B.C. Oil and Gas Report 2015

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B.C. Oil & Gas Report • 20156

B.C. Oil & Gas Report 2015is published by:

DEL Communications Inc.Suite 300, 6 Roslyn RoadWinnipeg, ManitobaCanada R3L 0G5

President David Langstaff

ASSoCIAtE PubLIShER Jason Stefanik

Managing editor Shayna Wiwierski [email protected]

sales Manager Dayna oulion

account rePresentatives Jennifer hebert Mic Paterson Anthony Romeo Colin James trakalo

Production services provided by S.G. bennett Marketing Services www.sgbennett.com

art director Kathy Cable

layout & design Joel Gunter

advertising art Dana Jensen Sheri Kidd

cover photo courtesy of the Port of Prince rupert.

© 2015 DEL Communications Inc.all rights reserved. contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher.

While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher in no way guarantees nor warrants the infor ma tion and is not responsible for errors, omissions or statements made by advertisers. opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

Publications Mail Agreement #40934510Return undeliverable Canadian addresses to:DEL Communications Inc.Suite 300, 6 Roslyn RoadWinnipeg, Manitoba R3L 0G5Email: [email protected]

Contents

bRItISh CoLuMbIA

Oil & Gas Report 2015

Printed in Canada | 09/2015

10 Message from the editor, Shayna Wiwierski

12 Message from the B.C. Premier, The Honourable Christy Clark

16 Message from the B.C. Minister of Natural Gas Development, The Honourable Rich Coleman

18 Message from the Minister of Aboriginal Relations and Reconciliation, John Rustad

20 BC Jobs Plan - Creating jobs and opportunities

22 Oil and natural gas development: Done responsibly for the right reasons

24 LNG-Buy BC connecting local businesses with LNG opportunities

26 BC Oil and Gas Commission studying induced seismicity

30 AltaGas to invest over $1 billion in natural gas processing and export infrastructure in B.C.

32 Prince Rupert awaits LNG development news

34 A new regime: Bill 12 grants province authority over B.C. LNG port development

36 Strength in numbers

38 B.C. leads Canada in economic growth: What role will LNG play?

40 Canadian oil is down, but not out

42 Financial incentive for B.C.’s LNG industry

44 LNG in Prince Rupert: The birth of a new industry in British Columbia

46 Made in B.C. - LNG Buy BC program connecting B.C. businesses with LNG opportunities

48 Why the Express Entry to British Columbia System is important to the LNG industry

49 Keystone XL in temporary limbo following presidential veto

50 Oil industry will rebound: It’s time for North America to act like an energy superpower

54 Is it too late for B.C. LNG?

56 The growing contribution of the oil and gas services sector – How big is it?

58 SPE ramps up supportive benefits for the Canadian oil and gas industry

60 Levelling the playing field: A Q&A with Art Jarvis, executive director of ESBC

62 The College of New Caledonia: A cornerstone of B.C.’s economic development

63 Training the next generation of skilled tradespeople

66 Fact or fiction: B.C.’s ICI construction sector on the future of LNG

68 Access to largest gas reserves in B.C. receives long-awaited upgrades

71 Is regulatory harmonization possible across provinces? It depends. BC Safety Authority

72 Why wait for B.C. LNG? Putting natural gas to work in the Northern Rockies

74 Are risks associated with LNG in the eye of the beholder?

75 Apprenticeship programs: Training the futures of skilled trades in B.C.

76 B.C. company turns up the heat on oil and gas projects

78 Relaxing systems for fluid transfer under ship motions

80 Maintaining a safe and healthy workplace

82 Innovation at McElhanney Land Survey’s Fort St. John branch

84 Efficiency through innovation

86 Little to no environmental impact: Remote building solutions that leave operating sites in their natural state

89 Pipelines are still the safest alternative

90 Sand management solved by innovative Canadian filtration system

92 Boilermakers co-operate to get the job done

94 High-tech simplifies safety and saves money

96 SDI expanding into new global markets

98 Tailored communication solutions for the north coast and beyond

100 A comprehensive solution for workforce logistics management

102 Simple solutions for your complex excavations

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106 Through the challenging terrain, LHI TutL’it are corridor specialists

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Editor’s mEssagEshayna Wiwierski

there’s a lot happening right now in b.C.

LNG is making some serious headway as the province gears up to create an industry that

will elevate the provincial economy.

Northeast british Columbia is home to an enormous supply of natural gas, so much that there

is enough to supply energy needs in Canada and around the world for more than 150 years.

Since the need for energy is increasing globally, particularly in Asian economies, b.C. is able to

meet this demand, and plans to be a global leader in energy growth. but, as we will learn in this

issue of the B.c. oil & gas report, setting up the province for successful LNG export isn’t so easy.

We take a look at a variety of hot-button issues in this edition of the magazine. Whether it’s

cementing relationships with different groups around the province, or making sure that b.C. has

enough people to cover the immense workforce needed, there is a lot of activity going on.

I truly hope you enjoy the 2015 edition of the B.c. oil & gas report and make sure to visit us

online at bcoilandgas.com to learn more about oil and gas activity around the province.

Yours truly,

Shayna Wiwierski

[email protected] S

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mEssagE from thE B.C. PrEmiErthe Honourable christy clark

they say success is what happens when good fortune meets hard

work.

british Columbia has the good fortune to have an abundant

supply of natural gas – but to build a made-in-b.C. LNG industry, create

100,000 jobs for british Columbians and more opportunities for commu-

nities and businesses across the province – we’re working around the clock.

Around the world, demand for energy is growing fast, particularly in

Asia, where millions of people are being lifted out of poverty. As Canada’s

Asia-Pacific Gateway, british Columbia is uniquely well positioned to meet

this demand. Compared to u.S. ports, Vancouver and Prince Rupert save

shippers up to 58 hours of travel time to Asia, and are ice-free and deep sea

all year round. the lower average temperature in northern british Colum-

bia than other jurisdictions helps lower operating costs and increase ener-

gy efficiency. All these competitive advantages build on our vast supply of

natural gas, which continues to grow as exploration technology advances.

the b.C. government committed to building an LNG industry only two

years ago – and in that short time, we’ve come a long way. this past year

we put the legislative framework in place to give proponents the certainty

they need. We announced the LNG tax income that represents a fair, long-

term return for british Columbians. We introduced greenhouse gas bench-

marking that will make b.C.’s LNG facilities the cleanest in the world. We

launched the b.C. Skills for Jobs blueprint to make sure british Columbi-

ans are first in line for jobs, and that proponents would have access to a

deep pool of skilled, talented labour.

that work is starting to pay dividends. In June, Pacific Northwest LNG

(a partnership led by PEtRoNAS) announced it was resolved to move for-

ward with a Final Investment Decision. this would mean a $36 billion in-

vestment – the largest from the private sector in british Columbia’s history.

this positive decision is the latest and boldest step towards a prosperous

future. If five LNG plants are built in b.C., it would create a total invest-

ment of $175 billion and create up to 100,000 jobs. this economic activity

would contribute up to a trillion dollars to the province’s gross domestic

product. When we started pursuing LNG two years ago, there were two pro-

posals; today we have 19 project proposals with more than 30 proponents.

there is still work to do. We have to ensure First Nations communi-

ties share equally in the benefits of economic development, and that LNG

projects are developed with the highest standards of environmental protec-

tion and enhancement.

two years ago, critics said b.C.’s LNG industry was a pipe dream. today,

we’re closer than ever to realizing that dream – and creating opportunity

for generations. S

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mEssagE from B.C. ministEr of natural gas dEvEloPmEntthe Honourable rich coleman

Building a gloBal EnErgy industry at homE

Despite the size and complex-

ity of the global economy, one

thing underpins its momen-

tum: energy.

All forms of energy are required to

maintain our way of life, and demands

are increasing every day as economies

grow and become interconnected.

Now, more than ever, british Colum-

bia is poised to be part of this global en-

ergy marketplace with an emerging lique-

fied natural gas industry making strides

across the province.

Economic benefits will be far reaching.

the export facilities proposed represent

the largest capital investments b.C. has

ever had, and final investment decisions

are nearing.

once in operation, each LNG facil-

ity will have permanent positions to be

filled. they will require highly skilled

and technically qualified employees to

successfully manage and operate this

new industry.

based on the development of five proj-

ects, our analysis indicates up to 100,000

jobs will be created, including 58,700

positions in construction. upwards of

$12.5 billion has already been invested,

supporting jobs linked to exploration,

production, processing and transporta-

tion.

obviously the demands on our labour

force are increasing. training is essential

to ensure british Columbians are first-in-

line for future job openings. the Skills

for Jobs blueprint details how the Gov-

ernment of british Columbia is priori-

tizing education and training so young

adults are given every opportunity to be

employed in a trade or directly within

the industry moving forward.

Support from our provincial govern-

ment also includes the LNG-buy bC

program which was created for compa-

nies across the province to connect to the

business side of LNG development. An

online tool allows b.C.-based businesses

to profile their goods and services to pro-

ponents and the industry, so connections

can be made and contracts can be signed.

First Nations are making those con-

nections, creating strategic partnerships

with industry and working closely with

the provincial government to be part

of new development. Pipeline benefits

agreements have already been signed

and a plan for skills training has been

put in place, with a new $30-million

fund for community-based programs.

the approach is all part of our compre-

hensive plan to work with First Nations

to facilitate economic prospects along-

side industry growth.

these efforts and more will be a focus

of the Province’s international conference

– clean energy. reliable Partner – this fall.

on october 14-16, 2015, participants

from all over the world will congregate

in Vancouver and take part in three days

of thematic discussions. the most influ-

ential LNG proponents and global com-

panies will take part. A larger tradeshow

is also planned, with elements to further

education and awareness.

there has been a lot said about global

energy prices this past year but the fact re-

mains, demand for energy and specifical-

ly clean-burning natural gas, is growing.

the long-term economics for diversifying

british Columbia’s natural resource sec-

tor are strong as evidenced by the activity

underway now and the interest that con-

tinues to shine on our province’s prospec-

tive LNG future.

Government, industry, First Nations,

stakeholders – we are all championing a

prosperous future for british Columbia.

Let’s keep the momentum going to ensure

this generational opportunity is available

to our children and grandchildren.

to read more about B.c.’s skills for Jobs

Blueprint, visit: www.workbc.ca/Job-seekers/

skills-and-training/B-c-%e2%80%99s-

skills-for-Jobs-Blueprint.aspx.

to register with lng-Buy Bc, visit: engage.

gov.bc.ca/lnginbc/lng-buy-bc-program/.

For more information about lng, and to

register for the 2015 international lng

conference in vancouver, visit:

www.lnginbc.ca. S

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mEssagE from thE ministEr of aBoriginal rElations and rEConCiliationJohn rustad

Working With first nations on natural rEsourCE dEvEloPmEnt

the heart of the b.C. economy

has, and will continue to be,

resource development. A key

question at the heart of the relationship

with First Nations in british Columbia

is whether we can and will be effective

stewards of these resources together.

First Nations leaders from all cor-

ners of the province have told me the

answer is yes – they want to participate

in sustainable economic development

and share in the wealth created. As we

work to bring the incredible liquefied

natural gas opportunity to life in british

Columbia, I hear time and again from

First Nations that they want to partici-

pate so they can improve prospects for

their people and conditions in their

communities.

the First Nations leaders I work with

want to grow the economy in ways that

are sustainable, respectful of the envi-

ronment, their traditions and values,

and provide social and economic ben-

efits for their communities. they want

to be engaged early in a collaborative

approach and included in the planning

and pace of development.

First Nations have been left out of

economic growth for far too long. As

we continue to make progress towards

reconciliation, we’re working hard to

change this, particularly in the context

of developing a new LNG export indus-

try. our LNG work with First Nations is

premised on three pillars:

• Offering skills training and creating

jobs in communities that can directly

benefit from LNG development;

• Enhancing environmental steward-

ship opportunities and land manage-

ment; and

• Providing financial benefits that en-

courage economic growth so First

Nations can improve the programs

and services available to community

members.

With emphasis on LNG job readiness,

the provincial government is investing

up to $30 million in skills training fund-

ing over three years to help members of

Aboriginal communities access family-

supporting jobs. the need for Aborigi-

nal skills training is underscored by

the fact that Aboriginal youth are b.C.’s

fastest-growing demographic, a poten-

tial powerhouse in our future workforce.

First Nations leaders tell all of us that

they don’t want development to come

at the expense of the environment.

For over a year now, the Province has

worked hand-in-hand with First Nations

and industry to create the LNG Environ-

mental Stewardship Initiative to address

First Nation priorities and establish a

long-term environmental legacy.

our government, First Nations and in-

dustry are working together to improve

certainty for project development, im-

prove social and economic conditions for

Aboriginal communities, and put in place

a positive environment for investment –

investment that contributes to the high

quality of life british Columbians enjoy.

Many companies in the natural gas and

LNG sectors have been engaging First Na-

tions early and often in their project de-

sign and have committed to negotiating

impact benefit agreements with First Na-

tions. this inclusive and collaborative ap-

proach is how progress is made in natural

resource development. Meanwhile, the

Province has reached one or more pipe-

line benefits agreement with nearly every

nation across the North along the pipe-

line routes.

the First Nations Limited Partner-

ship is an excellent example of what can

be achieved when we work together. An

historic milestone was achieved this year

when all 16 nations along the proposed

Pacific trail Pipeline route joined with in-

dustry partners, Chevron and Woodside,

in support of the project.

First Nations are partners in resource

development and, together, we are forg-

ing a path to progress. these partnerships

are built on respect, trust and shared

prosperity; elements that move us closer

to reconciliation with First Nations, and

a brighter future for all british Columbi-

ans. S


BC JoBs Plan – CrEating JoBs and oPPortunitiEs

british Columbia is expected to

be one of the leaders in Canada

for economic growth in 2015,

and our government is working hard

to help communities and businesses

throughout the province reach their eco-

nomic potential.

b.C. has amongst the highest small

business confidence numbers in Cana-

da and is second in the country in GDP

growth according to preliminary 2014

numbers. We have tabled three consecu-

tive balanced budgets and have main-

tained our triple-A credit rating. b.C. is

a good place to do business.

to keep our economy diverse, strong,

and growing, the bC Jobs Plan is build-

ing on the strengths of eight of our prov-

ince’s key sectors using our educated

and skilled workforce. those eight sec-

tors are: Agrifoods, Forestry, Mining and

Energy, Natural Gas, International Edu-

cation, technology and Green Economy,

transportation, and tourism.

We are developing our competitive

advantages in each of those sectors

by focusing on three objectives. First,

working with employers and communi-

ties to enable job creation throughout

b.C. Second, expanding markets to our

goods and knowledge-based services in

Asia and other priority markets. third,

working to strengthen our infrastructure

to get goods to market.

to move towards these objectives we

have added four cross-sector areas of fo-

cus to the Jobs Plan: Aboriginal People

and First Nations, International trade,

Manufacturing, and Small business.

We all recognize that liquefied natu-

ral gas (LNG) is a once-in-a-lifetime

chance to continue with strong econom-

ic growth and to provide employment

opportunities throughout b.C. over the

next 10 years, the province is going to see

the development of hundreds of major

projects, and the LNG sector alone could

generate 100,000 jobs – including more

than 58,000 construction jobs – by 2024.

to capitalize on those opportuni-

ties, we have created the LNG-buy bC

program. Its aim is to ensure b.C. busi-

nesses have the tools they need to con-

nect with the opportunity LNG offers. As

part of this program, to help businesses

raise their profile to connect and benefit

from LNG investments, we launched the

LNG-buy bC online tool at LNGbuybC.

ca. this tool currently has 585 compa-

nies registered and is a great way to help

b.C. businesses, especially small and me-

dium-sized companies, to promote their

products and services to investors and

make important business connections.

Recently, Premier Christy Clark an-

nounced an agreement between the gov-

ernment of b.C. and Pacific NorthWest

LNG that sets the stage for a potential uS

$36-billion investment in northern b.C.

on June 11, 2015 Pacific NorthWest LNG

announced their commercial investment

decision, a further important step to-

wards building a liquefied natural gas ex-

port facility in Prince Rupert. Developing

our LNG industry will result in some of

the largest private-sector investments in

british Columbia’s history, stimulating

economic activity throughout our prov-

ince like never before.

While there is environmental work

and First Nations engagement ahead,

this is a positive step and a strong show

of confidence in b.C.’s diverse and grow-

ing economy. that’s why we’re working

hard to make sure british Columbians

benefit with family supporting jobs.

Growing the LNG sector will mean

increases to local tax bases. And with

this tax growth, local governments will

be able to diversify their economies be-

yond the resource industries. With $7.3

billion in contributions to our economy

and employment of 132,200 british

Columbians, one area of diversification

should be into tourism-related activities.

In 2014, there were 250,000 more people

that visited b.C. than previous year – that

is a 5.3 per cent increase over 2013.

Keeping b.C. at the forefront of eco-

nomic growth in Canada takes a lot of

planning and hard work. Whether it’s the

bC Jobs Plan, investing in LNG, or capi-

talizing on our tourism industry, our gov-

ernment is committed to keeping british

Columbia as one of the best provinces to

live and to do business in the country.

For more information on the Bc Jobs Plan,

please visit www.BcJobsPlan.ca. For more

information on Bc skills for Jobs Blueprint,

visit www.workbc.ca/skills. S

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oil and natural gas dEvEloPmEntdone responsibly for the right reasons By geoff Morrison, Manager, British columbia operations, canadian association of Petroleum Producers

british Columbia has a long, suc-

cessful history of responsible

natural gas development that’s

contributing significantly to the econom-

ic prosperity of the province.

We have world-class resources, and we

develop them under an excellent regula-

tory regime and world-leading industry

best operating practices. these are de-

signed to ensure natural gas and oil are

produced in an environmentally and so-

cially responsible manner.

upstream natural gas and oil opera-

tions in british Columbia are regulated

by the bC oil and Gas Commission, an

independent regulator with a mandate

to ensure oil and natural gas resources

are developed in the best interest of the

province, protecting the public and the

environment.

Natural gas and oil resources have

been developed in northeastern b.C. for

decades. Wells have been hydraulically

fractured since the early days, but innova-

tion in drilling has meant more gas has

become commercially viable. technol-

ogy enables industry to access natural gas

from the source rock deep underground

in addition to conventional geological

formations.

transparency is important to ensure

public trust, and as of January 1, 2012 the

public has been able to review the com-

position of fracturing fluid and water

volumes used in any well drilled in b.C.

at www.fracfocus.ca. After decades of op-

erations in b.C., about 9,000 wells have

been hydraulically fractured without a

documented case of impact on drinking

water, according to the b.C. oil and Gas

Commission (oGC).

the oGC publishes a quarterly oil and

Gas Water use Summary, which reports

all short-term water use and water license

data. building on the existing strong wa-

ter stewardship regime of the oGC, and

five ministries with water management

responsibilities, the b.C. government an-

nounced the Northeast Water Strategy in

spring 2015. the strategy is a long-term

approach for the sustainable use and

management of water resources by all re-

source sectors in Northeast b.C.

the strategy’s goal is “the responsible

use and care of water resources through

conservation and sustainable practices to

ensure human and ecosystem needs are

met now and into the future”.

the b.C. Ministry of health’s North-

east oil and Gas human health Risk

Assessment Study was released in March

2015 after three years of consolations

and research. It included an extensive

review of peer-reviewed scientific litera-

ture, regulatory and policy frameworks,

and industry operating practices focus-

ing on assessing emissions from natural

gas processing plants, and oil and natu-

ral gas production facilities. the study

concluded public health risks associated

with the development of natural gas and

oil in the region around Fort St. John are

low.

the International Energy Agency esti-

mates that global demand for natural gas

could increase up to 55 per cent by 2040.

b.C. produces four billion cubic feet per

day, or 1.5 trillion cubic feet annually

– one year of natural gas production is

enough to meet the residential demand

of the entire province for 21 years.

b.C.’s ability to operate at a leading

standard in combination with abundant

energy resources means there is an op-

portunity to supply global markets. For

example, the Montney basin is just one

of four major unconventional natural gas

basins in the province and has an esti-

mated 271 trillion cubic feet of market-

able gas.

of the 1.5 trillion cubic feet produced

each year, 16 per cent is used in b.C., 43

per cent goes to the rest of Canada and 41

per cent is exported to the united States.

our traditional markets in Central Can-

ada and the united States, however, are

declining because of abundant supplies

closer to these markets. For example, the

u.S. Energy Information Administration

estimates that by 2030, the u.S. will be

producing enough natural gas to match

the consumption of the entire united

States and all of Canada.

While the entire province benefits sig-

nificantly from resource revenues, roy-

alties and land right sales, many north-

eastern b.C. communities depend on

the natural gas industry to support their

families.

According to the Canadian Energy

Resource Institute, b.C.’s natural gas in-

dustry employs 12,000 people and that

number could rise to 40,000 by 2035.

the provincial government states that in

the 2014/15 fiscal year the natural gas in-

dustry paid nearly $1.4 billion in royal-

ties and rights acquisitions. this money

helps pay for public infrastructure such as

roads, schools and hospitals.

Economic benefits and responsible

resource development are achievable to-

gether, and b.C. is in a position to con-

tinue to develop resources at a world-

class standard all the while providing

economic growth, jobs, and government

revenues. S

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lng-Buy BC ConnECting loCal BusinEssEs With lng oPPortunitiEsBy gordon Wilson

In September of 2013 at the union

of bC Municipalities’ annual con-

ference, british Columbia’s Premier

Christy Clark announced the LNG-buy

bC program, and within two months

had appointed an advocate with a man-

date to ensure that b.C. businesses un-

derstood – and were properly prepared

for – the magnitude of the opportunity

that would materialize with the export

of b.C.’s huge natural gas reserves in the

form of liquefied natural gas (LNG).

the building of LNG export facilities

is a global industry with well-estab-

lished procurement practices and supply

chains. Project management companies

(EPCs) tend to award contracts to com-

panies with whom they have established

relationships with in order to provide a

greater certainty with respect to supply

and to avoid cost overruns caused by a

break in the supply chain.

Given that reality, it was a bold move

to introduce the LNG-buy bC program.

Where other jurisdictions tried to legis-

late procurement practices in order to fa-

vour domestic suppliers, tying the hands

of industry causing prices to skyrocket,

the LNG-buy bC program has at its core

a firm belief that the entrepreneurial

spirit, skills, and innovative abilities of

b.C. businesses will, given a fair oppor-

tunity to compete, lead to a high level

of success regardless of where they enter

within the long supply chain. this pro-

gram is already showing dividends.

While no formal final investment

decision (FID) has yet been made, no

one should underestimate the positive

economic benefits that have already oc-

curred.

Imagine for a second that LNG devel-

opment was like NhL hockey, where a

FID is the dropping of the puck to start

the game. Few would deny the huge

economic benefits that accrue to those

preparing for the game along with wide-

spread economic benefits that result,

both directly and indirectly, during and

after the game. the same can be said for

b.C. preparing for the LNG opportunity.

there are even now, numerous ex-

amples of b.C. businesses from the very

large to single proprietorships that have

found success in this early stage of LNG

development, and the LNG-buy bC pro-

gram has played an important role in

making sure that companies that want

to engage, fully understand what will be

required of them if they are to make a

bidders’ list.

Local contractors not only have com-

parable skills and ability, but they pos-

sess the most valuable of all assets: local

knowledge.

InletExpress in Prince Rupert is a per-

fect example of local entrepreneurial

spirit combined with sound business

acumen and local knowledge.

B.C. Oil & Gas Report • 2015 25

owner and president John turpin

built up a small fleet of boats in order

to supply hydroelectric, mining and for-

estry projects in the Prince Rupert area.

When faced with the market downturn,

he saw LNG on the horizon and decided

to change course.

turpin’s first approach made a request

to use his boats to undertake marine

survey work for a proponent company.

Why bring up a boat from California

when local craft will do? this approach

was met by a wave of restrictions and re-

quirements all well documented in the

proponent’s bid requirements.

undeterred, turpin worked with lo-

cal aluminum fabricators to design and

build, in record time, a superstructure

for his boat that would meet the re-

quirement of the proponent. the best

measure of how impressed the propo-

nent company was with this man’s in-

novative and entrepreneurial approach

to business can best be measured by the

amount of work he has been awarded.

And, that’s not the end of the story. Inle-

tExpress has successfully won contracts

with many LNG proponent companies,

and is among the most highly regarded

b.C. marine suppliers in the region.

the LNG-buy bC program encourages

and attempts to provide b.C. companies

with sufficient information and support

to emulate the kind of business acumen

demonstrated by John turpin. It works

to ensure b.C. companies are properly

informed and can participate in the real

opportunities that LNG development

will bring at every level of the supply

chain, and engages with the LNG indus-

try to articulate the real benefit that local

knowledge and suppliers will bring. S

Growing with you in British Columbia

canam.comFort Nelson Fort St. John

Grande Prairie Swift Current

Calgary Edmonton


BC oil and gas Commission studying induCEd sEismiCity

the bC oil and Gas Commission

(commission) took a leadership

role in the detection and miti-

gation of induced seismicity associated

with unconventional gas development

with release of the report investigation of

observed seismicity in the Montney trend.

the report builds on a 2012 induced

seismicity investigation in the horn

River basin, which determined that low-

level seismic activity was caused by fluid

injection during hydraulic fracturing

near pre-existing faults.

As a result of recommendations from

the horn River basin investigation, eight

new seismograph stations – funded by

the commission, Geoscience bC, and

the Canadian Association of Petroleum

Producers – were added to the existing

two Canadian National Seismograph

Network (CNSN) stations to provide

more accurate detection and location

capabilities. With the new stations, the

CNSN began recording many more

lower magnitude events than previously

recorded, enhancing the commission’s

ability to track seismicity. this ability led

to the Montney study, which focuses on

seismic events tracked between August

2013 and october 2014.

the investigation found that out of

about 7,500 hydraulic fracturing stages

during the study period, less than a

quarter (0.15) of a per cent resulted in

seismic events that were felt (11). over-

all, induced seismicity that is taking

place in northeast b.C. is very low level

and has not resulted in any injuries,

damage to surface structure or vertical

wellbore integrity issues. From Aug. 1,

2013 to oct. 10, 2014, Natural Resources

Canada (NRCan) recorded 231 events in

the Montney ranging from Magnitude

1.0 to 4.4. thirty-eight of these events

are believed to have been triggered by

a water disposal well northwest of Fort

St. John. Another 193 of these events,

magnitudes 1.0 to 4.4, were triggered by

hydraulic fracturing operations in the

Montney.

