OF ENERGY
JUNE 2021
Universe Machine 3 Generations: Kurt Feigel Jr., Markus Feigel, Kurt Feigel Sr., Nathan Feigel and Konrad Feigel.
LOCAL COMPANY WITH A UNIVERSAL IMPACT UNIVERSE MACHINE IS PROUD TO SUPPORT ALBERTA’S ENERGY INDUSTRY FROM ITS BASE IN EDMONTON, ALBERTA
tio a w P pen! e N wO o N
Grow your business and connect with other professionals at the premier club for Calgary business. With membership incentives available now, there is no better time to join. • Membership is open to ALL businesses • Transferable Corporate Memberships • 15 meeting & event spaces, with physical distancing capabilities • Exclusive Member networking events • Business Centre & Brew 319 workspaces to get you out of the office • Connected to the +15 for easy access to and from business towers • Award winning Chef and wine cellar • 70+ Affiliated clubs to access You Belong Here When I arrived in Calgary, I wanted to be part of the business community. Since joining the Calgary Petroleum Club, my network has expanded dramatically; hosting business & networking events, taking my wife for dinner or just grabbing a coffee, the club provides a great space to do anything. When I’m downtown, you can find me at the Petroleum Club. - Jon Cornish, CFA | RBC Dominion Securities
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OF ENERGY VOL 3, ISSUE 2 | JUNE 2021
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The Environment and Resource Development? Canadians Value Both
by Cody Battershill
Profile: Trimble Engineering Associates Ltd. by Rennay Craats
04 05 06 09 14
Alberta’s Fossil Fuel FutureFEBRUARY Is Secure 2019 by David Yager
Local Company with a Universal Impact by Nerissa McNaughton
Profile: Welco by Rennay Craats
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THIS ISSUE’S CONTRIBUTORS Melanie Darbyshire David Yager Cody Battershill Rennay Craats
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COVER 3 • Business of Energy • June 2021
Cody Battershill | The Environment and Resource Development? Canadians Value Both
THE ENVIRONMENT AND RESOURCE DEVELOPMENT? CANADIANS VALUE BOTH by Cody Battershill
A
llow me to meld together a few news items in order to make what I think is a vital point about Canadian pride in our natural resources sector. First up, consider a recent Ipsos poll commissioned by Resource Works that suggests Canadians firmly support the country’s natural resource sector. More than eight in 10 respondents (81 per cent) agreed that “natural resource development is good for Canada.” (Only 13 per cent disagreed.) Further, more than eight in 10 respondents (83 per cent) suggested “Canada’s natural resource sector is an important contributor to the Canadian economy today.” (Only 10 per cent disagreed.) Similarly, respondents said they view the sector as important to restarting the Canadian economy. Almost three-quarters (73 per cent) agreed that “investment in Canada’s natural resource sector will help Canada’s post COVID-19 economic recovery.” (Only 15 per cent disagree.) Those are surprisingly strong results. They suggest to me that Canadians feel a real connection to the resource sector, that they understand the stakes for workers, families and communities, and that they value the sector’s economic contributions, Canada-wide. The connection feels even stronger when you realize Canadians insist on the toughest Environmental, Social and Governance (ESG) criteria in the world. The second item I want to mention is the fact Canada ranked in the top 10 countries in the latest 2020 Social Progress Index (SPI), a comprehensive measure of quality of life, independent of economic indicators.
In fact, Canada upped its SPI ranking by two spots over 2019’s results, and seven spots over figures for 2018, placing seventh of 163 nations covered in the 2020 index. And of the world’s top 15 oil exporters, Canada ranks behind only Norway on the 2020 list. In a similar vein, Canada ranked 14th globally on the Green Future Index 2021 – again the second highest spot among the world’s top 15 oil exporters. Why is it that Canadians feel strongly about ESG issues – including world-leading environmental performance – while they continue to look to the natural resources sector as a key aspect of the Canadian economy? To me, the answer is simple. As far as I can tell, Canadians see our natural resources sector as a solid case study in ESG excellence. Whether it’s environmental commitments, the health, safety and human rights criteria, the continuous technological innovation, or the substantial and growing Indigenous participation – Canadians choose a strong resource economy AND solid performance on ESG criteria. I’m guessing that’s a real source of Canadian pride. The Ipsos poll of 2,000 adult Canadians was conducted online from March 17 to 22, 2021. The data were statistically weighted by region, age, gender and education to reflect the Canadian population according to Census data. The poll is accurate to within +/- 2.5 percentage points, 19 B times out of 20. OE
Cody Battershill is a Calgary realtor and founder / spokesperson for CanadaAction. ca, a volunteer-initiated group that supports Canadian energy development and the environmental, social and economic benefits that come with it.
