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The voice of the oil industry in Saskatchewan.

2017

Recovering Saskatchewan’s long-lost heavy oil

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SASKATCHEWAN Oil Report is published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba, Canada R3L 0G5 www.delcommunications.com President & CEO: David Langstaff

In this issue Message from Brad Wall, the Premier of Saskatchewan.................................................................. 14 Oil Respect: One Year In – Message from the CAODC..................................................................... 18 Saskatchewan Oil and Gas Industry Renaissance? – Message from CERI....................................... 22 Recovering Saskatchewan’s Long-Lost Heavy Oil............................................................................ 26 The Cash Stash Behind Anti-Pipeline Activism................................................................................. 28 25th Williston Basin Petroleum Conference & Expo......................................................................... 31 Williston Basin Petroleum Conference Ushers in 25 Years............................................................... 32 Building Safer Worksites in Saskatchewan Through Prime Contractor Legislation.......................... 34 Saskatchewan Day at CSUR in Calgary............................................................................................ 36 Waste Not: The Co-op Refinery Complex’s new Wastewater Improvement Project looks to a sustainable future..................................................... 38 Keystone XL Timeline........................................................................................................................ 40 Canadian Oil Industry Not Threatened by Trump.............................................................................. 42 Great Plains College Kindersley Campus Welcomes Third Class Power Engineering Students......................................................................... 46 Innovative Solutions to Age-Old Questions...................................................................................... 48

Publisher: JASON STEFANIK Managing Editor: Bailey Hildebrand-Russell bailey@delcommunications.com Advertising Sales Manager: DAYNA OULION dayna@delcommunications.com Toll Free: 1.866.424.6398 Advertising Sales Representatives: ROBERT BARTMANOVICH | GLADWYN NICKEL TELMO REIS | ANTHONY ROMEO

Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director: kathy cable Layout & Design: dana jensen Cover Artwork: devin tanner

Weyburn: Fostering Business and Personal Growth......................................................................... 50 Two Realizations Coming Out of a “Break up from Hell 2.0” – Message from PSAC..................... 52 Dakota Access Lifeline...................................................................................................................... 53 Pumps and Suppliers: Confusingly Simple........................................................................................ 54 Powerful Future: Lakeland College................................................................................................... 56 It’s Quality Time: Suburban Extended Stay Hotel converts to Quality Inn & Suites.......................... 57 60 Years of Growth, Leadership and Diversity: Park Derochie.......................................................... 58 The Trainer of Choice: Southeast College offers the training students need close to home................................................ 60 Northern Shield Helicopters.............................................................................................................. 61 Index to Advertisers.......................................................................................................................... 62

© 2017 DEL Communications Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher. While every effort has been made to ensure the accuracy of the information­contained in and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Publications mail agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba R2L 0G5 Email: david@delcommunications.com PRINTED IN CANADA | 04/2017

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Saskatchewan Oil Report 2017


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SOLUTIONS FOR

INDUSTRY

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K

enilworth Combustion is constantly working to develop new technology, improve on efficiency, and create products or refining services that will drive industry forward. Methane gas capture and reduction is the challenge at hand now. How do we effectively capture and utilize this stranded casing gas, BTEX and VRU gases from wellbores, natural gas dehydration still columns and tank-top vapours? In Canada both provincial and federal government regulators are increasing pressure on producers to reduce emissions.

At Kenilworth, emissions reduction has always been a focus over the years. We have developed several waste gas recovery and utilization systems, installing thousands onsite in the Western Canadian Sedimentary Basin. As opposed to venting or flaring unwanted casing or overhead gas, Kenilworth’s approach consists of collecting and utilizing the waste gas as a fuel source. The benefit to this is twofold — no more issues with flaring, and a 90 per cent reduction in purchased fuel. This technology has already been applied to countless single well batteries, as well as at facilities across Western Canada. This proven technology was also applied to a natural gas dehydration system, and the results were groundbreaking. Third-party testing has consistently verified that there is a 99.9 per cent BTEX destruction efficiency (see www.kenilworth.ca for the report). What we at Kenilworth have been focused on is the design, testing and field proving of our stranded gas combustor. Stranded gas is vented methane without infrastructure to reach the market. We installed the first combustor on Aug. 26, 2016. The unit has exceeded all expectations of operation. The average daily stranded gas consumption is 45,904 standard cubic feet of potentially-vented gas. In 90 days, that is equal to 4,131,360 standard cubic feet of vented gas. By capturing this gas, we have already made a significant reduction in greenhouse gas emissions. Our mission is to provide you with the most comprehensive and complete GHG reduction package on the market today. We put our proven products and services to work exceeding every expectation so that you can experience worry-free operation well into the future. PICK A PACKAGE We have several packages to accommodate almost any need. You can also contact us to work with you to create a custom GHG emissions reduction and vent gas solution for your operation. The following is a small sampling of some of our packages. Call us to find out more about these and other Kenilworth solutions at 1-780-853-5340 or visit our website www.kenilworth.ca. STRANDED GAS COMBUSTOR This package will allow you to capture and burn stranded gas onsite or in facilities. Traditionally, this stranded gas was vented to the atmosphere which is 25 times more harmful to the environment than combusting it effectively.

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Our SGC is fully assembled, freestanding and can operate from 4 ounces to 10 psi. Once onsite, this unit can be up and running in a few hours. Ten-metre spacing is subject to approval by the authorities with jurisdiction. SWB LOW PRESSURE CASING GAS UTILIZATION 6 OZ-32 OZ This package will allow you to capture and utilize casing gas from six to 32 ounces without compression. By minimizing wellbore pressure, this can potentially increase production providing excellent return on investment. FACILITY LOW PRESSURE OVERHEAD GAS UTILIZATION 4 OZ-12 OZ This package will allow you to capture and utilize overhead gas from four to 12 ounces. This solution will reduce or eliminate facility flaring. The economic benefits provide great net back on investment. OVERHEAD TANK VAPOUR AND ODOUR CAPTURE/ UTILIZATION This package will allow you to capture and utilize overhead tank vapors from three to 10 ounces. This solution will eliminate site odour issues and the economic benefits provide great net back on investment by using captured waste gas to heat the process. BTEX CAPTURE AND UTILIZATION This package will allow you to capture and utilize BTEX gas from four to 12 ounces. The carcinogenic BTEX gas that is currently vented on most locations is used to heat the process. While this will eliminate dehy venting, the health and economic benefits provide great net back on investment. DUAL FUEL ADVANTAGE All Kenilworth Combustion burners can operate on dissimilar BTU fuel gas switching without operator intervention once our trained service personnel have set them up. CUSTOM PACKAGES Can’t find a package to suit your needs? Let us create a custom package for you. Tell us what your site specifications are and we will work with you to build the best package to suit your needs. From new drills to retrofits and all things in between, we have a solution to fit you. Prices vary. Volume discounts and rental packages available. Call us for more information.

Kenilworth Combustion | Main OfďŹ ce Contact Heine Westergaard 1-780-853-7775 Email : heine@kenilworth.ca | derekr@kenilworth.ca


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Message from Brad Wall

The Premier of Saskatchewan

S

askatchewan’s economic well-being is closely linked to the success of our resource industries, including the energy sector. The numbers tell the story. Oil and gas companies are responsible for an estimated 15 per cent of Saskatchewan gross domestic product (GDP). In 2016, investment in new exploration and development was estimated at $3.6 billion, and upstream oil and gas activity supported approximately 31,000 jobs directly and indirectly. Today, Saskatchewan ranks number two and number three in oil and natural gas production in Canada, accounting for estimated daily production of 459,600 barrels of oil and 520 million cubic feet of natural gas. The combined value of our provincial oil and gas production in 2016 was $6.8 billion. As the global petroleum industry continues to recover from a significant market downturn, Saskatchewan’s remains a solid, low-cost, opportunity-rich jurisdiction

in which to operate. Regardless of market trends, Saskatchewan’s resource assets are unchanged — and considerable. We have 56 billion barrels of initial oil in place, and 1.2 billion barrels of remaining recoverable reserves. Nearly half of those total remaining recoverable reserves are heavy oil. There’s no question Saskatchewan is among the world’s most reliable suppliers of energy. A secure North American energy market depends in no small part on continued progress in the development and marketing of our energy resources, particularly when 65 to 70 per cent of Saskatchewan’s oil production is exported to the United States. That is why we remain a strong supporter of pipeline development to increase market access for Western Canadian oil. We know that pipelines remain the safest and most environmentally sound method for transporting oil to refineries and will allow the industry to diversify its customer base. We welcome the federal govern-

ment’s approval of Enbridge’s Line 3 replacement project and the recent decision in the United States to proceed with the Keystone XL project. As we continue our advocacy for pipelines, we also remain opposed to the federal government’s carbon tax, which would do disproportionate harm to the energy sector and resourceproducing provinces like Saskatchewan and Alberta. We believe in mitigating carbon emissions through the use of technology, such as the leading-edge carbon capture projects underway in southeast Saskatchewan. Our government remains committed to maintaining a competitive operating environment for the industry. In the Fraser Institute’s 2016 global survey on barriers to investment in oil and gas exploration and production facilities, international petroleum industry executives and managers ranked Saskatchewan as the fourth most attractive jurisdiction for investment in the world, rising from seventh place. The United States remained the most

Today, Saskatchewan ranks number two and number three in oil and natural gas production in Canada. 14

Saskatchewan Oil Report 2017


Photo courtesy of Cenovus Energy

Rich in Resources. Rich in Opportunity. The Fraser Institute 2016 Global Petroleum Survey ranks Saskatchewan 4th worldwide and 1st in Canada for petroleum exploration and development investment potential. Saskatchewan’s diverse energy sector, coupled with its streamlined and responsive regulatory system make the province a great place to invest. Saskatchewan has what the world needs. Discover the opportunities.

saskatchewan.ca/invest |


attractive region overall in the world for investment, followed by Australia, which moved ahead of Canada this year. Canada’s fall to third place is attributed to investors continuing to view Alberta as less attractive for investment — that province dropping 18 spots in the 2016 world rankings to 43rd. This year, the relative investment attractiveness of all Canadian jurisdictions in the survey declined from 2015 — except for Saskatchewan. According to the survey, Saskatchewan’s investment climate and the government’s decision to keep royalty rates and taxation unchanged even in a low-price environment has been “exemplary policy.” This approach results in low-risk opportunities here for the industry, and we are working to encourage and enable those opportunities by clearing the way for continued growth and investment. One example of this is Saskatchewan’s Integrated Resource Information System (IRIS), our online system for supporting the development and regulation of the provincial oil and gas industry. IRIS is the result of a six-year modernization pro-

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Saskatchewan Oil Report 2017

gram to replace the Ministry of the Economy’s aging and nearly obsolete computer and paper-based systems. Since going live on November 19, 2015, IRIS has delivered significant enhancements to service. It allows industry to conduct a comprehensive range of regular business and regulatory tasks with the Government of Saskatchewan online 24 hours a day, seven days a week. This new self-service system has replaced various outdated systems for a vast spectrum of routine business activities. IRIS has also significantly improved efficiency on the government side — for instance, by reducing processing times for well licence applications by as much as half in some cases. Where certain complex or labour intensive processes once took weeks to perform, they can now potentially be completed within hours or days. Almost 60 per cent of the respondents in a recent survey of industry users of well and facility infrastructure functionality ranked our service as either “excellent” or “good” compared to other regulators they work with. This is a solid example of our government’s commitment to continually improving

our capabilities to meet the needs of the oil and gas industry. Commodity markets change and fluctuate, and they always will. However, nothing has changed in Saskatchewan when it comes to our increasingly accessible resource base. Nothing has changed with respect to Saskatchewan’s favourable operating environment that we continue to build on and improve. Nothing has changed with respect to our reliable policy regime. We will continue to provide a stable investment climate for oil and gas development, an investment climate that ranks among the best in the world. Our industry is stronger because of it — our communities will thrive because of it — and the province of Saskatchewan is fulfilling its great potential because of it. v

Brad Wall Premier


With over 20 years of safety training experience, the southeast Saskatchewan oil patch counts on us for: Industry recognized safety training Enform and Global certified courses Confined Space and Fall Arrest mobile simulators Skid Control Training with SKIDCAR simulator Conveniently scheduled courses Industry qualified instructors And more ‌

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Oil Respect: One Year In By Mark ScholZ, President, canadian association of oilwell drilling contractors

H

ere at the Canadian Association of Oilwell Drilling Contractors, our primary mission is to provide value for our members through information sharing, industry standards and advocacy. Throughout the past year, our advocacy efforts have taken on a more assertive form in the Oil Respect campaign. The basic aim of the campaign, which began in earnest in February 2016, continues to highlight the excellence of Canada’s oil and gas sector and pushing back against misinformation spread by the industry’s detractors. The past year has been an exciting and challenging one, and the Oil Respect campaign has grown and changed in ways we could not have foreseen. Uptake for the campaign on social media has been fantastic. To date, more than 50,000 people have engaged with us on Facebook and Twitter. Our efforts and those of our supporters have also netted the campaign significant earned media, particularly the tabling of our ePetition, which asks the Government of Canada to support oil and gas families across the country. With the help of Bernard Hancock (Canada’s favourite roughneck) we were able to capture primetime media coverage from coast to coast. The

petition was also the most successful ePetition ever presented in the House of Commons, with nearly 35,000 signatures from across the country. The Fort McMurray wildfires in May 2016 shook Alberta’s oil families to the core. Many lost their homes and treasured family possessions. The fires forever changed the landscape of Fort McMurray and some residents are still displaced today. However, something else became apparent in the days following the initial blaze. There was not one serious injury or loss of life as a direct result of the fires. This is remarkable given that a city of more than 80,000 people had to be evacuated. And it speaks volumes to the perseverance and obsession with safety that are the hallmarks of Canada’s oil and gas sector. The role of industry — from service companies that provided food and water to the displaced, to the exploration companies that offered up their camps as accommodations — cannot be overstated. The rest of Canada got a glimpse of a world that oil and gas workers and their families know all too well; one in which people unreservedly give of themselves to help others in their time of need. The sheer number of industry trucks lining Highway 63 with

The Fort McMurray wildfires in May 2016 shook Alberta’s oil families to the core.

