well construction journal - january/february 2015

The official publication of the Canadian Association of Drilling Engineers

JANUARY / FEBRUARY 2015

PM#40020055

PLUSThe PR War Public events throughout B.C. aim to spread energy information

New Kid in Town The University of Calgarys first research chair studies nanotechnology in the oil patch

Theres an App For That Are mobile apps a key part of the oil patchs future?

The energy industry remains promising but controversial in B.C.

Report on BRITISH COLUMBIA

WeldCor Supplies, an independent consumer-direct supplier of welding materials, hardbanding alloys DurabandNC and TuffbandNC, hardfacing products and equipment calls itself The ller metal experts, and for good reason. The company, with ofce and warehouse locations across Canada, has gained a reputation as the knowledgeable source for alloy ller metals. Maybe thats because we can answer the second and third questions our customers ask...not just take their order, explained Leroy Billesberger, president and owner of the company. Our extensive knowledge of welding materials, welding processes and the properties of different metals is what really sets us apart. Our people are true welding experts who understand the unique characteristics of different metals, as well as the difference proper welding techniques can make.

WeldCor has been involved in the Canadian Energy Industry for many years and Hardbanding Products were a good t for their business. Knowledgeable energy companies and drilling contractors have come to appreciate the benets of a superior performing hardbanding product coupled with technical expertise. Protecting the casing and tool joints is critical. This protection also results in more efcient drilling, longer drilling cycles and reduced maintenance of the drill pipe. Drilling contractors understand that extending the life of drill string assets goes right to the bottom line. Hardbanding applicators have also beneted by the use of non-cracking Duraband NC and Tuffband NC, since re-application is so much easier and the wire can be re-applied over and over again without removal. We look for specialized products that can satisfy the customers needs, and is cost effective. The Hardbanding products from Postle perfectly t this criteria. WeldCor is also the only Canadian company that supplies hardbanding products direct to the applicators and provides local on-site technical assistance, Billesberger said.

Today, the Saskatoon resident nds himself in great demand providing

technical support and consulting to hundreds of companies in Canada and the USA.

His current company, WeldCor Supplies, also provides products to some of Canadas largest oil projects.

With the increase of directional drilling in Western Canada, there has been a rise in the usage of wear resistant products such as non-cracking Duraband NC from Hardbanding Solutions, a business unit of Postle Industries. WeldCor is the Hardbanding Solutions Technical Center for all of Canada. In addition to being a resource for the oil and gas industry, the Technical Center offers educational sessions and provides assistance to applicators with hands-on training at the applicators facility or in the eld.

The training that is provided, gives applicators a basic understanding of the different types of hardbanding. In addition, they are introduced to the principles of heat treatment and metallurgy and how it relates to the hardbanding process. The end result

is an applicator who understands their machine, as well as the welding process, in order to produce an end product with guaranteed quality.

To reinforce WeldCors commitment to the oil and gas industry, and as a response to requests by producers and drilling contractors for high quality hardband work, Billesberger developed a site inspection program to ensure that certied applicators are correctly and consistently applying their hardband alloys. WeldCor dispatches a quality assurance specialist to monitor the application and then prepares a comprehensive report that will be shared with the applicator and the requesting drilling contractor.

[email protected]

WeldCor Supplies Inc.Edmonton, [email protected]

WeldCor, Canadian Technical Center for Duraband Hardbanding

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Like you, he pushes the bounds of performance

Todays innovative designs allow sailors to push the bounds of performance in the most

challenging conditions. At Newpark Drilling Fluids, our relentless pursuit of technology-based

fluids solutions and commitment to performance are enabling our customers to rack up

wins around the world.

From our new Technology Center to the most remote

well sites, we team with you to deliver uncompromising

performance. Visit newparkdf.com today.

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www.cadecanada.com january/february 2015 3


DEPARTMENTS

4 PRESIDENTS MESSAGE

6 THE DRAWING BOARD Editors note, members corner, news and notes, technical luncheons

10 STUDENT PROFILES11 HELP WANTED19 MEMBER PROFILE

24 BY THE NUMBERS26 DRILLING DEEPER

FEATURES

13 FORWARD ENERGY The future of energy production in British Columbia remains promising, and controversial

16 MAKING THE SWITCH LNG could be the new sweetheart of the transportation industry and it all comes down to cost

20 OPEN FOR QUESTIONS A series of public information sessions aims to spread fair information about the LNG industry in B.C.

22 RESEARCH HEATS UP Nanotechnology expert Steven Bryant starts a new tenure at the University of Calgary

The mandate of the Canadian Association of Drilling Engineers is to provide high-quality technical meetings and to promote awareness on behalf of the drilling and well servicing industry. With more than 500 members from more than 300 companies, CADE represents a broad spectrum of experience in all areas of operations and technologies. Through CADE, members and the public can learn about the tech-nical challenges and the in-depth experience of our members that continue to drive the industry forward. For drilling and completions specialists, CADE currently offers one of the best networking and knowledge sharing opportunities in the Canadian petroleum industry.

CANADIAN ASSOCIATION OF DRILLING ENGINEERSPO Box 957 STN M

Calgary, AB T2P 2K4Canada

Phone: 877-801-1820www.cadecanada.com

PRESIDENT: Dan SchlosserPAST PRESIDENT: Jeff Arvidson

WELL CONSTRUCTION JOURNAL EDITOR: Christian Gillis

WELL CONSTRUCTION JOURNAL IS PUBLISHED FOR CADE BY VENTURE PUBLISHING INC.

10259 105 StreetEdmonton, AB T5J 1E3Phone: 780-990-0839Fax: 780-425-4921

Toll Free: [email protected]

PUBLISHER: Ruth KellyDIRECTOR OF CONTRACT PUBLISHING: Mifi Purvis

MANAGING EDITOR: Lyndsie BourgonART DIRECTOR: Charles Burke

ASSOCIATE ART DIRECTOR: Andrea deBoerPRODUCTION MANAGER: Betty Feniak Smith

PRODUCTION TECHNICIANS: Brent Felzien, Brandon HooverCIRCULATION COORDINATOR: Karen Reilly

ACCOUNT EXECUTIVE: Kathy Kelley

CONTRIBUTING WRITERS: Robin Brunet, Robbie Jeffrey,

Jacqueline Louie, Samus Smyth

JANUARY/FEBRUARY 2015

16

PRINTED IN CANADA BY ION PRINT SOLUTIONS. RETURN UNDELIVERABLE MAIL TO 10259 105 ST.

EDMONTON AB, T5J 1E3 [email protected]

PUBLICATION MAIL AGREEMENT #40020055 CONTENTS 2015 CADE. NOT TO BE REPRINTED OR

REPRODUCED WITHOUT PERMISSION. 20

Like you, he pushes the bounds of performance

Todays innovative designs allow sailors to push the bounds of performance in the most

challenging conditions. At Newpark Drilling Fluids, our relentless pursuit of technology-based

fluids solutions and commitment to performance are enabling our customers to rack up

wins around the world.

From our new Technology Center to the most remote

well sites, we team with you to deliver uncompromising

performance. Visit newparkdf.com today.

NDF-10334.wcj.PERFORMANCE.Ad.indd 1 12/11/14 2:59 PM000WCJ-Newpark-FP.indd 1 2014-12-11 2:09 PM


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WCJ_Jan-Feb_15_p02-03.indd 3 2014-12-19 11:46 AM

Well Construction Journal 4 january/february 2015

N THIS ISSUE OF WELL CONSTRUCTION JOURNAL, we focus on the vast development opportu-nities that are about to take place in British Columbia. B.C. has found itself playing an

important role in this countrys energy future, and it has become a battleground for government, business, policy-makers and environmentalists. The provinces citizens, it seems, are left silent in the mix.

