Page 1

Stats Quarterly Highlights For the January to September period: Canadian oil production is showing strong growth over the last quarter, particularly from the oil sands. Overall production in Q3/2013 is up by 315,000 b/d over the same period a year ago. Production for the first three quarters this year is up by 225,000 b/d over the same period a year ago. Natural gas production for the first nine months this year is down by 0.2 bcf/d from the same period last year.


Well licences


Commodity Price 2013 2012


2011 = 11,520

14,000 12,000

2012 = 8,015

10,000 8,000

2013 = 7,493

6,000 4,000 2,000




c De






Cdn Lt Swt Posted WCS Posted


2013 6,629 2012 5,593


Manitoba 2013 378 2012 490



WTI Premium to WCS

40 20

context . volume 1 . issue 3 . December 2013

WTI = West Texas Intermediate; WCS = Western Canadian Select; Cdn Par = Canadian Par; M = thousand; MM = million; /b = per barrel; /Mcf = per thousand cubic feet; bcf/d = billion cubic feet per day


M M J S N 20 13

WTI premium to WCS

0 J S N 20 12


20 2






Brent ICE

J S N 20 11





WTI US$/b WCS C$/b Cdn Par C$/b AECO C$/Mcf 98.14 77.15 95.13 3.05 96.21 74.30 86.84 2.12 +2% +4% +10% +44%


10 M M

Saskatchewan 2013 2,742 2012 2,493







Well Licences Issued: (Jan - Sep) %

$MM Hectares 2013 $44 72,682 2012 $79 146,073

Wells Drilled in Western Canada




Crude Oil Prices

from a year ago. This is expected to be reflected in stronger drilling levels this winter into next spring.

2013 616 2012 454



Prices: The WTI/WCS differential narrowed marginally from Q2 2013 and Q3 2012. The increase in rail movement likely contributed to increased product movement from Western Canada.

across Canada are up

British Columbia






Wells Drilled: (Jan - Sep) Overall, oil and gas drilling is 7% behind last year’s pace. However, Q3 indicates both oil and gas drilling are making a recovery from the first half of the year. Saskatchewan oil drilling is ahead of last year’s pace, while Alberta’s gas and to a lesser extent oil trail last year. Oil Gas Alberta 3,216 -3.0% 659 -23.0% British Columbia 41 -21.0% 343 -5.0% Saskatchewan 2,097 +1.0% 3 -86.4% Manitoba 387 -12.0% —


$MM Hectares 2013 $581 1,797,933 2012 $872 2,437,740



$MM Hectares Jan - Sep 2013 $158 83,846 Jan - Sep 2012 $97 92,173



while gas wells continued the recent trend



Fe b








Oil wells were down by

British Columbia


Land Sales in Western Canada Land sales in Western Canada fell in the first nine months of 2013 relative to the same period a year ago. Bonuses were down by 25% while hectares were off by 27%. This was driven by decreases in both Alberta and Saskatchewan, while British Columbia bonuses were up. In January through September 2013, Alberta accounted for 74% of total western Canadian sales versus 83% a year ago.


Table of

Communication 2.0 Page 23


Volume 1 Issue 3 the communication 2.0 issue Features 20

Everyone’s Guide to the RCE Whatever your background, there’s information in the 2013 Responsible Canadian Energy Progress report you need to know By David Coglon


Communication 2.0: Changing the Conversation It’s time to get a little bit loud and proud about Canada’s energy

CAPP’s Year in Review


Yes, I Do Work for the Oil Industry! An affirming guide on dealing with oil and gas critics and cynics in your daily life

Page 7

By Scott Simpson

Cover photo of woman (top left): TheCanadian Press Images/Fred Chartrand


Rich Kruger on Leadership Page 30



Stats Quarterly


In This Issue


President’s Message / Year in Review


Industry News


What’s Up at CAPP?


Ask An Expert: Darrell Bricker


Leadership Profile: Imperial’s Rich Kruger


O&G 101: Oil tankers






What’s Online at CAPP


In Closing: Bob Bleaney context . volume 1 . issue 3 . December 2013



Everything starts with safety. Or everything stops. “Safety is something we do day in and day out.�

- Gareth Igloliorte Process Safety Lead, Husky Energy

In the oil and gas industry, keeping safety top-of-mind starts with every meeting every single day. From day one, everyone in the industry is empowered with the ability to stop any job if they have a safety concern. Rigorous training starts every career. Ongoing training ensures the importance of safety remains a constant. Weekly drills on every offshore installation and daily safety moments in every office are part of the ongoing commitment to ensuring the health and well-being of every worker. Offshore and onshore, safety never stops. To learn more, visit CAPP.ca.

In this Issue


Welcome to CAPP’s quarterly members’ magazine. The theme for this issue is Communication 2.0 Open-pit mines, bull dozers, overcrowded trailers, cowboys, lines of semis and pick-up trucks lining Alberta’s northern highways: Some of the more mundane images anti-oil sands campaigners have strategized and worked tirelessly to ensure the words “oil sands” evoke in the minds of many Canadians. According to those who study activist campaigns, this first phase is called ‘framing an issue,’ followed then by ‘increasing the conflict,’ and finally by ‘leveraging the conflict’ towards the activists’ goals, which could be stricter regulations, improved environmental performance, or perhaps shutting down an industry entirely. For the industry, the activists’ end goal for the ‘oil sands conflict’ has been difficult to decipher. Some groups say they want improved environmental performance and better protection of community health, which is easy to agree with as citizens and given that continuous improvement is an industry mantra. Others cite a fast transition to a low carbon energy future, response to which varies depending on timeline. Still others directly demand ‘shut it down,’ citing a list of environmental, social, economic, philosophical and political reasons — and opinions. As a technical industry, responding to performance questions is usually the capp.ca/context

easiest. As businesses, studying and projecting the future of energy is also a strong suit, with Shell, Exxon and BP notable as global thought leaders. However, dealing with questions regarding the morality of oil, and people’s alternative economic or personal political views? This is, for most, harder. Fact is oil and natural gas energy is needed and sought after for the benefits it brings. Plentiful, safe, convenient hydrocarbon energy makes our lives easier, safer, and longer. The Canadian oil and natural gas sector is world-class, effectively managing risks, transparently reporting a host of information to shareholders and governments, innovating, safely selling affordable energy products, and finally sharing responsibly the wealth created through a host of highly-paid jobs, contracts, and via a competitive systems of resource rent payments, plus other revenues, to governments. Despite this, learning how to articulate the need, ideals and value of Canada’s oil and gas industry proudly has been a journey for us all. From thinking the mistruths and conflict might just go away if we ignore it at first, to responding with stories about solutions by Canadians who value and take pride in innovation, freedom and hard work, we’ve covered a lot of ground since 2010 and learned a lot. In this issue, pollster Darrell Bricker tells us where Canadians are on the oil and gas industry, and where he thinks we’re headed as a bold, and to a large

extent, new country. Our cover feature Communications 2.0 describes some of the strategic thinking and a few of the initiatives underpinning our next phase of communication and engagement with stakeholders and the public. Meanwhile, Yes, I Do Work for the Oil and Gas Industry! provides a few practical personal communication strategies for you, the members of our oil and gas community, to consider when dealing with fossil-fuel critics, anti-oil activists and other detractors in your day-to-day lives. A key pillar of our communication approach is our ability to rely on credible, science and fact-based performance reporting through our Responsible Canadian Energy program. In November, we released the 2013 Responsible Canadian Energy progress report and we’ve provided some highlights and key findings through Everyone’s Guide to the RCE. As usual, we provide you with an update of activities and milestones achieved on behalf of members in What’s Up at CAPP. Meanwhile, our president, Dave Collyer, shares his thoughts on 2013 in his Year in Review Q&A. Enjoy this edition of Context, share it with your colleagues, and as always, let us know how we’re doing.

Janet Annesley Vice President Communication Canadian Association of Petroleum Producers context . volume 1 . issue 3 . December 2013


Contributors Elizabeth Chorney-Booth The official member magazine for the Canadian Association of Petroleum Producers (CAPP)

Elizabeth Chorney-Booth is a Calgary-based freelance writer with over 15 years of experience. A former rock ‘n’ roll journalist, Elizabeth now focuses on writing about lifestyles, business, entertainment, and food. Her work has appeared in The Calgary Herald, Swerve, Where Calgary, Up! and other publications. She’s also co-founder of RollingSpoon.com, which explores the connection between music and food.

Publisher Janet Annesley, Vice President Communication CAPP Janet.Annesley@capp.ca

David Coglon

Managing Editor Brenda Jones, Manager Member Communication and Special Events CAPP, Brenda.Jones@capp.ca

David Coglon is a Calgary freelance writer with nearly 30 years of experience. He has written for different industry associations and many of Canada’s leading oil and gas companies on a wide range of topics, including the environment and corporate social responsibility. His writing has been published on the web, in corporate publications and in newspapers including the National Post and The Globe and Mail.

Rich Lam Rich Lam is a Vancouver, B.C., based professional photographer with more than 15 years experience specializing in corporate, sports, editorial, and portrait photography. Through his work, Richard has been fortunate enough to travel the world working at events such as the Rugby World Cup and the Olympic Games. His work has appeared around the world in publications such as The New York Times, The Globe and Mail, Sports Illustrated, USA Today, New Zealand Herald and The Guardian.

Scott Simpson Scott Simpson spent 32 years as an award-winning reporter, editor and columnist at the Vancouver Sun before a 2013 career shift into communications consulting and freelance writing. His journalism career encompassed business writing on energy and mineral resources, government policy, Aboriginal affairs, transportation, utilities, economics and innovation.

Volume 1 Issue 3 context@capp.ca | www.capp.ca/context

Editor Andrew Mah, Member Communication Advisor CAPP Andrew.Mah@capp.ca Art Director Susie Wong, Blunt Strategic in cooperation with Radfactory House of Design Birdeen Selzer, Blunt Strategic in cooperation with mindjello creative Contributors Elizabeth Chorny-Booth, David Coglon, Brad Herald, Richard Lam, Aaron Miller, Scott Simpson Digital Communications Christina Pilarski, Manager Campaigns CAPP Christina.Pilarski@capp.ca Courtenay Davidson Digital Communication Advisor CAPP Courtenay.Davidson@capp.ca Context Concept, Strategy and Product Development Agnes Zalewski, Blunt Strategic CAPP Executive Team President Dave Collyer Janet Annesley


Vice President External Relations - Ottawa Bob Bleaney


Vice President Policy and Environment Alex Ferguson


Vice President Operations David Pryce


Vice President Pipeline Regulation and General Counsel Nick Schultz

CONTEXT is printed on 100 Per cent Post‑Consumer Fiber, manufactured using Biogas Energy


Vice President Communication


Vice President Markets and Oil Sands Greg Stringham


Offices Calgary 2100, 350 – 7th Ave SW, Calgary, Alberta T2P 3N9, Tel: 403.267.1100

by using

1683 kg of recycled material we saved: 40.5 kwh of energy

St. Johns 403, 235 Water Street, St. John’s, Newfoundland and Labrador, A1C 1B6, Tel: 709.724.4200

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tonnes of greenhouse gases

538 kg of solid waste 37 trees 6

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context . volume 1 . issue 3 . December 2013

Printed in Canada by McAra Printing. Copyright © 2013 Canadian Association of Petroleum Producers. All rights reserved. Reproduction in whole or in part is strictly prohibited.

