QS ENERGY, Inc.
5266 Hollister Avenue
Santa Barbara, CA 93111
Phone (Toll-Free): +1-844-645-7737
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QS Energy combines scientific research with innovative problem-solving to serve the real world needs of today’s energy industry. Our core strength is in working collaboratively with our customers to design, develop, manufacture and implement cutting-edge solutions for real-world assets and integrated systems.
The success of our company is based on serving the needs of customers with our scientific, manufacturing partners and top tier customers to bring new solutions to the energy industry.
Jason Lane is a veteran of the oil and gas industry with a 20-year track record of procuring and divesting of oil and gas leases, mineral and royalty interests and production in the lower 48 States through his own partnerships and joint ventures. His most recent large transaction includes lease divestitures to Halcon Resources (Woodbine) and Terrace Energy LLC (Woodbine). Previously, Mr. Lane sold Rocky Mountain prospects to Bill Barrett Corp as well as multiple prospects to Chesapeake Energy across East Texas. Additionally, Mr. Lane has operated and or participated in the drilling of wells in Texas, Louisiana, Montana, and Wyoming. He has been the lead on all of his partnerships since 2002, with partners ranging from family offices to hedge funds.
During his career, Mr. Lane has been directly involved in the leasing of over 650,000 prime acres for his partnerships. Also in the royalty field, he has sold multiple royalty packages to NGP portfolio companies, Noble Royalties and other companies and funds. Mr. Lane has also managed up to a 125 Landman operation which was responsible for title and lease acquisition work for several significant companies throughout the United States.
Mr. Dickson returned to Kinder Morgan after working for the company in their natural gas operations for 26 years during which time he served in various capacities including Director of Operations on two major pipeline projects: the 42” Rockies Mountain Express (REX) and the 42” Midcontinent Express Pipeline (MEP). In between his stints at Kinder Morgan, Mr. Dixon served as Chief Executive Officer for Advanced Pipeline Services (APS), which provided a full range of services to the oil and gas industry including new pipeline and facilities construction, horizontal directional drilling and pipeline integrity/rehabilitation. He also was Director of Operations at Tetra Resources where he completed various onshore and offshore oil and gas wells. He also served as a Senior Engineer with Halliburton Services. Mr. Dickson earned his B.S. in Engineering from Oklahoma State University.
During his extensive career in the energy industry Mr. Bundros has served as chief financial officer and a senior level finance executive with a variety of entities in the oil and gas industry and public utilities sector. In addition to his tenure as Chief Financial Officer at Colonial Pipeline Company, the world’s largest pipeline operator transporting 100 million gallons of refined petroleum products daily across 5,500 miles of pipeline, Mr. Bundros held various financial positions in the Atlanta and New York offices of the Southern Company System, the 16th largest utility company in the world and the fourth largest in the U.S. with over 4 million customers in Alabama, Georgia, Florida, and Mississippi.
Mr. Bundros currently serves as the Chief Executive Officer for Dalton Utilities, a provider of electricity, natural gas, water and telecommunications services to the city of Dalton and portions of northwest Georgia. Mr. Bundros earned his Master of Business Administration in Finance and Bachelor of Science in Economics and Business Administration at the University of North Carolina at Greensboro.
Eric Bunting, M.D. is a board-certified Ear, Nose, and Throat physician, and he is an owner and partner in an independent specialty group. This group has partnered with Wichita Surgical Specialist (“WSS”), which remains one of the country’s largest surgical multispecialty groups. Dr. Bunting has been on the board of directors of WSS for the last 10 years. Dr. Bunting graduated from Kansas University School of Medicine and subsequently received specialty training at Kansas University Medical Center.
