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Transcript of Petroleum Services Association of Canada News Summer 2011
of the Canada West Foundationexplains what a Canadian
energy strategy means for the oil and gas
services sector
PLUS:7 Trade Show Tips
Spring Conference Results Managing Worker Fatigue
of the Canada West FoundationROGER GIBBINS
S U M M E R 2 0 1 1
PSAC introduces a new name and look for your magazine
PM#40020055
PSAC introduces a new name and look for your magazineyour magazineyour
PSAC_Summer_2011_p01.indd 1 5/19/11 2:29:45 PM
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• No workers in hot zone
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• Increased production, decreased HSE risk
ERS has put safety and environment at the top of their list. This system is truly innovative and, quite frankly, is the Best Available Practice I have encountered.
S. Hanelt, CFEI, CVFI SCO Fire Investigator/InspectorSafety BOSS Inc.
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000PSN.EnviroRefuel_FP.indd 1 4/26/11 1:46:05 PMPSAC_Summer_2011_p02-03.indd 2 5/17/11 11:26:41 AM
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Features
Departments47
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18
20
23
25
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COVE
R
CONTENTSS U M M E R 2 0 1 1
COME TOGETHERPSAC is collaborating on
streamlining business
in the patch
SPRING CONFERENCEThis year’s event puts the focus on
people and planning effective
labour strategies
11
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MESSAGE FROM THE CHAIR
2011 CANADIAN DRILLING ACTIVITY FORECAST UPDATEPSAC expects increased activity in the
Western Canadian Sedimentary Basin
IN THE FIELDNews and notes from the industry
BUSINESS MATTERSTrade show tips from industry experts
PSAC IN ACTIONOutreach and advocacy initiatives in focus
HEALTH & SAFETYManaging worker fatigue in the fi eld
MEMBER PROFILEPalko Environmental Ltd. quenches
an industrial thirst
COMMUNITY MATTERSNabors Production Services/Swabtech keeps the
giving spirit going all year long
16
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PETROLEUM SERVICES NEWS
18
• No workers in hot zone
• Low pressure lines
• Increased production, decreased HSE risk
ERS has put safety and environment at the top of their list. This system is truly innovative and, quite frankly, is the Best Available Practice I have encountered.
S. Hanelt, CFEI, CVFI SCO Fire Investigator/InspectorSafety BOSS Inc.
1-877-807-TANK • www.envirofuel.ca
Winner of the ACSA Trailblazer safety award for 0 incidences in 2010
000PSN.EnviroRefuel_FP.indd 1 4/26/11 1:46:05 PM PSAC_Summer_2011_p02-03.indd 3 5/19/11 2:28:51 PM
4 SUMMER 2011
MESSAGE FROM THE CHAIR
T’S déjà vU all OvER again.” Could Yogi Berra have worked in the oil patch
before going on to his 19-year career with the Yankees? I think yes, as his famous
quote could easily be applied to our industry. The sector is quickly gaining strength
on the backs of technological advances and hundred dollar oil. After going through
the “mother of all recessions” service companies are back scrambling for personnel and
equipment to meet the growing demand.
PSAC is being asked once again to provide assistance in the areas of employee
procurement, training and lobbying for regulatory concessions to enable companies to work
more efficiently and effectively. With assistance from our partner organizations, like the
Petroleum Human Resources Council of Canada, PSAC is actively engaging governments
and post-secondary institutions to ensure funding and focus on developing skilled labour is
at the top of their agendas.
PSAC continues with its efforts to work with producers and other industry associations
in raising the awareness of the importance of the petroleum industry as part of Canada’s
future and ensuring the petroleum services sector has a seat at the table when governments
are changing or developing policies. Some of the projects PSAC is currently involved with,
as we work toward participating in policy development, include contributing to the Alberta
government’s Regulatory Enhancement Project; participating in the New West Partnership (with a goal
to harmonize workplace regulations between the provinces of B.C., Alberta and Saskatchewan); and
involvement in a Canadian Energy Strategy (a direct result of the study PSAC commissioned CERI to
conduct on the significance and impact of the service sector on Canada’s economy). Our feature story
in this issue of Petroleum Services News provides more detail on PSAC’s involvement in these
important initiatives.
The Community Partners program – the industry-wide in-the-field courtesy program – is well underway
with involvement from major oil companies and their associations. The Alberta and B.C. governments are
also already on board and Saskatchewan launched their support of Community Partners during the Oil
Show in Weyburn, Saskatchewan on June 1. If you have not already done so, please visit our website
at www.communitypartners.ca and sign your company up as a Community Partner; join us in receiving the
recognition all of us as PSAC members are earning and continue to strive for.
Going forward, your PSAC board of directors still has a number of key issues to address such as the
environment, and health and safety regulations, including ISNetworld’s reporting requirements. We
will continue to be advocates for our industry by defending inaccurate and defamatory statements
whenever possible, and by working with other industry sectors to promote the positive aspects of oilsands
development and other industry initiatives.
Sincerely,
Brian CostonPSAC Board Chair
Taking Old Issues in a New Direction
I
PETROlEUM SERvicES nEwS
Brian Coston, PSac Board chair
PSAC_Summer_2011_p04-05.indd 4 5/19/11 2:57:07 PM
WWW.PSAC.CA 5
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SUMMER 2011 VOL 11 • No. 1
PETROLEUM SERVICES ASSOCIATION OF CANADA 1150 800 6TH AVENUE SW
CALGARY, AB T2P 3G3TEL: 403.264.4195FAX: 403.263.7174
PRESIDENT AND CEO: MARK SALKELDDIRECTOR OF COMMUNICATIONS: KELLY MORRISON
MANAGER OF COMMUNICATIONS AND EDITOR: HOLLY KERR
PETROLEUM SERVICES NEWS IS PUBLISHED FOR PSAC BY
VENTURE PUBLISHING INC. 10259-105 STREET,
EDMONTON, AB T5J 1E3TEL: 780.990.0839FAX: 780.425.4921
TOLL-FREE: [email protected]
PUBLISHER: RUTH KELLYASSOCIATE PUBLISHER: JOYCE BYRNE
MANAGING EDITORS: JEFF LEWIS, STEVE MACLEODEDITORIAL INTERN: ROBIN SCHROFFEL
ART DIRECTOR: CHARLES BURKEASSISTANT ART DIRECTOR: COLIN SPENCEPRODUCTION MANAGER: VANLEE ROBBLEEPRODUCTION COORDINATOR: BETTY SMITH
DISTRIBUTION: JENNIFER KINGACCOUNT EXECUTIVES: LEAH MAWER, DENNIS MCCORMACK
PRINTED IN CANADA BY RHINO PRINT SOLUTIONS. RETURN UNDELIVERABLE MAIL TO 10259 105 ST. EDMONTON AB T5J 1E3.
[email protected] • PUBLICATIONS AGREEMENT #40020055 CONTENTS © 2011 PSAC. NOT TO BE REPRINTED OR REPRODUCED WITHOUT PERMISSION.
