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How does oil get from the ground to the gas pump? Crude Crude Journey Henry J. Kaiser: His Legend and His Cars Page 20 SUMMER 2005 Asia/Pacific – Winter 2005 C O N N E C T I N G T O I N D U S T R Y 6 Keeping it Safe Proper installation of safety devices saves lives. 8 Profiles of Courage Kyle Maynard shows students what wrestling is all about. 26 Awesome Australia Known as the land down under, Australia has lots to explore. 34 Economics How much do we really spend? Journey How does oil get from the ground to the gas pump?

CO NNEC TING TO INDUSTRY Journey Crude

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Page 1: CO NNEC TING TO INDUSTRY Journey Crude

How does oil get from theground to the gas pump?

Crude Crude Journey

Henry J. Kaiser:His Legend and His Cars

Page 20

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Win

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20

05

C O N N E C T I N G T O I N D U S T R Y

6 Keeping it Safe Proper installation of safetydevices saves lives.

8Profiles of CourageKyle Maynard shows studentswhat wrestling is all about.

26 Awesome AustraliaKnown as the land down under,Australia has lots to explore.

34 EconomicsHow much do we really spend?

JourneyHow does oil get from theground to the gas pump?

Page 2: CO NNEC TING TO INDUSTRY Journey Crude

Count on the Right Connection.

Dixon Valve & Coupling Company, Inc.Dixon Fire Equipment

800 High Street, Chestertown, MD 21620 USA800-355-1991 • 410-778-2000 • Fax: 410-778-4702

www.dixonfire.com Dixon (Asia Pacific) Pty Ltd

1086 South RoadEdwardstown, SA 5039 AUSTRALIA61.8.8276.7255 • Fax: 61.8.8276.7876©2005 Dixon Valve & Coupling Company

Dixon Fire

When you need Fire Equipment Connections, it’s got to be Dixon.

In the fire service, you face plenty of challenges every day. Finding a complete line of readily available hoses, connections and valves shouldn’t be one of them.

For all your needs, choose Dixon. We offer a full range of products for fire suppression and fire protection systems from a single source. And, because we’ve been a leading provider of fluid handling products for almost a century, you know you’re getting quality that’s second to none.

We give you fast delivery via our own network of 12 facilities stretching from New York to California and throughout Australia.

For your FREE copy of the latest Dixon Fire catalog, call toll-free (800) 355-1991, or e-mail your request to [email protected].

Page 3: CO NNEC TING TO INDUSTRY Journey Crude

HENRY J. KAISER:HIS LEGEND AND HIS CARS

Known mainly for manufacturing cars,Henry J. Kaiser was a true entrepreneur.

26 AWESOME AUSTRALIAThe land down under is rich

in natural splendor.

6 KEEPING IT SAFE

An Ounce of Prevention

7 GADGETS

New Products

8 PROFILES OF COURAGE

Up Close with

Kyle Maynard

16 FACTS & FIGURES

Oil Facts

17 LEADERSHIP

Filling Holes:

The Responsibilities

of Employees

32 HEALTH & FITNESS

Ways to Burn 500 Calories

34 ECONOMICALLY SPEAKING

The Impact of Oil Prices

10 CRUDE JOURNEYFollow oil’s long trip fromthe ground to the gas tank.

departments

features

SUMMER 2005ASIA/PACIFIC – WINTER 2005

20

Page 4: CO NNEC TING TO INDUSTRY Journey Crude

We hope you enjoyed the first issue of

BOSS magazine. Your comments are always

appreciated and, based on the ones we

have received, we believe that we are on track. With each publication, our

intent is to provide interesting and informative articles that focus on sub-

jects that are important to people involved in industry.

With world gas prices going through the roof, we feel it is appropriate to

focus this issue of BOSS on oil production and related businesses. We all

know that finding and refining enough oil to meet our needs is a continu-

ing challenge. However, what we may not know is the process of getting

oil from the ground to the gas pump. This is the topic of our feature arti-

cle, and it is a fascinating sequence of events. I trust that you will find this

and the related articles well worth reading.

The articles concerning leadership, integrity and perseverance speak to

issues that are an important part of our business, and we want to share

them with you. Enjoy this issue of BOSS, and please let us know what

you think. We want to be your Right Connection. You can reach us at

[email protected].

Richard L. Goodall

CEO, Dixon Valve & Coupling Company

4 BOSS 4 S U M M E R 2 0 0 5

SUMMER 2005ASIA/PACIFIC – WINTER 2005

PublisherDixon Valve and Coupling Company

EditorRandi Hertzberg

Editorial BoardJoseph Dawson - Vice President

Marketing and Business DevelopmentLouis F. Farina - President, COORichard F. Flaherty - President Sales

and Marketing DivisionRichard L. Goodall - CEODouglas Goodall - Board of DirectorsBob Grace - Dixon Fire

Division ManagerKaren R. Hurless - Advertising ManagerScott Jones - National Sales Manager

Editorial & DesignAlter Communications, Inc.

Art DirectorJason Quick

Directors of Custom PublishingColleen McKennaJonathan Oleisky

Please submit address changes to:Alter Communications, Inc.Attn: Sarah Moran1040 Park Avenue, Suite 200Baltimore, MD 21201443-451-0736Fax: 443-451-0777

BOSS is produced quarterly by Dixon Valveand Coupling Company and AlterCommunications. The acceptance of advertis-ing does not constitute endorsement byDixon Valve and Coupling Company of theproducts or services. The publisher reservesthe right to reject any advertisement that isnot in keeping with the standing or policiesof Dixon Valve and Coupling Company.Copyright 2005, all rights reserved.Reproduction of any part of BOSS withoutwritten permission is prohibited.

Dixon Valve and Coupling Company800 High StreetChestertown, Maryland(800) 355-1991Fax: (800) 283-4966www.dixonvalve.com

The RightConnection

Page 5: CO NNEC TING TO INDUSTRY Journey Crude

S U M M E R 2 0 0 5 4 BOSS 5

continued on next page

FloTech overfill from Dixon Bayco provides the most reliable overfill protection on the market. Now you can truly protect yourself against failed sensors and the false security of meaninglesswarranty claims.

Plus, with warehouse locations in the U.S. and Canada, you canbe sure that FloTech overfill is always in stock and ready to ship.No more waiting days or weeks for deliveries!

What’s more, the technicians at Dixon Bayco are committed to providing prompt, responsive service for any overfill system —ours or theirs. For more details including fleet references, call toll-free 800-355-1991, or visit www.dixonbayco.com.

©2003 Dixon Bayco USA

Dixon Bayco USA800 High StreetChestertown, MD 21620 USA800-355-1991 • Fax: 800-283-4966www.dixonbayco.com

Technical service hotline: 877-582-3569

Tired of …• Failed probes?

• Unavailable products?

• Poor technical service?

• Meaningless warranties?

• Nothing but excuses?

Demand the best.

• High reliability

• Genuine replacement

• API-compatible

• Immediate availability

• Best-in-class technical service

• Unequaled three-year warranty

Does your overfill supplierhave you seeing red?

Page 6: CO NNEC TING TO INDUSTRY Journey Crude

After cleaning one digester, a three-man crew began the process ofremoving their tools. To do this, twomen climbed to the top of thedigester. One pulled the chippinghammer up by its hose and the otherman coiled the hose. The third per-son remained inside the digester tosteer the chipping gun through the“spider wires” as it was being hoistedup. Just as the chipping hammerreached the top of the tank, a shortpiece of pipe connecting the air fit-ting to the tool broke and the chip-ping hammer plummeted into thetank, bouncing like a pinball off thespider wires. The worker inside thedigester had no idea which way the25-pound tool would travel as it cart-wheeled off the wires. The tool struck the worker’s hand, which wasgrasping a spider wire and amputatedthree fingers.

