ANNUAL REPORT - PTAC

ANNUAL REPORT

2016

PTAC TECHNOLOGY

AREAS

PTAC NETWORKS

• Alberta Upstream Petroleum Research Fund• Clean Bitumen Technology Action Plan• Methane Emissions Reduction Network• Phoenix Network• Phoenix Network Working Group• Pipeline Network• Pipeline Technology Action Plan• Remote Sensing Network• Resource Emission Management Technology Action Plan • Support for Small and Medium-sized Enterprises• Technology for Emissions Reductions and Eco-Efficiency• Tight Oil and Gas Innovation Network

ADDITIONAL PTAC TECHNICAL AREAS

• e-Business • Geomatics• Geosciences • Genomics• Health and Safety• Instrumentation/Measurement• Operations• Photonics• Nanotechnologies• Production Engineering• Remote Sensing• Reservoir Engineering• Security• Telecommunications

MANAGE ENVIRONMENTAL IMPACTS

• Air Quality• Alternative Energy• Ecological• Emission Reduction / Eco-Efficiency• Energy Efficiency• Resource Access• Soil and Groundwater• Water• Wellsite Abandonment• Orphan Wells• Methane Detection, Reporting and Reduction Technologies

IMPROVE OIL AND GAS RECOVERY

• CO2 Enhanced Hydrocarbon Recovery• Coalbed Methane, Shale Gas, Tight Gas, Gas Hydrates, and other Unconventional Gas• Conventional Heavy Oil, Cold Heavy Oil Production with Sands• Conventional Oil and Gas Recovery• Development of Arctic Resources• Development of Remote Resources • Enhanced Heavy Oil Recovery• Enhanced Oil and Gas Recovery• Oil Sands and Enhanced Oil Sands Recovery• Emerging Technologies to Recover Oil Sands from Deposits with Existing Zero Recovery• Bitumen Recovery from Carbonate Reservoirs• Tight Oil, Shale Oil, and other Unconventional Oil

REDUCE CAPITAL, OPERATING, AND G&A COSTS

• Automation and Artificial Intelligence• Capital Cost Optimization• Cost Reduction Using Emerging Drilling and Completion Technologies• Cost Reduction Using Surface Facilities• Eco-Efficiency and Energy Efficiency Technologies• Reduce Operating Costs Related to Energy and Chemical Consumption• Technologies to Reduce Waste Energy

IMPROVE VALUE-ADDED PRODUCTS

• Gasification• Hydrocarbon Upgrading• Hydrogen Generation• Integration Petrochemicals, Refining, and Value-Added Opportunities• Pipeline Transportation (Leak Detection, Spill Management, Nanotechnology for Flow Drag Reduction, Use of CO2 as Diluent)• Transportation

2 Petroleum Technology Alliance Canada

Canada’s GHG emissions, particularly methane emissions, are a critical concern for both government and the hydrocarbon energy industry. Significant reduction targets announced in November 2016, and industry stakeholders were faced with the major challenge of meeting these mandated reductions during a time of low commodity prices. However, PTAC’s roster of new and ongoing collaborative projects, programs, and partnerships offer a unique opportunity to work together to tackle the challenge of economically producing cleaner energy in a low-carbon economy.

PTAC facilitated the launch of 50 new projects and project phases in 2016. These new projects, in conjunction with on-going projects from previous years, resulted in more than 97 active R&D projects in 2016. Spanning all four technology areas, focused on improved recovery, reduced costs, mitigated environmental impacts, and bolstering of industry’s social license to operate, these projects addressed such varying issues as detection, reporting and reduction of GHG emissions (particularly methane), improved recovery in heavy oil and oil sands, environmental impact of abandoned pipelines, and the development of better emergency response planning. Directed by multidisciplinary technical steering committees representing industry, government, and academia, these projects identified pertinent industry challenges and leveraged financial resources and technical expertise from multiple private and public sources to solve them. In 2016, this translated to an emphasis on technologies related to the reduction of methane emissions. With the right people working in collaboration, PTAC projects focus on R&D and technology solutions that are both innovative and practical.

The PTAC collaborative model encouraged continued innovation in 2016 through significant financial leveraging,

MESSAGE FROM THE BOARD

MISSIONOur mission is to facilitate innovation, collaborative research and technology development, demonstration and deployment for a responsible Canadian hydrocarbon energy industry.

VISIONOur vision is to help Canada become a global hydrocarbon energy technology leader.

despite low industry activity. For example, government and other agency funding secured for the Phoenix Network resulted in financial leveraging of 1:56 for the producers who participated in the network. PTAC also successfully completed 53 projects that ranged from initiatives run through the Alberta Upstream Petroleum Research Fund program, technical innovations to improve recovery from unconventional sources and oil sands, and targeted technology development for improved eco-efficiency. Overall, PTAC’s roster of 2016 projects reduced costs, improved operational efficiencies, enhanced environmental stewardship, progressed regulatory development, and advanced industry’s social license to operate. PTAC will continue to develop and expand our project activities in 2017, paying particular attention to the evolving picture around methane and GHG emissions.

A significant portion of PTAC’s 2016 projects were facilitated through the Alberta Upstream Petroleum Research Fund (AUPRF). This program conducts peer-reviewed environmental research addressing high-priority issues in Alberta’s oil and gas industry. In 2016, AUPRF launched 31 projects related to air, water, soil and groundwater, biodiversity, and well-abandonment. The AUPRF program created significant value for industry with the implementation of three 2016 Soil and Groundwater committee projects that resulted in annual savings of $15M-$35M. In addition, AUPRF established and published 18 Best Management Practices across all environmental areas for the environmentally-responsible development of Alberta’s oil and gas resources. Adoption of the recommendations from these Best Management Practices allows for quick and efficient uptake from field operators, easing operations with a focus on cost-savings and efficiency. In the past year, the AUPRF program dedicated additional resources to GHG-reduction efforts. Working

Innovation, Collaboration, R&D, Clean Tech – these have become essential themes driving the modern Canadian hydrocarbon energy industry. While these concepts are not new to our sector, they have gained significant traction in the face of low oil and gas prices and newly-established federal and provincial GHG reduction targets. Our industry stands on the precipice of necessary change, a time brimming with opportunities for innovation. PTAC is ready. For more than twenty years, we have championed the collaborative research and technology development needed to help industry simultaneously improve recovery, reduce costs, mitigate environmental impacts, and bolster industry’s social license to operate.

closely with the technical subcommittees of the AER’s Methane Reduction Oversight Committee, the AUPRF committees spent significant time developing solutions for managing the extensive costs associated with new methane regulatory compliance.

In 2016, both the federal and provincial governments launched funding opportunities for organizations developing new technologies and innovative solutions to reduce methane emissions. Working in collaboration with multiple stakeholders through both the Technology for Emission Reduction and Eco-Efficiency (TEREE) Network and the AUPRF Program, PTAC submitted a total of 23 collaborative program proposals for funding consideration, some of which contain as many as 10 technology projects that individually consist of up to 10 field pilot projects. Overall, PTAC’s inventory of programs within these proposals incorporates 27different methane-reduction technologies that can be applied to industry operations.

Ensuring alignment with evolving industry needs, PTAC significantly expanded the scope of our successful Small and Medium Sized Enterprise (SME) program offered in collaboration with the National Research Council – Industrial Research Assistance Program (NRC-IRAP). Although few Canadian operators have resources available to establish dedicated research and technology development teams, they nonetheless must address the current demand for drastic and economical improvement in environmental performance.

PTAC introduced a program expansion to help SME producers in the Canadian oil and gas sector access information and technologies to improve environmental performance, reduce the cost of GHG reduction, and receive help with regulatory compliance. Through this program, SME operators will connect with the best management practices developed through the PTAC AUPRF program and explore new technologies developed through the PTAC TEREE Network and other sources. Soon, SMEs will also be able to access a targeted catalog of emissions-reducing technologies being compiled in concert with PTAC’s Canadian Upstream Oil & Gas Eco-Efficiency Handbook through a project extension recently launched in collaboration with NRCan. The SME program expansion is a win-win for all industry stakeholders, increasing market penetration and technology uptake for providers while helping SME producers address current challenges, thus improving overall industry performance. Cognizant of limited stakeholder resources, PTAC launched the program expansion with a series of well-attended complimentary information sessions and workshops in late 2016. Carrying

into 2017, these sessions will encourage practical collaboration among stakeholders.

PTAC was excited to partner with the Saskatchewan Research Council and other industry partners in launching the Centre for the Demonstration of Emissions Reductions (CDER) initiative in 2016. Based in Saskatchewan, this mobile facility will provide real-world testing, demonstration, and verification of emissions reductions technologies. It is hoped the results generated will spur industry adoption of practical and economic methane- and GHG-reduction technologies.

