May/June Reservoir 2023

MAY/JUN 2023 • ISSUE 3 • VOL 50

THE MAGAZINE OF CANADIAN ENERGY GEOSCIENTISTS

cspg.org

In This Issue

MAY/JUNE 2023

4 6

Letter from the Editor

26 2022 R.J.W. Douglas Medal

Go Take a Hike: Devil’s Garden (Double O Arch), Arches National Park, Utah

27 2022 Tracks Awards

10 Petrophysics in the Green Economy – Part 6: LITHIUM: from oilfield and near-surface brines 12 In Memorium: The Legacy of Philip Benham (1965-2023) 14 The Geology of the Galápagos and Its Impact on the Wildlife 24 2022 Stanley Slipper Award

CONFERENCES PAGE 22

CORE CONFERENCE 2023

28 2022 H.M. Hunter Awards 30 2022 Graduate Student Thesis Award Best Ph.D. Thesis 35 2022 Graduate Student Thesis Award Ph.D. Thesis Honourable Mention 38 2022 Graduate Student Thesis Award Best M.Sc. Thesis 44 The Blue View: Industry Trends Through Woodmac’s Lens

EVENTS PAGE 41

GUSSOW 2023

PAGES 42

2023 UPCOMING INFORMATION

CALEDONIAN OROGENY, GREENLAND. Multicoloured dolomitic strata on the south shore of Segelsällskapet Fjord, northeastern Greenland, are part of the upper unit of the Neoproterozoic Eleonore Bay Supergroup. They were deposited on a shallow water shelf approximately 700-620 Ma ago. Folding occurred during the Caledonian Orogeny 425 to 395 Ma ago during closure of the Iapetus Ocean and resulted in the development of a pronounced axialplanar cleavage. The towering skyline at 1900 m is formed by the Mount Berzelius massif, also composed of Eleonore Bay strata. Photo by: Thomas Frisch.

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FROM THE EDITOR SARAH SCHULTZ, TECHNICAL EDITOR FOR THE RESERVOIR

WELCOME TO THE MAY/JUNE ISSUE OF THE CEGA RESERVOIR! This past weekend a stray golf ball from the golf course I live by hit my window, which is truly the first sign that spring is here! Until the snow finally melts off the spectacular outcrop exposures in the Rocky Mountains, please enjoy the geology related content in the Reservoir.

We present the winners of the CEGA Best Thesis awards: •

Best PhD Thesis: Mastaneh Liseroudi for her thesis entitled “Regional Diagenesis and Fluid Flow Study of the Early Triassic Montney Formation as Related to H2S Generation”

The CEGA offers its sincerest condolences to the family and friends of Philip Benham. Philip was a long-time member of the society and the original author of the popular “Go Take a Hike” series. Please read the in memorium segment dedicated to Philip to learn more about his legacy and contributions to geology.

•

Honourable Mention (PhD): Henry Galvis Portilla for his thesis entitled “Sedimentology, Stratigraphy and Reservoir Characterization of the Late Devonian Duvernay Formation of the East Shale Basin: An Integrated Outcrop and Subsurface Study”

•

Best MSc Thesis: Kristian Girotto for his thesis entitled “Tectono-stratigraphic Model for the Early Evolution of the Late Cretaceous Nanaimo Group: Georgia Basin, British Columbia, Canada”

In this issue we have the continuation of some of our regular articles: •

E.R. Crain’s part 6 of the Petrophysics in the Green Economy series

•

Go Take a Hike: Devil’s Garden in Arches National Park, Utah

•

The Blue View: Industry Trends Through Woodmac’s Lens

We present the following technical articles: •

Dr. John Noad: The Geology of the Galápagos and Its Impact on the Wildlife

Congratulations to the following award winners: •

Stanley Slipper Award: Dr. Brad Hayes

•

R.J.W. Douglas Medal: Dr. Michael Cecile

•

Track Awards: Hilary Corlett and David Hill

•

CSPG Hunter Awards: Don Keith and David Garner

Please refer to the CEGA website for up-to-date information on upcoming division talks, conferences, and technical webinars. Registration for the 2023 Core Conference and Geoconvention is still open. The Core Conference will take place on May 11th and 12th, while Geoconvention runs from May 15th to 17th. We hope to see many of you there taking in the technical presentations and networking events. We look forward to continuing to receive your manuscripts for our remaining 2023 Reservoir Editions!

Sarah Schultz

PUBLICATIONS INFORMATION The RESERVOIR is published 6 times per year by the Canadian Energy Geoscience Association. The purpose of the RESERVOIR is to publicize the Society’s many activities and to promote the geosciences. We look for both technical and non-technical material to publish. The contents of this publication may not be reproduced either in part or in full without the consent of the publisher. No official endorsement or sponsorship by the CEGA is implied

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for any advertisement, insert, or article that appears in the RESERVOIR unless otherwise noted. All submitted materials are reviewed by the editor. We reserve the right to edit all submissions, including letters to the Editor. Submissions must include your name, address, and membership number (if applicable). The material contained in this publication is intended for informational use only. While reasonable care has been taken, authors and the CEGA make no guarantees that any of the equations, schematics, or

devices discussed will perform as expected or that they will give the desired results. Some information contained herein may be inaccurate or may vary from standard measurements. The CEGA expressly disclaims any and all liability for the acts, omissions, or conduct of any third-party user of information contained in this publication. Under no circumstances shall the CEGA and its officers, directors, employees, and agents be liable for any injury, loss, damage, or expense arising in any manner whatsoever from the acts, omissions, or conduct of any third-party user.

BOARD OF DIRECTORS 2023

PRESIDENT

PAST PRESIDENT

PRESIDENT ELECT

FINANCE DIRECTOR

Simon Haynes

Kelty Latos

Andrew Vogan

Kathy Diaz

Haynes Geological Consulting simon.haynes@cspg.org LinkedIn

ConocoPhillips Canada Ltd. pastpresident@cspg.org LinkedIn

ConocoPhillips Canada Ltd. presidentelect@cspg.org LinkedIn

Krux Analytics Inc. directorfinance@cspg.org Linkedin

FINANCE DIRECTOR ELECT

DIRECTOR

DIRECTOR

DIRECTOR

Scott Norlin

Nicholas Ayre

Mark Caplan

Ross Kukulski

Wood Mackenzie directorfinanceelect@cspg.org LinkedIn

Strathcona Resources Ltd. conferences@cspg.org Linkedin

Imperial Oil technicaldivisions@cspg.org Linkedin

Chevron Canada publications@cspg.org LinkedIn

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

Marcelina Labaj

Shelley Leggitt

Michelle Thoms

Valentina Vallega

Central European Petroleum Ltd. fieldtrips@cspg.org Linkedin

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Freehold Royalties Ltd. outreach@cspg.org Linkedin

Schlumberger membershipdirector@cspg.org Linkedin

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CEGA OFFICE #150, 540 - 5th Ave SW Calgary, Alberta, Canada T2P 0M2 Tel: 403-264-5610 | www.cspg.org

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ADVERTISING INQUIRIES Britney Tang Tel: 403-513-1230 Email: britney.tang@cspg.org

MANAGING DIRECTOR Emma MacPherson Tel: 403-513-1235 Email: emma.macpherson@cspg.org

RESERVOIR ISSUE 3 • MAY/JUN 2023

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GO TAKE A HIKE

Devil’s Garden (Double O Arch), Arches National Park, Utah Dallin Laycock, Clint Tippett

TRAILHEAD: The Devil’s Garden trailhead is located at the end of Arches National Park Road. There is a parking area near the trailhead, but parking can get crowded on busy days. It is recommended that you arrive early in the day to find parking and avoid the mid-day heat. This hike is open all year round, and makes for a beautifully scenic hike, even in the winter. Please note that dogs are not allowed on this trail. DISTANCE: Hiking to Double O Arch, and not continuing along the “primitive trail” loop makes for a moderately challenging 6.6 km out-and-back trail. The primitive trail is challenging, not well marked, and not recommended here. ELEVATION GAIN: 205m

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rches National Park is one of the most famous geological attractions in the world. “Delicate Arch” has become so iconic that its silhouette is represented on Utah license plates. The park is home to more than 2000 arches, ranging in size from 1 m to 93 m in length. The distinct scenery of the park is the product of the complex geologic history of deposition, tectonics, and erosion. The best places to view the different aspects of this geology is the Devil’s Garden hike. Contained here is a guided hike to Double O Arch on the Devil’s Garden trail. There is also a longer loop called the “primitive trail”, which takes a different return route. The primitive trail is not maintained and can be very dangerous if you are not familiar with the area. As such, it is not recommended and not included in this guide. It is strongly recommended that you return via the same trail after reaching Double O Arch (Figure 1). Most of the scenery within the park is comprised of Jurassic strata, with the most common components of the scenery being the Navajo Sandstone, Dewey Bridge Member of the Carmel Formation, Entrada Sandstone, and the Moab Member of the Curtis Formation (Figure 2). The Entrada Sandstone dominates the scenery of the hike and is where most of the arches in the park are found. Although the Entrada Sandstone is the star of the hike, understanding how the arches were formed starts with

FIGURE 1: Geologic map of the area surrounding the hike. Trail shown with the red line. Coloured dots correspond to locations of photos in this article. Modified from Geologic Resources Inventory Poster For Arches National Park (2018). FIGURE 2: Stratigraphic column for Arches National Park (modified from Morris et al., 2009).

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understanding the role of the oldest strata in Arches National Park: The Pennsylvanian-aged Paradox Formation (Figure 2). Eastern Utah was located in a downwarped structure called the Paradox Basin during the Pennsylvanian. Previous research has suggested that there were 29 sea-level fluctuations, which occasionally restricted or silled the basin. This resulted in intermittent periods of extensive evaporation and deposited a thick succession of interbedded muds and evaporites more than 1500 m thick. Ductile flow of these evaporites caused by subsequent loading of overlying strata, and assisted by the Laramide Orogeny resulted in salt-cored anticline (Figure 3). As the anticline developed, a series of long joints developed in the overlying strata along the crest of the anticline, as can be seen in Figure 4 intersecting both the Entrada Sandstone and Moab Member of the Carmel Formation. Weathering along these joints created the sandstone fins observable on this hike and set up the development of arches (Figure 5). As weathering between the fins progresses, differential erosion occurs at weaker bedding planes or contacts between units. The contact between the Slick Rock Member of the Entrada Sandstone and Dewey Bridge Member of the Carmel Formation is the most commonly exploited contact. Groundwater accumulates along the contact and dissolves the calcite cement, forming small alcoves. Eventually the fin is breached, and the unsupported sandstone above the opening develops gravity-induced fractures, resulting in blocks eventually falling from the bottom of the opening and fully developing the arch. An early stage of the hike contains a short departure to Pine Tree Arch (Figure 6). Aside from being very photogenic, this arch provides a good place to observe the gravity-induced fractures that helped carve the arch shape into the vertical rock fins. By examining the rocks on the underside of the arch, these fractures can easily be observed (Figure 6 inset). The role of gravity can also be seen when examining Landscape Arch, which is located on the main trail, a short distance Pine Tree Arch (Figure 7). This arch is approximately 88.5 m wide, and is considered to be the 5th longest natural arch in the world. The area beneath Landscape Arch is closed from visitors for the safety of both people and the arch, as parts of it are very thin, and with rockfalls as recent as 1995. Rockfalls represent the ultimate fate of every arch, but is something rarely seen by visitors. However, rockfalls do happen and can pose a risk to hikers. This is especially true of cool mornings, where frost wedging can accelerate or trigger rockfalls. In August of 2008, an arch along the Devil’s Garden trail collapsed. It was previously ranked as the 12th largest arch in the park and spanned over 16 m.

FIGURE 3: Illustrated cross section through Arches National Park (modified from Morris et al., 2009). The approximate position of the trail is shown with the red dashed line, showing the relative position of the trail in relation to the fracture sets created by the Salt Valley Salt-Cored Anticline. Inset figure to the right highlights the major stratigraphy in the anticline. Other regions of the park are also illustrated to provide geologic context. Also highlighted is the relative position of the Moab Fault, created by the adjacent Moab Valley SaltCored Anticline. FIGURE 4: Trail map using Google Earth satellite image to show the trail in relation to the fractures created by the anticline, and the associated Salt Valley located to the west with fewer visible fractures. The NE-SW trending fractures correspond to the crest of the anticline shown in Figure 3, which covers both the Entrada Sandstone and Curtis Formation in this view. Refer to Figure 1 to identify the different stratigraphic units exposed in this area.

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Another risk for hikers is overestimating the grip of the sandstone under their feet, and the pull of gravity on steep slopes. Accidents have occurred in the past as hikers try to approach the edge of a rounded cliff. They eventually reach a point where the pull of gravity exceeds the frictional forces holding them to the ground, or the shear strength exceeds the cement binding sand grains together. After passing Landscape Arch, the sandstone fins become much easier to observe as the trail follows several prominent fins (Figure 5). This provides cross sectional views of the Entrada Sandstone. Cross-bedding can often be observed, indicative of its’ aeolian origins. The Slickrock Member of the Entrada Sandstone is generally fine to very-fine sandstone deposited in large complex of coastal dunes. The underlying Dewey Bridge Member

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FIGURE 5 (TOP): View along Devil’s Garden trail looking to the southeast. To the right of the image is the Salt Valley. Center of the image shows multiple sandstone fins of the Entrada Sandstone. Position of visible fractures has been annotated with thin dashed white lines. La Sal Mountains can be seen in the distance, which are ~25-28 Ma.