Publication Number: 2013-9203


Q&A CAPP Year in Review

President’s Message

with Dave Collyer, President CAPP

As 2013 draws to a close, Context Magazine sits with CAPP President Dave Collyer to get his reflections about and assessment of the year gone by. Q: For the average member who may not know a lot about CAPP, how would you describe the value that CAPP delivers to Canada’s upstream oil and gas industry? CAPP is involved in many things, but at the end of the day we are striving to deliver two outcomes on behalf of our members: competitiveness and social licence. To accomplish those outcomes, we are active in four areas — education, communication and outreach, policy and regulatory advocacy and enabling performance improvement. CAPP is second to none among associations in Canada in its reach and capacity to represent the interests of its members across a very broad range of issues, jurisdictions and interests. Q: What for you are the key accomplishments that CAPP was able to deliver to members in 2013? The major accomplishments for CAPP in 2013 are summarized in the sidebar (2013 Year in Review Key Milestones and Highlights, pp 8-9). It was another good year in terms of value creation for our members. CAPP has a very strong value proposition for members, but we also know we need to continue to earn the confidence and support of our members through consistent results delivery. Q: What were the major challenges in 2013? Any unexpected issues arise? A major challenge for 2013 was market access, both for crude oil and natural gas. The increasing constraints on market access are impacting the profitability and competitiveness of our industry, and undermining the confidence of our prospective customers. I remain confident that we will work through these issues, but there is no question they are challenging. Another important issue in 2013 was regulatory reform. CAPP has been a proponent of significant regulatory reform to improve Canada’s competitiveness while continuing to assure responsible environmental outcomes. This capp.ca/context

has been a very active year in terms of ensuring that many initiatives in this area remain on track – federal regulatory reform, transition to Alberta Energy Regulator, new Aboriginal Consultation Policy for Alberta, land use planning, etc., remain on track. To your second question, in this position I have come to expect the unexpected. There are always new challenges and issues that arise. That is the new reality and we must be able to adapt accordingly. Q: What are some of the key issues we tackled in 2013 that still need to be resolved as we head into 2014? Many of the issues we tackle at CAPP have more than a one-year time horizon. Some of the key issues that we focused on in 2013 will continue to be priorities in 2014 — including market access, fiscal and regulatory competitiveness, implementation of regulatory reform and our ongoing communications campaign. Q: Would you describe 2013 as a successful year for CAPP and members? There were many successes realized by CAPP and the upstream industry in 2013. I am proud of what we have accomplished and appreciate the efforts of CAPP staff and our members in delivering these results. That being said, we are engaged in a dialogue about energy and environment that is both incredibly important to Canada context . volume 1 . issue 3 . December 2013


President’s Message / year in review

and at the same time complex and for some polarizing. I firmly believe our industry is on the right track, but this journey is a marathon not a sprint. We will achieve outcomes that benefit all Canadians if as an industry we continue to be visibly committed and approach these challenges with intensity and a sense of urgency. Q: Was there a year’s highlight for you? There were many highlights during the year, some of which are noted in the sidebar. The one thing that stands out for me is how the industry has come together in the past few years to accelerate environmental performance improvement and to be much more proactive in communication. We now have a platform that allows us to take industry to the next level in both these areas. Q: Any additional thoughts or words for our members? I would offer three thoughts for CAPP’s members.

2013 Year in Review Key Milestones and Highlights CAPP focuses on delivering results for our members under two broad themes — Competitiveness and Social Licence.



A number of actions were taken to increase the focus by governments on industry competitiveness (e.g., initiated broad competitiveness review, cumulative policy cost burden and integrated policy reviews, changes in Saskatchewan rural municipal taxation, favourable Supreme Court ruling on Daishowa tax case related to reclamation obligations associated with land dispositions), all of which will provide a basis for ongoing advocacy with governments and stakeholders

The first is that we have the privilege to work in an industry that critical to the future prosperity of Canada and that is important in a global context. As we continue to we get it right going forward, and I firmly believe we have the capacity and capability to do so, we will demonstrate the leadership and world-class performance that is expected of us by our stakeholders and by the Canadian public. The second is that we are much stronger if we work together as an industry. We can and should compete on many fronts, but in other areas such as environmental performance, safety and integrity, policy advocacy and messaging, we are much more effective if we align under the CAPP umbrella. The third is that our industry must maintain our social licence every day through our performance, our messaging, and by taking a constructive, transparent and solutions‑oriented approach to the challenges we face — a challenge we all need to embrace as individuals! Sincerely,


Continued to engage with federal, Alberta and British Columbia governments on improvements to the overall regulatory system. Outcomes to date are well‑aligned with CAPP’s representations and overall implementation is on track (notwithstanding issues in near term with operational approvals in Alberta, most of which are unrelated to broader regulatory changes).

Dave Collyer, President, Canadian Association of Petroleum Producers


context . volume 1 . issue 3 . December 2013


President’s Message / year in review

Partnership with Canadian Geographic Promotes Energy Literacy Canadian Geographic is published by the Royal Canadian Geographical Society

3. 4. 5.


Social License


Numerous performance initiatives across the value chain — hydraulic fracturing operating practices, producer-operated pipeline integrity, dilbit studies, etc., all intended to address environmental and safety concerns and to position the Canadian industry and regulatory system as “world class”.

2. Successful outcomes and progress on a broad range of environmental and regulatory files. Some examples include Alberta wetlands policy, urban well liabilities, Alberta Aboriginal consultation, CEAA, federal Fisheries Act and alternatives to costly measurement of fugitive GHG emissions in British Columbia.

Developed and implemented strategies in support of South / East / West market access (pipeline, rail, LNG) for crude oil and natural gas, including market studies, policy recommendations, industry performance initiatives across the value chain, supply-chain analyses and economic benefits studies.

Advanced a broad spectrum of initiatives to improve industry health and safety performance (e.g., process safety and safety culture).

Continued a broad and diverse communication “air campaign” with refreshed advertising concepts (“Canada’s Energy”), media partnerships (Postmedia) and a disciplined “zero tolerance” media approach. Initiated a more extensive communication and outreach “ground campaign” to address social licence issues, including community engagement, coalition building, and visible engagement with key influencers / decision makers.



TransCanada Mainline hearing outcome was extremely well-aligned with CAPP’s position, resulting in significant cost savings for all upstream natural gas producers relative to TransCanada’s proposed cost shift to the NGTL system. In addition, several pipeline toll settlements (e.g., NGTL, Westcoast, Great Lakes US, Trans Mountain) avoided regulatory proceedings and resulted in substantive transportation cost savings for producers.


Successfully launched a national energy literacy initiative with Canadian Geographic, targeted at both key influencers and the public education system, and founded on enhancing understanding of the overall Canadian energy system.

Maintained broad public and public policy support for the upstream industry across Canada, recognizing there continue to be significant challenges with some constituencies and some jurisdictions.

context . volume 1 . issue 3 . December 2013


Innovation: COSIA Performance Update

Oil sands CEOs take centre stage at COSIA’s Performance Update event, November 26, 2013.

Canada’s Oil Sands Innovation Alliance held its first Performance Update on November 26, 2013. This was an opportunity for COSIA and its 13 member companies — each with operations in Canada’s oil sands — to engage with a wide group of stakeholders and fulfill their ongoing commitment to communicate the progress made in improving the environmental performance in Canada’s oil sands. Stakeholders ranging from industry, government, NGOs, media and Aboriginal groups attended the event at the TELUS Convention Centre in Calgary. They had the opportunity to learn about some of the projects currently under way and to learn a bit more about COSIA itself. Also in attendance were CEOs from five of COSIA’s member companies, including Ken Lueers of ConocoPhillips Canada, André Goffart of Total E&P Canada, Christina Verchere of BP Canada, Murray Edwards of Canadian Natural Resources Limited, and Chris Seasons of Devon Canada. Each CEO shared his/her own thoughts about COSIA. One theme that stood out is how COSIA itself is an innovation.

Through COSIA, the 13 member companies have agreed to fully share environmental performance innovations with each other. This is an unprecedented spirit of collaboration among companies who are competitors in the marketplace. “To get 13 companies to agree to something and not even talk about what it’s going to cost us, and launch it and move it along—that is the best indication of progress,” said Chris Seasons, President of Devon Canada Corp. “I have never seen it in my career. To me, that is the real litmus

To date, COSIA’s member companies have shared 560 technologies worth a total of $900 million and are now actively working on 185 joint industry projects worth $500 million across COSIA’s four environmental priority areas (EPAs): land, water, tailings and greenhouses gases.

For More Information Canada’s Oil Sands Innovation Alliance: http://www.cosia.ca

Big Discovery

Keystone Believers

Partners Statoil and Husky Energy discovered a significant offshore oil reserve at Bay du Nord, about 500 kilometres northeast of St. John’s, Newfoundland. The discovery of between 300 million and 600 million barrels of oil is expected to contribute to ongoing growth in Atlantic Canada’s offshore oil industry.

What do CBC broadcaster Rex Murphy, Liberal leader Justin Trudeau and Conservative Prime Minister Stephen Harper have in common? Support for the oil sands and/or the proposed Keystone XL pipeline. Justin Trudeau (centre) with former Australian prime minister Julia Gillard (left) and former U.S. secretary of state Madeleine Albright (right) at a policy conference held by The Center for American Progress.


test. We continue to push pretty hard on it for outcomes and to better the industry as a whole.”

Photos: courtesy COSIA (top); The Canadian Press Images/Louie Palu (bottom)

In the news

Industry News

Justin Trudeau:

Rex Murphy:

“My support for Keystone is steadfast.”

“[The oil sands] is Canada’s great national project for the 21st century.”

context . volume 1 . issue 3 . December 2013

Stephen Harper: “The logic behind this project is simply overwhelming.”

Giving Gas a Break

The British Columbia government announced its current Infrastructure Royalty Credit Program. The program could provide nearly $116 million in royalty credits for energy companies to construct roads or build pipelines needed for natural gas production in the province’s northeast. capp.ca/context

Industry News

Enform Nisku Turns 25

By the Numbers:

Enform, the safety association for Canada’s upstream oil and gas industry, operates a state-of-the-art training centre in Nisku, located just south of Edmonton. The facility recently celebrated its 25th anniversary with an announcement that it will spend $3.7 million to upgrade and expand, adding for example, high‑pressure drilling equipment for training students.

Canada’s oil and gas industry is an engine of growth and jobs all across the country. For example, the industry supported the following in 2012:

in Ontario:

“With safety being a top industry, regulatory and public priority, this investment allows us to continue to offer the highest levels of hands-on training in a live operating environment at our Nisku facility,” said Enform President Cameron MacGillivray.

processes built to the specifications and standards used by the Canadian petroleum industry. Students are given real-world training in gas production and utility, oil production, well control, and rescue operations.

The Nisku facility features hands-on training labs with equipment and

For More Information

$3.4 billion in economic growth and 37,000 jobs.

in Quebec:

$940 million in economic growth and 10,000 jobs.

Enform: http://www.enform.ca


The United States overtook Russia as the world’s largest producer of oil and gas (total combined) in July, with production of 22 million barrels a day equivalent of oil, natural gas and related fuels. This is largely because of increased shale gas production.

In British Columbia: $1.4 billion in economic growth and 16,000 jobs.

Source: KPMG 2013

Photo: courtesy Enform; Illustration: courtesy PSAC

Enform President Cameron MacGillivray

PSAC Releases Hydraulic Fracturing Code of Conduct After completing an intense program of community engagement over the past six months, the Petroleum Services Association of Canada (PSAC) released a hydraulic fracturing code of conduct for the Canadian oil and gas service sector on October 30, 2013. The hydraulic fracturing code of conduct outlines standard practices for sound technical and environmental performance when fracturing a well and defines mutual expectations for working with stakeholders. Mark Salkeld, President and CEO of PSAC, states: “We’ve seen public concern surrounding hydraulic fracturing operations increase over the past years. It was definitely time to address that in a proactive and positive way, but we knew talking to community members wasn’t


going to be enough. We had to act. That’s why we created the hydraulic fracturing code of conduct.” To gather community input into the purpose and content of the code of conduct, PSAC met with over 100 community members in seven regions in four provinces. Participants represented landowners, community groups, local government and business associations. Eleven leading PSAC member companies, all of which perform hydraulic fracturing, helped create the code of conduct and have voluntarily agreed to follow it, wherever they work in Canada.

For More Information Petroleum Services Association of Canada: http://www.psac.ca

The five areas covered by PSAC’s hydraulic fracturing code of conduct

PSAC and CAPP In developing its code of conduct, PSAC consulted with CAPP’s Guiding Principles and Operating Practices for Hydraulic Fracturing (www.capp.ca/canadaIndustry/naturalGas/Shalegas) to ensure the policies aligned and were mutually supportive. For example, PSAC’s code commits its members to providing their customers — upstream producers — a list of additives used in fracturing fluids, allowing producers to disclose this information as outlined by CAPP’s Hydraulic Fracturing Operating Practice #1: Fracturing Fluid Additive Disclosure.

context . volume 1 . issue 3 . December 2013


What’s Up at CAPP?

CAPP’s Strategic Outcomes CAPP strives to deliver for our members

What’s Up at CAPP Updates on some of the activities and

Improved Competitiveness In:


Environmental Policy and Regulations

Market Access and Growth

Pipeline Tolls

Aboriginal Consultation

Workforce Safety

milestones we’ve been working on for

Canadian Energy Framework

Enhanced Social Licence to Develop and

members, through the THIRD quarter of 2013.

Operate Through: Performance


Communication and Outreach

Update on the Alberta Energy Regulator The Alberta Energy Regulator (AER) has moved to Phase 2 of its implementation of the Responsible Energy Development Act (REDA). This stage of implementation involves changes associated with Section 31 of the REDA (Notice of Application), requiring the Regulator to provide public notification of proposed activities. As well, land-use authorizations and dispositions for energy-related activities under the Public Lands Act (PLA) have shifted to the AER from Environment and Sustainable Resource Development (ESRD) as of December 2, 2013. “The AER has committed to making the transition to the new regulator as seamless as possible, while working towards a transformation to the promised gains in efficiencies achievable through a single regulator,” says Vicki Ballance, Manager Regulatory Affairs at CAPP. “At CAPP, we’ve been working hard to ensure that during this challenging time of change, government is receiving feedback on what industry is seeing of the new regulator in terms of meeting these goals.”