The Petroleum Services Association of Canada is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. PSAC represents a diverse range of over 250 member companies, employing more than 58,000 people and contracting almost exclusively to oil and gas exploration and production companies. PSAC member companies represent over 80 per cent of the business volume generated in the petroleum services industry.
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T
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HE 2011 CANADIAN DRILLING ACTIVITY FORECAST mid-
year update, released in April by the Petroleum Services Association
of Canada (PSAC), forecasts another increase in Canadian drilling
activity levels. The revised forecast for 2011 is for a total of 12,950
wells drilled (rig released) across Canada, representing a 5.7 per cent increase in
total wells drilled from 2010.
The number is up from PSAC’s initial 2011 Canadian Drilling Activity Forecast
released in November 2010, of 12,250 wells drilled. The PSAC Drilling Forecast’s
slight increase can be attributed to a few key trends, including the fact that
fewer wells are being drilled because of horizontal drilling techniques and new
technologies being deployed for deeper drilling and more complex completions.
Additionally, the time and cost commitments are increasing, and the continuing
downward trend in the price of natural gas also means a continuing decline in the
number of productive natural gas wells.
PSAC is basing its updated 2011 Forecast on average natural gas prices of
CDN$3.85/mcf (AECO) and crude oil prices of US$100/barrel (WTI).
“The level of drilling activity is a good sign of what’s going on in terms of
recovery from the economic downturn. But even though there are strong signs of
recovery, further rebounds in drilling activity are being impacted by the ongoing
labour shortage and resultant inability to keep up,” says Mark Salkeld, PSAC
Activity Increases
TPSAC’S MID-YEAR FORECAST UPDATE ADDS ANOTHER 200 WELLS
President. “That said, productivity is most certainly on a rebound and looking
down the road we will continue to see increasing production without drilling
levels returning to those of previous years because of the use of new technologies.”
On a provincial basis for 2011, PSAC still forecasts the greatest increase in well
count to take place in Manitoba with a forecasted increase of 13 per cent over 2010
numbers. Saskatchewan is only slightly trailing with an 11 per cent forecasted
increase to 3,043 wells. Alberta boasts a healthy forecasted increase of 7.5 per cent
to 8,732 wells drilled (rig released), while B.C. is projected to experience a 15 per
cent decline to 554 wells from the previous year’s 649 wells. Overall, any gains
being seen in Alberta are offset by losses in B.C.
Alberta: 8,390British Columbia: 700Saskatchewan: 3,075Manitoba: 550Canadian Total: 12,750
13, 000
12, 000
11, 000
10, 000
9, 000
8, 000
7, 000
6, 000
5, 000
4, 000
3, 000
2, 000
1, 000
0
BRITISH COLUMBIA: 554
NUM
BER
OF O
IL W
ELLS
TOTAL IN CANADA: 12,950
2011 DRILLING ACTIVITY FORECAST(NUMBER OF WELLS)
ALBERTA: 8,732
SASKATCHEWAN: 3,043
MANITOBA: 587
GRAPHHed: 2011 Drilling Activity Forecast (number of wells)
British Columbia: 554Alberta: 8,732Saskatchewan: 3,043Manitoba: 587
Total in Canada: 12,950
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DRILLING ACTIVITY FORECAST UPDATE
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8 Summer 2011 Petroleum ServiceS newS
PSAC welComeS Kelly morriSon to the team!
Kelly comes to PSAC with an extensive background in marketing
communications and strategic partnerships. Kelly has worked
in a number of industries including public sector, media, not-
for-profit, telecommunications and professional services.
In her new role as the Director, Communications and
Stakeholder Relations for PSAC, Kelly will be responsible
for promoting and supporting the interests of members by
overseeing all communications, publications and events. She is
responsible for developing and executing strategic and innovative
communications plans as well as providing counsel on stakeholder
relations and public affairs initiatives. These efforts will aim to
grow and strengthen the profile of PSAC and its members with
government, industry, media and the public.
in the field News, events and activities in the industry
PSAC Personnel PlayAiming for excellencePSAC iS Proud to SuPPort the Petroleum Competency
Program (PCP) and is pleased to recognize those individuals who
received their PCP certificate in 2010. PSAC also acknowledges its
member companies who have shown leadership in supporting these
individuals. The PCP is managed by the Petroleum Human Resources
Council of Canada. For more information, visit www.petrohrsc.ca.
Snubbing ServiCeSPSAC member ComPAny CertifiCAte HolderSnubco Pressure Control Alan MacDonald
trAnSPortAtionPSAC member ComPAny CertifiCAte HolderKOS Oilfield Lawrence BorowiczTransportation
well teStingPSAC member ComPAny CertifiCAte HolderOPSCO Energy Skyler Ackerman
Industries/Ensign Fidel Acousta
Anthony Aldrich
Clayton Anderson
Perry Askin
Barton Barham
Joshua Beck
Buster Braun
Kevan Christensen
John Clark
Timothy Elston
John Gillispie
Justin Grimes
Kyle Grimes
Daron Hollins
Larry Johnson
Brandon Jones
Anthony Kraft
Cody Legerski
Cody Malan
Joshua Mattson
Christopher Mortimer
Luke Pontius
Duane Rennick
Will Schiffner
Robert Schneider
Michael Shackelford
Aaron Smith
Kenneth Taylor
Patrick Thompson
Coming eventS
Community Partners launch – SaskatchewanJune 1, 2011
Saskatchewan Oil Show
Weyburn, Saskatchewan
www.psac.ca/events
PSAC barnstorming breakfast – SaskatchewanJune 2, 2011
Saskatchewan Oil Show
Weyburn, Saskatchewan
www.psac.ca/events
Petroleum Services investment SymposiumJune 16-17, 2011
Hyatt Regency
Calgary, Alberta
www.psac.ca/events
PSAC education fund golf ClassicJuly 21, 2011
Calgary Elks Lodge and
Golf Club
Calgary, Alberta
www.psac.ca/events
PSAC Agm, drilling Activity forecast and industry dinnerNovember 3, 2011
BMO Centre, Stampede Park
Calgary, Alberta
www.psac.ca/events
new memberS
regular membersThe RSC Group
Audit Tree Inc.
SGS Canada Inc.
Isolation Equipment Services
Inc.
Greywolf Production Systems
Associate membersBSM Wireless
MacPherson Leslie &
Tyerman LLP
TD Bank
PSAC_Summer_2011_p06-09.indd 8 5/17/11 11:33:59 AM
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Togethert’s not often oil and gas producers and environmental groups agree on something, but both camps are convinced Canada needs an energy strategy. It turns out they’re not alone.The Canada West Foundation (CWF) recently combed through two years of reports
and releases from the energy industry, environmental organizations, academic policy experts and think tanks, and they all concluded that change is needed in Canada’s energy policy framework. Namely, we need to have one.
PSAC IS AT THE FOREFRONT OF EFFORTS TO MAKE DOING BUSINESS IN THE PATCH A WHOLE LOT SIMPLER
I
Come“We need to have guidance for a regulatory
framework,” says Roger Gibbins, CWF President and
CEO. “Because we don’t have an explicit policy, climate
policy becomes the default,” he adds. “Energy does have
impacts beyond just climate change issues like energy
security and export demand.”
