the official publication of the canadian association of...

Canadian Well Construction JournalThe Official Publication of the Canadian Association of Drilling Engineers

Volume 1 | Issue 6

November 2009

10 FEATurE STOryAdaptive Change

13 FEATurE STOryPurpose-Built “Disposable” Motors

8 ASSOCiATiOn inFOrMATiOn

“The Bow” Downtown Calgary ConstructionPhoto Courtesy mike macKinnon

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Canadian Association Of Drilling Engineers NOVEMBER 2009 3

President’s Message

Hello everyone. The current snapshot of today’s commodity prices are starting to show trends of recovery that may help our industry with a positive Q4 2009 and Q1 2010 drill-ing and completion season. In the meantime, CADE continues to strive towards providing quality and informative educational programs for our membership.

We are currently two sessions into the technical luncheon program for 2009–2010 season. CADE strongly encourages our members to come out and participate in our technical luncheon exchanges. The topics address the broad range of disciplines involved in the well construction process. If you have a story to share, please contact a CADE representative to explore the opportunities to participate in this quality networking and technical exchange.

If you are reading this, you obviously have chosen to receive our monthly Canadian Well Construction Journal. Thank you for your continued interest in receiving and reading our publication. This publication is evolving and is the work of a few hard-working volunteers. We always strive to provide relevant and up-to-date technical information. This informa-tion comes from you the membership and readers. Your continued support by providing articles is welcomed. CADE will begin publishing our industry technical training seminar dates for the information of all members who wish to become aware of industry training. If you have any training seminars scheduled at your company in the coming months, please contact CADE to have it listed in our journal.

As promised, CADE expects to deliver a unique networking and technical information event. The Debate Series is gaining interest from possible participants who wish to discuss the merits of various completion/fracturing techniques in horizontal wellbores. Please watch and listen for a date and venue in the coming weeks prior to the New Year. If you are hear-ing about this for the first time and are interested in participating, please contact Clifford Hogstead at [email protected] for further information.

Have a great November, and I hope you enjoy this month’s publication. We look forward to growing and enhancing your experience with CADE.

Patrick Murphy, P.Eng.President, Canadian Association of Drilling Engineers

Table of Contents

Feature StoriesAdaptive Change 10

Purpose-Built “Disposable” motors 13

DeparTmenTs

Member Profile: The Olsons 6

Association News 8

Upcoming Events 9

Stats At A Glance 14

Canadian Association of Drilling engineers (CADe)800, 540-5 Ave. SW, Calgary, Alberta T2P 0M2

Phone: 403 264-4311 | Fax: 403 263-3796

www.cade.ca

managing editors: Todd Brown, Mike MacKinnon

CWCJ photographer: Mike MacKinnon

advertising sales: Nick Drinkwater

published by: JuneWarren-Nickle’s Energy Group

CADE’s mandate is to provide high-quality techni-

cal meetings to promote awareness of the drilling

& well servicing industry. Through CADE, members

and the public can learn about the technical chal-

lenges and experience gained from our speakers,

who are most often CADE members themselves.

We invite you to join CADE and further your profes-

sional development.

past issues of CaDenews are available online.

Current issues of Canadian Well Construction Jour-

nal are available via email, to CADE members only.

CADE is not responsible for any opinion or statement

expressed in this publication.

4 NOvEMBEr 2009 Canadian Well Construction Journal

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As fall slips away and the frost appears on the windshield in the morning, I see we are all getting up in the dark again.

The months are flying by and this is already our third issue of the 2009–2010 Canadian Well Construction Journal series. The people at JuneWarren-Nickle’s Energy Group are doing a great job making our Canadian Well Construction Journal look fantastic and helping us with content. I’d like to thank Doreen McArthur (our Canadian Well Construction Journal publisher), Nick Drinkwater (our marketing rep and all around positive and creative guy), and Rob Pentney (marketing manager and communications seer) for all their invaluable ideas and support. Their collective communications knowledge has helped CADE immensely these last few years, and we are grateful for their ongoing involvement and support.

Doug Hollies and his conference committee are already getting things going again for next year’s event after such a successful day last year. They will be asking for your white papers and abstracts again soon.

The luncheon attendance has been strong this quarter and our mem-bership continues to grow more and more each year. As we continue to work on improving our value, CADE appreciates your continued support.