Vicki Ballance, Manager Regulatory Affairs at CAPP

CAPP, for example, provided key feedback on regulatory delivery options to address Section 31 of the REDA, which would require additional public notification for proposed activities. CAPP proposed options that would ensure the additional requirements distinguished between routine and non-routine applications in order to ensure that routine applications could continue to be processed and decisions made immediately or on an expedited basis. “Had these additional notification timelines been applied to routine applications, we would have seen a large volume of applications, that were typically processed within 72 hours, suddenly taking as long as 30 days,” says Ballance. Industry has also identified a significant issue regarding approval delays, particularly relating to the 2013/14 winter drill season. There have been an excess of 1,000 backlogged applications that if not processed will potentially result in program cancellations — about $1.5 billion in investment is at risk. CAPP’s understanding is that for the most part, the delays are related to resourcing and the transitioning of existing processes to the AER, rather than the implementation of new processes. CAPP has brought this issue to the Alberta government’s attention. “We continue to track progress, provide advice on resolving issues, and advocate for solutions, including strong government oversight,” says Ballance. “It looks like AER has really ramped up processing efforts and we appreciate that. The areas of ongoing risk are those approvals requiring Aboriginal consultation approval – namely, who to consult and the adequacy of consultation. While we are beginning to see some progress here, we will need to continue to monitor this piece.”

For more information, contact Vicki Ballance, Vicki.Ballance@capp.ca. 12

context . volume 1 . issue 3 . December 2013


What’s Up at CAPP?

Thoughts on Alberta’s New Wetland Policy

B.C. Proposes a Water Sustainability Act

The Alberta Government released its new Wetland Policy in September. The delivery of a provincial wetland policy is an important milestone for Alberta. This policy goal is to conserve, restore, protect and manage Alberta’s wetlands to sustain the benefits they provide to the environment, society and the economy. CAPP has been actively engaged in stakeholder consultations on the policy since 2005.

The British Columbia Ministry of Environment released a detailed legislative proposal for its new Water Sustainability Act on October 18th, 2013. As part of the proposal, the Act provides an exemption for saline groundwater, as advocated by CAPP. However, there is an issue with the definition of saline groundwater used in the Act.

“The announced policy is balanced and considers variations in wetland abundance across the province, as well as regional goals and outcomes for wetland management,” says Brad Herald, Manager Operations for Alberta, Saskatchewan and Health & Safety at CAPP. “The shift in approach to relative wetland value and protection of high-value wetlands is a significant improvement over the previous area-based system that did not consider the significance of the wetlands lost or regional priorities.” Policy implementation is to be phased over the next two years. White Area (settled southern portion of the province) implementation is anticipated for August 2014, and Green Area (forested Crown land comprising most of northern Alberta) implementation is anticipated for August 2015. CAPP will continue to participate in targeted stakeholder engagement on key policy components during the implementation phase.

For more information, contact Brad Herald, Brad.Herald@capp.ca.

“Unfortunately, many saline or otherwise unusable groundwater resources currently or potentially sourced by industry would not meet the proposed definition for saline groundwater,” says Tara Payment, Manager Water and Reclamation at CAPP. As it’s currently worded, the Act defines saline groundwater as: “groundwater found under 600 metres below the ground surface that contains either: >10,000 mg/L dissolved solids; or >4,000 mg/L total dissolved solids and contains amounts of hydrocarbons or hydrogen sulfide.” These criteria add layers of complexity that will have the unintended consequence of discouraging industry from using lower quality groundwater sources that are only suitable for industrial applications. “CAPP is recommending that the definition be based on the usability of the groundwater source,” says Payment. This would exempt groundwater that is unsuitable for human consumption or agricultural and livestock use from the regulations. CAPP has expressed its concern to the B.C. government and is optimistic that this issue will be addressed before the legislation is brought forward. The Water Sustainability Act legislation is to be introduced in Spring, 2014.

For more information, contact Tara Payment, Tara.Payment@capp.ca. or Geoff Morrison, Manager B.C. Operations, Geoff.Morrison@capp.ca.


context . volume 1 . issue 3 . December 2013


What’s Up at CAPP?

Communication and Outreach 2014 CAPP Scotiabank Investment Symposium, April 3-4, 2014, Toronto  The 2014 CAPP Scotiabank Investment Symposium is designed to give oil and gas companies direct access to the investment community, showcasing the many quality investment opportunities to be found in the industry. In addition, the symposium provides the industry with a platform to increase the profile of oil and gas among Toronto’s business and media elite, including communicating the economic and energy benefits delivered to Ontario. The 2014 CAPP Scotiabank Investment Symposium will be held at the Sheraton Centre Hotel in Toronto. For the first time, the industry’s flagship event is being held in partnership with Scotiabank. To date, over 65 companies have signed on to make presentations to over 200 institutional investors and analysts.

Our goal is to make the 2014 CAPP Scotiabank Investment Symposium the definitive investment event for the Canadian upstream oil and gas industry. Brenda Jones, Manager Member Communication and Special Events at CAPP

“Our goal is to make the 2014 CAPP Scotiabank Investment Symposium the definitive investment event for the Canadian upstream oil and gas industry,” says Brenda Jones, Manager Member Communication and Special Events at CAPP. The event was held for the first time in Toronto in 2012 and the success of the previous symposium is a big reason why CAPP is returning to Toronto in 2014. “We had a lot of positive outcomes from that event,” notes Jones, “Not only were we able to attract more investors who are based out of Ontario and the eastern United States, we were also able to raise the profile of our industry in central Canada, a major goal given our desire for market access.”

Canada’s Energy Campaign Launched  CAPP’s communication strategies continue to evolve, shifting to capitalize on Canadians’ personal connection to energy use in their day-to-day lives, as well as their sense of pride in how the oil sands industry has responded to environmental performance challenges with world-leading innovation, collaboration and determination. “The Canada’s Energy program includes a series of national TV, print and online ads and a social media campaign to target a range of people online,” says Janet Annesley, Vice President Communication at CAPP. “After several years of focus on environmental innovation, people and increasing the public’s awareness of the oil sands’ benefits, we’ve tapped into a latent pride that Canada is, humbly speaking, ‘pretty good at this,’ and Canadians want us to continue.” Canada’s Energy will run until mid-December and intensify in 2014. “Canada’s industry is a vital part of this country. I look forward to telling more great stories of how oil sands energy improves our lives,” says Annesley.

CAPP Introduces New Tagline To better describe the scope of CAPP member activities in crude oil and natural gas, CAPP has added the tag line “Canada’s Oil and Natural Gas Producers” to its distinctive maple leaf logo. “We’ve had anecdotal evidence that some people view CAPP as an oil-focused organization,” says Janet Annesley, Vice President Communication at CAPP. “Natural gas producers are a fundamental part of this industry and the new tag line makes this clear.” You’ll see the new tag line on all CAPP communications except those specifically paid for by Canada’s Oil Sands Producers.

For more information, contact Evelyn Ferchuk, Evelyn.Ferchuk@capp.ca.

Companies who haven’t already signed up to participate can still do so.

To sign up or learn more, contact Brenda Jones, Brenda.Jones@capp.ca.


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What’s Up at CAPP? Member Engagement: CAPP Speaker Series As part of CAPP’s 2013 Speaker Series, former U.S. ambassador to Canada, David Wilkins spoke on September 18 to more than 400 industry employees and invited guests at the Metropolitan Centre in Calgary. Ambassador Wilkins spoke rousingly on his insights and opinions on the state of Canada-U.S. energy relations, touching on Keystone XL and the impact of the upcoming mid-term elections. On October 31, Dr. Darrell Bricker, CEO of Ipsos Global Public Affairs, and the co-author of the Canadian best-seller The Big Shift, provided industry insiders with his take on the major demographic and immigration trends driving Canadian cultural change. In a talk that was both engaging and informative, Dr. Bricker described this “shift” in Canadian values, and its impact on politics, culture and business.

Wilkins photo courtesy Nelson Mullins; Bricker photo courtesy Ipsos.

(Check out our one-on-one Ask an Expert Q&A with Dr. Bricker on adapting communication strategies to the new Canadian persona (page 19).Those who missed the presentation can catch Dr. Bricker’s Ted X Toronto Talk at: http://www.tedxtoronto.com/talks/darrell-bricker/) Former U.S. Ambassador to Canada David Wilkins (left) and CEO of Ipsos Global Public Affairs Darrell Bricker appeared as part of CAPP’s Speaker Series Luncheons.

B.C. Oil and Natural Gas Fact Book  This fall, CAPP introduced a new addition to its popular series of fact books. “The Facts: British Columbia Natural Gas and Crude Oil.” Like its companion publications, “The Facts on Natural Gas” and “The Facts on Oil Sands”, the latest fact book offers key industry statistics, factoids and easy-to-digest explanations of common oil and gas terms, practices and issues in a pocket-size book that can be read cover-tocover over a lunch hour. “Given the importance of market access for oil through B.C. and the prospect of building a prosperous LNG industry in the province, a publication focused on B.C. oil and gas facts and issues is a useful reference and tool,” says Janet Annesley, Vice President Communication at CAPP. The B.C. Fact Book is part of a broader communication and outreach campaign CAPP has initiated to reach British Columbians and foster a balanced discussion about energy, the economy and the environment. Feedback is that British Columbians want to learn more and see more of the industry as activity picks up. Hardcopies of the B.C. Fact Book may be requested by emailing upstreamdialogue@capp.ca; an electronic version can be downloaded at: http://www.capp.ca/library/publications/crudeOilAndOilSands/ pages/pubInfo.aspx?DocId=234418.

2013 RCE Progress Report Nominate an RCE Award  It’s nomination season for the annual Responsible Canadian Energy Awards. The RCE awards recognize leading practices in social, environment and health and safety performance. Member companies with a project, program or initiative demonstrating a commitment to one or more of these areas should apply. A description of the nomination criteria can be downloaded at http://membernet.capp.ca/ raw.asp?x=1&V_DOC_ID=956&dn=232840&dt=PDF (link accessible by CAPP members only). Award recipients are selected by the RCE Advisory Group who represent the oil and gas industry’s safety, environment, academic, Aboriginal and labour stakeholders.

For more information and to request nomination forms, contact Giles Ody, Environment and Operations Advisor at CAPP, Giles.Ody@capp.ca. Nomination deadline is January 10, 2014. The RCE awards dinner will be held May 21st, 2014. Read more about the RCE Progress Report and 2014 RCE awards in our feature story, “Everyone’s Guide to the RCE” on page 20. capp.ca/context

CAPP released the 2013 Responsible Canadian Energy (RCE) progress report on November 5, 2013. The report features industry-wide 2012 performance data on key environmental and health and safety measures. It’s available at www.capp.ca/rce. According to Scott Meakin, Manager of Corporate Responsibility, CAPP’s RCE report should be on every industry person’s reading list. “Anybody in the oil and gas business should read this report to understand developing trends and get a grasp of industry’s performance. Clear, concise reporting on national data, and in key areas such as oil sands and offshore, helps illuminate what industry’s successes and challenges are, while promoting the awareness and collaboration needed for industry to improve its performance over time,” says Meakin. Scott Meakin, Manager of Corporate Responsibility at CAPP context . volume 1 . issue 3 . December 2013


What’s Up at CAPP?

Markets and Oil Sands Far East Missions In mid-October, several companies and CAPP staff met with key government officials and industry representatives in Taiwan, China and South Korea. The visits are part of the industry’s ongoing strategy to increase market access and diversity by developing trade ties with the growing Asian energy markets. “The purpose of our meetings was to inform government, company and investor representatives in these countries on Canadian opportunities for energy supply and security and to underscore the high quality of our resource base and competitiveness,” remarks Greg Stringham, Vice President Market and Oil Sands for CAPP, “There is strong interest in Canadian oil and natural gas in Asia.” The Taiwanese Research Institute arranged the meetings in Taiwan, and included sessions with the Taiwanese Bureau of Energy and companies from Taiwan’s energy sector. CAPP also met with Taiwan’s state‑owned energy company, the CPC, the Petrochemical Industry of Taiwan and the CTCI Corporation, a leading Taiwanese engineering, procurement and construction firm. According to Stringham, the Taiwan meetings were “high quality and useful,” affording CAPP and member companies the opportunity to provide more information on Canada’s oil and gas sector while responding to Taiwanese industry questions and concerns. Taiwan sees Canada as a potential, though as yet unconnected, resource that fits well with the current review of their future national energy security. While interest in Canadian oil and gas is strong, key issues for the Taiwanese include the timing and pricing of liquefied natural gas (LNG) supplies, and their ability to compete for large oil sands developments. “They were interested in smaller in situ opportunities,” notes Stringham. Taiwan will be sending groups to Canada in early 2014, to explore LNG and oil opportunities respectively. In China, CAPP sponsored the 9th Annual Canada-China Energy and Environment Forum. Joe Oliver, Federal Minister of Natural Resources, Ken Hughes, Alberta Minister of Energy, and Rich Coleman, B.C.’s Deputy Premier and Minister of Natural Gas Development, were also on hand, as was CAPP President Dave Collyer; each delivered well-received addresses to a large audience of Chinese government officials and energy industry representatives. 16

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“Again, interest and engagement were high,” notes Stringham, “Though they voiced concerns about pace of infrastructure for both oil and LNG.” Finally, company and CAPP representatives participated in the 22nd World Energy Congress in Daegu, South Korea, as well as in meetings involving federal and provincial government officials and representatives from the oil and gas industry in Korea. “Participation in these conferences and meetings improves understanding and increases interest among Asian customers and governments in the Canadian upstream oil and gas sector,” says CAPP President, David Collyer.