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of the Carmel Formation is interpreted to have been deposited in broad tidal flats, marginal to the shallow Carmel Sea located to the west. Soft sediment deformation can commonly be seen in outcrops of the Dewey Bridge Member, induced either by seismic activity or rapid dewatering during compaction. Also visible is dark staining along cliff faces, known as “desert varnish” (white arrow in Figure 8). This dark veneer is a thin coating of mostly iron and manganese that is common in these desert rocks after long periods of exposure. It is formed by groundwater moving through the rock and evaporating at the rock surface. The aptly named “Double O Arch” is the part of the trail where most hikers stop for a rest before turning back. The larger opening on top is interesting in that it doesn’t exploit the weaker contact with the Dewey Bridge Member, but a less resistive bed within the Slick Rock Member of the Entrada Sandstone. The viewpoint at Double O Arch also provides a good view of arches in various stages of development, with fins, arches, and pinnacles all visible at that location. Other interesting geologic features of the area are visible on the trail and in the surrounding area. Figure 5 shows the La Sal Mountains in the distance, located to the south beyond the park boundary. These mountains are a laccolith, with intrusive igneous rocks emplaced approximately 25-28 million years ago, with diorite being the most common rock type. The road out of the park drives through the Salt Valley, and ultimately past the Moab Fault, providing a glimpse into the geologic context of the area. This dissects the arkoses of the Permian Cutler Formation. These are normal faults associated with the collapse of the Moab Salt Valley Salt-Cored Anticline. See Figure 3 for context of how the Moab Salt Valley Salt-Cored Anticline relates to the Salt Valley Salt-Cored Anticline.

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FIGURE 6 (BOTTOM RIGHT): Photograph of Pine Tree Arch, within the Entrada Sandstone. Inset image on bottom shows the view from underneath Pine Tree Arch, looking up toward the fracturing on the inside.

REFERENCES AND SUGGESTED READINGS: Doelling, H. (2000); Geology of Arches National Park, Grand County, Utah. Published in Geology of Utah’s Parks and Monuments. Publishers Press Hintze, L. (2005): Utah’s Spectacular Geology; How it Came to Be. BYU Press. Morris, T., Ritter, S., and Laycock, D. (2009); Geology Unfolded; An Illustrated Guide to the Geology of Utah’s National Parks; BYU Press. Morris, T., Spiel, K., Cook, P., and Bonner, H. (2016). Landscapes of Utah’s

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Geologic Past; A Summary of Utah’s Fascinating Geologic History; BYU Press. Williams, F., Chronic, L., and Chronic, H. (2014); Roadside Geology of Utah. Mountain Press Publishing Company. Geologic Resources Inventory Poster For Arches National Park (2018). https://irma.nps.gov/DataStore/Reference/Profile/2258307

FIGURE 7 (TOP): Landscape Arch, which spans 88.5 m. The trail under the arch has been closed to protect visitors against rockfalls.

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FIGURE 9: View of the Moab Fault, located across from the visitor center. Plain image above with interpretation below, courtesy of Enry Horas Sihombing.

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FIGURE 8 (BOTTOM): Double O Arch. Below the main opening is a smaller opening, with a hiker for scale. White arrow points to desert varnish, commonly visible throughout the region.

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Petrophysics in the Green Economy

PART 6

LITHIUM:

FROM OILFIELD AND NEAR-SURFACE BRINES E.R. CRAIN, P.ENG.

INTRODUCTION Lithium is present in oilfield produced water and in moderate to highly saline water zones in sedimentary basins. Well logs cannot identify lithium in oilfield brines (at least not yet) but they do tell us a lot about the water salinity, pore volume filled with that water, and other pertinent information about the reservoir or aquifer. This article describes near surface and deep sources of lithium, how it is extracted from brines, as well as the mining technique which until recently was the major source of the world’s lithium.

Lithium (Li) is a soft, silvery-white alkali metal. Under standard conditions, it is the lightest metal and the least dense solid element. Like all alkali metals, lithium is highly reactive and flammable, and must be stored in vacuum, inert atmosphere, or inert liquid such as purified kerosene or mineral oil. It never occurs freely in nature, but mostly in ionic compounds, such as pegmatitic minerals (spodumene, and to lesser extent, amblygonite, lepidolite, and petalite), which were once the main source of lithium. Extraction was a classical hard rock mining operation in which the ore was heated, crushed, and leached to obtain stable lithium-rich compounds.

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Since about 1990, surface and near-surface brines in lakes, playa deposits, and salt flats have become major sources of lithium compounds. Soon oilfield produced water, oilfield water zones, and medium temperature geothermal projects will be capturing lithium from these higher salinity water flows. Lithium and its compounds have many industrial uses including heat-resistant glass and ceramics, lithium grease lubricants, flux additives for iron, steel, and aluminum production, and lithium or lithium-ion batteries. These uses consume more than three-quarters of lithium production (2020)

and will continue to increase rapidly as the World’s vehicle fleet is electrified. Lithium reserves and resources are measured in metric tonnes Li metal equivalent. Hard rock ore grade is reported in percent Li2O, similar to potash ore grade in percent K2O. An average ore grade for a hard rock mine might be 2.4%. In brines, quality is graded in parts per million (ppm or mg/liter) Li+ ions – 500 ppm represents a fairly high concentration in an oilfield brine or a moderate value for a near-surface brine deposit. USGS and other studies show the lithium resource is available for projected needs, but extraction may lag demand.

Petrophysics, with other geosciences, will play a major role in quantifying reservoir volumes, water quality, and flow capacity that will help to assess the economics of these projects.

LITHIUM EXTRACTION FROM HARD ROCK ORES Ore from hard rock mining of pegmatic minerals is heated to 1200K and crushed. The minerals are combined with sulphuric acid and sodium carbonate which causes the aluminum and iron to precipitate from the ore. Sodium carbonate is added to the lithium products which causes the lithium to precipitate out in the form of lithium carbonate (Li2CO3). Hydrochloric acid is added to the Lithium carbonate to form lithium chloride.

LITHIUM EXTRACTION FROM SURFACE BRINES A large fraction of the world’s current lithium is produced by evaporation of brine in ponds. This process is time-consuming but is also inexpensive compared to other methods. The salt-rich waters are pumped from the ground and start to evaporate through solar energy. This process can take several months, up to two years. First, potassium is harvested. Then when the lithium compounds reach a suitable concentration, they are harvested and brought to a plant. Unwanted waste is filtered out, then the concentrate is treated with sodium carbonate, to create lithium carbonate. Finally, the unwanted waste is pumped back into the ground.

Seawater has only 0.2 ppm Li so it is not considered a credible source of economic lithium.

LITHIUM EXTRACTION FROM DEEP BRINES Lithium from oilfield produced brines (50 – 500+ ppm Li+), co-produced with oil or natural gas, and from deep high salinity oilfield water zones is in its infancy but is much more environmentally friendly than destroying salt flats or pegmatic mountains. Note that oilfield produced water is sometimes called oilfield wastewater, not to be confused with municipal wastewater, which is a very different thing. Oilfield wastewater is injected back into the reservoir where it came from; municipal wastewater may or may not be treated and is fed into rivers or oceans. Co-production of lithium with medium temperature geothermal energy projects in sedimentary basins looks very attractive. As in the oilfield case, the water is from deep saline zones and is already being pumped to a disposal well. Fox Creek and Valleyview in Canada have 362,000 and 385,000 metric tonnes of Li metal equivalent, respectively, while the Smackover Formation in the U.S. has 750,000 metric tonnes. Lithium may be extracted from the oilfield produced water and geothermal water flowing to the disposal well using an adsorption, membrane-based process, and electrolysis-based systems. These and

other approaches are in the pilot project stage (2022). Extraction of lithium from oilfield and geothermal brines enables domestic production without relying on South American sources and Chinese refining. Apparently 100 ppm Li+ can make extra cash, since the water is already being separated and pumped to the disposal site. Repurposing deep wells that have reached end of life as oil or gas wells will need higher concentrations of Li+ to pay out the pumping costs. Time to drag out all those old water chemistry reports, or to take new water samples from produced water to see what we own. There will probably be some mineral-rights and regulatory issues to resolve with various agencies and landowners. Further, some innovative approaches are needed to test saline water zones for lithium concentration before a well is prematurely abandoned. Transforming unwanted oil wells into “green energy” sources is very appealing.

REFERENCES 1. L ithium Recovery from Oil and Gas Produced Water Amit Kumar, Hiroki Fukuda, Alan Hatton, and John H. Lienhard https://doi.org/10.1021/ acsenergylett.9b00779 2. L ithium Technical Data Various Wikipedia Pages, 2022

FIGURE 2: Lithium resources of various produced oilfield brines (Kumar et al 2019

FIGURE 1: Lithium concentration of various produced oilfield brines (Kumar et al 2019

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IN MEMORIUM

A Reservoir of Geological Enthusiasm The Legacy Of Philip Benham (1965-2023)

Philip Benham, our dear friend and colleague, passed away on March 3, 2023 after a brave fight against cancer. This tragic shortening of his life is mourned by all that knew him. Phil maintained a positive outlook to the end, never losing his sense of humour. He deeply appreciated the visits and communications from many of his friends during his last months. Phil was fascinated by geology and the natural world beginning when he was a child – in other words forever. Those interests propelled him through his B.Sc. at the University of British Columbia (1987) and his M.Sc. at Memorial University in Newfoundland (1992). He cut his teeth in the field with the Geological Survey of Canada in the Frontiers – Haida Gwaii, the Mackenzie Delta and Bylot Island. Phil had a game plan for his career and that was to establish his roots in Canada and to then go overseas – and both missions were accomplished! In 1994 he joined Shell Canada in Calgary and over time he worked in a great diversity of play fairways including the Foothills, Mackenzie Delta, Deep Basin, the Montney, and offshore Atlantic Canada. As his experience base grew, he mentored younger professionals through his involvement in recruiting and the nurturing of geological staff. His last role in Canada was as Regional Discipline Advisor – Production Geology. His international postings with Shell were as Head - Geological Services, Shell Malaysia (2014-2017); as Geology Advisor, Shell Russia (2017) and lastly as Training Advisor – Shell Kuwait (2018-2021). And naturally these locales were springboards for his global wanderlust. Phil had been contemplating his retirement from the Shell organization when he was originally diagnosed in 2021. He had been planning many new projects for the future.

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Throughout his life Phil was drawn to diverse fossil localities and to volcanic tracts of the Earth in East Africa, Iceland, Ethiopia and the Pacific. He also made sure to take in the cultural sides of his excursions. When the opportunity arose at Shell to participate in a census of lemurs in Madagascar with the Earthwatch Program, Phil jumped at the chance and followed up with some charitable assistance for the communities that he visited. By his own admission Phil didn’t see himself as an academic scientist, at least in his public activities, but rather as more of a communicator. If you ever wanted to have a discussion about some obscure aspect of the natural world, Phil would know what you were talking about and would probably be a couple of steps ahead of you. The combination of Phil’s Canadian experiences and his international travels provided the basis for the signature project that he coordinated and made many contributions to – the Go Take a Hike series of articles that originally appeared in the CSPG Reservoir and, in 2019, were compiled into a book published by the Society that was, and still is, very popular. Many additional hikes have been published since then. Phil reached out in many directions and his extensive collaborations are reflected in the author lists of the hikes. Phil’s network of friends and professional colleagues was extensive. It was his friendly manner of interacting with others to gain their cooperation while taking on considerable technical and coordination roles himself that made this all possible. Phil’s other outreach-related activities included his role of Chair of the CSPG Paleontology Division (1999-2014) where a strong working relationship with the Alberta Paleontological Society was established. The world-famous Burgess Shale did not escape his attention and he volunteered with The Burgess

Shale Geoscience Foundation (originally The Yoho-Burgess Shale Foundation) over a number of years, serving on their Board, instructing in their annual Teacher’s Workshop and leading field trips along with other volunteers. Phil was also a consistent contributor to the CSPG Calendar where his photographs reflected his global adventures.

Phil has left us but his inspiration lives on, bringing to mind for all of us the expression “from failing hands we throw the torch” concerning our pursuit of Phil’s legacy.

Given his leadership and initiative, it is not surprising that the CSPG honoured Phil on several occasions. In addition to various volunteer and service awards, he was presented with a Tracks Award in 2012 and the President’s Award in 2018 (citation in The Reservoir, July/August 2019, p. 28). An overview of his career and perspectives on his personal and geological activities were captured in a Talking with Architects article in The Reservoir (July/August 2018, pp. 7-9). Readers

are referred to these documents for further details. Phil’s adventurous geological activities provide a role model for young students of the discipline. If his adventures and accomplishments are not a sufficient inducement for others to follow in his footsteps and to reinvigorate interest in this field, we don’t know what would be.

Phil led a life rich in experiences. Although one might be tempted to consider Phil as a one-of-a-kind, that is not the case. His example has motivated both professionals and amateurs to deepen their involvement in the study of geology and its communication, ourselves included. Phil has left us but his inspiration lives on, bringing to mind for all of us the expression “from failing hands we throw the torch” concerning our pursuit of Phil’s legacy.