Removing the tool from thedigester using the air hose was “stan-dard procedure” at this plant. Eventhough there was a door at the bot-tom of the tank, the workers pre-

ferred pulling the tool up by the airhose rather than carrying it up thesteps that wound around the outsideof the tank.

This plant was in violation of sev-eral Occupational Safety and HealthAdministration regulations. Standard1926.302 (b6) states: “The use ofhoses for hoisting or lowering toolsshall not be permitted.”

Standard 1926.302 (b1) states:“Pneumatic power tools shall besecured to the hose or whip by somepositive means to prevent the toolfrom being accidentally disconnected.”

ANSI Standard B186.1-1984 sec-tion 7, paragraph 7.4 states: “If aquick-disconnect coupling is used ona percussion tool, it shall be separatedfrom the tool by a whip hose.”

If any of these regulations had beenfollowed, this accident would nothave happened. Properly installedsafety devices, even when equipmentis not being used, can prevent acci-dents from occurring. 4

An Ounce of PreventionHandling air tools unsafely can cause breakage—or much worse!

KEEPING IT SAFE

6 BOSS 4 S U M M E R 2 0 0 5

Do:• Use a pipe elbow instead

of a horizontal outlet toreduce stress on hose.

• Use a pipe elbow insteadof a horizontal outlet todirect the pressurizedmedia to the floor in caseof accidental disconnect.

Don’t:• Ever allow compressed

air to be directed towarda person.

DO’S AND DON’TS

Extracting aluminum and refining it into a substance that another manufac-

turer can use as an aluminum part requires many steps. The raw material,

bauxite, is fed into a separator tank also known as a digester. Inside the digester

tank are a series of wires that resemble a spider web. These wires carry an electri-

cal current that separates the aluminum ore from the rest of the material. This

process is known as electrolysis. The residual matter ends up layered on the walls

of the tank. Periodically, this clay-like substance needs to be removed from the

walls of the digester; pneumatically powered chipping guns do the job. Removing

this residue is hot, dirty and strenuous work.

Case Study

Page 7: CO NNEC TING TO INDUSTRY Journey Crude

PACEMASTER PLATINUM PRO TREADMILLWhen is a treadmill not just anotherpiece of exercise equipment tohang your clothes on? When it’sthe PaceMaster Platinum Pro byAerobics Inc.

Designed for home use, thePlatinum Pro features anexpanded runningsurface, measuring20” x 60,” a heavy-duty frame and a top-out speed of 12 miles per hour. Moreover, it has digitalfunctions that allow you to measure time, speed, distance,incline, calories burned, aerobic points, heart rate, heartrate zone, average speed and pace.

The Platinum Pro has express speed and incline keys,programmable user IDs and enhanced features. These fea-tures include a motivational display and a completely newconcept, E-Courses, which bring distance-based virtualreality workouts into the home.PaceMaster. www.pacemaster.com. $2,299.

PIONEER AVIC-N@ MULTI-FUNCTION NAVIGATION SYSTEMStay abreast of traffic conditionswhen you are on the road withPioneer’s soon-to-be-releasedAVIC-N2 multifunction navigationsystem. But wait, there’s more…

The system offers satellite-based traffic information usingXM NavTraffic, which displays

traffic incidents and road flow conditions on a motorized6.5” touch screen monitor. The device color codes roadsaccording to the speed of traffic flow and gives alternateroutes around major traffic incidents and heavily con-gested streets.

Accurate, detailed directions to destinations throughoutthe entire United States and Canada, including Alaska andHawaii, are available via electronic map and voice prompts.

The AVIC-N2 can fit virtually any vehicle on the road; asan added benefit, it plays AM/FM radio, satellite radio, CDs,MP3 CDs and even shows DVDs using its display screen.Subscription is $13.99 a month for a bundled offering of XM NavTraffic and XM Radio. Pioneer.www.pioneer.com. The MSRP is $2,200.

BY KAREN BAXTER

GADGETS

TOP PHOTO COURTESY OF AEROBICS INC., BOTTOM PHOTO COURTESY OF PIONEER ELECTRONICS

Page 8: CO NNEC TING TO INDUSTRY Journey Crude

8 BOSS 4 S U M M E R 2 0 0 5

Overcoming physical obstacles,Kyle wrestles with college life.

BY JOSH DARNELL

PROFILES OF COURAGEPH

OTO

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Kyle Maynard’s dorm room is typical,at least by the standard of most othercollege dorm rooms. “I just crashedout for two hours after class,” saysMaynard as he opens the door to histidy, yet not overly neat, living space.Covers sit slightly disheveled on auniversity-issued bed frame. Walls arelivened up by posters of “AmericanHistory X” and the Ultimate FightingChampionship. In a position ofprominence against the room’s interi-or wall sits a modest television setconnected to a sleek XBox videogame system.

Again, typical. Except for the motorized wheelchair

parked by the doorway. “My whole life has been a pursuit of

normalcy,” says Maynard, who is relax-ing in his room on the third floor ofReed Hall, happy to have survived hisfirst college midterms.

Despite his efforts to the contrary,Kyle Maynard is decidedly atypical, atleast in comparison to most collegestudents. And, it isn’t because thetalkative freshman is a congenitalquadruple amputee, meaning his armsend just above the elbows and his legsend above the knees. It’s because,despite his physical limitations,Maynard has succeeded as a motiva-tional voice for the WashingtonSpeakers Bureau and as an all-state-level wrestler who studies three dif-ferent martial arts. He has met eachof life’s challenges with an ebullienceof spirit uncharacteristic of the typi-cal, self-absorbed 18-year-old.

Maynard— who was offeredwrestling scholarships by severalschools— works out with Universityof Georgia’s (UGA) club team.

“I don’t really look at myself (asdisabled),” says Maynard. “It soundsstrange, but that’s the way I’ve beenraised.”

Up Close WithKyle Maynard

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S U M M E R 2 0 0 5 4 BOSS 9

Maynard’s parents helped him over-come the challenges presented to himby his condition, rather than bow tothem. As a child, he learned to easilynegotiate the stairs in his two-storySuwannee home. He learned to tra-verse short distances without the aidof his wheelchair, moving across thefloor in a motion far too fast and fluidto be considered “crawling.” At age11, Maynard fulfilled his goal of play-ing football, lining up at nose tacklefor a local rec league team, and inhigh school, he again overcame thelimitations of his body to become asuccessful wrestler.

“Since I was young, sports hasallowed me to compete against able-bodied athletes and to do all the thingsI’ve dreamed of doing,” says Maynardof his improbable athletic success. “It’sbeen the biggest avenue to reach outto people.”

Now, Maynard, whose story hasbeen told on the pages of numerouspublications such as Sports Illustrated

For Kids and on various televisionprograms, is testing his mettle againstan entirely different world of chal-lenges—college.

The sprawling campus of UGAmight not seem like the logical choicefor someone like Maynard, but he con-siders the University a perfect fit.

“I picked UGA, forone, because it’s gottento be a really prestigiousuniversity now academi-cally, and I knew that if Iwanted to wrestle some-where on scholarship, I’dhave to go pretty far outof state,” says Maynard, apre-business major. “Ijust loved the atmos-phere. I love that it’s atown completely devotedto the University.”

Getting from class to class and thento wrestling practice isn’t a problem forMaynard, who primarily uses hismotorized wheelchair to get aroundcampus. He makes only sparing use ofthe university’s disability services.

“I feel bad using the‘handi-van,’ because Idon’t think that I quali-fy,” says Maynard of theUniversity’s disabilitytransportation service,which picks up mobility-impaired students practi-cally at their front doors.“It’s just kind ofingrained in me.”

The University alsoprovides a note-takingservice, which, like the

“handi-van,” Maynard politelyeschews. His arms meet at a point infront of his chest, allowing him tohold a pen. It’s a skill he developednot out of necessity, but out of typicalteenage indolence.