As always, I invite you to submit your stories and articles for publication in the upcoming issues and I look forward to seeing you all again at the next technical luncheon.

Todd BrownCo-Editor, CWCJ

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Describe your role with your company, your background, and your career path.

Ken: I am the vice-president and general manager of Crest Consultants Ltd. I started in the oilpatch as a roughneck out of high school before enrolling in SAIT, where I received a Civil Technology Diploma in 1975. In 1984, I got back in the industry with Cardium Tool Services for liner and completion tools. Cardium was sold in 1989 to Weatherford Canada and I remained with them as sales manager, then Canadian regional manager for completion systems until 2005. The opportunity at Crest came about in 2005 to assist in the growth and operation manage-ment in the project management and field supervision fields.

Byron: I am currently an EIT [engineer in training] in the SAGD winter drilling division at StatoilHydro. We are responsible for drilling core holes, water source/disposal, and observation wells. My responsibilities include bidding for services, project planning/execution, and cost monitoring. I am a petroleum engineering graduate from Montana Tech, where I received high honours and a full athletic scholarship for the men’s golf team. Prior to gradu-ating, I held internships with Peyto Energy Trust, Husky Energy, and Anadarko, allowing me to experience onshore and offshore production-type roles. My short-term goal is to be involved in the engineering of drilling and completing the SAGD horizontal wells. With this experience, I wish to attain a managerial-type role during the future expansion of StatoilHydro’s SAGD project.

What is the most rewarding part of your job?

Ken: You never quit learning something new every day either on a technical situation or a people issue. I enjoy dealing with people on a daily basis both on the client side as well as field operations side. The project management business is a service business which is the link between the E&P companies we represent and

the service companies we employ. Having spent 25 years in the service industry, it allows me to utilize the knowledge of working on the service side to better represent our clients on the E&P side.

Byron: The most rewarding part of my job is working with a team of engineers to successfully plan and execute a drilling project under budget and with no injuries. I also have the privilege of working with very experienced engineers and am thankful for all that I am learning from them. What is the toughest part of your job?

Ken: Ensuring that all of our people continue to strive to meet and exceed the expectations of our clients in these tough busi-ness and economic times. We try to get the best value for our clients from the service companies while still knowing that we will need these service companies to survive so that when our industry turns around, the good companies and people will still be there to assist in making it work.

Byron: Currently, I find that the toughest part of my job lies with preparing scopes of work for a large winter drilling program. I am aware of the services that are needed, but in order to keep the process fair, a lot of detail must go into the document. These details are hard to pinpoint at my current experience level; how-ever, it has forced me to research into each service extensively and has ultimately contributed to the many things I learn here on a daily basis.

Who has had the greatest influence on your career?

Ken: My current partner at Crest, Larry Smith. Larry and I start-ed working/playing together in kindergarten at Shaunavon, Saskatchewan, and have been friends and teammates our whole lives. I worked as an independent field consultant in early 1980s

MEMBEr PrOFiLE

Ken OlsonVice-president and general manager of Crest Consultants Ltd.

Byron OlsonDrilling engineer (EIT), SAGD winter drilling, StatoilHydro

This month it is our pleasure to profile a father and son, Ken Olson and his son Byron, who are both members of CADE and involved in the oil industry.


for Larry at Crest and then when I was hired at Cardium Tool Services, Larry was always available to assist me on business and technical issues. When his previous partner wanted to retire in 2005, Larry offered me the opportunity to join Crest to help him enhance the business. It has been a good opportunity, and I look forward to many more years of success in the business.

Byron: The greatest influence on my career choice has been my father. I have learned from him that a deep interest in your job and strong work ethic are crucial to success. Having been exposed to Calgary’s oilpatch since birth, I have watched my dad enjoy himself at work, build long-lasting friendships, play indus-try golf and hockey, all of which influenced me to become a part of it. Also, I can only hope that one day I am able to provide for my family in the same way that I grew up experiencing. My life to this point has been very enjoyable, and I owe a lot of my per-sonal success to my father.

What do you like to do when you are not working?

