Business of Energy - February 2024

OF ENERGY

FEBRUARY 2024

PRIDE OF GRANDE PRAIRIE BARON OILFIELD SUPPLY IS PART OF THE FABRIC OF ITS COMMUNITY

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OF ENERGY VOL 6, ISSUE 1 | FEBRUARY 2024

PUBLISHERS

04

Pat Ottmann & Tim Ottmann

EDITOR

C oncern for Human Rights Shouldn’t End Where Energy Production Begins

By Cody Battershill

05 10 15

Melanie Darbyshire

COPY EDITOR Nikki Mullett

ART DIRECTOR

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P rofile: Fluor

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THIS ISSUE’S CONTRIBUTORS

C over: Pride of Grande Prairie

By Melanie Darbyshire

Melanie Darbyshire Rennay Craats John Hardy

COVER PHOTO

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E nvironmental and Reclamation Progress

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COVER BUSINESS OF ENERGY | FEBRUARY 2024 | 3

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CODY BATTERSHILL | Concern for Human Rights Shouldn’t End Where Energy Production Begins

CONCERN FOR HUMAN RIGHTS SHOULDN’T END WHERE ENERGY PRODUCTION BEGINS

BY CODY BATTERSHILL

F

ederal Green Party co-leader Jonathan Pedneault has probably forgotten more than I’ll ever know about the conflict in Sudan’s Darfur region. For a leader still just in his early 30s, you can sense his passion for human rights and the battle against humanitarian disaster.

That’s because, while still in high school in Quebec, Pedneault, then 17, made a decision that would change his life. He decided he’d go to Darfur, learn about the conflict there – and help.

Anyone would have to admire the level of commitment required for such a young person to launch himself on this precarious path. It’s inspiring.

So, when we recently met on a radio program to talk about climate action and emissions reductions, I was surprised to learn that Pedneault’s passionate interest in human rights seemed to stop at the point where energy production was concerned.

Sure, Canada has an abundance of energy resources, including large reserves of oil and natural gas, vast amounts of uranium and biofuels, and significant potential for more hydro and wind – all of which, I explained, serve to lower emissions and to provide the needed energy to power a modern society here and abroad.

Further, coal-to-gas switching has resulted in significant emissions reductions around the world.

But Canada also has strong institutions that provide the skilled workforce to drive the sector forward, the continually-evolving technological innovations that ensure the lowest possible environmental impacts and best uses of our natural resources, and governing bodies that oversee the sector and ensure high standards of environmental stewardship and human health and safety.

In short, we’re blessed with an abundance of natural resources, a wealth of technical knowledge and an exceptional record on environmental stewardship and human rights.

How exceptional? Canada ranks high among the world’s top 20 oil producing nations on environment, social and governance (ESG) criteria, including second in governance (Worldwide Governance Indicators), second in social progress (Social Progress Index) and fourth in environment (Environmental Performance Index).

On the other hand, blocking Canadian Liquified Natural Gas and forfeiting our market position while less reputable regimes fill the global supply gap, hurts the global climate as well as our own energy security and the resilience of Canadian workers, families and communities – both Indigenous and non-Indigenous. Meanwhile, other regimes, some far less sustainable than ours, are only too happy to step up.

My assessment of Pedneault is that he seems smart and good on his feet. But there is definitely a knowledge gap on the importance of Canadian energy and our record of global environmental and human rights leadership.

That could change with time. And we’d be very B happy to help bring him up to speed on the facts. OE

Cody Battershill is a Calgary realtor and founder / spokesperson for CanadaAction.ca, a volunteerinitiated group that supports Canadian natural resources sector and the environmental, social and economic benefits that come with it.