The research conducted by CWF, released in April,
identifi es a number of concepts that are common
throughout much of the commentary on the need for
a Canadian energy strategy, including environmental
PSAC_Summer2011_p10-15.indd 11 5/17/11 11:34:49 AM
12 SUMMER 2011 PETROLEUM SERVICES NEWSPETROLEUM SERVICES NEWS
stewardship, a drive for innovation and technology, and the ability to
strengthen Canada’s position in the world.
“We need to provide an operating environment so provinces aren’t
working alone,” Gibbins says. “We have a more fragmented economic
union than we should have in terms of our global positioning. A Canadian
energy strategy will make discussions of big energy projects more
thoughtful and more informed.”
The Petroleum Services Association of Canada (PSAC) is among the
voices calling for unity inside Canada’s borders on how to position the
country in the global energy market. The organization says recent efforts
made in Alberta to streamline operations could be a starting point.
“If we don’t get our ducks in a row, we’ll always be at other suppliers’ beck
and call, says Mark Salkeld, PSAC President. “If we can gain effi ciencies
in western Canada and then Canada as a whole, we’ll be recognized
as a leader. It all rolls up in a vision of Canada being a leader in energy
initiatives,” he adds. “They all feed positively into the next initiative.”
On a provincial basis, PSAC views that starting point as the
recommendations stemming from Alberta’s Regulatory Enhancement
Task Force.
The task force was established following the
competitiveness review of the province’s oil and gas
industry that also saw the restructuring of Alberta’s
royalty framework. During that review it was also
established that regulatory changes needed to be
examined to create a more competitive oil and gas
sector, while committing to environmental standards.
The Regulatory Enhancement Task Force was
formed in March 2010, with Diana McQueen, MLA
Drayton Valley-Calmar and Parliamentary Assistant
to the Energy Minister, appointed
as the chair. The task force went to
work analyzing policies surrounding
upstream oil and gas development
by consulting with numerous
stakeholders, including First Nations,
the oil and gas industry, land owners,
municipal governments and environmental groups.
Despite the diverse group of opinions, McQueen says
one thing was clear: “A starting point and common
message was that the status quo was too complex.”
PSAC had an opportunity to meet with McQueen, as
well as Alberta Energy Minister Ron Liepert, during
the process to voice the opinion of the services sector.
“A lot of the focus was on oil and gas producers, but
when the producers benefi t the PSAC membership
also benefi ts,” Salkeld says. “The bigger piece is that
they realized that PSAC members are where the
rubber hits the road. We represent more than 258
companies that produce 80 per cent of the business
volume in the services sector. They realized that and
had an appreciation for it.”
Following six months of briefi ngs, meetings,
workshops and forums, the Regulatory Enhancement
Task Force tabled its report in December 2010. One
of the major recommendations from the report
“WE NEED TO PROVIDE AN OPERATING ENVIRONMENT SO PROVINCES AREN’T WORKING ALONE. A CANADIAN ENERGY STRATEGY WILL MAKE DISCUSSIONS OF BIG ENERGY PROJECTS MORE THOUGHTFUL AND MORE INFORMED.” – ROGER GIBBINS, President and CEO of the Canada West Foundation
PSAC_Summer2011_p10-15.indd 12 5/19/11 2:31:04 PM
WWW.PSAC.CA 13
REGULATORY ENHANCEMENT
The recommendations from the Regulatory Enhancement Task Force include:• establishing a new Policy Management Offi ce and ensuring integration of natural resource policies• creating a single oil and gas regulatory body• providing clear public engagement processes• adopting performance measures to enable continuous system improvement• creating a mechanism to help resolve disputes between landowners and companies, and enforce agreements where required
“IF ALBERTA CAN SET AN EXAMPLE ON AN EFFECTIVE AND EFFICIENT PROCESS THAT LANDOWNERS, ENVIRONMENTAL GROUPS AND PRODUCERS CAN AGREE ON, THEY CAN GO TO WORK SOONER.”
is the consolidation of policy regulation into a
single offi ce. Under the current system, oil and gas
policies are monitored separately by the province’s
Departments of Energy, Environment, Sustainable
Resource Development, and the Energy Resources
Conservation Board (ERCB). By consolidating the
policies of each regulator into one offi ce, McQueen
says the Department of Energy would lead the
way, but each department would play a role in
establishing policies.
“The integrated
policy management
offi ce will monitor
policy or gaps in
policy,” McQueen
says. “Environmental
groups, land owners
and producers will all have the same processes, but
in one place.”
PSAC agrees that streamlining the regulatory
process will benefi t oil and gas producers, which in
turn will benefi t the service sector, but stresses it
shouldn’t reduce environmental stewardship.
“We’re comfortable with the process. If they can
get wells approved quicker, then they can employ
our services quicker,” Salkeld says. “We cannot lose
diligence with respect to the environment and this
is not about rubber-stamping projects. If Alberta
can set an example on an effective and effi cient
process that landowners, environmental groups and
producers can agree on, they can go to work sooner.”
Elizabeth Aquin, PSAC Senior Vice President,
reiterates the point that when well approvals get
delayed by requiring oversight from a handful of
separate departments, service companies are left
waiting for work. By creating a one-stop window
with a single policy management offi ce all of those approvals can
happen simultaneously.
“If you go to a doctor and can do all your tests at the same time,
rather than doing 10 tests in 10 visits, it improves the process and you
can fi nd out results quicker,” Aquin says. “This is streamlining, not
dodging regulations because everyone will conduct their due diligence
at the same time.”
With the report written, McQueen expects to have something more
formal for the Alberta legislature before MLAs break for the summer,
giving them a few months to consider
all aspects of a new policy framework.
Then, McQueen hopes to be able to
table legislation when the legislature
resumes in the autumn.
“It’s so important to Alberta and
it’s important we get it right for the
industry and all of Alberta,” she says.
“It will be permanent, but there would be a process for review, so we
know that the outcomes we attempt to achieve are met.”
Oil and gas producers are also expecting positive changes to roll
out of the New West Partnership (NWP). In July 2010, Alberta,
Saskatchewan and British Columbia signed this new trade agreement
that would call for each jurisdiction to
adopt the same rules regarding goods,
services and people. The idea behind
the agreement is that by adopting the
same rules, businesses would be able to
move across provincial borders without
being bogged down by additional
paperwork. PSAC sees plenty of value
in this initiative for its members.
By harmonizing labour standards
between the provinces, Aquin says
service companies will not have to eat
the additional administration costs, the
expense of explaining new labour rules
PSAC_Summer2011_p10-15.indd 13 5/17/11 11:35:09 AM
14 SUMMER 2011
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These eight common themes regarding a Canadian energy strategy were identifi ed through research conducted by the Canada West Foundation:• embrace Canada’s energy diversity as a strength • ensure robust environmental stewardship • set a price for carbon• transform the demand side of the energy system• strengthen Canada’s position in the world• promote energy security in the North American context• drive innovation and technological development• understand that strategy is a dialogue
and adopting new, complex and expensive
payroll systems.
“This is a mobile industry and we have
to go where the resources are,” she says.