4 • Business of Energy • June 2021
SERVING CALGARY’S ENERGY SECTOR FOR 50 YEARS by Rennay Craats
G
rant Trimble graduated from the University of Oklahoma with a Geological Engineering degree in 1958. His career started with Pan American Petroleum in Oklahoma, which led him back to Calgary in 1960. In 1969, Grant left Pan American and went into business with his brother, Harvey, before establishing Grant Trimble Engineering in 1971. “Our concentration from the get-go was reservoir engineering — conducting reserve estimates and enhanced recovery studies,” says Grant Trimble, founder of the firm. Over time, the firm developed a specialized expertise performing economic evaluations of oil and gas properties, interfacing with banks, law firms and investment groups on their clients’ behalf. Throughout the 1970s and 1980s, Grant also expanded the firm’s oil and gas property management services, including land, accounting and production optimization. Grant’s son Steve followed in his footsteps, graduating from the University of Waterloo with a Geological Engineering degree in 1988 and beginning his career with Imperial Oil before joining forces with Grant in 1991. Grant and Steve had not planned it this way, but a combination of events created an enticing opportunity to team up. “It was an exciting opportunity, but not necessarily the place I planned to spend the rest of my career,” says Steve Trimble, current president and principal engineer of the firm. But plans have a way of changing, and in 1996 Grant proposed that Steve buy him out. A four-year payment plan followed that would see 100 per cent ownership transferred to Steve in 2000. In 2002, Grant stepped away from consulting, leaving Steve in charge of the firm’s future. The name of the firm changed to Trimble Engineering Associates in 2000, and while Steve dropped his father’s name, Grant’s influence remained. “I learned a lot from my Dad,” Steve says. “He showed me the importance of working hard, being available and providing every service you can to help your clients be successful.”
Steve Trimble
Trimble Engineering Associates developed a more focused specialization under Steve’s guidance, with approximately 80 per cent of its business coming from oil and gas evaluation services and the balance from strategic advisory services and oil and gas property management. While Steve didn’t set out to aggressively grow the firm, his leadership and integration of technology allowed revenues to grow naturally without adding materially to overhead. He and his team of engineers, technologists, and support staff have embraced technology to increase efficiency, which has proven to be particularly valuable mitigating client costs in the recent challenging economic climate. Steve Trimble is optimistic about the future of Calgary and the energy industry, and sees growth and opportunity beyond recent events. In his view, Calgary will thrive going forward, riding a new wave of prosperity supported by innovative hydrocarbon and alternative energy initiatives originated in Alberta. Trimble Engineering Associates is proud to have served the Calgary business and energy community for the last 50 years and looks forward to continuing this service in support of its clients’ future growth and success.
Suite 2200-801 6 Avenue SW Calgary, Alberta T2P 3W2 (403) 261 - 4720 • trimble-eng.com
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David Yager | Alberta’s Fossil Fuel Future Is Secure
ALBERTA’S FOSSIL FUEL FUTURE IS SECURE
W
by David Yager
hile clearly not scripted, U.S. President Joe Biden’s first joint address to Congress on April 28 contained revealing words about the unmentioned realities of his administration’s climate change commitments. Biden said the U.S. only produces 15 per cent of worldwide emissions. But he then added, “The climate crisis isn’t our fight alone; it’s a global fight…because if we do everything perfectly it’s not going to matter.” Coming from the new president who campaigned on his climate change credentials and only a week earlier had vowed to reduce U.S. emissions by 50 to 52 per cent in only nine years, this level of candor is refreshing. Because when it comes to climate change, all the facts are rarely discussed. On Earth Day, April 22, Biden hosted international teleconferences during which multiple countries pledged to increase previous 2030 emission reduction commitments from Paris in 2015. Canada raised its target from 36 per cent to as high as 45 per cent. But China, India, Russia and Australia declined. This includes three of world’s top carbon energy producers. These countries are responsible for 41 per cent of global emissions. China and India have stated they continue to expand coal fired electricity generation. How can you save the world when the world won’t participate?