Notable Quote

“It is estimated that China will account for more than 30% of the world’s primary energy consumption by 2030.” —  Chinese Ambassador to Canada, Zhang Junsai, speaking in Calgary on building closer energy ties with Canada.

CAPP Makes Final Arguments in Support of Line 9b Reversal The National Energy Board (NEB) convened final oral arguments concerning the proposed reversal of Enbridge’s Line 9b pipeline from North Westover, Ontario, to Montreal. The final hearings were held in Montreal from October 8 to 11, and in Toronto from October 16 to 19. CAPP staff, with the help of local French counsel, delivered arguments in favour of the reversal. With Line 9a’s reversal (i.e., from Sarnia to North Westover) already approved and in service, the reversal of Line 9b would allow crude oil from Western Canada and the Bakken region to connect to Sarnia, Ontario, through existing pipelines and flow up through Line 9 to Montreal, Québec.

Nancy Bérard-Brown, Manager Oil Markets and Pipelines at CAPP


What’s Up at CAPP? “We made the argument that the reversal would benefit both producers in Western Canada as well as markets in Eastern Canada,” says Nancy Bérard-Brown, Manager Oil Markets and Pipelines at CAPP. On the supply side, “the project would provide an opportunity for Canadian producers to expand and reach new markets.” CAPP noted the significant growth in supply that has occurred in both Western Canada and in the Bakken and significant price discounts that have resulting from a lack of take away pipeline capacity. On the markets side, the availability of Canadian crude oil to Eastern Canada would enhance the region’s energy security by displacing foreign oil being imported from OPEC countries. Oil from Line 9 would also provide a steady supply of Canadian oil for two refineries in Montreal: Suncor and Valero. This could improve the economic performance of these refineries, enhancing long-term job security and the growth of the downstream industry.

Policy and Environment Progress on Northern Regulatory Reform  “With increased interest occurring in conjunction with jurisdictional changes, it’s been a busy time in the North,” notes Aaron Miller, Manager Northern Canada for CAPP. “We’ve represented the interests of our members on a number of different fronts.” These have included input on regulatory reform of the Mackenzie Valley Resource Management Act, and increasing community and stakeholder engagement.

“We made the case that the Line 9 re-reversal would provide significant economic benefits to Québec and Ontario and Canada and that the reversal can be done in a safe manner,” notes Bérard-Brown. In accordance with legislated timelines, the NEB will issue a decision on the pipeline reversal project by March 19, 2014.

For more information, contact Nancy Bérard-Brown at Nancy.Bérard-Brown@capp.ca.

Did You Know?

It’s Actually a Re-Reversal

Enbridge’s Line 9 was originally built in the 1970s to supply Quebec markets with Canadian crude oil. Its flow was reversed in the 1990s due to the economic conditions at the time. capp.ca/context

On the banks of the Mackenzie River. Interest in development of the Mackenzie Valley in the North is growing.

One key issue has been the National Energy Board’s (NEB) draft Financial Viability and Responsibility Guidelines released in May. The guidelines were created with the intention of ensuring that developers in the North have adequate financial resources to operate safely and mitigate exploration risk. “While we agree with the spirit of the guidelines, we were concerned that the guidelines hadn’t incorporated key feedback from industry, and would represent a deterrent to investment in and development of the North,” says Miller. He notes in particular that the guidelines don’t differentiate between offshore and onshore activities, despite the fact that these activities can have very different risk profiles. Over the summer and fall, CAPP led a response from members and other key stakeholders in the region requesting additional input into the NEB’s guidelines. In November, the NEB responded that it would adjust its timeline for application of the new guidelines to Spring 2014, allowing for consultations with industry on key sections of the guidelines. “It was an important outcome for our members looking to explore in the North,” says Miller.

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What’s Up at CAPP? New Brunswick’s New Royalty Regime A Positive Step

Northern Fact:

There have been 28 discoveries and two producing fields in the Mackenzie Valley. The Norman Wells oil field has produced over 260 million barrels of oil since 1985. Source: Government of Canada

Atlantic Canada Update

The Government of New Brunswick released a new royalty structure for onshore natural gas development in early November. “CAPP has been a constructive participant, providing extensive input and commentary on the new regime,” notes Sheri Somerville, New Brunswick Natural Gas Advisor for CAPP. “Although more clarification on certain details is needed, the new regime is a significant improvement over the original proposal and recognizes that the onshore natural gas industry is still in the very early stages in New Brunswick.” CAPP advocated for a royalty structure that is competitive with that found in British Columbia, recognizing that both regimes would be applied to the development of natural gas from shale and tight gas deposits. New Brunswick’s new royalty structure gives the province a 25 per cent royalty on the economic rent earned by a project. Industry will also pay the greater of a four per cent basic royalty calculated on the wellhead price or a two per cent minimum tax on gross revenue. This is a significant improvement over initial royalty proposals in 2012 which included a 10 per cent basic royalty rate and a 40 per cent net rate.

Enhanced Medical Guidelines for Offshore Workers CAPP has released a new version of its “Atlantic Canada Medical Assessment for Fitness to Work Offshore” guide. This guide outlines industry best practices for evaluating medical fitness, and provides a protocol for physicians to assess fitness to work in an offshore environment. Key improvements to the guide include: • The duration between medical assessments has been standardized to two-year intervals regardless of age (unless a doctor determines more frequent assessments are necessary); • Employees are required to selfdeclare medical conditions during an assessment, and self-declare any changes in medical condition between assessments. “The new guideline improves the validity and reliability of the medical assessment process,” notes Paul Barnes, Manager Atlantic Canada for CAPP. To download a copy, visit www.capp.ca and search on the terms “offshore” and “medical.”

“The new royalty structure should encourage competitive and responsible development of New Brunswick’s natural gas resources,” says Somerville, “It provides the government with strong royalty revenues commensurate with a growing and commercially viable onshore natural gas industry.” Industry needs further clarification as to which costs will be eligible for both net royalty calculations and investment incentives. “CAPP continues to provide input to the government on those details, which should be completed over the coming months,” says Somerville. The new royalty regime is expected to take effect April 1, 2014.

For more information, contact Sheri Somerville, Sheri.Somerville@capp.ca.

Sheri Somerville, New Brunswick Natural Gas Advisor at CAPP

For more information, contact Paul Barnes, Paul.Barnes@capp.ca.


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Ask An Expert

Communicating with a New Canada According to Dr. Bricker, there has been a fundamental shift in the values of Canadians, triggered by the great global

Photo: courtesy Ipsos Public Affairs

migrations into Canada over the past five decades. A key change is the increasing influence of suburbanites who value economic stability and law and order. We chat with Dr. Bricker regarding the implications of this shift for Canada’s oil and gas industry. Q: What does your polling suggest about how the oil and gas industry is doing, and what we need to be doing to win the hearts and minds of Canadians? A: Believe it or not, in spite of all the rhetoric you hear from people on the other side of this issue, Canadians are pretty open minded and reasonably positive about the role of the oil and gas industry. But the way I would describe the relationship: it’s more of a nod than an embrace. Outside of Alberta, people say, “I need to hear what the benefits to me are personally and directly, but I also need to hear what it is you’re going to do about the one big concern I have, which is the environment.”

Q: Do you think that message should be more emotional or more factual? A: It needs to be more personal. The real argument that needs to be won is whether or not people perceive there are benefits that accrue to them and their families as a result of the success of the oil and gas industry. In Alberta the answer to that question is “yes.” In other parts of the country, the perception is “not so much,” especially Quebec. So that’s the real fight, trying to establish that personal connection.

Canadians are pretty open minded about the role of the oil and gas industry. But the way I would describe the relationship: It’s more of a nod than an embrace.

Q: How do you feel about ‘ethical oil’? Do you see those kinds of arguments resonating?

Q: How should the growing influence of immigrant communities affect our industry’s messaging?

A: No, I don’t. I think the two arguments that work really well for the oil industry in Canada are the economic benefits it brings — bringing that into the households of people who live outside of Alberta is your number one goal. After that, I think there’s a desire among Canadians to see Canada more selfsufficient in terms of its energy resources and us using more of our available feedstock from Canada throughout the country. Those are better than getting into geopolitical arguments.

A: It’s about learning how to get into the newer communities that are important politically in the country and learning how to communicate with them. How do you communicate with the Sikh community as opposed to the Hindu or Muslim communities? How do you communicate with people from the Philippines versus people with Indo-Pakistan backgrounds versus people from mainland China? Sure they’re all ethnic and that’s what defines them now, but what are their kids going to be like? It’s a very, very complicated unknown situation.


Darrell Bricker, Ph.D. is Chief Executive Officer of Ipsos Global Public Affairs, a leading social and corporate reputation research firm. Prior to joining Ipsos in 1990, Dr. Bricker was Director of Research in the office of Canada’s Prime Minister. He is the co-author of the recently published bestseller “The Big Shift.”

Q: So there will be a need for more polling and research… A: There’s always a need for that, but it’s not just more polling and research. Maybe it’s new types of consultative mechanisms. Maybe it’s going into extended families and seeing how they consume news. In real estate they’ve had to figure out lucky and unlucky numbers, they’ve had to figure out feng shui, and how to deal with multiple generations of families living in single residences. If they can figure it out you guys can.

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Feature Story


to the Whatever your background, there’s information in the 2013 Responsible Canadian

Energy progress report you need to know by David Coglon


discuss important issues and trends,” he says.

The annual CAPP report card of oil and gas producers’ environmental, social and economic performance is full of important insights that anyone in Canada’s oil and gas industry can appreciate.

The report is a pillar of CAPP’s RCE program, which promotes continuous performance improvement through benchmarking, shared best practices and a collaborative approach to solutions.

Ask Scott Meakin, CAPP’s Manager of Corporate Responsibility — a senior advisor behind the report released on November 5, 2013. Meakin says the report should be on every industry person’s reading list.

With this report, we talk about about what we’re doing well and we don’t hide from our challenges.

“Anybody in the oil and gas business should read this report to understand developing trends and get a gist of industry’s performance. It helps them to understand what industry’s successes and challenges are,” says Meakin.

“RCE is an opportunity for our industry to demonstrate its progress,” notes Dave Collyer, President of CAPP, “It’s also an important way for all of us to be candid about our challenges and work together to create solutions.”

The report measures performance in four areas — people, air, water and land — covering key environmental, safety and social metrics. The analysis in the 2013 progress report is based on 2012 data collected from all of CAPP’s 70+ upstream oil and gas producing member companies with Canadian operations, with specific online sections that focus on Western Canada, Atlantic Offshore, Oil Sands and Hydraulic Fracturing. The report provides an up-to-date update of industry performance on areas including worker safety, air emissions, water usage and land footprint.

According to Meakin, the annual progress report puts trends into an industry-wide, national context, helping readers gain a clearer understanding of areas where improvements are needed. The regional analyses online, meanwhile, offer clarity on specific issues that need to be addressed.

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“Companies can use the RCE report effectively in communications and stakeholder engagement. In addition to talking about their own company’s performance, they can draw on the report to share the broader industry picture and to

“Stakeholders and the public want access to credible information about Canada’s oil and gas industry. The RCE report is a

report card — a check on how we’re doing compared to historical performance,” notes Meakin of the report, which tracks performance over a five-year period going back to 2008. Meakin sees the report as particularly valuable as industry faces increasing public scrutiny on growth projects and environmental and social issues. “There’s a lot of hearsay about our industry, and that’s not always helpful. With this report, we’re providing a more fulsome discussion of performance. We talk about what we’re doing well and we don’t hide from our challenges — we’re open about where we need to do more work.” The report would not be possible without the cooperation of Canada’s upstream oil and gas producers. “On behalf of capp.ca/context


RCE CAPP, I want to thank member companies and their staff who worked diligently to provide us with the data and expert knowledge that went into the report,” says Meakin.