BUSINESS OF ENERGY | FEBRUARY 2024 | 4

FLUOR BUILDS A BETTER WORLD

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C e l e b r a t i n g 7 5 Ye a r s i n C a n a d a Written by Rennay Craats | Published by Courtney Lovgren

A

s industrialization spread in the early 1900s so too did the need for oil and gas, and exploration for these resources introduced Canada as a player in world energy markets. Oil and gas boomed after World War II, and the discovery of oil in Leduc saw companies like Fluor coming to Canada to support this burgeoning industry.

“Fluor opened in Toronto in 1949 and then came west to better serve markets. Originally it was very

much engineering focused and that, of course, has evolved with time,” says Tasha Sherbanuk, General Manager, Fluor Canada.

Fluor Corporation, founded in California in 1912, saw the immense potential to the north and established a Canadian presence that has grown in size and scope ever since. In 1973, the Canadian headquarters relocated to Calgary and over the years it has become a

Fluor • Celebrating 75 Years • 1 5

TODAY’S FLUOR

As the industry changed and methodologies and priorities shifted, Fluor evolved to meet the new demands and expectations. As part of one of the largest publicly traded engineering, procurement, construction and maintenance companies in the world, Fluor Canada is at the forefront of the industry providing clients with the gamut of professional and technical services.

While the company may have been built on oil and gas, Fluor Canada has broadened its client base to tackle a range of innovative projects across the country.

“When people think of Fluor they think about energy projects, which is certainly true but we also have a mining and metals office in Vancouver which we often collaborate with, and what we’ve really seen in this office is the diversity of the markets that we serve has really expanded over time,” says Sherbanuk.

Diversifying over the past years has produced expertise not only in oil and gas and petrochemicals but also infrastructure, advanced technologies and life sciences, mining and metals, and operations and maintenance. Within those spaces, Fluor provides every element of full-project execution with specialists in project management, engineering, procurement, fabrication and construction as well as commissioning, start up and maintenance. From nuclear projects to the Gordie Howe International Bridge to a renewable diesel facility in Alberta’s Industrial Heartland, Fluor delivers quality solutions economically, safely and on time and now, in its 75th year, Fluor continues to diversify and add new market segments.

“The markets are quite lively at the moment and that gives us the opportunity to grow, and we’ve got expertise in whichever area clients want to build in,” says Sherbanuk.

The company is dedicated to helping clients succeed whatever the project. While the team executes brilliantly on large scope, multibillion dollar projects, the MPG Multi-Projects Group® produces exceptional results on small- to midsized sustaining capital projects involving revamps and improvements to existing facilities. There is little Fluor can’t do. global leader spearheading some of the most impactful projects in the industry. From its first refinery in British Columbia in the 1940s to Canada’s first large LNG export facility for global markets today, Fluor Canada has shaped the energy industry, all the while diversifying and leading the charge toward a more sustainable future.

“If you can engineer and build it, we’ve probably done it. And if not in Canada somewhere across the world,” says Lisa Listgarten, Director of Project Operations, Fluor Canada.

With a Calgary staff of more than 1,000 backed by another 500 across the country, thousands of

trade partners and 40,000 Fluor professionals in more than 60 countries, the company is setting its sights on facilitating the energy transition.

CREATING A SUSTAINABLE FUTURE THROUGH ENERGY TRANSITION

Today’s clients are seeking cleaner energy solutions and Fluor stands shoulder to shoulder with its client partners as it works to reduce greenhouse gas emissions, improve energy efficiency and deliver clean, renewable projects in Canada and beyond.

From technologies that will help meet the global demand for batteries to incorporating ammonia in the energy transition, Fluor and its clients are committed to sustainability.

Hydrogen offers an attractive path to clean fuel and the team delivers projects surrounding hydrogen storage and transportation as well as projects producing all hydrogen types— from green hydrogen from renewably powered electrolysis or biomass gasification to blue hydrogen acquired through carbon capture— in order to create a clean energy carrier with minimal carbon emissions.