Ken: My spare time for the past number of years has been spent with my wife Lis raising our two children, Byron and Sonja. I enjoyed coaching both of them in hockey, ringette, golf, and skiing. I still get the enjoyment out of being with them either watching Sonja play volleyball for the SAIT women’s team while working on her degree or seeing Byron get started in a career as an upcoming drilling engineer and learning how rewarding and lucky we have it to work in our industry. I also enjoy my time playing ‘Hoser’ hockey, golfing, and travelling.

Byron: When I am not at work, I lead a very active lifestyle. I enjoy working out and travelling around the world with fam-ily and friends. During the winter, I enjoy snowboarding and playing hockey. In the summertime, I play as much golf as I can without compromising my job.


Association/Membership News

Welcome new members

NAME COMPANY TELEPHONE EMAIL

Les Barwacz Azor Inc – Directional 403-862-6043 [email protected]

Alejandro A. Bello MEG Energy Corp 403-770-5362 [email protected]

Barinder Dhillon Student 403-671-8011 [email protected]

Gary Hanke rig Iron Sales And Marketing Ltd. 780-270-2536 [email protected]

Dalton Hosker Student 780-340-5507 [email protected]

russ Lilja Flowline Solutions Ltd. 403-685-9685 [email protected]

Hassan Malik ConocoPhillips Canada 403-260-2154 [email protected]

James Neff Xact Downhole Telemerty Inc. 403-568-6010 [email protected]

Wayne Olson Husky Energy Inc. 403-298-6111 [email protected]

Lisa Osgood 403-247-6624 [email protected]

richard Paintsil Student [email protected]

Ange Poszwa Baker Hughes 403-537-3442 [email protected]

Sabina Szilagyi ConocoPhillips 403-233-3113 [email protected]

Tammy Todd 403-246-8844 [email protected]

TITLE NAME TELEPHONE

President Patrick Murphy 403-266-7383

Past President David White 403-699-5160

vice-President John Garden

Secretary Tammy Todd 403 613-8844

Treasurer Alice Skoda 403-232-6066

Membership Chairman Jason Tiefenbach 403-543-8012

Education Chairman Mike Buker 403-213-3615

Social Chairman Dan Schlosser 403-531-5284

CADENews Editor Todd Brown 403-230-3055

Technical Chairman Jeff Arvidson 403-232-7100

IT Chairman Cris Catrinescu 403-720-2024

Drilling Conf. Liaison Doug Hollies 403-604-6645

Executive Member ryan Schoenhals 403-767-0202

CAODC Liaison John Pahl 403-292-7966

members On The move

NAME COMPANY TELEPHONE EMAIL

Gary K. Johnston XL Fluid Systems 403-265-4344 [email protected]

Murray Krausert Beaver Drilling Ltd. 403-265-6472 [email protected]

Neil Mcrobbie Banffshire resources Inc. 403-239-3759 [email protected]

CaDe executive Team 2009/2010


Association/Membership News

UpCOmInG CaDe Luncheon

Christopher mark moroney, C-mark Inc.

Date Thursday, November 19, 2009

Place The Westin Calgary

Time 11:30 a.m.—reception

12:00 noon—Luncheon 12:30 p.m.—Presentation

Presenter Christopher Mark Moroney

C-Mark Inc.

Jason’s Story is a keynote presentation on workplace safety, dedicated to the memory of Mark’s oldest son Jason, a journeyman pipefitter, who was tragically killed while working on a large construc-tion project in northeastern Alberta. Mark’s presentation employs his extensive experience and expertise to tell the tragic story of Jason’s death and the effects that it has had on his immediate family and the community. The chain of events and circumstances leading up to the incident are explored to raise awareness with all

stakeholders involved in all types of con-struction and manufacturing.

Jason’s Story has the ability to open peo-ple’s hearts and minds with the intention of changing attitudes, as well as to educate and reinforce the value of personal safety. The goal of this powerful, passionate, and emotional message is to assist corporations, associations, and large and small groups in evolving their safety culture to achieve the goal of zero injuries in their workplaces.

Please see below for Mark’s bio.

JAsoN’s sToRY

Upcoming events

CADe Technical luncheonWednesday, December 9, 2009 The Westin Calgary

CADe Technical luncheon Wednesday, January 13, 2010 The Westin Calgary

CADe Technical luncheon Wednesday, February 10, 2010 The Westin Calgary

Mark spent 27 years as a self-employed career tradesman, welding in the oil and gas fabrication and con-struction industry in western Canada. In 2003, he accepted a position as a construction site representative with a major oil and gas company until his oldest son Jason, a journeyman pipefitter, was tragically killed while working on a large construction project in northeastern Alberta on Dec. 12, 2007.