PTAC’s projects roster for 2017 includes the launch of over 25 AUPRF projects, the formation of a methane emissions reduction network, several technology field demonstration projects that focus on detection, reporting, and mitigation of methane emissions, field trials of eco-efficiency technologies, an investigation into the failure of slotted liners, a study of increased recovery methods for unconventional resources, and an extension of the eco-efficiency handbook project. In addition, ongoing work will continue on several existing projects.

PTAC believes that protecting the environment and growing a strong, diversified economy go hand in hand. PTAC’s membership increased in 2016 to over 200 industry partners, proving that the PTAC model of collaborative innovation during times of hardship is not only possible, but is the best path forward to create a sustainable and responsible oil and gas industry. Our organization is committed to supporting a prosperous and inclusive future for all Canadians in which our country is a major player in the global transition to a low carbon economy. Collaboration is the most effective and efficient method of developing new technology, and participation from all industry players is critical to future sustainability and success. From the largest producers to the smallest service and supply companies, along with inventors, government, and academia, PTAC is honoured by our members and volunteers who embody this vision for a sustainable and prosperous future.

Moving forward, we invite the Canadian hydrocarbon energy industry to embrace the concept that PTAC has affirmed over the past 20 years: with innovation and collaboration, we can reduce the environmental footprint and negative social impact of hydrocarbon development while ensuring profitability for years to come.

Soheil Asgarpour, Randy CormierPh.D., FCAE, FCIM, P.Eng. ChairpersonPresident


KEY ACCOMPLISHMENTSPTAC continued to align itself with the Canadian oil and gas industry in 2016, developing innovative technology and collaborative R&D initiatives that advance the transition to producing cleaner energy in a low carbon economy. PTAC members collaborated to launch 50 new research and development projects and project phases across all four PTAC technology areas.

PROGRAMS

AUPRF

Small and Medium Sized Enterprises (SMEs)

PTAC’s Alberta Upstream Petroleum Research Fund continued to address high-priority environmental and social issues through peer-reviewed research on air, water, soil and groundwater, biodiversity, and well-abandonment. The program awarded 31 new projects $1.78M in funding in 2016. The leveraging of additional funding resulted in a total program value of $10.8M. Keeping in step with industry priorities, AUPRF dedicated additional resources to GHG-reduction efforts following the introduction of Alberta’s Climate Leadership Plan. In 2016, AUPRF began working closely with the technical sub-committees of Alberta Energy Regulator’s Methane Oversight Committee to develop solutions and help manage the extensive costs associated with new methane regulatory compliance in 2018.

PTAC’s SME program, facilitated in collaboration with NRC-IRAP, continued to help SMEs navigate the changing hydrocarbon energy marketplace. Forty-eight SMEs benefitted from PTAC bridging the gap between industry needs and SME offerings. PTAC helped SME technology providers tailor their technology to industry needs, and introduced operator and producer members to relevant SME technologies and services. Through the PTAC collaborative model, both SMEs and producers significantly reduced the financial risk associated with innovative technology development. Five joint-industry projects were launched in 2016 through PTAC’s SME program. In addition, 76 SME technology providers accessed the program’s basic market assessment services.

Overcoming the challenges of being smaller players in a large industry, small and medium oil and gas producers are making significant contributions to the Canadian oil

Working with our partners, PTAC continued to facilitate the Alberta Upstream Petroleum Research Fund (AUPRF), the Pipeline Abandonment Research Program, and the Small and Medium-sized Enterprises (SME) Innovation Program. Each of these programs helped launch new projects and encouraged collaboration that benefitted the Canadian hydrocarbon energy industry.

and gas industry. In 2016, PTAC and NRC-IRAP expanded the SME program, adding services to specifically support innovation among SME producers in the Canadian oil and gas sector. The program emphasizes facilitating access to demonstration and deployment opportunities for near-commercial or deployment-ready technologies that improve environmental performance or reduce the cost of GHG reductions. This initiative helps connect Canada’s SME producers with technology providers who may provide cost effective solutions to their individual challenges, and increases market penetration for SME technology providers. The program also provides SME producers with opportunities to learn from senior operators about the successful implementation of innovative environmental technologies.

As a first step in this program expansion, PTAC hosted the “Methane and Air Emissions – Compliance and Cost Reduction Information Session” in December 2016. The workshop introduced the program offerings and goals to a gathering of more than 75 attendees, including SME producers, technology providers, and other stakeholders. The first of four planned events, this workshop provided a primer on the current picture of methane and air emissions in Canada and an opportunity to discuss the unfolding regulatory situation. Presentations addressed regulatory compliance relating to methane and GHG emissions, practical applications, and innovative technology solutions. These well-attended sessions will carry on in 2017. PTAC also facilitated several other 2016 events that provided SMEs with exclusive networking and demonstration opportunities. SMEs showcased their technology and shared project opportunities with PTAC members from throughout industry and government at 16 Technology Information Sessions. The 2016 SME Oil and Gas Fundamentals forum invited SMEs to explore

2016 Annual Report 5

PROJECTS

Improve Oil and Gas Recovery

Pipeline Abandonment Research Program

opportunities in managing methane emissions and improving eco-efficiency, while nearly 50 representatives from all sectors of industry attended PTAC’s Showcase of SME Environmental and Operational Technologies.

PTAC’s Pipeline Abandonment Research Program is a multi-year research program focused on the sustainable development of the Canadian pipeline industry. The program was established in 2012 following an MOU signed with the Canadian Energy Pipeline Association (CEPA), and is administered through the multi-stakeholder Pipeline Abandonment Research Steering Committee (PARSC). In 2016, PARSC launched five new projects, all of which are scheduled for completion in 2017. They also completed the “Cleaning of Pipelines for Abandonment” study, the results of which are available to the public.

PARTNERSHIPS

Centre for the Demonstration of Emissions Reductions

In 2016, PTAC was excited to partner with the Saskatchewan Research Council and other industry partners in launching the Centre for the Demonstration of Emissions Reductions (C-DER). C-DER is a proposed Saskatchewan-based test and verification facility established by the Saskatchewan Research Council that will provide real-world testing, demonstration, and verification of emissions reductions technologies. Designed to accelerate industry adoption of practical and economic technologies, the C-DER mobile facility offers independent, industry-recognized third-party certification. While focus is currently on methane, most GHG emissions can also be safely tested, demonstrated and validated.

The PTAC collaborative model continues to effectively leverage varied expertise and funding to rapidly move innovative technologies from concept to implementation and commercialization. In 2016, PTAC was running a roster of 97 active projects and launched 50 new projects or project phases while continuing to work on multiple ongoing projects, and completing 53 projects. These projects span all four of PTAC’s technology areas and demonstrate an ongoing commitment to innovation.

PTAC recognizes that world energy consumption is increasing drastically, and global conventional oil and gas production will inevitably decline due to depleting reservoirs. This gap will need to be filled through unconventional resources and new technology, and Canada’s unconventional plays will play a pivotal role in meeting the expected global energy demand. PTAC’s ‘Improve Oil and Gas Recovery’ Technology Area focuses not only on developing new methods to more effectively extract hydrocarbon resources, but does so while addressing environmental impact.

Projects LaunchedThree ‘Improve Oil and Gas Recovery’ projects were launched in 2016. The first, “Technical and Economic Benefits of Steam and Flue Gas Injection in SAGD Wind Down Phase 2” proceeded under the direction of the Phoenix Network. This project conducted further investigation into the most cost-effective and energy-efficient methods of managing partially depleted reservoirs. Another Phoenix Network project, “Multi-Lateral Junction – Phase 2” seeks to achieve significant cost-reduction per well due to reducing surface facility costs. Phase 2 of PTAC’s

Artificial Reservoir project also launched in late 2016. This phase of the project will determine the value and cost of an intermediate-scale physical model facility for the evaluation of heavy oil and oil sands recovery processes. The project will include preparation of a detailed conceptual design of the facility, identification of operating procedures, and rough estimates of capital and operating costs. It is anticipated that this project will be completed in 2017.

Ongoing ProjectsAmidst the development of new projects, PTAC continued to facilitate the Tight Oil and Gas Innovation Network (TOGIN). Significant progress was made on TOGIN’s Tight Oil and Shale Gas Roadmap, which addresses current and anticipated challenges and opportunities related to hydraulic fracturing in the development of unconventional tight oil and shale gas resources. Throughout 2016, PTAC worked closely with experts in the areas of air, water and sustainable production related to hydraulic fracturing to move the Roadmap towards completion. The Roadmap is currently in its final stages of review by the Steering Committee before posting on the PTAC website. This will be a valuable resource in determining the way forward with this high-profile extraction method.


