Oil & Gas Network June 2015

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Publication Mail Agreement No.: 40039458

JUNE 2015 Volume 16, Number 3 www.oilgas.net

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Contents JUNE 2015 Volume 16, Number 3 Publication Mail Agreement No.: 40039458 Publisher John Robertsen Editorial Associates David Coll Seema Dhawan Joni Evans Donna Gray Elizabeth Hak Joe Perraton Design & Layout amanda@oilgas.net Advertising Sales John Robertsen 403.800.1226 jrr@oilgas.net

7 Lessons in Leadership 9 Canadian Chamber Identifies Top 10 Barriers 9 Working Energy Investment Forum 10 Productivity, Not Just Price, Real Solution to Surviving

Low Oil Prices

11 Black Diamonds Dynamic Air Shelter (DAS) 13 Jet Pumps Solve Crooked and Sandy Well Problems 13 Trelleborg Innovations that Lower Total

Operator Costs

14 Volant Unveils New Hydroform™ Slimeline™

“When it comes to safety, you’d better have my back.”

Series of Centralizers

14 Wacker Neuson Offers New Line of Automatic

Self-priming Trash Pumps

15 Weatherfords Launch of SecureView® Cased-Hole Special Projects Jim Graham jim@oilgas.net

15 Wellsite Rental Services Incorporates Flush Mounted

Oil & Gas Network Suite 300, 840 6th Ave SW Calgary AB T2P 3E5 Phone: 403.800.1226

Address Changes www.oilgas.net/subscriptions.htm or email subscriptions@oilgas.net Return Undeliverable Canadian Addressed to: Oil & Gas Network Mail Suite #4, 2023 2nd Ave Se Calgary AB T2E 6K1 Oil & Gas Network is published six times a year. Reproduction in whole or in part of any material in this publication without the express

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Oil & Gas Network, June 2015

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Lessons in Leadership A surprising Calgary Flames’ season provided a magical subtext and welcome distraction amid the oilpatch doom and gloom By David Coll THINGS HAVE, ARGUABLY, never been worse in the Canadian oil patch – as this is being written, Trican Well Service Ltd. added to the carnage in announcing 2,000 layoffs to its North American workforce. Alberta’s new NDP premier (can it really be true?) has promised to proceed with a royalty review and will need to be convinced to keep the dream of Northern Gateway alive. Never mind royalties, corporate taxes are certain to increase. Oil prices are hovering around $60 per barrel, an improvement yes, but expectations of $80 oil, we’re told, may indeed be wishful thinking. Public statements notwithstanding, it’s safe to say there’s a lot of fear and trepidation going on behind closed doors. Amid the doom, gloom and uncertainty in Calgary brought about by the collapse of world oil prices, the Flames’ surprising hockey season provided a magical subtext and welcome distraction. But that too, unfortunately, has now run its course. The Flames were supposed to be at or near dead last in the entire NHL (at least the Oilers proved true to form!). But time and again, in most thrilling and unlikely fashion, the ‘Flaming C’ clawed their way back into games in the third period that they had no business winning. In the season’s last week, they beat the defending Stanley Cup champions who’d been on a roll, thus securing the final playoff spot in their division. That would have been plenty to take away for next season, but they then deposed a heavily favoured and vastly more experienced Canucks’ squad in the first round before finally succumbing to perhaps the league’s best team, the Anaheim Ducks.

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“Were they a little lucky? Sure, but as the saying goes, ‘you have to be good to be lucky ” Looking back, the Flames initially had the element of surprise very much in their favour. But even after it became apparent that teams could not ‘take a night off’ against these gritty youngsters, they continued to defy the odds. As great as individual performers like Mark Giordano were, it was very often a cast of unheralded players who stepped to the fore. Were they a little lucky? Sure, but as the saying goes, ‘you have to be good to be lucky.’ And behind all of this was an exceptional leader, coach Bob Hartley. His leadership, in my opinion, is the reason for the season we’ve just witnessed. Watching his actions throughout the year and listening to him on the news was continually inspiring, a little like being a participant in a motivational management seminar. Here’s what I took away from Hartley’s management of the Flames this season – these things apply equally well to business and the management of any team. And I suppose it goes without saying that they are even more important, even if only as reminders, as the patch struggles up from the bottom of the barrel. Face Time. Oft times I saw clips of Hartley on the ice with his players and what I noticed most is his very direct way of communicating. Ever the teacher, his clipboard was never far away. There was an especially telling clip of the coach and Sam Bennett, at 18 the youngest player in the NHL playoffs, talking one-to-one in an empty rink before the game. How important was that individual attention to the significant contribution Bennett later made to the Flames’ playoff run? The Little Things. The Flames were a leader in blocking shots and that’s no easy thing to sell to players. Hartley deftly used courageous role models like Lance Bouma and Kris Russell to set a sacrificial standard that the entire team followed. Attention to detail is vital in any competitive enterprise and behind every company that excels in some way, you will find examples of this kind of commitment to the little things that make you better. Performance measures. Player movement and fielding the best possible team can be very challenging in the salary cap era of the NHL. But Hartley did a great job of making sure that every shift was earned and that rookies who worked hard were given opportunities to play in all situations such as the power play and penalty kill, thus developing their confidence and skill set. Platoon. Throughout the season, the Flames never had a declared number-one goaltender, which is very unusual in today’s NHL. But Hartley kept each goalie hungry and coaxed great, game-saving performances out of three different netminders during the season. Tight focus. Hartley divided the season into seven-game segments, with the goal of winning each series. If they could win most of them, the team would be in a solid position to make the playoffs. When they did, the seven-game series mindset was already deeply instilled in them. Brilliant. The result of all of this leadership excellent is that there were no passengers – everybody wanted to play and that helped to build confidence and momentum. Success begets success and, for a winter season otherwise marked by doom and gloom on the business front, it was truly magical.

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OGN News

Canadian Chamber Identifies Top 10 Barriers A list of key policy and regulatory issues that threaten our future competitiveness IN ITS 2014-2015 GLOBAL COMPETITIVENESS REPORT, the World Economic Forum ranked Canada 15th – three spots down from the ranking achieved in 2011-2012. For the fourth year running, the ‘skills gap’ remains the top barrier to Canadian competiveness. Here’s the Canadian Chamber’s 2015 top 10 list of key issues – with the exception of #7 (related to tourism), all of these impact the oil and gas industry either directly or indirectly. The list includes steps the Chamber is taking on behalf of its members to addresses these barriers.

Silos in skills development Canada is not producing enough graduates with the skills needed for its economy. There are shortages and high demand forecast in a wide range of occupations. As a result of dramatic restrictions, the Temporary Foreign Worker Program no longer presents an effective path to meet short-term labour shortages. In the medium to long term, education and training systems play a pivotal role in equipping us with people with the right skills. With a demographic reality about to hit our labour market, we need stronger efforts to coordinate between the silos of education and employers. Improving the links between education and employment is not the responsibility of educators and governments alone. Employers are directly implicated. We need to break the silos.

Entrepreneurs lack capital for Canada’s fastest-growing companies One of the most critical determinants of competitiveness is access to capital, especially for start-ups and companies moving from innovation to commercialization. These fast-growing companies often depend upon venture capital (VC) as the lifeblood needed to take a company from idea to market. Canada’s VC industry is still small and punching below its weight, particularly when compared with much larger VC industries in the U.S. During the course of 2014, the Canadian Chamber spoke with dozens of entrepreneurs leading fast-growing companies who say one of the biggest hurdles they face is securing capital to take their companies to the next level. In 2015, the Canadian Chamber will advocate a number of initiatives to boost incentives to expand the overall pool of capital and to attract more angel investors and international funds to Canada.

Lack of clarity regarding duty to consult with Aboriginal peoples Canadian governments have a fiduciary duty to consult and accommodate Aboriginal peoples when proposed developments have the potential to impact their constitutionally protected rights. However, governments are increasingly relying on project developers to assume responsibility for large parts of community consultation and accommodation. This has led to situations whereby proponents have no clear direction on the extent of the consultation and accommodation required. This year, the Canadian Chamber will explore alternatives to the current scenario for resolution of the development consultation process, which currently seems headed towards lengthy court challenges to produce jurisprudence that guides proponents, opponents and governments.

