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Work Safe—live safe

2016 ANNUAL REPORT


CONTENTS Overview.............................. 2 President’s Message Chairman’s Message 2016 in Review.................... 8 Industry Partners.............. 14 Enform Services............... 18 Training Tools for Industry Voice for Industry Events PetroLMI Service Locations Safety Performance Governance....................... 30 Board of Directors Executive Team Looking Ahead in 2017..... 34 Financials.......................... 36

ENFORM

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WORK SAFE—LIVE SAFE

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Overview

19:45 hrs Arriving home safe from work

“I’ve totally adopted a culture of safety. You don’t want anything happening to your people, They’re number one.” Trevor Sopracolle | Co-founder, Goliath Snubbing

In 2002, he fell 25 feet (eight metres) from a snubbing basket onto a drilling platform. Goliath’s entire 12-man workforce is Enform-trained and certified.

keeping you safe on and off the job

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Overview

In Canada’s oil and gas industry, safety is everything. It protects people, properties and communities. It is the framework for all operations, from field to front office, from exploration and production to transportation and refining. It is around the clock. We live and breathe safety so Canada’s oil and gas industry can live and work safely. Together with our industry association partners, we anticipate and respond to the unique operational challenges of Canada’s energy industry to improve safety—and overall performance. We support safe industry operations today and tomorrow. 2016 was a challenging year for our industry. The Fort McMurray fires, the worst natural disaster in Canadian history, forced the evacuation of field offices, operations and communities. The fires, coupled with the economic downturn of recent years resulted in mass layoffs in Canada’s oil and gas industry. In good times and bad, Enform is proud of the role we play as the industry’s leading safety advocate. Our products and services have an impact on hundreds of thousands of workers, helping to make sure each one is safe every hour of every day. Our commitment to an injuryfree workforce is unwavering. And it’s 24/7.

“Safety is built into everything you do, from the very first thought of an idea all the way to the completion of a project. It’s really end-to-end thinking. It’s the way you do your business.” Gord Walsh | Senior Manager, Health and Safety Training, Enform

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ENFORM

ENFORM

Enform was created in 2005 for a single purpose: to improve safety throughout Canada’s oil and gas industry. Enform also collaborates with industry partners and stakeholder associations, governments and regulators. Our shared knowledge and experience forms the foundation for our programs and services, which range from custom training and special events to training and certification.

Our mandate is to promote health and safety practices through safety management planning and consultation. Our work goes far beyond hard hats. We’re here as a trusted resource for our industry, the workers and their families and communities in which we operate. We’re proud to help ensure hundreds of thousands of workers get home safely every day. Together, our vision of having an injury-free workforce is possible.


The Petroleum Industry Training Service (PITS) is founded.

The first Petroleum Industry Annual Safety Seminar is held.

The Nisku hands-on equipment training facility opens.

1949 every 2005 1951 1988

day every year 2006

-2009

for over 50 years we have been Canada’s leading resource and advocate for safety in the oil and gas industry.

2013

Enform is created through a merger of PITS and the Canadian Petroleum Safety Council (CPSC).

Enform opens offices in British Columbia and Saskatchewan.

Enform celebrates its 25th anniversary of H2S Alive and the Nisku Training Facility.

2016 challenges

In 2016, our industry’s challenges were enormous: A second year of depression in global energy markets. Canadian companies faced thousands of further layoffs and dramatic spending cuts. Shareholder profits and company values plummeted. Numerous companies disappeared. A wildfire in Fort McMurray became the worst natural disaster in Canadian history. It forced the evacuation of an entire city and hundreds of nearby communities, field offices, camps, worksites and operations.

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President’s message

“Renewed drilling activity and industry hiring has brought cautious optimism to the first quarter of 2017.” CAMERON macgillivray

If there is one effort Canada’s oil and gas industry will be remembered for in 2016, it is the unprecendented response to the country’s largest natural disaster, the Fort McMurray wildfire. As first responders fought the flames or during weeks of company operation shut-ins and restarts, there were zero direct industry losttime incidents and injuries as a result of the fire. Tens of thousands of workers in the community were trained in safety protocols and practices. They knew exactly what to do in an emergency. As a result, 90,000 people safely evacuated the region. In addition to the wildfire, 2016 continued to be difficult. Oil prices remained low. More jobs were lost. Despite all this, companies in Canada’s oil and gas industry

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continued to invest in health and safety training—albeit on a smaller scale. Enform issued more than 150,000 certifications to workers in some 80 health and safety and technical courses. While these levels were down by 52 per cent from record highs in 2014, safety still remains a constant in our industry. Our organization continued to adapt to the times in 2016. Our plans to merge with the Oil Sands Safety Association were put on hold. We became smaller and leaner, but remain dedicated to responding to industry needs. We heard industry’s and workers’ concerns on marijuana legalization and its impact on safety in our workplaces. With legislation expected, Enform will continue to represent industry on this important issue.