Phil Benham above Rockbound Lake, Banff N.P. with exposures of Cambrian strata at Castle Mountain in the background. See GTAH article on this locale in The Reservoir – July/August 2022, pp. 12-18.

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The Geology of the Galápagos and Its Impact on the Wildlife Jon Noad, Stantec Consulting, University of Adelaide

The iconic view of volcanic terrain at Bartholomé Island

INTRODUCTION The Galápagos Islands, located around 1000 km off the Ecuadorian coast, are justifiably known as one of the world’s premier wildlife viewing destinations. The isolated terrain hosts some extraordinary animals and plants, many endemic to the islands. It was here that Charles Darwin was inspired to develop his theory of evolution. Without doubt the geology of this region is directly responsible for the morphology of the islands and their fauna and flora. In this article we will explore the stunning geology, examine its influence on the unique wildlife and finish with some tips on visiting the Galápagos.

GEOLOGY The Galápagos Islands are an archipelago of volcanic islands located on the Nazca Plate. This active tectonic plate is moving eastward as it is subducted under the South American Plate. Much like the Hawaiian islands, an active mantle plume beneath the Nazca Plate has led to repeated volcanic eruptions at the seabed, forming the individual islands. The most recent eruption was at Wolf Volcano on Isabela Island in 2015. The hotspot was initiated at least 70 million years ago. As mantle plumes near the surface, they begin to melt forming buoyant magma, which occasionally forces its way to surface, producing volcanic eruptions. The situation is complicated in this region, with a mid ocean ridge, the Galápagos spreading centre, located just to the north of the archipelago. Transform faults dissect the mid ocean ridge. The plumes

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have formed two seamount ridges, the Cocos and Carnegie Ridges, dating back at least 8 million years. Each of the largest Galápagos Islands comprises a single volcano, giving them a distinct rounded shape. The exception is Isabela, which is made up of six volcanoes. The Nazca Plate is moving eastward at around 4 cm/year, so the youngest islands occur at the western margin of the archipelago. The oldest islands are Isla Española and South Plaza, which are between 3 million and 4 million years old, while Isabela is around 2 million years old. Many of the western volcanoes are still active, and six volcanoes on three separate islands have erupted in the Galápagos since 1990. Continued lava flows mean that the western islands are growing at a few centimetres every year.

Map of the Galápagos Islands showing the main volcanoes Map showing the tectonic plates in the eastern Pacific Ocean and location of the Galápagos Rift, the spreading ridge that separates the Nazca and Cocos plates. Thermal vents were discovered at the star

Dipping volcanic sediments on the flank of a volcano at Vincente Roca Point, Isabela

Two distinct types of volcanoes occur in the Galápagos: in the west are large volcanos with “inverted soup bowl” morphologies, and to the east are smaller shield volcanoes with gentler slopes. The difference in character is thought to relate to differences in lithospheric thickness, with thicker crust to the west supporting larger volcanoes. The unusual soup bowl shape may relate to the absence of vents on the upper slopes, or to the pattern of magma intrusion.

Beautiful volcanic cone on Santiago Island (soup bowl type)

The volcanic calderas of the Galápagos are unusually large, with their sides repeatedly collapsing over time. They host micro-climates that are more stable than areas at higher elevations and may collect water. Areas where the caldera margins dropped below sea level led to shallow marine conditions ideal for fish of all sizes and marine mammals and reptiles. The western islands have shallower and more gently sloped calderas than those to the east. Many other volcanic features can be observed throughout the islands including parasitic cones, both tuff cones, formed by cemented volcanic ash and spatter cones, made up of gobbets of degassed magma that are flung into the air and coalesce upon landing. The Galápagos Islands volcanic rock is largely made up of basalt, comprising jagged A’ā lava (more viscous) and Pāhoehoe lava (which flows more easily), which has a smoother, twisted texture described as “ropy”. You get to walk across recent and older, weathered, lava fields during a visit to the islands.

Cross-section through a small volcanic cone at Buccaneer’s Cove

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Spatter cones in recent lava field Santiago Island

Weathered spatter cones on Santiago Island

The Monk, a weathered volcanic stack at Buccaneer’s Cove

Older, weathered A’ā lava

Recent Pāhoehoe lava flow Younger, ropy, Pāhoehoe lava in a 130 year old lava field

There are also lava tunnels formed when the top section of lava cools, forming an insulating crust, and the remaining molten lava continues flowing downslope through the tunnel. When the eruption ends, the drain of molten lava ends as well, leaving a hollow tube that can extend for kilometres. Pit craters form when subterranean magma chambers have emptied, and the roofs collapse to form giant sinkholes. Eruptions usually occur at fissures and not from a central conduit. Much of the volcanic material is deposited as ash beds. These are often liable to rapid erosion, but may be cemented if sufficiently hot, making them more resistant. The ash beds may host volcanic bombs, which often distort the sedimentary layers as they plumet into the hot ash. One of the geological highlights for me was visiting a “raised beach” at Urbina Beach. A whole section of coastline with associated coral reefs was uplifted by 6 m in 1954. It was incredible to walk among large coral heads exposed inland. There were also shells and vertebrate bones littering an area covering several hectares.

new species adapted to each environment. The almost total absence of land mammals, thought to be because they could not survive for weeks without nourishment while floating towards the islands, allowed reptiles to colonize many ecological niches in a way that is not seen in other parts of the world. It is also likely that most species colonizing the Galápagos had ancestors who were already well suited for its harsh environments. The rarity of onshore predators allowed the slow-moving tortoises to evolve into a variety of forms and to increase in size. For the same reason, animals here tend not to fear the unknown, including the many human visitors to the islands.

WILDLIFE

The older islands to the east are more mature, with thicker soils leading to a more diverse flora, providing thriving environments in which the animals can flourish. It takes time for the lava to break down into fertile soils, but once this has occurred trees can take root, leading to extensive forests that provide excellent habitats for wildlife. Those to the west are more barren, although the challenging terrain and paucity of food has driven evolution at a fast rate.

How did the original wildlife get here? By flying, floating or swimming. The limited range of animals that made the voyage from the mainland found a relatively virgin and diverse terrane, driving the evolution of

The islands host 28 reptile species (lizards, chelonians and snakes of which 19 are endemic), 6 onshore mammals (bats and rice rats), 26 marine mammal species (dolphins, sealions and whales), 42 seabirds, 34

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Rivulets of frozen lava flowing down the face at Vincente Roca Point

Lava tunnel on Santiago Island

Pit Crater at Punta Moreno, on Isabela

Galápagos lava gull perched on a volcanic bomb in ash beds, Vincente Roca Point, Isabela

Thick volcano ash deposits in Tagus Cove, Isabela

shore birds, 21 water birds and 49 land birds, in addition to 13 species of Darwin’s finches. Half the bird species are endemic to the islands. The Galápagos have a low biodiversity due to their isolation from the continent, with animals evolving specific traits to suit a certain niche in the environment rather than diversifying. Four ecological zones have been defined on the islands: coastal, low or dry, transitional and humid. Mangroves and saltbush dominate the coastal settings; cactus, incense trees, carob and poison apple tress flourish; the transitional zone has taller trees, epiphytes and perennial herbs; and in the humid zone are cogojo, Galápagos guava, cat›s claw, Galápagos coffee, passionflower and some types of moss, ferns and fungus.

AMAZING ANIMALS Below I have selected some diverse animals from the Galápagos that demonstrate adaptations driven in part by the geology. This was a tough choice, and we are merely scratching the surface, as almost every animal has special traits to help it survive in these harsh conditions. We will start with the reptiles:

The uplifted coral reef at Urbina Beach

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Mangroves at Elizabeth Bay, growing on the lava fields

Incense trees and succulents seen at Seymour Norte island, growing in poor quality thin soils

GALÁPAGOS TORTOISES – there are fifteen species of giant tortoise of which eleven are still living to this day. The different species are adapted to graze on different plants, with the saddleback tortoises having evolved to feed upon tall bushes and cacti. The most famous tortoise is Lonesome George, who was the last surviving member of the Pinta Island tortoise species. He lived to over 100 years in age, with several unsuccessful attempts to breed him over the years. New evidence suggests that hybrid Pinta tortoises may still be living elsewhere in the Galápagos. The tortoises can reach almost 2 m in length, weigh close to 400 kilos and may live for up to 175 years. For anyone wondering whether a tortoise could float so far, in 2004 an Asian Tortoise was found on the coast of Tanzania, some 750 km from its origin.

The embalmed remains of Lonesome George on display

IGUANAS – two types of iguanas inhabit the islands, marine and land iguanas, thought to have evolved from a common ancestor that floated to the islands from the mainland. The marine iguana is the world’s only seagoing lizard and is an excellent swimmer, diving to feed on algae coating rocks on the seabed. It has evolved a flattened nose to assist with this feeding technique. There are striking colour variations between the seven subspecies, ranging from black to green to pink on different islands. These animals can spend up to an hour underwater on a single breath. The algae is fostered by icy, nutrient rich currents upwelling off the west coast of the Galápagos, which also sustains penguins, sea lions, fur seals and cetaceans that would otherwise struggle to feed year round in equatorial waters. The reason behind the cold upwelling currents is that the deep ocean, fast flowing Equatorial Undercurrent (EUC) collides with the islands lying in its path and is held in place by Coriolis forces related to the Earth’s spin. Land iguanas tend to nest in burrows, partly as a defence against introduced dogs. Like their marine cousins, they are ectothermic (cold blooded) they need to warm up before embarking on feeding or other activities. The males are highly, territorial, defending their territories against intruders by engaging in head-butting battles. They can breed with the marine iguanas giving birth to barren hybrids.

TURTLES – the local subspecies of green turtle abounds across the islands. At one point I could see seven turtles swimming through the shallow coastal waters while snorkelling. The turtles rely on the rich, coastal algae growing on the rocky seabed, which thrives due to the cold upwelling currents. Nesting sites are a common sight at the top end of the generally sandy beaches.

Wild giant tortoises on Santiago Island

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There are a variety of marine mammals, ranging from sea lions to fur seals, from dolphins to whales. We were lucky enough to see a whale (possibly a Bryde’s Whale) at sunset as well as several schools of dolphins. However, the most common marine mammals are the sea lions. They too thrive in the cold, nutrient rich waters. The sea lions are very playful and spend a lot of time frolicking in the shallows. They are surprisingly good climbers and often ascend to the cliff tops, presumably to get a

better view of the coast, or a sunny spot to snooze. Fur seals are also fairly common, but their thick fur means that they need to stay out of the direct sunlight to avoid overheating.

MARINE INVERTEBRATES – the most commonly seen are the Sally Lightfoot Crabs, exhibiting striking colours. They are rumoured to have been named after a Caribbean dancer, due to their extreme agility. Female Sally Lightfoot crabs carry their eggs around with them on their stomachs until they hatch into the water. They feed on organic debris. Ghost crabs are also seen scraping the sand for food. Both species rely on nutrient rich waters to supply their food source. BIRDLIFE – most memorable of the all the fauna are the birds. Walking through nesting colonies in places like Seymour Norte Island is like being on the set of a wildlife documentary. Three types of boobies live on the islands, Blue footed, Red footed and Nazca boobies. They are named after the Spanish word for clowns – bobo. The blue and red footed boobies use their brightly coloured feet for display during courtship, lifting them up to show their prospective mates. The bright colours signify good health and a robust diet. Boobies have a special air chamber in their skulls allowing them to dive into the water at high speed, to catch sardines. They nest in the incense trees and are adapted to life in arid coastal settings typical of the islands.

Colony of marine iguanas at Espinoza Point, Isabela

Frigate birds are large, dark seabirds with very long, pointed wings. Their bills are long and hooked. They soar over the sea and harass other birds to steal their catches, hence their nickname of the pirates of the sea. They like to follow the small cruise vessels for hours, barely needing to flap their wings. They are incapable of landing on water as they lack the oils to keep their feathers dry. Males have a striking red gular pouch that is inflated during display. The frigate birds rely on other birds for food, birds that in turn rely on the nutrient rich waters. There is one flamingo species that is resident to the Galápagos Islands, the Greater Flamingo. Some experts consider the Galápagos residents as a separate subspecies. They are unmistakable, with bright pink colouration (not due to eating prawns) and kinked bills. They usually feed in small groups in saltwater lagoons developed in the pit craters formed by localized magma chamber collapses. Darwin’s Finches or Galápagos Finches - small land birds with generally dull colouration, short tails, and wings. Their bills vary greatly in size and shape from island to island, leading Darwin to muse

Male lava lizards “display” by doing push ups. There are seven species across the Galápagos

Marine iguana feeding on the seabed (photo: Katya Kopaskie)

Land iguana (looking like a Gaudi sculpture) seen at Plaza Sur

Green turtle swimming in the shallows (photo: Katya Kopaskie). It is common to be washed against them while snorkelling

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Sharks are common close to the coast, as are rays and a multitude of other fish

Frigate bird in flight

Cliff at Plaza Sur, with a sea lion snoozing at the top

One of the ubiquitous Sally Lightfoot crabs

This sea lion, seen at Tagus Bay, decided that a kayak was a great place to hang out

upon the possible reasons why this should be. The 13 different species of finches all stem from a common ancestor but have evolved to take advantage of different diets including cactus, seeds, parasites and even blood. Our final bird is the Galápagos penguin. It is thought that storms and ocean currents washed the first penguins from Southern Chile to the islands. They are the only species of penguins which can be found in the northern hemisphere. To survive in the warm climate, they have evolved to have far less body fat and feathers than their cold-weather counterparts. They also have bare patches of skin around their eyes and by the base of their bills. This helps them lose body heat and stay cool throughout the summer. Due to the limited food supply, they are one of the smallest penguin species.