After all, eliminating carbon emissions is the goal, and the growing possibilities of post-combustion and pre-combustion carbon capture are energizing the Fluor team and attracting young professionals to the company. Fluor has been implementing carbon capture strategies for more than 30 years and has a licensed technology called Econamine FG PlusSM that uses a solvent to capture carbon dioxide from large postcombustion single-point emissions sources like power plants and refineries. Despite the incredible inroads Fluor and other innovators have made in this area, the road to energy transition remains wide open and inviting.

“The energy transition is in its infancy when you think about where we are from a project standpoint.

We’ve been supporting clients on the front end, helping them develop their decarbonization strategies right from the grassroots and we’ll continue to support them through the phases of their projects,” says Ryan Viljoen, Director of Business Development and Strategy.

Fluor also has its own net zero and carbon neutral goals to attain and to help achieve them the company installed solar panels on the Canadian headquarter’s roof, converted to LED lights throughout the building and installed EV chargers in the parking lot and parkade. And that is just the beginning; the team is always looking for ways to improve efficiency inhouse as well as on clients’ projects to help fulfil Fluor’s purpose to ‘Build a Better World’.

“There’s still a tremendous amount of study work being explored, and we’ve got a great group of process technology experts who are very excited about getting into some really interesting spaces, things that we’ve not really talked about before in terms of looking at opportunities and trying to figure out how to help shape projects so they can be economic,” says Sherbanuk.

Fluor • Celebrating 75 Years

FLUOR’S TEAM

It’s the trailblazing, excited members of the talented Fluor team over the decades that helped build a 75year legacy that continues to grow and thrive.

“We can’t do what we do without our people. We are in the people business. Yes, we build amazing things but our people design, they engineer, they procure, they construct those things, so without them we can’t help our clients and the business doesn’t survive,” says Viljoen.

The leadership team values these people and supports and invests in them to ensure they remain healthy, engaged and enthusiastic about what they are doing. People matter at Fluor, and the company prides itself on walking the talk with its great benefits and professional development programs.

Its incredible support of staff earned Fluor the Benefits Canada Workplace Benefits Award for its policies that include flexible work options, wellness spending accounts, additional paid time off and greater attention to mental health.

Fluor must be doing something right. Named a Top Employer in Alberta and one of Canada’s Top Employers for Young People two years in a row, the company attracts a lot of new graduates, and these people tend to stick around. There’s a huge number of long-tenured employees, some with more than 40 years with the company, and many will spend their entire careers with Fluor. While some become subject matter experts in their discipline, many others choose to grow their skillset and expertise in other areas of the business. This allows employees to embark on several different careers, whether that involves moving to another wing of the office to serve a new function or filling a position at a branch across the world, all without venturing from under the Fluor umbrella.

To continue to enrich staff experiences and support them throughout their careers at Fluor, the company offers a number of employee

resource groups (ERGs) surrounding diversity, equity and inclusion. Leadership programs for both new graduates and more experienced employees, groups geared at developing women into leadership roles and the newly launched Pride ERG all provide professional development, mentorship and social connections across the organization. On top of that, online and in-person courses through Fluor University® and boot camps that dive into a variety of topics ranging from project management to piping build resumés and can lead to amazing opportunities to branch out and experience a different aspect of the business.

“I think Fluor is really good at looking ahead while building its pipeline and going not just where we need to be today but where we need to be tomorrow and making sure we’re here for the next 75 years plus,” says Listgarten.

Fluor is a community, and its members are eager to share their experience and knowledge as others did for them. It’s part of the company’s culture of giving back, whether that’s through formal and informal mentoring at work or supporting the greater community through donations, sponsorship or with time. Fluor supports a variety of causes every year, showing up for close to 30 years to flip pancakes at Fluor Rope Square, participating in the river clean up, filling backpacks with school supplies for disadvantaged youth or riding in the Tour Alberta for Cancer event. As individuals and as a company, Fluor has long-standing partnerships with organizations that support community members in need like Hull Services, Calgary Food Bank, United Way and most recently the Diamond Willow Youth Lodge, an urban Indigenous youth hub.