Dr. Bunting has many diverse business and entrepreneurial interests. Dr. Bunting has an interest in early startup companies and franchising opportunities. He is an owner and partner in approximately 40 fast-casual restaurant franchises in 10 states. He has board of director experience in the health care industry with multiple ambulatory surgical centers and a radiation center. Dr. Bunting has been an integral part of these boards through merger and acquisition periods. Other interests are in the wine and spirits industry where Dr. Bunting has been involved in a successful spirit start-up, which is poised for an acquisition opportunity. Dr. Bunting has other ongoing active business investments in the evolving internet artificial intelligence industry, as it relates to marketing and advertising.
Dr. Bunting has been an investor in the Company, acquiring a significant number of shares over the last four years. During this period, he has been and will remain an unbiased shareholder advocate looking forward to commercialization, deployment, and eventual profitability for the Company.
Gary Buchler is Chief Operating Officer of the Natural Gas Pipeline business unit of Kinder Morgan, Inc. (NYSE: KMI) and operator of one of the largest interstate pipeline systems in the United States. With oversight of a combined annual expense/capital budget of $1.3 billion, Mr. Buchler is responsible for all Engineering, Operations, Environmental, Health and Safety (EHS), and Land Management functions for roughly 70,000 miles of transmission and gathering pipelines. Mr. Buchler is responsible for the day-to-day management of 3,900 employees, evaluation and oversight of expansion projects, and the evaluation of potential acquisitions. As Chief Operating Officer of the KM Gas Pipelines, Mr. Buchler has been instrumental in the acquisition and integration of more than $45 billion in pipeline assets at Kinder Morgan. Mr. Buchler has held various management positions at Kinder Morgan since 1979, including Vice-President Engineering/Operations Pipeline Group, Vice-President Eastern Pipeline Operations, Vice-President Engineering and Operations Kinder Morgan Gas Treating/Kinderhawk Field Services, and Director of Pipeline Integrity. He earned a Bachelor's Degree in Electrical Engineering from the University of Iowa and an MBA from the Keller Graduate School of Management.
Richard W. Munn is one of the top players in the royalty and mineral arena as demonstrated over the last 15 years with 39 years of industry experience. Of note, he managed the royalty acquisition teams at Noble Royalties and other companies, closing on the acquisition of approximately $450 million worth of Royalty and Mineral Interests involving over 50 separate transactions. Mr. Munn has a solid reputation and extensive relationships with private and public U.S.-based energy producers and mineral holders. He has also managed his own exploration and production companies. From 2005 to 2007, Mr. Munn chaired the IPAA Business Development Committee and from 2007 to 2009, he chaired the IPAA Business Development/ Membership Committee. From 2005 to 2007, Mr. Munn chaired the Society of Petroleum Engineers Business Development Committee. In addition, to his network of oil and gas industry relationships, Mr. Munn is a licensed registered professional geologist in Wyoming with a B.A. in Geology from the University of Colorado.
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ALL QSEP SEC FILINGS
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Please find below a brief selection of the White Papers.
ENHANCING CRUDE OIL PIPELINE FLOW
SUPPRESSING TURBOLENCE AND ENHANCING LIQUID SUSPENSIONFLOW IN PIPELINES WITH ELECTRORHEOLOGY
NEUTRON SCATTERING STUDIES OF CRUDE OIL VISCOSITY REDUCTION WITH ELECTRIC FIELD
REDUCING VISCOSITY OF PARAFFIN BASE CRUDE OIL WITH ELECTRIC FIELD FOR OIL PRODUCTION AND TRASPORTATION
APPLIED OIL TECHNOLOGY [AOT]
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The Company’s first product to market is the AOT™ Viscosity Reduction System, a suite of commercial crude oil pipeline flow assurance solutions. Designed to be installed at pipeline pump stations, AOT™ is cost-efficient, low maintenance, industrial grade equipment that works to improve the performance metrics of pipeline infrastructure. AOT technology was created by STWA research partner, Temple University (Philadelphia, PA) as a new and novel method by which to unlock pipeline chokepoints, improve pipeline flow capacity, reduce energy requirements per ton-mile of product shipped, and extend the life of pipeline equipment. The technology and all AOT™ products are protected by 47 patents world-wide. QS Energy’s AOT™ has been inspected, certified and approved to meet or exceed the specifications and quality control requirements of major North American midstream pipeline operators. It can be scaled to suit many different types of installation realities, from large-scale Midstream pipelines, fracwater remediation facilities, offshore production facilities, mobile transportation, gathering systems, and more. The AOT™ has been independently verified and tested by:
 United States Department of Energy (U.S. DOE at RMOTC)
 Temple University
 The U.S. National Institute of Standards and Technology
 China Petroleum Pipeline Bureau (CPP)
For more information about the AOT™, click here to review the full Product Technical Brief.