Alberta and its oil producers have been saying this for years. It’s a global issue requiring global solutions. But unlike many other petroleum producers, we’re committed to doing much better. Unfortunately, today’s climate debate is not about physics, economics, human needs, sources or distribution. The scale of the energy needs of 7.8 billion people is difficult to comprehend, the units of measurement foreign to most. Instead, climate change is about emotion, aspirations, politics and moral commitment. All we have to do to replace fossil fuels is believe it must be done and vow to try harder. All that is required is political commitment and enlightened legislation. “Net zero by 2050” is stated so frequently nowadays by so many it is assumed that if that if this goal is repeated often enough, dreams can become reality. Society must and will attempt to reduce emissions. That ship has sailed. Canadian and gas producers are committed to do better. Because it has been under assault for 15 years, Alberta’s petroleum industry is ahead of many others in embracing the carbon emissions reduction challenge. But Alberta’s contribution will not be to exit the oil business while others continue to produce. Despite what you see, hear and read so frequently, Alberta’s oil industry has a secure future. Hydrocarbons dominate the world’s primary energy mix. Over three-quarters of the world’s
6 • Business of Energy • June 2021
Alberta’s Fossil Fuel Future Is Secure | David Yager
Multiple respected forecasts show that in the “business as usual case,” world oil demand in 2050 will rise or remain unchanged because of economic and population growth. Petroleum consumption will only be reduced if governments legislate and force the so-called “energy transition.” Or if new low emission energy sources emerge that don’t yet exist. Last year, oil producing giant BP was the first to forecast that for the world to actually achieve net zero by 2050, civilization had to find replacements for 70 per cent of current oil demand. Transportation fuel and petrochemical products like plastic. The population is projected to rise by another 13 per cent to 8.8 billion by 2050. We’ll see how that goes. Canada is an energy powerhouse. Only 0.5 per cent of the world’s population produces four per cent of its energy. Natural Resources Canada’s Energy Fact Book 2020-2021 data details the massive economic void created if oil, gas and coal disappeared. Our country is the planet’s sixth largest primary energy producer behind only China, U.S., Russia, Saudi Arabia and India. This includes petroleum, natural gas, uranium, coal and hydroelectricity. Producing and exporting energy is one of Canada’s largest industries. For oil, 88 per cent of production is exported. Figures for uranium exports are 57 per cent, natural gas 45 per cent. Excluding uranium, Alberta’s primary energy production is materially greater than the rest of Canada combined. The energy business and its support sectors constitute 10.2 per cent of Canada’s nominal GDP, $219 billion. Of the $154 billion in direct energy GDP (production), nearly 50 per cent comes from Alberta alone. This is significantly greater than the total for all the other recognized energy producers combined; British Columbia, Saskatchewan, Ontario and Newfoundland and Labrador. Direct employment statistics are similar. While Alberta does indeed have the highest carbon emissions per person in Canada, that is because most of the oil and gas production is exported and consumed elsewhere. All large producers with low populations flunk this intentionally embarrassing mathematical analysis. Meanwhile, consuming countries, states and provinces get a hall pass on emissions from energy production. From 2000 to 2018 oil sands emissions rose with production volumes, but emissions per barrel declined by 36 per cent. Electricity emissions fell 46 per cent over the same period primarily from mothballing coal power plants. The renewable energy sector is beginning to move the needle. But it is primarily for domestic use, not export. In 2018 only seven per cent of Canada’s electricity generation came from nonhydro renewables. Economically, Alberta’s oil sands sector remains huge. A recent report by the MacDonald Laurier Institute is titled, “Why The Oil Sands Aren’t Going Anywhere Soon And How Investment and Production Benefit Canada.” In a summary in the Financial Post on April 30, author Philip Cross wrote, “Many Canadians outside the prairie provinces have trouble understanding – or accepting – that Alberta’s oil 7 • 7Business • Business of Energy of Energy • December • June 2021 2020
Alberta’s Fossil Fuel Future is Secure
energy needs come from coal, oil and natural gas. Oil consumption peaked at 102 million barrels per day in late 2019. While it tumbled last year because of the lockdowns, Washington’s Energy Information Administration figures global demand will return to this level in late 2021 or early 2022.