Since the beginning, teamwork has been a core value at the company and through strong partnerships with the community, its clients and the professionals within the organization, Fluor Canada is well positioned to continue to grow and lead the industry into the next 75 years.

MPG Multi-Projects Group and Fluor University are registered service marks of Fluor Corporation.

Econamine FG Plus is a service mark of Fluor Corporation.

www.fluor.com Fluor • Celebrating 75 Years • 4

LOCAL MATTERS aims to bring you stories about the people and businesses in MANTL communities across Western Canada. If you have a business you’d like to showcase or know of one, please email localmatters@mantl.ca

WHAT IS THE HISTORY OF AL’S TRUCK SERVICE? Al’s has been around since the 1990’s mainly focusing on the Macklin area. It was most recently purchased by Ryan Flegg and Taylor Gartner. Ryan has been a member of the Macklin community for over 20 years and Taylor was born and raised there. At Al’s Truck Service, they offer complete rod side downhole services. From flush and seal changes, to rod repairs and diagnosis, they are a 1�stop shop for all your rod side downhole services.

WHY DO YOU THINK YOU’VE BEEN SUCCESSFUL? “I think the main reason Al’s has been able to stay successful and prominent in the area, is due to the fact that we remained focused on one area. We are a locally owned business so the best value we offer is the personal feel you get when working with us. You are not just a number or a paycheque, you’re a neighbour, a cousin, a friend. This makes for long lasting and trusting business relationships.”

“Donations are the easy part of helping.

Volunteering your time is what builds communities” � Ryan Flegg 4513 INDUSTRIAL PARK ROAD MACKLIN, SK S0L 2C0

WHAT DOES BEING LOCAL MEAN TO YOU? Al’s is a very common name to see on sponsorship boards and arenas around Macklin and surrounding areas.

They sponsor everything from hockey to local school and town events. Currently, Ryan sits on the Macklin Lake Regional Board on behalf of the Macklin Golf association. “Local businesses are able to help the community on a personal level, much better than a larger company. Donations are the easy part of helping. Volunteering your time is what builds communities.”

COVER | Pride of Grande Prairie

PRIDE OF GRANDE PRAIRIE BARON OILFIELD SUPPLY IS PART OF THE FABRIC OF ITS COMMUNITY

by Melanie Darbyshire

B

arry Smith opened the doors of Baron Oilfield Supply in Grande Prairie in 1986 on the strength of a handshake and a bet on the region’s economic prospects. It was only the second job for young Smith who had fortuitously met Al Side, a local businessman and investor.

Side, whose impact on Grande Prairie cannot be overstated, saw promise in Smith and his partner, Randy Tolley, and took a chance on their two-man operation. The rest is history.

Today – 37 years later – Baron is a staple of the Grande Prairie community. With roughly 100 employees in 12 locations (a head office, branch offices and distribution centres) across Alberta and northern B.C., Smith has led the company since inception through exponential growth, always guided by a philosophy centred around people, service and quality.

“Family is very important to me,” Smith reflects.

“At Baron we are like a family. It’s what keeps us grounded.”

And despite being in a very competitive business market, which suffers the busts and enjoys the booms of Alberta’s oil and gas industry, Baron has played on its many strengths to attain great success.

“Fortunately for us we are in Grande Prairie, one of the busiest centres in Alberta and in the heart of oil and gas country, and we’re very well known locally,” notes Smith. “We’ve been able to manage through tougher times, like product shortages, by locating and buying product in advance.

We’ve ensured our products are safe and always relevant for our customers. We were one of the first companies to implement an ISO program for quality assurance 25 years ago.”

Baron works directly with manufacturers from all over the world, but predominantly in North America, to procure high-quality products at the best prices. It sells fittings, valves, lubricants, industrial products, pipe, production equipment and testing equipment.