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Saskatchewan Oil Report 2017

food, water and other provisions speaks volumes about the types of people we work with every day. I want to extend a special thank you to the many Saskatchewanians who helped Alberta in its time of need. We are so blessed to be part of an industry made up of people of such remarkable character. This year also saw federal approval of two pipeline expansion projects, Kinder Morgan’s Trans Mountain and Enbridge’s Line 3. A proposed greenfield project, Enbridge’s Northern Gateway pipeline, was shut down by the federal government. While we are pleased two projects were conditionally approved, we are disappointed that the Northern Gateway project, which would have injected an estimated $300 billion over 30 years into Canada’s economy and created approximately 3,000 jobs, was rejected. The need to remain steadfast in our advocacy for our industry is greater than ever. We need to keep pressure on our elected officials to ensure that energy projects like Line 3 and Trans Mountain break ground in good time. The need for market access is profound, and the approval of these two projects does not mean our work is finished. Not by a long shot.


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The elephant in the room right now is, of course, TransCanada’s Energy East pipeline. Approval for this project should be a no-brainer, as it will supply Canadian jurisdictions with oil where it is currently being imported from the likes of Nigeria, Iran and Saudi Arabia. According to a 2015 Fraser Institute study, pipelines are 4.5 times safer than rail as a means of transporting oil1. We need only look to the 2013 Lac-Mégantic rail disaster to illustrate just how myopic the anti-pipeline lobby is. Shouldn’t Canadians be using Canadian oil? Would any other industry in the country accept the idea of selling its products at a discount, in some cases as much as $30 per barrel? This amounts to a loss of $90 million per day in revenues for Canada’s oil and gas sector at the high end2. Would dairy farmers in Quebec or salmon fishermen in British Columbia accept deep discounts like these because of lack of infrastructure? Those who work in the patch know Canada’s environmental conservation, reclamation and safety standards exceed those of all other major oil producing jurisdictions. In 2017 the need to

articulate this message is greater than ever. Pipeline approvals are not worth the paper they are written on if shovels do not hit the ground. We need to continue to tell the story of our oil and gas industry in a way that captures the collective imagination of Canadians. Canada has the third-largest proven oil reserves in the world. We provide jobs, direct and indirect, for thousands of Canadians. Did you know that a single drilling rig creates as many as 145 jobs in its lifecycle?3 That means that 145 more families are able to put food on the table, gas in their vehicles, and pay their kids’ hockey or music fees. This is what makes the introduction of new carbon taxes across the country so concerning. Aside from making consumer goods, transportation and services more expensive, these levies take a significant toll on every business that uses oil and gas products in its daily operations. These range from feedlots to grain farms to oil and gas service companies, and all of the local businesses that depend upon their products. Ordinary Canadians need to step up and let their elected officials know that families

simply cannot afford to pay more at a time when our economy is struggling. We applaud Saskatchewan Premier Brad Wall’s national leadership on this issue. The rest of Canada could certainly take a leaf out of Saskatchewan’s book. There are reasons to be cautiously optimistic in 2017. But hope is nothing without hard work. Opponents of our industry are busily preparing to tear down the small gains we have made over the past year. We need to ensure that policy-makers, media and Canadians from coast to coast understand what we already know; that Canada’s oil and gas industry is here to stay and that it is an invaluable part of our nation’s enviable resource economy. v Footnotes “Safety in the Transportation of Oil and Gas: Pipelines or Rail?” Available: www.fraserinstitute.org 2 CBC News, “Why Canada Just Pumps out Cheap Oil”, 2012 3 Alberta Oil, “How many jobs does a single drilling rig create and where are they?”, 2015 1

The elephant in the room right now is, of course, TransCanada’s Energy East pipeline. 20

Saskatchewan Oil Report 2017


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Saskatchewan Oil and Gas Industry Renaissance?

S

askatchewan is a province with significant crude oil reserves. The province is bound with multiple oil plays from light tight oil to heavy resources — light in the Viking, Bakken, Mississippian-Devonian and Mississippian deposit; medium light in the Shaunavon and oilsands around the Athabasca; and heavy around Lloydminster. The diversity of the plays and the quality of the deposits make Saskatchewan a strong competitor among other global oil deposits. The province, as other provinces with significant hydrocarbon production, has been negatively affected by the low commodity prices partially caused by the advent of shale production in the United States. With a recent rebound in oil prices, drilling activity has picked up again with 1,547 oil well completions in 20161. The Canadian Energy Research Institute’s (CERI) study 1592 analyzes well completions, production forecasts, and supply costs for natural gas and crude oil. It suggests that activity in Saskatchewan is forecast to show a consistent increase in oil well completions and crude oil production as oil prices are expected to increase throughout the study period (2016-2036), with 2036 having approximately 50 per cent more drilling than 2016. Most activity will fall within the tight oil formations within the Western Canadian Sedimentary Basin, in Saskatchewan’s portion of the Bakken. Saskatchewan’s crude oil production forecast mirrors its increasing drilling forecast. CERI predicts that oil production will remain constant until 2021, at which point it will increase throughout the remainder of the study period. In 2036, Saskatchewan will see approximately 150,000 more barrels per day of production than 2016. The total crude oil production is forecast to grow to just under 600,000 barrels per day by 2036.

There is a large variation in the average supply costs, depending on the well structure and its location.3 The average calculated well supply costs for horizontal wells range from $17 to $93 per oil barrel (bbl). Vertical wells show a higher cost structure, varying from $34 to $130 per bbl. The average calculated costs for specific areas are shown in figures 2 and 3, with an average 22

Saskatchewan Oil Report 2017

WTI price, Hardisty Heavy and Edmonton par price overlaid for reference. As costs for horizontal wells are lower than those for vertical wells, horizontal drilling is expected to make up a higher percentage of total drilling in coming years.

CERI estimates the drilling activity for gas wells in Saskatchewan, albeit lower levels than the crude oil well count, will rise to 26 wells per year in 2024 from current levels of below five wells per year. It’s also expected to remain constant through the end of the study period. Due to drilling declines in 2015 and the first half of 2016 as well decline rates, natural gas production in Saskatchewan is expected to decrease throughout the study period. The consistent addition of 25 new wells per year after 2024 is enough to sustain a steady decline rate as shown in the chart below.


Saskatchewan Oil Report 2017

23


Supply costs for natural gas wells in Saskatchewan range from $1.21 per mcf to $5.14 per mcf for vertical wells. CERI did not have enough data to assess on Saskatchewan’s horizontal wells. Similar to the other provinces in the WCSB, it can be expected that the supply costs of horizontal wells in Saskatchewan will be less expensive than the vertical well supply costs. Horizontal wells will continue to make up a higher proportion of drilling throughout the 20-year study period.

ration of the study period, from $1138.25 million in 2018 to $11660.64 million, same as Alberta, in 2036. The province also is actively encouraging innovation for cleaner technologies through its Centre for the Demonstration of Emissions Reductions Technologies, otherwise known as C-DER. C-DER 4is a Saskatchewan-based test and verification facility that provides real-world testing, demonstration and verification of emissions reduction technologies. The centre’s research focuses on methane emissions reduction and will expand to carbon dioxide, hydrogen sulfide, mono-nitrogen oxides, and sulfur oxides. It also encourages local producers to test new technologies through the Saskatchewan Petroleum Research Incentive program. v

Footnotes 1 Yurkowski M. Saskatchewan’s top oil play opportunities. Saskatchewan Geological Survey 2 http://resources.ceri.ca/PDF/Pubs/Studies/Study_159_Full_Report.pdf 3 In CERI study, supply cost is defined as a price of crude oil (or natural gas) required to recover all capital expenditures, The province of Saskatchewan also sees reduced revenues operating costs, royalties, taxes, and a real 10 percent rate of from 2014, however not as drastic as in Alberta. After 2016, return. 4 the revenues are expected to rise continuously through the duSaskatchewan Research Council Del_Filler_HalfHorizontal_Oil_Del_Filler_WESTT.qxd 15-09-04 1:56 PM Page 1

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The Bell 407 represents speed, performance and maneuverability, and reliability beyond measure. Northern Shield’s three Bell 407s provide spacious cabins that seat up to 6 passengers and are configurable for an array of tasks and payloads. With a full fuel range of 208 nm (386 km) and a four bladed rotor system, the Bell 407 can accommodate any longline job. With an empty weight of just over 3,000 lbs (1,360 kg) and a remaining useful load of 966 lbs (438 kg), the Bell 407 is the first choice of those who put service and safety first.

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Saskatchewan Oil Report 2017

25


Recovering Saskatchewan’s Long-Lost Heavy Oil

An SRC specialist takes a sample from a CHOPS well head.

By Saskatchewan Research Council

I

n Saskatchewan, there are hundreds of millions of barrels worth of heavy oil still in the ground. At this time, there’s no way to extract it. Most of the heavy oil in Saskatchewan is produced using a well-known production technique known as cold heavy oil production with sand (CHOPS). Thousands of wells where this technique has been used are coming to the end of their useful lives, having produced only seven to 10 per cent of the original oil in place (OOIP). The CHOPS production process relies on developing long, thin production channels in the reservoir, which are called wormholes. A mature CHOPS well may have many wormholes extending away from the well, creating a complex rootlike structure that extends hundreds of metres into the surrounding reservoir. While wormholes are central to the success of CHOPS wells, they bypass most oil around the producing well, making subsequent production of the remaining oil very difficult. The challenge for industry has been to develop and commercialize post-CHOPS technologies that can use existing wells to produce more of the remaining oil left in the reservoirs. What industry needs now are new, innovative and field-ready post-CHOPS technologies to be brought forward by technology developers and small to medium enterprises. These technologies 26

Saskatchewan Oil Report 2017

must be technically and commercially viable, as well as environmentally sustainable. These same technology developers and small to medium enterprises require access to low-cost, readily-available, lower-risk, pre-commercial field trial opportunities. The Saskatchewan Research Council’s (SRC) new Post-CHOPS Well Test Centre is a fee-for-service facility that provides field and pilot-scale testing, monitoring and validation of new post-CHOPS technologies using CHOPS wells that are still active, but near the end of their lives. The centre, a first of its kind in Canada, is an attractive commercialization route for technology providers as it reduces costs, risk and time from technology development to market. For industry members, de-risking and pre-validating technology will allow them to move more quickly into full-scale commercial piloting. The facility accelerates new postCHOPS technologies by providing assessment and validation of technologies during the field trial process, including assessment of techno-economic performance, field readiness and environmental sustainability. It also reduces technological risk for end-user operators and provides a detailed risk and mitigation assessment, allowing operators to move quickly from commercial pilot trials to commercial-scale adoption.

The process for field tests will be both low cost and flexible to all parties using a quick-to-fail, stage-gated process that minimizes late field failures. Between Kindersley and Lloydminster (along the Alberta-Saskatchewan border), there is estimated to be about 26 billion barrels of OOIP in Saskatchewan alone. According to the Saskatchewan Ministry of Economy, primary production is expected to leave 23 to 24 billion barrels unproduced. An increase in heavy oil recovery from seven per cent to 20 per cent of the OOIP would represent over three billion barrels of additional reserves worth approximately $100 billion based on a $35 oil price. The new Post-CHOPS Well Test Centre offers operators the opportunity to significantly extend the lives of their existing reservoirs, largely using their existing well stock, while increasing both production and reserves. The Saskatchewan Ministry of Economy is supporting the centre by allowing producers, or well operators, who provide test-site wells and who meet the criteria to access an existing royalty initiative that will temporarily adjust the royalty applied to other wells operated by the producers. For more information on the program or the new Well Test Centre, contact the Saskatchewan Research Council. v


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The Cash Stash Behind Anti-Pipeline Activism By Vivian Krause

P

ipelines are crucial to the safe transportation of oil and gas, yet they have become unusually controversial. Let’s be clear — this is not by chance. This is squarely because a group of American funders, mostly from California, has financed a massive, anti-pipeline campaign against Alberta oil. Back in 2009, the anti-pipeline movement was put into motion by a trio of U.S. charitable foundations: the Rockefeller Brothers Fund, the William and Flora Hewlett Foundation and the Tides Foundation. The Rockefeller fund is one of the charitable entities of the famous family of oil pioneers, the Hewlett Foundation was created by one of the founders of Hewlett-Packard, and the Tides Foundation (“Tides”) is an intermediary that receives funds from billionaire philanthropists, including Warren Buffett, and distributes the money as the donor directs. Since 2009, Tides and its funders have quietly financed more than 100 First Nations and environmental activist groups to bring the Alberta oil industry to its knees. Under the banner of an international effort named the Tar Sands Campaign, Tides has made more than 400 payments totaling $30 million to First Nations and environmental groups in Canada, the U.S. and in Europe, tax returns show. That’s more than 400 cheques and wire payments ranging from $12,000 to $700,000. To the average person, the Tar Sands Campaign is invisible. None of the participating organizations go around say-

ing they are part of a Rockefeller-funded campaign to put the screws to Canada. But that is exactly what they are doing. When the Financial Post first reported on the Tar Sands Campaign funding in October 2010, information about it was scant. In fact, the only reason this campaign was discovered was because of three little words — Tar Sands Campaign — unexpectedly noticed in dozens of payments that were reported in the U.S. tax returns filed by Tides. Since the Tar Sands Campaign has come to light, public opinion about it has been split. Some scorn the activist groups and First Nations who are involved, accusing them of being bought and paid for by their American funders. But this view doesn’t fit the facts. Even without U.S. funding, environmentalists have been trying to restrict the oil industry for decades. Indeed, activists have been against oil since long before the big U.S. cheques began to roll in. In general, the media has given the benefit of the doubt to the activists and First Nations, taking them at their word that their campaign is purely environmental. However, in light of statements made Michael Marx, the long-time director of the Tar Sands Campaign, this stance lacks merit. On his organization’s website, Marx says, “From the very beginning, the campaign strategy was to land-lock the tar sands so their crude could not reach the international market where it could fetch a high price per

barrel.” Evidently, the Tar Sands Campaign is not strictly about the environment. By the admission of its original director, this campaign is meant to hurt Canada where it matters: in our national wallet. No doubt about it, the Tar Sands Campaign also helps to protect American economic and trade interests, guaranteeing that the U.S. has exclusive access to Alberta’s heavy crude at lower prices than U.S. buyers would pay for the same oil from anywhere else. It is important to note that anti-pipeline activism is funded as a small part of a much larger effort to foster renewable energy. To understand the overarching motivations of the funders, it helps to look at the history of their effort and the way that energy independence has been re-branded as “sustainable energy,” and, more recently, as “clean energy.” Saving the climate has become code for reducing U.S. dependence on the Middle East. As we know, renewable energy is domestic. Fostering renewable energy is tantamount to increasing energy independence and weaning the United States off foreign oil, particularly from the Middle East. The California philanthropists that are funding the campaign against oil from Western Canada are doing no such