“I started to use a tape recorder, butI was so lazy that I hated listening to

class twice,” explains Maynard. “Soinstead of doing that, I just learned totake notes.”

According to Maynard, the biggestchallenge he’s faced as a college fresh-man is learning the requisite art of timemanagement—a sentiment that wouldring true with almost any classmate.

“During the week, I’m pretty muchfocused on class and academics, thenthe weekends are pretty much all trav-el,” says Maynard, whose public speak-ing docket has recently included trips tohigh schools and other venues in NewYork, Idaho, Cleveland and Chicago.“There’s no time to hang out and party.You have to use (your time) wisely.”

Despite his hectic schedule, Maynardhas experienced the same excitementand awe that most freshmen feel duringtheir first semester at UGA.

“There’s unimaginable opportunityto stay involved, and then there’savenues to relax,” says Maynard of hisnew college world. “It’s just been sonuts. But it’s been fun!” 4

Reprinted with permission from GeorgiaMagazine, University of Georgia.

“SINCE I WAS YOUNG, SPORTS HAS ALLOWED ME TOCOMPETE AGAINST ABLE-BODIED ATHLETES AND TO DOALL THE THINGS I’VE DREAMED OF DOING,” SAYSMAYNARD OF HIS IMPROBABLE ATHLETIC SUCCESS. “IT’SBEEN THE BIGGEST AVENUE TO REACH OUT TO PEOPLE.”

Kyle’s University of Georgia wrestling team.

Page 10: CO NNEC TING TO INDUSTRY Journey Crude

10 BOSS 4 S U M M E R 2 0 0 5

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S U M M E R 2 0 0 5 4 BOSS 11

B Y D A V I D H O L Z E L

JourneyCrude GETTING OIL FROM THE GROUND TO THE GAS TANK

IS PART GEOLOGY, PART CHEMISTRY, AND INVOLVES

THOUSANDS OF MILES OF PIPELINES AND A WORLD-

WIDE TANKER FLEET.

T The oil derrick and the gas pump don’t readily come tomind as objects of beauty. But, if they disappearedtomorrow, the world would be unrecognizable. The two

structures are visible reminders of the source of much of the world’swealth–the petroleum economy.

Oil provides about 40 percent of the energy Americans consumeand 97 percent of the country’s transportation fuels, according to theU.S. Department of Energy. It’s impossible to understate the impor-tance of oil in the United Kingdom, which uses 1.7 million barrelsa day throughout its economy, or in Australia, which consumes880,000 barrels a day. U.S. neighbors Canada and Mexico use 2.33million barrels a day and 2.04 million barrels a day, respectively.The United States consumed an average of about 20.4 million bar-rels of oil per day during the first ten months of 2004, up from 20.0million in 2003. Of this, motor gasoline consumption was 9.0 mil-lion barrels a day or 44 percent of the total. Petroleum demand

Page 12: CO NNEC TING TO INDUSTRY Journey Crude

in 2005 is projected to grow by just1.4 percent (280,000 barrels per day),to an average 20.7 million barrels perday, in response to the combinedeffects of somewhat slower economicgrowth and relatively high crude oiland product prices.

These statistics may come as no sur-prise. But what most people don’t havea handle on is the process that takesthe fossil remains of one-celled prehis-toric sea plants and animals and trans-forms them into a dizzying array ofproducts–not just gasoline and jet anddiesel fuel, but plastic beverage con-tainers, mascara, heart valves, floorpolish and even bubble gum.

So how do oil companies find petro-leum? How is crude oil processed intousable products? And how does theproduct with the highest demand–gaso-line–get to the pump? Let’s take thejourney between the derrick and thegas station.

P R O S P E C T I N G F O R O I LFinding oil is the work of geologists.There are a number of ways oil compa-nies search for new oil fields. A represen-tative of Chevron Corporation explainsthat prospectors look for a “convergenceof geologic elements.” Some of the ele-ments, he explains, include:

“Source rock to generate hydrocar-bons, a porous reservoir rock to holdthem, and a structural trap to preventfluids and gas from leaking away. Trapstend to exist in predictable places–forexample, along faults and folds causedby movement of the Earth’s crust ornear subsurface salt domes.”

Geologists have a number of high-tech tools to aid their search for under-ground oil. Satellite imaging aids inthe analysis of surface rock.Magnetometers and gravity meters candetect subtle changes in the Earth’smagnetic and gravitational fields, anindication that oil may be present.And seismic surveys, performed bysending shock waves underground and

measuring the waves reflected back tothe surface, can help draw a picture ofthe terrain below the surface.

Despite all these tools, the only wayto confirm the existence of oil belowground is to drill. “The average U.S.wildcat well (an exploratory well drilleda mile or more from existing production)has a one in 10 chance of striking hydro-carbons,” according to Chevron.

P U M P I T U POil rigs are structures containing theequipment needed to drill for oil. Rigsinclude the derrick, the tall structurethat holds the drilling apparatus; therotating equipment, at the end ofwhich is the drill bit, which cutsdeeper into rock; an engine to run therotating equipment; a circulation sys-tem that pumps drilling mud to lubri-cate and cool the drill bit and thesteel pipes attached to the drill bit;and casing, a concrete pipe that linesthe drill hole, keeps the hole fromcollapsing and allows the drilling mudto circulate.

To prevent blowout–an uncontrolledgush of oil or gas to the surface–high-pressure valves are installed to seal thedrill lines. The valves can relieve pres-sure when necessary.

Once the well has been drilled, theoil is caused to flow by dissolving andfracturing the rock at the bottom of thewell. The substance used to dissolve therock varies, depending on the type ofrock. Once the oil is flowing, the rig isremoved and replaced by pumpingequipment which will remove the oil.

The oil pump is placed at the wellhead. The pump is run by an electricmotor that forces the pump up anddown, creating a suction in the wellthat draws the oil up.

R E F I N I N GOnce crude oil has been pumped, thejob changes from one of geology tochemistry. Crude oil consists of differ-ent kinds of hydrocarbons – sometimes

in the hundreds – each with its ownmolecular structure of carbon andhydrogen atoms. The work of an oilrefinery is to break the crude oil downinto its different parts and then recon-figure them to create usable products.

The refining process has three steps:separation, conversion and treatment.

•Separation takes crude oil and breaksit into components, called “frac-tions,” based on the component’sweight and boiling point. Oil ispiped through hot furnaces, wherelighter components rise to the topand heavier ones sink to the bottom.

12 BOSS 4 S U M M E R 2 0 0 5

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S U M M E R 2 0 0 5 4 BOSS 13

Before the development of advanced

recovery procedures, it was common

to leave 90 percent of the available oil

in the reservoir due to the inability to

bring it to the surface. However,

advanced technology now enables

producers to bring 60 percent of the

available resources to the surface.

There are three recovery methods

used to bring oil to the surface.

• Primary recovery first relies on under-ground pressure to drive fluids to thesurface. When the pressure falls, artifi-cial technology is used. This can includeusing pumps, or pumping units. Primaryrecovery often tops only 10 percent ofthe oil in the deposit.

• Secondary recovery uses water to bringmore oil to the surface. With thisapproach, water is injected into the oil-bearing formation. This maintainsunderground pressure and pushes stillmore oil towards the producing wells.This can bring an additional 20 percentof oil in place to the surface.

• The third step is to utilize enhancedrecovery techniques to mobilize theremaining oil. There are three commonapproaches: 1.) thermal recovery, whichentails injecting steam into the forma-tion; 2.) gas injection, which utilizesgases to lower the viscosity of oil andincrease flow; and 3.) chemical flooding,which involves mixing dense, water sol-uble polymers with water and injectingthe mixture into the field. These tech-niques are used to bring as much as 60percent of the reserve to the surface.