David Yager | Alberta’s Fossil Fuel Future Is Secure
sands are still enormously important to our economy. The $8.5 billion of new investment in the oil sands last year represented 4.5 per cent of all Canada’s business investment in 2020 and was four times the capital spending by the auto manufacturers who eastern-Canadian politicians continue to lionize and subsidize.” On emissions, Canadian oil producers are ahead of the curve when it comes to meeting 21st century society’s expectations. However, “The industry long ago lost the public relations battle about its environmental impact. As a result, the improvement…has been largely ignored. The chief economist of the International Energy Agency acknowledged this new reality when he said the contribution of the oil sands to global emissions ‘is not peanuts, it is a fraction of peanuts.’” With new oil pipelines under construction west and south – and LNG exports from B.C. soldiering forward despite the pandemic – are Alberta’s battles over? Do jobs and the economy actually matter? Are the oil sands not really a terrible threat to the future of the world? Things will improve if the debate becomes as factually accurate as President Biden’s inadvertent confession. A worldwide transition to low emission energy is a daunting challenge. It is much easier to opine than to deliver. Roger Pielke Jr. writes extensively about climate change. Responding to Biden’s emissions reduction pledge, Pielke observed what the commitment “…to create a carbon pollution free power sector by 2035” means. America began the year with 1,852 coal and gas-powered generation facilities that will either have to be shut down or made emissions-free. Pielke wrote, “There are 164 months until 2035. This means that more than 11 of these fossil fuel power plants…will need to be closed every month, on average, starting today until 2035.” But because of recent electricity shortages or blackouts in California and Texas, there is a movement to add more natural gas generation for backup. Both states have invested heavily in renewable electricity, but recent weather extremes have exposed their vulnerability and reliability.
Energy transition is a popular idea until the lights go out. Fossil fuels also help feed the world. Studies show that about half the world’s food is produced using nitrogen-based fertilizer made from natural gas. Hydrocarbons also power irrigation, mechanized farming equipment and techniques, refrigeration and storage, and bulk transportation to market. Much of the food on store shelves travels vast distances. How else does Canada get fresh fruit and vegetables in the winter? Alberta can and will contribute through the development of technologies and processes to reduce emissions all over the world. But to succeed, the energy transition must be rooted in an agreed upon set of facts and in a manner by which the cure is not more damaging than the ailment. As climate change has moved from a concept to public policy, the relationship between Alberta and its oil sands with the rest of Canada and the world has been mostly negative. Alberta cannot be allowed to strip mine more bitumen, expand oil sands production, build more pipelines or increase emissions. However, because of the continued need for oil and Alberta’s oversized contribution to the Canadian economy, it’s time for the critics to demonstrate what they can do. Show us how to feed the world, keep the lights only, maintain the economy and substitute reliable, low-cost fossil fuels with zero-carbon alternatives without massive lifestyle and economic disruption. And without further borrowing our governments into insolvency. Relax, Alberta. Our fossil fuel business is here to B stay. OE
David Yager is a Calgary oil service executive, energy policy analyst, writer and author. He is president and CEO of Winterhawk Well Abandonment Ltd., a methane emission reduction technology company. His 2019 book From Miracle to Menace - Alberta, A Carbon Story is available at www.miracletomenace.ca.
8 • Business of Energy • June 2021
Universe Machine Management Team: Ron Feigel, Fred Aleksic, Andreas Schmidt, Garry Czurlok, Vlad Pohnert, Doug O’Neill, Kurt Feigel Sr. and Kurt Feigel Jr.
Local Company with a Universal Impact | Cover
LOCAL COMPANY WITH A UNIVERSAL IMPACT UNIVERSE MACHINE IS PROUD TO SUPPORT ALBERTA’S ENERGY INDUSTRY FROM ITS BASE IN EDMONTON, ALBERTA
F
by Nerissa McNaughton with photos by Epic Photography Inc.
or nearly 60 years Universe Machine Corporation has manufactured, modified, and repaired metal products for the energy and heavy industries. The company was founded in Edmonton and is a known as a reliable manufacturer, an innovator, and a wonderful place to work in the province.
Universe Machine and the family that owns and runs it embodies all this – and more.
Alberta runs on energy and since this commodity is constantly in flux, events locally and abroad influence and affect the manufacturers servicing the industry. Those involved in supplying the oil and gas sector with the products it needs to thrive are companies helmed by visionaries that can weather the storms, pivot when necessary, have grit and determination while constantly seeking ways to maintain growth no matter what phase of boom or bust the province is in.