SUMMARY

Ghost crab feeding at Baltra Island

The flora and fauna of the Galápagos Islands are low diversity but have evolved to adapt to challenging living conditions, forced on them by the isolated, volcanic, geological setting. As a result, almost half the species of vertebrates are endemic. They have colonized volcanic environments and taken advantage of abundant food in shallow marine conditions. They are typically very tame as there are few predators onshore meaning that you can get up close in a way that is not possible in places like Africa. A visit to the Galápagos is one that you will remember for a lifetime – a unique experience where the reality really does match what you see on nature shows on TV.

GETTING THERE There are around 70 visitor sites scattered through the Galápagos islands which are usually accessed by following one of three separate cruise itineraries: central and northern, western or southern. Boats usually sleep 16 passengers with around 8 crew, although there are a few bigger boats. The classier the boat, the better the food and the more educated the guide, the more expensive the cruise. Typically, you can expect

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to pay anywhere from $400 per person per day and upward, with the cost of international flights on top (the internal flights from Quito to the Islands are usually included in this price). There is also the option to be land based on an island and then to do day trips to the hot spots by zodiac or taxi boat. I would recommend doing a single 5 day Galápagos itinerary and then 4 or 5 days in the Amazon. The daily program usually involves a morning hike, snorkelling before and again after lunch, and another hike later in the day. I think that only two groups are allowed to visit each site at a time. Before you go, I would also consider whether sea sickness might ruin your holiday. We were lucky and had calm weather (several people still felt rough at times), but later in the season it is supposed to be stormier.

Flamingos in lagoon at Punta Moreno, Isabela

All photos taken by the author unless stated. References available upon request.

Male inflating his pouch for display on Seymour Norte Island.

Flamingo stretching in lagoon at Cerro Dragon on Santa Cruz Red footed booby nesting in the mangroves at Darwin’s Bat, Genovese island

Darwin’s Finches (image from www.galapagosislands.com)

Blue footed boobies at Punta Moreno

One of Darwin’s Finches seen at Tagus Bay

Short eared owl seen at Seymour Norte

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Our boat, the MV Bonita, at anchor Penguin swimming at Santiago Island

Penguins at Punta Moreno

Sunset over the Galápagos

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Darwin’s Finches (image from www.galapagosislands.com)

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2022 STANLEY SLIPPER AWARD The recipient of the 2022 Stanley Slipper Gold Medal is Dr. Brad Hayes, in recognition of his outstanding career as a geologist, business and technology leader, teacher, and strategic thinker.

DR. BRAD HAYES

Dr. Hayes has distinguished himself in many aspects of the Canadian oil and gas industry throughout his ongoing career. During more than 40 years, he has contributed significantly to the discovery and delineation of oil and gas pools at petroleum and natural gas companies, as well as through his leadership of projects connected with Petrel Robertson Consulting Ltd. (PRCL) and the Canadian Society for Evolving Energy or CSEE (formerly the Canadian Society for Unconventional Resources or CSUR). Dr. Hayes also continues to hold geological teaching positions at the University of Alberta and Mount Royal University. He has volunteered countless hours with professional societies and continues to play a leading role in education about the facts around the oil and gas industry and its key role during energy transition. Dr. Hayes’s many contributions cross over industry, technology, communication, and leadership, to make him an outstanding recipient for the Stanley Slipper Gold Medal. Dr. Hayes first became intrigued with geology as a Grade 12 student in Toronto, interpreting depositional environments in a high school geology course. This introduction ignited a lifelong passion in geology and interpretation of depositional models. He graduated from the University of Toronto in 1978 with a B.Sc. in Geology. In the third year of his B.Sc. degree, Brad accepted a summer job in Calgary with Shell Canada Ltd. (Shell) and he was hooked on petroleum geology. He applied to several graduate schools and had decided to attend Stanford University in the U.S.A. However, fate intervened and his experience from attending a fantastic carbonate field course in Bonaire, led by Dr. Dave Kobluk,

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influenced Brad to accept a graduate school offer at the University of Alberta instead, which offered pure geological research. He has never looked back on this decision. Shell employed Brad for three more summers and supported all his core logging work for his Ph.D. while introducing him to the oil industry. Dr. Hayes graduated with his Ph.D. in 1982, and he is very grateful for the mentoring by Drs. Gordon Williams, Charlie Stelck, Jack Lerbekmo, and Fran Hein. Brad’s thesis comprised interpretations within the Upper Jurassic and Lower Cretaceous of Southern Alberta and Northern Montana. Another mentor, Dr. Robert Weimer from the Colorado School of Mines was his external thesis examiner. Brad has written that this period solidified his lifelong passion for the interpretation of sandstone reservoirs and unconformities. He attended some amazing field trips during his thesis years which included viewing Western U.S.A. Quaternary outcrops with Nat Rutter, visiting the devastation of the Mount St. Helen’s eruption, and visiting various outstanding Colorado Plateau outcrops in national parks in the U.S.A. (Zion Canyon, Bryce Canyon, Arches, Grand Canyon and others). His industry career started in earnest in 1981 with Shell, despite the downturn at the time. During Brad’s time with Shell, he met many people who would become lifelong colleagues as they learned the basics of exploration on training courses and then applied that knowledge to projects. Some of his first dry holes were drilled in Southern Alberta, ironically close to an area where he today explores for helium. In 1985, Dr. Hayes joined Canadian Hunter Exploration Ltd. (CanHunter), in the company of other ex-Shell colleagues such as Roger Smith, Dr.

Dick Walls, Mike Downey, Dave Sturrock and Ruth Nixon. Under the dynamic leadership of John Masters and Jim Gray, Brad experienced the excitement of successful wildcatting in the remarkable beginnings of the Deep Basin Elmworth/Wapiti plays. Brad’s area of responsibility moved into British Columbia’s Deep Basin where he became the lead technical geologist for chasing Lower Cretaceous shoreface conglomerate targets. A highlight of his time with CanHunter were the helicopter-supported field trips to visit the fabulous outcrop exposures of the subsurface targets in the Falher, Notikewin, Cadotte and Paddy. He uses photos from those trips in his lectures today. This was a remarkable time in Dr. Hayes’s career as he was part of very successful natural gas exploration and development in the Deep Basin areas at Sundown, Noel, Kelly Lake, and Moose that contained reserves in excess of 250 BCF. Brad remembers many exciting discoveries and recalls flying over the destroyed rig and huge gas flare of BC Triassic Brassey Artex oil discovery and blowout. The famous American wellsnuffers, Boots & Coots, were called in to bring the well under control. Brad continues to value the geological and business mentorship he had from colleagues at Canadian Hunter, particularly from Mac Jervey, Gay Jervey, and Dave Smith. In 1991 Dr. Hayes experienced an industry downturn when CanHunter laid off 20% of the company, two weeks before his first son Steven was born. “While it seemed a terrible thing at the time, it was a great learning experience in the long run, teaching me (and many others) that even great companies can’t survive without making money.” This lesson would remain with him during the remainder of his career during leadership positions, and he became “much more focused on understanding business and economics, which are tools just as essential as geological knowledge in creating success.” Following a few “educational” years drilling some of the early horizontal wells with junior companies, in 1996 Dr. Hayes joined his long-time friend and colleague, Dr. Peter Putnam, at Petrel Robertson Ltd., a relatively small geoscience service provider at the time. Brad remembers geologists like Dr. Gerry Reinson and Dr. Ed Klovan providing guidance as he learned the ways of consulting and embarking on multi-client studies. Much of Brad’s work included being the lead technical geologist, interpreting core, stratigraphy, depositional models, and mapping prospective areas and targets for client-based projects. In 1998, together with Shawna Christensen and Dr. Alula Damte, Peter Putnam and Brad formed Petrel Robertson Consulting Ltd. (PRCL), and built the firm into an internationally-recognized consulting firm providing services across North America (including both USA and Mexico) as well as in more than two dozen countries in Asia, Middle East, Africa, South America, Australia, New Zealand, and Europe. Brad held the position of Executive Vice President for nine years until becoming president in 2007, a position he holds today. Colin Yeo and Dr. Ian MacIlreath write that Dr. Hayes “began the process of transitioning the company from a geophysical and geological service provider to an integrated geoscience and engineer consultancy ... conducting full spectrum analysis through prospect generation to reserve and resource assessments.” Brad has been directly involved in leading-edge studies for play evaluation that include recommendations for exploration and development programs. Many projects resulted in reserves and resource additions for clients, and in some cases, to monetized assets. The success of PRCL’s prolific studies “underscores the respect and trust clients have in the Company and Dr. Hayes.”

Through the ups and downs of the industry from early 2000s to present day, Brad strategically directed PRCL to become “a leader in unconventional geoscience technologies and associated applications” including freshwater resources, saline reservoir assessments, waste water disposal, geothermal energy, and subsurface carbon dioxide storage and sequestration. In time PRCL began working with investors to start up new companies, with the technical leadership from PRCL. Two companies, OSUM Oil Sands Corp and Central European Petroleum, were founded by 2007 and Peter, Shawna, and Alula moved to those new entities. Brad took over the role of President of PRCL, a position he holds today. With the ups and downs of the industry, Brad realized “that we would do well to re-purpose our oil and gas knowledge … and exploring for other resources became important business areas.” He co-founded First Helium in 2017 and Imperial Helium Corp in 2021 and served as Imperial Helium Board Co-Chair until its acquisition in 2022 by Royal Helium. Their Steveville helium discovery is planned to be on production in 2023. Brad worked closely with other junior helium and lithium exploration companies to help them progress in this very competitive field. Dr. Hayes has also worked as project leader and lead geoscientist in other consulting work for Geoscience BC and CSEE. He is currently a board member of CSEE and took on the role of Outreach Director in 2015. Dan Allan, current President of CSEE, has worked with Brad for more than a decade. Dan describes how Brad has taken the initiative to talk about energy transition and “present fact-based, objective science” to various communities across Canada, to demonstrate the benefits of oil and gas energy combined with alternative energies. Dan writes that “this program was expanded significantly thanks to Brad’s commitment and support … to present seminars, workshops and lectures to government and stakeholder groups throughout the country.” The initial presentations addressed ‘Unconventional Resources’, ‘Hydraulic Fracturing’, ‘Water Usage’, ‘Environment Concerns’, and ‘Induced Seismicity’, and have expanded to include topics like ‘LNG in Canada’, ‘New Emerging Energy Sources’, and ‘Energy Transition’. Brad served on a technical panel in Nova Scotia investigating fracking in that province. Dr. Hayes has been a member of the Research Advisory Committee for the Canadian Energy Research Institute (CERI) since 2020, and has written online articles for the Daily Oil Bulletin and JWN Energy. Brad writes that “Outreach work has made it very clear to me that youth (and many people of all ages) are woefully short of knowledge about energy – which is a big problem considering how essential adequate and affordable energy is to modern life. I’ve seen the problem grow to affect the foundations of the oil and gas industry and society in general, resulting in many of the energy-related crises we see today as new industry projects are challenged and delayed or even cancelled.” His superior leadership and vision has spurred him to engage critics across Canada using knowledge, scientific facts and common sense, earning respect from critical audiences for his honest and direct communication. He continues to be active in facing the misinformation challenges of the 21st century across diverse and political communities. Based on his CSEE Outreach experience, financial support from CSEE, technical partnership from the University of Alberta and contributions from many experts, Dr. Hayes has recently designed and developed a free six-module Massive Online Open Course (MOOC), entitled ‘21st Century Energy Transition – how do we make it work?’. This course

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tackles the tough questions about balancing the global climate crisis, environment sustainability, energy poverty and the energy transition. This effort reflects Brad’s perseverance and belief in the importance of engaging with outsiders to create a better understanding through communication. George Eynon, APEGA past president and geological colleague, describes Brad as “an excellent and tireless communicator … and a natural leader.” Since 2017, Dr. Hayes has been an Adjunct Professor in the University of Alberta’s Department of Earth and Atmospheric Sciences, working with top-notch scholars including Drs. Nick Harris, Murray Gingras, Ben Rostron, J-P Zonneveld and Chair Stephen Johnston. Following an invitation in 2019 from Dr. John Cox, Brad is also in his fourth year teaching at Mount Royal University, which has been a very rewarding experience and a great opportunity to stay connected to students and to geological fundamentals. John writes that “Brad is a natural teacher and is wellliked and respected by his students.” Brad has developed and presented seminars, workshops, and papers, and is a well-respected figure at many conventions and conferences across Canada involving petroleum geology and the Canadian oil and gas industry. His passion for geology and the application of outstanding geological interpretation that incorporates evolving technological advancements, is evident in his presentations. Dr. Hayes has volunteered and networked with many professional societies, including the Canadian Society of Petroleum Geologists (CSPG), now the Canadian Energy Geoscience Association (CEGA), and the Association of Professional Engineers and Geoscientists of Alberta (APEGA). Brad joined the CSPG as a student member in 1978, and has served on many committees over 45 years, being elected President

in 2000/2001. He remembers the boom years and the challenges of organizing technical luncheons held at the Westin for a crowd of 1000 CSPG members. Following his presidency, Brad created the CSPG Student Outreach program, and traveled across Canada as part of the CSPG Outreach Program and later the Ambassador Program. Brad also served as a Councillor for APEGA from 2013 to 2019. Throughout his career, Dr. Hayes has demonstrated an extraordinary talent of looking forward and seeing the challenges. Colin Yeo and Dr. Ian Mcllreath write that “Dr. Hayes has demonstrated vison and strategic thinking, accountability and ownership, initiative, integrity, passion, confidence, resilience, and patience ... all the hallmark traits of a great leader.” Looking back, Brad feels “very fortunate to have had the opportunity to learn from so many incredible geologists how to succeed in many different settings – major oil companies, intermediates and juniors, and in the consulting world, all of which require different personal skills building on our fundamental geological knowledge.” Despite his ongoing busy career, Brad finds time to enjoy outdoor activities such as cycling, travel, “and to be an Oilers fan.” He is also incredibly grateful for the love and support of his family throughout his incredibly busy career– with a very special thanks to his wife Carol and sons Steven and Brian. Dr. Brad Hayes’s outstanding professional leadership and business skills, his excellent passion and execution of petroleum geology exploration and development interpretation and technology, as well as his ongoing mentorship and communication of fact-based energy science to geological and non-geological communities, make him the deserving recipient of the CSPG Stanley Slipper Gold Medal for 2022.