“From the very beginning, the campaign strategy was to land-lock the tar sands so their crude could not reach the international market where it could fetch a high price per barrel.” 28

Saskatchewan Oil Report 2017


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thing in their own backyard. Against Texas, North Dakota or Oklahoma, there’s no multimillion-dollar campaign like there is against Canada. On its website, the Hewlett Foundation makes clear that it does not fund activism in the states that account for 95 per cent of U.S. oil production. Indeed, American charitable foundations are not funding a major campaign against domestic oil production. They are trying to restrict foreign oil production, particularly from Canada. Come to think of it, this isn’t so surprising. Canada is the only oil-exporting country that can be bullied out of the international market without risk of civil unrest and economic collapse. Back in 2001, on the heels of the California energy crisis and the beginning of the Iraq war, a group of California philanthropists set out to achieve something that had eluded the United States for decades: energy independence. Leading the pack were the Rockefeller brothers and the Hewlett Foundation, which has since become the world’s biggest funder of climate activism. Since 2010, the Hewlett Foundation has granted more than $1 billion to organizations that spearhead the climate movement. By 2004, the Hewlett Foundation and like-minded philanthropists had put together a suite of energy policy initiatives including Securing America’s Future Energy and the Apollo Alliance. Why that name? Its funders recognized that energy independence would be no less of a challenge than putting a man on the moon. The Apollo Alliance produced a landmark document titled New Energy for America that called for no less than $300 billion in U.S. government loans, subsidies and grants to kick start a global market for renewable energy. Around that same

time, the Rockefeller brothers and others produced a document called How to Talk to Americans. This report gives tips for what to say about touchy issues like getting off Middle East oil and promotes the re-branding of energy independence in the name of protecting the environment. Eventually, the Apollo Alliance changed its logo, replacing the words “energy independence” with “clean energy” and then merged with labour unions to become the BlueGreen Alliance. In 2015, the United States ended its longstanding ban on exporting U.S. oil. By 2016, according to Bloomberg, U.S. oil companies exported three million barrels a day of refined products. Gasoline exports hit an all-time high of almost one million barrels a day, up tenfold from a decade ago. Of course, the U.S. couldn’t export its own oil without a lockdown on the Canadian crude that covers at least one quarter of domestic requirements. Since the Tar Sands Campaign began, anti-pipeline activism has come to be about much more than oil. First Nations who have felt powerless for decades have new power, purpose and more. If pipeline companies and their clients want to dial back the activism against their business, they need to deal directly with the big U.S. funders who have bankrolled the organization of anti-pipeline protests. The protesters aren’t paid but the organizers sure are. Until pipeline companies deal directly with the big U.S. funders, the organizers of the anti-pipeline movement will continue to do what they are paid for. v Vivian Krause is a Canadian writer. On Twitter, she’s @FairQuestions.

Saving the climate has become code for reducing U.S. dependence on the Middle East.

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Saskatchewan Oil Report 2017


25th Williston Basin Petroleum Conference & Expo by Ron Ness, President, North Dakota Petroleum Council

F

or a quarter of a century, North Dakota and Saskatch-

times is not easy, and during the tough times, it presents more

ewan have partnered to host the Williston Basin Petro-

difficulties. Regardless, these industry partners continue to

leum Conference. Over these 25 years, the conference

outdo themselves, and we consider this year’s conference —

has grown and changed, and its discussions have revolutionized the state and province’s energy industries. Today, the Williston Basin, once just a small pocket of production on the Great Plains, has become a world-class resource fueling both nations. But North Dakota and Saskatchewan share more than a basin. We share a similar history and culture of hard work. Surviving on these sometimes-harsh plains requires a resourcefulness

just as those in past years — to be a worthwhile investment. We also want to thank this year’s participants and sponsors. We recognize that there are many shows each year focused on the oil and gas industry, but your continued support ensures we can continue the WBPC and its reputation as one of the best and biggest conferences dedicated to the Bakken and shale plays overall. Through your support, participation and

and resilience. This resolve was evident during our most recent

contributions, we can ensure that this world-class resource will

downturn as the industry worked hard to do more, use less

emerge stronger than ever before. We look forward to hosting

and come out stronger than before.

the 26th WBPC May 22 to 24, 2018 in Bismarck, N.D. v

Today, the Williston Basin remains an enduring, competitive force in the global energy market. Oil and natural gas are, and will continue to be for the foreseeable future, energy mainstays. The U.S. Energy Information Administration projects world energy consumption to increase by 48 per cent by 2040. To meet this growing demand, producers are looking to emerging innovations and technologies being developed by many of the industry leaders attending this year’s conference. Changes in our industry are happening at a faster pace than ever before. Each year presents new challenges and opportunities that set the stakes and standards for our industry even higher. Yet, we can always remain confident in the talent, innovation, knowledge and skill possessed by the industry’s employees to continue driving it forward. Like the people of our state and province, we in the industry are people of resilience, with boundless potential and exceptional energy. We are honoured to be among them at this year’s conference and are excited to see and hear what is in store for the future of the Bakken and Williston Basin. We want to thank the Government of Saskatchewan Ministry of the Economy and the Petroleum Technology Research Centre for organizing this year’s conference. Putting together a world-class conference of this magnitude during even good

Saskatchewan Oil Report 2017

31


Williston Basin Petroleum Conference Ushers in 25 Years

The Williston Basin Petroleum Conference is happening this year May 2-4, 2017 at Evraz Place in Regina, Saskatchewan. The Petroleum Technology Research Centre is co-organizing the conference, which highlights oil and gas activity in the Williston Basin.

A

certain sense of optimism is creeping back into the Williston Basin these days. After almost two years of low oil prices, difficulties with getting products to market, and layoffs (in the field, with operators and down the supply chain), activity and spirits seem to be on the rise. You can see it in Estevan, where drill rigs are again dotting the horizon east of town. You can feel it in and around Bismarck and Williston in the formerly crowded camps, where workers are housed and fed, that are again ramping up. And you can confirm it in the slow rise and stabilization of oil prices, reaching $54 a barrel in late February, which has stemmed the oil company layoffs and even led to a slow hiring of engineers, geologists and managers. “Let’s face it, the past two years have been tough,” said Melinda Yurkowski, assistant chief geologist at the Saskatchewan Geological Survey, which is a coorganizer of the 2017 Williston Basin Petroleum Conference. “Both 2015 in Regina and 2016 in Bismarck saw significant drops in booth assignments and conference registrations. And this year’s event won’t likely see an improvement on those numbers. But the upswing has begun and I think this year’s event will

32

Saskatchewan Oil Report 2017

offer significant opportunities for those who do attend.” Norm Sacuta, communications manager at the Petroleum Technology Research Centre — the research company co-organizing the conference — said smaller doesn’t necessarily mean less impactful. “I really feel the attendees and businesses at this year’s conference are going to see opportunities for networking,” said Sacuta. “Size is no indication of impact, and with fewer companies operating in the Williston Basin — many of those leaner, meaner and on the rise — there will be real chances for making connections.” The technical conference itself is very strong, and is drawing significant interest among registrants. Confirmed speakers from the Colorado School of Mines, University of Montana, University of Alberta, Saskatchewan Research Council, Saskatchewan Geological Survey, SaskPower and other companies and organizations are covering topics that discuss many major issues in the Bakken and explore most of the important geological formations. “We’ve got a full slate of presentations that cover most of the main regions in the Williston Basin and beyond,” said

Dan Kohlruss, senior geologist at the Saskatchewan Geological Survey. “Topics cover a wide variety of interests from a look at stratigraphy, refracking, EOR and faulting in the Basin to an examination of how hydrogeology impacts production behaviour. The topics are definitely of interest to operators and scientists alike.” One presentation, by Michelle Nicholas of the Manitoba Geological Survey, looks at Manitoba’s unexplored oil and gas potential; another, by professor Michael Hofmann of the University of Montana, is looking at the Sappington Formation in southwestern Montana. These are areas not as often in the spotlight of Williston Basin research, and there’s some excitement on their inclusion. Another rising area of interest is the use of carbon dioxide as a fluid in hydraulic fracturing and for enhanced oil recovery in the Bakken in general. With two major suppliers of carbon dioxide in the region — Dakota Gasification and SaskPower — a presentation by David Hanly from SaskPower looks at some of the issues around CO2EOR. There’s also a large poster session planned, and the best student poster at the conference receives a cash prize. “The conference is continuing its tradition of offering a Core Workshop on the opening day, May 2” said Yurkowski. “This has always been well attended, and offers several presentations that are of interest to industry along with opportunities for attendees to examine core samples from different formations and discuss them with presenters.” The core workshop carries an additional fee of C$150 and attendees must also be registered for the conference to attend. “The Bakken has certainly faced down its challenges in the last few years,” said Yurkowski. “The WBPC has felt the effects. But we’re convinced our 25th event, while smaller and more focused, will carry a wallop. We hope to see every­ one there.” v


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33

WORKSHOPS


Building Safer Worksites in Saskatchewan Through Prime Contractor Legislation

In Saskatchewan under provincial legislation, the prime contractor has a number of duties to ensure safety for workers on the job.

S

askatchewan's legislation surrounding the occupational health and safety of its people includes prime contractors under the Saskatchewan Employment Act (SEA). Mandated in 2015, the intent of the legislation is to have in place a central role that is responsible for the coordination of health and safety activities at multi-employer worksites. Owners, subcontractors, and even prime contractors may experience confusion with respect to their roles and which party is ultimately responsible for worksite safety. The legislation is intended to reduce worksite risks by eliminating the practice of sub-assigning liability and responsibility by providing one point of reference.

34

Saskatchewan Oil Report 2017

The prime contractor legislation applies to the oil and gas industry in Saskatchewan specifically at multi-employer worksites, where, according to the legislation, “there are 10 or more workers or self-employed persons under the direction of two or more employers.� Follow the four-step framework Enform, Canada’s safety association for the upstream oil and gas industry, developed Crossing Borders Executive Summary with legal consultation from law firm Bennett Jones. This document serves as a tool to help companies achieve compliance with occupational health and safety legislation in terms of ap-


plicable jurisdiction, worksite and legal roles and responsibilities at the worksite. Crossing Borders provides a four-step process and framework, consisting of specific questions that should be answered prior to undertaking any work within western Canada: • What jurisdiction is applicable to the work? • What is the worksite for that work? • What is the stakeholder's legal role at the worksite? • What responsibilities attach to that role? Prime contractor regimes can vary significantly from province to province and companies should carefully consider which laws, federal or provincial, apply in the jurisdiction they are operating in. In Saskatchewan under provincial legislation, though not an exhaustive list, the prime contractor has a number of duties: • Ensure all activities at the worksite, which may affect the health and safety of workers or self-employed persons, are coordinated • Ensure, as far as reasonably practicable, that all employers and self-employed persons have adequate and appropriate policies, procedures, safe-work practices, equipment, competent workers and information to ensure compliance with Part III of the SEA and the Saskatchewan Prime Contractor Regulation • Prepare a written plan that addresses how these requirements will be met • Identify a competent person/designated supervisor to oversee and direct the activities of employers, workers and self-employed persons at the worksite • Identify and inform employers, workers and self-employed persons about the hazards at the worksite • Ensure, as far as reasonably practicable, that employers or selfemployed persons at the worksite eliminate or control hazards identified by the prime contractor. “Our industry is not only focused on the health and safety of their direct employees but that of the subcontractors that they hire. Prime contractors require that subcontractors have an effective health and safety plan in place, that they have a certificate of recognition in some cases and that they've been vetted by certified registration firms prior to bidding. Prime contractors have on-site orientation and monitor compliance, going well beyond other industry sectors,” says Bob Ross, manager of Enform’s regional office in Saskatchewan. “Where a regulatory duty is imposed on more than one person, the person with the greatest degree of control over the matters imposed by the duty, has the primary obligation to ensure compliance. This is where the new prime contractor legislation clearly lays out those responsibilities.” Mission: Zero While staying safe on the job is a shared responsibility, it is crucial that all parties understand their respective roles and conduct due diligence prior to starting a job. “Open communication between all parties including the project owner, prime contractor, subcontractors and vendors, supervisors and their workers should take place regularly and before work commences,” says Cameron MacGillivray, president and CEO of Enform. “Understanding the hazards on a worksite, spe-

cific safety roles and having policies in place for managing contractors can go a long way in minimizing the risk of injuries.” MacGillivray sees safety as a shared effort. “Together with industry and our regulatory partners WorkSafe Saskatchewan and the Workers’ Compensation Board, we can work toward Misson: Zero. Achieving zero injuries and zero fatalities in oil and gas ensures everyone goes home safely every day,” he says. Safety is a top-of-mind priority for every worker and the many oil and gas companies operating in Saskatchewan. The prime contractor legislation is just one component in making Saskatchewan a safer province to live, work and play in. v

About Enform

Enform, Canada’s safety association for the upstream oil and gas industry, developed Crossing Borders, which serves as a tool to help companies achieve compliance with occupational health and safety legislation.