Completed ProjectsPTAC completed four projects focused on technical innovations to improve recovery, two in Alberta’s oil sands, and two in unconventional plays. PTAC’s ‘Enhancements to an Online Steam Quality Analyser for Thermally Enhanced Heavy Oil Recovery’ successfully designed, constructed, and began initial operation of the Dual Boiler System, and completed preliminary performance testing of the steam quality analyzer. Continued testing is now underway to further improve the efficiency of the Dual Boiler System and the performance of the steam quality analyzer. Next steps will be to prove the reliability and accuracy of the steam quality analyzer under real operating conditions through installation at an operational oil sands site. Under the auspices of PTAC’s Phoenix Network, the ‘Oil Sands Drilling and Completions Needs Identification and Technology Scan’ project identified current gaps and investigated available new technologies to extract the significant in situ resources currently left in the ground by existing SAGD technologies.

TOGIN completed the ‘Proppant Surface Treatment and Well Stimulation for Tight Oil and Shale Gas Development’ project. The project successfully completed field demonstrations of both the Proppant Surface Treatment and the Well-Stimulation chemical applications in Canadian operations. Analysis of the results by two subject matter experts concluded that the technologies increased condensate production, which is economically beneficial and reduces impact on the environment. The project also yielded a better understanding of the technology needs and opportunities in the Bakken and Duvernay plays. These results were disseminated in presentations at a PTAC workshop.

Also focused on the Duvernay play, TOGIN completed the ‘Unconventional Resource Industry Development in the Duvernay Play Region’ project in 2016. Extrapolating from reported activities in analogous formations, this project identified the main environmental challenges for

future commercial development, as well as knowledge and technology gaps that must be addressed. The results of this project were broadly disseminated.

Canada’s hydrocarbon energy industry continued to seek collaborative research and technology development solutions, especially in the face of mandated GHG reduction targets. Reflecting industry priorities, PTAC projects relating to the reduction of GHG and Methane were given high priority in 2016.

Launched ProjectsPTAC launched four collaborative projects under the leadership of the TEREE committee, three of which incorporated field testing. “Analysis and Reporting of a Trial of GasPro Compression BTEX Vapor Recovery Unit (VRU) for Energy Efficiency and Emissions Reduction” project is a neutral third party study funded by Natural Resources Canada (NRCan) that will review the results of a recent field trial and answer key questions about the innovation, overall functionality, and emissions reduction achieved with the BTEX VRU technology. PTAC members Process Ecology and GreenPath have been recruited to conduct the analysis. The second new TEREE project, also funded by NRCan through their CIPEC program, is the “Canadian Upstream Oil & Gas Eco-Efficiency Handbook” project. The Handbook will encompass specifications of current commercially-available technologies and serve as an informative checklist for operators creating new standards. This reference will also be useful in installing new builds or completing upgrades and expansions on well sites. Cap-Op Energy has been hired to prepare the Handbook.

In 2016, the TEREE committee launched and completed two projects investigating the GHG-emission reduction and energy-efficiency achieved by optimizing Glycol Dehydrators. The first project, ‘Evaluation of Right Sizing

Manage Environmental Impacts


(L-R) Award Presenter: Brian Doucette, Suncor Energy Award Recipient: Alan Pentney, National Energy Board (Accepting Award on Alan’s behalf is Andrea Hardie)

(L-R) Award Presenter: Hans Custers, Alberta Energy Award Recipient: Tara Bernat, Encana Corporation

(L-R) Award Recipient: Christopher Holly Award Presenter: Soheil Asgarpour, PTAC President

Pumps in Glycol Dehydration Units’, tested the use of smaller, optimal-size gas-driven pumps to run glycol dehydration units. The third-party emissions reduction and energy efficiency results were published and distributed to PTAC members through TEREE events. The second project, ‘Analysis and Reporting of a Trial of an Auxiliary Burner System in Glycol Dehydration Units’, evaluated REM Technologies’ SlipStream Dehy Technology, determining that it significantly reduces GHG emissions.

In late 2016, PTAC re-established the Alternative Energy Solutions Technical Steering Committee to launch an additional phase of the Alternative Energy Solutions for Oil Sands project. Their first task has been to plan a multi-stakeholder workshop exploring the current challenges and opportunities for the application of nuclear energy within Canada’s oil and gas and utilities industries. It is anticipated this workshop, and any resulting collaborative projects, will launch in 2017.

In addition to the projects launched in 2016, PTAC responded to Provincial and Federal RFPs seeking new technologies and innovative solutions to reduce methane emissions. With the support of industry stakeholders, PTAC submitted a total of 23 collaborative program proposals for funding consideration. These proposals, spanning various project scopes, incorporated 27 different technologies related to methane emissions reduction. The status of these projects is pending. Concluded ProjectsPTAC and the United Nations Environmental Programme’s (UNEP) Climate and Clean Air Coalition (CCAC) concluded the ‘Accelerating Methane and Black Carbon Reductions from Oil and Natural Gas Production’ Project in 2016. This project identified where venting and flaring of natural gas rich in volatile organic compounds (VOCs) occurs, and determined economic opportunities to reduce Short-Lived Climate Pollutant (SLCP) emissions. The project also delivered intangible results beyond the original mandate of the project. The public-private cooperation, communication, and infrastructure integral to the successful completion of this project laid the groundwork for emission reduction in the long term. Industry is better equipped for future knowledge exchange, has increased capacity for innovation, and an elevated awareness of critical environmental issues.

PTAC’s ‘Emissions Reductions and Energy Efficiency in Crude Bitumen and Heavy Oil’ project also concluded in 2016. This two-fold project encompassed conceptual studies of emissions reduction and energy efficiency in both crude bitumen and heavy oil operations. The project outcomes include comparisons of methane emissions reduction technologies and recommendations, as well as technology pilot results, evaluations of cost effective aggregation methods, and an assessment of a potential future testing and demonstration facility for emission

reduction technologies. Project results were communicated at two different PTAC workshops, where members were invited to participate in the development of new technologies to reduce methane emissions.

PTAC also completed the ‘Novel Water Treatment Technology for Application to Hydraulic Fracturing’ project in the spring of 2016. The project evaluated an ultrasonic system built by Easwara Origins and tested at the University of Calgary to effectively clean electrodes during the Electrocoagulation (EC) treatment of waste flowback waters from hydraulic fracturing operations. The project determined optimal ultrasound settings for visual removal of scale deposition from the EC anode, and the EC process demonstrated removal of up to 90% of suspended solids, oil, and hardness from the wastewater. The application of carbon dioxide gas during the EC process increased the removal of total hardness from 50% to 90%. The successful demonstration of the prototype will allow for more efficient use of EC in hydraulic fracturing applications.

The Alberta Upstream Petroleum Research Fund (AUPRF) Program was also able to bring 43 projects to conclusion, in 2016. One of the projects completed under the program was the Petroleum Guidelines in the Remote Green Zone initiative. Under this project, risk-based soil hydrocarbon fractions were adopted by Alberta Environment and Parks, preventing unwarranted landfill disposal and improving soil conservation. The financial savings to industry have far exceeded the cost to fund the new guideline development. Another project completed through the program in 2016 through AUPRF was the Subsoil Salinity Tool (SST) project. The SST is a sustainable tool that has minimized remedial costs, improved conservation of salt-impacted soils, and supported timely site closure. Again, the financial savings to industry have far exceeded the cost to develop the model.

Launched ProjectsContinuing their multi-year research program for the sustainable development of the Canadian pipeline industry, PTAC’s Pipeline Abandonment Research Steering Committee (PARSC) launched five new projects in 2016. These projects tackle the significant environmental concerns associated with decommissioned pipelines.

The ‘Recommended Practice for Cleaning Pipelines for Abandonment’ project will develop recommended practices for cleaning pipelines for abandonment. This study will build upon existing pipeline cleaning guidelines, taking into account the methods currently being used by individual operators and service companies. The project will develop criteria for appropriate levels of cleanliness for abandoned pipelines, characterized by baseline residuals that pose no detrimental impact on the environment.

Improve Value-Added Products


Reduce Capital, Operating, and G&A Costs

EVENTS

Operators must make significant hazard- and risk-based decisions when planning to abandon a pipeline. Launched in 2016, the ‘Risk-Based Decision Making Framework for Pipeline Abandonment’ project seeks to develop a framework to systematically guide these decisions. The project will examine and compile data from existing internal and external research into the physical and technical issues associated with pipeline abandonment. The resulting framework will not only improve the speed and quality of pipeline abandonment planning, but will also inform submissions of the mandatory Application to Abandon Pipelines required by the National Energy Board.

PTAC’s Study of the Potential Impact of Power Lines on Corrosion of Abandoned Pipelines will review available technical literature and survey the state of knowledge concerning the effect of electromagnetic fields from power lines on accelerated corrosion for pipelines abandoned in place. The study will also address the potential safety hazards from HVAC interference on abandoned pipelines.

PARSC’s Study of the Water Conduit Effect in Abandoned Pipelines will review the environmental impact of water conduits and identify the positive and negative factors of current and historical mitigation measures. The study will combine a literature survey and analysis with a survey of the anecdotal experiences and research of team members. This combination will yield an outline of the high-level positive and negative factors of mitigation measures, reveal gaps in literature and research, and identify steps that might be taken to improve performance.