Internal barriers to trade The lack of a single domestic market in Canada is a serious and self-imposed weakness in the Canadian economy. Tariff barriers between provinces are banned by the Canadian constitution, yet the national economy is fractured by a host of non-tariff barriers, particularly in procurement, energy, agriculture and transportation, and in the mobility of labour. The federal government must promote more meaningful sanctions against jurisdictions that practice protectionism against other Canadians while supporting those that embrace free internal trade.

Working Energy Investment Forum ON THE SURFACE, 2015 may seem like a tough year for the oil and natural gas industry, as low commodity prices and a changing political landscape appear to be impacting investment interest. However, if you look a little harder, it seems you can find glimmers of optimism in the capital markets. And if anyone knows how to dig deeper into financial markets, it’s Peter Tertzakian, Chief Energy Economist and Managing Director, ARC Financial Corp. At PSAC’s Energy Blueprint event in April, Mr. Tertzakian presented a wealth of detailed economic data and forecasts to a rapt and overflow crowd of PSAC members. In his presentation – The Future of Canada’s Oil and Gas Industry – Mr. Tertzakian covered a number of interesting points, from megaprojects to carbon footprints. But the best news came near the end of his presentation, when he highlighted the potential investment capital available – an amount that defies the overall sense of negativity for the Canadian oil and natural gas sector. Mr. Tertzakian explained that as much as – or potentially even more – capital is available now than what was realized during the relatively ‘high time’ in Canada, prior to the last quarter of 2014 and the rapid decline in oil prices in early 2015. The data Mr. Tertzakian presented proved what PSAC already understood – even in an uncertain economic environment, it’s still a good time to invest in petroleum services companies. When oil prices slid in early 2015, PSAC realized it needed to find a way to highlight how its member companies are managing their way through the economic downturn, by streamlining operations and keeping prices low for customers, while devising innovations that make their operations faster, smoother, cleaner and safer. So two months after Mr. Tertzakian shared his capital investment data, PSAC hosted the Working Energy Investment Forum, which showcased the cutting-edge innovations, recognized performance and current investment opportunities of nine petroleum services companies. Mark Salkeld, PSAC’s President and CEO, stated: “Even in a challenging year like 2015, our members are intensifying their efforts to work smarter, both in the field and in the office. That kind of drive and determination is truly the ‘working energy’ that makes PSAC member companies successful. That’s what we wanted to feature in the Working Energy Investment Forum.” The intensive and informative Forum was structured to give participants direct access to the key leaders of the private and public services companies that presented. Audience members appreciated the focused format and the opportunity to ask questions face-to-face. PSAC partnered with the Explorers and Producers Association of Canada (EPAC) to hold the Forum in early June as part of the Global Petroleum Show. Presenting companies included: Blue Spark Energy, Civeo Corporation, DistributionNOW, Ensign Energy Services Inc., ENTREC Corporation, NSC Multistage, Precision Drilling Corporation, Strad Energy Services Ltd. and Tervita Corporation. The Forum was sponsored by ATB Corporate Financial Services, PwC and Simmons & Company International. PSAC is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. PSAC represents a diverse range of over 230 member companies, employing more than 70,000 people and contracting almost exclusively to oil and natural gas exploration and production companies. For more information about PSAC, visit psac.ca.

Canada over-relies on income and profit taxes rather than on taxes on consumption, which are relatively easy to collect and are least harmful to growth. Canada’s tax code is also overly complex and imposes significant compliance costs on businesses and consumers while governments spend billions of dollars each year administering and enforcing convoluted tax laws. Canada must undertake a comprehensive review of its tax system with the aim of reducing its complexity and improving the way it raises tax revenue.

a strong commitment to innovation. This appears to be a continuing challenge as Canada’s innovation rank, a key component of competitiveness, is troublesome. Canada is ranked 22nd by the World Economic Forum for its capacity for innovation. Canadian manufacturers will need to invest more aggressively in disruptive technologies. However, the innovation policy framework that exists in Canada is not sufficient to overcome a number of serious barriers for the manufacturing sector. The Canadian Chamber will explore recommendations to reconcile the disconnect between industry and institutions, find a mechanism to support the commercialization of new technology and look at options to support business in the adoption of new technology.

Canadian trade is constrained by infrastructure deficiencies

Territorial businesses don’t have the tools they need

Canada’s tax system is too costly and complex

Public investment in infrastructure has not kept up with Canada’s economic needs. Now Canada’s investment needs far exceed the availability of public funds. Bringing infrastructure in Canada back to the level needed to support prosperity will require an ongoing commitment by all levels of government, an active engagement with private sector stakeholders and a greater appreciation of the opportunities that exist for Canada to be more competitive through more modern public infrastructure.

Canada is uncompetitive in the world’s tourism sector Canada has slid from the seventh largest tourist destination in the world to the 18th. Today, it is too often a high-cost, high-hassle destination with aging attractions infrastructure and inadequate marketing. Canada’s travel and tourism sector is critical to its economy, and the government must both invest in national marketing initiatives and address Canada’s inefficient visa system, the very high cost of air travel in Canada and its layers of regulations, fees and taxes.

Innovation rate is not sufficient to help manufacturing rebound The best way for Canadian companies to compete and win in modern manufacturing is through

The federal government has a critical decision to make regarding Canada’s territories if it is to fully leverage their economic potential. That decision is whether or not to provide territorial businesses with the tools necessary to increase their economic footprint. The result would be more financial independence for the territories and a more competitive Canada.

Canada is missing out on foreign trade opportunities Canada’s prosperity depends on access to international customers and participation in global supply chains. Faced with a small domestic market, exporting is often the only way to grow sales and build economies of scale. Moreover, sourcing from and investing abroad allows companies to exploit unique technologies, skill sets and cost advantages. However, Canadian businesses are not globalizing as quickly as their peers. To support the expansion of Canadian companies abroad, the federal government needs to build on recent success and take steps to conclude the next wave of high-quality trade agreements and strengthen Canada’s system of trade promotion and economic diplomacy. Oil & Gas Network, June 2015

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Productivity, Not Just Price, Real Solution to Surviving Low Oil Prices By David Yager, National Leader Oilfield Services, MNP LLP EXPLORATION AND PRODUCTION (E&P) COMPANIES and the oilfield services sector (OFS) are once again embroiled in the latter half of their historic love/hate relationship. It’s not pretty. With oil prices down 50%, clients are demanding vendors cut prices. Contracts mean little. Sue if you like. Some oil company executives are publicly telling investors they’re firing suppliers that won’t cut rates. Established relationships are secondary to E&P demands that vendors share the pain. For OFS compliance is painful, expensive and ultimately impossible.

Baked-in high labor costs exist because relentless client demand has required it. Billions have been borrowed to finance massive, clientdriven OFS investments in new drilling, service, fabrication, construction and transportation equipment. Reduced revenue is bad. No margin is worse because it ultimately means default and insolvency. This game of pricing ping-pong has been going on for decades. Everybody talks about how it should be different, but current events have proven yet again it isn’t. What isn’t discussed enough is the real challenge – productivity. Lower commodity prices indeed require lower