On August the 1st 2013 STWA first disclosed the existance of the agreement with TransCanada. and consequently in March 2014, TransCanda installed 110-tons of the Company’s commercial equipment known as AOT™ to one of the largest pipeline companies in North America - the Keystone Pipeline. The AOT™ is now in service and producing revenue for the company.
QS Energy’s AOT™ is a suite of commercial crude oil pipeline flow assurance products designed to be installed at pipeline pump stations in the upstream, gathering and midstream sectors. The AOT™ system includes patented technology combined with proprietary know-how to create a unique solution for improving the economics and efficiencies of commercial-scale crude oil transport. Engineered in response to pipeline capacity challenges, AOT™ technology delivers performance that can be measured in each of the areas of importance in the movement hydrocarbon stream from reservoir to the point of sale. AOT™ technology is equally effective as a stand-alone solution or when deployed as a supplement to existing technology in a category of industrial products called ‘flow assurance’ or ‘drag reduction’ agents. Drag occurs in crude during transport due to naturally occurring paraffin and asphaltene particulates. Historically, oil producers have improved flow by reducing the viscosity of crude with diluents or other types of drag reducing agents that dilute the oil by as much as 50%. QS Energy’s AOT™ technology, however, differs from dilutant techniques in that it operates by applying a non-uniform electric charge (dielectrophoresis) to fluids during transport. Dielectrophoresis engages the paraffin and the asphaltene content in crude oil, creating a conformational change to the molecular structure.
Altering the paraffin and/or asphaltene in the crude oil reduces total surface area of the molecules for a constant volume fraction, thereby reducing the drag within the fluid itself. By lowering viscosity of the crude, pipeline systems benefit from higher flow rates, reduced system pressure, less wear and tear on components and potentially greater margins of operational safety.
Higher revenues and improved opex for pipeline operators
Reduce operational expenses and decrease pipeline pressures
Increase the total flow volume per day of an existing asset by 10-15%
In certain instances, “de-bottleneck” a choke point in their pipeline
Device is 33’x 8’ x’ 8x and bolts onto existing pump stations
Can handle up to 5,000 gallons per minute
Decreases viscosity by up to 56%
Temple University description of the "pilot test" (source Temple University website)
An electrical device designed by professor of physics Rongjia Tao, which significantly enhances the flow of crude oil through pipelines, has been successfully tested on existing U.S. portions of the Keystone Pipeline by the TransCanada Corp.
Tao’s applied oil technology (AOT™) device greatly reduces the viscosity and turbulence of crude oil. Patented by Temple University, the device was created with the financial support of Save The World Air, a Santa Barbara, California-based developer and vendor of commercial flow assurance solutions. Utilizing electrorheology principles, Tao’s devices have been installed just downstream from pipeline pumps. The electrical field polarizes suspended nanoparticles found in crude oil, causing them to aggregate in short chains along the flow direction which both decreases viscosity in that direction and effectively suppressing turbulence. This green technology may eliminate the need to heat the crude oil, a current costly industry standard, while significantly reducing required pumping pressures. Tests have verified viscosity decreases of 40 percent. “It also reduces the power needed to pump crude oil by 72 percent while the flow rate is unchanged,” added Tao. “And by reducing pumping pressures, it’s much safer for both land-based pipelines and pipelines that connect with off-shore drilling sites.”