Enform is the upstream oil and gas industry's advocate and leading resource for the continuous improvement of safety performance. Our mission is to help companies achieve their safety goals by providing practices, assessment, training, support, metrics and communication. Enform’s regional office in Saskatchewan is located in Weyburn and offers the following services: • One-on-one industry consultations to help companies improve their safety performance • Health and safety advisory committees and working groups • Facility to complete online oil and gas safety training • Printing of replacement certificates For more information on safety training and resources, visit www.enform.ca or contact customerservice@enform.ca. Location: Enform Saskatchewan Suite 208, 117-Third St NE Weyburn, SK S4H 0W3 Phone: 306.842.9822 Toll Free: 1.877.336.3676

Saskatchewan Oil Report 2017

35


Saskatchewan Day at CSUR in Calgary The Canadian Society for Unconventional Resources (CSUR) hosted a team from the Saskatchewan government to meet industry oil and gas players at a one-day workshop session in Calgary in late 2016, making quite the impression By George Eynon, PGeo*

T

he Canadian Society for Unconventional Resources attracted producers, consultants and members of the service sector from more than 35 companies to its Saskatchewan Day event in Calgary in late 2016. Representatives from both the Government of Alberta and the British Consulate turned out to meet key decision makers from Saskatchewan’s government. Ed Dancsok, assistant deputy minister with the Ministry of the Economy, fronted the government contingent. His team covered the entire spectrum, with representatives from Petroleum and Natural Gas Development, Lands and Mineral Tenure, the Saskatchewan Geological Survey, the Petroleum Technology Research Centre, and the Saskatchewan Research Council. The group had good-news stories to tell and did not want to leave out any aspect of the Saskatchewan advantage.

Saskatchewan an attractive place for investment capital At the start, Dancsok hit the highlights, starting with the economic attractiveness of oil from the Viking and Shaunavon formations, as well as the Bakken shale trend. Quoting a Scotiabank analysis, he noted that finding and development (F&D) costs of those plays are extremely competitive with the prolific unconventional resource plays in west Texas. The total resources in these Saskatchewan trends are huge — 56 billion barrels — but they’ve recovered only 12 per cent of the oil in place to date. As mentioned, the relatively light oil from the shallow and often tight (low porosity, hence needs fracture stimulation) Viking sand is one of the most economically attractive plays in the province. To highlight the province’s diversity, enhanced recovery of heavy oil in western Saskatchewan also demonstrated top-tier economics. In fact, there are numerous investment opportunities in the province where a $400 million capital expenditure would potentially yield a 10,000 barrels-per-day project with the potential for up to a 60 per cent resource recovery. Dancsok also mentioned Premier Brad Wall’s comments on carbon dioxide (Wall previously called it “a resource, not a pollutant”) citing the province’s carbon dioxide capture at the Boundary Dam coal-fired power plant and its use for enhanced oil recovery at Weyburn. This project will recover an additional 250 million barrels or more of oil, and sequester 55 million tonnes of carbon dioxide in the subsurface at the same time — something CSUR believes is a huge win-win. What is Saskatchewan doing right? The government team attributed the province’s appeal to a 36

Saskatchewan Oil Report 2017

combination of resource endowment, the land tenure system, its royalty structure, and the regulatory regime, while also acknowledging the latter needs strengthening. Those representing the Lands and Mineral Tenure branch talked about how Saskatchewan administers over 400 million hectares (about 1.5 million sections) of various types of leases for minerals, oil sands, heavy oil, natural gas, shale oil, and now helium exploration. Eventually, the government’s integrated resource information system (IRIS) will handle everything electronically online with new website features to reduce approval turnaround time. Dancsok described the royalty systems and how the government is now applying a more flexible approach — different methods in different areas for different purposes. He said judging by the number of companies involved in the province now and by the results they are getting, it’s working. Not everything is completely rosy, however. There are several areas needing improvement on the regulatory side. Dancsok noted the problem of “inactive wells” — as many as 55,000 oil wells and 25,000 gas wells — that need to be properly abandoned and the land remediated and reclaimed. He also said there were several areas that could benefit from regulatory improvement, including tending to certain needs around pipelines, using directives, licensing of flow lines, improving regulatory compliance and addressing methane emissions. He said fugitive emissions are not part of the “flaring and venting” program database at the time. Dancsok said that while Saskatchewan will continue to enhance its regulatory framework, the focus will be on accessibility and consultation — a service-based approach — with IRIS as a single-window. Saskatchewan’s numerous research establishments are busy The Petroleum Technology Research Council discussed how it has approved 43 new technologies for field testing as pilot projects, under the watch of the Saskatchewan Petroleum Research Incentives (SPRI) program. The Saskatchewan Geological Survey has a public outreach program underway, as well as an array of collaborative research into helium deposits, refracking, potash, brines, lithium, and 3D seismic modelling. The Saskatchewan Research Council is studying enhanced oil recovery in light tight oil trends and in tight sand reservoirs. It is also looking at ways to get better recovery volumes with cold heavy oil production, for example, in areas where steam injection is not required. A lot of impressive research and development was discussed that could move the province to the forefront of innovation.


Keynote panel’s “big guns” extol Saskatchewan’s advantages Perhaps the highlight of Saskatchewan Day was a keynote session over lunch with Dustin Duncan, Saskatchewan’s minister of energy and resources, and Neil Roszell, president and CEO of Raging River Exploration. Both waxed lyrical about their respective jobs and their home province. The minister, only weeks into his position, certainly knew his subject. Duncan spoke enthusiastically and eloquently about Saskatchewan’s advantages and of the energy activities in the southeast corner of the province, including a carbon dioxidecapturing coal-fired power plant and carbon dioxide-sequestering EOR project. Roszell returned to his roots and focused on the adage “what’s old is new again,” applying it to help revolutionize and revitalize the oil industry in Saskatchewan. He spoke of the Raging River Exploration success with pride. His company is thoroughly embedded in the local community it works in — an all too rare occurrence in an industry often disconnected from local residents. It was fascinating to hear two passionate people talk about what they have already done and want to do for the Saskatchewan economy and people. It proved to be one of the most uplifting sessions I had the pleasure of moderating. Creating economic success: “it takes a village to raise a child” Collaboration between government, industry and stakeholders appears to be a key to success. The final Saskatchewan Day

session featured industry speakers who provided proof of the Saskatchewan advantage. Scotiabank highlighted the research behind its financial optimism for the oil and gas sector that other speakers referenced. Raging River attributed the company’s local community involvement as a critical element in its success. Even though the provincial government spearheaded Saskatchewan Day and showcased the province’s advantages, it was obvious to attendees that it cannot happen without willing participants. The Saskatchewan government is making the most of its resources, even though they are not as large or as recognizable as those of its neighbours to the west. Saskatchewan has a fiscal and regulatory environment that is highly attractive to industry players, even in a low-product price environment. The government makes a concerted effort to constantly engage with the industry, creating effective two-way dialogue. Overall, the event made for an encouraging day in what are still difficult times in western Canada’s oilpatch. v George Eynon is a professional geoscientist (PGeo) and the principal of geos • eynon & associates consulting Inc. He consults on regulatory issues, teaches at the Haskayne School of Business, and provides energy literacy education to industry, government, and public audiences. He is also an elected councillor with APEGA and its representative on the Board of Geoscientists Canada. In addition he is a member of the Board of Directors of CSUR. You can contact him at george.eynon.geos@gmail.com or 1-587-899-4367.

Saskatchewan Oil Report 2017

37


Waste Not The Co-op Refinery Complex’s new Wastewater Improvement Project looks to a sustainable future By Carly Peters

W

ater scarcity is a world-wide concern and hits closer to home as human and industry demand increases and supply dwindles. Federated Co-operatives Ltd.’s Co-op Refinery Complex (CRC) in Regina is looking to a sustainable future by not only reducing their water consumption, leaving more for their community to use, but reducing wastewater and air emissions through an innovative wastewater recycling and treatment process. In 2013, the CRC completed a $2.8-billion expansion, increasing its oil production by 30 per cent to more than 130,000 barrels a day. But the expansion created a new challenge — producing more oil also meant the refinery consumed more water, potentially enough to exceed its provincially regulated allocation for withdrawals from the local aquifer. The refinery could pull water from the city of Regina, but the refinery’s leaders wanted a more sustainable solution. The task was great as oil refining and oil upgrading are very water-intensive processes. The Regina complex uses an average of 1,500 to 1,700 gallons of water per minute, or two million gallons a day, for tasks such as generating steam, making hydrogen, and cooling. It became clear that a new approach to water use would be necessary, says Gilbert Le Dressay, the Coop Refinery Complex’s vice-president of refinery operations. In partnership with their technology provider, GE, the CRC designed and developed a $200-million sustainable system called the Wastewater Improvement Project (WIP). Once fully operational, the CRC will be the only refinery in North America

Federated Co-operatives Ltd.’s, Co-op Refinery Complex (CRC) in Regina reduces wastewater and air emissions through an innovative wastewater recycling and treatment process.

38

Saskatchewan Oil Report 2017

that can clean and recycle all its wastewater for steam production. The zero-discharge design utilizes a multi-pronged approach. Stage 1 sees the separation of oil and water by gravity in holding tanks, skimming oil off the top as it floats above the water, while during Stage 2, microscopic bubbles of nitrogen are pumped up through the water, binding with suspended oil particles and bringing them to the top of the unit where they are removed. The oil recovered in both stages is returned to the refinery for processing. Stage 3 and 4 is where WIP moves beyond all other water recycling systems. The water moves on to a GE membrane bioreactor where specially designed bacteria break down volatile organic compounds (VOCs) and ammonia, improving the quality of the water and reducing odours associated with oil refining. It then flows through GE’s patented ZeeWeed, long spaghetti-like strings, which are in fact heavy fibre membrane technology, that remove suspended solids. “To the eye it looks like really clean water at this point but there’s still a lot of biomass,” explains Le Dressay, adding that’s why at the next stage the water is sent to a centrifuge to separate and return the special live bacteria to the reactor, and to recover any water so that it can be fed back to the recycling process. The system then employs high-efficiency reverse osmosis, or HERO mode, to clean wastewater for steam production. This high-efficiency method, which is certainly not a standard procedure in other refineries, ensures the water is free of any remaining


solids, heavy metals, or salts that might collect on equipment and interfere with their operation. While the benefits to the plant are apparent, it’s the community-driven results that will take the company into the future, according to Le Dressay. “Water is a very precious resource and we did not want our refinery to be a burden on Regina’s water resources. This is a blueprint for our long-term success as a refinery. It’s also our industry finding a way to balance the work of providing energy and being environmentally and socially conscious for the community,” he says. With the elimination of city water, the refinery’s reliance on freshwater resources will be reduced by an estimated 30 per cent or the equivalent of freeing up water usage for 3,100 homes in Regina on an annual basis. Also, since the water is recycled and returned to the plant, the refinery will have zero discharge into the city’s municipal wastewater treatment plant. Along with the reduction in water usage and wastewater, WIP will also significantly decrease VOC emissions from the refinery’s wastewater ponds, substantially reducing the nuisance odours the refinery’s neighbours sometimes smell. Le Dressay states there will be zero discharge from the ponds once the system is fully operational. While new technology and sustainable initiatives keep the CRC modern, Le Dressay says it’s the Co-op’s business model, which has been in place for almost 100 years, that will continue to take the company and refinery into the future. “The co-op movement comes from a different perspective because it comes from small communities. There’s a focus on community, environmental stewardship for future generations, as well as fiscal responsibility. There is no financial recoup on WIP, it’s a break-even project but the recoup of social responsibility is huge.” v Previously published in the winter 2016 issue of We Build, the official publication of the Saskatchewan Construction Association.

In 2013, the CRC completed a $2.8-billion expansion, increasing its oil production by 30 per cent to more than 130,000 barrels a day.

In partnership with GE, the CRC designed and developed the $200-million Wastewater Improvement Project (WIP). Since the water is recycled and returned to the plant, the refinery will have zero discharge into the city’s municipal wastewater treatment plant.

Saskatchewan Oil Report 2017

39


Keystone XL Timeline

W

ith the recent changes in the U.S. government and progress being made to move the project forward, here is a look at some key dates in Keystone XL’s history. 2008 July: TransCanada and ConocoPhillips, joint owners of the Keystone Pipeline, propose a major expansion to the network dubbed Keystone XL to carry oilsands bitumen from Alberta to Texas. 2009 As the U.S. State Department wades through comments based on an environmental assessment of the project, TransCanada starts visiting landowners potentially affected by the pipeline. Opposition emerges in Nebraska. June: TransCanada announces it will buy ConocoPhillips’s stake in Keystone. 2010 March: The National Energy Board approves TransCanada’s application for Keystone XL, though the approval comes with 22 conditions regarding safety, environmental protection and landowner rights. April: The U.S. State Department releases a draft environmental impact statement saying Keystone XL would have a limited effect on the environment. June-July: Opposition to Keystone XL begins mounting in the United States. Legislators write to then-secretary of state Hillary Clinton calling for greater environmental oversight; scientists begin speaking out against the project; the Environmental Protection Agency questions the need for the pipeline extension. July: The State Department extends its review of Keystone, saying federal agencies need more time to weigh in before a final environmental impact assessment can be released.