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costs. But what matters most is the final capital investment per barrel. Total cost includes operational efficiency and time. Here’s what our industry should really be talking about: The market cost of all OFS goods and services is ultimately driven by E&P demand. E&P is not a master of its own destiny either with investment driven by commodity prices, technology, capital, market access and geological opportunity. The relationship between E&P and OFS is truly symbiotic; one cannot survive without the other. But you’d never know it during times like this. OFS must earn a margin every time its moves. Every job or sale carries risk. Capital and equipment required servicing. Staff must be retained. The size of the margin can vacillate but to work for nothing or less is suicide. Without at least some profit E&P is putting vendors out of business and OFS is putting itself out of business. Too many OFS managers don’t grasp the full-cycle economics of hydrocarbon development. There is a lingering belief among many that E&P is fabulously profitable, which it is not. Successful operators generally treat their vendors fairly. Clients that appear generous today are often gone tomorrow. Operational execution is as important as unit input costs. Getting all the parts, people and services in the right place at the right time is exclusively E&P logistics. Some companies are very good while others are terrible. For example, a frac spread, service rig and support services idle on standby while the oil company waits for downhole components essential for the completion. An oilsands construction project is on hold awaiting major components that don’t arrive on time. The amount of capital vaporized when clients aren’t organized is huge. Hurry and wait. This inflates costs but has nothing to do with component prices. Oil company departments do not always communicate or cooperate. You’d think senior management would take a holistic approach to maximum recovery at the lowest cost per barrel, not per vendor. Exploration directs drilling where to construct a wellbore. Drilling is pressured to deliver the lowest cost wellbore, not always ideal for the reservoir. Completions does what it can with what it gets then production takes over. Too often a poorly drilled and completed wellbore yields only a fraction of management expectations. Vendors often know what works best but are seldom consulted at the E&P executive level. The biggest gains in total cost reduction come from process and technological improvement, not just component prices. Look no further than the dramatic increase in drilling penetration rates and steady decline in the cost of extended reach horizontal drilling and completions. The total cost of these wells is declining and productivity is improving as operators and vendors cooperate to do a better job. Progress is impossible if vendors are undercapitalized or insolvent or if clients don’t communicate or listen. The bizarre way E&P pays suppliers drives up costs. It is now common to not pay for 60 or 90 days or even longer. This is surely the worst client/vendor relationship in the western world. The huge cost of extending credit to customers is baked into prices. While E&P treasury believes it is saving money, operations and capital expenditures are priced higher to cover significant vendor financing expenses. If oil companies paid cash or sooner, OFS would happily reduce prices. Lower prices resulting from faster payment would improve E&P ROIC while leaving OFS margins intact. Every time oil or gas prices collapse OFS pricing is a key element of cutting costs. And it should be. Everybody in the food chain must share the pain. The collective survival of the industry requires cooperation and collaboration. When the Canadian oilpatch needs to retool to survive it always does. Somehow. It may not be pretty, but it will happen. But the fundamental way in which most E&P and OFS companies interact remains mired in the past. Both sides are responsible; both sides are essential. A little more engagement by the senior executives on both sides might engender a new business relationship with a greater focus on cost per barrel than just component prices. In our high cost basin, improved productivity is critical for our collective success.


Black Diamonds Dynamic Air Shelter (DAS) FROM 20 LOCATIONS AROUND THE WORLD, Black Diamond Group rents and sells portable workforce accommodation and work space solutions to business customers in Canada, the United States and Australia. We provide turnkey lodging, specialized field rentals and other support services related to the oil and gas industry. This year at GPS, Black Diamond is showcasing its Dynamic Air Shelter (DAS) blast resistant structures designed to keep workers safe in potentially hazardous conditions. These safe, compact, and easy to deploy structures are designed to maximize production, and minimize injuries and equipment damage. The Dynamic Air Shelter (DAS) provides safety for personal and equipment in blast hazard environments.

Dynamic Air Shelters are safe, economical, maintenance free; and easy to store, transport and install. BOXX Modular, a division of Black Diamond is also featuring its industrial site office, which offers an economical solution to onsite workplace requirements. The versatile, secure and mobile office features the lock box, steel exterior and climate control to make it a safe and comfortable place to work year-round – and it can be customized to suit your needs. Visit our Black Diamond and BOXX Modular representatives at outdoor booth 3368. Check out our products and learn more about how our workforce accommodation, equipment rental, modular building and full turnkey solutions can benefit your oil and gas projects. www.blackdiamondgroup.com

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Convenience increases productivity The Dynamic Air Shelter structure allows large, essential buildings like lunchrooms and office facilities to be located within potential blast zones, saving both time and money. Typically, traditional structures and tents require placement far from the job site, which requires workers to be transported from the site to the structure. In addition to accommodating large buildings within this blast resistant structure, DAS blast tested shelters are flexible and capable of absorbing and deflecting harmful blast waves and heat and therefore safe for positioning close to worksites. This results in more time spent on the job.

Cost savings for transportation, installation and heating Cost savings is another Dynamic Air Shelter benefit. Lightweight portability offers decreased transportation costs because the shelters can be deflated so they’re compact and stored in containers that travel on transports. The DAS containers are offloaded using a forklift, eliminating the need for heavy equipment such as cranes, and resulting in decreased overall costs. Installation costs average 85% less than conventional temporary hard and soft-walled structures and 98% less than permanent buildings. Installing a DAS structure takes one installer plus local labor and a forklift to offload and inflate. With no heavy equipment required and less resources needed, installation costs are significantly lower. One larger space means cost per square foot savings. With a significantly larger structure, hundreds of workers can find shelter in one place compared to multiple structures and associated setup and maintenance costs. The Dynamic Air Shelter’s thermally efficient design offers 50% reduced heating costs compared to traditional softwalled structures. Trapped air in the columns and between the liners creates a thermal blanket which protects from wind and heat loss.

Globalstar data products are field proven telemetry devices designed to communicate through the Globalstar satellite network. Data solutions provide cost-effective and reliable asset tracking, monitoring, and management from areas well beyond cellular. To learn more about Globalstar Data Products or becoming a Value-added Reseller, visit Globalstar at the 2015 GLOBAL PETROLEUM SHOW BOOTH #8309 or Contact: MARTIN JEFFERSON – 905.712.7110 – MJEFFERSON@GLOBALSTAR.CA

Oil & Gas Network, June 2015

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Jet Pumps Solve Crooked and Sandy Well Problems

Trelleborg Innovations that Lower Total Operator Costs

By R. Travis Tinnin & Tom Bowman

Current Conditions In today’s oil patch, reduced prices and fierce competition have pushed drillers to complete horizontal wells faster than ever. However, expedited completion times are often accompanied by errors both large and small. One such common and troubling error is completed wells with significant deviations, known as crooked wells. As many operators have experienced, crooked wells subject traditional sucker rod pumps to obvious and unavoidable damage – the sides of the tubing suffer considerable wear and tear and even punctures in some cases. Next comes the process no operator wants to see on a production report: Oil production must be stopped, a costly workover rig must be hired, and the tubing must be pulled out of the well before it can finally be replaced…only to incur the same problem time and time again. Another all too common production problem with horizontal wells is completed wells with substantial quantities of sand, sediment, and other debris. Here the challenge with rod pumps is erosion of the downhole equipment, which proves both time consuming and expensive. As the pump experiences a form of corrosion known as friction-induced deterioration, it will quickly require repair or replacement. Even if the pump can be salvaged, the dreaded remediation process mentioned above rears its pricy head on the production report all the same. While traditional sucker rod pumps present a favorable upfront price tag, operators must ask themselves the following question: What is the real cost of this artificial lift solution? In addition to the sticker price, crooked and sandy wells necessitate that operators include costs for replacement tubing, costs to clean and/or repair pumps, costs for workover rigs to pull the downhole equipment, as well as the opportunity costs of the production lost during the downtime required for the remediation process. Such analyses and calculations need not be too detailed to arrive at the conclusion that rod pumps are not always the most economical option, thereby justifying the search for alternative artificial lift solutions.

Artificial Lift Options The most proven alternatives are gas lift, Electric Submersible Pumps (ESP), and hydraulic jet pumps. Before seriously considering gas lift, an operator must have the ancillary infrastructure in place, including naturally occurring gas from the well or gas that can be purchased nearby and piped to the well in addition to a compressor unit to move the gas. Even assuming said infrastructure already exists at the well site, gas lift is only as strong as the bottom hole pressure. While gas lift may help remove the heavier fluids, it may fail to increase production. In sandy wells, gas lift valves will face the same type of previously described erosion as rod pumps. Additionally, the sand and fluid may fall back and refill the formation as the operator retains little control. Thus, even with existing infrastructure, gas lift is still not without major hurdles.

What about the increasingly ubiquitous ESP? Unfortunately, ESP repeatedly get stuck in the bends of crooked wells because their configurations are simply too long to successfully traverse the turns. Equally disastrous is attempting to artificially lift a sandy well with an ESP as they begin to fail at a meager one to two percent of sand by volume. Essentially, ESP have too many moving parts to handle sandy conditions successfully. Thus, despite the seemingly alluring prospect of increased production, ESP will likely not survive the sandy conditions in order to effectively and consistently produce the well while the risk of sticking an ESP in a crooked well is a nightmare that would prevent any operator from sleeping.