Who Are the RCE Advisory Group? Prior to publication, the RCE progress report is reviewed by the independent RCE Advisory Group (RCEAG), which is made up of senior experts and stakeholders representing safety, environment, Aboriginal, academic, private, finance and investment communities. The RCEAG’s role is to advise and challenge industry to continuously improve its performance. For the RCE progress report, the RCEAG reviews and provides feedback to ensure the report is credible and relevant to a wide stakeholder audience. Past feedback from the group, for example, has prompted CAPP to make changes to the report to enhance readability and increase discussion of industry challenges. In its statement in the 2013 report, the group has recommended the development of more comprehensive metrics. CAPP and members are now exploring ways to improve measurement indicators in areas such as process safety, biodiversity and social performance for future reports. capp.ca/context

Feature Story

How to Get the Report

The RCE Progress Report is available in two formats: The Responsible Canadian Energy 2013 Progress Report Summary is a 36-page report that presents data from a national perspective, highlighting key issues and trends. The report is available in hardcopy (email Janine.Vandenberghe@capp.ca), or as a downloadable digital PDF at www.capp.ca/rce/downloads. At www.capp.ca/rce, you’ll find everything contained in the Progress Report Summary plus:

Regional analyses that breaks out performance into three categories: Oil Sands, Western Canada (non oil sands), and Atlantic Canada Offshore;

The full data set of all metrics collected, downloadable as an Excel file.

Key Findings, RCE Report 2013: IMPROVEMENTS


The frequency of injuries

Overall Greenhouse gas

among workers has


29 per cent over the last five years.

Industry is also seeing improvement with respect to NO x and SO 2 emissions, and oil sands water use intensity.

emissions intensity (oil and gas) has


21 per cent over the past five years.

Another challenge is land: with continued oil and gas industry growth, land disturbance is increasing and reclamation is not keeping pace. context . volume 1 . issue 3 . December 2013


Feature Story


RCE Takeaways

1. RCE: stands for Responsible Canadian Energy. It’s a national and industry‑wide program encompassing upstream oil and gas producers with Canadian operations.

2. The RCE Program: reports on and promotes safety, environmental, social and economic performance.

Water 3. Oil sands mining production requires 3.1 barrels of fresh water to produce a barrel of oil sands crude, compared to 4.4 barrels five years ago.

4. 90 to 95 % of water used in oil sands in situ production is recycled.

air 5. SO2 and NOx emissions (which contribute to smog and acid rain) intensity have fallen 19% and 18% respectively over the past five years.

6. GHG emissions intensity has risen due to a shift to more energy intensive forms of production. Technology and innovation are critical for reducing emissions intensity as production grows.

people 7. The reduction in total recordable injury frequency (TRIF) over the past five years is 29%.

8. Upstream oil and gas payments to municipal, provincial and federal governments in royalties, income taxes and lease sales is $18 billion a year.

land 9. 0.02% Canada’s boreal forests have been disturbed by oil sands mining since development began almost five decades ago. 22

10. The number of active (producing) wells is up 10 per cent over the last five years to 228,000.

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Showcasing Excellence: The RCE Awards Each year the RCE awards program recognizes the industry’s top performers while highlighting leading practices in social, environment and health and safety performance. It’s a program taken seriously inside and outside the business. In 2013, CAPP received a record 33 award nominations (for projects occurring in 2012). As well, 570 guests from industry, government and media paid tribute to both award recipients and nominees at a special recognition dinner in the spring.

Nominate your company for a Responsible Canadian Energy awards

“Responsible Canadian Energy matters to oil and gas companies and our stakeholders. The awards are a celebration for industry — not only in sharing the good work they’re doing but in being recognized by decision-makers, the public, and their peers” says Brenda Jones, CAPP’s Manager of Member Communication and Special Events. In 2013, the awards went to Chevron’s 3-D marine seismic program, Cenovus’ heli‑portable drilling rig, Suncor’s innovative partnership with Alberta Parks, Encana’s responsible products program for hydraulic fracturing and ARC’s gas facility built to rigorous low-emissions standards. “Each year there’s been an improvement in the quality and breadth of the submissions,” says Ken Ogilvie, an environmental policy consultant who chairs the RCE Advisory Group (RCEAG). The RCEAG judges the submissions and selects the award recipients. “Generally, there are a few things we look for,” explains Ogilvie. “One is projects that have measurably delivered benefits to safety, the environment or communities. Beyond that, the committee looks to reward innovation, either in technology or practices.” Ogilvie says participation in the awards program benefits not only members but the whole industry. “Leading companies deserve recognition for what they have done. But the entire industry also needs to show it cares about environment, social,

Ken Ogilvie, Environmental Policy Consultant and RCE Advisory Group Chair

and health and safety issues,” notes Ogilvie, adding, “Last year‘s volume of submissions speaks to the work being done. It would be great to see even more submissions in 2014.” CAPP is accepting 2014 RCE Award nominations until January 10. The nomination form (which includes details on eligibility, award categories and judging criteria) can be found: http://bit.ly/Jz0mdr; link only available to MemberNet users. For more info, contact Giles Ody (Giles.Ody@capp.ca, 403-267-1153) The RCE Awards Dinner will be held May 21st, 2014, at the Westin Calgary. Tickets will go on sale in early spring. View last year’s nominees and check for registration updates at http://www. capp.ca/aboutUs/events.


Feature Story

Communication 2.0: Changing the Conversation

We’ve made progress informing Canadians about the economic benefits and environmental progress of our industry. Now it’s time to get a little bit loud and proud about Canada’s Energy.


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Feature Story

In late October 2013, Canada’s Oil Sands Producers launched a new marketing campaign that included television commercials, print and online ads, as well as a social media blitz. The campaign, which is ongoing, is called Canada’s Energy and is associated with the tagline: “We’re pretty good at this.” The tagline is a telling one, both affirming and modest in a distinctly Canadian way. The advertising itself represents a turning point — a changing of the conversation in the continuing battle to win the hearts and minds of Canadians. While the underlying messaging of environmental performance and economic benefits remains the same, the tone has shifted to a more assertive position that appeals to Canadians’ pride in our resource-based trading economy, as well as core Canadian values like innovation, freedom and hard work. Bearing a similar tone and approach, Suncor recently launched its own affirmative-energy campaign under the tagline See What Yes Can Do (whatyescando.com), while Cenovus began reminding Canadians that there indeed is More 2 The Story (more2thestory.com) — with a campaign headlined by a short video on the story of oil, alongside online resources highlighting the benefits that fossil fuel sources of energy provide in our daily lives. Collectively, these campaigns are a pronouncement of sorts — a flexing of communication muscle in response to continual criticisms by environmental non-governmental organizations (ENGOs) and individuals opposed to fossil fuel development — but a response with a decidedly Canadian flavour. These campaigns are focused not on bashing industry opponents, but rather reminding Canadians there’s a lot about our industry we can be proud of.

What’s Pride Got to Do With It? Jeff Tonken, President and CEO of Calgarybased Birchcliff Energy Ltd. is a strong supporter of the new CAPP campaign. “People need to understand what energy does: the employment it creates, and the 24

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fact that we produce it responsibly, with the greatest, newest technology — developed right here in our own country — and at a level that is much higher than almost all other countries in terms of regulations.” “If they understand all of those things, they should feel proud. Canadians should be proud of what we do,” adds Tonken. According to Leanne Deighton, Manager of External Communications at Cenovus, pride is a better answer than complacency. Their marketing research suggests both a knowledge gap and feelings of complacency over energy. “What we

“It’s important for Canadians to hear from the industry in a way that resonates with them,” notes Van Aalst of the positive messaging approach, “Hopefully through this campaign we can help build reputation and create advocates for the industry among Canadians.”

What Got Us Here “As an industry, we’ve made good progress in getting our message across the past few years,” notes Janet Annesley, Vice President Communication at CAPP, “But it became evident through 2013 that we need to take our communication program to the next level.”

We’ve made progress in getting our message across. But it became evident through 2013 that we need to take our communication program to the next level.” learned is that many Canadians don’t really know a lot about energy. They don’t know where fossil fuels fit in the energy mix and they take for granted the availability of energy here.” At Suncor, General Manager of Corporate Communications Sue Van Aalst points to See What Yes Can Do as the company’s “biggest campaign ever” and an opportunity to introduce Suncor to Canadians while taking on a more public communication role for the industry. Utilizing a similar approach to CAPP’s Canada’s Energy campaign, See What Yes Can Do ties together pride-evoking TV and print ads along with informational online collateral describing the economic and social benefits of oil and gas-based energy.

Among the reasons for the shift in approach is research data that showed two things. First, that overall communication and outreach results have plateaued to some degree, meaning industry needs to reach new audiences. Second, the polling data shows support is relatively strong for the oil and gas industry across Canada, signaling an opportunity for more positive themes, examples and messaging. (See our sidebar “Survey Says”.) The relatively strong support for Canadian oil and gas development bodes well for industry given Canadians’ historic and deep connection to nature. Three years ago, support for the oil sands stood at 36 per cent positive, 28 per cent neutral and 36 per cent negative. The numbers capp.ca/context

Feature Story came after several years of a one-sided conversation, with environmental activists and ENGOs trumpeting their criticisms of fossil fuel-based energy sources, and the oil and gas industry mostly silent. However, as industry began responding with its story of economic benefits and improving environmental performance, support improved, hitting a high of 56 per cent positive, 23 per cent neutral and 21 per cent negative in 2012. “Out of a total possible support base of 65 to 70 per cent, 56 per cent support is strong, especially in light of the stiff wind blowing in our faces each morning from opponents and media who lean to the critical or perhaps left-hand side of the spectrum,” Annesley says. “In context, governments are elected with 30-something per cent of the popular vote, so on a so-called controversial issue, we have done well.” “Over the last ten years, we’ve done numerous things to enhance our environmental performance. And as energy producers, we’ve always provided tremendous value to the economy and the day-to-day quality of life of Canadians. We just needed to start telling our side of the story,” says Annesley. So in late 2010, the Oil Sands Producers defined a list of performance principles, and tasked CAPP with launching a national advertising campaign, focused on the industry’s efforts to be world leaders in mitigating environmental impact. Also, at this time, CAPP created its “Zero Tolerance” policy — meaning that it would respond vigorously to errors in reporting and the spread of misinformation in the media. In 2012, CAPP refined its campaign messaging to also emphasize economic benefits provided by a robust Canadian energy industry. Adhering to the formula that Reputation = Communication + Performance, CAPP has also continued to place emphasis on its Responsible Canadian Energy (RCE) Program. The RCE’s focus on improving industry’s social, safety and environmental performance provides fundamental credibility to industry’s science and fact‑based communication efforts (see our feature on the RCE Program, on page 20). capp.ca/context

Polling data in 2013 suggests positive momentum: one poll performed in October 2013, found three-quarters of Canadians believe domestic refineries should prioritize use of Canadian oil before importing oil from other countries. Seventy per cent agree the oil sands are important to Canada’s economy, and 67 per cent agree the oil sands are a significant source of highquality jobs for Canadians. Perhaps more valuably, increasing numbers of Canadians (77 per cent) agree conversation about oil sands should be based in science and not rhetoric, and 61 per cent say they are proud of Canada’s collective efforts to continue to find better ways to produce the oil sands.

Another factor necessitating a renewed focus is that generalized support does not always equate into the meaningful end goal of industry’s communication efforts: the social licence to operate. Broad national support means little, for example, if fossil-fuel critics manage to turn the communities on a proposed pipeline route sour on the development. This is one of the reasons CAPP has, for example, launched an extensive boots-on-the-ground community outreach campaign targeting key communities in British Columbia, and why it has placed particular emphasis in its air campaign on markets in B.C., Ontario, Quebec, New Brunswick and Alberta.

It’s the moderate middle that you can move to gain their support for understanding and advocating for the industry. Time to Get Bold Of the measurable improvement in the reputation of the oil and gas industry, Annesley says, “This is a good news story, for sure. But this does not mean we as an industry can rest on our laurels. In fact, quite the opposite — now is the time to continue building and maintaining a broad base of support, nationally, regionally and locally. This will take sustained, large efforts focused on performance and communications.” One reason is that some of the support remains, in the parlance of communication-speak, “soft”. “In key market access and political areas like Ontario, the support or inclination to be supportive is there, but it is a nod, not a hug,” Annesley says. “You’re always going to have that range of people who are completely for and completely against. It’s the moderate middle that you can move to gain their support for understanding and advocating for the industry,” says Van Aalst. Annesley echoes the thought, but adds that it is also a goal to strengthen existing support while broadening the overall support base: “We want to turn neutrals into supporters, soft supporters into hard supporters, and hard supporters into advocates.”

So What Exactly is Communication 2.0? The Canada’s Energy tagline, “We’re pretty good at this,” captures a few notions. As mentioned, it has the tone of self-affirming modesty one might expect of a Canadian hockey star who just scored a hat trick, saying in his post-game interview, “Yeah, I guess I worked hard and got a few lucky bounces.” (On that note, CAPP’s campaign includes a series of power ring ads — i.e. they appear on the band of LED lights ringing the interior of most sports arenas — to appear during NHL games in all six Canadian NHL markets.) The statements “Canada’s Energy” and “We’re pretty good at this,” also hearken to the fact that the Canadian oil and gas industry has a history of innovation and pride, exemplified by the current generation of workers. The CAPP and Suncor TV ads bear similar themes, highlighting the spirit of energy, hard work and innovation that underpin industry’s efforts to meet Canada and the world’s energy needs in a responsible manner. The ads prominently feature industry workers — primarily Canadians who, like all Canadians, care about the social well‑being, health and safety, and environment of their communities, but who approach problems with an energetic, can-do attitude.