Reprinted with permission from the Oklahoma

Energy Resources Board, www.oerb.com.

RECOVERY METHODS

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Gasoline is among the lightercomponents, with a boiling range of104 to 401 degrees Fahrenheitdepending on the many compoundsfound in the gasoline. Such lightfractions rise to the top of distilla-tion towers as vapor and, once sepa-rated from the other fractions, con-dense back to liquids.

•Conversion essentially splits mole-cules to create higher-value prod-ucts. “The most widely used con-version method is called crackingbecause it uses heat and pressure to‘crack’ heavy hydrocarbon mole-cules into lighter ones,” accordingto Chevron. “A cracking unit con-

sists of one or more tall, thick-walled, bullet-shaped reactors and anetwork of furnaces, heat exchang-ers and other vessels.”

When the goal is to create gaso-line, the process is called fluid cat-alytic cracking, or “cat cracking.” Itconverts heavier fractions into small-er gasoline molecules using heat ofabout 1,000 degrees Fahrenheit, lowpressure and a powdered catalyst–asubstance that accelerates chemicalreactions, according to Chevron.

•During treatment, hydrocarbon mole-cules are combined with other chemi-cals, known as additives, to form afinished product. When that product

is gasoline, considerations includeoctane and vapor pressure ratings.

T R A N S P O R T I N G According to a report by Dr. Jean-PaulRodrigue, professor at the Université deMontréal, “each year, about 1.9 billiontons of petroleum are shipped by mar-itime transportation, which is roughly62 percent of all the petroleum pro-duced. The remaining 38 percent, istransported either using pipelines, trainsor trucks. Most of the petroleum followsa set of maritime routes between regionswhere it is being extracted and regionswhere it is being refined and consumed.

14 BOSS 4 S U M M E R 2 0 0 5

Three Sands Oil Field, Tonkawa, OK 1921

Page 15: CO NNEC TING TO INDUSTRY Journey Crude

About half the petroleum shipped isloaded in the Middle East and shippedto Japan, the United States and Europe.Tankers bound for Japan use the Straitof Malacca while tankers bound forEurope and the United States willeither use the Suez Canal or the Capeof Good Hope, pending the tanker’s sizeand the destination.”

“The world tanker fleet capacity(excluding tankers owned or charteredon long-term basis for military use bygovernments) was about 280 milliondeadweight tons in 1996. There areroughly 4,000 tankers available on theinternational oil transportation market.Transportation costs thus account forabout 5 to 10% of the added value ofoil,” reports Rodrique.

S H I P P I N GIt is hard to understate the size andcapacity of a typical vessel that trans-ports oil. The world’s largest tanker,Jahre Viking, is 1,504 feet long and 226feet wide. It is so long that if the EmpireState Building could be laid along itsdeck, the ship would have 253 feet ofdeck space to spare. The Jahre Vikingcan carry 4.1 million barrels of crudeoil–about 172 million gallons.

The next time you’re filling up thetank, you might consider the incredi-ble journey – of geologists, chemistsand tanker pilots – that makes yourjourney possible. 4

S U M M E R 2 0 0 5 4 BOSS 15

PlatformAn immobile structure that rests on the sea floor.Built of concrete or steel, platforms can be usedas permanent pumping sites and often are muchlarger than other types of drilling rigs.

Semi-submersibleA floating unit containing pontoons that, whenfilled with seawater, submerge to a predeterminedlevel and cause the unit to sit low in the water.Much of the structure sits underwater. Anchorshold the unit in place until it is ready to be movedto the next drilling site.

Jack upA mobile unit that sends legs to the seabed, rais-ing the rig out of the water.

Drill ship These units can sail to a drilling location undertheir own power and then begin drilling.

OIL AND WATER: OFFSHORE DRILLINGFinding oil beneath the sea is more difficult than prospecting on land,

but requires the same analysis of seismic survey data and exploratory

drilling. Likewise, offshore drilling operates much the same as drilling on

land, but with rigs adapted to float or rest on the sea floor. There are

several types of rigs:

Once oil is discovered, the drilling rig is generally replaced by a platform which is

assembled at the drilling site. Depending on the area to be drilled, the depth of

the water and distance from shore, the platform will vary in size, shape and type.

The platforms are made of steel that house all the processing equipment and

are fixed to the sea bed. In addition, the platforms need to accommodate up to

80 workers who typically work a 12-hour day, one week on and one week off.

Concrete tanks hold oil pumped from the offshore well. The world’s biggest plat-

forms are bigger than a football field and rise above the water as high as a 25-

story building.

Once retrieved, the crude oil is transported to land through deepwater pipes

or by worldwide tank transfers.

PHOTOS (THIS PAGE) COURTESY OF CONOCO/PHILLIPS AND DEREK MACKAY (JACK UP PHOTO)

Dixon Valve & CouplingCompany offers the followingproducts for the oil industry:

• Rotary Hose Fittings• Boss Couplings• Holedall Fittings• King Combination Nipples• Air King Couplings• Suction Hose Couplings • Hose Clamps• Valves• Hydraulic Couplings • Dry Disconnect Couplings• Gauges

Page 16: CO NNEC TING TO INDUSTRY Journey Crude

FACTS & FIGURES

16 BOSS 4 S P R I N G 2 0 0 5

How many gallons are in a barrel of crude oil? 42

How much crude oil does it take to make a gallonof gasoline? Some refineries can turn more than half of every barrel ofcrude oil into gasoline—more than 21 gallons. Seventyyears ago only 11 gallons of gasoline could be produced.(Source: Chevron)

What does crude oil look like? Crude oils vary in color, from clear to tar-black, and in vis-cosity, from water to almost solid.(San Joaquin Geological Society)

Countries with the Highest Oil Reserves as of January 1, 2005 (Billion Barrels)

Source: PennWell Corporation, Oil & Gas Journal, Vol 102, No. 47 (December 20, 2004).

A 37.5 million gallon vessel carrying refined oil…• Is enough oil for 300 jet flights from London to Houston.• Allows 200,000 cars to drive from New York to

Los Angeles and back.

1 - United States: EIA, Petroleum Supply Monthly, March 2005. Other OECD Countries:IEA, Monthly Oil Data Service, April 12, 2005.2 - Other European countries consists of Austria, Belgium, Czech Republic, Denmark,Finland, Greece, Hungary, Iceland, Luxembourg, the Netherlands, Norway, PolandPortugal, Slovakia, Spain, Sweden, Switzerland and Turkey.3 - United States: Energy Information Administration (EIA), Petroleum Supply Monthly,March 2005. Other OECD Countries: International Energy Agency (IEA), Monthly Oil DataService, April 12, 2005.4 - PennWell Corporation, Oil & Gas Journal, Vol 102, No. 47 (December 20, 2004)

Oil Facts

20.25

2.04

2.33

1.05

2.93

2.01

2.43

1.76

1.70

7.22

11.75

-1.63

-1.05

1.491

6.05

1.89

2.55

1.71

-0.442

3.70

21.891

14.6

178.8

N/A

.059

.146

N/A

.622

4.487

9.34

Demand1

millions of barrels per day

billions of barrels

Total netimports3

Oil inReserve4

United States

Mexico

Canada

Australia & New Zealand

Japan

France

Germany

Italy

United Kingdom

European Countries2

Country

(2004average)

(2004average)

Saudi Arabia 261.90Canada 178.80Iran 125.80Iraq 115.00Kuwait 101.50United Arab Emirates 97.80Venezuela 77.23Russia 60.00Libya 39.00Nigeria 35.26

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S U M M E R 2 0 0 5 4 BOSS 17

You may have heard the story about twofellows hard at work alongside a road. Onediligently dug holes while the other waiteda short interval and then filled them up.