IN JANUARY 2015, OIL PRICES PLUMMETED to an all-time low of $46 over the past five-and-a-half years*. This drop triggered the industry to quickly re-evaluate its processes and budgets, redirecting its primary focus to cutting costs, adding value and increasing efficiency. Trelleborg continually monitors industry trends and according to its market analysis, similar trends in oil prices occur approximately every five to seven years. Based on involvement in past projects when oil prices have been low, Trelleborg emphasizes that it is better to consider reducing total cost and improving efficiency than buying low-cost and potentially poorer quality product. Fredrik Meuller, BA President Trelleborg Offshore & Construction, says: “The natural reaction when the barrel price falls is for operators to cut costs wherever possible. However, given the cyclical nature of the marketplace, it is vital that operators save in the right areas and resist the temptation to simply buy cheap. It remains important to invest in solutions which will continuously deliver high performance over a long lifecycle, to protect projects in the long term, even in tough times.” In light of these challenges, events like the Offshore Technology Conference (OTC) are central to sharing knowledge. At this year’s show, Trelleborg’s on-stand experts will demonstrate just some of the innovative key solutions which can help operators’ bridge the

The Right Solution In many cases an expertly configured hydraulic jet pump can match or beat the performance and economics of a sucker rod pump, gas lift, or an ESP solution. Moreover, when variable conditions such as a crooked hole or sandy well are present, operational and financial factors make utilizing anything other than a jet pump nearly impossible to justify. Unlike rod pumps, which suffer wear and tear to the sides of the tubing, gas lifts which are limited by the bottom hole pressure, and ESP that struggle to navigate bends, jet pumps offer the shortest and narrowest artificial lift solution as the pump operates inside the pipe. In fact, jet pumps can successfully handle 10 degrees of bend for every 100 feet of pipe up to a cumulative 90 degrees of bend. In short, the jet pump will be the last artificial lift technology to fail due to narrowness. While sandy conditions erode rod pump parts and gas valve mandrels and cause the many moving parts of an ESP to seize and fail, hydraulic jet pumps have no moving parts and are manufactured out of carbide which is far harder and more resistant to such erosion. Although rod pumps can also be manufactured out of carbide, doing so is typically cost prohibitive. Thus, dissimilar from other methods of artificial lift, sandy conditions have no effect on the average life of a jet pump. If sand does manage to limit jet pump production, the flow of the jet pump can be reversed to remove the sand, thereby allowing for a quick return to production. Experience shows that jet pumps can move as much as 10 percent of sand by volume. In the event that a jet pump is damaged or less successful than expected, typically the throat and nozzle combination can easily be reengineered, reconfigured or replaced. In the absolute worst case scenario where the jet pump must be replaced, a replacement usually costs less than $7,000 and takes less than two hours to complete as the operator simply has to reverse the flow and propel the jet out of the hole. No workover rig. Minimal downtime. Little lost production. Again, operators must be aware of the dollars and cents that utilizing an inefficient, ineffective or potentially inoperable artificial lift solution is bleeding out of the bottom line in order to make the correct purchase decision to artificially lift crooked and sandy wells.

gap between cost and performance. Looking ahead to May, Trelleborg will also highlight some of the ways in which the market can lower project costs, optimize productivity and retain competitiveness as barrel prices recover. Visit stand 5541 for demonstrations and further discussion. Mark Angus, Executive Vice President Drilling and Syntactic Products within Trelleborg’s offshore operation, says: “As drilling goes to deeper water, stresses placed on a rig’s hoisting system become greater, increasing risk of damage or failure to the drill pipe or hoist. Landing Strings Solutions LLC approached us with its patented technology to develop the world’s first buoyancy module system deployed on a drill pipe landing string. “Working at or near design working load presents significant safety and environmental concerns. However, this system is designed to offset the landing string weight by up to 80% in some cases. By reducing the overall hook load, the mechanical stresses are lessened and the rig’s load landing capabilities are increased. In addition to reducing risk, this means that smaller inexpensive rigs may be used, resulting in significant financial savings.” Downtime caused by failure or maintenance often yields a considerable cost that can be avoided. Henk-Willem Sanders, FPSO Focus Group Leader at Trelleborg Sealing Solutions says: “Our innovative SealWelding™ technology allows seals to be welded in-situ on an FPSO platform, eliminating the need for the platform to disconnect and return to shore. Facilities will no longer need to shut down operations for weeks at a time, causing significant loss of earnings from production. Solutions such as ours not only add value, but save a significant amount of time and naturally, costs too.” While drilling offshore spans to new, far-off locations, conventional means for installing offshore oil rigs are cost-prohibitive. Continues on page 15

Oil & Gas Network, June 2015

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Volant Unveils New Hydroform™ Slimeline™ Series of Centralizers THE VOLANT GROUP OF COMPANIES (Volant) proudly announces the launch of its new HydroFORM SlimLINE* Series of rigid centralizers – a thinner wall durable design at an affordable price. “Centralizers are a critical component of well construction and completion, particularly with regard to more efficient tubular running and enabling an adequate cement job. A robust rigid centralizer is designed to improve the casing run and survive, thereby optimizing standoff,” explains Dan Shute, President of Volant Products. “Not all centralizers are created equal in terms of their drag performance on the wellbore and it is in this capacity that the Volant centralizers shine. Our centralizers have a smooth outer surface which minimizes the snag potential associated with sliding over deviations and our placement optimization program minimizes side load which, in combination with friction results in drag. Volant centralizers have a proven durability in extended reach wells, and the smooth profile is maintained. This new series of centralizers offers all this, plus an affordable price tag.”

Volant’s proprietary hydroforming technology produces a high quality, high strength product. A proprietary, engineered process is used to precision form tubular steel, resulting in a smooth unitbody shape perfectly suited to today’s complex well designs. Additionally, the new HydroFORM SlimLINE* series of centralizers offer a tighter fit, reduced thickness and optimized rib geometry to balance standoff and flow characteristics – making this centralizer ideal for cementing applications. The new Volant SlimLINE™ Series of Centralizers currently range from 4.5” up to 5.5” liner and casing diameters, available in a variety of outside diameters. Volant also offers a full range of standard HydroFORM™ Centralizers for liner and casing sizes ranging from 4.5” to 13.375”, formed to various customer specified diameters. For additional information please visit: www.volantproducts.ca.

Wacker Neuson Offers New Line of Automatic Self-priming Trash Pumps WACKER NEUSON HAS INTRODUCED a new series of trash pumps to its dewatering product line. The new APT series are heavy duty automatic self-priming trash pumps designed for high flow efficiency and superior solids handling. Offered in 4-inch, 6-inch and 8-inch models, these pumps are perfect for contractors, pump rental companies, mining operaCONNECTED tors, general industrial and municipal use. The outstanding feature of these APT pumps is the Venturi/compressor assist priming system that primes and reprimes the pump automatically. Since there is no need for manual priming, they are built for unattended operation. The oil-filled one_half_ad_v2.indd 1 19/11/13 4:10 PM bearing and oil-bathed mechanical seal design provides indefinite run-dry capability making it the perfect choice for inconsistent flow applications. The APT 4, 4-inch model can pump up to 1300 gallons per minute and handle solids up to 2-inches. It is powered by a 40-hp, water-cooled Yanmar diesel engine. The most popular model is the APT 6. This 6-inch pump can pump MCCOY GLOBAL IS THE LEADING GLOBAL SUPPLIER of tubular handling and make-up equipment for the energy industry. Our comprehensive fleet of power tongs and bucking units will consistently make-up/break-out any types of API and premium connections to the required torque. Our latest up to 2100 gallons per minute and handle 3-inch solids. offering in these lines is the new weBUCK™ electric bucking unit. For data acquisition and control on connections, we offer the weVERIFY™ torque It is powered by a 74-hp liquid-cooled John Deere diesel calibration bar, weCATT™ wireless torque sub and the WINCATT® torque/turn monitoring system. We provide life cycle support of our products, engine. The 8-inch, APT 8 is the largest unit capable of offering a full range of dies, inserts and spare parts. pumping up to 3500 gallons per minute and handle solids up to 3.125 inches. This unit is equipped with a 99-hp John weCATT Deere diesel engine. HD9625 All of Wacker Neuson’s new APT, automatic self-priming trash pumps are available in either a skid or trailer mount. The standard control panel is telematics plug-n-play ready and includes a float switch, on/off ready engine controller and standard automatic shutdowns for low oil pressure, high coolant temperature and overspeed. The intuitive design provides all key engine data WINCATT at a glance. weBUCK Dies & Inserts The high grade cast ductile iron pump housing, wear plate and corrosion resistant impeller construction makes these pumps rental and jobsite tough. Wacker Neuson’s APT pumps are a natural addition to the company’s full line of centrifugal trash, submersible trash, dewaStop by booth 1676 to learn more about all of our product offerings. WWW.MCCOYGLOBAL.COM tering and diaphragm pumps.