JOULE HEAT SYSTEM
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In October 2014, QS Energy entered into a Joint Development Agreement with Newfield Exploration Company (“Newfield”) to test a commercial prototype of QS Energy's Joule Heat equipment, and combined Joule Heat and AOT technology, on a crude oil pipeline serving the Greater Monument Butte oilfield located in the Uintah Basin of Utah. This test of the Joule Heat technology provides ideal conditions to demonstrate efficiency and efficacy. The Uintah Basin is 5,000 to 10,000 feet above sea level with average low winter temperatures of 16ºF. Crude oil pumped from the region is highly paraffinic with the consistency of shoe polish at room temperature. Uintah's black wax crude must remain at a minimum of 95ºF and yellow wax above 115ºF and therefore requires a substantial amount of heat to keep it above its high pour point. Operators in the upstream market often run at temperatures of 140ºF to 160ºF. Newfield, like many other companies in the region, incurs significant operating expense in the form of fuel and power used to heat the waxy crude and counter the cold climate conditions characteristic of Utah. The Company’s first Joule Heat prototype was installed for testing purposes at the Newfield facility in June 2015 and the system is operational; however, changes to the prototype configuration will be required to determine commercial effectiveness of this unit. QS Energy are working with Newfield and Dr. Carl Meinhart to modify the prototype configuration for observed pipeline and Joule Heat operating factors. In addition, QS Energy has provided a scaled-down version of the commercial Joule Heat unit for static and flow-through testing at Southern Research Institute (SRI).
Design modifications to the installed prototype unit will be completed subject to final laboratory analysis and correlation. Optimization and testing of this first prototype unit are expected to continue in the third and fourth quarters of 2015.
Joule Heat: better performance, greater efficiencies and lower operating costs
Due to a variety of factors such as high viscosity, density, poor mobility and cold ambient temperatures, the energy industry invests heavily in trace heating and other electrical and natural gas powered systems to ensure the safe, reliable and cost effective transport of crude oil. The use of heat is common throughout the energy sector but has traditionally been extremely inefficient and there- fore costly. Existing trace heating systems rely on using an electrical resistor to heat the oil, which results in inefficien- cies and loss of heat into the pipeline material. Despite the obvious need for a highly energy-efficient heating system designed to deliver optimal heat conductivity, there have not been significant technological innovations in crude oil heating technologies for many years. Until now.
An Inside-Oout approache to industrial heating
Developed by QS Energy and fabricated and assem- bled entirely in the United States, Joule Heat is a highly energy-efficient feedstock heating system that delivers optimal heat conductivity and performance using less power than other traditional heat systems. Specifically developed to treat a wide spectrum of feedstock and designed to withstand extreme weather conditions, Joule Heat is electrically powered, compact and adaptable to a variety of environments, from pipelines and oil fields to marine, rail and truck offloading facilities.Unlike traditional trace heat systems, Joule Heat is configured to deliver maximum heat conductivity by making direct contact with feedstock within the apparatus, an ASME-code pressure vessel, providing better perfor- mance at a lower operating cost.
How Joule Heat works
Joule Heat is an electrically powered crude oil heating technology specifically developed for use on pipelines and within offloading facilities and refineries. Joule Heat subjects the oil to a direct and intense electric field that increases oil temperature uniformly without interrupting flow. Preliminary testing of Joule Heat suggests efficiencies of over 60% when converting electrical energy into internal energy in oil, compared to efficiencies of approximately 30% typical in trace heat systems.
Innovative heat solutions for today's leaner, sustainable energy industry
Joule Heat provides E&P entities, pipeline operators and rail, marine and truck offload facilities with a new class of heat treatment options. With a smaller form factor than trace heating systems, offering virtually unlimited configuration options, Joule Heat is a plug and deploy system, requiring only in-flow and out-flow piping and access to a standard electrical wall outlet. Joule Heat is highly configurable to a variety of applications and can be modified to your exacting specifications.