Steps the commission takes related to

seismic activity in the northeast include:

• Respondingtoseismiceventsassoon

as they appear on the NRCan website

or a private dense seismograph array.

Reports from the public are also inves-

tigated.

• Theseeventsarecomparedalongside

locations of oil and gas operations.

• Ifthereisatemporalandgeographic

similarity between the seismicity and

oil and gas activities, the operators

are contacted with a request for more

data. this data is analyzed.

• Alldataisusedbythecommissionto

closely monitor seismic activity in ar-

eas of oil and gas operations. Actions

are taken if and when required.

• Further steps may include deploy-

ment of dense arrays, which study

seismic activity in greater detail, or

the moderation of hydraulic fractur-

ing parameters, which can include

limiting well pressures or suspension

of operations.

Currently, the commission is work-

ing on implementing recommendation

from the investigation, which include

increasing regulatory scrutiny for dispos-

al wells, encouraging the deployment of

high-resolution dense arrays, enhancing

regulations to address induced seismic-

ity, and increasing the availability of

public data. the commission has also

formed partnerships with Natural Re-

sources Canada, the university of british

Columbia, and Geoscience bC to study

the effects and relationships between

seismicity and hydraulic fracturing and

water disposal.

read the report at www.bcogc.ca. S

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altagas to invEst ovEr $1 Billion in natural gas ProCEssing and ExPort infrastruCturE in B.C.

Canada’s gas reserves are abun-

dant and world class. the

Montney formation is one of

the largest in the world with expected re-

coverable gas volumes of 449 tcf under

foreseeable economic and technological

conditions. A major shale gas and shale

oil resource, the play remains competi-

tive largely due to its low-supply cost rel-

ative to most other gas basins in North

America.

In today’s gas and liquids market,

we see the demand in traditional East-

ern markets weakening and the united

States becoming more self-sufficient.

As a result of this market shift, Western

Canadian natural gas producers will be

faced with slow volume growth and de-

pressed prices if new markets for natural

gas are not found.

AltaGas expects to invest over $1 bil-

lion in natural gas processing and export

infrastructure in Northeast british Co-

lumbia to better serve producers in the

Western Canadian Sedimentary basin

(WCSb). our growth strategy is simple,

invest in assets that process and move

natural gas and liquids to key markets,

including Asia.

the company processes natural gas

from the prolific Montney region at its

Younger, blair Creek and Gordondale fa-

cilities, which are operating close to full

capacity. Additional energy infrastruc-

ture will be added with the new 198

Mmcf/d townsend shallow-cut natural

gas processing facility, the expansion of

blair Creek, the proposed liquids han-

dling and separation facility near Fort

St. John and planned LPG export capa-

bility from Canada’s West Coast. once

completed, these facilities will provide

producers with a fully integrated offer-

ing to move their products seamlessly

from wellhead to market.

Ferndale lPg facility.


today, AltaGas handles more than

two bcf/d of natural gas. this includes

natural gas gathering and processing,

NGL extraction and fractionation, trans-

mission and storage, and natural gas

marketing. AltaGas is also working with

several parties, including producers and

partners on the development of energy

export infrastructure.

Supporting local and First Nation

communities where we operate is an

AltaGas core value. our philosophy is

to respect the land, share the benefits

and build the friendship. We work co-

operatively with First Nations and other

aboriginal communities in Western

Canada, and over the years have devel-

oped solid long-term working relation-

ships with the tahltan Nation through

our run-of-river hydroelectric projects

in Northwest b.C. and with the haisla

Nation on the development of the long-

term lease and commercial agreements

for the Douglas Channel LNG Project.

AltaGas has also entered into a partner-

ship with the Indian business Corpora-

tion in Alberta to develop the AltaGas

First Nations Development Fund to

support the development and growth of

First Nation communities.

through its investment in Petrogas,

AltaGas began exporting butane to Asia

in 2014, two years earlier than planned

from Petrogas’ Ferndale facility, the only

LPG export facility on North America’s

West Coast. this year, we began export-

ing propane, and plans are in place to

ramp up our export activity to 30,000

bbls/d by the end of 2015. Petrogas’

extensive North American network and

infrastructure has provided AltaGas with

the ability to move its products either

east or west.

to further develop its plans to help

producers reach new markets, AltaGas

has entered into an exclusivity agree-

ment to investigate an opportunity to

build the refrigeration and related in-

frastructure to export propane and bu-

tane from the Canadian West Coast.

the initial phase of this export facility is

expected to ship approximately 25,000

bbls/d with expansion potential. Final

investment decision is expected in 2016.

In Northern british Columbia, Alta-

Gas expects to start up its pilot project to

bring LNG to the region. With an initial

investment of $35 million, the compa-

ny expects to build a network of small

liquefied natural gas facilities. Phase 1

consists of a proposed liquefaction facil-

ity in Dawson Creek, b.C. that will serve

end users in the power generation, space

heating, and oil and gas industries. Alta-

Gas is targeting first deliveries in the fall

of 2015 with capacity of 20,000 gallons

per day.

on the LNG export front, AltaGas is

targeting a commercial operations date

of 2018 for the Douglas Channel LNG

Project to commence LNG exports. the

project, located on the Douglas Chan-

nel near Kitimat, british Columbia, is

a floating liquefaction facility with an

initial export capacity of 550,000 met-

ric tonnes of LNG per year. Gas will be

sourced from Western Canadian produc-

ers and AltaGas processing facilities, and

transported to site on Pacific Northern

Gas’ (PNG) existing pipeline system.

PNG’s customers could see 25 per cent

lower transportation costs on their gas

bill when the pipeline system is fully uti-

lized by the Douglas Channel LNG Proj-

ect. PNG is a wholly owned subsidiary

of AltaGas.

Plans are also underway to grow the

LNG export business to meet producer

needs for export capacity. on June 1,

2015, AltaGas applied to the National

Energy board to export up to one bcf/d

of natural gas from our project develop-

ment site near Kitimat. the application

describes our first phase Douglas Chan-

nel Project, as well as our intent to ex-

pand LNG development up to a total of

1bCf/d through additional liquefaction

facilities and pipeline expansion.

our goal is to provide Western Cana-

dian producers with the opportunity to

earn higher netbacks for their product

by providing fully integrated midstream

services. We will accomplish this by pro-

viding natural gas producers with access

to new markets in Asia, as well as North

America through the development of

infrastructure in british Columbia. As a

company, we are excited about the pros-

pects ahead of us, and look forward to

working with producers to develop West-

ern Canada’s world-class resources. S


PrinCE ruPErt aWaits lng dEvEloPmEnt nEWsBy leonard Melman

one of the most historic eco-

nomic debates in history

is now ongoing within the

province of british Columbia, and it

is no exaggeration to suggest that the

outcome of that debate could have pro-

found repercussions on the province,

on several important special interest

groups, and, most particularly, on the

future of the city of Prince Rupert. the

debate surrounds the process of con-

verting natural gas into liquefied natu-

ral gas (LNG), which could then be

transported to serve enormous markets,

primarily in Asia.

LNG is created when natural gas is

cooled to approximately −162°C at at-

mospheric pressure, becoming a fluid

which can be transported by special

tankers. the entire question is of great

interest because of two factors. First, the

LNG infrastructure is very expensive, re-

quiring enormous investments in plant

construction, railway services, tanker

terminals, expansion of natural gas

drilling activities, and the training and

hiring of many construction, plant and

service personnel. Second, the potential

market for LNG is enormous, estimated

to total several hundred billions of dol-

lars.

the community with the highest

vested interest in the entire LNG plant

development concept would appear to

be Prince Rupert since present plans call

for the first and largest LNG develop-

ment in b.C. to be built there. the city

lies at the western terminus for CN Rail

and their ocean-going port would also

be home to LNG trans-Pacific shipping

operations.

Given its present population of just

under 13,000, it can be seen that a proj-

ect with investments programmed to to-

tal more than $36 billion (according to

present estimates) could virtually trans-

form the entire community. Should the

project go ahead, the community could

finally look forward to important and

sustainable employment growth and a

solid improvement in its economic for-

tunes.

however, there are problems to be

overcome. because of its present rela-

tively small size, the community’s in-

frastructure would be forced to expand

rapidly, putting pressure on the delivery

of utilities, education and environmen-

tal protection services. Prince Rupert’s

climate, being Canada’s wettest and

cloudiest city, could provide difficulties.

In addition, there are other particular

problems which presently remain unre-

solved and which could be the source of

considerable delays before construction

finally begins.

Prince Rupert happens to be located

in a region of scenic splendor with high

mountains, major rivers, huge forests

and abundant wildlife. For this reason,

environmentalists are prepared to do

battle to save the region from any de-

velopments which they believe could

negatively impact the community and

its surrounding areas.

Prince Rupert is also located in the

home area of several First Nations (FN)

peoples and, as this is written in mid-

2015, there is substantial opposition to

the LNG terminal from regional tribes

and organizations.

Despite ongoing controversies, in June

of this year the Province of british Co-

lumbia granted preliminary approval to

the initial LNG project, the C$36 billion

Pacific Northwest LNG Project, planned

for Lelu Island near Prince Rupert and

headed by Malaysian state-controlled gi-

ant Petronas, also including other Asian

corporations Sinopec, JAPEX, Indian oil

Corporation and Petroleum brunei. b.C.

Premier Christy Clark called for a spe-

cial session of the Provincial Legislature

which began meeting in mid-July with

the goal of providing legislative certain-

ty for potential participants. Included

among the major issues to be debated

are present and future taxation and

royalties – guaranteed for at least two

decades, as well as provisions to insure

participants against future political de-

velopments, such as the future election

of a provincial government hostile to

this and other LNG projects.

Important questions continue to swirl

about the Pacific Northwest LNG Proj-

ect. these include a marked slowdown

in the rate of Asian economic expansion

which might reduce ultimate demand

for LNG; still unresolved federal regula-

tory approval and the threat of lengthy

court battles involving environmental

and FN questions. one particular envi-

ronmental and FN concern is the poten-

tial impact of operations on vegetation

and salmon fisheries at Flora bank, ad-

jacent to Lelu Island. the project part-

ners have stated they are committed to

conducting further studies on this issue.

because of these economic and le-

gal questions, the International Energy

Agency predicts a lengthy interval, per-

haps until at least 2020, before any LNG

plant operations in b.C. could begin.

however, we would note that while

important questions remain, because of

the vast sums involved, many powerful

forces in business and government con-

tinue to strongly support the growing

number of potential LNG projects.

Prince Rupert will be watching devel-

opments most intensely. S

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a nEW rEgimEBill 12 grants province authority over B.c. lng port development By Jillian Mitchell

Recent legislation passed to regu-

late liquefied natural gas (LNG)

development on federal port

lands will offer immediate benefit for

two of the province’s largest LNG proj-

ects – the proposed Pacific Northwest

LNG project and the Prince Rupert LNG

project.

Bill 12: the ins & outsbill 12, the Federal Port Development

Act (FPDA), will allow for authority and

enforcement of provincial law on any

LNG development occurring on federal

port lands.

the bill, which was brought to the

b.C. Legislature in February 2015 by

Deputy Premier and Minister of Natural

Gas Development Rich Coleman, cre-

ated a joint federal-provincial arrange-

ment that put a provincial LNG regula-

tory system in place.

under the new legislation, the bC

oil and Gas Commission will take over

regulatory, administrative or judicial

control of industrial activities in b.C.

ports. the localized regulatory body is

anticipated to create a seamless regula-

tory environment for development and

operations, as well as peace of mind for

investors.

According to Minister Coleman, the

province outlined two points of focus

for the bill: first, the creation of LNG

projects that were self-sustaining and

able to cover the costs of implementing

an LNG facility; and second, the practi-

cality of utilizing an experienced govern-

ing body.

“We sat down with the Port Authority

and transport Canada [...] and we came

to the conclusion that since we already

had an agency, it would be better if we

moved to an agreement between us and

the federal government that we would

take over [LNG development and opera-

tions in b.C.’s federal ports],” Coleman

shares. “the oil and Gas Commission

has had the experience of permitting

and working with gas plants for a num-

ber of decades now. they have the exper-

tise.”

Bill 12 & B.C.’s proposed LNG ports

the first to be considered under bill

12 is Pacific Northwest LNG and Prince

Rupert LNG, which together, represent

a $27-billion investment, among addi-

tional economic and social benefits.

With an $11-billion price tag, the

Pacific Northwest LNG port proposed

for Lelu Island would contribute more

than $1 billion annually to federal, pro-

vincial, and municipal governments in

various taxes and royalties. the facility,

which will liquefy and export natural

gas produced by Progress Energy Cana-

da Ltd., is anticipated to create an esti-

mated 330 long-term careers (i.e. facil-

ity operation); 300 new local, spin off

jobs in the community; and upwards

of 4,500 jobs during construction. the

project has been granted a license to

export 19.68-million tonnes of LNG

per year for 25 years beginning in 2019.

Construction is forecast to begin in

2015.

Similarly, bG Group’s proposed

the Bg group’s proposed $16-billion lng facility on ridley island near Prince rupert will create an estimated 3,000 jobs during construction.

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$16-billion LNG facility on Ridley Is-

land near Prince Rupert will create an

estimated 3,000 jobs during construc-

tion, and between 400 and 600 full-time

positions, as well as spin-off jobs within

the community. the site, which will be

built and operated by Spectra Energy, is

anticipated to boast a production capac-

ity of up to 21 million tonnes (nearly 29

billion cubic metres) of LNG per year.

Construction is anticipated to start in

2016, with an in-service date sometime

in 2019.

“We are working to promote and en-

able trade in a way that is environmen-

tally sustainable, socially responsible,

and economically beneficial for Cana-

dians,” says Don Krusel, president and

CEo of the Prince Rupert Port Authority,

the organization that administers both

ports. “Liquefied natural gas is a product

that producers are eager to see moving

to Asian markets. the two developments

under consideration within our jurisdic-

tion obviously signify enormous eco-

nomic potential for our region and the

nation. If these projects proceed, they

would represent another step forward

in the process of diversifying Canada’s

northwest trade gateway.”

the Port of Prince Rupert is North

America’s shortest trade route to Asia,

and current shipping traffic handles over

23 million tonnes of goods. the Port of

Prince Rupert supports 5,840 person

years of employment and contributes

$1.2 billion in total gross domestic

product to british Columbia’s economy.

Bill 12 & the Canada Marine Actbill 12 was designed to complement

transport Canada’s Canada Marine

Act (CMA), more specifically, the 2014

amendments. the CMA, which received

Royal Assent in June 1998, governs the

marine sector in Canada and sets out the

comprehensive legislative framework

for the National Ports System comprised

of 18 independently managed Canada

port authorities. the 2014 amendments

aim to facilitate project development

and future growth at Canada’s marine

ports, specifically those focused on the

development of an emerging liquefied

natural gas industry.

“Regulatory regimes often involve

complex administrative, enforcement

and quasi-judicial bodies and systems.

In this particular case, for liquefied natu-

ral gas regulatory oversight, the province

of british Columbia has an established

and comprehensive regulatory regime in

place to administer and enforce effective

regulatory oversight over the proposed

LNG facilities,” says a spokesperson for

transport Canada. “there is currently

no comparable federal regulatory re-

gime specifically designed to regulate

the design, construction, operation and

maintenance of liquefied natural gas

projects.”

Marine traffic and LNG shipping will

not be affected by the new bill, but will

defer to regulations outlined by the

CMA. S

as part of the spring 2014 trade Mission, Premier christy clark & rich coleman, Minister of natural gas development, spoke at a luncheon that connected lng industry reps.


strEngth in numBErsBy Kylie Williams

First Nations across british Co-

lumbia are partnering with the

provincial government, natural

gas companies and each other to sup-

port, monitor, and reap the benefits of

Liquefied Natural Gas (LNG) develop-

ment projects.

As of June 2015, the b.C. Government

had signed 15 Natural Gas Pipeline ben-

efits Agreements with 11 First Nations.

Numerous benefit agreements between

gas companies and First Nations have

also been finalized. Each agreement is

unique and covers land access, legal ob-

ligations, financial benefits, skills train-

ing and the steps each party will take to

protect the environment.

Deals with Kitselas First Nationthe Kitselas First Nation, whose tradi-

tional territory straddles the Skeena Riv-

er near terrace in northern b.C., signed

a Pipeline benefits Agreement with the

provincial government in December

2014, and a Pipeline Project Agreement

directly with Prince Rupert Gas trans-

mission in April 2015 for multiple proj-

ects spanning their territory.

“over the short term, there’s training,

there’s jobs and a bit of upfront cash,”

explains Kitselas Chief Joe bevan, “Lon-

ger-term it helps our people. We’ll spend

the annual payments on the wants and

needs of the community to create a leg-

acy from this project that will go on for

generations.”

Chief bevan advises other First Na-

tions not to shy away from the negotiat-

ing table, urging them prepare for a long

process and actively seek information

and expertise suited to their situation.

“Each nation needs to work their own

process and everybody needs to feel com-

fortable that their process has taken shape

the way they needed it to,” says bevan.

the nation needed time to find the

right people to negotiate alongside them,

assess the socio-economic impacts, and

explain the environmental process. the

negotiations between Kitselas and its new

partners took two years, with an LNG ed-

ucation campaign taking up most of the

first 18 months.

“We dispelled a lot of myths. once we

finished that series of education we went

from one-third supporting LNG to two-

thirds supporting LNG,” he says.

First Nations collaborationsChief bevan has since become one of

People from the Wet’suwet’en First nation undertake training at Huckleberry Mine. PHOTO COuRTESy OF SHANNON HAIzIMSQuE.


five co-signatories on a new tsimshian

Environmental Stewardship Author-

ity (tESA) announced in July 2015. the

authority includes the Metlakatla, who

have also signed an agreement with

Prince Rupert Gas transmission Ltd.,

and the Kitsumkalum, Gitga’at and Gitx-

aala, who have not.

tESA’s goal is to pool resources and

experience to protect the environment

and extract maximum value from ben-

efit and partnership agreements.

“We noticed the tsimshian were all

having the same issues. Why don’t we

give one voice to this? We have more

strength as a group, and all five nations

at the one table makes it easier for in-

dustry,” says bevan.

A little further east, Wet’suwet’en First

Nation Chief Karen ogen is working to

create a First Nations LNG Alliance of

her own, bringing together all the bands

in b.C. who have signed agreements.

the Wet’suwet’en themselves signed a

Pipelines benefit Agreement with the

b.C. Government in November 2014 for

the Coastal Gaslink Pipeline Project.

“I’m creating a FN LNG alliance to

communicate as much information as

possible about gas pipelines, with an

emphasis on environmental standards.

the key to making decisions, especially

in the north, is having information,”

says ogen.

Advice to gas companiesthe chiefs agree that companies need

to familiarise themselves with the legal

landscape in b.C. as it pertains to First

Nations before they approach, especial-

ly the differences between operating in

b.C. and Alberta. once they understand

the wider First Nations history, the next

step is learning the specific cultural tra-

ditions and systems of government used

by the nation they wish to approach.

“build a solid, trusting, long-lasting

working relationship. this is very im-

portant and goes a long way,” says ogen.

Agreements between First Nations,

b.C. government and gas companies

transporting LNG across b.C. for export

give First Nations a voice and access to

social and economic development, but

environmental protection is foremost in

their minds.

“It doesn’t stop when the negotiations

end, that’s when the real work starts,”

says bevan. S

Kitselas First nation chief Joe Bevan. Frame from “nis ts’edilh (Moving Forward)”.

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Wet’suwet’en First nation chief Karen ogen.

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coastal gaslink (cgl) pipeline project signing at Wet’suwet’en First nation. PHOTO

COuRTESy OF BRANDON THOMPSON.

People from Wet’suwet’en First nation working at imperial Metal’s Huckleberry open-pit copper mine. PHOTO COuRTESy OF SHANNON HAIzIMSQuE.


B.C. lEads Canada in EConomiC groWthWhat role will lng play? By Kylie Williams

british Columbia’s economy is

growing at almost twice what is

forecast for Canada as a whole

this year. Recent Provincial outlook

reports from the Conference board of

Canada say b.C.’s economy will grow by

2.8 per cent in 2015, compared to 1.5

per cent nationally.

A growing manufacturing sector and a

booming housing market, together with

strong consumer demand, is fuelling the

b.C. economy so far in 2015. the num-

bers are impressive, especially since they

don’t yet include the province’s bour-

geoning Liquefied Natural Gas (LNG)

industry.

“there would be a big change if we see

one LNG project go ahead, in terms of

development,” explains Marie-Christine

bernard, associate director for provin-

cial outlook at the Conference board

of Canada. “the construction period

would be very capital intensive, so that

would create a lot of jobs.”

b.C. has 19 proposed LNG termi-

nals and pipelines as of summer 2015.

the biggest is the Pacific NorthWest

LNG plant backed by Malaysian energy

company Petronas, which will likely go

ahead in the next few years.

“the project in total is worth $36

billion. A portion will occur outside of

province, so about $20 billion would be

invested in british Columbia. It’s prob-

ably one of the biggest investment proj-

ects in the province’s history, if not the

biggest,” says bernard.

LNG projects like this one, an-

nounced but not yet approved, haven’t

been included in the board’s forecasts so

far, but they will be in the future. While

their impact is significant, uncertainty

around the province’s emerging LNG in-

dustry remains.

LNG supplies in B.C.b.C. is generously endowed with nat-

ural gas reserves, found mostly in sedi-

mentary basins in the northeast of the

province around Fort St. John and the

Peace River.

“the northeast is the only part of

province to produce natural gas. You

can’t talk about ‘LNG’ until you have

‘NG’, and it comes from here,” says

Jennifer Moore, regional economic de-

velopment officer for the North Peace

Region.

According to an independent report

recently commissioned by the North

gas drilling rig operates in the north Peace region of British columbia.

natural gas compressor station in the north Peace

region of British columbia.


Peace Economic Development Commis-

sion, the northeast contributed nine per

cent of b.C.’s total exports in 2013 with

just two per cent of the population.

“Northeast b.C. is punching well

above its weight class in the provincial

economy,” says Moore, adding that two

LNG plants will double current produc-

tion in the region.

“there is a lot of talk these days about

the development of the northwest –

that’s certainly important – but the de-

velopment in the northwest isn’t going

to matter unless we get the gas out of

the ground here in the northeast,” says

Moore.

Can B.C. compete?british Columbia is a relative late-

comer to the LNG industry, with the

province’s first project not yet approved

and no construction underway. Quite a

number of countries are exporting LNG

already, or will by the time Canada ex-

ports its first tanker.

“Australia has become a very big play-

er in LNG production and have been

very fast in building LNG plants. they

may even replace Qatar as the world’s

largest exporter,” explains Werner An-

tweiler, professor of economics at the

Sauder School of business at the uni-

versity of british Columbia, “the u.S.

is building LNG plants already and they

will come online very soon.”

Antweiler is concerned that when

Canada does come online, they will be

entering an already-crowded market. he

wonders if b.C. gas will remain a viable

economic proposition for the compa-

nies producing, liquefying and trans-

porting it by the time b.C. is ready.

Demand is the critical factorMarket prices are the critical factor

in the LNG equation for the province.

Most of the LNG exported from b.C. is

destined for Asia, where many countries,

for example South Korea, are importing

LNG because they have none them-

selves. China is interested in replacing

coal with natural gas for environmental

reasons, and Japan has been replacing

its nuclear power with natural gas after

the Fukushima crisis.

Antweiler warns oil and gas compa-

nies to be patient, but is positive overall.

“LNG is a long-term play,” he says,

“there will be setbacks, maybe the pric-

es will drop, but they will recover even-

tually and the demand for natural gas

will go up more and more as countries

try to phase out coal and replace it with

something much cleaner. the demand

for natural gas will remain strong.” S

service rig in the north Peace region of British columbia.

2015 economic growth by province (cnW group/conference Board of canada).

ALL PHOTOS COuRTESy OF THE NORTH PEACE ECONOMIC DEVELOPMENT COMMISSION (NPEDC) PHOTO LIBRARy.


Canadian oil is doWn, But not outBy Wade Mcgowan, former chairman, caodc Board of directors

Companies who work in the

hydrocarbon extraction busi-

ness are categorized as being in

the energy sector of the economy. un-

fortunately, they are also categorized in

an industry sector known as “cyclicals”.

the activity level of this sector is influ-

enced by two dominant issues, namely

the “price” received for the commodity

and the “cost” associated to bring that

commodity to market.

the activity level of the energy sec-

tor is highly sensitive to oil and natural

gas commodity pricing. oil is subject to

worldwide pricing pressures, whereas

natural gas has largely been subject to

North American economic pressures.

With the development of facilities to

move liquefied natural gas (LNG) off-

shore coming to the forefront, natural

gas pricing will also become more ex-

posed to world pricing mechanisms,

as export volumes increase in the years

to come. the price received by produc-

tion companies for their commodities is

largely outside of their control.

Production companies require a mini-

mum economic threshold price for their

oil and natural gas production in order

to stimulate activity to bring on new

production. theoretically, in periods

of economic prosperity and expansion,

demand for oil and natural gas goes up,

pricing for oil and natural gas is above

the economic threshold price to stimu-

late activity. our clients have access to

an abundance of money and they are

spending it to bring on new supply. the

drilling and service sector enjoys a high

level of activity which keeps people em-

ployed with great pay, lots of hours, and

paid training.

however, commodity prices are af-

fected by the supply and demand bal-

ance. the drilling and completion tech-

niques developed in the past decade

have truly been revolutionary. these

new technologies have materially al-

tered the supply side of the equation

as the industry has been successful in

unlocking hydrocarbon from reser-

voirs that had previously believed to be

non-productive, much less economic to

produce. these advances have largely

been developed and deployed in North

America and it is where the most signifi-

cant supply side increases have occurred

when compared to the rest of the world.

these advances led to an oversupply

situation in the North American natural

gas market in 2009 and now have led

to an oversupply situation in the world-

wide oil markets. the net result has

been a material reduction in commodi-

ty prices. this will reduce our client’s ac-

cess to cash, they will reduce spending,

and we will go through the contraction

portion of the cycle.

the cost to bring new production

to market in Canada is dependent on

many different criteria, including but

not limited to:

1) Governmental legislation, which in-

cludes taxes and royalties;


2) Governmental bureaucracy, which af-

fects time delay in activity;

3) the productivity of the producing

formation;

4) the quality of the hydrocarbons be-

ing produced;

5) Drilling techniques;

6) Completion techniques;

7) Proximity to existing processing fa-

cilities;

8) Access to markets or sale points;

9) Corporate profit margin.