40

Saskatchewan Oil Report 2017

2011 August 26: The State Department releases its final environmental assessment, reiterating that the pipeline would have a limited environmental impact. August-September: Protesters stage a two-week campaign of civil disobedience at the White House to speak out against Keystone XL. Police arrest approximately 1,000 people. September 26: At a demonstration on Parliament Hill in Ottawa, police arrest 117 of 400 protesters. November 10: The State Department says TransCanada must reroute Keystone XL to avoid an ecologically sensitive region of Nebraska. November 14: TransCanada agrees to reroute the line. December: U.S. legislators pass a bill with a provision saying President Barack Obama must make a decision on the pipeline’s future within 60 days. 2012 January 18: President Obama rejects Keystone, saying the timeline imposed by the December bill did not leave enough time to review the new route. Obama says TransCanada is free to submit another application. February 27: TransCanada says it will build the southern leg of Keystone XL – from Cushing, Oklahoma to the Gulf Coast – as a separate project. This is not subject to presidential permission, since it does not cross an international border. April 18: TransCanada submits a new route to officials in Nebraska for approval. May 4: TransCanada files a new application with the State Department for the northern part of Keystone XL. 2013 January 22: Dave Heineman, governor of Nebraska at the time, approves TransCanada’s proposed new route

for Keystone XL, sending the project back to the State Department for review. January: Pipeline opponents file a lawsuit against the Nebraska government claiming the state law used to review the new route is unconstitutional. 2014 January 31: A State Department report says Keystone XL would produce fewer greenhouse gas emissions than transporting oil to the Gulf of Mexico by rail. February 19: A Nebraska judge rules that the law that allowed the governor to approve Keystone XL over the objections of landowners was unconstitutional. Nebraska says it will appeal. April 18: The State Department suspends the regulatory process indefinitely, citing uncertainty about the court case in Nebraska. November 4: TransCanada reports the costs of Keystone XL have grown from US$5.4 billion to $8 billion. November-December: Midterm elections turn control of the U.S. Congress over to Republicans, who say they’ll make acceptance of Keystone XL a top priority. 2015 January 9: By a narrow margin, a panel of seven judges on the Nebraska Supreme Court strikes down the lowercourt decision. January 29: The U.S. Senate approves a bill to build Keystone XL, but the White House says Obama would veto it. February 24: Obama vetoes the bill. June 30: TransCanada writes to thensecretary of state John Kerry and other U.S. officials saying the State Department should include recent climate change policy announcements by the Alberta and federal governments in its review of Keystone XL. November 2: TransCanada asks the U.S. government to temporarily suspend its application.


November 4: The U.S. government rejects that request. November 6: The Obama administration rejects TransCanada’s application to build the Keystone XL pipeline. TransCanada CEO Russ Girling says he’s disappointed but continues to believe the project is in the best interests of both Canada and the U.S. 2016 January 6: TransCanada files notice to launch a claim under Chapter 11 of the North American Free Trade Agreement, alleging the U.S. government breached its legal commitments under NAFTA. May 26: Republican presidential contender Donald Trump says he would approve Keystone XL if elected, a promise he repeats several times during the campaign. November 8: Trump elected president. 2017 January 24: Trump signs executive order that he says approves Keystone XL, but he also suggests the U.S. intends to renegotiate the terms of the project. He also signs an order requiring American pipelines to be built with U.S. steel. January 26: TransCanada submits a new presidential permit application. March 4: The White House says Keystone XL won’t use American steel because the pipeline is already under construction and Trump’s presidential directive is “specific to new pipelines or those that are being repaired,” according to a White House spokesperson. March 24: U.S. State Department grants presidential permit for Keystone XL. TransCanada discontinues its NAFTA challenge. The company still has a significant hurdle to clear in Nebraska, where the state’s Public Service Commission must approve the route. In a statement, U.S. Energy Association Executive Director Barry Worthington said, “President Trump’s decision to approve the Keystone XL pipeline is good for North American energy security, economic growth, and environmental

protection. The approval ends a lengthy political fight and shows Canada, our friend and neighbor, that the U.S. is a reliable partner and friend. “The U.S. currently imports nearly three million barrels of oil per day from OPEC countries at about $50/barrel. That is $150 million/day we send out of this country. Replacing some of that oil with Canadian resources makes better sense, and it improves our negotiating power and diplomatic efforts worldwide.” Fred Jauss, partner at international law firm Dorsey & Whitney and a foremost experts in licensing and permits, adds, “In obtaining the presidential permit, TransCanada has cleared a big hurdle toward getting Keystone XL operational. However, the permit is only

part of a web of federal, state, and local permits that must be obtained prior to starting construction. There’s a lot of work ahead but today’s grant of the permit allows TransCanada to push forward in earnest toward obtaining those other permits and getting pipe in the ground.” March 29-30: A coalition of environmental groups files two federal lawsuits challenging the U.S. federal permit for the Keystone XL pipeline, saying the initial environmental review completed in 2014 is inadequate and outdated, and that it “fails to properly account for the pipeline's threats to the climate, water resources, wildlife and communities along the pipeline route.” v Saskatchewan Oil Report 2017

41


Canadian Oil Industry Not Threatened by Trump By David Yager, Yager Management Ltd.

O

n the day of U.S. President Donald Trump’s inauguration, the official White House website was rewritten, including 361 brief words outlining the future of

American Energy Policy. Titled “An America First Energy Plan,”

ment Tax (BAT) and the notification of the intent to revisit NAFTA. But the White House is sending strong signals that whatever new policies the U.S. enacts, they don’t appear to be directed at Canadian oil and gas.

it starts with, “The Trump Administration is committed to en-

A senior advisor to Trump met with the federal cabinet at

ergy policies that lower costs for hardworking Americans and

a recent retreat in Calgary. The Calgary Herald reported Janu-

maximize the use of American resources, freeing us from de-

ary 24, “Stephen Schwarzman, a billionaire businessman who

pendence on foreign oil.” Canada is a foreign country. The

chairs Trump’s team of economic advisers…suggested that Ca-

U.S. is our largest buyer of oil and gas, and we are their largest

nadian energy exports to the United States are unlikely to be

foreign supplier. This doesn’t read well. There has been endless

hit with a new cross-border tax.” Schwarzman said, “There

speculation on how awful this is going to be for a Canadian oil

may be some modifications, but, basically, things should go

patch finally emerging from the economic wilderness.

well for Canada in terms of any discussions with the United

However, reading the other 323 words reveals no bad news.

States. Trade between the U.S. and Canada is really very much

Trump will eliminate or soften environmental protection laws,

in balance and is a model for the way that trade relations

stating, “Lifting these restrictions will greatly help American

should be.”

workers, increasing wages by more than US$30 billion in the

A Bloomberg story in the National Post carried the views

next seven years.” America will, as Alaska governor and Re-

of David McNaughton, Canadian ambassador to the United

publican vice-presidential candidate Sarah Palin declared in the

States. McNaughton said, “I don’t think Canada’s the focus

2008 election, “Drill, baby, drill”.

at all. Their biggest concern, frankly, in terms of trade, is the

The plan continues with, “The Trump Administration will embrace the shale oil and gas revolution to bring jobs and

deficits they have with China and Mexico. That’s what they’ve raised.”

prosperity to millions of Americans. We must take advantage

The Trump Administration is looking positively friendly. On

of the estimated $50 trillion in untapped shale, oil and natural

January 24, 2017, the White House issued an executive order

gas reserves, especially those on federal lands…”

to get the stalled Dakota Access pipeline finished and Key-

Wouldn’t it be nice if someone besides Saskatchewan Premier Brad Wall said these things? There’s more. “Less expensive energy will be a big boost to

stone XL underway. It is not intuitive the U.S. would want more Canadian oil as a source of future BAT revenue instead of safe and secure energy supplies.

American agriculture… boosting domestic energy production

With the trade and tax issues becoming clearer, of greater

is in America’s national security interest… achieving energy in-

interest should be: what does cutting the American oil indus-

dependence from the OPEC cartel and any nations hostile to

try loose through fewer regulations and obstacles mean to

our interests… (and) a brighter energy future depends on en-

future Canadian exports? In the past few years, the mantra

ergy policies that stimulate our economy, ensure our security,

has emerged that our best customer has become our biggest

and protect our health.”

competitor because the U.S. put 4 million barrels per day of

There have been many nervous moments surrounding

new production on stream, primarily light tight shale oil (LTO).

Trump’s inauguration on January 20 about a Border Adjust-

What does “drill, baby, drill” to unlock US$50 trillion worth of

42

Saskatchewan Oil Report 2017


Rank

Country

Reserves, Billions of Barrels

1

Venezuelea

298,400,000,000

2

Saudi Arabia

268,300,000,000

3

Canada

171,000,000,000

4

Iran

157,800,000,000

5

Iraq

144,200,000,000

6

Kuwait

104,000 000 000

7

Russia

103,200,000,000

8

United Arab Emirates

97,800,000,000

9

Libya

48,3600,000,000

10

Nigeria

37,070,000,000 1,430,130,000,000

shale oil and gas mean for the WCSB? Take a deep breath, examine the facts, and figure out on which side of the 49th parallel our challenges lie. Everyone reads regularly about the unbelievable potential

ber 31, 2015. At US$50 a barrel, the EIA number would be worth nearly $2 trillion. That’s a lot of oil and a lot of money. But it is 960 billion barrels short of a trillion and $48 trillion short of $50 trillion.

of American LTO. For two years we’ve been told the U.S. has

Gas looks the same. The EIA reports proved gas reserves at

replaced Saudi Arabia as the world’s “swing producer.” Every

December 31, 2015 at 388.8 trillion cubic feet (tcf). Say gas

week when the U.S. active oil rig rises, another analyst pre-

sells for US$3.50 per thousand cubic feet (mcf), which is the

dicts lower oil prices are inevitable. The legendary Permian

current price. If all of this were extracted and sold, the total

Basin is at the top of the news, as is rig productivity. The fact

value is $1.4 trillion, a pile of money. But it’s about $48.6 tril-

new horizontal wells continue to do a bit better than the last

lion below the new president’s estimate.

ones due to continuous improvements in drilling speed, multi-

Add them both up compared to the White House’s new

stage completion systems, frac density, initial production rates

stated energy opportunity and it’s about $45 trillion below

and lower decline curves.

the stated potential. That’s a whack of hydrocarbons that

Considering it took a century to perfect the vertical well,

must move from “maybe” to “probable” to “proven,” which

that horizontals should continue to improve with technology

is fine. Based on technology and price and all the variables

and practice should surprise no one. This is reflected in lower

that accompany the upstream petroleum industry, you never

finding and development costs and higher recovery rates,

know. What has already happened in the U.S. was thought

meaning LTO operators can do better at US$50 or less than

impossible at the turn of the century. Higher prices will cer-

ever before. Rising service prices, essential to get service com-

tainly help.

panies on location and keep them in business, will increase

To give you an idea of what an oilfield that can truly shape

costs somewhat. But the biggest gain is in equipment, tech-

global markets or a country looks like, consider the Ghawar

nology and procedures.

deposit in Saudi Arabia. Discovered in 1951, this single field

But to the point of the new White House energy policy: are

was estimated to have recoverable reserves of 72 to 100 bil-

there actually one trillion barrels of oil to be unlocked through

lion barrels, greater than the remaining reserves of the bottom

the bold policy initiatives of the Trump administration? Or in-

three of world’s top ten countries ranked by proven crude re-

cluding gas, one trillion barrels of oil equivalent. That’s what

serves. This field has been chugging along at 5 million barrels

$50 trillion works out to. Is this somehow a threat to Cana-

per day for decades. Infield drilling, horizontal drilling and sec-

dian oil exports? Is this even possible?

ondary recovery have helped prove Ghawar is not unlike the

One trillion barrels of oil is a lot. According to worldatlas.com, the proven oil reserves of the top ten oil producing countries in the world are listed in the chart. The total is 1.4 trillion barrels.

