Financing

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Jose Molina

Engaging the special challenges of international sales of petrofield equipment, Jose Moli-na brings both breadth and depth of experience to the company. He is intimately familiar with Mexico, Central America, South America, and other world markets. He is charged with serving new international customers and identifying new international markets for petrofield equipment.

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Ricardo Molina

Ricardo Molina, Chaparral’s bilingual, bicultural, and binational Sales Engineer, enacts many roles with and for the firm. Ricardo has been involved with heavy equipment oper-ations and sales both domestically and internationally. His experiential background in-cludes intensive “hands on” work in the heavy equipment field which he entered as a youth.

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Petrofield Equipment: A Brief History and Commentary

Few, if any, contemporary human endeavors that do not require reliable, accessible, and adequate sources of energy are, for most people, even remotely conceivable. Because energy is essential, humankind has long been involved in finding it, capturing it, deliver-ing it, utilizing it, and trying to do so without irremediable damage to the natural envi-ronment. Energy sources are many and varied; and alternatives to fossil fuels are always under intensive scrutiny, research, and development. It is the energy that derives from life forms and the energy locked into them which were, in a sense, “deposited” beneath the surface of the earth hundreds of millions of years ago that is, perhaps, the single most pervasive concern of modern societies all over the world. Little or nothing happens in any modern society that does not carry with it associated energy costs, costs most often met through the use of fossil fuels. One of humankind’s biggest concerns, therefore, is the recovery of the energy that resides, in the form of coal, oil, natural gas, and other hydro-carbons, beneath the earth’s surface. Accordingly, as energy consumption continues to increase globally, its production from various sources must increase and, in some cases, be enhanced globally to meet the need for energy. Global energy consumption is such that production cannot meet consumption demand simply through maintenance of effort; current levels of production must, for the foreseeable future, continue to increase. Energy sources that are alternatives to the fossil fuels buried deep beneath the earth continue to be the objects of massive programs of exploration and development. The discovery and recovery of the energy located underground and under the sea, however, continue to be of primary importance in terms both of availability and recoverability.

The discovery of oil, natural gas, and related fossil fuels and their recovery and processing provide the impetus for research and development of sophisticated means for achieving these objectives. From the inception of the petrofield industry to the present the processes utilized have come increasingly complex and sophisticated. The nature of these processes is such that magnitude is a ubiquitous consideration: the dimensions related to the petrofield are massive both in concept and size. The processes of the petrofield require both materials and equipment. Many of these processes can only be undertaken with huge amounts of materials, materials which must be handled carefully and responsibly, and with huge pieces of equipment, machines whose complexity and size are both such that they sometimes strain casual imagination. The volumes of materials and the kinds and sizes of equipment required can both best be described by one word: massive! Huge volumes of materials must be transported to and from drilling and other fuel recovery sites. The equipment required to do this is, accordingly, huge. Equipment, including trucks, and entire drilling plants are required on a massive scale. Materials, including, among many others, “mud” in its various forms, are also required in massive quantities. The dimensions of the petrofield are, vast; and the imaginations of those whose business and interest it is to develop these sources have, similarly, to be constrained by few limits. The provision of petrofield equipment is the mission of Chaparral Petrofield Equipment; and it is our commitment to the industry always to be ahead of the industry in terms of engineering, logistical, and executive expertise. Chaparral is committed to environmen-tally sound drilling and to the most advanced and sophisticated methods and materials for exploration, recovery, and environmental protection and preservation through soil remediation, mud solidification, fluid reclamation and remediation, and petrofield and petro chemical blending. From location of fields to maintenance to responsible “clean up” at every phase Chaparral is able to provide both the heavy equipment and the engineering expertise required by the industry.

The extraction of oil and eventually other energy-rich hydrocarbons in North America has been a prominent feature in the industrial mosaic for almost two centuries. Oil extraction in North America began in 1858 in Oil Springs, Ontario in Canada; in the United States oil was first successfully drilled very soon thereafter in Titusville, Pennsylvania, in 1859. Oil extraction was, of course, not confined to North America. Early in the 20th century Russia was acknowledged as the leading producer of oil; the United States, however, soon overtook Russia and became the world’s largest oil producer in the first quarter of the 20th century.

By the 1920s, oilfields had been established in many countries, including Canada, the United States, Peru, Venezuela, the Ukraine, Poland, Sweden, and others. Early in the 20th century, then, extraction of fossil fuels from beneath the surface of the earth was a common endeavor throughout the world.

The extraction of fossil fuels cannot, however, be achieved without affecting the envi-ronment within which it is found and from which it is extracted. Most observers are aware of egregious environmental damage that has resulted from socially and environ-mentally irresponsible extraction of fossil fuels. The topless mountains in the region known as the Cumberland Plateau—as a result of strip mining and other efforts to exact coal from the earth, oil spills in many places, soil and many other kinds of insults to the natural environment, some with long-lasting negative consequences: all are consequences of and incidental to the extraction of organic materials, of hydrocarbons containing huge amounts of energy, from beneath the earth. Responsible extraction requires affirmative efforts to return the earth to the conditions in which it existed prior to the beginning of extraction. And these efforts to remediate environmental damage require heavy equip-ment and huge amounts of materials. For responsible operators in the petrofield, remedia-tion of environmentally damaging extraction consequences is as important as is extraction of oil and other hydrocarbons itself. Thus, as drilling and related technologies have become more sophisticated, so, too, have the industry’s efforts not just to mitigate when mitigation is feasible, but affirmatively to remediate damage to the environment. All of these processes, however, are characterized by and, indeed, defined by the development of and need for materials and equipment. It is the role of Chaparral Petrofield Equipment and its highly trained, intensively experienced, and deeply committed personnel to assist with their expertise from the initial phases of drilling to its termination or modification.