Each one of these criteria has a certain

amount of cost and risk associated with

them. Prudent production companies

necessarily have to manage the cost and

risk of each, through all phases of the

economic cycle. In this portion of the

cycle, they will apply significant pressure

to reduce costs in an effort to maximize

their existing production net value and

reduce capital spending, which will re-

sult in reduced drilling and service activ-

ity. this is where the industry is today.

times are not so good.

there is a saying in the oil patch that

goes something like this, “the best thing

for low oil prices, is low oil prices.” this

implies that there will be a contraction

in rig activity that will result in a drop

in supply and cause supply and demand

to rebalance. this will ultimately cause

prices to rise to the minimum economic

threshold and we will put rigs back to

work. We are in the early stages of this

in North America as rigs idle in response

to the oversupply situation. We will have

to be patient to see how long it takes for

the declines in supply to be sufficient to

promote industry activity.

the good news is that the world is not

reducing its demand for hydrocarbon

consumption. there does not seem to

be any compelling evidence that there

will be a material reduction in demand.

Canada is in a very fortunate situation in

that we have an abundance of hydrocar-

bon resources that the world will require

in the decades to come. this will provide

significant opportunity for all of us who

are brave enough to stomach the cyclical

nature of the oil and gas industry. S

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finanCial inCEntivE for B.C.’s lng industryBy Melanie Franner

the b.C. government’s plans to have at least three LNG facilities operational by 2020 may be a lit-

tle closer to becoming a reality – thanks in part to the federal government’s re-cent announcement of tax breaks for the LNG industry. In February 2015, Prime Minister Stephen harper announced a capital cost allowance rate of 30 per cent for equipment used to liquefy natural gas and a 10 per cent rate for infrastruc-ture at the export facility. the tax relief measures will be available for capital assets acquired after February 19, 2015 and before 2025.

“this is great news for the creation of LNG jobs in british Columbia, and great news for Canada,” said b.C. Pre-mier Christy Clark at the time of the announcement. “We have been work-ing with the federal government and industry for some time to achieve this outcome, and I am pleased they have delivered today.”

Deputy Premier Rich Coleman, Min-ister of Natural Gas Development, echoed the positive sentiments.

“b.C. is already a safe, certain, compet-itive jurisdiction for LNG investment,” he said. “With today’s good news, b.C. is even better positioned to take advantage of this generational opportunity.”

Projected growththe federal government’s decision to

enhance the competitiveness of b.C.’s LNG industry through the new tax relief incentive is expected to spur growth in a still-developing industry.

“b.C.’s LNG industry is poised to re-sult in some of the largest private-sec-tor investments in british Columbia’s history, stimulating economic activity across the province like never before,” states Minster Coleman, who adds that there are 20 LNG proposals currently in the works, with more than 30 invest-ment partners. “Canada’s change to the Capital Cost Allowance will allow LNG proponents to recover their capital in-vestments sooner. this means propo-nents are more likely to make the large upfront capital expenditures necessary to build a LNG export facility, accelerat-

ing the growth prospects of b.C.’s natural gas sector.”

the province of b.C. has an enormous supply of natural gas – an estimated 2,933 trillion cubic feet. this is said to be enough natural gas to support cur-rent and future energy needs for more than 150 years.

Minister Coleman cites a recent KPMG LLP assessment that illustrates how the construction of five LNG plants within the province between 2015 and 2024 will create a total investment of $175 billion and create up to 100,000 jobs – 58,700 direct and indirect con-struction jobs, 23,800 permanent di-rect and indirect jobs for operators, and thousands more of induced jobs as a re-sult of households having more income.

“the economic activity will contrib-ute up to a trillion dollars to the prov-ince’s GDP,” he adds.

the b.C. LNG Alliance was quick to respond to the federal government’s an-nouncement, citing it as a good move for continued investment.

“the federal government’s CCA rul-ing encourages the development of a robust LNG industry in british Colum-bia,” states Jas Johal, director of com-munications, b.C. LNG Alliance. “De-veloping b.C.’s LNG industry will create thousands of new jobs for Canadians, jobs that will last for generations to come and guarantee the investment of tens of billions of dollars into Canada’s economy.”

the b.C. LNG Alliance was launched in october 2014 with the specific goal of fostering the growth of a new, safe, en-vironmentally responsible and globally competitive LNG industry in b.C. there are currently seven members.

one of these members is Pacific NorthWest LNG. the company has pro-posed a natural gas liquefaction facility on Lelu Island within the District of Port Edward on land administered by the

agreements reached between the government of B.c. and Pacific northWest lng establish the path to a final investment decision on the project and set the stage for a potential us$36-billion investment in northern B.c. that will be a key driver of jobs and economic activity in the province.

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Prince Rupert Port Authority. the facil-ity would liquefy and export natural gas produced by Progress Energy Canada Ltd. in northeast b.C. the facility rep-resents an estimated $11 billion initial investment.

“Pacific NorthWest LNG welcomed the proposed changes to the LNG Capi-tal Cost Allowance announced in Febru-ary 2015 by the Government of Canada, as these changes create a more com-petitive tax environment for proposed LNG projects in Canada,” states Michael Culbert, president, Pacific NorthWest LNG. “Pacific NorthWest LNG has the potential to generate over $1 billion in tax revenues to all levels of government each year, contribute up to $2.4 billion to Canada’s GDP once in operation, as well as create up to 4,500 jobs during peak construction activity, and up to 330 long-term careers operating at the facility.”

Slow and surethe b.C. LNG Alliance’s Johal speaks

of the industry’s already large invest-ment that has been made to date.

“Already, northern b.C. residents have witnessed a significant amount of work – in the tens of millions of dollars – being done by our members,” he says. “these investments have already created jobs and spin offs in First Nations com-munities, Prince Rupert, terrace, Kiti-mat, Port Edward and Squamish.”

At the same time, Johal acknowledges that further progression may be slow.

“LNG projects are large undertakings that require tens of billions of dollars of capital investment,” he says. “Projects therefore must have a strong business case and meet stringent economic tests before they proceed. We will continue to work with the provincial and federal governments in developing a regulatory and fiscal framework that sets the right conditions in place to establish a glob-ally competitive and thriving LNG sector in b.C.”

unfortunately, the high capital costs associated with building LNG facilities have recently been combined with lower oil prices. this, in turn, has impacted the global LNG market.

A recent report from the International Energy Agency speaks to an increasingly uncertain long-term outlook for in-creased demand for gas in Asia – an area of the world that was previously consid-ered to grow its demand by as much as 40 per cent.

the Agency’s Medium-term gas Market report 2015 also states that gas markets will need to cope with a flood of new LNG supplies in the short term, pro-jecting global LNG export capacity to increase by more than 40 per cent by 2020. the majority of these additions – some 90 per cent – is expected to come from Australia and the united States.

Lower oil prices, adds the report, will mean that new projects may struggle to get off the ground.

Although there aren’t any LNG com-panies as of yet that have made a final

investment decision about proposed operations in Canada, the b.C. govern-ment remains very optimistic.

“We have ambitious goals for LNG,” states Minister Coleman. “We have put policies in place to give LNG proponents long-term certainty; policies building on our competitive advantages. Just last month, we signed a long-term agree-ment and Mou for a project develop-ment agreement with Pacific NorthWest LNG, which shows a lot of promise to be one of – if not the – first, large-scale export operations in the province.”

More to comethe b.C. LNG industry continues to

move forward – holding out the prom-ise of more than a billion investment dollars and a hundred-thousand new jobs – and that’s if just five of the pro-posed 20 facilities come onboard be-tween now and 2024.

A total of 11 LNG proposals have already received export approval by Canada’s National Energy board. And the province of b.C. has already issued environmental assessment certificates to seven LNG projects (including pipe-lines).

“Industry’s response has been posi-tive,” concludes Minister Coleman. “LNG proponents have told us that b.C. is competitive. the new tax treatment strengthens b.C.’s position to grow the economy and create jobs in the prov-ince by attracting investment for a new LNG industry.” S

Minister of natural gas development rich coleman.


lng in PrinCE ruPErtthe birth of a new industry in British columbia By deb smith

Strong growth in the global natu-

ral gas market has spearheaded

19 proposed Liquid Natural Gas

(LNG) projects in the province. Esti-

mated investments of uS$36 billion will

create thousands of jobs with huge eco-

nomic benefits for b.C. and Canada.

An accessible harbour is key to getting

the product to the global markets. Ac-

cording to Paul Vendittelli, Prince Rupert

Economic Development officer, “Prince

Rupert has one of the naturally deep-

est harbours in the world – it is ice-free,

uncongested and closer to Asia than any

other North American port, a three-to-

four-day round-trip savings in shipping

time. the advantages of the harbour are

one of the main reasons why there are

currently four LNG projects at the fore-

front here looking to move forward.”

the city of Prince Rupert is working

with all the proponents, including the

camp operators that have secured land

to develop camps for workers, explains

Vendittelli.

“but it is the Prince Rupert Port Au-

thority (PRPA) that is the ‘landlord’ over

Crown land involved in the proposals,”

he explains.

With approximately 1,000 hectares of

federal Crown land, and the associated

harbour and coastline under its jurisdic-

tion, the PRPA works to fulfill its man-

date of supporting Canada’s trade activ-

ity.

Four LNG proposalsonce completed, Pacific Northwest

LNG, under the majority ownership

of Petronas, will export 22.2 million

tonnes (mmt) per year from a facility on

Lelu Island near the community of Port

Edward and under the administration of

the PRPA. the final investment decision

waits upon completion of the Canadian


government’s Environmental Assess-

ment, estimated for the first quarter of

2016, and b.C. legislative acceptance of

a project development agreement to sta-

bilize taxes and environmental require-

ments.

the facility will feature two liquefac-

tion trains, two LNG storage tanks, a

marine infrastructure with two berths

for LNG carriers and a 250-metre sus-

pension bridge and trestle connecting

to the main terminal. Commercial op-

eration is targeted for 2020 with a $9-11

billion investment.

Progress Energy, wholly owned by

Petronas, is developing natural gas

production in the Montney region of

northeast b.C. and northwest Alberta.

transCanada Corporation will build

and operate two pipelines: the 305-kilo-

metre North Montney mainline and the

900-kilometre Prince Rupert Gas trans-

mission Line from the hudson’s hope

area.

WCC LNG, put forth by Exxon, is lo-

cated on a piece of property called Lot

444 along tuck Inlet.

“Although the City of Prince Rupert

owns the property, it will work with the

Port Authority as the governing body for

the harbourmaster and to ensure safe

egress and access to water,” says Vendit-

telli. At an investment of $15-25 billion

for Phase 1, the two-train design, with

potential for a third, will ship 15 mmt

of LNG from its three-berth jetty, the

natural gas coming from reserves in the

Western Canadian Sedimentary basin.

In December 2014, Exxon submit-

ted its proposal for environmental as-

sessment to the federal and provincial

governments. upon completion of the

environmental engineering studies by

the fourth quarter of 2017, the company

will make its final investment decision,

planning for operation by 2024.

Nexen owns 60 per cent of Aurora

LNG, along with Japanese companies

INPEX Corp. and JGC Group. the facil-

ity will sit on Digby Island (known as

Airport Island), approximately three ki-

lometres southwest of Prince Rupert.

Processing natural gas from north-

eastern b.C., Aurora LNG will cost be-

tween $17 and $20 billion with a pro-

jected completion date of 2021. Nexen

anticipates making a final investment

decision in 2017 and is undergoing

environmental assessment by the b.C.

government. once up and running with

two trains, it will ship 12 to 24 mmt of

LNG.

Prince Rupert LNG, proposed by bG

Group (through bG Canada) received

the National Energy board Application

approval in December 2013. the design

features two LNG processing units, two

storage tanks and shipping terminal.

When finished, it could achieve a pro-

duction capacity of 21 mmt per year

from its $10 billion investment.

Spectra Energy will build and oper-

ate the pipeline from northwestern b.C.

onto the tsimshian traditional territory

of Ridley Island near Prince Rupert. the

bG Group feels it has the best site for

LNG development and is moving for-

ward with community consultation and

the environmental assessment, which it

hopes to file in the first quarter of 2017.

the global LNG trade is intensely

competitive, and new facilities along the

west coast will build Canada’s position

in the market, delivering huge economic

growth to the province of b.C.

“LNG is very big to the area,” says Ven-

dittelli. “All these projects are within $10

to $15 billion; all are going to require

about 5,000 workers at peak construc-

tion and three to four hundred for oper-

ations.” Each LNG proponent is working

with First Nations and the local commu-

nity to reduce the project’s environmen-

tal footprint, conducting extensive field

environmental baseline studies.

Within the jurisdiction of an already

growing and diversified port authority,

Prince Rupert and Port Edward are look-

ing to be great host communities for the

LNG industry in Canada as it works to-

ward the challenges and rewards of the

future. S

Prince rupert lng, proposed by Bg group (through Bg canada) received the national

energy Board application approval in december

2013. the design features two lng processing units,

two storage tanks and shipping terminal. When

finished, it could achieve a production capacity of

21 mmt per year from its $10 billion investment.


madE in B.C.lng Buy Bc Program connecting B.c. businesses with lng opportunities By Jillian Mitchell

the world-wide demand for Liq-uefied Natural Gas (LNG) is ris-ing, with a projected 250 per cent

increase over the next 20 years – and b.C. is touted as having the supply. En-suring b.C. businesses are first in line to harness this opportunity is the LNG buy bC Program.

“LNG has the potential to unleash in-credible opportunities for our province, as well as b.C. businesses,” says the hon. Shirley bond, Minister of Jobs, tourism and Skills training and the Minister Re-sponsible for Labour. “the LNG-buy bC program was created to connect LNG project proponents with b.C. companies large and small in every corner of british Columbia.”

the LNG-buy bC program was an-nounced by Premier Clark in the fall of 2013 with a mandate to link major in-vestors across a range of industries with local b.C. businesses. the complemen-tary online tool (www.LNGbuybC.ca)

was launched in November 2014.A kind of LinkedIn for the LNG indus-

try, the user-friendly website has attract-ed a total of 610 companies, as of July 2015, and subsequent opportunities for business.

“As proponent LNG companies select their prime contractors, b.C. businesses are able to engage through the LNG-buy bC program,” adds Minister bond of the online tool. “In addition, connections are also being achieved through direct consultation with business and commu-nity information sessions.”

Since June 2014, the provincial gov-ernment has hosted 26 workshops aimed to prepare british Columbians for these opportunities, with more than 800 participants taking part. bond con-firms that plans are in place to increase outreach to the business community in advance of the International LNG in b.C. conference in october.

Last year’s strong participation at the

International LNG in b.C. conference, along with significant interest through the many LNG-buy bC workshops, indi-cates that local companies are interested in learning about how to benefit from LNG-related business.

the minister continues, “As industry moves toward a final investment deci-sion, the advantages of b.C. company engagement have been embraced by most engineering, procurement and construction (EPC) companies, giving the program and b.C. business a real boost. this is particularly true of aborig-inal-owned businesses.”

Liquefied Natural Gas (LNG) � Natural gas is a by-product of decaying plant and animal matter left deep underground millions of years ago.

� This natural gas is trapped or isolated in rock formations which prevents it from surfacing.

� Hydraulic fracturing is a process that pumps fluid and sand down a well at high pressure to break apart rock and release natural gas.

� When the pressure is relieved, the water and gas flow up into the well. It is then sent to a processing facility by pipeline.

� The fracturing process has been used for over 60 years.

� British Columbia has enough natural gas to supply domestic and international markets for over 150 years.

Converting Natural Gas to a Liquid

� Natural gas turns into a liquid when chilled to -160° Celsius.

� In liquid form, natural gas compresses, taking up 1/600th less space.

� Once compressed, LNG can be securely stored on a ship and safety transported overseas to markets.

Minister of Jobs, tourism and skills training and the Minister responsible for labour, shirley Bond, who says that the lng-Buy Bc program was created to connect lng project proponents with B.c. companies.


the LNG-buy bC program has been touted as a valuable way to help b.C. businesses raise their profile to connect and ben-efit from LNG investments once projects move forward. Add to that, the program is also help-ing b.C. companies identify and remove deficiencies from their business, and additionally, helping to connect fellow local companies. bond confirms that joint ventures and partnerships are being encouraged, while sup-plier development support is provided.

An estimated 2,933-trillion cubic feet of natural gas rests in northeast b.C. alone. For bond, numbers like these hint at a bright future.

“We are in the early stages of LNG opportunities within the province,” she says. “LNG proj-ects will span many years.” S

A word from the online communitydr. Zoher Meratla of cds research ltd.

“As a b.C.-based company, we have been privileged to per-form the pre-FEED1 and sub-sequently oversee FEED for the KM LNG project in Kitimat, the first LNG export prospect in Canada. During pre-FEED we canvassed the lower main-land for fabrication capabili-ties and were amazed by the tremendous capabilities avail-able here in b.C. In the Kitimat area we experienced firsthand

the high expectations of the lo-cal communities.

When LNG projects move to implementation, schedule and cost-cutting considerations can override proponent prom-ises on local content. Quali-fied labour and hourly rates are common excuses. During our work on the Peru LNG export project we saw an ex-ceptional integration of local labour and content into the

project, to the credit of both the proponent and EPC contract. Ironically, the Peru LNG project was completed on budget and on schedule, and is commonly referenced as a success story.

In b.C., the government ad-opted at the outset employ-ment of british Columbians and local content as key corner-stones of LNG development in our province. Equally impor-tant, participation in the early LNG projects will cultivate skill development for subsequent projects. the endeavours al-ready in place for labour train-ing gives b.C. workers a clear advantage. Given the expected access to opportunities, local fabricators and service provid-ers will no doubt be competi-tive.

the LNG buy-bC online tool offers a unique platform

for british Columbians to ac-cess, network and partake not only in LNG projects, but also pipelines. We have used this platform from the outset and found it extremely useful.

the Ministry of Labour is to be particularly commended for including the WorkSafebC health & Safety Requirements so that prospective suppliers become aware of and comply with these requirements.”

dr. Zohar Meratla of cds research ltd.

1 Preliminary Front End Engineering Design.

cds research ltd. project map.


Why thE ExPrEss Entry to British ColumBia systEm is imPortant to thE lng industryBy amanda lefley

the production of Liquefied Nat-

ural Gas (LNG) is an extremely

important industry to british

Columbia. In the northeast portion of

the province, there is enough LNG to

support the energy needs of the country,

as well as other places in the globe, for

more than 150 years, according to LNG

in b.C.’s website. Approximately 100,000

jobs will be created by these plants, they

say. this is one of the reasons why the

province’s new immigration stream is

important, and also to support vibrant,

growing industries like LNG within the

province.

In January 2015, under the Provincial

Nominee Program (PNP), the Express

Entry british Columbia initiative was

launched; a federal economic immigra-

tion system which provides processing

for permanent resident applications

with a specific allocation of nomina-

tions for the province under PNP. this

system works with Citizenship and Im-

migration Canada’s (CIC) Express En-

try application system. Express Entry

means faster processing time for skilled

workers to gain permanent residence,

while for employers it means access to

more skilled immigrants, as the appli-

cation requires a job offer from a b.C.

employer. And, those who are accepted

into the Express Entry pool are eligible

for an invitation to apply for permanent

residence.

“our priority is to have british Co-

lumbians first in line for jobs, however

we know that economic immigration

will play a key role in meeting the la-

bour demands of a growing economy.

Express Entry british Columbia will pro-

vide a more streamlined process and an-

other pathway to permanency for skilled

workers from around the world who

wish to make b.C. their home,” said

Shirley bond, Minister of Jobs, tourism

and Skills training and Minister Re-

sponsible for Labour.

WorkbC’s website explains the work-

force demand in the LNG industry that

will span between 2014 and 2023. Con-

tributing to that are five LNG plants be-

ing constructed, with the project starting

this year and the completion expected

for 2024. the production capacity will

be 82 million tonnes per annum and

would generate a sector investment of

$175 billion. of the 100,000 jobs an-

ticipated from the LNG industry, that

includes 58,700 in construction-related

fields, 23,800 operations-related jobs, in

addition to thousands of more opportu-

nities as a result of this growth.

So, why is the Express Entry british

Columbia program important to the

LNG industry? A spokesperson for the

Ministry of Jobs, tourism and Skills

training explained even if all eligible

trained british Columbians worked in

this industry, there would still be a short-

age of workers to fill the positions. that

is how economic immigrations plays a

role in meeting the rising demand for

labour in the diverse, growing economy

of the province.

“to address the shortage and avoid

potential project delays, the Express En-

try stream gives priority to skilled can-

didates who meet the criteria for one

of the federal immigration categories,

including minimum language require-

ments. Immigrants must also have a

full-time job offer from a b.C. employer

with a market wage adequate to sup-

port him or herself, and any dependent

family members in the province,” said a

spokesperson for the Ministry of Jobs,

tourism and Skills training. “the new

system – in tandem with the Federal

Express Entry system introduced by Citi-

zenship Immigration Canada – allows

government to select high-skilled work-

ers that will be top contributors to the

province’s communities, labour mar-

ket, and overall economy, including the

LNG industry.” S

“our priority is to have British columbians first in line for jobs, however we know that economic immigration will play a key role in meeting the labour demands of a growing economy. express

entry British columbia will provide a more streamlined process and another pathway to

permanency for skilled workers from around the world who wish to make B.c. their home,”

Shirley Bond, MiniSter of JoBS, touriSM and SkillS training and MiniSter reSponSiBle for laBour.


kEystonE xl in tEmPorary limBo folloWing PrEsidEntial vEtoBy leonard Melman

In one of the most impressive ex-

amples of lengthy delays brought

about by both government and

special interest, after seven years of hear-

ings, inquiries and debate, the proposed

Keystone XL pipeline remains ‘on hold’

and is facing indefinite prospects. the

proposed pipeline has been designed

to move Canadian petroleum through

the central u.S. and eventually down to

major refining facilities located on the

American Gulf Coast.

the project could be of vital inter-

est to the Canadian provinces of british

Columbia, Alberta, Saskatchewan and

Manitoba where intense exploration and

development efforts relating to both ‘nat-

ural’ petroleum deposits and those asso-

ciated with oil sands developments are

ongoing. however, the great problem the

industry now faces is transporting abun-

dant production from Western Canada

to major refinery facilities and markets

in the u.S.A. and perhaps beyond.

Keystone XL is actually only one part

of the Keystone Pipeline System, with

three phases already carrying crude oil

from Alberta. the Keystone XL pipeline

– Phase 4 of the total system – will be

an entirely new pipeline from hardisty,

Alberta directly to Steele City, located

in southernmost Nebraska. It is the Ne-

braska portion, which lies at the heart

of a major environmental controversy

relating to Nebraska’s and neighbouring

states’ fresh water supplies.

Powerful interests are supporting op-

posite sides of the controversy. to a large

extent, forces opposed to the construc-

tion of Keystone XL are funded by bil-

lionaire tom Steyer, founder and former

chairman of Farallon Capital Manage-

ment. Steyer has stated that he was dedi-

cating himself to tackling energy and

climate issues.

Meanwhile, Charles and David Koch,

chairman and executive vice-president of

giant Koch Industries, have consistently

promoted Keystone XL on the basis of

the huge potential economic and job-

creation benefits, which could accrue

upon its construction and successful

completion.

Political influence has played an im-

portant part in the overall debates re-

garding the project. Generally, those

on the political Left, apparently includ-

ing President obama, are fervently op-

posed to the project on environmental

grounds. on the opposite side, those

favouring the project point toward two

significant considerations. First, there

are the direct economic benefits, which

would specifically include construction

employment and permanent operation-

al job creation which would be distrib-

uted throughout the economy. Second,

successful completion of the pipeline

would further diminish America’s de-

pendence upon foreign oil from unreli-

able sources.

Since the Keystone XL pipeline origi-

nates in Canada but passes through u.S.

territory, relations between Canada and

the uSA are also involved and there-

fore, the issue comes under the scrutiny

of America’s secretary of state; formerly

current Democratic presidential candi-

date hillary Clinton, and presently John

Kerry.

throughout late 2014 and into 2015,

the conflict entered the u.S. Congress

with President obama leading the oppo-

sition while the Congressional Republi-

can leadership stood steadfast in favour.

two major developments then took

place in early 2015.

First, despite advance warnings of a

presidential veto, in late February the

Republican-led Congress passed a bill

entitled “Keystone XL Pipeline Approval

Act”. Next, as promised, the president

vetoed the legislation and the Repub-

licans were unable to muster sufficient

votes to over-ride the veto.

While the project presently remains

in some form of political ‘limbo’, it

still commands attention. For example,

Warren buffet, known as the “Sage of

omaha” and a frequent supporter of

the president, came out in direct oppo-

sition, saying he would have approved

the project. Democratic ‘left-wing’ flag

bearer, Senator Sanders of Vermont,

criticized hillary Clinton for not being a

sufficiently committed environmental-

ist on the XL project while Republicans

of all stripes continue to campaign for

its approval.

In the meantime, the oil that might

have been transported via the Keystone

XL pipeline continues to pile up in stor-

age facilities in Alberta. this supply

overhang is having a negative influence

on the economies of Alberta and b.C.

by rendering many borderline projects

unprofitable, and the diminished ability

to move end petroleum production to

end markets has discouraged further ex-

ploration and discovery efforts, thereby

driving business away from drillers, sup-

pliers, etc.

Many partisans on both sides of the

Keystone XL debate continue to moni-

tor developments closely. this story is a

long way from its conclusion. S


the great british Prime Minis-

ter benjamin Disraeli once said

there’s no education like adver-

sity.

If that’s the case, the oil industry has

done a lot of learning during the last few

months, and so have governments that

rely on the industry for investment, rev-

enue and jobs.