“The longer I stayed, the more I fell in love with Canada, then with Erna, whom I married in 1962. We started a family and launched Universe Machine in 1965,” says Kurt Sr., founder and CEO. “I wanted to provide for my young family while having the freedom to forge my own path.”
Universe Machine was founded by Kurt Feigel Sr. He arrived in Canada at the age of 18 in 1960 and planned to stay for a year or two. Sixty plus years later, he’s still here.
In 1965 Universe Machine was a three-person operation in a 2,000 square foot building. By the end of the 1980s and after three expansions and
9 • Business of Energy • June 2021
Cover | Local Company with a Universal Impact
The early 2000s saw the largest expansion to date, which led to Universe Machine becoming a modern manufacturing company with up to 200 employees in a 100,000 sq. foot facility. This expansion made Universe Machine’s valve division the largest of its kind in all of Canada.
Universe Products Division: Power Tong Equipment, Ron Feigel and Fred Aleksic.
Universe Valve Repair & Modification Division: Jakob Fuss and James Rieland.
Universe Manufacturing Division: Machining a large part to size on a CNC Vertical Boring Mill, Rolf Reukema.
growing assets of large equipment, the building had grown to over 50,000 sq. ft. in Edmonton’s southeast industrial area. The 1980s was also the beginning of the innovative and high-quality line of Universe Power Tong Energy Equipment, engineered and built in-house. Universe product expansions later included Hogs – an industrial waste shredder for the forestry industry, and a variety of valve test stands.
Today, Universe Machine continues to be a leading company in Edmonton and in Alberta, both in the products it produces and the way the team is led. It is a family business with both Kurt’s family and original employees’ families working together. The oldest son, Kurt Jr. took over the reins as president in 2014 with a broad vision to expand, diversify and modernize Universe Machine as a leader in Western Canada and globally for manufacturing, modifying and repairing metal products for heavy industry. Cousin Ron Feigel, business development manager, completed his machining apprenticeship at Universe Machine and later returned to the company to work in administration. The third generation of Feigels, which includes Kurt Jr.’s sons, comprise the next generation of the family working in the business. Universe Machine has grown to include the following divisions: Valve repair and modification: As the largest authorized repair and modification facility of its kind in Canada and the only Canadian company with membership in the Valve Repair Council, Universe Machine provides hydro testing, trim changes and extensions, along with full valve refurbishing back to OEM specifications. Under this umbrella, Universe Engineering provides CRN# and certified processes. Machining and welding: Those in this division enjoy working on some of the largest and most unique components in western Canada for a wide variety of projects and under certifications such as ISO 9001:2015, APEGA and ABSA. Work is industry-tested to, and exceeds, the highest standards. Products: This division offers engineered equipment that is patented, tested, and proven for industries’ harshest conditions. Under this umbrella, equipment is innovated for the oil and gas, valve and forest industries. How did Universe Machine continue to grow year over year?