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Weatherfords Launch of SecureView® CasedHole Wireline Evaluation Suite Casing Integrity and Cement Analysis Suite Delivers Clarity and Efficiency for Well Integrity Management WEATHERFORD INTERNATIONAL PLC ANNOUNCED the commercial release of its SecureView® wireline cased-hole evaluation suite at the 2015 Offshore Technology Conference (“OTC”). As managing well integrity has become more critical across the industry, the ability to identify and mitigate risks is integral for all operators. The SecureView® suite provides single-trip, high-resolution diagnostics in cased-hole wells and offers operators faster and conclusive data to address potential well threats that may lead to production loss and liabilities.

Weatherford SecureView Suite SecureView® combines four of the latest generation and fieldproven diagnostic technologies to inspect, identify and determine root causes of well integrity issues. The suite, which includes UltraView™, an ultrasonic measurement tool; FluxView®, a magnetic flux leakage tool; CalView®, a high resolution multisensory-caliper tool; and BondView™, a cement-bond tool, provides comprehensive and complementary data without information gaps. “We are serious about helping operators with the assurance and management of well integrity. Our technologies are developed and tested to the highest caliber with that in mind. The ability to combine multiple measurements in one run to allow our clients to receive reliable, complementary and comprehensive data is a game changer. It provides a cost-effective and efficient decision making process,” said Brice Bouffard, Vice President of Wireline and Testing at Weatherford. In an unconventional well in South Texas, an operator noticed that the casing collar had moved upward a few feet post-fracturing. The SecureView® suite was deployed and enabled the operator to identify and interpret cement conditions throughout the reservoir interval, identify a casing split, confirm its location and detail the

extent of the problem, thus allowing the customer to properly remediate the zone before production started, resulting in significant savings and reducing operating time for the client. Upon identification of the root causes of well integrity threats with the SecureView® suite, operators can also easily rectify any issues with an extensive Weatherford remediation portfolio for casing repair and isolation services to restore integrity and productivity in any damaged well at any stage of the well life cycle. For more information on SecureView®, visit http://www.weatherford. com/secureview.

Wellsite Rental Services Incorporates Flush Mounted Slips into Rental Product Line WELLSITE RENTAL SERVICES, a rental equipment provider for the drilling and production sectors of the oil and gas industry, has added flush mounted slips to its rental product line. The flush mounted slips are purposed for tripping drill pipe and maintain a self-locking design that does not require the use of a tether while holding backup torque, eliminating the need for backup tools. The tool maintains a safety factor of 2.25 X and leads the industry with state-of-the-art safety features. While all parts are visible in operation, the flush mounted slips hold down force so that no backup tong or an operator are required. It also reduces the manpower typically needed and is fully automated to promote efficiency, reduce pinch points and minimize personnel injuries. The flush mounted slip holds the ability to drill with the tool in rotary, and its hinged design allows for easy installation and removal should the tool need to be removed from the rotary. Many of the slips and die combinations have the ability to catch multiple sizes of drill pipe with one set of dies. If a set of dies need to be changed out, the process takes approximately 30-45 minutes. “I think that the most notable feature about our flush drill pipe slip is that it allows the driller to operate the tool where an operator is not required,” said Kirby Arceneaux, chairman of Wellsite Rental Services. “Additionally, the patented die design of the flush drill pipe slip produces half the stress on pipe of conventional slips & dies and eliminates the possibility of crushed pipe.” The design standard meets API 7K and 8C and has a 350 ton capacity. Model number 1107 requires a 27 ½” Rotary and its range extends from 3 ½” to 7 ⅝”.

Continues from page 13

Julian Wee, Managing Director within Trelleborg’s engineered products operation, says: “With topsides now often weighing more than 30,000 tons, floatover operations are a cost-effective alternative to conventional installation methods. However, installation windows are small and the mating process between the topside and the jacket legs must be controlled and executed precisely, to avoid damage and downtime. “During the topside lowering process, the barge may undergo significant heave and other motions due to wave and current actions. Our leg mating units (LMUs) and deck support units (DSUs) are designed to take shock impacts. This is one of the ways our solutions prevent damage during floatover. We also test our LMUs to the actual specified loads in order to confidently validate design requirements.” There is a growth in the Liquid Natural Gas (LNG) market to lower storage and transportation costs as it takes up 1/600th the volume of natural gas. However it is more difficult to handle, stimulating the need for safe economic offloading methods. Vincent Lagarrigue, Marketing and Proposal Manager within Trelleborg’s oil and marine hoses operation, says: “There was an absence of offloading solutions in the market, so we teamed up with Saipem to design a cryogenic floating hose. It can operate in sea states with wave heights of up to three and half meters at connection and four meters during transfer and disconnection – even with non collinear wind or current directions. Our design enables transfer between the LNGC and FLNG terminal to be increased from a standard five meters to 150-250 meters, significantly limiting the risk of collision.”

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M2M Connectivity with STX3 Satellite Modems Delivers Cost Savings to Oil and Gas Companies IT’S A GIVEN FOR COMPANIES OPERATING in the oil and gas industry to expect dependable, fast mobile connectivity for their growing Machine-to-Machine (M2M) networks. Along with the volumes of critical data being created, comes the need for consistent, ready access to web-based applications on drilling project and exploration sites. The challenge today is to ensure reliable, realtime communications access between all sites and control centres in the most cost-effective way possible. For fixed and mobile assets located in remote and harsh locations, there are satellite global transmitting devices such as the Globalstar STX3. This is a small, low-cost and low-power transmitter that uses chip technology that can be easily integrated into a broad range of M2M devices and applications for remote sensing, tracking and monitoring of assets such as oil and gas wells, pipelines and meters. Calgary-based Mobiltex Data Ltd., a leading manufacturer of industrial mobile data systems, has designed a transformative M2M monitoring device for North America’s oil and gas industry. The company used the STX3 data transmitter from Globalstar to design the CorTalk® RMU1, a compact, remote M2M monitoring unit that integrates with existing pipeline infrastructure to measure and monitor corrosion. Pipeline corrosion and complying with government regulations to monitor that corrosion is a significant issue

The RMU1 automated remote monitoring unit from Mobiltex, powered by the Globalstar STX3, shown with test station cover removed monitoring an underground pipeline.

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for oil and gas companies. Before remote monitoring technology was deployed in the 1990s, field workers had to travel several hours, often by helicopter, out to test stations to record readings manually. This was not only costly from a time, people and fuel perspective, but the tools used often generated inconsistent results. “We work with well over 100 oil and gas companies across Canada and the U.S. providing solutions for monitoring pipeline external corrosion,” says Jerry Chilibecki, engineering director of Mobiltex, one of the first companies to design an M2M device specifically around the STX3 data transmitter. “Because the STX3 is so compact (it’s about the size of a quarter), and efficient with the lowest power consumption in the industry, we were able to integrate the complete antenna system, modem, battery and remote measurement elements and retrofit it into existing industry standard 3-inch diameter test stations along remote areas of pipeline.” With remote satellite-based M2M monitoring that is automated, the need for physical site visits is eliminated. Readings provide accurate and repeatable results to engineers and operators. And, with M2M networks located in some of the most challenging, remote areas of the country, satellite solutions are providing reliable and affordable ways to operate, that goes right to the bottom line.