It all seemed rather foolish, and even-tually the workers were confronted by asupervisor who demanded an explanation.The fellow who dug the holes asked whatthe problem was. He said he had beendoing the same job for more than tenyears. His cohort quickly chimed in that

he had been filling the holes for the same period. Upon further questioning, they admitted it made more sense

in the past when a third fellow worked with them. His job hadbeen to put a new tree into the hole. But when he retired hewas never replaced, so the two just kept on working as before.

“Why didn’t you tell somebody?” the supervisor sputtered.“My gosh, you signed Phil’s retirement letter. We figuredyou knew.”

The kinds of unproductive, inefficient and even counter-productive practices that go on in most workplaces defylogic and reveal a great deal about character. You see, theethical principle of responsibility includes a moral duty toproduce and demand quality. Yet basically good people invirtually every workplace regularly engage in or witnesssome process or practice that is unhelpful, wasteful or evenharmful to the ultimate goals of the organization.

While management is ultimately to blame, people of char-acter shouldn’t passively demean the value of their work bybecoming part of anything second-rate or stupid. It may taketact and timing, maybe even some courage, but it’s our duty tobe a force for excellence. The benefit is that the quality of ourlives improves dramatically when we take pride in our work. 4

Reprinted with permission from You Don’t Have To Be SickTo Get Better with permission of the Josephson Institute ofEthics. ©2004 www.josephsoninstitute.org

Filling HolesBY MICHAEL JOSEPHSON

LEADERSHIP

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WE STOCK A LOT, SO YOU DON’T HAVE TO.

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Henry J. Kaiser

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enry J. Kaiser was an opportunist in the

very best sense of the word, a natural

entrepreneur with a persuasive manner

and an indomitable spirit. His flair for business

would manifest itself early, and would carry him

to become a multimillionaire in construction

and shipbuilding.

Born in upstate New York in 1882, Kaiser’s

German immigrant parents instilled in him the

values of discipline and hard work. Following

elementary school, he worked as a

store clerk in Utica, New York,

where he developed a keen interest in

photography. He was soon a traveling

photographer, selling his photos and taking

commissioned portraits.

y J. KaiserHis Legend and His Cars

by Bill Vance

H

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One of his calls, a camera store inLake Placid, New York, impressedyoung Kaiser so much that he wantedto join the business. Henry convincedthe reluctant owner to let him workfor nothing, confidently predictingthat he would double the shop’s busi-ness within a year. Henry did evenbetter; he tripled it and had soonbought the business and branched outto other shops.

Although this was a successful enter-prise, the ambitious Henry soon tiredof it. At age 26, he brashly uprootedhis young wife, Bess, and their threesons and headed west. He had noprospects, but he had the confidence ofyouth and was sure that, with hisinnate abilities, he would succeed.

In Spokane, Washington, Kaiser dis-covered a hardware store that seemedperfectly suited to his sales skills. Therewere no vacancies, but Henry con-vinced the owner to let him try sellinga large stock of tarnished silverwarelying in the stockroom.

Henry organized a group of youngwomen to polish the silver— soon, theentire stock was sold. He made enoughto pay his crew and earn a little profitfor himself, and the happy store ownergave him a job.

The hardware store brought Henryinto contact with local building con-tractors, and his interest in construc-tion soon led to jobs in the sand, grav-el and concrete business. By 1914, hewas able to establish his own pavingfirm, the Henry J. Kaiser Company.

Henry and his small, core staffmoved from site to site working out ofa tent. One of his men went aheadscouting out their next job. Henry tookhis family from one road constructionlocation to another, often living intheir car. They hired local labor asrequired and established a reputationfor quality work that was completed on

time. Among his early jobs was build-ing the first piece of paved road inVancouver, British Columbia.

Although times were difficult andinflation was high during World War I,Kaiser and his loyal staff managed toexpand the business. It didn’t take longfor the Henry J. Kaiser Company tobecome well-known up and down theWest Coast. Despite these difficulttimes, Kaiser persevered and wasalways positive. He would often tell hisstaff, “Problems are merely opportuni-ties in work clothes.”

In 1921, Kaiser’s company got a bigbreak when it won the contract tobuild a 30-mile highway from Reddingto Red Bluff, California – a job bigenough to cause Kaiser to move hisheadquarters down from Washingtonto California. Once the constructionwas underway, Kaiser’s crew demon-strated that, by the innovative use ofequipment, it could build a mile ofroad a week, double the normal rate.This added to Kaiser’s fame, and by1927, the company had received a con-tract to build 200 miles of roads inCuba. In spite of primitive conditionsand the logistical nightmare of assem-bling staff and materials in a foreignland, Kaiser completed that job a yearahead of schedule.

But all of this was preliminary towhat was to come. The U.S. Bureau ofReclamation was planning a series ofhuge dams in the West. The first, theHoover Dam, was considered too largefor one company to handle, so a newentity called Six Companies, Inc. wasestablished. Kaiser became part of theSix Companies conglomerate, whichcompleted the Hoover Dam in fiveyears, more than two years ahead of

schedule. Henry J. Kaiser was becom-ing a legend for his ability to organizeand motivate staff into a cooperativeand efficient crew.

Kaiser participated in more mam-moth projects, such as the GrandCoulee and Bonneville Dams on theColumbia River, both of which hesupervised; the San Francisco-OaklandBay Bridge and the excavation of a setof locks for the Panama Canal.

In the late 1930s, with trouble brew-ing in Europe and war seeminginevitable, the U.S. government want-ed to expand its woeful merchantmarine fleet, most of which dated backto World War I.

But established shipbuilders werealready producing at capacity, so into

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Welders fixing ribs of an innerfloorsection of a Liberty class ship in placebefore adding steel sheathing at shipbuilder Henry J. Kaiser's shipyard.

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the fray stepped the Six Companies.They had more confidence than expe-rience, but were determined to learnshipbuilding. Their first two shipyards,in Richmond, California, and Portland,Oregon, were placed under Kaiser’smanagement. Typical of his style, thekeels of ships were being laid beforethe buildings were completed.

The Japanese attack on PearlHarbor, Hawaii, in December 1941,brought the U.S. into World War IIand intensified the need for more seapower. The U.S. government orderedthe construction of a fleet of Libertyships, a cargo vessel of standardizeddesign. This led to the establishment ofseven more shipyards—Kaiser ownedthree of them.

The first Liberty ship took 226 daysto produce. But by such methods asprefabricating sections and other inno-vative time-saving measures, its pro-duction time would fall to about 27days. The Kaiser company’s around-the-clock workers even completed onein the incredible time of just four days,15 hours and 26 minutes. By war’s end,Kaiser’s shipyards had produced 821Liberty ships and more than 600 othersof various types, from small aircraft car-riers to large tankers.

Henry Kaiser knew that peacewould bring an end to his shipbuild-ing, but he also knew there would be ahuge demand for new cars. The autoindustry had ceased civilian produc-tion in February 1942 and would not

be able to resume until the fall of1945. With no new cars available formore than 3 1/2-years, the astuteKaiser decided it was a sellers’ markettoo good to ignore.

Kaiser had nurtured a dream ofbuilding a small, affordable car andhad even established an experimentalshop in Emeryville, California, to studymany of the world’s production cars.But since Kaiser really didn’t knowmuch about the car business, he wiselyteamed up with someone who did:Joseph W. Frazer.

Frazer had grown up in the automo-bile industry. He was born inNashville, Tennessee, in 1892, andafter a stint at Yale, began working as amechanic with Packard, soon moving

Henry J. Kaiser was

becoming a legend

for his ability to

organize and

motivate staff into

a cooperative and

efficient crew.

S U M M E R 2 0 0 5 4 BOSS 23

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24 BOSS 4 S U M M E R 2 0 0 5

into sales. He joined General Motorsin 1919 and helped found GM’s newfinance company, General MotorsAcceptance Corporation.