On page 20, we tell you about a series of meet-ings taking place across British Columbia, which aim to inform the public and answer their many questions and concerns about LNG production in the province. These meetings are important, because media coverage often sensationalizes the facts and simplifies debate surrounding energy is-sues. Its great to see government officials and rep-resentatives from Science World British Columbia working together to bring this information to communities that are affected by development and opportunity in the near future. It can be hard on all ends to bring accurate information to the public while there is a lot of protest going on, and these efforts help in spreading fair information.

Industry has not always been good at getting our message out there, which leaves more space for our opponents to take advantage of the media. Its not that theres nothing we can do, but we are often stuck between a rock and a hard place environmentalists tend to be trusted over big oil companies, and industry often stays quiet. People believe what they see in the news, and if they only see one side of the story, they only believe one side to be true. Lets not forget that we often have the science behind us, and we should be more confident in taking this information to who needs it most.

I truly believe that our public outreach has improved over the years, especially in terms of ad-vertising and raising awareness. Still, more needs to be done, especially as news about pipelines and LNG spreads across the world.

I believe the industry should do more, but Im not sure how we should be doing that. Please consider getting involved in your industry organi-zations and pitch them ideas and suggestions on how energy education can progress and how they might better serve you going forward.

I

MESSAGEPresidents

Honing Our Image

Dan Schlosser CADE President

An artists rendering of a planned LNG export terminal in Kitimat, British Columbia.


Honing Our Image

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BOARDThe Drawing

E D I T O R S N O T E

President Dan Schlosser [email protected]

Vice President Ryan Richardson [email protected]

Education Chair Linden Achen [email protected]

Membership Chair Andy Newsome [email protected]

Social Chair Kristy Hysert [email protected]

Treasurer Cecil Conaghan [email protected]

WCJ Editor Christian Gillis [email protected]

Sponsorship Chair Craig Joyce [email protected]

Sponsorship Chair Brooke Needer [email protected]

IT Chairman Matt Stuart [email protected]

Secretary Tammy Todd [email protected]

Communications Oliver Descoteaux [email protected]

CADE Executive Team 2014/2015

E X E C U T I V E T E AM

Choppy Waters Lie AheadHE START OF THE 2015 DRILLING SEASON ISNT GOING to start off with the bang that most of us hoped for.

As Im writing, this oil is down to $53 and it seems to be a very gloomy outlook. As is always the

case in times like these, some companies will struggle to keep going and some wont make it. The companies who have been prudent and have had success will be able to use this as an opportunity to strengthen their bottom lines. The investment houses will use this as an opportunity to load up on undervalued companies, some of which are continuing to pay dividends with great yields. It will also be an opportunity for companies to look for new innovations and better ways to do business.

In response to requests from some of our members CADE will be looking at hosting a couple of networking events in the new year, one being a possible bowling event in February and another being a possible meet and greet for new engineers and members. Our 2015 technical luncheon presentations kick off in January with the annual comedian luncheon. With the way prices are going and budgets being slashed, a little humor might be just what everyone needs.

Please watch for email announcements and check the website for the start of our fall luncheons and upcoming topics and dates. We are also looking for topics that tie into our journal focus for each month, and we hope you

will participate and continue to make these events interesting and successful. If you have any issues youd like to see covered, please email me and we will do our best to get the story.

Dont forget, we would like to publish any of your information and announcements on new products, new technologies and senior personnel changes for publication each month. Please forward any announcements to us, as we would be excited to run them in our new feature section.

We appreciate your continued support and look forward to seeing you at the upcoming luncheons.

CHRISTIAN GILLIS, Managing Editor, Canadian Well Construction Journal [email protected] Phone: (403) 265-4973

T

WELCOME NEW MEMBERS

OLADIPUPO ADEBARIBRENT BREEZEBARNABAS EGBUONUTED FRASERCARRIE HLADILEKSAJJAD HUSSAINISAAC SAID MICHAEL KENYIMATTHEW LAROCQUEALAJEMBA LEONARDTRACY LLOYDWAGAS MADNIJENNIFER MARCOTTE JOHN NOYNAYAYODELE ONIJIGINSONIA PLAZASJIM ROTHBRAD TAKENAKAASMAR WALEED


MEMB E R S C O R N E RWHY BECOME A CADE MEMBER?

As of 2015, the Canadian Association of Drilling Engineers (CADE) has been active for 40 years. With more than 500 members from more than 300 companies, CADE represents a large spectrum of experience in all areas of operations and technologies.

For drilling and completions specialists, CADE currently offers one of the best net-working and knowledge sharing opportu-nities in the Canadian petroleum industry. The skills and knowledge obtained by your participation in CADE will benefit you and your employer, with direct application to your professional career.

CADE offers various means for members to connect and share their insights. Monthly technical luncheons are held with topical in-dustry presentations. Other mebership ben-efits include our monthly publication Well

President Dan Schlosser [email protected]

Vice Presicent Ryan Richardson [email protected]

Education Chair Linden Achen [email protected]

Membership Chair Andy Newsome [email protected]

Social Chair Kristy Hysert [email protected]

Treasurer Cecil Conaghan [email protected]

WCJ Editor Christian Gillis [email protected]

Sponsorship Chair Craig Joyce [email protected]

Sponsorship Chair Brooke Needer [email protected]

IT Chairman Matt Stuart [email protected]

Secretary Tammy Todd [email protected]

Communications Oliver Descoteaux [email protected]

Construction Journal and a membership direc-tory, which is the whos who of the Canadian drilling industry.

Our website cadecanada.com is an excellent focal point for industry events, blogs and other news. We are also active on LinkedIn and Twitter.

WHO CAN BECOME A CADE MEMBER?

CADE members can be anyone employed in the drilling and completions industry or anyone who is interested in the industry.

Typical members include drilling and completions engineers, geologists, technical personnel, sales personnel and students. Student memberships are available to any post-secondary student interested in learn-ing more about drilling and completions.

Please feel free to share information about CADE with all the people in your organiza-

tion who are interested in the drilling and completions industry.

CADE MEMBERSHIP RENEWALS

CADEs membership year is from Septem-ber to September. During the summer, CADE members will receive an email and link for the renewal process on our website.

Please remember the benefits of being a CADE member include APEGAs profes-sional development hour, staying abreast of technological and industry advances, drilling conferences and a great opportuni-ty to network. Thank you for your support.

CADE MEMBERSHIP CHANGES

Log on to cadecanada.com to become a member or to update your contact information.

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BOARDThe Drawing

N EW S A N D N O T E S

Suncor encourages animal awareness

TRANSCANADA IS PLOTTING A NUMBER OF NEW pipeline developments that would tap into burgeoning U.S. shale deposits, according to company representatives. Not long after efforts to speed up approval of the Keystone XL pipeline failed, the company spoke briefly about its plans during an investors meeting in Toronto.

North Americas crude production is set to grow 40 per cent, to 14 million barrels per day by 2020. TransCanada sees this as an opportunity for more pipelines, as numerous shale plays will require transportation. The projects are in various stages of production. Some of those have the opportunity to connect to our existing Keystone system and some of those would be independent of our existing Keystone system, the companys executive in charge of liquids pipelines told media during the conference call.

SUNCOR HAS DECIDED TO MAKE WILDLIFE TRAINING mandatory for all of its employees and contractors after an employee was killed by a bear at one of its sites earlier this year.

In May, 36-year-old Lorna Weafer was exiting an employee washroom when she was attacked by a black bear at one of the companys mine sites about 25 kilometres from Fort McMurray. While her co-workers tried to stop the attack, they didnt have bear spray on them and the bear wasnt scared away by noise. After the attack, employees noted that they were worried about doing their jobs in areas trafficked by black bears.

Albertas Bear Safety & More organization will be providing the training. While Suncor offered the training beforehand, it has stepped up efforts to make sure all of its employees are fully-equipped and comfortable in dealing with wildlife on the job. The level of wildlife training they receive will depend on where an employees job takes

place. The training will range from a web course to classroom and field training. It will include everything from assessing bear behaviour to dealing with an encounter, deploying bear spray and using bangers and flare guns. It will also cover interactions with other animals like cougars, wolves and coyotes.