Since that time, Mark has focused his energy as a consultant and keynote speaker with the goal of assist-ing and advising corporations, associations, and large and small groups in evolving their safety culture to achieve the goal of zero injuries in their workplaces.

Mark excelled due to his extensive experience and understanding of worker, supervisor, and manage-ment roles and their responsibilities as well as their attitudes, behaviours, and challenges, combined with his hands-on experience in the industry and his personal experience of losing his son Jason. Mark is able to deliver a powerful presentation called “Jason’s Story,” which explores the cause and effects that this incident has had on the community and the lives of the people affected by this tragic incident.

Jason’s Story has the ability to open people’s hearts and minds with the intention of changing attitudes, as well as to educate and reinforce the value of personal safety. The presentation acts as a catalyst to supplement any and all existing safety programs within organizations.

Additional information about Mark and his presentation is available on Mark’s website, www.c-markinc.com.


FEATurE STOry

Adaptive Change

How does a “beer and chat” session become a horizontal well completion debate?

This may seem to be an odd question, but it was the one I was asking myself while coming home from work today. A few months ago I had paid my CADE dues and apparently checked off a little box to indicate that I would be interested in doing a bit of volun-teer work for CADE. I hadn’t really taken time to think about what that might involve when I checked it and was a little surprised when CADE president Patrick Murphy called to ask if I would consider getting involved in an afternoon “beer and chat” social for the membership. Since it had the word “beer” in it, I guess I bit on that hook right away. After a couple of meetings to discuss the form that this would take, it became apparent that while beer worked to get me involved, it would likely take something more substantial for most people to justify leaving work early so they could attend this little social event.

With that in mind, I began a bit of a quest to think about a suitable subject or speaker that would be engaging enough to provide the needed stimulus for bringing people out. It seemed that with the economic and ecologi-cal times, we were being bombarded with bad news, so a subject involving something that was going well would be appropri-ate. At the time, earlier this past summer, the Bakken oil play was an area that looked likely to come back quickly as it was light oil, not in the muskeg, and not under Alberta’s royalty structure. Multi-stage fracing treat-ments have allowed this play to develop and

prosper. Since CADE is a drilling engineers’ association, I thought multi-stage packers and fracing may be leaning a bit too far into the completions area for some members’ interest. But then after we take the dirt out of them somebody still has to get the casing to bottom, which usually happens before the drilling rig has left. I expect that anyone who has or hopes to have anything to do with that will not miss an opportunity to learn more about the different tools and technologies available. If nothing else, it will give you more to think about if you are up in the middle of the night staring at the drilling rig data coming across your computer screen.

At that point, it seemed like a good idea to have some of the different suppliers—backed by some of the people who had used and believed in the products—give a short presentation and then defend the work they had done in their areas. It seems that while this sort of format generates a fair amount of interest and is something many people would be interested in watching, it is not something that the suppliers or possibly the customers who use the products have any compulsion to become involved in.

To some extent, this is quite understand-able, as meeting the completion in situations where an unplanned pause or incorrectly worded reply to a question can relay doubts about a product or service are not likely deserved. The possibility of allowing propri-etary techniques or technical information to slip out may also be a concern to some of the companies. In any case, while initial thoughts

were that this would be something that would be good to be involved in, follow-up from most suppliers has been difficult to obtain.

If risk is a factor, being a little adverse to risk is a bit out of character for this part of the Canadian oil and gas industry in particular since taking risk on developing products that large established suppliers avoided has allowed some small companies to achieve phenomenal growth in their market.

Another thing that may concern some sup-pliers and is no doubt justified is that their products have become or may appear to have become too oriented to specific parts of the market. Where technology has developed products to meet specific objectives, cost and versatility can suffer. With the current market conditions, funding for different types of projects has become like a round of musical chairs. Suppliers who are overcom-mitted to a particular technology or area can be left standing with virtually no activity if the area they are working in falls out of economic or technical favour.