ADDITIONAL APPLICATIONS (R&D)
Building a portfolio of solutions consisting of alternate distribution and network applications.
QS Energy solutions target the primary sectors of the oil & gas market (in order of greatest sales potential) upstream (producers), midstream (transporters) and downstream (refiners). The company’s first product to market is the AOT™ Viscosity Reduction System. Designed to function as an industrial-grade flow assurance solution, AOT™ Midstream is installed on pump stations in the upstream, midstream and gathering sectors. Cost-efficient, low maintenance and easily configurable to customer requirements, AOT™ Midstream unlocks pipeline chokepoints, improves pipeline flow capacity, reduces energy requirements per ton-mile of product shipped, and extends the life of pipeline equipment. Based on intensive analysis of the real world needs of tier-one oil producers and pipeline transportation companies throughout the world, QSEP has determined that the AOT™ Viscosity Reduction Systems offers a broad spectrum of pipeline optimization applications. In addition, applications outside increasing oil flow speeds are also in development. QS Energy plans to build a portfolio of solutions consisting of alternate applications for the AOT™ technology as well as other technologies for use within related capital-intensive distribution and transportation networks.
Areas in which the company believes that the AOT™ viscosity reduction systems has applications:
CARGO SHIPS (VLCC)
Accelerated on load / off load time
Bunker fuel enhanced combustion
Commercializing Joule Heat System
QS Energy is also commercializing STWA Joule Heat, an energy-efficient technology for heating crude oil in pipelines to improve flow. Unlike traditional trace heating systems which generate heat via a resistive trace heating element which transfers energy into the oil, the QS Energy solution applies an electrical field directly to oil, generating heat within the flow itself. The result is optimal heat conductivity and performance with less power and in a smaller form factor.
ACTIVE GROWTH STRATEGY
QS Energy management has created a stable and robust foundation for growth in a dynamic industry.
Following the deployment of an AOT™ Midstream system with a top-tier North American pipeline operator, QS Energy recorded its first revenues** from this equipment lease. Securing regulatory approval for the use of the 110-ton AOT™ system on a 500,000 barrel per day high-pressure crude pipeline paves the way for commercial deployment of QS Energy technology anywhere in the world. A second equipment lease agreement with another leading midstream energy company for use of STWA flow assurance equipment on a crude-condensate pipeline provides the company and its technology with a presence in the fast-growing condensate market. Ultra-light crude oil and condensate production has skyrocketed due to the enormous amount of oil and natural gas being recovered from shale formations.
Recent Business Development/Operational Achievements.
--> Executed non-disclosure agreements with two top tier multi-national energy entities
--> Filed for additional intellectual property provisional patents
--> Completed operational realignment that brought the Company into full Sarbanes-Oxley (SOX) Section 404 compliance
Supporting a safer, greener, more economical delivery method for transporting fuel.
New sources of oil are being discovered throughout the globe and production is already booming or poised to accelerate in the United States, Canada, Australia, Mexico, Argentina and hot spots on the continent of Africa. The challenge is to find safe, efficient and environmentally friendly ways to transport this 'new oil' to refineries. The primary methods of transporting oil include rail, shipping, trucking, and overland pipelines. Examining the pros and cons of these delivery systems, experts are considering not just the monetary costs, but the risk factors. In the event of an accident, how much oil would be released? During transport, do land areas or waterways potentially suffer from contamination? From well hole to destination, what levels of CO2 might be emitted into the environment? According to multiple industry and government studies, pipelines are by far the safest and most economical method to move crude. However, existing pipeline infrastructure domestically and internationally is increasingly incapable of meeting the demands of burgeoning production. U.S. Secretary of Energy Ernest Moniz recently noted that increased investment in pipeline infrastructure is needed to keep up with the growth of new oil production. That’s where QS Energy’s AOT™ Viscosity Reduction System can play a vital role. When oil producers and transportation entities deploy the AOT™ system on their pipeline pumping stations, crude feedstock moves with less drag resistance, thereby accelerating the flow of oil while achieving greater operational efficiencies. The QS Energy AOT™ Viscosity Reduction System allows producers to increase the volume transported per pipeline. By using the AOT™ system to move oil through pipelines at all-time rapid speeds, huge cost savings are complemented by reductions in pollution that would have been caused by alternative forms of oil delivery mechanisms ... trucking, shipping and rail.