Finding GM too big, Frazer went toMaxwell Motors in 1923, which WalterChrysler turned into the ChryslerCorporation in 1925. By 1927, Joe wasChrysler’s general sales manager. Hestayed with Chrysler until 1939 thendeparted to become president and gener-al manager of Willys-Overland (W-O),which would prosper mightily by pro-ducing the famous World War II Jeep.

After differences with W-O over itspost-war car plans, Joe joined car man-ufacturer Graham-Paige Motors (G-P)as chairman and president in 1944. G-P had not built a car since 1940, butit was prospering on war contracts.

Henry Kaiser, the construction mag-nate, met Joe Frazer, the ace car sales-

man, in San Francisco in July 1945.They hit it off immediately, and beforemonth’s end, a new automobile compa-ny, Kaiser-Frazer Corporation (K-F), hadbeen registered in the state of Nevada.Kaiser brought his drive, enthusiasmand money. Joe came to the table withhis interest in Graham-Paige and hisvast auto industry knowledge. Kaiserbecame K-F’s chairman, and Frazer waspresident and general manager.

K-F leased a huge war surplus ex-bomber plant in Willow Run,Michigan, and began converting it intoan automobile plant. Howard “Dutch”Darrin, an experienced automobilestylist, was given the job of designingthe new car. Although there were earlyexperiments with front-wheel driveand torsion bars, the car that emergedwas a conventional, front-engine, rear-drive, body-on-frame sedan. The use of

a 100-horsepower, Continental indus-trial side-valve six saved the toolingcosts of a new engine.

The styling was somewhat conserva-tive, a “pontoon” shape featuring afender line that ran level from front toback and a 123-1/2-inch wheelbasethat provided ample interior space forsix passengers. There were twomechanically identical models, Kaiserand Frazer, with Kaiser being the popu-lar priced entry. The fancier, luxurioustrim of the Frazer was aimed at moreupscale buyers.

The new cars were shown at NewYork’s Waldorf Astoria hotel in January1946 as 1947 models. By the time theshow ended, more than 9,000 ordershad been received. The first productioncar rolled off the Willow Run line inJune 1946, less than a year after the cor-poration had been formed. In spite of

The first production

car rolled off the

Willow Run line in

June 1946, less than

a year after the

corporation had

been formed.

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S U M M E R 2 0 0 5 4 BOSS 25

having to build a dealer network fromscratch, almost 150,000 K-F cars wereproduced in 1947. This number rose to181,000 in 1948, which would prove tobe its highest recorded sales year.

But, by 1949, the post-war car short-age was disappearing and the estab-lished companies had their new mod-els. K-F marked time until 1951, thenfought back valiantly with the all-newand very attractive Darrin-styled KaiserManhattan. In spite of its handsomenew car, the novelty of the industry’sfirst hatchback, the introduction of thecompact Henry J and the attractivefiberglass-bodied Kaiser-Darrin sportsmodel, K-F sales continued to decline.

In an attempt to stimulate interest,

K-F purchased Willys-Overland in1953, bringing the Willys Aero line ofcars, along with the renowned Jeeputility vehicle, into its stable. WillowRun was relinquished and all produc-tion was concentrated in the W-Oplant in Toledo.

Since K-F couldn’t afford to producea V-8 engine to compete with prolifer-ating V-8s from others, they super-charged the old six for 1954, raisinghorsepower from 118 to 140. But it stilllacked the smoothness of an eight.

It all became too much, and whenless than 8,000 Kaiser and Willys carswere produced in 1955, K-F ceasedautomobile production in the U.S.The operation was moved to

Argentina, where it would last forseven more years.

Frazer’s influence had begun to fadein 1950 and he severed all connectionsin 1952. Kaiser went back into the con-struction business, building hotels andapartment complexes in Hawaii. Alwaysconcerned about his employees’ health,in the 1960s, he established 19 hospitalsin the western U.S., a lasting legacynow known as the Kaiser Foundation.

Henry J. Kaiser had been a successin everything he had tackled, every-thing, that is, except the automobilebusiness. It is ironic that the one thingfor which he is best remembered is theonly endeavor that defeated him. Hedied in 1967 at the age of 85. 4

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survey released by travel Web siteLonely Planet ranked Australia as thenumber one destination global inde-pendent travelers would like to visitnext as well as the top place they have

previously visited. According to Tourism Australia,4.4 million travelers visited the country in 2003.

Travelers flock to Australia for its endless sun-drenched beaches, breathtaking sunsets and tropi-cal rainforests with beautiful wildlife. Scatteredalong its coasts, Australian cities are destinations intheir own right. Each offers the visitor a new experi-ence. Some are known for their outdoor lifestyle,others for fabulous dining, fashion or art. Each hasits own sense of history and charm.

Sunny, sexy and sophisticated, Sydney is theshining star of the Southern Hemisphere. The stun-ning Sydney Opera House and Sydney HarbourBridge are the pride and joy, but there’s muchmore. Visitors to Sydney frequent the newestrestaurant, cafe or bar, the grooviest new prome-nade, or the smartest, nearest beach. There’s anenergy and boldness in Sydney that is irrepressibleand uplifting. It’s urbane, but fresh and curious.

Australia may be bestknown as the landdown under, but it is rich in naturalsplendor and has beenvalued for centuries.

AwesomeAustralia

A

Story By Linda Esterson

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28 BOSS 4 S U M M E R 2 0 0 5

With its wonderful climate and care-free lifestyle, Sydney has inspired somestunning young designers who havetaken the multilayered cultural influ-ences and translated them into fash-ion. Sydney is a find for “shopaholics.”

It is said that Sydney never sleeps.In daylight hours the city buzzes withlife and it doesn’t close down whenworkers leave their offices. Late-nightmeals or a final coffee are not prob-lematic. Be seen on trendy OxfordStreet from Darlinghurst to Paddingtonor try the Woolloomooloo FingerWharf, Surry Hills, the Quay or theRocks. So many choices make it hardto decide what to do.

Sydney is also an architecturaldream. Many homes overlook the

water or nestle in the bush and aresuspended over cliffs or dug back intothe scenery. Sydney’s sparkling har-bour is the jewel in the city’s crown.It’s flanked by golden beaches andbushland and is bisected by one ofthe most famous bridges in the world.Islands sprinkle its waters, and it’scrisscrossed by all manner of craft,from water taxis and yachts to tourboats and ferries.

Melbourne, Victoria’s capital andcultural hub, is known for the goodthings in life—fashion, food andsport. This is a city of style, architec-ture, trams and art. Canberra, thenation’s capital, is home to many ofAustralia’s most important publicbuildings and art works.

Melbourne has mastered the art ofmixing the old with the new.Gracious older buildings sit side byside dynamic new architecture.Melbourne’s rich history is exploredalong the Golden Heritage Mile.Melbourne is the center of architec-tural adventure in Australia and thisis evident in the brave new designsappearing in some of its newer devel-opments. The distinctive and striking

(left) Sydney’s sparkling harbor is one of the manyjewels of Australia. (below) Koalas happily residein Australia’s many forests. (right) A cultural hubof Australia, Melbourne, is known for its style andsophistication in architecture, food and fashion.

In 1788, the first settlers set foot onAustralian soil as Captain Arthur Phillip,Australia’s first governor, led an 11-shipfleet carrying 736 convicts and theirguards into Port Jackson, now known asSydney Harbour. Convicts holding sen-tences of varying severity, some as moder-ate as stealing a loaf of bread, were sentaway to work off their time. By the end ofthe transport in 1852, 160,000 convictshad been brought to Australia. Many whocompleted their sentences chose to stay

in Australia as farmers and laborers. Australia attracted free settlers beginning in 1793 with the

promise of cheap land and convict labor. However, after thediscovery of gold and copper in 1850, Australian settlementoccurred in greater numbers.