With this in mind, I think most suppliers are working hard to show how their products can be used in as many applications as pos-sible and are striving to make their costs meet the economic hurdles. These things they can work with, but they are also affected by some aspects of human nature that they are not able to have an effect on. Specifically, this is our tendency to become more risk adverse when we when we believe times are threatening. The drilling engineer who would adamantly defend a choice of a more costly or risky

by Clifford Hogstead


Weatherford horizontal multi-stage frac packer system.

well completion during the exploration stage of an area will seek a safe haven in a more conventional style of completion during the development stage. Even though the overall cost and risk of a product has been reduced, the relative risk can turn against technologies and service companies.

For the suppliers, the change is that now they are serving the conservative, tight-fisted drilling engineer as opposed to the optimis-tic wildcatter that was sitting in the same chair last year. This new person will want to

know the full cycle costs of using different styles of products to complete wells and how any problems that come up during the life of the well can be remediated. This is opposed to the person who was looking for the maxi-mum initial rates, even at the expense of cost and longevity.

Oil and gas companies need to drill and produce to stay in business, so when these conditions exist, the drilling engineer or company he represents still needs to drill and get wells to the point where they can be com-pleted effectively under the current economic situation. If they can’t do it in unconventional properties, they will find some more conven-tional property where they can do it. While the commodity price shocks of the last year have virtually stalled a lot of operations, the

fact remains that most producers need to drill and complete wells to stay in business, and serving their needs is what will keep the sup-pliers in business.

Understanding what the industry needs and working together to meet them is what the CADE was set up to do. Having a gather-ing that will help members understand how some of the particular horizontal well tech-nologies work will be valuable, but helping members understand how these sorts of tech-nologies have and are continuing to develop will be even more valuable.

Editor’s note: The upcoming CADE Frac’ing Forum and Debate will be held on Nov. 24, 2009, at Caesar’s Steak House in Calgary. Thanks to Cliff for volunteering for this event!

Illustr

ation

: Wea

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ford


sIlVeRGolD

sponsorship Opportunities

The CADE sponsorship package offers a cost effective way to inform the key decision makers of our member companies about your products and services. Stay visible and competitive by making a CADE sponsorship part of your overall marketing strategy.In addition to advertising placements, sponsors receive:• Coverageateachtechnicalluncheon

in print and PowerPoint slides• VisibilityontheCADEwebsite• RecognitiononthededicatedSponsorPage

in each issue of the journal

Contact Nick Drinkwater today to arrange for your sponsorship advantage. email: [email protected] or phone 403-265-3700 ext.129

Thank You To Our Sponsors


FEATurE STOry

Purpose-Built “Disposable” Motors

Positive displacement motors have a long and varied history in the Canadian oilpatch. They are used for a number of purposes, including directional drilling, performance drilling, river crossings, completions, and utilities installations.

In recent years, the “Disposable” motor has become more and more commonplace, particularly in applications with high-cost day rates, such as offshore. In the offshore industry, we see operators running “Disposable” motors on the end of their production string to ensure they get the casing to bottom. The motor allows the operator to drill or circulate through tight spots and bridges, which eliminates the need to trip casing and perform cleanout trips. In such applications where day rates are high, the cost of running a motor is very economical insurance.

Historically, utilization of “Disposable” motors has been very limited in Alberta due to cost. In past situations where an opera-tor required a “Disposable” motor for whatever purpose, the vendor would send out a used, usually worn-out motor. The purpose of this development was to offer the client an affordable alternative in situa-tions where a motor would be the practical solution.

Where we see the most practical utilization in our local market is in the area of liner installations. In problematic areas and also to allow further/extended horizontal reach a disposable motor on the end of the liner provides a viable and economical solution. The ability to run these motors with slotted liners is also available.

A major Canadian exploration firm drilling in northeastern British Columbia with a “Disposable” motor says:

“Operator had drilled and landed seven-foot intermediate casing at 2,582 metres (90 degrees). [A] 6 1/8 inch hole was drilled to 3,900 metres. Problems were incurred [when] open-hole logging the well due to cuttings bed settling and deteriorating hole conditions. [The] decision was made to run a mud motor on the end of the liner string to allow us to circulate the liner into place to ensure the liner made it to [the] bottom. Operations were successful as the mud motor was used to circulate the liner to bottom right from outside the intermediate casing to liner TD [total depth]. It is our opinion that the liner would have not made it to bottom without the assistance of the mud motor.”