The training will become mandatory for all employees and visitors to the work site by the end of March 2015.

More pipelines in the works for TransCanada


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Suncor encourages animal awareness

Save the Date: January 14, 2015Event: Simon King performs for CADE members

At this years event, CADE will host Simon King, a performer known for changing a room the moment he takes to the stage. Known for his explosive comedy that marries sharp, socially conscious material with a keen point of view that screams the gospel of common sense, Kings comedy has always gone flat out.

King has appeared on comedy programs and competitions around the world, and has had stints at the Just for Laughs Festival, appearances on CTV and CBC, and specials on the Comedy Network. In 2010, he released his first full-length album, Unfamous.

CADE will host King on January 14, 2015, at the Westin Hotel in downtown Calgary. There are less than 450 seats available for this event, so act quick to get your ticket.

Luncheon TicketsMEMBERS: $47.50 (plus GST)NON-MEMBERS: $55 (plus GST)FULL TABLES OF 10: $475 (plus GST)STUDENT: $20 (plus GST)

GST REGISTRATION #R123175036Visit www.cadecanada.com for all ticket purchases

COMEDIAN SIMON KING



ONATHAN MCGREGOR IS IN HIS FIRST YEAR OF THE PETROLEUM Engineering Technology program at SAIT. He was born in Scotland and grew up in Vernon, B.C.

Four years ago, McGregor got a job working for Precision Drilling with the goal of saving money to put towards an economics degree. But it wasnt long before he knew he wanted a career in oil and gas. He worked for three years as a motorhand with Precision Drilling then enrolled in the program at SAIT.

At SAIT, hes begun developing an understanding of production and completions. He looks forward to getting on board with a service company in the summer to expand on this knowledge. After he has completed the program at SAIT, his goal is to work towards becoming a drilling engineer.

Growing up in the Okanagan meant that McGregor did a lot of snowboarding. To this day, he spends most winter weekends in the mountains snowboarding. He also plays soccer as a goalkeeper and loves to travel. He hopes his career will eventually allow him to travel and work overseas.

Young TalentHighlighting tomorrows best and brightest

Student PROFILE

Jonathan McGregor Petroleum Engineering Technology

SAIT

J

Merlin LukoseOil and Gas ProgramUniversity of Calgary

ERLIN LUKOSE IS A FOURTH YEAR ENGINEERING STUDENT IN the oil and gas program at the University of Calgary. She also has a Bachelor of Science degree in Biological Sciences from the University of Alberta.

Lukose gained valuable experience through summer work terms at TransCanada Pipelines and Nexen CNOOC, and hopes to use her exposure in academia and industry to help fellow students achieve their goals. Lukose serves as a volunteer on the Petroleum and Energy Society (PES) council at the University of Calgary. Through her roles within PES, Lukose has had the opportunity to plan and execute many undergraduate events, such as the annual PES Energy Industry Mixer which typically hosts over 15 companies and draws crowds of over 200 students looking for valuable experience in the oil and gas sector. In her current role as VP Events, she hopes to host exciting events that will equip students with a solid foundation of knowledge, experience and networking skills, helping them gain a competitive advantage when entering the energy industry.

In the areas of personal development, Lukose has always had a keen interest in developing her leadership potential and to be actively aware of and champion global literacy campaigns. She has taken part in the yearlong Emerging Leaders Program for first years at the university and was the recipient of the 2013 Suncor Emerging Leader Award and the 2014 Jason Lang Scholarship, given to students with outstanding academic merits and active extra-curricular lives. Lukose hopes to direct the resources that come from an engineering career to help educate financially unstable children. In her free time, she likes to travel, read and participate in the local church choir.

M


january/february 2015 11 www.cadecanada.com

UNIVERSITY OF CALGARY GRADS TOP OIL PATCH CEO LIST

HELP WANTED: Career Department

DRILLING SLANG

If you want to walk the walk on a drill site, it helps to talk the talk. Here are some terms and phrases often heard out in the field:

BOX: A female threadform (internally threaded) for tubular goods and drill string components.

CONNECTION: Any threaded or nonthreaded union or joint that connects two tubular components.

COLLAR: A threaded coupling used to join two lengths of pipe such as production tubing, casing or liner. The type of thread and style of collar varies with the specifications and manufacturer of the tubing.

PRODUCTION TUBING: A wellbore tubular used to produce reservoir fluids. Production tubing is assembled with other completion com-ponents to make up the production string.

A NEW STUDY FROM THE EXECUTIVE SEARCH FIRM PEARSON Partners International has found that, if you have ambitions to be an oil patch CEO, youd be best advised to start getting an educa-tion at the University of Calgary.

A representative from the group studied the background of more than 200 chief executives from the largest publicly traded oil and gas companies in the U.S. and abroad, and found that the University of Calgary had the most representation of any other post-secondary institution in North America.

The research found that 22 per cent of Canadian CEOs received their undergraduate degrees from the University of Calgary. They are followed by the University of Alberta, at 18 per cent, and 10 per cent at the University of Saskatchewan. Graduates from the University of Calgary made up seven per cent of the interna-tional list.

A Pearson Partners International representative credits the citys ties to industry for the universitys strong performance, noting that most CEOs are graduating from school with degrees in business, engineering or earth sciences.

University reps note that they have emphasized the energy sector in the programs that they offer, and hopes that the new report will help in recruiting future students.

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MAKE UP: To tighten threaded connections.

THREADFORM: A particular style of type of threaded connection, especially as used for rotary shouldered connections. Threadforms come in a variety of sizes, pitches, tapers, threads per inch and individual thread profiles.

TUBULARS: A generic term pertaining to any type of oilfield pipe, such as drill pipe, drill collars, pup joints, casing, production tubing and pipeline.

ZIP GROOVE: A reduced-diameter section that has been machined at the box (up) end of a drill collar so that the collar may be more easily handled with open-and-close elevators.


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january/february 2015 13 www.cadecanada.com

REPORTSpecial

The future of energy production in British Columbia remains promising, and controversial

RARELY DOES A WEEK GO BY WITHOUT VANCOUVER PUNDITS portraying B.C.s nascent liquefied natural gas industry as too slow in coming and beset by problems.Part of the reason for this is political: Premier Christy Clarks 2013 re-election is still a sore point amongst those who eagerly predicted an NDP landslide. Combined with a distrust of big industry, this leaves any Liberal initiative subject to criticism and no other has defined the partys post-election platform more thoroughly than LNG, which it has touted as potentially sup-porting up to 100,000 jobs and contributing up to $1 trillion to the provinces GDP.

Criticism notwithstanding, 2014 was a banner year for devel-opment in the province, as evidenced on November 8 when LNG Canadas environmental certificate application was made public. The joint venture company, comprised of Shell Canada Energy, PetroChina, Korea Gas Corp. and Mitsubishi Corp., says it will spend up to $40 billion to build a proposed export facility in Kiti-mat, B.C., which could generate up to $39 billion in tax revenue over its lifespan. LNG Canada has already signed an agreement to connect to BC Hydros power grid for up to 20 per cent of its energy needs. In a press conference call that same day, LNG Canada spokeswoman Susannah Pierce insisted that, With the hydro announcement and this announcement today, we are clearly moving forward.

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Drilling rig at work near Fort Nelson in northern British Columbia.

Other developments indicate that B.C.s oil and gas sector overall may be headed towards a boom that would benefit CADE members, amongst others. A November 5 Crown Petroleum and Natural Gas Public Tender auction sold 28 land parcels totalling over 28,000 hectares at an average price of $7,267, almost double the average price of any auction in 2014. This puts the amount made from drilling permits and leases at almost $350 million for the year. Charter Land Services made the largest bid (just under $124 million) for 8,350 hectares, 60 kilometres north of Hudsons Hope, while Windfall Resources paid the most per hectares ($67 million for 3,700 hectares) in the same area.