Migrants from Europe, China and America all came to seektheir fortunes in the gold fields. Few were successful, and manysettled and endeavored as shopkeepers, farmers and laborers.The gold rush affected the economic and population levels ofAustralia, as well as the development of Australian nationalism.As the cities grew and road and train lines were established,Australia declared itself a federation on January 1, 1901.

Today, nearly 200 different nationalities call Australiahome. Much of the post-war immigrants hailed from Britainand European countries and later, from South East Asia andNew Zealand.

First Settlers

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S U M M E R 2 0 0 5 4 BOSS 29

design of Federation Square is one ofthe most ambitious and complex proj-ects ever undertaken in Australia. Afusion of arts and events, leisure, hos-pitality and promenading, it haschanged the face of Melbourne.

Sports-mad Melbourne is home toworld-famous sporting events such as

the Melbourne Cup, the AustralianOpen Tennis and the QantasAustralia Grand Prix. As for thebiggest names from the music world,as well as major theatrical produc-tions, it’s most likely they’ll be seenin Melbourne first.

And food is aplenty in Melbourne.

The influence of decades of immigra-tion from all over the world has madeMelbourne a paradise for those wholove food and wine. Whole streets arededicated to food, whether it beIndian, Spanish, Italian, Japanese,Chinese, Greek, or a host of otherstyles, and the world-class wines can’tbe missed.

Across the southern tip of Victoria,well south of Melbourne, is the GreatOcean Road, which winds arounddramatic cliffs with the surf of theSouthern Ocean swelling below.Victoria’s Great Ocean Road passesbeaches and coves, quiet seaside vil-lages and spots to enjoy brilliant sunand surf. Some of the world’s bestbeaches are found along the GreatOcean Road. From protected familycoves to pounding surf, there is astretch of coast to suit everyone.

On the west coast, Perth is asophisticated, scenic city with plentyto do. A variety of tours are providedby motorized tram or courtesy bus.One of Perth’s most popular icons isthe 400 hectares of natural bush thatform the spectacular Kings Park inthe city’s center.

Perth is also the home of theworld’s oldest operating mint, numer-ous museums and art galleries, his-

Natural Resources

Australia is abundant in naturalresources and thus considered thejewel of the Asia-Pacific. Its lands areplentiful with such treasures as baux-ite, coal, iron-ore, copper, tin, silver,uranium, nickel and tungsten, as wellas mineral sands, lead, zinc, diamonds,natural gas and petroleum.

One of the world’s largest producersof minerals and metals, Australia mines more than 60 minerals and ores in addi-tion to light crude oil and liquefied natural gas, and its large coal deposits enablethe inexpensive production of electricity.

Australia is known as a chief producer of precious and semi-precious stones. Infact, the country mines 95 percent of the world’s rare opals and 99 percent ofblack opals. The Argyle Diamond Mine in Northwestern Australia, one of theworld’s largest producers of natural diamonds, yields 25 to 30 million carats annu-ally. It is renowned for its champagne diamonds and highly prized pink diamonds.In addition, Australia produces 60 percent of the world’s South Sea pearls.

Gold is also mined in large quantities in Australia. The largest single mass ofgold found in the world was the Holterman Nugget at Hill End, New South Wales,in 1872. It weighed 285.8 kilograms with a gold content of 99.8 kilograms.

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toric character buildings, a five-starresort and casino and a great varietyof shopping. There are also world-class golf courses, countless outdooractivities and water sports on theSwan River, and over 80 kilometersof white sandy beaches, most withworld-class beachside restaurants. Apopular beach is Cottesloe, a prettycrescent of sand with safe swimmingand a small surf break. Another loca-tion popular with locals and visitors isScarborough, which has white sandstretching for miles.

The capital of South Australia,Adelaide, nestles between sea andhills. It is a graceful city of widestreets, elegant buildings and park-land. Cultural pursuits, good food andwine are high on the agenda.

Adelaide is compact and easy towalk around. It is known for itsrefinement and has a charm and gracethat shows in sophisticated winingand dining, and beautiful architecturethat has been well-preserved.

Adelaide’s famous central market isa great way to start the day, beforeheading for markets in the AdelaideHills to discover some of the region’sfresh produce. Nearly 50 nationalities

showcase their specialties in whatmust be one of the most multiculturalmeeting places in the country.Fishmongers, greengrocers, fruit grow-ers and butchers compete with abrigade of buskers. Galleries at Metaland Stone specialize in silver andjewels. The JamFactory and the GrayStreet Workshop artists and craftspeo-ple produce an eclectic range of goodsin leather, jewels, metal, glasswareand all sorts of functional pieces.

In Australia’s Northern Territorysits Darwin, a vibrant, tropical capitalcity perched on a deepwater port,offering a blend of cosmopolitan andcity pleasures. Darwin is set upon oneof Australia’s prettiest harbors, open-ing out onto the brilliant, jewel-likewaters of the Arafura Sea. Thisvibrant, tropical city has a free-spirit-ed, open-air lifestyle blessed with arange of waterfront delights. Beaches,bays and waterholes are there aplentyto explore and enjoy.

Darwin is closer to Asia than it is toSydney so it has the vigor expected ofa city that is home to 50 ethnic groups.This means the food is great! Not onlydo the finest chefs create masterpieceswith great seafood, crocodile, buffalo,

30 BOSS 4 S U M M E R 2 0 0 5

Australia at a Glance• Australia is the sixth largest

country in the world. Its areatotals about the same size as thecontinental United States and isapproximately 50 percent largerthan Europe. Yet, Australia hasthe lowest population density inthe world—only two people persquare kilometer.

• Australia lays claim to more than7,000 beaches—more than anyother nation.

• About 95 percent of the world’sopals and 99 percent of blackopals are produced in Australia.

• The kangaroo is unique toAustralia and one of its most eas-ily recognizable mammals. Thereare more kangaroos in Australianow than when the country wasfirst settled, with numbers esti-mated at 40 million.

• Australia’s 140 million sheep pro-duce more than 70 percent of theworld’s wool.

• With 24 million head of cattle,Australia is the world’s largestexporter of beef.

• Australia supports at least25,000 species of plants, whileEurope only supports 17,500.

Excerpted with permission fromTourism Research Australia –www.australia.com — 2005.

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S U M M E R 2 0 0 5 4 BOSS 31

camel or emu, there is a vast variety ofcuisine offered with Asian andEuropean influences. Diners neverwant for a “coldie,” (cold beer) inDarwin, but they also enjoy first-classrestaurants serving the best in finewines. Darwin is buzzing with a livelyselection of entertainment: nightclubs,a casino, theatres, restaurants and itsmulticultural markets are internation-ally famous.

More than 20 national parks andreserves surround Darwin; some are

famous, like Kakadu National Park,and some are hidden treasures, just asrich in dramatic beauty, wildlife andAboriginal culture.

Friendly FareIn Australia, the locals are friendlyand accommodating, never feeling“put out” by a tourist request andalways willing to lend a hand.Cabbies refuse to accept tips, alwayswanting to help every passengerexperience the beauty of Australia.

The citizens are proud of theircountry and willingly share all theyknow about it. They work hard toaccommodate tourists, especiallyfamilies, and show a lot of pride intheir manners and the cleanlinesseverywhere – restaurants, touristspots and along the waterways.

Australia has a lot to offer, with itspicturesque mountains, welcomingbeaches and bustling cities. It’s agreat place to go to get a little bit ofeverything. 4

(left) Breathtaking Ayers Rock is the world's largest monolith rising 318m above the desertfloor with a circumference of 8 km. It is considered once of the great wonders of the world.(below top) Driving the Great Coast Road offers magnificent views of the warm ocean watersand seaside cliffs. (right) Snorkelers in one of the barrier reefs swim with the fish and viewthe spectacular water life.