“The standards are not problematic, but by
harmonizing some of the provisions for oil
well servicing it will save money. Labour is
already a huge cost and we’re trying to compete
globally, while keeping prices down.”
Although the NWP will not be in full swing
until July 2013, one positive initiative has
already come from the agreement. The energy
ministers from each of the three western
provinces in the NWP signed an Energy
Memorandum of Understanding (MOU) in
December 2010. The MOU starts by clearing
regulatory hurdles (similar to the REP), but
fi nishes with a larger vision of marketing the
region’s energy sector around the globe.
“It’s very substantive,” says Alberta
Energy Minister Ron Liepert. “Can we be
more effective as three provinces marketing
internationally, be it Asia or other Far East
countries? We have more clout as three
provinces.”
While Liepert is positive about the outcomes the MOU can provide to the energy sector, he
admits that ultimately an energy strategy needs to stretch beyond just western Canada. Liepert
says common ground needs to be established in regards to goals, principles and objectives. He
and the rest of the energy ministers across Canada plan to get this conversation started at their
annual conference this summer. The ministers will meet in Kananaskis in July 2011, and Liepert
says a Canadian energy strategy will be the main focus of that meeting.
“Ultimately, a Canadian energy strategy should be in the best interest of all Canadians,” he says.
“When we’re talking about an energy strategy we’re not just talking about oil and gas. We’re talking
about offshore in the Atlantic, hydro in Quebec and even nuclear in Ontario.”
Starting to fi nd common ground on a Canadian energy strategy will be important because as
the Canada West Foundation says, it would be detrimental for Canada not to have one in place
when it comes to setting global standards.
“As an energy exporting nation, we have a
lot of skin in the game in policy setting,” says
William Kimber, Vice President of Research
with CWF. “We need to be out in front,
rather than reacting.”
PSAC plans to be out in front. As Aquin
says, she and Salkeld will be at the Energy
Ministers Conference ensuring the interests
of the service sector are represented as policy
discussions move forward. “It’s a good
opportunity for us to succeed as a country on
the energy front, so that Canada can lead into
the next generation,” Salkeld says.
Win a package to attend a Calgary Flames home game from a private luxury box suite, or treat your friends to a two-day golf and stay dream getaway for four at Kokanee Springs Golf Resort on BC’s Kootenay Lake!
All proceeds will go to the PSAC Education Fund, supporting Canadian students and helping to build the future labour force for the oil and gas industry.
The online auction is NOW OPEN at www.psac.ca/onlineauction.
Package #1: Bid and win tickets to a Calgary Flames home game in the comfort of a luxury private box suite for 12 including premium snacks and beverages. The suite is located on the lower level at the blue line with superior sightlines.
Package #2: Bid and win a package for you and 3 guests to unwind over two days at this golf and stay dream getaway. Kokanee Springs on BC’s Kootenay Lake is one of Canada’s finest championship 18-hole courses.
Bids close at 1:30 pm, Thursday, July 21st, 2011. Winning bids will be announced at the PSAC Education Fund Golf Tournament and posted on www.psac.ca.
Bid and Win Big!
Sponsored by:
• ARC Financial Corporation • ATB Corporate Financial Services • Calfrac Well Services Ltd. • Canamara United Supply Ltd. • CEDA International Corp. • CMA Alberta • Cole Group • ComplyWorks Ltd. • Derrick Exhibit • Doran Steward Oilfield Services • DYNAenergetics Canada Inc. • Ensign OPSCO Energy • Guardian, A ShawCor Company • Halliburton Group Canada
Sponsored by:
Industry sponsor:
Online Bidding Now Open!
The PSAC Education Fund Golf Classic Online Auction Offers Two One-of-a-Kind Entertainment Packages
1981 - 2011
Thank you to our sponsors:
• KPMG • National Oilwell Varco • Pajak Engineering Ltd. • Probity Capital Advisors Inc. • RBC Royal Bank • Smith Bits • Sterling Western Star Trucks • Stream-Flo Industries Ltd. • Strike Energy Services Inc. • Topco Oilsite Products Ltd. • Trojan Safety Services • Weatherford Canada www.psac.ca
000PSN.PSACGolfad_1-2H.indd 1 5/10/11 8:21:06 AM
PSAC_Summer2011_p10-15.indd 14 5/30/11 4:19:47 PM
FOR MORE INFORMATION:www.rogersoilandgas.ca1 877 336 1333
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16 SUMMER 2011 PETROLEUM SERVICES NEWS
SPRING CONFERENCE
– Mark Salkeld, PSAC PRESIDENT
“PRODUCERS ARE SPENDING AGAIN. THE RECORD $2.66 BILLION SPENT ON CONVENTIONAL OIL AND GAS RIGHTS, AS OF MARCH 31, 2011, IS THE NUMBER ONE INDICATOR
THAT THE INDUSTRY IS COMING BACK.”
PowerPeopleTO THE
HIGHLIGHTS FROM THE 2011 PSAC SPRING CONFERENCE ILLUSTRATE THE NEED FOR LABOUR STRATEGIES
HE OIL AND GAS INDUSTRY CONTINUES TO SHOW signs of increased activity and with this activity comes a focus
within the petroleum services sector on people.
Current and future labour shortages, retention of employees
through engagement, recruitment strategies, and staying on top of issues that
can be barriers to completing work in the most effi cient and cost-effective
manner were the top-of-mind discussions among delegates and speakers
at the 2011 PSAC Spring Conference. Held in Red Deer, Alberta, on April
12 and 13, more than 215 delegates focused on these issues as they relate to
transportation management and human capital management.
“Producers are spending again. The record
$2.66 billion spent on conventional oil and gas
rights, as of March 31, 2011, is the number one
indicator that the industry is coming back,” says
Mark Salkeld, PSAC President. “And while this is
very good news, it also means the labour issue –
current and future shortages – is also causing some
stress amongst many of our member companies
and conference delegates.”
This year’s two-day conference was organized by PSAC’s Transportation
Issues Committee and Human Resources Committee, and offered three
focus streams: Transportation Management, Personal Development and
Human Capital Management. The Federal Hours of Service exemption for
“Specialized Service Operations,” fatigue management, drug and alcohol
testing technologies and techniques, industry training best practices and an
overview of the upcoming distracted driving legislation were among some
of the standing-room-only sessions within the Transportation Management
stream. These are some issues that, depending on how they are dealt with,
can either make or break the success of upstream petroleum services work.
“Fatigue on the job results in many preventable and costly accidents,”
explains Dr. Adam Blackman, President of MedSleep. “Shift work will usually
involve both sleep restriction and circadian misalignment as key factors in
fatigue. Unrecognized or undetected sleep apnea is also a critical contributor
to fatigue.”
A fatigue management program that addresses these problems can result
in signifi cant improvements for employees and companies overall, adds Dr.
Blackman. Implementation of fatigue management programs has shown
improvements in safety measures, lower levels of absenteeism and costly
decision making errors, increased productivity, lowered risk around liability
and insurance claims, and a bolstered reputation for a company’s strong
corporate health and safety record.