BUSINESS OF ENERGY | FEBRUARY 2024 | 10

Pride of Grande Prairie | COVER

ABOVE: BARRY SMITH, PRESIDENT OF BARON OILFIELD SUPPLY. PHOTO SOURCE: PRAIRIE RANGER PHOTOGRAPHY

BUSINESS OF ENERGY | FEBRUARY 2024 | 11

COVER | Pride of Grande Prairie

Fundamentally though, Baron’s advantage comes down to its people. “Most of them have been trained from the ground up,” Smith notes. “They’ve come through with the growth of the company. We have 25-, 30- and 35-year employees. Our people component – our knowledge – is our strength.”

BARON’S PARTNERS, TOO,

He notes you can’t get a ticket in oilfield supply, so Baron employees learn by experience: “That’s what makes us different. We have an assistant manager at one of our branches who came to us right out of high school, through the work experience program.

He’s been here 12 years now.”

COMPANIES WE RELY ON.

And because there is no trade program in the oilfield supply business, finding people can be a challenge. “Most of our stores are open from 6:00 to 6:00 for 37 years [a short exception during COVID when operating hours were from 6:00 to 5:30],” Smith explains. “The labour market is so demanding right now. So we try to find good people and grow them from within.”

Baron’s partners, too, are key: “We trust our logistics team, our freight partners, the trucking companies we rely on. You build a team in all different aspects, be it your suppliers, your truckers, the oil companies, and they become part of your team.”

ARE KEY: “WE TRUST OUR LOGISTICS TEAM, OUR FREIGHT PARTNERS, THE TRUCKING YOU BUILD A TEAM IN ALL DIFFERENT ASPECTS, BE IT YOUR SUPPLIERS, YOUR TRUCKERS, THE OIL COMPANIES, AND THEY BECOME PART OF YOUR TEAM.” Originally from Brooks, Alberta, Smith grew up in in a hardworking trucking and farming family. A work ethos drove him to land his first job at Chaparral right out of high school. He moved to Grande ABOVE: IN 1997 SIDE GROUP RAIL WAS FORMED TO FULFILL A NEED BY CN RAIL TO SERVICE AINSWORTH LUMBER COMPANY IN MOVING THEIR OSB PRODUCT TO MARKETS. SINCE THAT TIME, THE COMPANY’S CLIENT LIST HAS GROWN AND DIVERSIFIED AS HAVE OPERATIONS – TO SIX SEPARATE MULTI-USER FACILITIES MOVING AN ALMOST UNLIMITED VARIETY OF PRODUCTS.

BUSINESS OF ENERGY | FEBRUARY 2024 | 12

Pride of Grande Prairie | COVER

COMPASSION AND UNDERSTANDING ARE ESSENTIAL: “YOU HAVE TO UNDERSTAND WHAT PEOPLE – CUSTOMERS AND STAFF – ARE DOING AND WHY THEY’RE DOING IT. AFTER 45 YEARS IN THE INDUSTRY, MY GREY HAIR IS STARTING TO PAY OFF.” Prairie with the company a year and a half later. “I finished high school on a Friday and I went to work on Monday at a Chaparral supply store,” he says. “I learned from the ground up.”

He spent 10 years at Chaparral where he met Tolley. When their employer went into receivership during the early 1980s oil downturn, the two young men went looking for new employment.

Side hired them at his company Northern Metallic, and the infamous handshake occurred. (Tolley left Baron a few years in.)

“I’ve been in the industry for 45 years and this is just my second job in all those years,” Smith muses. “Ultimately because we are part of the Side Group of Companies, we have strong stability in the community. Thank you to Al and the family for giving us the opportunity to be who we are and how we do our business.”

Side remained involved in Baron for many years, well into his 80s, forging Baron’s ‘Freedom 85’ plan.

He passed away last October at 90 years of age.

Reticent to admit it, Smith’s leadership has been key to Baron’s success. “Because I have been involved in all facets of the supply industry for 45 years, I understand each and every role that our team has,” he says. “So being compassionate, understanding and a teacher all the time gives me an opportunity to interact with the staff and with our team. And it’s not our staff, it’s our family.”