ENFORM

We will also focus on initiatives launched in 2016, including adoption of standardization and rigorous data collection to improve safety performance. I want to thank Duane Mather, the outgoing Board Chairman. His 35-year career of leadership in the oil and gas industry includes serving as the Chairman of the Enform Board of Directors since 2010, and as a member of the Board since 2005. Duane’s professional contribution and insightful leadership has helped Enform navigate industry’s challenges and opportunities. Thanks to Duane, our new Chairman Greg Stringham, our Board of Directors, our staff and contractors, we are well positioned to continue with the important work ahead. Renewed drilling activity and

industry hiring has brought cautious optimism to the first quarter of 2017. As new and recalled workers head back to the field, we remain mindful of their safety. Data shows that injuries increase when activities ramp up after a downturn. We will be ‘shovel-ready’ and prepared to support returning workers with the health and safety training support they require. Despite the turbulence of the past few years, we have shown resilience and strength as an industry. We look forward to the year ahead in continuing our work in collaboration with industry.

Cameron MacGillivray President and Chief Executive Officer, Enform


CHAIRMAN’s message

“We have adapted to change, while keeping our eye firmly on the end goal: to support industry in its drive towards safety excellence and zero incidences.” Duane Mather

About a dozen years ago, the Canadian Petroleum Safety Council and the Petroleum Industry Training Service merged to create Enform, the safety association for Canada’s upstream and midstream oil and gas industry. I’ve been fortunate to be part of Enform since then, serving first on the Board of Directors and then, for the past six years, as chairman. Every year has been both exciting and trying for the industry—and for Enform. Enform has successfully navigated the same challenges and opportunities facing industry: volatile markets, a global financial crisis, expanding and contracting workforces and new technologies and regulations, just to name a few. These factors have affected the type and volume of training, programs and resources that Enform provides industry.

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Because Enform was created by industry for industry, we have always anticipated and responded to industry’s needs and direction. We have adapted to change, while keeping our eye firmly on the end goal: to support industry in its drive towards safety excellence and zero incidences. During the 35 years I worked in Canada’s oil and gas industry, I saw health and safety become a top priority for companies and workers. Today, it is woven into all aspects of operations, from day-to-day activities to the culture of organizations. That work continues. The industry is emerging from two of the most difficult years in decades. While there is renewed optimism and opportunity, there are also challenges. Maintaining and improving the health and safety of a new or renewed

workforce requires focus, cost-effective training and program delivery, and an even stronger emphasis on developing safety cultures.

On December 31, 2016, I completed my term with Enform. I leave confident the organization will continue to evolve and adapt to meet the needs of industry, and its Board of Directors and hard-working staff, instructors and contractors will continue to help position the industry it serves for future success.

It’s been a distinct pleasure to work in Canada’s oil and gas industry for much of my career, and I am proud of what Enform has accomplished for Canadians.

Duane Mather Past Chairman of the Board, Enform

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2016 IN REVIEW

21:57 hrs Fort McMurray State of emergency declared

“It was quite the experience. It was tough on our guys, but it was very impressive to see them come together to protect the city.” Chuck Brousseau | Vice President of Operations, Environmental Refuelling Systems Inc.

SURVIVING THE STORM

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2016 IN REVIEW

FORT MCMURRAY FIRES

A heavy blow from the country’s biggest-ever natural disaster. The Fort McMurray wildfires in May 2016 added to the industry’s ongoing woes by forcing the shut-in of many oil sands operations, including the first ever in 37 years by Syncrude. The fire (named The Beast) interrupted an estimated $1 billion of production and disrupted service companies and pipeline operators. While a highway accident claimed the lives of two individuals fleeing the fire, more than 90,000 people

fled the city and surrounding area. In the early days of the fire, first responders believed dozens more, even hundreds, could perish in the flames. None did. It’s a remarkable testament to the power of preparedness. The safety skills and know-how of the industry played a major part in minimizing the impact of the fires on workers and the community. The culture of safety that permeates the region’s oil and gas industry extended into the community. Children in daycares and schools in Fort McMurray were evacuated with the same order and control as workers at sites such as Mildred Lake.