The Right Engine Oil Can Lead to a Healthier Bottom Line for Plant Operators Introduction A gas-powered engine which performs consistently and continuously can help achieve strong efficiencies and greater profits in a plant. Operations and service managers need to focus on how to minimize engine downtime, maximize drain intervals and optimize performance. By taking a proactive approach to consolidating a plant’s lubricant product offering, additional savings can also be achieved. In contrast with other fuel types, gas engines traditionally burn cleaner, hotter and operate at a constant speed. This means gas engine oils (GEOs) must be specifically formulated to address these unique characteristics.

The Importance of Drain Intervals Drain interval – or oil change frequency – is closely linked to engine reliability. GEOs with extended drain capability can withstand factors that break down the oil and cause it to degrade. Longer oil life allows the engine to perform consistently, reduces maintenance cycles and provides cost savings. Drain service intervals are designed to provide maximum engine protection under various conditions. Also referred to as “drain time,” it is measured as the number of hours an engine can efficiently run before the oil needs to be changed. The timing of the oil drain is determined by the results of a used oil analysis. The limits for the used oil are defined by the Original Equipment Manufacturer (OEM) of the gas engine. These intervals vary due to factors such as mechanical design of equipment, application, environment and condition of gas. Optimal drain intervals allow the engine to run for an extended period before an oil change is necessary without compromising engine durability. “Yesterday, 8,000 hours between drains in such an engine was unthinkable. Suddenly, anything less could be unacceptable,” comments Sharanie Patterson, Marketing Category Manager at PetroCanada Lubricants Inc. SENTRON™ LD 8000, a revolutionary new GEO from PetroCanada Lubricants, shatters the accepted drain interval standard and exceeds the standards of many different OEMs. The breakthrough technology in SENTRON LD 8000 helps operations extend drain intervals by up to 300% when compared with the leading global conventional competitor GEO. As the oil degrades, it takes on certain characteristics; as it reaches specific maximum levels that are dictated by the OEMs, the oil is condemned and needs to be changed. Several factors cause oil to

degrade; these can include oxidation, acid formation, nitration, trace metals and other contaminants found in used oil.

Using Oil with a Higher Oxidation Resistance Oxidation occurs in engine oils when oxygen molecules chemically join with oil molecules. This causes the oil to thicken, form acids and lose fresh oil qualities. Oxidized oil can lead to deposits on pistons and valves, threatening engine life. As with most chemical reactions, oil oxidation is accelerated by heat and pressure so oxidation is often an issue for gas-powered engines – both older engine types and new lean-burning engines in high-temperature, high-pressure operations. Engine loads also influence the levels of oxygen and pressure within the engine, which can accelerate acid formation, corrosion, viscosity (oil thickening), deposit formation and, ultimately, wear. For this reason, the majority of new engines today require oil with higher oxidation resistance.

Increased Acid Control Contributes to Longer Drain Intervals Oxidation is closely tied to acid, which forms as a result of the combustion process. Oxidation reduces the oil life and its ability to neutralize acid. If not neutralized, acid can attack metal engine parts, threatening service life and durability. GEOs need strong acid neutralization capability (Total Acid Number – TAN) and good base retention (Total Base Number – TBN). As it relates to engine reliability, increased acid control contributes to longer drain intervals and minimizes wear. Total base number (TBN) retention is another measurement that helps define an oil’s acid neutralization properties. Put simply, the greater the TBN retention, the greater the ability of the oil to neutralize acid. By neutralizing the amount of acid attacking the metal of the engine, the formation of deposits can be minimized – as can pitting and corrosion.

Reducing Deposits to Operate at a Higher Efficiency It is essential to reduce excessive deposit formation in order to operate at the highest efficiency and gain minimal downtime and

maximum profits. When engines are burdened with deposits, engine efficiencies are impacted, which could result in even higher engine temperatures, loss of energy to either create power or compress gas, pre-detonation and engine damage. Due to this potential engine damage, operations de-rate the engine and reduce loads. This reduction of load will reduce engine outputs and may affect the bottom line. Gas-powered engines are designed to run at 100 percent under optimal pressures and temperatures. As they work, however, deposits inevitably grow in the engine. As gas engines operate at a constant speed and temperature, they are also prone to creating deposits. The type of engine duty cycle and the environment it operates in also play a role in deposit formation. Not all deposits are unwanted and harmful. Some deposits, in the form of ash, are needed to protect valves and prevent valve recession (the premature compression and wear of the valve seat in the cylinder head and valve tulip). Ash residue, which remains after the oil is burned during operation, helps to prevent premature valve recession by forming a protective, sacrificial layer on the valve seat and valve tulip to absorb the impact of the two coming into contact.

Conclusion As the industry continues to design new engines, innovative lubricants with ground-breaking technologies are also developing to protect them. Plant operators need high-performing products that have a proven track record of successful use under a wide range of conditions. From extended drain intervals to deposit control and engine reliability, advancements in gas engine oil mean that the industry is changing and what was once thought of as unattainable – up to 8,000 hours between drains – will soon be the new standard. Petro-Canada’s SENTRON™ Gas Engine Oils are a family of premium performance, long-life engine oil products specially formulated to lubricate gas engines. Find out here which SENTRON™ Gas Engine Oil is right for your operation. Oil & Gas Network, June 2015

17


Yamaha Viking, The Ideal Commercial Side by Side THE VIKING WAS DESIGNED AND ENGINEERED as a robust and high-capacity utility vehicle. It combines Yamaha’s most powerful four-wheel drive engine to date with a comfortable and confidenceinspiring three- person cab, precision steering and class-leading handling. The vehicle’s distinctive features make it the most off-road capable vehicle in its class and the only one with true three-person seating capacity, making it not only hard working but fun to drive on the farm as well as the trail. The Viking’s exclusive pass-through bucket seating features a unique off-set center position (set 5 degrees back) that improves comfort with maximum shoulder room for all three occupants. This is the only vehicle in its class with three-point seat belts for everyone, plus headrests all around, adjustable handhold for both passengers and a textured floorboard with dedicated foot wells. Its seating position even provides for more head room than competitive models without sacrificing critical ground clearance. All told, the Viking boasts the most comfortable and secure seating in its class. “Yamaha is once again taking a leadership position in the growing multi-purpose SxS segment of the off-road business,” said Mike Martinez, vice president of Yamaha’s ATV/SxS Group. “The Viking tops its competition with precise steering and superior handling, excelling in the areas of durability, reliability, ease of use, and cargo and towing capacity. The Viking’s class-leading handling and off- road performance make it the only SxS vehicle that can claim true utility-pointed design while still providing a fun, confidence-inspiring experience in a recreational setting.” Power comes from Yamaha’s strongest four-wheel drive engine to date – a 686cc liquid-cooled 4-stroke, SOHC, single-cylinder, 4-valve fuel-injected engine that provides peak performance at maximum capacity. This durable engine has been optimized for working conditions with strong low-end torque while quick throttle response and smooth power delivery are maintained throughout the rev range. Yamaha Fuel Injection delivers consistent starts and power even at elevation and in cold weather, and the 9.7 gallon fuel tank allows for long days in the field or on the trail. A more powerful engine requires a more effective cooling system, and Yamaha has developed a system that keeps the Viking cool even during tough chores and at low speeds with optimum design, location and components that create the most efficient airflow through the large radiator. While the Viking’s 700cc-class engine makes more power than some larger 800cc-class machines, the vehicle’s handling and offroad capabilities truly set it apart. Yamaha’s three-way On-Command® system, featuring 2WD, 4WD and 4WD with differential lock, is a driver- controlled system with an automotive-type rotary dial selector. This driver-controlled system gives the driver the control and confidence to lock in all four wheels based on the terrain – a significant benefit over other automated systems on competitive models. Yamaha’s Ultramatic transmission with high, low and reverse has proven to be the industry’s most durable CVT system with dual speed gearing and an automatic centrifugal clutch that maintains constant belt tension for reduced wear and the industry’s

