Winter 1998


Building little civilizations from scratch


Dick Swan makes a living building “little civilizations” from scratch.

As a senior technical adviser for Exxon Upstream Development Co., the 1965 alumnus helps set up the facilities and business operations needed to open new gas and oil fields for Exxon.

Swan basically works in the “start-up” end of the upstream oil business. Once Exxon’s exploration unit discovers a new gas/oil field, Swan’s unit becomes involved in all facets of making the facility operational. This can include:

• Technical evaluation of the oil/gas reservoirs;
• economic evaluation (will it pay off?);
• determining the type of platform/facilities needed to develop the resource;
• detailed design, fabrication, installation, and start-up of the facility; and in many cases,
• setting up a complete new company to operate the field to depletion.

The latter can include developing all of the business systems for the new company, as well as developing all logistics, infrastructure and support services such as offices, housing for employees, schools, airfields, supply bases, aviation services, marine services, medical care, security and information services.

Exxon Upstream Development Co. (EUDC) is a new business unit for Exxon. Its goal is to reduce cycle time in a start-up and provide a standard methodology for the process. Under traditional start-up procedures, oil companies often need 5 to 10 years to bring a new resource on production. EUDC’s goal is to decrease that time significantly.

“I’ve always enjoyed the pioneering, front-end work,” said the mechanical engineering graduate, who has been with Exxon for more than three decades. “On the front end of the project, nobody’s thought of what you can’t do yet.”

Many times, Swan’s work involves “going where no oil field has gone before.” One of the biggest challenges rests in understanding the environment in which the new facility will operate. This includes everything from the depth of the water in which a well will be drilled to the political and economic situation of the host country.

“You must gain an understanding of all the factors of a region to optimize your execution of the project,” Swan said.

Currently Swan is working on a new development in Angola, a West African nation that has a recent history of civil war. As EUDC plans for a field development in waters more than 1,000 meters deep, it also has to understand the culture in which the new company will operate.

Based in Houston, Texas, Swan brings years of global field experience to Exxon’s new endeavor. He joined Humble Oil (later to become Exxon) upon graduation in 1965. He worked in New Orleans drilling operations for a year and then joined the U.S. Navy for a three-year stint in the Civil Engineering Corps in Thailand.

After the service, Swan returned to New Orleans in various production engineering jobs. He obtained his first experience in a start-up operation in Malaysia, where he spent nine years helping develop a number of new offshore oilfields.

In 1983, Swan moved to Egypt as engineering manager, again on a start-up operation. His next stop was Norway in 1988 where he served in various project coordination and technical adviser roles on three major offshore developments. He returned to the United States in 1995 for a stint working with joint interest operations of fields on Alaska’s North Slope, and he joined EUDC in September of this year.

Since EUDC is involved in setting up new facilities and business operations, often in far-away third-world countries, experience is essential. Twenty or more years of experience are the norm, and expertise in Swan’s work group includes several different fields of oil and gas engineering as well as experience in operations and technical and general management. Swan currently is developing a diversity of systems, facilities and services, including areas such as health support, security, information services and aviation.

Variety keeps the job interesting for Swan and that is why he has stayed in the business for more than 30 years. “Every well is different, every field is different, even the oil itself is different,” he explained. “No two days are ever the same in our business and that keeps things interesting and exciting.”

 

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