10 • Business of Energy • June 2021
Local Company with a Universal Impact | Cover
An example of this adaptation was seen at the onset of the pandemic. “Business dropped significantly near the beginning of the pandemic but has improved somewhat since we also provide essential services to keep necessary equipment operating in Western Canada,” explains Ron. “We had to run leaner to survive, even before COVID as the Alberta economy struggled. However, this has spurred innovation and efficiency improvements. It has led to exploring further diversification, automation, and increasing capabilities. Having more time and resources enabled us to discover new opportunities, to ramp up R & D and to continue innovating our current line of products and services. This has proven to be beneficial in the short-term, and we are confident this will provide long-term benefits as well.” Kurt Jr. adds, “As the pandemic took hold and borders closed, we quickly started to reevaluate priorities and focus more on our own back yard; in other words, western Canada. We shifted our engineering to more R & D work on new or improved products and services, some for the western Canadian forest industry with products we could quickly take to market locally, and others for the oil and gas industry that would hopefully be ready to roll out internationally as the COVID crisis eventually ends. This was not only good for keeping staff busy during a very slow time but was also helpful in boosting morale within the entire organization as management looked and planned ahead for a brighter future.” He continues, “However, Universe Machine is not the only one who stands to profit from the efforts the company is taking to invest in research and development during challenging times. This move will enable Universe to produce products more efficiently in the future, thereby staying globally competitive, satisfying customers’ needs and keeping Albertans employed. In other words, investing in research and development means investing in Canada’s future economy, and that is the best way to reinvest stability and growth into our future.” With his many years in the business, Kurt Sr. speaks to why resilience and innovation are important in the energy industry. “Resilience as defined by Merriam-Webster is, ‘an ability to recover from or adjust easily to misfortune or change,’ says the founder. “Some of the misfortunes or changes we have experienced are our harsh environment, a cyclical economy with many legislative changes and changes in government. Our resilience shines when we are creative and willing to collectively work together to meet the misfortunes with calm, compassion and to bounce back with a renewed adaptability and hope of success. “Regarding innovation, Edmonton is known as a blue-collar service centre that designs, manufactures and repairs all manner of commodities. Perhaps it is not widely recognized how many amazingly talented, humble, and innovative people we have here in Alberta. They are inspiring to work with! Many world-leading products and inventions encompassing numerous industries quietly came to life here in this province. “Resilient and innovative Albertans have played a significant role in making Canada such a wealthy and highly regarded country to live, work and play in.” As the business development manager, Ron helps navigate the ever-changing world of governments, policies, and legislation.
11 • Business of Energy • June 2021
Local Company With a Universal Impact
“Over 55 years of success has been attributed to, first of all, hard work,” says Kurt Jr. “And, it is very important to also have good employees and people around, which creates a strong team. We have a strong retention because we run our company like a family. Everybody is important. Many businesses in our industry face numerous ongoing changes so it’s important to operate lean, remain flexible and adapt quickly. We have demonstrated how we can adapt quickly!”
Cover | Local Company with a Universal Impact
“With the recent change of government, provincial policies have become more accommodating and helpful for energy industry businesses, but our Federal Government has increased Alberta’s energy industry difficulties with regulatory changes, damaging new policies and not supporting or enabling wise utilization of Alberta’s abundant natural resources,” explains Ron. He goes on to say how local communities and consumers can be supportive now, and in the future despite the ongoing changes. “In general, it is good to buy local wherever possible, supporting regional and Canadian businesses. Every Canadian should lobby the government to support infrastructure and the reduction of red tape to allow Canadians to develop and market our natural resources across Canada instead of importing. We should support removing roadblocks that impede selling our highly regarded and environmentally superior resources worldwide.” As the decades ticked away and Kurt Sr.’s business grew to involve his family and grandchildren, he looks back very fondly on his decision to remain in Edmonton. “I was very fortunate to have a lot of good people and great local businesses that helped along the way,” he reminisces. “Edmonton feels like a close-knit and caring community where people and businesses help each other succeed. What I appreciate in Edmonton is that there still seems to be a fair bit of mutual respect, trust, and collaboration. With small businesses here especially, it seems easier and quicker to get things done and deals can still be closed verbally or with a handshake. “As for the province, Alberta is truly magnificent with the Rocky Mountains to the west, wide open spaces to the north, and filled with vast and diverse natural resources throughout that have greatly contributed to the wealth of not just Alberta, but all of Canada. I especially respect the hard-working, resilient, and innovative nature of Albertans who have wisely utilized Alberta’s energy and natural resources we have been blessed with. That provincial utilization helps improve the entire country.” Universe Machine is very invested in giving back to the community. The company robustly