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Run for the hills. For it, you’ll sim-ply need a relatively steep hill andsome sturdy shoes with traction. Startwith a five-minute light jog on flatterrain. From a point at the bottom ofthe hill, sprint full-force straight tothe top, then either walk or jog light-ly to the bottom. Continue with fourto nine more sprints, depending onyour fitness level. Finish with a slowjog on a flat surface for five minutesto cool down.

For a quick, 20-minute cardio ses-sion that will hit your whole body, usethis suggestion from Dave Harris,CSCS, a strength and fitness consult-ant in Toronto, Canada. Warm-up forfive minutes by biking or light jogging.Then jump on the ergometer or rower,row for one minute as hard and as fastas you possibly can. Then rest for twominutes by rowing real easy and slow.Do this six times.

Wind sprints may sound like abreeze but this high intensity activitywill raise your heart rate and makeyour body use those fat stores in aminimal amount of time. Try the fol-lowing drill from Harris: Warm up forfive minutes by biking or light jog-ging. Sprint for 50 seconds or about300 meters. Then walk back to yourstarting place. This active rest periodshould last no longer than 120 sec-onds. Repeat six times.

Take the stairs! Use this trio ofapproaches to make this challengingactivity a bit more work. First, walk orrun up the stairs one step at a time,then walk down. Second, walk or runup the stairs two steps at a time (hittingevery other one). Again walk down,using the time as your recovery period.Third, do stair stakes, jumping side toside from one step to the next. To dothis you’ll jump to your right, landingon your right foot, left foot slightlybehind you. Then jump to your left and

32 BOSS 4 S U M M E R 2 0 0 5

HEALTH & FITNESS

Ways to Burn 500 CaloriesIgnite your body’s fat-burning

potential with these heart-pumping workouts.

BY CAREY ROSSI

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onto the next step, landing on your leftfoot. Again, walk down. Continuerepeating the sequence for 30 minutes.

Race against yourself. After aleisurely 10-minute bike ride, pick astarting point that you’ll remember.Now choose a time in your head: 20minutes if you’re a relative beginner,up to 30 or more if you’re an expertrider. You’re going to ride for thatamount of time through any courseyou wish. See how far you can get inyour chosen time, stop and rest two tofive minutes, then turn around, resetthe clock and retrace your route. Try togo further in the same amount of time.Once you finish, take 10 minutes toreturn to your original starting place ata slower cool-down pace.

Step To It. You’ll want to visit asports store and buy a pedometer.From the time you get up to the timeyou go to bed, you’ll don the pedome-ter and aim to take at least 10,000

steps throughout the day. This isapproximately five miles. Go out ofyour way to get steps—choose thestairs over the elevator, park the carfurther away in the lot if you go tothe store, take a walk during lunch orafter work. Careful: This particularworkout may be addictive!

Take the treadmill to new heights.Use this workout from eDiets.com’s leadfitness trainer Raphael Calzadilla totake the boredom out of the treadmill:1 Begin with a warm up of five min-

utes at 3.0 miles per hour2 On the sixth minute, increase to 4.0

mph (light jog)3 On the seventh minute, increase to

5.0 mph 4 On the eighth minute, increase to

level 6.5 or 7.0 mph5 For the next two minutes (minutes

nine and ten), return to 3.0 mph6 Repeat steps 2-5 two additional

times, but increase the level of inten-sity one mile per hour on each phase.

Cool down for five minutes at 3.0 mphTotal workout time (including warmup and cool down): 35 minutes.

Here’s one for the “you-can-take-it-with-you” file. For only afew bucks, you can buy an inexpen-sive jump rope and throw it in yourgym bag, briefcase or suitcase.Jumping rope is a major calorie burn-er, too. Jump for 3-5 minutes and restfor 30-60 seconds. Do this for a totalof 20-30 minutes.

Swim, bike ride and run, but who saysthat a triathlon’s line-up is a hard andfast rule? Make up your own this week-end, based on your favorite activities.Rollerblade, bike and shoot hoops. Orperhaps run stairs, jump rope andswim. You can pick either a time peri-od or a distance for each activity. 4

* Calories burned may vary dependingon intensity and fitness level.

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ECONOMICALLY SPEAKING

Like any commodity, the price of oil isprimarily based on a balance betweensupply and demand. For example, oilprices usually rise when supply decreas-es and demand increases. Conversely,oil prices may decline when supplyincreases and demand decreases.

A typical American family uses 25 gallons of gasoline a week. Over thecourse of a year, this family will use1,300 gallons of gasoline (25 gallonsmultiplied by 52 weeks). If the averageprice of gasoline is about $2.00/gallon,this family will have to spend approxi-mately $2600 per year for gasoline.

Price in USD Regular/GallonNetherlands, Amsterdam $6.48Norway, Oslo $6.27Italy, Milan $5.96Belgium, Brussels $5.91Sweden, Stockholm $5.80United Kingdom, London $5.79Germany, Frankfurt $5.57France, Paris $5.54Hungary, Budapest $4.94Croatia, Zagreb $4.81Spain, Madrid $4.55Japan, Tokyo $4.24Australia, Sydney $3.20Brazil, Brasilia $3.12Cuba, Havana $3.03Taiwan, Taipei $2.84Canada, Toronto $2.77Lebanon, Beirut $2.63United States, Chicago $2.49Panama, Panama City $2.19Russia, Moscow $2.10Puerto Rico, San Juan $1.74Saudi Arabia, Riyadh $0.91Kuwait, Kuwait City $0.78Egypt, Cairo $0.65Nigeria, Lagos $0.38Venezuela, Caracas $0.12Source: air-inc.com, collected March 2005.

Higher oil prices will impact con-sumers worldwide in many ways. Forexample, airline tickets may rise whenoil prices increase. Airlines do this topass the cost of increased fuel costs totheir customers. Also, companies thatrely on oil for manufacturing and trans-portation may increase prices.

Driving AlternativeHybrid-electric vehicles (HEVs) com-bine the benefits of gasoline enginesand electric motors and can be config-ured to obtain different objectives,such as improved fuel economy,increased power or additional auxil-iary power for electronic devices andpower tools.

According to www.fueleconomy.gov,a family driving a Honda AccordHybrid will spend approximately $897

annually for gasoline. However, thereport estimates that driving theToyota Prius and the Honda CivicHybrid, consumers will spend closer to$500 annually for gasoline.

There are many U.S. consumers thatspend more each week on coffee oralcoholic beverages. Americans spendthe following on a regular basis:gallon of milk: $2.5920oz. bottle of soda: $1.0016oz. Starbucks coffee: $3.4912oz. beer at a ball game: $6.50

Using 128 fluid oz. per gallon thefollowing are true1 gallon milk = $2.591 gallon soda = $6.401 gallon coffee = $26.171 gallon beer at game = $69.29

The Impact of Oil Prices

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We know how tough it is to do business in a competitive environment. That’swhy at Dixon, a leading manufacturer of hose couplings and accessories since1916, we’ve built an inventory, shipping, and customer service network thatmakes things a lot easier.

You get access to thousands of items in our warehouses located across thecountry. Your order ships the same day virtually 100% of the time. Plus, you get customer service and support from friendly people who know both theproducts and your business. To find out more, call toll-free (800) 355-1991or visit us on the web.Dixon Valve & Coupling Company 800 High Street, Chestertown, MD 21620 USA800-355-1991 • 410-778-2000 • Fax: 410-778-4702©2003 Dixon Valve & Coupling Company

www.dixonvalve.com

WE STOCKA LOT, SO YOUCAN STOCK A

LOT LESS.

With a 99.8% same-day ship rate on orders, our inventory’s right at your fingertips.

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