petroleum services association of canada news summer 2011

28
of the Canada West Foundation explains what a Canadian energy strategy means for the oil and gas services sector PLUS: 7 Trade Show Tips Spring Conference Results Managing Worker Fatigue ROGER GIBBINS SUMMER 2011 PSAC introduces a new name and look for your magazine PM#40020055

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Page 1: 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

Page 2: Petroleum Services Association of Canada News Summer 2011

11

16

11

• 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 PMPSAC_Summer_2011_p02-03.indd 2 5/17/11 11:26:41 AM

Page 3: Petroleum Services Association of Canada News Summer 2011

3

Features

Departments47

8

18

20

23

25

26

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

16

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

11

25

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

Page 4: Petroleum Services Association of Canada News Summer 2011

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

Page 5: Petroleum Services Association of Canada News Summer 2011

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.

PSAC_Summer_2011_p04-05.indd 5 5/17/11 11:32:51 AM

Page 6: Petroleum Services Association of Canada News Summer 2011

T

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Page 7: Petroleum Services Association of Canada News Summer 2011

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

Nova Hotels Venture Publishing.indd 1 11-04-20 4:13 PM000PSN3.NovaHotels_1-2H.indd 1 5/16/11 1:49:57 PMWWW.PSAC.CA 7

DRILLING ACTIVITY FORECAST UPDATE

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000PSN3.NAIT_FP.indd 1 4/26/11 1:15:59 PM PSAC_Summer_2011_p06-09.indd 7 5/17/11 11:33:47 AM

Page 8: Petroleum Services Association of Canada News Summer 2011

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

Page 9: Petroleum Services Association of Canada News Summer 2011

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Page 10: Petroleum Services Association of Canada News Summer 2011

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Page 11: Petroleum Services Association of Canada News Summer 2011

11WWW.PSAC.CA© 2011 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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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

Page 12: Petroleum Services Association of Canada News Summer 2011

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

Page 13: Petroleum Services Association of Canada News Summer 2011

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

Page 14: Petroleum Services Association of Canada News Summer 2011

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.

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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

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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

Page 15: Petroleum Services Association of Canada News Summer 2011

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Page 16: Petroleum Services Association of Canada News Summer 2011

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

Page 17: Petroleum Services Association of Canada News Summer 2011

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

Page 18: Petroleum Services Association of Canada News Summer 2011

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

Page 19: Petroleum Services Association of Canada News Summer 2011

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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

Page 20: Petroleum Services Association of Canada News Summer 2011

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

Page 21: Petroleum Services Association of Canada News Summer 2011

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

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so you can customize your perfect

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Removable Cooler and Fold-Down

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to shore” is optional

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leading technology like the new

for 2011 Powered Tower, or the

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000PSN_MartinMotor2_FP.indd 1 5/12/11 2:41:39 PMPSAC_Summer2011_p16-21.indd 21 5/17/11 11:38:02 AM

Page 22: Petroleum Services Association of Canada News Summer 2011

22 SUMMER 2011 PETROLEUM SERVICES NEWS

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PSAC_Summer2011_p22-28.indd 22 5/19/11 2:38:39 PM

Page 23: Petroleum Services Association of Canada News Summer 2011

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

000PSN.CCEMC.indd 1 5/3/11 3:41:23 PM

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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

Page 25: Petroleum Services Association of Canada News Summer 2011

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

Page 26: Petroleum Services Association of Canada News Summer 2011

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

Page 27: Petroleum Services Association of Canada News Summer 2011

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

Page 28: Petroleum Services Association of Canada News Summer 2011

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