Photographed by Heather Theede

Photographed by Cole Burston

“If the wildfire of 2016 has shown us anything, it’s that we have the plans, people and provincial supports in place to respond safely and quickly to wildfires.” Drew Zieglgansberger | Executive Vice President of Oil Sands Manufacturing, Cenvous

E AC 3 May Largest wildfire evacuation in Alberta history begins

S.O.E

E AC

Provincial State of Emergency declared

4,000 evacuees at oil sands camps airlifted and flown to Edmonton and Calgary

4 May

5 May

7 May

25K

1,110

E AC

Evacuees housed at oil sands work camps

Firefighters battle the fires

Staff of CNRL, Husky, Shell and Suncor facilities are evacuated

Source: http://yourmcmurraymagazine.com/special-editions/2016-wildfire-commemorative-edition/the-story/1786/2016-fort-mcmurray-wildfire-a-timeline-of-events

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Photographed by Mark Heather Blinch Theede

251,000 hectares of land covered by ‘The Beast’

15 May 16 May

8,000 Non-staff evacuated from work camps north of Fort McMurray

ZERO 3 June

8 JUNE

1 July

$125M+

Re-entry

Donations to the Canadian Red Cross for disaster relief

Restricted access begins for first wave of returning residents

ENFORM

Direct industry lost-time incidents and injuries as a result of the fire

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2016 IN REVIEW

a gruelling two years

The drop in energy prices has lingered for more than two years. The industry has had deep and extensive spending cuts along with project cancellations and 53,000 direct job losses. Thousands of other jobs that support the oil and gas sector were also lost. The impact reverberated across the country and throughout the economy.

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25%

Reduction in direct workforce in the Canadian oil and gas industry.

1000s

More indirect jobs lost in oil and gas related sectors.

$29

One of the biggest challenges facing our industry will be to compete for workers.

The price of a barrel of oil in January 2016, compared with $93 in 2014.

Carol Howes | Vice President of Communications and PetroLMI, Enform

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a new normal emerges

The cost restructuring and rising oil prices towards $50 USD per barrel put many companies in a position to be sustainable. Other signs of cautious optimism appeared in late 2016: rebounding rig counts and government approvals for the development of potential pipelines and liquefied natural gas (LNG) projects. Industry, however, remains guarded. The pace and magnitude of activity over the next few years depends on several factors, including whether oil prices will stabilize and Canada’s ability to expand markets, enhance productivity and reduce costs. Even good news in the industry has a sober side. Drilling rig activity is picking up but companies hiring new employees have reported difficulties in filling available positions that require skilled and experienced workers. Widespread layoffs in oil and gas and related industries have seen many workers move to more stable employment. In addition, the attraction and retention strategies companies used to offer, such as above-average compensation and benefits packages, changed significantly with cost-cutting measures.

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INDUSTRY PARTNERS

15:30 hrs Executive task force planning meeting

“As industry leaders, we have a profound responsibility to promote and inspire a culture of safety that will better protect the workers and communities in which we work.� Jim Donihee | Co-lead of the Enform Task Force Steering Committee and Chief Operating Officer of the Canadian Energy Pipeline Association

strength in numbers. Strong Expertise.

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INDUSTRY PARTNERS

Safety Leadership

Safety is both bottom up and top down. The Executive Task Force (ETF) on Safety Culture is a group of leaders and senior executives from industry companies and associations. They are working to create a broad, unified strategy on safety culture. The ETF is also a forum for communication and alignment between industry, regulators and other stakeholders. The strategies developed by the ETF are woven into practical tools, resources and training programs created and designed for real-life use. In 2016, the ETF held a roundtable discussion with the four leaders from the Western Regulators Forum to underscore the industry’s commitment to and progress in strengthening its safety culture.

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Canadian Association of Geophysical Contractors (CAGC) The Canadian Association of Geophysical Contractors (CAGC) is the voice of business in the Canadian Seismic Industry. The CAGC develops and maintains a business environment in which Geophysical and Support Industries can earn a fair rate and provide new employment opportunities.