We have witnessed a precipitous drop

in oil prices that virtually no one fore-

saw, a decline so steep the industry’s

basic operating assumptions are being

questioned by many.

this is indeed a challenging time for

companies, employees, and jurisdictions

like Saskatchewan.

As we deal with those challenges, we

need to keep in mind that we’ve been

here before, and not so long ago.

oil prices plunged in 2009, and the

industry faced the same uncertainty it

confronts today. but prices bounced

back fairly quickly, thanks in large part

to growing demand in the developing

world.

And while this time prices may not re-

cover as quickly, the industry’s demand

dynamics have been forever altered by

the rise of countries like China, India,

Indonesia and thailand.

Even if those Asian economies weak-

en in the short term, it is difficult to en-

vision a scenario where global demand

for oil languishes for long.

the world’s population is expected

to increase to more than nine billion

by 2050, with much of that growth to

take place in Asia. Moreover, the world

is becoming more affluent and more ur-

banized, which will translate into higher

demand for energy.

From 2000 to 2012, demand for oil

in Asia grew by 41.5 per cent, while de-

mand declined in Europe and the unit-

ed States, according to the organiza-

tion of Petroleum Exporting Countries

(oPEC).

oPEC forecasts that oil demand will

climb from 90 million barrels a day

in 2013 to 111 million barrels a day by

2040, with most of the increase coming

in Asia.

this is why I believe in the long term,

the North American oil industry will

prosper, provided we have the appropri-

ate taxation and regulatory regimes in

place and the necessary infrastructure to

get our product to market.

In the short-term, there will be some

rocky days.

thankfully, the oil and gas industry is

made up of tough and resilient people,

and so is the Province of Saskatchewan.

We are both accustomed to market vola-

tility.

Saskatchewan is a province of trad-

ers, exporting almost three quarters of

the total value of what we grow, mine or

build to markets around the world. our

economy relies heavily on natural re-

sources to drive growth and investment.

but while many know Saskatchewan

as a leading producer of potash, urani-

um, and agricultural products, and that

diversity of resources will help see us

through a slowdown, the contribution

of oil to our economic wellbeing is not

as well known outside the province.

that’s why, wherever I go, I am quick

to point out these facts:

•Thatourprovincehas53.9billionbar-

rels of initial oil in place and 1.3 bil-

lion barrels of remaining recoverable

reserves;

•That Saskatchewan is Canada’s sec-

ond-largest oil producer and its third-

largest natural gas producer;

•That prior to the recent decline in

prices, Saskatchewan was producing

oil industry Will rEBoundit’s time for north america to act like an energy superpower By Brad Wall, Premier of saskatchewan


a record amount of oil – more than

500,000 barrels of oil a day, with 65

to 70 of production exported to the

united States. We ship more oil to the

u.S. than Kuwait.

•ThatSaskatchewanisagloballeaderin

the research and development of en-

hanced oil recovery technologies;

•Thatourindustryhasasolidtrackre-

cord of innovation, and has eagerly

utilized horizontal drilling and hy-

draulic fracturing to boost production.

oil has provided an enormous eco-

nomic boost to our province.

In 2013, the industry accounted for

an estimated 15.1 per cent of Saskatch-

ewan’s $61.1 billion real gross domestic

product. In 2014, it invested an estimat-

ed $6 billion in exploration and devel-

opment, and supported approximately

38,000 jobs.

our government is extremely grate-

ful for the hard work and enterprise of

the hundreds of companies operating

oil and gas wells in the province and the

firms that support them. the private sec-

tor deserves the credit for the impressive

growth in Saskatchewan’s oil sector.

For our part, the government has tried

to help by creating an atmosphere con-

ducive to growth.

that we have had some success is

borne out by the Fraser Institute’s an-

nual Global Petroleum Survey, which

ranked Saskatchewan as the third most

attractive place in the world for the oil

and gas industry.

In these uncertain times, we will do

everything we can to ensure Saskatch-

ewan remains a competitive place to do

business for the industry.

that includes serving as a strong ad-

vocate on the national and international

stage.

We have been vocal in our support of

major pipeline projects that will benefit

Canadian oil producers, such as North-

ern Gateway, Keystone XL and Energy

East.

In our view, it is imperative these proj-

ects proceed if Canada is to live up to its

status as a world energy superpower.

the pipelines will provide a major

boost to the North American economy,

and ensure our oil can get to tide water,

enabling producers to receive world pric-

es for their product.

I’ve travelled to Washington in support

of transCanada’s Keystone project.

In speeches and in meetings with law-

makers, I’ve made the point that there are

already more than 80 pipelines carrying

hydrocarbons between Canada and the

united States, all operating safely right

under the nose of actress Daryl hannah

and other fervent opponents of Keystone.


In those discussions, I’ve stressed the

project’s economic benefits. According

to the u.S. State Department, Keystone

will contribute $3.2 billion to the u.S.

GDP and create more than 42,000 jobs

during construction.

the State Department has also con-

cluded that Keystone will not signifi-

cantly increase greenhouse gas emis-

sions.

Keystone is truly a “no brainer”, as

Prime Minister harper has said. but

President obama doesn’t see it that way.

the project is caught up in an intense

political debate in the united States. I’m

troubled by that debate, but I under-

stand it. opposition to the $12 billion

Energy East project is harder to fathom.

Energy East, another transCanada un-

dertaking, entails converting an existing

natural gas pipeline to an oil pipeline,

and extending the pipeline to ports in

Quebec and Atlantic Canada. Seventy

per cent of the pipeline is already built.

Energy East, like Keystone, will enable

Canadian oil producers to get world

prices for their product, which will not

only benefit those companies, but all

Canadians through increased tax rev-

enue, wages and investment.

the pipeline will allow for the ship-

ment of conventional oil from West to

East, opening up the possibility of Ca-

nadian oil displacing oil importing from

countries like Saudi Arabia, Iraq and Ni-

geria.

the economic benefits associated with

Energy East have been confirmed by in-

dependent studies completed by Deloitte

and the Conference board of Canada.

the Deloitte report predicts the pipe-

line will boost economic activity by $35

billion over its lifetime. this includes

$10 billion in additional tax revenues, of

which 20 per cent will flow to Quebec

and 36 per cent to ontario.

It is estimated Energy East will create

10,000 full-time jobs in the construction

phase, with most of the jobs going to

workers in eastern Canada.

Energy East is now the subject of a rig-

orous National Energy board review.

I was pleased to see that my colleagues,

Premier Kathleen Wynne of ontario and

Premier Philippe Couillard of Quebec,

have dropped their demand to expand

that review to include the greenhouse

gas emissions (GhGs) generated in the

production of the oil transported in En-

ergy East.

Still, Quebec and ontario are not yet

supporters of Energy East. there is, in

fact, considerable opposition to the proj-

ect.

I have no doubt transCanada will

do everything it can to allay concern

and correct misinformation.

those of us who support the oil in-

dustry, and understand and appreciate

its importance to the Canadian econo-

my, must help with the effort.

And as we do, we need to deal in

facts, for as the American president

John Adams noted: “facts are stubborn

things”.

We should emphasize the fact that

pipelines are by far the safest way to

transport oil, far safer than moving oil

by rail.

We should make known the fact

that every year, Canadian resource

companies and governments lose out

on billions of dollars in profit and tax

revenue because we are unable to ship

our oil to world markets.

that means less money for job cre-

ation, less money for schools, hospitals

and roads, less money for programs to

help the most vulnerable among us.

We need to disseminate the fact that

few countries in the world have done

as much as Canada to ensure the envi-

ronmental sustainability of fossil fuel

production. over the years, billions of

dollars have been invested to reduce

the industry’s impact on the environ-

ment.

And finally, we need to explain that

the oil and gas industry has sustained

the Canadian economy through dif-

ficult times, with the economic ben-

efits extending far beyond the borders

of Alberta and Saskatchewan. In 2013

alone, the industry invested $74 bil-

lion and employed 530,000 people.

All Canadians should be proud of

our oil and gas industry. We should

trumpet its risk taking, its innovation

and its social responsibility.

today, Canada can make an honest

claim to being an energy superpower.

It’s time we started acting like an en-

ergy superpower. S

1.800.558.0881tastructures.com


is it too latE for B.C. lng?By Jay roberge

on July 21, the british Columbia legislature passed a potentially “historic” Liquefied Natural

Gas Project Agreements Act that allowed the government to enter into agreement with Pacific Northwest LNG – a con-sortium led by Malaysian energy giant Petronas – to build a liquid natural gas export facility in Prince Rupert, b.C.

At $36 billion, the LNG project will be the single largest private investment in b.C. history, creating an estimated 4,500 construction jobs and generating $8.6 billion in taxes and revenues by 2030. As part of the negotiations, the b.C. govern-ment is making concessions to freeze the tax rate on the consortium for 25 years.

Regardless of the final agreement, many critics argue that it is simply too late for b.C. to enter the global market for Liquid Natural Gas (LNG) and the tax concessions diminish the long-term benefits of the project. Critics argue that increased global LNG supply and a gen-eral decrease in natural gas prices make the project uneconomic. Furthermore, others believe the job creation is primar-ily during construction – so it is mostly temporary and brings little economic benefit. Such a view does not consider the risks of not having an LNG export fa-cility on the west coast of Canada.

With the glut of oil and natural gas sup-plies, natural gas prices have come down globally. While oil has been shipped by seaborne tankers globally for years, natu-ral gas has not enjoyed the same robust global distribution network until recent years. It is important to understand that for Canadian natural gas there are two markets to consider with two different prices; the domestic North American market, where natural gas is consumed in Canada and sold to the united States; and the international market. Canadi-an gas suppliers cost-effectively deliver natural gas through a vast network of gas pipelines running thousands of ki-lometres from across Canada into the uSA. this network of pipelines delivers

gas in mass quantities to be distributed through sub systems right into homes and businesses across North America so people stay warm in the winter, cool in the summer, and can fire up their bar-beque for a summer burger. Virtually all of Canada’s exports are domestic and there is no Canadian participation in the international market.

Some critics point to the fact that low natural gas prices make the b.C. LNG facility uneconomical. Such a view is short sited, and subscribes to a belief that commodity prices will always stay low. We can all remember a time when oil went to $145 per barrel. the “experts” were claiming then that oil would never be under $100 ever again. how times change. As the saying goes “the solution for high prices is high prices, and the solution for low prices is low prices”. In energy commodities, nothing goes up forever, and nothing stays down forever.

Natural gas prices in North America – like any commodity – go up and down with supply and demand fluctuations, which are typically brought on by cold winters and hot summers. When de-mand starts to go down, inventories start to increase as supply starts to out-pace consumption. Producers respond by shutting in production and reducing supplies to balance out with demand and stabilize pricing. In 2008, when oil reached up to uS$145 per barrel, do-mestic natural gas prices peaked at about $14.50 per million british thermal units (btu). Since mid-May, domestic natural gas have bounced between uS$2.50 and $3.00 per million btu.

Pricing for natural gas in the interna-tional market is much different. In Asia, prices are also down, but are generally between three and four times higher than the domestic prices here in North America. For example, recent prices in Japan, where prices have been under downward pressure because of the re-turning use of nuclear power, natural gas is approximately $8.00 per million btu.

Citigroup expects global LNG prices will trade within a range of $6 to $8 per mil-lion british thermal units from now to 2020. A b.C. LNG facility’s economics are based on prices received in the inter-national market (taking transportation costs into account) and not domestic market pricing.

An LNG export facility allows Canada to participate and compete in the global LNG market, where prices are higher than domestic prices, price appreciation will likely take place sooner, and overall volume demand is growing. Without an LNG export facility, Canada is beholden to selling their surplus natural gas to the united States. Problem here is that in 2011, the united States surpassed Rus-sia to become the biggest producer of natural gas in the world. As a result, the united States has gone from being our biggest customer to being our biggest competitor with its own LNG export fa-cilities under construction. over recent years, Canada’s exports to the u.S. have dropped by 30 per cent.

Perhaps the most important part of understanding pricing of natural gas (or any commodity) is the effect of only having one customer. When there is only one buyer of Canadian surplus natural gas it’s a buyers market and the buyer dictates price. In order to maximize the price or at least try to get a higher price, there has to be more than one buyer – the same holds true for natural gas and for Canadian oil. this ensures the long-term viability of the oil and natural gas industries in Canada, which play a key role in Canada’s overall GDP.

Canada is the fifth-largest producer of natural gas in the world; fourth-largest exporter in the world and the natural gas industry is a major contributor to the economy of Canada. It is an abundant, important resource in Canada’s econ-omy and the world’s energy needs. As a cleaner source of energy compared to the other carbon sources, and a globally distributed system, natural gas will repre-


sent a growing percentage of the world’s overall energy mix.

on a more macro level, billion dollar projects are not based on the spot price of the commodity, but on the longer-term trend on demand and price fore-casts. today, natural gas is a low point in the price cycle, with increased global sup-ply. Right now, at these low price levels, natural gas is offering the most practical, most affordable and cleanest carbon en-ergy source available. Global pressure to reduce carbon emissions will see more countries around the world convert coal-fired power plants to natural gas, which in time will produce increased demand for natural gas. this year, beijing has ex-perienced more “blue-sky” days then in the last 15 years due in part to a number of regional coal-fired power plants con-verting to natural gas. China has placed the environment on high priority, and is making significant moves to improving air quality.

overall global energy demand is go-ing up, and it will take all energy sources to meet this demand. According to most predictions, global energy demand will increase on average of approximately 1.5 per cent per year for the next 20 years. In just two decades the world is going to have to produce 30 per cent more energy then it does today. While renewables are growing, there is no one single en-ergy source that will displace any other source. Renewables are expected to in-crease from the current levels of three per cent to eight per cent over the next 20 years. however, fossil fuels will continue to meet two-thirds of the increase in en-ergy demand. the global energy mix pie will get larger, and the pieces that each source represents will change and natu-ral gas will continue to represent a grow-ing portion. According to bP, a one per cent switch from coal to gas in power generation would cut as much carbon emission as an 11 per cent investment in renewable energy.

Much of the recent debate focuses around China’s economic growth con-cerns and its importance to the success of b.C. LNG exports. No doubt it is a key

market in Southeast Asia, but not the only one. An LNG export facility opens Canada to multiple potential customers including China, Korea, Japan, and other countries that do not have the vast re-sources we enjoy in Canada. the second part of the China factor is that China has vast resources of shale gas to develop – the largest potential on the planet. how-ever, these resources are mostly in the western part of China, where it is arid and lack of water for fracking is prob-lematic. A long-term natural gas deal with Russia was testament to China’s long-term needs comparative to poten-tial near-term domestic supplies.

the current global economy is stag-nant and has been in a period of sub-sidized growth, rather then real growth. there will be a time when real growth returns and we will see the united States, China, and Europe back on a positive growth trend, and in this growth cycle we will see commodity prices rise again along with energy consumption. Low en-ergy prices in both oil and gas are a very strong catalyst to help the global econo-my turn to positive growth. With an LNG facility in place, Canada will be in posi-tion to take advantage and participate in a growing global economy.

And yes, there are many other coun-tries, such as Australia, the united States, and various countries in the Middle East already in the LNG market and adding more capacity. Canada is a sought-after source as it is a reliable country that re-spects the rule of law and is viewed as a politically stable country. Despite what many think, the uSA is considered a higher risk supplier for China.

Ensuring Canada has sufficient LNG export capabilities in british Columbia is the right decision for british Columbia, and Canada. It is critical to the long-term survival of our natural gas industry and provides the necessary infrastructure to make Canada competitive in the global natural gas industry. to do so it needs to invest and build pipelines and export-processing facilities to cost-effectively transport natural gas from the source, to the west coast and into the international

market. the easiest way to lose a compe-tition is never to enter. Canada can and will compete.

Some critics that argue Canada is los-ing its sovereign control over natural gas and that it should not be exported at all. It should be kept for generations. this is also short sited. the challenge here is that we share this planet with others and we do so through organizations like the World trade organization (Wto). And though natural gas is a carbon-based energy source, it is the lowest of all the fuels and plays a valuable role in meeting global energy needs while im-proving the global carbon footprint and bridging the gap to a sustainable energy future. Canada has a massive surplus of supply that will be part of our energy mix for years to come and until alterna-tive sources of sustainable energy cost-effectively power our planet.

Critics argue that building such a fa-cility only creates short-term jobs dur-ing construction. this is true, the num-ber of jobs (estimated at 4,500) during the construction period of any project is generally higher then the number of jobs required to maintain a project. however, the economic impact of 4,500 working people during a globally stag-nant economy is a welcome event, and long-term 300 jobs for management and maintenance will be a major boost to the regional economy of Prince Ru-pert and support services provincially.

Now is the time to move forward and build an LNG facility in b.C. the timing is not going to improve as the global economy inches closer to growth each day. building during the down cycle en-sures Canada will be selling LNG in the up cycle. by the time the facility is com-pleted, the global price of energy may be back on the rise. We need to build for the future and not for today. Global long-term demand for energy will con-tinue to grow, and an LNG export capa-bility is essential for Canada to compete and sell to multiple markets around the world and is a necessity to the long-term viability and survival of Canada’s energy industry. S


thE groWing ContriBution of thE oil and gas sErviCEs sECtor – hoW Big is it?

We don’t hear much about

growth in the energy sector

in Canada these days. So to

talk about the oil and gas services (oGS)

sector’s growing contribution may seem

remarkable.

Every year, though, the Canadian pe-

troleum services sector makes substan-

tial contributions to the country’s econ-

omy, as measured by gross domestic

product (GDP), taxes, investment and

employment. A recent economic study

undertaken on behalf of the Petroleum

Services Association of Canada (PSAC),

the trade association that represents

Canada’s leading oil and gas services,

supply and manufacturing companies,

shows that those contributions had

been getting bigger, in a big way.

the study shows that between 2006

and 2009 the oGS sector’s economic

contribution to Canada’s economy grew

by 15 per cent over that three-year peri-

od. that’s considerable growth in a short

time. Some of the other considerable

contributions of the sector highlighted

in the report show:

•OGScontributed$75billion toCan-

ada’s GDP (up from $65 billion in

2006). this represents a 5.1 per cent

impact on Canadian GDP for the year

2009.

•Taxes paid to federal and provincial

governments by the oGS sector to-

taled $17.3 billion.

•Directandindirectemploymentacross

the country by the oGS sector reached

685,000.

•Together,theOGSsectorandExplora-

tion & Production (E&P) sectors’ total

industry contribution to Canadian

GDP was $123 billion.

While E&P companies are readily rec-

ognized for the major contribution their

sector makes, the hundreds of com-

panies and hundreds of thousands of

workers in the oGS sector that provide

services and products that support E&P

activities and operations, often get over-

looked as a top contributing sector in

its own right. the study points out that

over the last two decades, E&P compa-

nies have outsourced more and more of

their regular activities, and that the oGS

sector’s growth over the three-year pe-

riod reflects this continuing trend.

Mark Salkeld, president and CEo of

PSAC, commented on the significance

of the sector’s economic contributions,

saying, “It is well understood that oil

and natural gas exploration and produc-

tion is a major industry in Canada that

provides tremendous economic benefits

to all regions of the country. What is less

understood is that a substantial por-

tion of those benefits are due to the oil

and gas services sector. PSAC members

provide the manpower, the technol-

ogy, and the materials to drill, complete

and produce oil and natural gas – from

manufacturing the rigs and wellheads, to

developing leading-edge downhole tools

and environmental services, or provid-

ing workers’ accommodations in remote

camps – and everything in between.”

Products and services that are used di-

rectly in support of exploration and pro-

duction cover the lifecycle of activities,

including exploration, drilling, comple-

tion, production, construction, process-

ing, transportation, logistics, manufac-

turing, maintenance, and fabrication.

What the report also hastens to high-

light is that when it comes to changes in

policy, policy makers clearly consider the

impact on E&P companies, but it’s un-

clear whether they think about the oGS

sector. Fiscal and policy decisions that

target the E&Ps can have major econom-

ic and employment impacts on the oGS

sector, whether intended to or not; it is

impossible to set policies aimed at the

E&P’s without impacting the oGS sector.

While the scope and success of the

oGS sector is particularly impressive

when considering its short history – just

60 years ago, there was no Canadian pe-

troleum services sector at all – there is no

denying that our success depends on the

E&Ps. Eighty to 90 per cent of what the

oGS sector does, what it contributes, is

derived from the service and products it

provides to E&P companies.

When energy industry revenues and

capital expenditures collapse, like they

have in the last few months, that down-

ward slide is fast, perhaps faster, for the

oGS sector because once the drilling

stops or the capital dries up, so does the

work for the service companies. From

that perspective, E&P priorities – for

market access, regulatory certainty and

global competitiveness – are oGS sector

priorities, too. S

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sPE ramPs uP suPPortivE BEnEfits for thE Canadian oil and gas industry

over the years, a number of

breakthrough technological

papers have been presented

at the Society of Petroleum Engineers

(SPE) global events bringing Canadian-

specific innovation to the international

stage. the ingenuity and intellect of

energy professionals from SPE sections

and chapters in Canada is respected by

other SPE members around the world.

Moving forward, it is going to take more

of that specialized acumen to further the

advancements of upstream operations.

“technology is key for the oil and gas

industry,” says Mike Gatens, SPE Canada

board chairman. “Doing more with less

is essential during this market down-

turn. Energy professionals can lean on

SPE as they weather the storm. Respond-

ing to market conditions, the society has

augmented its already excellent benefits

with more resources targeted to mem-

bers who are needing extra support

now.”

Recently, at the SPE Canada heavy oil

technical Conference held in Calgary

this past June, incoming 2017 SPE Presi-

dent Janeen Judah spoke about taking

a long-term approach to the upstream

exploration and production (E&P) in-

dustry, whether it is in heavy oil, LNG

or unconventional resources. Judah ad-

dressed supply and demand in the mar-

ketplace, the benefits and risks of pro-

duction, project management, as well as

the political and environmental aspects

of the oil and gas extraction process.

“here in Canada, the market down-

turn has had a profound impact on

many industry professionals,” said Ju-

dah. “I am here to emphasize how im-

portant our members are to SPE and

how committed we are to help in good

times and bad.”

SPE is a not-for-profit organization

that offers a vast array of member ben-

efits and tools with profits from train-

ing, conferences and workshops being

invested back into our programs for

members. SPE understands the recent

downturn has hit Canadian operations

and personnel quite harshly with many

of our members experiencing layoffs.

the society has several resources in place

to assist members who are coping with

this difficult time, such as:

•Anewjobboardwhereenergy-related

jobs are posted on the SPE.org website,

free for SPE members. http://www.spe.

org/industry/jobs/

•Members may request a dues waiver

if unemployed or for other financial

hardship reasons.

•Webinars are free to members with

dozens to choose from.

•E-mentoring programs are available

for young professionals, which can be

very helpful, especially in a downturn.

•Ifamemberhasretiredearlyorisun-

employed, yet still wants to stay in-

volved in the industry, PetroWiki is an

ideal way to stay engaged and demon-

strate one’s expertise.

•SPEoffers a free,onlineCompetency

Management tool to members that al-

lows individuals to assess their current

professional capabilities against one

of 22 key E&P job competency models

covering geosciences, reservoir engi-

neering, well engineering, production

engineering and operations, project

and facilities engineering and health,

safety and environment.

SPE is uniquely positioned to take a

wide perspective on the industry since

its membership offers a global, regional

and local platform to its members. Can-

ada has 6,255 professional members,

eight sections, and 11 student chapters.

Recently, the Vancouver section was es-

tablished supporting training and net-

working events in the Vancouver and

sPe leaders (from left to right) Mike gatens, Mark rubin, Janeen Judah, darcy spady, and cal coulter.


Southwestern british Columbia area.

With LNG initiatives and pipeline proj-

ects of key concern to petroleum engi-

neers working there, the opportunities

for section activities are robust. Along

with social events, the Vancouver section

also hosts expert speakers from SPE’s

Distinguished Lecturer program. the

inaugural program took place in May

2015 with a presentation by David M.

Anderson, “unconventional Reservoirs

Require unconventional Analysis tech-

niques.” three more lecturers are already

scheduled for the spring 2016 season,

and SPE Canada plans to hold an LNG

and/or major projects workshop in Van-

couver in 2016/2017. SPE is increasingly

beneficial all over Canada with sections

and student chapters from Newfound-

land to british Columbia. SPE also pub-

lishes the canadian oil & gas evaluation

Handbook (CoGEh) and the Journal of

canadian Petroleum technology (JcPt). In

addition, the SPE Canadian Educational

trust Fund provides a variety of scholar-

ships to post-secondary institutions and

students. S

UPCOMING EVENTS Visit SPE.org/Canada for more details

October 6-7, 2015SPE Deepwater and Harsh Environment Development Strategies WorkshopSt. John’s, Newfoundland and Labrador, Canada

October 20-22, 2015SPE/CSUR Unconventional Resources ConferenceCalgary, Alberta, Canada

November 23-25, 2015SPE Thermal Well Integrity and Design Symposiumbanff, Alberta, Canada

visit the sPe vancouver section website for upcoming local events: http://connect.spe.org/vancouver


lEvElling thE Playing fiEldQ & a with art Jarvis, executive director of esBc By Kathy smith

Art Jarvis is the executive director

of Energy Services bC (ESbC).

For the past 39 years, ESbC has

been the united voice for b.C.-based

contractors who service the energy sec-

tor. based in Fort St. John, b.C., he liais-

es with the service sector and producers

through a three-pronged approach: ad-

vocating, educating, and strengthening

relationships.

In a recent interview, Jarvis reported

that 2015 has been the worst he’s ever

seen for b.C.-based contractors, due

largely on an imbalance of work award-

ed to out-of-province contractors. he

discussed why the current situation is

unfair and how he’s lobbying for a so-

lution to create a level playing field for

b.C. contractors.

Q: Mr. Jarvis, as the voice for ESBC members, what have local contractors been experiencing when looking for work this year?Art Jarvis (AJ): the winter of 2015 was

the worst quarter I’ve seen in decades. A

lot of contractors in Fort St. John are off

work, so we’re really fighting hard and

we’re lobbying the provincial govern-

ment as much as we can.