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Feature Story The CAPP, Suncor, and Cenovus campaigns all feature strong and, in many ways, innovative, digital and online components. CAPP, for example, is running a series of information graphic-based online ads that, in addition to providing compelling facts on things like how many jobs the oil sands industry could create for one’s kids in the future, drive online browsers to take action, such as sharing the information on social media, or signing up for a newsletter. “Our goal is to engage individuals with new kinds of interactive elements,” notes Christina Pilarski, Manager Campaigns at CAPP, “and through engagement encourage previously passive supporters to become advocates.”

One way this is done is through the message itself. Personal economic, quality of life and jobs-related messages with assurances about the environment, for example, appeal to the group of undecideds — who include middle-class, middle-aged females with children. This has helped inform the tone and content of CAPP’s mainstream advertising. “Soft industry supporters tend to respond well to our economic performance and are among those whose support we hope to strengthen and mobilize as advocates of responsible Canadian oil development,” notes Annesley.

Pride is a better answer than complacency. Suncor’s entire strategy, meanwhile, is to drive viewers to their web portal whatyescando.com. Based on research that suggests people interact differently with media than they did even ten years ago, Van Aalst notes that their commercials all end with a call to action to visit the website. There, they can find in-depth information about Suncor and what it is doing to produce energy in a responsible manner. “In the past, you’d get all of your information from a television ad; today when people sit in front of the TV, they typically will also have a laptop or tablet or smartphone on them. People are interactive while they watch TV, and we wanted to leverage that,” says Van Aalst.

Micro-Targeting A strategic component of the new communication approach is microtargeting: the technique of aiming one’s message towards specific groups, through the choice of message, distribution channels and technology. “Now that we’ve built some base industry support, we’re looking to refine our communication strategies,” notes Annesley, “We’re particularly looking to reach out to those undecideds, as a means of broadening our support, as well as reaching out to those for whom their industry support is lukewarm or soft, in the hopes of strengthening their support and even turning them into advocates or champions for the industry. 26

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Suncor, meanwhile, is micro-targeting these key groups using the latest online tools. Recent advances in click-tracking algorithms are enabling online marketers to match online behaviour to certain demographic profiles. “We can buy advertising almost spontaneously based on the profiles of the people we want to reach,” says Van Aalst. One micro-targeted group that is important to industry is also one that is very easy to identify: the employees of oil and gas companies. Both CAPP and Cenovus have identified employees as a key target group to turn into advocates for the industry. “Through our various member communication tools like Context, Context Weekly and activities such as the 2014 CAPP Scotiabank Investment Symposium, CAPP Speaker Series and the RCE Awards, we hope to arm our members’ employees with the information and insight into key issues they need to positively represent our industry,” says Brenda Jones, Manager Member Communication and Special Events at CAPP. Cenovus, meanwhile, is in the process of creating employee toolkits with informational content as well as “I Heart Oil” toques and hand-warmers. The company plans to revamp its social media guidelines to enable employees to engage and share the message of what industry is doing to make a difference as proud, responsible energy producers.

“Our feeling is if employees aren’t proud of what we do, how can we expect Canadians to be proud?” remarks Deighton. Evoking that pride, whether among oil and gas employees or the average Canadian is a challenging goal. Fortunately, the communication strategy CAPP and its members are undertaking consists of more than a few words and images — there’s an underlying truth in the advertising. “We know Canadians care about the key economic and social benefits our industry provides, and how we’re working hard and innovating to meet environmental challenges,” notes Annesley, “We think Canadians will recognize and identify with the spirit and energy we offer, and yes, take some genuine pride in Canada’s Energy.”

Survey Says An online poll of 2,070 Canadians was conducted from October 17 to 22 by Ipsos Reid on behalf of CAPP. The survey found:

70 per cent

of Canadians agree the oil sands are important to Canada’s economy.

61 per cent

say they are proud of Canada’s collective efforts to continue to find better ways to produce the oil sand. Just 19 per cent disagree.

62 per cent

agree the oil sands sector’s success is Canada’s success and contributes to Canada’s success economically and politically.

72 per cent

agree “Crude oil has been transported safely across Canada for decades.”

51 per cent

agree that they are “proud” of Canada’s oil sands industry. capp.ca/context

Feature Story

Yes, I Do Work for the

Oil Industry! An affirming guide on dealing with oil and gas critics and cynics in your daily life


by Scott Simpson

Oil and Gas

A dyed-in-the-wool, Canucks-blue-and-green Vancouverite, Brenda Jones had to deal with some looks of surprise when she announced to friends and family that she was moving to Calgary to take a job in the oil and gas industry. “Most people were very supportive about my decision to work in the oil and gas industry, albeit some questioned why I would want to move to Calgary and leave Vancouver.” notes Jones, who joined CAPP as Manager of Member Communication and Special Events two years ago, “But I feel that I’ve moved to the brighter side of the mountains for a great new job in an industry that has lots of opportunity and provides a meaningful resource to people.” Markus Ermisch, Media Relations Advisor with CAPP, is also proud of his work in the industry, but faced some tough questions when his aunt came to visit from Germany. “She asked me about my job at CAPP and if I sometimes have a bad conscience working for the energy industry,” Ermisch recalled. capp.ca/context

It’s not an easy thing working in an industry that has its share of critics, especially when these criticisms permeate into our personal lives. Here are some suggestions on what to do next time you find yourself being questioned about your career choice or confronted over the industry’s environmental record.

Stick to the Facts Your best defense is straight-up knowledge. While there are valid issues to discuss and debate relating to the environmental impact of oil and gas development, many objections to the industry arise from either misinformation or a simple lack of knowledge. In these cases, a little factual knowledge can go a long way.

For example, some environmental groups nurture an impression that oil sands projects are going to swallow up the northern Alberta landscape. The facts don’t back that up. Through 40-plus years of oil sands development, only 0.02 per cent of Canada’s boreal forest has been disturbed, according to Natural Resources Canada. Mineable oil sands exist under only 0.2 per cent of that forest. More than 80 per cent of future oil sands recovery will be done by underground drilling, rather than open-pit mining. “I have found that most people do not actually have the facts at their fingertips to allow them to debate with me,” notes Don Thompson, Past President of the Oil Sands Developers Group. Thompson has given over 350 public context . volume 1 . issue 3 . December 2013


Feature Story presentations and 700 media interviews about oil sands development across North America. “I try to get [critics] to be specific with respect to their concerns and then answer with a calm, ‘facts are friendly’ approach,” he says.

The Facts On: Natural Gas and The Facts On: Oil Sands — both are full of good information and yet succinct enough to read over a lunch hour. With regards to pipelines, the Canadian Energy Pipeline Association (CEPA) publishes a handy

There are a variety of handy resources that can get you up to speed on basic industry knowledge in short order. Of course, we can’t all become industry experts like Thompson. But arming yourself with some basic industry knowledge is often more than enough to respond to most situations, and turn a one-sided attack into a constructive conversation.

More Friendly Facts

If you’re new to the industry, or need to brush up on the latest statistics, there are a variety of handy resources that can get you up to speed on basic industry knowledge in short order. These include CAPP’s Upstream Dialogue fact books:


“Our industry supplies oil and natural gas because there is a demand,” notes Ermisch. “In my experience, many people forget that they are part of the demand equation.” For example, when grilled by his aunt about working for the oil and gas industry, Ermisch pointed out, “We produce energy because of demand. When you flew here from Germany, you took an airplane that burned fossil fuel, so you are part of the demand equation.”

Ask Your Own Questions

Another good strategy is to ask questions. It can be easy to be critical and negative on a subject, however, a simple question about alternatives or solutions can force someone to think more deeply about their beliefs.

It can be easy to feel defensive and onyour-heels while being told all the things that are wrong about oil and gas. But remember, it’s a two-way conversation. A good thing to point out is that oil and gas is needed, and in many ways, beneficial to the world.

You could point out, for example, that organizations like the International Energy Agency expect world energy needs to increase by 33 percent over the next 20 years, much of it related to developing nations attempting to lift their populations out of poverty. With renewable energy

About Pipelines: Our Energy Connections fact book. (See the sidebar “Get the Facts” for a listing of solid, readable resources and where to get them)

Imagine taking this out of the economy:

What could you live without?

Keeping things in perspective:

Upstream payments to government in the form of royalties, income taxes and lease sales average

Everyday consumer products either transported by or derived from petroleum products:

Oil sands production accounts for

$18 billion per year.

New oil sands development is expected to contribute over

$2.1 trillion to the Canadian economy over the next 25 years.

• tomatoes and lettuce trucked north from California or Mexico in winter • athletic clothing and running shoes • computers, cell phones and televisions

7.8 per cent

of Canada’s GHG emissions and just over 0.14 per cent of global GHG emissions.

• a variety of medical drugs and surgical supplies including limb prosthetics and replacement heart valves • electrical cords and covered wire

The natural gas sector is expected to provide


jobs (indirect, direct and induced) 2035. 2013 contextacross . volumeCanada 1 . issue 3 by . December

• tires • ink, crayons and deodorant capp.ca/context

Feature Story sources still a small and costly portion of the energy mix, you might ask: ‘How do you think we should meet the world’s energy needs?’ Your critic may have a response, but at least now, you’re having a conversation.

Let Cooler Heads Prevail While arming yourself with industry knowledge will help you handle many critics, employees can’t be expected to become industry experts and have an answer for every hard question they might be asked. As well, facts alone may not be sufficient when dealing with someone who is being particularly emotional or hostile. “There are some people at the extreme end of the spectrum that you’re just never going to convince,” notes Geraldine Anderson who deals with all types in her role as Media and Issues Manager for CAPP. In these cases, it’s important to maintain one’s cool, especially if you’re in the position of representing the industry. “It’s really important to take the high road and be respectful,” says Anderson. “The way we see it here, if a question is posed, it’s worth answering because someone feels it’s important enough to ask,” she added. Nadine Pettman, Employee Communications Manager for Suncor, is often struck by the contrast between the complexity of the oil and gas industry, and the emotional simplicity of the messages critics use to attack it. A conservation group could rely on just a single compelling image — a photo of boreal forest, for example. While such attacks have an intentionally sentimental appeal, Pettman prefers to respond by staying positive and solutions oriented, highlighting, for example, industry’s successes — such as Suncor’s successful wetland rehabilitation project at Wapisiw. “We’ve just created the world’s first fen wetland at a reclaimed (mining) site. That has never been done before, and that’s being done at an oil sands mining operation,” notes Pettman. capp.ca/context

Another good approach is to acknowledge a critic’s concerns while directing them to credible sources of information on what the industry is doing to mitigate its environmental impact, such as the Canada’s Oil Sands Innovation Alliance website, cosia.ca. Cenovus, meanwhile, is developing a package of materials to equip staff with information about oil’s role in the energy mix. “These packages will include items to help staff show their pride in what we do, and also help them generate conversations about the oil sands and the value of oil.” says Julia Turner, Group Lead, Communications at Cenovus.

You Are Not Alone Darrell Bricker, CEO of Ipsos Global Public Affairs, points out that “believe it or not, in spite of all the rhetoric you hear from people on the other side of this issue, Canadians are pretty open-minded” about the oil and gas industry.

A few recent national polling figures on the subject of the oil sands should give you peace of mind that you are not alone, but rather are part of the (albeit sometimes too-silent) majority: • 70 per cent of Canadians agree oil sands are important to Canada’s economy • 61 per cent say they are “proud” of Canada’s collective efforts to continue to find better ways to produce the oil sands (versus 19 per cent who disagree) • 72 per cent believe that crude oil has been transported safely across Canada for decades. “Looking at recent polling, it’s really encouraging to see widespread support of our industry amongst Canadians,” notes Jones, who has seen some of her Vancouver friends and colleagues soften their views on the industry after discussion and getting better informed. “In fact, during my last visit to Vancouver in November, some of my friends were asking me about job opportunities in oil and gas and how they could learn more.”

Get the Facts on


Oil and Gas Industry

CAPP Publications: The Facts on Oil Sands The Facts on Natural Gas www.capp.ca/UpstreamDialogue The Facts on British Columbia Natural Gas and Crude Oil www.capp.ca/library/publications/ newFeatured Order free hardcopies of CAPP publications by emailing Janine Vandenberghe, Janine.Vandenberghe@capp.ca

The following are a set of resources that will get you quickly up to speed on key industry facts and figures:

CEPA Appstore.capp.ca/oilsands Pipeline Fact Book www.cepa.com/library/ publications

COSIA Visit Canada’s Oil Sands Innovation Alliance website, www.cosia.ca, to learn about some key initiatives and case studies of oil sands companies working to reduce their environmental impact.