supports the next generation of industrial innovators by supporting the Northern Alberta Institute of Technology’s (NAIT) mechanical engineering, machinist, and welding trades programs and the University of Alberta’s mechanical engineering program. “Kurt Jr. is also personally involved with the Alzheimer Society of Alberta and Northwest Territories, is the chair of the Alberta Red Tape Industrial Manufacturing Panel. He sits on the board of the Shepherd’s Care Foundation which is now comprised of seven senior care centers in Alberta that care for over 2,000 seniors and employ 800 staff,” adds Ron. For his contribution to Alberta’s heavy industry and the employees and students within it, Kurt Sr. was honored with a Pinnacle Award in 1993 and was an Alberta Business Hall of Fame inductee in 2019. Yet, the family remains ever humble, instead shifting the praise for Universe’s many accomplishments to include others. “There are too many great employees, businesses and people to mention,” says Kurt Sr. “But I would like to acknowledge several very long-term customers including Stream-Flo/ Master Flo and Enbridge Inc./Interprovincial Pipeline. Both have been utilizing our services since near the time Universe Machine began in 1965. Advocacy groups like the Canadian Federation of Independent Business and the Canadian Taxpayers Federation have been helpful, along with our board of advisors – Allan Scott and Terry Bachynski.” Universe Machine is the company with a solid past and an eye on the future. No matter what comes its way, the family business is ready. “It does look like supply and demand for oil and other natural resources will continue to balance out in 2021, and we are confident our industry will thrive as businesses continue to adapt and governments change or adjust for the better. In the meantime, Universe Machine will continue to run lean and efficient, innovating, and diversifying,” concludes Ron. “In summary, our focus will be on continuous improvement and effectively mentoring the B next generations.” OE
12 • Business of Energy • June 2021
BOOSTING BRIGHT IDEAS L
ike dazzling flowers in a garden, most bright ideas need nourishment and cultivation. That’s the role and mandate of Alberta Innovates – the province’s largest research and innovation agency. Alberta Innovates boosts research, helps grow business and enables Albertan companies both large and small make new technologies flourish. Across every sector, these innovations improve Albertans’ quality of life and contribute to a prosperous future for the province. One recent high-profile example happened when InnoTech Alberta, a subsidiary of Alberta Innovates, hosted part of the NRG COSIA Carbon XPRIZE at the Alberta Carbon Conversion Technology Centre (ACCTC). The coveted XPRIZE is a global competition to inspire the development of innovative new technologies. The 54-month Carbon XPRIZE catalyzed new carbon conversion technologies to help solve climate change with $US20 million in prize money. Each of the five competitors in the natural gas side of the competition was given access to one of ACCTC’s 25,000-square-foot research test bays and its carbon capture unit. In April, the XPRIZE Foundation recognized CarbonCure Technologies of Dartmouth, N.S. for
its breakthrough clean-tech innovation to convert carbon dioxide (CO2) emissions into usable products. CarbonCure successfully demonstrated its technology to convert CO2 emitted by the Shepard Energy Centre into a strengthening agent for concrete. The result? Emitted carbons are embedded permanently in the concrete instead of being released into the atmosphere. While CarbonCure walked away with the grand prize, other competitors, including Calgary-based Carbon Upcycling Technologies (CUT), were able secure major industry partnerships to continue development of their own technologies. “Calgary’s growing reputation as a tech hub is exemplified by the ACCTC when it comes to clean tech development,” says John Van Ham, executive director, Sector Alignment and Programs with InnoTech. “The facility enables technology developers to test, validate and scale up game-changing new technologies that transform CO2 into value-added products such as carbon-based materials, chemicals and fuels.”
www.xprize.org
ALL SYSTEMS GO AT WELCO by Rennay Craats
J
im and Rita Welch founded their company in 1971, using their oldest son’s vacated bedroom as an office. From there, the Welch Company – Welco – became the regional go-to for finding rental or specialized equipment for a number of major potash and coal projects being developed in Western Canada. Through dogged determination and hard work, Jim attracted the attention of some major U.S.based equipment suppliers. “We were able to negotiate representative agreements, and we morphed from a rental company into supplying production equipment to various markets in western Canada,” says Michael Welch, Jim and Rita’s son and President of Welco. It wasn’t long before Welco outgrew the back bedroom and moved into a small warehouse office complex. Continued growth forced Welco to move again, first into one bay in Foothills Industrial and then taking over another bay and another until the company was spread across nine bays. This disconnected workspace didn’t support Welco’s collaborative environment, so in 2016, the team moved Welco into a new 25,000-square-foot complex on 61 Avenue SE that brought its distribution centre and factoryauthorized service centre all under one roof.
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spaces from them. The team is proud to be part of the success of other local businesses starting out just like Welco had so many years before. Today, Welco has expanded more than just its offices. It also diversified its business from strictly mining products to now including clients in industrial food and beverage, pharmaceuticals and biotech, pulp and paper, pulse and grain crops, energy and manufacturing. The company has the solution, regardless of what you’re pumping, moving or mixing. Besides quality equipment, Welco is also providing factory-trained authorized personnel to service that equipment. As more clients outsource their repair work, this remanufacturing arm is becoming a larger part of Welco’s business. By maintaining these multiple revenue streams, the company has been able to continue to steadily grow the business despite down times in certain sectors.