Q: ESBC lists B.C.-based contractors, so what factors are contributing to this shortage for local workers?AJ: We have lots of local people with

contact information here, yet people,

equipment, and services are still coming

from across the border. It’s impossible

for us to compete because it costs 20 to

25 per cent more to be based here. the

majority of the service companies drive

in and don’t get taxed – if they’re not a

big truck they don’t even get looked at.

Q: An abundance of out-of-town con-tractors is detrimental on many levels – can you give me a scenario of how it affects the average person?AJ: Say your house painter comes from

elsewhere – he paints it then leaves –

how does that benefit your community?

If he lives down the road you can expect

him to buy groceries, diapers, chewing

gum, maybe a new car. If you pay some-

one from outside, he heads back home

and you’ve just sent the money with

him. We’ve got work here and we’re just

watching it go by.

Q: Producers have dropped projects and have sent letters to service com-panies requesting discounts. Not all of the contractors working on the re-maining projects are local, so how does this affect the community?AJ: they bring in out-of-province com-

panies and do the work right under our

noses. It doesn’t matter how much mon-

ey a company spends here if the money

doesn’t stay here. Visiting contractors

use the hospital, which is currently 10

doctors short, as well as roads and so on,

but they don’t contribute to the commu-

nity because they’re mostly in camps.

Q: To some, the ongoing construction of buildings in Fort St. John suggests that the city is a hive of activity – is this a misnomer?AJ: by the time they build a new hotel,

the economy may have changed and

they’re in it for a 30- or 40-year span –

our biggest concern is for the next two

years – I can give you a list as long as

my arm of locals who were going to be

working on small to multi-million dol-

lar projects, but much of that is on hold

now.

Q: A number of new residential devel-opments have been built in anticipa-tion of growth connected to LNG. How is that going?AJ: We’ve been very strong here for the

last four or five years, so out-of-province

workers didn’t affect us – if you’re get-

ting your fair share then you’re okay.

Last year, housing contractors were dig-

ging basements for houses that were al-

ready sold – this year to keep their guys

busy they’re building on speculation,

and that’s a 180-degree difference.

Q: The economy in Northeastern B.C. is dependent on work in the energy sector, and if locals are not getting their fair share, what are the financial implications?AJ: one lending institution has offered

a three-month payment holiday to their

corporate clients. Some banks are offer-

ing payment vacations on mortgages.

You pay more for it, but right now you

may really appreciate that relief. the

fact that they’re doing that tells me they

know these are tough times.

Q: What is your major concern?AJ: I’m concerned that the b.C. govern-

ment is so focused on long-term LNG

plans, that they’re not watching what’s

going through the sieve right now.

Q: What is the solution you are seek-ing?AJ: We need a tax concession for service


companies and contractors who build a

base in b.C. that doesn’t mean it’s their

only office, it just means they’ll rent, buy

or lease property here, hire b.C. people,

pay b.C. insurance on their vehicles, and

submit corporate taxes.

Q: You meet regularly with MLA Pat Pimm and speak often with MP Bob Zimmer. How is that going?AJ: Yes and I’ve also had discussions

with every provincial politician who

can assist with the situation. It really is a

provincial problem and they have to un-

derstand the severity. I don’t think every-

one fully comprehends what is referred

to as the ‘Alberta advantage’.

Q: I spoke to with MP Bob Zimmer re-cently and he acknowledged the prob-lem. I asked; Mr. Zimmer, what are your thoughts on industry hiring lo-cal contractors versus out-of-province workers?Bob Zimmer: We’ve gone to bat for in-

dustry to get them as much as we can and

it’s important that industry understands

the importance of local companies and

contractors. they should be looked at

first. All things being equal, price and

everything else, we want them to use the

local population first – I support Art in

that. If someone’s working from out of

province, they’re technically supposed

to be paying b.C. tax – that needs to be

captured somehow. b.C. doesn’t know

what it’s missing because that money is

leaving the province. that would help to

level the playing field… there’s also the

option of being in a preferred contrac-

tor group – as long as you qualify, you’re

given first right to bid on a project, but

you still have to win your bid.

Q: In speaking with MLA Pat Pimm I asked, Mr. Pimm, what can you add to this and how is the issue being ad-dressed?Pat Pimm: We’re working on this

through the jobs ministry. We talk about

b.C. first, Canada second, and opening

it up after that, so we want to look af-

ter b.C. jobs. this discussion has been

on my plate since I started six years ago,

and it was on all the MLA’s plates prior

to that. It’s a problem that’s been here

for a long time. I would like to take an

avenue similar to what’s done with First

Nations – we guarantee they will have

some employment with these projects

and I’d like to see local guarantees un-

der social licence… the problem is that

as the jobs go down the procurement

line, people end up offering jobs to the

people they know well.

Q: You mentioned that Buy BC Advo-cate Gordon Wilson could also be a good source of support in this.AJ: the provincial government must

level the playing field to make it fair for

businesses to locate here, [it’s] an incen-

tive for them to compete fairly when

we’re bidding against out-of-province

contractors.

Q: Is Alberta open to helping at this point?AJ: Alberta has promised to raise corpo-

rate tax, so that’s going to help, but why

do we have to wait for Alberta to help

us with our problem? that doesn’t make

any sense.

Q: With more work to be done, what are your closing thoughts?AJ: A strong private sector is critical to

the development of municipalities. If we

win this battle, everyone in the province

will benefit. Small businesses are the

fingers of the hands that built this prov-

ince, and if you cut the fingers off now,

how are you going to lift the load once

final investment decisions are made for

LNG, and the work comes? S

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thE CollEgE of nEW CalEdonia: a cornerstone of B.c.’s economic development

With the growing interest in

LNG and other trades-re-

lated industries, b.C. is in-

creasingly relying on its post-secondary

sector to ensure that its labour force is

well trained and adaptive to the chang-

ing labour market. the College of New

Caledonia (CNC) in Prince George is a

great example of how the industry, gov-

ernment, and post-secondary sectors are

working together to meet the emerging

needs of the province.

In January of 2015, Premier Christy

Clark announced $375,028 for CNC to

purchase new trades-training equipment

to support students studying in in-de-

mand fields that are critical to LNG and

other industries. then, in July of 2015,

the Ministry of Advanced Education an-

nounced another $1.5 million for trades

training equipment for CNC. the prov-

ince has also allocated $604,079 for 136

critical trades seats and $197,000 for

training and programs across all of the

CNC campuses.

these funding allocations were in-

formed by consultations with post-sec-

ondary institutions, the Industry train-

ing Authority (ItA), and the most-recent

labour-market data. the trades equip-

ment funding came as a part of b.C.’s

Skills for Jobs blueprint commitment of

$185 million over three years for trades

training infrastructure and equipment at

public post-secondary institutions. As a

result, students, colleges, communities,

and the economy are all benefiting.

With these funds, CNC has been able

to update some of its equipment so that

it can provide its students with the most

up-to-date training methods. this has al-

lowed the college to stay relevant in a con-

tinually changing and developing indus-

try market. Examples of equipment pur-

chased with this money include a fiber fu-

sion splicer for electrician students (used

for joining two optical fibers end-to-end

using heat), updated welding machines

for welding students, and a Pro Link ul-

tra Elite Scanner for heavy-duty mechanic

students (used for heavy-duty vehicle di-

agnostics).

the college works extensively with its

industry partners to ensure that the train-

ing it provides meets the standards sought

after by employers. So, these new equip-

ment purchases mean that students who

attend CNC receive hands-on experience

with the most up-to-date equipment.

So, when they graduate they are able to

smoothly transition into their respective

employment fields.

this, in turn, further helps develop b.C.’s

communities and its economy because it

provides tradespeople with the opportu-

nity for long-term, well-paying jobs.

“When the opportunity is there for

graduates to find stable employment di-

rectly after completing their training, then

those individuals are able to immediately

begin contributing to the economy and

giving back to their communities,” said

henry Reiser, CNC president. “that is one

of our main goals across all of our regions

as a community college.”

As these industries continue to grow,

CNC will be at the forefront of train-

ing and innovation. With such a strong

partnership between the government, the

post-secondary sector and industry lead-

ers, the future of b.C. is looking bright. S

in January 2015, Premier christy clark announced funding for cnc to purchase new trades-training equipment to support students studying in in-demand fields that are critical to lng.


training thE nExt gEnEration of skillEd tradEsPEoPlE

First Nations communities through-

out b.C. are launching emblematic

training-to-employment programs

for aspiring apprentices, and industry

partners are taking notice.

March 31, 2015 was an exciting day

for more than 15 students from North

Vancouver as representatives from gov-

ernment, industry, Kwantlen Polytechnic

university (KPu), and CLAC gathered at

the Squamish Nation training and Em-

ployment Centre to celebrate the accom-

plishments of students, teachers, and ad-

ministrators of the ACE It Piping Founda-

tion program. the shop floor was buzzing

with activity as highly engaged young ap-

prentices spoke passionately about their

future career paths.

Squamish Nation’s ACE It Piping Foun-

dation, an important initiative under the

province’s Skills for Jobs blueprint, is de-

signed to provide opportunities for high

school students to accelerate their career

in the skilled trades. Students complete

their first level apprenticeship and gain

valuable on-site experience with CLAC

contractors.

Alongside Chief Ian Campbell, Minis-

ter Naomi Yamamoto, the ItA, KPu, and

the principal of Mountainside Second-

ary, CLAC b.C. director David Prentice

applauded the work of the trade centre’s

dedicated staff and students. Prentice

said that he hopes the program “will

inspire other First Nations communi-

ties throughout british Columbia to run

trades training programs for tomorrow’s

generation of tradeswomen and trades-

men.”

CLAC and its contractors have been

privileged to participate in a similar

training-to-employment venture with

the haisla Nation, whereby thompson

Rivers university delivered construction

craft worker training to apprentices on

the job site via CLAC’s innovative Virtual

Classroom training System. the stu-

dents, employees of Ledcor in Kitimat,


and members of the haisla Nation were

able to complete their education in two-

hour modules after working hours, and

as such, were not required to miss any

work time, to their own benefit and the

contractors.

the energy sector is eagerly await-

ing the arrival of the next generation

of young, skilled tradespeople. As brit-

ish Columbia inches closer to the start

date for the main civil works of the mas-

sive Site C Dam construction, and LNG

plants in Kitimat and Prince Rupert

appear to be actualizing, conversations

surrounding labour supply and skills

shortages may peak in the months to

come. While estimates of the impending

shortage vary, b.C.’s Labour Market out-

look to 2022 forecasts one million job

openings and a notable deficit of trades

and technical occupations.

Students such as those at the Squa-

mish First Nation training and Employ-

ment Centre are preparing themselves

for the upcoming opportunities, sharp-

ening their skills on the tools, but also

developing key life and leadership skills,

which will make them very attractive

to potential employers and, hopefully,

positive examples in their work and life

communities.

A variety of initiatives will be required

if british Columbia is to meet industry’s

needs in the next decade, but perhaps

the most critical are such practical, train-

ing-to-employment programs develop-

ing in partnership with First Nations

communities. We have the unique op-

students such as those at the squamish First nation training and employment

centre are preparing themselves for the upcoming

opportunities, sharpening their skills on the tools, but also developing key life and leadership skills, which will make them very attractive to potential employers and, hopefully, positive examples

in their work and life communities.

portunity to equip british Columbia’s

youth with the skills and aptitude to

accomplish their life goals. therefore,

we must make meaningful efforts to

ensure that these emerging ventures are

successful if we are to meet industry’s

demand for skilled workers and foster

vibrant relationships throughout our

province. S

We are a modern union, committed to bringing our members the best possible workplace. Our approach is constructive, not confrontational.

We create a positive bargaining climate, seeking win-win outcomes. We embrace open, honest, transparent communication and look for common ground.

With fair working conditions, wages, benefits, and a safe, respectful environment, we create a better workplace community for everyone.

We are better together.

Discover the difference at clac.ca

Positive Work-Life


faCt or fiCtion: B.c.’s ici construction sector on the future of lng

With LNG talk in british Co-

lumbia, what’s the con-

struction industry’s take?

here are some insider thoughts from

the sector.

type the letters LNG into a search en-

gine and a multi-tabbed maze of news-

paper articles and glossy PDF guides will

gradually develop on screen. the use of

northern b.C.’s natural resource, lique-

fied natural gas is one topic leading the

conversation concerning british Colum-

bia’s future. And while there’s plenty of

information to access, this topic’s rele-

vance to the construction sector is a per-

spective of the story better told by those

in the industry.

through a survey conducted online

by the british Columbia Construction

Association (bCCA) and construction

Business magazine, members from the

sector shared thoughts and expecta-

tions surrounding the LNG proposals.

Generally speaking, LNG plans turning

from talk into production seems like a

lengthy timeline to some, but will it re-

ally happen? the answer appears to be:

likely.

In terms of the overall industry opin-

ion, 68 per cent of those surveyed be-

lieved the LNG opportunities are real.

of those members who believed these

opportunities were relevant to their

business, trade contractors took a lead

in the category of most optimistic. Con-

sidering the scope of the potential LNG

projects, there’s hope they can get a

“sliver of the pie”.

In terms of regional opinion in north-

ern b.C., it’s higher with 76 per cent be-

lieving LNG’s future is set to become a

reality. Some northern companies are

getting ahead by preparing to bid for

those opportunities on the horizon. by

these standards, it may simply come

down to a matter of when.

“We better not miss the boat. the gov-

ernment better start making decisions.”

that’s not to say northern b.C. hasn’t

been experiencing development activity

while waiting for final LNG investment

decision. things are happening in these

traditionally dormant communities: ho-

tels and food chains are setting up shop

and taking on the investment risk, local

malls are getting a second life, and sub-

division housing is booming. All build-

ing up for what’s likely to come.

but let’s be clear: the point that never

changes in the conversation about b.C.’s

future is the need to develop local, qual-

ified skilled trades workers. Regardless if

a wrench does tighten the first bolt for

an LNG plant’s construction, worker

development in the trades is an impor-

tant issue. LNG could be one more way

to help with the projected b.C. skilled

tradespeople shortage.

the opportunities from LNG are

there, especially for new entrants to

b.C.’s labour force.

As it stands, LNG plans currently rank

with more relevance to the northern b.C.

companies, while opinion from south-

ern b.C. focuses on the labour drain

concern. It’s valid, yet a miss in terms of

recognizing the apprentice development

opportunity.

the proposal estimates an opening

of 58,000 jobs within b.C. construc-

tion. And, while programs such as the

bCCA’s StEP and Foreign Skilled Work-

ers (FSW) ensure skilled tradespeople

are connected to b.C. construction em-

ployers, the investment in apprentices

the British columbia construction workforce is lacing up its boots to prepare for a future with lng opportunity.


ensures skills training, upgrading, and

long-term benefits for the province. out

of the companies surveyed who believed

the LNG opportunities are relevant to

their business, 73 per cent currently hire

apprentices.

“I feel the opportunities are real and,

should one or more [plants] be de-

veloped, there will be positive impact

throughout the province’s construction

sector. the spinoff for service and sup-

ply will increase and diversify demand

for industrial development.”

With the programs in place working

to feed qualified skilled workers into

the trades market, LNG potential for job

creation translates into lifelong skillset

learning for workers. Even with the con-

cern for LNG’s potential to largely im-

pact the current labour pool, it’s best to

see as a refreshing opportunity. For the

first time in many years, apprentices, in-

cluding underutilized groups such as ab-

original workers and youth, are getting a

warmer welcome and greater chance for

development in the workforce.

the LNG revenue received from long-

term supply agreements will filter back

into the province for greater funding in

the education and training, contributing

to the advancement of these apprentices

within the workforce. the plan could

also help generate even greater oppor-

tunities for companies in northern b.C.,

places like Kitimat and Prince Rupert,

and throughout british Columbia.

“they seem to be mega projects tai-

lored to companies much larger than

ours. We would like to be involved and

use the LNG opportunities to grow our

company.” this comes back to working

for that piece of a potentially very large

pie and building on opportunity.

And perhaps that’s a good way to sum

up the construction sector’s LNG story:

one of growth and opportunity in many

ways, when the day comes and those

glossy plan guides become present-day

reality. S

of those who identified lng opportunities as relevant to their business in the survey, trade contractors have high hopes for securing a “sliver of the pie”.

46%

26%

9%

6%

4%

3% 3% 1% 1% 1%

Trade Contractor

General Contractor

Supplier

Construction Manager

Manufacturer

Other

Insurance/Bonding

Human Resources

Types of ICI construction companies who see LNG opportunities as relevant to their business.

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aCCEss to largEst gas rEsErvEs in B.C. rECEivEs long-aWaitEd uPgradEs:Fort nelson river Bridge By Kathy smith

on July 24, 2015, MP bob Zim-

mer, MLA Pat Pimm, and

Northern Rockies Regional

Municipality (NRRM) Mayor bill Streep-

er announced funding to upgrade the

Fort Nelson River bridge. the bridge is

the only route to b.C.’s expansive world-

class gas plays, the Liard basin, and the

west side of the horn River basin. the

Federal government is funding up to

$17.5 million, and the Province is fund-

ing $22 million for this major highway

corridor upgrade.

Known as the bailey bridge, it is locat-

ed on highway 77 and is often referred

to as the Liard highway. It is the only

river crossing that links communities

with emergency services and essential

goods and supplies.

built in 1984 when the highway be-

came operational, it was constructed

in preparation for a visit by Pope John

Paul ll. the single-lane ACRoW bridge

is unique in that it is one of the longest

in the world, spanning over 1,000 feet.

Its timber deck over concrete piers and

abutments has supported truckers in

the natural resource industry, tourists,

and community members for the last 31

years, and it has long been showing its

age.

For the past 10 years, increased traf-

fic due to natural gas development and

heavier loads has resulted in complete

decking failures, even with the crossing

of a light pickup truck. the audible and

visible waves experienced when cross-

ing are undeniable proof that the bridge

must be brought up to modern stan-

dards before a major incident or fatality

occurs.

When the bridge is out of commission

or loads exceed the maximum allowable

weight, those servicing the natural gas

industry have to be re-routed through

Alberta and the Northwest territories.

the long additional distances affects the

competitiveness of companies and has a

negative economic impact on b.C.

During the upgrades, the timber deck

will be replaced with a modern two-lane

steel girder and concrete deck, and im-

provements will be made to strengthen

the piers and abutments. Completion is

expected in the fall of 2016.

Following the announcement, MLA

Pimm, Mayor Streeper, and MP Zimmer

the Fort nelson river Bridge from the river bed.


discussed the benefits the bridge up-

grades will bring to the area, such as safe

modern access to the natural gas plays

and local employment. they later com-

mented on projections for natural gas

activity in the NRRM.

“the bridge upgrade is part of the

new 10-year transportation plan, ‘b.C.

on the Move’,” said Pimm. “We’ve heard

overwhelming support from british Co-

lumbians to keep our highways, roads,

bridges and side roads in good condi-

tion. Keeping drivers safe along our

northern transportation network is top

priority, and once this project is com-

plete, the bridge will be able to handle

greater capacity. the upgrade will pro-

vide a safer, wider crossing for years to

come, enhance the movement of goods

and services to communities, and pro-

vide economic benefits. the project is

also expected to create jobs in Fort Nel-

son and surrounding areas.”

Mayor Streeper called the announce-

ment a huge bonus for the province.

“upgrades to this bridge will open

the door for major infrastructure to go

ahead within the natural gas plays. this,

as well as upgrades to the Alaska high-

way secures Fort Nelson as the service

sector for the oil and gas industry in this

area – we have qualified local people

here to achieve this,” he said.

Mayor Streeper recalled a recent dis-

cussion with Chevron’s Rod Maier, man-

ager of Kitimat LNG external relations

and communications. Mayor Streeper

said to Maier that, “Some quick math in

transportation – this bridge will save you

$250,000 on every rig you move to the

Liard and every rig you move out, so on

one rig alone that’s a half a million bucks

– the three of us got you a half a million

bucks, and you’re going to argue over a

northern contractor for a thousand dol-

lars on a bid – give me a break.” Streeper

said Maier acknowledged his point, and

that Chevron is onside with this.

on the issue of local employment,

MP Zimmer added, “What bill [Streeper]

said is the thing to do – talk to the big

companies directly and tell them that all

things being equal, they need to make

hiring local workers first a priority. this

connects to the role of Energy Services

bC. Local contractors should be looked

at first and they should have the right of

first refusal. Meanwhile, there are trade

barriers within our country and we don’t

want to establish more, but we also want

to make sure that companies coming

into b.C. are paying b.C. taxes.”

the Northeast b.C Mayor’s Coalition

was created to identify these kinds of

problems Pimm went on to say.

“If everybody works together and we

have a solid firm position – that will

carry a lot of weight when challenging

companies to do their local piece with a

social conscience,” said Pimm.

MP Zimmer agreed, “If you comple-

ment this with local MLA’s and MP’s

who are willing to help, this carries even

more weight.”

As a long-time advocate of the North-

ern Rockies Regional Municipality

(NRRM), Mayor Streeper read emails of

support he received from industry. Chev-

ron’s Maier wrote, “I want to thank you

for your leadership on this file. Without

your continued support and determina-

tion to advocate both the provincial and

federal government on this issue, I am

sure we would not have received such

a positive outcome… the voice of Fort

Nelson is well heard. the support that

Fort Nelson continues to show for our

project and industry is both recognized

and appreciated.”

Quicksilver’s communication and

stakeholder relations representative

Ericka belleth emailed, “Quicksilver

Canada Inc. is pleased to hear about the

recent decision to upgrade the highway

77 bailey bridge… this is a positive step

to development in the area… by remov-

ing limitations set by the old structure,

this should allow for optimal and effi-

cient use of resources for development.”

Spectra Energy vice-president of ex-

ternal affairs, Gary Weilinger, wrote, “…

For more than 50 years, Spectra Energy

has been a proud partner in the Fort

Nelson community, providing jobs and

economic growth to the area by process-

Federal and Provincial funding was announced to upgrade the Fort nelson river Bridge, paving the way for further development in B.c.’s largest world-class shale gas plays. Mla Pat Pimm, northern rockies regional Municipality Mayor Bill streeper, and MP Bob Zimmer gave the long-awaited news.

PHOTOS By PAuL COuPE, NRRM DEPuTy CORPORATE MANAGER.


ing and transporting locally produced

natural gas… the infrastructure invest-

ment will support the prosperity of the

community for years to come…”

In anticipation of increased activity in

the area, MLA Pimm commented on the

recent agreement with Petronas and pro-

jections by the Canadian Association of

Petroleum Producers (CAPP).

“We just passed legislation that en-

ables the Petronas deal to go forward.

b.C. Liberals want to see that move for-

ward. All the way through the discus-

sions NDP voted no to the jobs, and they

wouldn’t do it if it was up to them. We

made a good deal with Petronas – we’re

giving them 25 years of security so they

can make the big investments. We think

that’s important.”

he added that a recent document re-

leased by CAPP says Canada currently

produces about 14 bcf (billion cubic

feet) of gas per day, which goes to all of

the country’s markets.

“If we do not get a new marketplace,

their projections are that by 2022 or

2023 we’ll be down to about 12 bcf of

gas. If we get LNG and the Asian market,

that number will go up to about 16 or

17 bcf by 2023. those are very important

projections and we know we need to get

LNG on the go. When Petronas gets past

the environmental assessment, they’ll be

able to make their final investment de-

cision, and you’ll start to see movement

here. Shell is following very closely, and

I’m hopeful we’ll see LNG projects that

will stimulate the economy here again.”

MP Zimmer gave an update on the

progress of the environmental assess-

ment.

“We wanted to make the best business

case for LNG in b.C., and the last rung

is the environmental assessment. We an-

ticipate a draft report by the end of sum-

mer and hopefully things will continue

to move on as planned.”

MLA Pimm added that if another gov-

ernment were to come into power, the

agreement states that Petronas would be

compensated for any direct taxation to

them, such as LNG or royalty structure.

therefore, Petronas would not be affect-

ed under the 25-year agreement. there is

also room to negotiate a better deal, and

it is believed that other companies com-

ing in will see this legislation as a model

to aspire to, and negotiate accordingly.

“We’re looking to get this industry up

and running,” said Pimm. “We’ve had to

make concessions to make this happen,

and we know these companies need to

have that kind of security if they’re go-

ing to build a $30- or $40-billion-dollar

project – they have to know things aren’t

going to change for them, so that’s criti-

cal.”

In closing, Mayor Streeper said the

Petronas agreement paves the way for

other companies, such as Chevron, in

their plans for LNG.

“Woodside is in partnership with

Chevron, and because of their exper-

tise in Australia, they’re handling the

liquefied natural gas while Chevron is

handling the drilling. Chevron will not

make any major decision on what type

of LNG plant they’re going to build, and

Woodside will not make any major deci-

sion on the drilling and transportation.

You can’t have two majors competing on

these decisions – what they’ve done is

brilliant, a true partnership.” S

the bridge buckles under heavy vehicles.


is rEgulatory harmonization PossiBlE aCross ProvinCEs? it dEPEnds. Bc safety authority might have a solution for you

For years, provincial regulators

have been hearing industry’s plea

for harmonization of the adopt-

ed technical safety standards and regu-

lations across provincial borders. While

Canadian codes and standards are es-

tablished and intended for nation-wide

adoption, each province adopts codes

and standards in different manners, ei-

ther in whole, in part, or with stated ex-

ceptions through their individual regu-

latory frameworks. these differences in

regulatory adoption can be explained

for reasons that are unique to the cir-

cumstances surrounding each province’s

industrial makeup and legislative priori-

ties.

b.C.’s Alternative Safety Approaches

(ASA) regulation may offer a solution

to industry’s interest in standards har-

monization. the ASA regulation offers

instruments to enable full regulatory

compliance to the requirements of b.C.’s

Safety Standards Act, while allowing for

flexibility in the recognition of safety

practices adopted in other regulatory

jurisdictions. In essence, through the

ASA regulation, the bC Safety Authority

(who administers this regulation) can

allow for harmonization of safety pro-

grams already in place and functioning

elsewhere within your operations.

Sounds simple? It should. but it

doesn’t come without some important

effort. In order to have an existing safety

management program recognized in b.C.,

you, as the business owner or operator,

must propose your program as an alter-

native to the established and prescriptive

regulations in this province. Accordingly,

you must do this by recognizing the dif-

ferences between b.C.’s technical safety

regulations and those referenced in your

existing operating program. While most

people would say this approach holds

true for any other regulatory jurisdiction,

the difference in this case is that you may

not need to alter your established practic-

es as long as it can be demonstrated that

the safety outcome of your practices will

meet the intent and objectives of b.C.’s

safety standards act.