18 Oil & Gas Network, June 2015

most natural feeling all-wheel engine braking. This reduced wear has contributed to Yamaha’s proven durability, and the engine braking gives the driver confidence especially on hills and in rough terrain. The Viking’s optional Electric Power Steering (EPS) system provides the industry’s best balance of light feeling with positive feedback from the terrain. The system reads steering wheel torque, vehicle speed, On-Command setting and negative feedback to determine the appropriate amount of assist in any given situation. The Viking’s utility functions combined with Yamaha’s proven durability were designed for hard work, tough chores and long days in the field or on the trail. The rear steel cargo bed was purpose-built for durability and convenience. Large enough to carry a fully loaded pallet, the assisted dump bed can pack up to 600 pounds of equipment and supplies while the standard two inch receiver hitch is rated to pull 1,500 pounds. The Viking’s chassis also contributes to its off-road capability with nearly 12-inches of ground clearance at the lowest point, a full steel/composite smooth skid plate front to back and side to side, and an optimized frame with up-turned side rails allowing for smoother transitions over obstacles. The Viking features light and natural-feeling handling in both the EPS and non-EPS configurations. The front and rear suspension outperform the competition even with heavy loads. There simply is no more secure feeling vehicle when tackling rugged terrain – especially at full capacity. The Viking’s long-travel four-wheel independent suspension is perfectly balanced to provide a plush and comfortable ride with a quality damping feel in rough terrain all while carrying either a light or full load. The gas charged shocks help reach the delicate balance of damping and resistance with one or three people, fully loaded or empty. The all-new Maxxis Big Horn 2.0 tires were designed specifically and exclusively for the Viking with maximum performance and durability. The new Big Horns provide an optimized balance of sidewall and tread center stiffness in a tire that delivers an excellent combination of traction, precise steering and comfort. The Viking’s large diameter front and rear brake discs with dual piston calipers on all four wheels ensure good balance and power during braking – with or without cargo. The Viking also comes equipped with a mechanical parking disc brake. Little extras are a big deal when they help increase productivity and fun. Things like marine-grade electrical connections and wiring, a sealed maintenance-free battery, digital meter and easily accessible and serviceable foam air filter and engine are built into the Viking to help owners stay on task or trail – and out of the shop. The Viking EPS and non-EPS models are available at Yamaha dealers nationwide. Standard models come in Steel Blue, Hunter Green (with sun top), Red (with sun top), Realtree AP HD camo (with sun top) and a special SE edition with cast aluminum wheels, over fenders, cargo bed brackets, mud flaps, and sealed underseat storage. The non- EPS models start at $13,499 MSRP while the EPS models start at $14,709 MSRP.


PRINOTH Presents the Ideal Equipment Solutions for the Oil & Gas Industry OIL & GAS COMPANIES AROUND THE WORLD often require machines that can operate in virtually any weather and terrain conditions. Adding to these challenges are the job-sites with steep slope environments. PRINOTH presents the ideal equipment solution for these challenges to the oil & gas industry – the PANTHER T8 and PANTHER T12. As the latest innovation in a low ground pressure carrier crawler, the PANTHER T8 and T12 operate in off-road and various weather conditions offering exceptional performance and versatility. Using a proprietary undercarriage design, they achieve the lowest ground pressure to transport heavy payloads over terrain that would make walking difficult. The PANTHER T8 weighs 19,096 lb. and carries a payload of 16,000 lb. for a total weight of 35,000 lb. but exerts only 4.10 psi of ground pressure. A man of average size and weight exerts a walking ground pressure of 5 to 7 psi. Those numbers are typical for the series, including the PANTHER T12. The largest carrier in the line, it entered production in 2014 and has a payload of 25,000 lb. exerting only 5.95 psi of ground pressure. Together with a strong pull ratio, these features allow this carrier to access exploration & exploitation sites, even if the terrain is difficult, without damage to the environment. The rubber track uses a unique zig-zag tread pattern developed for the PANTHER line to provide optimized bite and side-hill grip. It will not damage paved surfaces and provides superior traction in all conditions. The tracks are automatically tensioned using a patented system developed by PRINOTH, keeping proper tension while working at all times.

The design of the PANTHER undercarriage and suspension system also contributes to its cross-country agility. By using large diameter track roller wheels and an open undercarriage design, it can overcome the challenge of jammed undercarriage components in cold weather operations. This feature also allows for more contact with the track, more stability and longer track life. A few years ago PRINOTH elected to use Caterpillar® diesel engines exclusively. The PANTHER line is powered by Cat ACERT™ diesel engines that meet U.S. Environmental Protection Agency (EPA) Tier 4 Final and European Union Stage 4 regulations. The PANTHER T8 uses a Cat C7.1 ACERT diesel engine rated at 225 hp. and the PANTHER T12 uses a Cat C7.1 diesel engine rated at 250 hp. According to Jean-Claude Perreault, Vice President of Sales at PRINOTH, the move to Cat ACERT Tier 4 Final engines in the T8 and T12 has reduced fuel consumption by up to 5% and part commonality and design simplicity have also enhanced overall reliability. That all adds up to lower operating costs from an engine equipped with an emission control system that is virtually transparent to the operator. Since PANTHER carriers are used all over the world in some of the toughest conditions imaginable, the fact that Cat parts and service are available virtually anywhere a PANTHER is working is a major consideration for any project. Because the PANTHER is used as a prime mover for a wide variety of equipment, it is based on a truck frame design with a pair of parallel “C” channels spaced 34 in. apart. Implement packages can

be mounted in the same way they are on a typical truck chassis. Additional features of the PANTHER T8 and T12 include a cab that is designed for operator safety and comfort. The T8 can be configured with either a narrow cab (1 seat) or wide cab (1 or 2 seats). A steering wheel control allows for a safe grip while moving through rough terrain and maintaining optimal precision and control. The steering components are ergonomic, telescopic and tilt able. The drive controls appear in standard color display allowing advanced interfacing capabilities. From the northern tundra to the southern boggy marshes, operators and field supervisors alike have expressed that the PANTHER has made their job more efficient, increasing productivity while keeping safety a priority. From exploration to exploitation, in the middle of nowhere or within city limits, both the PANTHER T8 and T12 have the toughness, tenacity and reliability you need in a carrier.

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1:37 AM Oil & Gas Network,2015-05-15 June 2015 19


ME Resource Corp.’s (MEC) Mobile Refinery Unit Helps Companies Convert Wasted Gas to Revenue-Generating Liquid Hydrocarbons and Clean Power By Donna Gray

IN THE CURRENT ECONOMIC CLIMATE OF DEPRESSED OIL PRICES, the cost of production and maintaining environmental standards can put oil and gas companies at risk for completing wells. Always scouring for solutions, the industry is now paying particular attention to a newly minted mobile gas-to-liquid solution, called the Mobile Refinery Unit (MRU) that delivers a spectrum of valued end-products at a much more affordable cost. MEC’s recently patented MRU is designed as a skid-mounted mobile unit capable of processing between 100 to 500 MCF/day of natural gas from a wellhead or from a flare stack and transforming that waste gas into 10 to 50 barrels/day of valued liquid hydrocarbons. MEC has already used a micro-unit in its labs to demonstrate conversion of methane to liquids. The MRU has the potential of producing other demand-driven end products including diluents, paraffins, solvents, diesel, jet fuel and water (for remote arid regions). Any unreacted methane, hydrogen and CO pass through the MRU generating varying amounts of clean power. The company’s next stage of growth is to demonstrate the technology at a larger scale. As part of this effort MEC will also construct of a field demonstration unit to highlight the MRU’s general capability, scalability, operational flexibility, and its ability to integrate with/into existing oil and gas infrastructure while maintaining its economic feasibility. Parminder Singh sits as chairman of the Canadian public company. He says that when their idea took shape four years ago, they realized clients were sitting on significant amounts under-valued resources.

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20 Oil & Gas Network, June 2015

Dr. Gregory Patience at the Ecole Polytechnique de Montreal Catalysis Lab

“We’re not breaking new rules of science–that risk doesn’t exist,” Singh cites. “We simply take existing known technologies, like Catalytic Partial Oxidation and Fischer-Tropsch processes, and we’ve combined them in a patented method that will be and attractive the today’s market.” The final pillar is mobility. Designed to fit all types of environmental and geographical conditions, the MRU is also easy moved from site to site quickly. It can also be airlifted or shipped on the back of a flatbed. It was imperative to make the technology as selfcontained and compact as possible.