Canadian Association of Oilwell Drilling Contractors (CAODC) The Canadian Association of Oilwell Drilling Contractors (CAODC) is a voice for Canada’s drilling and service rig contractors. For 60 years, CAODC has been a place where member companies cooperate on issues that encourage a safer, stronger and more efficient industry.

Canadian Association of Petroleum Producers (CAPP) The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP’s member companies produce about 90% of Canada’s natural gas and crude oil.

Canadian Energy Pipeline Association (CEPA) The Canadian Energy Pipeline Association (CEPA) represents Canada’s transmission pipeline companies. CEPA members transport 97% of Canada’s daily crude oil and natural gas production from producing regions to markets throughout Canada and the United States.

Explorers and Producers Association of Canada (EPAC) The Explorers and Producers Association of Canada (EPAC) advocates on behalf of its member companies for sound government policy that promotes a thriving junior and intermediate oil and gas sector.

24 7 working together with our six industry partners, we focus on identifying safety risks and developing solutions to meet them.

Petroleum Services Association of Canada (PSAC) The Petroleum Services Association of Canada (PSAC) is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry.

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Capital Power's Island Generation Station

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ENFORM SERVICES

08:00 hrs On-site TRAINING SESSION

“Enform’s training was customized and went well beyond a slide deck. overall the experience of the instructor and concrete examples made safety hit home.” Don EDL | manager of warehousing, Capital Power

Aiming higher and thinking further.

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SERVICES Training

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Our Vision: zero work-related incidents or injuries in the Canadian oil and gas industry.

Training Profile

Breadth: more than 80 courses delivered world-wide Varied delivery: classroom, hands-on, online, simulated and at worksites. Timely: designed to meet current industry needs Customizable: to individual company’s operations

Certifications

Enform’s certification levels in 2016 were reflective of the widespread cutbacks in all areas of oil and gas operations. With industry activity down, the demand for training also declined in comparison to previous years. We responded by reducing training fees by 15 per cent in 2016, in order to ensure safety training remained accessible to industry.

25% Decline from 2015

52%

Decline since record high in 2014

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ENFORM COURSES

Top Ten Courses:

80+

Courses offered by Enform

1 H2S Alive

®

2 Electronic General Safety Orientation (eGSO) 3 Petroleum Safety Training (PST) 2.0 4 Oilfield Driver Awareness 5 Bear Awareness 6 OSSA Basic Safety Orientation (BSO) 7 Wildlife Awareness Online (includes Bear Awareness) 8 Detection and Control of Flammable Substances 9 Well Service Blowout Prevention  econd Line Supervisor’s 10 S Well Control (Test Well)

500

Enform instructors

150,000 Training certificates issued in 2016


“In order to work in sour gas environments, our employees are trained in Enform’s H2S Alive and use top-quality selfcontained breathing apparatus.” Tyler Smith | Safety Manager,

Techmation Electric and Control

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SERVICES TOOLS FOR INDUSTRY

Industry resources

Every year we develop and distribute safety tools, resources and information sessions driven by industry feedback, data trends and incidents. In 2016, we: Hosted 14 information sessions  eveloped nine topic outlines D for Toolbox Talks  ent 17 Safety Alerts to more S than 4,000 subscribers

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Tools for Industry

“We’re always re-evaluating safety as a group. If someone doesn’t understand something during a hazard hunt, we take the time right there to review the hazard step by step until everyone understands.” Ras Evarts | Driller, Beaver Drilling.

Certificate of Recognition

It’s the ultimate test of safety planning and practices. Companies’ health and safety management systems are thoroughly evaluated by Enform’s certified auditors to determine if they meet provincial standards. It takes considerable effort to earn a COR and the companies that receive them are recognized with WCB incentives and reduced premiums to provincial workers compensation funds. Beyond this benefit, companies with a COR in Alberta for example, do see a direct correlation to better safety performance overall.

CAODC Safety Leadership award recipient

In 2016, Enform: Safety Stand down

Leadership inspires safety, reducing injuries and lost time and improving overall performance. Safety Stand Down is a chance to get your executives and managers together with supervisors and frontline workers, to talk about safety and reinforce the behaviours and attitudes that will make your organization a safer place to work. A Safety Stand Down Toolkit was developed in 2016 to address the top three injuries in the industry using Enform-WCB data: struck by an object; a slip, trip or fall (on the same level); overexertion.