R.J.W. DOUGLAS MEDAL DR. MICHAEL P. CECILE Dr. Michael P. Cecile is an outstanding recipient of the R.J.W. Douglas Medal. Mike’s voluminous output of journal publications, maps and GSC Bulletins provide key insights into the geological evolution and tectonic history of sedimentary basins in northern and western Canada. That history spans rift events that created Early Paleozoic basins and sub-basins on the northwest Laurentian margin, through to the orogenesis that deformed those basins in the Cordilleran Foreland. Mike has documented rift-basins, demonstrated a link between

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Arctic and Cordilleran ancestral continental margins and their tectonic evolution, and provided models for structural styles in the northern Cordillera. He also synthesized much of this work into a Lower Paleozoic tectonic framework for the northern Interior Plains and Cordillera that continues to influence current academic and petroleum research. Dr. Cecile’s scientific contributions are significant to the development of conceptual and proven play concepts for petroleum exploration in northern and western Canada.

2022 TRACKS AWARDS HILARY CORLETT Hilary Corlett started her career in Earth Science at Queen’s University, following in the footsteps of several family members including her Aunt Mabel Corlett who was the first female professor in the Geological Science and Geological Engineering Department. On a third-year Bermuda field trip with her carbonates class, she found what she loved. Marine life frozen in time in rocks! From here she went to the University of Alberta for her postgraduate work. She currently works at Memorial University as an Assistant Professor teaching paleontology and doing research in the Bahamas, western Canada, and Newfoundland. Hilary joined the CSPG as a student when she first moved to Alberta to work at the Alberta Energy Company in 2001 as a summer student.

She volunteered at the CSPG conference and was also a regular attendee for much of her graduate years. In the years following her post-graduate work, while working at the Alberta Geological Survey, she volunteered as a judge for sessions at the Geoconvention. As part of the carbonate sedimentology community in Canada and internationally she was approached by SEPM and CSPG members to co-chair the third Eric Mountjoy Carbonate Research Conference. Having had the pleasure of meeting Dr. Mountjoy and his wife Anita at a Bathurst conference back in 2007, she jumped at the opportunity and worked over the course of several years with a wonderful committee who ended up planning and executing two conferences, one virtual in 2021 and one in person in 2022.

DAVID HILLS Dave’s love of geology started on trips to the south coast of England from his otherwise geologically unimpressive home in South London. After a classic geologist miss-step of ‘starting an engineering degree, only to find he was terrible at maths and liked rocks better’, he moved back to the south coast to study Geology with Oceanography at Southampton University. Dave moved to Edmonton to continue his studies with Dr. Brian Jones, to find out on his first day that he was now something called a ‘carbonate geologist’ and would be going to Grand Cayman to study modern lagoonal systems. From that moment he was hooked. Dave joined the CSPG soon after arriving in Calgary to work in the oil industry and has found it to provide for every mentorship need and resource for a new scientist, as well as

many good friends. Dave has volunteered in several spots through the years, he was chair of the Calendar Committee for the same years he won best calendar photo*. Along with Eva Drivet, David has supported the CSPG/ CEGA Student Industry Field Trip for over 10 years with their carbonates core lab, and more recently, Dave has been working on the new Atlas as Graphics and Marketing Lead, in addition to a committee member for the first stage of the societies rebrand. Being part for the Mountjoy conferences has been a massive highlight of his volunteer career, thanks to the relationships forged with the committee over three interesting (COVID) years and the warm and welcoming attendees of the in-person 2022 Mountjoy meeting. * Not really.

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2022 H.M. HUNTER AWARD

DON KEITH

Don earned a B.Sc. (Honours) from the University of Alberta and an M.Sc. from McMaster University studying the Cardium formation in the Willesden Green Field, Alberta. He has had the opportunity to work with several exploration companies on assets across Western Canada, the United States, South America, and North Africa and has published on Cardium and Mannville sedimentology and stratigraphy; including how Cardium facies influence horizontal drilling, completions and well performance. He is currently Geological Lead, Alberta for Saturn Oil and Gas in Calgary. Don Keith began volunteering with the CSPG while a graduate student, initially running the slide projector at several CSPG conferences in Calgary. It was a great opportunity to attend conferences while on a student budget and meet many, many new friends early in his career. After receiving the CSPG Link Award in 1987 for a CSPG Luncheon Talk based on his M.Sc. Thesis (which received Honorary mention from the CSPG Thesis Award Committee) Don joined the CSPG Link Award Committee in 1988 and 1989. The CSPG provided the opportunity for Don to present his study to six Universities in Atlantic Canada, six Universities in Ontario and four Universities in Alberta and Saskatchewan in 1988 and 1989. He was active in many CSPG Conventions and Specialty Conferences which included Poster Session Chair for the 1987 Second Intl. Symposium Devonian System Core and Poster Displays Chair for the 1988 CSPG Sequences, Stratigraphy and Sedimentology Conference, Technical Displays Committee Member for the 1989 Tidal Sedimentology Conference, Technical Displays Committee Chair for the 1990 CSPG Conference, SEPM Field Trip Committee

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Chair for the 1992 CSPG/AAPG Conference and Technical Program Co-Chair for the 1996 CSPG Conference Pools ’96. He also served on the AAPG House of Delegates from 1989-1992 and the AAPG Distinguished Lecturer Committee from 1993-1997. Don served on the CSPG Executive Committee as Secretary in 1990, commuting from his then home in Edmonton, while working with the Alberta Geological Survey. The opportunity to work on the Executive Committee with many terrific members including Ed Klovan, then President, and Jim MacDonald then Vice President, was a memorable experience. He joined the CSPG Graduate Thesis Award Committee in 1993 and remained on the Committee for the next thirteen years. Involvement in the Thesis Award Committee provided lots of interesting reading and lively discussion with Les Eliuk, Andre Chow and other members. From 1994 to 1996 Don was Co-Chair of the CSPG Technical Luncheon Committee, a role he held previously with the Edmonton Geological Society. In 1997 Don joined Ashton Embry and Jack McMillian on the CSPG Honorary Member Committee, a role he continues to the present. Working with the late Jack McMillian and continuing to work with Ashton, later joined by Ian McIlreath, Alice Payne and more recently Shelley Leggitt, has been a very rewarding experience to recognize the contributions of outstanding members of our great Society and geological community. For his volunteer work, the CSPG has previously presented Don with numerous Volunteer, Service and a Tracks award over the years. The friendships, contacts, and shared positive experiences with so many colleagues have and continue to make volunteering with the CSPG more than a rewarding experience.

2022 H.M. HUNTER AWARD

DAVID GARNER REGISTERED PROFESSIONAL GEOPHYSICIST (APEGA)

As a CSPG volunteer, David served for over 20 years combined as chairman, then co-chair on the various incarnations of the CSPG Geomodeling Technical Division committee. In 1994 when he volunteered, the division name was the GeoMathematics and Computer Science (GMCA) Division. He took on the committee chair role around 1996. As technology focus evolved, the committee changed the name to the Geomodeling Division. In recent years the name was changed to the Geological Modeling and Analytics Division to cover the broad data analyses required of integrated subsurface modeling. In conjunction with the technical division, David was convener and conference chairman jointly organizing three CSPG Gussow (International) conferences with broad support from the CSPG office staff. The conferences were the Closing the Gap I, II, and III: Advances in Geomodeling for Petroleum Reservoirs held successively in 2011, 2014, and 2018. David was co-editor of the special edition December 2015 BCPG on Geomodeling Advances and the 2013 CSPG Memoir 20. One additional society role was to serve on the executive board for a term as CSPG Finance Chair. He has published and presented over 25 papers through different societies. David Garner has had more than 35 years of technical experience in industry with most of his career in applied geostatistical and

geomodelling studies in petroleum and mining. After a geophysics degree from Washington and Lee University and a masters from Cornell University, he began his early career with Chevron in Houston, New Orleans, and Calgary. This was a solid 12 years of grounding for the petroleum industry. As luck would have it in 1995, David transitioned into his own company TerraMod Consulting and partnered with the French technology companies Beicip-Franlab and Geovariances. He was president of TerraMod Consulting for 6 years applying geostatistics and geomodeling techniques mainly for large, mature international reservoir studies, mature Canadian development projects, and exploratory gold mining resources. This consulting experience set him up later in his career to be an impactful modeler as he switched back to being on staff at various major companies while continuing to be actively involved in the international geostatistical community. He focused on oilsands development as a Reservoir Characterization Specialist at ConocoPhillips Canada, and then a Senior Advisor Geologic Modeling for Chevron Canada Resources. He was a corporate specialist in Equinor’s Unconventionals R&D and Heavy Oil Technology Centre. He held a position in Halliburton as a Chief Scientist in R&D. As a semi-retirement entertainment, he presented training courses in many locales, but is now engaged in enjoying retirement life.

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2022 CSPG GRADUATE STUDENT THESIS AWARDS

BEST Ph.D. THESIS Regional Diagenesis and Fluid Flow Study of the Early Triassic Montney Formation as Related to H2S Generation.” Her Ph.D. research project was conducted in the framework of a joint collaboration between the University of Calgary under the supervision of Dr. Per Pedersen and Drs. Hamed Sanei and Omid Haeri Ardakani from Natural Resources Canada - Geological Survey of Canada - Calgary (GSCC).

MASTANEH LISEROUDI

The funding for her research project was provided by Natural Resources Canada’s Geoscience for New Energy Supply (GNES) program and industry sponsors of the Tight Oil Consortium (TOC). Currently, Mastaneh is a Postdoctoral Research Scientist at the GSCC and has been leading the caprock integrity research study of the Carbon Capture, Utilization, and Storage (CCUS) project since January 2022. She has recently been involved in the GSCC’s Underground Hydrogen Storage project as a collaborator as well. The central objective of Mastaneh’s Ph.D. thesis was to better understand how diagenetic processes controlled sulfate (anhydrite, barite), sulfide (H2S, pyrite) and carbonate (calcite, dolomite) generation in the Montney Formation of the Western Canadian Sedimentary Basin (WCSB; Fig. 1a-b). The Early Triassic Montney Formation is a world-class

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unconventional tight gas, and hydrocarbon liquids play. It is a siltstonedominated reservoir with a complex diagenetic history, deposited on a clastic ramp in a collisional retro-foreland basin. To achieve the objective of the thesis, Mastaneh used a regional Montney Formation core sample set from twelve wells in western Alberta (WAB) and northeast British Columbia (NEBC) in the Peace River region (Fig.1b) and studied them by integration of detailed petrographic observations (optical, scanning electron microscopy-SEM, energy dispersive X-ray spectroscopy-EDXS, and SEM-Cathodoluminescence-CL), and bulk and micro-scale, high-resolution stable isotope, and strontium isotope geochemistry. The following research questions were addressed in three body chapters of her thesis:

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1(a) Location of the Western Canadian Sedimentary Basin (WCSB) and the study area on Canada’s map. 1(b) Montney subcrop and outcrop map (modified after Edwards et al., 1994) with the location of the studied wells in NEBC (numbered orange circles) and WAB (numbered blue circles).