The ‘Review of a Previous Pipeline Abandonment Program‘ project will review the condition of a pipeline that was abandoned ~40 years ago to evaluate outcomes achieved by the current abandonment program.

Concluded ProjectsPTAC launched and completed the “Recommended Practice for Cleaning Pipelines for Abandonment” project

in 2016 and published the results online. Focused on oil and gas transmission pipelines in Canada, researchers engaged directly with stakeholders and reviewed available literature. The study determined the effectiveness of various mechanical and chemical cleaning methods for pipeline abandonment, and examined potential residual contaminants and methods of detection. The study also reviewed federal and provincial regulations for pipeline abandonment compared to current industry guidelines and programs.

Launched ProjectsThe ‘PTAC Online Oil in Water Analyzer in Thermally Enhanced Heavy Oil Recovery’ project was launched in concert with the SME program. Incorporating Silicon Photonic Technology and a new infrared spectroscopy system, Luxmux Technology Corporation and Agar Corporation are developing an online oil in water ppm level analyzer for oil sands in-situ operations. This million-dollar project is expected to completed in December 2017, and the results will be made available to the public.

Concluded ProjectsPTAC both launched and successfully concluded the ‘GO Pal Emergency Response Plan (ERP) Mobile Enterprise Application System’ project in 2016. This joint industry project was completed under PTAC’s Small and Medium Enterprises Program facilitated with NRC-IRAP. The project consisted of the creation and execution of a survey to help GO Pal develop a value-driven, cost-effective ERP App compatible with smartphones and tablets so that employees at various site locations could immediately access ERP information. Survey results confirmed the need for emergency management solutions in the oil and gas industry, and provided valuable statistics to help GO Pal develop their business model in alignment with industry needs.

During the course of 2016 PTAC facilitated:


The success of PTAC programs and projects relies heavily on multi-stakeholder collaboration. This cooperation often starts at PTAC events. Forums provide opportunities to hear the results of concluded projects or learn about new and ongoing research; Workshops provide an opportunity for stakeholders to work together developing solutions to shared challenges; Technology Information Sessions (TISs) showcase new technologies and opportunities for collaboration. A highlight of PTAC’s 2016 events was the TEREE Committee’s “Dragons’ Den” workshop that facilitated direct discussion between end-users and technology providers to accelerate technology innovation in the emissions reduction technology space. Based upon feedback from participants identifying the most urgent industry needs, several technologies presented at the event were included in PTAC’s government funding applications.

• 16 Technology Information Sessions attended by 420 participants• 5 forums that attracted over 400 participants• An AGM attended by 132 PTAC members and guests• 9 workshops that engaged 429 stakeholders in meaningful discussion

Opportunities abound to overcome the current challenges of the Canadian hydrocarbon energy industry through collaboration and innovation. New technology has the power to effectively cut costs; reduce the environmental footprint; improve market access; increase reserves, profitability, and production; and mitigate the commodity risk. In 2017, PTAC will continue to use the proven collaborative model to develop and implement transformative technology, and to pursue innovation that leads to positive economic, social, and environmental changes.

PTAC will continue to develop and expand its current projects, programs, and partnerships with an enhanced focus on methane-reduction initiatives. PTAC’s roster of projects planned for launch in 2017 include field trials of eco-efficient technologies, an investigation into the failure of slotted liners, a study of increased recovery methods for unconventional resources, another phase of the alternative energy solutions project, and an extension of the eco-efficiency handbook project. In addition, several ongoing projects will complete in 2017. Among these are all five of the current Pipeline Abandonment projects underway through the Pipeline Abandonment Research Steering Committee (PARSC), the Technology for Emissions Reduction and Eco-Efficiency’s (TEREE) field trial of the BTEX VRU technology, completion of the field trial of the Online Oil in Water Analyzer in Thermally Enhanced Heavy Oil/Bitumen Recovery, and the publication of both the ‘Tight Oil and Shale Gas Roadmap’ and the ‘Canadian Upstream Oil & Gas Eco-Efficiency Handbook’.

A major 2017 objective for PTAC will be to establish the Methane Emissions Reduction Network. Through this initiative, PTAC will become the central hub for Canadian joint industry projects related to methane. PTAC’s Methane Emissions Reduction Network would serve as a central point of contact to connect stakeholders with existing methane reduction research, technology, and funding opportunities. This would benefit multiple stakeholders by facilitating knowledge exchange, reducing duplication, identifying opportunities for development, and closing gaps.

In concert with the Methane Emissions Reduction Network, PTAC will follow-up on the 23 funding applications submitted to the provincial and federal governments that are awaiting decision. Some of these contain as many as 10 technology projects that individually consist of up to 10 field pilot projects. Overall, these proposals incorporate 27

technologies to reduce methane emissions. Although more than 50% of the funding has already been secured, PTAC will continue to seek funds to launch these technology projects aimed at reducing both methane emissions and the cost of compliance with new regulations.

AUPRF looks forward to launching 25 new projects in 2017, conducting applied research and developing technologies to find cost-effective solutions to help industry meet the methane reduction target of 45% by 2025. The program will continue to work alongside government, regulators, academia, technology providers, and producers to inform the development of smart regulations. Offering a collaborative and balanced voice, AUPRF hopes to increase industry compliance while reducing the financial impact on industry.

PTAC recognizes that SMEs occupy a vital role in methane and GHG-reduction initiatives, and PTAC’s SME program, offered in collaboration with NRC-IRAP, will continue to progress in 2017. Under the auspices of the SME Program, PTAC is working with Natural Resources Canada to fund a complementary publication to TEREE’s “Canadian Upstream Oil & Gas Eco-Efficiency Handbook”, a practical, user-friendly publication listing available emissions-reduction practices and technologies which is currently scheduled for completion in Spring 2017. The proposed additional publication, ‘The Canadian Upstream Oil and Gas Energy Efficient Operations Handbook’, would be targeted specifically to SME operators to provide them with easy-access to a catalog of feasible best practices and technologies for improving environmental performance and reducing costs. In addition to project work, PTAC will also continue offering complimentary information sessions and workshops targeted to small and medium sized producers. Three follow-up information sessions will be held throughout 2017, covering topics such as IT tools for cost reduction and operational improvement, Facilities Construction & Operations, and a mini-showcase of deployment-ready technologies.

Through our planned 2017 activities, PTAC is accelerating and securing Canada’s position as a global innovation hub that commercializes and exports clean, affordable energy. By leading innovation in our industry and sharing the benefits of transformative advancements, PTAC continues to work towards a sustainable, responsible, and prosperous future.

2017 OUTLOOK


PROJECTSPROJECTS OR NEW PROJECT PHASES LAUNCHED IN 2016

PTAC facilitated the launch of 50 new research projects and project phases to address industry challenges in 2016. Of these projects, 31 were launched under the direction of PTAC’s AUPRF Management Committee, awarding $1.78 M in AUPRF Funding.

IMPROVE OIL AND GAS RECOVERY

• Artificial Reservoir – Phase 2• Technical and Economic Benefits of Steam and Flue Gas Injection in SAGD Wind Down Phase 2• Multi-Lateral Junction – Phase 2

REDUCE CAPITAL, OPERATING, AND G&A COSTS

• GO Pal Emergency Response Plan Mobile Enterprise Application System• Online Oil in Water Analyzer in Thermally Enhanced Heavy Oil Recovery

MANAGE ENVIRONMENTAL IMPACTS

• Alternative Energy Solutions Phase 2b• Analysis and Reporting of a Trial of Gas Pro Compression BTEX VRU for Energy Efficiency and Emissions Reduction• Canadian Upstream Oil & Gas Eco-Efficiency Handbook• Centre for the Demonstration of Emissions Reductions • Passive Acoustics Monitoring for Steam Chamber Monitoring• Analysis and Reporting of a Trial of an Auxiliary Burner System in Glycol Dehydration Units• Evaluation of Right-sizing Pumps in Glycol Dehydration Units

IMPROVE VALUE-ADDED PRODUCTS

• Recommended Practice for Cleaning Pipelines for Abandonment• Risk-Based Decision Making Framework for Pipeline Abandonment• Review of a Previous Pipeline Abandonment Program• Study of the Potential Impact of Power Lines on Corrosion of Abandoned Pipelines• Study of the Water Conduit Effect in Abandoned Pipelines

SMALL AND MEDIUM ENTERPRISES

• PTAC – National Research Council of Canada Industrial Research Assistance Program for SMEs• Fluid Mechanic Causes of Gas Migration

AUPRF

AIR RESEARCH PLANNING COMMITTEE• Flare Emissions from Unconventional Oil and Gas Extraction and Processing: An NSERC Strategic Network for Cleaner Fossil Fuels• Leak Detection and Repair Baseline• Revised Emission Factors for Level Controllers• Vehicle-Based Fugitive Emission Detection and Attribution within Alberta Energy Developments• Mitigating Low Volume Methane emissions• ABFlare Tool Update