“Moving to a consolidated location totally transformed the company,” he says. “We increased the volume of sales around 35 per cent in a single year, just because we had the ability to have more inventory on hand and to do repair work, and it has provided a lot of synergy for the staff.”
It has also grown the company by growing the staff, and Welco now has a staff of 32 employees in Calgary along with representatives working in Vancouver, Edmonton and Saskatoon and the new Fort McMurray location. That staff is made up of myriad professionals – salespeople, marketing growth analysts, licenced P.Eng.s, Red Seal industrial mechanics, CPA accounting professionals, logistic experts, Management Information Systems and Business Intelligence analysts – who come together to help their clients succeed. The staff also includes the third generation to be involved in this western Canada family business.
The company retained ownership of four of the bays and found top-notch tenants to rent those
Michael Welch credits his dad’s work ethic (which spread throughout the company and took root
WELCO || 50 YEARS || 1
in every department) with Welco’s 50 successful years in business. The people are the difference, and the company works hard to attract and retain talented people. It also supports apprentice mechanics through the Alberta Advanced Education Registered Apprenticeship Program (RAP), helping to repopulate the industry with talent through grassroots development of the trade. “There are 32 people in the whole company and look at all that fire Michael Stark, Peter Lipp, Ryan Bouffard, Michael Welch, Liam Hodgson, power,” says Michael Stark, Sales Charlie Matheson and Franco Vignone. Photo by Riverwood Photography. Director for Welco. “The company has really been built around establishing and operating in all functional “We’ve ramped up on digitizing archives so it’s areas.” all accessible to anyone who needs it,” says Franco Vignone, Vice President of Operations for While most distributors simply offer clients a Welco. “We’ve continued to grow our systems catalog of products to choose from, Welco and provide customers with the right solutions. takes a more active, holistic approach. Staff That’s what Welco is all about – the right people know the inventory inside and out and pride finding the right solutions for customers.” themselves on delivering more than just a piece of equipment; Welco delivers solutions. Despite the challenges of the past year, Welco The team learns the clients’ specific needs is in a growth cycle as it looks to the future. It and collaborates with them to find the highest is actively adding to its team in Calgary and quality customized equipment that best fits recently opened an office and warehouse those needs, all the while helping them become location in Fort McMurray to better support greener and more efficient through innovative its energy clients there. It is also looking to solutions like using a cyclone solution to help a add offices to provide enhanced coverage foundry clean quench water for extended use for the growing industry and geographical while easing demand on the environment opportunities throughout western Canada and the territories. To better serve clients across Since the beginning, Welco has been sectors, Welco is also building on its current dedicated to helping its partners succeed exclusive Business Partner’s product lines to and Michael and his team have carried on grow its fit-for-purpose solutions. Jim’s tradition of going above and beyond to ensure that their success happens. Jim taught Michael Welch and his Welco team appreciate Michael early that it was critical to always what it took for the company to reach this have what customers needed, and today that milestone and they continue to offer world-class translates to a warehouse with multi-million equipment, service and solutions to its diverse dollars in inventory on hand so they can clients. With more staff, new strategic locations quickly meet clients’ needs. and new equipment offerings complementing long-time product lines, Welco is All Systems Go “For a lot of our clients, their production keeping as it enters the next half-century. up is part of their value to their shareholders. It goes back to our promise of maximum uptime, which is what we provide our clients,” says Michael Welch. No matter what is happening in the world, be it an economic downturn or a global pandemic, the Welco team prides itself on keeping clients up and running. When COVID-19 shut the doors of many businesses in 2020, Welco accelerated its plans to implement technology to better deliver customer service. Not only did the company not miss a beat but neither did its clients.
HEAD OFFICE 5475 61 Ave SE Calgary AB T2C 5N7 Toll Free: 1.888.279.8636 welco.ca
WELCO || 50 YEARS || 2
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BUY BACK OPTIONS • RENT-TO-OWN • IN-HOUSE FINANCING • FLEXIBLE PAYMENTS Inclusive Energy Ltd. is the fastest growing service company with a vast variety of high quality equipment and quick turnarounds to meet the demands of the growing energy industry. We offer all related services for turnkey projects to help customers execute projects from start, to finish helping us to establish ourselves as an industry leader.
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