What were the major source(s) of sulfur for the generation of anhydrite, barite, H2S, and pyrite? (2) What were the dominant diagenetic events and major geological, geochemical, and structural controls of their formation? (3) What were the major H2S-generating mechanism(s), and if the present-day produced-gas H2S was produced in-situ or migrated from other strata in the basin? (4) What was the timing of H2S generation in or migration into the Montney Formation? (5) Was there a relationship between the distinctive pyrite phases and regional distribution of H2S? (6) If the isotopic signatures of deep burial diagenetic pyrite with the parent H2S of thermal sulfate reduction origin (TSR-derived H2S) can be used to investigate the paleodepositional environment of the Montney Formation, and (7) What were the main sources of carbon, oxygen, calcium, magnesium, and iron, and the main fluid flow systems governed calcite and dolomite cementation in the Montney Formation? All chapters of Mastaneh’s Ph.D. thesis have been published in the peer-reviewed journals of Marine and Petroleum Geology (2020, 2022), Journal of the Geological Society of London (2021) and the review open file report of Natural Resources Canada – Geological Survey of Canada (2022).

This Ph.D. study revealed that in addition to early anhydrite sourced from the Montney modified pore water, the Montney Formation contains late fault- and hydrothermally-controlled anhydrite and barite cements (Fig. 2a-d) in the western Alberta section of the Montney Formation originated from the dissolution of underlying Devonian evaporites. Diagenetic fluids responsible for the generation of these cements were controlled by both Montney pore water and Devonian evaporites, and extensively interacted with basement and siliciclastic rocks in the basin. This study also highlighted the open-diagenetic setting of the Montney Formation in WAB, controlled by deep-seated fault/fracture networks that facilitated the incursion of Precambrian basement- and Devonian-sourced hydrothermal sulfate-rich brines to the Montney Formation (Fig. 3). At least three types of framboidal, recrystallized and coalesced pyrite, formed during early to late stages of diagenesis are present in the Montney Formation. The petrographic observations and isotope geochemical data of anhydrite, barite, pyrite and H2S gas elucidate the involvement of both microbial and thermochemical sulfate reduction (MSR-TSR) processes in the diagenetic evolution of the sulfur cycle in

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2(a) Photomicrograph of authigenic quartz crystals (A-Qtz) enclosing minute remnants of early anhydrite and pyrite crystals, (UWI: A-036-G/093-P-01/0, 3753.33 m, XPL). 2(b) EDXS image of late poikilotopic anhydrite cement enclosing quartz, feldspar, and dolomite detrital grains and authigenic cement with superimposed S, Na, K, Si, and Mg X-ray response (UWI: 01-32-070-09W6/0, 2549.03 m). 2(c) Photomicrograph of late fracture-filling and pore-filling poikilotopic anhydrite cement formed in the vicinity of the fracture (UWI: 01-32-070-09W6/0, 2547.33 m, XPL). 2(d) EDXS image of late pore filling barite (Ba X-ray response) cement filling available pore spaces and enclosing dolomite, K- and Na-Feldspar, and quartz in this sample. Elements are the same as b (UWI: 04-19-077-10W6/0, 2140.40 m). (Abbreviations: Anh: anhydrite, BRT: Barite, Py: pyrite), Montney Formation-NEBC and WAB.

this formation. H2S gas in the Montney Formation is of both in-situ and migrated nature, with predominate in-situ H2S of TSR origin (Fig.4). In-situ generation of H2S was mainly controlled by the dissolution of early, and late anhydrite, and influx of hydrothermally-driven Devoniansourced sulfate-rich brines. Higher H2S concentrations in western Alberta coincide with the presence of late anhydrite and barite cements, deep-rooted faults, and hydrothermal activities in western Alberta. Based on the findings of this study, the sulfur isotope composition of burial diagenetic pyrite is altered and accordingly is representative of the isotope signature of their local diagenetic setting, not the original depositional environment. Hence, the d34S values of these types of pyrite are not effective proxies to track the evolution of global sulfur cycle and reconstruct paleoenvironmental conditions. Petrographic and SEM observations verified the occurrence of at least three generations of calcite (C1-C3) and four generations of dolomite

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(D1-D4) cements precipitated during early to late diagenesis equivalent to shallow to deep burial of the Montney Formation. The d18O and δ13C values and the highly radiogenic 87Sr/86Sr isotope values of calcite and dolomite cements measured in this study suggest diagenetic modification of the Montney Formation pore water through extensive water/rock interaction with hot basinal brines, Precambrian metasediments, and siliciclastic intervals in the basin. Based on the interpretation of isotopic results reported in this Ph.D. research, the evolution of diagenetic fluids of the Montney Formation was dominated by both intraformational and cross-formational fluid movements through the main processes of MSR, TSR, fluids mixing, and water/rock interaction. The intraformational fluid flows include the modified Montney Formation pore water and internal migration of H2S from deeper to shallower sections within the Montney Formation. The cross-formational (basin-scale) fluid flows are comprised of hydrothermal, tectonically- and topography-driven fluid

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Conceptual cross-section of the study area in WAB and NEBC showing the location of the extensional faults and hydrothermal fluid flow path in WAB. The stratigraphy is compiled from the Geological Atlas of the Western Canadian Sedimentary Basin (Mossop and Shetsen, 1994), and Davies et al., (1997, 2018). The location of extensional faults (Precambrian basement faults and DCGC) and their continuation up to the Triassic (Montney Fm.) in the Peace River Region are compiled from Edwards and Brown, (1994), and Hope et al., (1999).

Schematic illustration of the sulfur cycle during different stages of diagenesis and redox reactions realms (modified after Canfield, 2001a; Amrani, 2014; Jiang et al., 2020) with a focus on the Montney Formation. The red arrows in the microbial sulfate reduction (MSR) realm show that MSR process dominantly contributed to the H2S and framboidal and recrystallized pyrite formation in the Montney Formation. Temperature range for TSR (100 to 220°C) is from Worden et al., (1998) and Jiang et al., (2014). MSO: microbial oxidation of sulfide; MSD: microbial disportionation of sulfide; OSCs: organic sulfur compounds; OM: Organic Matter; Py-F: pyrite-framboid; Py-R: recrystallized pyrite; Py-CO: coalesced pyrite.

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flows controlled by the emplacement of Cordillera thrust sheets during Columbian and Laramide orogenies, as well as external migration of H2S into the Montney Formation (Fig. 5). In her Ph.D. thesis, Mastaneh showed how the incorporation of sedimentology, diagenesis, structural geology, stratigraphy, and isotope geochemistry can help better understand the fundamental processes controlling the formation of H2S and accordingly predict H2S occurrence at undrilled prospects. This helps mitigate the detrimental economic, environmental, and health effects of H2S. Mastaneh’s research also demonstrated the significance of the application of integrated approaches of detailed petrographic observations, and micro-scale, high-resolution isotope analysis to the study of global sulfur cycle and paleoenvironmental reconstruction, and diagenetic paleofluids flow.

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Schematic cross-section of the study area in WAB and NEBC with the illustration of potential fluid flow systems (tectonically-induced and topography-driven; e.g., Garven, 1995; Machel and Cavell, 1999), and faults-controlled hydrothermal fluid flow (Liseroudi et al., 2020) contributed to the diagenetic fluid evolution of the Montney Formation. For the purpose of simplicity, fluid flow driven by erosional rebound is not shown on this cross-section.

A copy of the thesis can be downloaded at:

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DOWNLOAD THESIS

REFERENCES Liseroudi, M.H., (2021). Regional Diagenesis and Fluid Flow Study of the Early Triassic Montney Formation as Related to H2S Generation. Ph.D. thesis, University of Calgary, 209 pp. Liseroudi, M.H., Ardakani, O.H., Pedersen, Sanei, H., (2022). Fluid flow and water/rock interaction during the Early Triassic evolution of the western Canada sedimentary basin as revealed by carbonate diagenesis. Marine and Petroleum Geology 142, 105765. https://doi.org/10.1016/j. marpetgeo.2022.105765. Liseroudi, M.H., Ardakani, O.H., Pedersen, P.K., Stern, R.A., Wood, J.M., Sanei, H., (2022). Diagenetic and geochemical controls on H2S distribution in the Montney Formation, Peace River Region, Western Canada. In: Ardakani, O.H., Pedersen, P.K., (Eds.), Hydrogen sulfide (H2S) in the Montney Formation, Western Canada Sedimentary Basin (WCSB) -

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investigating a complex issue. The Geological Survey of Canada open file report # 8878, 14-24. https://doi.org/10.4095/329782. Liseroudi, M.H., Ardakani, O.H., Pedersen, P.K., Stern, R.A., Wood, J.M., Sanei, H., (2021). Microbial and Thermochemical Controlled Sulfur Cycle in the Early Triassic Sediments of the Western Canadian Sedimentary Basin. Journal of the Geological Society 178, jgs2020-175. https://doi. org/10.1144/jgs2020-175. Liseroudi, M.H., Ardakani, O.H., Sanei, H., Pedersen, P.K., Stern, R.A., Wood, J.M., (2020). Origin of Sulfate-rich fluids in the Early Triassic Montney Formation, Western Canadian Sedimentary Basin. Marine and Petroleum Geology 114, 104236. https://doi.org/10.1016/j. marpetgeo.2020.104236.

2022 CSPG GRADUATE STUDENT THESIS AWARDS

Ph.D. THESIS Honourable Mention Sedimentology, Stratigraphy and Reservoir Characterization of the Late Devonian Duvernay Formation of the East Shale Basin: An Integrated Outcrop and Subsurface Study"

HENRY GALVIS PORTILLA

Funding for this research was provided by industry sponsors of the Tight Oil Consortium (directed by Dr. Chris Clarkson), as well as by research grants from the American Association of Petroleum Geologists (AAPG Grants-in-aid program) and the Geological Society of America (GSA). Access to drill cores and log data was provided by Raging River Exploration (now Baytex Energy), Crescent Point Energy, Geologic Systems (Geoscout), and the Alberta Energy Regulator (Core Research Centre). Henry received graduate scholarships from the University of Calgary in 2019 and 2020, and was the recipient of the “2021 Geoconvention - Best Student Oral Presentation”. Henry holds previous degrees in geology from the University of Oklahoma (MSc, 2017) and the Universidad Industrial de Santander in Colombia (BSc, 2012), and is currently working as an Associate on the Intelligence team at Enverus in

Calgary where he integrates geology, well performance, and economics to evaluate unconventional shale assets. Henry’s PhD project focuses on the Duvernay Fm. of the East Shale Basin, where basinal organic-rich strata accumulated adjacent -coevally- to the Leduc reef buildups (Figure 1). Sedimentological and stratigraphic analysis of core data from this area suggested that carbonate margins provided not only carbonate detritus but also could have controlled the extent of bottom-water anoxia, sediment transport pathways, and diagenetic reactions within basinal deposits. Because of their vast presence in Duvernay cores, a lithological feature that caught Henry’s attention early in his research included the wide array of carbonate beds interbedded with the organic-rich mudstones. These carbonate beds often exceed 50% of the Duvernay gross thickness and may comprise

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A) Studied outcrop located in southwest Alberta showing the interfingered relationship between a reef buildup and off-reef ‘basinal’ deposits of the Perdrix Fm. B) Comparison between surface and subsurface lithostratigraphic nomenclature according to McLean and Klapper (1998). The Perdrix Fm. is the equivalent interval in age and lithology to the subsurface Duvernay Fm.

Facies stacking patterns and their corresponding interpretation of relative sea-level. Stratigraphic column is a composite measured outcrop section of the Perdrix Fm. Three main cycles of 3rd or 4th order are comprised by transgressive-to-highstand intervals. Overall, each cycle consists of Facies association FA2-FA1 in its lower half, followed upwards by facies associations FA4-F3.

a combination of coarse breccia beds, calciturbidites, hardgrounds, bioturbated horizons, and nodular limestones; with most of these beds being near impossible to differentiate with traditional wireline logs. Thus, to better understand sedimentary facies and their reservoir potential in the Duvernay Fm., outcrops were utilized to characterize depositional models of organic-rich mudstones when these are influenced by adjacent -contemporaneous- reef margins. In this research, detailed outcrop studies supplemented the limited core coverage from reef-to-

basinal settings in the subsurface. The studied outcrop approximates in age and lithology the relationship between the Duvernay Fm. and the Leduc Reef, and spectacularly provides a ‘seismic-scale’ exposure of a carbonate buildup interfingered with basinal deposits (Figure 1). Thus, motivated by the ability to constrain subsurface models with outcrop observations and building upon the great body of literature from the Late Devonian of Western Canada, this research provides new insight into the depositional processes, stratigraphic architecture, and reservoir

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Depositional model of reciprocal sedimentation interpreted for the Perdrix Fm./Duvernay Fm. Generally, basin restriction is more prevalent during transgression due to the bathymetric barriers set by the reef structures. During highstands, transported carbonates from the reefs accumulate in deeper areas, interbedded with the black mudstones.

quality of organic-rich deposits when these are influenced by adjacent carbonate reef margins. From detailed description of well cores and outcrops, fifteen facies grouped into six facies associations (FA1 to FA6) were recognized and illustrate the effects of hydrodynamic, biogenic, and diagenetic mechanisms. These facies are representative of the entire Duvernay Fm. (Perdrix Fm.), and parts of its under- and overlying units, including the Cooking Lake Platform (Cairn/Flume Fms.) and Ireton Fm. (Mount Hawk Fm.). Further, analyses of facies stacking patterns and their lateral variability across the reef buildup-to-basin margin revealed two distinct orders of stratigraphic cyclicity. The small-scale cycles are parasequences either dominated by background sediments or by redeposited material. The stacking of these parasequences allows the interpretation of transgressive-to-highstand cycles of 3rd to 4th stratigraphic order (Figure 2). The interpretation of relative sea-level changes across the basinal settings shows that depositional environments were strongly controlled by the evolution of the adjacent carbonate reef buildup. Overall, during transgression, the backstepping buildup margin formed bathymetric barriers and promoted the accumulation of organic-rich mudstones in the off-reef settings. During highstands, the accumulation and preservation of organic material was minimal due to dilution and destruction from the allochthonous reef material (Figure 3). However, at the small-scale cyclicity, it can also be noted that not only the carbonate debris but also the early calcite cementation may dilute the organic material, especially in the transgressive system tract. Further, stratigraphic evidence from basinal deposits of the Mount Hawk Fm.