ECOLOGICAL RESEARCH PLANNING COMMITTEE• Does Recovery Linear Features Increase Functional Habitat for Caribou?• Efficient Monitoring of Wildlife Responses to Seismic Line Restoration in the Algar Habitat Restoration Program• White-Tailed Deer Behavioural Response to Anthropogenic Features• Grizzly Bear Survival in Oil and Gas Operating Areas• Assessing Disease Prevalence and Caribou Health in West-Central and North- Western Alberta• Evaluating Genomic Diversity for Caribou in Alberta to Allow for Effective Biodiversity Monitoring, Augmentation and Conservation• Monitoring Wetland Vegetation and Reclamation Across Space and Time• Canada Warbler Response to Vegetation Structure on Recovering Energy Sector Disturbances• Development of Remote Sensing Techniques for Regional Reclamation Monitoring of Peatlands in Alberta

SOIL AND GROUNDWATER RESEARCH COMMITTEE• Low Probability Receptor Technical Reports• Development of a Reduced Analytical Suite of Upstream Oilfield Metals for Groundwater Monitoring• Development of a Chloride Water Quality Guideline Based on Hardness and Consideration for Cation Toxicity• Development of EcoContact Soil Selenium Guidelines• Database of Background Metals Concentrations in Shallow Alberta Groundwater• Understanding Characterizing the Influence of Clay Pads on Toluene Biogenesis in Peatlands

WATER INNOVATION PLANNING COMMITTEE• Scientific Evaluation and Interpretation of Baseline Groundwater Well Testing Data Available for Alberta• Water Priorities Established During a Canadian Water Network Multi- Stakeholder Workshop• Environmental Net Effects (ENE) Tool – Phase 2• Risk Assessment: Use of Layflat Surface Hose for the Transport of Alternative Water• Implementing a Technology and Pilot Testing Process for Hydraulic Fracturing Operators• Consortium for Permafrost Ecosystems in Transition (CPET) • Water Sources Data Centralization – Phase 1• Water Sources Data Centralization Project – Phase 2• Well Abandonment Research Initiative Committee• Methane Emissions – Human and Ecological Health Risk based Ranking and Prioritization Tool

PTAC provides industry with a neutral forum to work in collaboration, leveraging collective experience and expertise to identify opportunities, challenges, and potential solutions that require research or technology development. These discussions can lead to joint-industry projects where PTAC, as a neutral facilitator, assists with soliciting proposals and launching projects through a fair and balanced process. PTAC also identifies existing R&D to raise industry awareness and minimize duplication. PTAC may also provide up to 15% seed money to help move projects forward.

As a service to members, PTAC facilitates Technology Information Sessions (TISs) for interested companies. TISs offer member companies an opportunity to present new technology or research and development projects to solicit interest, gather feedback, invite participation, or seek potential funding. These sessions provide benefits to both the presenting company and those in attendance. Connections are made that help both the presenters and those in attendance identify industry partners to complete proposed research or technology development, such as field tests or pilot sites. TISs also provide a targeted opportunity to report back to industry on field test or pilot results and provide information on new technology-related services. For PTAC’s service and supply members, a PTAC TIS can also be an excellent method of marketing new technology to the Canadian oil and gas industry.

Focusing on broader needs or larger technical areas, PTAC forums are comprised of presentations detailing new technologies, case studies, and the objectives and results of current research. Presentations always provide opportunities for questions and answers. The goal of PTAC forums is to bring together the most up-to-date information from across the industry into an enriching learning experience. PTAC workshops provide opportunities for participants to work collaboratively in focused groups to clearly define research and development issues, identify potential solutions, and select the best approach to move forward. Workshops provide a venue for Industry members to candidly share their needs so that R&D providers hear about issues firsthand. Solutions are formed by leveraging the collective expertise and ideas of all participants, while protecting proprietary interests. PTAC hosts all workshops and is pleased to provide the necessary facilitation, administrative support, and coordination to launch projects once identified.

The PTAC Knowledge Centre provides public access to non-proprietary technical information on commercially available oil-and-gas-related technologies pertinent to the hydrocarbon energy industry. The Knowledge Centre offers advice on access to technical databases to meet the educational, informational, and technical needs of the user community.

PTAC offers members a variety of opportunities to become involved in innovation, research, and development, demonstration, and deployment initiatives that further the Canadian hydrocarbon energy industry.

MEMBER SERVICES

FacilitatingProjects

ConnectingTechnology Information Sessions

EngagingForums and Workshops

InformingKnowledge Centre


In 2016, PTAC facilitated 16 Technical Steering

Committees:

MANAGE ENVIRONMENTAL IMPACTS• Alternative Energy Solutions Committee (AESC)• Air Research Planning Committee (ARPC)• Soil and Groundwater Research Committee (SGRC)• Ecological Research Planning Committee (ERPC)• Well Abandonment Research Initiative Committee (WARI)• Water Innovation Planning Committee (WIPC) • Technology for Emission Reduction and Eco-Efficiency Steering Committee (TEREE) • AUPRF Management Committee (AUPRF)

The Knowledge Centre Manager provides services to SMEs, technical steering committees, project performers, researchers, and others to help identify technologies and research needs, avoid duplicate research, and monitor industry trends. Services for PTAC members include advice on technical document and journal article retrieval and contact information for subject experts in industry, government, and academia. PTAC members are invited to provide non-proprietary technical information on their technologies to PTAC for display in the Knowledge Centre. Relevant materials are accepted on an ongoing basis.

PTAC Technical Steering Committees consist of PTAC members representing various industry sectors, governments, and non-governmental organizations. These technical steering committees work to identify opportunities

CollaboratingTechnical Steering Committees

for collaborative research and technology development, raise awareness of existing research and technology through planning events, find solutions to challenges through the process of soliciting proposals and launching new projects, and promote involvement by informing appropriate colleagues of Technical Steering Committee activities.

PTAC’s streamlined communications strategy has reduced the number of broad email blasts being sent to our members by replacing individual event notifications with an opt-in bi-monthly newsletter. This electronic publication highlights current PTAC project opportunities, new technologies, member news, upcoming events, and other initiatives addressing current industry current trends and needs.

CommunicatingStreamlined Communications


Mice print of people in the photo

• Analysis and Reporting Trial of the GasPro Compression BTEX VRU Project Steering Committee (ARTGPC)• Canadian Upstream Oil and Gas Eco-Efficiency Handbook Project Steering Committee (OGEH)

IMPROVE OIL AND GAS RECOVERY• Tight Oil and Gas Innovation Network Steering Committee (TOGIN)• Artificial Reservoir Project Steering Committee (ARPSC)• Froth Treatment Consortium (FTC)

• Phoenix Network (PHX)

IMPROVE VALUE-ADDED PRODUCTS• Pipeline Abandonment Research Steering Committee (PARSC)

SMALL AND MEDIUM ENTERPRISES• IRAP/ SME Innovation and Technology Commercialization in the Hydrocarbon Industry (ISTC)

(L-R) Award Presenter: Gary Leach, EPAC Award Recipient: James Beck, Suncor Energy

(L-R) Award Presenter: Bill Rosehart, University of Calgary Award Recipient: Fern Maas, Enerplus

(L-R) Award Presenter: Ken Lueers, ConocoPhillips Canada Award Recipient: Eddy Isaacs

BOARD OF DIRECTORS


Randy Cormier, Chair Vice President, TechnologyNexen Energy ULC

David Rushford, Vice-ChairSenior Vice-President and Chief Operating OfficerQuicksilver Resources Canada Inc.

Soheil Asgarpour, PresidentPTAC Petroleum Technology Alliance Canada

Brian Doucette, Director – Environmental ExcellenceSuncor Energy

Mike Ekelund, Assistant Deputy Minister, Resource Revenue & Operations/Strategic Initiatives Alberta Department of Energy

Jim Ellis, President and CEOAlberta Energy Regulator

Paul Jeakins, Commissioner and CEOBritish Columbia Oil and Gas Commission

Jonathan MatthewsDirector – Greenhouse Gases EPA COSIA

Nick McKenna, Vice President, Oil Sands Development & SubsurfaceConocoPhillips Canada

Ken Putt, Independent Director

Joy Romero, Vice President – Technology and Innovation Canadian Natural Resources Ltd.

William Rosehart, Dean – Schulich School of EngineeringUniversity of Calgary

Randy Rudolph, PrincipalMillennium EMS Solutions Ltd.

Laurier Schramm, President and CEOSaskatchewan Research Council

Kevin Stashin, President and CEONAL Resources Management Limited

Murray Todd, President and CEOTodd Resources

VOLUNTEER RECOGNITION AWARDS

(As at December 31, 2016)

2015 Service Awards (Presented at 2016 Annual General Meeting)

PTAC’s volunteers are second to none, and we are pleased to recognize the outstanding service of those who go above and beyond. Award nominees are selected by a panel of their peers.