T Most Albertans are aware of Bill 16 – the Traffi c Safety (Distracted Driving)
Amendment Act, 2010 – but more than a few Conference attendees discovered
that it will become one of the most comprehensive traffi c safety legislations in
Canada. Jeanette Espie, Executive Director of Alberta Transportation’s Offi ce
of Traffi c Safety, and Tara Peters, Senior Research Offi cer with the Offi ce of
Traffi c Safety, explained that while using handheld cell phones are a major and
widespread distraction for drivers, the legislation intends to tackle the broader
issue of distracted driving, which also includes activities like texting and
emailing, using laptop computers, video games, cameras, writing, personal
grooming and other activities that take the eyes off the road.
“There are many
sources of driver
distraction,” says Espie.
“International research
indicates that distracted
drivers are involved
in an estimated 20 per
cent to 30 per cent of
total collisions. Alberta Transportation was challenged to create a law that is
comprehensive, practical, effective and enforceable.”
“Drivers will still be able to chat with passengers, have a coffee or snack,
smoke a cigarette, or glance at a map,” says Peters. “This legislation is also
intended to be reasonable.”
WELCOME:PSAC President Mark Salkeld (seated) welcomes delegates and PSAC VP Health & Safety Patrick Delaney introduces key transportation issues to be addressed over the next two days.
HUMAN TOUCH: Gail Purdy of National Oilwell Varco and Chair of PSAC’s Human Resources Committee moderates the Human Capital Management stream.
PSAC_Summer2011_p16-21.indd 16 5/17/11 11:37:05 AM
WWW.PSAC.CA 17
Bill 16 is expected to take effect by mid-year. More information can be
found at www.transportation.alberta.ca/distracteddriving.htm.
On the human capital management side, there is no shortage of content
for debate, especially given the Labour Market Information stats recently
announced by the Petroleum Human Resources Council of Canada, one of
PSAC’s partner associations.
“The Council’s latest announcement that the oil and gas industry is going
to require between 39,000 and 130,000 workers over the next decade due to
retirement and increased activity illustrates how critical the current and future
labour shortage is becoming,” says Gail Purdy of National Oilwell Varco and
the Chair of PSAC’s Human Resources Committee. “PSAC’s HR Committee
is steadfast in seeking solutions to these challenges and we’re optimistic the
sessions we’ve put together will help our member companies begin to address
some of the challenges.”
From actual accounts describing the benefi ts of recruiting through social
media, to sessions on employee engagement and retention strategies, and
guidance on training, development and succession planning, Conference
attendees participated in some lively debate about tactics and possible
solutions in the face of the labour shortages that lie ahead.
PSAC’s annual Spring Conference remains one of the only events designed
specifi cally for managers, and operations and fi eld staff of petroleum service
companies to learn and exchange ideas on the latest happenings in the
industry.
PSAC WISHES TO THANK ALL THOSE SPONSORS WHO HELPED MAKE THE 2011 PSAC SPRING CONFERENCE A SUCCESS!
Major Sponsors:Cenovus EnergyGEOTrac International Inc.JuneWarren-Nickle’s Energy GroupKal TireRogers Communications Inc.
Program Sponsors:BOWEN workforce solutionsDriverCheck Inc.Nexus ExhibitsOBP Promotions and AwardsRogers Insurance Sterling Western Star Trucks Alberta Ltd.
Delegate Lounge Sponsors:Abacus Datagraphics Ltd.AGM Wear Ltd.
Athabasca UniversityCanalta HotelsEnformMakeda Publishing Ltd.Mentor EngineeringPartners in ComplianceProvince & State PermittingRed Deer CollegeRoadata Services Inc.VRV Global RecruitingWaterous Power Systems
Registration and Nutrition Break Sponsors:Calfrac Well Services Ltd.
Flint Energy Services Ltd.
WINNER: PSAC President Mark Salkeld congratulates Justin Clark of Hart Oilfield Rentals Ltd., winner of the $250 cash draw.
WELL ATTENDED: Although service companies are happily experiencing a busy time, they made efforts to ensure they could attend the 2011 Conference. Attendance was higher than 2010 levels by roughly 60 per cent.
SHOW & TELL: Sponsoring exhibitors enjoy frequent interaction over the two days with delegates.
PEP TALK: Randy Parkin of Key Consulting Group presents the benefits of leadership through coaching.
PSAC_Summer2011_p16-21.indd 17 5/17/11 11:37:23 AM
18 SUMMER 2011 PETROLEUM SERVICES NEWS
Show and Tell
OBUSINESS OPPORTUNITIES COME IN MANY SHAPES AND FORMS DURING A TRADE SHOW. HERE’S A FEW WAYS TO GET THE MOST OUT OF THE EXPERIENCE
PPORTUNITIES FOR ONE-on-one business marketing don’t
get much better than at trade
shows like the Gas & Oil Expo and Conference in
Calgary in June. Used correctly, these events can
be one of the most valuable marketing strategies in
a company’s toolbox, offering a chance to attract
new customers and strengthen relationships with
existing ones, make sales and raise the overall
profi le of a business. But beware, if not executed
properly, trade shows can be a colossal waste of
capital and can even cause damage to a company’s
reputation.
For the past 30 years, Derrick Exhibit has made
trade shows its business, providing customers with
everything from custom booth creation, setup
and teardown to long-term project management,
helping companies make the most of their trade
show appearances. There are a few secrets for
success that work right across the board, according
to Derrick Exhibit President Shane Henderson and
Calgary Branch Manager David Stokes.
The objectives for companies usually differ
depending on the show. At consumer shows,
exhibitors tend to focus on sales, while at industry
shows businesses focus more on building long-
term relationships. Here are some of the trade
secrets they can share.
KEEP IT CONCISESimplicity can be a virtue at trade shows, where
it’s important to get your message across at a
glance. “People should be able to walk by your
booth and within fi ve to eight seconds, know what
your business is about,” says Henderson. He notes
that paper is now passé, and most of the time,
pamphlets and info sheets end up in the trash on
the way out the door.
SHOW YOUR PRODUCTStokes says that products can often speak for themselves. “Actually have
pieces that people can pick up and touch and feel,” he advises. But even if
your company produces a host of wonderful products, it’s best to focus on
just a few to keep things simple, says Henderson.
THE PROPER PEOPLEIt’s not just what is in the trade show booth that’s important – it’s who is
in it. “You want to have that thing that attracts someone to your booth,
and you want to have the communication skills that keep them there,” says
Stokes.
Henderson stresses that having well-groomed, knowledgeable,
enthusiastic and friendly people attending the booth can make all the
difference, especially in building relationships with potential clients.
FUN, FUN, FUNGiveaways are a good option. Companies can purchase LCD televisions for
almost as much as they rent for, so why not do a business card draw and
give one away as a prize at the end of the show?
“Make it a little fun,” Stokes says. “You’re on the fl oor sometimes 12
hours a day – it gets long and boring.”
A little creativity can help set your booth apart in a big way, says Stokes.
He suggests spicing things up with a casino theme or using interactive
games to engage people in a memorable manner.