These sales dont quite match B.C.s peak year of 2008, when auctions pulled in nearly $2.7 billion. But that astronomical figure was the result of the province offering much more land for sale: 757,000 hectares, compared to 126,598 in 2014. The average price in 2014 is higher than any year since theyve been staging auctions, except for 2008.

Deputy Premier and Minister of Natural Gas Development Rich Coleman is particularly enthused by events in 2014. CADE members should expect lots of drilling opportunities in the fore-seeable future, and as for LNG weve moved it faster than anyone had thought. This is because we studied other countries indus-tries and built a competitive platform, he says.

Coleman, who also vice-chairs the Cabinet Working Group on

By Robin Brunet



REPORTSpecial

Liquefied Natural Gas, goes on to say that, Of the 18 LNG proposals from 35 companies, nine already have export permits from the National Energy Board, and were negotiating for develop-ment agreements for seven projects by the end of November. The Liberals plan of having three LNG facilities in operation by 2020 is still on track, he adds.

Coleman dwells on two projects to justify his optimism: the Chevron/Apache joint venture near Kitimat, and the Pacific NorthWest LNG project on Lelu Island south of Prince Rupert. The former will see Chevron Canada operate an LNG facility at Bish Cove, and Apache will manage the development and produc-tion of natural gas from the Liard and Horn River Ba-sins. An NEB licence has been granted to export up to 10 million tonnes of LNG per year, which will be delivered to the facility by a 480-kilometre Pacific Trail Pipeline from Summit Lake. The pipeline and plant will create an estimated 4,500 construction jobs. The Pacif-ic NorthWest project is led by Malaysias state-owned Petronas, which will invest $36 billion

(including $11 billion for a Lelu Island export plant). Final investment decisions for both proj-ects are expected by the end of 2014.

Still, skepticism about B.C.s ability to attract investment and compete internationally per-sists. Jennifer Winter, associate director of ener-gy and environmental policy for the University of Calgarys School of Public Policy, worries that many countries may be faster in delivery than Canada: the U.S. on the Gulf Coast, or Australia, which has the advantage of being closer to Asia. Even Africa is a viable contender due partly to a far less complex regulatory structure.

An RBC Capital Markets report supports Winters concerns. It pre-dicts that Australia is set to eclipse Qatar as the largest global supplier of LNG by 2018, though also notes that Australian green-

field LNG projects have been plagued by cost overruns.

Winter adds that the provinces ultimate goal of exporting 82 million tonnes per year would mean we would contribute 15 per cent of to-tal offshore need, which is about 500 million

A dock at the Chevron-led Kitimat LNG construction site, Bish Cove, B.C.

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Itll be tricky for protestors to make headway, plus a lot of aboriginal

groups are already on board the LNG bandwagon. Jennifer Winter

FAST FACTS:The facility at Bish Cove is currently in the process of its 180-day environmental assessment.

In November, First Nations communities throughout the Skeena Watershed voiced their opposition to the facility in Lelu, saying it could negatively impact the salmon population.



tonnes yearly. That figure is nothing to sneeze at in terms of benefiting the B.C. economy, but its still small in the grand scheme of things which would make it all the easier for Asia to simply look elsewhere for product if the province doesnt meet its production goals.

One factor Winter doesnt think will hinder LNG progress is anti-resource development activ-ism. Itll be tricky for protestors to make head-way, plus a lot of aboriginal groups are already on board the LNG bandwagon, she says. This is in stark contrast to the experience of compa-nies like Kinder Morgan, which in November was forced to seek a court order against protest-ers who blocked crews from performing survey work on Burnaby Mountain on behalf of the Trans Moun-tain pipeline.

Winter says that while LNG will play a role in B.C.s energy future, It will be a mix of LNG and natural gas, and I doubt the former will represent anything more than 20 per cent of the overall economy: hardly in league with the oil sands, which some proponents have compared the industry to.

Coleman replies, Whats so bad about LNG making up 20 per cent of our economy? Consid-ering we have forestry, mining and other pow-erhouse industries in this province, 20 per cent would be a great achievement.

The minister outlines the main challenges in exploiting LNGs full potential. Fluctuating oil prices can affect final investment decisions and accessing capital, he says. Also, access to labour is critical to the success of the proposed projects. Although we cant control the former, were en-gaged in vigorous conversation with Ottawa to get flexibility in importing the skilled labour re-quired to build LNG facilities.

Coleman says policy-makers in Ottawa are re-ceptive to B.C.s concerns. Its a good dialogue, and one idea being floated is that in exchange for us bringing in skilled professionals, these profes-sionals could teach what they know to our home-grown labour force.

Another challenge, this one self-imposed, was recently addressed. Under a plan announced in last Februarys provincial budget, a tax rate of up to seven per cent would be levied on LNG com-panies net income once they recoup the capital PH

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costs of their terminals. Thats about the only thing the government dropped the ball on, says Winter. It sent the message that by virtue of an industry merely existing, it would be taxed. It was a blatant money grab.

But in October, the Liberals introduced legis-lation to slash its proposed tax rate and add in-centives for LNG companies. The design and the tax structure needs to take into account changing circumstances in the market and po-tential for return, Finance Minister Mike de Jong told the press. Its not quite as lucrative as it once was.

The initial income tax rate will stay at 1.5 per cent, but the second tier will be 3.5 per cent instead of seven. Mean-while, a new provincial natural gas tax credit will reduce corporate income tax rates to as low as eight per cent from the current 11 per cent.

Susannah Pierce of LNG Canada praised the government for the turn-around. There is a lot of competition in the global LNG marketplace, and we know that the B.C. government recognizes this, she said during an October 20 press conference. David Keane, president of the BC LNG Alliance, expressed similar sentiments.

While government optimism and academ-ic skepticism about LNG is predictable, inves-tor opinion is arguably the best indication of where the provinces new industry truly stands. Although Michael Culbert, president and CEO of Progress Energy Canada Ltd., turned down WCJs request for an interview, he has gone on record as being cautiously optimistic that Cana-da can become a meaningful player in the global LNG industry.

Culbert, who is helping develop LNG projects on the west coast through Pacific NorthWest LNG, states on the Canadian Association of Pe-troleum Producers website, I think technically Western Canada has the natural gas to supply all of the proposed projects. But will they all go ahead? Probably not. Will there be consoli-dation? Possibly. He adds that we can compete with countries that are already exporting LNG, if we can secure markets and commit to the construction of these projects within the next two to three years.

CADE members should expect lots of drilling opportunities in the foreseeable future, and as for LNG weve moved it faster than anyone had thought. This is because we

studied other countries industries and built a competitive platform.

Rich Coleman

FAST FACTS:A government report released in fall 2014 found that LNG development could spike B.C.s carbon footprint.

Experts believe that the push for LNG across Canada will drive demand for an extra 40,000 beds in worker camps over the next four to five years.



R

Making the Switch LNG could be the new sweetheart of the transportation industry and it all comes down to cost

By Ryan Van Horne

EGULATIONS FORCING THE REDUCTION OF greenhouse gas emissions are accelerating a migration from diesel to liquefied natural gas (LNG). Diesel, the

reliable-yet-noxious beast of burden in the heavy transpor-tation and marine industries, originally rose to prominence because it was more efficient than the steam engine.

But, years later, the trans-portation companies and heavy industry that use diesel to run machinery are looking to save money by switching to LNG. Its significantly less costly than diesel, says Michael Allison, a spokesman for FortisBC. It can be a significant percentage with commodity price changes, but its roughly 25 to 50 per cent less than diesel or gasoline.

Companies like FortisBC and AltaGas have been working to grow the market for LNG in British Columbia, and are planning to increase their capac-ity to supply the West Coast market.

FortisBC currently has 900,000 natural gas cus-tomers in British Columbia, a number that has been steadily growing and expanding beyond the tradi-

tional type of natural gas customer, according to Al-lison. What weve been doing, since 2009, is work-ing with companies to help convert their heavy-duty

vehicle fleets to either com-pressed natural gas or LNG, he says.