QS Energy's AOT technology decreases viscosity by up to 56% at ROMTC.
The net result is that QS Energy technology is instrumental in the safer, more cost-effective delivery of greater volumes of oil and helps the industry avoid reliance on riskier alternative transportation methods. Furthermore, because AOT™ reduces the amount of energy needed to power pumping stations, QS Energy provides its customers with an ability to reduce their carbon footprint and lessen the environmental impact of their operations. QS Energy proudly works to develop methods for safely and efficiently delivering the energy to people who depend on it. The company strives to build lasting partnerships with energy companies to collaboratively do what is right for the global economy, meet worldwide energy needs, and to do it as safely as possible.
Collaborating with Tier-One multinational energy partners to provide effective, cost-efficient and innovative product solutions to meet rigorous industry demands.
Today’s global energy industry is rapidly evolving and expanding as conventional energy exploration, extraction and transportation entities apply new technology and equipment to unlock new unconventional production fields worldwide. These innovative oil exploration and production techniques have made previously unrecoverable assets viable for the first time, driving an unprecedented surge in oil production. An estimated $90 billion was invested in midstream and downstream infrastructure in 2014, a figure expected to climb to $200 billion by 2035 to support the projected increase in global energy production (U.S. Department of Energy). This has forced producers to compete for less attractive transport alternatives, leading to massive growth in rail and highway traffic and creating logistical, environmental and safety challenges as well as higher operational expenses and significant liability exposure. As producers seek to bring surging production to market, new technologies and methodologies are being developed to eliminate pipeline chokepoints and solve related problems that have far-reaching economic, national security and public safety implications. These flow assurance technologies play an increasingly critical role in transporting the expanding production rates from wellhead to refinery. As a technology incubator to the energy industry, QS Energy is intimately involved with its customers and key manufacturing partners in this new energy revolution. QS Energy works within the multi-billion dollar oil and energy industries to provide innovations such as its AOT™ solid-state viscosity reduction equipment to the upstream and midstream markets. The company is partnered with top-quality manufacturing service providers to fabricate equipment to meet the highest standards of inspection and quality controls within the industry.
QS Energy has identified significant expansion opportunities to deploy AOT™ and other QS Energy-developed technologies within similar and related capital-intensive distribution and transportation networks on a global scale. By combining scientific research with best practices engineering and inventive problem-solving, QS Energy is ideally positioned to address the operational challenges facing today’s energy industry.
Clean Technology, Green Benefits
The use of carbon credits and carbon tax incentives is growing in importance within the industry, providing a positive financial impact for companies deploying “clean tech” equipment such as AOT™. By improving operational efficiencies and measurably reducing their carbon footprint, energy companies stand to benefit from each ton of CO2 (carbon dioxide) or CO2e (carbon dioxide equivalent gases) they remove or prevent from entering the atmosphere. QS Energy’s proprietary hydraulic analysis software provides global producers and transporters of crude with highly accurate projections, as well as full case study analyses, of the pipeline assets they can capture by implementing the AOT™ solution in their operations.
Valuable IP Portfolio
Strong Growth Potential
Approved Vendor Status
Proliferate Target Market
Broad Industry Application
Strong Corporate Governance
ALL SEC FILINGS
SECTION 16 FILINGS
RECENT UPDATES/PRESS RELEASES (read from the bottom up for the most recent update or press release)
Value Engineering Program Results in Improved AOT(TM) Efficacy and Efficiency