(Ireton equivalent) and the carbonate buildup allows to interpret that a combination of rapid sea-level rise and increase of terrigenous supply could have been the main factors leading to the shut-down of the in-situ carbonate factory in the buildup. The elevated amounts of siliciclastic terrigenous material near the base of the Mount Hawk Fm. coincides with the latest stages of buildup growth (Figure 3). Lastly, from the comparison of sedimentary processes with pore network characteristics (measured in the laboratory), this research evaluates petrophysical properties according to variations in depositional facies. For the Duvernay Fm., rock qualities such as relative high porosity and permeability display a positive correlation with increased amounts of silt-sized grains of detrital origin, whereas lower porosity and lower permeability correlates with increased amounts of pore-filling calcite cements. Generally, mudstones of the Duvernay Fm. comprise a hybrid siliciclastic-carbonate system with calcite as the primary driver of lithological and petrophysical heterogeneity. For this research, the expression of optimal reservoir parameters consists of sub-meter alternations between organic-rich and calcite-rich (organic-poor) intervals. The organic-rich beds are more representative of low-energy pelagic sedimentation and provides enhanced interparticle porosity and organic contents, whereas the calcite-rich facies provide brittleness for fracture development and typically represent more agitated conditions recorded by coarser bioclastic packstone to grainstone textures. Overall, observations and results presented in this thesis can be utilized to improve our ability to predict distribution of reservoir qualities that are dependent on facies and stratigraphic variability.

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2022 CSPG GRADUATE STUDENT THESIS AWARDS

BEST M.Sc. THESIS Tectono-stratigraphic Model for the Early Evolution of the Late Cretaceous Nanaimo Group: Georgia Basin, British Columbia, Canada

KRISTIAN GIROTTO

Forearc basins display complicated and variable stratigraphic architectures and evolution styles, as a result of unique tectonic settings, coeval or post depositional deformation, and/or erosion. The complex stratigraphy of forearc sedimentary successions has necessitated the use of simple lithostratigraphic and/or biostratigraphic frameworks and nomenclature (Takashima et al., 2004; Aksoy et al., 2005; Huang et al., 2019, 2022) to correlate disconnected and structurally deformed outcrops. Recent investigations employ detrital zircon (DZ) geochronology in conjunction with field-based outcrop mapping in resolving geologic problems within forearc basins, due to the abundance of contemporaneous DZ sourced from the active arc (Cawood et al., 2012).

nonconformity and formations (Fm) are based on lithostratigraphic characteristics/grain size alternations, macrofaunal content and on their position relative to the basal nonconformity and to each other (Mahoney et al., 1999; Huang et al., 2019, 2022; Kent et al., 2020). As a result, formations comprise strata that are neither temporally nor genetically related. This outcrop-based study integrates facies analysis, biostratigraphy and maximum depositional ages (MDAs) derived from DZ to asses the depositional architecture, facies relationships, and temporal/stratigraphic equivalency of lower Nanaimo Group strata between the Comox and Nanaimo SBs, and establishes a new framework for the lower Nanaimo Group.

The Late Cretaceous Nanaimo Group is a coal-bearing siliciclastic succession that was deposited into the NW-SE trending Georgia Basin (Fig. 1), and is dominantly exposed in western BC, Canada.

The major contributions of this thesis include: i) the establishment of a revised stratigraphic framework for the lower Nanaimo Group that demonstrates the complexity of forearc basins caused by basement paleotopography and syntectonism; ii) demarcation of two spatially and chronologically distinct coal-bearing fields, separated by a regional transgression; and iii) the identification of a pair of long-lived submarine canyon systems that are proposed to have routed sediment into the Paleo-Pacific ocean.

Nanaimo Group deposition is interpreted to extend from the Early Turonian to Paleocene (McLachlan & Pospelova, 2021) based on biostratigraphic zonation, although biostratigraphic ages are poorly constrained due to a paucity of dateable and interstratified igneous rocks (Ward, 1978; Mustard, 1994). The Nanaimo Group records the initiation and evolution of a forearc basin and is separated into two dominant outcrop regions, the Comox and Nanaimo sub-basins (SBs). The lithostratigraphic frameworks describing the Nanaimo Group ignore the effects of paleotopography on the basal

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A sequence stratigraphic framework for the Nanaimo Group in the northern Comox SB (Kent et al., 2020) was extended temporally and spatially into the Nanaimo SB (Fig. 1). Key outcrop sections logged along depositional strike were used to create composite sections

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Overview of the main Georgia Basin sub-basins (SB) and outcrops. The Nanoose Uplift separates the Comox SB (northwest) from the Nanaimo SB (southeast), and its approximate axis is demarcated by the dashed black line. The bases of the 11 outcrop and core sections in cross-section A–A’ are marked with green dots and major regional faults are demarcated by dashed blue lines.

(CS). Composite datums were employed to correlate stratal packages across the Georgia Basin and to identify major depositional phases (Fig. 2). Diachroneity, lateral pinchouts, and rapid changes in facies and architectural elements observed in the lower Nanaimo Group record a complex depositional history of shifting depocenters and probable syndepositonal tectonism (Fig. 2). Paleogeographic reconstructions during the early evolution of the Georgia Basin are illustrated in a series of maps (Fig. 3), and the stratigraphic interval to which these maps correspond is shown in Figure 3. The first Comox Fm interval (~90-85 Ma, Fig. 2 and Fig. 3A) displays basal coarse grained & restricted fluvial deposition in topographic lows followed by the development of regional coal-bearing coastal plain & swamp deposits in Comox SB. The Nanoose Uplift region and most of the northern Nanaimo SB acted as a topographic highland that separated the Comox and Nanaimo SBs with no equivalent deposits being observed (Fig. 3A). The second Comox Fm interval records transgression and seaway development in the central Comox SB from ~85-84 Ma (Fig. 2 and Fig. 3B), with an apparent sediment source in the NW. Additionally, terrestrial sediments begin to be deposited in the northern Nanaimo SB, with the entire Georgia Basin experiencing an increase in the amount of marine influence. A major regional transgressive interval is represented by the Haslam Fm (~84-83 Ma, Fig. 2 and Fig. 3C) during which the Nanoose Uplift and both SBs were fully submerged and amalgamated, with marine conditions and turbidites observed throughout the Georgia Basin. It is during or after this interval that two sediment routing systems are thought to have been established, coined the Qualicum and Cowichan canyons (Fig 3C). Based on the stratigraphic architectures observed these systems are interpreted to have routed sediment out of the Georgia Basin

for the remainder of lower Nanaio Group deposition and were likely tectonically-induced rather than being formed through base-level fall. The Extension and Pender Fms (~84-83 Ma, Fig. 2 and Fig. 3D) display a distinct change from the deeper marine conditions of the Haslam Fm, with the region around the Nanoose Uplift becoming emergent again. This island configuratation (Fig. 3D) is interpreted to be the result of syntectonic uplift (possibly along similar faults that may have caused the formation of the Qualicum and Cowichan canyons). Deposition of coarse grained fluvial and coal bearing coastal plain deposits occurred on the Nanaimo and Englishman rivers (See NR and ER acronyms, Figs. 1-3), while the rest of the basin was characterized by marine conditions with subordinate turbidite systems (Fig. 3D). The presence of terrestrial strata overlying distal marine deposits suggest two possible disconformities within the succession (DC2 and 3, Fig. 2). This interval represents a less laterally extensive, secondary pulse of coal-bearing clastic sedimentation that is genetically and temporally distinct from the underlying Comox Fm deposits. The final formation investigated in this project is the Protection Fm (~8180 Ma, Fig. 2 and Fig. 3E), which also records the last paralic/terrestrial deposits in the Nanaimo Group. The Nanoose Uplift region during this period was characterized with more transgressive deposits such as deepening-upwards sequences (Jones et al., 2018) while the Qualicum/ Cowichan canyons and the rest of the Georga Basin experienced turbidite and marine conditions. Transgression is interpreted to have resulted from regional subsidence caused by tectonism, which resulted in the emergent Nanoose Uplift exhibiting diminished topography before the eventual drowning of the entire basin during the deposition of the upper Nanaimo Group. This thesis provides a revised stratigraphic framework for the lower Nanaimo Group and demonstrates the utility in combining DZ methods

RESERVOIR ISSUE 3 • MAY/JUN 2023

39

FIGURE

2

Schematic cross-section of the lower Nanaimo Group in the Comox and Nanaimo SBs with SB specific litho-formation names shown on their respective sides of the cross section. The line of section A–A’ is shown in Figure 1. The position of DZ samples and fossils that provide age controls are shown as red stars and purple circles, respectively. Comox SB stratigraphy (QC, OR, BR, DC, TR) is adapted from Kent et al. (2020). Corresponding stratigraphic intervals for each paleogeographic figures (Figure 3) are displayed on the left of the cross-section

with outcrop-based field methods within structurally deformed basins. The Georgia Basin provides a reasonable analogue for the evolution of forearc basins globally, wherein isolated terrestrial depocentres become progressively drowned during transgression, before experiencing rapid subsidence due to changes in the tectonic regime. This overall transgressive succession can be interrupted by the effects of

syntectonism, reflected by renewed periods of hydrocarbon-bearing and coarse-grained sedimentation caused by rapid uplift or alternatively, the establishment of long-lived sediment conduits. Kristian’s thesis is available for download from:

DOWNLOAD THESIS

REFERENCES Aksoy, E., Türkmen, I. and Turan, M. (2005) Tectonics and sedimentation in convergent margin basins: An example from the Tertiary Elaziǧ basin, Eastern Turkey. J. Asian Earth Sci., 25, 459–472. Huang, C., Dashtgard, S.E., Kent, B.A.P., Gibson, H.D., Matthews, W.A., 2019. Resolving the architecture and early evolution of a forearc basin (Georgia Basin, Canada) using Detrital Zircon. Scientific Reports 9 (15360). Huang, C., Dashtgard, S.E., Haggart, J.W. and Girotto, K. (2022) Synthesis of chronostratigraphic data and methods in the Georgia Basin, Canada, with implications for convergent-margin basin chronology. Earth-Science Rev., 231, 1–25. Jones, M.T., Dashtgard, S.E. and MacEachern, J.A. (2018) A Conceptual Model For the Preservation of Thick, Transgressive Shoreline Successions: Examples from the Forearc Nanaimo Basin, British Columbia, Canada. J. Sediment. Res., 88, 811–826. Kent, B.A.P., Dashtgard, S.E., Huang, C., MacEachern, J.A., Gibson, H.D. and Cathyl-Huhn, G. (2020) Initiation and early evolution of a forearc basin: Georgia Basin, Canada. Basin Res., 32, 163–185. Mahoney, J.B., Mustard, P.S., Haggart, J.W., Friedman, R.M., Fanning, C.M. and McNicoll, V.J. (1999) Archean zircons in Cretaceous strata of the western Canadian Cordillera The “Baja B.C.” hypothesis fails a “crucial test.” Geology, 27, 195–198. McLachlan, S.M.S. and Pospelova, V. (2021) Dinoflagellate cyst-based paleoenvironmental reconstructions and phytoplankton paleoecology across the Cretaceous–Paleogene (K/Pg) boundary interval, Vancouver Island, British Columbia, Canada. Cretac. Res., 126, 104878. Takashima, R., Kawabe, F., Nishi, H., Moriya, K., Wani, R. and Ando, H. (2004) Geology and stratigraphy of forearc basin sediments in Hokkaido, Japan: Cretaceous environmental events on the north-west Pacific margin. Cretac. Res., 25, 365–390.

40 R E S E R V O I R I S S U E 3 • M A Y / J U N 2 0 2 3

FIGURE

3

Paleogeographic reconstructions of the Georgia Basin exposed in BC, Canada during: (A): ~90-85 Ma - Benson & Cumberland Mbrs of the Comox Fm, (B): ~85-84 Ma - Dunsmuir Mbr of the Comox Fm, (C): ~84-83 Ma – Haslam Fm, (D): ~83-81 Ma – Extension and Pender Fm’s, (E): ~81-80Ma – Protection Fm. The trace (or ocation) of each composite section or core log is shown as a pink line (outcrop) or dot (core). Historical paleocurrent directions are displayed as black arrows, potential directions displayed as dashed black arrows.

RESERVOIR ISSUE 3 • MAY/JUN 2023

41

2023 UPCOMING EVENTS INFORMATION May 12th

VISIT

Friday | 7:30 pm MST

Paleontology Technical Division Depositional History and Paleoecology of the Calf Creek Locality (Cypress Hills Formation) in southwestern Saskatchewan, Canada: reconstructing environmental shifts during the Eocene-Oligocene transition.