Cost is probably the first selling point, and when British Columbia amended its greenhouse gas regulations in 2012, it permit-ted FortisBC to give out incen-

tives to help encourage companies to convert from diesel to LNG or compressed natural gas, which made it even more attractive.

Its created a great demand in the past few years, says Allison.

In 2012, FortisBC received $104.5 million in incentives, $16 million of which went to vehicle in-centives while the remainder was spent on training and the construction of fuelling stations.

When a fleet comes to us for conversion, we either find a fuelling station nearby that already ex-ists, or we work with them to see what they want, Allison says. They may not select FortisBC to build it, but in some cases, like that of Vedder Transport

Adding natural gas trucks to our fleet will help us reduce

transportation-related emissions, ultimately improving air quality while reducing fuel management expenses.

Fred Zweep

The Spirit of Vancouver Island will soon be outfit to run on LNG.

REPORTTransportation

FAST FACTS:BC Ferries CEO and president Mike Corrigan says its switch to LNG is a game-changer. The plan is for all future builds to use LNG as fuel.


Ltd., they do. In 2012, FortisBC built the largest standalone LNG fuelling station in Western Canada in Abbotsford, which supplies LNG to all of Ved-ders 50-truck fleet. Three other companies and a total of 200 semi-trucks have been converted to LNG. Arrow Transportation Systems Inc., Wheeler Transport and Denwill Enterprises Inc. have all made the switch.

Adding natural gas trucks to our fleet will help us reduce transportation-related emissions, ulti-mately improving air quality while reducing fuel management expenses, says Fred Zweep, presi-dent of Vedder.

Allison says trucking companies that switch from diesel or gas to LNG can reduce greenhouse gas emissions by between 15 and 25 per cent. LNG is well-suited to heavy-duty long haul operations, and most companies only need one fuelling station in their area of operations.

FortisBC also sells tanker loads of LNG to the

town of Inuvik, N.W.T. The gas is chilled to -162 C and put into a vacuum-sealed container truck which acts as a giant Thermos for the gas during its 3,600-kilometre journey from Vancouver.

Allison says the trucks can make the entire trip without venting, so the range of distribution is pretty wide.

There are six LNG facilities in Canada and For-tisBC operates two of them. Its plant in Tilbury Island, B.C., has been operating since 1971. In

October, it broke ground on a $400-million expansion at Tilbury. The company is add-ing a liquefaction facility and another storage tank that will add 1.1 million gigajoules of capacity. It is expected to be

complete by the fourth quarter of 2016. LNG is used in fracing operations, including the Mont-ney play that straddles British Columbia and Alberta, and has potential for the mining, marine and rail transport industries. Any company that

tional type of natural gas customer, according to Al-lison. What weve been doing, since 2009, is work-ing with companies to help convert their heavy-duty

vehicle fleets to either com-pressed natural gas or LNG, he says.

Cost is probably the first selling point, and when British Columbia amended its greenhouse gas regulations in 2012, it permit-ted FortisBC to give out incen-

tives to help encourage companies to convert from diesel to LNG or compressed natural gas, which made it even more attractive.

Its created a great demand in the past few years, says Allison.

In 2012, FortisBC received $104.5 million in incentives, $16 million of which went to vehicle in-centives while the remainder was spent on training and the construction of fuelling stations.

When a fleet comes to us for conversion, we either find a fuelling station nearby that already ex-ists, or we work with them to see what they want, Allison says. They may not select FortisBC to build it, but in some cases, like that of Vedder Transport

Companies like FortisBC and AltaGas have been working to grow the market for LNG in British Columbia, and are planning to

increase their capacity to supply the West Coast market.

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REPORTTransportation

is required to lower or is interested in lowering its carbon footprint or emissions profile has a second reason to do it. In fracing pilot projects, Ferus has observed significant emissions reductions. A company spokesman told Well Construction Journal in the spring of 2013 that it achieved a 30 per cent reduction in carbon dioxide, 75 per cent reduction in nitrous oxide, 90 per cent reduction in particulate emissions and nine per cent reduc-tion in sulphur dioxide by switching from diesel to LNG.

Last June, AltaGas signed a letter of intent with the province the first agreement of its kind for domestic LNG. The company expects to invest approximately $250 million to build a network of small LNG facilities throughout northern B.C., and the first step is to build a liquefaction facility in the northern town of Dawson Creek. The plan is to serve customers who use natural gas to gen-erate power, heat and to operate heavy machinery in the oil and gas industry.

We look forward to working with the province to make LNG a viable option for B.C. residents

and industry, and to help establish a competitive LNG export industry in the province as well, says John Lowe, executive vice-president of AltaGas.

BC Ferries is doing a mid-life refit on two of its ships the Spirit of Vancouver Island and the Spirit of British Columbia. For ships already in the fleet, the company will wait until the mid-life upgrade is scheduled for the engines before making the switch to dual-fuel capability. This gives the ship the flexibility of using whichever fuel is cheapest, although thats usually LNG.

Our intention will be to run them on LNG, says spokesperson Deborah Marshall.

When the ferries return to duty on the com-panys busiest run, between Tsawwassen on the lower mainland and Swartz Bay on Vancouver Island, the company expects to save $8.5 million per year on fuel, she adds. BC Ferries also plans to purchase three new smaller ferries with dual-fuel capability, to be delivered sometime in 2016 or 2017. Fuel savings for these are expected to be about $3 million per year.

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OR FIVE YEARS, ALLEN BEKOLAY DEDICATED HIS life to golf. Raised in Saskatoon, Bekolay first arrived in Alberta to study golf busi-ness management at Lethbridge College

right after high school. Soon, he turned pro and left Alberta to travel internationally he went to New Zealand, and stuck around there to play for a winter.

Eventually, he came back to Canada and started studying business management at Athabasca University. Golf was great for me, he says. But I felt a calling to make my way in the world of business and commerce, and with the energy market being on my doorstep I wanted to learn about the business and how it worked.

He eventually got a job with Imperial Oil as an account representative, looking after their bulk lubricant customers. I loved it, he says, of his switch over to a new industry. I like the fact that its quite dynamic and always chang-ing. Theres a bit of variety and the job is a bit different every day.

Bekolay has been working in the field for seven years. His first position with a small drill-ing company was with Komat Drilling, working on their sales side. His job has since taken him towards different positions between a few small drilling companies, working in both sales and business development.

Most recently, he started working for Com-pass Directional Services Ltd. Its an incredibly technical field and Im going to be working hard at catching up, getting up to speed with every-one and getting to learn a new part of the indus-try, he says. But he enjoys the change of pace at Compass. Its leading-edge and attracting more and more people, he adds. Im trying to learn

as much, and research as much as I can into our business.

Outside of work, Bekolay spends a lot of his free time playing golf and hockey. He currently acts as the president of the Turner Valley Oil-mens Association. And he has also taken up a new position at CADE, helping to plan techni-cal presentations and find younger members and students to learn from the wealth of knowl-edge in CADEs membership. Im looking for new and interesting topics, things that will help the younger engineers coming out of col-lege to give them a base knowledge about where trends are going in the oil patch, he says. That means lots of talk about efficiency. Its about making sure your wellbore is placed accurately to optimize production and life of the well, but saving on your costs. Everyones trying to limit the amount of money spent while maximiz-ing their return. Really, its about making sure theyre using the proper services to get that well done properly, efficiently and on budget.

PROFILEMember

By Martin Dover

F

Heading Towards a new greenHow pro-golfer Allen Bekolay left the course to start a successful career in sales

Allen Bekolay



P

Open for Questions A series of public information sessions aims to spread fair information about the LNG industry in B.C.

By Jacqueline Louie

UBLIC DEBATE, CONTROVERSY AND OPPOSITION often go hand in hand with proposed new energy projects. At the same time, oil and

gas development can bring economic opportunity and the hope for a more prosper-ous future.

Thats the message the B.C. government wants to get out to citizens about liquefied natural gas (LNG) and its possible ben-efits to British Columbia.

