East Resources

Articles of Interest
- The Pipeline
- Penn State University
- Marietta College
- Lincoln County High School

The Pipeline

Industry Article by William A. Fustos, Chief Operating Officer, East Resources, Inc.

The oil and gas industry has seen a significant increase in product prices over the last two years. This upswing in prices, while a burden to many consumers, is a symptom of a much larger problem. The US oil and gas industry has been losing ground for many years now in its efforts to find and produce additional domestic reserves. Our ability to provide sufficient crude oil to meet our needs has been an issue for over fifty years, and we now find ourselves importing nearly 70% of our daily needs versus 30% back in the 1970's. More recently, we find that ever-increasing demand for natural gas has surpassed the industry's ability to find and produce adequate supplies, resulting in the need for liquefied natural gas import terminals at several ports in the country. It is reported that these terminals, plus supplies from Canada, will someday supply 20 to 30% of our domestic needs.

The domestic oil and gas industry is significantly smaller than it was in the 1980's, but through innovation and efficiency it continues to provide the single-most critical service to the country after defense. However, the industry finds it more difficult each day to provide the nation's energy when it becomes impossible to drill wells in an ever-growing portion of our country. The "not in my backyard" attitude that has overtaken America has greatly accelerated our energy dependence from outside sources. This is a particularly baffling attitude since the US consumes about 25% of the world's energy while having only about 5% of its population. Unfortunately, many of these outside sources are third world, unstable, political adversaries of the US. Without the ability to develop all of the resources of our country, our reliance on these outside sources will continue to grow.

China will soon overtake our country as the largest consumer of energy in the world. This dramatic increase has occurred in only the last few years, and still provides things like gasoline and electricity to only a small portion of their population. As China and other developing nations increase their need for energy, they will continue to put pressure on world oil and gas markets. It is believed that world oil production will peak within the next fifteen years (some say as early as the next two to five years) and then begin an inevitable decline. At that point, demand for oil will surpass supply on a global basis, and oil and gas markets will become increasingly volatile. Prices will surely rise, and supplies will not be guaranteed.

Alternative sources of energy will become available in the future, but they are not here now and will not be available on a large-scale basis for many years. In the meantime, it is imperative that we develop as many new sources of conventional energy as possible. This means drilling wells in areas that many think are too sensitive for oil and gas exploration. The fact is that the oil and gas business has a tremendous record of environmental stewardship. Industry practices to operate safely and to protect the environment have evolved significantly in the past few decades. Improvements in technology enable us to conduct many aspects of our operations far more efficiently than just a decade ago. This efficiency translates to smaller "footprints" (the amount of surface area disturbed), less waste generated, cleaner and safer operations, and greater compatibility with the environment. The industry has shown repeatedly that energy production and environmental protection are not mutually exclusive. The industry can produce the oil and gas needed to give consumers the freedom and mobility they demand, the warmth and light needed to survive, and still preserve the natural beauty of the environment.

Safe, reliable low cost energy has helped America become the greatest country in the world. After decades of downsizing, the industry is again growing and providing substantial job opportunities in an otherwise flat economic climate. Hundreds of thousands of men and women in the oil and gas industry work hard to produce oil and gas each day for this country. Their dedication and efforts to produce more domestic energy will continue to provide the only security we have from being held hostage by foreign governments with large oil and gas reserves.

"The Pipeline" September 2005. Published courtesy of IOGA of New York.

Penn State University

East Resources, Inc. Donates $50,000 to Deike Building Renovations....

The College of Earth and Mineral Sciences is please to announce that East Resources, Inc., an oil and gas exploration and productions company in Pittsburgh, PA has donated $50,000 to support the renovations to the ground floor of Deike Building on the University Park Campus. A highlight of the renovated space is a new home for the Earth and Mineral Sciences Museum which includes the renowned Steidle Art Collection and the college's highly regarded gem and mineral collection. The new location will provide a more prominent setting for the collections and will make the exhibits more accessible to students and to the general public.

In addition to naming the East Resources, Inc. Museum Curator's Office, the company's gift will provide funds for the maintenance and support of the museum and its exhibits. EMS alumnus Terrence M. Pegula (1973 petroleum and natural gas engineering), and fellow alumnus William A. Fustos, Chief Operating Officer (1979 petroleum and natural gas engineering), were instrumental in making this gift a reality. "Bill and I feel that contributing to the EMS Museum is an obligation owned to the College of Earth and Mineral Sciences for what the college and this great University have done for us and our Families." "We are delighted that the East Resources name will be so visible within the new EMS Museum," said Eric J. Barron, dean if the College of Earth and Mineral Sciences. "The Steidle Art Collection is recognized as the preeminent collection of turn-of-the-century American industrial art in the United States and we look forward to placing it in a deserved place of prominence for our students and visitors to enjoy for many years to come."

For more information about additional naming opportunities within Deike Building, please contact John Dietz, Director of Development, College of Earth and Mineral Sciences, 116 Deike Building, University Park, PA 16802.

Marietta College

East Resources, Inc. Donates $200,000 to Marietta College Renovations...

Dear East Resources, Inc.:

Thank you for your generous gift of $200,000 towards the renovation is the Edwyn R. Brown Petroleum Engineering and Geology Building at Marietta College. The Brown Building was built in 1946, and with the exception of the construction of a drilling fluids laboratory in 1987, the building has not had significant renovations since.

The scope if the renovation project includes removing asbestos from throughout the entire building, an all the new HVAC system and plumbing, consolidating the facility offices for petroleum engineering and geology on the main floor to promote greater synergy between the two programs, consolidating the mud lab and core lab in one large expanded lad with flexible classroom seating, remodeling the gas lab and two geology labs, creating six multi-media classrooms, creating two student research areas for capstone project research, and creating a student lounge. The renovation will begin the day after students complete their final exams at the end of April.

I want you to know that we are providing numerous naming opportunities for gifts of the magnitude that you have committed. Mr. Charlie Powell, Associate Vice President for Advancement at the College, and I would like to meet with you some time in the future to discuss appropriate recognition for your generous gift.

Thank you again for your support for our project. We are truly appreciative of East Resources' generous gift.

Lincoln County High School

Lincoln County School Donation

On behalf of the Lincoln County Board of Education, our students, staff and parents, please accept our heartfelt thanks for the generous donation from East Resources, Inc., to the new Lincoln County High School. These funds, totaling $25,000, will be used to purchase furnishings and equipment for the school's science classrooms and labs.

We are excited about the opportunities and experiences this new facility will bring to our students. As you know, it is a state of the art building that is nearing completion and we believe the generosity of Mr. Pegula and East Resources will enhance the success of those students who will start there in the fall of 2006. We have a total of four science classrooms complete with fully operational labs, something we've never had in the county. Our students will be able to participate in experiments, have hands-on science lessons, and have the opportunity to excel in various areas of science that were not possible before.

We invite you to tour this facility at your convenience and share our excitement as we anticipate opening the doors to major educational advancements in the fall of 2006. We deeply appreciate the generosity of East Resources, Inc., a true partner with Lincoln County High School.

William K Grizzell, Superintendent, Lincoln County High School