Apps: available on iOS, Blackberry and Android. Search “CAPP” or “oil sands” in the app stores

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leadership Profile

Rich Kruger

Taking the mystery out of Imperial Oil’s new boss. LEADERSHIP AND INDUSTRY ISSUES CM: What attracted you to the oil and gas industry? RK: I grew up in the Midwest U.S., about as far from the oil and gas industry as you could be. Later, I studied to be a mechanical engineer, and I thought I was going to build farm tractors — you see, I come from a long line of farmers. But when I first was exposed to the oil and gas industry and saw its global scale, its obvious relevance and importance in providing energy to the world, as well as the magnitude of cost, investments and technologies — well, as a mechanical engineer, I found it fascinating. CM: What do you think is the biggest challenge that faces your organization? 30

context . volume 1 . issue 3 . December 2013

RK: Right now, we’re going through a unique period where we’re on a very, very rapid growth profile. Dependent on how you want to look at it, we’re nearly doubling the size of the company in about a ten-year period. The vast majority of that is upstream investment. So being a part of the company during this period, and fulfilling my role to ensure that we do all this well, well I think that is the exciting and challenging part of it. CM: What does leadership mean to you? RK: I think leadership is a tremendous responsibility. It is less about an organization working for you and more you working for the organization. In my role as a leader, there are certain things

Rich Kruger is Chairman, President and CEO of Imperial Oil Limited, a role he assumed on March 1, 2013. Rich started his career with Exxon in Houston, Texas, in 1981. He has held key leadership roles within ExxonMobil, worldwide, including working in Africa and Asia.He was elected Vice President of Exxon Mobil Corporation in 2008. A native of Minneapolis, Minnesota, Kruger holds a mechanical engineering degree from the University of Minnesota and a master’s degree in business administration from the University of Houston. Kruger is the proud father of three sons he hopes will join him working in the oil and gas industry.


leadership Profile

Quick Hits that the organization relies on me to do: to have a clear strategy, a clear vision, to ensure within the organization that we track our performance, we make good decisions, and that we focus our efforts on those things that are the most valueadded. I very much believe leadership is not a spectator sport: you have to roll up your sleeves and get involved. Also, I look at it as a fundamental responsibility of leadership to make it easier for your organization to do what’s most important. And that comes from the top — from what you ask people to do and how you ask them to do it. I spend a lot of time looking at why do we do things a certain way, and ask, “Is there a better, simpler way we could do it?” CM: You’re relatively new as CEO at Imperial, and leadership change can be unsettling for employees. How have you addressed this? RK: I’m a strong believer in communication within organizations. Having been with ExxonMobil, some folks in the organization knew me, but I was brand new to the vast majority. So some of the first things we did is a number of employee forums where I went around to our major facilities, our refineries, our big production operations here in Alberta and I spent time talking to people. I didn’t have slides or Powerpoints; I just talked to people. I wanted to take the mystery out of who the new guy was, I wanted to ensure they understood how I see the business, and how I’ll approach it, and then I wanted to talk about the priorities and opportunities that I think Imperial Oil has. CM: What do you think is the greatest opportunity in the oil and gas industry that not enough people are aware of? RK: I talk to a lot of young employees nowadays coming into the industry and when you look at the age demographics and the number of people retiring in the years ahead, I say to young individuals capp.ca/context

in our company, “What a wonderful opportunity for you! You’re coming into an industry that the world cannot live without, and you will have infinite opportunities ahead of you.” This is a fantastic industry to be in. You’ve got a strong, growing demand for your products, you have some of the best technology to work with, and you’re really addressing some of society’s toughest challenges in terms of how do you provide safe, affordable, reliable energy, but do it in a way that meets the social needs and considerations of not only the current generation but future generations. So I think if you want to be at the core of how the world goes about in dealing with some of its challenges, I think the oil and gas industry is the place to be.

Favourite Restaurant: Saltlik Top Travel tip: “Travel lightly. I pack lightly and I carry on. To get my carry‑on bag out of my hand, you’d have to fight me tooth and nail.” Recent book you’ve read you’d recommend to others: Greatness Guide by Robin Sharma.

RK: One of two things, no question in my mind. I’d be a baseball coach or I’d be a college professor, and I think in this life of mine there may be time to be both of them before I’m all said and done. CM: Is there an interest or accomplishment that might surprise people to know about you?

CM: What industry accomplishment are you proudest of?

I very much believe leadership is not a spectator sport: you have to roll up your sleeves and get involved. RK: I don’t know if there’s any single item I would flag, but I remember the very early days in the early 80’s when industry was just starting to dabble in things like horizontal drilling. I was a drilling engineer for arguably the first horizontal well that Exxon drilled in 1984. It was drilled several hundred feet horizontally — and now you look at what the industry is able to do today with fundamentally the same technology.


RK: Being a sports coach. I’ve coached baseball for 14 years in a row despite having what I think could probably arguably be considered pretty demanding jobs within Exxon Mobil all over the world. I’ve also coached soccer and basketball. I like spending time with kids and helping them develop their skills, and achieve the satisfaction that goes with accomplishing something. [Now that I’m in Calgary], I’m trying to figure out, maybe there’s a team out there that might need a coach.

CM: What personally inspires you? RK: Greatness. I admire and am inspired by greatness, whether by a sports team, a world-class athlete, a corporate leader or the leader of a country. CM: If you weren’t in oil and gas what do you imagine you’d be doing right now?

Imperial Oil is an

integrated energy company first formed in 1880 that explores for, produces, refines and markets energy products.

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O&G 101

Oil and Gas 101: Not Your Dad’s Oil Tanker Oil tankers are not directly associated with the upstream oil and gas industry, but they have become a relevant hot topic in light of market access needs and issues related to the safe transportation of oil and gas products to international destinations. It’s worth noting that oil tankers have come a long way since the 1989 Exxon Valdez oil spill; there have been significant technology and standards improvements that have allowed a near doubling of the world’s tanker fleet over the past decade, at the same time as the frequency and volume of oil spills have fallen dramatically.

Newfoundland and Labrador’s offshore operators use experienced, credible companies who specialize in crude transport and who adhere to strict environment and safety practices defined by the Canada Shipping Act and the International Maritime Organization (IMO).

* Source: IHS CERA 2013


When appropriate, Canada’s upstream producers exercise due diligence in selecting contractors involved in transporting oil to markets. For example,

Canada is one of 170 maritime nations belonging to the IMO, a specialized agency of the United Nations that has a mandate to uphold the highest standards in maritime


safety, efficiency of navigation and prevention and control of marine pollution. As an example, the IMO has adopted the requirement that all oil being shipped worldwide exclusively use double-hulled tankers by 2015. Canada builds on the IMO’s regulations, with legislation that can be even more rigorous. For example, as of 2010, Canada does not allow the use of single-hulled large crude oil tankers in Canadian waters. Individual ports may adopt additional measures to enhance safety within their jurisdiction. In view of the potential for increased tanker traffic on the West Coast, Transport Canada is currently conducting a review with the aim of proposing improvements that would ensure a world‑class tanker safety system to handle the traffic increase.

Marine pilots with experience in local waters ensure that tankers are guided safely through harbours and waterways in Canada.

Courtesy Chamber of Shipping B.C.

While each ship has its own captain and crew, Transport Canada requires that tanker operators take on a marine pilot with local knowledge before entering a harbour or busy waterway. These pilots take temporary control of the ship, with a strict mandate to ensure safe navigation through local waters.

The incidence-free rate for piloted vessels is


Source: Canadian Marine Pilots Association

Pilots are provided via four Pilotage Authorities in Canada: each is a Crown corporation responsible for providing safe pilotage at respective regional ports across Canada: Atlantic Pilotage Authority, Great Lakes Pilotage Authority, Pacific Pilotage Authority and Laurentian Pilotage Authority.


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While in waters off Canada’s West Coast, as an example, the movements of large oil tankers are assisted in maneuvering by escort tug boats, as well as piloted by senior Canadian marine pilots. These pilots have the benefit of being intimately familiar with local waters including potential hazards. Every senior pilot:

• Has six years of experience piloting vessels, and has passed examinations demonstrating both seamanship and extensive knowledge of local waters; • Is a Canadian citizen; • Has a Canadian licence to operate awarded by the Pacific Pilotage Authority. capp.ca/context

O&G 101

Anatomy of an

Oil Tanker

Hi-Tech Navigation The evolution of GPS and sophisticated ocean-floor mapping technologies have greatly improved the precision and accuracy of vessel navigation, particularly when maneuvering in coastal waters.

Illustration courtesy Chamber of Shipping B.C.

Double Hulled Since the early 1990s, large crude oil tankers are built double-hulled. A double hull means that there are two complete layers of watertight walling along the bottom and sides of the vessel. According to the International Maritime Organization, double-hulled tankers would have prevented 85 per cent of oil spills that have occurred in the past.

By the numbers The number of tanker visits to Canada’s eastern region each year.

3,500 +750

additional WEST COAST tanker visits should both Northern Gateway and Trans Mountain expansion pipeline proposals be approved.


Automated Cargo Handling and Monitoring Systems Sub-divided Cargo Tanks Dividing cargo tanks into a series of compartments limits the volume of oil that could escape in the unlikely event of a breach of both inner and outer hulls.

These computerized systems have fail-safe redundancies and help reduce the frequency of accidents or human error.

Vessel Histories Tankers that are chartered to move oil are subjected to extensive testing prior to being put into service. Information on a vessel’s specifications and history — including any incidents or identified deficiencies, and the corrective actions taken — are entered into internationally subscribed databases.

Find Out More Chamber of Shipping of BC:

The number of tanker visits to Canada’s West Coast each year.


The proportion of all Canadian cargo that is oil.


The percentage of incidents involving large tankers where no oil was spilled.


The decrease in average volume of an oil spill this decade compared to the previous decade.

80 million tonnes

The yearly amount of oil that is shipped safely off Canada’s east and west coasts.

www.cosbc.ca Transport Canada Tanker Safety and Spill Prevention: http://www.tc.gc.ca/eng/marinesafety/menu-4100.htm capp.ca/context

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Oil Sands Rejuvenate B.C. Glove Factory

Watson Gloves president, Martin Moore, shows off the work gloves specially built for Canada’s energy industry.

The growth engine that is Canada’s oil sands has a long reach, providing indirect economic benefits to businesses all across Canada. A prime example is Burnaby, B.C.-based Watson Gloves.

Photo: Richard Lam

A veritable B.C. institution, Watson Gloves has existed since 1918, initially building its business making work gloves for saw mills in the False Creek area of Vancouver. The company was purchased by the grandfather of current president Martin Moore in the late 1930s, and over the years expanded, largely focusing on British Columbia’s forestry sector while also selling gloves for industrial, home, and recreational applications. However, by the early 2000s, one of Canada’s last remaining glove manufacturers was in trouble.

It’s basically saved our factory. This particular glove really helped us get going and probably makes up about 75% of our factory’s domestic made product. “Four years ago we were going to shut it down,” says Watson President, Martin Moore. “There was no demand for our product. However, we developed some specialty gloves specifically for the energy sector which had superior protection and superior quality to imported products.” One glove you’ll see on many Canadian work sites is Watson’s Storm Trooper, specially built to withstand the rigorous operating conditions of oil sands sites in the Canadian North. “It’s basically saved our factory,” Moore says. “This particular glove really helped us get going and probably makes up about 75 per cent of our factory’s domestic made product.” What makes the Storm Trooper special is a design that features a waterproof


context . volume 1 . issue 3 . December 2013

cow-hide palm, deerskin leather back, optional Thinsulate C100 lining and wool gauntlet cuffs, and flame-resistant heavyduty rubber impact protection pads on the knuckles, fingers, and thumbs. The product took off after being endorsed by Imperial Oil’s safety team, which also took part in the design and continuous improvement of the product over the last few years. “A pair of gloves that’s warmer, safer and more comfortable can make a big difference in doing the job safely, and right,” says Imperial Oil safety, health and environment manager Bob Kerr. “That’s what the men and women who keep our facilities running told us, and that’s what we told the people at Watson Gloves. We wanted a higher level of safety and comfort that would make a real difference to the people we depend on.”

“Companies appreciate this product because of the high quality of the gloves,” adds Keith Neill, Product Manager at Century Vallen, which supplies the Storm Trooper to various clients. “They’re Canadian-made, durable, and have back‑hand protection. The winter version is quite warm as well.” The Canadian-made aspect has certainly been a selling point and Moore recognizes that the work being done in Northern Alberta and Saskatchewan is benefiting companies like his in many provinces. He’s pleased that so many other oil and gas companies are willing to invest in a Canadian product. “There have been a lot of people copying them and making them offshore, but our sales are still very strong,” Moore says. “It’s very unique in that it’s domestically made in Canada, and I think that has some bearing on its success.” Thanks to a flourishing business supplying gloves to Canada’s energy sector, Watson Gloves employs 185 people, and has offices in Burnaby, Calgary and Mississauga. — ECB capp.ca/context


Did You Know?