LNG is natural gas that has been chilled to -160 C, turned into a liquid and condensed to 1/600th

of its original volume. After its shipped, its then reheated, converted back into a gaseous state and

used for power generation. Northeast B.C. holds an es-timated 2,933 trillion cubic feet of natural gas, primarily in the Horn River Basin, the Montney, the Liard Basin and the Cordova Embay-

ment. An LNG industry in B.C., based on five plants operating by 2021, could create more than 100,000 jobs for British Columbians, according to a 2013 analysis of the potential employment benefits commissioned by the B.C. government.

The seminars are attracting strong interest from communities, from the public at large and from schools,

which are bringing in large groups of students to attend.

REPORTPublic Relations


www.cadecanada.com january/february 2015 21 www.cadecanada.com

To reach out to the public with informa-tion about LNG and what it could mean for B.C., the province is hosting a series of seven interactive community seminars to help educate B.C. residents about LNG and the career options and business opportu-nities that will be available through LNG development. The seminars, which began in October and will wrap up in February, are intended to explain the science of LNG, delving into what natural gas development and export will mean for B.C.s future, in terms of both business opportunities and career opportunities for young people.

The Regional Liquefied Natural Gas Energy Seminars are being well received, and were pleased by the attendance, says Rich Coleman, B.C.s deputy premier and minister of natural gas development. The sessions are providing people of all ages an interactive and fun forum to learn about B.C.s role in energy production and supply, as well as the economic opportu-nities that will be available as the industry develops.

The sessions feature a business-to-busi-ness component, through the LNG-Buy B.C. program, which the province created to connect LNG project proponents with B.C. companies. The goal is to encourage B.C. businesses, both large and small, to participate in LNG and other major project opportunities.

Another key component to the sessions is aimed at young people. WorkBCs Find Your Fit offers hands-on learning focused on the skills required for the jobs of the future. At each seminar, activity stations will allow young people to get a taste of the type of work skills that are required in a variety of fields, from welding and carpen-try to accounting.

Science World British Columbia, a not-for-profit organization whose objective is to engage British Columbians in science and inspire future science and technolo-gy leadership, is also participating in the seminars. At each event, Science World is making presentations on the science of energy, with an introduction to the funda-mentals of energy science, including how

energy is stored, transmitted and released into usable formats.

Residents of B.C. have to make import-ant decisions over time, and we hope those will be informed decisions, says Bryan Tisdall, Science World British Columbia president and CEO. If people understand more about energy, they will be in a better position to make those decisions. Whenev-er you can provide folks with more infor-mation, its good.

Increased knowledge and understanding of the LNG industry will allow B.C. citizens to develop a broader appreciation of the opportunities the industry would bring to the province, Tisdall notes. This means focusing not only on a narrow selection of opportunities related specifically to ex-tracting natural gas, but also opportunities during the construction phase of projects for a wide range of trades, as well as tech-nicians and technologists all careers that feature portable skills.

Another strong point of the seminars, he adds, is the many points of view that are represented, including corporate sector LNG proponents, post-secondary institu-tions (which train young people and pro-vide career information), government, and basic science, provided by Science World.

The seminars are attracting strong inter-est from communities, from the public at large and from schools, which are bring-ing in large groups of students to attend. They are also drawing praise from public relations experts as an effective way for the government to convey information to the public.

Emma Shea, B.C. operations manager at Communica Public Affairs, which focuses on public consultation and aboriginal en-gagement strategies for the energy sector

of its original volume. After its shipped, its then reheated, converted back into a gaseous state and

used for power generation. Northeast B.C. holds an es-timated 2,933 trillion cubic feet of natural gas, primarily in the Horn River Basin, the Montney, the Liard Basin and the Cordova Embay-

ment. An LNG industry in B.C., based on five plants operating by 2021, could create more than 100,000 jobs for British Columbians, according to a 2013 analysis of the potential employment benefits commissioned by the B.C. government.

in Western Canada, thinks its important for the B.C. government to actively engage the public about LNG and its benefits.

The government is trying to reach out to a younger demographic and get them more engaged. Some of these LNG projects wont be in operation until the next de-cade, so if we start now, getting youth en-gaged in the training they would require, they would be well positioned to take advantage of the jobs that will be available in the future, Shea says. I think its great that these things are happening because somebody needs to champion getting the literacy out there about the LNG industry in our province.

Allison MacKenzie, associate professor of public relations at Mount Royal University in Calgary, also praises the B.C. seminars as an effective way to reach the public.

Face-to-face, one-on-one interpersonal communication is the most effective form of communication, MacKenzie says, point-ing to research that has shown this type of human interaction is the most effective at persuading, providing information and creating relationships.

Any type of outreach that involves real people talking to youth is an extremely ef-fective strategy, she says, noting that par-ents today are extremely concerned about their childrens future: about their career options, employment opportunities and what the future will hold. With these semi-nars, when you reach out to youth in this way, you are also reaching out to parents and creating favourable impressions with adults, as well as with their friends. Its a really good strategy with a really strong ripple effect in terms of outreach.

Some of these LNG projects wont be in operation until the next decade, so if we start now, getting youth engaged in the training they would require, they would

be well positioned to take advantage of the jobs that will be available in the future.

Emma Shea

SEMINAR LOCATIONS

Prince George, Fort St. John, Terrace, Prince Rupert, Squamish, Nanaimo (January 13-14) and Kamloops, (February 3-4).

Attendance at the seminars is free. Register at www.LNGinBC.ca.



S

Research Heats Up

REPORTResearch

By Lisa Ostrowski

TEVEN BRYANT BELIEVES A LITTLE COULD GO A long way in the oil sands. A world leader in nanotechnology, Bryant is the recently ap-pointed Canada Excellence Research Chair

(CERC) in Materials Engineering for Unconven-tional Oil Reservoirs. Working out of the University of Calgarys Schulich School of Engineering, Bryant is looking to improve current extraction methods in order to increase efficiency and reduce the envi-ronmental impact of the oil sands. Alberta, he says, is the ideal place for him to further this work.

Its an exciting place. Peo-ple want to do things up here and are interested in trying all kinds of stuff, he says. The research community in place here is looking at all kinds of aspects [of nanotechnology], so it is really a great place.

As the first CERC created at the University of Calgary, Bryant will spend the next seven years ex-ploring alternative means to extract oil and natural

resources using nanoparticles. Through the CERC program, the university will receive up to $10 mil-lion in funding to support Bryants research. This funding will then be matched by the University of Calgary in order to support innovation in energy research.

This is the opportunity to be a part of some-thing big, Bryant says. Theres a lot going on in this province in terms of energy production of all kinds. And all the challenges of energy production

in the modern world pretty much all come together in the oil sands.

Bryant comes to the Uni-versity of Calgary from the University of Texas at Austin,

where he directed the Geological CO2 Storage Joint Industry project and the Nanoparticles for Subsur-face Engineering Industrial Affiliates program. He is a pioneer in the field of meso-science, a relatively new angle within chemical engineering, and has made significant advances in the fields of CO2

This all sounds like science fiction, except that these particles exist. Its just a question of folks

figuring it out. Steven Bryant

Remove PHOTO CAPTION. Catpion: A NuvAero unmanned aerial vehicle, equipped with a camera, can take on tasks from land surveys to pipeline inspections.

Nanotechnology expert Steven Bryant starts a new tenure at the University of Calgary

FAST FACTS:CERC was established by the federal government in 2008 to encourage accomplished academics and research-ers from around the world to work at Canadian universities.

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sequestration, porous media modelling and reac-tive transport theory.

While his position at the University of Texas led him to explore the use of nanoparticles for petro-leum engineering applications, his new role will al-low him to further delve into the possibilities that these particles may hold. Utilizing nanoparticles to change the properties of substances currently used in the oilfield, Bryant hopes to improve both the environmental impact of, and energy expended during, extraction.