Focusing on field performance testing

The MRU reduces Waste Gas by processing into valuable end products

“Our goal was to not only create practical solutions which met the strict needs of the industry from a fiscal and operational point of view, but also, to be much more proactive in transforming waste gas to value while reducing flaring. The MRU approaches the problem from a completely different perspective – we are taking the refinery to the resource and sizing it in such a way that it is mobile, scalable, flexible while being economically feasible for a spectrum of producers.” Singh identifies particular attributes, or pillars, that set the technology apart. “The first pillar really focuses on capability,” states Singh. “Our unit was designed to be highly mobile and flexible for every project specification. We can size it to integrate with a client’s existing infrastructure.” The second pillar aims for scalability. If a single MRU unit is too small and doesn’t do the job, more units can be added to meet specific needs. This reduces the amount of capital expenditures at any given location. As the characteristics of a specific well changes, units can be added or redeployed to other wells as the situation may warrant. This is good news for companies on tight budgets that need to optimize capital expenditures. Another key pillar is the flexibility. While many systems in the market focus on a limited amount of output options, is highly flexible. By adjusting the catalyst, they can easily dial in what the client needs as an output; including conversion from a wider range of stable liquid hydrocarbons (C5 - C30).

Earlier this year, MEC was invited to move its research to a dedicated space at the National Research Council facilities in Montreal. Dr. Gregory Patience, chief technology advisor to MEC and chemical engineering specialist in catalytic reactors, heads the research. Because of its progress, MEC has recently received financial support from the Industrial Research Assistance Program to optimize catalyst processes. To test the equipment in the field, MEC has developed a plan to create a demonstration plant in partnership with a number of firms including with Grey Owl Engineering from Calgary. The company has received multiple offers from potential partners in Canada, US, Oman, South Africa and Kazakhstan.

Environmental perks and payoffs

The pressure to reduce flaring is a reality. Patience says this activity can be reduced through the use of the unit. “Some producers man either flare (or worse vent) natural gas (associated gas) from oil,” he says. “Burning natural gas produces 400 million tons of CO2, corresponding to 1.5 per cent of the emissions. Venting untreated CH4 has a greenhouse affect 21 times that of CO2. Capturing CH4 and converting it to valuable fuels definitely would reduce emissions tremendously.” Faster payback on exploration capital is also a key benefit for companies who want to eliminate the non-productive wait times for gas pipeline infrastructure to be built. With the MRU, oil production can begin immediately—accelerating payback of initial drilling capital and unlocking the profits tied up in the resource itself. “We take out any mercury, metals and sulphur compounds in the gas, then we process it. What comes out is C02, water and nitrogen. Any residual output is environmentally clean.” Patience says. Stranded wells and deposits don’t have to sit idle either. The technology offered by MEC gives producers the chance to monetize remote or small gas deposits that normally would not be financially viable to develop using traditional gas processing infrastructure. From a global perspective, the unit’s capabilities are applicable to different climates and production situations, including where associated gas is being flared in underprivileged areas. Additionally, MEC’s MRU technology is a solution that supports the World Bank’s Climate Change Initiative to reduce green house gas emissions. For more information on MEC’s Mobile Refinery Unit, visit www. meresourcecorp.com. ME Resource Corp is a publically traded company on the Canadian Stock Exchange under the symbol CSE:MEC.


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Helly Hansen Workwear Introduces Rugged Mjølnir Construction Apparel Collection HELLY HANSEN WORKWEAR DRAWS INSPIRATION FROM THOR, the Norwegian God of War, and Mjølnir, his invincible hammer. While Thor used his hammer for destruction, Helly Hansen incorporates the strength of the tool in its all-new, Mjølnir construction apparel collection made for those who build all things. The Mjølnir series includes a warm pile midlayer jacket and a denim-like cotton Cordura® Polyamide blend pant built to stand up to the toughest work environments. The Mjølnir products offer distinct looks and uncompromising comfort to workers both on and off the job. The flagship Mjølnir Construction Pant is the toughest, most practical pant on the job site with looks that command respect during and after work. The pants are forged with a rugged yet comfortable cotton Cordura® Polyamide blend and multiple reinforced loops and pockets for hammers, rulers and tools of the trade.

Mjølnir Construction Pant Features • 85% Cotton Cordura®, 15% Polyamide – 380 g/m3 • Reinforcement: 100% Cordura® - 219 g/m2 • Elastic at waist • ID Card loop under belt loop • Loops with double Velcro closure on both sides for hammer holders • Broad belt tunnel at back for extra strength and stability • Gusset at crotch • Two hanging front pockets in Cordura® for nails/screws, with angled corners and double bottom • One thigh pocket with metal zipper • One thigh pocket with flap and water resistant fabric on the inside • Ruler pocket with double bottom in Cordura® and removable button for attaching knives • Kneepad pockets in Cordura® accessible from the inside • Kneepad position can be adjusted +/-5cm for better fit • Reinforcement at bottom hem To learn more about Helly Hansen’s latest collections, visit www.hellyhansen.com.

Drilling Mud Treatment Dramatically Reduces Friction In Any Well’s Entire Downhole Drilling System Introduction Revolutionizing Downhole Drilling Why has a drilling mud additive named ProOne been such an important component in today’s oil & gas operations? The word from operators in the field is that this drilling fluid treatment is literally changing the cost structure and problem-solving economics on every well it’s being used – whether vertical, horizontal or deviated. Tribologists in the labs of U.S.-based ProOne Inc. created a “eureka” scientific moment about heat/ pressure and developed a positively-charged molecular structure which they named XPL+ (Xtreme Pressure Lubrication Positively Charged). Results are extraordinary: • allowing the ProOne lubricant to bond to any downhole metal whatsoever (even when subjected to extreme heat/pressure) • delivering a film strength 50 times that of ordinary lubricants (in cross-axis friction machine test, minimal damage @ 200,000 psi compared with extensive damage @ only 4,000 psi without this unconventional additive) Already field-proven in more than 700 wells in North America, the 2015 sales expansion internationally primarily through DNOW is revolutionizing the now-outdated thinking that “A lube is a lube is a lube.” Skeptical operators are trying it for the first time and, to their surprise, quickly replacing their existing downhole lubricant. With its unique heat/pressure and film strength attributes, this drilling fluid treatment solves more than a dozen major drilling challenges including: • Long horizontals, deviated wells, spiraled and chopped holes, doglegs and micro dog legs, stuck pipe and excessive trips • Low Rate of Penetration (ROP), high torque and drag, short drill bit life Using this downhole lubricant, operators can also dramatically reduce wear on pumps, maintain weight on bit (WOB), greatly reduce hook load, drill curves in half the usual time, slide liner faster and set casing faster, as well as allowing a straighter vertical with less corkscrewing. Plus, the ProOne drilling mud additive lets operators replace toxic oil-based mud (OBM) with earth-friendly water-based mud (WBM).

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Savings achieved with XPL+ usage have amazed even the most doubtful operators. For example, up to $100,000 can be saved on mud motors, drill bits and drill string repair. Up to $500,000 can be saved through higher ROP and fewer trips, and up to $1 million savings are possible by minimizing twist-off risk, avoiding hole collapse and freeing stuck pipe. In 2014, NOV’s spin-off of DistributionNow (DNOW) changed the global playing field, supplying the full array of oilfield products to operators on every oil-producing continent. Next, DNOW took the major step of including ProOne in its 300-location distribution system, which includes a substantial number of Canadian locations. All that continues to win over operators, with “bonuses” as appealing as anything: (a) ultimately biodegradable (b) potentially reduces their drilling mud bill by approximately 50-percent. In today’s costcutting, “green” economy, ProOne’s drilling fluid treatment has arrived at just the right time. Tim Wagner is with ProOne Inc. (www.pro1energy.com)


Gas engines are built to run. But what if they could fly? What if you could minimize equipment downtime and enhance productivity to peak performance? With the help of Mobil-branded industrial lubricants, you can. Equipment builders worldwide trust our oils to protect their machinery. With products like Mobil Pegasus™ 1, which help deliver leading-edge technology so you can go longer between maintenance outages and shutdowns — more than tripling your drain intervals compared with conventional oils. Providing not only peace of mind, but the chance to ignite productivity to enviable new levels. Visit mobilindustrial.com for more.

Copyright © 2015 Exxon Mobil Corporation. All rights reserved. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries unless otherwise noted.


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