BY ROBIN SCHROFFEL
BUSINESS MATTERS
KEEP IT CONCISE FUN, FUN, FUN
THE PROPER PEOPLE
SHOW YOUR PRODUCT
PSAC_Summer2011_p16-21.indd 18 5/17/11 11:37:33 AM
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THREE COMMON TRADE SHOW MISTAKES
Maximize your company’s trade show presence by avoiding these common pitfalls
Too Much InformationThere’s obviously more to your business than meets the eye, but overloading people with facts and fi gures, especially on your booth display, is a common mistake that can cause people to lose interest quickly. Henderson says to pick just a few of your biggest strengths and run with them.
Pulling OutSometimes the absence is more conspicuous than the presence, Stokes says. That’s why it is important to maintain a trade show presence year after year, even if you don’t necessarily need the new customers immediately. “If you’re a big company and people have seen you year after year at that trade show, and suddenly you’re no longer there, they tend to think that you’re no longer around – possibly, no longer in business,” he says. That, and it can also be tough to get back into some of the trade shows after you’ve dropped out.
Lack of CommunicationCommunication is the single most important factor for trade show success, according to Henderson, and that doesn’t mean just during the show. Calling up current clients beforehand can work wonders. “Invite them down, invite them to your booth, offer to buy them a sandwich at lunch,” he suggests. “Where else are you going to get the chance to meet face-to-face with eight or nine of your best clients in one weekend?” Similarly, following up afterwards is a key factor in developing new business relationships.
PSAC_Summer2011_p16-21.indd 19 5/17/11 11:37:42 AM
20 Summer 2011 Petroleum ServiceS newS
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PSAC in action
TACKLING THE ISSUE OF SKILLED LABOUR SHORTAGE PSAC met with representatives of Alberta Employment and Immigration to
discuss the growing skilled labour shortage and the challenges of programs
such as the Temporary Foreign Worker Program for PSAC members. Further
meetings are planned with government representatives in April. PSAC also
began discussions with the Pacific Northwest Economic Region (PNWER)
regarding issues related to moving employees across borders.
TAX EXEMPT FUEL USE (TEFU) AND PRESCRIBED REBATE OFF-ROAD PERCENTAGES (PROP)PSAC met with Diana McQueen, MLA and Parliamentary Assistant to
the Alberta Minister of Energy, regarding the abolition of the off-road fuel
rebate program announced in the recent provincial budget. PSAC expressed
its members’ concerns over the lack of consultation with industry prior to
the budget announcement and with the lack of a phase-out period for these
programs. PSAC has also written to Alberta Finance Minister Lloyd Snelgrove
asking that the program be reinstated.
LOWER ATHABASCA REGIONAL PLANPSAC attended an industry session to represent member interests with the
Alberta government in April on the recently unveiled Lower Athabasca
Regional Plan. Further consultations were held throughout April and May.
PSAC AND CAPP PRESENT ALBERTA IS ENERGY IN COLD LAKEAs part of the ongoing Alberta Is Energy campaign, PSAC and the Canadian
Association of Petroleum Producers (CAPP) co-delivered the Alberta Is
Energy presentation to the Cold Lake Chamber of Commerce in Cold
Lake, Alberta. The program’s goal is to educate western Canadians about
the outlook for the oil and gas industry in Alberta and western Canada;
demonstrate how the energy industry touches the lives of most Albertans
and many Canadians; the challenges and opportunities Canadians face in
balancing energy supply needs, environment and economy; the importance
of Albertans working together to ensure our economy and environmental
performance is continually improving as we develop our resources; and
some of the work being done on the oilsands side of the industry, particularly
around performance and communications. Presentations will continue to be
made throughout Alberta in the coming months.
NEW WEST PARTNERSHIP MEETING TAKES PLACEPSAC staff met with New West Partnership (NWP) government
representatives as part of a consultation process to provide information on the
business, investment and employment barriers and opportunities that can be
addressed by the NWP’s Energy MOU signed by the Energy Ministers of B.C.,
Alberta and Saskatchewan last December. The goal of the Energy MOU is to
build upon and enhance existing energy sector activities by attracting new
investment, stimulating job creation, and strengthening the region’s economy
through collaborative energy initiatives. PSAC discussed harmonization of
employment standards and certain health and safety regulations.
WELLHEAD BOOM TRUCK OPERATIONSAt the recent 2011 PSAC Spring Conference held in Red Deer, Alberta, PSAC
reported on discussions it has had with WorkSafeBC on issues related to
PSac continueS to SPread the good word through advocacy and outreach
well head boom truck operations and the B.C. regulatory requirements for
crane operators to “have full control of the equipment controls whenever
hoisting equipment is in use and engaged in no other duties while operating
the equipment.” A group of subject matter experts drawn from PSAC
member companies will be working with WorkSafeBC on this issue and the
membership will be kept advised of progress at future meetings of the PSAC
Transportation Issues Committee.
LEASE LIGHTINGAn update on the PSAC-sponsored Industry Recommended Practice #23:
Lease Lighting, was also provided to PSAC Spring Conference delegates.
The IRP will set out recommended outdoor lighting requirements for
nighttime lease operations and for drill rig mobilization and demobilization,
ancillary drilling activities (excluding the rig floor), and any lease site
servicing operations. The intent is to provide a standard for minimum
lighting requirements for a variety of lease tasks and to clarify roles and
responsibilities with respect to meeting the standard. It is hoped to have the
IRP sanctioned for industry use by June 2011.
SELECT FIRE OPERATIONSRepresentatives from the PSAC Oilwell Perforators’ Committee have been
holding discussions with WorkSafeBC on issues related to the interpretation
of B.C. regulations as they relate to “select fire” operations. Further details
can be accessed through the Committee minutes in the Members’ Area at
www.psac.ca.
SAIT INDUSTRY NIGHTPSAC presented to the faculty and students of the Southern Alberta Institute
of Technology (SAIT) Petroleum Engineering Technology Program.
Approximately 80 students who will graduate from the program this year
attended to hear about the petroleum services sector, oil and gas technology,
the job market and opportunities for new graduates.
EDUCATION FUND ANNOUNCES NEW SCHOLARSHIPS As the goals of the PSAC Education Fund are to create awareness of and
promote careers in the petroleum services sector and to help develop a
potential long-term labour pool for the upstream services sector of the oil
and gas industry, PSAC’s Education Fund continues to evolve to meet the
needs of students and industry. Changes are currently in the works for the
2011 program that will see more of a focus placed on establishing scholarships
to support students who are, or plan to be, enrolled in petroleum-related
training programs at trade schools and colleges. While the Fund has
contributed some very positive educational support over the years through
public scholarships and grants to schools, the Education Fund Committee has
decided to suspend the public scholarship and grants portions of the program
and instead direct the funding to support students in petroleum-related
training programs. The Committee feels this new focus will have a greater
impact on both students and industry, while targeting potential employees at
a time when they are making crucial career decisions. These changes to the
PSAC Education Fund are in the final stages of planning. Full details can be
found at www.psac.ca/community/education-fund.