Permian Basin, except it is more prolific. The Saudis estimated in 2008 half was still available for production. This is not to say North American fields are without promise. In November, the United States Geological Survey (USGS)

Note the U.S. doesn’t make the list. It ranks number 11

estimated the Wolfcamp shale in the Midland portion of the

at 36.5 billion barrels. The Energy Information Administration

Permian Basin could potentially hold 20 billion barrels of oil,

(EIA) figure is higher at 39.9 billion proved barrels at Decem-

6 tcf of gas and 1.6 billion barrels of natural gas liquids. If it Saskatchewan Oil Report 2017

43


But even under Trump’s new regime and exciting new plays like Wolfcamp, is there a set of circumstances under which Canadian oil will no longer be required? Never. Review the foregoing. Never. Without one or two Ghawars secretly concealed from U.S. explorationists for the past century or longer, the idea a Trump-fueled investment boom in some of the most expensive oil in the world will displace all — or even a meaningful portion — of U.S. imports anytime soon is fantasy. is all there, that’s a 50 per cent bump in U.S.-proven reserves.

dressed, is economic competitiveness. This may be the greatest

A statement reads, “This estimate is for continuous (unconven-

damage the Trump administration will inflict on the Canadian

tional) oil and consists of undiscovered, technically recoverable

oil patch. With the exception of lower service and labour prices

resources.” In 2012, the USGS published another report indicat-

since crude collapsed, operating costs in Canada have only been

ing the fields in the Permian basin could have 2.7 billion more

rising for some time. This includes regulations, transportation

recoverable barrels than previously thought. It is a massive de-

and most recently, corporate tax increases, carbon taxes and an

posit. There is for sure opportunity.

oilsands emissions cap. These costs are rising because of gov-

But back on planet earth, EIA statistics report for the four

ernment policy, not geology.

weeks ended January 13, 2017, U.S. oil imports average 8.3

If Trump delivers on streamlined regulations and increased op-

million barrels per day. While this is down significantly from prior

portunities (including access to restricted federal lands) while

years, thanks to the LTO miracle, net imports were 7.5 million

Canada continues in the opposite direction, capital will migrate

barrels per day in the U.S. now that the country exports oil of

to jurisdictions with the simplest rules and highest rate of return.

certain grades to specific markets. Canada exports about 3.5

When it comes to Alberta this is already underway. The destina-

million barrels per day to the U.S., accounting for 42 per cent of

tions for many larger Canadian operators has been U.S. basins

American imports.

such as the Permian, Marcellus and Bakken. Capital formerly

But even under Trump’s new regime and exciting new plays like Wolfcamp, is there a set of circumstances under which Canadian oil will no longer be required?

destined for oilsands is going elsewhere. Even the weather makes it cheaper to operate in the U.S., where the extreme cycles of winter followed by spring break-up

Never. Review the foregoing. Never. Without one or two Gha-

affect activity and investment doesn’t exist. Long-term planning

wars secretly concealed from U.S. explorationists for the past

and year-round operations are simpler and less expensive for

century or longer, the idea a Trump-fueled investment boom in

Americans. Canadian efforts on climate change through car-

some of the most expensive oil in the world will displace all —

bon taxes are meant to ensure spring break-up always follows a

or even a meaningful portion — of U.S. imports anytime soon

historically cold winter. It is unlikely anybody considered the oil

is fantasy. It will take massive drilling, federal lands included, to

patch would be more profitable in Canada if we could just level

make a significant dent in imports. And judging by the wording

off the temperature fluctuations.

of the White House energy statement and recent announce-

When Donald Trump talks about a new “America First” ener-

ments, if America does reduce oil imports from Canada, it will

gy strategy, Canada must remember the U.S. deals with multiple

be last to lose market share.

suppliers. Canada shares with the U.S. the longest unguarded

From a reserve and production perspective, for the U.S. to

border in the world. The Keystone XL announcement indicates

become everything President Trump figures it should or could

that, for Trump, Canada is the bottom of the list of oil and gas

be, it will require much more than reversing Barack Obama’s

importers that are an issue.

environmental protection legislation; it will take a geological

But for our oil and gas industry not to be affected by the

miracle. So long as we don’t do anything really stupid, Canada

Trump presidency, we must remain economically competitive.

will be able to sell the U.S. all the oil this country can produce

In terms of energy policy, trade, fiscal regime and operating en-

for the foreseeable future.

vironment, the greatest threat to Canada’s oil and gas industry

But the key words are “really stupid.” The last issue regarding Canada/U.S. energy relations, which has yet to be properly ad44

Saskatchewan Oil Report 2017

comes from Canada, not the U.S. v Originally published on Oilprice.com.


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Great Plains College Kindersley Campus Welcomes Third Class Power Engineering Students

G

reat Plains College Kindersley Campus is welcoming the first cohort of students to the high-demand third class power engineering program. The new program, brokered from Southern Alberta Institute of Technology (SAIT), complements the existing fourth class power engineering certificate in Kindersley.

Great Plains College Kindersley Campus is pleased to offer the high-demand third class power engineering program. The new program, which is brokered from Southern Alberta Institute of Technology (SAIT), complements the existing fourth class power engineering certificate in Kindersley.

46

Saskatchewan Oil Report 2017

The third class power engineering program, which is four months long, begins in April. Successful completers of the eight-month fourth class program, which begins in September, can complete both programs back-to-back.


“Many of our students that complete the fourth class power engineering program are looking to continue their education with the third-class course,” says Fritz Eckstein, Great Plains College region manager. “This new program will allow our fourth-class students to continue into third class training, while also opening the doors for others to further their education and career in the field.” “Our instructors and staff are working hard to meet the demand for power engineering training in the province and they are doing so by providing a high-quality learning environment,” he says. “A testament to that is the high employment rate and provincial exam success rate earned by our current fourth class students.” According to provincial test results, the Kindersley fourth class power engineering student success rate was 94.12 per cent on the part A provincial exam. Furthermore, the Great Plains College 2013-14 annual follow-up survey conducted by Fast Consulting, highlighted that 83 per cent of contacted Kindersley fourth class power engineering graduates were employed within the year following their program. To be considered for the third class power engineering program, applicants must hold a fourth-class certificate. Applications are currently being accepted for the fourth-class program beginning in September 2017. Anyone who completes an application by April 30, 2017, is eligible to receive a $500 entrance scholarship. “The third class power engineering program, which is four months long, begins in April, so successful completers of the eight-month fourth class program, which begins in September, can complete both programs back-to-back,” says Eckstein. Successful completion of the third-class courses will give students six-month’s worth of credit toward the Technical Safety Authority of Saskatchewan’s steam time requirements at the third-class level. Students will have the opportunity to write the third class part A and part B interprovincial exams. To be eligible for the third class power engineering provincial certification, students must complete an additional six months of steam time in the industry. It is the student’s responsibility to arrange this steam time.

Great Plains College is a trusted partner in safety training and works closely with businesses to deliver training courses and certification that is required to maintain health and safety compliance, making employees safer, more productive and knowledgeable. “It is for this reason we offer optional safety courses to our power engineering students,” says Lana Rhodes, Great Plains College safety training consultant. “It would be a disservice to them if we didn’t give them the opportunity to become certified with the tools they

need to successfully, and safely enter the workforce.” Those interested in the fourth or third class power engineering program can submit an online application at greatplainscollege.ca/apply or stop in at the nearest Great Plains College campus and complete a paper application. v To find out more about this program, you can contact the Kindersley Campus by phone at 306-463-6431 or by email at info@greatplainscollege.ca. You can also call toll-free 1-866-296-2472.

SAFETY TRAINING GREAT PLAINS COLLEGE IS YOUR TRUSTED PARTNER FOR ALL YOUR SKILLS AND SAFETY TRAINING NEEDS.

Choose from our regular course offerings: • • • • • • • •

ATV/UTV Training Coiled Tubing Blow Out Prevention Confined Space Entry Defensive Driving (option to include in-vehicle assessments) Detection and Control of Flammable Substances Enform Fall Protection for Rig Work/Fall Rescue for Rig Work Enform Fall Protection General Fit Testing for Self Contained Breathing Apparatus (Quantitative) • Global Ground Disturbance • H2S Alive • Powered Mobile Equipment Operator ie: Forklift, Skidsteer, Aerial Manlift, Zoom-Boom, Telehandler, Scissorlift, and more!

• Red Cross First Aid/CPR/AED • Safety Management & Regulatory

Awareness for WellsiteSupervision (SARA) • Safety Program Development /SECOR Refresher • Well Service Blow Out Prevention CUSTOM TRAINING OPTIONS AVAILABLE

To register or find out about these current listings and more, visit greatplainscollege.ca/courses or call 1 (866) 296-2472.

Sk Oil and Gas Report Apr 2017.indd 1

Kindersley • Swift Current • Warman Biggar • Maple Creek • Rosetown

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Innovative Solutions to Age-Old Questions By Josh Glew, MBA Business development manager, Western Heritage

Using a magnetometer to determine soil age.

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Taking samples for geoarchaeological analysis.

ow more than ever, there’s a demand for innovation in the oil and gas sector from all levels of the supply chain. At the same time, delivery of innovative solutions is also more active than ever. Producers demand innovation from suppliers to keep costs low, create efficiencies and save time. Suppliers find that innovation distinguishes them from competitors and makes their products or services more attractive to customers. This push and pull for innovation applies to products and services and the way they are delivered. The goal of innovation is to create value, and organizations are rising to the challenge. Western Heritage has a long history of bringing innovation to both the archaeology and heritage management disciplines. It has always looked at the new technologies and techniques it can use or apply in new and creative ways to create value for clients and partners. Western Heritage was one of the first heritage firms to use satellite imagery and nearsurface geophysics in archaeology, and pioneered archaeology classification systems still used as the industry standard. Recently, Western Heritage has focused its remote-sensing expertise on developing the Environmental Footprint Monitoring Platform (EFMP). The EFMP uses high-resolution multi-spectral satel-

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Using ground penetrating radar to identify buried features.

lite imagery to monitor key environmental indices over a project area. It provides important information about vegetation health and productivity, aquatic health, and it monitors change in a format that can be accessed quickly and easily online. Allowing managers to view an entire project footprint at once and identify areas that need closer inspection without ground testing saves time and money. Applying remote-sensing techniques to the newest satellite technology has allowed Western Heritage to provide its clients with a new way to view and manage environmental health. Western Heritage has also been a pioneer in integrating near-surface geophysical techniques into our heritage management services. Ground-penetrating radar is ideal for identifying buried features that should not be disturbed, such as graves or pipelines in concrete. Geoarchaeology, or the application of methods of the earth sciences to archaeological problems, has been applied in Europe for quite some time but is fairly new to Canada. Western Heritage has led the introduction and adoption of this innovative technique, which can help reduce uncertainty when little physical archaeological material remains. For customers and regulators, this means greater confidence in results and less risk.

Innovation should not only be applied to goods and services offered for sale, as it is important to nurture and apply innovation to an organization’s internal processes. Western Heritage has switched to task-based billing, ensuring clients pay for the task completed, regardless of the employee completing the work. This results in lower costs for the client and more efficient use of internal resources within the company. To ensure services are delivered quickly and efficiently, Western Heritage uses remote offices. These offices are staffed seasonally, reducing overhead costs while ensuring there is a local employee to deliver service during field season. As the oil and gas sector sees pricing return to favourable levels, the demand for and supply of innovation and value should not decrease. Western Heritage is looking forward to introducing new innovations in services and products, as well as where and how business is done. Western Heritage is developing new sensors to give a better understanding of projects, taking innovations to new markets such as South America, and exploring new processes and approaches to deliver even more value to clients. Even though the questions may be old, innovation allows Western Heritage to answer them in new and exciting ways. v


Weyburn: Fostering Business and Personal Growth

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he City of Weyburn is a dynamic community that has both a strong and diverse economic base. Weyburn has long been established as a central figure for the upstream oil industry in Saskatchewan. Weyburn sits geographically atop the Bakken Formation, one of the most prolific oil-producing patches in the world. Not surprising that you will find corporations such as Cenovus Energy, Crescent Point Energy and Enerplus calling the community home in terms of headquarter locations. Agriculture continues to be the backbone of the community. As the world looks to farmers to meet an ever-increasing need for food supply, Weyburn’s position as one the of the largest inland grain gathering points in North America makes it a vital contributor to a global challenge. Agribusiness, food companies and major farm implement dealers continue to thrive and expand into the community. As the central community in southeast Saskatchewan, Weyburn is the preferred locale for the public sector and professional regional head offices, contributing an enduring inventory of stable employment opportunities. Among the several key professional and public sector headquarters in Weyburn are SunCountry Health Region, South East Cornerstone School Division, Southeast College administrative offices, and a SaskPower regional distribution center. “Weyburn prides itself on being the location of choice for many companies and public sector services head offices. This translates into stable employment opportunities and a business atmosphere,” says Twila Walkeden, executive director of Weyburn Regional Economic Development. With three major highways crossing the city, convenient access to Weyburn is never a problem. Highway 13, stretching from Lethbridge, Alta. to Winnipeg, Man., is named the Red Coat Trail. Much

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As the central community in southeast Saskatchewan, Weyburn is the preferred locale for the public sector and professional regional head offices, contributing an enduring inventory of stable employment opportunities. of its length follows the route of the historic path taken in 1874 by the NorthWest Mounted Police in a quest to bring law and order to the West. Highway 39 is one of Canada’s busiest highways and provides a major trucking and tourism route between the United States and Western Canada. Highway 35 (the CanAm Highway) connects the U.S. border to vast, untouched lakes and rivers in northern Saskatchewan, popular to nature seekers, hunters and anglers. Weyburn’s proximity to Regina offers access to a wide range of support and services. Whether moving goods, services or people, Weyburn companies enjoy access to an extensive transportation network with global reach. Weyburn is located only an hour from the Global Transportation Hub (GTH), which is Canada’s only autonomous and self-governing Inland Port Authority. The GTH provides rail access to all major Canadian ports, Gulf Coast ports and the Midwest U.S. transshipment points and trucking connections to all major networks. “The ability to efficiently move goods makes Weyburn the ideal location for several major manufacturing firms,” Walkeden says.

Weyburn is known for providing a safe, friendly, and healthy, balanced lifestyle. A close-knit neighbourhood community with low crime rates, and economic strength makes Weyburn a great place for a family to live. In 2016, MoneySense magazine named Weyburn the best place to live on the Prairies. Weyburn was also named one of the top 10 places to live in Canada when it comes to affordable housing. That same year, Expedia.ca placed the city in the 11th spot on its Friendliest Communities (and Towns) in Canada list. “More evidence that Weyburn is a great place to live, do business in and visit,” says Walkeden. Residents and visitors alike enjoy beautiful rural surroundings including lakes, parks, and the connection to the agricultural lifestyle. Weyburn’s stable economic base, its transportation accessibility and its attractive labour force are why businesses are attracted to it. While enjoying the luxuries of small-city life, Weyburn’s central location in the southeast maintains easy access to the convenience and services of larger centres. v


your next investment opportunity in Weyburn, SK Business Information Site Location Investment Market Research

The prosperous healthy diverse economy is attracting investors from around the world the fastest growing city in Southern Saskatchewan.