Bryant notes that current technology and pre-vious work in the oilfield has positioned his team on the brink of a new and exciting frontier. With some of these particles weve got a new tool in the tool kit We know what the constraints are, we know what the challenges are. Now weve got another way to try to address those challenges.

One of the most exciting concepts that Bryant will be examining draws inspiration from the biomedical field. For years, researchers in medicine have used nanoparticles to help locate and target tumours or internal injuries, but this technology has not yet been applied to the oilfield.

Bryant and his team are particularly interested in the properties of iron oxide nanoparticles (smaller than 50 nanometres) dis-solved in water. When outside of a magnetic field, this mixture acts as a stable solution. When placed in a magnetic field, the particles of iron oxide are attracted to the magnet. If this mixture is exposed to an oscillating magnetic field, the iron oxide nanoparticles attempt to orient themselves with the magnetic attraction. If the oscillation occurs above a certain frequency, the movement of these nanoparticles causes them to generate heat.

For the 80 per cent of the oil sands that must be accessed through in situ operations, Bryant hopes that the development of this technology will create a new method to inject heat into reservoirs. Steam-assisted gravity drainage uses a large amount of energy to heat water, so the use of oscillating magnetic fields might be a new method that could increase the accessibility of oil while decreasing the energy used to access it.

Maybe we can get heat into the reservoir with-out using steam at all. We could put some of these magnetic particles in place and apply a sufficiently fast oscillating magnetic field, he says. Wherever

that field reaches a particle, that particle is going to get hot. So its a way to imagine delivering thermal energy in a completely different mode than whats being done anywhere.

Currently, this technology has been devel-oped for use in Arctic and deep-sea drilling. The nanoparticles, coupled with oscillating electro-magnetic fields, can be used to heat the walls of pipes, decreasing the viscosity of materials inside. In the case of a flow line with gas, water and oil in it, these self-heating nanoparticles can also be used to keep methane hydrates from forming.

Similar to their use in the biomedical field, nanoparticles could also be used as contrast agents to allow for better visualization of steam chambers. Using a lower-frequency electromagnetic field, researchers would be able to map the spaces and optimize well trajectories.

Bryant hopes that his research will not only improve oil extraction processes, but those of oth-er natural resources as well. Similar to his teams ability to transfer and develop knowledge from

the biomedical field, Bryant is hopeful that the research could lead to similar improve-ments in other industries.

If youre in the right po-sition to be aware of whats needed out there in the field,

and aware of whats available, you start to spot these opportunities. This [technology] was estab-lished in a completely different area; the last thing on their mind was getting heat into a pipeline. But if you realize that getting heat in there might be useful for environmental impact reasons, theres a great chance to have some impact in a short amount of time.

Reducing the environmental impact of natural resource extraction is of particular importance in Alberta. The effects of oil extraction in the province have had major implications in the lives of people across the province and country. The creation of more environmentally friendly methods for oil extraction could lead to lower costs for companies in the oil sands, safer methods for extraction and more easily accessible oil reserves. Bryant acknowledges that his teams research may sound far-fetched to some, but is confident that it will lead to lower-impact extraction methods in the future. This all sounds like science fiction, except that these particles exist. Its just a question of folks figuring it out.

If youre in the right position to be aware of whats needed out there in the field, and aware of

whats available, you start to spot these opportunities.

FAST FACTS:Speaking of science and the patch, researchers at the University of British Columbia are applying genomic tech-nologies and charting how microbes function during different stages of shale gas development.

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NUMBERSBy the

Stats at a Glance

Canadian Rig Counts December 1, 2014

Drilling Down Total Utilization

Alberta 310 253 563 55%

B.C. 56 13 69 81%

Manitoba 12 12 24 50%

New Brunswick 0 0 0

Newfoundland 0 0 0

Northwest Territories 0 0 0

Quebec 1 0 1 100%

Saskatchewan 75 74 149 50%

Totals 454 352 806 56%Source: Alberta Department of Energy

Top 5 Most Active OperatorsDecember 1, 2014

Active Rigs

Canadian Natural Resources Ltd. 25

Progress Energy Canada Ltd. 18

Tourmaline Oil Corp. 17

Crescent Point Energy Corp. 16

Encana Corp 16Source: CAODC

Top 5 Most Active Drillers in Western CanadaNovember 27, 2014

Active Total

Precision Drilling Corp. 108 191

Ensign Energy Services Inc. 48 101

Savanna Energy Services Corp. 43 71

Nabors Industries Ltd. 41 64

Trinidad Drilling Ltd. 38 57Source: FirstEnergy Capital

Alberta Land SalesOctober 2014

October 2014 October 2013 YTD 2014 YTD 2013

Oil and Natural Gas

Land Sales $69 million $19 million $442.2 million $587.6 million

Price Per Hectare $488.57 $450.64 $491.64 $340.19

Oil Sands

Land Sales $268,086 $5.4 million $4.5 million $27.2 million

Price Per Hectare $42.74 $400.42 $172.15 $194.83Source: Alberta Department of Energy

For drilling and completions specialists, CADE currently offers one of the best networking and knowledge sharing opportunities in the Canadian petroleum industry. As you look to build your business and launch new technologies, new products and services in the drilling industry, a CADE Sponsorship offers you a cost effective way to deliver your message directly to the entire membership of the leading industry association for Well Construction Professionals in Canada.

YOUR SPONSORSHIP INCLUDES: Ads in Well Construction Journal, full of relevant industry news and articles, presented in a high quality, well-read magazine

Your logo in the Thank you to our sponsors feature on the CADE website and in every issue of Well Construction Journal

Your logo on the Thank you to our sponsors display at every CADE Technical Luncheon

Authorized use of the CADE logo on your website and in marketing materials

Connect with Canadas Drilling IndustryBecome a CADE Sponsor

2014 SPONSORSHIP PACKAGES ARE NOW AVAILABLEContact CADE at 403.532.0220 or by email at [email protected]

www.cadecanada.com

Support CADE by sponsoring our technical lunches, our website and the Well Construction Journal.

Thank You to Our SponsorsThe support of CADE sponsors plays an integral part in our associations success.

Platinum SponsorsNewpark Drilling Fluids

Pason Systems

Gold SponsorsGlobal Steel Ltd.

NCS Energy Services

Pacesetter Directional

Schlumberger

XI Technologies Inc.

Silver SponsorsAkita Drilling Ltd.

Baker Hughes

Cathedral Energy Services Ltd.

Ensign Energy

Lory Oilfield Rentals Inc.

Mostar Directional Technologies

Peak Completions

Petrosight Inc.

Precision Drilling

Well Control Group

SECURE Energy

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Canadian Rig Counts December 1, 2014

Drilling Down Total Utilization

Alberta 310 253 563 55%

B.C. 56 13 69 81%

Manitoba 12 12 24 50%

New Brunswick 0 0 0

Newfoundland 0 0 0

Northwest Territories 0 0 0

Quebec 1 0 1 100%

Saskatchewan 75 74 149 50%

Totals 454 352 806 56%Source: Alberta Department of Energy

Top 5 Most Active OperatorsDecember 1, 2014

Active Rigs

Canadian Natural Resources Ltd. 25

Progress Energy Canada Ltd. 18

Tourmaline Oil Corp. 17

Crescent Point Energy Corp. 16

Encana Corp 16Source: CAODC

Alberta Land SalesOctober 2014

October 2014 October 2013 YTD 2014 YTD 2013

Oil and Natural Gas

Land Sales $69 million $19 million $442.2 million $587.6 million

Price Per Hectare $488.57 $450.64 $491.64 $340.19

Oil Sands

Land Sales $268,086 $5.4 million $4.5 million $27.2 million

Price Per Hectare $42.74 $400.42 $172.15 $194.83Source: Alberta Department of Energy

For drilling and completions specialists, CADE currently offers one of the best networking and knowledge sharing opportunities in the Canadian petroleum industry. As you look to build your business and launch new technologies, new products and services in the drilling industry, a CADE Sponsorship offers you a cost effective way to deliver your message directly to the entire membership of the leading industry association for Well Construction Professionals in Canada.