COLLABORATIVE SPIRIT AWARD• The Canadian Association of Petroleum Producers (CAPP)

• The Explorers and Producers Association of Canada (EPAC)

PRESIDENT’S AWARD FOR LEADERSHIP IN COLLABORATIVE RESEARCH AND DEVELOPMENT• Chris Holly, previously with the Alberta Department of Energy

CHAIR PERSON’S AWARD• Bryan Helfenbaum of Devon Canada

LIFETIME ACHIEVEMENT AWARDS• Eddy Isaacs, former CEO of Alberta Innovates – Energy & Environment Solutions

• Dan McFadyen, previous Chairman and CEO of the Alberta Energy Regulator and Executive Fellow at the University of Calgary, School of Public Policy

OUTSTANDING SERVICE AWARDS• Joseph Odhiambo of Environment Canada

• Doug Boyler of the Alberta Energy Regulator

COMMERCIALIZING OF SME TECHNOLOGY AWARD• Spartan Controls and REM Technology Inc., a wholly owned subsidiary of Spartan Controls

ECOLOGICAL LEADERSHIP AWARD• Tara Bernat of Encana Corporation

SOIL AND GROUNDWATER RESEARCH LEADERSHIP AWARD• Ayan Chakraborty of Imperial Oil

WATER INNOVATION LEADERSHIP AWARD• Deanna Cottrell of Shell Canada

AIR QUALITY R&D LEADERSHIP AWARD• James Beck of Suncor Energy

WELL ABANDONMENT LEADERSHIP AWARD• Gord Jesse of Husky Energy

ECO-EFFICIENCY LEADERSHIP AWARD• Fern Maas of Enerplus

PIPELINE LEADERSHIP AWARD• Alan Pentney of the National Energy Board

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John Zhou, Vice President - Clean Energy Alberta Innovates

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COMMITTEE VOLUNTEERS• David Acton, Husky Energy Inc. (TOGIN)• Tamer Al-Ramahi, NRC-IRAP (ISTC)• Dean Anderson, Baseline (TEREE)• Mark Anderson, Husky Energy Inc. (ARPC)• Joshua Anhalt, Green Path Energy (TEREE)• Jarred Anstett, Progress Energy (WIPC)• Darren Anweiler, Saskatchewan Research Council (TOGIN)• Renato Araujo, Enerplus Corporation (TEREE, ARTGPC, OGEH)• James Armstrong, Encana Corporation (TOGIN, WIPC)• Caroline Bampfylde, Alberta Environment and Parks (ERPC)• Carol Barsky, CAPP (ERPC)• Marek Barthlomowicz, Husky Energy Inc. (TOGIN,)• James Beck, Suncor Energy Inc. (TEREE, ARPC, OGEH)• Bill Berzins, Fossil Water/Aquen/K’nowbe (TOGIN)• Michael Bevan, Alberta Energy Regulator (WIPC)• Travis Bishop, Canadian Natural Resources Ltd. (ARTGPC• Drew Black, Canadian Federation of Agriculture (PARSC) • Isabelle Bouffard, Union of Agricultural Producers of Quebec (PARSC)• Mark Boulton, Suncor Energy Inc. (ERPC)• Stephen Bromley, Husky Energy Inc. (AUPRF, SGRC)• Juliana Buendia, Ferus Inc. (TOGIN)• Daniel Burt, Suncor Energy Inc. (TEREE, OGEH)• Margaret Byl, Alberta Innovates – Energy and Environment Solutions (AESC)• Jamie Callendar, Independent (TEREE)• Lindsay Campbell, Alberta Energy Regulator (ARPC)• Ayan Chakraborty, Imperial Oil Resources Ltd. (SGRC)• Andrea Cherkas, SAIT (TEREE)• Serena Cheung, Statoil Canada Ltd. (PHX)• Brooke Coburn, Encana Corporation (TEREE, ARPC, OGEH)• Deanna Cottrell, Shell Canada (WARI, WIPC)• Cathy Crawford, Devon Canada Corporation (TEREE)• Hans Custers, Alberta Department of Energy (TOGIN)• Leah Davies, Canadian Natural Resources Ltd. (WARI)• Kumud Deka, Independent (TOGIN)• Nadine Diner, British Columbia Innovation Council (TOGIN)• Gordon Dinwoodie, Alberta Environment and Parks (SGRC)• Tomica Divic, British Columbia Innovation Council (TOGIN)• Mike Dixon, Alberta WaterSMART (TOGIN)• Luong Doan, Japan Canada Oil Sands Ltd. (ARPSC)

• Randy Dobko, Alberta Environment and Parks (ARPC)• Richard Dollighan, Natural Resources Canada (TEREE)• Cam Dowler, Spartan Controls (TEREE)• Don D’Souza, Government of British Columbia (TEREE)• Devin Ekdahl, Canadian Natural Resources Ltd. (ARTGPC)• Tijani Elabor, National Energy Board (PARSC)• Vince Elenko, Encana Corporation (TEREE)• Ken Elkow, Nexen Energy ULC (PHX)• Carol Engstrom, Husky Energy Inc. (ERPC)• Jennifer Ezekiel, Encana Corporation (ARPC)• Carrie Fanai, Kinetica Ventures (TEREE)• Monireh Faramarzi, University of Alberta (TOGIN)• Jon Fennell, Integrated Sustainability Consultants Ltd. (TOGIN)• Allison Fisher, Shell Canada (ARPC)• Terry Frank, Greatario Covers Inc. (TEREE)• Glen Fraser, Penn West (TOGIN)• Larry Frederick, Husky Energy Inc. (AESC, PHX)• Neil Fricke, Worley Parsons (TOGIN)• Sarah Fulton, Husky Energy Inc. (TOGIN, ERPC, WIPC, OGEH)• Michael Gatens, UGR Blair Creek Ltd. (TOGIN)• Greg Goss, University of Alberta (TOGIN) • Chris Grant, Fort Hills Energy L.P. (FTC)• Bruce Greenfield, Alberta Energy Regulator (ERPC)• Scott Grindal, ConocoPhillips Canada (AUPRF)• Rodney Guest, Suncor Energy Inc. (WIPC)• Nikki Guimond, Husky Energy Inc. (ARPC)• Anil Gupta, Alberta Environment and Parks (WIPC)• Subodh Gupta, Cenovus Energy Inc. (AESC, ARPSC, PHX)• Alistair Hazewinkel, Alberta Innovates – Technology Futures (TEREE)• Tim Hazlett, Alberta Economic Development and Trade (TOGIN)• Gregory Henderson, Encana Corporation (TOGIN)• Owen Henshaw, Husky Energy Inc. (TEREE, OEGH)• Bryan Helfenbaum, Devon Canada Corporation (PHX)• Sean Hiebert, ConocoPhillips Canada (TEREE, ARPC, AUPRF, OGEH)• Scott Hillier, ConocoPhillips Canada (TOGIN, AUPRF, WIPC)• Jason Ho, Canadian Energy Pipeline Association (PARSC)• Christopher Holly, Alberta Department of Energy (TEREE)• James Holoboff, Process Ecology Inc. (TEREE)• Becky Horvath, Repsol Oil and Gas Canada Inc. (TOGIN, WIPC)


• Jane Humberstone, Alberta Economic Development and Trade (TOGIN)• Eddy Isaacs, Alberta Innovates – Energy and Environment Solutions (TOGIN)• Sreekumar Janardhan, Suez North America (TOGIN)• Gord Jesse, Husky Energy Inc. (WARI)• Paul Jiapizian, Environment Canada (TEREE)• John Jochen, UGR Blair Creek Ltd. (TOGIN)• Marie Johnson, Progress Energy (WIPC)• Brad Johnston, Cenovus Energy Inc. (TEREE, OGEH)• Gordon Jolly, NRC-IRAP (ISTC)• Arvinder Kainth, NRC-IRAP (ISTC)• Kasem Kaci, Alberta Energy Regulator (WARI)• Kim Kasperski, CANMET (FTC)• Steven Keays, NRC-IRAP (ISTC)• Erin Kempin, Husky Energy Inc. (WIPC)• Oksana Kielbasinski, Integrated Sustainability Consultants Ltd. (TOGIN)• Bob King, Suncor Energy Inc. (PHX)• Nathan King, Devon Canada Corporation (TEREE)• Ryan Kisko, Finning Canada (TEREE)• Brad Komishke, TECK Resources (FTC)• Prit Kotecha, Suncor Energy Inc. (SGRC)• Jim Kresta, Syncrude Canada (FTC)• Milos Krnjaja, Alberta Energy Regulator (TEREE)• Steve Kullman, Husky Energy Inc. (SGRC) • Rajan Lalli, Kinder Morgan (PARSC)• Ray Lambert, ConocoPhillips Canada (TEREE, OEGH)• Michael Lawson, Alberta Energy Regulator (TEREE)• Logan Leduc, Environment Canada (TEREE)• Brian Lemoine, Imperial Oil Resources Ltd. (WARI)• Salima Loh, CAPP (TEREE, ARPC)• Stuart Lunn, Imperial Oil Resources Ltd. (SGRC)• Lily Ma, ATCO Energy Solutions (TOGIN)• Fern Maas, Enerplus Corporation (TEREE, ARTGPC, OGEH)• Richard MacDonald, Higher Ground Consulting (TOGIN)• Martin Mader, Alberta Department of Energy (TOGIN)• Waseem Mahmood, Alberta Department of Energy (TEREE)• Robert Martens, CAPP (SGRC)• Paul Martin, ConocoPhillips Canada (WIPC)• Todd Martin, Encana Corporation (ERPC)• Ken Masich, Alberta Energy Regulator (WARI)• Magdalena Mateuszczyk, Alberta Economic Development and Trade (TOGIN)• Jonathan Matthews, COSIA (AESC)• Darin McCollum, K’nowbe (TOGIN)• Dusty McKinnon, Easwara Origins Corp. (TOGIN)