Issued 2,664 certificates to COR companies In turn, the companies received $9.9 million in rebates from provincial worker compensation funds  ffered seven workshops and O additional resources to build awareness of the COR program  rovided various COR and P Small Employer Certificate of Recognition (SECOR) auditing options to reduce costs during the current economic downturn

ENFORM

Leading injury Causes

1st Fall on same level

2ND Struck by an object

3RD Overexertion

4tH Bodily reaction

5tH Highway accident

6tH Fall to lower level Top injuries ranking is based on three health and safety performance indicators: claim count, claim cost and lost days. Top six injuries for Enform funding sectors/codes in the provinces of AB, BC and SK for 2016.

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SERVICES A VOICE FOR INDUSTRY

Marijuana Legalization

Prime Minister Justin Trudeau has promised to make marijuana legal in Canada. When this becomes law, likely there will be less social stigma associated with the drug and more widespread acceptance. Marijuana impairs. Not always exactly the same way alcohol or other drugs (legal or illegal) do, but it still erodes people’s ability to think and act. And impairment of any kind in the oil and gas industry is dangerous. Both workers and employers have a personal and legal responsibility to take every reasonable precaution to ensure there’s a safe workplace. Many employers have already reviewed and updated (where necessary) their workplace policies and procedures to prepare for marijuana’s expected legalization. Employers are also looking to government for additional guidance and changes. “Restriction in the workplace is important for us. The ability to test is important for the industry and in safety-sensitive environments,” says MacGillivray. In August 2016, Enform outlined industry’s concerns in a letter to the Task Force on Marijuana Legalization, Regulation and Restriction.

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Mark Salkeld, the president and CEO of the Petroleum Services Association of Canada (PSAC), says industry needs to know how legalized marijuana can be managed in the workplace. “We’re not for or against the legalization of marijuana. We just want answers to what we think are fundamental questions that affect safety. We want to understand what controls are being put in place, such as defined limits measured with tools like the breathalyzer for alcohol, and what duty of care obligations employers will have for ensuring a safe workplace.” MacGillivray further emphasizes that workers are very concerned about their own safety and the safety of their peers in the workplace. “We have had those concerns expressed to us over the years. Nobody wants to put themselves or their fellow workers in danger.”

“We know marijuana affects cognitive and psychomotor functions. So, the presence of it in the system of a worker is unacceptable in the workplace, especially in safetysensitive areas.” Cameron MacGillivray | President and CEO, Enform

ENFORM


A VOICE for Industry

7,200+ @EnformSafety followers on Twitter, LinkedIn and Facebook

A WORKER’s perspective

Frontline Magazine Frontline is Enform’s consumerstyle health and safety magazine. Each issue covers a range of topics; in 2016 our stories included: the Fort McMurray wildfire, safe driving, coveralls worth wearing, driving and working in mud and safe company profiles. Frontline has a circulation of 8,000, is available online and is read by field workers, supervisors, health and safety professionals, and executives.

Online Presence

Enform.ca: In 2016, our website logged 520,000+ session visits by 280,000+ users. Top online resources in 2016: 1. Electronic General Safety Orientation (eGSO) 2. Health and Safety Management System Templates 3. Alcohol and Drug Policy Model for the Canadian Upstream Petroleum Industry Social Media Love it or hate it, there’s no denying the power and reach of social media. In 2016, we

continued to build our online community, connecting and engaging with workers, safety professionals and industry around safety. Social media posts in 2016 sparked conversation, entertained and most importantly facilitated dialogue on safety issues in the industry. The role of social media in the oil and gas community (and at Enform) continues to grow. The Enform Blog: Features timely and captivating online safety stories for and about people across the oil and gas industry.  ur most popular and most O shared stories included: an unemployed oilfield worker; getting help for your mental health, incident command/ emergency response; refusing unsafe work and a Safety Alert following a cougar attack.

“It’s an outlet for people to come and share their stories, and talk about their hardships or what they’ve been doing to change their situation.” Chad Miller | Oilfield Dads Chad harnessed the power of social media to create a space for unemployed oilfield workers. Within a few weeks of launching, his Facebook page @Oilfielddads went viral and grew to 5,000 likes. Chad’s story was the most popular and most shared Enform blog post in 2016. Photo shown to the right.

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SERVICES Events

65th Annual Enform Petroleum Safety Conference (PSC)

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733

Given the challenges in 2016, the industry remains committed to continuous learning and collaboration, attending special events held by Enform.