YOUR SPONSORSHIP INCLUDES: Ads in Well Construction Journal, full of relevant industry news and articles, presented in a high quality, well-read magazine

Your logo in the Thank you to our sponsors feature on the CADE website and in every issue of Well Construction Journal

Your logo on the Thank you to our sponsors display at every CADE Technical Luncheon

Authorized use of the CADE logo on your website and in marketing materials

Connect with Canadas Drilling IndustryBecome a CADE Sponsor

2014 SPONSORSHIP PACKAGES ARE NOW AVAILABLEContact CADE at 403.532.0220 or by email at [email protected]

www.cadecanada.com

Support CADE by sponsoring our technical lunches, our website and the Well Construction Journal.

Thank You to Our SponsorsThe support of CADE sponsors plays an integral part in our associations success.

Platinum SponsorsNewpark Drilling Fluids

Pason Systems

Gold SponsorsGlobal Steel Ltd.

NCS Energy Services

Pacesetter Directional

Schlumberger

XI Technologies Inc.

Silver SponsorsAkita Drilling Ltd.

Baker Hughes

Cathedral Energy Services Ltd.

Ensign Energy

Lory Oilfield Rentals Inc.

Mostar Directional Technologies

Peak Completions

Petrosight Inc.

Precision Drilling

Well Control Group

SECURE Energy

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DEEPERDrilling

By Robbie Jeffrey

With the click of a button Could apps like PetroFeed become the oil and gas industrys future?

N OILMAN AND A SILICON VALLEY TECH entrepreneur walk into a bar. Over a rye and an elderflower lime martini (guess who orders what), they chat

about their respective industries. One of them recommends an app, called PetroFeed, to the other but the mystery is who suggested it to whom?

Ashley Dunfield, founder of PetroFeed, is a composite of the two archetypes. His grandfa-ther built an oil company, his father built an oil company and his two sisters built service companies. He was producing wells at his fathers exploration and production company and was about to take it over when he first got involved in software.

Dunfield made an application that created financial evaluations for drilling opportunities, which he later sold, and took off to Silicon Valley to work in social networks. I was fascinated with how [social networks] deliver the right information to the right person at the right time, he says. And when he applied these principles to oil and gas, he saw a new frontier.

When youre drilling a well, youve got over 20 different companies and 100 people that are going to be involved in the develop-ment cycle, and its all happening in a remote location, Dunfield says. And today its all co-ordinated by phone calls, emails and text messages. All the major operators are talking about supply chain efficiency, but nobody has thought about the communication and digital infrastructure required to make that possible. The industry moves uncharacteris-tically slow in terms of data, he says and yet data is leading change in the rest of the world.

Dunfield envisioned software in which wells, rigs and employees could be connected

in a private social communication loop. With the help of a former well site geologist and industry veteran, PetroFeed was launched in February 2014. By May, the app had attracted a few thousand users and PetroFeed had six employees. Then it blew up, Dunfield says. By November 2014 it had users in the tens of thousands and the company just hired its 15th employee.

With the PetroFeed app, users see the pro-files of rigs in Western Canada, which state their location and activity. They request to be connected to the rig and undergo a veri-fication process to identify their relationship

to the rig, like what position they hold at what compa-ny. PetroFeed collects data

directly from the companies that report the drilling activity while also using govern-ment information, public information and user-reported data. Dunfield stresses that he understands the importance of confidentiali-ty and that its key to the business: You cant just take Facebook and dump it into oil and gas it doesnt work, he says. In PetroFeed, you cant communicate things publicly, but you can connect and share information with people tied to the same asset.

The numbers dont lie: PetroFeed fills a vacuum. Its the engineers, the geologists and the drilling engineers that understand the challenges, Dunfield says. But theyre not the ones who understand the potential solutions. Thats where Im coming from: building the infrastructure that enables other people to have those kinds of ideas and easily build and commercialize them.

The future of PetroFeed, therefore, goes beyond the app to an entire digital network

A

I was fascinated with how [social networks] deliver the right information to the right person at the right time.

Ashley Dunfield

built upon the requirements of the industry, and every major data vendor and major op-erators and service providers are jumping on board. Dunfield hopes to allow companies to communicate with their employees and co-ordinate their activities and find business opportunities and co-ordinate with the peo-ple who are organizing those activities. In short, it doesnt matter whether the oilman or the tech entrepreneur suggested the app. What matters is that afterwards, a whole in-dustry showed up to join them.

THERES AN APP FOR THAT!

A BRIEF SELECTION OF APPS FOR THE DRILLING INDUSTRY:

OilTrax (BlackBerry): Specific to Western Canada, OilTrax is a navigation platform that allows users to search well sites and facilities using satellite imagery and street maps

Prairie Coordinates (Android): Providing data based on the National Topographic System, this site locator is supported for Alberta, Saskatchewan and Manitoba

WellEz (iPhone): A complement to WellEz.net, where you can upload custom drilling and operations reports and the data is analyzed and sent out in activity reports

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WeldCor Supplies, an independent consumer-direct supplier of welding materials, hardbanding alloys DurabandNC and TuffbandNC, hardfacing products and equipment calls itself The ller metal experts, and for good reason. The company, with ofce and warehouse locations across Canada, has gained a reputation as the knowledgeable source for alloy ller metals. Maybe thats because we can answer the second and third questions our customers ask...not just take their order, explained Leroy Billesberger, president and owner of the company. Our extensive knowledge of welding materials, welding processes and the properties of different metals is what really sets us apart. Our people are true welding experts who understand the unique characteristics of different metals, as well as the difference proper welding techniques can make.

WeldCor has been involved in the Canadian Energy Industry for many years and Hardbanding Products were a good t for their business. Knowledgeable energy companies and drilling contractors have come to appreciate the benets of a superior performing hardbanding product coupled with technical expertise. Protecting the casing and tool joints is critical. This protection also results in more efcient drilling, longer drilling cycles and reduced maintenance of the drill pipe. Drilling contractors understand that extending the life of drill string assets goes right to the bottom line. Hardbanding applicators have also beneted by the use of non-cracking Duraband NC and Tuffband NC, since re-application is so much easier and the wire can be re-applied over and over again without removal. We look for specialized products that can satisfy the customers needs, and is cost effective. The Hardbanding products from Postle perfectly t this criteria. WeldCor is also the only Canadian company that supplies hardbanding products direct to the applicators and provides local on-site technical assistance, Billesberger said.

Today, the Saskatoon resident nds himself in great demand providing

technical support and consulting to hundreds of companies in Canada and the USA.

His current company, WeldCor Supplies, also provides products to some of Canadas largest oil projects.

With the increase of directional drilling in Western Canada, there has been a rise in the usage of wear resistant products such as non-cracking Duraband NC from Hardbanding Solutions, a business unit of Postle Industries. WeldCor is the Hardbanding Solutions Technical Center for all of Canada. In addition to being a resource for the oil and gas industry, the Technical Center offers educational sessions and provides assistance to applicators with hands-on training at the applicators facility or in the eld.

The training that is provided, gives applicators a basic understanding of the different types of hardbanding. In addition, they are introduced to the principles of heat treatment and metallurgy and how it relates to the hardbanding process. The end result

is an applicator who understands their machine, as well as the welding process, in order to produce an end product with guaranteed quality.

To reinforce WeldCors commitment to the oil and gas industry, and as a response to requests by producers and drilling contractors for high quality hardband work, Billesberger developed a site inspection program to ensure that certied applicators are correctly and consistently applying their hardband alloys. WeldCor dispatches a quality assurance specialist to monitor the application and then prepares a comprehensive report that will be shared with the applicator and the requesting drilling contractor.

[email protected]

WeldCor Supplies Inc.Edmonton, [email protected]

WeldCor, Canadian Technical Center for Duraband Hardbanding

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well construction journal - january/february 2015

Documents

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