Members in Saskatchewan

Oil sands companies contributed

more than

Help Support

Photo: Brad Herald

Hope’s Home Oil and gas producers recognize the importance of giving back to the communities in which they operate. That spirit of giving was evident this September at a special event in Saskatchewan hosted by CAPP and a number of companies who operate in the province. Company and CAPP representatives along with government officials met with representatives of Hope’s Home, a Regina-based organization that provides childcare services to children with complex medical needs. They gathered on September 22, 2013, for a lunchtime reception, before going to Mosaic Stadium to enjoy a Roughriders game in a hospitality box generously provided by Crescent Point Energy. At the reception, Hope’s Home was presented with a cheque for $20,000 from CAPP members, with specific donations from Crescent Point Energy, Husky Energy, Cenovus Energy, Canadian Natural Resources Limited, and Southern Pacific Resource. “We were looking for an opportunity to give back to the communities in which we operate. I think it shows that we’re being good corporate citizens in the province,” says Siân Pascoe, CAPP’s Policy Analyst for Saskatchewan Operations. This is the second consecutive year that CAPP and members have held an event in support of Hope’s Home. Hope’s Home Executive Director and Founder Jacqueline Tisher says that while her organization does receive government funding, it relies on corporate fundraising for essential capital projects that help medically fragile children and their families. capp.ca/context

“One of the things that we talked about at the CAPP event is that we’re building a new centre in Regina for 90 children,” Tisher says. “We looked at that donation as the initial seed dollars for that capital campaign and we’re planning to break ground this summer.”

12 million to Aboriginal communities in the Wood Buffalo and Lac La Biche regions for schools and youth programs, celebrations, cultural events, literacy projects and other community programs. Source: OSDG 2012.

“Many of our employees live in the communities where we operate, so it’s not an abstract concept, it really does mean something to us,” Addington says. “We believe that our business activities contribute to the quality of life and to the economy in the areas where we

Many of our employees live in the communities where we operate, so it’s not an abstract concept, it really does mean something to us. Pascoe says that the event was particularly rewarding for CAPP members in attendance because they got to meet Tisher’s team and really understand where their donation dollars were going. Zoe Addington, Public Affairs Advisor at Canadian Natural Resources Limited, said that she appreciated the opportunity.

operate. But social responsibility is still a fundamental aspect of our commitment to responsible operations.” Pascoe is thrilled with the members’ responses and hopes to make this Saskatchewan event an annual occurrence. — ECB

Hope’s Home Executive Director Jacqueline Tisher and Siân Pascoe, Policy Analyst Saskatchewan Operations at CAPP

For more information on Hope’s Home, visit HopesHome.org. context . volume 1 . issue 3 . December 2013


Events Listing January 22 – 23, 2014

Premier’s B.C. Natural Resource Forum First Nations, business and government leaders share perspectives, success stories and innovations, with a focus on emerging opportunities. Prince George Civic Center, Prince George, B.C. http://www. bcnaturalresourcesforum.com/

January 22 – 23, 2014

In Situ Oil Sands Water Treatment & Re-Use Optimization 2014 Bringing together water treatment, facility and process experts in the oil sands operating industry to share their best practices for optimizing water usage and reducing the percentage of water disposed. Calgary, Alberta http://www.canadian-businessconferences.com/c171/in-situ-oilsands-water-treatment-and-re-useoptimization-2014

February 6 – 7, 2014

Petrocultures 2014: Oil, Energy and Canada’s Future Leading figures from across Canada will discuss and debate the role of oil and energy in shaping social, cultural and political life in Canada. Organized in partnership with the University of Alberta. McGill University Faculty Club, Montreal, Quebec http://www.mcgill.ca/channels/ event/misc-2014-annualconference-petrocultures-2014-oilenergy-and-canadas-future-230302

February 25 – 26, 2014

Crude by Rail 2014: New Destinations, Increasing Capacity Crude volumes and market destinations: understanding how rail operators seek to meet the demands of refiners and producers through the expansion of railroads, rail cars and terminal capacity. Glendale, Los Angeles http://www.crude-by-raildestinations-2014.com/

March 19 – 21, 2014

China International Petroleum & Petrochemical Technology and Equipment Exhibition The largest oil and gas exhibition in the world featuring 12 national pavilions, including the U.S., U.K., France, Canada, Denmark, Italy and Russia. Beijing, China http://www.cippe.com.cn/2014/en/

March 25 – 26, 2014

Artificial Lift Techniques & Production Optimization Congress dedicated to production professionals in Canada’s shale and tight oil plays, with optimization strategies for the full lifecycle of the well to manage steep declines, reduce downtime and maximize long-term recovery. Calgary, Alberta http://www.canadian-businessconferences.com/c173/artificiallift-techniques-and-productionoptimization-canada-2014/

Answer to

CyberSafety 101: What’s Wrong with this Email?

Here’s what’s wrong with the email on page 37: The email tries to trick you into thinking it’s from a vice president known to you (the hypothetical SeniorManagerXYZ at OilandGasCo) by putting in this person’s real email account in the “cc:” line. Recognizing this email as valid, you might respond, thinking that SeniorManagerXYZ is indeed out of the office and emailing from his personal account. However, unless you know for certain that the email account this is coming from (the hypothetical “SeniorManagerXYZ@gmail.ca”) is also legitimate you should be on guard. This could be a phishing attempt. Any time you’re asked to reveal confidential or private information by email, you should be wary. Double check that the email account the request is coming from is legitimate. 36

context . volume 1 . issue 3 . December 2013

2014 CAPP Scotiabank Investment Symposium The premier investment event for Canada’s upstream oil and gas industry, connecting more than 200 investors and analysts with representatives from more than 65 oil and gas companies. Sheraton Centre Toronto, Toronto, Ontario http://www.capp.ca/aboutUs/events/ CAPPOilGasSymposium/Pages/ default.aspx

May 11 – 14, 2014

Canadian Institute for Mining Convention Hosted by Canadian Institute of Mining, Metallurgy and Petroleum. Vancouver Convention Centre, Vancouver, British Columbia http://vancouver2014.cim.org

May 21, 2014

Responsible Canadian Energy Awards Dinner Celebrate the accomplishments of the Canadian upstream oil and gas industry, highlighting projects and programs to improve environmental, social and health and safety performance. Westin Hotel, Calgary, Alberta http://www.capp.ca/aboutUs/events/ RCEDinner

June 10 – 12, 2014

SPE Heavy Oil Conference Over 1,200 North American and International E&P professionals who spearhead the industry will gather to discuss the technological innovation driving and shaping the future of heavy oil in Canada. BMO Centre at Stampede Park, Calgary, Alberta http://www.spe.org/events/hocc/2014/

Cyber safety is an important issue in the oil and gas workplace. The ever-growing threat of social engineering, corporate espionage and disruption of corporate information systems is a constant challenge. A common tactic you should be on guard against is the phishing email. Phishing is the fraudulent practice of sending emails pretending to be from reputable companies or individuals in order to trick you into revealing confidential information such as passwords and contact data.

April 3 – 4, 2014

June 25 – 26, 2014 Many companies have a corporate email policy defined that outlines acceptable use of its email system, such as asking that employees refrain from using their personal email account for company business. If you haven’t reviewed your company’s corporate email policy, you might want to take a look. Other giveaways that an email might be an example of phishing: - Poor spelling and grammar — cybercriminals are not known for their language skills. - Links in the email: if you see a link in a suspicious email, don’t click on it. - Threats like “Your account will be suspended if you do not respond.” - Pretending to be popular websites or companies like Apple, Facebook and Microsoft. To see more examples of phishing, visit http://www.utdallas.edu/infosecurity/ Phishing.html

Re-Fresh: The Confluence of Ideas and Opportunities on Water Reuse Share knowledge and explore opportunities for water re-use. Hotel Arts, Calgary, Alberta http://www.awcreusesymposium.ca/ Home/tabid/169/Default.aspx

September 10 – 11, 2014

IPAD DRC Oil & Gas Forum The forum will provide the platform for the private oil and gas sector to engage, and provide a unified message of their needs and requirements to government. Hosted by Infrastructure Partnerships for African Development. Kinshasa, DR Congo https://www.ipad-oilgas.com/

September 14 – 17, 2014

Canadian Society of Safety Engineering (CSSE) Professional Development Conference The conference for Canada’s safety, health and environmental practitioners. Now accepting proposals for presentations. Calgary, Alberta http://www.csse.org/annual_ conference capp.ca/context

Online / Safety

What’s TruView =

Online at CAPP


On November 28, from 4 pm to 8 pm MST, CAPP ran its first Google TruView Campaign on YouTube. In just four hours, CAPP received almost two million impressions of two new infographic videos. A total of 311,979 users viewed the entire video and more than 13,000 people followed the videos to CAPP’s Canada’s Energy landing pages to learn more information. View the videos for yourself: www.youtube.com/CAPPVideos

@OilSandsToday Over the next 25 years Canada’s oil sands could create over 800k jobs across Canada. http://canadasenergy.capp.ca/kids/pic. twitter.com/UGXHJOKg2A

276 Retweets 98 times.

Received and was favourited

Tweet with the Most Reach: Visit the discussion forum twitter.com/OilSandsToday

Essential oil sands facts at your fingertips: The Facts on Oil Sands mobile app is available for free download on your Android, Blackberry or iOS device! http://appstore.capp.ca/oilsands

CyberSafety 101: What’s Wrong With This Email?

Hypothetically, let’s say SeniorManagerXYZ@OilandGasCo.ca is known to you. What would be wrong with replying to this email? [answers on page 36]

Looking to connect with fellow CAPP members and find out the latest goings on in industry? Join the CAPP LinkedIn Group for updates and discussion.

Main Links: www.capp.ca www.capp.ca/context www.capp.ca/rce www.oilsandstoday.ca http://twitter.com/OilGasCanada http://www.facebook.com/OilGasCanada capp.ca/context

context . volume 1 . issue 3 . December 2013


In Closing

In Closing

By Bob Bleaney

When I joined CAPP just over two years ago, I was asked to head up a new office in Ottawa, with the mandate of representing Canada’s upstream oil and gas industry in the nation’s capital. CAPP hasn’t had an office in Ottawa since it was formed in 1992. So why now? Certainly, the increasing external environmental and social licence spotlight on our industry, and the large number of federal government policy issues relating to our industry, underpins the need for CAPP and the upstream industry to have a greater presence in the capital — one that moves beyond transient “fly‑in / fly‑out” interactions towards building more substantive working relationships. My role in Ottawa, therefore, is to inform, educate and advocate on behalf of the members of our industry, working with other CAPP staff and member representatives, such as those on our Government Relations Forum, to facilitate their advocacy initiatives — and also to be industry’s eyes and ears on the ground. I’m

there to help ensure that Canada’s oil and natural gas producers have their rightful say in policy that affects them, and to try and prevent the problems that arise when decisions are made without a sufficient understanding of how our industry works and what keeps us competitive in today’s globalized marketplace. As well, I help represent CAPP and our members to the governments, business communities and the public in Ontario and Quebec, where our industry has an increasing stake in light of industry growth and market access issues. Given my advocacy role, I am a registered lobbyist with the federal government, and the provincial governments of Ontario and

I’m there to help ensure that Canada’s oil and natural gas producers have their rightful say in policy that affects them. There are approximately

5,000 registered federal lobbyists in Canada.


context . volume 1 . issue 3 . December 2013

Quebec. As with all CAPP‑government interactions, transparency and providing credible and balanced information are key. One of the most rewarding aspects of the job is educating and broadening awareness of the oil and gas business among our nation’s decision makers. Most folks I interact with have had limited exposure to our industry, and so you’ll often see me trucking along and sharing a variety of CAPP publications, including our fact books, RCE progress report, Hydraulic Fracturing Principles and Practices and so on.

It’s also rewarding to work closely with and help facilitate the Calgary team’s federal engagement on such key areas as regulatory reform. Together, we’ve been able to provide input that has led to balanced and effective policy decisions. One example is the recent amendments to Regulations Designating Physical Activities, which clarified what projects fall under federal review. As CAPP had advocated, the amendments reduced duplication between federal and provincial reviews (for example, in situ oil sands projects are addressed through provincial review process), while maintaining the comprehensive regulatory scrutiny Canadian’s expect. Ultimately, this is helpful to our industry in maintaining competitiveness within a context that supports strong environmental performance, while providing the kind of clarity and regulatory stability that fosters continued investment in Canadian oil and gas development projects. Bob Bleaney, Vice President External Relations, Ottawa, Canadian Association of Petroleum Producers capp.ca/context

The Facts on Oil Sands There’s an app for that. Available for free download to Apple, Android and BlackBerry devices.

Sharpen your oil sands knowledge and dazzle with details this new year. Download the Facts on Oil Sands.

Search “oil sands” or “CAPP” in the app stores.

The Facts on Oil Sands is now available in both official languages. Download Les faits sur les sables bitumineux by searching “sables bitumineux” in the Android, Apple or Blackberry app stores or visit: http://appstore.capp.ca/lessablesbitumineux

Profile for The Canadian Association of Petroleum Producers

December 30, 2013  

CAPP's Member Magazine

December 30, 2013  

CAPP's Member Magazine

Profile for capp

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