PSC attendees (including 47 from the U.S., and 37 from Ontario)

17 PSC Speakers

122 PSC trade show exhibits

120 Executive attendees at the 6th annual Executive Summit on Safety

445% Increase in executive attendees since 2011

“Companies with a strong safety culture typically have a strong record of regulatory performance. We don’t see this trend changing—even as companies look for operational efficiencies.” Jim Ellis | President and CEO of the Alberta Energy Regulator Statement made at the 2016 Executive Summit on Safety

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PETROLEUM SAFETY conference

A staple event, Enform’s annual Petroleum Safety Conference (PSC) in Banff, Alberta reflects industry’s ongoing interest in and commitment to safety innovation and advances. Conferencegoers find the PSC is a forum for learning, advancing the industry and collaborating with their peers. A post-event survey found 80 per cent of respondents were satisfied with the conference. The 2016 PSC sessions featured safety culture, building resilient workforces and navigating safety in tough times.

Executive Summit

Top management from across the oil and gas industry attended the Sixth Annual Executive Summit on Safety and shared their views and experiences on the event’s theme: safety culture. Panel presenters, leaders from the Western Canada Regulators Forum, shared their perspectives and insights on safety performance, amid change faced by Canada’s upstream oil and gas industry. Speakers: Peter Watson | Chair and CEO, National Energy Board Jim Ellis | President and CEO, Alberta Energy Regulator Paul Jeakins | Commissioner and CEO, BC Oil and Gas Commission

Ed Dancsok | Assistant Deputy Minister, Senior Strategic Lead, Oil and Gas Development, Saskatchewan Ministry of the Economy Structure


Petroleum Labour Market Information

PETROLMI

A division of Enform, PetroLMI is the industry’s reservoir of labour market data, insights, occupation profiles and other resources for workforce and career planning. Collaborating with industry, government, educators and training agencies, PetroLMI forecasts, promotes, monitors and evaluates the skills of the oil and gas labour market. Five major labour market reports by PetroLMI shaped much of the division’s work in 2016 and demonstrated the degree of change in labour opportunities. PetroLMI estimates that, depending on oil prices, between 6,700 and 17,100 new jobs could be created by 2021. But it also found that by the end of 2016, the oil and gas industry employed 25 per cent fewer workers (174,000) than the peak in 2014 of more than 226,000. To assist workers in these uncertain times, in the fall PetroLMI released the first phase of the Careers in Oil + Gas online tool (careersinoilandgas.com). This unique career planning tool allows current and prospective workers to browse, search and compare occupations in the oil and gas industry, as well as determine how to transfer their skills to other occupations and industries. As well, throughout the year PetroLMI participated in numerous job fairs and delivered presentations to job seekers, government and employers.

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SERVICES Service locations

EMBEDDED IN INDUSTRY

Enform is located where industry is based. Calgary | AB Nisku | AB

Fort St. John | BC Weyburn | SK

A strong national health and safety presence complements our Western Canada sites. Company Site Visits

In conjunction with provincial workers’ compensation boards and occupational health and safety regulators, Enform offers oil and gas companies one-on-one company site visits to help identify and solve safety related challenges.

NISKU TRAINING FACILITY

This is where training gets real— and simulated. Our multi-use Nisku Training Facility is hands-on learning in replicated oil and gas environments, from wells and in oilfield facilities. Some of our hands-on exercises at the Nisku Training Facility use computer scenarios of gas kicks in wells; which is actively supervised by fieldexperienced instructors.

166

Company site visits conducted

One-on-one and out in the field

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Fort St. John

Nisku

Calgary

Weyburn

Our Fort St. John office is focused on industry health and safety planning, support and resource development.

The Enform Nisku Training Facility, boasts a hands-on training facility for workers.

The Enform Calgary office, which is where the Corporate Office is located, is where training courses are regularly hosted.

Enform’s one-on-one company site visits started in the Weyburn office and has since expanded to include BC and Alberta.

31

52

BC site visits

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Alberta site visits

83

Saskatchewan site visits


safety performance

Statistics show safety performance has steadily and significantly improved and claim rates have declined– getting us closer to

AB 61%

Improvement in average claim rates in 2016 as compared to 2002.

SK 60%

Improvement in average claim rates in 2016 as compared to 2002.

6 4 2

YEAR

CLAI M R ATE

Improvement in average claim rates in 2016 as compared to 2002.

Alberta, Saskatchewan and British Columbia claim rate 15 year trend continues to decrease.