PSAC_Summer2011_p16-21.indd 20 5/17/11 11:37:54 AM
Transom Walk-Thru: to make the
journey from your seat to the water
the shortest one of your day
Rear-Facing Transom Seats
so you’re not just the spotter,
you’re the personal coach
B.I.G Video Dash Display
so you can customize your perfect
wake with the touch of a button
Removable Cooler and Fold-Down
Cup Holders - so “heading back
to shore” is optional
Whether you grew up on the
water or just can’t wait to
start, no company does quality
and innovation better than
MasterCraft. With industry
leading technology like the new
for 2011 Powered Tower, or the
world’s first V-Drive Pro-Certified
Ski Boat, MasterCraft continues to
push the cutting edge and make
your experience on water better
than any other. Whether you’re
after luxury, performance, lifestyle
or even all three, it doesn’t get
any better than MasterCraft.
APPLIED TO WATER
Transom Walk-Thru: to make the
APPLIED TO WATER
Your Exclusive MasterCraft Dealer
in Alberta and Saskatchewan
martinmotorsports.catoll free 1.877.627.8468
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Calgary11184-42 St. SE403-253-6187
Edmonton17348-118 Ave • 780-481-4000
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22 SUMMER 2011 PETROLEUM SERVICES NEWS
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23WWW.PSAC.CA
fter SeverAl yeArS of negotiAtionS with federal and
provincial transportation regulators, oil and gas service sector
companies are getting time back on their side. The Petroleum
Services Association of Canada (PSAC) has gained approval
from the federal Transport Minister for some exemptions from the federal
Commercial Vehicle Hours of Service (HOS) Regulations.
Service sector companies that wish to operate under the exemptions must
have a fatigue management program (FMP) in place as part of their health
and safety management program, in addition to meeting several other
conditions. The FMP will have to be approved by the provincial HOS director
of the carrier’s base jurisdiction.
Under new federal Commercial Vehicle Drivers’ Hours of Service
Regulations rolled out on January 1, 2007, drivers are restricted to 13 hours
driving time in a day and only 14 hours of total on-duty time. Drivers are also
required to take at least 10 hours off-duty before they can drive again and at
least eight of those hours must be consecutive. The regulations apply to all
commercially registered vehicles over 4,500 kg owned and operated by carriers
whose business takes them across provincial borders.
These HOS rules presented some challenges for the oil and gas sector. Under
the rules, if a driver is held up on a job site and waiting to start operations, this
“stand-by time” counts towards the driver’s daily “on-duty time.”
“The oil and gas drilling industry is a 24/7 business and many of the smaller
rigs move 24/7,” says Harold Drok, Operational Compliance Manager for
Flint Energy Services. “Under the 2007 Hours of Service regulations it’s been
virtually impossible for the rig mover to be compliant with the regulations
when moving rigs working on projects. In order for the rig mover to be
compliant while working on a Fort McMurray oilsands project, for example,
the rig moving company would be required to have two crews working 12
hours per day – something that’s impossible with the current driver shortage.”
Members of the PSAC Transportation Issues Committee have worked
diligently over the last several years to ensure that service sector concerns
with the HOS rules were brought to the attention of Transport Canada and
provincial regulators in Alberta, B.C., Manitoba and Saskatchewan. PSAC’s
meetings with these regulators culminated in the submission of the formal
exemption application to Transport Canada on June 16, 2009.
The exemptions will apply to commercial vehicles and their drivers engaged
in “rig moving operations” and “specialized service operations.” The rig
moving exemption will apply to rig move operations as part of a drilling
project under the provisions of a valid Oil Well Service Vehicle Permit. The
exemption will be valid during the winter season – November 1 to March
31. The exemption for specialized service operations will also apply under
the provisions of a valid Oil Well Service Vehicle Permit. These specialized
services are defined in the exemption as including but not limited to: well
testing; mud-filling; cementing; hydraulic fracturing; voltage, logging and
resistivity measurements; and cleaning of industrial equipment; as the
health & SAfetyDon’t Sleep On It
An exemPtion to federAl HoS ruleS Will require A CArefully monitored fAtigue mAnAgement ProgrAm
A
WitH fileS Contributed by andrea W. lorenz
particular requirement might arise in the normal course of well drilling,
completion and maintenance operations.
While operating under the exemption, drivers will be exempt from the
off-duty requirements of Sections 13 and 14 of the regulations. Another
purpose of the exemption is to allow drivers to meet the mandatory off-duty
requirements by accumulating off-duty time in sleeper berths or in alternative
sleep accommodations. Use of the exemption is optional.
“Because the rigs move during both the day and the night, the new
alternative sleeper berth HOS exemption allows the driver to take his required
daily off-duty time in two periods totaling 10 hours in the client camp facilities
versus having to take eight consecutive hours off-duty each day,” says Drok.
Both exemption documents can be viewed and downloaded from the PSAC
website at: www.psac.ca/hos.pdf
PSAC is working with Alberta Transportation on an information package
for industry outlining how the exemption process will be administered.
For more information, visit www.psac.ca.
Call for Expressions of InterestThe CCEMC has up to $60 million to invest in projects that reduce greenhouse gas emissions through the use of cleaner methods of energy production, and innovative carbon capture methods in Alberta.
Submissions must be received by July 28, 2011 at 4:30 p.m. MST.
For more information and to learn more about the CCEMC, visit ccemc.ca
Climate Change and Emissions Management (CCEMC) Corporation
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PETROLEUM SERVICES NEWS
1817 10th Avenue SW Calgary, AB T3C 0K2 Telephone (403) 266-4094 Fax (403) 269-1140
Docket: 33656 Due Date: Nov.10.10 Client: ATB Description: Corporate Financial Services Ad: SanjelSize: 8.25"x10.75" (8.75" x 11.25" bleed) Insertion Date: Winter Issue Publication: PSCA News Colour: cmykAccount Ex: N.Moe Designer: S.Shymko Production: B.Pfleger
COMPANIES THAT RESPOND NEED COMPANIES THAT RESPONDLike Sanjel, more and more of Alberta’s top companies want ATB as their financial partner. ATBresponds.com
Response. Results.
®ATB Corporate Financial Services is a registered trademark of Alberta Treasury Branches.
000PSN1.ATB_FP_wBL.indd 1 11/10/10 2:38:20 PMPSAC_Summer2011_p22-28.indd 24 5/17/11 11:40:52 AM
WWW.PSAC.CA 25
1817 10th Avenue SW Calgary, AB T3C 0K2 Telephone (403) 266-4094 Fax (403) 269-1140
Docket: 33656 Due Date: Nov.10.10 Client: ATB Description: Corporate Financial Services Ad: SanjelSize: 8.25"x10.75" (8.75" x 11.25" bleed) Insertion Date: Winter Issue Publication: PSCA News Colour: cmykAccount Ex: N.Moe Designer: S.Shymko Production: B.Pfleger
COMPANIES THAT RESPOND NEED COMPANIES THAT RESPONDLike Sanjel, more and more of Alberta’s top companies want ATB as their financial partner. ATBresponds.com
Response. Results.
®ATB Corporate Financial Services is a registered trademark of Alberta Treasury Branches.