Weyburn Regional Economic Development 11 Third Street 306-842-4738 info@weyburneeconomicdevelopment.com www.weyburneconomicdevelopment.com


Two Realizations Coming Out of a “Break up from Hell 2.0” By Mark Salkeld, President and CEO, Petroleum Services Association of Canada (PSAC)

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hen times are tough, the first things to go are safety budgets and supply-chain relationships. This is my fifth experience with a downturn in the Canadian oilpatch and I clearly remember when the infamous NEP struck Alberta. My safety point accumulation account promptly ceased — this was an incentive plan that awarded points for adherence to safety standards in exchange for coveted items like leather jackets, ball caps and coveralls. It wasn’t long after that when the shop PA system sounded out names, typically on Monday mornings, and mine was among them. It was my first and only lay off during a 36-year career in oilfield services. I remember the sense of sadness over the loss of safety points and the feeling of dejection from being laid off. As I’ve come to witness repeatedly in my career, the first sign of reigning-in spending is the elimination of safety programs. The next sign of reigning in I experienced while climbing the corporate ladder came in the form of letters from E&P customers requesting a significant lowering of invoices. Demands of 10 to 30 per cent cuts with noncompliance clauses forefeiting the relationship became commonplace in downturns, with threats of sending the project back to tender or using suppliers that complied with these demands. Fast forward to today and nothing seems to have changed. I will concede that there is a higher regard for safety, but it still comes under the chopping block near the onset of a slowdown. For example, in fall 2016, a service company executive doing field calls

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to 15 operational locations was not site-specific orientated once, and was signed-in to location twice. There was no dedicated safety person on location and whoever held that responsibility probably had 10 other duties to tend to, such as running the pumping unit and blenders. Safety is a culture for some operators; for others, it is an expense and a checked box on some redundant safety registry to satisfy the customers pretense for safety oversight. And the supply-chain relationship? There are E&P’s out there bragging about lowering costs through a reverseauction process. A reverse auction is an online system that automatically extends the bid after the preceding lowest bid is submitted, sharing that last lowest bid number to encourage desperate-for-revenue oilfield service and supply companies to bid lower. It is a despicable cost-savings innovation that damages relationships. Recent studies suggest Canada is 15 to 20 years behind other countries when it comes to supply-chain relationships in the oil and gas industry between producers and service companies. I have worked in oilfields around the world and I tend to agree with that estimate. At first it was difficult to adjust to the tendering process in other countries. You must reveal far more information than when tendering bids in Canada. But the ultimate result when the bid is won and a fiveyear contract secured, is a collaborative and supportive relationship with the customer instead of an adversarial and penny-pinching one. Everyone comes out a winner with job security, economies of scale realized through

longer-term planning, and cost savings realized and shared between the customer and service provider. These supply-chain tenets promote an open and respectful relationship, further allowing for the professional and expedient resolution of issues. I have yet to witness a similar supply-chain relationship in Canada. When it comes to oilfield service, supply and manufacturing safety, and supply-chain relationships, the Canadian oil and gas industry has plenty of room to improve. We need more professional supply-chain relationships and we need a much greater commitment to safety. There are savings to be realized through both. I believe the key to enhancing safety is to create, mandate and enforce a uniform set of safety standards that every level and aspect of the Canadian oil and gas industry must adhere to — in good times and bad. The ability for producers to rip up contracts without repercussions when their margins are threatened cannot be an accepted business practice. Canadian suppliers must become comfortable with opening their books to customers during the tendering process, knowing that the process will be respected. If contracts are won, it is a collaborative and respectful relationship through to the mutually agreed upon end to the contract. There are solutions to these industry challenges — and Petroleum Services Association of Canada is committed to bringing them to the table in 2017 and beyond. Those that buy in will win, those that do not will lose — it is as simple as that. v


Dakota Access Lifeline By Bette Grande and Isaac Orr

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estern North Dakota has a history of oil booms and busts. The cycle began when oil was discovered in the region in the 1950s and again in the 1980s. Today, global oil prices and a lack of pipeline transportation have put the crunch on oil production, putting the industry at risk once again. But all that might change now that President Donald Trump has signed executive actions designed to speed the construction of the Keystone XL and Dakota Access pipelines, thereby extending a lifeline to the western North Dakota economy. The approval of these pipelines is a stark break from the previous administration’s policies, which obstructed the construction of vital pipeline infrastructure. These pipelines greatly improve the economics of transporting oil and make the North American energy industry more competitive in the global marketplace. Transporting oil from North Dakota via pipeline is less expensive than transporting oil by rail. It costs approximately $15 a single barrel of oil by rail, but it is estimated transporting oil via the Dakota Access pipeline (DAPL) will only cost $7 to $8 per barrel. Reducing transportation costs will significantly affect North Dakota oil producers. They are currently forced to sell their oil at a discount compared to other areas, because they pay higher transportation costs, so the pipeline’s potential savings will improve business dramatically. The Keystone XL Pipeline will likely extend a similar lifeline to oil producers in Western Canada, many of whom are dependent on oil exports to the United States to gain access to greater global markets. Western Canadian oil has sold at a discount of about $14 per barrel compared to West Texas Intermediate oil over the past year, data compiled by Bloomberg shows.* That may shrink to $5 to $7 per barrel should more pipelines be built. Although it now appears these pipelines will be constructed — thanks to the support given by the Trump administration — multiple roadblocks imposed in

the past have delayed their completion and driven up costs for energy companies and local governments. For instance, the protests against the completion of DAPL have so far cost taxpayers and construction companies tens of millions of dollars — and this does not include clean-up costs (to avoid the environmental disaster left behind by the protesters) and the still-accumulating court costs. Like Keystone XL, the site of the Dakota Access pipeline became the epicenter of the national anti-pipeline protest in 2016. Thousands of protesters occupied land near the Standing Rock Sioux Reservation to prevent the completion of the project. Although many of the protesters were peaceful, others — including some who were paid to protest — swarmed construction sites, burned vehicles, killed livestock, and damaged construction equipment. In some cases, the protests caused schools to be put on lock-down, making it impossible for parents to get to their children. The nature of the protests overwhelmed local law enforcement and necessitated additional law enforcement from multiple jurisdictions to be brought in to ensure safety and protect property, all at an enormous cost. According to the North Dakota Department of Emergency Services, the cost of the protests, as of February 10, 2017, is about $33 million — and it’s still rising. North Dakota oil production dipped below one million barrels per day in Sep-

tember, October, and December of 2016, but that it is less likely to occur again now that it appears the Dakota Access pipeline will finally be completed. DAPL will vastly improve the economics of producing oil in the Bakken. It’s also likely a major reason Continental Resources has announced it will invest $700 million in North Dakota in 2017. Pipeline protesters often say, “water is life,” but it seems they do not realize oil is also life. The United States gets 35 per cent of all the energy it uses from oil. Oil is what powers the ambulances taking our loved ones to the hospital, and it is the fuel that transports protesters’ organic vegetables to the grocery store. In fact, energy independence is national security. We can either produce our oil domestically, creating hundreds of thousands of jobs for American workers, or import it from other countries, many of which use the funds to support causes most Americans totally oppose. v Bette Grande (Think@heartland.org) is a research fellow at The Heartland Institute. She represented the 41st District in the North Dakota Legislature from 1996 to 2014. Isaac Orr (IOrr@heartland.org) is a research fellow specializing in hydraulic fracturing at The Heartland Institute. *https://www.bloomberg.com/news/ articles/2017-01-24/canada-may-face-era-of-pipelineabundance-after-keystone-move

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Pumps and Suppliers: Confusingly Simple By Trevor Dahl, flotech pump

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hen I started in the equipment industry almost 20 years ago, I never imagined I would end up in the pump world. However, here I am enjoying every minute of it. I would have to say my favorite part is the secretive magic of the pump world, something a person would never understand until they have calculated a system curve. Sadly, this world is troubled by two major problems — incorrectly sized pumps that lead to failure and the lack of support when problems arise. The pump world is filled with many words the outside world doesn’t seem to make much sense of. You have friction loss, total dynamic head, net positive suction head, performance curves, system curves, laminar flow and a myriad of other terms that can sound like a different language to someone who doesn’t speak pump. This gets even more complicated when you look at one pump model and realize it comes with 20 different options, all of them producing a different result. For those new to pumps, the most common question is, “why?” I believe this is because most see a pump as a machine that moves the wet stuff from one point to another, which couldn’t be further from the truth. This leads to the world of pump failures. I don’t know how many times I have spoken with someone on site who uses colourful language about a pump that isn’t working properly. Yet, people fail to realize there is no such thing as the perfect pump. Pumps are built to precise specifications and each one leaves a factory designed for a specific job. If a pump is used for a job outside its designed purpose, bad things happen. This all comes down to fluid dynamics. When designing a pump system or sizing a pump, you need to take data into consideration. This is why pump companies bombard you with questions. Every answer you give can drastically change the type of pump you need. There’s an important reason behind each question a company asks. What is the product you are trying to pump? Is it solid, abrasive, caustic or food grade? What is the temperature? How far are you pumping? What are the elevation distances? How fast do you need the product pumped? Is it an installed system or a temporary system? Do you have a duty point? The list of questions is endless, but your answers depend on whether you receive a pump that will fail in the first few days to months, or a pump that is going to last years. In the end, we are trying to stop you from having to deal with damages, downtime and unnecessary repairs. You want liquids being pumped to move smoothly and at peak efficiency. If you 54

Saskatchewan Oil Report 2017

try to pump too fast you lose laminar flow; pump too slow and you are below efficiency. Both cause damage to the pump. There are many rules of thumb in the pump world and understanding a few can save you time and improve production. Using the right equipment can also result in big financial savings. I make a point to sit down and make sure I have all the answers I can get from a customer before I leave to make sure they are getting the right equipment for the job. The biggest thing to remember is pumps are application specific. You will never force a pump to perform a task outside its design. The further you push a pump out of its design, the more expensive it becomes. In my early years, I had a customer who destroyed four pumps in a month. The repair bill each week was $175,000 all because they ran a six-inch hose instead of an eightinch hose. Ignoring the recommendations was expensive. Accepting the mistake would have saved the company hundreds of thousands of dollars. FloTech Pump is not trying to sell you a more expensive pump. The company is trying to find you the pump that will last the longest for what you need it to do. This is where I had my largest eye opening. I came from the large corporate pump world, where six to 12-week lead times were the norm. I did however have a huge problem with this, especially when my customer’s operation was down and they couldn’t wait the time needed to get a pump or parts. In the end, they spent extra money to continue operations. When I moved down to a smaller company, I noticed big, positive change. We stock parts to support the customer. It’s an amazing concept you would think everyone would know. It was weird for me to be able to say, “Absolutely, we have the correct parts you need in stock. And we will ship them today. You should have them tomorrow.” I was lucky enough to find a company that shared the same idea as me — keeping parts on the shelf, collaborating with our customers and preparing for their needs. Even though there are times we have to wait for the delivery of a special order, we have a large selection of pump models readily available. We understand that everything comes down to the dollar. Working with a pump supplier that takes your needs first will save you thousands on downtime and repairs, which is one of the reasons I am happy I found FloTech Pump. For once it feels good to be able to say, “Yes, I have that, and I will have it to you right away.” v


Providing Pumping Solutions to Industry Since 1993 Bay 1, Building D, 3911 Brandon Street S.E. Calgary, AB T2G 4A7

P: 403-236-2886 F: 403-225-8446


Powerful Future The Energy Centre at Lakeland College is the only integrated power plant created by a post-secondary institution in Western Canada.

Shawna Dillon completed both the heavy oil and gas program and heavy oil operations technician program at Lakeland College.

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hawna Dillon is looking forward to beginning a career in power engineering. Dillon’s three-year Lakeland College journey began in 2014, when Dillon completed the heavy oil and gas (HOG) program, earning certification as a production field operator.

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“The HOG program really opened doors for me,” she said. Advancing her studies, Dillon completed Lakeland’s heavy oil operations technician (HOOT) program in 2015. With this certificate program, she earned her fourth class power engineering and had the opportunity to learn in the Husky Energy power engineering lab. Now that Dillon’s completed the heavy oil power engineering (HOPE) program, she also has her third class power engineering. Dillon gained valuable hands-on training as one of the first HOPE students to train in Lakeland’s Energy Centre. She worked on a team to generate heat and power for the Lloydminster campus. In fact, second-year HOPE students produce and supply up to 215 kilowatts of electricity during peak performance to the Lloydminster campus. “The best part about everything was learning about the industry. At first,

I knew very little and now I am prepared,” said Dillon. “I accomplished everything I wanted to at Lakeland.” Lakeland College is the only post-secondary institution in Western Canada to create an integrated power plant – the Energy Centre – featuring a oncethrough steam generator for heavy oil training. In addition to HOPE and HOOT, Lakeland offers online blended courses for fourth and third class power engineering training as well as other energyrelated programs and courses that can result in careers such as gas process operator, production field operator, and fired process heater operator. The energy department is now developing a face-to-face second class power engineering program it hopes to offer soon. Established in 1913, Lakeland College is a place of possibility that serves more than 8,300 students every year at its campuses in Vermilion, Alta., and Lloydminster, Alta./Sask., and through online and off-site programs and courses. An award-winning global leader in student-managed learning experiences, Lakeland excels at providing students with the opportunity to take the lead. Lakeland’s Centre for Sustainable Innovation is a test-bed for innovations in agriculture, energy and environmental sciences. v For more information visit lakelandcollege.ca. Facts: • HOOT and HOPE students achieved an 86 per cent pass rate for the fourth class Alberta Boilers Safety Authority (ABSA) exam, trumping the 2015 provincial pass rate of 67 per cent. • The Energy Centre was recognized with an award of merit for building engineering at the 2016 Consulting Engineers of Alberta’s showcase awards. • Nine out of 10 Lakeland graduates are currently employed. (Source: Class of 2014 Graduate Follow-up Survey, 2016)