Smith and business partners Linda and Rhonda Side credits their experience at the ‘School of Hard Knocks’ or, the ‘University of Al,’ as Smith calls it, for giving them invaluable practical and hands-on experience. This provides Smith with a better understanding of how to communicate with the younger staff.

Compassion and understanding are essential: “You have to understand what people –

customers and staff – are doing and why they’re doing it. After 45 years in the industry, my grey hair is starting to pay off.”

Baron’s commitment to the community, particularly its younger members, is something it expects no accolades for, but deserves.

The company is involved with many different initiatives, specifically those that benefit children.

“As part of the Side Group of Companies we participate in the Grade Three Reading University,” Smith explains. “This is something my business partners created years ago to help with grade three literacy. That learning helps you throughout your whole career.”

“We need to give the younger generation opportunities to learn and be involved in the community,” he continues. “One focus is on sports because we like to hire sports-minded people, they know how to work in a team. So we work with the younger generation to progress and grow and give back to the community.”

A family-man with nine grandchildren of his own, Smith is always happy to support those who are willing to ask for it, and has supported several with their rodeo and horse riding endeavours.

Indeed, the Side Family has a long history of supporting horses and chuckwagons. “My wife and I had a lot of interaction with the Calgary Stampede and the chuckwagon races for 10 years,” he reminisces. “And there again, it is so family connected. It’s about looking after each other and after families.”

Smith is proud of the industry he’s a part of.

“We don’t get enough recognition for the great things we’re doing here,” he laments. “We are very conscientious of the world and our environment, and as Canadians, we wish to help the world be better.”

BUSINESS OF ENERGY | FEBRUARY 2024 | 13

COVER | Pride of Grande Prairie

The industry is always up for the challenge, provided it receives some base-level support from our governments. “I’ve been around when the price of oil was $10, when it was $110, and when it was zero,” he notes. “But if we don’t invest in our industry we won’t survive.”

Smith is likewise proud of his home city. “Grande Prairie is an amazing city, a growing city,” he remarks.

“I came here when there were 17,000 people, and now we’ve got 80,000. It’s a fast, vibrant city. We’ve got all the things that everybody wants.”

Baron will continue to grow, based in Grande Prairie, particularly in its ability to offer new technologies and materials to the industry. “We’re growing for the future,” Smith says. “I’m not going anywhere soon. The company is strong, it’s well known and well positioned. We’ll continue to update our expertise.”

“Al’s gone,” he concedes, “but the Side family is amazing. What grounds us is the family and the opportunity to work with all the business units.”

As Grande Prairie has grown and changed over the past 37 years, so too has Baron. Today it is larger,

more well-known, and has a greater impact on the community than ever before. Yet it has remained true to its values since the beginning. Committed to its people, service and quality, Baron is a jewel in B Grande Prairie’s crown. OE

ABOVE: READING UNIVERSITY (RU) IS A REMARKABLE AND EXCITING GRANDE PRAIRIE-GROWN PROGRAM DESIGNED TO HELP GRADE 3 STUDENTS WHO ARE ALMOST AT GRADE LEVEL BUT NEED A LITTLE MORE LITERACY PRACTICE TO IMPROVE THEIR READING AND WRITING SKILLS.

BUSINESS OF ENERGY | FEBRUARY 2024 | 14

Environmental and Reclamation Progress | ENVIRONMENTAL SERVICES AND RECLAMATION

ENVIRONMENTAL AND RECLAMATION PROGRESS COLLABORATION IS THE KEY

by John Hardy

E

nvironmental services and reclamation are vital aspects of the energy sector dynamic.

They are often misunderstood and coping with a quagmire of regulations and quotas.

Yes, oil and gas are primary drivers of climate change. Yes, the environment is impacted during the extraction and processing of oil and gas. Yes, greenhouse gas emissions from oil and gas are emitted when they are combusted to generate electricity, produce heat or power transport.