Current adopters of the ASA regulatory

instruments have found value in four pri-

mary areas:

1. administrative process alternatives;

2. harmonization of international codes

and standards, and/or of technical

standards and proven operating prac-

tices in other regulatory jurisdictions;

3. equipment certification alternatives;

and,

4. alternatives to prescribed worker quali-

fications.

how can you begin to develop an al-

ternative proposal?

First, invest some time to under-

stand what the prescriptive regulations

call for, and the safety objectives of

these requirements. Seek local advice

from licensed contractors, consultants,

and even the bCSA. You can also visit

www.safetyauthority.ca/regulations.

Second, compare your company’s

existing safety management system/

program with the requirements of

b.C.’s regulations.

third, list the gaps or regulatory

“rub points” where current practices

may not appear to meet the prescribed

method of compliance. As an example,

this might be an identification of spe-

cific codes, standards, or regulation

clauses referring to a process, equip-

ment certification, or worker qualifica-

tions.

Fourth, articulate how your current

practices achieve the intent or safety

objective for the identified items above.

Finally, submit your information in

an alternative proposal application,

and you are well on your way to a for-

mal assessment.

While the above procedure sounds

simple, we acknowledge that some

owners may be unfamiliar with local

codes, standards and regulations. be

rest assured, the bCSA is here to help

simplify your approach to full and in-

novative compliance to b.C.’s Safety

Standards Act.

For more information about B.c.’s

alternative safety approaches regulation,

contact Fred tewfik, Bcsa’s leader of

business development, at

[email protected]. S


Why Wait for B.C. lng?Putting natural gas to work in the northern rockies

With some of the richest nat-

ural gas plays in Western

Canada, the horn River,

Liard and Cordova basins are poised to

pay significant future dividends in the

Northern Rockies Regional Municipal-

ity. there’s just one problem – with de-

cisions and investment for LNG projects

on b.C.’s west coast stalled, the gas avail-

able in Northeast b.C. stays put, with

little economic benefit to Fort Nelson

and its surrounding region.

Community development officer

Mike Gilbert of the Northern Rockies

Regional Municipality is kept busy with

inquires of a different nature; what oth-

er opportunities are there for products

of natural gas?

“over the past year we’ve had signifi-

cant interest from a variety of investors

for value-added natural gas products,”

says Gilbert. “Feasibility plans for proj-

ects we’ve consulted on have ranged

from small-scale LNG facilities utilizing

existing natural gas infrastructure, and

destined for more northern markets (Yu-

kon, Northwest territories and beyond),

to gas-to-liquid developments which

produce diesel primarily from natural

gas that could easily supply the local

market with a competitively priced, lo-

cally produced product.” Working with

b.C.’s Major Projects team, those in-

volved think these are among the best

kinds of projects for communities like

Fort Nelson, and have the best chances

for long-term success.

the Northern Rockies continues to

strive for a diversified economy, initiat-

ing a Forestry Rejuvenation Project in the

spring of 2015, coined a “Roadmap for

Forest Sector Innovation”. At its founda-

tion, the roadmap details moving from

producing value-added forest products

in mega-mills to developing a cluster

of manufacturing facilities in the region

that complement one another and fully

utilize the wood coming from the forest,

including the residue from the manu-

facturing facilities. It would seem that

oil and gas sector development is being

approached through a similar lens – the

more variety, with the most value added,

the better – and more sustainable.

With a range of affordable properties

available in all sectors (heavy and light

industrial, commercial and residential),


an enviable tax structure for business,

and a service sector well prepared to de-

liver, the opportunities for development

are endless. Fort Nelson’s proximity to

rail, the Alaska highway, and the con-

ventional gas plays make it a competitive

place to do business in the north. over

300 new businesses of all sizes have

established themselves in Fort Nelson

since 2009, with a continued expecta-

tion of growth beyond 2015. Reaching

the peak of business success is no small

feat – though doing so in the Northern

Rockies is well within reach.

contact invest northern rockies by email,

[email protected],

or phone, 250-774-2541.

you can also visit them online at

www.investnorthernrockies.ca. S


arE risks assoCiatEd With lng in thE EyE of thE BEholdEr?By stewart Muir

For the first-time visitor to osaka’s

Kyocera stadium, the three gigan-

tic spheres a stone’s throw from

the gates look, fittingly, like gigantic

baseballs. Inside them is a highly flam-

mable substance – yet nobody seems to

mind.

At a recent baseball game featuring

the osaka tigers and the orix buffaloes,

fans were treated to a uniquely Japanese

style of play accompanied by the rau-

cous cheers of what are surely among

the world’s most enthusiastic sports

fans.

What the fans were not making any

noise about at all were the three im-

mense propane containers located on

the grounds of the osaka Gas Company

right beside the stadium. Although pro-

pane is potentially more hazardous than

other forms of natural gas – because it is

a heavy gas that pools at ground level –

the presence of the holding tanks were

of no more significance than passing

trains and other human activities also

going on close by.

It was intriguing to me because, at the

same time, like many british Columbi-

ans, I am aware of public concerns here

about potential safety hazards created

by the shipping of natural gas in a lique-

fied form. here at home, the shipping

routes proposed are largely through in-

dustrial or sparsely inhabited areas.

We have heard from leading world

experts that LNG is a very safe form of

natural gas that is difficult to combust

and would pose, in worst-case scenar-

ios, low risks to people. In addition,

the Resource Works Citizen’s Guide to

LNG found that LNG is transported by

sea to be handled at terminals located

in densely populated urban areas in at

least eight places in the world.

So why are some groups so concerned

about shipping LNG from an expanded,

44-year-old LNG facility on the north

arm of the Fraser River in Delta?

Recently, I had the chance to ask a

Japanese natural-gas executive why he

thought baseball fans in osaka were

so blasé about the location of gigantic,

potentially explosive tanks beside their

stadium.

he reflected before delivering his

thoughtful reply. “It is because propane,

to Japanese people, means being a mod-

ern nation,” he said.

“We did not have energy sources of

our own as we modernized. People em-

brace this energy source and that is why

it is a natural part of the landscape at the

stadium.”

Concerns about LNG probably also

stem from the fact that overseas trade

in Canadian gas is a new activity. until

now, all our natural gas sold abroad has

gone (by pipeline, not ship) to a single

destination: the united States.

When you actually start to look

around british Columbia urban areas,

what’s striking is that there are potential-

ly explosive fuel sources all around us.

At Costco, for example, consumers think

nothing of lining up, with children in

tow, to have their barbeque propane

tanks refilled from a giant holding tank.

As the attendant fills the tanks, cars

containing tanks full of potentially

explosive gasoline drive past, and no-

body bats an eye. Elsewhere, retailers

exchange empty propane tanks for full

ones using storage lockers onsite. What

if some person bent on evil decided to

do harm?

LNG has been shipped by sea without

major incident since 1964. For Resource

Works’ Citizen’s Guide to LNG we tried

to find any incidents that had not been

reported, to no avail. We’re also aware

there is a vigorous lobby arguing that

LNG ships will inevitably “blow up”, cre-

ating catastrophic damage to those near-

by. the evidence for this assertion could

not be validated.

Any use of fossil fuels creates addi-

tional issues, not just of safety, but of en-

vironmental protection. this is another

area that has drawn legitimate public

questioning.

Citizens need to ask tough questions,

and they deserve honest answers.

over time, it’s to be expected that

where LNG is located near urban areas

in british Columba, local residents will

eventually regard it as a neutral part of

the landscape, just as they do the propane

tanks at Costco and Superstore. As with

propane in Japan, the presence of LNG

exports will likely also come to be associ-

ated with a prosperous, modern existence

in a nation where real risks are managed

through sound laws and regulations car-

ried out by competent professionals.

stewart Muir is the executive director of the

resource Works society. learn more about

the new think tank that is

creating a respectful, fact-based public

dialogue about the responsible use of

British columbia natural resources at

www.resourceworks.com. S

any use of fossil fuels creates additional issues, not just of safety, but of

environmental protection. this is another area that

has drawn legitimate public questioning.


aPPrEntiCEshiP Programs –training the future of skilled trades in B.c. By gary Herman

b.C.’s Skills for Jobs blueprint:

Re-engineering Education and

training is helping to align

training and education with in-demand

jobs. there has not been a better time

than now for employers to get involved

in hiring of apprentices and training

them to become the journeypersons of

tomorrow.

Support during the apprenticeship

journey is critical, and the Industry

training Authority (ItA) has systems in

place to ensure resources are available

for sponsors and apprentices to con-

tinue on the pathway to success in job

training, education and certification. A

team of 15 apprenticeship advisors was

created as an extension of ItA’s custom-

er support team. Apprenticeship advi-

sors are based in various regions across

b.C. and are in tune with local trends,

demands and barriers, allowing them

to provide timely and relevant support

to both employers and apprentices. Six

of the 15 advisors are also focused on

supporting apprentices within aborigi-

nal communities. ItA has also added

an industry relations team and 11 sector

advisory groups to better understand,

communicate and respond to each in-

dustry’s needs in b.C. (www.itabc.ca/

industry-engagement).

In addition to the skilled team of ap-

prenticeship advisors, the free Appren-

ticeship Job Match tool, available on

the WorkbC website, www.workbc.ca/

trades, is also a great resource for em-

ployers looking for the right appren-

tice. Employers can use the online tool

to post apprenticeship opportunities

with specifications and requirements

of the job and connect with qualified

apprentices from its database. Cur-

rently, there are over 5,000 apprentices

in the Apprenticeship Job Match tool.

Employer sponsors play an integral

role in growing b.C.’s skilled trades

community. training and investing in

skilled trades apprentices will ensure

that the province is able to respond

and provide b.C. with the right skilled

workers when and where they are

needed.

For more information, visit www.itabc.ca.

gary Herman is the

chief executive officer of ita. S

Secure your future workforce today to meet the demandsof tomorrow. Find the right apprentice for your business with the Apprentice Job Match Tool.

Visit: workbc.ca/trades

File: ITA-198465-06 JobMatch_BCOil&GasReport Project: Job Match Magazine Ad

1/4 pge Horizontal: 4.625" x 3.375" Project Manager: Michelle Hazlett Designer: Nathan Gowsell

Client: ITA AUGUST 21, 2015 11:00 AM Operator: DJung

Colours: 4C Supplier: BC Oil and Gas Report

TO SUCCESS.


B.C. ComPany turns uP thE hEat on oil and gas ProJECts

blies consisting of eight 200hP glycol

pumps, shop-assembled on nine ship-

ping module skids for a 34-metre-by-

14-metre pump building on site.

•Two14.7MWandone10MWglycol

heater for an oil processing facility in

the Christine Lake area in Alberta.

•Two 3.3 MW glycol heaters c/w skid

building, pumps and expansion and

drain/fill tanks, for a gas plant project

in northern b.C.

•Awasteheatrecoverysystemtorecap-

ture the latent heat in the exhaust gas

from natural gas-fired turbines to gen-

erate nine MW of thermal oil for an

organic Rankine Cycle (oRC) system

to create 2.2 MW electrical.

Wellons Canada has been in opera-

tion since 1976 and has 80,000 square

feet of fabrication capacity at its Port

Kells, b.C. facility. A member of the Wel-

lons Group of Companies that includes

Wellons Inc. in Vancouver, WA and Wel-

lons FEI in Ste-Julie Quebec, Wellons’

thermal project experience includes 50

gas-fired projects and 250 biomass-fired

thermal projects, 40 of which are ChP.

For more information about Wellons

canada, please visit www.wellons.ca. S

how do we heat a merchant

tank of heavy crude oil from

-5°C to 13°C in 24 hours?”

that was the technical challenge pre-

sented to Wellons Canada in early 2007

by a prominent Western Canadian oil

pipeline and merchant tank facility op-

erator who needed a solution to heat

and transfer a merchant tank of crude

oil to their pipeline, on demand, in win-

ter conditions.

Drawing on 30 years of experience in

biomass and gas-fired thermal energy

projects for the wood products industry

across North America, Wellons’ solution

of a gas-fired 24 MW glycol heat me-

dium system, employing glycol to crude

oil heat exchangers, was operational at

one of the pipeline operator’s merchant

tank facilities by mid-2008.

Since that project, Surrey, b.C.-based

Wellons Canada has designed and fab-

ricated 23 modular heat medium pack-

ages for o&G projects in british Colum-

bia and Alberta. these projects have

included:

•Eight17.5MWprocessheatmedium

and two 7.5 MW utility heat medium

heater packages for two gas plants in

the horn River area of b.C. Wellons’

scope for each of these two projects

also included modular pump assem-

“

encana - 4 x 60 MM Btu/hr and 1 x 25MM Btu/hr glycol heater.

spectra energy - 2 x 11MM Btu/hr glycol heaters.

Pembina gas services - 2 x 12MM Btu/hr glycol heater.

Wellons Canada specializes in the design and fabrication of gas fired heat medium skids, ranging in size from 2 MW to 20 MW. Wellons heaters can be horizontal or vertical configu-rations, and are a double helical coil, triple gas pass design.

The heater skids can be shipped with all combustion equipment, gas trains, fluid piping and field devices shop installed. Control room units can be totally shop assemble pre-piped and pre-wired with appropriate field connections.

Wellons also designs and fabricates waste heat recovery units for oil & gas facilities and gas turbines.

Wellons Canada Corp.19087 – 96th Ave.Surrey, BC, V4N 3P2

Tel: 604 888 0122Toll Free: 1 888 211 6077Fax: 604 888 2959

E-mail: [email protected]: www.wellons.ca

Total Projects from

Concept to Completion

The Wellons Service Edge

Wellons_BC-Oil-&-Gas_Ad_07-2015.indd 1 2015-07-30 3:51 PM


rElaxing systEms for fluid transfEr undEr shiP motions By Jack X. liu, Pe, Phd, President of liuxon

Liuxon has emerged from an advanced pipeline consult-

ing firm (Liu Advanced Engineering, LLC) to a tech-

nology/solution provider for fluid transfer. Liuxon has

developed several proprietary transfer solutions for loading/

unloading ships using flexible hoses. these solutions simplify

transfer operations, enhance safety, and reduce both CAPEX

and oPEX significantly.

Composite hoses are available for years and offer great flex-

ibility. they comprise metal rings for strength in the hoop di-

rection and multiple polymeric layers for pressure containment

and strength in the axial direction. the hoses have been used

for loading/unloading ships, but are often stored either on the

ground/platform or freely hung at one end high above a water

level. the hoses laid on the ground could be worn or kinked,

and the hoses hung high above the ground require a high sup-

porting structure and swivel joints. Liuxon has developed solu-

tions that use hoses much more effectively and increase hose

service life.

Stationary transfer system (side by side)

the system includes a vertical shaft, a hose saddle supported

on the top of the shaft, and hoses hung freely between the sad-

dle and a rigid pipe that ends at the shaft as shown in Figure

1. the hoses are fluidly connected to a fluid source or destiny

through the rigid pipe, and have a mobile end intended for

fluid communication with ship manifolds of a vessel. During

non-transfer periods, the hoses are stored inside the shaft and

protected from winds, ocean waves and uV lights. For fluid

transfer, simply pull some of the hose out of the shaft and tie in

the mobile end to ship manifolds. With a dry connector/cou-

pler at the mobile end of the hoses, there is no need to purge

the fluid inside the hoses before and after the fluid transfer.

this reduces the connecting and disconnecting time by 60 per

cent. With a properly designed weight unbalance mechanism,

the mobile end of hoses can be automatically retrieved back to

the saddle once it is disconnected from the ship manifolds. the

ship is then ready for departure.

For cryogenic fluids, pipelines typically extend from an on-

shore facility (e.g., storage tanks) to a loading platform. the

offshore end of the cryogenic pipelines is set free for thermal

contraction or expansion and the thermal stress in the pipe-

lines is reduced by at least 50 per cent. the hoses can accom-

modate pipe end displacement, in addition to ship motions. In

this case, the hoses need to be made of cold-resistance materi-

als, such as stainless steel for metal rings, and polyamide for

pressure containment. When a cryogenic pipeline is oriented

inclined with a high end at an onshore facility and a low end

at a loading platform, an automatic vapour-removal technique

can be used during non-transfer periods where vapour travels

towards the high end automatically. More information about

this long pipeline transfer system is available in the 2014 B.c.

oil and gas report.

the system allows the ship to be docked with mid-ship

manifolds next to the loading platform (i.e., the vertical shaft)

and uses the mid-ship manifold for fluid transfer with a short

length hose (e.g., less than 30 metres). the vertical shaft can

be anchored to the seabed and serve as a part of berth for a

vessel. When two ships are docked at the opposite sides of the

shaft, this system can also be used for ship-to-ship transfer (e.g.,

tanker lightering, fuel barge to ship, between FLNG/FRSu and

LNG tanker).

Mobile transfer systemA mobile transfer system is necessary when fluid transfer is

needed at a temporary location (e.g., emergency, or a location

without a port facility), or at a harsh environment where two

ships are not safe for side-by side operations within a short dis-

tance (e.g. several metres).

this mobile transfer system comprises a pair of hoses (e.g. a

front hose and a rear hose), a dual reel for storing hoses, and

means for keeping hoses in tension during deployment and flu-

Figure 1: side-by-side loading operation.


id transfer. the hoses are coupled at the reel and wound around

the reel in the same winding direction. For deployment, pull

the external end of hoses and unwind the hoses simultaneously.

this system can establish fluid communication between a fluid

resource and fluid destiny separated by hundreds of metres of

water. It can be relocated for transfer operations elsewhere or

for storage. It reduces cost by up to 80 per cent and has a num-

ber of applications as follows:

1) Between ship and shore

the mobile system can be set up quickly for fluid

communication between a ship and a fuel truck as shown

in Figure 2. Alternatively, the truck can be a pipe manifold

fluidly connected to a storage tank. It is ideal for loading/

unloading a small-scale tanker, or for filling bunker fuel

to a ship. these mobile systems allow a berth or port for

loading various fluids.

2) Between two ships (tandem configuration)

two ships are typically docked in a tandem configuration

in a harsh environment with a safe distance varying from

50 metres to 120 metres. one mobile transfer system can

establish fluid communication between a stern manifold

on a stationary vessel and a bow manifold on a tanker.

two sets of mobile transfer system may be arranged in

series when two vessels are docked with midship manifolds

hundreds of metres apart. It is ideal for unloading a

production vessel, such as FPSo, or providing fluids from a

service vessel to a drilling vessel, or filling bunker fuel to a

ship at an open sea.

3) Other applications

this system can be used for fluid transfer between a SPM

buoy and a tanker. With a suction header being fluidly

connected at the external end of the front hose, this system

can be used for cleaning oil spill at a water surface or for

dredging operations at a shipping channel.

the mobile transfer system can sit on a service vessel, or float

on a water surface with a buoyancy device. the system can sail

to, or be towed into a position between a fluid source and a flu-

id destiny where fluid transfer is needed. unwind hoses simul-

taneously and make a fluid connection with an external end of

hoses fluidly connected to the fluid source and fluid destiny

respectively. the hoses are kept in tension by applying a torque

on the reel opposite the winding direction of hoses.

With suitable hoses, the systems can be used for transferring

any fluid that can flow through a tube. It includes crude oil,

gasoline, diesel, bio-fuel, bunker fuel for ships, drilling mud,

drinks (water, wine, juice), lubricates, chemicals, LNG, LPG,

ammonia, liquid ethylene, liquid nitrogen, etc. the mobile

transfer systems offer unbeatable price and performance for

transferring cryogenic fluids at a site subjected to natural disas-

ters, such as tsunami and storm surges.

Even though this mobile system is intended for a large sepa-

ration distance with floating hoses, it can also be used for side-

by-side fluid transfer in calm water with short hoses or a short

paid-out length of long hoses.

both systems use hoses for accommodating ship motions

and eliminate the needs for swivel joints. Fluid communica-

tion can be quickly established between a fluid source and a

fluid destiny at a designated location or a temporary location.

they can use existing mid-ship manifolds for fluid transfer and

eliminate the need to modify ships. both systems simplify con-

necting/disconnecting procedures and enhance operation safe-

ty with significant cost savings.

For more information about liuxon and the systems,

visit www.liuxon.com. S

Figure 2: Fluid transfer between fuel truck and ship.

Figure 3: Fluid transfer between two ships in tandem configuration.41 Fawcett Road, Coquitlam, BC V3K 6V2

Office: 604-525-1002 | Email: [email protected]

Corrosion Management | Asset Rehabilitation | Lead Abatement | Industrial Marine Painting

Certified Coating Specialists Inc.Professionalism in painting, safety, environmental stewardship – realizeable value


maintaining a safE and hEalthy WorkPlaCEBy scot Filer, President, lions gate risk Management group

the most affected by mental health

problems or mental illness. Lost pro-

ductivity due to absenteeism, presen-

teeism, and turnover related to mental

health problems and mental illness

cost organizations approximately $6

billion in 2011. It is estimated that the

total cost to the Canadian economy

over the next 30 years will amount to

$2.5 trillion.

Across the country, more than 6.7

million people in Canada are living

with a mental health problem or men-

tal illness. Each and every Canadian

is affected through their personal and

professional relationships. the Men-

tal health First Aid training program

we offer is an initiative of the Mental

health Commission of Canada. our

program is designed to help managers,

supervisors, and human resource per-

sonnel recognize – and appropriately

manage – mental health-related issues.

the Mental health First Aid Canada

basic course aims to improve mental

health literacy by providing attendees

with the skills and knowledge neces-

sary to better identify and manage de-

veloping mental health problems and

mental health crises in their organiza-

tion. It is a proactive hR education and

awareness strategy that will assist those

with supervisory responsibilities with-

in your company that make informed

decisions about mental health-related

problems.

Course content:this 12-hour course, taught over two

full days, introduces attendees to four

categories of mental health problems:

1. Substance-use disorders

2. Mood disorders

3. Anxiety disorders

4. Psychotic disorders

Lions Gate Risk Management

Group is based in Vancouver,

b.C. with an office in Calgary,

Alta. our focus is to assist our corporate

clients with identifying and managing

the wide range of business risks that

they are exposed to. We provide opera-

tional support from three pillars of ex-

pertise: proactive, ongoing, and reactive

risk management. our various business

lines ensure that our clients do not have

to allow the events to set the agenda.

one of the most valuable assets for

companies is their human capital. In

our business, much of what we do is

led by our ability to acquire intelligence

and act proactively versus reactively.

We therefore recognize how vital our

corporate clients’ human resources are

and offer the evidence-based Mental

health First Aid (MhFA) Canada train-

ing course as a proactive service to help

organizations stay ahead of the pack in

their awareness, risk assessment, risk

management, and support capacities. As

an employer, it is clear why the mental

wellness of our human resources needs

to be a priority. the Mental health First

Aid Canada training that Lions Gate

can provide can make the difference

between having the knowledge to recog-

nize a developing crisis versus having to

respond to one in its aftermath.

How does Mental Health First Aid relate to business risk?

Working-age Canadians are among


Attendees will learn:•Thebasicsaboutriskfactors

•Howtorecognizesignsandsymptoms

for each disorder

•Recommended initial Mental Health

First Aid actions to take

•How best to guide a person towards

appropriate professional help

•Crisis firstaidskills forsituations, in-

volving acute stress reactions, panic at-

tacks, overdose, suicide, and psychotic

disorders

organizations committed to creating

a mentally healthy workplace, in turn,

report benefits to their recruitment and

retention efforts, reduced disability and

absenteeism costs, and a reduction in

workplace conflicts and reported griev-

ances. the result is greater operational

output for your organization.

We are here to help you maintain a

healthier and productive workplace.

contact us today by emailing scot Filer,

president, at [email protected], or

phone, (604) 383-0020, ext. 1. you can

also get in touch with andrea ringrose,

Ma, MHFa instructor and risk manager at

[email protected], or (604) 383 0020,

ext. 6.

our expertise is your peace of mind. S

• We are a corporate risk management firm, with our primary focus being in the energy sector.

• We offer a range of proactive and reactive service solutions across various business lines.

• Our objective is to identify, assess and prioritize our clients risks and vulnerabilities, and then to respond with a coordinated, economical application of solutions and resources.

• We are a ‘one stop shop’ for security, investigation, assessment, intelligence and consultation services, including CZ246.1 audits.

• We have our own in-house uniformed security guard service and K9 security and detection service.

“Our Expertise is Your Peace of Mind”

Lions Gate Risk Management Group | ARC Protection CorpEmail: [email protected]: 604 383 0020 | Mobile: 604 375 1669 | Toll free: 1 888 212 2026 Web: www.lgrmg.ca | www.arc-corp.ca


innovation at mCElhannEy land survEy’s fort st. John BranCh

Since opening their Fort St. John

branch in 1977, McElhanney

Land Surveys Ltd. (MLSL) has

worked hard to earn the enviable repu-

tation of providing unmatched, excep-

tional surveying services for the oil and

gas industry in Northeast british Co-

lumbia. Staffed by a group of energetic,

skilled, and engaged local workers, the

branch’s attention to detail and sense of

community has made the branch an in-

valuable player in the region.

our team of experts in Fort St. John

has access to one of the most complete

datasets in Northeast b.C., as well as

state-of-the-art equipment and software.

the branch’s mapping and CADD groups

are equipped with an abundance of lo-

cal knowledge and expertise to take on

a wide variety of jobs, while the profes-

sional and administrative staff focus on

offering a level of service that is unprec-

edented in the industry. by employing

such a versatile group of staff, the branch

is even able to provide custom map-

ping services and over-the-counter sales.

In addition, the Fort St. John branch is

uniquely the only survey firm that has an

in-house Crown Land Referral Group in

Northeast british Columbia.

our excellent field crews are equipped

with Level 1 line locating and ground

disturbance training to provide under-

ground facility locating services along-

side their typical surveying work. McEl-

hanney’s field staff are different than

the typical crew because they both col-

lect and manipulate the data. this cre-

ates an advantage as they are then bet-

ter equipped and prepared to make

improved decisions on the fly, helping

clients save time and money.