8

2002

2004

2006

2008

2010

2012

2014

2016

YEAR

2002

2004

2006

2008

2010

2012

2014

2016

2002

2004

2006

2008

2010

2012

2014

2016

15 12 9 6 3

YEAR

The lowest claim rate was recorded in 2016 over a 15 year period across three Western provinces. This is a 7.0% average year-over-year decline. *Data based on AB, BC and SK Enform funding sector codes

5 4 3 2 1

CLAI M R ATE

BC 82%

CLAI M R ATE

24 7 ZERO.

ENFORM

“I am most proud of the working relationship that we have with industry. It’s an open door here and we are all working towards a common goal.” Bob Ross | Manager, Enform Saskatchewan

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Governance

13:00 hrs ENFORM BOARD MEETING

“whatever economic engines are at work, we are constantly improving safety standards, knowledge and practices. That’s what our industry wants, workers need and the public expects.” GREG STRINGHAM | INCOMING CHAIRMAN, ENFORM

Safety leadership today, for safer tomorrows.

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GOVERNANCE BOARD OF DIRECTORS

Strategic Guidance

Enform’s Board of Directors are members of our association partners and represent a broad cross section of Canada’s oil and gas industry. From frontline field experience to corner-office insight, their knowledge and skills ensure Enform encompasses the full scope of industry activity— and remains true to its mission and abreast of industry trends, patterns and developments.

BOARD MEMBERS

From left to right:  ark Salkeld | PSAC M President and Chief Executive Officer, Petroleum Services Association of Canada  od Garland | CAGC R Business Development Manager, Bear Slashing Inc.  ark Scholz | CAODC M President, Canadian Association of Oilwell Drilling Contractors  ary Leach | EPAC G President, The Explorers and Producers Association of Canada  ike Doyle | CAGC M President, Canadian Association of Geophysical Contractors

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 ameron MacGillivray C President and Chief Executive Officer, Enform  uane Mather D Outgoing Enform Chairman, Past President, Nabors Canada  im Donihee | CEPA J Chief Operating Officer, Canadian Energy Pipeline Association  urray Elliot M General Manager, Greater Deep Basin Unconventionals, Shell Canada Limited  reg Stringham G Incoming Enform Chairman, President, GS3 Strategies  im McMillan | CAPP T President, Canadian Association of Petroleum Producers

Not pictured:  obert Haynes R Senior Vice President, Human Resources, Environment, and Corporate Affairs, SaskEnergy/TransGas  oss Pickering R Senior Vice President, Operations, Precision Drilling Corporation  ave Reed D Vice President, Canadian Region, Weatherford Canada Partnership


ENFORM EXECUTIVEs

Executive TEAM

 eff Rose J Senior Vice President, Operations and Chief Operating Officer  aula Campkin P Vice President, Standards and Industry Initiatives and Chief Safety Officer  ameron MacGillivray C President and Chief Executive Officer  ick Shatosky R Vice President, Finance and Chief Privacy Officer

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“We like to say that safety is not something we have—safety is something we do. Taking measures, precautions and being conscious reduces the chances of events.” CAMERON macgillivray | President and CEO, Enform

 arol Howes C Vice President, Communications and PetroLMI

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2016 ANNUAL REPORT

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A NEW DAY IN THE ENERGY INDUSTRY

looking ahead in 2017

More prosperous times appear to be on the horizon for Canada’s oil and gas industry. The good news is drilling activity is up in Western Canada’s oil and gas industry. Another sign of confidence returning, is a corresponding increase in training at Enform. In the first quarter of 2017, course attendance rose between 10 and 15 per cent. The flip side is that when activity ramps up quickly after a downturn, injuries historically have gone up. Workers’ Compensation Board of Alberta statistics show every one per cent of industry growth equals three to four per cent in injury claim rates. A more buoyant oil and gas industry could see the return of other labour concerns. Some service companies have already reported difficulties filling new jobs that require skilled and experienced workers.

This will have a major effect on current workers, who have been and will continue to be retrained to take on additional responsibilities and new positions. Workplace stress could rise. Meanwhile, more contract workers will likely be hired until greater confidence returns to the industry. As our data shows, we are inching closer to achieving our vision of zero work-related incidents and injuries in oil and gas. These numbers are a testament to the progress made in our industry— specifically because of the hard-working men and women in oil and gas that have rallied in tough times, committed their lives to safety and always having one another’s backs. While this is positive news for the industry, this means that now more than ever, we must continue to look forward by working collaboratively and proactively to protect our workers for a stronger and safer industry.