• Evgeny Michurin, Alberta Energy Regulator (WARI)• Tammie Matchim, Enbridge Inc. (PARSC)• Nadia Monaghan, Encana Corporation (TEREE, OGEH)• Brent Moore, Canadian Natural Resources Ltd. (WIPC)• Hal Morris, UGR Blair Creek Ltd. (TOGIN)• Ole Mrklas, ConocoPhillips Canada (AUPRF, SGRC)• Anamika Mukherjee, Cenovus Energy Inc. (ARPC)• Rekha Nambiar, Suncor Energy Inc. (TEREE, ARPC, AUPRF)• Tom Nichols, GasPro Compression Corp. (ARTGPC)• Jean-Pierre Nicoud, Total E&P (FTC)• Agata Nowak, MEG Energy (WIPC)• Filiz Onder, Encana Corporation (ARPC)• Koray Onder, Encana Corporation (ARPC)• Kristine O’Reilly, Kinetica Ventures (TEREE)• Gerald Palanca, Alberta Energy Regulator (TEREE, ARPC)• Kelly Parker, Blue Source Canada ULC (TEREE)• Candice Paton, Alberta Innovates – Energy and Environment Solutions (TEREE, TOGIN)• Shane Patterson, Alberta Environment and Parks (TOGIN, ERPC)• Peter Pattison, GasPro Compression Corp. (ARTGPC)• Tara Payment, CAPP (WIPC)• Paul Paynter, Saskatchewan Research Council (TOGIN)• Bruce Peachey, New Paradigm Engineering Ltd. (TOGIN)• Joanne Petryk, Alberta Energy Regulator (WARI)• Rick Phaneuf, Alberta Environment (TEREE)• Oleg Podporin, Alberta Department of Energy (TOGIN)


(L-R) Award Presenter: Randy Rudolph, Millennium EMS SolutionsAward Recipient: Joseph Odhiambo, Environment Canada

• Daniel Pollard, Alberta Energy Regulator (SGRC)• Jessica Poupore, Environment Canada (TEREE)• Rob Power, Alliance Pipeline (PARSC)• Shannon Provencher, Husky Energy Inc. (WIPC)• Ron Quick, NRC-IRAP (ISTC)• Daniel Regier, Westview Engineering (TEREE)• Murray Reynolds, Ferus Inc. (TEREE, TOGIN)• Alan Roberts, Husky Energy Inc. (TOGIN)• Cooper Robinson, Cap-Op Energy (TEREE)• Mark Roblin, ARC Resources Ltd. (WIPC)• Joy Romero, Canadian Natural Resources Ltd. (FTC)• Brian Ross, Nexen Energy ULC (ARPC, TEREE)• Peter Rutherford, Athabasca Oil Corporation (TEREE)• David Ryan, Natural Resources Canada (TOGIN)• Jennifer Saldana, Husky Energy Inc. (WIPC)• Mahendra Samaroo, Alberta Department of Energy (TOGIN)• Jerry Scoular, Independent (TEREE)• Anita Selinger, Suncor Energy Inc. (WIPC)• Bruce Seyler, UGR Blair Creek Ltd. (TOGIN)• Aarya Shahsava, Innocorps Research Corporation (TOGIN)• Jennifer Shalagan, Husky Energy Inc. (ERPC)• Tera Shandro, Imperial Oil Resources Ltd. (FTC)• Loreen Sherman, Star-Ting Incorporated (TOGIN)• Sherry Sian, CAPP (AUPRF)• Mustafa Siddiqui, GasPro Compression Corp. (ARTGPC)• Brian Sloof, Cap-Op Energy (TEREE)

• Jonathan Smith, Blue Source Canada ULC (TEREE)• Scott Smith, Cenovus Energy Inc. (TEREE)• Mick Somerwil, Quicksilver Resources Canada Inc. (TOGIN)• Jim Spangelo, Alberta Energy Regulator (TEREE)• Peter Stapleton, Shell Canada (FTC)• Alex Starosud, Easwara Origins Corp. (TOGIN)• Lindsay Stephens, Encana Corporation (TOGIN, TOGIN- WM, ARPC, AUPRF, WIPC)• Craig Strand, Suncor Energy Inc. (FTC)• Mark Summers, Innotech Alberta (TEREE)• Debbie Tainton, Canadian Natural Resources Ltd. (SGRC)• Giani Talinga, Penn West (TOGIN, WIPC)• Tyler Tarnoczi, Cenovus Energy Inc. (TEREE)• Subhayan Thakurta, General Electric (TOGIN)• Catherine Thistlethwaite, Alberta Energy Regulator (TEREE)• Jonathan Toews, Independent (TOGIN)• Al Towers, Area 51 Machine Design Inc. (TEREE)• Mike Truzak, Enerplus Corporation (SGRC)• Bill Tubbs, ICF Canada (TEREE)• Greg Unrau, Repsol Oil & Gas Canada Inc. (TEREE, ARPC)• Sadiq Unwala, Alberta Environment and Parks (TEREE)• Kurt Uhrich, BP (AESC)• Carolyn Ussher, Nexen Energy ULC (ARPC)• Brian Van Vliet, Spartan Controls Ltd. (TEREE)• James Vaughn, Alberta Energy Regulator (ARPC)• Nick Veriotes, Canadian Natural Resources Ltd. (TEREE, OGEH)• Shirley Vickers, British Columbia Innovation Council (TOGIN)• JoAnne Volk, Repsol Oil & Gas Canada Inc. (WIPC)• Paul Walker, Ground Effects Environmental (TOGIN)• Steve Wallace, Alberta Environment and Parks (WIPC)• Stella Wang, Suncor Energy Inc. (ARPSC)• Charles Ward, Alberta Department of Energy (ARPSC)• Shawn Williams, Nexen Energy ULC (WIPC)• Shawn Willetts, ConocoPhillips Canada (SGRC)• Kate Wilson, Alberta Innovates (TOGIN)• Laura Yao, Kairos Aerospace (TEREE)• Alice Yu, Cenovus Energy Inc. (TEREE, ARPC, OEGH)• Julia Yuan, Husky Energy Inc. (TEREE, OGEH)• Andrea Zabloski, ConocoPhillips Canada (TEREE, OGEH)• Kourosh Zanganeh, Natural Resources Canada (TEREE)• Adele Zenide, Canadian Natural Resources Ltd. (WARI)• Emily Zevenhuizen, Integrated Sustainability Consultants Ltd. (TOGIN)• Litong Zhao, Canadian Natural Resources Ltd. (PHX)


(L-R) Award Presenter: Gary Leach, EPACAward Recipient: Deanna Cottrell, Shell Canada

INDEPENDENT AUDITOR’S REPORT

ASSETS

CurrentCash & cash equivalentsRestricted cash & cash equivalentsRestricted short term investmentShort term investmentGoods & services tax recoverableAccounts receivable & accrued receivablesPrepaid expenses

Property and equipment

LIABILITIES

CurrentAccounts payable & accrued liabilitiesDeferred revenueDeferred membership revenue

Deferred contributions

NET ASSETSInvested in property & equipmentInternally restricted Reserve

2016

$ 1,929,2825,398,496

725,9221,401,779

17,8231,237,438

25,435

10,736,175

17,703

$10,753,878

$ 1,688,614–

413,174

2,101,788

4,567,786

17,7032,666,6011,400,000

4,084,304

$10,753,878

2015

$ 2,765,3245,846,763

––

92,3892,888,190

36,915

11,629,581

8,880

$ 11,638,461

$ 2,932,3588,707

427,812

3,368,877

4,554,445

8,8802,306,2591,400,000

3,715,139

$11,638,461

STATEMENTS OF FINANCIAL POSITION (As at December 31, 2016)

