(Tech Connections Column, December 2007, American Oil and Gas Reporter)

Last month’s Tech Connections column by Lance Cole, executive director of the Petroleum Technology Transfer Council, stated that PTTC would soon be managed by the American Association of Petroleum Geologists. I am happy to report that both organizations have announced that a transition leading to this relationship was completed effective Oct. 9.

Since 1994, PTTC–funded primarily by the U.S. Department of Energy with funds matched by the states and industry–has been a recognized force for transferring exploration and production technology to U.S. producers.

AAPG, which was founded in 1917 and has its international headquarters in Tulsa, is the world’s largest professional geoscience organization with more than 31,000 members in 115 countries.

In 2006, Congress declined to provide fiscal year 2007 funding for many elements of the DOE’s natural gas and crude oil research and development programs, from which PTTC drew its federal funds. DOE ultimately provided $1 million of funding through September 2008 to help PTTC transition to a primarily industry-funded organization.

The AAPG Executive Committee and the PTTC Board of Directors both voted in late September for AAPG to assume management of the new organization. This includes fundraising, marketing and corporate operation of the PTTC program. The vote followed a 90-day due diligence period.

AAPG President Will Green of Midland, Tx., says, “PTTC has perhaps the most successful scientific technology transfer program for the independent U.S. producer, and has proven its value to the industry. (AAPG) considers the program important for the industry, the members of the association, and the country.”

Outgoing PTTC Chairman Gene Ames notes, “The strengths of PTTC will be the same: Most universities will stay engaged, regional volunteer groups will be autonomous and will work closely with the universities, cross-discipline diversity will be encouraged, and producers will comprise the majority of the volunteers. DOE remains a strong supporter and will strive toward some funding, albeit at a lower level than historically.”

Members of PTTC’s new board of directors will be announced later.

Green says PTTC’s primary tool for transferring exploration, drilling and production technology will continue to be regional workshops, which will be supplemented by a strong Internet presence, newsletters and other personal outreach. Using these tools, PTTC will continue to connect producers, the service sector, consultants, researchers and others with the data and technology information needed to spur technology application.

Topics addressed by PTTC activities have covered the full spectrum of exploration, drilling and production operations, including unconventional resources, enhanced recovery processes, imaging technology, completion techniques, hydraulic fracturing, and many others.

Serving industry locally through regional lead organizations (RLOs), typically at universities or geological surveys, PTTC’s primary focus has been serving independents. This operation model will continue in the future.

What does this mean for the independent operator? PTTC intends to present a renewed program of technology transfer workshops, like operators have enjoyed in the past, but with an increased connectedness. The goal is to put PTTC on track to not only survive but thrive in a potential environment of no government subsidies. Stated differently, the new PTTC will be funded entirely by industry.

The organization’s business model, as already mentioned, will continue to depend on the volunteer efforts of its petroleum advisory groups and RLOs, but with closer linkage to AAPG’s six domestic sections. The AAPG sections are very active and have strong industry connections, continuing education programs, and sectional meetings, which can provide a tremendous outlet opportunity for PTTC’s efforts. This is in addition to AAPG’s national meeting and continuing education program.

Also, the new model will instill an entrepreneurial incentive in the RLOs, much along the lines of America’s independent operators. At the national level, PTTC hopes to bring in financial support from industry, foundations, and elsewhere.

Most importantly, transferring technological needs transcends boundaries. “Transcend” (according to Webster) is “to rise above or go beyond the limits of.” To quote Lance Cole during a PTTC planning meeting: “PTTC transcends geography (local affordable workshops); transcends disciplines (operations, engineering, geology, geophysics, business); transcends organizations (Society of Petroleum Engineers, AAPG, Society of Independent Professional Earth Scientists, trade organizations, academia and government); transcends knowledge (wisdom is knowledge applied–focused on application); and transcends tools (Web, workshops, word of mouth, two-way interaction, etc.).”

Any other transcends? Look for more transcending opportunities in the future from PTTC.