UPCOMING EVENTS

Speaker: D r. Meagan Gilbert, Saskatchewan Geological Survey, Regina Saskatchewan Location: Mount Royal University, Room B108

May 13th Saturday

Field Trip

MAY May 4th

Thursday | 12:00 pm - 1:00 pm MST

Jura Creek Field Trip: The Drowning Unconformity and Anoxic Sediments at The Devonian-Carboniferous Boundary

Online Only

Structural Technical Division The influence of mobile salt and mechanical stratigraphy on basin-inversion structures in the Danish North Sea Speaker: Torsten Hundebøl Hansen

Leader: D r. Pavel Kabanov, Geological Survey of Canada Location: Jura Creek, Near Exshaw AB

May 17th

Wednesday | 11:30-1:00 pm MST

Technical Luncheon Energy Transition

May 11 & 12th

Thursday & Friday | 8:30 – 4:00 pm MST

Core Conference Location: A lberta Energy Regulator Core Research Center 3545 Research Way NW, Calgary AB T2L 1Y7

42 R E S E R V O I R I S S U E 3 • M A Y / J U N 2 0 2 3

Speaker: Pat Carlson, Kiwetinohk Energy Corp. Location: F airmont Palliser, Crystal Ballroom 133 9 Ave SW, Calgary, AB T2P 2M3

2023 UPCOMING EVENTS INFORMATION May 18th

Online + In Person

Thursday | 12:00 pm - 1:00 pm MST

GeoWomen 40 Years On - Reflections from the Oil Patch Speakers: Elizabeth (Liz) More, President, MORE Solutions Inc. & Sr. Geological Advisor, Catapult Water Midstream Location: C SPG Conference Room, +15 level, 540-5 Ave SW, Calgary AB

May 23-26th Tuesday – Friday

Course Geoscience New Hire Bootcamp Instructors: Jim Barclay, Martin Fowler, Brian Zaitlin, Amy Fox, Allison Gibbs, Kelly Skuce, Location: C SPG Conference Room, +15 level, 540-5 Ave SW, Calgary AB Alberta Energy Regulator Core Research Center 3545 Research Way NW, Calgary AB T2L 1Y7

May 24

th

JUNE June 1st

Online + In Person

Thursday | 12:00 pm - 1:00 pm MST

Structural Technical Division Exploring in the Western Canada Sedimentary Basin for Oil and Gas in Naturally Fractured and Weathered Precambrian Basement Speaker: Tako Koning

June 8th

Online + In Person

Thursday | 12:00 pm - 1:00 pm MST

Geothermal Technical Division Eavor-Europe™: Project Update on the First Commercial Eavor-Loop™ in Geretsried, Germany Speaker: Stephen Longfield, Manager Geosciences

June 14th

Wednesday | 12:00-1:00 pm MST

International Technical Division

Wednesday | 8:30 am – 4:30 pm MDT

Frontier Exploration in the Guyana-Suriname Basin: One Company’s Journey

Course

Speaker: Adam Flynn, Frontera Energy

Concepts of Industry Biostratigraphy: Introduction

Location: C SPG Conference Room, +15 level, 540-5 Ave SW, Calgary AB

Instructors: Thomas Demchuk, Petrostrat and Kimberley Bell, Petrostrat Location: C SPG Conference Room, +15 level, 540-5 Ave SW, Calgary AB

RESERVOIR ISSUE 3 • MAY/JUN 2023

43

The Blue View: Industry Trends Through Woodmac’s Lens NORTH AMERICA IN CONTEXT: OVERARCHING THEMES ACROSS THE INDUSTRY oil First 1. greenfield 2. River sands project Nations reach The first

Blueberry

since 2017 reaches FID

an agreement – what it means for the Montney

needs 3. market Haynesville Sinking gas DUCs

refinery 4. syncs expansion ExxonMobil

with Permian growth

5. freeze-offs but no market Record gas support

CANADA UPSTREAM:

The measures in the agreement include:

n IPC and Imperial kick off 2023 with a bang

• Cdn$200 million restoration fund by June 2025 to heal industrial disturbance

International Petroleum Corporation (IPC) and Imperial Oil announced two separate advancements at their respective in situ projects. IPC has operated the South Athabasca Blackrod Pilot project since 2017 and is moving forward with the 30,000 b/d Phase 1 development. The project has ultimate approval for 80,000 b/d. The phase is expected to cost US$850 million, with first oil in 2026. Imperial announced its plans to advance development of its Solvent Assisted - Steam Assisted Gravity Drainage (SA -SAGD) Grand Rapids project at Cold Lake in tandem with its Leming redevelopment project. Grand Rapids Phase 1 will start up in late 2023 and expects to add 15,000 b/d with Leming adding an additional 8,500 b/d of production. Blackrod Phase 1 marks the first greenfield development in the oil sands since Fort Hills and first in situ development since the JACOS (now Greenfire) Hangingstone Expansion, KNOC BlackGold and PetroChina MacKay River projects. In 2023, IPC is focusing on Blackrod, with a capital budget of US$287 million and an increased phase scale of 30,000 b/d versus previous expectations of 20,000 b/d. Ramp up in late2026/2027 is well after the additional pipeline export capacity added by TMX. We model a WTI-equivalent breakeven price of US$68/bbl for the commercial phase development. Imperial has been active in infill drilling and other work at Cold Lake targeting additional production, but the Grand Rapids expansion and the commercial implementation of SA-SAGD align with its emissions goals, in addition to supporting growth. CNRL has been producing from the Grand Rapids formation in the Cold Lake region for some time. n Blueberry River First Nations and BC Government

reach agreement on oil and gas development

The Province of British Columbia has reached an agreement with the Blueberry River First Nations (BRFN) that addresses the Supreme Court ruling in June 2021 on the infringement of Treaty 8 rights. The agreement is focused on the Blueberry claim area and will be implemented immediately.

44 R E S E R V O I R I S S U E 3 • M A Y / J U N 2 0 2 3

• Ecosystem-focused land use planning in culturally important areas • Limits of oil and gas activities and a new planning structure (land restriction/surface only, not production cap) • Old forest and trapline protections • Land protections in BRFN high-value areas, including 650,000 hectares, contributing to BC’s 30% land protection by 2030 goal • Wildlife co-management efforts, including moose management and population recovery • BRFN to receive Cdn$87.5 million over three years, with the potential for additional benefits from royalty revenue and revenue sharing from oil and gas • New framework and policies for resource development also covers areas important to other Treaty 8 Nations for practicing their treaty rights including Doig River, Fort Nelson, Halfway River, McLeod Lake, Prophet River, Saulteau and West Moberly First Nations WHAT IT MEANS: After a year and a half of uncertainty, the agreement provides a clear line of sight for development in the Montney. Operators have been positive on negotiations, and there have been a total of 308 well licenses granted since the ruling in June 2021, the lion’s share being issued in Q4 2022. We did not expect any material near-term impact to our forecast of Montney production, and we maintain that outlook with this agreement. There has been a shift to longer wells and other means to account for land disturbance requirements. We expect this will be even more important and prevalent going forward. Premier David Eby provided support for this assumption stating, “…the agreement is not a cap on production. It is a cap on land disturbance. The industry has to be innovative…”. Reviewing a map issued by the Province of BC detailing BRFN highvalue areas, it appears ConocoPhillips, Tourmaline, Canadian Natural, Petronas and Crew will be impacted. Several operators will see reduced well inventory in some highly prospective areas of the Montney. But the wider clarity provided on future development will lessen the pain.

US LOWER 48: n Sinking gas market needs Haynesville DUCs

THE FACTS: Henry Hub has been in free fall. The steady decline in monthly spot prices since last August has accelerated. Gas prices averaged US$5.53/mcf last December, fell to US$3.27 in January and then dropped again to US$2.38 in February. March 2023 spot prices look to average roughly the same, although prices dipped below US$2/ mcf this morning. Those prices are well below half-cycle returns for non-core acreage in the Haynesville and Marcellus, but the total gas-directed L48 rig count has been remarkably sticky. We’ve written before about how OFS tightness is playing into this calculus, with E&Ps fearful of not being able to find rigs later in the year if they terminate contracts now. Continually growing Permian supply and mild winter weather have propelled gas injection season to start at a large surplus. And although signs of demand response from economic coal-to-gas displacement are occurring, the market remains spooked. A sudden supply response to low gas prices may be necessary to avoid storage containment this summer.

OUR TAKE: There are a few avenues through which this response could occur: rig reductions, delayed completions, or shut-ins. Of the three options for a price-triggered response in the major gas basins, building drilled but uncompleted (DUC) well inventory is the most interesting to upstream players. A tight rig market will keep drilling activity propped up and marginal operating costs in dry gas plays are below US$1/mcf. All the while though, completion activity is proving the most expensive part of cost inflation and E&P should have the greatest incentive to flex that spending. DUCs rise in importance when there’s a mismatch in contract duration between rigs and completion crews. That’s indeed the case today, as the rig recovery has been more robust than pressure pumping growth. But a lengthy history of DUC drawdown (i.e. completing wells years after they were drilled) case studies has exposed the risks of letting wells sit idle while subsurface pressure regimes around them change. At some point though, the risk/reward balance tilts in favor of building DUCs. Of course this is dependent on the path of gas prices, with the market shifts to winter risk premiums. Is this gap enough to spark intentional DUC builds? We think so and are hearing strong murmurs of DUC planning from some of the Haynesville’s key investors.

RESERVOIR ISSUE 3 • MAY/JUN 2023

45

n ExxonMobil syncs Permian growth to refinery

expansion

THE FACTS: Last week, ExxonMobil announced the successful startup of its Beaumont refinery expansion project. The company’s new crude distillation unit adds 250,000 b/d of new capacity, representing the largest US refinery buildout in a decade. OUR TAKE: ExxonMobil began construction in 2019, although it reportedly considered expanding as early as 2014. As output from the new unit ramps up, the total processing capacity will exceed 630,000 b/d, which puts it among the largest refineries in the US. As a result, the company will enjoy high refining margins supported by its growing Permian supply. ExxonMobil emphasized that the Wink to Webster line (including a planned expansion to Beaumont) will link its own Permian assets and other Delaware supplies to the refinery. Our models assume that ExxonMobil’s Permian crude output will grow by more than 200,000 b/d over the next decade accounting for much of the increased capacity. The link between West Texas production and its downstream business reveals that ExxonMobil’s Permian growth commitments are more than just attention-grabbing targets. Instead, these milestones are part of its integrated strategy. Using Permian crude as a feedstock for transportation fuel refining provides the company with a natural hedge against low oil prices and leverage to negotiate for beneficial transport contracts.

n Record gas freeze-offs but no market support

We’ve been tracking gas freeze-offs closely this winter, utilizing data from WoodMac’s short-term analytics (Genscape) group. Multiple intense winter storms pushed freeze-off losses to near-record volumes last month. And in early March, cumulative freeze-offs set a new 10-year record. The 151 bcf lost from the market this winter season is 5 bcf more than cumulative freeze-off volumes from the Winter Storm Uri time series of 2020-2021. Quickly growing gas production from the Permian and Haynesville last year tied to greater absolute freeze-off volumes from those geographies, but Ohio has been a standout as Utica gas production also soared the past few years. Multiple days this past winter saw Ohio lose over 3 bcfd from freeze-offs. The highest daily loss from the past four months across the entire Lower 48 was just above 6 bcfd. Despite growing absolute lost volumes and the 10-year record just set, the percentage of winter production removed from the overall market remains between 0.5 and 1.2%, even two years ago during Uri. It hasn’t really been enough to move prices higher for sustained periods in the past. And that remains the case exiting the 2022-2023 winter. All the freeze-off data is continually factored into our short-term market views. A mild January overall limited withdrawals and quickly converted gas storage deficits into a surplus. But looking to next winter, the market is signalling a slowdown in supply growth and higher gas-fired power demand. However, prices may still head lower in the near term until the market sees evidence of tightening metrics like reduced Haynesville activity.

SCOTT NORLIN, GIT

RYAN TAYLOR, GIT & EIT

Research Analyst, Upstream Canada

Research Analyst, Lower 48 Upstream Research

Scott joined the Canadian Upstream Research team at Wood Mackenzie in June 2019. He is responsible for providing financial asset valuation and objective commercial analysis on company and play activity across Canada. His coverage ranges from North American large caps to junior private producers. He also covers CNRL and Cenovus for the corporate analysis team, providing high level company valuation and strategy analysis.

Ryan joined the Wood Mackenzie Lower 48 Upstream Research team in January 2022, based in the Calgary office. Since joining the company, he has been responsible for evaluating unconventional plays in Canada and the Lower 48, providing objective commercial analysis of play activity throughout Canada. Ryan’s key areas of focus include Canadian unconventional plays, heavy oil production, well cost and inflation modelling, and the oilfield service sector.

DISCLAIMER – THE VIEWS AND OPINIONS STATED BELOW ARE BASED ON WOOD MACKENZIE’S DATA, SOURCED FROM PUBLIC SOURCES ACROSS THE GLOBE AND OUR PROPRIETARY TOOLS SUCH AS LENS.

46 R E S E R V O I R I S S U E 3 • M A Y / J U N 2 0 2 3

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