It is why Canada’s oil and gas sector continues to prioritize environmental and reclamation services.

“Whether it’s a mineral mine to produce batteries, a potash mine for producing fertilizers, a wind or solar farm, or an oil sands operation, Canada is fortunate to have an abundance of resources that are all critical for jobs, security and the prosperity of Canadians and communities,” notes the plugged-in Kendall Dilling, president of Pathways Alliance, comprising of Canada’s six largest oilsands companies.

“All these activities have impacts on the environment. That’s why oil sands operators are required to have detailed reclamation plans prior to approval by regulators.”

He explains that Pathways recognizes the urgency people have for that process to move as quickly as possible and it is why Pathways has implemented an ambitious GHG reduction plan, to significantly reduce emissions from oilsands operations by 2030 and reach net zero by 2050.

“ALL THESE ACTIVITIES HAVE IMPACTS ON THE ENVIRONMENT. THAT’S WHY OIL SANDS OPERATORS ARE REQUIRED TO HAVE DETAILED RECLAMATION PLANS PRIOR TO APPROVAL BY REGULATORS,” SAYS DILLING. ABOVE: KENDALL DILLING, PRESIDENT OF PATHWAYS ALLIANCE.

BUSINESS OF ENERGY | FEBRUARY 2023 | 15

ENVIRONMENTAL SERVICES AND RECLAMATION | Environmental and Reclamation Progress

For the energy sector, environmental and reclamation services are a key focus.

Environmental consultants are highly trained individuals who have extensive knowledge of environmental regulations, advising clients in both the private and public sectors to ensure that projects adhere to regulations. Environmental consultants help a company avoid potential fines, legal action or misguided efforts that harm the environment.

Environmental consultants are involved in many areas of the civil engineering world, dealing with energy-related issues like waste management policies, land, water and air contamination, environmental audits, environmental management systems, waste management policies and procedures and much more.

When it comes to environmental and reclamation services, progress is definitely happening!

“The Canadian energy industry, lead by the largest producers, is increasingly taking serious leadership roles at the national and international levels regarding environmental issues,” says the industry-revered Dr. Bob Schulz, professor of Strategic Management and academic director of Petroleum Land Management at the University of Calgary’s Haskayne School of Business. “Over 20

“TECHNOLOGY IS READILY AVAILABLE,” THE HIGH-ENERGY AND INDUSTRY-RESPECTED MASCARENHAS NOTES WITH ENTHUSIASM.” years, prodded by the government and strongly motivated by financial institutions (banks and funds), the Canadian energy sector has moved from national sector pushback to reluctant compliance to proactive innovations that the global industry needs.

“The result is significant importance of internal reporting, significant hiring of internal ESG people (environment, sustainability, governance),” he says, “and transparent public plans at AGMs, and reporting to financial institutions and shareholders.

ABOVE: AUDREY MASCARENHAS, PRESIDENT AND CEO OF QUESTOR TECHNOLOGY.

BUSINESS OF ENERGY | FEBRUARY 2024 | 16

| ENVIRONMENTAL SERVICES AND RECLAMATION

The industry-savvy Schulz underscores the energy sector positivity. “Overall, my estimate is that Canadian energy sector emissions have been reduced by about 30 per cent intensity of emissions reduced by about 60 per cent, and company reduction targets increased by 90 per cent, all focused on 100 per cent change by 2050 or sooner.”

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While industry insiders agree about the positive momentum of environmental and reclamation progress, some suggest that more can and should be done.

According to Calgary-based Audrey Mascarenhas, president and CEO of Questor Technology, with more than 25 years of creating innovative technology to help companies meet emissions reduction targets, “Two of the biggest impacts the energy sector has on the environment are the emissions from well sites, facilities, gas and oil processing, refining and transportation, and methane, pollutants, benzene, flaring and venting of waste gases or associated gas.