It’s Quality Time Suburban Extended Stay Hotel converts to Quality Inn & Suites

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uch like a marriage we’ve taken a new name, The Quality Inn & Suites in Estevan, Moose Jaw and Kindersley. In May 2017 we will change our hotel flag to Quality Inn & Suites by Choice Hotels from Suburban Extended Stay by Choice. It allows us to maintain the Choice Privileges Hotel Reward Program preferred by travelers while bringing a new and fresh approach to hospitality to each market. When you are out on the road you want to be staying somewhere clean, comfortable, reliable and affordable. The Quality Inn & Suites locations in Estevan, Moose Jaw and Kindersley are all those things and so much more. The hotels offer so much to travelers who are coming through for business, pleasure, visiting family or for local art, culture or sporting events. Our Choice Privileges Hotel Reward Program (you can join today online at www.choicehotels.ca/en/choice-privileges) is a feature your employees can use when on their own leisure travel. Each of our locations has a complimentary breakfast to offset some of your costs. We don’t stop there — the Estevan property offers a complimentary dinner for guests during the week during the fall, winter and spring months. Kindersley offers a complimentary off-site gym and fitness pass. Moose Jaw offers discounts at local restaurants and local recreation centre passes. All locations ensure you get your money’s worth. The hotels’ spacious guest rooms have a fully-equipped kitchen facility, coffee maker, a work space with a desk, high-speed Internet access and a flat-screen television. The perfect locations and convenient access to area attractions makethe Quality Inn & Suites a great place to stay while you are in the Estevan, Moose Jaw or Kindersley areas. They are all huge supporters of the community, local events and initiatives. Contact us today to discuss preferred hotel rates based on volume hotel bookings, and save even further. Opportunities increase when you help others win. A little win for a partner is a little win for you. v ESTEVAN – Box 1486, 404 Kensington Ave, Estevan SK S4A 2L7 P: 306.634.8332 Email: rwall@encorehotels.ca. www.choicehotels.ca/cn923 MOOSE JAW – 323 Diefenbaker Drive, Moose Jaw SK S6G 0C1 P: 306-972-7829 Email: gsotto@encorehotels.ca. www.choicehotels.ca/cn998 KINDERSLEY – Box 1946, 700 12th Ave E, Kindersley SK S0L 1S0, 306-463-5000 Email: clindsay@encorehotels.ca. www.choicehotels.ca/cn996

The hotels offer a range of services to travelers coming through for business or pleasure.

Quality Inn & Suites offers a clean, comfortable, reliable and affordable place to rest your head in Estevan, Moose Jaw and Kindersley.

Spacious guest rooms have a fully-equipped kitchen facility, coffee maker, a work space with a desk, high-speed Internet access and a flat-screen television.

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60 Years of Growth, Leadership and Diversity

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ark Derochie continues to lead the way as one of the top industrial coating contractors in North America, specializing in all types of industrial coatings, fireproofing, fire stopping, blast cleaning and scaffolding as well as mechanical and sprayfoam insulation. The company has experienced continued growth and diversification, expanding nationally with branches located in Surrey, B.C.; Edmonton and Fort McMurray, Alta.; Saskatoon and Regina, Sask., and in Manitoba. At Park Derochie, we are proud of our unique corporate culture. Park Derochie was built on the principles of strong work ethic, commitment to customer satisfaction, developing a skilled and dedicated workforce, and a belief that loyalty begets loyalty. This culture, some of which grew naturally from small-company beginnings, sets us apart from the competition and has helped us become one of Western Canada’s most admired companies. MAINTAINING THE HIGHEST STANDARDS OF QUALITY AND SAFETY Providing uncompromising safety, and quality workmanship to our clients is a strong component within our core principles of business ethics. When it comes to safety, we are proud to be leaders in the industry and our safety record confirms this.

ATTRACTING QUALITY AND DIVERSITY Attracting quality, long-term individuals is key to the success of our company and we recognize that job satisfaction is vital to employee retention. As a company, we promote, encourage and financially support continuous learning for all employees. We are proud to be an equal-opportunity employer with a long-serving workforce that includes diverse cultural backPark Derochie is an equal-opportunity employer, dedicated to fostering an grounds. We are inclusive and supportive work environment. dedicated to fostering an inclusive and supportive work environment. We respect and value the diverse backgrounds and traditions of all employees and the rich diversity of the communities in which we operate. COMMUNITY INVOLVEMENT We have always held the strong belief that investing in our community and our youth is as important as investing in the people within the company. Park Derochie regularly contributes 58

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to numerous sectors including school programs, youth sports, health foundations, charities and community programs. We firmly believe that supporting health, wellness and education builds stronger, healthier individuals who, in turn, pay it forward, creating stronger communities. We consider these donations and sponsorships, not an obligation, but a privilege.

Park Derochie regularly contributes to charities and community programs.

ABORIGINAL ENGAGEMENT We place a significant focus on engagement with Aboriginal Peoples, including local partnerships with First Nations, as well as working with various community educational groups and tribal councils throughout Saskatchewan. Since Park Derochie Coatings (Saskatchewan) Inc. was established in 2010, we have built a workforce of more than 160 employees. Not only has engagement with Indigenous people created amicable working relationships, it has also provided Park Derochie with a workforce of young, enthusiastic workers that make up an average of 30 per cent of our employees. Park Derochie has employed cost control analysts, site superintendents, foremen and general workers from various Aboriginal communities in Saskatchewan. The company is also proud to note that 53 per cent of Park Derochie Saskatchewan’s operation is made up of Indigenous people, visible minorities and women. History of excellence bodes well for the future PD Group of Companies Inc. was named one of Canada’s Best Managed Companies in 2015 for excellence in business performance and we are proud to have requalified and retained that status in 2017. The Park Derochie difference is apparent — striving to provide well-managed, turn-key, hassle-free services to clients, and dedication to the enrichment of the communities in which we operate. Park Derochie has proven to be an unparalleled subcontractor when it comes to corporate social responsibility, innovation and expertise. Every employee works every day to live up to our mission statement, which is to “provide ‘best in class’ services.” v


Servicing Wells in Alberta Saskatchewan & Manitoba

Since 1988


Southeast College has a mobile confined-space simulator, allowing for students to train in tight conditions.

The Trainer of Choice Southeast College offers the training students need close to home

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or 40 years, Southeast College has served the southeast region of the province. Its campuses in Estevan, Weyburn, Assiniboia, Moosomin, Indian Head, and Whitewood serve over 70 communities throughout 20,000 square kilometres and allow students to stay closer to home while getting the training they need. The college delivers a diverse and flexible set of full and parttime programs, safety training, and education upgrading options. Full-time programs are accredited through Saskatchewan Polytechnic. Part-time credit programs make room for learning along with life, with courses that run evenings and weekends, allowing students to balance their other obligations, such as full-time jobs or family. The college’s Saskatchewan Energy Training Institute offers training for life and work in the energy sector with a diverse selection that includes fall protection, ground disturbance, and first aid to enrich an employee’s opportunities. Many of the institute’s programs were developed with industry partners, such as Enform and the CAODC. Other Southeast College courses are also developed through consultations with the communities it serves; the customer service excellence workshop was created by request from the local business community. Southeast College is also working with local businesses that qualify for the Canada-Saskatchewan Job Grant (employers can find out how to qualify here: http://economy.gov.sk.ca/job-grant). With grant funding, employers can train new or existing employees for about a third of the cost, providing both value for employers and opportunities for employees to train for a new or better position. Training can be tailored to meet specific company or

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Saskatchewan Oil Report 2017

The college offers a diverse set of full and part-time programs, safety training, and education upgrading options.

organization needs, allowing for flexible and successful programming that works for students and employers. The college also offers adult basic education (ABE), a program for students who may not have completed high school or wish to improve their marks to allow them to be admitted to postsecondary training. Students can set their own pace, suited to their needs and abilities, and will be assessed by a qualified instructor at the start of their program to help set and meet goals for learning. Southeast College is committed to dynamic, flexible programs for the communities it serves. It also offers labour market attachment specialists who create opportunities that turn students into employees, with training and support for students and potential employers. v For more information about Southeast College and CanadaSaskatchewan Job Grant training, or to find out about custom training options, contact the administrative office in Weyburn at 306-848-2525. To see a complete listing of available safety courses, visit the website at http://www.southeastcollege.org/programs/seti/ safety-classes.htm


Northern Shield Helicopters

Transwest Air’s helicopter division, which has been serving Saskatchewan for more than 50 years, is now called Northern Shield Helicopters.

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he name may be new, the colour scheme and paint jobs on the helicopters are definitely new, but the company and the experience its crews deliver are certainly not. Northern Shield Helicopters is the rebranding of the helicopter division of Transwest Air, and has been delivering helicopter services to Saskatchewan for more than 50 years. It all began with a Bell 47G, and the company has maintained a Bell fleet ever since. Transwest Air has rebranded its helicopter division to truly showcase its helicopter capabilities. Northern Shield’s eight hightech helicopters transport people and/or cargo to inaccessible locations. It supports a wide variety of industries — taking oil and gas seismic crews and their equipment to exploration sites, delivering mining employees to drilling locations to assess development viability, and taking firefighters and their gear to forest fires. Northern Shield also rescues people in medical distress from isolated spots where planes can’t land and brings them to the nearest health facility. The Northern Shield fleet is provided by Bell Helicopter, which is one of the largest helicopter manufacturing companies in the world. The fleet contains two Bell 206 light category units (capacity of four passengers and up to 1,000 pounds, or 454 kilograms), one Bell 206L4 unit (capacity of six passengers and up to 1,400 pounds, or 635 kilograms), three Bell 407 intermediate category units (capacity of six passengers and up to 2,500

pounds, or 1,134 kilograms), and two Bell 205 medium category units (capacity of 14 passengers and up to 4,000 pounds, or 1,814 kilograms). The qualities of Northern Shield Helicopters are consistent with those of Transwest Air. This is a company that not only has the largest fixed-wing segment in the province with over 20 diverse planes (on wheels, skis and floats), but has provided reliable, safe and efficient flights for over 60 years — both scheduled and chartered, carrying passengers or cargo, for personal or corporate use. It is the company’s forward thinking that led to the creation of a redesigned passenger/cargo combination aircraft to service the needs of communities in northern Saskatchewan. Recently, Transwest Air and Northern Shield Helicopters were purchased by Westwind Aviation. It is now a wholly-owned subsidiary of Westwind. Westwind Aviation is 87 per cent Aboriginal owned and 13 per cent employee owned. Transwest Air and Northern Shield Helicopters were born in the north and are proud to continue serving people in the north. v For more information about Northern Shield Helicopters you can contact Adam Kaine, chief pilot and director of flight operations at 306-764-1404 or by email at a.kaine@northernshieldhelicopters.com. Saskatchewan Oil Report 2017

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Index to Advertisers Annugas Compression Consulting Ltd........................................ 19

Lakeland College.....................................................................OBC

Big Bore Directional Drilling Ltd................................................. 12

Netzsch Canada, Inc..............................................................6 & 7

Black Gold Rush Industries Ltd................................................... 21

Park Derochie Coatings (Saskatchewan) Inc................................. 3

Brandt Tractor Ltd..................................................................... IBC

Pumps & Pressure Inc................................................................ 27

Bravo Target Safety.................................................................... 23

Pyramid Corporation................................................................. 45

CIM 2017................................................................................. 33

Saskatchewan Ministry of Economy........................................... 15

Cat-Tek Cathodic Services Ltd................................................... 29

Saskatchewan Workers’ Compensation Board.............................. 5

D&G Polyethylene Products Ltd,................................................. 16

SaskTel....................................................................................... 9

Days Inn Swift Current................................................................. 4

Southeast College..................................................................... 17

Falcon Enterprises..................................................................... 59

Suburban Extended Stay Hotels................................................. 13

FloTech Inc................................................................................ 55

Transwest Air / Northern Shield Helicopters................................ 25

GB Contract Inspection Ltd........................................................IFC

WBPC – North Dakota Petroleum Council.................................. 37

Great Plains College.................................................................. 47

Western Heritage...................................................................... 49

Kenilworth Combustion.....................................................10 & 11

Weyburn Chamber Of Commerce.............................................. 51

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Saskatchewan Oil Report 2017


FAMILY MATTERS. VALUE RUNS IN THE FAMILY. At Brandt, we’re proud to know you trust us to provide all your equipment and service needs – just as we have for more than 80 years. With Brandt’s versatile and reliable line of equipment, you’re sure to have the right gear when you need it. And with 27 locations nationwide, Brandt is the world’s largest privately held John Deere Construction and Forestry Dealer. Our 24/7 Product Support Centre, John Deere certified technicians, and uncompromising commitment to after-sales support mean we’ve got what you need, when you need it. That’s Powerful Value. Delivered.

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IT’S MORE THAN HANDS-ON, IT’S STUDENT-MANAGED That’s what makes a Lakeland College education different. Apply what you learn in class to real-life projects. • Operate cutting-edge equipment in our new Energy Centre to generate heat and electricity for the Lloydminster campus

• Teach local elementary students how to add and subtract in a math fair you host

• Run a profitable agribusiness on the Student-Managed Farm – Powered by New Holland

• Restore a cherished relic of the past or build the vehicle of your dreams

• Start your own play program for children

• Tackle environmental projects through the Student-Environmental Consulting Office (S-ECO)

• Lead a team as the captain or battalion chief while battling the most realistic fire simulations in Western Canada at the Emergency Training Centre

• Exceed your clients’ expectations with manicures and more in the student-run spa

• Design an award-winning kitchen

For details on how Lakeland College can help you take the lead, visit lakelandcollege.ca.

To book a tour of the Vermilion or Lloydminster campus phone 1.800.661.6490

Saskatchewan Oil Report 2017  

The 2017 issue of the Saskatchewan Oil Report features stories on recovering the province's long-lost heavy oil, the controversy over pipeli...

Saskatchewan Oil Report 2017  

The 2017 issue of the Saskatchewan Oil Report features stories on recovering the province's long-lost heavy oil, the controversy over pipeli...