REVENUE

Project & service revenueMembership revenueEvent revenueRental incomeProject participation feeInterest incomeMiscellaneous income

EXPENSES

Direct project & service costsSalaries & benefitsRentDirect event costsConsulting & professional feesOffice & equipment leasesInsuranceMarketingVolunteer recognitionBank charges & credit card discountsComputer & website Printing & publicationsAmortizationTrainingBad debtRealized/unrealized exchange loss

Excess of revenue over expenses

STATEMENTS OF OPERATIONS (As at December 31, 2016)

2015

$ 6,786,945464,608311,71898,631

–32,258

–

7,694,160

6,249,272729,152194,47845,90020,06024,18110,14911,0786,4056,1446,3656,4688,2639,814

12,7491,830

7,342,308

$ 351,852

2016

$ 4,319,324456,970216,34246,27931,94427,633

300

5,098,792

3,671,741755,720155,20640,30422,15821,08017,21915,2256,9565,6635,4174,4564,4253,442

–615

4,729,627

$ 369,165


To the Members of Petroleum Technology Alliance Canada:

We have audited the accompanying financial statements of Petroleum Technology Alliance Canada, which comprise the statement of financial position as at December 31, 2016 and the statements of operations, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of Petroleum Technology Alliance Canada as at December 31, 2016 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Calgary, Alberta Calvista LLP Chartered Professional Accountants

MEMBERS PTAC’s membership was comprised of 203 active members at year-end 2016.

Associations (8)• Canadian Association of Petroleum Producers (CAPP)• Canadian Energy Pipeline Association (CEPA)• Canadian Geothermal Energy Association (CanGEA)• Environmental Services Association of Alberta (ESAA)• Innovate Calgary• Kinetica Ventures• Petroleum Services Association of Canada (PSAC)• TECTERRA

Producers (19)• Athabasca Oil Corporation• Brion Energy• Canadian Natural Resources Limited • Cavalier Energy Inc.• Cenovus Energy Inc.• Chevron Canada Resources• ConocoPhillips Canada• Devon Canada Corporation• Encana Corporation• Enerplus Corporation• Husky Energy Inc.• Japan Canada Oil Sands Limited • NAL Resources• Nexen Energy ULC• Quicksilver Resources Canada Inc.• Repsol Oil and Gas Canada Inc. • Statoil Canada Ltd.• Suncor Energy Inc.• UGR Blair Creek Ltd.

Government (11)• Alberta Department of Energy• Alberta Economic Development and Trade • Alberta Energy Regulator• Alberta Environment and Parks• British Columbia Oil and Gas Commission• CRA Canada Revenue Agency – Calgary CTSO SR & ED• Environment Canada• Government of Ontario – Energy Connections• National Research Council – Industrial Research Assistance Program

• Saskatchewan Ministry of Energy and Resources• Alberta Innovates – Energy and Environment Solutions

Individuals (13)• Scott Bell• Sean Bullen• Jamie Callendar• Bernard Dumanowski• Sonia Glubish

• Nielle Hawkwood• Eric Lloyd• Tyler Malden• Ken Putt• George Rhodey• Earle Shirley• Murray Todd• Peter Zimmerman

Learning Institutions (5)• Carleton University• Innovation Support at the National Institute for Nanotechnology• SAIT• University of Alberta• University of Calgary

Research Providers (14)• Alberta Innovates – Technology Futures• Alberta Sulphur Research Ltd.• ANSYS, Inc.• Canada Chemical Corporation• Canada Institute for Photonic Innovations• fRI Research• Gas Technology Institute• Genome Alberta• Innocorps Research Corporation• Natural Resources Canada• Petroleum Technology Research Centre• Priddis Environmental Solutions Ltd.• Saskatchewan Research Council• zEroCor Tubulars Inc.

Transport/Midstream (2)• Keyera Energy Ltd.• TransCanada Pipelines Ltd.

Venture Capital (1)• First Merchants Capital Partners Inc.

Service and Supply (130)• 3M Canada – Oil and Gas Division• Acceleware Ltd.• Accurata Inc.• Advanced Flow Technology Inc.• Advisian – Environment• Agar Canada Corporation Ltd.• AgriPower Inc.• Amec Foster Wheeler Environment & Infrastructure• AMGAS Services Inc.• ARCADIS Canada Inc.• Area 51 Machine Design Inc.• ASL Environmental • Atlantis Research Labs Inc.• Bayshore Petroleum Corp.• BGGoPlan Inc.• BgtL LLC

• Black Gold Rush Industries• Blair Air Systems Inc.• Blue Source Canada ULC• Blue Spark Energy• Boreal Laser Inc.• Calscan Energy Ltd. • Canyon Technical Services Ltd.• Cap-Op Energy Inc.• ChemBioPower Ltd.• Clearstone Engineering Ltd.• Combustion Solutions Inc.• Computer Modelling Group Ltd.• Core Laboratories Canada Ltd.• C-Sinc Technologies Ltd.• Dashboard Remote Monitoring• Deloitte – Research and Development, Tax• Eagle Sky Energy Services Ltd.• Easwara Origins Corp.• Energy Futures Network• Envirosoft Products Inc.• Envirotech Engineering• Equilibrium Environmental Inc.• Expansion Power• Extreme Telematics Corp.• Ferus Inc.• FieldCap Inc.• Finning Canada• FLIR System Inc.• Foro Energy• Fractical Solutions Inc.• Gas Liquids Engineering Ltd.• GEM Services Inc.• geoLOGIC Systems Ltd.• GHG Solutions Corp.• Global Analyzer Systems Ltd.• Globotics Industries Inc. • GO Pal Emergency Management Services • GO Technologies Ltd.• Golder Associates• Gowling WLG• Greatario Covers Inc.• GreenPath Energy Ltd.• GSA Environmental Ltd.• H2Safety Services Inc.• Halliburton – Production Enhancement• Harris Corporation• Hawkeye Industries Inc.• Hicks & Associates Intellectual Property• Higher Ground Consulting• IBM Canada – Energy Branch• Ingu Solutions Inc.• INO• Integrated Environments (2006) Ltd.• Integrated Sustainability Consultants Ltd.• Intelligent Spools Inc.• Interface Fluidics Ltd.• Intermap Technologies Corporation• ISIT International• Kairos Aerospace

• Katch Kan Ltd.• Kenilworth Combustion Ltd.• KMPG High Technology Practice Group• LCO Technologies• LOOKNorth• LuxMux Technology Corporation• Major Drilling Group International Inc.• Matrix Solutions Inc.• Maxxam Analytics• MBM Intellectual Property Law• McCarthy Tetrault LLP – Technology Group• ME Resource Corp• M-Flow Technologies Ltd.• Millennium EMS Solutions Ltd.• Nakeyan Environmental Consulting Inc.• New Paradigm Engineering Ltd.• Newalta• NineSigma• Novas Energy Inc.• Optimum Production Technologies Inc.• Paradox Access Solutions Inc.• PetroJet Canada Inc.• Portfire Associates Inc. • Process Ecology Inc.• Pure Elements Environmental Solutions• Ramboll Environ Canada Inc.• R.I.I. North America Inc. • RJ Oil Inc.• ROSEN Canada Ltd.• RWDI Air Inc.• Schlumberger of Canada Ltd.• Silvacom• Sky Hunter Corporation• SNC Lavalin – Environment and Water• SNC Lavalin – Studies and Developmental Projects• Solstice Canada Corp.• Spartan Controls Ltd – Efficiency Group• Stantec• Terra Water Systems LP• Terrapro Group Inc.• Tetra Tech Inc.• The Delphi Group• TOG Systems Ltd.• Total Combustion Inc.• Trace Associates Inc.• Transworld Technologies Inc.• TSGI Corporation• Tundra Process Solutions Ltd.• Veolia Water Technologies• VizworX Inc.• Wave Control Systems Ltd.• Westview Engineering• Winterhawk Technologies Ltd.• Wison Offshore & Marine (Canada)• WSP Global Inc.

PersonnelSoheil Asgarpour, Ph.D., FCAE, FCIM, P.Eng.

President(403) 218-7701

[email protected]

Katie Blanchett Operations Manager

(403) [email protected]

Marc GodinTechnical Advisor


Kristie MartinTechnical Consultant


Lorie MayesEnvironmental Research Coordinator and Web Site


Jeff O’RourkeAccountant


David SealockVice President Research and Development


Tannis SuchDirector, Environmental Research Initiatives


FOR FURTHER INFORMATION, PLEASE CONTACT: PTAC Petroleum Technology Alliance CanadaSuite 400, Chevron Plaza, 500 Fifth Avenue SWCalgary, Alberta, Canada T2P 3L5

Main: 403-218-7700 Fax: 403-920-0054 Email: [email protected] www.ptac.org

ANNUAL REPORT - PTAC

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