is knowledge. We must continued on page 8 understand that knowledge is the new coin of the realm. To gain a He’s been on campus competitive advantage in a changing global economy, we must learn how to leverage this community’s intel- just 10 months and lectual resources,” said Porter. It’s a bold statement. It’s a bold vision. And in a bold move Dr. Porter has accepted the challenge of lead- already you can see, ing the University of Oklahoma College of Engineering into the next millennium and the leveraging of hear, sense and feel his intellectual assets has begun. He’s been on campus just 10 months and already you can see, hear, sense and vision becoming feel his vision becoming reality. Significant progress has been made in all facets of the College of Engi- neering. The most meaningful reality. advancement being in changing attitudes, perceptions and thought patterns. 77777 OU Discovery School of Petroleum and Geological Engineering PPPPPooooorrrrrttttteeeeerrrrr, continued from page 7 Directors and faculty throughout “This process of change is as In addition to serving as the OU the CoE are finding innovative ways difficult as it is rewarding, but it has dean of Engineering, Porter serves to incorporate entrepreneurial to be done to ensure our graduates as the University Vice President for experiences into their traditional become the brave new leaders and Technology Development and is the course work. This means more thinkers needed to guide Oklahoma Secretary of Science and Technology group projects, where the process is and the world through the next Development for the State of as edifying as the outcome. This century,” said Porter. Oklahoma. means teaching the value of tech- F nology transfer. This means expos- rom the moment W. the charge to make Oklahoma a ing students to collaborations Arthur “Skip” Porter leader in the global marketplace by between OU, industry and govern- crossed the Red River facilitating a dialog between ment. This means educating our north into Oklahoma, faculty researchers, business gurus students on managing not only things just haven’t been and government leaders to dimin- talent and technology, but market- the same...for Oklahoma or for ish the barriers that preclude new ing, management and financial him. He has hit the red dirt run- technology from getting to the issues. For example, Porter teamed ning and change for the better has marketplace. been as constant as the Oklahoma Prior to his coming to Okla- up this spring with Rick Cosier, dean wind. Since July of 1998, Porter has homa, Porter was president and of the Price School of Business, and been the visionary presence for CEO of the Houston Advanced Steve Gillon, dean of the Honors the University of Oklahoma Office Research Center (HARC), a non- College, in an unprecedented move of Technology Development, the profit, university-linked research to teach an undergraduate Honors agent of change for the OU Col- institution with major research course that challenges students with lege of Engineering and the interests in energy, the environ- the mission of turning Oklahoma advocate of intellectual prosperity ment and policy studies. Under his into a “Silicon Valley.” The thought for the State of Oklahoma. leadership, HARC raised more provoking new course is titled “The Under Porter’s leadership, the than $135 million in research Role of Technology in the Wealth of Office of Technology Development projects and grants, and currently Nations.” at OU has helped six new busi- attracts more than $13 million in “I wanted to get energy flowing nesses get up and running. Plans industry and government support are under way for a technology for its research. and conversations started,” said research park, and an incubator For more than two decades, Porter, “not just on campus, but in for fledgling entrepreneurs will Porter has been recognized as an the community, over the Internet soon open its doors. Porter’s vision international authority on technol- and out among other intelligentsia.” hasn’t stopped there. He has ogy commercialization and the Porter is morphing other areas of added the fourth component of management of collaborative pro- the CoE as well. New faculty evalua- technology transfer to the tradi- jects. His insight into this highly tion and benchmarking standards tional university paradigm of specialized area is regularly sought are now in place that compare OU teaching, research and service. He by government, industry and College of Engineering faculty intends to produce graduates who academic organizations here and against national standards of the top not only get jobs, but are the brave abroad. 25 public engineering colleges. In thinkers of tomorrow who create Porter is the recipient of numer- addition, CoE promotion and tenure new jobs. At Porter’s impetus, the ous awards and honors, including OU College of Engineering is NASA¹s Certificate of Research standards are being re-evaluated to raising academic standards with Recognition, which he has re- reflect the importance of Porter’s the intention of recruiting the best ceived twice. In addition he is the fourth component of technology and the brightest faculty and 1996 recipient of the American transfer being added to the tradi- students to the Sooner campus. Society for Engineering Manage- tional university paradigm of As Secretary for Science and ment’s Technology Leadership teaching, research and service. Technology Development for the 88888 State of Oklahoma, Porter has led continued on page 19

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