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“While we have made some progress on reducing emissions, they are relatively minor. The focus has been entirely on routine fugitive emissions, like leaks, pneumatics, tank vapours.” She underscores the urgent need to focus on methane. “Methane is an enormous energy sector problem.

“Methane global warming potential is 86 times worse that CO2 over a 20-year period. As methane degrades, it eventually turns into CO2 over a 100year period, but in doing so emits other harmful pollutants. Over 100 years, the global warming potential of methane is 28 times worse than CO2.

Tackling methane is the low hanging fruit.”

“Technology is readily available,” the high-energy and industry-respected Mascarenhas notes with enthusiasm. “The cost is low and it can have a large impact immediately on the temperature rise.

Dealing with the methane cleanly also improve air quality. Flaring and venting usually occurs in marginalized communities so this is also a social justice issue.”

Schulz agrees. “Compared to CO2, methane is said to have a 20 - 25 times higher multiple impact on climate change. Some major methane

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ENVIRONMENTAL SERVICES AND RECLAMATION | Environmental and Reclamation Progress

producers involve landfills, dairy manure and animal gas, electricity/steam generation and natural gas production.”

The oil and gas industry’s focus on the environment is a twin commitment to reclamation. Reclamation is the process of getting something useful from waste. This means that although something may be thought of as waste, it can be converted into something useful. One example of reclamation is when oil solids are recycled. Typically, when energy projects are finished, the land is abandoned. This is when the reclamation work can begin. To return the land to a functionally equivalent state before development, reclamation begins.

“Our industry is committed to meeting the rightful expectations of Canadians to reclaim 100 per cent of the land we disturb for our operations,” Kendall Dilling points out. “And we recognize the urgency people have for that process to move as quickly as possible. Since many oil sands facilities are early in what is often a decades’ long life cycle oil sands operators progressively reclaim portions of their operations that are no longer being actively mined.

“By reclaiming with self-sustaining native plant communities and soil contoured to blend in with the natural surroundings, operators are leaving behind the structure for ecosystems that support wildlife and traditional Indigenous uses. Operators are required to ensure the reclaimed areas will provide equivalent land capability in perpetuity.”

He highlights encouraging reclamation progress.

Pathways Alliance facts and figures show that oil sands operators have permanently reclaimed 9,200 hectares of land, the equivalent area of more than 11,000 Canadian football fields, and includes advancing the reclamation of forested areas, where oil sands producers have planted more than 25 million trees since 2009.

Although environment and reclamation services are, by nature, bogged down in layers of regulations, Dilling admits that reclamation is a long process, with possibilities for overcoming some obstacles.

“We are working with the federal and Alberta provincial governments to address the need for a regulatory framework for safe, treated oil sands

SCHULZ AGREES. “COMPARED TO CO2, METHANE IS SAID TO HAVE A 20 - 25 TIMES HIGHER MULTIPLE IMPACT ON CLIMATE CHANGE. mine water release, which is essential to achieve oil sands mine reclamation outcomes and closure.

“Regulatory certainty on environmental policies would enable faster reclamation. There is a lack of clarity on water quality parameters and future landscape features is currently presenting significant obstacles to proceeding in a timely way.”

The positive and upbeat CEO notes that relies on sharing expertise and comparing problems and solutions, and that Pathways has been spearheading collaboration across competitors to share intellectual property since 2012, with the goal of reducing environmental impacts in their operations.

“No one technology will solve the environmental and reclamation challenges, and it will take a B concerted effort of innovation to achieve.” OE ABOVE: DR. BOB SCHULZ, PROFESSOR OF STRATEGIC MANAGEMENT AND ACADEMIC DIRECTOR OF PETROLEUM LAND MANAGEMENT AT THE UNIVERSITY OF CALGARY’S HASKAYNE SCHOOL OF BUSINESS.

BUSINESS OF ENERGY | FEBRUARY 2024 | 18

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