Many workers laid off in the past two years now work in industries perceived to have more employment stability. In addition, the attraction and retention strategies previously used, such as above-average compensation and benefits packages, have changed significantly due to cost-cutting measures.

02 34

WORK SAFE—LIVE SAFE

ENFORM


Looking Ahead

09:15 hrs budget meeting

“We’re here for the worker and that’s what we continually remind ourselves. How is what we do going to help the worker?” Jeff Rose | Senior Vice President, Operations and CHIEF OPERATIONS OFFICER, Enform

investing where it counts, your safety.

ENFORM

2016 ANNUAL REPORT

35


financials statement of operations

For Year Ended December 31, 2016

2016

REVENUES

2015

Training

Management Fees

Safety

Conference and Events

420,657

737,391

Other Income Funding – Other

622,369 12,199

595,885 -

23,403,092

30,695,956

COST OF SALES Direct Salaries and Benefits

7,721,143

8,975,875

Training

2,899,595

4,207,884

Labour Force Expenses

697,078

505,283

$11,506,515

$15,076,907

Funding – WCB

8,706,613

11,601,437

Funding – Labour Force

1,266,606

1,010,838

68,568

843,826

799,565

829,672

Conference and Events Safety

Credit Card Expenses

Course Development

439,220 505,082

716,795 586,092

191,758

227,729

2,800

60,971

12,456,676

15,280,629

10,946,416

15,415,327

EXPENSES Indirect Salaries and Benefits

6,003,321

6,904,600

General and Administrative

2,177,537

3,554,285

Rent and Premises

3,160,755

3,537,908

Amortization of Property and Equipment Professional Fees

2,418,986 1,115,121

2,228,988 1,111,008

14,875,720

17,336,789

(3,929,304)

(1,921,462)

2,904,082 (102)

794,546 3,058

67,650

1,590

2,971,630

799,194

(957,674)

(1,122,268)

GROSS PROFIT

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES FROM OPERATIONS

OTHER INCOME (EXPENSES) Workers Compensation Board Surplus Distribution Gain on Foreign Exchanges (loss)

Gain on Disposal of Property and Equipment

EXCESS OF REVENUES OVER EXPENSES

02 36

WORK SAFE—LIVE SAFE

ENFORM


financials statement of operations

As of December 31, 2016

2016

2015

ASSETS CURRENT Cash

$1,402,975

$1,858,006

Term Deposits

20,721,844

21,092,357

Goods and Services Tax Recoverable

4,723

21,961

Accounts Receivable

779,273

549,762

Prepaid Expenses

146,746

189,638

23,055,561

23,711,724

4,829,243

5,974,871

10,027

127,533

131,843

151,793

28,026,674

29,965,921

CURRENT Accounts Payable and Accrued Liabilities

1,961,971

1,906,204

1,232,495

1,510,753

3,194,466

3,416,957

5,671,756

6,430,838

8,866,222

9,847,795

NET ASSETS Unrestricted

9,331,209

9,143,255

Invested in Equipment and Property

4,829,243

5,974,871

Restricted Reserve

5,000,000

5,000,000

19,160,452

20,118,126

28,026,674

29,965,921

PROPERTY AND EQUIPMENT LONG TERM INVESTMENTS PREPAID DEPOSITS

LIABILITIES AND NET ASSETS

Deferred Revenue

DEFERRED CAPITAL CONTRIBUTIONS

ENFORM

2016 ANNUAL REPORT

37


Contact us info@enform.ca 1.800.667.5557 enform.ca

Enform Calgary 5055 -11th St NE Calgary, Alberta T2E 8N4 Phone: 403.516.8000 Toll free: 1.800.667.5557 Enform Nisku 1803 - 11th St Nisku, Alberta T9E 1A8 Phone: 780.955.7770 Toll free: 1.800.667.5557 Enform British Columbia #2060, 9600 - 93rd Avenue Fort St. John, British Columbia V1J 5Z2 Phone: 250.794.0100 Toll free: 1.855.436.3676 Enform Saskatchewan Suite 208, 117-Third St NE Weyburn, Saskatchewan S4H 0W3 Phone: 306.842.9822 Toll free: 1.877.336.3676

Enform 2016 Annual Report  

Enform 2016 Annual Report Work Safe-Live Safe

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