000PSN1.ATB_FP_wBL.indd 1 11/10/10 2:38:20 PM
LARGE VOLUME OF WATER – both
fresh and briny salt water – is used to
produce oil and gas, something Palko
Environmental Ltd. realized was a
potentially lucrative business niche.
With a network of six treatment facilities
spread across Alberta and Saskatchewan, Palko
was already in the business of safely disposing
of the waste fl uid created during oil and gas
production, whether that be water, oil, frac
fl uids, drilling fl uids, drilling muds or waste
from spills. Their busiest facility, in Midale,
Saskatchewan, processes up to 1,400 cubic
metres of fl uid a day.
As water scarcity becomes a bigger issue,
producers are starting to look for ways to reuse
Waste Not, Want Not
A
MEMBER PROFILE
water from their operations, rather than just disposing of it and purchasing
new water.
“We had customers who dealt with water issues and there was a need
for environmental solutions around water recovery,” says Palko President
Steven Peterson. “With our base of facilities we had a great framework to
expand.”
The transition from just running waste disposal facilities to also offering
the treatment and recovery of waste fl uids for reuse started a few years ago,
but the business has begun “seriously trending down that road the last 10
months,” says the company’s Vice President of Operations Don Johnson.
As well as removing solids and other contaminants from water for reuse,
Palko’s facilities are also designed to provide the same treatment for oil
products. To complement their oil treatment and recovery business at its
facilities, Palko recently launched a division of mobile on site oil treatment
units. The company currently has four of these DSU Processing Systems
in operation. The units are fairly similar to a fi eld offi ce trailer, can be
delivered on the back of a typical fl atdeck trailer
and set up at a production site. Fully staffed and
sealed to allow for the processing of gassy fl uids,
the units treat oil that has been emulsifi ed with
water and process it so it is pipeline-ready.
“We’ve been working on this for about a year
now,” Johnson says. “Lots of our customers don’t
have the facilities to treat off-spec oil.”
Without the ability to treat the oil on site,
producers have to transport their off-spec oil
to a treatment facility where it can be processed
before being moved to a terminal. Johnson says
the fi rm is still in the infant stages of operating
the mobile units, but he’s encouraged by results
so far. Just like many other environmental
initiatives, companies have an easier time getting
on board when there’s economic incentive. “It
has to make economic sense, and we feel it can,”
Johnson says. “You can recycle water and be no
more expensive than purchasing fresh water.”
While the technology to make water reusable
aims to help companies keep costs affordable
and keep more water in the ground, Johnson says
there’s also a safety incentive for producers using
the on site oil treatment units.
“It reduces risk for the customer. If you don’t
have to put oil on the highway you can take that
risk out of the equation,” he adds.
TRANSITIONING FROM FLUID DISPOSAL TO FLUID RECOVERY IS GOOD FOR THE ENVIRONMENT – AND THE BOTTOM LINE
BY STEVE MACLEOD
Palko’s mobile units allow producers to treat emulsified oil without transporting it off site
WETWORK:
PSAC_Summer2011_p22-28.indd 25 5/17/11 11:45:41 AM
26 SUMMER 2011 PETROLEUM SERVICES NEWS
T
Always’TIS
Pictured from L to R: Nathalie Steenbergen, Stacey Sugden, Kim Campbell, Mandi Hoffman
HERE’S A SPECIAL CHRISTMAS TRADITION in central
Alberta, where people decorate trees and then auction them
off at Westerner Park in Red Deer, Alberta, to raise money
for special projects at the Red Deer Regional Hospital.
Staff members at Nabors Production Services and Swabtech,
a division of Nabors Production Services, have added their own
little twist to that tradition. Every year the company buys back its
tree in the auction and then raffl es it off back at their offi ce in
Sylvan Lake, Alberta. The moneyraised through the raffl e is
also donated to the Red Deer Regional Hospital.
During the holiday season, the staff at Nabors/Swabtech also
lends a hand at the Breakfast with Santa for local kids. The food
hospitality is just a warm up for the charity efforts served up during
the rest of the year.
“We meet as a group at the beginning of the year and we get
everyone’s input on what charity to raise money for that year,” says
Swabtech manager Jerry Lefebvre.
Running from April to October, Nabors/Swabtech puts on a
monthly barbecue with proceeds donated to charity. In 2010, the
company raised money for the Ronald McDonald House and this
year, they decided to donate fundraising efforts to the Adolescent
Mental Health Services ward of the Red Deer Regional Hospital.
Not all of Nabors/Swabtech’s charity efforts revolve around
food. The company is also involved with the Heart and Stroke
Foundation’s annual golf classic, STARS air ambulance and the
Sylvan Lake community spring clean-up. Sports teams also benefi t
from the corporate kindness.
“There are lots of efforts and resources put back into the
community,” Lefebvre says. “You get back what you put in and the
appreciation for helping one another is important.”
COMMUNITY MATTERS
NABORS PRODUCTION SERVICES/SWABTECH KEEPS THE GIVING SPIRIT GOING ALL YEAR BY STEVE MACLEOD
THE SEASON
CALGARY • EDMONTON • FORT MCMURRAY • WINNIPEG
The ICS inline immersion system keeps your frac fluid at an exact temperature, even in extreme weather conditions. Our unique multi-unit configuration ensures consistent and reliable temperature control so there is no need for traditional reheat processes.
Alberta’s heating specialists for over 10 years – trust ICS to ensure your frac fluids are ready when you are.
To find out how to make your site 100% frac fluid-ready, call Wes at 780-904-7209 or email [email protected]
PRECIsE CONTROL FOR:
Above ground tanks Pits 400 bbl tanks
For case study and additional information visit www.icsgroup.ca/frac
YOUR FRAC FLUIDs – READY WhEN YOU ARE
FRAC FLUID TEMPERATURE CONTROL
including fire water and watch for an innovative solution for tank farms coming soon{ }
000PSN.ICSgroup_FP.indd 1 4/26/11 1:50:52 PMPSAC_Summer2011_p22-28.indd 26 5/19/11 2:38:56 PM
AlwaysTHE SEASON
CALGARY • EDMONTON • FORT MCMURRAY • WINNIPEG
The ICS inline immersion system keeps your frac fluid at an exact temperature, even in extreme weather conditions. Our unique multi-unit configuration ensures consistent and reliable temperature control so there is no need for traditional reheat processes.
Alberta’s heating specialists for over 10 years – trust ICS to ensure your frac fluids are ready when you are.
To find out how to make your site 100% frac fluid-ready, call Wes at 780-904-7209 or email [email protected]
PRECIsE CONTROL FOR:
Above ground tanks Pits 400 bbl tanks
For case study and additional information visit www.icsgroup.ca/frac
YOUR FRAC FLUIDs – READY WhEN YOU ARE
FRAC FLUID TEMPERATURE CONTROL
including fire water and watch for an innovative solution for tank farms coming soon{ }
000PSN.ICSgroup_FP.indd 1 4/26/11 1:50:52 PMPSAC_Summer2011_p22-28.indd 27 5/17/11 12:37:31 PM
000PSN.DYNAenergetics_FP.indd 1 4/26/11 1:35:00 PMPSAC_Summer2011_p22-28.indd 28 5/17/11 11:46:14 AM