All MLSL employees are backed by a

world-class hSE program, where train-

ing and prevention are a major focus to

ensure employees are kept safe. Some

highlights of the program include a CoR

certification, in-vehicle monitoring, and

faller certification.

one of the core values of McElhanney

is our commitment to providing a high-

quality product that is second-to-none


made it clear that they will not cut cor-

ners on jobs to save money. Rather we

are working on improving our internal

processes and looking to technology to

help find efficiencies, while continuing

to provide the high-quality product our

clients have come to expect. Currently,

MLSL has begun to utilize unmanned

aerial vehicles (uAVs) and laser scan-

ners to help their clients save time and

money. by being a pioneer in technol-

ogy, McElhanney is set on a path to be a

leader in what has typically been a tradi-

tional industry.

MLSL’s Fort St. John branch offers ex-

tensive experience in oil and gas surveys

of all types, as well as:

•Constructionsurveys

•Controlsurveys

•Municipalandresidentialsurveys

•Legalsurveys

•Windfarmandminesurveys

•Highwaysurveys

•Canadalandssurveys

•LiDARplanninganddesignsupport

•Crownlandreferralapplication

support

•Datamanagementandtracking

•Customizedmapping

•GeoworksGISsystem

Mlsl’s Fort st. John branch is located at

8808 72nd street, Fort st. John, B.c.,

v1J 6M2. the branch can be contacted at

250.787.0356. S

SERVICING GREAT CLIENTS SINCE 1910.

Surveying | Mapping | Environmental | Engineering and Materials Testing

Contact an office near you.McElhanney.com

on every job. the surveying industry

is an increasingly competitive market

where costs count. McElhanney has

our team of experts in Fort st. John has access to one of the most complete

datasets in northeast B.c., as well as state-of-the-art equipment and software.


EffiCiEnCy through innovation

In 2013, Summit Liability Solutions Inc. (Summit), like many profes-sional environmental providers, had

to evaluate how to increase work effi-ciency for a limited amount of available labour resources in what was a stretched labour market. Summit and its team of managers and senior specialists looked at several options that were available in the industry, as well as evaluated the development of our own management system which could be used in real time to track fieldwork data, assign fieldwork, and to schedule work in the field in the most efficient manner as possible for all reclamation and remediation projects. Summit’s goal was to secure a powerful project management software, which al-lowed field and office personnel to easily access GPS-based site information in or-der to coordinate and execute field activi-ties allowing for cost-saving initiatives. In 2015, with the downturn in the oil and gas sector, this management tool became far more important to implement, as effi-ciency is absolutely necessary to manage workloads in a way that maximizes tight profit margins and manage the ever-so-important costs on projects as accurately and as up-to-date as possible.

After careful deliberation of the vari-ous options available, Summit decided to opt into an agreement with Ark Platforms Inc. (Ark Platforms), located in Calgary, Alberta and Vancouver, british Columbia. Ark Platforms provides a web-based man-agement system with a GIS background, called ARKIt. Ark Platforms consulted with Summit and has been able to de-

velop this system in a manner to achieve data capture that is consistent with the requirement of most of Summit’s oil and gas clients, thus aiding our project man-agers and senior specialists in day-to-day management of sites.

the ARKit system allows for GPS-based site information to be loaded for all cli-ent sites. All staff within our environ-mental assessment division have access to the program so that information can easily be shared throughout office and field locations. A quick snapshot from the program will allow any project man-ager and client to see visually the breadth of geography that we currently cover with reclamation and remediation services for clients across Western Canada, as well as the site-specific information they need to make decisions. Figure 1 gives a reference of some of the site allocation Summit has across the province of Alberta and gives a visual example of how the software could be used simply for the allocation of field-based specialists and deployment of staff for fieldwork.

In the screenshot above, each circle represents a site location that is currently managed and tracked in our system. the colour of each of the circles represents the assigned client, and the icon on each

of the circles represents the stage of work. Any number listed on the icon identifies multiple sites within that area, and by fur-ther zooming in on the image, individual sites will be populated.

this project management system is a powerful tool to allow our project man-agers and regional managers the ability to stay actively engaged in terms of capacity requirements. by logging into the system, our staff in any location can have real-time data on current site information, upcom-ing and in-progress field work, laboratory data and EM surveys, actual spend versus budget, and timelines for deliverables, as can be seen in Figure 2 above. Data can also be exported in various formats and is currently reformatted following export to meet our clients’ reporting requirements. Any new sites that are added or approved by a client can then be loaded into our system and compared against any addi-tional upcoming work in the area. our re-gional managers can then determine what resources will be required.

Project managers are trained in iden-tifying cost savings opportunities for clients, so that work can be parceled to-gether in an area, and costs can be shared across clients for travel and mobilization. ARKIt is one of the tools that Summit has invested in to increase our efficiency both in the field and the office, and provides our clients with real-time data, which is essential in decision-making, whether it be for the allocation of limited resources, or for ensuring field activities are being scheduled with cost control being the pri-mary objective. S

Figure 2: arKit active site project info, tasks and budget.Figure 1 – screenshot of active alberta locations.


littlE to no EnvironmEntal imPaCtremote building solutions that leave operating sites in their natural state By amanda Monaghan, Marketing Manager, Britespan Building systems inc.

Exploration companies are more

and more looking for ways to

construct safe, strong, and reli-

able site buildings for the exploration,

processing, and storage of commodities,

as well as equipment storage buildings,

and even worker housing for remote

sites. And it is becoming increasingly

more important to leave exploration

sites in their natural state.

Conventional buildings, such as steel

buildings, have traditionally been the

choice for these sites, but are they the

best choice? these buildings can be cost-

ly, difficult to ship to remote areas, can

be time consuming to construct, and are

essentially permanent structures. None

of these are ideal in an industry that

often requires buildings to be rapidly

constructed, has a variety of building

uses, and may, at some point, have to be

moved to a new work site.

one of the first things that make fab-

ric buildings a preferred solution for oil

and gas operators is that they can either

be permanent, temporary, or entirely

portable. this is achieved by offering a

number of foundation options, from

concrete blocks, shipping containers, or

a base rail foundation. these are all op-

tions for temporary or portable building

solutions, in addition to the many per-

manent options. Fabric buildings can be

completely deconstructed and moved or

stored when a site is finished with it, cre-

ating little environmental interference.

using shipping container founda-

tions allows fabric building manufactur-

ers to create hybrid building solutions,

that are particularly ideal for the oil

and gas industry because the containers

themselves act not only as a foundation

for the building, but as functional space

used for employee housing, change

rooms, washrooms, workshops, storage,

etc. this really allows fabric-building

owners to maximize the use of their

buildings.

In addition to the foundation options,

fabric buildings are also completely cus-

tomizable, from door sizes and types,

insulation option, and length, width

and height.

What would you use a fabric building

for? Just about anything. the buildings

Authorized Britespan Building Systems Dealer:

1.800.407.5846www.britespanbuildings.com

1.866.935.4888www.spanmaster.ca

Why chooseBritespan™BuildingSystems• Portable, temporary & permanent solutions, ability to extend or relocate

• Rapid installs in remote areas

• Built on containers - use for storage, offices, employee housing and more • Post-welding hot dipped galvanized steel for superior rust protection

• Tested ability to withstand corrosive commodities

• Extra high clearance for truck safety & unloading

• Naturally bright interiors for safe working environments

Base rail foundationsHeavy equipmentWarehousing

All Weather, All-Purpose Modular & Permanent Building Solutions.


can be used for warehousing, work-

shops, vehicle, equipment and com-

modity storage, and coverage for work-

ing machinery. the possibilities really

are endless. the extra-high clearspan

design of the buildings allow for large

and heavy equipment and machinery

to operate within the building without

issue. Fabric buildings also increase the

longevity and maintain the condition

of equipment and machinery, by pro-

tecting them from the elements.

Employee safety and creating a

healthy working environment is anoth-

er reason fabric buildings far exceed tra-

ditional buildings. Customers of fabric-

covered buildings often say the environ-

ment is the most comfortable and safest

environment for their workers, with

superior air quality and ventilation, and

the floods of natural light create a shad-

ow-free, safe working environment.

And of course, another reason fabric

buildings are the ideal solution for oil

and gas companies is that they can be

constructed anywhere, no matter how

remote the location. they are often

built in less time than traditional build-

ings, making for almost immediate job

sites.

Customer overviewWith one of the heaviest snow loads

in british Columbia, a customer out of

terrace, b.C. required a building in a

remote location that could withstand

the snow load of 5.4Kpa. the building

would be used as a warehouse for stor-

ing heavy equipment used to build a

future pipeline. this customer worked

with britespan authorized dealer Span-

Master Structures Ltd. out of tappen,

b.C. together, SpanMaster and the cus-

tomer decided the right building solu-

tion for the remote site was a 60-foot-

wide by 300-foot-long britespan Apex

building Series on a solid row of con-

crete blocks.

under permit conditions, the block

foundation and structure was built on

a compacted gravel pad. by using the

block foundation, SpanMaster was able

to provide the customer with a building

that had little to no environmental im-

pact on the site, should the operations

decide to move the building to another

location. the building could be decon-

structed and removed without any last-

ing changes to the land, its surround-

ings, or the environment.

britespan and SpanMaster were

able to ensure the rigorous standards

and guidelines of the operating com-

pany were met prior to the construction.

Structural drawings and letters of assur-

ance regarding the process and schedule

were supplied. SpanMaster provided the

customer with a complete and turnkey

building ready for use with a construc-

tion timeline of 10 days from start to

finish.

SpanMaster has a reputation across

british Columbia for providing their

customers with quality installations

and the best fabric building solutions

from britespan. both companies are

100 per cent Canadian owned and oper-

ated, providing Canadian-manufactured

products to Canadian customers.

As winner of the Industry Supplier

of the Year Award for the 2015 Canada

oil & Gas Awards, britespan is always

striving to provide the best building so-

lutions to the oil and gas industry, and

growing and innovating with them as an

industry partner. Working with expert

dealers like SpanMaster Structures Ltd.

allows us to meet and exceed our cus-

tomers’ needs and requirements, as well

as the environmental demands of the

operating sites. S


PiPElinEs arE still thE safEst altErnativEBy Brian cochrane, business manager, iuoe 115

Canada is currently having an

unprecedented national con-

versation about the safety and

efficacy of energy pipelines. however,

there is one critical question that has

been lost in the national debate over

pipelines and their safety: what, if any,

are the alternatives to pipelines?

the members of IuoE 115 have been

building pipelines for decades. the vast

majority of the time these pipelines op-

erate safely and efficiently, often passing

through communities unnoticed. but

some people are concerned about the

risk of pipeline leaks causing spills and

other environmental damage, and say

that no more pipelines should be con-

structed.

but what are the real risks involved

in transporting energy, and how do

pipelines compare to the alternative? Is

blocking future pipeline construction

really the safer, more environmentally

responsible alternative?

Much of the energy transported in

Canada that does not move by pipeline

instead travels by rail. however, as the

Lac-Mégantic disaster shows, rail trans-

port is even less safe than pipelines.

train tracks go through populated areas

and cross streets, introducing a large ele-

ment of risk that pipelines do not share.

the statistics on accidents relating to

energy transportation show that there

are far more incidents involving trucks

and trains than there are pipeline spills.

trains and trucks also face other risks

that pipelines do not: derailment, in-

clement weather, and road-grade traffic

all introduce an element of risk.

So long as our society continues to

consume energy, we will need to trans-

port it, and pipelines remain the safest

way to do so. Canada already has nu-

merous pipelines operating throughout

the country, many of which are older

and already at maximum capacity. by

building modern pipelines with thicker

walls, advanced pump station sensors,

and other safety features, we can im-

prove even further on the safety of these

systems, reducing accidents to the abso-

lute minimum.

Pipelines are also the most efficient

way of moving energy around the

country, reducing the environmental

footprint of our consumption. unlike

trains and trucks, pipelines do not pro-

duce carbon emissions. As the most ef-

ficient means of moving energy around,

they are also the most environmentally

friendly transportation method avail-

able.

the simple reality of our modern soci-

ety is we use oil, and not just in our cars.

Everything from the farm machinery that

helps grow our food to the truck that

brings it to the grocery store requires oil.

As a result, a properly constructed and

maintained pipeline system is a necessi-

ty. Pretending otherwise does not change

this fact, and can lead to decisions that

are well-meaning, but ultimately coun-

ter-productive. Even if we ban all pipe-

line construction in the country, the en-

ergy will still need to be moved, either

by older, less safe pipelines, or by rail

cars and tanker trucks travelling through

communities across the country.

the over 11,500 members of IuoE 115

live and work in british Columbia, and

we believe that pipelines are the safest

and best way to transport the energy our

society needs. S

so long as our society continues to consume energy, we will need to transport it, and pipelines remain the

safest way to do so.


sand managEmEnt solvEd By innovativE Canadian filtration systEmBy niki reitmayer

Sand management has always

been a challenge for any oil and

gas producer, especially in the

non-conventional plays of Western Can-

ada. Faced with the risk of a washout,

many industry-leading producers are

turning to specialists in the field of sand

filtration.

Calgary-based Dynacorp offers one of

the only filters that eliminates all sand,

as opposed to the more common sand

separator.

“We encourage potential customers

to be proactive instead of reactive with

sand management,” said bruce McK-

enna, Dynacorp’s vice-president of busi-

ness development. “Drilling technology

and completions have changed and so

has the development of our sand filter

designs, configurations, and technol-

ogy. We offer one of the only – if not the

only – sand filters with a unique patent

that eliminates 100 per cent of sand, ef-

fectively avoiding washouts.”

In November 2009, a pipe burst at a

well site situated near the small village

of Pouce Coupe. the bC oil & Gas Com-

mission released a report determining

the cause of the washout was “internal

erosion resulting from flowing fracture

sand suspended in the gas stream”. the

leak and resulting investigation triggered

a policy change in the province, obligat-

ing all operators of gas well sites to abide

by stricter sand management rules.

Proper sand filtration is desired by

industry leaders to avoid expensive and

potentially dangerous washouts. this

technology is most effective in liquid-

rich gas wells stimulated though hydrau-

lic fracturing. With proper sand manage-

ment, water can be recycled in fracking

operations, reducing damage to the en-

vironment.

“traditional desanders cannot handle

slugs of denser fluid,” McKenna ex-

plains. “When slugs appear, the accom-

panying sand is passed through, or the

desander is clogged and the well needs

to be shut in. What we build, rent, and

sell at Dynacorp can filter particles down

to 50 microns in diameter.”

With Dynacorp’s innovative, patent-

pending sand filter, a large, horizontally

arranged knock-out chamber removes

coarse material through velocity and

pressure drop. then a small, vertically

arranged filtration chamber screens the

finer materials for 100 per cent sand

filtration. the ability to automate their

sand filters and integrate into a produc-

er’s SCADA systems offers a stand-alone

solution.

“We have the ability – because we

manufacture our own product – to cus-

tom-build and design through our full


engineering team. Accompanied with our

field service group and technical sand fil-

ter field staff, we set ourselves apart from

any and all competition.”

Dynacorp has a manufacturing facility

in Clairmont, Alberta and a head office in

Calgary, Alberta, which offers the ability

for custom, in-house design and engineer-

ing. With a wide range of configurations,

the company is able to meet the demands

of any well type specific to a clients’ need.

As a fabrication company, Dynacorp offers

flexible terms and can either rent, rent-to-

own, or build for purchase, depending on

a clients’ budget and needs.

“because of the innovative product we

design, there is comparison between us

and our competition,” added McKenna.

“If it’s a true sand filtration system that a

client is looking for, than they need look

no further than Dynacorp.” S

Dynacorp’s fully equipped & certified facilities produce a comprehensive range of engineered, custom-fabricated process equipment & vessels.

• full in house engineering & design.

• meeting customers’ requirements for quality, delivery, safety and cost-competitiveness.

• ensuring the design and material integrity of the equipment we build exceeds the customers’ expectations.

• pressure vessels, separators, line heaters, treaters, flare stacks, KO’s and much more.

403 217-1332 | www.dynacorp.ca510, 815 8TH AVE S.W, CALGARY, ALBERTA, T2P 3P2

SPECIALIZED PRODUCTION INTEGRITY

Dynacorp is the industry leader in North America for fabricating well testing equipment.

• leading edge design and engineered equipment that continues to raise the bar for service, quality and delivery.

• 3D design software for realistic layout views.

• equipment that lets our clients maintain operational integrity for their clients on site.

• maximum pressure and temperature rating, minimum weight designs.

• first class QC program includes comprehensive documentation ensuring safety is first.

• storage tanks, line heaters, pressure tanks, high pressure flow line, flare, stacks, etc.

Dynacorp’s patented sand filter design offers the industry’s only true 100% sand filter technology.

• we are a fabricator and not just a reseller.

• we are able to custom build to customer specifications.

• we are the leader in research & development for sand management & development of our 3 configurations of sand filters.

• in-house design, engineering and fabrication.

• we offer rentals, rent to own, and sales of our filters.


BoilErmakErs Co-oPEratE to gEt thE JoB donEBy richard Macintosh

When companies have a tough construc-

tion, shutdown, or maintenance job to

do, there’s one source they can rely on

for the skilled workers and the expertise

they need to get the job done: Canada’s

boilermakers union.

throughout the energy industry, boil-

ermakers play a crucial part in building

plants and keeping them operational.

With hundreds of qualified boilermak-

ers and boilermaker-welders available in

british Columbia alone, the union says

it can handle any job, no matter how

big.

“boilermakers will be a lynchpin in

the development of b.C.’s liquid natural

gas (LNG) developments,” says Joseph

Maloney, the Edmonton-based inter-

national vice-president of the union.

“We’ve worked with our employers over

the last 40 years to develop systems

and processes to successfully overcome

the many challenges the LNG industry

faces.”

boilermakers are the people who will

erect, weld, repair, test and maintain the

boilers, tanks, pressure vessels, liquid-

tight containers and power plants that

LNG plants require.

Hundreds availablethrough boilermakers Lodge 359,

based in Langley, contractors can find

the skilled professionals they need to

get these jobs done properly, safely, and

on time.

besides its hundreds of members in

b.C., Lodge 359 can count on the help

of Red Seal-certified boilermakers from

across Canada, who frequently travel to

sites in the west to work for months at

a time on large-scale projects. As well,

the union can rely on members in the

united States, and has developed its

own innovative temporary foreign work-

ers (tFW) program to bring in qualified

boilermakers from Europe if none are

available in Canada.

but the boilermaker advantage goes

beyond simply supplying skilled work-

ers. the union works with its employers

to maintain a safe jobsite, and to ensure

its members are trained to use the latest

methods to get the results contractors

need.

this year, the union has launched

boilermakers total health (bth), a

health and safety program that is unique

in the industry. It not only promotes safe

worksites, but works to ensure that every

boilermaker is fit to do the jobs that are

required, whether they be working in

confined areas or at heights, or require

specialized training such as working

with respirators. the program, co-ordi-

nated by a full-time health and safety

director, is partnered with the world-

renowned u.S. National Institute of oc-

cupational health and Safety (NIoSh).

the union and its contractors have

made a multimillion-dollar investment

in state-of-the-art training centres across

Canada so that members can continu-

ously upgrade their skills to deal with

new challenges. these include helping

members learn project-management

and jobsite-supervision skills.

one of the key skills boilermakers bring to the oil and gas industry is tank building, as shown here.

Boilermakers from lodge 359 in British columbia specialize in all kinds of welding for tanks, ductwork, pressure vessels and other components needed in the lng industry.

PHOT

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MAC

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Co-operation worksthe proof of the union’s co-operative

work philosophy is in the pudding, and

the latest example is the $4 billion up-

grade of Kitimat’s Rio tinto aluminum

smelter. boilermakers Lodge 359 sup-

plied over 300 journeypersons and ap-

prentices during the modernization

project and the revamp of its power

plant.

“We had challenges. but the boil-

ermakers and the contractor came to-

gether to get the job done for our client,

which is what this is all about,” noted

Ken Stenfanson, a boilermaker general

foreman. “We had a crew that was fo-

cused on safety. We had a lot of heavy

lifts that required teamwork. heavy ob-

jects were lined up correctly because we

have people that have the skills to do the

job.”

“We installed two kilometres of duc-

twork,” said boilermaker steward brent

Pennington. “Each piece had a unique

shape, size and weight, creating a dif-

ferent centre of gravity. With proper

planning and teamwork, we got the job

done.”

It’s the kind of cooperation that will

power the resource economy of b.C. into

the future.

richard Macintosh is a vancouver-based

representative for the international

Brotherhood of Boilermakers. He can be

reached at (604) 219-3589. S

skilled boilermakers work as a team to install crucial components in facilities for the oil and gas industries.


high-tECh simPlifiEs safEty and savEs monEy

If an army moves on its stomach,

then a company moves on its data.

In order for a business to be com-

petitive, it needs to handle all of its data

more efficiently and effectively.

traditionally this has focused on fi-

nancial information, but there has been

a dramatic increase in data collection

through stringent health and safety reg-

ulations. It’s not uncommon for work-

ers to spend up to an hour laboriously

filling in safety forms, JSA’s, and audits

before even starting on revenue generat-

ing work. While no one denies the need

for strict safety controls, there is often a

battle to temper that requirement with

a desire to become more efficient and

competitive.

technology has successfully reached a

level where it can provide a solution that

meets the needs of the field teams, the

accountants and company executives at

a low cost and with a quick RoI. We are

now moving closer to that 1970’s notion

of a paperless office.

Western Industrial Solutions (WIS), a

b.C.-based software tech company, has

developed taskSafe, a solution that au-

tomates manual forms in the field to an

effective digital format.

Combined with mainstream Win-

dows tablet-based technology, taskSafe

allows the “boots on the ground” to rap-

idly fulfill safety and business documen-

tation with more completeness and due

diligence than traditional paper-based

forms.

“We’ve talked with a lot of compa-

nies. Without exception, they hate paper

forms,” states Chris Mitra, Coo of WIS.

“Companies find them wasteful and un-

productive. It takes vast manpower to

fill them in, gather them, file them and

try and collect any useful data. Many of

these companies think that a pen and

paper are cheap, but in reality the extra

handling involved is costing a fortune.

Not only that, the manual process leaves

a company with a big liability concern.

We developed taskSafe to address those

issues.“

It’s true that more and more business-


es are moving away from paper. While

the low cost and ease of use were attrac-

tive, it’s obvious that there are inherent

flaws. Companies stuck in the paper

world face issues like weak document

security, inferior project management,

loss of data backup and redundancy,

lack of insight into critical data, and

weakened teamwork functionality. this

all equates to a considerable liability

concern. According to Paperless office

2014: An update from the battlefield, an

AIIM (Association for Information and

Image Management) survey of nearly

450 respondents, 68 per cent agree that

business-at-the-speed-of-paper will be

“unacceptable” in the near term.

Mitra has no problem coming up with

success stories.

“our customers are seeing improve-

ments on day one of use. the company

beta-testing taskSafe become our first

customer. they saw their service guys

saving 30 minutes or more on paper-

work for every job. With seven guys out

in the field and four or more jobs a day,

that adds up to a huge savings. Plus, the

head office is able to submit invoices

almost immediately. In the past, they

could wait days or weeks until the guys

were able to drop off all the safety pa-

perwork and documentation into the

office.”

taskSafe was built with input from

workers to make their job easier. Effi-

ciencies gained on the jobsite increase

as the data moves through the organi-

zation. It also includes a user interface

designed to be optimal for daylight use

and offline modes that keep field crews

operational and fully compliant even

without network access. other notable

features include electronic storage of

company oh&S manuals and safe work

procedures, as well as handling of its’

material safety data sheets, including the

three- year rotation. these items alone

will eliminate the need for stacks of

binders often found in service vehicles.

With its short learning curve, fast

adoption and quick RoI, taskSafe pro-

vides you with the technology and in-

formation that you need to move your

company forward.

to learn more about tasksafe, visit www.

westernindustrialsolutions.com, or email

[email protected]. S

Still doing business at the speed of paper?

TaskSafe can lower costs, increase due diligence and save money with a field system that:

• Eliminates inefficient paper forms

• Makes document management easy

• Manages your Material Safety Data Sheets

• Works online or offline - always keeping employees fully compliant

• Increases safety awareness

Learn more at westernindustrialsolutions.com or call 778-471-1043

Leaders in workforce automation and

safety documentation management

We are…Safety Simplified

tasksafe was built with input from workers to make their job easier. efficiencies gained on

the jobsite increase as the data moves through the

organization.


sdi ExPanding into nEW gloBal markEts

Specialized Desanders Inc.tM (SDI)

provides an engineered solution

to the hazards associated with

fracturing and formation sand entrained

in high-pressure multiphase flows. With

pressure ratings up to 41,370 kPA (6,000

psig), SDI offers a range of recently de-

signed tILt Desanders from 10 through

24 inches in diameter.

Increasing industry demand for its

multi-phase desanding equipment has

ignited rapid expansion into new global

markets in recent months, specifically

within the u.S. and Australia. Special-

ized Desanders Inc.tM has opened up

operations in Pittsburgh, u.S.A. and

has been selling units in Queensland,

Australia to Steelhead Desanders. Grow-

ing desander appeal is correlated to the

growing popularity of horizontal, multi-

stage stimulated liquid-rich gas wells.

SDI is committed to meeting increased

demand by producing and manufactur-

ing larger units featuring greater capaci-

ties and higher pressure ratings.

Within the desander, temporary sepa-

ration of the multiphase flow allows a

stratified flow to develop as gravity sepa-

ration causes the sand to drop through

the liquid and collect inside the unit.

the clean discharge stream then passes

through above-ground infrastructure,

including chokes, valves, and other pro-

cess equipment. this technique greatly

reduces the risk of erosion and equip-


ment damage, which in turn makes the

process substantially safer.

Installed at the wellsite, SDI De-

sanders remove fracturing proppants

and produced sand from the produc-

tion fluids, preventing uncontrolled or

accidental release of hydrocarbons that

might occur with erosion damage. A

typical design targets 95 to 98 per cent

removal of all particulate, 150 microns

or larger. At lower flowrates, particles as

small as 60 microns may be removed

without any filter.