Of particular interest, therefore, to Chaparral Petrofield Equipment are the problems and the needs spawned by those problems. Materials handling, at each point in the fossil fuel extraction process, is critical. “Mud,” oilfield mud, drilling mud, is required in huge quantities. The nature of mud has, of course, changed since oil drilling started. From rela-tively simple sand and water mixtures through further development involving “slickwa-ter” and other engineering and design efforts to attenuate friction, drilling mud is critical. Efficiency and effectiveness in the drilling enterprise depend on drilling mud; and among other materials and equipment, the transportation and delivery of mud is critical. Mud, as an essential material must, of course, be transported—both to the drilling site and away from it; and it is required in very large quantities. Cuttings, the “debris” that results from drilling, must also be transported away from the site, or much more commonly today, disposed of by various equipment-intensive means at the site. Trucks are, of course, basic to these processes. Other equipment, however, often very complicated and resulting from sophisticated developmental processes is also required; and understanding this equipment and providing it to the petrofield industry is the focus of Chaparral Petrofield Equip-ment’s business. The industry continues its efforts to meet global energy needs through research and development. Research and development with particular emphasis on the handling of materials and on soil and other environmental remediation, is also ongoing in the industry. Chaparral Petrofield Equipment’s engineering, sales, and consulting person-nel maintain their expertise and continue to broaden and deepen it even as they continue to be immersed in it.

Continued involvement in the industry both affords and requires that Chaparral personnel be aware of all elements in the petrofield industry. Fracturing, an array of processes re-ferred to by various names including hydraulic fracturing and others or simply as “frack-ing,” is a relatively recent development in the petrofield. It is, however, highly controver-sial because of what some consider the potential for greater environmental damage in consequence of its complexity. The complexity of the process, of course, does enhance environmental risks; but these risks are generally considered to be amenable to mitigation or, even, after the fact, remediation. The expertise, experience, materials, and equipment required to achieve either, however, are daunting in their complexity and their magnitude. They are, however, available; and it is the commitment of Chaparral Petrofield Equipment to provide such expertise and equipment.

Fracking is essentially a cracking or fracturing of shale or other material at considerable distance from the surface of the earth; it is used to allow the capture of natural gas and other fossil fuels trapped, in a sense, in rock formations hundreds of millions of years ago. While fracking is, relatively speaking, a new process or array of processes, it is estimated that it has been used several million times at millions of sites around the world over the past half century. While its widespread use is, then, a relatively new development, its use today is based upon an impressive body of experience, extremely sophisticated engineering, and materials and equipment design. Considerable force is required to fracture the rock, and very special and complicated kinds of mud are used in the process of causing the fracture and of preparing the fossil fuel for extraction. What was once, al-most literally, mud—sand and water, over time has evolved through various forms, in-cluding the once standard and very common Barite and Bentonite mixtures to currently used combinations of those chemicals with other chemicals whose design is dictated by the needs of the extraction process. The relative complexity of this process dictates the need for increasingly complex machinery or equipment, consistent with the increasing complexity of the materials used, both for extraction and for prevention or remediation of environmental damage. The risks associated with fracking are considerable; accordingly, materials and equipment must be designed and made available to mitigate and/or reme-diate, if necessary, potential damage to the environment while promoting efficiency and effectiveness in the extraction process.

The oil extraction process itself, however, while central to the entire endeavor and that which drives it and all of its related processes, activities, and efforts, is neither a simple process nor one that stands alone. Since the early days of humankind’s efforts to extract energy sources from beneath the surface of the earth, the extraction process has been ac-companied by the need to address disposal of oilfield wastes in a responsible manner. Cuttings, used mud, and other materials and debris that result from the drilling and ex-traction process comprise an essential challenge to the petrofield industry. Disposal of oilfield waste, however, always requires petrofield equipment of many kinds. Basic, of course, are trucks used to transport materials and equipment both to the site and away from it. Petrofield trends today, regarding oilfield waste, tend to favor on-site disposal by various means. Some of these means are simple and others are extremely complex. All of them, however, require sophisticated engineering and equipment designed to perform very specific tasks in the overall process. The industry continues to develop new means for environmental remediation. One such process, relatively new and relatively site spe-cific, involves a kind of reverse fracking. That process, referred to as Slurry Fracture In-jection (SFI) is, basically, an attempt to return wastes to their original source, again by fracturing rock deep beneath the earth, and “injecting” the oilfield wastes in the same manner that hydrocarbon fuels were extracted. SFI is used as a means for disposing of non-hazardous oilfield waste (NOW), but other processes specific to the job contem-plated have been developed and/or are currently in development. An example of the spe-cificity of petrofield process, SFI illustrates the degree to which responsible extraction requires environmental remediation going beyond mitigation. As is the case throughout most of the processes discussed in this brief history and commentary, the industry is here dependent upon the availability of appropriately designed equipment. It is clear that equipment essential to the petrofield is often such that its uses are limited, albeit critical both to extraction of fuels and to mitigation and remediation of environmental damage resulting from extraction.

Oilfield and soil remediation and natural environment preservation are, therefore, essen-tial steps in the process; it is never and can never be an afterthought. Because it is, by its nature, neither an afterthought nor a luxury whose execution is optional, materials and equipment utilized during this phase are equal in importance to those utilized at the be-ginning of the process. Materials and equipment are the essence of fossil fuel extraction, at every point in the process, from discovery to extraction to remediation or neutralization of environmental consequences and effects. And the handling of materials by means of appropriately designed equipment is the only means by which these needs can be ade-quately and effectively addressed.

Chaparral Petrofield Equipment is committed to the petrofield industry; its personnel are committed to knowing and meeting the industry’s needs; and its leadership is invested in the success of the industry from the inception of petrofield processes to their termination.

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