In this case, a five-inch “Disposable” motor was run. The operator was impressed with the results and the costs and maintains that this

well would have been lost without the use of the motor.In addition to conventional drilling and hole sizes, “Disposable”

motors are available in smaller sizes, usually 2 7/8 inches or 3 1/8 inches. These are most commonly used in snubbing operations where the operator wishes to drill out plugs and drop the motor on the bottom, thereby eliminating the need for additional snubbing in and out of the wellbore.

Small motors have a history of being used for sacrificial purposes. We differentiate ourselves by offering main hole size “Disposable” motors to the market.

The “Disposable” motor is a proprietary tool purpose-built for these applications. It is available in most sizes. Many components have been redesigned to lower the total cost, making it an affordable alternative. Although these motors are labelled as “Disposable,” they have gone through rigorous testing and are built with only new components. In tests, these motors easily drilled for in excess of 100 hours.

by Dan Gretener, president and manager, The Motor Company


Stats At A Glance

Drilling rig activity October 26, 2009

PSAC Zone ACTIVE DOWN TOTAL ACTIVE

Alberta 144 443 587 25%Saskatchewan 65 66 131 50%British Columbia 40 71 111 36%Manitoba 6 3 9 67%Western Canada Total 255 583 838 30%Northwest Territories 0 2 2 0% Northern Canada Total 0 2 2 0% Ontario 0 1 1 0%Quebec 2 2 4 50%

New Brunswick 0 5 5 0%Nova Scotia 1 0 1 100%Newfoundland 1 0 1 100%eastern Canada Total 4 8 12 33%

Canada Total 259 593 852 30%

service rig activity October 26, 2009

PSAC Zone ACTIVE DOWN TOTAL ACTIVE

Alberta 313 578 891 35%Saskatchewan 108 73 181 60%British Columbia 14 24 38 37%Manitoba 9 0 9 100%Western Canada Total 444 675 1,119 40%Northwest Territories 1 1 2 50%Northern Canada Total 1 1 2 50%Quebec 0 2 2 0%

eastern Canada Total 0 2 2 0%

Canada Total 445 678 1,123 40%

Drilling rig activity survey October 26, 2009

2009 Jan-Sep

2008Jan-Sep

Percent Change

Alberta 124 263 -53.06%British Columbia 48 61 -21.12%Saskatchewan 34 65 -46.54%Manitoba 5 6 -24.87%Northern Canada 1 1 -17.95%Eastern Canada 2 3 -11.38%Active 214 398 -46.32%Down 643 467 37.68%Fleet 857 865 -0.99%% Active 24.95% 46.03% -45.79%

JouRNAl CoNTeNTInformation in this publication may be sourced through a variety of contributors. Members are encouraged to email their suggestions regarding articles, general content, and statistical graphs and charts to: Doreen McArthur at [email protected]

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Western Canada service rigs October 26, 2009

Western Canada Drilling rigs October 26, 2009

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D&R has the experience and equipment to tailor services to match your needs and adapt them as the well requirements change.

From manless surveying to remote vertical control to full directional services, D&R has the versatility to shift from one end of the spectrum to the other, seamlessly.

Experience and efficiency go hand in hand, add in the right equipment and you’ve got a winning solution: you’ve got D&R Directional.

Call us or visit our website at the address below to find out how we can help you.


The Frac’ing Forum CADE is excited to announce the

“Horizontal Well Frac’ing Forum”

This event will highlight the fast-paced world of multi-stage fracturing techniques, technology, and equipment in a new social format. CADE has set the stage for a lively forum of three fracturing-completions techniques.

Hydraulic & Swellable Element Liner Systems Cement Liner: Perforations & Pump Down Plugs Cement Liner: Abrasive Jets & Sand Plugs

November 24, 2009

Caesar’s: 2nd Floor Banquet Room512-4 Avenue SW, Calgary

Buy your tickets online today at cade.ca$25 for members/$35 for non-members

AGENDA:2:30 pm: Doors open3:30 pm-4:30 pm: Structured forum/debate4:30 pm-5:00 pm: Questions from the floor5:00 pm-6:00 pm: Networking hour

the official publication of the canadian association of...

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