SDI’s engineers model the perfor-

mance for each desander installation to

ensure that the equipment will provide

optimum performance over an expected

range of operating conditions. With the

sand removed, the liquid and gas phases

recombine as they leave the desander,

ready to feed into the gathering infra-

structure under pressure. Notably, it is

not necessary to flare early gas produc-

tion to remove the sand, yielding higher

revenues, as well as achieving regulatory

compliance. Wells can be put on pro-

duction sooner, immediately following

testing, without concerns about equip-

ment damage, disturbance to the envi-

ronment or nearby land-owners, espe-

cially at sites where production contains

hydrogen sulphide (h2S) gas.

SDI desanders function effectively

over a wide range of flowrates. Sized to

work with high initial rates, they are also

able to handle the higher gas phase ve-

locities that develop as production con-

tinues and flowing pressures drop. this

allows the same equipment to remain in

service, despite changing conditions. For

wells with continuing sand production,

it is not uncommon for the desander to

be on the well for extended periods of

time with some installation durations

reaching years.

SDI is taking great strides to expand

operations to meet global demand and

provide a safe, simple, and reliable sand

removal solution. S

SPECIALIZED DESANDERS INC.Multiphase Desanding ServicesSPECIALIZED DESANDERS INC.Multiphase Desanding Services

www.desanders.com

Specialized Desanders Inc.™ has been providing engineered Desanding solutions since 2001.

With SDI’s equipment, operators save money and keep their wells producing no matter how challenging the conditions.

Calgary, Alberta ........... (403) 233-2040Three Hills, Alberta ....... (403) 443-5453Grande Prairie, Alberta .. (780) 897- 8140

Fort St. John, British Columbia ........... (250) 793-5140Pittsburgh, Pennsylvania (412) 535-3396

[email protected]

TM

TM

sdi desanders function effectively over a wide range of flowrates. sized to work with high initial rates, they are also able to handle the higher gas phase velocities that develop as production continues and flowing pressures drop. this allows the same equipment to remain in

service, despite changing conditions.


tailorEd CommuniCation solutions for thE north Coast and BEyondBy rob dykman

Coast Mountain Wireless strives

to provide customized com-

munications solutions to

Northwest b.C. over the years, our busi-

ness has been established as the premier

communications partner for companies

operating in the north coast region; re-

cently our services and reputation have

taken us beyond our backyard.

Coast Mountain Wireless (CMW) was

proud to be named one of british Co-

lumbia’s top 100 companies measured

by percentage growth in revenue over

the past five years (from 2009 to 2013).

Although this award depicts the recent

growth and development of our busi-

ness, CMW has established itself locally

since 1999.

It was in 1999 that our business re-

alized the need to redesign the moun-

taintop repeaters. At the time, the de-

sign of the shelters were large and took

up to three days to install. Recognizing

the importance mountaintop repeat-

ers contribute to extending the working

range of two-way radios, CMW techni-

cians designed a lighter, more-efficient

model called the A-Pod repeater. the

A-Pod repeater allows the technicians to

completely test all functionality of the

repeater prior to installing on the moun-

tain. It can be slung in by helicopter as a

complete unit and installed in less than

four hours. the A-Pod has proven its

functionality, even in north coast winter

weather conditions.

In recent years, Coast Mountain Wire-

less introduced the northwest region to

the CoW; a transportable, self-contained

digital radio system that providers can

also use to provide local Wi-Fi and

Ethernet connectivity. the CoW, much

like the A-Pod repeater, was brought

in due to its efficiency and functional-

ity. Permanent structures are often used

on projects to provide communication;

however when projects have work sites

that continually change (a pipeline for

example), the CoW provides a commu-

nication system that will move when the

project does. the CoW can be transport-

ed within two hours, leaving behind no

permanent installations. utilizing the

on-board power system, which includes

a combination of generator, solar pan-

els, batteries and a mix of other electron-

ics, the system is very energy efficient.

coast Mountain Wireless head office in terrace, B.c.


the generator runs for a short duration

every three or four days, reducing emis-

sions and fuel costs. A 60-inch pneumat-

ic tower provides the necessary coverage

for two-way radio or Wi-Fi signals. In a

recent project, the CoW provided digital

radio service to over 700 users with flaw-

less coverage.

Another cost-effective, efficient solu-

tion Coast Mountain Wireless provides

customers is our satellite Internet ser-

vice. by using the latest in compression

techniques, monitoring and filtering,

satellite bandwidth for remote camps

can be competitively priced while pro-

viding the camps with Internet, email,

and phone service.

Coast Mountain Wireless is nearing

completion to achieve the Canadian

Federation of Construction Safety As-

sociation’s CoR™ (Certification of Rec-

ognition for health and Safety). With

customers in mind, our business is

currently working towards becoming

Industry Standard organization certified

(ISo 9001™,) to ensure quality standards

in all of our work.

Myself, as well as the staff at Coast

Mountain Wireless, look forward to work-

ing with new partners to develop commu-

nication customized to their needs. Please

contact us at 1-855-638-0577, or visit us

online at www.coastmountainwireless.ca.

rob dykman is the general manager at

coast Mountain Wireless. S

OUR SOLUTIONS.YOUR WORLD.

Motorola and the Stylized M Logo are registered in the US Patent and Trademark Offi ce. © Motorola, Inc. 2005.

Coast Mountain Wireless is the only authorized Motorola™ two-way radio

dealer west of Prince George.

Toll-free 1.855.638.05773650 River Drive, Terrace, BC V8G 3N9

www.coastmountainwireless.caMotorola XPR7550

CMW 4002d (BC Oil & Gas Report).indd 1 11-03-15 2:06 PM


a ComPrEhEnsivE solution for WorkforCE logistiCs managEmEnt

Workforce transportation has

become an increasingly

important component of

resource development projects, which

require a large number of workers with

a broad range of skills, both to develop

the infrastructure and to operate it on

completion.

North Sands Air Workforce Logistics

was formed in 2013 by the owners of

Flair Airlines Ltd. to provide compre-

hensive workforce transportation solu-

tions to a range of companies operating

in the natural resource development

and heavy construction industries in

Western Canada.

“the ability to efficiently and cost-ef-

fectively manage the transportation and

delivery of skilled workforces is a key

component in the successful operation

of many remotely located major proj-

ects,” says Chris Lapointe, director of

business development for North Sands

Air Workforce Logistics. the company is

exclusively focused on the needs of cli-

ents in this sector. North Sands employs

a team of experienced professionals who

understand the projects they service and

workforce transportation dynamics, and

who are able to provide start-to-finish

trip planning, management and track-

ing services. backed by Flair Airlines

Ltd., and with an established network

within the air carrier community in

Western Canada, North Sands can man-

age the movement of both large and

small workforce complements to project

sites serviced by international, regional,

or local airports.

Core capabilities•Centralized program management:

Single source for comprehensive work-

force logistics project planning and

operations.

•Aircraft procurement & vendor man-

agement: Ability to draw on a wide

variety of aircrafts from multiple ven-

dors.

•Aircraft scheduling & gauging: Trans-

portation schedules that are tailor-

made to fit your projects’ unique per-

sonnel requirements.

•Datatracking&reporting:Carefulre-

view of on-time performance, passen-

ger loads, yield management, etc. to

identify areas for potential increased

efficiency and cost savings, and to pro-

vide tracking for project KPI’s.

•Safety & quality assurance: Safety as-

surance and oversight of all transpor-

tation vendors with safety manage-

ment system integration.

•Reservations & inventory manage-

ment: North Sand’s reservation system

has been specifically designed to meet

the unique needs of workforce-related

transportation.

Fleet optionsWith North Sands, you will have the

ability to flex gauge across a variety of

aircraft types and vendors, allowing you

to mix and match resources together to

fulfill demand and increase reliability.


For example, in the event an aircraft is

unable to make a trip, an alternative will

be readily available to step in. North

Sands offers a diverse range of aircrafts

from seven to 158 seats. All aircrafts

sourced by North Sands operate under

transport Canada regulations and have

been successfully audited by multiple

aviation quality assurance organizations

to ensure the utmost level of transporta-

tion safety and operational quality.

Customized solutionsA key benefit of North Sands is the

ability to customize your workforce

transportation schedule to meet specific

operational needs. this includes your

choice of departure and arrival airports,

with access to private boarding areas at

most locations that are away from con-

gested main terminals. Additionally,

COMPREHENSIVE WORKFORCE LOGISTICS

WWW.NORTHSANDS.CA 1 587-885-1041

• Centralized Program Management• Aircraft Scheduling & Procurement• Reservations & Inventory Management• Safety & Quality Assurance

North Sands offers custom scheduling

for effective crew rotations.

the advancement of newer technolo-

gies can also increase safety. Some air-

lines have invested in Flight Data Moni-

toring (FDM or FoQA-Flight opera-

tions Quality Assurance) to enhance the

oversight on both mechanical systems

and personnel. though significantly ex-

pensive and not required by regulation,

this technology has a proven track record

of improving performance by provid-

ing more detailed feedback of flights to

those companies using it.

Safety, flexibility, and customization

can truly be the differentiators between

service providers, along with their re-

sponsiveness. ultimately, with any con-

tract, you are buying the people, not the

plane. North Sands is a group that is

responsive to your needs and is able to

customize your schedule at a moment’s

notice without sacrificing safety and ef-

ficiencies.

For more information about north sands,

visit www.northsands.ca, or

call (587)-885-1043. S

With north sands, you will have the ability to flex gauge across a variety of aircraft types and vendors, allowing you to mix and match resources together to

fulfill demand and increase reliability.


simPlE solutions for your ComPlEx ExCavationsBy dominique gunton

Zenco hydrovac Excavation Ltd.

is a Prince George, b.C.-based

company specializing in hydro-

vacing and daylighting of buried utili-

ties. the company was established in

2012 and currently have two tri-axle hy-

drovacs, one single axle, and are in the

process of completing a smaller unit to

help our clients with small space excava-

tions. our team is growing and we are

dedicated to being b.C.’s premier hydro-

vac company. We achieve this by having

excellent customer service and continu-

ally working with our clients to accom-

modate their needs.

Every year, buried infrastructure gets

damaged by traditional excavating. this

can cause damage to the environment,

and creates costly repair and clean up,

including interruption to vital pub-

lic services, such as 911, traffic lights,

electricity, and heat. Line strikes can be

caused by inaccurate drawings, emer-

gency situations where pre-planning is

not an option, or operator error. by us-

ing a hydrovac, you will greatly reduce

the impact to the environment and have

no damage to your infrastructure. this

is done by using high-pressure water

and a vacuum system. our operators are

trained in the safe exposure of all types

of utilities.

We offer a wide range of solutions

for all your hydrovac and daylighting

needs. Whether you need utility line ver-

ification, utility pole and anchor holes,

trenching for utility installation, steam

and industrial cleaning, or a complete

excavation to facilitate repairs to buried

infrastructure, our staff is ready to com-

plete it for you. We love challenges and

are continually coming up with innova-

tive ideas to help our clients complete

their projects on budget and on time.

our units are fully winterized and

have a large onboard burner to heat the

wash water. this allows us to work in be-

low-freezing temperatures and excavate

any depth of frozen ground.

by using remote hose we can reach ar-

eas up to 300 feet away from the trucks.

this allows our teams to access challeng-

ing areas, such as indoors, under pipe

racks, in ditches, and steep banks. this

can save the customer the cost of build-

ing a road and causes limited environ-

mental impact.

our trucks are equipped with suction

booms that rotate 360 degrees. We have

the ability to vary the size of the hose

from eight inch to one inch. this allows

us to clean out environmental moni-

toring wells and public water shut off

valves, as well as pipe and culverts.

With 20+ years of service, our teams

are well versed with all types of excava-

tions. We have experience in utilities,

mills, refineries, pipeline, environmen-

tal, trenching, sloping and shoring. our

estimator does excellent work of accu-

rately bidding on your projects and is

always offering cost-saving solutions.

our teams are provided with training

and follow a company safety program.

our program is continually evolving to


exceed regulatory compliance and indus-

tries best practices.

We are available 24 hours a day and

have a team available to respond to any

emergency.

We can be reached at 250-961-8287,

or by visiting our website at

www.zencohydrovac.com.

Whether you have a simple or complex

excavation we are the team for you!

dominique gunton is the safety manager

at Zenco Hydrovac excavation ltd. S

• Experts in complex excavations, including shoring and sloping for client safety• Multiple units with largest available water and debris capacity• Fully winterized with boiler for frozen ground• Operates up to 300 feet from the truck• High volume wash pump for efficient excavating• Diverse range of employee experience including mills, refineries, pipeline, utilities and environmental projects• 24 hour service

Simple solutions for your complex excavations

www.zencohydrovac.comStu Chizik, CEO Dominique Gunton, SAFETY MANAGER

250-961-8287 [email protected]


first in safEty and sErviCE

Industrial Scaffold Services L.P. is a

full-service scaffold and environ-

mental containment provider ser-

vicing the oil and gas, pulp and paper,

energy and utilities, mining and marine

sectors for over 25 years.

We have built a strong and dedicated

team that manages a diverse and recur-

ring base of large and reputable indus-

trial customers all over Western Canada.

our head office is in the city of Nanai-

mo, b.C. on Vancouver Island, where it

was founded almost three decades ago.

Al brown, president and founder, is still

very active in the business and everyday

aspects of the company.

our management and scaffolders

ensure the highest safety standards in

the industry. this sets us apart, as we

meet all your expectations in your most

demanding production and delivery

needs. Project consultation, ongoing

communication, mock modeling, and

specification review ensures our safety

and yours, and in turn, keeps the project

on target and on budget.

Industrial Scaffold Services LP is a

24-hour full-service scaffolding com-

pany that maintains a substantial inven-

tory for material rentals. our material

is delivered, erected and dismantled by

specialists and highly qualified field su-

pervisor personnel that maintain a safe

and efficient work environment for our

employees, your employees, and the

successful completion of any project.

our teams can design the scaffold-

ing from the ground up, around, over,

hanging or down to suit each project’s

specific needs.

Whatever the job, the challenge, or

the complex specifications, our men

and women, from apprentices to jour-

neyman to management, successfully

complete shut downs, maintenance, and

new projects.

Safety and the environment is a core

business value at Industrial Scaffold

Services LP. our shrink-wrap specialists

are the best in the business and meet all

hSE requirements. this is the best way

to contain potential hazards from enter-

ing the environment. It can also protect

workers from the environment itself,

such as strong winds, cold temperatures,

and other extreme weather conditions.

Some of our recent projects in the oil

and gas industry include:

•SpectraEnergy–Highwayflowsplitter

and kobes compressor upgrade

•Progress Energy – Lily Lake refrigera-

tion plant construction Phase 1 and 2

•CNRL–Weststoddart

•CanbriamEnergy–AltaresGasPlant

construction

these are a just a few of our projects.

Please visit our website for more great

pictures and information about

industrial scaffold services l.P. at

www.industrialscaffoldservices.com.

also, visit us in person at 2076 Balsam

road, nanaimo, B.c., v9X 1t5. S

Industrial Scaffold Services

Western Canada’s leading provider of scaffold and associated services


through ChallEnging tErrain, lhi tutl’it arE Corridor sPECialists

A collaborative approach to busi-

ness development led to the

success of LhI tutl’it Services

Inc. (LhI) starting back in 2008, and it

continues into the future. Working to-

gether, the team at LhI is keen to solve

those challenges facing resource devel-

opers across many sectors in the north

with services ranging from permitting

to clearing or design to implementa-

tion. With expertise in a wide range of

forestry and engineering-related disci-

plines, and mobility to take its services

anywhere, LhI has built a solid reputa-

tion of delivering results.

to date, LhI’s projects have special-

ized in road access and clearing-related

services for resource corridors, be it for

potential gas pipeline routes, or bC

hydro’s transmission lines. the terrain

remains the challenge as corridors are

built and maintained across our vast

province. hand fallers continue to be

part of a solution, though it is the spe-

cialized equipment, dedicated profes-

sionals, and consistent service record

that have given LhI its competitive edge.

the recent completion of the North-

west transmission Line is a case in point

as LhI was given praise and gratitude for

a job well done with its work in debris

disposal and specialized clearing proj-

ects throughout the entire new corridor.

With its care and attention to riparian

areas, and its sensitivity to environmen-

tal concerns, LhI has managed to devel-

op its select harvesting or whole tree re-

moval using equipment that is purpose

built for the challenge. Supervised by

a dedicated team of professionals, LhI

provides support services for geotechni-

cal projects supporting pipeline corridor

development to ongoing maintenance

for bC hydro’s vegetation management

of its vast network of transmission cor-

ridors.

And yet for each project, LhI looks to

establish relationships with local busi-

nesses or communities to provide tai-

lored solutions. Led by George Lacerte

of the Nadleh Whut’en First Nation, LhI

builds on collaboration and prides itself

on getting a job done well. building a

solid business and creating opportuni-


ties for individuals has been a corner-

stone of Lacerte’s success over the years.

It was especially gratifying to have been

recognized for LhI’s commitment to

getting the job done right when the bC

Achievement Foundation, through its

bC Aboriginal Achievement Awards, rec-

ognized LhI with an outstanding busi-

ness Achievement Award in the Joint

Venture Category. S

With expertise in a wide range of forestry

and engineering-related disciplines, and mobility

to take its services anywhere, lHi has built

a solid reputation of delivering results.


van houttE CoffEE sErviCEs specializing in coffee services custom-tailored to the fast-moving oil and gas sector

For more than 30 years, Van

houtte Coffee Services has been

providing quality coffee services

to a variety of businesses in Kitimat,

terrace, and the surrounding areas. Ac-

quired in December 2010, Van houtte

Coffee Services is a wholly owned sub-

sidiary of Keurig Green Mountain, Inc.,

(Keurig) (NASDAQ: GMCR), a leader

in specialty coffee, coffee makers, teas

and other beverages with its innova-

tive brewing technologies. today, Van

houtte Coffee Services employs over

750 staff in 32 branches and offers the

largest national service coverage of any

coffee service company in Canada, thus

servicing over 50,000 businesses and

serving up more than one million cups

per day nationally.

When it comes to product quality, Van

houtte Coffee Service has something

to satisfy even the most distinguished

coffee-lover. Drawing upon almost 100

years of coffee roasting and café bistro

experience, we offer a vast selection of

quality, gourmet coffees and beverages,

as well as the most complete line-up

of renowned Van houtte coffees avail-

able in Canada. our line-up of coffees

also include some of the most popular

brands available on the market, includ-

ing timothy’s, Green Mountain, barista

Prima, tully’s and Starbucks. As well,

we inventory an impressive variety of

teas, hot chocolate, specialty beverages,

iced beverages, and allied products to

help augment your employee coffee

program.

From traditional brewing systems

and high-capacity brewers to single-cup

and specialty coffee brewing systems,

Van houtte Coffee Services has it all.

our coffee programs offer custom-

ers state-of-the-art coffee equipment

that is placed on a loaned basis at no-

charge and provides free equipment

maintenance and servicing on all our

coffee-brewing systems. this means no

up-front costs or capital investment

required and no more dealing with

broken-down coffee equipment. We all

know you have better, more productive

things to do to keep your business oper-

ating smoothly.

So whether you are looking for a cof-

fee program for your corporate office,

camps, field offices, or site offices, look

no further than Van houtte Coffee Ser-

vices. We have precisely the right coffee

selection, coffee-brewing equipment,

and service quality that is best suited

for all business aspects of the diverse oil

and gas sector.

Van houtte Coffee Services, Canada’s

leader in workplace coffee solutions. S

Prince George3963 15th Ave250-562-48561-877-898-4856

Quesnel1195 Highway 97N250-992-9007


northWEst CElEBratEs 60 yEars

It all began 60 years ago in 1955

when a small trucking company

named InterCity Express Ltd. was

established to serve the greater Vancou-

ver area. At the time, bill blaney was driv-

ing trucks and starting his career with a

major oil and gas company in northern

ontario. this experience was the foun-

dation for the vision of what blaney

believed it would take to be a leader in

the tank truck industry: an unparalleled

commitment to safety, dependability,

and exceptional customer service.

blaney moved across Canada and pur-

chased InterCity in 1972, which then

boasted a fledgling tank division ripe for

expansion. the vision gained momen-

tum through his steadfast leadership

rooted in his core values – values that

permeated the entire organization. the

company grew quickly, and by 1990 as

International Chemical Express Inc., it

had developed a solid reputation as a re-

gional bulk carrier serving the pulp and

paper, mining, chemical, and oil and gas

industries in Western Canada.

In 1996, with current CEo tom

blaney at the helm, the company ex-

panded into Alberta by acquiring a natu-

ral gas liquids tank-truck business. this

acquisition strengthened the company’s

regional service capabilities and marked

a significant milestone in the evolution

of the company that became known as

Northwest tank Lines.

With highly trained and experienced

drivers, and a team of excellent staff

members, Northwest continues to focus

on continual improvement resulting in

an enviable retention rate with custom-

ers and employees.

With an uncompromising dedication

to safety and outstanding customer ser-

vice, there is no doubt that Northwest

will continue its growth that started 60

years ago with bill blaney’s vision. S

for all your nEEdsraven oilfield rentals

Raven oilfield Rentals has been

operating in northeastern british

Columbia and northwestern Al-

berta since 1988. our head office is locat-

ed in Fort St. John, b.C., with branch of-

fices in Fort Nelson, b.C., Grande Prairie,

and Calgary, Alta. Raven oilfield Rentals

is one of the largest independently owned

rental companies in the area. We have

an extensive inventory of exploration,

production, construction, and pipeline

equipment available to rent year-round.

Raven oilfield Rentals is CoR certi-

fied and is registered with both the hSE

Registry and ISNetworld. Raven strives

to be a leader in the oil and gas sector

with outstanding service, excellent safety

programs, and quality staff. Working

with the b.C. Safety Council, the Cana-

dian Society of Safety Engineers, and the

Workers’ Compensation board of b.C.

and Alberta, Raven oilfield Rentals is

committed to providing a safe work en-

vironment whether it be in the field, in

the shop, or at the office.

With safety being one of the most im-

portant issues, Raven is pleased to offer

our new style 30 yard and rig bins. these

bins utilize a rolling lid to eliminate the

hazards of a traditional cable or winch

lid system.

Raven offers a wide variety of equip-

ment from surface tanks, generators,

1,000-litre to 30,000-litre fuel systems,

aerial equipment, office, meeting, wash-

room, first-aid trailers, and much more.

Raven is also one of the largest suppli-

ers of access mats in northern b.C. and

Alberta, with a large inventory of wood

mats available for rent or sale. the com-

pany can take care of all your transporta-

tion and mat installation needs with our

fleet of specialized equipment. our fleet

of loaders, skid steers, excavators, six-

winch tractors with trailers, and five-bed

trucks can move or transport any mats

or equipment safely and efficiently. Ra-

ven also has three Super b trailers for the

transportation of large quantities of ac-

cess mats. All equipment is operated by

trained, quality professionals. S


indEx to advErtisErsAkita Drilling Ltd. ...................................................................................................82

Aluma Systems .......................................................................................................21

BK Two-Way Radio Ltd. ...................................................................................108

Britespan Building Systems Inc/

Spanmaster Structures Ltd. ........................................................................87

British Columbia Safety Authority..............................................................23

Cambridge House International Inc.........................................................57

Can-Am Geomatics .............................................................................................25

Certified Coating Specialists ..........................................................................79

Chetwynd & Area Economic Development ..........................................3

CLAC .............................................................................................................................65

Coast Mountain Wireless Communications Ltd. ..............................99

Compass Bending ................................................................................................41

CoR Solutions Ltd. ....................................................................................... 28-29

D & D Insulators Ltd. ...............................................................................................8

D & D Soft Covers.....................................................................................................9

Dynacorp ...................................................................................................................91

Flair Airlines Ltd. ..................................................................................................101

Harris Rebar...............................................................................................................10

Industrial Scaffold Services ..........................................................................105

Industry Training Authority ............................................................................75

International Brotherhood of Boilermakers, Iron Ship .................93

International Union of operating Engineers Local 115 ............ IFC

Kitimat LnG ..............................................................................................................89

Landsea Camp Services....................................................................................13

Lhi Tutl It Services Inc. .....................................................................................107

Lions Gate Risk Management .......................................................................81

Liuxon ..............................................................................................................................4

McElhanney Land Surveys..............................................................................83

Muskwa Valley Ventures ...................................................................................27

northern Rockies Regional Municipality...............................................73

northlands Water & Sewer Supplies Ltd................................................61

northwest Tank Lines .........................................................................................17

Praxair Canada Inc. ...............................................................................................41

Quality Mat Co. .................................................................................................. oBC

Raven oilfield Rentals ........................................................................................11

Rosenau Transport Ltd ......................................................................................59

Specialized Desanders Inc. .............................................................................97

Summit Liability Solutions ..............................................................................85

TA Structures ............................................................................................................53

TDB Consultants Inc. ..........................................................................................51

Terrapro Group of Companies ....................................................................33

ToG Systems .......................................................................................................... IBC

Trans Peace Construction ...................................................................................5

Van Houtte Coffee Services ..............................................................................7

Volant ....................................................................................................................14, 15

Wellons Canada .....................................................................................................77

Western Industrial Solutions .........................................................................95

Williams Scotsman of Canada Inc. ............................................................19

WSP/Focus Surveys .............................................................................................67

Zenco .........................................................................................................................103

Please support the advertisers

who help make this

publication possible.

DATE

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WE’LL WEATHER THE STORM WITH YOU.WALTER NORDHAGENPRESIDENT, TOG SYSTEMS

Whether it’s blizzard conditions or frozen oil prices, we’ll be here to make sure you and your business stay

connected. Our team is committed to providing our customers with the best products and outstanding

service. When budgets have tightened and priorities shifted, we know there is still work to be done. And

when quality counts, we will continue to be the official supplier of whatever-it-takes.

Get Western Canada’s most trusted and reliable provider of oil and gas communications working for you.

ALBERTA • BRITISH COLUMBIA • SASKATCHEWAN

Visit us for more info: togsystems.ca1.844.356.3965

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quality mat is the standard in the mat business. Manufacturing and installing mats worldwide for 40 years!

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World’s largest mat supplier. over 60,000 mats in stock in Bismarck, Dickinson, tioga and Killdeer locations.

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B.C. Oil and Gas Report 2015

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Transcript of B.C. Oil and Gas Report 2015